The Company subleased office and manufacturing space to Epic Boats (an entity founded and controlled by Chris Anthony, a board member and former Chief Executive Officer) in the facility in Vista, California pursuant to a month-to-month sublease agreement.  Pursuant to this agreement, Epic Boats paid Flux Power 10% of facility costs through the end of the Company’s lease agreement which was June 30, 2019.

The Company received $0 and $4,000 for the three months ended September 30, 2019 and 2018 from Epic Boats under the sublease rental agreement which is recorded as a reduction to rent expense and customer deposits.