Wisconsin
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001-33540
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39-1987014
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(State or other jurisdiction
of incorporation)
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(Commission
file number)
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(IRS Employer
Identification Number)
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N93 W14475 Whittaker Way, Menomonee Falls, Wisconsin |
53051
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(Address of principal executive offices) |
(Zip Code)
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Item
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2.02 Results of Operations and Financial Condition.
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Item
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9.01. Financial Statements and Exhibits.
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ZBB Energy Corporation | |
Dated: September 27, 2013 | By: /s/ Eric C. Apfelbach |
Name: Eric C. Apfelbach | |
Title: President and CEO | |
Exhibit No.
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Exhibit Description
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Press release, dated September 27, 2013, issued by ZBB Energy Corporation, furnished herewith
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·
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Product sales increased 224% to $7,305,516 from $2,252,412.
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·
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Product sales gross profit increased to $1,030,239 compared to $184,704 in the prior year.
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·
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Total revenues, including engineering and development revenue, increased 61% to $7,723,699 from $4,805,568.
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·
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Net loss decreased to $11,878,915 compared to $13,710,226. The decrease in net loss is due primarily to the increase in commercial gross profit, reduction in engineering and development costs and lower interest expense.
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·
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Loss per share declined to ($0.15) from ($0.37).
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·
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Product sales increased 9.1% to $933,180 from $855,459.
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Product sales gross profit of $177,263 compared to a loss of $115,268 in the prior year quarter.
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Total revenues, including engineering and development revenue, decreased 4.5% to $1,033,180 from $1,081,499.
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Net loss decreased to $3,088,356 compared to $5,831,581. The decrease in net loss is due primarily to the reduction in advanced engineering and development costs and lower interest expense.
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·
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Loss per share declined to ($0.03) from ($0.13).
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·
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Secured bank financing of $1,140,000 guaranteed by The Export-Import Bank of the United States to finance export of ZBB Energy's power control and storage systems.
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Received Australian research tax refund credit of $192,000.
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Participated as a panel expert on energy storage at the AGRION Energy Storage Economics 2.0 for New York City and Beyond event in New York, NY.
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Shipped the 40 unit Beachcomber unit for commissioning this fall on the island of Tetiaroa in French Polynesia. See their video at link.
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Shipped the previously announced order from BPC Engineering (Moscow, Russia) for a complete ZBB EnerSystem, consisting of a ZBB EnerStore® flow battery and ZBB EnerSection® power and control center.
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·
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Received two follow-on orders from Lotte Chemical in South Korea, for a ZBB EnerSystem consisting of five ZBB EnerStore flow batteries, totaling 250 kWh, and a ZBB EnerSection power and control center that connects the flow batteries and PV solar arrays to the AC grid via a 125 kW grid-tie inverter. In addition, Lotte has placed an order for three (3) EnerStore modules in unassembled kit form that will be used to conduct assembly training.
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Closed a prototype development order for a large utility. The prototype development includes two units that provide power conditioning and voltage control on distribution feeders. Follow-on orders are expected after successful utility testing of the prototypes.
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Closed a military related order for 15 custom developed converters. Follow-on orders are somewhat dependent on military funding.
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Successfully commissioned a “first-in-world” multi-generation source ZBB EnerSystem that provides uninterrupted power to DC voltage lighting loads, rack power to servers and other miscellaneous loads at VISA’s flagship data center.
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Commissioned a “first-ever” ZBB EnerSection with lead acid batteries in a utility-owned demonstration facility with onsite polar PV and wind turbine generation.
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Announced two distinct technology initiatives to enhance the performance of the cell stacks utilized in the current ZBB EnerStore 50kWh project, and to develop a low cost 500 kWh flow battery system that leverages these performance gains.
