Thu, Mar 20, 8:13 PM (40 days ago)
**Flux Power Holdings, Inc. (FLUX) Q4 2024 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q4 2024 revenue was $16.83 million, down 8% from $18.20 million in Q4 2023 due to lower demand in the material handling market and lower average selling prices. - **Profit Margins:** Gross profit margin increased to 32% in Q4 2024 from 30% in Q4 2023, driven by a decrease in average costs, partially offset by higher warranty costs. - **Operating Expenses:** Increased by 30% in Q4 2024, primarily due to variable incentive compensation, severance, and professional fees related to financial restatements. - **Net Loss:** Q4 2024 net loss was $1.89 million, up from $0.90 million in Q4 2023, mainly due to increased operating expenses. **Cash Flow:** - **Operating Cash Flow:** Positive at $3.77 million for the six months ended December 31, 2024, compared to a negative $4.05 million in the same period of 2023. - **Investing Cash Flow:** Negative at $0.32 million for the six months ended December 31, 2024, primarily due to equipment purchases. - **Financing Cash Flow:** Negative at $3.22 million for the six months ended December 31, 2024, mainly due to repayments under the working capital line of credit. **Earnings Changes and Trends:** - **Adjusted EBITDA:** Negative $0.95 million in Q4 2024, compared to a positive $0.21 million in Q4 2023. - **Liquidity:** As of December 31, 2024, the company had $0.88 million in cash, with $6.3 million available under the GBC Credit Facility and $1.0 million available from Cleveland Capital. **Future Operations and Uncertainties:** - **Revenue Growth:** The company anticipates revenue growth and improved gross margins, but faces uncertainties due to delays in new orders and potential supply chain disruptions. - **Legal Proceedings:** The company is involved in several legal proceedings, including a securities class action and shareholder derivative lawsuit, which could impact its financial condition. - **Nasdaq Compliance:** The company is at risk of delisting from Nasdaq due to non-compliance with stockholders' equity requirements and late filings, which could negatively impact its stock price and market liquidity. **Management Changes:** - **CEO Transition:** Ronald F. Dutt retired, and Krishna Vanka was appointed as the new CEO and President, effective March 10, 2025. - **Strategic Initiatives:** The company is focusing on expanding sales and marketing, improving customer support, and enhancing production efficiencies to drive growth.