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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Washington,
DC 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>CURRENT
REPORT Pursuant</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>to
Section 13 or 15(</B></FONT><B>d<FONT STYLE="text-transform: uppercase">) of the</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Securities
Exchange Act of 1934</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Date of Report (Date of earliest event
reported):&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>April 12, 2012</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.75pt solid"><B>ThermoEnergy
Corporation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.75pt solid"><B>Delaware</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or other jurisdiction of incorporation)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">33-46104-FW</TD>
    <TD STYLE="width: 49%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">71-0659511</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Commission File Number)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(IRS Employer Identification No.)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">10 New Bond Street, Worcester, Massachusetts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">01606</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.75pt solid"><B>(508)
854-1628</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (<I>see </I>General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 4.02(a)</B></TD><TD STYLE="text-align: justify"><B>Non-Reliance on Previously Issued Financial Statements
or a Related Audit Report or Completed Interim Review.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with the preparation and audit
of our consolidated financial statements as of, and for the year ended, December 31, 2011, we reviewed the accounting treatment
of our debt and equity transactions during such year. During this review we uncovered errors that impacted our previously issued
unaudited 2011 interim consolidated financial statements for the quarterly periods ended March 31, 2011, June 30, 2011 and September
30, 2011 (collectively, the &ldquo;2011 Interim Consolidated Financial Statements&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On April 12,
2012, our management and the Audit Committee of our Board of Directors discussed this matter with Grant Thornton LLP, our independent
registered public accounting firm.&nbsp; After careful consideration, with concurrence of the Audit Committee, on April 12, 2012,
we concluded that our 2011 Interim Consolidated Financial Statements contained in our Quarterly Reports on Form 10-Q for the respective
quarterly periods ended March 31, 2011, June 30, 2011 and September 30, 2011 (collectively, the &ldquo;2011 Quarterly Reports&rdquo;)
and all earnings releases and other communications related to our financial performance for the periods ended March 31, 2011, June
30, 2011 and September 30, 2011 should no longer be relied upon</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have filed with the Securities and Exchange
Commission a Notice of Late Filing on Form 12b-25 with respect to our Annual Report on Form 10-K for the year ended December 31,
2011 (the &ldquo;2011 Form 10-K&rdquo;). We expect to file the 2011 Form&nbsp;10-K within the time period permitted by Rule 12b-25.
We will restate the 2011 Interim Consolidated Financial Statements in our 2011 Form&nbsp;10-K through expanded disclosure of the
selected quarterly financial data, including describing the restatement and its impact on previously issued amounts. We have not
amended and do not intend to amend our previously filed 2011 Quarterly Reports to reflect such restatements.&nbsp; The restatement
of our 2011 Interim Consolidated Financial Statements to be included in our 2011 Form 10-K will contain a more definitive description
of the impact of the accounting errors contained in the 2011 Interim Consolidated Financial Statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Accounting Errors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have concluded that we incorrectly accounted
for a series of related transactions effected pursuant to certain Note Amendment and Forbearance Agreements, effective as of January
4, 2011 (the &ldquo;Note Amendment and Forbearance Agreements&rdquo;), with the holders of our Convertible Promissory Notes due
May 31, 2010 (the &ldquo;Old Notes&rdquo;), including the partial repayment of the Old Notes, the conversion of a portion of the
Old Notes into shares of our Series B Convertible Preferred Stock, the issuance to the holders of the Old Notes of warrants for
the purchase of shares of our Common Stock and the issuance to the holders of the Old Notes, upon cancellation of the Old Notes,
of Amended and Restated Promissory Notes due February 29, 2012 (the &ldquo;Restated Notes&rdquo;) by treating such transactions
as debt modifications rather than debt extinguishment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On April 12, 2012 our management also concluded
that, due to deficiencies in the methodology we had used to calculate our derivative warrant liabilities, we had overstated the
quarterly valuation of such liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Preliminary Financial Impact</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">None of the errors related to our cash position,
revenues or loss from operations for any of the periods in which such errors occurred. We estimate the net effect of these errors
to be (i) a $5.5 million understatement of our net loss in the quarter ended March 31, 2011, (ii) a $1.2 million overstatement
of our net loss in the quarter ended June 30, 2011 and (iii) a $4.6 million overstatement of our net loss in the quarter ended
September 30, 2011. The understatement of our net loss in the quarter ended March 31, 2011 is offset by the overstatement of our
