Flux Power Holdings, Inc. (FLUX) on Q2 2021 Results - Earnings Call Transcript
Operator: Ladies and gentlemen, thank you for standing by and welcome to Flux Power Quarter 2 of 2021 Financial Results and Company Update Conference Call. At this time all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. Joining us today are Ron Dutt, Flux Power’s Chief Executive Officer and Chuck Scheiwe, Flux Power’s Chief Financial Officer. Thank you. Without further ado, I would like to hand the conference over to your first speaker today, Mr. Justin Forbes. Sir, the floor is yours. Justin Forbes: Thank you. Good afternoon and welcome to the Flux Power’s Financial Results Call. This is Justin Forbes, Director of Marketing and Investor Relations for Flux Power. Ron Dutt, our CEO and Chuck Scheiwe, our CFO will present the results of operations for second quarter of fiscal year 2021 ended December 31st. Ronald Dutt: Good afternoon and thanks Justin for the introduction. As we entered the New Year 2021, we look back at the quarter ending December 31st. As one that saw COVID raging at a peak and was filled with geopolitical turmoil reaching a theory with chaos at the capital. But for Flux Power we continued our business momentum despite all that, and look forward to a much brighter year. Armed with vaccines, reduced restrictions and the ability at some point to meet face-to-face with our customers, potential new customers, suppliers and investors. So, let me begin my remarks with a brief review of our business growth and revenue. Our fiscal year 2021 Q2 revenue increased by 79% to a record 6.5 million, compared to 3.6 million for the same quarter last year. This quarterly increase continues our trajectory of over 10 consecutive quarters of year-over-year revenue increases reflecting our pacing of increased penetration of current customers, in addition of new customers. While we have recently completed a full product line rollout of lithium-battery packs or forklifts, our sales mix of higher revenue, larger packs are increasing as they were launched after the rollout of smaller packs. For example, large packs as a percentage of sales for the year ago quarter fiscal year 2020 Q2 was 36%, compared to 64% for this past quarter. And the larger packs typically have higher gross margins, similar to the automotive sector. Charles Scheiwe: Thank you, Ron. regarding our balance sheet and financial positioning, we have accomplished several more positive steps. We discussed on our last earnings call in November, the NASDAQ uplifiting, and 12 million capital raised at closing. Additionally, during Q2, we raised 3.5 million utilizing an At The Markets, or ATM, offering. We have filed a perspectives to raise up to 10 million, so we have the ability to additionally raise up to 6.5 million on an opportunistic basis. We have found as many others have, that the ATM offering provides a very efficient and cost effective way to raise smaller amounts of capital. This is especially true in the current receptive market environment. Additionally, we now have research coverage by three investment banks, who are focused on the electrification sector. During the quarter, we were also able to achieve converting debt to equity of approximately 2.2 million, decreasing outstanding debts of 2.4 million on December 31, 2020. Further conversions in January reduce outstanding debts to 884,000. The only additional debt is the PPP loan of 1.4 million that we anticipate will be forgiven. We are still waiting for the loan forgiveness process to work its way through the Small Business Administration. As announced previously, we now have a four million line of credit with Silicon Valley Bank to provide potential working capital, supporting our rapid growth plans. The borrowing availability on the credit line is tied to Flux Powers outstanding accounts receivable, and inventory. And I would remind investors that we filed an S3 Registration of a 50 million shelf note in October, of which 10 million was allocated to the ATM. And the rest can be very useful in our growth strategy. To add to Ron’s mission progress with our gross margin initiatives, including the current quarter reported at 23%. We believe continued implementation of our cost improvements, supporting higher gross margins, along with our revenue trajectory will drive us to our goal of becoming cashflow breakeven. Regarding operating expense, we have stated before that much of our initial foundation building has been put in place as necessary to meet our sales and operational strategy of serving large customers. We continue to work on integrating best in quality with inefficiencies to continue inner quest as industry leading durability, technology and ease of use. Ronald Dutt: Thanks Chuck. To conclude our remarks, I would like to comment on our progress with growing our business. It is heartening to see the increased demand for lithium power, and as highlighted with a very vigorous stock market demand surrounding EV and electrification this past year particularly more recently and we all know, it is receiving very strong support from the new administration as well as. We see Flux Powers bringing a clean energy value proposition for industrial and commercial solutions. Developing products that reduce tons of carbon dioxide solution for our customers compared to current lead acid and propane alternatives for our customers and for all of us, really is very motivating. And that concludes our prepared remarks. And now I turn it over to questions. Operator: Thank you. Our first question is from (Ph) . Your line is open. Unidentified Analyst: Yes, congrats on the good numbers. Can you talk a little about your traction with large fleets in general and your private label kind of - how that is progressed during the quarter? And how you feel that this could continue overtime? Ronald Dutt: Yes, sure. Thanks, Alan. That is a key part of our growth strategy. The large fleets are - it is not subscription income is like my experience in prior companies, you are as good as what your track record is. But what we are finding is for some of our very large key customers that in our investment and investor deck. If you get an - achieve customer satisfaction with them on product, quality and service, they do not want to change. So we are really targeting these large fleets as 100,000 of forklifts. And even though some of them may be dual source, as I would do, if I were them. We are after that 80% and we are achieving it with several of our very, very large customers. We are getting reputation out there with those large customers, they got facilities all over the country. And that really is helpful in our efforts for new customer acquisitions of large fleets, so it feeds on itself. And as the market certainly is rapidly becoming more understanding of the benefits of lithium over a lead acid or propane, it is certainly as fuel to the fire in terms of increasing the adoption. So our sales force is working on several more - actually more than several very large customers, some of which are household names. Some of these very large logistics companies never heard of that they have got 1000s of forklifts. Unidentified Analyst: Thank you. I have two other questions and then I will get in the queue. I will ask them together. The first is, for the new forklift that you are going to be rolling out. I think I heard you say, it is like 20% of the market. Maybe just talk about kind of how you think about your traction of that ramping up of when that will happen? And then secondly, is on operating expenses. Could you talk about it, if anything in the quarter would be viewed as sort of one time possibly related to your financings or maybe your DNO insurance? Is there something about that, that the first year it is more expensive? It can go down so that we could think about that? And then just thoughts about operating expense growth going forward relative to how you think about that compared to revenue? Thank you. Ronald Dutt: Yes. Thanks Alan. Good questions. And there are new products for the end riders. We are extremely excited about that. We have leveraged some external expertise in this, along with our core engineering expertise and along with our, we really got, seven good years of experience of figuring out how to make these things durable and safe and focus on what the customer wants. So we think one is going to be well received. The sales ramp is always difficult to channel we have examples of people buying without even a demo others a demo some taking months. Some taking weeks. But I do think we are just very enthusiastic about that we have had that out into some selected hands so far, getting a great response on it. I think it hits all the key points that we have seen over seven years and what customers are really, really anxious for. So, I don't know that that is going to have a major impact within as soon as the next couple months. But we do sales beginning in that in that ramping. It is a set in writer market in writer forklifts that this pack is for is a big segment of forklifts. You look at all these forklifts in our warehouses no matter what they are doing. They have typically, you will often find these in riders. So, we are very optimistic on that. Turning to OpEx, good question on OpEx, we certainly look at that, trying to balance our cost and our margins. We have got marches objectives here, we know every time we have a call, you guys are asking about margins, we asked ourselves about it all the time as well. And also the capabilities that that we have here to engineer produce and service these large customers. So, with that, Chuck, can you give a little more color on this past quarter in particularly? Charles Scheiwe: Yes. Some One time stuff going on in the quarter, we had legal and accounting tied to the shelf note filings, for the prospectus to get out there and stands for that we also prior to the publishing, we are kind of holding back on some of the UL work and we really accelerated that in the quarter. So there is quite a bit R&D expense in there. And development of the pack we are talking about right now, there is expense results with that getting through UL. So there are some one time stuff in there. We did like every public company, we got nailed with DNO insurance pay times. So, there is additional extemporary going forward, though, that is going to be there, but it is what it is. And we will start to see, a little more extent going forward just from being up on NASDAQ, for public companies type expense we expect. Other than that, we are not looking at like, as we said, we are pretty well structured and got most of the pieces in place. The body that we are adding now would be production related - and it COGS going forward. So, we don't see large increases in the operating side. Ronald Dutt: And just a footnote on that. On the production workers are relatively smaller percent, 5% or 10%, right Chuck. We are doing final assembly, as well. So, I hope that helps, Alan. Unidentified Analyst: That is great. Thank you so much. I will get back in queue. Ronald Dutt: You bet. Operator: Our next