BUSINESS SEGMENT INFORMATION

9 Months Ended

Mar. 31, 2012

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 March 31,				Nine months ended March 31,
	2012		2011		2012		2011
Revenues:
ZBB Energy Storage and Power Electronics Systems	$	1,524,977	$	-	$	3,214,345	$	234,681
Tier Electronics Power Conversion Systems		120,314		205,971		509,724		205,971
Total	$	1,645,291	$	205,971	$	3,724,069	$	440,652

	Three months ended March 31,						Nine months ended March 31,
	2012			2011			2012			2011
Loss from Operations:
ZBB Energy Storage and Power Electronics Systems	$	(3,316,233	)	$	(2,653,756	)	$	(6,874,455	)	$	(6,452,238	)
Tier Electronics Power Conversion Systems		(233,955	)		(320,101	)		(1,137,551	)		(320,101	)
Total	$	(3,550,188	)	$	(2,973,857	)	$	(8,012,006	)	$	(6,772,339	)

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:

	March 31, 2012		June 30, 2011
ZBB Energy Storage and Power Electronics Systems	$	9,997,163	$	10,161,151
Tier Electronics Power Conversion Systems		3,598,734		2,186,475
Total	$	13,595,897	$	12,347,626