Investors Alert: Flux Power Holdings Faces Scrutiny Over Accounting Errors

Law Firm Investigates Potential Securities Violations

The Law Offices of Frank R. Cruz have initiated an investigation into Flux Power Holdings, Inc. (“Flux Power” or the “Company”) FLUX. This inquiry concerns potential violations of federal securities laws that may impact shareholders who have experienced financial losses.

Significant Accounting Issues Disclosed

On September 5, 2024, Flux Power revealed that its previous audited financial statements for the year ending June 30, 2023, and unaudited statements for the quarters ending September 30, 2023, December 31, 2023, and March 31, 2024, should no longer be considered reliable. The company identified errors in how it accounted for inventory. These errors led to an overstatement of inventory, current assets, total assets, and accumulated deficit. Additionally, there were issues with the understatement of cost of sales and net loss, alongside an overstatement of gross profit. The company acknowledged a material weakness in its controls over financial reporting and disclosure procedures, raising concerns among investors.

Stock Price Decline Following the Announcement

Reacting to this news, Flux Power’s stock price dropped by $0.17, or 5.4%, finishing at $3.00 on September 6, 2024. This decline further impacted shareholders.

Further Delays and Continued Losses

On September 30, 2024, the Company announced that it would not meet the deadline for filing its Annual Report for the fiscal year ending June 30, 2024. Following this revelation, Flux Power’s stock fell another $0.18, or 5.9%, to close at $2.86 per share on October 1, 2024, resulting in more losses for investors.

For ongoing updates, follow us on Twitter: twitter.com/FRC_LAW.

Contact Information for Shareholders

If you have purchased Flux Power securities or have information related to these claims, and wish to learn more, please reach out to Frank R. Cruz from The Law Offices of Frank R. Cruz at 2121 Avenue of the Stars, Suite 800, Century City, California 90067. You can call at 310-914-5007, send an email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If contacting via email, please include your mailing address, phone number, and the number of shares purchased.

Note: This press release may be categorized as Attorney Advertising under certain laws and ethical guidelines.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241105471479/en/