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

Annual report pursuant to Section 13 and 15(d)

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Warrant Activity and Related Balances Outstanding

Warrant activity during the twelve months ended June 30, 2014 and related balances outstanding as of that date are reflected below:

	Number		Weighted Average Exercise Price Per Share		Remaining Contract Term (# years)
Shares purchasable under outstanding warrants at June 30, 2013, re-priced		2,907,347	$	0.27		2.96 - 3.34
Stock purchase warrants issued		19,891,000		0.20		2.95-4.70
Stock purchase warrants exercised		-		-
Shares purchasable under outstanding warrants at June 30, 2014		22,798,347	$	0.21		2.95 - 4.70

Stock Options Activity

Activity in options during the twelve months ended June 30, 2014 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, 2013		2,527,388	$	0.15		5.85
Granted		4,910,973
Exercised		(295,470)
Forfeited and cancelled		(807,196)
Outstanding at June 30, 2014		6,335,695	$	0.19		8.04
Exercisable at June 30, 2014		3,272,169	$	0.16		6.98

Employee Option Grants and Non-employee Option Grants

We allocated stock-based compensation expense included in the consolidated statements of operations for employee option grants and non-employee option grants as follows:

Years ended June 30,	2014		2013
Research and development	$	9,000	$	10,000
General and administration		230,000		84,000
Total stock-based compensation expense	$	239,000	$	94,000

Stock Options Valuation Assumptions

The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. The fair value of stock options was measured at the grant date using the assumptions (annualized percentages) in the table below:

	2014			2013
Expected volatility		100	%		100	%
Risk free interest rate		1.7% to 1.8	%		0.8% to 3.0	%
Forfeiture rate		17	%		5	%
Dividend yield		0	%		0	%
Expected term		5 years			5-10 years

Stock Options by Price Range

The following table summarizes by price range the number, weighted average exercise price and weighted average life (in years) of options outstanding and the number and weighted average exercise price of exercisable options as of June 30, 2014.

Price Range	Total Outstanding						Total Exercisable
	Number of Shares		Weighted Average				Number of Shares		Weighted Average Exercise Price
			Exercise Price		Life
$0.04 - $0.41		6,335,695	$	0.19		8.04		3,272,169	$	0.16

Total		6,335,695	$	0.19		8.04		3,272,169	$	0.16

- 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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