Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 001-31543 | |
Entity Registrant Name | FLUX POWER HOLDINGS, INC. | |
Entity Central Index Key | 0001083743 | |
Entity Tax Identification Number | 86-0931332 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 2685 S. Melrose Drive | |
Entity Address, City or Town | Vista | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92081 | |
City Area Code | 877 | |
Local Phone Number | 505-3589 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | FLUX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,028,906 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Current assets: | ||
Cash | $ 306,000 | $ 485,000 |
Accounts receivable | 11,596,000 | 8,609,000 |
Inventories, net | 18,878,000 | 16,262,000 |
Other current assets | 1,308,000 | 1,261,000 |
Total current assets | 32,088,000 | 26,617,000 |
Right of use asset | 2,558,000 | 2,597,000 |
Property, plant and equipment, net | 1,758,000 | 1,578,000 |
Other assets | 42,000 | 89,000 |
Total assets | 36,446,000 | 30,881,000 |
Current liabilities: | ||
Accounts payable | 13,505,000 | 6,645,000 |
Accrued expenses | 2,228,000 | 2,209,000 |
Line of credit | 5,651,000 | 4,889,000 |
Deferred revenue | 347,000 | 163,000 |
Customer deposits | 10,000 | 175,000 |
Vehicle lease payable, current portion | 13,000 | |
Office lease payable, current portion | 523,000 | 504,000 |
Accrued interest | 2,000 | 1,000 |
Total current liabilities | 22,279,000 | 14,586,000 |
Office lease payable, less current portion | 2,222,000 | 2,361,000 |
Vehicle lease payable, less current portion | 55,000 | |
Total liabilities | 24,556,000 | 16,947,000 |
Stockholders’ equity: | ||
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; 15,998,336 and 15,996,658 shares issued and outstanding at September 30, 2022 and June 30, 2022, respectively | 16,000 | 16,000 |
Additional paid-in capital | 95,827,000 | 95,732,000 |
Accumulated deficit | (83,953,000) | (81,814,000) |
Total stockholders’ equity | 11,890,000 | 13,934,000 |
Total liabilities and stockholders’ equity | $ 36,446,000 | $ 30,881,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Jun. 30, 2022 |
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 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 15,998,336 | 15,996,658 |
Common stock, shares outstanding | 15,998,336 | 15,996,658 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 17,840,000 | $ 6,271,000 |
Cost of sales | 13,892,000 | 4,933,000 |
Gross profit | 3,948,000 | 1,338,000 |
Operating expenses: | ||
Selling and administrative | 4,536,000 | 3,498,000 |
Research and development | 1,223,000 | 1,967,000 |
Total operating expenses | 5,759,000 | 5,465,000 |
Operating loss | (1,811,000) | (4,127,000) |
Interest expense | (328,000) | (3,000) |
Net loss | $ (2,139,000) | $ (4,130,000) |
Net loss per share - basic and diluted | $ (0.13) | $ (0.30) |
Weighted average number of common shares outstanding - basic and diluted | 15,997,296 | 13,804,475 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Jun. 30, 2021 | $ 14,000 | $ 79,197,000 | $ (66,205,000) | $ 13,006,000 |
Beginning balance, shares at Jun. 30, 2021 | 13,652,164 | |||
Issuance of common stock – exercised options | ||||
Issuance of common stock - exercised options, shares | 1,696 | 3,400 | ||
Stock based compensation | 200,000 | $ 200,000 | ||
Net loss | (4,130,000) | (4,130,000) | ||
Issuance of common stock and warrants – registered direct offering, net of costs | $ 2,000 | 14,074,000 | 14,076,000 | |
Issuance of common stock and warrants - registered direct offering, net of costs, shares | 2,142,860 | |||
Issuance of common stock – public offering, net of costs | 1,602,000 | 1,602,000 | ||
Issuance of common stock - public offering, net of costs, shares | 190,782 | |||
Ending balance, value at Sep. 30, 2021 | $ 16,000 | 95,073,000 | (70,335,000) | 24,754,000 |
Ending balance, shares at Sep. 30, 2021 | 15,987,502 | |||
Beginning balance, value at Jun. 30, 2022 | $ 16,000 | 95,732,000 | (81,814,000) | 13,934,000 |
Beginning balance, shares at Jun. 30, 2022 | 15,996,658 | |||
Issuance of common stock – exercised options | ||||
Issuance of common stock - exercised options, shares | 1,678 | |||
Stock based compensation | 95,000 | $ 95,000 | ||
Net loss | (2,139,000) | (2,139,000) | ||
Ending balance, value at Sep. 30, 2022 | $ 16,000 | $ 95,827,000 | $ (83,953,000) | $ 11,890,000 |
Ending balance, shares at Sep. 30, 2022 | 15,998,336 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Cash flows from operating activities: | |||
Net loss | $ (2,139,000) | $ (4,130,000) | |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation | 172,000 | 123,000 | |
Stock-based compensation | 95,000 | 200,000 | |
Amortization of debt discount | 229,000 | ||
Noncash lease expense | 117,000 | 106,000 | |
Allowance for inventory reserve | 25,000 | 24,000 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,987,000) | 1,586,000 | |
Inventories | (2,641,000) | (3,357,000) | |
Other current assets | (229,000) | (567,000) | |
Accounts payable | 6,860,000 | 2,123,000 | |
Accrued expenses | 19,000 | (675,000) | |
Accrued interest | 1,000 | 1,000 | |
Office lease payable | (120,000) | (104,000) | |
Vehicle lease payable | (10,000) | ||
Deferred revenue | 184,000 | 103,000 | |
Customer deposits | (165,000) | 151,000 | |
Net cash used in operating activities | (589,000) | (4,416,000) | $ (23,900,000) |
Cash flows from investing activities | |||
Purchases of equipment | (352,000) | (238,000) | |
Net cash used in investing activities | (352,000) | (238,000) | |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock in registered direct offering, net of offering costs | 14,076,000 | ||
Proceeds from issuance of common stock in public offering, net of offering costs | 1,602,000 | ||
Proceeds from revolving line of credit | 12,900,000 | ||
Payments of revolving line of credit | (12,138,000) | ||
Net cash provided by financing activities | 762,000 | 15,678,000 | |
Net change in cash | (179,000) | 11,024,000 | |
Cash, beginning of period | 485,000 | 4,713,000 | 4,713,000 |
Cash, end of period | 306,000 | 15,737,000 | $ 485,000 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | |||
Initial right of use asset recognition | 78,000 | ||
Common stock issued for vested RSUs | 5,000 | ||
Supplemental cash flow information: | |||
