Flux Power Investor Presentation

OTCQB: FLUX

OTCQB: FLUX

Next-Generation Battery Technology for

Material Handling & Other Industrial Applications

www.fluxpwr.com

Investor Presentation

OTCQB: FLUX March 2016

OTCQB: FLUX

Forward Looking Statements: This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements as to the Company’s future results of operations and financial position, planned products and services, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “aims,” “predicts,” ”potential,” “seeks,” attempts,” “poised“ or “continues” or the negative of these terms or other similar words. These statements are only predictions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Also, these forward-looking statements represent the Company’s estimates and assumptions only as of the date of this presentation. The Company assumes no obligation to update any forward-looking statements after the date of this presentation. This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company has not independently verified the statistical and other industry data generated by independent parties and contained in this presentation and, accordingly, it cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of its future performance and the future performance of the industries in which it operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by the Company.

SAFE HARBOR LANGUAGE

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OTCQB: FLUX

FLUX OVERVIEW

Value Proposition •  Significant performance, efficiency and cost benefits

compared to entrenched lead-acid power

•  UL Listing for small forklift packs received January 2016 (safety benefits)

Experience •  First mover in Class III lift truck market •  OEM technical approvals for ~ 75% of pallet jacks

•  5 years of engineering progress

•  +$7M in energy storage product sales to date

Roadmap to Other Industrial Applications •  Larger lift trucks, tug and tow •  Specialty equipment

Flux Develops Next-Generation Battery Technology Delivering

Improved Efficiency and Performance in Industrial Markets

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OTCQB: FLUX

SOLVING ENERGY STORAGE DILEMMA

Solution Flux LiFT Packs perform better •  Longer run times and lifespan •  Faster & opportunity charging •  Lower total cost of ownership •  Virtually no maintenance •  Environmentally friendly

Problem Lead-acid performance and cost •  Runtime & performance limitations •  16 Hour charge / cooling cycle •  Short life span •  Required water maintenance is

problematic and unreliable •  Environmental & safety issues

Flux removes Cost and Headaches from Supply Chains 4

OTCQB: FLUX

DEBUT LIFT PACK PRODUCT LINE

Flux LiFT Packs New approach to powering electric forklifts

Building industry knowledge and reputation within largest lift equipment market by units

Road map to larger and higher value equipment

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OTCQB: FLUX

MARKET OPPORTUNITY IS LARGE

Year Class III

2010 36,637

2011 42,213

2012 47,339

2013 52,776

2014 52,396 Total* 231,361

Total number of Class III trucks in use today assuming 5 year lifespan

United States Factory Shipments ** Industrial Truck Association

EMEA

Americas

Asia

Global Motive Power Battery Market (2014)

$1.5 billion

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OTCQB: FLUX

CURRENT PRODUCT FOCUS

Class III Forklift Type

Average LiFT Pack Price

New Unit Sales/Yr

Total US Units

Total LiFT Pack

Market Opportunity

“Walkie” Pallet Jack $2,800 30,000 120,000 $400M

End Rider $7,500 25,000 108,000 $800M

Class III Total $1.2B

“Walkie” Pallet Jack Launched Jan. 2014

End Rider – Prototype Beta Mar. 2015 7

OTCQB: FLUX

FUTURE MARKETS

Segment Average Price

New Unit Sales/Year

Total US Units

Market Opportunity

Other Class III $9,000E 5,000 25,000E $225M

Class I & II $14,000E 30,000 150,000E $2.1B

Airline Tug & Tow $20,000E 1,000E 5,000E $100M

Robotics $60,000 100 E -- $6M

Portable Military $2,500 10,000 E -- $25M

Total $2.5B

Class I Forklift Tug & Tow

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OTCQB: FLUX

0

50

100

150

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400

450

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 2015 FY 2016E

‘Walkie’ LiFT Pack Shipments Gaining Momentum

OEM & Major Customer Approval

FY 2017E

Sales to Accelerate Following UL APPROVAL and Model Changeover

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UL Approval

* Distributor launch Q4 2014

Initiate Model Changeover

2% of Walkie mkt.

OTCQB: FLUX

CUSTOMER PIPELINE TRACTION

Flux  Power  Holdings,  Inc.  Customer  Pipeline  Trac;on  –  Illustra;on  for  ‘Walkies’  only  Data  as  of  March  1,  2016  

Industry  Segment   Number  of  Customers  

Number  of  Firms  

Currently  Pilo;ng  

Total  Customers/  

Firms  Pilo;ng  

Customer  Revenue  (es;mate)  

Total  #  of  Customer  Walkies  (es;mate)  

