Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2015 | Feb. 16, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Flux Power Holdings, Inc. | |
Entity Central Index Key | 1,083,743 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | FLUX | |
Entity Common Stock, Shares Outstanding | 150,935,137 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Current assets: | ||
Cash | $ 63,000 | $ 53,000 |
Accounts receivable | 75,000 | 69,000 |
Inventories | 330,000 | 181,000 |
Deferred financing cost | 310,000 | 0 |
Other current assets | 29,000 | 56,000 |
Total current assets | 807,000 | 359,000 |
Other assets | 25,000 | 25,000 |
Property, plant and equipment, net | 52,000 | 66,000 |
Total assets | 884,000 | 450,000 |
Current liabilities: | ||
Accounts payable | 734,000 | 593,000 |
Accrued expenses | 235,000 | 182,000 |
Customer deposits from related party | 136,000 | 136,000 |
Warrant derivative liability | 23,000 | 23,000 |
Line of credit - related party | 1,575,000 | 1,600,000 |
Line of credit, net of discount | 153,000 | 110,000 |
Total current liabilities | 2,856,000 | 2,644,000 |
Long term liabilities: | ||
Total liabilities | $ 2,856,000 | $ 2,644,000 |
Commitments and contingencies (Note 11) | ||
Stockholders' deficit: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | $ 0 | $ 0 |
Common stock, $0.001 par value; 300,000,000 shares authorized; 150,860,137 and 99,464,000 shares issued and outstanding at December 31, 2015 and June 30, 2015, respectively | 151,000 | 99,000 |
Additional paid-in capital | 10,792,000 | 8,398,000 |
Accumulated deficit | (12,915,000) | (10,691,000) |
Total stockholders’ deficit | (1,972,000) | (2,194,000) |
Total liabilities and stockholders’ deficit | $ 884,000 | $ 450,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Jun. 30, 2015 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, issued | 150,860,137 | 99,464,000 |
Common stock, outstanding | 150,860,137 | 99,464,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net revenue | $ 106,000 | $ 210,000 | $ 277,000 | $ 296,000 |
Cost of sales | 202,000 | 193,000 | 440,000 | 272,000 |
Gross (loss) profit | (96,000) | 17,000 | (163,000) | 24,000 |
Operating expenses: | ||||
Selling and administrative expenses | 597,000 | 474,000 | 1,152,000 | 949,000 |
Amortization of prepaid advisory fees | 8,000 | 1,000 | 12,000 | 33,000 |
Research and development | 469,000 | 141,000 | 801,000 | 262,000 |
Total operating expenses | 1,074,000 | 616,000 | 1,965,000 | 1,244,000 |
Operating loss | (1,170,000) | (599,000) | (2,128,000) | (1,220,000) |
Other income (expense): | ||||
Change in fair value of derivative liabilities | 0 | 0 | 0 | 438,000 |
Interest expense, net | (46,000) | (23,000) | (96,000) | (23,000) |
Other income (expense) | 0 | 4,000 | 0 | (10,000) |
Net loss | $ (1,216,000) | $ (618,000) | $ (2,224,000) | $ (815,000) |
Net loss per share - basic and diluted | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) |
Weighted average number of common shares outstanding - basic and diluted | 150,825,082 | 97,399,546 | 132,681,921 | 95,628,315 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (2,224,000) | $ (815,000) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 14,000 | 18,000 |
Amortization of prepaid advisory fees | 12,000 | 33,000 |
Change in fair value of warrant liability | 0 | (438,000) |
Stock-based compensation | 78,000 | 113,000 |
Stock issuance for services | 11,000 | 11,000 |
Gain on sale of property and equipment | 0 | (4,000) |
Amortization of debt discount | 43,000 | 18,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,000) | (17,000) |
Inventories | (149,000) | (45,000) |
Other current assets | 15,000 | (61,000) |
Accounts payable | 141,000 | 198,000 |
Accrued expenses | 100,000 | 23,000 |
Net cash used in operating activities | (1,965,000) | (966,000) |
Cash flows from investing activities | ||
Purchases of equipment | 0 | (6,000) |
Proceeds from the sale of equipment | 0 | 9,000 |
Net cash provided by investing activities | 0 | 3,000 |
Cash flows from financing activities: | ||
Proceeds from the sale of common stock and warrants, net of offering costs paid | 0 | 501,000 |
Proceeds from line of credit - related party and line of credit | 1,975,000 | 365,000 |
Net cash provided by financing activities | 1,975,000 | 866,000 |
Net increase (decrease) in cash | 10,000 | (97,000) |
Cash, beginning of period | 53,000 | 116,000 |
Cash, end of period | 63,000 | 19,000 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | ||
Conversion of debt to equity | 2,047,000 | 0 |
Deferred financing cost related to the line of credit - related party | $ 310,000 | $ 0 |
Issuance of warrants recorded as deferred financing costs | 0 | 4,000 |
Debt discount related to warrants and beneficial conversion feature | $ 0 | $ 152,000 |
BASIS OF PRESENTATION AND NATUR
BASIS OF PRESENTATION AND NATURE OF BUSINESS | 6 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND NATURE OF BUSINESS | NOTE 1 - BASIS OF PRESENTATION AND 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, 2015 filed with the SEC on September 28, 2015. 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, 2015 has been derived from the audited balance sheet at June 30, 2015 contained in such Form 10-K. The accompanying condensed consolidated financial statements of the Company have been prepared on a going-concern basis. See Note 2 for discussion of liquidity/going concern matters. Nature of Business Flux Power Holdings, Inc. (“Flux” or the “Company”) was incorporated as Olerama, Inc. in Nevada in 1998. Since its incorporation, there have been several name changes, including the change in January 2010 whereby the name of the Company was changed to Lone Pine Holdings, Inc. Following the completion of a reverse merger on June 14, 2012, as described below, the Company’s operations have been conducted through its wholly owned subsidiary, Flux Power, Inc. (“Flux Power”), a California corporation. On May 23, 2012, by way of a merger, Lone Pine Holdings changed its name to Flux Power Holdings, Inc. (“FPH”) a Nevada corporation. The transaction has been reflected as a reverse merger where FPH was the surviving legal entity after the merger. Flux Power remained the accounting acquirer. The merger has been accounted for as a recapitalization as of the earliest period presented. Accordingly, the historical condensed consolidated financial statements represented are those of Flux Power. Flux Power develops and sells rechargeable advanced energy storage systems. The Company has structured its business around its core technology, “The Battery Management System” (“BMS”). The Company’s BMS provides three 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 clients. The Company has also developed a suite of complementary technologies and products that accompany their core products. Sales during the six months ended December 31, 2015 and 2014 were primarily to customers located throughout the United States. As used herein, the terms “we,” “us,” “our,” and “Company” mean Flux Power Holdings, Inc., unless otherwise indicated. All dollar amounts herein are in U.S. dollars unless otherwise stated. |
LIQUIDITY AND GOING CONCERN
LIQUIDITY AND GOING CONCERN | 6 Months Ended |
Dec. 31, 2015 | |
Liquidity And Going Concern [Abstract] | |
