Flux Power Holdings, Inc. operates in the industrial and commercial lithium-ion energy storage market, focusing on material handling and airport ground support equipment. The industry is experiencing a shift from lead acid and propane-based solutions to lithium-ion technology, driven by significant price declines in lithium-ion batteries, which averaged $1,160 per kilowatt hour in 2010, dropped to $115 per kWh in 2024, and fell an additional 8% in 2025 to $108/kWh ¹. New lift truck sales reached approximately 2.4 million units worldwide in 2025, with approximately 435,000 units sold in the Americas ². Electric-powered models represented approximately seventy-one percent (71%) of North American retail orders in 2024 ³. The global lift truck market is expected to grow at a compound annual growth rate of approximately 7.0% from 2025 through 2030 ⁴.

The company faces competition from major lead acid battery manufacturers including Stryten Energy, East Penn Manufacturing Company, EnerSys Corporation, and Crown Battery Corporation, as well as lithium-ion solution providers such as Electrovaya, EnerSys, Ethium by EControls, Green Cubes Technology, and Stromcore Energy ⁵. Competitive factors include performance, reliability, durability, safety, and price ⁶. The company believes its UL Listing provides a significant differentiating competitive advantage ⁷, and its proprietary battery management system, which is agnostic to battery cell chemistry, allows rapid adaptation to technology changes ⁸. The company has established selling relationships with large forklift and GSE fleet customers ⁹.

The company generates revenue through the design, development, manufacture, and sale of advanced lithium-ion energy storage solutions for industrial and commercial sectors ¹⁰. Revenue is primarily transactional, derived from product sales to OEMs, forklift equipment dealers, battery distributors, and end users ¹¹. The company also integrates value-add software, including its SkyEMS telemetry solution, across its battery portfolio to generate revenue streams ¹². The company's modular and scalable design allows different configurations of lithium-ion energy storage solutions to be paired with its proprietary wireless battery management system ¹³.

The company offers a range of energy storage packs for lift trucks, industrial equipment including airport GSE, and other commercial applications ¹⁴. Its product line includes small, medium, and large pack forklift products built on three core design modules ¹⁵. The company also offers 24-volt onboard chargers for Class 3 Walkie Pallet Packs and smart wall-mounted chargers for larger applications ¹⁶. During fiscal 2026, the company completed a new forklift OEM approval and emphasized higher energy capacities, simplified service access, and cost efficiencies ¹⁷. In fiscal 2025, the company introduced the G96, a higher-voltage battery system for the Airline and Aviation industry, and improved its G80 design for ground support equipment ¹⁸.

The company's energy storage packs use lithium iron phosphate (LiFePO4) battery cells sourced from a single supplier in China ¹⁹. The company's proprietary battery management system (BMS) optimizes performance and provides a platform for customized telemetry ²⁰. The company has received three issued U.S. patents on advanced technology related to lithium-ion energy storage solutions ²¹. The company has obtained U.S. federal trademark registrations for Flux, Flux Power, Flux Power logo, Lift, and SkyBMS, with a pending application for SkyEMS ²².

During fiscal 2026, the company entered into a Committed Equity Facility with Roth Principal Investments, LLC, allowing the sale of up to $40,000,000 of common stock ²³. The company also completed a private placement of 258,144 pre-funded warrants to purchase Series A Preferred Stock for gross proceeds of $5 million ²⁴. The company entered into a settlement agreement for the securities class action, establishing a $1.75 million escrowed settlement fund, fully funded by liability insurers ²⁵. The company also resolved a stockholder derivative action with defendants agreeing to pay $425,000 in attorneys' fees and expenses ²⁶. The company entered into Amendment No. 6 to the GBC Credit Facility, extending the maturity date to September 15, 2025, which was subsequently automatically extended to July 31, 2027 upon conversion of the Cleveland Note into equity ²⁷.

For the fiscal year ended June 30, 2026, the company reported net losses of $7.4 million, compared to net losses of $6.7 million in fiscal 2025 ²⁸. As of June 30, 2026, the company had a cash balance of $0.3 million, down from $1.3 million as of June 30, 2025 ²⁹. The company's order backlog was approximately $3.7 million as of June 30, 2026 ³⁰. The company's independent registered public accounting firm included an explanatory paragraph relating to the company's ability to continue as a going concern ³¹.

The company's near-term priority is to achieve profitability ³². Management believes existing cash, along with forecasted gross margin and proceeds believed available under the Committed Equity Facility, will not be sufficient to meet anticipated capital requirements to fund planned operations for the next twelve months ³³. The company expects to continue experiencing losses in the near future until sufficient revenue is generated ³⁴.

The company plans to expand its product mix through research and development, focusing on adaptable, reliable, and cost-effective energy storage solutions ³⁵. The company intends to expand its direct sales team to support future sales growth ³⁶. The company is also expanding its deployment of its telemetry solution, providing customers with state of health, better asset management, and a platform for more timely management of service and maintenance requirements ³⁷. The company plans to continue introducing designs that increase part commonality and improve serviceability, which it believes will enhance gross profit margins ³⁸.