Actual  LiFT  Packs  Sold  To  Date  

FY  2017    LiFT  Pack  

Unit  Forecast  

FY  2017  LiFT  Pack  Revenue  Forecast  

Beverage   2   -­‐-­‐   2   >$100B   7,000     70   301    $872,900    

Consumer  Products   3   1   4   >$4.4B   327     34   157    $455,300    

Food  &  Beverage     7   5   12   >$98B   6,842     65   282    $817,800    

Grocery   3   5   8   >$59B   6,390     32   364    $1,055,600    

Logis;cs/Trucking   0   2   2   $9.0B   900     0   132    $382,800    

Retail  -­‐  Specialty   1   -­‐-­‐   1   $9.0B   600     5   14    $40,600    

Total    *   16   13   29   -­‐-­‐   22,059         206       1,250   3,625,000  

10 •  Total 434 sold to date incl other customers

OTCQB: FLUX

GROSS MARGIN ROADMAP

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GOAL Reduce COGS at least 30% Target Date for completion: September 2016

INITIATIVES - Cells - Enclosure - BCM - Charger - Weights

Other Pricing Actions = Additional Revenue

UL, WIFI, Pressure Washable, etc…

Plan includes both ON and / or OFF shore resources

OTCQB: FLUX

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HI

In process

NJ MO

IA

WI

IL IN OH PA

AL GA SC

FL

NC

VA WV

MD

CT RI

MA

AR

LA

MS

TN

KY

CO KS

OK

WA

OR

NV UT

AZ NM

TX

WY ID

MT ND

SD

NE

MN

MI

VT

NH

ME

DE

NY

CA

To be identified

Covered

EXPANDING DISTRIBUTION NETWORK

AK

From 4 States in Jan 2014… to 36 States Today

OTCQB: FLUX

FLUX POWER LEADERSHIP

Ron Dutt: CEO, CFO, Director 25+ year record of strategic and financial management outperformance at DHL, Ford Motor Company, Visa, Directed Electronics, Fritz Co.'s and SOLA Int’l. Experience leading companies from early stage to >$1B in revenues.

Michael Johnson: Director CEO of Esenjay Petroleum Corp, a provider of Texas Gulf Coast oil and gas exploration for more than 35 years. He is the largest shareholder of Flux Power.

Chris Anthony: Chairman, Director Entrepreneur and co-founder/former COO of EV pioneer, Aptera Motors and founder of Epic Boats, a top-four wake boat brand.

Sir Nigel Burney: Advisory Board Member Entrepreneur and professional investor with a wide network of global business relationships, specializing in financing microcap businesses. Founded and ran a successful publishing business for over 20 years. Law degree from Trinity College, Cambridge.

Steven Capelli: Advisory Board Member 25+ years of experience leading, implementing and advising high tech companies in operational improvements leading to revenue growth, margin improvements and strategic acquisitions. Senior leadership roles at Sybase and Pyramid Technology.

Paulus Geantil: Director of Engineering Expert engineer in embedded systems, electrical design, robotics, and system integration, and has patents across various technologies. He has led the development of Flux Power’s revolutionary proprietary technology.

James Gevarges: Director CEO and co-founder of LHV Power Corp, a leading provider since 1991 of Low and High Voltage power supplies. Bachelor's of Science degree in electrical engineering from Louisiana State University.

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Steve Dickson: Director of Sales Over 15 years sales experience in energy storage including Powin Energy, Stem Energy, Ecotatily and Infrastructure Networks. Expert in Battery Energy Storage Solutions sector, including marketing and general management experience.

OTCQB: FLUX

FINANCIAL SNAPSHOT

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Stock Price (3/5/16) $0.04

52 Week Range $0.02 –$ 0.07

Shares Outstanding 150M

Ave. Volume (10 day) 100k

Market Cap $7M

Revenue

FY 2015 $0.7M

FY 2016 (E) $1M (E)

FY 2017 (E) $6M (E)

Insider Holdings ~78%

OTCQB: FLUX

OTCQB: FLUX

STRONG MARKET POSITION

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•  Growing Awareness of Flux and LiFT Pack ROI •  Broad dissatisfaction with lead-acid

First Mover in Lithium Storage for Motive Power

$1.2B Addressable Market for Walkies + End Riders

•  Major OEM Technical Approvals - Toyota/Raymond & Crown = ~75% of walkie pallet jack market

•  Approved for purchase by North American operations of global beverage co. •  UL Listing should accelerate uptake

Strong Market Acceptance: Over 30 major accounts to date

•  Conclusion of current model changeover overs enhancements to durability and reliability paired with safety features following UL Listing

•  Product roadmap for feature & margin improvements + launch of more complex, higher revenue solutions

Design, technology and market expertise built over several years

Experienced leadership, focused plan, solid market engagement + financial discipline

OTCQB: FLUX

OTCQB: FLUX

“Innovative lithium energy storage solutions… creating value

for Flux Power customers, partners and shareholders”

www.fluxpwr.com

Investor Contact: Chris Eddy Catalyst Global 212 924 9800 [email protected]

Thank You