Gross Margins improved to 22.1%
Flux Power Holdings, Inc. (Nasdaq: FLUX), a developer of
advanced lithium-ion battery packs for commercial and industrial
equipment, today reported financial results for its fourth quarter
(Q4’21) and fiscal year (FY‘21) ended June 30, 2021.
Financial Highlights:
- Q4’21 revenue grew 33% to $8.3M compared to Q4’20
revenue of $6.3M
- FY’21 revenue increased 56% to $26.3M vs FY’20
revenue of $16.8M
- Q4’21 gross margin increased to 21.0% compared to
17.5% in Q4’20
- FY’21 gross margin improved to 22.1% vs FY’20
gross margin of 13.0%
Strategic Highlights:
- Uplisted on the Nasdaq Capital Market under the symbol
“FLUX.” Prior to the listing on the Nasdaq Capital Market, Flux
Power’s common stock was quoted on the OTCQB. Raised $12.4M in
equity capital, increasing its shareholder base, including
institutional investors. Converted $5.2M of debt to equity,
eliminating all debt, to strengthen the balance sheet and capital
structure.
- Launched next generation lithium-ion battery pack for
end riders & center riders - feedback from customers has been
positive with substantial orders.
- Initiated deliveries to the world’s largest meat processor
and two major customers (paper products & chemicals
manufacturer and a packaging manufacturer).
- Resumed deliveries that were deferred by a global
airline during the travel disruptions caused by the COVID
pandemic.
- Signed partnership agreement with CLARK Material Handling
Company to supply lithium-ion batteries.
- Initiated deliveries of a new proprietary battery pack
to a provider of “autonomous electric shuttle vehicles”.
- Announced three patents pending for advanced lithium-ion
battery technology.
- Reached milestone of 9,000 battery packs in the field
(surpassed by 10,000 battery packs in July - FY’22), while being
challenged by global supply change disruption.
- Expanded into additional warehouse space to accommodate
growth and allocate more space for inventory and production
lines.
- Named to the Financial Times “Americas Fastest Growing
Companies” List. Received the 2020 Supply & Demand Chain
Executive Green Supply Chain Award. Named to Food Logistics’ 2021
Top Green Providers List.
“Our 2021 Fiscal Year was quite a challenge, with supply chain
disruptions and continuing effects from the COVID pandemic,” Flux
Power CEO Ron Dutt commented. “Despite these challenges, we
delivered substantial revenue growth and gross margin improvements,
while launching new products and obtaining UL listings.”
Q4’21 Financial Results
Revenue: Q4’21 revenue increased 33% to $8.3M compared to
$6.3M in Q4’20, driven by sales of larger LiFT Packs. Q4’21
represented the 12th consecutive quarter of year-over-year revenue
increases.
Gross Profit: Q4’21 gross profit improved to $1.8M
compared to a gross profit of $1.1M in Q4’20 principally reflecting
higher sales volumes and benefits from Flux Power’s revenue growth
and gross margin improvement program.
Selling & Administrative: Expenses increased to $3.4M
in Q4’21 from $2.7M in Q4’20, principally reflecting increased
staffing to support expanded operations and growth.
Research & Development: Expenses increased to $2.0M
in Q4’21, compared to $1.1M in Q4’20 reflecting continued product
range evolution and optimization, including high voltage battery
packs (400 Volts), and developed adaptions of battery packs for
“second sourcing” of battery cells.
Net Loss: Q4’21 net loss increased to $3.7M from a loss
of $3.3M in Q4’20, principally reflecting higher operating costs
and interest expense.
FY’21 Financial Results
Revenue: FY’21 revenues rose 56% to $26.3M compared to
$16.8M in FY’20, reflecting the continued momentum rolling out full
lineup of large LiFT Packs and adding large new Fortune 500
customers with large fleets having multi-year ordering demands.
Gross Profit: FY’21 gross profit improved to $5.8M
compared to $2.2M in FY’20, based on higher sales and improved
gross margins reflecting the benefit of sourcing initiatives, lower
prices from higher volume purchasing, and specific design cost
reductions.
Selling & Administrative: Expenses increased to
$12.6M in FY’21 from $9.8M in FY’20, principally due to additional
cash and stock-based compensation expense related to new hires
across the business to facilitate production and market growth, and
legal fees supporting debt and equity issuances.
Research & Development: Expenses increased to $6.7M
in FY’21 from $5.0M in FY’20, reflecting development costs
supporting expanded product offering as well as third party
certification efforts such UL Listing and UN38.3 (transportation)
requirements.
Net Loss: Net loss decreased to $12.8M (a loss of $1.08
per share) in FY’21 from a net loss of $14.3M (a loss of $2.80 per
share) in FY’20 mainly due to higher operating expenses and
increased interest expense. Per share results are based on 11.8M
and 5.1M weighted average basic shares outstanding at the end of
FY’21 and FY’20, respectively.
Capital Structure
Flux Power completed equity private placements during Q1’21
totaling $3.2M. Additionally, a total debt conversion to equity of
$5.2M, combined with debt repayment of $2.6M was achieved resulting
in a debt free condition at year-end.
On August 18, 2020, Flux Power closed an underwritten public
offering of its common stock priced at a public offering for gross
proceeds of approximately $12.4 million, which included the full
exercise of the underwriter's over-allotment option to purchase
additional shares, prior to deducting underwriting discounts and
commissions and offering expenses payable by Flux Power. A total of
3,099,250 shares of common stock were issued in the offering,
including the full exercise of the over-allotment option.