LIQUIDITY AND GOING CONCERN | NOTE 2 - LIQUIDITY AND GOING CONCERN The accompanying 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 $ 12,915,000 2 Management plans to continue to seek funding, as necessary, through the private placements of debt and equity securities. The Company initiated a private placement in August 2014 and has raised a total of $ 536,000 3,575,000 2,000,000 925,000 September 19, 2016 285,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the Company’s significant accounting policies which have been consistently applied in the preparation of the accompanying condensed consolidated financial statements follows: The condensed consolidated financial statements include the Flux Power Holdings, Inc. and its wholly-owned subsidiary Flux Power Inc. after elimination of all intercompany accounts and transactions. Certain prior year amounts have been reclassified to conform to the current year presentation for comparative purposes. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as certain financial statement disclosures. Significant estimates include valuation allowances relating to accounts receivable, inventory, and deferred tax assets, and valuations of derivative liabilities and equity instruments. While management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from these estimates. The Company considers all liquid short-term investments with maturities of less than three months when acquired to be cash equivalents. The Company had no cash equivalents at December 31, 2015 and June 30, 2015. The carrying amount of our accounts payable and accounts receivable approximates their estimated fair values due to the short-term maturities of those financial instruments. The carrying amount of notes payable and line of credit approximates their fair value as the interest approximates current market interest rates for the similar instruments. Derivative liabilities recorded in connection with outstanding warrants are reported at their estimated fair value, with changes in fair value being reported in results of operations (see Note 8). Except for derivative liabilities referenced above, the Company does not have any other assets or liabilities that are measured at fair value on a recurring or non-recurring basis. Accounts receivable are carried at their estimated collectible amounts. The Company may require advance deposits from its customers prior to shipment of the ordered products. The Company has not experienced collection issues related to its accounts receivable, and has not recorded an allowance for doubtful accounts during the three and six months ended December 31, 2015 and 2014. Inventories consist primarily of battery management systems and the related subcomponents, and are stated at the lower of cost (first-in, first-out) or market. The Company evaluates inventories to determine if write-downs are necessary due to obsolescence or if the inventory levels are in excess of anticipated demand at market value based on consideration of historical sales and product development plans. The Company determined that no valuation allowance relating to obsolete or slow moving inventory was necessary at December 31, 2015 and June 30, 2015. Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation and amortization are provided using the straight-line method over the estimated useful lives, of the related assets ranging from three to ten years, or, in the case of leasehold improvements, over the lesser of the useful life of the related asset or the lease term. Pursuant to the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 718-10, Compensation-Stock Compensation Common stock or equity instruments such as warrants issued for services to non-employees are valued at their estimated fair value at the measurement date (the date when a firm commitment for performance of the services is reached, typically the date of issuance, or when performance is complete). If the total value exceeds the par value of the stock issued, the value in excess of the par value is added to the additional paid-in-capital account. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, price is fixed or determinable, and collectability of the selling price is reasonably assured. Delivery occurs when risk of loss is passed to the customer, as specified by the terms of the applicable customer agreements. When a right of return exists, contractually or implied, the Company recognizes revenue on the sell-through method. Under this method, revenue is not recognized upon delivery of the inventory components. Instead, the Company records deferred revenue upon delivery and recognizes revenue when the inventory components are sold through to the end user. During the three and six months ended December 31, 2015, and 2014, the Company did not record any deferred revenue. The Company evaluates its exposure to product warranty obligations based on historical experience. Our products are warrantied for five years unless modified by a separate agreement. As of December 31, 2015, the Company carried warranty liability of approximately $ 78,000 The Company has simplified its treatment of shipping and handling costs for deliveries of product to customers to conform with lift equipment industry practice. Cost to deliver sold product to customers is paid by the Company and classified in operating expense. No additional pricing for shipping is invoiced to the customer. Shipping costs of inbound inventory to build product are charged to cost of goods sold. Shipping costs for finished product delivered to customers for the three and six months ended December 31, 2015 were $ 4,000 23,000 45,000 71,000 In accordance with authoritative guidance for the impairment or disposal of long-lived assets, if indicators of impairment exist, the Company assesses the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through the undiscounted future operating cash flows. If impairment is indicated, the Company measures the amount of such impairment by comparing the carrying value of the asset to the present value of the expected future cash flows associated with the use of the asset. The Company believes that no impairment indicators are present. The Company is actively engaged in new product development efforts. Research and development cost relating to possible future products are expensed as incurred. The Company follows FASB ASC Topic No, 740, Income Taxes The Company records deferred tax assets and liabilities based on the differences between the financial statement and tax bases of assets and liabilities and on operating loss carry forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of December 31, 2015, the Company has recorded a full valuation allowance against its deferred tax assets due to uncertainties relating to the Company’s ability to generate future taxable income to realize these assets. The Company also follows the provisions of FASB ASC Topic No.740 relating to uncertain tax provisions and have analyzed filing positions in all of the federal and state jurisdictions where the Company is required to file income tax returns, as well as all open tax years in these jurisdictions. Based on our analysis, no unrecognized tax benefits have been identified as of December 31, 2015, or June 30, 2015, and accordingly, no additional tax liabilities have been recorded. 