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 | |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: | (262) 253-9800 |
Item 2.02.
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Results of Operations and Financial Condition.
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Item 8.01.
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Other Events
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Item 9.01.
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Financial Statements and Exhibits.
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ZBB Energy Corporation | |
Dated: May 14, 2015 | By: /s/ Eric C. Apfelbach |
Name: Eric C. Apfelbach | |
Title: Chief Executive Officer |
Exhibit No. |
Exhibit Description
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Press release, dated May 14, 2015, issued by ZBB Energy Corporation, furnished herewith
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·
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ZBB Energy and Solar Power, Inc. (OTCBB: SOPW) announced a global strategic partnership with an initial supply agreement valued at between $80 Million and $120 Million. The historic solar energy and energy storage partnership includes a $33.4 million initial equity investment and targets SPI's large global solar PV project portfolio. With this infusion of capital, ZBB will have in excess of $45 million of cash on its balance sheet.
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·
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The ZBB ZnBr Agile Flow Battery received key third party performance validation from a top global energy storage lab in Beijing, China. Its breakthrough Agile Flow Battery specifically designed for behind the meter energy storage applications in the commercial and industrial building market. The independent third party validation was performed at one of the world's top battery and grid power control products testing facilities, in Beijing, China.
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·
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The Company achieved the latest payment milestone under the Lotte Chemical utility-scale storage module project for the development and commercialization of a utility-scale flow battery module. The most recent milestone payment was based upon product design approval, which is now completed, and drives the start of procurement to build the 500kWh battery. The successful completion results in a 25% payment against the total contract value. The balance of just over 10% will be paid based upon shipment and commissioning of the 500kWh ZnBr flow battery module and supporting battery management electronics at the Lotte Chemical R&D facility located in Daejeon, South Korea in the first half of calendar year 2016.
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·
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The Company announced the introduction of its breakthrough ZnBr flow battery specifically designed for behind the meter energy storage applications in the commercial and industrial building market. The Agile Flow Battery has been engineered based upon ZBB's industry leading flow battery design expertise, it's breadth of real world application data derived from dozens of installations, and stringent lab testing at ZBB and Meineng Energy, ZBB's China joint venture company. The Agile Flow Battery enables a large amount of energy to be deployed from a relatively small footprint, and is designed for the lowest life cycle cost available for applications requiring more than 2 hours of discharged energy.
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·
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The Company announced that it will commission the industry’s first commercial scale flow battery + lithium ion hybrid energy storage system for a multi-tenant building in Hawaii. The world's first customer side of the meter battery system utilizing flow battery in conjunction with lithium-ion will substantially expand ZBB's market reach. ZBB will provide the integrated hybrid battery system utilizing ZBB's EnerStore® V3.3 zinc bromide flow batteries and a lithium ion energy storage module to provide elevator and common area back-up power for a multi-tenant residential building in Hawaii. The grid interconnected system will consist of the hybrid flow-battery and lithium-ion technology, some solar generation, grid isolation capability and be managed by ZBB's leading power control system product.
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·
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The Company announced the signing of a contract to provide an advanced energy management system for the largest "off-grid" renewable energy installation in the Cayman Islands. The Cayman Technology Centre (CTC), a 38,000 square foot office and retail complex in George Town, Grand Cayman will be "self-sustaining", designed to operate independent of the utility grid. The system's integration is composed of ten 50kWh ZBB's EnerStore V3.3 ZnBr flow batteries, a ZBB EnerSection energy management system, a 380kW PV installation and an 800kW diesel generator.
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The Company announced the introduction of the Agile Hybrid Series, the first energy storage system optimized specifically for high performance, safety, longevity and ability to deliver both power and energy for all available behind-the-meter applications in commercial, industrial, multi-tenant and resort buildings.
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Total revenue decreased to $584,817 as compared to $4,572,318.
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Total costs and expenses decreased to $3,953,457 from $4,576,268
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Loss from operations was $3,368,640 compared to a loss of $3,950.
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Net loss attributable to common shareholders was $3,528,907 compared to a loss of $67,946.
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·
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Loss per share was ($0.09) compared to ($0.004).
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Total revenue decreased to $1,450,332 as compared to $6,602,896.
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Total costs and expenses increased to $11,486,121 from $11,315,746.
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Loss from operations was $10,035,789 compared to a loss of $4,712,850.
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Net loss attributable to common shareholders was $9,663,707 compared to a loss of $4,901,205.
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·
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Loss per share was ($0.27) for both periods.