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ZBB ENERGY CORPORATION
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Consolidated Statements of Operations
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Three months ended June 30,
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Year ended June 30,
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2013
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2012
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2013
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2012
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Revenues
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Product sales
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$ | 933,180 | $ | 855,459 | $ | 7,305,516 | $ | 2,252,412 | ||||||||
Engineering and development
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100,000 | 226,040 | 418,183 | 2,553,156 | ||||||||||||
Total Revenues
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1,033,180 | 1,081,499 | 7,723,699 | 4,805,568 | ||||||||||||
Costs and Expenses
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Cost of product sales
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755,917 | 971,087 | 6,275,277 | 2,067,708 | ||||||||||||
Cost of engineering and development
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46,579 | 52,051 | 153,762 | 1,050,572 | ||||||||||||
Advanced engineering and development
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1,437,732 | 2,182,517 | 5,266,418 | 6,141,903 | ||||||||||||
Selling, general, and administrative
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1,504,480 | 1,779,793 | 6,235,508 | 6,325,520 | ||||||||||||
Depreciation and amortization
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369,530 | 539,339 | 1,392,033 | 1,675,161 | ||||||||||||
Total Costs and Expenses
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4,114,238 | 5,524,787 | 19,322,998 | 17,260,864 | ||||||||||||
Loss from Operations
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(3,081,058 | ) | (4,443,288 | ) | (11,599,299 | ) | (12,455,296 | ) | ||||||||
Other Income (Expense)
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Equity in loss of investee company
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(128,213 | ) | (138,206 | ) | (779,768 | ) | (197,618 | ) | ||||||||
Interest income
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1,000 | 806 | 2,896 | 13,616 | ||||||||||||
Interest expense
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(52,336 | ) | (1,364,166 | ) | (186,375 | ) | (1,539,160 | ) | ||||||||
Other income (expense)
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- | - | (45,000 | ) | 4,263 | |||||||||||
Total Other Income (Expense)
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(179,549 | ) | (1,501,566 | ) | (1,008,247 | ) | (1,718,899 | ) | ||||||||
Loss before provision (benefit) for Income Taxes
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(3,260,607 | ) | (5,944,854 | ) | (12,607,546 | ) | (14,174,195 | ) | ||||||||
Provision (benefit) for Income Taxes
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(44,038 | ) | (33,798 | ) | (154,904 | ) | (253,255 | ) | ||||||||
Net loss
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(3,216,569 | ) | (5,911,056 | ) | (12,452,642 | ) | (13,920,940 | ) | ||||||||
Net loss attributable to noncontrolling interest
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128,213 | 79,475 | 573,727 | 210,714 | ||||||||||||
Net Loss Attributable to ZBB Energy Corporation
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$ | (3,088,356 | ) | $ | (5,831,581 | ) | $ | (11,878,915 | ) | $ | (13,710,226 | ) | ||||
Net Loss per share
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Basic and diluted
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(0.03 | ) | (0.13 | ) | (0.15 | ) | (0.37 | ) | ||||||||
Weighted average shares-basic and diluted
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88,330,559 | 45,015,055 | 80,410,005 | 37,156,390 |
ZBB ENERGY CORPORATION
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Consolidated Balance Sheets
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Year ended June 30,
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2013
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2012
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Assets
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Current assets:
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Cash and cash equivalents
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$ | 1,096,621 | $ | 7,763,217 | ||||
Restricted cash on deposit
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60,000 | 60,000 | ||||||
Accounts receivable, net
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446,925 | 480,563 | ||||||
Inventories
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2,459,776 | 2,912,207 | ||||||
Prepaid and other current assets
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224,542 | 187,448 | ||||||
Refundable income tax credit
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137,228 | 185,545 | ||||||
Total current assets
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4,425,092 | 11,588,980 | ||||||
Long-term assets:
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Property, plant and equipment, net
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5,179,707 | 5,484,545 | ||||||
Investment in investee company
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2,304,122 | 3,083,889 | ||||||
Intangible assets, net
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411,073 | 1,143,122 | ||||||
Goodwill
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803,079 | 803,079 | ||||||
Total assets
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$ | 13,123,073 | $ | 22,103,615 | ||||
Liabilities and Equity
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Current liabilities:
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Bank loans and notes payable
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$ | 885,786 | $ | 1,022,826 | ||||
Accounts payable
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570,932 | 1,899,029 | ||||||
Accrued expenses
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785,532 | 1,289,138 | ||||||
Customer deposits
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2,194,262 | 1,315,309 | ||||||
Accrued compensation and benefits
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164,437 | 335,369 | ||||||