Interest paid | $ 99,000 | $ 2,000 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS | NOTE 1 - NATURE OF BUSINESS Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) applicable to interim reports of companies filing as a smaller reporting company. These financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022 filed with the SEC on September 28, 2022. 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, 2022 has been derived from the audited balance sheet at June 30, 2022 contained in such Form 10-K. Nature of Business Flux Power Holdings, Inc. (“Flux”) was incorporated in 2008 in the State of Nevada, and 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 a portfolio of advanced lithium-ion energy storage solutions for electrification of a range of industrial commercial sectors which include material handling, airport ground support equipment (“GSE”), and stationary energy storage. We believe our mobile and stationary energy storage solutions provide customers with a reliable, high performing, cost effective, and more environmentally friendly alternative as compared to traditional lead acid and propane-based solutions. Our modular and scalable design allows different configurations of lithium-ion battery packs to be paired with our proprietary wireless battery management system to provide the level of energy storage required and “state of the art” real time monitoring of pack performance. We believe that the increasing demand for lithium-ion battery packs and more environmentally friendly energy storage solutions in the material handling sector should continue to drive our revenue growth. 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022. There have been no material changes in these policies or their application. 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. 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 September 30, 2022 and 2021, basic and diluted weighted-average common shares outstanding were 15,997,296 13,804,475 2,144,745 1,938,461 At September 30, 2022 and 2021 potentially dilutive common shares outstanding that were excluded from diluted weighted-average common shares outstanding were as follows: SCHEDULE OF DILUTIVE COMMON SHARES OUTSTANDING EXCLUDED FROM DILUTIVE WEIGHTED AVERAGE COMMON SHARES OUTSTANDING September 30, 2022 September 30, 2021 Stock options 499,933 525,179 RSUs 272,898 126,969 Warrants 1,371,914 1,286,313 Total 2,144,745 1,938,461 Liquidity Considerations The accompanying financial statements and notes have been prepared assuming the Company will continue as a going concern. For the quarter ended September 30, 2022 and the year ended June 30, 2022, the Company generated negative cash flows from operations of $ 589,000 23.9 84.0 81.8 Historically the Company has not generated sufficient cash to fund its operations. Based on the Company’s ability to execute its proposed plans, to generate revenue from its existing backlog, management anticipates increased revenues as well as improvements in its gross margin over the next twelve (12) months. The Company has received new orders in the twelve-month period ended September 30, 2022, of approximately $ 61.6 As of November 4, 2022, we had cash balance of $ 248,000 1.4 4.0 5.7 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 3 – ACCRUED EXPENSES Accrued expenses consist of the following: SCHEDULE OF ACCRUED EXPENSES September 30, 2022 June 30, 2022 Payroll and bonus accrual $ 825,000 $ 767,000 PTO accrual 354,000 430,000 Warranty liability 1,049,000 1,012,000 Total Accrued expenses $ 2,228,000 $ 2,209,000 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 4 – NOTES PAYABLE Revolving Line of Credit On November 9, 2020, the Company entered into a Loan and Security Agreement (“Loan Agreement”) with Silicon Valley Bank (“SVB”). On October 29, 2021, the Company entered into a First Amendment to Loan and Security Agreement (“First Amendment”) with SVB which amended certain terms of the Loan Agreement including, but not limited to, increasing the amount of the revolving line of credit from $ 4.0 6.0 November 7, 2022 6.0 (i) Prime Rate plus two and a half percent (2.50%), or (ii) five and three-quarters percent (5.75%). The Company paid a non-refundable commitment fee of $ 15,000 In addition, under the Second Amendment, the interest rate terms for the outstanding principal under the Revolving LOC were amended to accrue interest at a floating per annum rate equal to the greater of either (A) Prime Rate plus three and one-half of one percent (3.50%) or (B) seven and one-half of one percent (7.50%). Interest payments are due monthly on the last day of the month. In addition, the Company is required to pay a quarterly unused facility fee equal to one-quarter of one percent (0.25%) per annum of the average daily unused portion of the $8.0 million commitment under the Revolving LOC 5,000.00 In connection with the Second Amendment, the Company issued a twelve-year 40,806 2.23 Amounts outstanding under the Revolving LOC are secured by substantially all tangible and intangible assets of the Company (including, without limitation, intellectual property) pursuant to the terms of the Amended Loan Agreement and the Intellectual Property Security Agreement dated as of October 29, 2021. During the quarter ended September 30, 2022, the Company had multiple LOC drawdowns totaling $ 12.9 12.1 5,651,000 2,349,000 |
RELATED PARTY DEBT AGREEMENTS
RELATED PARTY DEBT AGREEMENTS | 3 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY DEBT AGREEMENTS | NOTE 5 - RELATED PARTY DEBT AGREEMENTS As of September 30, 2022 and June 30, 2022, the Company had no related party debt balance outstanding. Below are the activities for the Company’s related party debt agreements that existed during the periods ended September 30, 2022 and 2021 covered by the accompanying unaudited condensed consolidated financial statements. Subordinated Line of Credit Facility On May 11, 2022, the Company entered into a Credit Facility Agreement (the “Subordinated LOC”) with Cleveland Capital, L.P., a Delaware limited partnership (“Cleveland”), Herndon Plant Oakley, Ltd., (“HPO”), and other lenders (together with Cleveland and HPO, the “Lenders”). The Subordinated LOC provides the Company with a short-term line of credit (the “LOC”) not less than $ 3,000,000 5,000,000 4,000,000 Pursuant to the terms of the Subordinated LOC, each Lender severally agrees to make loans (each such loan, an “Advance”) up to such Lender’s Commitment Amount to the Company from time to time, until December 31, 2022 (the “Due Date”). The Company may, from time to time, prior to the Due Date, draw down, repay, and re-borrow on the Note, by giving notice to the Lenders of the amount to be requested to be drawn down. Each Note bears an interest rate of 15.0 2 The Subordinated LOC includes customary representations, warranties and covenants by the Company and the Lenders. The Company has also agreed to pay the legal fees of Cleveland’s counsel in an amount up to $ 10,000 In connection with entry into the Subordinated LOC, the Company paid to each Lender a one-time committee fee in cash equal to 3.5 128,000 2.53 (the number of warrants issued to each Lender is equal to the product of (i) 160,000 shares of common stock multiplied by (ii) the ratio represented by each Lender’s Commitment Amount divided by the $5,000,000) Pursuant to a selling agreement, dated as of May 11, 2022, the Company retained HPO as its placement agent in connection with the Subordinated LOC. As compensation for services rendered in conjunction with the Subordinated LOC, the Company paid HPO