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 include the impact from all dilutive potential common shares relating to outstanding convertible securities. For the three and six months ended December 31, 2015, basic and diluted weighted-average common shares outstanding were 150,825,082 and 132,681,921 116,689 For the three and six months ended December 31, 2014, basic and diluted weighted-average common shares outstanding were 97,399,546 and 95,628,315 2,230,018 The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risk. The Company evaluates free-standing derivative instruments (or embedded derivatives) to properly classify such instruments within equity or as liabilities in our financial statements. The classification of a derivative instrument is reassessed at each reporting date. If the classification changes because of events during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number of times a contract may be reclassified. Instruments classified as derivative liabilities are recorded initially at their estimated fair value and are re-measured each reporting period (or upon reclassification). The change in fair value is recorded on our condensed consolidated statements of operations in other (income) expense (see Note 7). In January 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments - Overall In July 2015, The FASB issued ASU No. 2015-11, Inventory In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest In August 2015, the FASB issued ASU No. 2015-15 which amends ASU 2015-03 to clarify presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. We adopted ASU 2015-15 during the quarter ended December 31, 2015 and during this quarter, recorded approximately $310,000 of deferred debt issuance costs in connection with a line of credit amendment agreement (See Note 4). In January 2015, the FASB issued an ASU No. 2015-01, Extraordinary and Unusual Items In August 2014, The FASB issued ASU No. 2014-15 regarding ASC topic No. 205, Presentation of Financial Statements - Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers |
RELATED PARTY DEBT AGREEMENTS
RELATED PARTY DEBT AGREEMENTS | 6 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
RELATED PARTY DEBT AGREEMENTS | NOTE 4 - RELATED PARTY DEBT AGREEMENTS Between October 2011 and December 2015, the Company entered into and/or amended various debt agreements with Esenjay Investments, LLC (“Esenjay”), with an aggregate borrowing limit of $ 3,750,000 2,500,000 925,000 6 July 30, 2016 65 Between July 1, 2014 and December 31, 2015, the Company borrowed an aggregate of $ 3,575,000 2,000,000 On September 3, 2015, the Company entered into a Loan Conversion Agreement (“Conversion Agreement”), as amended on October 6, 2015 and November 13, 2015 (the “Amendments”), with Esenjay pursuant to which Company agreed to issue 51,171,025 0.04 2,000,000 2,200,000 46,841 51,171,025 Debt, Modifications and Extinguishments On December 29, 2015, we entered into a Second Amendment to the Unrestricted Line of Credit (“Second Amendment”), with Esenjay, pursuant to which we agreed to amend certain terms of the Unrestricted Line of Credit agreement dated September 24, 2012 and amended on October 16, 2013. Under the Second Amendment, the agreement was modified and amended to (i) extend the maturity date to July 30, 2016; (ii) increase the maximum principal amount available from $2,000,000 to $2,500,000; and (iii) reduce the conversion price from $0.30 to $0.06. The estimated change in fair value of the conversion price of approximately $310,000 was determined to be a debt issuance cost, and accordingly, was recorded as a deferred financing cost at the date of the Second Amendment. This cost will be amortized as interest expense over the term of the amended Unrestricted Line of Credit agreement. No amortization was recorded during the three months ended December 31, 2015. The outstanding principal balance of the Unrestricted Line of Credit as of December 31, 2015 was $1,575,000 resulting in a remaining $925,000 available for future draws under this agreement, subject to lender’s approval. |
LINE OF CREDIT AND SHORT TERM L
LINE OF CREDIT AND SHORT TERM LOAN | 6 Months Ended |
Dec. 31, 2015 | |
Line of Credit and Short Term Loan [Abstract] | |
LINE OF CREDIT AND SHORT TERM LOAN | NOTE 5 - LINE OF CREDIT AND SHORT TERM LOAN Line of Credit On October 2, 2014, the Company entered in a line of credit (“Line of Credit”) agreement in the maximum amount of $ 500,000 8 0.12 215,000 0.12 0.20 215,000 1,791,667 0.20 85,000 80,000 215,000 62,000 22,000 43,000 The Company retained Security Research Associates Inc. (“SRA”), on a best-efforts basis, as its placement agent for the placement of the Line of Credit. The Company agreed to pay SRA a cash amount equal to 5 0.12 3 10,750 89,583 0.12 |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 6 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 6 - STOCKHOLDERS’ DEFICIT At December 31, 2015, the Company had 300,000,000 0.001 150,860,137 In addition, at December 31, 2015, the Company is authorized to issue up to 5,000,000 0.001 Holders of common stock are entitled to receive dividends, when, as, and if declared by the Board of Directors, out of any assets legally available to the Company. Dividends are declared and paid in an equal per-share amount on the outstanding shares of each series of common stock. To date the Board of Directors has neither declared nor paid common stock dividends to shareholders. Common Stock and Warrants Private Placements - Fiscal 2015 On July 31, 2014, the board of directors approved a private placement equity financing that was intended to raise up to a total of $ 990,000 1,000,000 500,000 90,000 5.95 536,000 5,949,999 2,974,999 0.25 35,000 9 385,500 0.09 35,000 Advisory Agreements Monarch Bay Securities. 20,000 5,000 20,000 8 8 Catalyst Global LLC. 2,000 450,000 150,000 0.07 10,500 75,000 0.04 3,000 75,000 0.05 3,750 8,000 4,000 Security Research Associates, Inc. On June 26, 2013, the Company entered into an agreement with SRA pursuant to which SRA agreed to provide business and advisory services. SRA served as our placement agent in connection with the Company’s 2015 private placement offerings described above. In connection with these private placements, SRA was paid aggregate cash compensation in the amount of $ 142,155 2,176,500 0.06 0.09 9 9 0.06 The Company entered into a renewal agreement with SRA on March 18, 2015 pursuant to which it retained SRA through July 2015 as the Company’s exclusive placement agent on a “best-efforts” basis in connection with private placement of stock or convertible securities by the Company. The engagement period commenced on the date of the renewal agreement and there were no changes to terms of compensation. During the engagement period, the Company agreed that it would not retain any additional placement agents to perform the same or similar services to be performed by SRA under the renewal agreement and the Company would refer to SRA all offers and inquiries with respect to the financing by any person or entity, with the exception of participation by Esenjay Investment LLC. No additional funding was received by the Company, and no additional fees were paid to SRA, during the renewal period. On July 31, 