Flux Power Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)

6 Months Ended

Dec. 31, 2019

Warrant detail for the six months ended December 31, 2019 is reflected below:

	Number of Warrants			Weighted Average Exercise Price Per Warrant		Remaining Contract Term (# years)
Warrants outstanding and exercisable at June 30, 2019		8,333		$	20.00		0.25
Warrants issued		-		$	-		-
Warrants exercised		-		$	-		-
Warrants forfeited		(8,333	)	$	20.00		-
Warrants outstanding and exercisable at December 31, 2019		-		$	-		-

Warrant detail for the six months ended December 31, 2018 is reflected below:

	Number of Warrants			Weighted Average Exercise Price Per Warrant		Remaining Contract Term (# years)
Warrants outstanding and exercisable at June 30, 2018		174,079		$	20.30		0.74
Warrants issued		-		$	-		-
Warrants exercised		-		$	-		-
Warrants exchanged		(7,996	)	$	14.80		-
Warrants forfeited		-		$	-		-
Warrants outstanding and exercisable at December 31, 2018		166,083		$	20.60		0.19

Schedule of Stock Options Activity

Activity in stock options during the six months ended December 31, 2019, 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, 2019		580,171		$	11.05		8.59
Granted		-		$	-
Exercised		(4,437	)	$	4.69
Forfeited and cancelled		(7,093	)	$	12.32
Outstanding at December 31, 2019		568,641		$	11.08		8.07
Exercisable at December 31, 2019		377,428		$	10.47		7.71

Activity in stock options during the six months ended December 31, 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, 2018		354,447		$	8.30		8.87
Granted		40,117		$	17.50
Exercised		-		$	-
Forfeited and cancelled		(18,000	)	$	4.60
Outstanding at December 31, 2018		376,564		$	9.50		8.48
Exercisable at December 31, 2018		188,494		$	8.30		7.69

Schedule of Stock-Based Compensation Expenses

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

	For the Three Months Ended December 31				For the Six Months Ended December 31,
	2019		2018		2019		2018
Research and development	$	54,000	$	17,000	$	108,000	$	32,000
General and administration		395,000		226,000		792,000		375,000
Total stock-based compensation expense	$	449,000	$	243,000	$	900,000	$	407,000

Schedule of Fair Value Assumptions of Stock Options

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:

Six months ended December 31,	2019		2018
Expected volatility		111.4% - 112.2%		142% - 143%
Risk free interest rate		2.43% - 2.45%		2.73% - 2.82%
Forfeiture rate		20.0%		20.0%
Dividend yield		0%		0%
Expected term (years)		5.61		5