Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2020 | May 11, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | Flux Power Holdings, Inc. | |
Entity Central Index Key | 0001083743 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,174,657 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash | $ 106,000 | $ 102,000 |
Accounts receivable | 2,710,000 | 2,416,000 |
Inventories | 5,140,000 | 3,813,000 |
Other current assets | 741,000 | 371,000 |
Total current assets | 8,697,000 | 6,702,000 |
Right of use asset | 2,487,000 | |
Other assets | 185,000 | 158,000 |
Property, plant and equipment, net | 397,000 | 346,000 |
Total assets | 11,766,000 | 7,206,000 |
Current liabilities: | ||
Accounts payable | 4,141,000 | 2,483,000 |
Accrued expenses | 1,206,000 | 858,000 |
Deferred revenue | 11,000 | |
Customer deposits | 2,211,000 | |
Due to factor | 399,000 | |
Short-term loans - related party | 1,865,000 | |
Line of credit - related party | 11,591,000 | 6,405,000 |
Financing lease payable, current portion | 37,000 | 29,000 |
Office lease payable, current portion | 276,000 | |
Accrued interest | 434,000 | 571,000 |
Total current liabilities | 22,171,000 | 10,346,000 |
Long term liabilities: | ||
Financing lease payable, less current portion | 29,000 | |
Office lease payable, less current portion | 2,355,000 | |
Total liabilities | 24,526,000 | 10,375,000 |
Stockholders' deficit: | ||
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding | ||
Common stock, $0.001 par value; 30,000,000 shares authorized; 5,108,407 and 5,101,580 shares issued and outstanding at March 31, 2020 and June 30, 2019, respectively | 5,000 | 5,000 |
Common stock subscribed | 105,000 | |
Additional paid-in capital | 37,292,000 | 35,902,000 |
Accumulated deficit | (50,162,000) | (39,076,000) |
Total stockholders' deficit | (12,760,000) | (3,169,000) |
Total liabilities and stockholders' deficit | $ 11,766,000 | $ 7,206,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 5,108,407 | 5,101,580 |
Common stock, shares outstanding | 5,108,407 | 5,101,580 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Net revenue | $ 5,051,000 | $ 1,751,000 | $ 10,585,000 | $ 6,297,000 |
Cost of sales | 4,402,000 | 1,690,000 | 9,461,000 | 5,968,000 |
Gross profit | 649,000 | 61,000 | 1,124,000 | 329,000 |
Operating expenses: | ||||
Selling and administrative expenses | 2,584,000 | 2,421,000 | 7,108,000 | 5,518,000 |
Research and development | 1,527,000 | 1,364,000 | 3,888,000 | 2,892,000 |
Total operating expenses | 4,111,000 | 3,785,000 | 10,996,000 | 8,410,000 |
Operating loss | (3,462,000) | (3,724,000) | (9,872,000) | (8,081,000) |
Interest expense | (503,000) | (90,000) | (1,214,000) | (1,058,000) |
Net loss | $ (3,965,000) | $ (3,814,000) | $ (11,086,000) | $ (9,139,000) |
Net loss per share - basic and diluted | $ (0.78) | $ (0.75) | $ (2.17) | $ (2.23) |
Weighted average number of common shares outstanding - basic and diluted | 5,107,845 | 5,076,967 | 5,105,982 | 4,105,433 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Stock Subscribed [Member] | Accumulated Deficit [Member] | Total |
Beginning balance at Jun. 30, 2018 | $ 3,000 | $ 19,224,000 | $ (26,662,000) | $ (7,435,000) | |
Beginning balance, shares at Jun. 30, 2018 | 3,106,003 | ||||
Issuance of common stock - services | 152,000 | 152,000 | |||
Issuance of common stock - services, shares | 3,797 | ||||
Warrant exchange for common stock | |||||
Warrant exchange for common stock, shares | 1,278 | ||||
Stock based compensation | 164,000 | 164,000 | |||
Net loss | (2,401,000) | (2,401,000) | |||
Ending balance at Sep. 30, 2018 | $ 3,000 | 19,540,000 | (29,063,000) | (9,520,000) | |
Ending balance, shares at Sep. 30, 2018 | 3,111,078 | ||||
Beginning balance at Jun. 30, 2018 | $ 3,000 | 19,224,000 | (26,662,000) | $ (7,435,000) | |
Beginning balance, shares at Jun. 30, 2018 | 3,106,003 | ||||
Issuance of common stock - exercised options, shares | |||||
Net loss | $ (9,139,000) | ||||
Ending balance at Mar. 31, 2019 | $ 5,000 | 35,451,000 | (35,801,000) | (345,000) | |
Ending balance, shares at Mar. 31, 2019 | 5,100,087 | ||||
Beginning balance at Sep. 30, 2018 | $ 3,000 | 19,540,000 | (29,063,000) | (9,520,000) | |
Beginning balance, shares at Sep. 30, 2018 | 3,111,078 | ||||
Issuance of common stock - services | 56,000 | 56,000 | |||
Issuance of common stock - services, shares | 3,797 | ||||
Warrant exchange for common stock | |||||
Warrant exchange for common stock, shares | 2,435 | ||||
Stock based compensation | 243,000 | 243,000 | |||
Issuance of common stock - private placement transactions, net | 3,695,000 | 3,695,000 | |||
Issuance of common stock - private placement transactions, net, shares | 335,910 | ||||
Issuance of Common Stock - Loan Conversion | $ 2,000 | 10,083,000 | 10,085,000 | ||
Issuance of Common Stock - Loan Conversion, shares | 1,579,724 | ||||
Net loss | (2,924,000) | (2,924,000) | |||
Ending balance at Dec. 31, 2018 | $ 5,000 | 33,617,000 | (31,987,000) | 1,635,000 | |
Ending balance, shares at Dec. 31, 2018 | 5,032,944 | ||||
Issuance of common stock - services | 51,000 | 51,000 | |||
Issuance of common stock - services, shares | 3,797 | ||||
Stock based compensation | 1,086,000 | 1,086,000 | |||
Issuance of common stock - private placement transactions, net | 697,000 | 697,000 | |||
Issuance of common stock - private placement transactions, net, shares | 63,346 | ||||
Net loss | (3,814,000) | (3,814,000) | |||
Ending balance at Mar. 31, 2019 | $ 5,000 | 35,451,000 | (35,801,000) | (345,000) | |
Ending balance, shares at Mar. 31, 2019 | 5,100,087 | ||||
Beginning balance at Jun. 30, 2019 | $ 5,000 | 35,902,000 | (39,076,000) | (3,169,000) | |
Beginning balance, shares at Jun. 30, 2019 | 5,101,580 | ||||
Stock based compensation | 451,000 | 451,000 | |||
Issuance of common stock - exercised options | |||||
Issuance of common stock - exercised options, shares | 2,894 | ||||
Net loss | (3,814,000) | (3,814,000) | |||
Ending balance at Sep. 30, 2019 | $ 5,000 | 36,353,000 | (42,890,000) | (6,532,000) | |
Ending balance, shares at Sep. 30, 2019 | 5,104,474 | ||||
Beginning balance at Jun. 30, 2019 | $ 5,000 | 35,902,000 | (39,076,000) | $ (3,169,000) | |
Beginning balance, shares at Jun. 30, 2019 | 5,101,580 | ||||
Issuance of common stock - exercised options, shares | 5,249 | ||||
Net loss | $ (11,086,000) | ||||
Ending balance at Mar. 31, 2020 | $ 5,000 | 37,292,000 | 105,000 | (50,162,000) | (12,760,000) |
Ending balance, shares at Mar. 31, 2020 | 5,108,407 | ||||
Beginning balance at Sep. 30, 2019 | $ 5,000 | 36,353,000 | (42,890,000) | (6,532,000) | |
Beginning balance, shares at Sep. 30, 2019 | 5,104,474 | ||||
Issuance of common stock - services | 30,000 | 30,000 | |||
Issuance of common stock - services, shares | 3,121 | ||||
Stock based compensation | 449,000 | 449,000 | |||
Net loss | (3,307,000) | (3,307,000) | |||
Ending balance at Dec. 31, 2019 | $ 5,000 | 36,832,000 | (46,197,000) | (9,360,000) | |
Ending balance, shares at Dec. 31, 2019 | 5,107,595 | ||||
Stock based compensation | 456,000 | 456,000 | |||
Issuance of common stock - exercised options | 4,000 | 4,000 | |||
Issuance of common stock - exercised options, shares | 812 | ||||
Stock subscription agreement | 105,000 | 105,000 | |||
Net loss | (3,965,000) | (3,965,000) | |||
Ending balance at Mar. 31, 2020 | $ 5,000 | $ 37,292,000 | $ 105,000 | $ (50,162,000) | $ (12,760,000) |
Ending balance, shares at Mar. 31, 2020 | 5,108,407 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (11,086,000) | $ (9,139,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 94,000 | 54,000 |
Stock-based compensation | 1,356,000 | 1,492,000 |
Stock issuance for services | 30,000 | 259,000 |
Noncash interest expense | 675,000 | |
Noncash lease expense | 219,000 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (294,000) | (51,000) |
Inventories | (1,327,000) | (2,106,000) |
Other current assets | (397,000) | (49,000) |
Accounts payable | 1,658,000 | 1,197,000 |
Accrued expenses | 348,000 | 321,000 |
Due to factor | 399,000 | |
Deferred revenue | 11,000 | |
Accrued interest | 434,000 | 980,000 |
Office lease payable | (75,000) | |
Customer deposits | 2,211,000 | (13,000) |
Net cash used in operating activities | (5,744,000) | (7,055,000) |
Cash flows from investing activities | ||
Purchases of equipment | (145,000) | (144,000) |
Net cash used in investing activities | (145,000) | (144,000) |
Cash flows from financing activities: | ||
Proceeds from the sale of common stock | 4,000 | 4,393,000 |
Proceeds from common stock subscription | 105,000 | |
