Financial Data and Key Metrics Changes - Revenue increased by 19% to $7.7 million compared to $6.5 million a year ago, marking the 14th consecutive quarter of year-over-year revenue growth [8] - Customer purchase orders reached $19.8 million, a 51% increase from the first quarter of fiscal 2022 and over 200% from the same period a year ago [8] - Gross profit margin decreased to $1 million or 13.6% in Q2 2022, down from $1.5 million or 23% in the same year-ago quarter [29] Business Line Data and Key Metrics Changes - Significant orders received for large Class 1 X-series battery packs from a global consumer appliance manufacturer and airport ground support equipment battery packs from a large domestic airline [9] - Customer order backlog increased to a record $31.4 million as of December 31, 2021, reflecting growing demand from new and existing customers [10] Market Data and Key Metrics Changes - The company experienced supply chain disruptions impacting production and increasing costs for steel and electronic components, which affected gross margins [12][13] - Increased purchasing and related inventory to $9.6 million to mitigate supply chain disruptions, particularly for hard-to-acquire microchips and electronic components [23] Company Strategy and Development Direction - The company aims to capture leadership in the lithium-ion sector for industrial and commercial equipment, focusing on best-in-class products and services [19] - Plans to broaden reach into stationary energy storage and related sectors, particularly for solar-powered EV charging stations [26] - Implementation of lean manufacturing and a second shift to improve production throughput [24][65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented level of supply chain uncertainty but expressed optimism about accelerating towards cash flow breakeven [22] - The company is actively working to reduce inventory balances and improve supply chain efficiency [32][87] - Management is focused on strategic initiatives to increase profitability and mitigate ongoing global supply chain disruptions [33] Other Important Information - The company appointed Cheemin Bo-Linn to the Board of Directors to strengthen corporate governance [11] - The company is pursuing sourcing strategies in Mexico to better align with growing production demands [17] Q&A Session Summary Question: Breakdown of $19.8 million in purchase orders and backlog deliverability - Management indicated that the backlog should be delivered by the end of June, with major contributions from Delta Airlines, Electrolux, and PepsiCo [38][39] Question: Growth curve outlook for the next quarters - Management expressed confidence in robust growth but noted challenges due to electronic component shortages [42] Question: SG&A growth outpacing revenue growth - Management explained that increased insurance premiums, public company expenses, and shipping costs contributed to higher SG&A expenses [49][52] Question: Inventory composition and supply chain issues - Management stated that finished goods inventory is around $2 million to $3 million, with electronic components being the largest part of the inventory affected by supply chain issues [55] Question: Gross margin improvements and production lines - Management confirmed the addition of a second shift to increase production of high-volume packs and ongoing efforts to reduce material costs [65] Question: Cash burn dynamics in the second half of the fiscal year - Management acknowledged cash burn as a concern but emphasized efforts to manage inventory and improve efficiency [82][87]

Flux Power Holdings, Inc. (NASDAQ:FLUX) Q1 2022 Results Conference Call November 12, 2021 4:30 PM ET Company Participants Justin Forbes - IR Ron Dutt - CEO Chuck Scheiwe - CFO Conference Call Participants Chip Moore - EF Hutton Amit Dayal - H.C. Wainwright Allen Klee - Maxim Group Scott Billeadeau - Walrus Partners Operator Good day, and thank you for standing by. Welcome to the Flux Power First Quarter 2022 Financial Results and Company Update Conference Call. At this time, all participants are in a listen ...