2015, the Agency Agreement with SRA reached its termination date, and was not renewed. Warrant Activity Weighted Average Remaining Exercise Price Contract Number Per Share Term (# years) Shares purchasable under outstanding warrants at December 31, 2015 28,040,096 $ 0.21 1.45 - 4.25 Stock-based Compensation During the six months ended December 31, 2015, pursuant to the 2014 Equity Incentive Plan, the Company issued 4,385,000 113,000 400,000 76,000 64,000 12,000 Weighted Weighted Average Average Remaining Number of Exercise Price Contract Shares Per Share Term (# years) Outstanding at June 30, 2015 6,101,357 $ 0.15 Granted 4,385,000 0.05 Exercised - Forfeited and cancelled (389,774) $ 0.10 Outstanding at September 30, 2015 10,096,583 $ 0.11 7.72 Exercisable at September 30, 2015 6,056,827 $ 0.14 6.49 Activity in stock options during the six months ended December 31, 2014, and related balances outstanding as of that date are reflected below: Weighted Weighted Average Average Remaining Number of Exercise Price Contract Shares Per Share Term (# years) Outstanding at June 30, 2014 6,335,695 $ 0.19 Granted 400,000 $ 0.31 Exercised - Forfeited and cancelled (634,338) $ 0.41 Outstanding at December 31, 2014 6,101,357 $ 0.16 7.47 Exercisable at December 31, 2014 4,042,550 $ 0.14 6.67 Stock-based compensation expense recognized in our condensed consolidated statements of operations for the six months ended December 31, 2015, and 2014, as shown below, 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. The closing price of our stock at December 31, 2015, was $ 0.05 5,661 For the Three Months Ended For the Six Months Ended December 31, December 31, December 31, December 31, 2015 2014 2015 2014 Research and development $ 11,000 $ 3,000 $ 14,000 $ 6,000 General and administration 37,000 59,000 64,000 107,000 Total stock-based compensation expense $ 48,000 $ 62,000 $ 78,000 $ 113,000 The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. Six months ended December 31, 2015 2014 Expected volatility 100 % 100 % Risk free interest rate 1.31 % 0.96 % Forfeiture rate 17.00 % 0 % Dividend yield 0 % 0 % The remaining amount of unrecognized stock-based compensation expense at December 31, 2015, is approximately $ 140,000 2.31 |
WARRANT DERIVATIVE LIABILITY
WARRANT DERIVATIVE LIABILITY | 6 Months Ended |
Dec. 31, 2015 | |
Derivative Liabilities [Abstract] | |
WARRANT DERIVATIVE LIABILITY | NOTE 7 - WARRANT DERIVATIVE LIABILITY At December 31, 2015 there were 2,907,347 Warrants classified as derivative liabilities are recorded at their estimated fair values at the issuance date and are revalued at each subsequent reporting date. Issued Warrants Estimated Estimated Estimated June 2012 Warrants 562,551 $ 0.008 $ 4,000 $ 4,000 July 2012 Warrants 338,013 0.008 3,000 3,000 August 2012 Warrants 120,719 0.009 1,000 1,000 October 2012 Warrants 48,287 0.009 1,000 1,000 Advisory Agreement Warrants 1,837,777 0.011 14,000 14,000 Total 2,907,347 $ 23,000 $ 23,000 There was no change in aggregate estimated fair value of the warrants classified as derivative liabilities during the three and six months ended December 31, 2015. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | N OTE 8 - FAIR VALUE MEASUREMENTS We follow FASB ASC Topic No. 820, Fair Value Measurements and Disclosures ASC 820 requires that assets and liabilities carried at fair value will be classified and disclosed in one of the following categories: Level 1: Quoted market prices in active markets for identical assets and liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The hierarchy noted above requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The fair value of our recorded derivative liabilities is determined based on unobservable inputs that are not corroborated by market data, which is a (Level 3) classification. We record derivative liabilities on our balance sheets at fair value with changes in fair value recorded in our condensed consolidated statements of operations. There were no changes in the fair value of our (Level 3) financial instruments for the three and six months ended December 31, 2015. |
OTHER RELATED PARTY TRANSACTION
OTHER RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
OTHER RELATED PARTY TRANSACTIONS | NOTE 9 - OTHER RELATED PARTY TRANSACTIONS Transactions with Epic Boats The Company subleases office and manufacturing space to Epic Boats (an entity founded and controlled by Chris Anthony, our board member and former Chief Executive Officer) in our facility in Vista, California pursuant to a month-to-month sublease agreement. Pursuant to this agreement, Epic Boats pays Flux Power 10% of facility costs for a period no longer than through the end of the Company’s two-year lease agreement. The Company received $ 4,000 8,000 On October 21, 2009, we entered into an agreement with Epic Boats where Epic Boats assigned and transferred to Flux Power the entire right, title, and interest into products, technology, intellectual property, inventions and all improvements thereof, for several product types. As of that date, Flux Power began selling products to Epic Boats under Flux Power's standard terms and conditions and has continued to sell products to Epic Boats as a customer. On April 7, 2014, the Company sold $ 3,000 9,000 136,000 We believe our facility at Vista, California provide adequate space for our current and projected needs. |
CONCENTRATIONS
CONCENTRATIONS | 6 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 10 - CONCENTRATIONS Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments. 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 63,000 Customer Concentrations During the three and six months ended December 31, 2015, the Company had two customers that represented more than 10 64 During the three and six months ended December 31, 2014, the Company had two customers that represented more than 10 39 Suppliers/Vendor Concentrations We obtain components and supplies included in our products from a small group of suppliers. During the three and six months ended December 31, 2015, we had three suppliers who accounted for more than 10 64 During the three months ended December 31, 2014, we had two suppliers, who accounted for more than 10 46 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES From time to time, we may be involved in litigation relating to claims arising out of our operations. We are currently a party to a legal proceeding arising from a work related injury. While we do not presently believe that the ultimate outcome of such proceedings will have a material adverse effect on our business, operating results or financial condition, litigation is subject to inherent uncertainties. If an unfavorable ruling were to occur, it is possible that such ruling could have a material adverse impact on our business, operating results or financial condition in the period in which the ruling occurs. Our current estimates of the potential impact from such legal proceeding could change in the future. No loss has been recorded as of December 31, 2015 in connection with this matter as we do not believe that it is probable that the Company will incur a material loss or that the amount of any potential loss can be reasonably estimated. Our current estimate of the potential impact from such proceeding could change in the future. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 - SUBSEQUENT EVENTS Management has evaluated events subsequent to December 31, 2015, through the date of this filing with the SEC for transactions and other events that may require adjustment of and/or disclosure in such financial statements. In January 2016, we borrowed an aggregate of $ 275,000 650,000 On February 11, 2016, pursuant to the contract with CGL, we issued the fifth tranche of 75,000 |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the Flux Power Holdings, Inc. and its wholly-owned subsidiary Flux Power Inc. after elimination of all intercompany accounts and transactions. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation for comparative purposes. |
