Flux Power(US:FLUX)2025-03-20 20:05Revenue and Profitability - Fiscal year 2024 revenue decreased by 9% to $60.8 million compared to $66.5 million in fiscal year 2023, primarily due to delays in shipments to a large customer and double-digit declines in sales from OEM partners[23]. - Gross profit for fiscal year 2024 increased to $17.2 million, up from $15.9 million in fiscal year 2023, with gross margin improving to 28% from 24%[24]. - Adjusted EBITDA loss improved to $4.0 million in fiscal year 2024, compared to a loss of $4.7 million in fiscal year 2023, driven by improved gross margins[24]. - Net loss for fiscal year 2024 was $8.3 million, compared to a net loss of $7.7 million in fiscal year 2023, primarily due to increased sales and marketing expenses[27]. - Revenues for the year ended June 30, 2024, were $60.8 million, a decrease of 8.0% compared to $66.5 million in 2023[43]. - Net loss for the year ended June 30, 2024, was $8.3 million, compared to a net loss of $7.7 million in 2023, reflecting a 7.6% increase in losses[43]. - Adjusted EBITDA for the year ended June 30, 2024, was $(4.0) million, an improvement from $(4.7) million in 2023[35]. Expenses and Liabilities - Selling and administrative expenses increased to $18.9 million in fiscal year 2024 from $17.6 million in fiscal year 2023, driven by stock-based compensation and new hires[25]. - Research and development expenses increased to $4.9 million in fiscal year 2024 compared to $4.7 million in fiscal year 2023, mainly due to increased payroll and related benefits[26]. - Total current liabilities increased to $30.7 million as of June 30, 2024, from $24.0 million in 2023, representing a 28.5% increase[41]. - Operating expenses for the year ended June 30, 2024, totaled $23.8 million, up from $22.3 million in 2023, marking a 6.9% increase[43]. - Cash used in operating activities was $4,798,000, an increase from $3,574,000 in the previous year, reflecting a 34.3% rise in cash outflow[45]. - Interest paid increased to $1,409,000 from $1,127,000, reflecting a rise of 24.9% year-over-year[45]. Cash Flow and Financing - Cash decreased to $0.6 million on June 30, 2024, from $2.4 million on June 30, 2023, indicating changes in working capital management[28]. - The company has a line of credit with Gibraltar Business Capital of $16.0 million, with a remaining available balance of $6.3 million as of December 31, 2024[28]. - Net cash provided by financing activities was $3,915,000, down from $6,492,000 in the previous year, representing a decline of 39.5%[45]. - The company is evaluating alternative sources of funding to support growth initiatives due to ineligibility to use a Form S-3 Registration Statement[30]. - The company entered into Amendment No. 4 to Loan and Security Agreement with GBC, amending certain terms including the EBITDA Minimum financial covenant[29]. Inventory and Adjustments - The company identified approximately $5.2 million in cumulative adjustments related to excess and obsolete inventory over four years, which did not impact cash flow[4]. - The company experienced a decrease in inventories, with a reduction of $1,309,000 compared to a decrease of $2,408,000 in the prior year, showing improved inventory management[45]. - The company recorded a write-down of inventory amounting to $490,000, a decrease from $690,000 in the previous year, suggesting improved inventory valuation[45]. Product Development - New product launches include heavy-duty models and an integrated onboard charger option for M24 lithium-ion battery packs, aimed at improving warehouse operations[15]. Stock and Compensation - Stock-based compensation rose to $1,571,000, compared to $798,000 in the previous year, indicating a substantial increase of 96.7%[45]. - Depreciation expenses increased to $1,045,000 from $899,000, reflecting a rise of 16.2% year-over-year[45]. - Proceeds from the issuance of common stock in public offerings were $1,556,000, down from $1,602,000, indicating a slight decline of 2.9%[45].