net loss in the quarters ended June 30, 2011 and September 30, 2011, with the net effect that our net loss for the nine-month period
ended September 30, 2011 was overstated by approximately $0.3 million. The amounts of these adjustments have not yet been finalized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Upon discovering these errors, we re-examined
our accounting for similar transactions and the calculation of our derivative warrant liabilities in prior years and, although similar errors occurred in accounting for certain transactions
in prior periods, we have not yet determined whether the effect of such errors was material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Evaluation of the Effectiveness of Controls</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our management had previously determined,
through its evaluation of the effectiveness of disclosure controls and procedures, that our disclosure controls and procedures
were not effective as of the dates of the 2011 Quarterly Reports due to (i) our failure to allocate adequate resources to ensure
that necessary internal controls were implemented and followed and (ii) a lack of segregation of duties in our significant accounting
functions. Management is still evaluating the extent to which (i) the errors in our accounting for the transactions effected pursuant
to the Note Amendment and Forbearance Agreements and (ii) the deficiencies in the methodology we had used to calculate our derivative
warrant liabilities arise from further deficiencies in our internal controls. We will provide our management&rsquo;s final evaluation
of disclosure controls and procedures and assessment of internal control over financial reporting in our 2011 Form 10-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>This Current Report on Form 8-K contains
forward-looking statements based on current expectations. Those forward-looking statements include all statements other than those
made solely with respect to historical fact. Numerous risks, uncertainties and other factors may cause actual results to differ
materially from those expressed in any forward-looking statements. Factors that could affect our forward-looking statements include,
among other things: the further review of our March 31, 2011, June 30, 2011 and September 30, 2011 financial statements, the audit
of our December 31, 2011 fiscal year financial statements and our ability to manage our operations during and after restatement
process. We do not undertake any obligation to revise or update any forward-looking statements, or to make any other forward-looking
statements, whether as a result of new information, future events or otherwise.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Date: April 13, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><U>THERMOENERGY CORPORATION</U></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(Registrant)</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 48%">&nbsp;</TD>
    <TD STYLE="width: 6%">By:&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 46%">/s/ Teodor Klowan, Jr.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>Name:<BR>Title:</TD>
    <TD STYLE="vertical-align: top; border-top: #000000 1px solid">Teodor Klowan, Jr.<BR>Chief Financial Officer</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0pt; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>

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{"company-data": {"conformed-name": "THERMOENERGY CORP", "cik": "0000884504", "assigned-sic": "4955", "irs-number": "710699511", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "033-46104-FW", "film-number": "12759288"}, "business-address": {"street1": "10 NEW BOND STREET", "city": "WORCHESTER", "state": "MA", "zip": "01606", "phone": "(508) 854-1628"}, "mail-address": {"street1": "10 NEW BOND STREET", "city": "WORCHESTER", "state": "MA", "zip": "01606"}, "former-company": {"former-conformed-name": "INNOTEK CORPORATION", "date-changed": "19930328"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT
REPORT Pursuant
to
Section 13 or 15(
d
) of the
Securities
Exchange Act of 1934
Date of Report (Date of earliest event
reported):
April 12, 2012
ThermoEnergy
Corporation
(Exact name of registrant as specified in
its charter)
Delaware
(State or other jurisdiction of incorporation)
33-46104-FW
71-0659511
(Commission File Number)
(IRS Employer Identification No.)
10 New Bond Street, Worcester, Massachusetts
01606
(Address of principal executive offices)
(Zip Code)
(508)
854-1628
(Registrant's telephone number, including
area code)
Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (
see
General Instruction A.2. below):
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 4.02(a)
Non-Reliance on Previously Issued Financial Statements
or a Related Audit Report or Completed Interim Review.
In connection with the preparation and audit
of our consolidated financial statements as of, and for the year ended, December 31, 2011, we reviewed the accounting treatment
of our debt and equity transactions during such year. During this review we uncovered errors that impacted our previously issued
unaudited 2011 interim consolidated financial statements for the quarterly periods ended March 31, 2011, June 30, 2011 and September
30, 2011 (collectively, the "2011 Interim Consolidated Financial Statements").
On April 12,
2012, our management and the Audit Committee of our Board of Directors discussed this matter with Grant Thornton LLP, our independent
registered public accounting firm.  After careful consideration, with concurrence of the Audit Committee, on April 12, 2012,
we concluded that our 2011 Interim Consolidated Financial Statements contained in our Quarterly Reports on Form 10-Q for the respective
quarterly periods ended March 31, 2011, June 30, 2011 and September 30, 2011 (collectively, the "2011 Quarterly Reports")
and all earnings releases and other communications related to our financial performance for the periods ended March 31, 2011, June
30, 2011 and September 30, 2011 should no longer be relied upon
.