a finder fee equal to 3 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 6 - STOCKHOLDERS’ EQUITY At-The-Market (“ATM”) Offering On December 21, 2020 the Company entered into a Sales Agreement (the “Sales Agreement”) with H.C. Wainwright & Co., LLC (“HCW”) to sell shares of its common stock, par value $ 0.001 The Company agreed to pay HCW a commission in an amount equal to 3.0 In addition, the Company agreed to reimburse HCW for certain legal and other expenses incurred up to a maximum of $50,000 to establish the ATM Offering, and $2,500 per quarter thereafter to maintain such program under the Sales Agreement On May 27, 2021, the Company filed Amendment No. 1 (the “Amendment”) to the prospectus supplement dated December 21, 2020 (the “Prospectus Supplement”) to increase the size of the ATM Offering from an aggregate offering price of up to $ 10 20 From December 21, 2020 through September 30, 2022, the Company sold an aggregate of 1,169,564 12.24 14.3 13.7 The Shares was registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-249521), declared effective by the Securities and Exchange Commission (the “Commission”) on October 26, 2020, and the Prospectus. Sales of the Shares, if any, may be made by any method permitted by law deemed to be an “at-the-market offering” as defined in Rule 415(a)(4) of the Securities Act. The Company or the HCW may, upon written notice to the other party in accordance with the terms of the Sales Agreement, suspend offers and sales of the Shares. The Company and HCW each have the right, in its sole discretion, to terminate the Sales Agreement at any time upon prior written notice pursuant to the terms and subject to the conditions set forth in the Sales Agreement. Registered Direct Offering On September 27, 2021, the Company closed a registered direct offering, priced at-the-market under Nasdaq rules (“RDO”) for the sale of 2,142,860 1,071,430 7.00 15.0 1.0 7.00 The securities sold in the RDO were sold pursuant to a “shelf” registration statement on Form S-3 (File No. 333-249521), including a base prospectus, previously filed with the Securities and Exchange Commission (the “SEC”) on October 16, 2020 and declared effective by the SEC on October 26, 2020. The registered direct offering of the securities was made by means of a prospectus supplement dated September 22, 2021 and filed with the SEC, that forms a part of the effective registration statement. Warrants In August 2020 and in conjunction with the Company’s public offering, the Company issued five-year 185,955 4.80 513,000 In connection with the Company’s RDO, in September 2021 the Company issued five-year 1,071,430 7.00 3,874,000 4.99 In May 2022 and in conjunction with entry into a credit facility with Cleveland Capital, L.P. (“Cleveland”), Herndon Plant Oakley, Ltd. (“HPO”), and other lenders (together with Cleveland and HPO, the “Lenders”), the Company issued five-year 128,000 2.53 173,000 In June 2022 and in conjunction with the entry into the Second Amendment to Loan and Security Agreement with Silicon Valley Bank (“SVB”), the Company issued twelve-year 40,806 2.23 80,000 Warrant detail for the three months ended September 30, 2022 is reflected below: SCHEDULE OF STOCK WARRANT ACTIVITY Number of Warrants Weighted Average Exercise Price Per Warrant Weighted Average Remaining Contract Term (# years) Warrants outstanding and exercisable at June 30, 2022 1,455,119 $ 6.10 Warrants issued 1,071,430 $ 7.00 Warrants cancelled (83,205 ) $ 4.00 Warrants outstanding and exercisable at September 30, 2022 1,371,914 $ 6.23 4.18 Warrant detail for the three months ended September 30, 2021 is reflected below: Number of Warrants Weighted Average Exercise Price Per Warrant Weighted Average Remaining Contract Term (# years) Warrants outstanding and exercisable at June 30, 2021 214,883 $ 4.49 Warrants issued 1,071,430 $ 7.00 Warrants outstanding at September 30, 2021 1,286,313 6.58 4.61 Warrants exercisable at September 30, 2021 968,670 $ 6.44 4.48 Stock Options In connection with the reverse acquisition of Flux Power, Inc in 2012, the Company assumed the 2010 Plan. As of September 30, 2022, there were 21,944 On February 17, 2015 the Company’s stockholders approved the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan offers certain employees, directors, and consultants the opportunity to acquire the Company’s common stock subject to vesting requirements, and serves to encourage such persons to remain employed by the Company and to attract new employees. The 2014 Plan allows for the award of the Company’s common stock and options, up to 1,000,000 203,870 On April 29, 2021, the Company’s stockholders approved the 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan authorizes the issuance of awards for up to 2,000,000 Activity in the Company’s stock options during the three months ended September 30, 2022 and related balances outstanding as of that date are reflected below: SCHEDULE OF STOCK OPTIONS ACTIVITY Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2022 503,433 $ 11.03 Granted - $ - Exercised - $ - Forfeited and cancelled (3,500 ) $ 13.60 Outstanding and exercisable at September 30, 2022 499,933 $ 11.02 4.31 Activity in the Company’s stock options during the three months ended September 30, 2021 and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2021 531,205 $ 11.02 Granted - $ - Exercised (3,400 ) $ 4.65 Forfeited and cancelled (2,626 ) $ 13.60 Outstanding at September 30, 2021 525,179 11.05 6.32 Exercisable at September 30, 2021 499,533 $ 10.97 6.25 Restricted Stock Units On November 5, 2020, the Company’s Board of Directors approved an amendment to the 2014 Plan, to allow grants of Restricted Stock Units (“RSUs”). Subject to vesting requirements set forth in the RSU Award Agreement, one share of common stock is issuable for one vested RSU. On November 5, 2020, the Board of Directors authorized the following RSUs to be granted under the amended 2014 Plan: (i) a total of 43,527 91,338 45,652 45,686 18,312 97,828 48,914 48,914 81,786 76,206 Activity in RSUs during the three months ended September 30, 2022 and related balances outstanding as of that date are reflected below: SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY Number of Shares Weighted Average Grant date Fair Value Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2022 304,221 $ 6.06 Granted 5,034 $ 2.70 Vested and settled (1,678 ) $ 2.70 Forfeited and cancelled (34,679 ) $ 7.06 Outstanding at September 30, 2022 272,898 $ 5.89 1.53 Activity in RSUs during the three months ended September 30, 2021 and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Grant date Fair Value Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2021 131,652 $ 9.25 Granted - $ - Forfeited and cancelled (4,683 ) $ 8.88 Outstanding at September 30, 2021 126,969 $ 9.26 2.59 Stock-based Compensation Stock-based compensation expense for the three months ended September 30, 2022 and 2021 represents the estimated fair value of stock options and RSUs at the time of grant amortized under the straight-line method over the expected vesting period and reduced for estimated forfeitures of options and RSUs. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from original estimates. At September 30, 2022, the aggregate intrinsic value of exercisable stock options was approximately $ 0 The following table summarizes stock-based compensation expense for employee and non-employee stock option and RSU grants: SCHEDULE OF STOCK-BASED COMPENSATION EXPENSES 2022 2021 Three Months Ended 2022 2021 Research and development $ 26,000 $ 36,000 Selling and administrative 69,000 164,000 Total stock-based compensation expense $ 95,000 $ 200,000 At September 30, 2022, the unamortized stock-based compensation expense related to outstanding RSUs was approximately $ 690,000 1.53 |
