OTHER RELATED PARTY TRANSACTIONS |
3 Months Ended | |
|---|---|---|
Sep. 30, 2015 | ||
| Related Party Transactions [Abstract] | ||
| OTHER RELATED PARTY TRANSACTIONS |
NOTE 9 OTHER RELATED PARTY TRANSACTIONS
Transactions with Epic Boats
Effective July 1, 2013, we relocated our principal office and manufacturing to the Epic Boats (an entity founded and controlled by Chris Anthony, our board member and former Chief Executive Officer) facility in Vista, California. We entered into a month-to-month sublease agreement for shared space with Epic Boats.
On March 1, 2014, the landlord terminated its lease with Epic Boats resulting in the termination of our previous sublease agreement with Epic Boats, and entered into a lease with Flux Power as lessee. On February 25, 2014, Flux Power entered into a two-year sublease agreement to rent the property, at $12,130 per month, with an annual increase of 3%. The agreement provides for monthly payments of approximately 10% of the monthly rental payment. On March 26, 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 on a month to month basis, for a period no longer than through the end of the two year lease agreement. The Company received $4,000 from Epic Boats under the sublease rental agreement during the three months ended September 30, 2015 and 2014, which is recorded as a reduction to rent expense. On October 21, 2009, we entered into an agreement with Epic Boats where Epic Boats assigned and transferred to Flux Power the entire right, title, and interest into products, technology, intellectual property, inventions and all improvements thereof, for several product types. On April 7, 2014, the Company sold $3,000 worth of assets that were fully depreciated, with no anticipated use for the Company to Epic Boats. On October 1, 2014, the Company sold $9,000 worth of assets that were partially depreciated, with no anticipated use for the Company. The customer deposits balance received from Epic Boats at September 30, 2015 and June 30, 2015 is approximately $136,000. There were no receivables outstanding from Epic Boats as of September 30, 2015 or June 30, 2015. As of this date, Flux Power began selling products to Epic Boats under Flux Power's standard terms and conditions and has continued to sell products to Epic Boats as a customer. We believe our facility at Vista, California provide adequate space for our current and projected needs. |