Core Insights - Flux Power Holdings, Inc. has secured over $3.6 million in additional purchase orders from a long-standing airline customer, enhancing its growth in aviation energy solutions [1][2] - The company is recognized among the top ten North American airlines, indicating its strong position and reliability in the aviation sector [2] - Flux Power's technology focuses on improving operational efficiency and sustainability for airlines through advanced lithium-ion energy storage solutions [3][4] Company Overview - Flux Power designs, manufactures, and sells advanced lithium-ion energy storage solutions for various sectors, including airport ground support equipment [6] - The company's products offer a better performance, lower cost of ownership, and reduced CO2 emissions compared to traditional lead-acid and propane-based solutions [6] Industry Trends - The aviation industry is increasingly shifting towards intelligent electric power solutions, with a focus on reducing downtime and improving fleet visibility [4] - Companies like Flux Power are investing in innovation and integrated cloud-based energy intelligence to support the electrification of ground support equipment [4]

PresentationKrishna VankaCEO, President & Director Thank you. Welcome, everyone. Good afternoon, and we are thrilled to be part of this conference and give you some updates on the Flux Power. I'm going to present this section, and then we'll have Kevin Royal join me towards the end to talk about financials. So moving on to the safe harbor, the standard slide here. I'm going to skip this. And let me tell you a little bit about Flux. We are based here in Vista, California. We design and manufacture lithium io ...

Summary of Flux Power Holdings Inc. Conference Call Company Overview - **Company Name**: Flux Power Holdings Inc. - **Industry**: Lithium-ion battery manufacturing - **Location**: Vista, California - **Products**: Lithium-ion battery packs, energy management systems, cloud-based SaaS platform for battery monitoring and control [2][3] Core Business Segments - **Material Handling**: Primarily used in forklifts across warehouses - **Airport Ground Support Equipment (GSE)**: Powers vehicles like tugs and pushback trucks at airports [3] Strategic Vision - Transition customers from lead-acid to lithium-ion batteries for improved productivity and ROI - Focus on operational efficiencies and profitability through new leadership and strategic objectives [4][7] Leadership Changes - New leadership team introduced to drive growth and profitability - Key members include: - **Krishna Vanka**: CEO with experience in battery and charging infrastructure - **Kevin Royal**: CFO with extensive experience in publicly traded companies - **Kelly Frey**: Chief Revenue Officer focusing on customer engagement and sales [4][6][7] Financial Performance - Revenue has stagnated between $60-$67 million over the last three years - Break-even point estimated at $16 million in revenue - Recent quarter saw a decline to $13.2 million due to tariffs impacting customer orders [20][21] Market Opportunity - **Material Handling Battery Market**: Estimated at $2.5 billion in 2025, growing at 9% - **GSE Market**: Projected to be a $5 billion business in the next year, growing at 7.8% - Current lithium-ion adoption in the forklift industry is only 15%-20%, indicating significant growth potential [15][17][16] Product Development and Innovation - Focus on modular product design to enhance scalability and efficiency - Recent patents awarded for AI-driven energy optimization and advanced battery management systems [13][14] - Introduction of intelligent batteries with remote monitoring capabilities [10][14] Customer Segments - Diverse applications across industries including food and beverage, retail, manufacturing, and airport GSE - Notable customers include major airlines and companies like Amazon and Caterpillar [18] Challenges and Future Outlook - Impact of tariffs has created uncertainty in order cadence, but signs of normalization are emerging - Plans to enhance gross margins through supply chain improvements and product redesign [21][24] - Anticipation of increased demand as customers transition to lithium-ion solutions [23][26] Conclusion - Flux Power is positioned for growth in the lithium-ion battery market with a strong focus on operational efficiency and customer engagement - The leadership team is committed to achieving profitability and capitalizing on the growing market demand for lithium-ion solutions [32]

Core Points - Flux Power Holdings, Inc. will participate in the iAccess Alpha Virtual Best Ideas Winter Investment Conference on December 9-10, 2025, with CEO Krishna Vanka and CFO Kevin Royal presenting [1] - The conference will feature webcast presentations on the first day and one-on-one meetings with pre-qualified investors on the second day [2] - A live webcast and replay of the company's presentation will be available on Flux Power's Investor Relations website [3] Company Overview - Flux Power designs, manufactures, and sells advanced lithium-ion energy storage solutions for various industrial and commercial sectors, including material handling and airport ground support equipment [4] - The company's lithium-ion battery packs offer a better performance, lower cost of ownership, and more environmentally friendly alternative to traditional lead-acid and propane-based solutions, contributing to reduced CO2 emissions and improved sustainability metrics [4]

