Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Dec. 31, 2012
Liquidity [Abstract]  



The Company has evaluated its expected cash requirements over the next twelve months, which include, but are not limited to, investments in additional sales and marketing and product development resources, capital expenditures, and working capital requirements. The Company believes it will have, sufficient funds for at least the next twelve months from December 31, 2012, as it expects to cover its anticipated near-term liquidity requirements through cash on hand, collections on additional customer billings, proceeds from additional private placements of equity securities and borrowings under the existing stockholder credit facilities. 


During the six months ended December 31, 2012, the Company issued 2,535,093 shares of common stock and 507,019 warrants for total net proceeds approximating $981,000, which includes net proceeds of approximately $77,000 from the sale and issuance of 241,436 shares of our common stock and 48,297 five (5) year warrants during the three months ended December 31, 2012. (See Note 6)


 As of December 31, 2012, the Company has borrowing availability totaling $1,450,000 under existing credit facilities. During the six months ended December 31, 2012, we had borrowed approximately $450,000 under our existing credit facilities. (See Note 4).


We anticipate that we will require additional financing during 2013 in order to support our business growth. The Company intends to continue to seek capital through the private placement of securities. The timing of the Company’s need for additional capital will depend in part on its future operating performance in terms of revenue growth and the level of operating expenses and capital expenditures incurred.


However, there is no guarantee the Company will be able to obtain additional required funds in the future or that funds will be available on terms acceptable to the Company. If such funds are not available, management will be required to curtail its investments in additional sales and marketing and product development resources, and capital expenditures, which may have a material adverse effect on the Company’s future cash flows and results of operations, and its ability to continue operating as a going concern.