VISTA, Calif. - Flux Power Holdings, Inc. (NASDAQ: FLUX), known for its development of lithium-ion energy storage solutions, has been notified by the Nasdaq Stock Market of non-compliance with its listing rules. The company failed to file its required quarterly and annual reports with the SEC, triggering the notice.
On November 20, 2024, Flux Power was informed by the Listing Qualifications Department of Nasdaq that it had not met the filing requirements for its Form 10-Q for the quarter ended September 30, 2024, and its Form 10-K for the fiscal year ended June 30, 2024. This non-compliance does not immediately affect the listing of the company's common stock on the Nasdaq.
To address this issue, Flux Power must submit a plan to regain compliance by December 16, 2024. If the plan is accepted, Nasdaq may allow the company up to 180 days from the original due date of the Form 10-K, which would be April 14, 2025, to file the necessary reports and regain compliance.
The company has expressed its intention to work diligently to complete and file the overdue Form 10-K and Form 10-Q as promptly as possible to resolve the compliance issue.
Flux Power specializes in the design, manufacture, and sale of advanced lithium-ion battery packs for a variety of industrial and commercial applications, including material handling and airport ground support. These battery packs are marketed as a higher performing, cost-effective, and environmentally friendly alternative to traditional lead-acid and propane-based solutions.
The information presented in this article is based on a press release statement from Flux Power Holdings, Inc.
In other recent news, Flux Power Holdings is undergoing financial restatements due to noncash inventory write-downs and related adjustments, totaling approximately $4.9 million. This process spans multiple quarters over several years, including the fiscal year 2023 and interim periods of fiscal year 2024. The company has also faced a Nasdaq compliance issue due to a delayed annual report for the fiscal year ending June 30, 2024, and is now required to submit a plan to regain compliance within 60 days.
In another significant development, Flux Power has announced a strategic partnership with a leading forklift original equipment manufacturer (OEM) to introduce a new private label battery program. This collaboration aims to expand the reach of Flux Power's S-Series batteries.
On the financial front, Flux Power reported a decrease in revenues to $14.5 million in the third quarter of fiscal year 2024, down from $15.1 million in the previous year. The company's net loss also broadened to $2.6 million, an increase from a loss of $1.4 million year-over-year. These are some of the recent developments for Flux Power Holdings.
InvestingPro Insights
Recent data from InvestingPro sheds light on Flux Power's financial situation, providing context to the company's Nasdaq listing challenges. As of the last twelve months ending Q3 2024, Flux Power reported revenue of $63.85 million, with a concerning revenue decline of 2.19%. This aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
The company's financial health appears precarious, with an adjusted operating income of -$5.39 million and an operating income margin of -8.44% for the same period. These figures support another InvestingPro Tip suggesting that Flux Power may have trouble making interest payments on its debt.
Flux Power's stock performance has been notably weak, with a one-month price total return of -32.68% and a six-month return of -34.19%. The stock is currently trading at 35.31% of its 52-week high, reflecting significant investor concern. This performance aligns with an InvestingPro Tip noting that the stock has fared poorly over the last month and is trading near its 52-week low.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Flux Power, providing a deeper understanding of the company's financial position and market performance.
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