Use of Estimates in Financial Statement Preparation | Use of Estimates in Financial Statement Preparation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as certain financial statement disclosures. Significant estimates include valuation allowances relating to accounts receivable, inventory, and deferred tax assets, and valuations of derivative liabilities and equity instruments. While management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all liquid short-term investments with maturities of less than three months when acquired to be cash equivalents. The Company had no cash equivalents at December 31, 2015 and June 30, 2015. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying amount of our accounts payable and accounts receivable approximates their estimated fair values due to the short-term maturities of those financial instruments. The carrying amount of notes payable and line of credit approximates their fair value as the interest approximates current market interest rates for the similar instruments. Derivative liabilities recorded in connection with outstanding warrants are reported at their estimated fair value, with changes in fair value being reported in results of operations (see Note 8). Except for derivative liabilities referenced above, the Company does not have any other assets or liabilities that are measured at fair value on a recurring or non-recurring basis. |
Accounts Receivable and Customer Deposits | Accounts Receivable and Customer Deposits Accounts receivable are carried at their estimated collectible amounts. The Company may require advance deposits from its customers prior to shipment of the ordered products. The Company has not experienced collection issues related to its accounts receivable, and has not recorded an allowance for doubtful accounts during the three and six months ended December 31, 2015 and 2014. |
Inventories | Inventories Inventories consist primarily of battery management systems and the related subcomponents, and are stated at the lower of cost (first-in, first-out) or market. The Company evaluates inventories to determine if write-downs are necessary due to obsolescence or if the inventory levels are in excess of anticipated demand at market value based on consideration of historical sales and product development plans. The Company determined that no valuation allowance relating to obsolete or slow moving inventory was necessary at December 31, 2015 and June 30, 2015. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation and amortization are provided using the straight-line method over the estimated useful lives, of the related assets ranging from three to ten years, or, in the case of leasehold improvements, over the lesser of the useful life of the related asset or the lease term. |
Stock-based Compensation | Stock-based Compensation Pursuant to the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 718-10, Compensation-Stock Compensation Common stock or equity instruments such as warrants issued for services to non-employees are valued at their estimated fair value at the measurement date (the date when a firm commitment for performance of the services is reached, typically the date of issuance, or when performance is complete). If the total value exceeds the par value of the stock issued, the value in excess of the par value is added to the additional paid-in-capital account. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, price is fixed or determinable, and collectability of the selling price is reasonably assured. Delivery occurs when risk of loss is passed to the customer, as specified by the terms of the applicable customer agreements. When a right of return exists, contractually or implied, the Company recognizes revenue on the sell-through method. Under this method, revenue is not recognized upon delivery of the inventory components. Instead, the Company records deferred revenue upon delivery and recognizes revenue when the inventory components are sold through to the end user. During the three and six months ended December 31, 2015, and 2014, the Company did not record any deferred revenue. |
Product Warranties | Product Warranties The Company evaluates its exposure to product warranty obligations based on historical experience. Our products are warrantied for five years unless modified by a separate agreement. As of December 31, 2015, the Company carried warranty liability of approximately $ 78,000 |
Shipping and Handling Costs | Shipping and Handling Costs The Company has simplified its treatment of shipping and handling costs for deliveries of product to customers to conform with lift equipment industry practice. Cost to deliver sold product to customers is paid by the Company and classified in operating expense. No additional pricing for shipping is invoiced to the customer. Shipping costs of inbound inventory to build product are charged to cost of goods sold. Shipping costs for finished product delivered to customers for the three and six months ended December 31, 2015 were $ 4,000 23,000 45,000 71,000 |
Impairment of Long-lived Assets | Impairment of Long-lived Assets In accordance with authoritative guidance for the impairment or disposal of long-lived assets, if indicators of impairment exist, the Company assesses the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through the undiscounted future operating cash flows. If impairment is indicated, the Company measures the amount of such impairment by comparing the carrying value of the asset to the present value of the expected future cash flows associated with the use of the asset. The Company believes that no impairment indicators are present. |
Research and Development | Research and Development The Company is actively engaged in new product development efforts. Research and development cost relating to possible future products are expensed as incurred. |
Income Taxes | Income Taxes The Company follows FASB ASC Topic No, 740, Income Taxes The Company records deferred tax assets and liabilities based on the differences between the financial statement and tax bases of assets and liabilities and on operating loss carry forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of December 31, 2015, the Company has recorded a full valuation allowance against its deferred tax assets due to uncertainties relating to the Company’s ability to generate future taxable income to realize these assets. The Company also follows the provisions of FASB ASC Topic No.740 relating to uncertain tax provisions and have analyzed filing positions in all of the federal and state jurisdictions where the Company is required to file income tax returns, as well as all open tax years in these jurisdictions. Based on our analysis, no unrecognized tax benefits have been identified as of December 31, 2015, or June 30, 2015, and accordingly, no additional tax liabilities have been recorded. |