PART I - Financial Information [Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(unaudited)) Q1 FY2022 unaudited financials show asset and equity growth from financing, revenue increase, and continued net losses Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | June 30, 2021 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash | $15,737 | $4,713 | +234% | | Inventories | $13,846 | $10,513 | +32% | | Total Current Assets | $35,120 | $21,740 | +62% | | **Total Assets** | **$39,609** | **$26,262** | **+51%** | | **Liabilities & Equity** | | | | | Accounts Payable | $9,298 | $7,175 | +29% | | Total Current Liabilities | $12,110 | $10,390 | +17% | | **Total Liabilities** | **$14,855** | **$13,256** | **+12%** | | **Total Stockholders' Equity** | **$24,754** | **$13,006** | **+90%** | - The significant increase in **cash** and **stockholders' equity** was primarily driven by proceeds from stock offerings during the quarter[18](index=18&type=chunk)[23](index=23&type=chunk) Quarterly Statement of Operations (in thousands, except per share data) | Metric | Q1 FY2022 (Ended Sep 30, 2021) | Q1 FY2021 (Ended Sep 30, 2020) | YoY Change | | :--- | :--- | :--- | :--- | | Revenues | $6,271 | $4,499 | +39.4% | | Gross Profit | $1,338 | $873 | +53.3% | | *Gross Margin* | *21.3%* | *19.4%* | *+1.9 p.p.* | | Operating Expenses | $5,465 | $4,427 | +23.4% | | Operating Loss | $(4,127) | $(3,554) | +16.1% | | Net Loss | $(4,130) | $(3,984) | +3.7% | | Net Loss Per Share | $(0.30) | $(0.42) | +28.6% | - Revenue growth and improved gross margin were offset by higher operating expenses, leading to a slightly larger net loss compared to the prior year[20](index=20&type=chunk) Quarterly Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,416) | $(5,670) | | Net cash used in investing activities | $(238) | $(214) | | Net cash provided by financing activities | $15,678 | $11,308 | | **Net change in cash** | **$11,024** | **$5,424** | - Financing activities were the primary source of cash, with **$15.7 million** provided in the quarter, mainly from a registered direct offering and ATM sales. This influx of capital significantly boosted the company's cash position despite negative operating cash flow[27](index=27&type=chunk)[130](index=130&type=chunk) Notes to Condensed Consolidated Financial Statements - The company designs, develops, manufactures, and sells advanced lithium-ion energy storage solutions for the material handling sector, including lift trucks and airport ground support equipment (GSE)[31](index=31&type=chunk) - On September 27, 2021, the company closed a registered direct offering (RDO) for gross proceeds of approximately **$15.0 million** through the sale of **2,142,860 shares** of common stock and warrants[63](index=63&type=chunk) - As a subsequent event, on October 29, 2021, the company amended its loan agreement with Silicon Valley Bank to increase its revolving line of credit from **$4.0 million** to **$6.0 million** and extend the maturity date to November 7, 2022[97](index=97&type=chunk) - For the three months ended September 30, 2021, **four major customers** accounted for **57%** of total revenues[87](index=87&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses revenue growth, improved gross margin, increased expenses, significant backlog growth, and sufficient liquidity Business Overview and Backlog - The company's long-term strategy is to meet the growing demand for lithium-ion solutions, targeting large fleets of forklifts and airport ground support equipment (GSEs)[103](index=103&type=chunk) Quarterly Backlog Growth (in thousands) | Quarter Ended | Beginning Backlog | New Orders | Shipments | Ending Backlog | | :--- | :--- | :--- | :--- | :--- | | Mar 31, 2021 | $2,759 | $9,977 | $6,826 | $5,910 | | Jun 30, 2021 | $5,910 | $15,053 | $8,339 | $12,624 | | Sep 30, 2021 | $12,624 | $13,122 | $6,313 | $19,433 | - The order backlog continued to grow post-quarter, reaching approximately **$28.4 million** as of November 10, 2021[105](index=105&type=chunk) Results of Operations - Revenues increased by **39%** to **$6.3 million** for the quarter ended September 30, 2021, compared to the prior year, driven by higher unit volume and sales of higher-priced packs[116](index=116&type=chunk) - Gross profit rose **53%** to **$1.3 million**, with gross margin expanding to **21%** from **19%** year-over-year, reflecting improved cost efficiencies despite higher costs for steel and electronic parts[119](index=119&type=chunk) - Selling and administrative expenses increased by **20%** to **$3.5 million** due to higher personnel costs, insurance, and sales & marketing expenses[120](index=120&type=chunk) - Research and development expenses grew **31%** to **$2.0 million**, primarily due to new product development and UL certification activities[121](index=121&type=chunk) Liquidity and Capital Resources - As of September 30, 2021, the company had a cash balance of **$15.7 million**[124](index=124&type=chunk) - Net cash provided by financing activities was **$15.7 million** for the quarter, primarily from a registered direct offering and sales under the ATM program[130](index=130&type=chunk) - Management believes that existing cash, combined with the recently expanded **$6.0 million** revolving line of credit, is sufficient to fund planned operations for the next twelve months[124](index=124&type=chunk)[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a smaller reporting company, the company is exempt