CONCENTRATIONS
CONCENTRATIONS | 3 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 7 - CONCENTRATIONS Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and unsecured trade accounts receivable. The Company maintains cash balances in non-interest bearing bank deposit accounts at a California commercial bank. The Company’s cash balance at this institution is secured by the Federal Deposit Insurance Corporation up to $ 250,000 306,000 485,000 Customer Concentrations During the three months ended September 30, 2022, the Company had four (4) major customers that each represented more than 10% of revenues on an individual basis, and together represented approximately $ 13,021,000 73 During the three months ended September 30, 2021, the Company had four (4) major customers that each represented more than 10% of revenues on an individual basis, and together represented approximately $ 3,605,000 57 Suppliers/Vendor Concentrations The Company obtains several components and supplies included in its products from a group of suppliers. During the three months ended September 30, 2022, the Company had two (2) suppliers who accounted for more than 10% of total purchases on an individual basis, and together represented approximately $ 5,781,000 36 During the three months ended September 30, 2021, the Company had two (2) suppliers who accounted for more than 10% of total purchases on an individual basis, and together represented approximately $ 2,179,000 24 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 - COMMITMENTS AND CONTINGENCIES From time to time, the Company may become 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 the Company’s business. The Company is not aware of any material legal proceedings currently pending or expected 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 The Lease has an initial term of seven years and four months and commenced on or about June 28, 2019 The lease contains an option to extend the term for two periods of 24 months each, and the right of first refusal to lease an additional approximate 15,300 square feet 42,400 3 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 1,230 17,539 The lease for the additional space commenced 30 days following the occupancy date of the additional space and will terminate concurrently with the term of the original lease, which expires on November 20, 2026 0.93 8,300 On September 2, 2022 the Company leased a vehicle to be used for corporate transportation activities. The Lease has a term of sixty ( 60 1,100 Total lease expense was approximately $ 223,000 214,000 The Future Minimum Lease Payments as of September 30, 2022 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year Ending June 30, 2023 (remaining nine months) $ 588,000 2024 804,000 2025 828,000 2026 853,000 2027 372,000 Thereafter 20,000 Total Future Minimum Lease Payments 3,465,000 Less: discount (652,000 ) Total lease liability $ 2,813,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 - SUBSEQUENT EVENTS Amendment to Revolving Credit Facility with Silicon Valley Bank On November 7, 2022, we entered into a Third Amendment to Loan and Security Agreement (“Third Amendment”) with Silicon Valley Bank (“SVB”), which amended certain terms of the Loan and Security Agreement dated November 9, 2020, as amended on October 29, 2021, and as further amended on June 23, 2022 (together with the Third Amendment, the “Agreement”), including but not limited to, (i) extending the maturity date from November 7, 2022 to May 7, 2023 (the “Extension Period”), (ii) amending the financial covenants of the Company to cover the Extension Period, and (iii) amending the definition of Permitted Liens (as defined in the Third Amendment). Pursuant to the Third Amendment, the Company paid SVB a non-refundable amendment fee of $ 12,500 We have used the SVB Credit Facility from-time-to-time. As of September 30, 2022, the outstanding balance of the revolving line of credit was approximately $ 5.7 2.3 2022 Bonus Payout On October 31, 2022, the Compensation Committee and the Board approved the following cash bonuses to the following executive officers, whereby the final cash bonus payout was determined based on a payout percentage of the executive’s previous target cash bonus for fiscal year 2022: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL Name Position Target Cash Bonus Payout Percentage Cash Bonus Payout Ronald F. Dutt Chief Executive Officer $ 137,500 40 % $ 55,055.00 Charles Scheiwe Chief Financial Officer $ 71,820 40 % $ 28,756.73 2023 Bonus Plan On October 31, 2022, the Compensation Committee also approved the bonus pool and performance criteria for the Annual Bonus Plan for the fiscal year 2023 (the “2023 Bonus”). For the Company’s fiscal year 2023, the performance goals applicable to a bonus are based on the Company achieving certain targets based on the Company’s annual revenue, Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and stock-based compensation), functional goals (the “Financial Targets”), in addition to individual performance objectives and additional bonus amounts if the Company’s financial results exceeds certain thresholds of the Financial Targets. The Compensation Committee approved the target cash bonuses under the 2023 Bonus based on the base salary for fiscal year 2023 for the following executive officers: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL Name Position Base Salary Bonus Percentage of Base Salary Total Target Payout Maximum Payout (1) Ronald F. Dutt Chief Executive Officer $ 300,000 (2) 75 % $ 225,000 $ 270,000 Charles Scheiwe Chief Financial Officer $ 205,200 35 % $ 71,820 $ 86,184 (1) Subject to a bonus cap for achieving above set revenue target and a payout cap for achieving 10% positive Adjusted EBITDA. (2) To be effective during the second fiscal quarter of 2023. Stock Option Grant On October 31, 2022 (the “Grant Date”), the Compensation Committee approved the grant of incentive stock options (the “Options”) under the Company’s 2014 Equity Incentive Plan (the “2014 Plan”) and the Company’s 2021 Equity Incentive Plan (the “2021 Plan”) to certain employees of