Flux Power faces Nasdaq compliance issue over late filing

Published 25/02/2025, 22:14
Flux Power faces Nasdaq compliance issue over late filing

VISTA, Calif. - Flux Power Holdings, Inc. (NASDAQ: FLUX), a provider of lithium-ion energy storage solutions with a market capitalization of $23.67 million, has received a notice from the Nasdaq Stock Market for non-compliance with its filing requirements. The notice, dated February 21, 2025, indicates that the company failed to submit its quarterly report for the period ending December 31, 2024. According to InvestingPro analysis, the company currently operates with a significant debt burden and faces challenges in cash management.

Despite the notice, there is no immediate impact on the trading of Flux Power’s common stock on Nasdaq. The company has been given until March 10, 2025, to present an updated plan to regain compliance with Nasdaq’s Listing Rule 5250(c)(1). If the plan is accepted, Nasdaq may allow Flux Power an extension of up to 180 days from the original due date of its annual filing, or until April 14, 2025, to file the overdue reports.

Flux Power is actively working to finalize its quarterly report and intends to file as soon as possible to regain compliance with the Nasdaq Listing Rule.

The company 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. Their products aim to offer a more efficient, cost-effective, and environmentally friendly alternative to traditional energy storage solutions.

This notification comes amid a backdrop of the company’s efforts to navigate financial challenges, including its ability to raise capital and maintain its operations. Flux Power has made forward-looking statements regarding its business prospects and financial outlook, which involve risks and uncertainties that could cause actual results to differ materially.

Investors are advised to refer to the risk factors outlined in Flux Power’s regulatory filings with the SEC for a more detailed understanding of the potential risks and uncertainties that may affect the company’s future performance.

This news article is based on a press release statement from Flux Power Holdings, Inc.

In other recent news, Flux Power Holdings, Inc. has received a notification from Nasdaq regarding noncompliance with the minimum stockholders’ equity requirement, where the company’s equity stands at $194,000, below the $2.5 million threshold. The company is tasked with submitting a compliance plan by March 17, 2025, to maintain its listing. Additionally, Flux Power has amended its loan agreement with Gibraltar Business Capital, adjusting its EBITDA covenant and agreeing to a $50,000 amendment fee. In a strategic move, Flux Power has appointed Haskell & White LLP as its new independent accounting firm after Baker Tilly US, LLP decided not to seek re-election. This change occurs as the company addresses internal control issues in its financial reporting. Furthermore, Flux Power has announced Kelly Frey as its new Chief Revenue Officer, who brings extensive experience in sales and marketing leadership. The company is also dealing with another Nasdaq compliance issue due to delays in filing its quarterly and annual reports with the SEC. Flux Power is working to address these challenges while continuing its focus on business growth and strategic priorities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.