Flux Power raised additional gross proceeds of $12.7M in an ATM
Offering, prior to deducting commissions and other offering related
expenses, and issued an aggregate of 978,782 shares of common stock
at an average price of $12.93 per share in the offering.
Fiscal Year 2022 Outlook
Flux Power anticipates revenue growth to continue its FY’21
momentum in FY’22 reflecting: (i) acquisition of new Fortune 500
customers; (ii) launching new product innovations; (iii) and
continued mitigation of supply chain challenges.
The supply chain disruption in the global marketplace has
impacted Flux Power in past months reflecting delays in shipments
from Asia, higher steel prices, scarcity of electronic components,
and higher shipping costs. While Flux Power customer deliveries of
battery packs have been delayed in some cases, no customer orders
have been lost, only deferred. To that point, total backlog, or
open sales orders, total $18M as of this date. Mitigation actions
have been implemented to address the impact to supply chain
disruption, while anticipating continued impact but with a gradual
recovery.
The first quarter (Q1’22) of the fiscal year is a seasonally
slower revenue quarter, reflecting customers not purchasing or
installing new equipment over the historically slower summer months
of July and August. However, Flux Power anticipates significant
year over year growth for the quarter, but a lower growth quarter
compared with the prior two quarters Flux Power also expects to
further enhance gross margins across its product lines through
implementation of pricing actions and a series of clearly defined
initiatives to advance technology, design, production and
purchasing efficiencies, as well as benefiting from growing
economies of scale.
About Flux Power Holdings, Inc. (www.fluxpower.com)
Flux Power designs, develops, manufactures, and sells advanced
lithium-ion energy storage solutions for lift trucks, and other
industrial equipment including airport ground support equipment
(GSE), solar energy storage, and other commercial applications. Our
“LiFT Pack” battery packs, including our proprietary battery
management system (BMS) and telemetry, provide our 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.
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 by the use of "believes," "expects" or similar
expressions. Forward-looking statements involve a number of
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 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 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.
Follow us at:
Blog: Flux Power Blog News Flux Power News Twitter: @FLUXpwr
LinkedIn: Flux Power
FLUX POWER HOLDINGS,
INC.
CONSOLIDATED BALANCE
SHEETS
Years Ended June 30,
2021
2020
ASSETS
Current assets:
Cash
$
4,713,000
$
726,000
Accounts receivable
6,097,000
3,069,000
Inventories
10,513,000
5,256,000
Other current assets
417,000
787,000
Total current assets
21,740,000
9,838,000
Right of use asset
3,035,000
3,435,000
Other assets
131,000
174,000
Property, plant and equipment, net
1,356,000
528,000
Total assets
$
26,262,000
$
13,975,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIT)
Current liabilities:
Accounts payable
$
7,175,000
$
4,648,000
Accrued expenses
2,583,000
1,400,000
Deferred revenue
24,000
4,000
Customer deposits
171,000
1,563,000
Due to factor
-
469,000
Short-term loans – related party
-
2,057,000
Line of credit - related party
-
5,290,000
Financing lease payable, current
portion
-
28,000
Office lease payable, current portion
435,000
288,000
Accrued interest
2,000
50,000
Total current liabilities
10,390,000
15,797,000
Long term liabilities:
Paycheck Protection Program loan
payable
-
1,297,000
Office lease payable, less current
portion
2,866,000
3,301,000
Total liabilities
13,256,000
20,395,000
Stockholders’ equity (deficit):
Preferred stock, $0.001 par value; 500,000
shares authorized; none issued and outstanding
-
-
Common stock, $0.001 par value; 30,000,000
shares authorized; 13,652,164 and 7,420,487 shares issued and
outstanding at June 30, 2021 and June 30, 2020, respectively
14,000
7,000
Additional paid-in capital
79,197,000
46,985,000
Accumulated deficit
(66,205,000
)
(53,412,000
)
Total stockholders’ equity (deficit)
13,006,000
(6,420,000
)
Total liabilities and stockholders’ equity
(deficit)
$
26,262,000
$
13,975,000
FLUX POWER HOLDINGS,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three Months Ended June 30,
(Unaudited)
Years Ended June 30,
2021
2020
2021
2020
Net revenue
$
8,325,000
$
6,257,000
$
26,257,000
$
16,842,000
Cost of sales
6,574,000
5,162,000
20,467,000
14,656,000
Gross profit
1,751,000
1,095,000
5,790,000
2,186,000
Operating expenses:
Selling and administrative expenses
3,422,000
2,686,000
12,599,000
9,761,000
Research and development
2,045,000
1,085,000
6,669,000
4,973,000
Total operating expenses
5,467,000
3,771,000
19,268,000
14,734,000
Operating loss
(3,716,000
)
(2,676,000
)
(13,478,000
)
(12,548,000
)
Other income
-
-
1,307,000
-
Interest expense
(4,000
)
(574,000
)
(622,000
)
(1,788,000
)
Net loss
$
(3,720,000
)
$
(3,250,000
)
$
(12,793,000
)
$
(14,336,000
)
Net loss per share - basic and diluted
$
(0.28
)
$
(0.63
)
$
(1.08
)
$
(2.80
)
Weighted average number of common shares
outstanding - basic and diluted
13,146,732
5,157,184
11,796,217
5,118,713
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210922006000/en/
Media & Investor Relations: Justin Forbes
877-505-3589 info@fluxpower.com
Flux Power (NASDAQ:FLUX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Flux Power (NASDAQ:FLUX)
Historical Stock Chart
From Apr 2023 to Apr 2024