Core Insights - Flux Power Holdings, Inc. has been awarded a patent for a new battery charge balancing technology called Predictive Quantum Balancing, aimed at optimizing performance, extending battery life, and reducing downtime in critical applications [1][2] Group 1: Technology and Innovation - The patented system enhances Flux Power's proprietary Battery Management System (BMS) by utilizing an intelligent, data-driven method for managing charge distribution at the cell level, which learns from past behavior to improve future performance [2] - Predictive Quantum Balancing continuously monitors cell behavior, logs imbalance trends, and assigns custom "bleed-off" durations to specific cells during charge cycles to maintain 100% of the total pack capacity [3] Group 2: Benefits and Applications - The technology aims to improve real-world uptime, battery longevity, and total cost of ownership for customers, particularly in sectors like material handling, ground support equipment, and logistics [4][6] - Key benefits include extended battery life, faster and smarter charging, predictive maintenance capabilities, and fleet performance optimization, which enhance operational efficiencies and strategic business insights [6] Group 3: Company Overview - Flux Power designs, manufactures, and sells advanced lithium-ion energy storage solutions for various industrial and commercial sectors, providing a more environmentally friendly alternative to traditional lead-acid and propane-based solutions [4]

Core Insights - Flux Power Holdings Inc. has been included in the Financial Times list of the Americas' Fastest Growing Companies 2025, reflecting strong customer adoption of lithium-ion energy solutions and market expansion across various industrial sectors [1][2] Company Performance - The inclusion in the FT list highlights Flux Power's continued expansion and momentum in delivering efficient and sustainable energy solutions to sectors such as material handling, airport ground support equipment, and stationary storage [2][3] - The recognition is seen as strong market validation of Flux Power's advanced energy solutions, with a focus on operational efficiency and accelerating adoption across key industries [3] Leadership and Strategy - CEO Krishna Vanka emphasized the company's commitment to driving a cleaner future through an expanded partner ecosystem and integrated telemetry, enhancing operational performance while lowering emissions [3] - CFO Kevin Royal noted that new executive leadership is focused on improving operational efficiency and expanding technology and service capabilities [3] Product Offerings - Flux Power designs, manufactures, and sells advanced lithium-ion energy storage solutions, providing a better-performing and more environmentally friendly alternative to traditional lead-acid and propane-based solutions [4] - The company's lithium-ion battery packs help reduce CO2 emissions and improve sustainability and ESG metrics for fleets [4]

Core Insights - Flux Power Holdings, Inc. has received a significant purchase order from a major U.S. airline for 120 units of its G80-420 lithium-ion battery packs, valued at over $2 million, to be delivered throughout 2025 [1][2][3] - The order signifies a shift towards data-enabled, zero-emission equipment in airport operations, despite challenges from trade policies and economic pressures [2][3] - The G80-420 battery packs are designed for high-intensity ground support equipment (GSE) applications, featuring modular architecture for fast service and embedded telematics for real-time insights [4][5] Company Overview - Flux Power specializes in advanced lithium-ion energy storage solutions for various sectors, including airport ground support equipment, offering a more environmentally friendly alternative to traditional energy sources [7] - The company emphasizes the integration of intelligence, adaptability, and serviceability in its energy platform, aiming to enhance operational efficiency and sustainability for its customers [5][7] Partnership and Collaboration - The order was secured through collaboration with Averest, a key player in the GSE space, which has a strong understanding of airport fleet challenges [3][4] - Averest focuses on providing customized electric power solutions for the aviation industry, contributing to the transition towards cleaner energy systems [6]

Dividend Distribution - The Ordinary General Meeting of Shareholders on 13 May 2025 approved a dividend distribution for the financial year 2024, setting the gross amount at EUR 1.40 per share [1] - After a 30% withholding tax, the net dividend will be EUR 0.98 per share, payable starting from 21 May 2025 [1] - The ex date for the dividend is set for 19 May 2025, with a record date of 20 May 2025 [1] Payment Process - Dividends for dematerialised shares will be paid automatically by the financial intermediary holding the shares [2] - Registered shares will have dividends paid directly to the shareholders listed in the register [2]

Core Viewpoint - Flux Power Holdings, Inc. is conducting its Q3 2025 earnings conference call, indicating a focus on financial results and future outlook [1]. Group 1: Company Overview - The conference call features key company participants including the CEO, CFO, and VP of Operations, highlighting the leadership team's involvement in discussing financial performance [1][5]. - A press release detailing the financial results was issued prior to the call, emphasizing the company's commitment to transparency and investor communication [4]. Group 2: Financial Performance - The call is set to present important factors that may influence the company's predictions regarding its financial performance, indicating a proactive approach to addressing potential uncertainties [4].