the Company or its subsidiary, Flux Power, Inc. The Options are subject to the terms and conditions provided in the form of Incentive Stock Option Agreement under the 2014 Plan (the “2014 Option Agreement”) or the form of Incentive Stock Option Agreement under the 2021 Plan (the “2021 Option Agreement”). The Options have an exercise price of $ 3.43 The following executive officers of the Company were granted Options under the 2021 Plan in such number and vesting schedule set forth as follows: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION Name Position Options* Vesting Schedule Ronald F. Dutt Chief Executive Officer 80,175 Four (4) equal annual installments commencing one year after the Grant Date Charles Scheiwe Chief Financial Officer 41,878 Four (4) equal annual installments commencing one year after the Grant Date * Subject to $ 100,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and 2021, basic and diluted weighted-average common shares outstanding were 15,997,296 13,804,475 2,144,745 1,938,461 At September 30, 2022 and 2021 potentially dilutive common shares outstanding that were excluded from diluted weighted-average common shares outstanding were as follows: SCHEDULE OF DILUTIVE COMMON SHARES OUTSTANDING EXCLUDED FROM DILUTIVE WEIGHTED AVERAGE COMMON SHARES OUTSTANDING September 30, 2022 September 30, 2021 Stock options 499,933 525,179 RSUs 272,898 126,969 Warrants 1,371,914 1,286,313 Total 2,144,745 1,938,461 |
Liquidity Considerations | Liquidity Considerations The accompanying financial statements and notes have been prepared assuming the Company will continue as a going concern. For the quarter ended September 30, 2022 and the year ended June 30, 2022, the Company generated negative cash flows from operations of $ 589,000 23.9 84.0 81.8 Historically the Company has not generated sufficient cash to fund its operations. Based on the Company’s ability to execute its proposed plans, to generate revenue from its existing backlog, management anticipates increased revenues as well as improvements in its gross margin over the next twelve (12) months. The Company has received new orders in the twelve-month period ended September 30, 2022, of approximately $ 61.6 As of November 4, 2022, we had cash balance of $ 248,000 1.4 4.0 5.7 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF DILUTIVE COMMON SHARES OUTSTANDING EXCLUDED FROM DILUTIVE WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | At September 30, 2022 and 2021 potentially dilutive common shares outstanding that were excluded from diluted weighted-average common shares outstanding were as follows: SCHEDULE OF DILUTIVE COMMON SHARES OUTSTANDING EXCLUDED FROM DILUTIVE WEIGHTED AVERAGE COMMON SHARES OUTSTANDING September 30, 2022 September 30, 2021 Stock options 499,933 525,179 RSUs 272,898 126,969 Warrants 1,371,914 1,286,313 Total 2,144,745 1,938,461 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES | Accrued expenses consist of the following: SCHEDULE OF ACCRUED EXPENSES September 30, 2022 June 30, 2022 Payroll and bonus accrual $ 825,000 $ 767,000 PTO accrual 354,000 430,000 Warranty liability 1,049,000 1,012,000 Total Accrued expenses $ 2,228,000 $ 2,209,000 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
SCHEDULE OF STOCK WARRANT ACTIVITY | Warrant detail for the three months ended September 30, 2022 is reflected below: SCHEDULE OF STOCK WARRANT ACTIVITY Number of Warrants Weighted Average Exercise Price Per Warrant Weighted Average Remaining Contract Term (# years) Warrants outstanding and exercisable at June 30, 2022 1,455,119 $ 6.10 Warrants issued 1,071,430 $ 7.00 Warrants cancelled (83,205 ) $ 4.00 Warrants outstanding and exercisable at September 30, 2022 1,371,914 $ 6.23 4.18 Warrant detail for the three months ended September 30, 2021 is reflected below: Number of Warrants Weighted Average Exercise Price Per Warrant Weighted Average Remaining Contract Term (# years) Warrants outstanding and exercisable at June 30, 2021 214,883 $ 4.49 Warrants issued 1,071,430 $ 7.00 Warrants outstanding at September 30, 2021 1,286,313 6.58 4.61 Warrants exercisable at September 30, 2021 968,670 $ 6.44 4.48 |
SCHEDULE OF STOCK OPTIONS ACTIVITY | Activity in the Company’s stock options during the three months ended September 30, 2022 and related balances outstanding as of that date are reflected below: SCHEDULE OF STOCK OPTIONS ACTIVITY Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2022 503,433 $ 11.03 Granted - $ - Exercised - $ - Forfeited and cancelled (3,500 ) $ 13.60 Outstanding and exercisable at September 30, 2022 499,933 $ 11.02 4.31 Activity in the Company’s stock options during the three months ended September 30, 2021 and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2021 531,205 $ 11.02 Granted - $ - Exercised (3,400 ) $ 4.65 Forfeited and cancelled (2,626 ) $ 13.60 Outstanding at September 30, 2021 525,179 11.05 6.32 Exercisable at September 30, 2021 499,533 $ 10.97 6.25 |
SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY | Activity in RSUs during the three months ended September 30, 2022 and related balances outstanding as of that date are reflected below: SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY Number of Shares Weighted Average Grant date Fair Value Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2022 304,221 $ 6.06 Granted 5,034 $ 2.70 Vested and settled (1,678 ) $ 2.70 Forfeited and cancelled (34,679 ) $ 7.06 Outstanding at September 30, 2022 272,898 $ 5.89 1.53 Activity in RSUs during the three months ended September 30, 2021 and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Grant date Fair Value Weighted Average Remaining Contract Term (# years) Outstanding at June 30, 2021 131,652 $ 9.25 Granted - $ - Forfeited and cancelled (4,683 ) $ 8.88 Outstanding at September 30, 2021 126,969 $ 9.26 2.59 |
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSES | The following table summarizes stock-based compensation expense for employee and non-employee stock option and RSU grants: SCHEDULE OF STOCK-BASED COMPENSATION EXPENSES 2022 2021 Three Months Ended 2022 2021 Research and development $ 26,000 $ 36,000 Selling and administrative 69,000 164,000 Total stock-based compensation expense $ 95,000 $ 200,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS | The Future Minimum Lease Payments as of September 30, 2022 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year Ending June 30, 2023 (remaining nine months) $ 588,000 2024 804,000 2025 828,000 2026 853,000 2027 372,000 Thereafter 20,000 Total Future Minimum Lease Payments 3,465,000 Less: discount (652,000 ) Total lease liability $ 2,813,000 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL | On October 31, 2022, the Compensation Committee and the Board approved the following cash bonuses to the following executive officers, whereby the final cash bonus payout was determined based on a payout percentage of the executive’s previous target cash bonus for fiscal year 2022: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL Name Position Target Cash Bonus Payout Percentage Cash Bonus Payout Ronald F. Dutt Chief Executive Officer $ 137,500 40 % $ 55,055.00 Charles Scheiwe Chief Financial Officer $ 71,820 40 % $ 28,756.73 |