question comes from the line of (Ph). Your line is open. Unidentified Analyst: Good afternoon and congratulations on the quarter. Ron, just picking up on something you were just talking about a moment ago and wedding. It is something else that I thought was interesting. You mentioned getting a better feel for the features that customers want. Maybe rather than focusing on a specific model, kind of larger view what are the features that customers increasingly desire? And I'm also thinking about the recent patents, as you highlighted when asking this question. Ronald Dutt: Yes. Part of it is understanding the emphasis. And what it takes to really satisfy them once, is the forklifts typically operate in a very rugged, harsh environment, particularly the walking as much as any of them, but also like the in riders that sit on forklifts not quite as much. But it is still rugged. It is not like a Tesla. If you own a Tesla, you baby it and take care for it, take care of it. In a warehouse, workers just is an incentive to take care of something that is not their own. So like the cars are, like forklifts need to be charged, they need to be charged on time, or they it says like a car is runs out of gas, that can be disruptive and upgrades to our customers who are running oftentimes the 7/24 two three shifts operations. They have an unasked for downtime. So if you are selling somebody a pack, and they are sitting down, you better figure out how not to have that down time or how to support them with either a replacement or service in a timely matter. So that is impacted some of our software firmware to provide protection to the customer protections on low TAM high TAM as well. Also serviceability, no, there is no water maintenance on these things. So but I got a message saying that doesn't require some kind of service sometimes. So our design is very, very well done in terms of making it serviceable by an uninformed and very inexpensively. So that is another big one that the customers. And I would say in terms of things that are that are coming to mind. I mean, if we get into the weeds there is a long list of technical things, but one is the telemetry that we offer. All these large fleets, wants to know, what is the state of health, what is the remaining life. And, and also they have their service people or our service people address those needs again, all to avoid downtime disruptions in the facility. Does that help? Unidentified Analyst: That helps a lot. And in fact, that kind of leads me to the one more cost questions that I wanted to ask about. The press release mentioned that you expanded your customer support capability, and kind of linked us to having greater than 1000 battery packs and service. The first question is, do you expect this expense to continue to rise as more units are sold or r is there some possibility as you kind of implied in your remarks a minute ago, to maybe pass on a service requirement off to your large customers that may have people in house that are capable of doing it? Ronald Dutt: Yes. No, they are both good. We were very close to that. With our first packs that went out, I created a database that tracks every pack, every serial number of where it went, what were the key specs on? And so, we have been able to track failure rates, and track, other attributes of that. And we continue to track that relentlessly, and track quarterly our, any issues we have with a packs fail failure rate. And with our private label partner, of course they are very interested in that too. So one of the five largest OEMs and ourselves are right on this spoken, asking. I think as we pioneered and got more experience with our pack, we are making and producing packs that don't have as much lower failure rates, and our goal is just to continue to drive that down. And so, as we put more packs in the field, they certainly are going to have a level higher than packs we shipped out seven years ago that were early, early packs. So in terms of servicing that, any expense, you can look at our financials and see our warranty expense. It is not completely out of line at all, and that is how much is we are spending on the warranty. In terms of service, our private label partner handled some of that, which is good. We have now several partners who are trained and certified to work on our packs. We want to expand that national coverage in the packs. We have used battery dealers and forklift equipment dealers to service our packs, so that we don't have to create an infrastructure of Flux employees all over the country. So, we have been leveraging that, and that has been productive, and we are continuing to expand our national service program, again with the ideas driven by the metrics to absolutely minimize any downtime, and make it easy for the customers to do work. If you are in the service world, there is level one service, which is the guy doesn't have to be a mechanical engineer to identify or work on something. And so, we follow that principle that escalating it to a level two or three, it needs to have a flow chart for that, and our people here handle the more difficult issues. Unidentified Analyst: Now, that was great. If I may ask one last one, hopefully not long. You mentioned in your remarks about robotic applications is perhaps a new area there to some battery packs without having to do a lot of modifications and manufacturing. I was just wondering, if could you give us kind of an example of what you are talking about? I mean, normally when I think of a robot in a auto assembly line or something they are