Flux Power Holdings, Inc.

Flux Power Holdings, Inc.

Company overview

Flux Power Holdings, Inc. designs, develops, manufactures, and sells lithium‑ion energy storage solutions for industrial and commercial applications, with a focus on material handling equipment (e.g., forklifts) and airport ground support equipment (GSE). The company positions its products as higher‑performance, modular, and scalable alternatives to lead‑acid and propane systems, and offers a proprietary wireless battery management system (BMS) with real‑time telemetry called SkyEMS.

Products and technology

• Energy storage packs: Modular, scalable packs configurable for varied power and space requirements; used across small, medium, and large forklift classes and other industrial equipment.
• Battery chemistry: Packs use lithium iron phosphate (LiFePO4) cells sourced from a single Chinese manufacturer. Flux’s BMS is cell‑chemistry agnostic, enabling compatibility with other suppliers.
• Proprietary software and hardware: Advanced BMS for cell balancing, health monitoring, and performance optimization. SkyEMS telemetry provides real‑time performance, health, and remaining useful life data.
• Certifications and approvals: UL listing for Flux packs; OEM approvals including Toyota Material Handling USA and Crown Equipment; private‑label Class 3 Walkie Pallet Pack for two top‑ten forklift OEMs.
• Additional offerings: 24‑volt onboard chargers and smart wall‑mounted chargers; ongoing development of SkyBMS and other software features to expand revenue streams.

Market and customers

• Primary end markets: Material handling (forklifts, pallet trucks) and airport GSE; expanding into other industrial/commercial uses and mobile energy storage systems.
• Customer concentration:
  • FY2026: Two major customers, each >10% of revenue; together accounted for $30.065 million, or 71% of total revenues.
  • FY2025: Three major customers, each >10% of revenue; together accounted for $48.288 million, or 73% of total revenues.
• Accounts receivable concentration (as of 6/30/2026): Three customers represented $3.525 million, or 71% of accounts receivable (96% of which was aged under 60 days).

Financial snapshot (historical)

• Revenue:
  • FY2026: Approximately $42.3 million.
  • FY2025: Approximately $66.2 million.
• Net income (loss):
  • FY2026: Net loss of $7.4 million.
  • FY2025: Net loss of $6.7 million.
• Cash and liquidity:
  • Cash balance as of 6/30/2026: Approximately $0.3 million.
  • Cash balance as of 6/30/2025: Approximately $1.3 million.
• Employees:
  • 6/30/2026: 70 employees.
  • 6/30/2025: 101 employees.
• Debt and credit facilities:
  • Revolving line of credit with Gibraltar Business Capital (GBC): Outstanding balance as of 6/30/2026 approximately $6.3 million; facility capacity historically up to $15 million, later amended to $16.0 million.
  • Event of default: As of 3/31/2026, Flux notified GBC of a failure to meet an EBITDA covenant, creating an event of default; GBC has allowed continued use of the facility but retains the ability to restrict availability or accelerate repayment.
  • 9/15/2025 private placement: Conversion of Cleveland, LLC indebtedness into equity extended the maturity of the GBC facility to July 31, 2027, with an automatic extension provision under specified conditions.
• Committed Equity Facility (CEF) with Roth Principal Investments:
  • May 15, 2026: Entered into a CEF Purchase Agreement to sell up to $40 million of Purchase Shares. Terms include VWAP‑based pricing with discounts and an Exchange Cap of 4,272,062 shares (about 19.999% of shares outstanding prior to execution) and a 4.99% beneficial ownership cap for Roth affiliates.
  • Draws under the CEF are subject to a Threshold Price ($0.50) and other conditions.
• Other financing and governance:
  • A 2025 private placement with convertible elements (Series A Preferred Stock) and related registrations created potential dilution and additional voting dynamics.
  • The company has negotiated multiple debt amendments with GBC and related satisfaction arrangements tied to other financing events.

Operations and facilities

• Primary facility: Corporate headquarters and production facility in Vista, California (63,200 sq ft). ISO 9001 certified; leased. 2026 rent approximately $70,000 per month with a 3% annual escalator; lease extended through November 2028.
• East coast service/operations facility: Atlanta, Georgia, ~4,900 sq ft; monthly rent about $6,000; lease term through April 30, 2028.
• Manufacturing and sourcing:
  • Battery cells sourced from a single supplier in China; Flux does not manufacture cells.
  • Other components sourced from multiple U.S. vendors; procurement practices aim to diversify suppliers to mitigate supply chain risks.
• Production and quality: Lean manufacturing at the Vista site with six assembly lines; ongoing efforts to improve supply chain and cost structure. BMS designed for interoperability with multiple cell suppliers.

Intellectual property and branding

• Patents: Three issued U.S. patents related to lithium‑ion energy storage technologies (cycle optimization, battery health monitoring, AI‑assisted cell balancing).
• Trademarks: Registered marks include Flux, Flux Power, Flux Power logo, Lift, and SkyBMS; SkyEMS is a pending mark.
• Trade secrets and know‑how are protected through NDAs and contractual arrangements.

Regulation, safety, and risk posture

• Product safety and environmental regulations apply to manufacturing, storage, and disposal of batteries.
• Tariffs and trade policy affecting Chinese battery cells have influenced the company’s cost structure; Flux has pursued supply chain adjustments and pricing actions in response.
• Principal business risks include customer concentration, potential product quality issues, and reliance on a single battery cell supplier.
• The company maintains cyber and data security programs, incident response planning, and cybersecurity insurance.

Strategic focus

• Near‑term objective: Achieve profitability through supply chain improvements, gross‑margin expansion, product redesigns to lower costs, and scaling software/telemetry (SkyEMS) as a value add.
• Growth channels: Direct sales, OEM partnerships, and a nationwide service network; expanding product offerings and integrating software to create new monetization streams.

Summary

Flux Power is a California‑based designer and supplier of modular LiFePO4 energy storage packs and telemetry software for industrial equipment, primarily serving material handling and GSE markets. The company offers a proprietary BMS and the SkyEMS telemetry platform. Key challenges include customer concentration, reliance on a single Chinese cell supplier, and liquidity and debt‑covenant risks. Flux is pursuing revenue growth through product expansion, software monetization, operational improvements, and strategic financing arrangements.