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION | The following executive officers of the Company were granted Options under the 2021 Plan in such number and vesting schedule set forth as follows: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION Name Position Options* Vesting Schedule Ronald F. Dutt Chief Executive Officer 80,175 Four (4) equal annual installments commencing one year after the Grant Date Charles Scheiwe Chief Financial Officer 41,878 Four (4) equal annual installments commencing one year after the Grant Date * Subject to $ 100,000 |
2023 Bonus Plan [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL | The Compensation Committee approved the target cash bonuses under the 2023 Bonus based on the base salary for fiscal year 2023 for the following executive officers: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL Name Position Base Salary Bonus Percentage of Base Salary Total Target Payout Maximum Payout (1) Ronald F. Dutt Chief Executive Officer $ 300,000 (2) 75 % $ 225,000 $ 270,000 Charles Scheiwe Chief Financial Officer $ 205,200 35 % $ 71,820 $ 86,184 (1) Subject to a bonus cap for achieving above set revenue target and a payout cap for achieving 10% positive Adjusted EBITDA. (2) To be effective during the second fiscal quarter of 2023. |
SCHEDULE OF DILUTIVE COMMON SHA
SCHEDULE OF DILUTIVE COMMON SHARES OUTSTANDING EXCLUDED FROM DILUTIVE WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (Details) - shares | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 2,144,745 | 1,938,461 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 499,933 | 525,179 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 272,898 | 126,969 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 1,371,914 | 1,286,313 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Nov. 04, 2022 | |
Subsequent Event [Line Items] | ||||
Weighted average number of shares outstanding, basic | 15,997,296 | 13,804,475 | ||
Weighted-average common shares outstanding excluded from diluted | 2,144,745 | 1,938,461 | ||
Cash flow from operations | $ 589,000 | $ 4,416,000 | $ 23,900,000 | |
Accumulated deficit | 83,953,000 | $ 81,814,000 | ||
Proceeds from customers | $ 61,600,000 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash balance | $ 248,000 | |||
Subsequent Event [Member] | ATM Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit available for trade | 5,700,000 | |||
Subsequent Event [Member] | SVB Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash balance | 1,400,000 | |||
Line of credit future draws | $ 4,000,000 |
SCHEDULE OF ACCRUED EXPENSES (D
SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Payables and Accruals [Abstract] | ||
Payroll and bonus accrual | $ 825,000 | $ 767,000 |
PTO accrual | 354,000 | 430,000 |
Warranty liability | 1,049,000 | 1,012,000 |
Total Accrued expenses | $ 2,228,000 | $ 2,209,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - Silicon Valley Bank [Member] - Revolving Credit Facility [Member] - USD ($) | 3 Months Ended | |
Oct. 29, 2021 | Sep. 30, 2022 | |
Line of Credit Facility [Line Items] | ||
Line of credit facility, drawdowns | $ 12,900,000 | |
Line of credit facility, periodic payment | 12,100,000 | |
Line of credit | 5,651,000 | |
Line of credit facility, remaining borrowing capacity | $ 2,349,000 | |
First Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving line of credit | $ 6,000,000 | |
Line of credit maturity date | Nov. 07, 2022 | |
Line of credit interest rate description | (i) Prime Rate plus two and a half percent (2.50%), or (ii) five and three-quarters percent (5.75%). The Company paid a non-refundable commitment fee of $15,000 upon execution of the Loan Agreement and an additional non-refundable commitment fee of $22,500 in connection with the First Amendment. On June 23, 2022, the Company entered into a Second Amendment to Loan and Security Agreement (“Second Amendment” and together with the Loan Agreement and First Amendment the “Amended Loan Agreement”) with Silicon Valley Bank (“SVB”), which amended certain terms of the Loan and Security Agreement dated November 9, 2020, as amended on October 29, 2021, including but not limited to, (i) to increase the amount of the revolving line of credit to $8.0 million, (ii) to change the financial covenants of the Company from tangible net worth of the Company to adjusted EBITDA (as defined in the Second Amendment) on a trailing six (6) month basis and liquidity ratio certified as of the end of each month pursuant to the calculations set forth therein, and (iii) to allow for the assignment and transfer by SVB of all of its obligations, rights and benefits under the Agreement and Loan Documents (as defined in the Agreement and except for the Warrants) | |
Non-refundable commitment fee | $ 15,000 | |
First Amendment [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving line of credit | 4,000,000 | |
First Amendment [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving line of credit | $ 6,000,000 | |
Second Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit interest rate description | (A) Prime Rate plus three and one-half of one percent (3.50%) or (B) seven and one-half of one percent (7.50%). Interest payments are due monthly on the last day of the month. In addition, the Company is required to pay a quarterly unused facility fee equal to one-quarter of one percent (0.25%) per annum of the average daily unused portion of the $8.0 million commitment under the Revolving LOC | |
Non-refundable commitment fee | $ 5,000 | |
Warrant term | 12 years | |
Purchase of common stock into warrant shares | 40,806 | |
Warrant exercise price per share | $ 2.23 |
RELATED PARTY DEBT AGREEMENTS (
RELATED PARTY DEBT AGREEMENTS (Details Narrative) - USD ($) | 3 Months Ended | ||
May 11, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Line of credit | $ 5,651,000 | $ 4,889,000 | |
Credit Facility Agreement [Member] | Lenders [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Commitment fee | $ 4,000,000 | ||
Line of credit interest rate | 15% | ||
Commitment fee percentage | 2% | ||
Commitment rate | 3.50% | ||
Purchase of common stock into warrants shares | 128,000 | ||
Warrant exercise price | $ 2.53 | ||
Warrant description | (the number of warrants issued to each Lender is equal to the product of (i) 160,000 shares of common stock multiplied by (ii) the ratio represented by each Lender’s Commitment Amount divided by the $5,000,000) | ||
Credit Facility Agreement [Member] | Lenders [Member] | Placement Agent [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Commitment fee percentage | 3% | ||
