Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
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 | 92-3550089 | |
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 $0.001 per share | |
Trading Symbol | FLUX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,532,275 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Current assets: | ||
Cash | $ 1,139,000 | $ 2,379,000 |
Accounts receivable | 10,699,000 | 8,649,000 |
Inventories, net | 19,495,000 | 18,996,000 |
Other current assets | 1,053,000 | 918,000 |
Total current assets | 32,386,000 | 30,942,000 |
Right of use assets | 2,670,000 | 2,854,000 |
Property, plant and equipment, net | 1,747,000 | 1,789,000 |
Other assets | 119,000 | 120,000 |
Total assets | 36,922,000 | 35,705,000 |
Current liabilities: | ||
Accounts payable | 10,065,000 | 9,735,000 |
Accrued expenses | 3,782,000 | 3,181,000 |
Line of credit | 11,986,000 | 9,912,000 |
Deferred revenue | 336,000 | 131,000 |
Customer deposits | 17,000 | 82,000 |
Finance lease payable, current portion | 147,000 | 143,000 |
Office lease payable, current portion | 667,000 | 644,000 |
Accrued interest | 102,000 | 2,000 |
Total current liabilities | 27,102,000 | 23,830,000 |
Office lease payable, less current portion | 1,880,000 | 2,055,000 |
Finance lease payable, less current portion | 229,000 | 273,000 |
Total liabilities | 29,211,000 | 26,158,000 |
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; 16,478,237 and 16,462,215 shares issued and outstanding at September 30, 2023 and June 30, 2023, respectively | 16,000 | 16,000 |
Additional paid-in-capital | 98,362,000 | 98,086,000 |
Accumulated deficit | (90,667,000) | (88,555,000) |
Total stockholders’ equity | 7,711,000 | 9,547,000 |
Total liabilities and stockholders’ equity | $ 36,922,000 | $ 35,705,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Jun. 30, 2023 |
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 | 16,478,237 | 16,462,215 |
Common stock, shares outstanding | 16,478,237 | 16,462,215 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 14,797,000 | $ 17,840,000 |
Cost of sales | 10,486,000 | 13,892,000 |
Gross profit | 4,311,000 | 3,948,000 |
Operating expenses: | ||
Selling and administrative | 4,725,000 | 4,536,000 |
Research and development | 1,295,000 | 1,223,000 |
Total operating expenses | 6,020,000 | 5,759,000 |
Operating loss | (1,709,000) | (1,811,000) |
Interest income (expense), net | (403,000) | (328,000) |
Net loss | $ (2,112,000) | $ (2,139,000) |
Net loss per share - basic | $ (0.13) | $ (0.13) |
Net loss per share - diluted | $ (0.13) | $ (0.13) |
Weighted average number of common shares outstanding - basic | 16,474,754 | 15,997,296 |
Weighted average number of common shares outstanding - diluted | 16,474,754 | 15,997,296 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Jun. 30, 2022 | $ 16,000 | $ 95,732,000 | $ (81,814,000) | $ 13,934,000 |
Balance, shares at Jun. 30, 2022 | 15,996,658 | |||
Stock-based compensation | 95,000 | 95,000 | ||
Net loss | (2,139,000) | (2,139,000) | ||
Issuance of common stock – exercised options | ||||
Issuance of common stock - exercised options, shares | 1,678 | |||
Balance at Sep. 30, 2022 | $ 16,000 | 95,827,000 | (83,953,000) | $ 11,890,000 |
Balance, shares at Sep. 30, 2022 | 15,998,336 | |||
Balance at Jun. 30, 2023 | $ 16,000 | 98,086,000 | (88,555,000) | 9,547,000 |
Balance, shares at Jun. 30, 2023 | 16,462,215 | |||
Issuance of common stock – exercised options and warrants | ||||
Issuance of common stock - exercised options and warrants, shares | 16,022 | |||
Stock-based compensation | 276,000 | 276,000 | ||
Net loss | (2,112,000) | $ (2,112,000) | ||
Issuance of common stock - exercised options, shares | ||||
Balance at Sep. 30, 2023 | $ 16,000 | $ 98,362,000 | $ (90,667,000) | $ 7,711,000 |
Balance, shares at Sep. 30, 2023 | 16,478,237 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (2,112,000) | $ (2,139,000) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 261,000 | 172,000 |
Stock-based compensation | 276,000 | 95,000 |
Amortization of debt issuance costs | 81,000 | 229,000 |
Noncash lease expense | 146,000 | 117,000 |
Allowance for inventory reserve | (3,000) | 25,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,050,000) | (2,987,000) |
Inventories | (496,000) | (2,641,000) |
Other assets | (215,000) | (229,000) |
Accounts payable | 330,000 | 6,860,000 |
Accrued expenses | 601,000 | 19,000 |
Accrued interest | 100,000 | 1,000 |
Office lease payable | (152,000) | (120,000) |
Deferred revenue | 205,000 | 184,000 |
Customer deposits | (65,000) | (165,000) |
Net cash used in operating activities | (3,093,000) | (579,000) |
Cash flows from investing activities | ||
Purchases of equipment | (181,000) | (352,000) |
Net cash used in investing activities | (181,000) | (352,000) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 18,055,000 | 12,900,000 |
Payment of revolving line of credit | (15,981,000) | (12,138,000) |
Payment of finance leases | (40,000) | (10,000) |
Net cash provided by financing activities | 2,034,000 | 752,000 |
Net change in cash | (1,240,000) | (179,000) |
Cash, beginning of period | 2,379,000 | 485,000 |
Cash, end of period | 1,139,000 | 306,000 |
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 | $ 223,000 | $ 99,000 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 filed with the SEC on September 21, 2023. 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, 2023 has been derived from the audited balance sheet at June 30, 2023 contained in such Form 10-K. Nature of Business Flux Power Holdings, Inc. (“Flux”) was incorporated in 2009 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 other commercial and industrial applications. We focus on providing lithium-ion products and service to large fleets of Fortune 500 customers. We believe our mobile and stationary energy storage solutions provide our customers 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, 2023 | |
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, 2023. 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, 2023 and 2022, basic and diluted weighted-average common shares outstanding were 16,474,754 15,997,296 2,503,294 2,227,950 At September 30, 2023 and 2022 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, 2023 September 30, 2022 Stock options 939,170 499,933 RSUs 192,210 272,898 Warrants 1,371,914 1,455,119 Total 2,503,294 2,227,950 Antidilutive securities 2,503,294 2,227,950 Liquidity Considerations The accompanying financial statements and notes have been prepared assuming the Company will continue as a going concern. For the three months ended September 30, 2023, the Company generated negative cash flows from operations of $ 3.1 90.7 15.0 2.0 Historically, the Company has not generated sufficient cash to fund its operations. Based on the Company’s existing backlog and customer orders, management anticipates increased revenues, together with the improvements in its gross margin will move it closer to profitability. The Company has made reaching profitability a top priority and has focused on improving its gross margins. Initiatives past and present includes improvement to