On Flux Power entered into a credit facility agreement with Esenjay with a maximum borrowing amount of Proceeds from the credit facility are to be used to purchase inventory and related operational expenses and accrue interest at a rate of per annum (the “Inventory Line of Credit”). The outstanding balance of the Inventory Line of Credit and all accrued interest is due and payable on Funds received from Esenjay since were transferred to the Inventory Line of Credit resulting in outstanding as of and available for future draws.

 

We have an unrestricted credit facility with Esenjay which has a maximum borrowing amount of is convertible at a rate of per share, bears interest at per annum and matures on the “Unrestricted Line of Credit”). The outstanding principal balance of the Unrestricted Line of Credit as of was resulting in available for future draws. 

 

During the and months ended the Company recorded approximately and respectively of interest expense in the accompanying condensed consolidated statements of operations related to the Unrestricted Line of Credit and Inventory Line of Credit. Advances under both the Unrestricted Line of Credit and Inventory Line of Credit are made solely at the discretion of Esenjay and are secured by substantially all of Flux’s tangible and intangible assets.

 

 

On we formalized an oral agreement for advances totaling received from a shareholder (“Shareholder”) into a written Convertible Promissory Note (the “Convertible Note”). Borrowings under the Convertible Note accrue interest at per annum, with all unpaid principal and accrued interest due and payable on In addition, at the election of Shareholder, all or any portion of the outstanding principal, accrued but unpaid interest and/or late charges under the Convertible Note be converted into shares of the Company’s common stock at a conversion price of per share; provided, however, the Shareholder shall have the right to convert any portion of the Convertible Note to the extent that the Shareholder would beneficially own in excess of of the total number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock issuable upon conversion of the Convertible Note.  During the and months ended we recorded and of interest expense in the accompanying condensed consolidated statements of operations related to the Convertible Note.