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3. GOING CONCERN
6 Months Ended
Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

 

The accompanying condensed consolidated financial statements have been prepared on the basis of a going concern which contemplates that the Company will be able to realize assets and discharge its liabilities in the normal course of business. Accordingly, they do not give effect to any adjustments that would be necessary should the Company be required to liquidate its assets. The Company incurred a net loss of $5,966,247 attributable to ZBB Energy Corporation for the six months ended December 31, 2012 and as of December 31, 2012 has an accumulated deficit of $75,020,156 and total ZBB Energy Corporation equity of $6,502,761.  The ability of the Company to settle its total liabilities of $7,946,181 and to continue as a going concern is dependent upon obtaining additional financing, closing additional sales orders and achieving profitability.  The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

 As described in detail in Notes 8 and 11, in the year ended June 30, 2012 the Company raised approximately $2.2 million in net proceeds through the issuance of Zero Coupon Convertible Subordinated Notes in May 2012 (subsequently repaid in full by June 30, 2012), approximately $2.2 million in net proceeds through the issuance of shares of Series A Preferred Stock pursuant to the Socius Agreement and approximately $15.5 million through the issuance of shares of common stock in various transactions to certain investors.

 The Company believes it has sufficient capital to pursue current operations through the third quarter of fiscal year 2013 and will require additional investment capital or other funding during the fourth quarter of fiscal 2013 to support its current business.  The Company is currently exploring various possible financing options that may be available to it, which may include a sale of securities and/or strategic partnership transactions.  The Company has no commitments to obtain any additional funds, and there can be no assurance such funds will be available on acceptable terms or at all.  If the Company is unable to obtain additional required funding, the Company’s financial condition and results of operations may be materially adversely affected and the Company may not be able to continue operations.