sourcing, design cost reductions and management of profitable product offerings. The Company has received new orders in the twelve-month period ended September 30, 2023 of approximately $ 58.3 As of November 2, 2023, the Company had a cash balance of $ 1.4 2.9 15.0 2.0 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 3 – ACCRUED EXPENSES Accrued expenses consist of the following: SCHEDULE OF ACCRUED EXPENSES September 30, 2023 June 30, 2023 Payroll and bonus accrual $ 1,644,000 $ 1,157,000 PTO accrual 403,000 412,000 Warranty liability 1,726,000 1,600,000 Other 9,000 12,000 Total accrued expenses $ 3,782,000 $ 3,181,000 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 4 – NOTES PAYABLE Revolving Line of Credit Gibraltar Business Capital Credit Facility On July 28, 2023, the Company entered into a Loan and Security Agreement (the “Agreement”) with GBC. The Agreement provides the Company with a senior secured revolving loan facility for up to $ 15.0 July 28, 2025 0.75 In addition, subject to conditions and terms set forth in the Agreement, the Company may request an increase in the Revolving Loan Commitment from time to time upon not less than 30 days’ notice to GBC which increase may be made at the sole discretion of GBC, as long as: (a) the requested increase is in a minimum amount of $ 1,000,000 5,000,000 5.50 3.0 112,500 0.50 2.00 1.00 The loans and other obligations of the Company under the GBC Credit Facility are secured by substantially all of the tangible and intangible assets of the Company (including, without limitation, intellectual property) pursuant to the terms of the Agreement and the Intellectual Property Security Agreement entered into by and among the Company and GBC on July 28, 2023. During the three months ended September 30, 2023, the Company had multiple drawdowns under the GBC Credit Facility totaling $ 16.7 4.7 12.0 As of November 2, 2023, $ 2.9 Silicon Valley Bank Credit Facility On November 9, 2020, the Company entered into a Loan and Security Agreement (“Loan and Security Agreement”) with Silicon Valley Bank (“SVB”). On October 29, 2021, the Company entered into a First Amendment to Loan and Security Agreement (“First Amendment” and together with the Agreement, the “Loan Agreement”) with SVB which amended certain terms of the 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 On June 23, 2022, the Company entered into a Second Amendment to Loan and Security Agreement (“Second Amendment” and together with the Loan Agreement, the “Second Amended Loan Agreement”) with SVB, which amended certain terms of the Loan Agreement , including but not limited to, (i) increasing the amount of the revolving line of credit to $8.0 million, (ii) changing the financial covenants of the Company from one based on tangible net worth to another based on 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) allowing 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). 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 SVB Credit Facility, depending upon availability of borrowings under the Revolving LOC. 5,000 In connection with the Second Amendment, the Company issued a twelve-year 40,806 2.23 On November 7, 2022, the Company entered into a Third Amendment to Loan and Security Agreement (“Third Amendment”) with SVB, which amended certain terms of the Second Amended Loan Agreement (together with the Third Amendment, the “Third Amended Loan 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 to include a liquidity ratio financial covenant, 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 On January 10, 2023, the Company entered into a Fourth Amendment to Loan and Security Agreement (the “Fourth Amendment”) with SVB, which amended certain terms of the Third Amended Loan Agreement including but not limited to, (i) increasing the amount of the SVB Credit Facility from $ 8.0 14.0 10,000 On April 27, 2023, the Company entered into a Fifth Amendment to Loan and Security Agreement (the “Fifth Amendment”) with SVB which further amended certain terms of the credit facility (together with the Fifth Amendment, the “Agreement”), including but not limited to, (i) extending the maturity date from May 7, 2023 to December 31, 2023 (the “2023 Extension Period”), (ii) amending the EBITDA financial covenant of the Company to cover the 2023 Extension Period, and (iii) amending the definition of EBITDA (as defined in the Fifth Amendment). Pursuant to the Fifth Amendment, the Company agreed to pay SVB a non-refundable amendment fee of Thirty Thousand Dollars ($ 30,000 During the three months ended September 30, 2023, the Company had multiple Revolving LOC drawdowns totaling $ 1.4 11.3 0 On July 28, 2023, the Company repaid in full all principal outstanding under the SVB Credit Facility, together with all accrued and unpaid interest and related fees, with a portion of the funds from the GBC Credit Facility and terminated the Loan and Security Agreement with SVB, as amended. |
RELATED PARTY DEBT AGREEMENTS
RELATED PARTY DEBT AGREEMENTS | 3 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY DEBT AGREEMENTS | NOTE 5 - RELATED PARTY DEBT AGREEMENTS As of September 30, 2023 and June 30, 2023, 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, 2023 and 2022. Subordinated Line of Credit Facility On May 11, 2022, the Company entered into a Credit Facility Agreement (the “Subordinated LOC”) with 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 not less than $ 3,000,000 5,000,000 4,000,000 0 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”). On December 15, 2022, the Board of Directors of the Company elected to extend the Due Date to December 31, 2023. 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 80,000 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 commitment 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 On November 2, 2023, the Subordinated LOC was terminated. (See Note 9 – Subsequent Events) |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Sep. 30, 2023 | |
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 From December 21, 2020 through September 30, 2023, the Company sold an aggregate of 1,524,873 10.45 15.9 15.3 On October 5, 2023, the Company terminated the Sales Agreement with HCW upon given prior written notice of termination to HCW pursuant to the terms of the Sales Agreement. (See Note 9 – Subsequent Events) Warrants In connection with the Company’s registered direct offering 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 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 SVB, the Company issued twelve-year warrants to SVB and its designee, SVB Financial Group, to purchase up to 40,806 2.23 80,000 Warrant detail for the three months ended September 30, 2023 is reflected below: SCHEDULE OF STOCK WARRANT ACTIVITY Number of Warrants Weighted Average Exercise Price Per Warrant Weighted Average Term (# years) Warrants outstanding and exercisable at June 30, 2023 1,455,119 $ 6.10 Warrants issued Weighted Average Exercise Price,Warrants issued Warrants issued - Warrants exercised (83,205 ) $ 4.00 Warrants outstanding and exercisable at September 30, 2023 1,371,914 $ 6.23 3.18 Warrant detail for the three months