Flux Power Holdings, Inc. (FLUX) reports earnings

The report was filed on March 20, 2025

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Flux Power Holdings, Inc. (FLUX-6.44%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.

The filing reports revenues of $16,830,000 for the quarter, down from $18,203,000 in the same period the previous year. The decrease is attributed to lower demand in the material handling market and changes in product mix.

Cost of sales for the quarter was $11,367,000, representing 68% of sales, compared to 70% in the same quarter of the previous year. The decrease in cost ratio is due to product cost improvement initiatives.

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The company reported a gross profit of $5,463,000 for the quarter, compared to $5,381,000 in the previous year, with the increase attributed to lower average costs.

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Selling and administrative expenses increased to $5,985,000 from $4,593,000, primarily due to variable incentive compensation and professional fees related to financial restatements.

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Research and development expenses decreased to $957,000 from $1,235,000, mainly due to lower salaries and stock-based compensation.

Net loss for the quarter was $1,887,000, compared to $896,000 in the previous year. The increase in net loss is primarily due to higher operating expenses.

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Cash provided by operating activities was $3,774,000, while cash used in investing and financing activities was $317,000 and $3,217,000, respectively.

Flux Power had a working capital of $25,506,000 as of December 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.

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The filing details various financial agreements, including amendments to the loan and security agreement with Gibraltar Business Capital.

Flux Power does not anticipate cash dividend payments to common stockholders in the near future.

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The company identified material weaknesses in its internal controls over financial reporting due to insufficient technical accounting expertise.

Flux Power continues to focus on expanding its product offerings and improving its supply chain and customer partnerships.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Flux Power Holdings, Inc. quarterly 10-Q report dated March 20, 2025. To report an error, please email earnings@qz.com.