We have filed with the Securities and Exchange
Commission a Notice of Late Filing on Form 12b-25 with respect to our Annual Report on Form 10-K for the year ended December 31,
2011 (the "2011 Form 10-K"). We expect to file the 2011 Form 10-K within the time period permitted by Rule 12b-25.
We will restate the 2011 Interim Consolidated Financial Statements in our 2011 Form 10-K through expanded disclosure of the
selected quarterly financial data, including describing the restatement and its impact on previously issued amounts. We have not
amended and do not intend to amend our previously filed 2011 Quarterly Reports to reflect such restatements.  The restatement
of our 2011 Interim Consolidated Financial Statements to be included in our 2011 Form 10-K will contain a more definitive description
of the impact of the accounting errors contained in the 2011 Interim Consolidated Financial Statements.
Description of Accounting Errors
We have concluded that we incorrectly accounted
for a series of related transactions effected pursuant to certain Note Amendment and Forbearance Agreements, effective as of January
4, 2011 (the "Note Amendment and Forbearance Agreements"), with the holders of our Convertible Promissory Notes due
May 31, 2010 (the "Old Notes"), including the partial repayment of the Old Notes, the conversion of a portion of the
Old Notes into shares of our Series B Convertible Preferred Stock, the issuance to the holders of the Old Notes of warrants for
the purchase of shares of our Common Stock and the issuance to the holders of the Old Notes, upon cancellation of the Old Notes,
of Amended and Restated Promissory Notes due February 29, 2012 (the "Restated Notes") by treating such transactions
as debt modifications rather than debt extinguishment.
On April 12, 2012 our management also concluded
that, due to deficiencies in the methodology we had used to calculate our derivative warrant liabilities, we had overstated the
quarterly valuation of such liabilities.
Preliminary Financial Impact
None of the errors related to our cash position,
revenues or loss from operations for any of the periods in which such errors occurred. We estimate the net effect of these errors
to be (i) a $5.5 million understatement of our net loss in the quarter ended March 31, 2011, (ii) a $1.2 million overstatement
of our net loss in the quarter ended June 30, 2011 and (iii) a $4.6 million overstatement of our net loss in the quarter ended
September 30, 2011. The understatement of our net loss in the quarter ended March 31, 2011 is offset by the overstatement of our
net loss in the quarters ended June 30, 2011 and September 30, 2011, with the net effect that our net loss for the nine-month period
ended September 30, 2011 was overstated by approximately $0.3 million. The amounts of these adjustments have not yet been finalized.
Upon discovering these errors, we re-examined
our accounting for similar transactions and the calculation of our derivative warrant liabilities in prior years and, although similar errors occurred in accounting for certain transactions
in prior periods, we have not yet determined whether the effect of such errors was material.
Evaluation of the Effectiveness of Controls
Our management had previously determined,
through its evaluation of the effectiveness of disclosure controls and procedures, that our disclosure controls and procedures
were not effective as of the dates of the 2011 Quarterly Reports due to (i) our failure to allocate adequate resources to ensure
that necessary internal controls were implemented and followed and (ii) a lack of segregation of duties in our significant accounting
functions. Management is still evaluating the extent to which (i) the errors in our accounting for the transactions effected pursuant
to the Note Amendment and Forbearance Agreements and (ii) the deficiencies in the methodology we had used to calculate our derivative
warrant liabilities arise from further deficiencies in our internal controls. We will provide our management's final evaluation
of disclosure controls and procedures and assessment of internal control over financial reporting in our 2011 Form 10-K.
This Current Report on Form 8-K contains
forward-looking statements based on current expectations. Those forward-looking statements include all statements other than those
made solely with respect to historical fact. Numerous risks, uncertainties and other factors may cause actual results to differ
materially from those expressed in any forward-looking statements. Factors that could affect our forward-looking statements include,
among other things: the further review of our March 31, 2011, June 30, 2011 and September 30, 2011 financial statements, the audit
of our December 31, 2011 fiscal year financial statements and our ability to manage our operations during and after restatement
process. We do not undertake any obligation to revise or update any forward-looking statements, or to make any other forward-looking
statements, whether as a result of new information, future events or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 13, 2012
THERMOENERGY CORPORATION
(Registrant)
By:
/s/ Teodor Klowan, Jr.
Name:
Title:
Teodor Klowan, Jr.
Chief Financial Officer