ended September 30, 2022 is reflected below: Number of Warrants Weighted Weighted Average Remaining Term (# years) Warrants outstanding and exercisable at June 30, 2022 1,455,119 $ 4.496.10 Warrants issued - $ - Warrants exercised - Warrants outstanding and exercisable at September 30, 2022 1,455,119 $ 6.10 3.98 Stock Options In connection with the reverse acquisition of Flux Power, Inc. in 2012, the Company assumed the 2010 Plan. As of September 30, 2023, there was no 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 stock options, up to 1,000,000 100,192 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 1,592,687 On October 31, 2022, the Board of Directors authorized a total of 624,441 985,148 Activity in the Company’s stock options during the three months ended September 30, 2023 and related balances outstanding as of that date are reflected below: SCHEDULE OF STOCK OPTIONS ACTIVITY Number of Weighted Average Weighted Term Outstanding at June 30, 2023 969,434 $ 6.45 Granted - $ - Exercised - $ - Forfeited and cancelled (30,264 ) $ 8.19 Outstanding at September 30, 2023 939,170 $ 6.40 7.29 Exercisable at September 30, 2023 376,978 $ 10.82 4.62 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: Number of Weighted Average Weighted 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 Restricted Stock Units On November 5, 2020, the Company’s Board of Directors approved an amendment to the 2014 Plan, to allow for 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 April 29, 2021, a total of 18,312 97,828 48,914 48,914 81,786 67,532 Activity in RSUs during the three months ended September 30, 2023 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 Term (# years) Outstanding at June 30, 2023 193,749 $ 6.09 Granted - $ - Vested and settled - $ - Forfeited and cancelled (1,539 ) $ 5.75 Outstanding at September 30, 2023 192,210 $ 6.09 0.74 Activity in RSUs during the three months ended September 30, 2022 and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Grant date Fair Value Weighted (# 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 Employee Stock Purchase Plan On March 6, 2023, the Company’s Board of Directors approved the 2023 Employee Stock Purchase Plan (the “2023 ESPP”), and on April 20, 2023, the 2023 ESPP was approved by the Company’s stockholders. The 2023 ESPP enables eligible employees of the Company and certain of its subsidiaries (a “Participating Subsidiary”) to use payroll deductions to purchase shares of the Company’s Common Stock and acquire an ownership interest in the Company. The maximum aggregate number of shares of the Company’s Common Stock that have been reserved as authorized for the grant of options under the 2023 ESPP is 350,000 (i) has been employed by the Company or a Participating Subsidiary for at least 90 days and (ii) is customarily employed for at least twenty (20) hours per week and more than five (5) months in any calendar year. Each eligible employee may authorize payroll deductions of 1-15% of the eligible employee’s compensation on each pay day to be used to purchase up to 1,500 shares of Common Stock for the employee’s account occurring during an offering period. The 2023 ESPP has a term of ten (10) years commencing on April 20, 2023, the date of approval by the Company’s stockholders, unless otherwise earlier terminated. There was no stock purchased under the 2023 ESPP during the quarter ended September 30, 2023. Stock-based Compensation Stock-based compensation expense for the three months ended September 30, 2023 and 2022 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, 2023, the aggregate intrinsic value of exercisable stock options was approximately $ 6,000 The following table summarizes stock-based compensation expense for employee and non-employee stock option and RSU grants: SCHEDULE OF STOCK-BASED COMPENSATION EXPENSES Three Months Ended 2023 2022 Research and development $ 60,000 $ 26,000 Selling and administrative 216,000 69,000 Total stock-based compensation expense $ 276,000 $ 95,000 At September 30, 2023, the unamortized stock-based compensation expense related to outstanding stock options and RSUs was approximately $ 1,254,000 501,000 2.02 0.84 |
CONCENTRATIONS
CONCENTRATIONS | 3 Months Ended |
Sep. 30, 2023 | |
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 1,139,000 2,379,000 The Company has not experienced any losses in such accounts. Management believes that the Company is not exposed to any significant credit risk with respect to its cash. Customer Concentrations During the three months ended September 30, 2023, the Company had four (4) major customers that each represented more than 10% of revenues on an individual basis, and together represented approximately $ 12,002,000 81 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 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, 2023, the Company had two (2) suppliers that each accounted for more than 10% of total purchases on an individual basis, and together represented approximately $ 3,386,000 30 During the three months ended September 30, 2022, the Company had two (2) suppliers that each accounted for more than 10% of total purchases on an individual basis, and together represented approximately $ 5,781,000 36 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2023 | |
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 December 16, 2022 the Company signed a Lease Agreement with MM Parker Court Associates, LLC to rent approximately 4,892 The Lease has an initial term of five years and three months and commenced on or about February 1, 2023. 2,300 4,700 5 Total rent expense was approximately $ 238,000 223,000 Finance Leases The Company’s leased properties as of September 30, 2023 are as follows: SCHEDULE OF FINANCE LEASES Lease Date Property Leased Lease Term (months) Commencement Date Monthly Lease Payment (1) 9/2/2022 Vehicle 60 9/10/2022 $ 1,100 10/17/2022 Manufacturing equipment 36 10/17/2022 $ 5,500 1/24/2023 Manufacturing equipment 36 1/24/2023 $ 6,700 3/2/2023 Manufacturing equipment 36 3/2/2023 $ 1,000 (1) Excludes sales tax and other fees. Lease costs are amortized on a straight-line basis over their respective lease terms. Depreciation expense related to leased assets was approximately $ 38,000 0 5,000 0 The Future Minimum Lease Payments as of September 30, 2023 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Operating Leases Finance Leases Year Ending June 30, 2024 (remaining nine months) $ 644,000 $ 130,000 2025 883,000 173,000 2026 910,000 85,000 2027 433,000 15,000 Thereafter 64,000 21,000 Total Future Minimum Lease Payments 2,934,000 424,000 Less: discount (387,000 ) (48,000 ) Total lease liability $ 2,547,000 $ 376,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 - SUBSEQUENT EVENTS Termination of the ATM Sales Agreement On October 5, 2023, the Company terminated the Sales Agreement with HCW upon given prior written notice of termination to HCW pursuant to the terms of the Sales Agreement. 