VISTA, Calif. - Flux Power Holdings, Inc. (NASDAQ: FLUX), specializing in advanced lithium-ion batteries for industrial and commercial use, has announced a strategic partnership with a leading forklift original equipment manufacturer (OEM) to introduce a new private label battery program. This collaboration is aimed at expanding the reach of Flux Power's S-Series batteries, which have recently achieved UL Type EE certification.
The S-Series batteries are designed to meet the high safety standards required in hazardous work environments. This certification is expected to provide customers with additional assurance of the batteries' safety. The partnership will allow the OEM to offer Flux Power's lithium-ion technology under their own brand, potentially increasing the accessibility of these advanced energy solutions in the material handling industry.
Ron Dutt, CEO of Flux Power, expressed the company's commitment to accelerating the adoption of clean energy solutions within industrial settings. He emphasized that the introduction of the S-Series batteries through this private label program underlines their dedication to safety, quality, and customer satisfaction.
The S-Series batteries are noted for their enhanced safety features, superior performance, and environmental sustainability. They offer a high-performance alternative to traditional lead-acid batteries, with the potential to improve efficiency and productivity while also contributing to environmental goals by reducing emissions and maintenance-related waste.
Flux Power's announcement comes as the material handling industry is increasingly seeking sustainable and efficient energy solutions. The company's lithium-ion technology is positioned to meet these market demands, offering reliability and performance that could set new industry standards.
Flux Power designs and sells lithium-ion energy storage solutions for a variety of sectors, including material handling and airport ground support equipment. Their battery packs are touted to offer better performance, lower ownership costs, and more environmentally friendly alternatives compared to traditional solutions.
The information for this article is based on a press release statement from Flux Power Holdings, Inc. Please note that forward-looking statements in the press release involve risks and uncertainties that could cause actual results to differ materially from those projected.
In other recent news, Flux Power Holdings has announced a restatement of its financial statements for fiscal year 2023 and certain interim periods of fiscal year 2024 due to an inventory oversight of $1.7 million. CEO Ron Dutt and new CFO Kevin Royal assured that measures are being taken to prevent such issues in the future. Furthermore, Flux Power's $16 million revolving credit facility with Gibraltar Business Capital is expected to remain accessible.
In addition, the company has made changes to its loan agreement with Gibraltar Business Capital, leading to a non-refundable payment of $50,000. This adjustment is a part of Flux Power's ongoing financial management efforts. The company reported revenues of $14.5 million in the third quarter of fiscal year 2024, which is a decrease from the previous year's $15.1 million. The net loss also broadened to $2.6 million from a loss of $1.4 million year-over-year.
On the product development front, Flux Power launched the L36 battery pack for Class 1 3-Wheel Counterbalance forklifts, which received endorsement from a major Original Equipment Manufacturer in the material handling industry. The company also hinted at a forthcoming private label program with another top Forklift OEM. As part of these recent developments, Flux Power is actively developing higher-voltage lithium batteries and exploring expansion into adjacent markets, including military and medical batteries.
InvestingPro Insights
As Flux Power Holdings, Inc. (NASDAQ: FLUX) embarks on a strategic partnership to expand its lithium-ion battery offerings, the financial landscape presents a mixed picture according to InvestingPro insights. The company's market capitalization stands at $49.05 million, reflecting its position in the market. Despite the potential for growth in the material handling industry, analysts have revised their earnings expectations downwards for the upcoming period, indicating concerns about the company's short-term profitability.
Moreover, Flux Power's current Price/Book ratio is at a high of 9.06, suggesting that the stock is trading at a premium compared to the company’s book value. This could be a point of consideration for investors who are evaluating the stock's valuation. Additionally, the company has not been profitable over the last twelve months, with a negative P/E ratio of -6.88, which may raise questions about its near-term financial health.
Investors should also note that Flux Power does not pay a dividend, which could influence the investment decisions of those seeking regular income streams from their holdings. Despite these financial metrics, the company's recent certification and partnership could signal a strategic move towards capturing a larger share of the sustainable energy solutions market. For those interested in a deeper dive, there are additional InvestingPro Tips available that could further inform investment decisions.
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