Credit Facility Agreement [Member] | Lenders [Member] | Minimum [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Line of credit | $ 3,000,000 | ||
Credit Facility Agreement [Member] | Lenders [Member] | Maximum [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Line of credit | 5,000,000 | ||
Legal fees | $ 10,000 |
SCHEDULE OF STOCK WARRANT ACTIV
SCHEDULE OF STOCK WARRANT ACTIVITY (Details) - Warrant [Member] - $ / shares | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of warrants, outstanding and exercisable, beginning balance | 1,455,119 | 214,883 |
Weighted average exercise price, outstanding, beginning balance | $ 6.10 | $ 4.49 |
Number of warrants, warrants issued | 1,071,430 | |
Weighted average exercise price, warrants issued | $ 7 | |
Number of warrants, warrants cancelled | (83,205) | |
Weighted average exercise price per warrant, warrants cancelled | $ 4 | |
Number of warrants, outstanding, ending balance | 1,371,914 | 1,286,313 |
Weighted average exercise price per warrant, outstanding and exercisable, ending balance | $ 6.23 | $ 6.58 |
Weighted average remaining contract term warrants outstanding | 4 years 2 months 4 days | 4 years 7 months 9 days |
Number of warrants, exercisable, ending balance | 968,670 | |
Weighted average exercise price per warrant, exercisable, ending balance | $ 6.44 | |
Weighted average remaining contract term warrants exercisable | 4 years 5 months 23 days |
SCHEDULE OF STOCK OPTIONS ACTIV
SCHEDULE OF STOCK OPTIONS ACTIVITY (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
Number of shares, outstanding, beginning balance | 503,433 | 531,205 |
Weighted average exercise price, outstanding, beginning balance | $ 11.03 | $ 11.02 |
Number of shares, exercised | ||
Weighted average exercise price, granted | ||
Number of shares, exercised | (3,400) | |
Weighted average exercise price, exercised | $ 4.65 | |
Number of shares, forfeited and cancelled | (3,500) | (2,626) |
Weighted average exercise price, forfeited and cancelled | $ 13.60 | $ 13.60 |
Number of shares, outstanding, ending balance | 499,933 | 525,179 |
Weighted average exercise price, outstanding, ending balance | $ 11.02 | $ 11.05 |
Weighted average remaining contract term stock options outstanding | 4 years 3 months 21 days | 6 years 3 months 25 days |
Number of shares, exercisable, ending balance | 499,533 | |
Weighted average exercise price, exercisable, ending balance | $ 10.97 | |
Weighted average remaining contract term stock options exercisable | 6 years 3 months |
SCHEDULE OF RESTRICTED STOCK UN
SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
Number of shares, outstanding, beginning balance | 304,221 | 131,652 |
Weighted average grant date fair value, outstanding, beginning balance | $ 6.06 | $ 9.25 |
Number of shares, granted | 5,034 | |
Weighted average drant date fair value, granted | $ 2.70 | |
Number of shares, Vested and settled | (1,678) | |
Weighted average grant date fair value, Vested and settled | $ 2.70 | |
Number of shares, forfeited and cancelled | (34,679) | (4,683) |
Weighted average grant date fair value, forfeited and cancelled | $ 7.06 | $ 8.88 |
Number of shares, outstanding, ending balance | 272,898 | 126,969 |
Weighted average grant date fair value, outstanding, ending balance | $ 5.89 | $ 9.26 |
Weighted average remaining contract term restricted stock outstanding | 1 year 6 months 10 days | 2 years 7 months 2 days |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSES (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Total stock-based compensation expense | $ 95,000 | $ 200,000 |
Research and Development Expense [Member] | ||
Total stock-based compensation expense | 26,000 | 36,000 |
Selling, General and Administrative Expenses [Member] | ||
Total stock-based compensation expense | $ 69,000 | $ 164,000 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 21 Months Ended | |||||||||||||
Aug. 26, 2022 | Apr. 29, 2022 | Oct. 29, 2021 | Sep. 27, 2021 | May 27, 2021 | Apr. 29, 2021 | Dec. 21, 2020 | Nov. 05, 2020 | Jun. 30, 2022 | May 31, 2022 | Sep. 30, 2021 | Aug. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Feb. 17, 2015 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Proceeds from issuance of offering | $ 1,602,000 | |||||||||||||||
Aggregate intrinsic value of exercisable stock options | 0 | $ 0 | ||||||||||||||
Stock based compensation expenses related to RSUs outstanding not yet recognition | $ 690,000 | $ 690,000 | ||||||||||||||
Stock based compensation expenses related to RSUs outstanding not yet recognition period | 1 year 6 months 10 days | |||||||||||||||
2010 Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Common stock available for future grants | 21,944 | 21,944 | ||||||||||||||
2014 Equity Incentive Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Common stock available for future grants | 203,870 | 203,870 | ||||||||||||||
2021 Equity Incentive Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of authorized issuance of common stock options | 2,000,000 | |||||||||||||||
2014 Plan [Member] | Performance-based RSU [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of restricted stock shares | 48,914 | 45,652 | ||||||||||||||
2014 Plan [Member] | Time-based RSU [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of restricted stock shares | 45,686 | |||||||||||||||
2014 Plan [Member] | Time-based RSU [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of restricted stock shares | 76,206 | 76,206 | 48,914 | 18,312 | ||||||||||||
Silicon Valley Bank [Member] | Second Amendment to Loan and Security Agreement [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Warrant to purchase common stock shares | 40,806 | |||||||||||||||
Warrant exercise price | $ 2.23 | |||||||||||||||
Warrant term | 12 years | |||||||||||||||
Fair Value adjustment of warrants | $ 80,000 | |||||||||||||||
Investors [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Warrant to purchase common stock shares | 1,071,430 | 1,071,430 | ||||||||||||||
Warrant exercise price | $ 7 | $ 7 | ||||||||||||||
Warrant term | 5 years | 5 years | ||||||||||||||
Fair Value adjustment of warrants | $ 3,874,000 | |||||||||||||||
Beneficial ownership percentage | 4.99% | 4.99% | ||||||||||||||
Underwriters [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Warrant to purchase common stock shares | 185,955 | |||||||||||||||
Warrant exercise price | $ 4.80 | |||||||||||||||
Warrant term | 5 years | |||||||||||||||
Fair Value adjustment of warrants | $ 513,000 | |||||||||||||||
Lenders [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Warrant to purchase common stock shares | 128,000 | |||||||||||||||
Warrant exercise price | $ 2.53 | |||||||||||||||
Warrant term | 5 years | |||||||||||||||
Fair Value adjustment of warrants | $ 173,000 | |||||||||||||||
Executive Officers [Member] | 2014 Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of restricted stock shares | 97,828 | 43,527 | ||||||||||||||
Employees [Member] | 2014 Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of restricted stock shares | 91,338 | |||||||||||||||
