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OTHER RELATED PARTY TRANSACTIONS
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9 Months Ended | |
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Mar. 31, 2014
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| Related Party Transactions [Abstract] | ||
| RELATED PARTY TRANSACTIONS |
NOTE 9 OTHER RELATED PARTY TRANSACTIONS
Sublease Agreement
Effective July 1, 2013, the Company relocated its principal office and manufacturing to Vista, California. The Company entered into a month-to-month sub-lease agreement for shared space with Epic Boats, a related party, with monthly payments of approximately $4,950. On December 1, 2013, the monthly payment increased to $7,920 due to Flux Power acquiring more facility square footage from Epic Boats. On March 1, 2014, the sub-lease agreement was terminated due to the majority of Epic Boats facility usage vacated; concurrently Epic Boat’s underlying lease with the property owner was cancelled and replaced by a lease with Flux Power as lessee. On March 1, 2014, Flux Power as the sub-lesser entered into a new sublease agreement with Epic Boats as the sub-lessee, whereas Epic Boats agrees to pay Flux Power 10% of facility costs through June 30, 2014, with March as a transition month requiring 20% of facility costs. Epic Boats Inventory Deposit
As of March 31, 2014, the Company maintains a prepaid deposit from Epic Boats in the amount of $136,000. The deposit is related to anticipate sales of batteries from the Company to Epic Boats that have yet to be delivered. |