Flux Power Holdings, Inc. (NASDAQ:FLUX), a provider of advanced energy storage solutions, has entered into an amendment to its loan and security agreement with Gibraltar Business Capital, LLC, modifying the financial covenants related to the company's EBITDA. The amendment, dated May 31, 2024, introduces changes to the EBITDA Minimum financial covenant, which is a key performance metric for the company.
In exchange for the amendment, Flux Power agreed to pay a non-refundable fee of $50,000 to Gibraltar Business Capital. This payment was made in cash as part of the agreement terms.
The amendment was initially intended to be reported to the Securities and Exchange Commission (SEC) on June 4, 2024, through a Form 8-K filing. However, due to an oversight by the company's Edgar agent, the filing was not completed as scheduled. The company has since rectified the issue and filed the necessary documentation with the SEC.
This adjustment to the loan terms reflects the company's ongoing financial management and its relationship with Gibraltar Business Capital. The details of the amendment are outlined in Exhibit 10.1 attached to the Form 8-K, which has been made publicly available as part of the company's regulatory filings.
This news is based on a press release statement and the information filed with the SEC.
In other recent news, Flux Power Holdings reported a challenging third quarter for fiscal year 2024, with revenues falling to $14.5 million from $15.1 million in the prior year. The company's net loss also widened to $2.6 million, up from a loss of $1.4 million year-over-year. Despite these challenges, Flux Power remains focused on revenue growth, cost reduction, and the introduction of new products.
In line with these recent developments, the company launched the L36 battery pack for Class 1 3-Wheel Counterbalance forklifts. This new product, featuring patented SkyBMS telematics and active cooling and heating systems, has received official endorsement from a major Original Equipment Manufacturer (OEM) in the material handling industry.
Flux Power also hinted at an upcoming private label program with another top Forklift OEM.
Furthermore, the company is actively developing higher-voltage lithium batteries and exploring expansion into adjacent markets, including military and medical batteries. These strategic moves are aimed at broadening the customer base and supporting the transition to lithium-ion technology.
InvestingPro Insights
As Flux Power Holdings, Inc. (NASDAQ:FLUX) navigates its financial landscape, real-time data from InvestingPro provides a clearer picture of the company's market position. With a market capitalization of $54.05 million, the company is facing challenges, as indicated by a negative P/E ratio of -7.34, which suggests that the company is not currently profitable. This aligns with an InvestingPro Tip that analysts do not expect the company to be profitable this year. Additionally, the stock has experienced significant volatility, with a 27.19% decrease over the last month and a 37.69% decrease over the last six months, underscoring the concerns reflected in another InvestingPro Tip that the stock has fared poorly over these periods.
Despite the challenges, it's important to note that Flux Power's revenue stands at $63.85 million over the last twelve months as of Q3 2024. However, this represents a slight decrease of 2.19% in revenue growth during the same period. The company's gross profit margin remains at 29.28%, which could be a positive sign for potential operational efficiency improvements. With these insights, investors are better equipped to assess the company's performance and future prospects.
For more detailed analysis and additional InvestingPro Tips, investors can visit InvestingPro, which includes a total of 7 tips for Flux Power Holdings, Inc.
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