2023 Bonus Payout On October 6, 2023, the Compensation Committee of the Board (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 2023: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL Name Position Target Cash Bonus Payout Percentage Cash Bonus Payout Ronald F. Dutt Chief Executive Officer $ 225,000 64.7 % $ 145,565 Charles Scheiwe Chief Financial Officer $ 71,820 64.7 % $ 46,464 Jeff Mason VP of Operations $ 61,800 64.7 % $ 39,982 2024 Bonus Plan On October 20, 2023, the Board approved an amended and restated annual cash bonus plan (the “Amended Annual Bonus Plan”) that was previously approved by the Board on November 5, 2020 which allows the Compensation Committee and/or the Board of the Company to set the amount of bonus each fiscal year and the performance criteria. Executive officers and all employees (other than part-time employees and temporary employees) are eligible to participate in the Amended Annual Bonus Plan (“Participants”) as long as the Participant remains an active regular employee of the Company. The Amended Annual Bonus Plan is effective for fiscal year 2024 and each fiscal year thereafter (the “Plan Year”). For each Plan Year, the Compensation Committee will establish an aggregate amount of allocable Bonus under the Amended Annual Bonus Plan and determine the performance goals applicable to a bonus during a Plan Year (the “Participation Criteria”). The Participation Criteria may differ from Participant to Participant and from bonus to bonus. All of the Company’s executive officers are eligible to participate in the Amended Annual Bonus Plan. The Amended Annual Bonus Plan was approved by the Board in anticipation of the Company adopting its “clawback” policy applicable to its executive officers as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. On October 20, 2023, pursuant to the recommendation of the Compensation Committee, the Board approved the bonus pool and performance criteria for the Amended Annual Bonus Plan for FY2024 (the “2024 Bonus”). For FY2024, the performance goals applicable to a bonus are based on the Company achieving certain targets based on the Company’s full year revenue, Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and stock-based compensation) for FY2024, and functional goals (the “Financial Targets”), in addition to individual performance objectives and goals (the “2024 Performance Matrix”). The Board approved the following cash bonuses under the 2024 Bonus for the following executive officers: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL Name Position Maximum Payout (1) Special Bonus Maximum Payout (2) Ronald F. Dutt Chief Executive Officer $ 256,281 $ 400,000 Charles Scheiwe Chief Financial Officer $ 91,571 $ - Jeffrey Mason Vice President of Operations $ 94,607 $ 400,000 (1) Full maximum payout assuming targets reached as set forth in the 2024 Performance Matrix. (2) Full maximum payout for achieving certain additional gross margin targets. Grant of Stock Options On October 20, 2023 (the “Grant Date”), pursuant to the recommendation of the Compensation Committee, the Board approved the grant of 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” and together with 2014 Plan, the “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 the related 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 $ 3.36 The following executive officers of the Company were granted Options in such number, with such vesting schedule, and under the respective Plan, set forth as follows: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION Name Position Options (1) Plan Vesting Schedule Ronald F. Dutt Chief Executive Officer 223,216 2021 Plan Annually over 3 years from Grant Date Charles Scheiwe Chief Financial Officer 42,750 2021 Plan Annually over 3 years from Grant Date Jeffrey Mason Vice President of Operations 54,934 2021 Plan Annually over 3 years from Grant Date (1) Subject to $ 100,000 Salary Increases On October 20, 2023, pursuant to the recommendation of the Compensation Committee, the Board approved the following salary increases (the “FY2024 Annual Salary”) to the following executive officers, effective for the fiscal year 2024 (“FY2024”): SCHEDULE OF DEFERRED COMPENSATION SALARY INCREASES Name Position Current Annual Salary Salary for FY2024 Ronald F. Dutt Chief Executive Officer $ 300,000 $ 375,000 Charles Scheiwe* Chief Financial Officer $ 205,200 $ 205,200 Jeffrey Mason Vice President of Operations $ 206,000 $ 230,720 * Plus an additional supplemental payment of $ 4,000 New Subordinated Credit Facility On November 2, 2023, the Company entered into a Credit Facility Agreement (“Cleveland Agreement”) with Cleveland (the “Lender”) for a subordinated unsecured revolving line of credit (the “2023 Subordinated LOC “) of up to $ 2,000,000 The Note accrues interest at Secured Overnight Financing Rate plus nine percent ( 9 41,196 3.24 Termination of the Subordinated LOC On November 2, 2023, the Credit Facility Agreement dated May 11, 2022 with Cleveland, Herndon Plant Oakley, Ltd., and other lenders for a line of credit for up to $ 5 Advisory Agreement On November 2, 2023, the Company entered into a Financial Advisory Agreement with Cleveland Capital Management, L.L.C., a Delaware limited liability company (“Advisor”) pursuant to which the Advisor agreed to advise the Company with financial and operation analysis until December 31, 2023. As compensation for services, Company agreed to pay the Advisor an advisory fee of $ 60,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022, basic and diluted weighted-average common shares outstanding were 16,474,754 15,997,296 2,503,294 2,227,950 At September 30, 2023 and 2022 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, 2023 September 30, 2022 Stock options 939,170 499,933 RSUs 192,210 272,898 Warrants 1,371,914 1,455,119 Total 2,503,294 2,227,950 Antidilutive securities 2,503,294 2,227,950 |
Liquidity Considerations | Liquidity Considerations The accompanying financial statements and notes have been prepared assuming the Company will continue as a going concern. For the three months ended September 30, 2023, the Company generated negative cash flows from operations of $ 3.1 90.7 15.0 2.0 Historically, the Company has not generated sufficient cash to fund its operations. Based on the Company’s existing backlog and customer orders, management anticipates increased revenues, together with the improvements in its gross margin will move it closer to profitability. The Company has made reaching profitability a top priority and has focused on improving its gross margins. Initiatives past and present includes improvement to sourcing, design cost reductions and management of profitable product offerings. The Company has received new orders in the twelve-month period ended September 30, 2023 of approximately $ 58.3 As of November 2, 2023, the Company had a cash balance of $ 1.4 2.9 15.0 2.0 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF DILUTIVE COMMON SHARES OUTSTANDING EXCLUDED FROM DILUTIVE WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | At September 30, 2023 and 2022 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, 2023 September 30, 2022 Stock options 939,170 499,933 RSUs 192,210 272,898 Warrants 1,371,914 1,455,119 Total 2,503,294 2,227,950 Antidilutive securities 2,503,294 2,227,950 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES | Accrued expenses consist of the following: SCHEDULE OF ACCRUED EXPENSES September 30, 2023 June 30, 2023 Payroll and bonus accrual $ 1,644,000 $ 1,157,000 PTO accrual 403,000 412,000 Warranty liability 1,726,000 1,600,000 Other 9,000 12,000 Total accrued expenses $ 3,782,000 $ 3,181,000 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