gigantic and they probably need a lot of power, but I have also heard about robots Power. But I have also heard about robots in warehousing environments that may just go grab something off the shelf and bring it to somebody at a human at a stationary points and just kind of wondering where you are thinking about. Ronald Dutt: More of the latter, I mean, I spent a good part of my career, looking at those very, very complex and expensive robotic pieces of equipment. Now, you see, in a lot of the high efficiency warehouses beginning, they use and really increasing pretty significantly, the use of robots just to move a package one point to the other in the warehouse, tracks, they can have tracks on the floor, and automate that. And when you go to the Annual Material Handling Trade Show, there is a lot of that there. And so we are interested in the kind of envelope that is required and the packs we have, I think, could be a good fit as part of our expanding of packs coming off our line to fit in those robotic solutions. So, I think there is some other robotic solutions, we are looking at pretty closely as well. But it is certainly driven by this, look at the business case. What size of the market, what is the deal, the distribution market how is it going to affect our assembly line? And what kind of margin can we get out of it? So, it is the usual thing we look at. So we are keeping our eye on or based business, but we are also looking at some of these applications like that. Unidentified Analyst: Okay. great, well thank you so much for the color and again congratulations on the quarter. Ronald Dutt: Thank you. Charles Scheiwe: Thank you. Operator: Our next question is from (Ph) . Your line is open. Unidentified Analyst: So I wanted to ask two questions. First is regard sourcing, obviously, everybody's kind of wrestling with the same considerations. But one thing you do see is bigger customers gives you some leverage there. So, I'm wondering if you have a sense, if you vote, one of these bigger customers is, does that help you in terms of your conversation with your sales suppliers? How are you thinking about that? Ronald Dutt: Yes, sure. Yes, there is something like 40 lithium suppliers in China, we source a tool over there in the top 10. And when we initially reached out to them, they wanted a government supported, as you probably know, mandate to become manufacturers and exporters of lithium batteries. So when they see that, if you look on our investor deck on the web and see names like Pepsi, Caterpillar and others, they have a gleam in their eye and see big as big fleets. Ongoing, large potential sales for the future of these lithium batteries. So and they are all oriented. Seven years ago, there were several that said you know we like to do something with you, but you are too small. And we were just cracking the shell of the egg as we were starting up. And so they are all very, very attuned to what the potential could be. So for us, with the focus on big names is very, very helpful. Unidentified Analyst: Indeed. And just on that note, have you said, and I'm sorry, if I have missed. Can I assume your LFPI think - it doesn't make sense . Ronald Dutt: Yes, we are LFP. Because we don't need that added energy density like Tesla does, like your HP laptops, or Apple laptops need or cell phones. And the cost is lower, and you don't have the thermal management. So it is used by most of our competitors. I think have one competitor that offer some NMC which has cobalt in it, which provides that added – and I think it is viable. But as we looked at a number of times, and we didn't think it makes sense for us. Unidentified Analyst: Yes, no, I agree. And second unrelated question, one of the areas we are starting to see some interesting movement in is the UPS market? I mean, I'm interrupting the power supply not the company. Given your skill set, that would seem to be something that is a good split. Have you worked at UPS at all? Ronald Dutt: To be honest, we have not focused on that at all. We kind of looked at it, but I think we will turn probably more to that as we get a bit bigger. I think the pricing on that is going to require pretty significant scale. Honestly, we have our hands full with what we offer we have now. We have a product that we can differentiate ourselves on and just not a box with cells in it. It is the interface with motive power, that really requires a lot of technology in terms of firmware software to communicate to regulate. And so that is our focus right now. Unidentified Analyst: Yes, that makes sense. And then my final question again, and I apologize, I'm still coming up to speed a little bit. Are you guys all at ? Are you seeing any other? Ronald Dutt: No, no, in fact, we are prismatic and always have been prismatic. When we seven, eight years ago, we looked at 18650. And we could do it, we could switch to it at any time. We had some passing thoughts about it. I think there arise production facilities in this country that makes us cylindrical cells whether they are 18650 of the bigger ones more economical. They are just grouped in modules, just like our prismatic cells, we would migrate to them. We are agnostic as we said many times, we are looking for the many institutions and companies around the world pouring money into finding the next best cell and applications and we have a CTO that is continually serving the landscape on that and we will move to anyone that makes sense. But for now, the prismatic cells, they are pretty common in this material handling sector. Most of our