Flux Power Holdings, Inc. (NASDAQ: FLUX), a developer of advanced lithium-ion industrial batteries for commercial and industrial equipment, today reported financial results for its third quarter of fiscal year 2021 (Q3’21).
Financial Highlights:
Strategic Highlights:
Q3’21 Financial Results
Revenue: Q3’21 revenue increased by 38% to $7.0M compared to $5.1M in Q3’20, driven by increases in sales of larger capacity product lines.
Gross Profit: Q3’21 gross profit improved by 158% to $1.7M compared to a gross profit of $649K in Q3’20, principally reflecting higher revenue and reduced material costs through volume purchasing.
Selling & Administrative: Expenses increased to $3.1M in Q3’21 from $2.6M in Q3’20, reflecting increases in personnel related expenses, insurance premiums, and freight expenses.
Research & Development: Expenses remained constant at $1.5M in Q3’21, compared to Q3’20, reflecting continued product development activities and product testing.
Net Loss: Q3’21 net loss decreased to $1.7M from a net loss of $4.0M in Q3’20, principally reflecting increased gross profit, other income due to PPP loan forgiveness, and decreased interest expense.
Balance Sheet: The balance sheet was strengthened during Q3’21 from conversion of all outstanding short-term debt of $2.4M during the quarter, resulting in the elimination of all debt. Further, $1.7M was raised under the ATM (At-the-Market) facility during Q3’21.
Fiscal Year 2021 Outlook
We anticipate that new customer acquisition will continue, supplementing continued orders from existing customers, with additional opportunities facilitated by the next-generation M24 lithium-ion battery pack for the high-volume end rider segment. The airport ground support equipment business is experiencing a resurgence following the COVID-19 impact.
We believe Flux Power is in a strong place to continue expansion to meet the demand for lithium-ion battery packs. However, supply chain challenges, both for semi-conductors, raw materials, and generic issues in ocean freight, present a risk to this growth, despite mitigation plans in place.
“We are excited by the initial customer reception of our next-generation M24 lithium-ion battery pack for the end rider and center rider market, which is a high-volume forklift sector,” CEO Ron Dutt stated. “We believe it’s a great addition to our full product lineup which provides a high value proposition to our customers with large material handling fleets.”
Conference Call
Management will hold a conference call today starting at 4:30 PM ET. Investors and analysts interested in joining the call are invited to dial (833) 428-8374 or (270) 240-0543. The conference ID is 7359227. A recording of the conference call will be uploaded to the Flux Power website once it is available.
About Flux Power Holdings, Inc. (www.fluxpower.com)
Flux Power designs, develops, manufactures, and sells advanced lithium-ion energy storage solutions for lift trucks, airport ground support equipment (GSE), stationary energy storage, and other industrial and commercial applications. Flux Power’s “LiFT Pack” battery packs, including its proprietary battery management system (BMS), provide its customers with a better performing, higher value, and more environmentally friendly alternative as compared to traditional lead acid and propane-based solutions.
Cautionary Statement Regarding Forward-Looking Statements
This release contains projections and other "forward-looking statements" relating to Flux Power’s business, that are often identified using "believes," "expects" or similar expressions. Forward-looking statements involve several estimates, assumptions, risks, and other uncertainties that may cause actual results to be materially different from those anticipated, believed, estimated, expected, etc. Such forward-looking statements include impact of COVID-19 on Flux Power’s business, results and financial condition; Flux Power’s ability to obtain raw materials and other supplies for its products at competitive prices and on a timely basis, particularly in light of the potential impact of the COVID-19 pandemic on its suppliers and supply chain; the development and success of new products, projected sales, Flux Power’s ability to timely obtain UL Listing for its products, Flux Power’s ability to fund its operations, distribution partnerships and business opportunities and the uncertainties of customer acceptance and purchase of current and new products. Actual results could differ from those projected due to numerous factors and uncertainties. Although Flux Power believes that the expectations, opinions, projections, and comments reflected in these forward-looking statements are reasonable, they can give no assurance that such statements will prove to be correct, and that the Flux Power’s actual results of operations, financial condition and performance will not differ materially from the results of operations, financial condition and performance reflected or implied by these forward-looking statements. Undue reliance should not be placed on the forward-looking statements and Investors should refer to the risk factors outlined in our Form 10-K, 10-Q and other reports filed with the SEC and available at www.sec.gov/edgar. These forward-looking statements are made as of the date of this news release, and Flux Power assumes no obligation to update these statements or the reasons why actual results could differ from those projected.
Flux, Flux Power, and associated logos are trademarks of Flux Power Holdings, Inc. All other third-party brands, products, trademarks, or registered marks are the property of and used to identify the products or services of their respective owners.
