Flux Power Provides Update on Inventory Restatement and Timeline to Report Fiscal FY 2024 and Q1 2025 Financial Results

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VISTA, Calif., November 15, 2024--(BUSINESS WIRE)--Flux Power Holdings, Inc. (NASDAQ: FLUX), a developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, today provided an update regarding its previously discussed restatement process and subsequent SEC filings for the fiscal fourth quarter and year ended June 30, 2024, and the fiscal first quarter ended September 30, 2024.

On September 5, 2024, Flux announced that it had identified approximately $1.7 million of excess and obsolete inventory primarily related to product innovation and design of its products during a period of rapid growth over the last several years. A further detailed review of this and related items has resulted in estimated noncash inventory write-downs of approximately $4.4 million and related noncash warranty related items of approximately $0.5 million, totaling adjustments of approximately $4.9 million. This impact is not a one-time adjustment but impacting multiple quarters over multiple years. To properly reflect the obsolete inventory, the Company is currently in the process of restating previously issued financial statements for fiscal year 2023 and the interim periods of fiscal year 2024, which will be reflected in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024. The Flux team has completed its internal review of the restatements and 10-K and is working with its auditors to file them as soon as practicable, which reflects a large body of work over an extended period of time. Upon completion, Flux will work to complete the 10-Q filing for the quarter ending September 30, 2024.

"Flux continues to execute on our strategy, which includes expanding sales and marketing initiatives to secure new customer relationships, developing additional technologies and building new partnerships, and we are making good progress as we strive to deliver on our targeted sales trajectory," said Ron Dutt, CEO of Flux Power. "Our outlook remains positive as we diligently follow our roadmap to achieve profitability by focusing on continued innovation, maintaining a disciplined cost structure and driving organic growth. We look forward to providing our shareholders with financial updates as soon as we finalize our Fiscal Year 2024 10-K and First Quarter 2025 10-Q filings."

Additional information is available in the Form 12b-25 filed with the Securities and Exchange Commission today and the Form 8-K filed on September 5, 2024.

About Flux Power Holdings, Inc.

Flux Power (NASDAQ: FLUX) designs, manufactures, and sells advanced lithium-ion energy storage solutions for electrification of a range of industrial and commercial sectors including material handling, airport ground support equipment (GSE), and stationary energy storage. Flux Power’s lithium-ion battery packs, including the proprietary battery management system (BMS) and telemetry, provide customers with a better performing, lower cost of ownership, and more environmentally friendly alternative, in many instances, to traditional lead acid and propane-based solutions. Lithium-ion battery packs reduce CO2 emissions and help improve sustainability and ESG metrics for fleets. For more information, please visit www.fluxpower.com.

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