XML 27 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
3. GOING CONCERN
12 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

The accompanying 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 $11,878,915 attributable to ZBB Energy Corporation for the year ended June 30, 2013 and as of June 30, 2013 has an accumulated deficit of $80,932,824 and total ZBB Energy Corporation equity of $3,822,202.  The ability of the Company to settle its total liabilities of $6,996,751 and to continue as a going concern is dependent upon obtaining additional financing, closing additional sales orders and achieving profitability.  The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

 

We believe that cash and cash equivalents on hand at June 30, 2013 plus proceeds from a $3 million preferred equity financing that closed on September 27, 2013 (Note 15), and other potential sources of cash, will be sufficient to fund our current operations through the second quarter of fiscal year 2014 and we will require additional investment capital or other funding to maintain our operations thereafter. Accordingly, the Company is actively exploring various alternatives including strategic partnership transactions that may be available to the Company.  We are currently in active discussions with several parties regarding potential strategic partnership and/or license and development transactions.  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.