Core Insights - Plug Power Inc. (PLUG) and Flux Power Holdings, Inc. (FLUX) are key players in the clean energy market, focusing on advanced energy storage solutions for commercial and industrial applications [2] - PLUG is experiencing growth in the green hydrogen market, while FLUX is facing challenges due to declining customer orders and rising costs [3][9] Plug Power Analysis - PLUG's revenues increased by 2% year over year in Q3, with a 10.8% surge in the first nine months of the year, driven by its electrolyzer product line [4] - The company signed a deal in October 2025 to deliver up to two GW of GenEco PEM electrolyzer systems, increasing its total contracted capacity to five GW [5] - PLUG's Project Quantum Leap aims to enhance cash flow and reduce cash burn, focusing on sales growth and inventory management [6] - Despite growth, PLUG reported a negative gross margin of 67.9% in Q3 2025 and an operating cash outflow of $387.2 million in the first nine months [7] - Revenues from equipment and related products declined by 9.7% year over year to $96.8 million in Q3 2025 [8] Flux Power Analysis - FLUX's revenues declined by 18% year over year in Q1 fiscal 2026 due to lower customer orders and a shift to lower-priced products [9] - The company faced a 2.5% increase in cost of sales and a 12.2% rise in total operating expenses in fiscal 2025 [11] - FLUX's liquidity issues led to reliance on debt and equity financing, exiting Q1 with an accumulated deficit of $108.9 million and a net loss of approximately $2.6 million [12] - Despite challenges, FLUX is focused on launching new products and upgrading existing ones to align with industry trends [13] Financial Estimates - The Zacks Consensus Estimate for PLUG's 2025 sales is $701.8 million, indicating an 11.6% year-over-year growth, with a projected loss of 80 cents per share [14] - For FLUX, the fiscal 2026 sales estimate is approximately $66.1 million, reflecting a 0.5% decline year over year, with a projected loss of 23 cents per share [15] Stock Performance - Over the past six months, PLUG's shares have increased by 145.8%, while FLUX's stock has decreased by 6.1% [16] - Both companies are currently trading at a negative forward price-to-earnings ratio [17] Conclusion - PLUG's strategic partnerships, innovative product offerings, and strong position in the green hydrogen market suggest a more favorable long-term outlook compared to FLUX, which is hindered by declining orders and rising costs [18][19]

Core Insights - Flux Power Holdings, Inc. has been granted a U.S. Patent for a system that determines the State of Health (SoH) of lithium-ion battery packs, enhancing battery performance monitoring and lifespan extension [1][2][3] Technology Overview - The patented system utilizes advanced algorithms and predictive modeling to continuously assess battery SoH, focusing on depth of discharge, cycle life estimation, and cell balancing to optimize charging patterns [2][3] - The SoH algorithm captures and analyzes battery usage patterns, including discharge depth, temperature, and cell voltage, allowing for real-time adaptations and predictions [3] Benefits of the Technology - Predictive maintenance capabilities provide operators with real-time visibility into battery health, enabling proactive maintenance [8] - Continuous cell balancing minimizes downtime and ensures consistent energy delivery, enhancing fleet uptime [8] - Smarter charging patterns and early diagnostic insights lead to a lower total cost of ownership by reducing replacement frequency and service costs [8] - Continuous monitoring enhances safety by preventing overheating, overcharging, and voltage imbalances [8] Company Strategy - Flux Power emphasizes innovation to meet customer needs, focusing on intelligent energy solutions that improve operational efficiency and extend battery life [6] - The company is committed to investing in research and development to enhance predictive analytics, real-time diagnostics, and adaptive charging algorithms [6][7]

