OTHER RELATED PARTY TRANSACTIONS |
6 Months Ended | |
|---|---|---|
Dec. 31, 2015 | ||
| Related Party Transactions [Abstract] | ||
| OTHER RELATED PARTY TRANSACTIONS |
NOTE 9 - OTHER RELATED PARTY TRANSACTIONS
Transactions with Epic Boats
The Company subleases office and manufacturing space to Epic Boats (an entity founded and controlled by Chris Anthony, our board member and former Chief Executive Officer) in our facility in Vista, California pursuant to a month-to-month sublease agreement. Pursuant to this agreement, Epic Boats pays Flux Power 10% of facility costs for a period no longer than through the end of the Company’s two-year lease agreement.
The Company received $4,000 and $8,000 during the three and six months ended December 31, 2015, respectively, from Epic Boats under the sublease rental agreement 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. As of that 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. 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 December 31, 2015 and June 30, 2015 is approximately $136,000. There were no receivables outstanding from Epic Boats as of December 31, 2015 or June 30, 2015. We believe our facility at Vista, California provide adequate space for our current and projected needs. |