Repayment of line of credit - related party debt | (2,500,000) | |
Borrowings from short-term loan - related party debt | 1,750,000 | |
Borrowings from line of credit - related party debt | 4,055,000 | 3,500,000 |
Principal payments of financing lease payable | (21,000) | |
Net cash provided by financing activities | 5,893,000 | 5,393,000 |
Net change in cash | 4,000 | (1,806,000) |
Cash, beginning of period | 102,000 | 2,706,000 |
Cash, end of period | 106,000 | 900,000 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | ||
Initial recognition of right-of-use asset | 2,706,000 | |
Accrued interest converted into principal | 1,246,000 | |
Interest paid | 113,000 | |
Common stock issued for conversion of related party debt | 8,475,000 | |
Common stock issued for conversion of accrued interest | 1,610,000 | |
Stock issuance for services | 30,000 | 259,000 |
Equipment purchase through capital lease | $ 65,000 |
Nature of Business and Reverse
Nature of Business and Reverse Stock Split | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business and Reverse Stock Split | NOTE 1 - NATURE OF BUSINESS AND REVERSE STOCK SPLIT 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, 2019 filed with the SEC on September 12, 2019. In the opinion of management, the accompanying condensed consolidated interim financial statements include all adjustments necessary in order to make the financial statements not misleading. 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 condensed consolidated balance sheet at June 30, 2019 has been derived from the audited balance sheet at June 30, 2019 contained in such Form 10-K. Nature of Business Flux Power Holdings, Inc. (“Flux”) was incorporated in 1998 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”). We design, develop, manufacture, and sell advanced rechargeable lithium-ion energy storage solutions for lift trucks, airport ground support equipment (“GSE”) and other industrial motive applications. Our “LiFT” battery packs, including our proprietary battery management system (“BMS”), provide our customers with a better performing, cheaper and more environmentally friendly alternative, in many instances, to traditional lead-acid and propane-based solutions. We have received Underwriters Laboratory (“UL”) Listing on our Class 3 Walkie Pallet Jack (“Class 3 Walkie”) LiFT pack product line in 2016 and expect to finalize UL listing during calendar 2020 for our other product lines, which include Class 1 Counterbalance/Sit down/Ride-on (“Class 1 Ride-on”) LiFT packs, Class 2 Narrow Aisle LiFT packs, and Class 3 End Rider LiFT packs. We believe that a UL Listing demonstrates the safety, reliability and durability of our products and gives us an important competitive advantage over other lithium-ion energy suppliers. Our Class 3 Walkie LiFT packs have been approved for use by leading industrial motive manufacturers, including Toyota Material Handling USA, Inc., Crown Equipment Corporation, and Raymond Corporation. 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 The Company effected a 1-for-10 reverse split of its common stock and preferred stock on July 11, 2019 (“2019 Reverse Split”). No fractional shares were issued in connection with the 2019 Reverse Split. If, as a result of the 2019 Reverse Split, a stockholder would otherwise have been entitled to a fractional share, each fractional share was rounded up. The 2019 Reverse Split resulted in a reduction of the outstanding shares of common stock from 51,000,868 to 5,101,580. In addition, it resulted in a reduction of the authorized shares of common stock from 300,000,000 to 30,000,000, and a reduction of the authorized shares of preferred stock from 5,000,000 to 500,000. The par value of the Company’s stock remained unchanged at $0.001. In addition, by reducing the number of the Company’s outstanding shares, the Company’s loss per share in all periods presented 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 $46,000 was reclassified from common stock to additional paid-in capital. In connection with the 2019 Reverse 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 unaudited condensed consolidated financial statements and notes thereto have been adjusted to reflect the 2019 Reverse Split on a retroactive basis. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 2 –GOING CONCERN The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred an accumulated deficit of $50,162,000 through March 31, 2020 and a net loss of $3,965,000 and $11,086,000 for the three and nine months ended March 31, 2020, respectively. To date, the Company’s revenues and operating cash flows have not been sufficient to sustain its operations and the Company has relied on debt and equity financing to fund its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the filing date of this Quarterly Report on Form 10-Q, May 12, 2020. As of March 31, 2020, the Company had a cash balance of $106,000 and will need to raise additional capital in the near future. The Company’s ability to continue as a going concern is dependent upon its ability to raise additional capital on a timely basis until such time as revenues and related cash flows are sufficient to fund its operations. The ongoing COVID-19 pandemic may adversely impact our ability to raise capital under reasonable terms or at all. Management has undertaken steps as part of a plan to improve operations with the goal of sustaining its operations. These steps include (a) developing additional products to cater to the Class 1 and Class 2 industrial equipment markets; and (b) expanding its sales force throughout the United States to increase revenues. In that regard, the Company has increased its research and development efforts to focus on completing the development of energy storage solutions that can be used on larger forklifts and has also doubled its sales force since December 2016 with personnel having significant experience in the industrial equipment handling industry. Management also plans to raise additional capital through the sale of equity securities through private placements and public offerings, convertible debt placements and the utilization of its existing related-party credit facility. On December 31, 2019, the promissory notes issued by the Company in connection with the Company’s line of credit with Esenjay Investments, LLS (“Esenjay”), a related party, Cleveland Capital L.P., a Delaware limited partnership and our minority stockholder (“Cleveland”), and six (6) additional lenders (together with Esenjay and Cleveland, the “Lenders”) were amended to (i) increase the maximum principal amount available under line of credit from $10,000,000 to $12,000,000, (ii) capitalize all accrued and unpaid interest to the principal amount as of December 31, 2019, and (iii) extend the maturity date from December 31, 2019 to June 30, 2020. In addition, In connection with an outstanding loan from Cleveland to the Company in the principal amount of $1,000,000, the Company entered into a Fourth Amendment to the Unsecured Promissory Note dated December 3, 2019, to extend the maturity date from March 31, 2020 to April 30, 2020. Pursuant to a Fifth Amendment to the Unsecured Promissory Note dated April 30, 2020, the maturity date was subsequently amended to extend the maturity date to May 31, 2020. All accrued and unpaid interest as of March 31, 2020 was capitalized to the principal amount. The outstanding principal balance of the Cleveland Loan as of March 31, 2020 was $1,115,000. (see Note 4-Cleveland Loan). On March 9, 2020, the Company and Esenjay entered into a convertible promissory note in the amount of $750,000 (the “Esenjay Convertible Note”). The Esenjay Convertible Note bears an interest rate of 15.0% per annum and indebtedness under such note is convertible into shares of common stock of the Company at any time upon consummation of an offering of equity securities of at least $1,000,000 before the maturity date. As of March 31, 2020, the outstanding principal balance was $750,000 (see Note 4-Esenjay Loan). There is no guarantee the Company will be able to obtain the additional required funds on a timely basis or that funds will be available on terms acceptable to it. If such funds are not available when required, management will be required to curtail its investments in additional sales and marketing and product development, which may have a material adverse effect on its future cash flows and results of operations, and its ability to continue operating as a going concern. The accompanying financial statements do not include any adjustments that would be necessary should the Company be unable to continue as a going concern and, therefore, be required to liquidate its assets and discharge its liabilities in other than the normal course of business and at amounts that may differ from those reflected in the accompanying condensed consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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, 2019. There have been no material changes in these policies or their application. 