Strategic Initiatives - The company is focused on profitable growth, operational efficiencies, solution selling, building the right products, and increasing software & recurring revenue[20] - The company launched the G96 product, featuring real-time battery performance data monitoring, higher energy capacities, and zero emissions[22, 23, 25, 27] - The company is piloting the SkyEMS AI platform with select customers to support the full life cycle of intelligent batteries, aiming to have every battery cloud-connected[28, 30, 31] Operational Updates - The company is rapidly reviewing and accelerating the evaluation of new suppliers to respond to tariffs[38] - The company is committed to LFP (Lithium Iron Phosphate) while investigating new chemistries[38] - The company is focusing on partnership, supplier diversification, and strengthening the diversified supply chain for the long term[39] - The company is focusing on US capacity expansion, accelerated R&D, tariff-resistant product design, innovation partnerships, margin preservation, sustainable growth, and long-term competitiveness[46]

Company Performance - Flux Power Holdings, Inc. reported a quarterly loss of $0.12 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, but an improvement from a loss of $0.16 per share a year ago, indicating a surprise of -33.33% [1] - The company posted revenues of $16.74 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.62% and showing an increase from $14.46 million in the same quarter last year [2] - Over the last four quarters, Flux Power has not surpassed consensus EPS estimates, but it has topped consensus revenue estimates twice [2] Stock Performance - Flux Power shares have increased by approximately 20.9% since the beginning of the year, contrasting with a decline of -4.3% in the S&P 500 [3] - The company's current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $16.61 million, and for the current fiscal year, it is -$0.36 on revenues of $65.9 million [7] Industry Outlook - The Electronics - Miscellaneous Products industry, to which Flux Power belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Flux Power's stock performance [5]

