SUBSEQUENT EVENTS |
12 Months Ended | |
|---|---|---|
Jun. 30, 2015 | ||
| Subsequent Events [Abstract] | ||
| SUBSEQUENT EVENTS |
NOTE 14 SUBSEQUENT EVENTS Management has evaluated events subsequent to June 30, 2015, through the date of this filing with the SEC for transactions and other events that may require adjustment of and/or disclosure in such financial statements. In July, August and September 2015, we borrowed an aggregate of $975,000 from Esenjay under our related party credit facilities. On July 27, 2015 we issued 75,000 shares of common stock to Catalyst Global, our Investor Relations firm, as part of our annual contract. The stock price on the date of grant was $0.04 per share.
On July 21, 2015, the Board of Directors decided to abandon a proposed acquisition of KleenSpeed Technologies, an energy storage solutions company focused on consumer applications, controlled by Mr. Collins. The KleenSpeed acquisition was contemplated in a non-binding letter of intent disclosed in the Company’s Form 8-K filed with the SEC on June 27, 2013. After two years of negotiations, the Company and KleenSpeed were unable to agree on a strategy or suitable terms for the acquisition, and the transaction was ultimately abandoned by the Company. On July 31, 2015, the Agency Agreement with SRA to raise securities for the Company reached its termination date, without intention by the Company to renew. The Company is pursuing other alternatives to raise capital. On August 10, 2015, we received and accepted the resignation from Mr. Timothy Collins as executive chairman and director of Flux Power Holdings, Inc. (the “Company”), effective August 10, 2015.
On September 3, 2015, we entered into a Loan Conversion Agreement (“Conversion Agreement”) with Esenjay pursuant to which we agreed to issue 51,171,025 shares of our common stock based on a $0.04 per share in exchange for the cancellation of a total principal amount of $2,000,000 (“Principal Amount”) outstanding under the Line of Credit, plus $46,841 in accrued and unpaid interest as of September 3, 2015. In addition, under the Conversion Agreement, we agreed to allow Esenjay the right to convert additional amounts to be borrowed under Revolving Note, Bridge Note and Line of Credit at the conversion price equal to the future offering price of our Shares. Subsequent draws since the conversion date were $575,000. |