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 31, 2020 and 2019, basic and diluted weighted-average common shares outstanding were 5,107,845 and 5,076,967, respectively. For the nine months ended March 31, 2020 and 2019, basic and diluted weighted-average common shares outstanding were 5,105,982 and 4,105,433, respectively. The Company incurred a net loss for the three and nine months ended March 31, 2020 and 2019, and therefore, basic and diluted loss per share for the periods are the same because the inclusion of such 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, 2020 and 2019, excluded from diluted weighted-average common shares outstanding, which include common shares underlying outstanding stock options and warrants, were 581,996 and 592,311, respectively. Recently Adopted Accounting Pronouncements In 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires a lessee to recognize a lease asset representing its right to use the underlying asset for the lease term, and a lease liability for the payments to be made to a lessor, on its balance sheet for all operating leases greater than 12 months. ASU 2016-02 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The new standard became effective for the Company on July 1, 2019, and it was adopted using the modified retrospective method through a cumulative-effect adjustment directly to retained earnings as of that date. The new standard increased the Company’s right-of-use assets and lease liability by approximately $2.7 million and $2.7 million, respectively. On June 20, 2018, the FASB issued Accounting Standards Update (ASU) 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 is intended to reduce the cost and complexity and to improve financial reporting for share-based payments to nonemployees for goods and services. The amendments in ASU 2018-07 are effective for fiscal years beginning after December 15, 2018, including interim periods therein. The adoption of this guidance by the Company, effective July 1, 2019, did not have a material impact on the Company’s consolidated financial statements. 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 condensed consolidated financial statements. |
Related Party Debt Agreements
Related Party Debt Agreements | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Related Party Debt Agreements | NOTE 4 - RELATED PARTY DEBT AGREEMENTS Short-term loans Esenjay Loan On March 9, 2020, the Company and Esenjay entered into a certain convertible promissory note (“Esenjay Convertible Note”) pursuant to which Esenjay provided the Company with a loan in the principal amount of $750,000 (the “Esenjay Loan”). The Esenjay Convertible Note bears an interest rate of 15.0% per annum and is due on the earlier of: (i) June 30, 2020, unless extended pursuant to the terms thereunder, or (ii) an occurrence of an event of default. The outstanding obligations under the Esenjay Convertible Note are convertible into shares of common stock of the Company at the cash price per share of the equity securities paid by purchasers in the offering at any time upon consummation of an offering of equity securities of at least $1,000,000 before the maturity date. The outstanding principal balance of the Esenjay Loan as of March 31, 2020 was $750,000. Cleveland Loan On July 3, 2019, the Company entered into a loan agreement with Cleveland, pursuant to which Cleveland agreed to loan the Company $1,000,000 (the “Cleveland Loan”). In connection with the Cleveland Loan, on July 3, 2019, the Company issued Cleveland an unsecured short-term promissory in the amount of $1,000,000 (the “Unsecured Promissory Note”). The Unsecured Promissory Note bears an interest rate of 15.0% per annum and was originally due on September 1, 2019, unless repaid earlier from a percentage of proceeds from certain identified accounts receivable. In connection with the Cleveland Loan, the Company issued Cleveland a three-year warrant (the “Cleveland Warrant”) to purchase the Company’s common stock in a number equal to one-half percent (0.5%) of the number of shares of common stock outstanding after giving effect to the total number of shares of common stock to be sold in a contemplated public offering and with an exercise price equal to the per share public offering price. Effective September 1, 2019, the Company entered into that certain First Amendment to the Unsecured Promissory Note pursuant to which the maturity date was modified from September 1, 2019 to December 1, 2019 (the “Amendment”). In connection with the Amendment, the Company replaced the Cleveland Warrant with a certain Amended and Restated Warrant Certificate (the “Amended Warrant”). The Amended Warrant increased the warrant coverage from 0.5% to 1% of the number of shares of common stock outstanding after giving effect to the total number of shares of common stock sold in the next private or public offering (the “Offering”). In addition, the exercise price was also changed to equal the per share price of common stock sold in the Offering. Effective December 3, 2019, the Company entered into the Second Amendment to the Unsecured Promissory Note pursuant to which the maturity date was modified from December 1, 2019 to December 31, 2019. On December 31, 2019, the Company entered into the Third Amendment to the Unsecured Promissory Note pursuant to which the maturity date was modified from December 31, 2019 to March 31, 2020, and all accrued and unpaid interest as of December 31, 2019 was capitalized to the principal amount. On March 31, 2020, the Company entered into the Fourth Amendment to the Unsecured Promissory Note pursuant to which the maturity date was modified from March 31, 2020 to April 30, 2020, and all accrued and unpaid interest as of March 31, 2020 was capitalized to the principal amount. The outstanding principal balance of the Cleveland Loan as of March 31, 2020 was $1,115,000 (see Note 10). Credit Facility On March 22, 2018, Flux Power entered into a credit facility agreement with Esenjay with a maximum borrowing amount of $5,000,000. Proceeds from the credit facility were to be used to purchase inventory and related operational expenses and accrue interest at a rate of 15% per annum (the “Original Agreement”). The outstanding balance of the Original Agreement and all accrued interest was due and payable on March 31, 2019. On March 28, 2019, Flux Power entered into an amended and restated credit facility agreement (“Amended and Restated Credit Facility Agreement”) with Esenjay and Cleveland (Cleveland and Esenjay, together with additional parties that may join as a lender, the “Lenders”) to amend and restate the terms of the Original Agreement in its entirety. The Original Agreement was amended, among other things, to (i) increase the maximum principal amount available under line of credit from $5,000,000 to $7,000,000 (“LOC”), (ii) add Cleveland as additional lender to the LOC pursuant to which each lender has a right to advance a pro rata amount of the principal amount available under the LOC, (iii) extend the maturity date from March 31, 2019 to December 31, 2019, and (iv) to provide for additional parties to become a “Lender” under the Amended and Restated Credit Facility Agreement. In connection with the LOC, on March 28, 2019 the Company issued a secured promissory note to Cleveland (the “Cleveland Note”), and an amended and restated secured promissory note to Esenjay which amended and superseded the secured promissory note dated March 22, 2018 (“Esenjay Note” and together with the Cleveland Note and other secured promissory notes to Lenders (the “Notes”). The Notes were issued for the principal amount of $7,000,000 or such lesser principal amount advanced by the respective Lender under the Amended and Restated Credit Facility Agreement. The Notes bear an interest of fifteen percent (15%) per annum and a maturity date of December 31, 2019. On October 10, 2019, the Company entered into a Second Amended and Restated Credit Facility Agreement and pursuant to which the Company further amended its line of credit and Notes to increase the maximum principal amount available under line of credit from $7,000,000 to $10,000,000. On December 31, 2019, the Company further amended the Notes to (i) increase the maximum principal amount available under line of credit from $10,000,000 to $12,000,000, (ii) capitalize all accrued and unpaid interest to the principal amount as of December 31, 2019, and (iii) extend the maturity date from December 31, 2019 to June 30, 2020. In addition, To secure the obligations under the Notes, Flux Power entered into an Amended and Restated Security Agreement dated March 28, 2019 with the Lenders (as amended, the “Amended Security Agreement”). The Amended Security Agreement amends and restates the Guaranty and Security Agreement dated March 22, 2018 by and between Esenjay and the Company, and added Cleveland and other Lenders as additional secured parties to the Amended Security Agreement and appointing Esenjay as collateral agent. |
