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Flux Power Holdings, Inc.

FLUX
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Business Summary

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 . New lift truck sales reached approximately 2.4 million units worldwide in 2025, with approximately 435,000 units sold in the Americas . Electric-powered models represented approximately seventy-one percent (71%) of North American retail orders in 2024 . The global lift truck market is expected to grow at a compound annual growth rate of approximately 7.0% from 2025 through 2030 .

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 . Competitive factors include performance, reliability, durability, safety, and price . The company believes its UL Listing provides a significant differentiating competitive advantage , and its proprietary battery management system, which is agnostic to battery cell chemistry, allows rapid adaptation to technology changes . The company has established selling relationships with large forklift and GSE fleet customers .

The company generates revenue through the design, development, manufacture, and sale of advanced lithium-ion energy storage solutions for industrial and commercial sectors . Revenue is primarily transactional, derived from product sales to OEMs, forklift equipment dealers, battery distributors, and end users . The company also integrates value-add software, including its SkyEMS telemetry solution, across its battery portfolio to generate revenue streams . 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 .

The company offers a range of energy storage packs for lift trucks, industrial equipment including airport GSE, and other commercial applications . Its product line includes small, medium, and large pack forklift products built on three core design modules . The company also offers 24-volt onboard chargers for Class 3 Walkie Pallet Packs and smart wall-mounted chargers for larger applications . During fiscal 2026, the company completed a new forklift OEM approval and emphasized higher energy capacities, simplified service access, and cost efficiencies . 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 .

The company's energy storage packs use lithium iron phosphate (LiFePO4) battery cells sourced from a single supplier in China . The company's proprietary battery management system (BMS) optimizes performance and provides a platform for customized telemetry . The company has received three issued U.S. patents on advanced technology related to lithium-ion energy storage solutions . 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 .

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 . 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 . 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 . The company also resolved a stockholder derivative action with defendants agreeing to pay $425,000 in attorneys' fees and expenses . 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 .

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 . 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 . The company's order backlog was approximately $3.7 million as of June 30, 2026 . The company's independent registered public accounting firm included an explanatory paragraph relating to the company's ability to continue as a going concern .

Business Outlook

The company's near-term priority is to achieve profitability . 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 . The company expects to continue experiencing losses in the near future until sufficient revenue is generated .

The company plans to expand its product mix through research and development, focusing on adaptable, reliable, and cost-effective energy storage solutions . The company intends to expand its direct sales team to support future sales growth . 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 . The company plans to continue introducing designs that increase part commonality and improve serviceability, which it believes will enhance gross profit margins .

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

The company's manufacturing and assembly operations are completed within its ISO 9001 certified facility in Vista, California, which includes six assembly lines . The company sources battery cells from a single manufacturer in China and the remainder of components primarily from numerous vendors in the United States . The company is continuing to monitor and test potential new battery cell technologies to mitigate supply chain risks . 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 .

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

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 . 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 . The company is actively seeking alternative sourcing arrangements to reduce China sourcing .

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 . The company is working with GBC to negotiate an amendment or obtain a waiver, but there can be no assurance of success . GBC has allowed continued use of the line of credit during negotiations but can choose to limit or discontinue availability at any time .

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

Risk Factors

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 . 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 . 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 . The company's customer concentration is extreme, with two customers representing 71% of total revenues in fiscal 2026 , and the loss of a significant customer would have an adverse effect on revenues . 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 .