from providing detailed market risk disclosures - As a smaller reporting company, Flux Power is exempt from providing detailed disclosures about market risk[137](index=137&type=chunk) [Controls and Procedures](index=25&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective with no material changes to internal controls - Based on an evaluation as of the end of the period, the company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective[138](index=138&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[141](index=141&type=chunk) PART II - Other Information [Legal Proceedings](index=26&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) No material legal proceedings are pending against the company - To the best of management's knowledge, there are no material legal proceedings pending against the Company[143](index=143&type=chunk) [Risk Factors](index=26&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company refers to its Annual Report on Form 10-K for risk factors, with no material changes reported - The report refers to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2021, filed on September 27, 2021[144](index=144&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered sales of equity securities were reported during the period - None reported for the period[145](index=145&type=chunk) [Exhibits](index=27&type=section&id=ITEM%206.%20EXHIBITS) This section lists filed exhibits, including financing agreements and Sarbanes-Oxley certifications - Exhibits filed include the Form of Registered Direct Offering Warrant, Securities Purchase Agreement, the First Amendment to the Loan and Security Agreement with Silicon Valley Bank, and Sarbanes-Oxley certifications[149](index=149&type=chunk)

Flux Power Holdings, Inc. (NASDAQ:FLUX) Q4 2021 Earnings Conference Call September 27, 2021 4:30 PM ET Company Participants Ron Dutt - CEO Chuck Scheiwe - CFO Justin Forbes - Director of Marketing and IR Conference Call Participants Allen Klee - Maxim Group Craig Irwin - ROTH Capital Operator Good day and thank you for standing by. Welcome to the Flux Power Fiscal Year 2021 Financial Results and Company Update Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of Each Class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share FLUX NASDAQ Capital Stock FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-31543 FLUX POWER HOLDINGS, INC. (Ex ...

Part I - Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents Flux Power Holdings, Inc.'s unaudited condensed consolidated financial statements, revealing increased liabilities, widening net losses, and a critical going concern warning due to insufficient operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of December 31, 2019, the company's total assets were $11.3 million, a significant increase from $7.2 million at June 30, 2019, primarily due to the recognition of a $2.6 million right-of-use asset Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2019 (Unaudited) | June 30, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$11,331** | **$7,206** | | Total Current Assets | $8,230 | $6,702 | | Right of use asset | $2,553 | $0 | | **Total Liabilities** | **$20,691** | **$10,375** | | Line of credit - related party | $10,691 | $6,405 | | Office lease payable (current & long-term) | $2,692 | $0 | | **Total Stockholders' Deficit** | **$(9,360)** | **$(3,169)** | | Accumulated Deficit | $(46,197) | $(39,076) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended December 31, 2019, net revenue grew 33% year-over-year to $3.6 million, but net loss also increased to $3.3 million from $2.9 million Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Dec 31, 2019 | Three Months Ended Dec 31, 2018 | Six Months Ended Dec 31, 2019 | Six Months Ended Dec 31, 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $3,615 | $2,711 | $5,534 | $4,547 | | Gross Profit | $326 | $255 | $443 | $272 | | Operating Loss | $(2,924) | $(2,231) | $(6,410) | $(4,358) | | Net Loss | $(3,307) | $(2,924) | $(7,121) | $(5,325) | | Net Loss Per Share | $(0.65) | $(0.70) | $(1.39) | $(1.46) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended December 31, 2019, net cash used in operating activities was $4.0 million, an improvement from $5.3 million used in the prior year period Cash Flow Summary - Six Months Ended Dec 31 (in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,987) | $(5,256) | | Net cash used in investing activities | $(122) | $(101) | | Net cash provided by financing activities | $4,143 | $3,695 | | **Net change in cash** | **$34** | **$(1,662)** | | **Cash, end of period** | **$136** | **$1,044** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes detail the company's business, accounting policies, and significant financial events, including a reverse stock split, going concern warning, related-party debt, and customer/supplier concentrations - The company designs, develops, manufactures, and sells advanced rechargeable lithium-ion energy storage solutions for industrial applications like lift trucks and airport ground support equipment[26](index=26&type=chunk) - A 1-for-10 reverse stock split was effected on July 11, 2019, reducing outstanding common stock from **~51.0 million to ~5.1 million shares** All share and per-share data have been retroactively adjusted[29](index=29&type=chunk) - There is substantial doubt about the Company's ability to continue as a going concern due to an accumulated deficit of **$46.2 million** and insufficient