DefaultMay 7, 2026, 04:15 PM
Flux Power Defaults on Credit Facility; Q3 Net Loss $3.18M
AI Summary
Flux Power Holdings reported a net loss of $3.18 million for the three months ended March 31, 2026, and $5.14 million for the nine months, with revenues significantly declining year-over-year. The company disclosed an event of default under its Gibraltar Business Capital credit facility due to non-compliance with the minimum EBITDA covenant, raising substantial doubt about its ability to continue as a going concern. Management is negotiating an amendment or waiver while actively implementing cost reductions and pricing initiatives.
Key Highlights
- Flux Power defaulted on its GBC Credit Facility due to minimum EBITDA covenant non-compliance.
- Substantial doubt exists about the company's ability to continue as a going concern.
- Q3 2026 revenue decreased to $6.59 million from $16.74 million year-over-year.
- Q3 2026 net loss increased to $3.18 million from $1.94 million year-over-year.
- Nine-month 2026 net loss was $5.14 million, compared to $5.50 million prior year.
- Cash balance at March 31, 2026, was $372,000, down from $1.33 million.
- Net cash used in operating activities was $5.67 million for nine months 2026.
- Stockholders' equity improved to $4.61 million from a $5.40 million deficit.