Annual report pursuant to Section 13 and 15(d)

Note 2 - Going Concern

Note 2 - Going Concern
12 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Liquiditiy and Going Concern [Text Block]
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred an accumulated deficit of $
June 30, 2017
and a net loss of
for the year ended
June 30, 2017.
To date, our revenues and operating cash flows have
been sufficient to sustain our operations and we have relied on debt and equity financing to fund our operations. These factors raise substantial doubt about our ability to continue as a going concern for the
months following the date of our Annual Report on Form
September 21, 2017.
Our ability to continue as a going concern is dependent upon our ability to raise additional capital on a timely basis until such time as revenues and related cash flows are sufficient to fund our operations.
Management has undertaken steps as part of a plan to improve operations with the goal of sustaining our op
erations. These steps include (a) developing additional products to cater to the Class
and Class
industrial equipment markets; and (b) expand our sales force throughout the United States. In that regard, the Company has increased its research and development efforts to focus on completing the development of energy storage solutions that can be used on larger fork lifts and has also doubled its sales force since
December 2016
with personnel having significant experience in the industrial equipment handling industry.
also plans to raise additional required capital through the sale of equity securities through private placements, convertible debt placements and the utilization of our existing related-party credit facility.
We currently have a line of credit facility with our largest shareholder with a maximum principal amount available of
As of
June 30, 2017
September 21, 2017,
an aggregate of
respectively was available for future draws at the lender’s discretion. The related party credit facility matures on
January 31, 2019,
be further extended by the lender (see Notes
Although management believes that the additional required funding will be obtained, there is
guarantee we will be able to obtain the additional required funds on a timely basis or that funds will be available on terms acceptable to us. If such funds are
available when required, management will be required to curtail its investments in additional sales and marketing and product development resources, and capital expenditures, which
have a material adverse effect on our future cash flows and results of operations, and our ability to continue operating as a going concern. The accompanying financial statements do
include any adjustments that would be necessary should we be unable to continue as a going concern and, therefore, be required to liquidate its assets and discharge its liabilities in other than the normal course of business and at amounts that
differ from those reflected in the accompanying consolidated financial statements.