Net Income 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 include the impact from all dilutive potential common shares relating to outstanding convertible securities. For the three and six months ended December 31, 2015, basic and diluted weighted-average common shares outstanding were 150,825,082 and 132,681,921 116,689 For the three and six months ended December 31, 2014, basic and diluted weighted-average common shares outstanding were 97,399,546 and 95,628,315 2,230,018 |
Derivative Financial Instruments | Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risk. The Company evaluates free-standing derivative instruments (or embedded derivatives) to properly classify such instruments within equity or as liabilities in our financial statements. The classification of a derivative instrument is reassessed at each reporting date. If the classification changes because of events during a reporting period, the instrument is reclassified as of the date of the event that caused the reclassification. There is no limit on the number of times a contract may be reclassified. Instruments classified as derivative liabilities are recorded initially at their estimated fair value and are re-measured each reporting period (or upon reclassification). The change in fair value is recorded on our condensed consolidated statements of operations in other (income) expense (see Note 7). |
New Accounting Standards | New Accounting Standards In January 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments - Overall In July 2015, The FASB issued ASU No. 2015-11, Inventory In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest In August 2015, the FASB issued ASU No. 2015-15 which amends ASU 2015-03 to clarify presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. We adopted ASU 2015-15 during the quarter ended December 31, 2015 and during this quarter, recorded approximately $310,000 of deferred debt issuance costs in connection with a line of credit amendment agreement (See Note 4). In January 2015, the FASB issued an ASU No. 2015-01, Extraordinary and Unusual Items In August 2014, The FASB issued ASU No. 2014-15 regarding ASC topic No. 205, Presentation of Financial Statements - Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers |
STOCKHOLDERS' DEFICIT (Tables)
STOCKHOLDERS' DEFICIT (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Warrant Activity and Related Balances Outstanding | During the six months ended December 31, 2015 there were no warrants issued, exercised or cancelled. Information relating to warrants outstanding at December 31, 2015 is shown below: Weighted Average Remaining Exercise Price Contract Number Per Share Term (# years) Shares purchasable under outstanding warrants at December 31, 2015 28,040,096 $ 0.21 1.45 - 4.25 |
Stock Options Activity | Activity in stock options during the six months ended December 31, 2015, and related balances outstanding as of that date are reflected below: Weighted Weighted Average Average Remaining Number of Exercise Price Contract Shares Per Share Term (# years) Outstanding at June 30, 2015 6,101,357 $ 0.15 Granted 4,385,000 0.05 Exercised - Forfeited and cancelled (389,774) $ 0.10 Outstanding at September 30, 2015 10,096,583 $ 0.11 7.72 Exercisable at September 30, 2015 6,056,827 $ 0.14 6.49 Activity in stock options during the six months ended December 31, 2014, and related balances outstanding as of that date are reflected below: Weighted Weighted Average Average Remaining Number of Exercise Price Contract Shares Per Share Term (# years) Outstanding at June 30, 2014 6,335,695 $ 0.19 Granted 400,000 $ 0.31 Exercised - Forfeited and cancelled (634,338) $ 0.41 Outstanding at December 31, 2014 6,101,357 $ 0.16 7.47 Exercisable at December 31, 2014 4,042,550 $ 0.14 6.67 |
Employee Option Grants and Non-employee Option Grants | We 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 For the Six Months Ended December 31, December 31, December 31, December 31, 2015 2014 2015 2014 Research and development $ 11,000 $ 3,000 $ 14,000 $ 6,000 General and administration 37,000 59,000 64,000 107,000 Total stock-based compensation expense $ 48,000 $ 62,000 $ 78,000 $ 113,000 |
Stock Options by Price Range | The fair value of stock options was measured at the grant date using the assumptions (annualized percentages) in the table below: Six months ended December 31, 2015 2014 Expected volatility 100 % 100 % Risk free interest rate 1.31 % 0.96 % Forfeiture rate 17.00 % 0 % Dividend yield 0 % 0 % |
WARRANT DERIVATIVE LIABILITY (T
WARRANT DERIVATIVE LIABILITY (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Derivative Liabilities [Abstract] | |
Fair Value Measurements, Nonrecurring | These warrants were determined to have an estimated fair value per share and aggregate value as of December 31, 2015 and an aggregate value as of June 30, 2015 as follows: Issued Warrants Estimated Estimated Estimated June 2012 Warrants 562,551 $ 0.008 $ 4,000 $ 4,000 July 2012 Warrants 338,013 0.008 3,000 3,000 August 2012 Warrants 120,719 0.009 1,000 1,000 October 2012 Warrants 48,287 0.009 1,000 1,000 Advisory Agreement Warrants 1,837,777 0.011 14,000 14,000 Total 2,907,347 $ 23,000 $ 23,000 |
LIQUIDITY AND GOING CONCERN - A
LIQUIDITY AND GOING CONCERN - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Oct. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Jun. 30, 2015 | |
Going Concern [Line Items] | |||||
Accumulated deficit | $ 12,915,000 | $ 10,691,000 | |||
Proceeds from Issuance of Private Placement | 0 | $ 501,000 | |||
Additional Capital Required | 2,000,000 | ||||
Line of Credit, Current | $ 1,575,000 | $ 1,600,000 | |||
Line of Credit Facility, Expiration Date | Jul. 31, 2016 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 925,000 | ||||
Private Placement [Member] | |||||
Going Concern [Line Items] | |||||
Proceeds from Issuance of Private Placement | 536,000 | ||||
Convertible Credit Facility [Member] | |||||
Going Concern [Line Items] | |||||
Line of Credit, Current | 3,575,000 | $ 2,000,000 | |||
Line of Credit Facility, Expiration Date | Sep. 19, 2016 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 285,000 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Accounting Policies [Line Items] | |||||
Product warranty liability | $ 78,000 | $ 78,000 | |||
Anti-dilutive options and warrants | 116,689 | 2,230,018 | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 150,825,082 | 97,399,546 | 132,681,921 | 95,628,315 | |
Shipping, Handling and Transportation Costs | $ 4,000 | $ 23,000 | |||
Freight Costs | 45,000 | 71,000 | |||
Deferred Finance Costs, Current, Net | $ 310,000 | $ 310,000 | $ 0 |
RELATED PARTY DEBT AGREEMENTS -
RELATED PARTY DEBT AGREEMENTS - Additional Information (Detail) - USD ($) | Sep. 09, 2015 | Dec. 31, 2015 | Jun. 30, 2015 |
Debt Instrument [Line Items] | |||
Debt Instrument, Convertible, Conversion Price | $ 0.12 | ||