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ZBB ENERGY CORPORATION
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Condensed Consolidated Statements of Operations
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(Unaudited)
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Three months ended March 31,
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Nine months ended March 31,
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2015
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2014
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2015
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2014
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Revenues
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Product sales
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$ | 287,644 | $ | 822,318 | $ | 951,162 | $ | 2,652,896 | ||||||||
Engineering and development
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297,173 | 750,000 | 499,170 | 950,000 | ||||||||||||
License
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- | 3,000,000 | - | 3,000,000 | ||||||||||||
Total Revenues
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584,817 | 4,572,318 | 1,450,332 | 6,602,896 | ||||||||||||
Costs and Expenses
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||||||||||||||||
Cost of product sales
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275,508 | 546,904 | 783,154 | 1,698,762 | ||||||||||||
Cost of engineering and development
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33,078 | 65,560 | 202,223 | 109,196 | ||||||||||||
Advanced engineering and development
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1,645,665 | 1,095,589 | 4,424,061 | 3,400,318 | ||||||||||||
Selling, general, and administrative
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1,837,196 | 2,667,569 | 5,600,983 | 5,221,065 | ||||||||||||
Depreciation and amortization
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162,010 | 200,646 | 475,700 | 886,405 | ||||||||||||
Total Costs and Expenses
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3,953,457 | 4,576,268 | 11,486,121 | 11,315,746 | ||||||||||||
Loss from Operations
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(3,368,640 | ) | (3,950 | ) | (10,035,789 | ) | (4,712,850 | ) | ||||||||
Other Income (Expense)
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||||||||||||||||
Equity in loss of investee company
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(209,729 | ) | (55,428 | ) | (517,702 | ) | (303,910 | ) | ||||||||
Gain on investment in investee company
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- | - | 1,257,407 | - | ||||||||||||
Interest income
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7,300 | 1,435 | 18,790 | 2,944 | ||||||||||||
Interest expense
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(25,197 | ) | (27,153 | ) | (79,047 | ) | (124,668 | ) | ||||||||
Other income (expense)
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2,984 | - | 2,984 | 896 | ||||||||||||
Total Other Income (Expense)
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(224,642 | ) | (81,146 | ) | 682,432 | (424,738 | ) | |||||||||
Loss before benefit for Income Taxes
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(3,593,282 | ) | (85,096 | ) | (9,353,357 | ) | (5,137,588 | ) | ||||||||
Benefit for Income Taxes
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- | (38,598 | ) | - | (86,848 | ) | ||||||||||
Net loss
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(3,593,282 | ) | (46,498 | ) | (9,353,357 | ) | (5,050,740 | ) | ||||||||
Net loss attributable to noncontrolling interest
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137,211 | 55,428 | 363,221 | 303,910 | ||||||||||||
Gain attributable to noncontrolling interest
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- | - | (481,870 | ) | - | |||||||||||
Net Income (Loss) Attributable to ZBB Energy Corporation
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(3,456,071 | ) | 8,930 | (9,472,006 | ) | (4,746,830 | ) | |||||||||
Preferred Stock Dividend
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(72,836 | ) | (76,876 | ) | (191,701 | ) | (154,375 | ) | ||||||||
Net Loss Attributable to Common Shareholders
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$ | (3,528,907 | ) | $ | (67,946 | ) | $ | (9,663,707 | ) | $ | (4,901,205 | ) | ||||
Net Loss per share
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Basic and diluted
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$ | (0.09 | ) | $ | (0.004 | ) | $ | (0.27 | ) | $ | (0.27 | ) | ||||
Weighted average shares-basic and diluted
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39,073,084 | 18,690,642 | 36,227,708 | 18,045,685 |
ZBB ENERGY CORPORATION
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Condensed Consolidated Balance Sheets
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(Unaudited)
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March 31, 2015
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June 30, 2014
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Assets
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Current assets:
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Cash and cash equivalents
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$ | 15,045,073 | $ | 10,360,721 | ||||
Restricted cash on deposit
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60,178 | 69,901 | ||||||
Accounts receivable, net
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235,286 | 1,051,024 | ||||||
Inventories, net
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1,189,228 | 1,352,970 | ||||||
Prepaid expenses and other current assets
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420,253 | 295,814 | ||||||
Refundable income tax credit
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74,525 | 91,191 | ||||||
Note receivable
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156,115 | - | ||||||
Total current assets
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17,180,658 | 13,221,621 | ||||||
Long-term assets:
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Property, plant and equipment, net
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4,315,799 | 4,382,203 | ||||||
Investment in investee company
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2,385,945 | 1,646,240 | ||||||
Goodwill
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803,079 | 803,079 | ||||||
Total assets
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$ | 24,685,481 | $ | 20,053,143 | ||||
Liabilities and Equity
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Current liabilities:
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Current maturities of bank loans and notes payable
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$ | 358,511 | $ | 351,142 | ||||
Accounts payable
