VISTA, Calif. – Flux Power Holdings, Inc. (NASDAQ: FLUX), known for its development of lithium-ion energy storage solutions, has received a notice from Nasdaq's Listing Qualifications Department due to the delayed filing of its annual report. The company was expected to file its Form 10-K for the fiscal year that concluded on June 30, 2024, but failed to meet the deadline.
The notification, dated October 16, 2024, does not immediately affect Flux Power's stock listing on the Nasdaq exchange. However, the company must now submit a plan within 60 days to regain compliance with Nasdaq's Listing Rule 5250(c)(1). If the plan is accepted, Nasdaq may allow up to 180 days from the original due date for the annual report to be filed.
Flux Power has stated it is working diligently to complete the necessary financial documents and intends to file the Form 10-K promptly to resolve the compliance issue.
The company specializes in the production and sale of advanced lithium-ion battery packs for industrial and commercial applications, including material handling and airport ground support. These battery solutions are designed to offer a more efficient, cost-effective, and environmentally friendly alternative to traditional lead-acid and propane-based options.
The delay in filing the annual report has triggered concerns regarding the company's internal financial reporting and controls. While the press release from Flux Power includes forward-looking statements about the expected timing for filing the Form 10-K and regaining compliance, it also highlights that these are subject to risks and uncertainties that could cause actual results to differ from projections.
Investors and stakeholders are keeping a close watch on the situation, as the company navigates through the challenges of meeting regulatory requirements and maintaining its standing on the Nasdaq stock exchange. The information in this article is based on a press release statement from Flux Power Holdings, Inc.
In other recent news, Flux Power Holdings has reported 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. This restatement follows the company's partnership with a leading forklift original equipment manufacturer (OEM) to introduce a new private label battery program, aimed at expanding the reach of Flux Power's S-Series batteries. In addition, the company has made changes to its loan agreement with Gibraltar Business Capital, leading to a non-refundable payment of $50,000.
Flux Power's revenues decreased to $14.5 million in the third quarter of fiscal year 2024, a decline 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. Flux Power has also launched the L36 battery pack for Class 1 3-Wheel Counterbalance forklifts, receiving endorsement from a major OEM in the material handling industry.
These recent developments also include Flux Power's efforts to develop higher-voltage lithium batteries and expand into adjacent markets, including military and medical batteries. It's noteworthy that these facts are based on recent press releases from Flux Power Holdings, and they reflect the company's ongoing activities without any speculative or subjective assessment.
InvestingPro Insights
The recent notification from Nasdaq regarding Flux Power's delayed annual report filing comes amid a challenging period for the company. According to InvestingPro data, Flux Power's stock has experienced a significant decline, with a 22.76% drop in the last three months and a 26.94% fall over the past six months. This downward trend aligns with the company's current regulatory compliance issues.
InvestingPro Tips highlight that Flux Power is not currently profitable, with a negative P/E ratio of -7.39. This financial performance may be contributing to the company's difficulties in meeting reporting deadlines. Additionally, the tip indicating that three analysts have revised their earnings downwards for the upcoming period suggests ongoing concerns about the company's near-term financial outlook.
Despite these challenges, Flux Power maintains a market capitalization of $53.38 million, reflecting some investor confidence in its long-term potential in the lithium-ion energy storage solutions market. However, with a high Price to Book ratio of 9.8, the stock may be considered overvalued by some metrics, which could add pressure to the share price as the company works to resolve its compliance issues.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide valuable context to Flux Power's current situation and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.