Factoring Arrangement
Factoring Arrangement | 9 Months Ended |
Mar. 31, 2020 | |
Factoring Arrangement | |
Factoring Arrangement | NOTE 5 – FACTORING ARRANGEMENT On August 23, 2019, the Company entered into a Factoring Agreement (“Factoring Agreement”) with CSNK Working Capital Finance Corp. d/b/a Bay View Funding (“CSNK”) for a factoring facility under which CSNK will, from time to time, buy approved receivables from the Company. The factoring facility provides for the Company to have access to the lesser of (i) $3 million (“Maximum Credit”) or (ii) the sum of all undisputed receivables purchased by CSNK multiplied by 90% (which percentage may be reduced by CSNK in its sole discretion). Upon receipt of any advance, Company will have sold and assigned all of its rights in such receivables and all proceeds thereof. The factoring facility is secured by the Company’s accounts, equipment, inventory, financial assets, chattel paper, electronic chattel paper, letters of credit, letters of credit rights, general intangibles, investment property, deposit accounts, documents, instruments, supporting obligations, commercial tort claims, the reserve, motor vehicles, all books, records, files and computer data relating to the foregoing, and all proceeds of the foregoing. The Company is required to pay CSNK a facility fee of 1.0% of the Maximum Credit upon execution of the Factoring Agreement and a factoring fee of 0.75% of the face value of purchased receivables for 1st 30-days such receivables are outstanding after purchase and 0.35% for each 15-days thereafter until the receivables are repaid in full or otherwise repurchased by the Company or otherwise written off by CSNK. In addition, the Company is required to pay financing fees on the outstanding advances equal to a floating rate per annum equal to the Prime plus 2.0% (8.0% floor). In the event, the aggregate factoring fees and financing fees together are less than 0.5% of the Maximum Credit in any one month, the Company will pay CSNK the difference for such month. CSNK has the right to demand repayment of any purchased receivables which remain unpaid for 90-days after purchase or with respect to which any account debtor asserts a dispute. The factoring facility is for an initial term of twelve months and will renew on a year to year basis thereafter, unless terminated in accordance with the Factoring Agreement. The Company may terminate the Factoring Agreement at any time upon 60 days prior written notice and payment to CSNK of an early termination fee equal to 0.5% of the Maximum Credit multiplied by the number of months remaining in the current term. As of March 31, 2020, an outstanding balance of $399,000 was due to CSNK under the Factoring Agreement. |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE 6 - STOCKHOLDERS’ DEFICIT 2020 Private Placement of Common Stock In March 2020, our Board of Directors approved the private placement for the Company to offer and sell up to $8,000,000 of its shares common stock, par value $0.001 per share at $4.00 price per share to selected accredited investors (the “2020 Offering”). On March 27, 2020, the Company received $105,000 from and signed its first Subscription Agreement with its initial accredited investor in the 2020 Offering. The $105,000 paid by the purchaser as of March 31, 2020 has been classified as Common Stock Subscribed on the balance sheet. Common stock issuable related to this subscription agreement, along with additional investments received was issued at the initial closing on April 22, 2020 (see Note 10). 2018 Private Placement of Common Stock In December 2018, our Board of Directors approved the private placement of up to 454,546 shares of our common stock to select accredited investors for a total amount of $5,000,000, or $11.00 per share of common stock with the right of the Board to increase the offering amount to $7,000,000 (the “Offering”). On December 26, 2018, we completed an initial closing of the Offering, pursuant to which we sold an aggregate of 335,910 shares of common stock, at $11.00 per share, for an aggregate purchase price of $ Warrant Activity Warrant detail for the nine months ended March 31, 2020 is reflected below: Number of Warrants Weighted Average Exercise Price Per Warrant Remaining Contract Term (# years) Warrants outstanding and exercisable at June 30, 2019 8,333 $ 20.00 0.25 Warrants issued - $ - - Warrants exercised - $ - - Warrants forfeited (8,333 ) $ 20.00 - Warrants outstanding and exercisable at March 31, 2020 - $ - - Warrant detail for the nine months ended March 31, 2019 is reflected below: Number of Warrants Weighted Average Exercise Price Per Warrant Remaining Contract Term (# years) Warrants outstanding and exercisable at June 30, 2018 174,079 $ 20.30 0.74 Warrants issued - $ - - Warrants exercised - $ - - Warrants exchanged (165,746 ) $ 20.30 - Warrants forfeited - $ - - Warrants outstanding and exercisable at March 31, 2019 8,333 $ 20.00 0.50 Stock-based Compensation On November 26, 2014, our board of directors approved our 2014 Equity Incentive Plan (the “2014 Plan”), which was approved by the Company’s shareholders on February 17, 2015. The 2014 Plan offers selected employees, directors, and consultants the opportunity to acquire our common stock, and serves to encourage such persons to remain employed by us and to attract new employees. The 2014 Plan allows for the award of stock and options, up to 1,000,000 shares of the Company’s common stock. Activity in stock options during the nine months ended March 31, 2020, and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Exercise Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2019 580,171 $ 11.05 8.59 Granted 15,792 $ 8.87 Exercised (5,249 ) $ 4.68 Forfeited and cancelled (8,718 ) $ 12.56 Outstanding at March 31, 2020 581,996 $ 11.02 7.87 Exercisable at March 31, 2020 414,720 $ 10.65 7.53 Activity in stock options during the nine months ended March 31, 2019, and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Exercise Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2018 354,447 $ 8.30 8.87 Granted 247,896 $ 14.40 Exercised - $ - Forfeited and cancelled (18,366 ) $ 4.60 Outstanding at March 31, 2019 583,977 $ 11.00 8.78 Exercisable at March 31, 2019 266,919 $ 9.60 7.98 Stock-based compensation expense recognized in the condensed consolidated statements of operations for the three and nine months ended March 31, 2020 and 2019, includes compensation expense for stock-based options and awards granted based on the grant date fair value. For options and awards granted, expenses are amortized under the straight-line method over the expected vesting period. Stock-based compensation expense recognized in the condensed consolidated statements of operations has been reduced for estimated forfeitures of options that are subject to vesting. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. At March 31, 2020, the aggregate intrinsic value of the exercisable options was $746,000. The Company allocated stock-based compensation expense included in the condensed consolidated statements of operations for employee option grants and non-employee option grants as follows: For the Three Months Ended March 31 For the Nine Months Ended March 31, 2020 2019 2020 2019 Research and development $ 54,000 $ 225,000 $ 162,000 $ 256,000 General and administration 402,000 861,000 1,194,000 1,236,000 Total stock-based compensation expense $ 456,000 $ 1,086,000 $ 1,356,000 $ 1,492,000 The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. The fair value of stock options was measured at the grant date using the assumptions (annualized percentages) in the table below: Nine months ended March 31, 2020 2019 Expected volatility 100.60 % 111 % Risk free interest rate 1.73 % 2.10 % Forfeiture rate 20.0 % 20.0 % Dividend yield 0 % 0 % Expected term (years) 5.56 5 The remaining amount of unrecognized stock-based compensation expense at March 31, 2020 relating to outstanding stock options, is approximately $1,321,000, which is expected to be recognized over the weighted average period of 1.44 years. |