Core Insights - Flux Power Holdings, Inc. reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -250.00% [1] - The company's revenues for the quarter ended September 2025 were $13.18 million, missing the Zacks Consensus Estimate by 20.1%, and down from $16.13 million a year ago [2] - The stock has increased approximately 50% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] Financial Performance - Over the last four quarters, Flux Power has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $17.59 million, and for the current fiscal year, it is -$0.03 on revenues of $73.08 million [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with management's commentary on the earnings call being a key factor [4] - The Zacks Rank for Flux Power is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] - The Electronics - Miscellaneous Products industry, to which Flux Power belongs, is currently in the top 14% of Zacks industries, suggesting a favorable industry outlook [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $13.2 million, down from $16.1 million in the same quarter last year, primarily due to a pause in customer orders related to tariff uncertainty and macroeconomic concerns [10] - Gross margin decreased to 28.6% from 32.4% in the prior year, attributed to lower sales and a shift towards lower energy capacity products with lower gross margins [10] - Net loss for the quarter was $2.6 million, or $0.15 per share, compared to a net loss of $1.7 million, or $0.10 per share in Q1 2025 [11] - Adjusted EBITDA was negative $1.7 million, worsening from negative $0.4 million in the same quarter a year ago [11] - Cash and cash equivalents at the end of the quarter were $1.6 million, up from $0.6 million a year ago [11] Business Line Data and Key Metrics Changes - The company secured multi-million dollar orders totaling $2.4 million from top material handling customers, indicating a rebound in order activity [4] - The customer base in the airline sector doubled, now serving eight major North American airlines [5] Market Data and Key Metrics Changes - The company received UL 1973 listing for its 80-volt intelligent batteries, unlocking new opportunities in various industries including agriculture, oil and gas, and pharmaceuticals, representing a total addressable market of around $1 billion [7][8] Company Strategy and Development Direction - The company has established five strategic initiatives: profitable growth, operational efficiencies, solution selling, building the right products, and integrating value-added software to generate recurring revenue streams [5] - Recent capital raises totaling $13.8 million will be used for working capital and to accelerate product development, aiming to improve margins [6][12] Management's Comments on Operating Environment and Future Outlook - Management noted a temporary pause in customer orders due to tariff uncertainty but indicated a rebound in order activity in the second fiscal quarter [4] - The company is optimistic about achieving profitable growth in the coming quarters, supported by recent operational efficiencies and capital raises [13] Other Important Information - The company retained its NASDAQ listing and is committed to maintaining compliance for broad access to its common stock [6] - The Sky MS 2.0 SaaS platform has graduated to paying customers, with plans to add new AI-driven operational features [9] Q&A Session Summary Question: Order trends post-quarter and strength into the fourth quarter - Management acknowledged a rebound in orders, highlighting $2.4 million in orders from the material handling industry and a significant airline order, while noting ongoing headwinds from tariffs and a government shutdown [18] Question: Ground support equipment market investment and further penetration - Management reported continued adoption of clean energy solutions in the ground support equipment market, with no pushback from airlines on transitioning to lithium, and expressed optimism for increased orders as airlines deploy lithium solutions [19]

Financial Performance - Revenues for the three months ended September 30, 2025, were $13,175,000, a decrease of 18.1% compared to $16,125,000 for the same period in 2024[17] - Gross profit for the same period was $3,765,000, down 27.8% from $5,218,000 year-over-year[17] - Operating loss increased to $2,178,000 for Q1 2025, compared to a loss of $1,212,000 in Q1 2024[17] - Net loss for the three months ended September 30, 2025, was $2,562,000, compared to a net loss of $1,669,000 in the prior year, representing a 53.4% increase in losses[17] - Adjusted EBITDA for the quarter was a loss of $1,718,000, compared to a loss of $372,000 in the prior year[174] - The net loss for the quarter ended September 30, 2025, was $2,562,000, compared to a net loss of $1,669,000 for the same quarter in 2024[173] Assets and Liabilities - Total current assets decreased to $26,957,000 as of September 30, 2025, down from $31,804,000 at June 30, 2025, a decline of 15.4%[15] - Total liabilities decreased to $33,015,000 as of September 30, 2025, down from $40,156,000 at June 30, 2025, a reduction of 17.7%[15] - Cash at the end of the period increased to $1,588,000 from $1,334,000 at the end of the previous quarter, an increase of 19.0%[21] - The Company had a cash balance of $1.6 million and $6.1 million available under the Gibraltar Business Capital Credit Facility as of September 30, 2025[41] Capital Raising Activities - The company raised $3,227,000 from the issuance of prefunded preferred stock warrants and common stock warrants under a private placement[21] - The Company completed a Public Offering in October 2025, raising $9.2 million in cash proceeds[46] - The Company completed a Private Placement on September 15, 2025, raising approximately $5.0 million through the sale of Prefunded Preferred Stock Warrants and Common Stock Warrants[70] - The net proceeds from the Private Placement, after issuance costs of approximately $400,000, were approximately $4,400,000[72] Operational Focus and Strategy - The company continues to focus on the development of advanced lithium-ion energy storage solutions, targeting growth in the material handling sector[27] - Management is implementing price increases and cost-saving initiatives to improve profitability and cash flow from operations[44] - The Company aims to expand its sales and marketing efforts and improve production efficiencies to meet the growing demand for lithium-ion energy solutions[141] Legal and Compliance Matters - The Company is currently involved in multiple legal proceedings, including a class action and a derivative action, but intends to vigorously defend against these claims[114] - The Company expects to establish a $1.75 million escrowed settlement fund to cover payments related to a class action litigation settlement[103] - The Company anticipates its liability insurers will directly fund approximately $1.15 million of the settlement fund, with an estimated contribution of $600,000 from the Company[106] - The Company reached an agreement to resolve the derivative complaint on July 11, 2025, involving corporate governance reforms[213] Stock and Equity Information - The company reported a weighted average number of common shares outstanding of 16,835,698 for the three months ended September 30, 2025[17] - Basic and diluted loss per share for the three months ended September 30, 2025, were calculated based on 16,835,698 weighted-average common shares outstanding[39] - The 2021 Equity Incentive Plan allows for the issuance of awards for up to 2,000,000 shares of common stock, with 164,899 shares available for future grants as of September 30, 2025[81] - The Company approved the 2025 Equity Incentive Plan, authorizing the issuance of up to 1,000,000 shares of common stock for various awards as of September 30, 2025[82] Inventory and Supply Chain - Inventories decreased from $17.231 million as of June 30, 2025, to $15.726 million as of September 30, 2025, with raw materials accounting for $12.321 million[48] - The Company had one supplier accounting for approximately $1,686,000 or 15% of total purchases during the three months ended September 30, 2025, down from $3,986,000 or 31% in 2024[99] Market Conditions and Challenges - The Company is evaluating the impact of new tariffs on imported products, which are expected to negatively affect revenues and profitability[33] - The Company temporarily paused imports from a battery cell supplier in China due to tariff uncertainties, but operations were not materially affected[35] - New orders for energy storage solutions experienced delays in the second half of fiscal 2025, with some customers deferring orders to fiscal 2026 due to lower capital spending and interest rate variability[146] Internal Controls and Governance - Management has identified material weaknesses in internal controls over financial reporting as of September 30, 2025, due to insufficient technical accounting expertise[197] - The company has engaged external financial consulting firms to assist in strengthening internal controls and procedures[200] - The company has not identified any changes in internal controls over financial reporting that materially affect its operations during the fiscal quarter ended September 30, 2025[202]

