Quarterly report pursuant to Section 13 or 15(d)

Note 1 - Nature of Business

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Note 1 - Nature of Business
3 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Business Description and Basis of Presentation [Text Block]
NOTE
1
- NATURE OF BUSINESS
 
Basis of Presentation
 
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) applicable to interim reports of companies filing as a smaller reporting company. These financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company
’s Annual Report on Form
10
-K for the fiscal year ended
June 30, 2017
filed with the SEC on
September 22, 2017.
In the opinion of management, the accompanying condensed consolidated interim financial statements include all necessary adjustments. The results of operations for interim periods are
not
necessarily indicative of the results to be expected for the full year or any other future period. Certain notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year as reported in the Company’s Annual Report on Form
10
-K have been omitted. The accompanying consolidated balance sheet at
June 30, 2017
has been derived from the audited balance sheet at
June 30, 2017
contained in such Form
10
-K.
 
Nature of Business
 
Flux Power Holdings, Inc.
designs, develops and sells rechargeable advanced lithium-ion batteries for industrial equipment. As used herein, the terms “we”, “us”, “our”, “Flux” and “Company” refer to Flux Power Holdings, Inc. and our wholly owned subsidiary, Flux Power, Inc. (“Flux Power”), unless otherwise indicated. We have structured our business around our core technology, “The Battery Management System” (“BMS”). Our BMS provides
three
critical functions to our battery systems: cell balancing, monitoring and error reporting. Using our proprietary management technology, we are able to offer complete integrated energy storage solutions or custom modular standalone systems to our customers. We have also developed a suite of complementary technologies and products that accompany our core products. Sales have been primarily to customers located throughout the United States.
 
Reverse Stock Split
 
On
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
1
for
10,
whereby every
ten
pre-reverse stock split shares of common stock automatically converted into
one
-post reverse stock split share of common stock, without changing the
$0.001
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
10
issued and outstanding shares of the Company’s common stock automatically converted into
one
outstanding share.
No
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
250,842,418
(pre-split) shares to
25,085,526
(post-split) shares. The Reverse Stock Split affected all stockholders of the Company’s common stock uniformly, and did
not
affect any stockholder’s percentage of ownership interest, except for that which
may
have been affected by the rounding up of fractional shares. The par value of the Company’s stock remained unchanged at
$0.001
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 was increased by a factor of ten.
 
As the par value per share of the Company
’s common stock remained unchanged at
$0.001
per share, a total of
$226,000
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.