competition does use a prismatic cell. There is a certain material handling aspect that is slightly better. But again, that is what we used and found it to be good. The pricing of sales is going down very significantly out there with the volume increases as a world demand for lithium is increasing. So, the factories are building more at scale, there is more competition. All that bodes well for companies like us, with the price of those. Unidentified Analyst: Yes. Okay. Thank you. That is enough, being interrogated by me. So compliments on a great quarter. Ronald Dutt: Thanks Joe. Operator: Our last question is from Alen . Your line is open. Unidentified Analyst: Hi. I just wanted to follow-up on, you talked about your relationship with Dean and I know that that is a company that is growing pretty fast. Could you comment on anything about how you think about potential growth opportunity and if it is considered material for your company overall. Thank you. Ronald Dutt: Yes. Thanks Alan. It just so happened. They are located about a half hour from us here in North County, San Diego, and reached out to us. They weren't too happy with their original lithium supplier, and we struck up a great relationship. We are both listed on NASDAQ. We are both after this, just emerging sector here, but it is all kinds of opportunities, and they, with their product, mobile charging stations that don't require some already installed great infrastructure. They are finding a receptive audience now. How fast this really gets traction and takes off in sales, none of us has that kind of crystal ball. But certainly we see the value proposition there. We see the interest they have already signed several contracts with cities to deploy these things all over the cities. And so, we are working with them to provide them the best possible form factor of our packs and performance specs for them. I think for us, it is what we call one of these natural product extensions that help for us to build scale with the infrastructure and process we have. The nice thing like about being we just sell to them, they worry about going to all the end customers, which office, municipalities and the government and some private customers as well. So, we are optimistic, but for us, it is frosting on the cake here. I think, we are not planning on it for success. We want to get away from concentration of depending on any one large customer or any one model, because our technology and product is tailor made for a number a number of uses to lend itself towards successfully diversify. Unidentified Analyst: Could I sneak in one last question? You talked about that subsequent to the end of the quarter in January, two holders of your convertible debt which sum of the two shares? I just had a question of that. Does that increase your diluted share count or was that already captured in it the roughly 400,000. And it is the way to look at it that we also get the that the cash, cash goes up by that amount? Ronald Dutt: This was a non-cash transaction. It is just converting debt to equity and would increase the shares outstanding. Unidentified Analyst: Okay, but no impact on cash. Okay. Thank you. Thank you so much. Ronald Dutt: Okay. Thanks for the questions Alan. Operator: And I don't see additional questions at this time. Speakers, do you have any closing remarks? Ronald Dutt: No, we thank everybody for listening and thanks for your time. We are all here at Flux Power are very excited about what is going on and glad to share the poll with you. Thanks again. Charles Scheiwe: Thank you. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. Have a great day and stay safe.
Flux Power Holdings, Inc. (NASDAQ:FLUX) Earnings and Financial Health Overview
Flux Power Holdings, Inc. (NASDAQ:FLUX) is a leading company in the development of advanced lithium-ion energy storage solutions for industrial applications. They are known for their focus on efficient and sustainable power solutions for material handling equipment, including forklifts and airport ground support equipment. As a significant player in the energy storage industry, Flux Power competes with other companies offering similar solutions.
On March 20, 2025, FLUX is set to release its quarterly earnings. Analysts predict an earnings per share (EPS) loss of $0.03, with revenue expected to be around $14 million. Despite these projections, the company's participation in the New Warehouse Podcast at ProMat 2025 demonstrates its commitment to staying ahead in industry trends, particularly in telematics for material handling.
Flux Power's financial metrics reveal some challenges. The company has a price-to-sales ratio of 0.50 suggests that investors are paying $0.50 for every dollar of sales, which may reflect cautious investor sentiment. The enterprise value to sales ratio of 0.74 shows how the company's valuation compares to its revenue. However, the enterprise value to operating cash flow ratio of -9.37 highlights negative cash flow, which can be a concern for investors.
Flux Power's debt-to-equity ratio of 3.67 indicates a higher level of debt compared to equity, which could pose risks if not managed properly. On a positive note, the current ratio of 1.07 suggests that the company has slightly more current assets than current liabilities, providing some short-term financial stability.
Flux Power Holdings, Inc. (NASDAQ:FLUX) Faces Financial Challenges Amid Corporate Investigation
- Flux Power Holdings, Inc. (NASDAQ:FLUX) is under investigation for potential corporate wrongdoing, affecting investor confidence.
