Annual report pursuant to Section 13 and 15(d)

Note 14 - Commitments and Contingencies

Note 14 - Commitments and Contingencies
12 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
From time to time, we
be involved in litigation relating to claims arising out of our operations. Since
June 2015,
we have been a party to a legal proceeding arising from a work related injury that took place in
June 2013.
We deny and dispute all liability and damage allegations made by or on behalf of the plaintiff. However, having fully considered the risks, time and costs associated with continued litigation of this claim, as well as an appeal, we have decided to fully and finally resolve and settle the dispute. Accordingly, on
August 26, 2016
we entered into a settlement agreement with the plaintiff whereby in exchange for the plaintiff releasing Flux Power from any and all claims of any nature that the plaintiff had or now has or might in the future have against us, we agreed to pay the plaintiff
as settlement. Included in accrued expenses in the accompanying consolidated financial statements as of
June 30, 2016
is a
accrual associated with this claim, which was paid in
September 2016.
Operating Leases
The Company’s corporate headquarters totals
square feet and is located in Vista, California.  Effective
February 25, 2014,
the Company entered into a
-year lease agreement for this facility with average monthly rent payments of approximately
per month and paid a security deposit of
or approximately
months of rent. Our lease was subsequently amended resulting in average rent expense of
per month and expiring on
May 31, 2018.
The Company also subleases space to a related party, Epic Boats, on a month-to-month basis at a rate of
of lease expense.
Total rent expense was $
for the years ended
June 30, 2017
respectively, net of sublease income.