MILWAUKEE, WI — (Marketwire) — 09/21/12 — ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of intelligent, renewable energy power platforms, released its fiscal year June 30, 2012 earnings report on September 6, 2012, held its annual earnings conference call on September 7, 2012, and filed its Annual Report on Form 10-K with the SEC on September 19, 2012. During the annual earnings conference call and in the Form 10-K, the Company disclosed certain financial information including the following:
On June 19, 2012, the Company closed its underwritten secondary offering yielding net proceeds of $10.8 million and on July 5, 2012 the Company closed the over-allotment option for $1.6 million yielding total net proceeds of $12.4 million. The Company redeemed its previously issued convertible debt in June 2012 with the proceeds from the offering. It also redeemed the previously outstanding preferred stock in a non-cash exchange for notes receivable.
The Company-s cash balance at the end of the June 2012 quarter was $7.8 million.
On September 7, 2012, the Company announced a sales contract backlog of $6.2 million, including product backlog of $5.7 million and engineering contract backlog of $500,000. Of this $6.2 million of backlog, it has received $1.3 million in advance payments from customers. Thus, shipment of the product backlog will result in $4.3 million of cash flow to the Company. The engineering contract backlog will result in cash flow of $75,000 per quarter for the next 5 quarters. The Company has already procured the majority of the inventory required to fulfill its backlog, and therefore it expects the majority of the product and engineering contract backlog to result in net cash flow to the Company of approximately $4 million.
The Company-s current cash burn, not including inventory purchases, is running approximately $900,000 per month in fiscal year 2013, and the Company expects the net cash burn to decrease during the year as we generate cash flow from the backlog.
The auditors- report received from the Company-s independent public accounting firm on its audited financial statements for the fiscal year ended June 30, 2012 contained a going concern explanatory note, which reflects no change from the 2009 and 2010 auditors- report. The Company believes that cash on hand at June 30, 2012 and other sources of cash, as described above, will be sufficient to fund our current operations through the end of fiscal 2013. The Company is also currently implementing certain plans designed to generate additional sales and reduce costs and is exploring various alternatives including strategic partnership transactions, and/or government programs that may be available to the Company.
As previously reported, in connection with his appointment to the position of Vice President of Sales and Product Marketing on August 24, 2012, Tony Siebert was awarded inducement options. In accordance with applicable NYSE MKT requirements, the Company is reporting the following additional details regarding the terms of these inducement options. Mr. Siebert was awarded two inducement option grants to purchase a total of 200,000 shares of common stock. The first covered 150,000 shares and provided for vesting as follows: one-third on grant and the balance in 24 monthly installments beginning on September 24, 2012 and ending on August 24, 2015. The second grant covered 50,000 shares will vest on June 30, 2013 based on the achievement of certain performance vesting conditions. The per share exercise price of the inducement options was $0.38 which was the closing price of our common stock on the NYSE MKT on August 24, 2012.
ZBB Energy Corporation (NYSE MKT: ZBB) designs, develops, and manufactures advanced energy storage, power electronic systems, and engineered custom and semi-custom products targeted at the growing global need for distributed renewable energy, energy efficiency, power quality, and grid modernization. ZBB and its power electronics subsidiary, Tier Electronics, LLC, have developed a portfolio of integrated power management platforms that combine advanced power and energy controls plus energy storage to optimize renewable energy sources and conventional power inputs whether connected to the grid or not. Tier Electronics participates in the energy efficiency markets through their hybrid vehicle control systems, and power quality markets with their line of regulation solutions. Together, these platforms solve a wide range of electrical system challenges in global markets for utility, governmental, commercial, industrial and residential end customers. Founded in 1986, ZBB-s platforms ensure optimal efficiencies today, while offering the flexibility to adapt and scale to future requirements. ZBB-s corporate offices and production facilities are located in Menomonee Falls, WI, USA with offices also located in Perth, Western Australia. For more information, visit: .
Certain statements made in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or other comparable terms. Forward-looking statements in this press release may address the following subjects among others: statements regarding the sufficiency of our capital resources, expected operating losses, expected revenues, expected expenses and our expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management-s Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Lewis W. Kreps
Three Part Advisors, LLC
214-599-7955
or
David Mossberg
Three Part Advisors, LLC
817-310-0051
You must be logged in to post a comment Login