Flux Power Holdings, Inc. reported its financial results for the second quarter of fiscal year 2024, revealing a revenue of $16.83 million, a decrease of 8% from $18.20 million in the same quarter of the previous year. For the six-month period ending December 31, 2024, revenues were nearly flat at $32.96 million compared to $32.99 million in the prior year. The company experienced a net loss of $1.89 million for the quarter, up from a loss of $896,000 in the same period last year, and a total net loss of $3.56 million for the six months, compared to $3.08 million in the previous year.
The decline in revenue was attributed to lower demand in the material handling market and a shift in product mix leading to reduced average selling prices. Despite the revenue drop, the gross profit margin improved to 32% for the quarter, up from 30% a year earlier, primarily due to cost reduction initiatives. Operating expenses increased significantly, with selling and administrative expenses rising to $5.99 million from $4.59 million, largely due to variable compensation and professional fees related to a multi-year financial restatement.
Operationally, Flux Power's backlog as of February 28, 2025, stood at approximately $19.5 million, reflecting delays in new orders primarily due to reduced capital spending in the market sector. The company has been focusing on expanding its vendor strategy to improve sourcing and purchasing activities, which has led to better inventory management and cost control. Additionally, Flux Power is enhancing its product offerings, including a new partnership aimed at improving the recycling process for end-of-life lithium-ion batteries.
Looking ahead, Flux Power's management expressed concerns about its ability to continue as a going concern, citing insufficient cash resources to meet anticipated operational needs over the next twelve months. As of January 31, 2025, the company had a cash balance of $0.4 million and available funding under its credit facilities, but management indicated that these resources may not be adequate. The company is exploring various strategies to improve profitability and secure additional funding, including potential price increases for its energy storage solutions and cost-saving initiatives.
About Flux Power Holdings, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.