Annual report pursuant to Section 13 and 15(d)

Note 1 - Nature of Business and Reverse Stock Split

Note 1 - Nature of Business and Reverse Stock Split
12 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Business Description and Basis of Presentation [Text Block]
Nature of Business
Flux Power Holdings, Inc. ("Flux") was incorporated in
in the State of Nevada.  On
June 14, 2012,
we changed our name to Flux Power Holdings, Inc. Flux's operations are conducted through its wholly owned subsidiary, Flux Power, Inc. (“Flux Power”), a California corporation (collectively, the "Company").
The Company designs, develops and sells rechargeable lithium-ion energy storage systems for industrial applications, such as, electric fork lifts and airport ground support equipment.
The Company has structured its business around its core technology, “The Battery Management System” (“BMS”). The Company’s BMS provides
critical functions to their battery systems: cell balancing, monitoring and error reporting. Using its proprietary management technology, the Company is able to offer complete integrated energy storage solutions or custom modular standalone systems to their customers. The Company has also developed a suite of complementary technologies and products that accompany their core products. Sales during the years ended
June 30, 2017
were primarily to customers located throughout the United States.
As used herein, the terms “we,” “us,” “our,”, “Flux” and “Company” mean Flux Power Holdings, Inc., unless otherwise
indicated. All dollar amounts herein are in U.S. dollars unless otherwise stated.
Reverse Stock Split
August 10, 2017,
we filed a certificate of amendment to our articles of incorporation with the State of Nevada effectuating a reverse split of the Company
’s common stock at a ratio of
, whereby every
pre-reverse stock split shares of common stock automatically converted into
-post reverse stock split share of common stock, without changing the
par value or authorized number of our common stock
(the “Reverse Stock Split”). The Reverse Stock Split became effective in the State of Nevada on
August 18, 2017.
Mr. Michael Johnson, a current member of our board of directors and a holder of a majority of our issued and outstanding common stock approved the Reverse Stock Split on
July 7, 2017.
On that date, every
issued and outstanding shares of the Company’s common stock automatically converted into
outstanding share.
fractional shares were issued in connection with the Reverse Stock Split. If, as a result of the Reverse Split, a stockholder would otherwise have been entitled to a fractional share, each fractional share was rounded up. As a result of the Reverse Stock Split, the number of the Company’s outstanding shares of common stock decreased from
(pre-split) shares to
(post-split) shares. The Reverse Stock Split affected all stockholders of the Company’s common stock uniformly, and did
affect any stockholder’s percentage of ownership interest, except for that which
have been effected by the rounding up of fractional shares. The par value of the Company’s stock remained unchanged at
per share and the number of authorized shares of common stock remained the same after the Reverse Stock Split. In addition, by reducing the number of the Company’s outstanding shares, the Company’s loss per share in all periods will be increased by a factor of ten.
As the par value per share of the Company
’s common stock remained unchanged at
per share, a total of
was reclassified from common stock to additional paid-in capital. In connection with the Reverse Stock Split, proportionate adjustments have been made to the per share exercise price and the number of shares issuable upon the exercise or conversion of all outstanding options, warrants, convertible or exchangeable securities entitling the holders to purchase, exchange for, or convert into, shares of common stock.  All references to shares of common stock and per share data for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted to reflect the Reverse Stock Split on a retroactive basis.