Item 1.01 Entry Into A Material Definitive Agreement.
On June 11, 2014, we entered into a Loan Conversion Agreement ("Conversion
Agreement") with Esenjay Investments LLC, our major stockholder and principal
credit line holder ("Esenjay"), pursuant to which we agreed to issue (1)
12,100,000 shares of our common stock (based on $0.24 per share) (the "Shares"),
and (2) a warrant to purchase up to 1,900,000 shares of our common stock for a
term of 3 years at an exercise price of $0.30 per share to Esenjay ("Warrant"),
in exchange for the cancellation of a total principal amount of $2,586,000
("Principal Amount") outstanding under the Secondary Revolving Promissory Note,
the Bridge Loan Promissory Note and the Unrestricted Line of Credit, with
Esenjay, plus $304,070 in accrued interest on such Principal Amount as of June
4, 2014 (the accrued interest together with the Principal Amount referred to as
the "Debt"). Under the Conversion Agreement, Esenjay agreed to waive any
interests accrued on the Principal Amount after June 4, 2014; and agreed to
accept the Shares and Warrant as payment of Debt in complete and full
Michael Johnson, our director, is a director and shareholder of Esenjay as
further described in our Form 10-K for the fiscal year ended June 30, 2103.
The foregoing description of the terms of the Conversion Agreement does not
purport to be complete and is qualified in its entirety by reference to the full
text of the respective agreement, a copy of which is filed hereto as Exhibit
Item 3.02 Unregistered Sales of Equity Securities.
The information provided in response to Item 1.01 of this report is incorporated
by reference into this Item 3.02. The securities offered and sold to Esenjay
have not been registered under the Securities Act of 1933, as amended
("Securities Act"), and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of
the Securities Act. The securities were offered and sold to investors in
reliance upon exemptions from registration pursuant to Rule 506 promulgated
thereunder. Esenjay qualified as an "accredited investor" (as defined by Rule
501 under the Securities Act).
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Exhibit Description
10.1 Loan Conversion Agreement
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Flux Power Holdings, Inc.,
A Nevada Corporation
Dated: June 11, 2014 /S/Ronald DuttRonald Dutt, Chief Executive Officer and
Interim Chief Financial Officer