Financial Data and Key Metrics Changes - Revenue for the third fiscal quarter increased 16% to $16.7 million compared to $14.5 million in the same quarter of the previous year, driven by higher demand in material handling and ground support equipment markets [18] - Gross profit increased 32.5% to $5.3 million, with gross margin rising to 32% from 28% year-over-year [18] - Net loss for the quarter was $1.9 million, an improvement from a net loss of $3 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - The company reported unit growth of 1025% in the material handling and ground support equipment markets [18] - Selling and administrative expenses increased to $5.7 million, primarily due to professional fees related to a multi-year restatement of financial statements [19] - Research and development expenses decreased to $1.1 million, driven by lower salaries and severance costs [19] Market Data and Key Metrics Changes - The company is experiencing increased interest from Tier 1 customers in adopting lithium-ion solutions for distribution centers, indicating a shift towards electrification [30] - The company is seeing a rise in quotation activities as part of its sales force, suggesting a growing demand in the market [31] Company Strategy and Development Direction - The company has aligned five strategic initiatives: profitable growth, operational efficiencies, solution selling, product innovation, and software/recurring revenue [5][7] - The launch of the G96 solution aims to electrify airline drone support equipment, addressing demands for higher power and sustainable operations [8] - The company is focusing on building a diversified and agile supply network to support long-term scalability and innovation [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining operational resilience despite geopolitical complexities and tariff pressures [12] - The company is optimistic about its future, emphasizing the importance of software-driven value and intelligent energy solutions [21] - Management noted that customer commitment to environmental goals remains strong, despite potential impacts from tariffs and subsidy reductions [25] Other Important Information - The company announced a patent award for an AI-based algorithm for Intelligent Battery Lifecycle Maximization, indicating a shift towards becoming a technology-driven energy solutions provider [11] - Cash on hand was $500,000 as of March 31, 2025, reflecting changes in working capital management [20] Q&A Session Summary Question: Sensitivity of customers to pricing actions from tariffs - Management indicated that customers are committed to their ESG goals and the transformation process, with minimal impact from tariffs at this stage [25] Question: Feedback on Sky BMS and potential ROI - Management highlighted that Sky BMS is crucial for customers to realize value, with expected ROI from reduced maintenance visits and better integration with existing technologies [27] Question: Order trends and visibility - Management noted good inventory levels that are not subject to tariffs, anticipating minimal impact on Q4 demand [43] Question: Changes in sales personnel and market penetration - Management reported positive changes from new sales personnel, emphasizing the opportunity to position the company as a software provider with strong battery solutions [36][37] Question: Timeline for deployment of new models - Management confirmed that the G96 model is already in customer testing and production, with plans to expand into higher voltage categories [39]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 16% to $16.7 million compared to $14.5 million in Q3 2024, driven by higher demand in material handling and ground support equipment markets [15] - Gross profit for Q3 2025 increased by 32.5% to $5.3 million, with gross margin rising to 32% from 28% in Q3 2024 [15][16] - Net loss for Q3 2025 was $1.9 million, an improvement from a net loss of $3.0 million in Q3 2024 [17] Business Line Data and Key Metrics Changes - Unit growth in material handling and ground support equipment markets was reported at 1025% [15] - Selling and administrative expenses increased to $5.7 million in Q3 2025 from $5.3 million in Q3 2024, primarily due to professional fees related to a multi-year restatement of financial statements [16] Market Data and Key Metrics Changes - The company is experiencing increased interest from Tier 1 customers in adopting lithium-ion solutions for distribution centers, indicating a shift towards electrification despite economic uncertainties [28] Company Strategy and Development Direction - The company has aligned five strategic initiatives: profitable growth, operational efficiencies, solution selling, product innovation, and software/recurring revenue [5][6] - The launch of the G96 solution aims to advance electrification in airline drone support equipment, positioning the company as a technology leader in clean, high-performance ground support equipment [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining operational resilience despite tariff pressures and geopolitical complexities, focusing on supplier diversification and domestic assembly capabilities [12][14] - The company anticipates minimal impact from tariff increases in Q4 2025 due to good inventory levels [40] Other Important Information - The company announced a patent award for an AI-based algorithm for Intelligent Battery Lifecycle Maximization, indicating a shift towards becoming a technology-driven energy solutions provider [9][10] Q&A Session Summary Question: Sensitivity of customers to pricing actions from tariffs - Management noted that customers are committed to their ESG goals and transformation efforts, indicating a stable business environment despite tariff impacts [22] Question: Feedback on Sky BMS and potential ROI - Management highlighted that Sky BMS is crucial for customers to realize value, with expected ROI from reduced maintenance visits and better integration with existing technologies [24][25] Question: Adoption of lithium-ion in the forklift market - Management reported increased interest from customers in adopting lithium solutions, with competitors facing challenges due to tariffs, potentially providing a market share advantage [28] Question: Changes from new sales personnel - Management indicated positive changes from new sales personnel, positioning the company as a software provider with strong battery solutions [34] Question: Deployment timeline for G96 model - Management confirmed that the G96 model is in customer testing and production, with expectations for rapid deployment in the GSE market [37]