Management Priorities

Management's message emphasizes the near-term priority of achieving profitability through supply chain improvements, gross margin expansion initiatives, and cost reduction efforts . 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 . 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 .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Industry Overview
  2. [2] Item 1, Business — Industry Overview
  3. [3] Item 1, Business — Industry Overview
  4. [4] Item 1, Business — Industry Overview
  5. [5] Item 1, Business — Competition
  6. [6] Item 1, Business — Competition
  7. [7] Item 1, Business — Competition
  8. [8] Item 1, Business — Competition
  9. [9] Item 1, Business — Our Strategy
  10. [10] Item 1, Business — Overview
  11. [11] Item 1, Business — Customers
  12. [12] Item 1, Business — Strategic Initiatives
  13. [13] Item 1, Business — Overview
  14. [14] Item 1, Business — Our Products
  15. [15] Item 1, Business — Our Products
  16. [16] Item 1, Business — Our Products
  17. [17] Item 1, Business — New Product Updates
  18. [18] Item 1, Business — New Product Updates
  19. [19] Item 1, Business — Our Products
  20. [20] Item 1, Business — Our Business
  21. [21] Item 1, Business — Intellectual Property
  22. [22] Item 1, Business — Intellectual Property
  23. [23] Item 1, Business — Committed Equity Facility
  24. [24] Item 1, Business — Resolution of Legal Proceedings
  25. [25] Item 1, Business — Resolution of Legal Proceedings
  26. [26] Item 1, Business — Resolution of Legal Proceedings
  27. [27] Item 1, Business — Revolving Line of Credit
  28. [28] Item 1A, Risk Factors — We have a history of losses
  29. [29] Item 1A, Risk Factors — We have a history of losses
  30. [30] Item 7, MD&A — Business Overview
  31. [31] Item 1A, Risk Factors — Going concern
  32. [32] Item 1, Business — Strategic Initiatives
  33. [33] Item 1A, Risk Factors — Going concern
  34. [34] Item 1A, Risk Factors — History of losses
  35. [35] Item 1, Business — Our Strategy
  36. [36] Item 1, Business — Selling and Marketing
  37. [37] Item 1, Business — Business Updates
  38. [38] Item 1, Business — New Product Updates
  39. [39] Item 1, Business — Strategic Initiatives
  40. [40] Item 1, Business — Strategic Initiatives
  41. [41] Item 1, Business — Our Strategy
  42. [42] Item 1, Business — Manufacturing and Assembly
  43. [43] Item 1, Business — Manufacturing and Assembly
  44. [44] Item 1, Business — Manufacturing and Assembly
  45. [45] Item 1, Business — Manufacturing and Assembly
  46. [46] Item 1, Business — Research and Development
  47. [47] Item 1, Business — Research and Development
  48. [48] Item 1A, Risk Factors — Dividends
  49. [49] Item 1, Business — Business Updates
  50. [50] Item 1A, Risk Factors — Tariffs
  51. [51] Item 1A, Risk Factors — Tariffs
  52. [52] Item 1, Business — Revolving Line of Credit
  53. [53] Item 1, Business — Revolving Line of Credit
  54. [54] Item 1, Business — Revolving Line of Credit
  55. [55] Item 1, Business — Nasdaq Stock Market Notices
  56. [56] Item 1, Business — Nasdaq Stock Market Notices
  57. [57] Item 1, Business — Nasdaq Stock Market Notices
  58. [58] Item 1A, Risk Factors — Going concern
  59. [59] Item 1A, Risk Factors — Default under GBC Credit Facility
  60. [60] Item 1A, Risk Factors — Supplier concentration and tariffs
  61. [61] Item 1A, Risk Factors — Customer concentration
  62. [62] Item 1A, Risk Factors — Customer concentration
  63. [63] Item 1A, Risk Factors — Nasdaq non-compliance
  64. [64] Item 1, Business — Strategic Initiatives
  65. [65] Item 1, Business — Strategic Initiatives
  66. [66] Item 1, Business — Business Updates
  67. [67] Item 1A, Risk Factors — History of losses
  68. [68] Item 1A, Risk Factors — History of losses
  69. [69] Item 7, MD&A — Business Overview
  70. [70] Item 1, Business — Customers
  71. [71] Item 1, Business — Customers
  72. [72] Item 1, Business — Suppliers
  73. [73] Item 1, Business — Suppliers
  74. [74] Item 2, Properties

Analysis on 8/20/2026