SCHEDULE OF STOCK WARRANT ACTIVITY | Warrant detail for the three months ended September 30, 2023 is reflected below: SCHEDULE OF STOCK WARRANT ACTIVITY Number of Warrants Weighted Average Exercise Price Per Warrant Weighted Average Term (# years) Warrants outstanding and exercisable at June 30, 2023 1,455,119 $ 6.10 Warrants issued Weighted Average Exercise Price,Warrants issued Warrants issued - Warrants exercised (83,205 ) $ 4.00 Warrants outstanding and exercisable at September 30, 2023 1,371,914 $ 6.23 3.18 Warrant detail for the three months ended September 30, 2022 is reflected below: Number of Warrants Weighted Weighted Average Remaining Term (# years) Warrants outstanding and exercisable at June 30, 2022 1,455,119 $ 4.496.10 Warrants issued - $ - Warrants exercised - Warrants outstanding and exercisable at September 30, 2022 1,455,119 $ 6.10 3.98 |
SCHEDULE OF STOCK OPTIONS ACTIVITY | Activity in the Company’s stock options during the three months ended September 30, 2023 and related balances outstanding as of that date are reflected below: SCHEDULE OF STOCK OPTIONS ACTIVITY Number of Weighted Average Weighted Term Outstanding at June 30, 2023 969,434 $ 6.45 Granted - $ - Exercised - $ - Forfeited and cancelled (30,264 ) $ 8.19 Outstanding at September 30, 2023 939,170 $ 6.40 7.29 Exercisable at September 30, 2023 376,978 $ 10.82 4.62 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: Number of Weighted Average Weighted 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 |
SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY | Activity in RSUs during the three months ended September 30, 2023 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 Term (# years) Outstanding at June 30, 2023 193,749 $ 6.09 Granted - $ - Vested and settled - $ - Forfeited and cancelled (1,539 ) $ 5.75 Outstanding at September 30, 2023 192,210 $ 6.09 0.74 Activity in RSUs during the three months ended September 30, 2022 and related balances outstanding as of that date are reflected below: Number of Shares Weighted Average Grant date Fair Value Weighted (# 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 |
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 Three Months Ended 2023 2022 Research and development $ 60,000 $ 26,000 Selling and administrative 216,000 69,000 Total stock-based compensation expense $ 276,000 $ 95,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF FINANCE LEASES | The Company’s leased properties as of September 30, 2023 are as follows: SCHEDULE OF FINANCE LEASES Lease Date Property Leased Lease Term (months) Commencement Date Monthly Lease Payment (1) 9/2/2022 Vehicle 60 9/10/2022 $ 1,100 10/17/2022 Manufacturing equipment 36 10/17/2022 $ 5,500 1/24/2023 Manufacturing equipment 36 1/24/2023 $ 6,700 3/2/2023 Manufacturing equipment 36 3/2/2023 $ 1,000 (1) Excludes sales tax and other fees. |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS | The Future Minimum Lease Payments as of September 30, 2023 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Operating Leases Finance Leases Year Ending June 30, 2024 (remaining nine months) $ 644,000 $ 130,000 2025 883,000 173,000 2026 910,000 85,000 2027 433,000 15,000 Thereafter 64,000 21,000 Total Future Minimum Lease Payments 2,934,000 424,000 Less: discount (387,000 ) (48,000 ) Total lease liability $ 2,547,000 $ 376,000 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL | On October 6, 2023, the Compensation Committee of the Board (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 2023: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL Name Position Target Cash Bonus Payout Percentage Cash Bonus Payout Ronald F. Dutt Chief Executive Officer $ 225,000 64.7 % $ 145,565 Charles Scheiwe Chief Financial Officer $ 71,820 64.7 % $ 46,464 Jeff Mason VP of Operations $ 61,800 64.7 % $ 39,982 |
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION | The following executive officers of the Company were granted Options in such number, with such vesting schedule, and under the respective Plan, set forth as follows: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION Name Position Options (1) Plan Vesting Schedule Ronald F. Dutt Chief Executive Officer 223,216 2021 Plan Annually over 3 years from Grant Date Charles Scheiwe Chief Financial Officer 42,750 2021 Plan Annually over 3 years from Grant Date Jeffrey Mason Vice President of Operations 54,934 2021 Plan Annually over 3 years from Grant Date (1) Subject to $ 100,000 |
SCHEDULE OF DEFERRED COMPENSATION SALARY INCREASES | On October 20, 2023, pursuant to the recommendation of the Compensation Committee, the Board approved the following salary increases (the “FY2024 Annual Salary”) to the following executive officers, effective for the fiscal year 2024 (“FY2024”): SCHEDULE OF DEFERRED COMPENSATION SALARY INCREASES Name Position Current Annual Salary Salary for FY2024 Ronald F. Dutt Chief Executive Officer $ 300,000 $ 375,000 Charles Scheiwe* Chief Financial Officer $ 205,200 $ 205,200 Jeffrey Mason Vice President of Operations $ 206,000 $ 230,720 * Plus an additional supplemental payment of $ 4,000 |
2024 Bonus Plan [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL | The Board approved the following cash bonuses under the 2024 Bonus for the following executive officers: SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL Name Position Maximum Payout (1) Special Bonus Maximum Payout (2) Ronald F. Dutt Chief Executive Officer $ 256,281 $ 400,000 Charles Scheiwe Chief Financial Officer $ 91,571 $ - Jeffrey Mason Vice President of Operations $ 94,607 $ 400,000 (1) Full maximum payout assuming targets reached as set forth in the 2024 Performance Matrix. (2) Full maximum payout for achieving certain additional gross margin targets. |
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, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 2,503,294 | 2,227,950 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 939,170 | 499,933 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 192,210 | 272,898 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 1,371,914 | 1,455,119 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Nov. 02, 2023 | Jun. 30, 2023 | |
Line of Credit Facility [Line Items] | ||||
Weighted average number of common shares outstanding - basic | 16,474,754 | 15,997,296 | ||
Weighted average number of common shares outstanding - diluted | 16,474,754 | 15,997,296 | ||
Antidilutive securities | 2,503,294 | 2,227,950 | ||
Cash flows from operations | $ 3,093,000 | $ 579,000 | ||
Accumulated deficit | 90,667,000 | $ 88,555,000 | ||
Proceeds from customers | 58,300,000 | |||
GBC Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility available for future draws | 15,000,000 | |||
GBC Credit Facility [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility available for future draws | $ 15,000,000 | |||