Stock Issued During Period, Shares, New Issues | 1,791,667 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 925,000 | ||
Line of Credit Facility, Expiration Date | Jul. 31, 2016 | ||
Deferred Finance Costs, Current, Net | $ 310,000 | $ 0 | |
Esenjay Investments LLC [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Convertible, Conversion Price | $ 0.04 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000 | ||
Stock Issued During Period, Shares, New Issues | 51,171,025 | 51,171,025 | |
Debt Conversion, Original Debt, Amount | $ 2,000,000 | ||
Debt Conversion Accrued Interest Original Debt Amount1 | $ 46,841 | ||
Line of Credit Facility, Interest Rate During Period | 6.00% | ||
Line of Credit Facility, Current Borrowing Capacity | $ 3,575,000 | ||
Borrowing Limits In Debt Agreement | 3,750,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 925,000 | ||
Beneficial Ownership Percentage of Related Party | 65.00% | ||
Debt Conversion, Converted Instrument, Amount | $ 2,000,000 | ||
Line of Credit Facility, Expiration Date | Jul. 30, 2016 | ||
Line of Credit Facility, Description | Under the Second Amendment, the agreement was modified and amended to (i) extend the maturity date to July 30, 2016; (ii) increase the maximum principal amount available from $2,000,000 to $2,500,000; and (iii) reduce the conversion price from $0.30 to $0.06.The estimated change in fair value of the conversion price of approximately $310,000 was determined to be a debt issuance cost, and accordingly, was recorded as a deferred financing cost at the date of the Second Amendment. This cost will be amortized as interest expense over the term of the amended Unrestricted Line of Credit agreement. No amortization was recorded during the three months ended December 31, 2015. The outstanding principal balance of the Unrestricted Line of Credit as of December 31, 2015 was $1,575,000 resulting in a remaining $925,000 available for future draws under this agreement, subject to lenders approval. | ||
Esenjay Investments LLC [Member] | Secondary Revolving promissory note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 2,200,000 |
LINE OF CREDIT AND SHORT TERM24
LINE OF CREDIT AND SHORT TERM LOAN - Additional Information (Detail) - USD ($) | Oct. 02, 2014 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 |
Debt Instrument, Convertible, Conversion Price | $ 0.12 | $ 0.12 | |||
Long-term Line of Credit | $ 215,000 | $ 215,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.20 | $ 0.20 | $ 0.20 | ||
Debt Instrument, Unamortized Discount | $ 62,000 | ||||
Amortization of Debt Discount (Premium) | $ 22,000 | $ 43,000 | $ 18,000 | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,907,347 | 2,907,347 | |||
Percentage of aggregate gross proceeds from Note received | 5.00% | ||||
Stock Issued During Period, Shares, New Issues | 1,791,667 | ||||
Class Of Warrant Expiration Term | 3 years | ||||
Investment Warrants, Exercise Price | $ 0.12 | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 215,000 | $ 215,000 | |||
Warrant [Member] | |||||
Debt Instrument, Unamortized Discount | $ 85,000 | 85,000 | |||
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 80,000 | ||||
Common Stock [Member] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.12 | $ 0.12 | |||
Leon Frenkel [Member] | |||||
Debt Instrument, Interest Rate During Period | 8.00% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | ||||
Debt Instrument, Convertible, Conversion Price | $ 0.12 | $ 0.12 | |||
Second Line of Credit [Member] | |||||
Long-term Line of Credit | $ 215,000 | $ 215,000 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 89,583 | 89,583 | |||
Fees and Commissions | $ 10,750 |
STOCKHOLDERS' DEFICIT- Warrant
STOCKHOLDERS' DEFICIT- Warrant Activity and Related Balances Outstanding (Detail) | 6 Months Ended |
Dec. 31, 2015$ / Unitshares | |
Number | |
Shares purchasable under outstanding warrants | shares | 28,040,096 |
Weighted Average Exercise Price Per Share | |
Shares purchasable under outstanding warrants | $ / Unit | 0.21 |
Maximum [Member] | |
Remaining Contract Term (Years) | |
Shares purchasable under outstanding warrants | 4 years 3 months |
Minimum [Member] | |
Remaining Contract Term (Years) | |
Shares purchasable under outstanding warrants | 1 year 5 months 12 days |
STOCKHOLDERS' DEFICIT - Stock O
STOCKHOLDERS' DEFICIT - Stock Option Activity (Detail) - Employee Stock Option [Member] - $ / shares | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | ||
Outstanding Begining | 6,101,357 | 6,335,695 |
Granted | 4,385,000 | 400,000 |
Exercised | 0 | 0 |
Forfeited and cancelled | (389,774) | (634,338) |
Outstanding Ending | 10,096,583 | 6,101,357 |
Exercisable | 6,056,827 | 4,042,550 |
Weighted Average Exercise Price Per Share | ||
Outstanding Begining | $ 0.15 | $ 0.19 |
Granted | 0.05 | 0.31 |
Exercised | 0 | 0 |
Forfeited and cancelled | 0.10 | 0.41 |
Outstanding Ending | 0.11 | 0.16 |
Exercisable | $ 0.14 | $ 0.14 |
Weighted Average Remaining Contract Term (in years) | ||
Outstanding | 7 years 8 months 19 days | 7 years 5 months 19 days |
Exercisable | 6 years 5 months 26 days | 6 years 8 months 1 day |
STOCKHOLDERS' DEFICIT - Employe
STOCKHOLDERS' DEFICIT - Employee Option Grants and Non-employee Option Grants (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total stock-based compensation expense | $ 48,000 | $ 62,000 | $ 78,000 | $ 113,000 |
Research and development [Member] | ||||
Total stock-based compensation expense | 11,000 | 3,000 | 14,000 | 6,000 |
General and administration [Member] | ||||
Total stock-based compensation expense | $ 37,000 | $ 59,000 | $ 64,000 | $ 107,000 |
STOCKHOLDERS' DEFICIT - Assumpt
STOCKHOLDERS' DEFICIT - Assumptions Used to Measure Fair Value of Stock Options (Detail) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ||
Expected volatility | 100.00% | 100.00% |
Risk free interest rate | 1.31% | 0.96% |
Forfeiture rate | 17.00% | 0.00% |
Dividend yield | 0.00% | 0.00% |
STOCKHOLDERS' DEFICIT- Addition
STOCKHOLDERS' DEFICIT- Additional Information (Detail) | Nov. 12, 2015USD ($)$ / sharesshares | Aug. 11, 2015USD ($)$ / shares | May. 11, 2015shares | Feb. 11, 2015USD ($)shares | Feb. 17, 2015USD ($)$ / sharesshares | Jul. 31, 2014USD ($)$ / sharesshares | Jun. 26, 2013USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Sep. 30, 2014shares | Jun. 30, 2015$ / sharesshares | Oct. 02, 2014$ / shares | Jun. 30, 2014USD ($) |
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Common stock, authorized | shares | 300,000,000 | 300,000,000 | ||||||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||||||||||
Preferred stock, authorized | shares | 5,000,000 | 5,000,000 | ||||||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||||||||||
Exercisable options intrinsic value | $ 5,661 | |||||||||||||
Sale of Stock, Price Per Share | $ / shares | $ 0.05 | |||||||||||||
Common Stock Shares Issued | shares | 150,860,137 | 99,464,000 | ||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,791,667 | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 2,907,347 | |||||||||||||
Advisory Services Cash Compensation Percentage | 8.00% | |||||||||||||
Reimbursement For Related Expenses | $ 140,000 | |||||||||||||
Common stock initial exercise price | $ / shares | $ 0.20 | $ 0.20 | ||||||||||||
Stock or Unit Option Plan Expense | $ 12,000 | |||||||||||||