Financial Performance - Revenue for Q1 FY2026 was $13.2 million, a decrease of 18% from $16.1 million in Q1 FY2025[7] - Gross profit for Q1 FY2026 was $3.8 million, representing 28.6% of revenue, down from 32.4% in the prior year[7] - Operating loss for Q1 FY2026 was $2.2 million, compared to a loss of $1.2 million in Q1 FY2025[8] - Net loss for Q1 FY2026 was $2.6 million, or ($0.15) per share, compared to a net loss of $1.7 million, or ($0.10) per share, in the prior year[9] - Adjusted EBITDA for Q1 FY2026 was ($1.7) million, compared to ($0.4) million in the prior year[10] - Net loss for the three months ended September 30, 2025, was $2,562,000, compared to a net loss of $1,669,000 for the same period in 2024, representing an increase in losses of 53.4%[26] - Adjusted EBITDA for the three months ended September 30, 2025, was $(1,718,000), compared to $(372,000) for the same period in 2024, indicating a significant deterioration in operational performance[26] Capital and Funding - The company raised $13.8 million in new capital through public equity offerings and private placements during the quarter[5] - Cash as of September 30, 2025, was $1.6 million, with an additional $12.6 million raised from recent offerings[11] Assets and Liabilities - Total current assets decreased from $31,804,000 in June 2025 to $26,957,000 in September 2025, a decline of approximately 15.3%[24] - Total liabilities decreased from $40,156,000 in June 2025 to $33,015,000 in September 2025, a reduction of approximately 17.7%[24] - Current liabilities decreased from $39,618,000 in June 2025 to $32,169,000 in September 2025, a decline of about 18.8%[24] - Total stockholders' equity improved from a deficit of $(5,404,000) in June 2025 to a deficit of $(3,320,000) in September 2025, indicating a positive change of approximately 38.5%[24] Cash Flow and Inventory - Cash increased from $1,334,000 in June 2025 to $1,588,000 in September 2025, reflecting a growth of 19.0%[24] - Accounts receivable decreased from $11,374,000 in June 2025 to $7,497,000 in September 2025, a decline of approximately 34.1%[24] - Inventories decreased from $17,231,000 in June 2025 to $15,726,000 in September 2025, a reduction of about 8.7%[24] Business Developments - Flux Power secured a large order from a major airline customer, increasing the number of North American airlines served to eight[6] - The SkyEMS 2.0 SaaS platform graduated from beta to production with multiple paying customers[6] - The company received UL EE Listing across its material handling portfolio, opening a new $1 billion total addressable market[6] Depreciation and Amortization - The company reported a depreciation and amortization expense of $251,000 for the three months ended September 30, 2025, consistent with the previous year's expense of $252,000[26]