Cash balance | 1,400,000 | |||
Line of credit facility, remaining balance | 2,900,000 | |||
2023 Subordinated LOC [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility available for future draws | $ 2,000,000 | |||
2023 Subordinated LOC [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility available for future draws | $ 2,000,000 |
SCHEDULE OF ACCRUED EXPENSES (D
SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Payables and Accruals [Abstract] | ||
Payroll and bonus accrual | $ 1,644,000 | $ 1,157,000 |
PTO accrual | 403,000 | 412,000 |
Warranty liability | 1,726,000 | 1,600,000 |
Other | 9,000 | 12,000 |
Total accrued expenses | $ 3,782,000 | $ 3,181,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | |||||||
Nov. 02, 2023 | Jul. 28, 2023 | Apr. 27, 2023 | Jan. 10, 2023 | Nov. 07, 2022 | Jun. 23, 2022 | Oct. 29, 2021 | Sep. 30, 2023 | |
Third Amendment to Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit, non-refundable commitment fee | $ 12,500 | |||||||
Fourth Amendment to Loan and Security Agreement [Member] | Silicon Valley Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit, non-refundable commitment fee | $ 10,000 | |||||||
Security Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Legal fee | $ 30,000 | |||||||
Subsequent Event [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit | $ 5,000,000 | |||||||
Line of credit, non-refundable commitment fee | 2,000,000 | |||||||
Revolving Loan Commitment [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Loan amount | $ 15,000,000 | |||||||
Line of credit maturity date | Jul. 28, 2025 | |||||||
Loan amount interest rate of renewal fee | 0.75% | |||||||
Loan terms | In addition, subject to conditions and terms set forth in the Agreement, the Company may request an increase in the Revolving Loan Commitment from time to time upon not less than 30 days’ notice to GBC which increase may be made at the sole discretion of GBC, as long as: (a) the requested increase is in a minimum amount of $1,000,000, and (b) the total increases do not exceed $5,000,000 and no more than five (5) increases are made. | |||||||
Line of credit facility, remaining available for future borrowings | $ 1,000,000 | |||||||
Revolving line of credit | $ 5,000,000 | |||||||
Loan amount interest rate of outstanding principal | 1% | |||||||
Loan amount interest rate | 3% | |||||||
Loan amount interest rate unused | 0.50% | |||||||
Revolving Loan Commitment [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Loan amount interest rate of outstanding principal | 5.50% | |||||||
GBC Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Loan amount interest rate of outstanding principal | 2% | |||||||
Loan amount fee | $ 112,500 | |||||||
Line of credit facility, drawdowns | $ 16,700,000 | |||||||
Line of credit facility, periodic payment | 4,700,000 | |||||||
Line of credit | 12,000,000 | |||||||
GBC Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, remaining available for future borrowings | $ 2,900,000 | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, drawdowns | 1,400,000 | |||||||
Line of credit facility, periodic payment | 11,300,000 | |||||||
Line of credit | $ 0 | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | First Amendment And Security Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit maturity date | Nov. 07, 2022 | |||||||
Revolving line of credit | $ 6,000,000 | |||||||
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 Agreement and an additional non-refundable commitment fee of $22,500 in connection with the First Amendment. | |||||||
Line of credit, non-refundable commitment fee | $ 15,000 | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | First Amendment And Security Agreement [Member] | Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving line of credit | 4,000,000 | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | First Amendment And Security Agreement [Member] | Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving line of credit | $ 6,000,000 | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | Second Amendment And Security Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit interest rate description | On June 23, 2022, the Company entered into a Second Amendment to Loan and Security Agreement (“Second Amendment” and together with the Loan Agreement, the “Second Amended Loan Agreement”) with SVB, which amended certain terms of the Loan Agreement , including but not limited to, (i) increasing the amount of the revolving line of credit to $8.0 million, (ii) changing the financial covenants of the Company from one based on tangible net worth to another based on 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) allowing 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). | |||||||
Line of credit, 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 | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | Second Amendment And Security Agreement One [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 SVB Credit Facility, depending upon availability of borrowings under the Revolving LOC. | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | Fourth Amendmen And Security Agreement [Member] | Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving line of credit | 8,000,000 | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | Fourth Amendmen And Security Agreement [Member] | Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving line of credit | $ 14,000,000 |
RELATED PARTY DEBT AGREEMENTS (
RELATED PARTY DEBT AGREEMENTS (Details Narrative) - USD ($) | 3 Months Ended | |||
Dec. 15, 2022 | May 11, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Line of credit | $ 11,986,000 | $ 9,912,000 | ||
Credit Facility Agreement [Member] | Lenders [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Commitment fee | $ 80,000 | 4,000,000 | ||
Line of credit | $ 0 | |||
Line of credit interest rate | 15% | |||
Commitment fee percentage | 2% | |||
Commitment rate | 3.50% | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 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, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Number of warrants, outstanding and exercisable, beginning balance | 1,455,119 | 1,455,119 |
Weighted average exercise price, outstanding and exercisable, beginning balance | $ 6.10 | $ 4.496 |
Number of warrants, warrants issued | ||
Weighted average exercise price, warrants issued | ||
Number of warrants, warrants exercised | (83,205) | |
Weighted average exercise price, warrants exercised | $ 4 | |
Number of warrants, outstanding and exercisable, ending balance | 1,371,914 | 1,455,119 |
Weighted average exercise price, outstanding and exercisable, ending balance | $ 6.23 | $ 6.10 |
Weighted average remaining contract term warrants outstanding and exercisable | 3 years 2 months 4 days | 3 years 11 months 23 days |
SCHEDULE OF STOCK OPTIONS ACTIV
SCHEDULE OF STOCK OPTIONS ACTIVITY (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||
Number of shares, outstanding, beginning balance | 969,434 | 503,433 |
Weighted average exercise price, outstanding, beginning balance | $ 6.45 | $ 11.03 |