Employees [Member] | 2014 Plan [Member] | Time-based RSU [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of restricted stock shares | 81,786 | |||||||||||||||
Maximum [Member] | 2014 Equity Incentive Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of authorized issuance of common stock options | 1,000,000 | |||||||||||||||
ATM Offering [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Proceeds from issuance of offering | $ 14,300,000 | |||||||||||||||
Sale of common stock, shares | 1,169,564 | |||||||||||||||
Sale of stock per share | $ 12.24 | $ 12.24 | ||||||||||||||
Proceeds from issuance of common stock | $ 13,700,000 | |||||||||||||||
ATM Offering [Member] | Minimum [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Proceeds from issuance of offering | $ 10,000,000 | |||||||||||||||
ATM Offering [Member] | Maximum [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Proceeds from issuance of offering | $ 20,000,000 | |||||||||||||||
Registered Direct Offering [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Sale of common stock, shares | 2,142,860 | |||||||||||||||
Warrant to purchase common stock shares | 1,071,430 | |||||||||||||||
Share price | $ 7 | |||||||||||||||
Proceeds from issuance of warrants | $ 15,000,000 | |||||||||||||||
Deferred offering costs | $ 1,000,000 | |||||||||||||||
Warrant exercise price | $ 7 | |||||||||||||||
H.C. Wainwright & Co., LLC [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Share issued price per share | $ 0.001 | |||||||||||||||
Commission percentage | 3% | |||||||||||||||
Reimbursement description | In addition, the Company agreed to reimburse HCW for certain legal and other expenses incurred up to a maximum of $50,000 to establish the ATM Offering, and $2,500 per quarter thereafter to maintain such program under the Sales Agreement |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Concentration Risk [Line Items] | |||
Cash, FDIC insured amount | $ 250,000 | ||
Cash | 306,000 | $ 485,000 | |
Revenue | 17,840,000 | $ 6,271,000 | |
Four Major Customers [Member | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Revenue | $ 13,021,000 | $ 3,605,000 | |
Concentration risk, percentage | 73% | 57% | |
Two Suppliers [Member] | Purchase [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 36% | 24% | |
Purchase | $ 5,781,000 | $ 2,179,000 |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 (remaining nine months) | $ 588,000 |
2024 | 804,000 |
2025 | 828,000 |
2026 | 853,000 |
2027 | 372,000 |
Thereafter | 20,000 |
Total Future Minimum Lease Payments | 3,465,000 |
Less: discount | (652,000) |
Total lease liability | $ 2,813,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended | ||||
Sep. 02, 2022 USD ($) | Feb. 26, 2020 USD ($) ft² $ / shares | Apr. 25, 2019 USD ($) ft² | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Monthly lease payment | $ 1,100 | ||||
Lease term | 60 months | ||||
Lease expense | $ 223,000 | $ 214,000 | |||
Accutek [Member] | |||||
Area of land | ft² | 17,539 | 45,600 | |||
Lease description | The lease for the additional space commenced 30 days following the occupancy date of the additional space and will terminate concurrently with the term of the original lease, which expires on November 20, 2026 | The Lease has an initial term of seven years and four months and commenced on or about June 28, 2019 | |||
Lease option to extend | The lease contains an option to extend the term for two periods of 24 months each, 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 | ||||
Payments to acquire furniture and fixtures | $ 8,300 | ||||
Accutek [Member] | Space [Member] | |||||
Area of land | ft² | 16,309 | ||||
Accutek [Member] | Residential Unit [Member] | |||||
Area of land | ft² | 1,230 | ||||
Accutek [Member] | First 12 Months [Member] | |||||
Monthly lease payment | $ 42,400 | ||||
Escalating lease payment percentage | 3% |
SCHEDULE OF DEFERRED COMPENSATI
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL (Details) - Subsequent Event [Member] | Oct. 31, 2022 USD ($) | |
Ronald F. Dutt [Member] | Chief Executive Officer [Member] | ||
Subsequent Event [Line Items] | ||
Target Cash Bonus | $ 137,500 | |
Payout Percentage | 40% | |
Cash Bonus Payout | $ 55,055 | |
Ronald F. Dutt [Member] | Chief Executive Officer [Member] | 2023 Bonus Plan [Member] | ||
Subsequent Event [Line Items] | ||
Base Salary | $ 300,000 | [1] |
Bonus Percentage of Base Salary | 75% | |
Total Target Payout | $ 225,000 | |
Maximum Payout | 270,000 | [2] |
Charles Scheiwe [Member] | Chief Financial Officer [Member] | ||
Subsequent Event [Line Items] | ||
Target Cash Bonus | $ 71,820 | |
Payout Percentage | 40% | |
Cash Bonus Payout | $ 28,756.73 | |
Charles Scheiwe [Member] | Chief Financial Officer [Member] | 2023 Bonus Plan [Member] | ||
Subsequent Event [Line Items] | ||
Base Salary | $ 205,200 | |
Bonus Percentage of Base Salary | 35% | |
Total Target Payout | $ 71,820 | |
Maximum Payout | $ 86,184 | [2] |
[1]To be effective during the second fiscal quarter of 2023.[2]Subject to a bonus cap for achieving above set revenue target and a payout cap for achieving 10% positive Adjusted EBITDA. |
SCHEDULE OF DEFERRED COMPENSA_2
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION (Details) - shares | 3 Months Ended | |||
Oct. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Subsequent Event [Line Items] | ||||
Options | ||||
Subsequent Event [Member] | Ronald F. Dutt [Member] | Chief Executive Officer [Member] | 2021 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Options | [1] | 80,175 | ||
Vesting Schedule | Four (4) equal annual installments commencing one year after the Grant Date | |||
Subsequent Event [Member] | Charles Scheiwe [Member] | Chief Financial Officer [Member] | 2021 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Options | [1] | 41,878 | ||
Vesting Schedule | Four (4) equal annual installments commencing one year after the Grant Date | |||
[1]Subject to $ 100,000 |
SCHEDULE OF DEFERRED COMPENSA_3
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION (Details) (Parenthetical) | Oct. 31, 2022 USD ($) |
Subsequent Event [Member] | 2021 Equity Incentive Plan [Member] | |
Subsequent Event [Line Items] | |
ISO limitation | $ 100,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | |||
Nov. 07, 2022 | Oct. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Subsequent Event [Line Items] | ||||
Options exercise price | $ 4.65 | |||
Third Amendment to Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit | $ 5,700,000 | |||
Line of credit remaining borrowing capacity | $ 2,300,000 | |||
Subsequent Event [Member] | 2021 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Options exercise price | $ 3.43 | |||
Subsequent Event [Member] | Third Amendment to Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | ||||
Subsequent Event [Line Items] | ||||
Line of credit, non-refundable commitment fee | $ 12,500 |