BUSINESS SEGMENT INFORMATION

6 Months Ended

Dec. 31, 2011

Notes to Financial Statements

BUSINESS SEGMENT INFORMATION

NOTE 16 – BUSINESS SEGMENT INFORMATION

The Company reports its financial results in two reportable business segments: ZBB Energy Storage and Power Electronic Systems and Tier Electronics Power Conversion Systems.

The ZBB Energy Storage and Power Electronics Systems business segment designs and manufactures advanced electrical power management platforms enabling the growing global need for distributed renewable energy, energy storage, energy efficiency, power quality, and grid modernization. The Company’s intelligent power management platforms integrate multiple renewable and conventional onsite generation sources with rechargeable zinc bromide flow batteries and other storage technologies to ensure optimal energy availability for on grid and off grid applications, while maximizing the use of renewable energy sources.  The Company solves a wide range of global electrical system challenges for diverse applications in commercial building, telecommunications, defense, utility and industrial markets.

The Tier Electronics Power Conversion Systems business segment designs and manufactures state of the art digital power converters for power quality, alternative energy, and military markets.  These power converters are designed to be fully programmable and feature DSP controls with very high levels of integration that reduce costs while increasing performance.

The operating results for the two business segments are as follows:

	Three months ended December 31,						Six months ended December 31,
	2011			2010			2011			2010
Revenues:
ZBB Energy Storage and Power Electronics Systems	$	277,618		$	234,681		$	1,689,368		$	234,681
Tier Electronics Power Conversion Systems		163,303			-			389,410			-
Total	$	440,921		$	234,681		$	2,078,778		$	234,681
	Three months ended December 31,						Six months ended December 31,
		2011			2010			2011			2010
Loss from Operations:
ZBB Energy Storage and Power Electronics Systems	$	(2,281,768	)	$	(1,794,398	)	$	(3,558,222	)	$	(3,798,482	)
Tier Electronics Power Conversion Systems		(483,568	)		-		$	(903,596	)		-
Total	$	(2,765,336	)	$	(1,794,398	)	$	(4,461,818	)	$	(3,798,482	)

The accounting policies of the business segments are the same as those for the consolidated Company.

Total assets for the two business segments are as follows:

	December 31, 2011		June 30, 2011
ZBB Energy Storage and Power Electronics Systems	$	11,510,497	$	10,161,151
Tier Electronics Power Conversion Systems		3,148,941		2,186,475
Total	$	14,659,438	$	12,347,626