Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Summary of Significant Accounting Policies

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Note 3 - Summary of Significant Accounting Policies
9 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
NOTE
3
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
The Company's significant accounting policies are described in Note
3,
"Summary of Significant Accounting Policies," in the Company's Annual Report on Form
10
-K for the fiscal year ended
June
30,
2016.
There have been no material changes in these policies or their application.
 
 
Principles of Consolidation
 
The condensed consolidated financial statements include Flux Power Holdings, Inc. and its wholly-owned subsidiary Flux Power, Inc. after elimination of all intercompany accounts and transactions.
 
Reclassifications
 
Certain prior period amounts have been reclassified to conform to the current period presentation for comparative purposes.
 
Net Loss Per Common Share
 
The Company calculates basic loss per common share by dividing net loss by the weighted average number of common shares outstanding during the periods. Diluted loss per common share includes the impact from all dilutive potential common shares relating to outstanding convertible securities.
 
For the
three
months ended
March
3,
2017
and
2016,
basic and diluted weighted-average common shares outstanding were
250,382,557
and
150,901,345,
respectively. For the
nine
months ended
March
31,
2017
and
2016,
basic and diluted weighted-average common shares outstanding were
243,724,189
and
138,710,894,
respectively. The Company incurred a net loss for the
three
and
nine
months ended
March
31,
2017
and
2016,
and therefore, basic and diluted loss per share for the periods are the same because the inclusion of potential common equivalent shares were excluded from diluted weighted-average common shares outstanding during the period, as the inclusion of such shares would be anti-dilutive. The total potentially dilutive common shares outstanding at
March
31,
2017
and
2016,
excluded from diluted weighted-average common shares outstanding, which include common shares underlying outstanding convertible debt, stock options and warrants, were
93,174,228
and
77,549,763,
respectively.
 
Recent Accounting Pronouncements
 
Management has considered all recent accounting pronouncements issued since the last audit of the Company
’s consolidated financial statements, and believes that these recent pronouncements will not have a material effect on the Company’s consolidated financial statements.