Other Related Party Transaction
Other Related Party Transactions | 9 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Other Related Party Transactions | NOTE 7 - OTHER RELATED PARTY TRANSACTIONS The Company subleased office and manufacturing space to Epic Boats (an entity founded and controlled by Chris Anthony, a former board member and former Chief Executive Officer) in the facility in Vista, California pursuant to a month-to-month sublease agreement. Pursuant to the month-to-month sublease agreement, Epic Boats paid Flux Power 10% of facility costs through the end of the Company’s lease agreement which was June 30, 2019. The month-to-month sublease agreement was terminated on June 30, 2019. The Company received $5,000 and $15,000 for the three and nine months ended March 31, 2019 from Epic Boats under the month-to-month sublease agreement which is recorded as a reduction to rent expense and customer deposits. No fees were received by the Company from Epic Boats for the three and nine months ended March 31, 2020. |
Concentrations
Concentrations | 9 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 8 - CONCENTRATIONS Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and unsecured trade accounts receivable. The Company maintains cash balances at a financial institution in San Diego, California. The Company’s cash balance at this institution is secured by the Federal Deposit Insurance Corporation up to $250,000. As of March 31, 2020, cash totaled approximately $106,000, which consists of funds held in a non-interest bearing bank deposit account. The Company has not experienced any losses in such accounts. Management believes that the Company is not exposed to any significant credit risk with respect to its cash. Customer Concentrations During the three months ended March 31, 2020, the Company had two major customers that each represented more than 10% of its revenues on an individual basis, and together represented approximately $3,373,000 or 67% of its total revenues. During the nine months ended March 31, 2020, the Company had three major customers that each represented more than 10% of its revenues on an individual basis, and together represented approximately $7,991,000 or 76% of its total revenues. During the three months ended March 31, 2019, the Company had two major customers that each represented more than 10% of its revenues on an individual basis, and together represented approximately $1,017,000 or 59% of its total revenues. During the nine months ended March 31, 2019, the Company had four major customers that each represented more than 10% of its revenues on an individual basis, and together represented approximately $5,067,000 or 80% of its total revenues. Suppliers/Vendor Concentrations The Company obtains a limited number of components and supplies included in its products from a small group of suppliers. During the three months ended March 31, 2020 the Company had two suppliers that each represented more than 10% of its total purchases, on an individual basis, and together represented approximately $2,581,000 or 39% of its total purchases. During the nine months ended March 31, 2020 the Company had two suppliers that each represented more than 10% of its total purchases, on an individual basis, and together represented approximately $4,802,000 or 37% of its total purchases. During the three months ended March 31, 2019, the Company had three suppliers who accounted for more than 10% of its total purchases, on an individual basis, and together represented approximately $1,735,000 or 67% of its total purchases. During the nine months ended March 31, 2019 the Company had three suppliers who accounted for more than 10% of its total purchases on an individual basis, and together represented approximately $5,117,000 or 63% of its total purchases |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 - COMMITMENTS AND CONTINGENCIES From time to time, the Company may be involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. To the best knowledge of management, there are no material legal proceedings pending against the Company. Operating Leases On April 25, 2019 the Company signed a Standard Industrial/Commercial Multi-Tenant Lease (“Lease”) with Accutek to rent approximately 45,600 square feet of industrial space at 2685 S. Melrose Drive, Vista, California. The Lease has an initial term of seven years and four months, commencing on or about June 28, 2019. The lease contains an option to extend the term for two periods of 24 months, and the right of first refusal to lease an additional approximate 15,300 square feet. The monthly rental rate is $42,400 for the first 12 months, escalating at 3% each year. On February 26, 2020, the Company entered into the First Amendment to Standard Industrial/Commercial Multi-Tenant Lease dated April 25, 2019 (the “Amendment”) with Accutek to rent an additional 16,309 rentable square feet of space plus a residential unit of approximately 1,230 rentable square feet (for a total of approximately 17,539 rentable square feet). The lease for the additional space commences 30 days following the delivery of the additional space, and terminates concurrently with the term for the current space, which expires on November 20, 2026. The additional space was made available for occupancy on April 1, 2020. The base rent for the additional space is the same rate as the space currently being rented under the terms of the Lease, $0.93 per rentable square (subject to 3% annual increase). In connection with the Amendment, the Company purchased certain existing office furniture for a total purchase price of $8,300. Total rent expense was approximately $160,000 and $458,000 for the three months and nine months ended March 31, 2020, respectively, net of sublease income. Total rent expense was approximately $41,000 and $123,000 for the three months and nine months ended March 31, 2019, respectively, net of sublease income. The Future Minimum Lease Payments are: Three months period ending 6/30/2020 $ 127,000 2021 393,000 2022 496,000 2023 513,000 2024 572,000 Thereafter 1,454,000 Total Future Minimum Lease Payments 3,555,000 Less: discount (924,000 ) Total lease liability $ 2,631,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10 - SUBSEQUENT EVENTS COVID-19 The recent outbreak of the coronavirus, COVID-19, which on March 10, 2020, has been declared by the World Health Organization to be a pandemic has spread across the globe and is impacting worldwide economic activity. A pandemic, including COVID-19 or other public health epidemic, poses the risk that the Company or its employees, contractors, customers, suppliers, third party shipping carriers, government and other partners may be prevented from or limited in their ability to conduct business activities for an indefinite period of time, including due to the spread of the disease within these groups or due to shutdowns that may be requested or mandated by governmental authorities. While it is not possible at this time to estimate the impact that COVID-19 could have on the Company’s business, the continued spread of COVID-19 and the measures taken by the governments of states and countries affected could disrupt, among other things, the supply chain and the manufacture or shipment of the Company’s products. On March 19, 2020, the governor of California, the state where the Company’s facility is located, issued statewide stay-at-home orders for non-essential workers to help combat the spread of COVID-19. The Company is deemed to be an essential business consistent with announcements by Forklift OEMs and related supply chain, who support the logistics industry, critical to delivering food and supplies during COVID-19 crisis and the Company has In January 2020, we received a $4,680,000 order for additional airport GSE batteries from an existing global airline customer. Due to the COVID-19 crisis and its effect to the airline segment, the customer requested that the order to be reduced to approximately $2,700,000 and be delivered in monthly shipments up to November 2020. 