Total current liabilities
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4,600,949 | 5,861,671 | ||||||
Long-term liabilities:
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Bank loans and notes payable
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2,395,802 | 2,915,134 | ||||||
Total liabilities
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6,996,751 | 8,776,805 | ||||||
Equity
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Series A preferred stock ($0.01 par value, $10,000 face value)
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10,000,000 authorized and no shares issued
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- | - | ||||||
Common stock ($0.01 par value); 150,000,000 authorized,
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88,538,801 and 72,977,248 shares issued and outstanding
as of June 30, 2013 and 2012, respectively
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885,389 | 729,773 | ||||||
Additional paid-in capital
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85,464,055 | 80,363,519 | ||||||
Accumulated deficit
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(80,932,824 | ) | (69,053,909 | ) | ||||
Accumulated other comprehensive loss
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(1,594,418 | ) | (1,584,921 | ) | ||||
Total ZBB Energy Corporation Equity
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3,822,202 | 10,454,462 | ||||||
Noncontrolling interest
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2,304,120 | 2,872,348 | ||||||
Total equity
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6,126,322 | 13,326,810 | ||||||
Total liabilities and equity
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$ | 13,123,073 | $ | 22,103,615 |
ZBB Energy Corporation
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Consolidated Statements of Cash Flows
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Year ended June 30,
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2013
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2012
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Cash flows from operating activities
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Net loss
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$ | (12,452,642 | ) | $ | (13,920,940 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities:
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Depreciation of property, plant and equipment
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798,424 | 929,776 | ||||||
Amortization of intangible assets
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732,049 | 745,385 | ||||||
Stock-based compensation
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785,260 | 1,586,798 | ||||||
Equity in loss of investee company
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779,768 | 197,618 | ||||||
Payment of interest with common stock
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- | 66,500 | ||||||
Amortization of discounts and debt issuance costs on notes payable
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14,566 | 1,069,950 | ||||||
Non-cash expense attributed to accretion of note payable
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45,000 | - | ||||||
Changes in assets and liabilities
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Accounts receivable
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33,638 | (308,941 | ) | |||||
Inventories
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96,445 | (1,326,357 | ) | |||||
Prepaids and other current assets
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(51,660 | ) | (130,986 | ) | ||||
Refundable income taxes
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48,317 | (20,905 | ) | |||||
Accounts payable
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(1,328,097 | ) | 937,808 | |||||
Accrued compensation and benefits
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(170,932 | ) | 45,373 | |||||
Accrued expenses
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(467,475 | ) | 618,026 | |||||
Customer deposits
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878,953 | (213,173 | ) | |||||
Net cash used in operating activities
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(10,258,386 | ) | (9,724,068 | ) | ||||
Cash flows from investing activities
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Expenditures for property and equipment
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(137,601 | ) | (1,647,450 | ) | ||||
Investment in investee company
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- | (3,281,507 | ) | |||||
Deposits of restricted cash
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- | (60,000 | ) | |||||
Net cash used in investing activities
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(137,601 | ) | (4,988,957 | ) | ||||
Cash flows from financing activities
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Proceeds from issuance of notes payable
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938,250 | 2,465,000 | ||||||
Repayments of bank loans and notes payable
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(1,654,593 | ) | (3,243,184 | ) | ||||
Notes payable issuance costs
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(29,113 | ) | (227,693 | ) | ||||
Proceeds from issuance of Series A preferred stock
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- | 2,197,240 | ||||||
Proceeds from issuance of common stock
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4,648,499 | 17,138,150 | ||||||
Common stock issuance costs
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(177,607 | ) | (1,810,598 | ) | ||||
Proceeds from noncontrolling interest
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5,500 | 3,083,062 | ||||||
Net cash provided by financing activities
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3,730,936 | 19,601,977 | ||||||
Effect of exchange rate changes on cash and cash equivalents
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(1,545 | ) | (36,330 | ) | ||||
Net increase (decrease) in cash and cash equivalents
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(6,666,596 | ) | 4,852,622 | |||||
Cash and cash equivalents - beginning of period
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7,763,217 | 2,910,595 | ||||||
Cash and cash equivalents - end of period
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$ | 1,096,621 | $ | 7,763,217 |