cash flow from operations The company had only **$136,000** in cash as of December 31, 2019, and is dependent on raising additional capital[32](index=32&type=chunk) - The related-party line of credit was amended to increase the maximum principal from **$10 million to $12 million** and extend the maturity to June 30, 2020 The outstanding balance was **$10.7 million** as of December 31, 2019[35](index=35&type=chunk)[50](index=50&type=chunk) - For the six months ended December 31, 2019, three major customers accounted for **74% of total revenues**, and two suppliers accounted for **34% of total purchases**[65](index=65&type=chunk)[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial results, highlighting revenue growth offset by widening net losses due to increased operating expenses and critical liquidity issues requiring significant additional capital [Recent Developments](index=19&type=section&id=Recent%20Developments) The company is expanding its product line with larger LiFT Packs for Class 1, 2, and 3 forklifts, and secured significant orders for airport GSE and stationary power storage batteries - Successfully launched new LiFT Pack batteries for Class 2 Narrow Aisle and Class 3 End Rider forklifts in December 2019[81](index=81&type=chunk) - Received a **$300,000** order for airport GSE batteries in October 2019 and an **$800,000** order for stationary storage batteries for EV charging stations in December 2019[82](index=82&type=chunk)[83](index=83&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) For the quarter ended Dec 31, 2019, revenue increased 33% YoY to $3.6 million, but net loss grew 13% to $3.3 million, primarily due to higher operating expenses Comparison of Three Months Ended December 31, 2019 and 2018 (in thousands) | Metric | Q2 2020 | Q2 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | $3,615 | $2,711 | +33% | | Gross Profit | $326 | $255 | +28% | | Selling & Admin Expenses | $2,229 | $1,604 | +39% | | R&D Expenses | $1,021 | $882 | +16% | | Net Loss | $(3,307) | $(2,924) | +13% | Comparison of Six Months Ended December 31, 2019 and 2018 (in thousands) | Metric | 2019 | 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | $5,534 | $4,547 | +22% | | Gross Profit | $443 | $272 | +63% | | Selling & Admin Expenses | $4,492 | $3,097 | +45% | | R&D Expenses | $2,361 | $1,533 | +54% | | Net Loss | $(7,121) | $(5,325) | +34% | [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position is precarious, with a cash balance of only $136,000, requiring significant additional financing to sustain operations - As of December 31, 2019, the company had a cash balance of **$136,000** and an accumulated deficit of **$46.2 million**[104](index=104&type=chunk) - Management has determined that existing cash resources are not sufficient for the next twelve months and that additional financing is required to support current operations[109](index=109&type=chunk) - The company intends to seek capital through equity sales, convertible debt, and its credit facility, which was increased to **$12 million** As of Dec 31, 2019, **$10.7 million** was outstanding under this facility[110](index=110&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is a smaller reporting company and is not required to provide the information for this item - As a smaller reporting company, Flux Power is not required to provide quantitative and qualitative disclosures about market risk[117](index=117&type=chunk) [Controls and Procedures](index=24&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of the end of the period, with no material changes to internal controls over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2019[118](index=118&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[120](index=120&type=chunk) Part II - Other Information [Legal Proceedings](index=25&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) To the best of management's knowledge, there are no material legal proceedings pending against the company - The company reports no material pending legal proceedings[122](index=122&type=chunk) [Risk Factors](index=25&type=section&id=ITEM%201A.%20RISK%20FACTORS) The report states that an investment in the company's common stock involves a high degree of risk and refers investors to the detailed risk factors described in its Annual Report on Form 10-K - Investors are directed to the risk factors section of the company's Annual Report on Form 10-K for a comprehensive understanding of the risks involved[123](index=123&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) None reported for the period - The company reported no unregistered sales of equity securities during the period[124](index=124&type=chunk) [Exhibits](index=26&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the 10-Q report, including amendments to credit and security agreements, promissory notes, and Sarbanes-Oxley Act certifications - Exhibits filed include amendments to the credit facility and promissory notes with related parties, as well as required CEO and CFO certifications[129](index=129&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-25909 FLUX POWER HOLDINGS, INC. (Exact name of registrant as specified in its charter) | --- | --- | |---------------------------------|-------| | Nevada | | | (State or oth ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2018 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-25909 FLUX POWER HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Ide ...