2020 Private Placement On April 22, 2020, the Company sold and issued an aggregate of 66,250 shares of common stock, at $4.00 per share, for an aggregate purchase price of $265,000 in cash to two (2) accredited investors (the “Offering”). The shares offered and sold in the Offering have not been registered under the Securities Act of 1933, as amended (“Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The shares were offered and sold to the accredited investors in reliance upon exemptions from registration pursuant to Rule 506(b) of Regulation D promulgated under Section 4(a)(2) under the Securities Act. Cleveland Loan On April 30, 2020, in connection with the outstanding loan from Cleveland to the Company in the principal amount of $1,115,000, the Company entered into the Fifth Amendment to the Unsecured Promissory Note to extend the maturity date from April 30, 2020 to May 31, 2020. All accrued and unpaid interest as of April 30, 2020 was capitalized to the principal amount. Paycheck Protection Program On May 1, 2020, the Company applied for and received a loan from the Bank of America, NA (the “Lender”) in the aggregate principal amount of $1,297,083 (the “Loan”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Loan is evidenced by a promissory note dated May 1, 2020, issued by the Company to the Lender (the “Note”). The Loan has a two-year term and bears interest at a rate of 1.0% per annum. Monthly principal and interest payments are deferred for six months after the date of disbursement. The Company received the funds on or around May 4, 2020. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Proceeds from the Loan are available to the Company to fund designated expenses, and the Company intends to use the entire Loan for the qualifying expenses, including certain payroll costs, group health care benefits and other permitted expenses, in accordance with the PPP. Under the terms of the PPP, subject to specific limitations, up to the entire amount of principal and accrued interest may be forgiven to the extent Loan proceeds are used for sum of qualifying and documented expenses such as payroll costs, covered rent payments, and covered utilities during the eight-week period that begins on the date the lender makes the first disbursement to the Company as described in the CARES Act and applicable implementing guidance issued by the U.S. Small Business Administration under the PPP. The Company intends to use the entire Loan amount for designated qualifying expenses and to apply for forgiveness of the Loan in accordance with the terms of the PPP. No assurance can be given that the Company will obtain forgiveness of the Loan in whole or in part. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Net Loss Per Common Share | 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 31, 2020 and 2019, basic and diluted weighted-average common shares outstanding were 5,107,845 and 5,076,967, respectively. For the nine months ended March 31, 2020 and 2019, basic and diluted weighted-average common shares outstanding were 5,105,982 and 4,105,433, respectively. The Company incurred a net loss for the three and nine months ended March 31, 2020 and 2019, and therefore, basic and diluted loss per share for the periods are the same because the inclusion of such 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, 2020 and 2019, excluded from diluted weighted-average common shares outstanding, which include common shares underlying outstanding stock options and warrants, were 581,996 and 592,311, respectively. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, Leases (ASU 2016-02). ASU 2016-02 requires a lessee to recognize a lease asset representing its right to use the underlying asset for the lease term, and a lease liability for the payments to be made to a lessor, on its balance sheet for all operating leases greater than 12 months. ASU 2016-02 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The new standard became effective for the Company on July 1, 2019, and it was adopted using the modified retrospective method through a cumulative-effect adjustment directly to retained earnings as of that date. The new standard increased the Company’s right-of-use assets and lease liability by approximately $2.7 million and $2.7 million, respectively. On June 20, 2018, the FASB issued Accounting Standards Update (ASU) 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 is intended to reduce the cost and complexity and to improve financial reporting for share-based payments to nonemployees for goods and services. The amendments in ASU 2018-07 are effective for fiscal years beginning after December 15, 2018, including interim periods therein. The adoption of this guidance by the Company, effective July 1, 2019, did not have a material impact on the Company’s consolidated financial statements. 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 condensed consolidated financial statements. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock Warrant Activity | Warrant detail for the nine months ended March 31, 2020 is reflected below: Number of Warrants Weighted Average Exercise Price Per Warrant Remaining Contract Term (# years) Warrants outstanding and exercisable at June 30, 2019 8,333 $ 20.00 0.25 Warrants issued - $ - - Warrants exercised - $ - - Warrants forfeited (8,333 ) $ 20.00 - Warrants outstanding and exercisable at March 31, 2020 - $ - - Warrant detail for the nine months ended March 31, 2019 is reflected below: Number of Warrants Weighted Average Exercise Price Per Warrant Remaining Contract Term (# years) Warrants outstanding and exercisable at June 30, 2018 174,079 $ 20.30 0.74 Warrants issued - $ - - Warrants exercised - $ - - Warrants exchanged (165,746 ) $ 20.30 - Warrants forfeited - $ - - Warrants outstanding and exercisable at March 31, 2019 8,333 $ 20.00 0.50 |
Schedule of Stock Options Activity | Activity in stock options during the nine months ended March 31, 2020, and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Exercise Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2019 580,171 $ 11.05 8.59 Granted 15,792 $ 8.87 Exercised (5,249 ) $ 4.68 Forfeited and cancelled (8,718 ) $ 12.56 Outstanding at March 31, 2020 581,996 $ 11.02 7.87 Exercisable at March 31, 2020 414,720 $ 10.65 7.53 Activity in stock options during the nine months ended March 31, 2019, and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Exercise Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2018 354,447 $ 8.30 8.87 Granted 247,896 $ 14.40 Exercised - $ - Forfeited and cancelled (18,366 ) $ 4.60 Outstanding at March 31, 2019 583,977 $ 11.00 8.78 Exercisable at March 31, 2019 266,919 $ 9.60 7.98 |
Schedule of Stock-Based Compensation Expenses | The Company allocated stock-based compensation expense included in the condensed consolidated statements of operations for employee option grants and non-employee option grants as follows: For the Three Months Ended March 31 For the Nine Months Ended March 31, 2020 2019 2020 2019 Research and development $ 54,000 $ 225,000 $ 162,000 $ 256,000 General and administration 402,000 861,000 1,194,000 1,236,000 Total stock-based compensation expense $ 456,000 $ 1,086,000 $ 1,356,000 $ 1,492,000 |
Schedule of Fair Value Assumptions of Stock Options | The fair value of stock options was measured at the grant date using the assumptions (annualized percentages) in the table below: Nine months ended March 31, 2020 2019 Expected volatility 100.60 % 111 % Risk free interest rate 1.73 % 2.10 % Forfeiture rate 20.0 % 20.0 % Dividend yield 0 % 0 % Expected term (years) 5.56 5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | The Future Minimum Lease Payments are: Three months period ending 6/30/2020 $ 127,000 2021 393,000 2022 496,000 2023 513,000 2024 572,000 Thereafter 1,454,000 Total Future Minimum Lease Payments 3,555,000 Less: discount (924,000 ) Total lease liability $ 2,631,000 |
Nature of Business and Revers_2
Nature of Business and Reverse Stock Split (Details Narrative) - USD ($) | Jul. 11, 2019 | Mar. 31, 2020 | Jul. 12, 2019 | Jun. 30, 2019 |
Common stock, shares outstanding | 5,108,407 | 5,101,580 | ||
Common stock, shares authorized | 30,000,000 | 30,000,000 | ||
Preferred stock, shares authorized | 500,000 | 500,000 | ||
Common stock par value | $ 0.001 | $ 0.001 | ||
Additional paid in capital | $ 37,292,000 | $ 35,902,000 | ||
2019 Reverse Split [Member] | ||||
Reverse stock split | 1-for-10 reverse split | |||
Common stock, shares outstanding | 51,000,868 | 5,101,580 | ||
Common stock, shares authorized | 300,000,000 | 30,000,000 | ||
Preferred stock, shares authorized | 5,000,000 | 500,000 | ||
Common stock par value | $ 0.001 | $ 0.001 | ||