Financial Performance - Revenues for the three months ended March 31, 2025, increased to $16,742,000, up 15.8% from $14,457,000 in the same period of 2024[17] - Gross profit for the nine months ended March 31, 2025, was $15,968,000, representing a 17.0% increase compared to $13,641,000 for the same period in 2024[17] - Operating loss for the three months ended March 31, 2025, improved to $(1,577,000), a reduction of 38.7% from $(2,572,000) in the prior year[17] - Net loss for the nine months ended March 31, 2025, was $(5,495,000), a decrease of 9.8% compared to $(6,089,000) for the same period in 2024[22] - Revenues for Q1 2025 were $16,742,000, a 16% increase from $14,457,000 in Q1 2024, driven by higher demand in material handling and ground support markets[155] - Gross profit for Q1 2025 was $5,287,000, representing 32% of revenue, up from 28% in Q1 2024, due to decreased warranty-related expenses[157] - Net loss for Q1 2025 decreased to $1,939,000 from $3,005,000 in Q1 2024, primarily due to increased gross profit[161] - Revenues for the nine months ended March 31, 2025, were $49,697,000, an increase of $2,250,000 or 5% compared to $47,447,000 for the same period in 2024[164] - Net loss for the nine months ended March 31, 2025, was $5,495,000, an improvement from a net loss of $6,089,000 in 2024[170] Cash Flow and Liquidity - Cash at the end of the period was $505,000, down from $643,000 at the beginning of the period, indicating a decrease of 21.5%[21] - The Company generated cash flows from operations of $2.2 million for the nine months ended March 31, 2025[41] - Cash flow from operating activities was $2,208,000 for the nine months ended March 31, 2025, compared to a cash outflow of $4,274,000 in 2024[177] - As of March 31, 2025, the company had a cash balance of $0.5 million and anticipated that existing resources would not be sufficient to meet capital needs for the next twelve months[176] Liabilities and Debt - Total current liabilities increased to $34,191,000 as of March 31, 2025, compared to $30,674,000 as of June 30, 2024, reflecting a 11.0% rise[15] - The Company has relied on debt and equity financing for additional funds due to insufficient revenues and operating cash flows[41] - The Company has a revolving loan facility with GBC for up to $15.0 million, maturing on July 28, 2025[49] - The Company entered into a Credit Facility Agreement with Cleveland Capital, L.P. for a line of credit of up to $2,000,000 for working capital purposes[70] - The Company had multiple drawdowns under the GBC Credit Facility totaling $46.9 million and made repayments totaling $49.7 million during the nine months ended March 31, 2025[52] - As of March 31, 2025, the outstanding balance under the GBC Credit Facility was approximately $11.0 million, with up to $5.0 million available for future borrowings[52] - The Company received a waiver for a default related to the EBITDA covenant for the trailing three-month period ended April 30, 2024, subject to certain conditions[53] - The Company paid a non-refundable closing fee of $112,500 upon the execution of the GBC Credit Facility Agreement[50] - The Company agreed to pay GBC a non-refundable amendment fee of $50,000 in cash for the Third Amendment to the Loan and Security Agreement[55] Inventory and Receivables - Accounts receivable increased slightly to $9,847,000 as of March 31, 2025, compared to $9,773,000 as of June 30, 2024[15] - Inventories decreased from $16.977 million as of June 30, 2024, to $16.433 million as of March 31, 2025[47] Operational Challenges and Strategies - The Company expects to increase selling prices of its products to offset the impact of tariffs, which may negatively affect revenues and cash flows[35] - The Company is facing uncertainties due to increased tariffs and supply chain disruptions, which may impact future operations[33] - Management is evaluating strategies to improve profitability, including planned price increases and cost-saving initiatives[45] - The company is actively pursuing alternative sourcing strategies to mitigate the impact of U.S. tariffs on imported materials, particularly from China[138] - The company experienced delays in new orders due to deferrals of forklift purchases, attributed to lower capital spending and interest rate variability[133] Legal and Compliance Issues - The company is involved in various legal proceedings, including a shareholder derivative action related to the same allegations as the securities class action[203] - The company has received a notice from Nasdaq regarding non-compliance with continued listing requirements, which could lead to delisting if not addressed[210] - The company intends to take all reasonable measures to regain compliance with Nasdaq Listing Rules and maintain its listing[211] Research and Development - The company has filed three new patents related to advanced lithium-ion energy storage solutions, focusing on optimizing battery life, enhancing user understanding of battery health, and applying artificial intelligence for predictive balancing[130] - A new partnership was announced to enhance the recycling process for end-of-life lithium-ion batteries, marking a commitment to environmental responsibility[136] - The company is expanding its telemetry solution to improve asset management and service maintenance for customers[135] Employee and Stock Compensation - The Company reported stock-based compensation of $831,000 for the nine months ended March 31, 2025, down from $1,233,000 in the same period of 2024[22] - The 2021 Equity Incentive Plan allows for the issuance of awards for up to 2,000,000 shares, with 872,039 shares available for future grants as of March 31, 2025[93] - The company had 68,228 Restricted Stock Units (RSUs) outstanding as of March 31, 2025, with a weighted average grant date fair value of $4.25[97] - The company granted no stock options during the nine months ended March 31, 2025, while the expected volatility for this period was 80.06%[95]