ECOtality, Inc. (ECTY) -NasdaqCM
0.33 Down -1.13 (-77.40%)
Form 8-K for ECOTALITY, INC.
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12-Aug-2013
Other Events
Item 8.01 Other Events
Since the Company's capital raise described in the Current Report on Form 8-K filed on June 20, 2013, the Company has experienced certain material adverse developments that in the aggregate significantly impact its ability to meet its ongoing obligations and to fund anticipated operating losses. These developments include but are not limited to:
(i) The Company's failure to attain sales volumes of its commercial Electric Vehicle Service Equipment ("EVSE") sufficient to support the Company's operations in the second half of 2013. As cash flows from the EV Project declined, it was essential that the Company transition from subsidized installations of EVSEs under the EV Project to regular commercial sales and installations. To this end, the Company reorganized its sales organization to support such efforts. In addition to selling its products directly through its sales force, the Company formed commercial relationships with independent dealers for the purpose of distribution of its EVSEs and related products in the first half of 2013 with the expectation of selling substantial volumes of EVSE products in the second half of 2013. At this time, neither the Company's direct sales force nor the independent dealers have generated sales volumes of its commercial EVSE products sufficient, in combination with other sources of revenue, to support the Company's operations in the second half of 2013.