Additional paid in capital | $ 46,000 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Mar. 31, 2020 | Mar. 09, 2020 | Dec. 03, 2019 | Mar. 28, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 30, 2019 | Oct. 10, 2019 | Oct. 09, 2019 | Jul. 03, 2019 | Jun. 30, 2019 | Mar. 27, 2019 |
Accumulated deficit | $ (50,162,000) | $ (50,162,000) | $ (50,162,000) | $ (39,076,000) | ||||||||||||||
Net loss | (3,965,000) | $ (3,307,000) | $ (3,814,000) | $ (3,814,000) | $ (2,924,000) | $ (2,401,000) | (11,086,000) | $ (9,139,000) | ||||||||||
Cash | 106,000 | 106,000 | 106,000 | $ 102,000 | ||||||||||||||
Principal amount | 11,591,000 | 11,591,000 | 11,591,000 | |||||||||||||||
Loans payable | $ 1,074,000 | 1,074,000 | 1,074,000 | |||||||||||||||
Unsecured Promissory Note [Member] | Amendment No. 4 [Member] | ||||||||||||||||||
Maturity date, description | Maturity date was modified from March 31, 2020 to April 30, 2020 | Extend the maturity date from March 31, 2020 to April 30, 2020 | ||||||||||||||||
Unsecured Promissory Note [Member] | Amendment No. 5 [Member] | ||||||||||||||||||
Maturity date, description | Extend the maturity date to May 31, 2020 | |||||||||||||||||
Esenjay Convertible Note [Member] | ||||||||||||||||||
Principal amount | $ 750,000 | $ 750,000 | 750,000 | 750,000 | ||||||||||||||
Interest rate | 15.00% | |||||||||||||||||
Esenjay Convertible Note [Member] | Minimum [Member] | ||||||||||||||||||
Debt converted into shares, value | $ 1,000,000 | |||||||||||||||||
Cleveland Capital L.P [Member] | ||||||||||||||||||
Principal amount | 2,204,000 | 2,204,000 | 2,204,000 | |||||||||||||||
Loans payable | 1,115,000 | 1,115,000 | 1,115,000 | |||||||||||||||
Cleveland Capital L.P [Member] | Unsecured Promissory Note [Member] | ||||||||||||||||||
Loans payable | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||
Interest rate | 15.00% | |||||||||||||||||
Six Other Lenders [Member] | ||||||||||||||||||
Principal amount | 2,821,000 | 2,821,000 | $ 2,821,000 | |||||||||||||||
Esenjay Investments, LLS [Member] | ||||||||||||||||||
Maximum line of credit | $ 7,000,000 | 12,000,000 | $ 10,000,000 | $ 10,000,000 | $ 7,000,000 | $ 5,000,000 | ||||||||||||
Maturity date, description | Extend the maturity date from March 31, 2019 to December 31, 2019 | Extend the maturity date from December 31, 2019 to June 30, 2020. | ||||||||||||||||
Principal amount | $ 6,566,000 | $ 6,566,000 | $ 6,566,000 | |||||||||||||||
Esenjay Investments, LLS [Member] | Lenders [Member] | ||||||||||||||||||
Credit facility | $ 1,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jul. 02, 2019 | Jun. 30, 2019 | |
Weighted average number of common shares outstanding - basic and diluted | 5,107,845 | 5,076,967 | 5,105,982 | 4,105,433 | ||
Potentially dilutive common shares outstanding | 581,996 | 592,311 | ||||
Right of use asset | $ 2,487,000 | $ 2,487,000 | ||||
Lease liability | $ 2,631,000 | $ 2,631,000 | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
Right of use asset | $ 2,700,000 | |||||
Lease liability | $ 2,700,000 |
Related Party Debt Agreements (
Related Party Debt Agreements (Details Narrative) - USD ($) | Mar. 31, 2020 | Mar. 09, 2020 | Dec. 03, 2019 | Dec. 03, 2019 | Sep. 01, 2019 | Jul. 03, 2019 | Mar. 28, 2019 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 30, 2019 | Oct. 10, 2019 | Oct. 09, 2019 | Mar. 27, 2019 | Mar. 22, 2018 |
Principal amount | $ 11,591,000 | $ 11,591,000 | |||||||||||||
Loans payable | 1,074,000 | 1,074,000 | |||||||||||||
Six Other Lenders [Member] | |||||||||||||||
Principal amount | 2,821,000 | 2,821,000 | |||||||||||||
Esenjay Investments, LLS [Member] | |||||||||||||||
Principal amount | 6,566,000 | $ 6,566,000 | |||||||||||||
Maturity date | Dec. 31, 2019 | ||||||||||||||
Maturity date, description | Extend the maturity date from March 31, 2019 to December 31, 2019 | Extend the maturity date from December 31, 2019 to June 30, 2020. | |||||||||||||
Maximum line of credit | $ 7,000,000 | $ 12,000,000 | $ 10,000,000 | $ 10,000,000 | $ 7,000,000 | $ 5,000,000 | |||||||||
Esenjay Investments, LLS [Member] | Lenders [Member] | |||||||||||||||
Line of credit | $ 1,000,000 | ||||||||||||||
Credit Facility Agreement [Member] | Esenjay Investments, LLS [Member] | |||||||||||||||
Interest rate | 15.00% | ||||||||||||||
Maximum line of credit | $ 5,000,000 | ||||||||||||||
Restated Credit Facility Agreement [Member] | Esenjay Investments, LLS [Member] | |||||||||||||||
Principal amount | $ 7,000,000 | ||||||||||||||
Cleveland Capital L.P [Member] | |||||||||||||||
Principal amount | 2,204,000 | $ 2,204,000 | |||||||||||||
Loans payable | 1,115,000 | 1,115,000 | |||||||||||||
Cleveland Capital L.P [Member] | Cleveland Warrant [Member] | |||||||||||||||
Warrant term | 3 years | ||||||||||||||
Purchase of stock percentage | 0.50% | ||||||||||||||
Cleveland Capital L.P [Member] | Loan Agreement [Member] | |||||||||||||||
Loans payable | $ 1,000,000 | ||||||||||||||
Esenjay Convertible Note [Member] | |||||||||||||||
Principal amount | $ 750,000 | $ 750,000 | $ 750,000 | ||||||||||||
Interest rate | 15.00% | ||||||||||||||
Maturity date | Jun. 30, 2020 | ||||||||||||||
Esenjay Convertible Note [Member] | Minimum [Member] | |||||||||||||||
Debt converted into shares, value | $ 1,000,000 | ||||||||||||||
Unsecured Promissory Note [Member] | Amendment No. 1 [Member] | |||||||||||||||
Purchase of stock percentage | 1.00% | ||||||||||||||
Maturity date, description | Maturity date was modified from September 1, 2019 to December 1, 2019. | ||||||||||||||
Unsecured Promissory Note [Member] | Amendment No. 2 [Member] | |||||||||||||||
Maturity date, description | Maturity date was modified from December 1, 2019 to December 31, 2019. | ||||||||||||||
Unsecured Promissory Note [Member] | Amendment No. 3 [Member] | |||||||||||||||
Maturity date, description | Maturity date was modified from December 31, 2019 to March 31, 2020. | ||||||||||||||
Unsecured Promissory Note [Member] | Amendment No. 4 [Member] | |||||||||||||||
Maturity date, description | Maturity date was modified from March 31, 2020 to April 30, 2020 | Extend the maturity date from March 31, 2020 to April 30, 2020 | |||||||||||||
Unsecured Promissory Note [Member] | Cleveland Capital L.P [Member] | |||||||||||||||
Interest rate | 15.00% | ||||||||||||||
Maturity date | Sep. 1, 2019 | ||||||||||||||
Loans payable | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Factoring Arrangement (Details
Factoring Arrangement (Details Narrative) - USD ($) | Aug. 23, 2019 | Mar. 31, 2020 | Jun. 30, 2019 |
Due to factor | $ 399,000 | ||
Factoring Agreement [Member] | Capital Finance Corp [Member] | |||
Factoring facility maximum credit | $ 3,000,000 | ||
Undisputed receivables purchase percentage | 90.00% | ||
Facility fee percentage | 1.00% | ||
Facility description | Factoring Agreement and a factoring fee of 0.75% of the face value of purchased receivables for 1st 30-days such receivables are outstanding after purchase and 0.35% for each 15-days. | ||
Factoring fees and financing fees percentage | 0.50% | ||
Termination fee percentage | 0.50% | ||
Due to factor | $ 399,000 | ||
Factoring Agreement [Member] | Floor [Member] | Capital Finance Corp [Member] | |||
Floating rate | 8.00% | ||
Factoring Agreement [Member] | Prime [Member] | Capital Finance Corp [Member] | |||
Floating rate | 2.00% |
Stockholders' Deficit (Details
Stockholders' Deficit (Details Narrative) - USD ($) | Mar. 27, 2020 | Dec. 26, 2018 | Mar. 31, 2020 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | Nov. 26, 2014 |
Number of shares issued, value | $ 697,000 | $ 3,695,000 | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Proceeds from common stock subscription | $ 105,000 | |||||||||
Number of common stock shares sold | 335,910 | |||||||||
Sale of stock price per share | $ 11 | |||||||||
Number of common stock shares sold, value | $ 3,695,010 | |||||||||
Aggregate intrinsic value of exercisable options | $ 746,000 | 746,000 | ||||||||
Unrecognized stock-based compensation expense | 1,321,000 | $ 1,321,000 | ||||||||
Unrecognized stock-based compensation weighted average period | 1 year 5 months 9 days | |||||||||
2014 Equity Incentive Plan [Member] | ||||||||||
Share based compensation, number of shares authorized | 1,000,000 | |||||||||
Cleveland Capital L.P [Member] | ||||||||||
Proceeds from offering | $ 2,600,000 | |||||||||
Investor [Member] | Private Placement [Member] | ||||||||||
Number of shares issued, value | $ 8,000,000 | $ 5,000,000 | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||||
Common stock per share | $ 4 | $ 11 | $ 11 | $ 4 | ||||||
Number of shares issued | 454,546 | |||||||||
Investor [Member] | Private Placement [Member] | Maximum [Member] | ||||||||||