Number of shares, granted | ||
Weighted average exercise price, granted | ||
Number of shares, exercised | ||
Weighted average exercise price, exercised | ||
Number of shares, forfeited and cancelled | (30,264) | (3,500) |
Weighted average exercise price, forfeited and cancelled | $ 8.19 | $ 13.60 |
Number of shares, outstanding, ending balance | 939,170 | |
Weighted average exercise price, outstanding, ending balance | $ 6.40 | $ 11.02 |
Weighted average remaining contract term stock options outstanding | 7 years 3 months 14 days | 4 years 3 months 21 days |
Number of shares, exercisable, ending balance | 376,978 | 499,933 |
Weighted average exercise price, exercisable, ending balance | $ 10.82 | |
Weighted average remaining contract term stock options exercisable | 4 years 7 months 13 days |
SCHEDULE OF RESTRICTED STOCK UN
SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||
Number of shares, outstanding, beginning balance | 193,749 | 304,221 |
Weighted average grant date fair value, outstanding, beginning balance | $ 6.09 | $ 6.06 |
Number of shares, granted | 5,034 | |
Weighted average grant 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 | (1,539) | (34,679) |
Weighted average grant date fair value, forfeited and cancelled | $ 5.75 | $ 7.06 |
Number of shares, outstanding, ending balance | 192,210 | 272,898 |
Weighted average grant date fair value, outstanding, ending balance | $ 6.09 | $ 5.89 |
Weighted average remaining contract term restricted stock outstanding | 8 months 26 days | 1 year 6 months 10 days |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSES (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Total stock-based compensation expense | $ 276,000 | $ 95,000 |
Research and Development Expense [Member] | ||
Total stock-based compensation expense | 60,000 | 26,000 |
Selling, General and Administrative Expenses [Member] | ||
Total stock-based compensation expense | $ 216,000 | $ 69,000 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 33 Months Ended | |||||||||||||
Apr. 20, 2023 | Mar. 06, 2023 | Oct. 29, 2021 | Apr. 29, 2021 | Nov. 05, 2020 | Jun. 30, 2022 | May 31, 2022 | Sep. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Nov. 02, 2023 | Oct. 20, 2023 | Oct. 31, 2022 | Dec. 21, 2020 | Feb. 17, 2015 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of shares, granted | 5,034 | |||||||||||||||
Aggregate intrinsic value | $ 6,000 | $ 6,000 | ||||||||||||||
Weighted-average remaining recognition period | 7 years 3 months 14 days | 4 years 3 months 21 days | ||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Stock based compensation expenses related to RSUs outstanding not yet recognition | $ 501,000 | 501,000 | ||||||||||||||
Weighted-average remaining recognition period | 10 months 2 days | |||||||||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Stock based compensation expenses related to RSUs outstanding not yet recognition | $ 1,254,000 | $ 1,254,000 | ||||||||||||||
Weighted-average remaining recognition period | 2 years 7 days | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Share issued price per share | $ 3.24 | |||||||||||||||
2010 Option Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Common stock available for future grants | 0 | 0 | ||||||||||||||
2014 Equity Incentive Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Common stock available for future grants | 100,192 | 100,192 | ||||||||||||||
2014 Equity Incentive Plan [Member] | Maximum [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of authorized issuance of common stock options | 1,000,000 | |||||||||||||||
2021 Equity Incentive Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Common stock available for future grants | 1,592,687 | 1,592,687 | ||||||||||||||
Number of authorized issuance of common stock options | 2,000,000 | |||||||||||||||
2014 and 2021 Equity Incentive Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of authorized issuance of common stock options | 624,441 | |||||||||||||||
2014 and 2021 Equity Incentive Plan [Member] | Subsequent Event [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of authorized issuance of common stock options | 985,148 | |||||||||||||||
2014 Plan [Member] | Time-based RSU [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Restricted stock award granted | 48,914 | 18,312 | ||||||||||||||
2014 Plan [Member] | Performance-based RSU [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Restricted stock award granted | 48,914 | |||||||||||||||
Employee Stock Purchase Plan [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Grant of options, shares | 350,000 | |||||||||||||||
Employee stock purchase plan, description | (i) has been employed by the Company or a Participating Subsidiary for at least 90 days and (ii) is customarily employed for at least twenty (20) hours per week and more than five (5) months in any calendar year. Each eligible employee may authorize payroll deductions of 1-15% of the eligible employee’s compensation on each pay day to be used to purchase up to 1,500 shares of Common Stock for the employee’s account occurring during an offering period. The 2023 ESPP has a term of ten (10) years commencing on April 20, 2023, the date of approval by the Company’s stockholders, unless otherwise earlier terminated. | |||||||||||||||
Silicon Valley Bank [Member] | Second Amendment to Loan and Security Agreement [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Fair Value adjustment of warrants | $ 80,000 | $ 173,000 | ||||||||||||||
Investors [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Beneficial ownership percentage | 4.99% | |||||||||||||||
Investors [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Warrant term | 5 years | |||||||||||||||
Warrant to purchase common stock shares | 1,071,430 | |||||||||||||||
Warrant exercise price | $ 7 | |||||||||||||||
Fair Value adjustment of warrants | $ 3,874,000 | |||||||||||||||
Lenders [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Warrant term | 5 years | |||||||||||||||
Warrant to purchase common stock shares | 40,806 | 128,000 | ||||||||||||||
Warrant exercise price | $ 2.23 | $ 2.53 | ||||||||||||||
Executive Officers [Member] | 2014 Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Restricted stock award granted | 97,828 | |||||||||||||||
Employees [Member] | 2014 Plan [Member] | Time-based RSU [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Restricted stock award granted | 81,786 | |||||||||||||||
Four Non Executive Directors [Member] | 2014 Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Number of shares, granted | 67,532 | |||||||||||||||
ATM Offering [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Sale of common stock shares | 1,524,873 | |||||||||||||||
Sale of stock per share | $ 10.45 | $ 10.45 | ||||||||||||||
Proceeds from issuance of offering | $ 15,900,000 | |||||||||||||||
Proceeds from issuance of common stock | $ 15,300,000 | |||||||||||||||
H.C. Wainwright & Co., LLC [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Share issued price per share | $ 0.001 |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Concentration Risk [Line Items] | |||
