Flux Power Holdings, Inc. (OTCQB: FLUX), Vista, California, a developer of advanced lithium-ion batteries for commercial and industrial equipment including electric forklifts and airport ground support equipment (GSE), has reported results for its fiscal year 2020 third quarter ended March 31, 2020 (Q3 ‘20).
“To achieve record revenue in Q3 ’20, in spite of the COVID-19 environment and our implementation of a range of measures to ensure the safety and health of our staff and business, is a testament to the strength and resilience of our team,” commented Flux Power CEO Ron Dutt. “Our relationships with customers and supply chain remain strong, reflecting the continued demands for material handling nation-wide.”
- Flux Power anticipates continued momentum for Q4 ’20 and the remainder of this calendar year. While there is unprecedented uncertainty with the economy, Flux Power is experiencing only limited order deferrals from segments such as airport ground support equipment.
- Flux Power’s gross profit margin improvement program is gaining traction as Flux Power begins to implement a series of clearly defined activities to advance technology, design, production and purchasing efficiencies.
Q3 FY 2020 Operating Results
Q3 ’20 revenue increased 188% to $5.1M compared to $1.8M in Q3 ’19. As the customer base increases, Flux Power anticipates seeing a smoother, more stable, growth trajectory based on increasing customers and orders.
Q3 ’20 gross profit improved to $649,000 compared to $61,000 in Q3 ’19, principally reflecting higher sales volumes, vendor pricing improvement from increased volumes, and early impact of the Flux Power’s gross margin improvement program.
Selling and administrative expenses increased to $2.6M in Q3 ’20 from $2.4M in Q3 ’19, principally reflecting increased staffing to support expanded operations and growth. Research & development expenses increased to $1.5M in Q3 ’20, compared to $1.4M in Q3 ’19 as Flux Power progressed development of higher capacity battery packs for larger equipment.
Interest expenses increased by $413,000 to $503,000 in Q3 ’20 reflecting short term borrowings to provide working capital for growth.
Flux Power’s Q3 ’20 net loss increased to $4.0M from a loss of $3.8M in Q3 ’19, principally reflecting higher operating costs and interest expenses, partially offset by the improvement in gross profit.
At March 31, 2020, borrowings under Flux Power’s $12.0M Short Term Line of Credit provided by Esenjay Investments LLC, owned by Flux Power’s largest shareholder and other lenders, were $11.6M, due June 30, 2020, and two second short-term borrowings were $1.9M.
Flux Power continues to seek additional capital through private placements of convertible debt and/or equity securities, and public offerings of our equity, to fund operations.
About Flux Power Holdings, Inc.
Flux Power develops advanced lithium-ion batteries for commercial and industrial uses, including its first-ever UL 2271 Listed lithium-ion “LiFT Pack” forklift batteries. Flux Power solutions utilize its proprietary battery management system and in-house engineering and product design. Flux Power batteries deliver improved performance, extended cycle life and lower total cost of ownership than legacy lead-acid solutions. Flux Power sells primarily to lift equipment OEMs, their dealers and battery distributors. Products include advanced battery packs for motive power in the lift equipment and airport ground service markets, and other commercial and industrial applications.