Number of shares issued, value | $ 7,000,000 | |||||||||
Investor [Member] | Private Placement [Member] | First Subscription Agreement [Member] | ||||||||||
Proceeds from common stock subscription | $ 105,000 |
Stockholders' Deficit - Schedul
Stockholders' Deficit - Schedule of Stock Warrant Activity (Details) - $ / shares | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Number of Warrants outstanding and exercisable, beginning balance, | 8,333 | 174,079 |
Number of Warrants, issued | ||
Number of Warrants, exercised | ||
Number of Warrants, forfeited | (8,333) | |
Number of Warrants, exchanged | (165,746) | |
Number of Warrants outstanding and exercisable, ending balance | 8,333 | |
Weighted Average Exercise Price Per Warrant outstanding and exercisable, beginning balance | $ 20 | $ 20.30 |
Weighted Average Exercise Price Per Warrant, issued | ||
Weighted Average Exercise Price Per Warrant, exercised | ||
Weighted Average Exercise Price Per Warrant, forfeited | 20 | |
Weighted Average Exercise Price Per Warrant, exchanged | 20.30 | |
Weighted Average Exercise Price Per Warrant outstanding and exercisable, ending balance | $ 20 | |
Remaining Contract Term (years) Warrants outstanding and exercisable, beginning balance | 2 months 30 days | 8 months 26 days |
Remaining Contract Term (years) Warrants outstanding and exercisable, ending balance | 6 months |
Stockholders' Deficit - Sched_2
Stockholders' Deficit - Schedule of Stock Options Activity (Details) - $ / shares | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Number of Shares Outstanding, beginning balance | 580,171 | 354,447 |
Number of Shares, Granted | 15,792 | 247,896 |
Number of Shares, Exercised | (5,249) | |
Number of Shares, Forfeited and cancelled | (8,718) | (18,366) |
Number of Shares Outstanding, ending balance | 581,996 | 583,977 |
Number of Shares Exercisable, ending balance | 414,720 | 266,919 |
Weighted Average Exercise Price Outstanding, beginning balance | $ 11.05 | $ 8.30 |
Weighted Average Exercise Price, Granted | 8.87 | 14.40 |
Weighted Average Exercise Price, Exercised | 4.68 | |
Weighted Average Exercise Price, Forfeited and cancelled | 12.56 | 4.60 |
Weighted Average Exercise Price Outstanding, ending balance | 11.02 | 11 |
Weighted Average Exercise Price Exercisable, ending balance | $ 10.65 | $ 9.60 |
Weighted Average Remaining Contract Term (years) Outstanding, beginning balance | 8 years 7 months 2 days | 8 years 10 months 14 days |
Weighted Average Remaining Contract Term (years) Outstanding, ending balance | 7 years 10 months 14 days | 8 years 9 months 11 days |
Weighted Average Remaining Contract Term (years) Exercisable, ending balance | 7 years 6 months 10 days | 7 years 11 months 23 days |
Stockholders' Deficit - Sched_3
Stockholders' Deficit - Schedule of Stock-Based Compensation Expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Total stock-based compensation expense | $ 456,000 | $ 1,086,000 | $ 1,356,000 | $ 1,492,000 |
Research and Development [Member] | ||||
Total stock-based compensation expense | 54,000 | 225,000 | 162,000 | 256,000 |
General and Administrative [Member] | ||||
Total stock-based compensation expense | $ 402,000 | $ 861,000 | $ 1,194,000 | $ 1,236,000 |
Stockholders' Deficit - Sched_4
Stockholders' Deficit - Schedule of Fair Value Assumptions of Stock Options (Details) | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Expected volatility | 100.60% | 111.00% |
Risk free interest rate | 1.73% | 2.10% |
Forfeiture rate | 20.00% | 20.00% |
Dividend yield | 0.00% | 0.00% |
Expected term (years) | 5 years 6 months 21 days | 5 years |
Other Related Party Transacti_2
Other Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Sublease agreement description | Pursuant to the month-to-month sublease agreement, Epic Boats paid Flux Power 10% of facility costs through the end of the Company's lease agreement which was June 30, 2019. The month-to-month sublease agreement was terminated on June 30, 2019. | |||
Sublease rental | ||||
Month-To-Month Sublease Agreement [Member] | ||||
Sublease rental | $ 5,000 | $ 15,000 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Federal deposit insurance corporation | $ 250,000 | |||
Non-interest bearing bank deposit account | $ 106,000 | 106,000 | ||
Revenue | $ 5,051,000 | $ 1,751,000 | $ 10,585,000 | $ 6,297,000 |
Sales Revenue [Member] | ||||
Concentration risk, percentage | 67.00% | 59.00% | 76.00% | 80.00% |
Revenue | $ 3,373,000 | $ 1,017,000 | $ 7,991,000 | $ 5,067,000 |
Sales Revenue [Member] | Major Customer One [Member] | ||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Sales Revenue [Member] | Major Customer Two [Member] | ||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Sales Revenue [Member] | Major Customer Three [Member] | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Sales Revenue [Member] | Major Customer Four [Member] | ||||
Concentration risk, percentage | 10.00% | |||
Purchase [Member] | ||||
Concentration risk, percentage | 39.00% | 67.00% | 37.00% | 63.00% |
Total purchase | $ 2,581,000 | $ 1,735,000 | $ 4,802,000 | $ 5,117,000 |
Purchase [Member] | Suppliers One [Member] | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Purchase [Member] | Supplier Two [Member] | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Purchase [Member] | Three Suppliers [Member] | ||||
Concentration risk, percentage | 10.00% | 10.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) | Feb. 26, 2020USD ($)ft²$ / shares | Apr. 25, 2019USD ($)ft² | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Monthly rental payment | $ 160,000 | $ 41,000 | $ 458,000 | $ 123,000 | ||
Accutek [Member] | ||||||
Area of land | ft² | 17,539 | 45,600 | ||||
Lease term | 7 years 4 months | |||||
Lease option to extend | The Company entered into the First Amendment to Standard Industrial/Commercial Multi-Tenant Lease dated April 25, 2019 (the "Amendment") with Accutek to rent an additional 16,309 rentable square feet of space plus a residential unit of approximately 1,230 rentable square feet (for a total of approximately 17,539 rentable square feet). | The lease contains an option to extend the term for two periods of 24 months, and the right of first refusal to lease an additional approximate 15,300 square feet. | ||||
Lease expiration date | Nov. 20, 2026 | |||||
Lease, per rentable square | $ / shares | $ 0.93 | |||||
Operating lease, description | The lease for the additional space commences 30 days following the delivery of the additional space, and terminates concurrently with the term for the current space, which expires on November 20, 2026. The additional space was made available for occupancy on April 1, 2020. The base rent for the additional space is the same rate as the space currently being rented under the terms of the Lease, $0.93 per rentable square (subject to 3% annual increase). | |||||
Total purchase price of office furniture | $ 8,300 | |||||
Accutek [Member] | First 12 Months [Member] | ||||||
Monthly rental payment | $ 42,400 | |||||
Escalating lease payment percentage | 3.00% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) | Mar. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Three months period ending 6/30/2020 | $ 127,000 |
2021 | 393,000 |
2022 | 496,000 |
2023 | 513,000 |
2024 | 572,000 |
Thereafter | 1,454,000 |
Total Future Minimum Lease Payments | 3,555,000 |
Less: discount | (924,000) |
Total lease liability | $ 2,631,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | May 02, 2020 | Apr. 30, 2020 | Apr. 22, 2020 | Jan. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 |
Number of shares issued, value | $ 697,000 | $ 3,695,000 | |||||
Principal amount | $ 11,591,000 | ||||||
Subsequent Event [Member] | CARES Act [Member] | Paycheck Protection Program [Member] | |||||||
Proceeds from loan | $ 1,297,083 | ||||||
Debt instrument interest rate | 1.00% | ||||||
Subsequent Event [Member] | Cleveland Loan [Member] | |||||||
Principal amount | $ 1,115,000 | ||||||
Subsequent Event [Member] | Unsecured Promissory Note [Member] | |||||||
Maturity date, description | Extend the maturity date from April 30, 2020 to May 31, 2020. | ||||||
Existing Global Airline Customer [Member] | |||||||
Proceeds from order for additinal batteries | $ 4,680,000 | ||||||
Reduction in order for additinal batteries due to COVID-19 | $ 2,700,000 | ||||||
Two Accredited Investors [Member] | Subsequent Event [Member] | Private Placement [Member] | |||||||
Number of shares issued | 66,250 | ||||||
Common stock per share | $ 4 | ||||||
Number of shares issued, value | $ 265,000 |