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FLUX POWER HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
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| March 31, 2021 (Unaudited) |
| June 30, 2020 |
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ASSETS |
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Current assets: |
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Cash | $ | 2,432,000 |
| $ | 726,000 |
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Accounts receivable |
| 4,864,000 |
|
| 3,069,000 |
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Inventories |
| 8,611,000 |
|
| 5,256,000 |
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Other current assets |
| 780,000 |
|
| 787,000 |
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Total current assets |
| 16,687,000 |
|
| 9,838,000 |
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Right of use asset |
| 3,138,000 |
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| 3,435,000 |
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Other assets |
| 132,000 |
|
| 174,000 |
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Property, plant and equipment, net |
| 1,044,000 |
|
| 528,000 |
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Total assets | $ | 21,001,000 |
| $ | 13,975,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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Current liabilities: |
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Accounts payable | $ | 6,050,000 |
| $ | 4,648,000 |
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Accrued expenses |
| 1,750,000 |
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| 1,400,000 |
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Deferred revenue |
| 115,000 |
|
| 4,000 |
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Customer deposits |
| 155,000 |
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| 1,563,000 |
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Due to Factor |
| - |
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| 469,000 |
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Short-term loans – related party |
| - |
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| 2,057,000 |
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Line of credit - related party |
| - |
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| 5,290,000 |
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Financing lease payable |
| - |
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| 28,000 |
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Office lease payable, current portion |
| 419,000 |
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| 288,000 |
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Accrued interest |
| 3,000 |
|
| 50,000 |
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Total current liabilities |
| 8,492,000 |
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| 15,797,000 |
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Long term liabilities: |
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Paycheck Protection Program loan payable |
| - |
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| 1,297,000 |
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Office lease payable, less current portion |
| 2,979,000 |
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| 3,301,000 |
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Total liabilities |
| 11,471,000 |
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| 20,395,000 |
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Stockholders’ equity (deficit): |
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Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding |
| - |
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| - |
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Common stock, $0.001 par value; 30,000,000 shares authorized; 13,003,795 and 7,420,487 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively |
| 13,000 |
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| 7,000 |
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Additional paid-in capital |
| 72,002,000 |
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| 46,985,000 |
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Accumulated deficit |
| (62,485,000 | ) |
| (53,412,000 | ) | ||
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Total stockholders’ equity (deficit) |
| 9,530,000 |
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| (6,420,000 | ) | ||
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Total liabilities and stockholders’ equity (deficit) | $ | 21,001,000 | $ | 13,975,000 |
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FLUX POWER HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
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| Three Months Ended March 31, |
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| Nine Months Ended March 31, |
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| 2021 |
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| 2020 |
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| 2021 |
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| 2020 |
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Revenues |
| $ | 6,964,000 |
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| $ | 5,051,000 |
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| $ | 17,932,000 |
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| $ | 10,585,000 |
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Cost of sales |
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| 5,287,000 |
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| 4,402,000 |
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| 13,893,000 |
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| 9,494,000 |
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Gross profit |
|
| 1,677,000 |
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| 649,000 |
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| 4,039,000 |
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| 1,091,000 |
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Operating expenses: |
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Selling and administrative expenses |
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| 3,122,000 |
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| 2,584,000 |
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| 9,177,000 |
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| 7,075,000 |
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Research and development |
|
| 1,523,000 |
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| 1,527,000 |
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| 4,624,000 |
|
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| 3,888,000 |
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Total operating expenses |
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| 4,645,000 |
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| 4,111,000 |
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| 13,801,000 |
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| 10,963,000 |
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Operating loss |
|
| (2,968,000 | ) |
|
| (3,462,000 | ) |
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| (9,762,000 | ) |
|
| (9,872,000 | ) |
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Other income |
|
| 1,307,000 |
|
|
| - |
|
|
| 1,307,000 |
|
|
| - |
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Interest expense |
|
| (64,000 | ) |
|
| (503,000 | ) |
|
| (618,000 | ) |
|
| (1,214,000 | ) |
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Net loss |
| $ | (1,725,000 | ) |
| $ | (3,965,000 | ) |
| $ | (9,073,000 | ) |
| $ | (11,086,000 | ) |
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Net loss per share - basic and diluted |
| $ | (0.14 | ) |
| $ | (0.78 | ) |
| $ | (0.80 | ) |
| $ | (2.17 | ) |
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Weighted average number of common shares outstanding - basic and diluted |
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| 12,499,870 |
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| 5,107,845 |
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| 11,300,229 |
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| 5,105,982 |
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| Last Trade: | US$1.70 |
| Daily Change: | 0.11 6.92 |
| Daily Volume: | 117,203 |
| Market Cap: | US$28.360M |
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