The company is pursuing supply chain improvements and other gross margin expansion initiatives, including redesigning its product line and other cost reduction initiatives ³⁹. The company is implementing advanced product design through modular concepts and integrating value-add software across its battery portfolio to generate revenue streams ⁴⁰. The company is also working to expand its supply chain and customer partnerships and seek further partnerships and/or acquisitions that provide synergy ⁴¹.

The company's manufacturing and assembly operations are completed within its ISO 9001 certified facility in Vista, California, which includes six assembly lines ⁴². The company sources battery cells from a single manufacturer in China and the remainder of components primarily from numerous vendors in the United States ⁴³. The company is continuing to monitor and test potential new battery cell technologies to mitigate supply chain risks ⁴⁴. The company's BMS was developed to be agnostic to both a battery's lithium-ion chemistry and cell manufacturer, providing flexibility for diversification alternatives ⁴⁵.

The company anticipates that research and development will continue to be a substantial part of its strategic priorities in the future ⁴⁶. The company's research and development efforts are focused on improving performance, reliability, and durability of its energy storage solutions and lowering production costs ⁴⁷. The company does not anticipate paying cash dividends on shares of its common stock in the foreseeable future ⁴⁸.

The company faces significant headwinds from U.S. government tariffs on lithium-ion batteries and other component parts imported from China, which have negatively impacted revenues, profitability, and cash flows ⁴⁹. The company has incurred and anticipates incurring incremental tariff costs, additional costs on component parts, and costs as a result of import pauses and supply-chain interruptions ⁵⁰. The company is actively seeking alternative sourcing arrangements to reduce China sourcing ⁵¹.

The company is currently in default under the Revolving Note under the GBC Credit Facility due to failure to comply with the minimum EBITDA financial covenant for the trailing three-month period ended February 28, 2026 ⁵². The company is working with GBC to negotiate an amendment or obtain a waiver, but there can be no assurance of success ⁵³. GBC has allowed continued use of the line of credit during negotiations but can choose to limit or discontinue availability at any time ⁵⁴.

The company is not currently in compliance with the Nasdaq Minimum Bid Price Requirement, having received a notice on July 24, 2026 ⁵⁵. The company has 180 calendar days to regain compliance, and may consider implementing a reverse stock split if appropriate ⁵⁶. The company no longer satisfies the Market Equity Requirement but satisfied the Stockholders' Equity Requirement as of June 30, 2026 ⁵⁷.

Management's message emphasizes the near-term priority of achieving profitability through supply chain improvements, gross margin expansion initiatives, and cost reduction efforts ⁶⁴. The company is focused on achieving profitable growth, executing on operational efficiencies, implementing a solutions selling approach, building the right products to meet customer needs, and integrating value-add software across its battery portfolio ⁶⁵. Management acknowledges the significant challenges posed by tariffs, the GBC Credit Facility default, and the need to raise additional capital, while expressing commitment to maintaining operational flexibility and adapting the supply chain to navigate uncertainties ⁶⁶.

For the fiscal year ended June 30, 2026, the company reported net losses of $7.4 million, compared to net losses of $6.7 million in fiscal 2025 ⁶⁷. As of June 30, 2026, the company had a cash balance of $0.3 million, down from $1.3 million as of June 30, 2025 ⁶⁸. The company's order backlog was approximately $3.7 million as of June 30, 2026 ⁶⁹. During the fiscal year ended June 30, 2026, the company had two major customers that together represented approximately $30,065,000 or 71% of total revenues ⁷⁰. During the fiscal year ended June 30, 2025, three major customers together represented approximately $48,288,000 or 73% of total revenues ⁷¹. The company had one supplier who accounted for approximately $7,002,000 or 20% of total purchases during fiscal 2026 ⁷², compared to approximately $15,902,000 or 28% of total purchases during fiscal 2025 ⁷³. Total rent expense was approximately $975,000 and $929,000 for the fiscal years ended June 30, 2026 and 2025, respectively ⁷⁴.

The company faces substantial doubt about its ability to continue as a going concern, with existing cash and projected cash needs insufficient to fund operations for the next twelve months ⁵⁸. The company is in default under the GBC Credit Facility, which is secured by substantially all of its tangible and intangible assets, and GBC may declare commitments terminated and obligations immediately due and payable ⁵⁹. The company is heavily dependent on a single supplier in China for lithium-ion battery cells, with no qualified alternative sources, and tariffs have negatively impacted revenues, profitability, and cash flows ⁶⁰. The company's customer concentration is extreme, with two customers representing 71% of total revenues in fiscal 2026 ⁶¹, and the loss of a significant customer would have an adverse effect on revenues ⁶². The company is not in compliance with Nasdaq's Minimum Bid Price Requirement and faces potential delisting, which could adversely affect stock price and market liquidity ⁶³.