Flux Power Holdings Begins Restatement Process Amid Inventory Write-Downs

Flux Power Holdings, Inc. FLUX, which specializes in advanced lithium-ion energy storage solutions for commercial and industrial equipment, has announced updates on its restatement process and upcoming SEC filings related to its fiscal fourth quarter and the year ending June 30, 2024, as well as the fiscal first quarter ending September 30, 2024.

Significant Inventory Write-Downs Identified

On September 5, 2024, Flux revealed it had identified about $1.7 million in excess and obsolete inventory. This issue mainly arose from product innovations during a period of swift expansion in recent years. A thorough review unearthed projected noncash inventory write-downs of around $4.4 million, plus an additional $0.5 million linked to warranties. The total adjustments come to approximately $4.9 million, affecting multiple quarters over several years. To accurately reflect this obsolete inventory, the company is restating its previously issued financial statements for fiscal year 2023 and interim periods of fiscal year 2024. These alterations will be included in its Annual Report on Form 10-K for the fiscal year that ended June 30, 2024. Flux has completed its internal review and is in collaboration with its auditors to file these documents as soon as possible.

Positive Outlook Amid Changes

CEO Ron Dutt emphasized that Flux is committed to its strategy, which focuses on expanding customer relationships, developing new technologies, and establishing partnerships. “Our outlook remains positive as we diligently follow our roadmap to achieve profitability by focusing on continued innovation, maintaining a disciplined cost structure and driving organic growth,” Dutt stated. The company aims to provide financial updates once the Fiscal Year 2024 10-K and First Quarter 2025 10-Q filings are completed.

Further Information Available

For more details, refer to the Form 12b-25 filed with the Securities and Exchange Commission today and the Form 8-K filed on September 5, 2024.

About Flux Power Holdings, Inc.

Flux Power FLUX develops and sells advanced lithium-ion energy storage solutions. Their products cater to various sectors, including material handling and airport ground support equipment. By providing lithium-ion battery packs that often outperform traditional lead-acid and propane options, Flux Power aims to lower costs and improve sustainability. These innovations significantly reduce CO2 emissions and enhance ESG metrics for fleets. For more information, visit www.fluxpower.com.

Forward-Looking Statements

This press release includes “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause actual results to differ from projected outcomes. Readers should not place undue reliance on these forward-looking statements, which represent the company’s expectations only as of the date of this release. Flux Power does not commit to updating these statements unless required by law.

Flux, Flux Power, and logos are trademarks of Flux Power Holdings, Inc. All other brands and trademarks are the property of their respective owners.

Follow us at:

Blog: Flux Power Blog
News: Flux Power News
Twitter: @FLUXpwr
LinkedIn: Flux Power

View source version on businesswire.com: https://www.businesswire.com/news/home/20241115646468/en/