Flux Power Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 8 - Stockholders' Deficit (Tables)

Note 8 - Stockholders' Deficit (Tables)

12 Months Ended

Jun. 30, 2018

Warrant detail for the year ended June 30, 2018 is reflected below:

	Number of Warrants			Weighted Average Exercise Price Per Warrant		Remaining Contract Term (# years)
Warrants outstanding and exercisable at June 30, 2017		2,342,590		$	1.97		0.12 - 1.55
Warrants issued		—		$	—		—
Warrants exchanged		(141,643	)	$	0.60		—
Warrants expired		(460,157	)	$	2.15		—
Warrants outstanding and exercisable at June 30, 2018		1,740,790		$	2.03		0.74

Warrant detail for the year ended June 30, 2017 is reflected below:

	Number of Warrants			Weighted Average Exercise Price Per Warrant		Remaining Contract Term (# years)
Warrants outstanding and exercisable at June 30, 2016		2,804,010		$	2.00		0.39 - 2.50
Warrants exchanged		(271,420	)	$	1.40		—
Warrants expired		(190,000	)	$	3.00		—
Warrants outstanding and exercisable at June 30, 2017		2,342,590		$	1.97		0.12 - 1.55

Schedule of Stock Option Activity

Activity in stock options during the year ended June 30, 2018 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, 2017		716,277		$	1.10		7.09
Granted		2,925,106			0.78
Exercised		-
Forfeited and cancelled		(96,910	)	$	0.57
Outstanding at June 30, 2018		3,544,473		$	0.83		8.87
Exercisable at June 30, 2018		1,356,806		$	0.74		7.71

Activity in stock options during the year ended June 30, 2017 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, 2016		900,402		$	1.13
Granted		-
Exercised		-
Forfeited and cancelled		(184,125	)	$	1.63
Outstanding at June 30, 2017		716,277		$	1.10		7.09
Exercisable at June 30, 2017		589,476		$	1.11		6.80

Schedule of Stock-based Compensation

Years ended June 30,	2018		2017
Research and development	$	96,000	$	13,000
General and administrative		159,000		27,000
Total stock-based compensation expense	$	255,000	$	40,000

Schedule of Stock Options Valuation Assumptions

	2018	2017
Expected volatility	138% -143%		100%
Risk free interest rate	1.76% - 2.63%		1.31%
Forfeiture rate	20% -2 3%		17%-24%
Dividend yield	0%		0%
Expected term (years)	5		3

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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