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556,055 | 589,642 | ||||||
Accrued expenses
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1,827,891 | 2,621,479 | ||||||
Customer deposits
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782,772 | 741,145 | ||||||
Accrued compensation and benefits
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356,095 | 195,181 | ||||||
Total current liabilities
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3,881,324 | 4,498,589 | ||||||
Long-term liabilities:
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Bank loans and notes payable, net of current maturities
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1,775,631 | 2,045,127 | ||||||
Total liabilities
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5,656,955 | 6,543,716 | ||||||
Commitments and contingencies (Note 12)
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Equity
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Series B redeemable convertible preferred stock ($0.01 par value,
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$1,000 face value) 3,000 shares authorized and issued, 2,575 shares outstanding, preference in liquidation of $5,561,211 and $5,347,994 as of March 31, 2015 and June 30, 2014, respectively
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26 | 26 | ||||||
Common stock ($0.01 par value); 150,000,000 authorized,
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39,101,209 and 25,651,389 shares issued and outstanding as of March 31, 2015 and June 30, 2014, respectively
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1,099,327 | 964,828 | ||||||
Additional paid-in capital
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116,998,408 | 102,286,450 | ||||||
Accumulated deficit
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(99,260,247 | ) | (89,788,242 | ) | ||||
Accumulated other comprehensive loss
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(1,587,633 | ) | (1,599,875 | ) | ||||
Total ZBB Energy Corporation Equity
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17,249,881 | 11,863,187 | ||||||
Noncontrolling interest
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1,778,645 | 1,646,240 | ||||||
Total equity
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19,028,526 | 13,509,427 | ||||||
Total liabilities and equity
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$ | 24,685,481 | $ | 20,053,143 |
ZBB ENERGY CORPORATION
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Condensed Consolidated Statements of Cash Flows
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(Unaudited)
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Nine months ended March 31,
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2015
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2014
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Cash flows from operating activities
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Net loss
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$ | (9,353,357 | ) | $ | (5,050,740 | ) | ||
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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475,700 | 580,379 | ||||||
Amortization of intangible assets
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- | 411,073 | ||||||
Amortization of discounts and debt issuance costs on notes payable
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- | 14,566 | ||||||
Stock-based compensation, net
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1,156,720 | 450,796 | ||||||
Equity in loss of investee company
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517,702 | 303,910 | ||||||
Gain on investment in investee company
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(1,257,407 | ) | - | |||||
Interest accreted on note receivable
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(6,115 | ) | - | |||||
Changes in assets and liabilities
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Accounts receivable
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815,738 | (136,095 | ) | |||||
Inventories
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163,742 | 823,670 | ||||||
Prepaids and other current assets
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(124,439 | ) | (51,346 | ) | ||||
Refundable income taxes
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16,666 | 43,253 | ||||||
Accounts payable
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(33,587 | ) | 62,213 | |||||
Accrued expenses
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(773,189 | ) | 29,610 | |||||
Customer deposits
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41,627 | 715,707 | ||||||
Accrued compensation and benefits
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160,914 | (991,967 | ) | |||||
Net cash used in operating activities
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(8,199,285 | ) | (2,794,971 | ) | ||||
Cash flows from investing activities
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Change in restricted cash
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9,723 | (9,713 | ) | |||||
Expenditures for property and equipment
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(409,296 | ) | (39,907 | ) | ||||
Investment in note receivable
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(150,000 | ) | - | |||||
Net cash used in investing activities
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(549,573 | ) | (49,620 | ) | ||||
Cash flows from financing activities
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Repayments of bank loans and notes payable
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(262,127 | ) | (843,262 | ) | ||||
Proceeds from issuance of preferred stock and warrants
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- | 3,000,000 | ||||||
Preferred stock issuance costs
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- | (96,967 | ) | |||||
Proceeds from issuance of common stock
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14,837,760 | 14,231,250 | ||||||
Common stock issuance costs
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(1,148,023 | ) | (1,149,786 | ) | ||||
Proceeds from noncontrolling interest
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13,756 | - | ||||||
Net cash provided by financing activities
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13,441,366 | 15,141,235 | ||||||
Effect of exchange rate changes on cash and cash equivalents
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(8,156 | ) | - | |||||
Net increase in cash and cash equivalents
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4,684,352 | 12,296,644 | ||||||
Cash and cash equivalents - beginning of period
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10,360,721 | 1,096,621 | ||||||
Cash and cash equivalents - end of period
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$ | 15,045,073 | $ | 13,393,265 |