- The company reports a negative price-to-earnings (P/E) ratio of approximately -2.40 and a price-to-sales ratio of about 0.33, indicating financial difficulties and market skepticism.
- Despite a challenging financial landscape, Flux Power maintains a current ratio of approximately 1.07, suggesting some level of short-term financial stability.
Flux Power Holdings, Inc. (NASDAQ:FLUX) specializes in developing advanced lithium-ion energy storage solutions for industrial applications. As a key player in the energy storage sector, Flux Power competes with other companies offering similar solutions. The company is preparing to release its quarterly earnings on March 6, 2025, with Wall Street estimating an earnings per share of -$0.03 and projected revenue of around $14 million.
Despite these projections, Flux Power faces scrutiny as Bronstein, Gewirtz & Grossman, LLC has launched an investigation into potential corporate wrongdoing. This investigation targets the company's officers and directors, focusing on actions that may have affected investors who purchased securities before November 11, 2022. Investors are encouraged to participate in this investigation, which is conducted on a contingency fee basis.
Financially, Flux Power is experiencing challenges, as indicated by its negative price-to-earnings (P/E) ratio of approximately -2.40. This suggests the company is currently operating at a loss. The price-to-sales ratio of about 0.33 implies that the stock is valued at roughly 33 cents for every dollar of sales, reflecting market skepticism about its revenue generation.
The company's enterprise value to sales ratio is around 0.57, providing insight into its valuation relative to revenue. However, the negative enterprise value to operating cash flow ratio of approximately -7.24 highlights difficulties in generating cash flow from operations. Additionally, the negative earnings yield of about -41.62% further underscores the financial hurdles Flux Power is facing.
Despite these challenges, Flux Power maintains a current ratio of approximately 1.07, indicating a slightly higher level of current assets compared to current liabilities. This suggests some short-term financial stability. However, the high debt-to-equity ratio of about 3.67 points to a significant reliance on debt financing, which could impact the company's long-term financial health.
Flux Power Holdings, Inc. (NASDAQ:FLUX) Faces Financial Challenges Amid Lawsuit
- Flux Power Holdings, Inc. (NASDAQ:FLUX) anticipates an earnings per share (EPS) of -$0.13 and revenue of $13.5 million for the upcoming quarterly earnings.
- The company is involved in a securities fraud lawsuit, potentially impacting its financial health and investor confidence.
- Key financial metrics indicate challenges: a negative P/E ratio of -4.06, a price-to-sales ratio of 0.45, and a debt-to-equity ratio of 2.52.
Flux Power Holdings, Inc. (NASDAQ:FLUX) specializes in developing advanced lithium-ion energy storage solutions for industrial applications. As it prepares to release its quarterly earnings on December 5, 2024, Wall Street anticipates an earnings per share (EPS) of -$0.13 and revenue of $13.5 million. These figures reflect the company's ongoing financial challenges.
The company is currently embroiled in a securities fraud lawsuit, which could have significant implications for its financial health and investor confidence. The lawsuit, organized by the Law Offices of Howard G., offers investors a chance to lead the legal action. This development may impact the company's stock performance and investor sentiment as the case progresses.
Flux's financial metrics reveal a challenging landscape. The company has a negative price-to-earnings (P/E) ratio of -4.06, indicating ongoing losses. Its price-to-sales ratio of 0.45 suggests that the stock is valued at 45 cents for every dollar of sales, reflecting investor caution. The enterprise value to sales ratio of 0.69 further highlights the company's valuation concerns.
The company's financial difficulties are underscored by an enterprise value to operating cash flow ratio of -16.52, indicating challenges in generating positive cash flow from operations. The earnings yield of -24.61% emphasizes the current financial struggles. Despite these challenges, Flux maintains a current ratio of 1.10, suggesting some short-term financial stability.
Flux's debt-to-equity ratio of 2.52 indicates a higher level of debt compared to equity, which could pose risks if the company cannot manage its liabilities effectively. As the class action lawsuit progresses, investors are encouraged to consider their involvement, with firms like The Schall Law Firm and Pomerantz LLP urging participation before the December 31, 2024 deadline.
