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

Annual report pursuant to Section 13 and 15(d)

FAIR VALUE MEASUREMENTS (Tables)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2015

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Following is a summary as of the reporting date of the fair values and applicable level within the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

At June 30, 2015:

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)
Description:
Warrant derivative liabilities	$	-	$	-	$	23,000

At June 30, 2014:

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)
Description:
Warrant derivative liabilities	$	-	$	-	$	571,000

Fair Value Measurements

The table below sets forth a summary of changes in the fair value of our (Level 3) financial instruments for the twelve months ended June 30, 2015:

Fair value measurements of warrants using significant unobservable inputs (Level 3)
Balance at June 30, 2014	$	571,000
Change in fair value of warrant liability		(548,000)
Balance at June 30, 2015	$	23,000

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table represents the Plan’s level 3 financial instruments at June 30, 2015, the valuation techniques used to measure the fair value of those financial instruments, and the significant unobservable inputs and the ranges of values for those inputs:

Instrument	Fair Value		Principal Valuation Technique	Significant Unobservable Inputs	Range of Significant Input Values

Warrant derivative liabilities	$	23,000	Monte Carlo simulation	Volatility		100	%

				Risk free rates		0.62% 0.76	%

				Probability of subsequent financing		95	%