Proceeds from Issuance of Private Placement | $ 0 | $ 501,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 64,000 | |||||||||||||
Accrued Employee Benefits, Current | $ 76,000 | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 22 days | |||||||||||||
Security Research Associates, Inc [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 2,176,500 | |||||||||||||
Share Price | $ / shares | $ 0.06 | |||||||||||||
Advisory Services Cash Compensation Percentage | 9.00% | |||||||||||||
Class Of Warrant Or Right Issued Or Issuable Percentage | 9.00% | |||||||||||||
Cash compensation | $ 142,155 | |||||||||||||
2015 Private Placement [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Units Issued During Period Number | 5.95 | |||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 5,949,999 | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 2,974,999 | |||||||||||||
Common stock initial exercise price | $ / shares | $ 0.25 | |||||||||||||
Intent To Raise Private Placement Offering | $ 990,000 | |||||||||||||
Proceeds from Issuance of Private Placement | $ 536,000 | |||||||||||||
2015 Private Placement [Member] | Security Research Associates, Inc [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 385,500 | |||||||||||||
Advisory Services Cash Compensation Percentage | 9.00% | |||||||||||||
Payment For Advisory Services | $ 35,000 | |||||||||||||
Common stock initial exercise price | $ / shares | $ 0.09 | |||||||||||||
Maximum [Member] | Security Research Associates, Inc [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Common stock initial exercise price | $ / shares | $ 0.09 | |||||||||||||
Minimum [Member] | Security Research Associates, Inc [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Common stock initial exercise price | $ / shares | $ 0.06 | |||||||||||||
Incentive Stock Option [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 4,385,000 | |||||||||||||
Catalyst Global LLC [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Issuance Of Restricted Shares | shares | 150,000 | |||||||||||||
Issuance Of Restricted Shares Value | $ 3,750 | $ 3,000 | $ 10,500 | |||||||||||
Advisory Fees | $ 2,000 | |||||||||||||
Investor Relation Services Prepaid Amount | $ 4,000 | |||||||||||||
Share Price | $ / shares | $ 0.05 | $ 0.04 | $ 0.07 | |||||||||||
Payments of Stock Issuance Costs | $ 8,000 | |||||||||||||
Catalyst Global LLC [Member] | Second Tranche [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 75,000 | |||||||||||||
Catalyst Global LLC [Member] | Fourth Tranche [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 75,000 | |||||||||||||
Accredited Investors [Member] | 2015 Private Placement [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,000,000 | |||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 500,000 | |||||||||||||
Purchase Price Of Each Unit | $ / shares | $ 90,000 | |||||||||||||
Monarch Bay Securities [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Class Of Warrant Or Right Issued Or Issuable Percentage | 8.00% | |||||||||||||
Payment For Advisory Services | $ 20,000 | |||||||||||||
Stock or Unit Option Plan Expense | 20,000 | |||||||||||||
Marketable Securities, Equity Securities, Total | 5,000 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 113,000 | |||||||||||||
Restricted Stock | Catalyst Global LLC [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 450,000 | |||||||||||||
Non Qualified Stock Options [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 400,000 | |||||||||||||
Security Research Associates Inc [Member] | 2015 Private Placement [Member] | ||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||||||
Stock Issuance Cost | $ 35,000 |
WARRANT DERIVATIVE LIABILITY -
WARRANT DERIVATIVE LIABILITY - Fair Value Per Share and Aggregate Value (Detail) - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Accounting Policies [Line Items] | ||
Issued Warrants | 2,907,347 | |
Estimated Total Fair Value in Aggregate | $ 23,000 | $ 23,000 |
June 2012 Warrants [Member] | ||
Accounting Policies [Line Items] | ||
Issued Warrants | 562,551 | |
Estimated Fair Value Per Share | $ 0.008 | |
Estimated Total Fair Value in Aggregate | $ 4,000 | 4,000 |
July 2012 Warrants [Member] | ||
Accounting Policies [Line Items] | ||
Issued Warrants | 338,013 | |
Estimated Fair Value Per Share | $ 0.008 | |
Estimated Total Fair Value in Aggregate | $ 3,000 | 3,000 |
August 2012 Warrants [Member] | ||
Accounting Policies [Line Items] | ||
Issued Warrants | 120,719 | |
Estimated Fair Value Per Share | $ 0.009 | |
Estimated Total Fair Value in Aggregate | $ 1,000 | 1,000 |
October 2012 Warrants [Member] | ||
Accounting Policies [Line Items] | ||
Issued Warrants | 48,287 | |
Estimated Fair Value Per Share | $ 0.009 | |
Estimated Total Fair Value in Aggregate | $ 1,000 | 1,000 |
Advisory Agreement Warrants [Member] | ||
Accounting Policies [Line Items] | ||
Issued Warrants | 1,837,777 | |
Estimated Fair Value Per Share | $ 0.011 | |
Estimated Total Fair Value in Aggregate | $ 14,000 | $ 14,000 |
WARRANT DERIVATIVE LIABILITY 31
WARRANT DERIVATIVE LIABILITY - Additional Information (Detail) | Dec. 31, 2015shares |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,907,347 |
OTHER RELATED PARTY TRANSACTI32
OTHER RELATED PARTY TRANSACTIONS - Additional Information (Detail) - USD ($) | Oct. 02, 2014 | Apr. 07, 2014 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 |
Percentage Of Facility Costs on Monthly Basis | 10.00% | ||||
Related Party Deposit Liabilities | $ 136,000 | $ 136,000 | $ 136,000 | ||
Epic Boats Llc [Member] | |||||
Operating Leases, Income Statement, Lease Revenue | $ 4,000 | $ 8,000 | |||
Fully Depreciated Assets Sold | $ 3,000 | ||||
Partially Depreciated Assets Sold | $ 9,000 |
CONCENTRATIONS - Additional Inf
CONCENTRATIONS - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | ||||
Cash, FDIC Insured Amount | $ 63,000 | $ 63,000 | ||
Credit Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Maximum Amount of Secured By FDIC | $ 250,000 | $ 250,000 | ||
Two Suppliers [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 10.00% | |||
Percentage Of Purchases From Major Suppliers | 48.00% | 46.00% | ||
Three Suppliers [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 10.00% | |||
Percentage Of Purchases From Major Suppliers | 72.00% | 64.00% | ||
Two Customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 10.00% | 10.00% | ||
Customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 66.00% | 36.00% | 64.00% | 39.00% |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) - USD ($) | Feb. 11, 2016 | Oct. 07, 2015 | Jan. 31, 2016 |
Subsequent Event [Member] | Restricted Stock [Member] | Fifth Tranche [Member] | |||
Shares Issued, Price Per Share | $ 0 | ||
Catalyst Global [Member] | Subsequent Event [Member] | Fifth Tranche [Member] | |||
Shares Issued, Price Per Share | $ 0.04 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total | 75,000 | ||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures, Total | $ 3,000 | ||
Monarch Bay Securities [Member] | |||
Engagement Letter Arrangement Term | 6 months | ||
Esenjay Investment, LLC [Member] | Subsequent Event [Member] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 650,000 | ||
Proceeds from Lines of Credit | $ 275,000 |