Flux Power Holdings, Inc. (NASDAQ:FLUX) Faces Legal Challenges Ahead of Earnings Release
- Flux Power Holdings, Inc. (NASDAQ:FLUX) is set to announce its quarterly earnings with an anticipated EPS of -$0.12 and projected revenue of $13.5 million.
- The company is currently involved in multiple class action lawsuits alleging securities fraud, which could impact investor confidence and financial standing.
- Financial indicators show a negative P/E ratio of -4.65 and a debt-to-equity ratio of 2.52, highlighting potential risks and challenges.
Flux Power Holdings, Inc. (NASDAQ:FLUX) is preparing to release its quarterly earnings on November 28, 2024. Wall Street anticipates an earnings per share (EPS) of -$0.12, with projected revenue of $13.5 million. Flux specializes in providing advanced lithium-ion energy storage solutions for industrial applications. The company faces competition from other energy storage firms, which may impact its market position.
Flux is currently embroiled in multiple class action lawsuits. Pomerantz LLP, The Schall Law Firm, and Bronstein, Gewirtz & Grossman, LLC have filed lawsuits alleging securities fraud and other unlawful practices. These legal actions claim that Flux and certain officers made false or misleading statements, particularly regarding financial metrics like inventory and assets, as highlighted by the lawsuits.
The lawsuits focus on alleged violations of federal securities laws, including sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors who purchased Flux securities between November 11, 2022, and September 30, 2024, are encouraged to participate. The legal proceedings could have significant implications for Flux's financial standing and investor confidence.
Financially, Flux presents a challenging picture. The company has a negative price-to-earnings (P/E) ratio of -4.65, indicating negative earnings over the past year. Its earnings yield is -21.50%, further underscoring its unprofitability. Despite these figures, Flux's price-to-sales ratio of 0.52 suggests that investors are paying $0.52 for every dollar of sales, which may still attract some interest.
Flux's debt-to-equity ratio of 2.52 indicates a higher level of debt compared to equity, which could pose risks if not managed carefully. However, the current ratio of 1.10 suggests that Flux has slightly more current assets than liabilities, providing some short-term financial stability. Investors will be closely watching the upcoming earnings release for any signs of improvement or further challenges.
Flux Power Holdings, Inc. (NASDAQ: FLUX) Faces Financial and Legal Challenges Ahead of Earnings Release
- Flux Power Holdings, Inc. (NASDAQ:FLUX) anticipates an earnings per share (EPS) of -$0.13 and revenue of $13.5 million for the upcoming quarterly earnings.
- The company is involved in a securities fraud lawsuit, which could significantly impact its financial stability and investor confidence.
- Key financial metrics indicate challenges, including a negative price-to-earnings (P/E) ratio of -5.26, a debt-to-equity ratio of 2.52, and a current ratio of 1.10, suggesting a modest ability to cover short-term obligations.
Flux Power Holdings, Inc. (NASDAQ:FLUX) specializes in developing advanced lithium-ion energy storage solutions for industrial applications. As it prepares to release its quarterly earnings on November 21, 2024, Wall Street anticipates an earnings per share (EPS) of -$0.13 and revenue of $13.5 million. These figures reflect the company's ongoing financial challenges.
The company is currently embroiled in a securities fraud lawsuit, as highlighted by Rosen Law Firm. This legal action targets investors who purchased FLUX securities between November 11, 2022, and September 30, 2024. The lawsuit, organized by the Law Offices of Howard G., could have significant implications for the company and its investors. The lead plaintiff deadline is set for December 31, 2024.
Flux Power's financial metrics reveal further challenges. The company has a negative price-to-earnings (P/E) ratio of -5.26, indicating negative earnings. The price-to-sales ratio is 0.59, meaning investors pay $0.59 for every dollar of sales. The enterprise value to sales ratio is 0.82, reflecting the company's valuation relative to its sales.
The enterprise value to operating cash flow ratio stands at -19.73, suggesting difficulties in generating positive cash flow from operations. The earnings yield is -19.01%, highlighting the company's earnings challenges. Additionally, with a debt-to-equity ratio of 2.52, FLUX has a relatively high level of debt compared to its equity.
Despite these challenges, the current ratio of 1.10 suggests that FLUX has a slightly higher level of current assets compared to its current liabilities. This indicates a modest ability to cover short-term obligations, which may provide some financial stability amidst ongoing legal and financial hurdles.