Cash, FDIC insured amount | $ 250,000 | ||
Cash | 1,139,000 | $ 2,379,000 | |
Revenue from Contract with Customer, Excluding Assessed Tax | 14,797,000 | $ 17,840,000 | |
Four Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 12,002,000 | $ 13,021,000 | |
Concentration risk, percentage | 81% | 73% | |
Two Suppliers [Member] | Purchase [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 30% | 36% | |
Purchase | $ 3,386,000 | $ 5,781,000 |
SCHEDULE OF FINANCE LEASES (Det
SCHEDULE OF FINANCE LEASES (Details) - USD ($) | 3 Months Ended | ||||||
Mar. 02, 2023 | Jan. 24, 2023 | Oct. 17, 2022 | Sep. 02, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Property, Plant and Equipment [Line Items] | |||||||
Monthly lease payment | $ 40,000 | $ 10,000 | |||||
Vehicles [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Lease term | 60 months | ||||||
Monthly lease payment | [1] | $ 1,100 | |||||
Equipment [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Lease term | 36 months | 36 months | 36 months | ||||
Monthly lease payment | [1] | $ 1,000 | $ 6,700 | $ 5,500 | |||
[1]Excludes sales tax and other fees. |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases 2024 (remaining nine months) | $ 644,000 |
Finance Leases 2024 (remaining nine months) | 130,000 |
Operating Leases 2025 | 883,000 |
Finance Leases 2025 | 173,000 |
Operating Leases 2026 | 910,000 |
Finance Leases 2026 | 85,000 |
Operating Leases 2027 | 433,000 |
Finance Leases 2027 | 15,000 |
Operating Leases, Threafter | 64,000 |
Finance Leases, Thereafter | 21,000 |
Operating Leases, Total Future Minimum Lease Payments | 2,934,000 |
Finance Leases, Total Future Minimum Lease Payments | 424,000 |
Operating Leases Less: discount | (387,000) |
Finance Leases Less: discount | (48,000) |
Operating Leases, Total lease liability | 2,547,000 |
Finance Leases, Total lease liability | $ 376,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 1 Months Ended | 3 Months Ended | |||
Feb. 26, 2020 USD ($) ft² $ / shares | Apr. 25, 2019 USD ($) ft² | Dec. 16, 2022 USD ($) ft² | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Total rent | $ 238,000 | $ 223,000 | |||
Depreciation expense related to leased assets | 38,000 | 0 | |||
Interest expense on leased liabilities | $ 5,000 | $ 0 | |||
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] | |||||
Total rent | $ 42,400 | ||||
Escalating lease payment percentage | 3% | ||||
Lease Agreement MM Parker Court Associates LLC [Member] | |||||
Area of land | ft² | 4,892 | ||||
Lease description | The Lease has an initial term of five years and three months and commenced on or about February 1, 2023. | ||||
Escalating lease payment percentage | 5% | ||||
Lease Agreement MM Parker Court Associates LLC [Member] | First 6 Months [Member] | |||||
Total rent | $ 2,300 | ||||
Lease Agreement MM Parker Court Associates LLC [Member] | Next 7 to 12 Months [Member] | |||||
Total rent | $ 4,700 |
SCHEDULE OF DEFERRED COMPENSATI
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL (Details) - Subsequent Event [Member] - USD ($) | Oct. 06, 2023 | Oct. 20, 2023 | |
Ronald F. Dutt [Member] | Chief Executive Officer [Member] | |||
Subsequent Event [Line Items] | |||
Target Cash Bonus | $ 225,000 | ||
Payout Percentage | 64.70% | ||
Cash Bonus Payout | $ 145,565 | ||
Ronald F. Dutt [Member] | Chief Executive Officer [Member] | 2024 Bonus Plan [Member] | |||
Subsequent Event [Line Items] | |||
Maximum Payout | [1] | $ 256,281 | |
Special Bonus Maximum Payout | [2] | 400,000 | |
Charles Scheiwe [Member] | Chief Financial Officer [Member] | |||
Subsequent Event [Line Items] | |||
Target Cash Bonus | $ 71,820 | ||
Payout Percentage | 64.70% | ||
Cash Bonus Payout | $ 46,464 | ||
Charles Scheiwe [Member] | Chief Financial Officer [Member] | 2024 Bonus Plan [Member] | |||
Subsequent Event [Line Items] | |||
Maximum Payout | [1] | 91,571 | |
Special Bonus Maximum Payout | [2] | ||
Jeff Mason [Member] | Vice President [Member] | |||
Subsequent Event [Line Items] | |||
Target Cash Bonus | $ 61,800 | ||
Payout Percentage | 64.70% | ||
Cash Bonus Payout | $ 39,982 | ||
Jeffrey Mason [Member] | Vice President [Member] | 2024 Bonus Plan [Member] | |||
Subsequent Event [Line Items] | |||
Maximum Payout | [1] | 94,607 | |
Special Bonus Maximum Payout | [2] | $ 400,000 | |
[1]Full maximum payout assuming targets reached as set forth in the 2024 Performance Matrix.[2]Full maximum payout for achieving certain additional gross margin targets. |
SCHEDULE OF DEFERRED COMPENSA_2
SCHEDULE OF DEFERRED COMPENSATION ARRANGEMENT WITH INDIVIDUAL, SHARE BASED COMPENSATION (Details) - shares | 3 Months Ended | |||
Oct. 20, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | ||
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] | 223,216 | ||
Plan | 2021 Plan | |||
Vesting Schedule | Annually over 3 years from Grant Date | |||
Subsequent Event [Member] | Charles Scheiwe [Member] | Chief Financial Officer [Member] | 2021 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Options | [1] | 42,750 | ||
Plan | 2021 Plan | |||
Vesting Schedule | Annually over 3 years from Grant Date | |||
Subsequent Event [Member] | Jeffrey Mason [Member] | Vice President [Member] | 2021 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Options | [1] | 54,934 | ||
Plan | 2021 Plan | |||
Vesting Schedule | Annually over 3 years from 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. 20, 2023 USD ($) |
Subsequent Event [Member] | 2021 Equity Incentive Plan [Member] | |
Subsequent Event [Line Items] | |
ISO limitation | $ 100,000 |
SCHEDULE OF DEFERRED COMPENSA_4
SCHEDULE OF DEFERRED COMPENSATION SALARY INCREASES (Details) - Subsequent Event [Member] | Oct. 20, 2023 USD ($) | |
Ronald F. Dutt [Member] | Chief Executive Officer [Member] | ||
Subsequent Event [Line Items] | ||
Annual base salary | $ 300,000 | |
Accrued salaries | 375,000 | |
Charles Scheiwe [Member] | Chief Financial Officer [Member] | ||
Subsequent Event [Line Items] | ||
Annual base salary | 205,200 | [1] |
Accrued salaries | 205,200 | [1] |
Jeffrey Mason [Member] | Vice President [Member] | ||
Subsequent Event [Line Items] | ||
Annual base salary | 206,000 | |
Accrued salaries | $ 230,720 | |
[1]Plus an additional supplemental payment of $ 4,000 |
SCHEDULE OF DEFERRED COMPENSA_5
SCHEDULE OF DEFERRED COMPENSATION SALARY INCREASES (Details) (Parenthetical) | Oct. 20, 2023 USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Payment of salary | $ 4,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 3 Months Ended | ||||
Nov. 09, 2023 | Nov. 02, 2023 | Oct. 20, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Subsequent Event [Line Items] | |||||
Options exercise price | |||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility commitment fee amount | $ 2,000,000 | ||||
Financing rate percentage | 9% | ||||
Purchase of common stock, shares | 41,196 | ||||
Exercise price per share | $ 3.24 | ||||
Line of credit | $ 5,000,000 | ||||
Employee benefits and share based compensation | $ 60,000 | ||||
Subsequent Event [Member] | 2021 Equity Incentive Plan [Member] | |||||
Subsequent Event [Line Items] | |||||
Options exercise price | $ 3.36 |