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Flux Power Holdings , Inc. (NASDAQ:FLUX) announced Thursday it received a determination letter from the Nasdaq Listing Qualifications Department stating the company has not regained compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. The information is based on a press release statement included in a recent SEC filing.
According to the filing, Nasdaq requires listed companies to maintain at least $2.5 million in stockholders’ equity. As of March 31, 2025, Flux Power reported stockholders’ equity of negative $4.37 million. The company previously submitted a compliance plan in March and was granted an extension through July 30, 2025, to meet the requirement.
Nasdaq staff notified Flux Power that trading of its common stock will be suspended at the opening of business on August 11, 2025, unless the company requests an appeal before a Nasdaq Hearings Panel. Flux Power stated it intends to submit a hearing request to the panel by 4:00 p.m. Eastern Time on August 7, 2025. This request would stay the suspension of its securities and the filing of a Form 25-NSE pending the panel’s decision.
The company also disclosed it is pursuing efforts to raise up to $5 million through a private placement of its securities and has reduced its workforce by approximately 15% to lower its cash burn rate. Flux Power is exploring additional options to raise equity capital to comply with Nasdaq’s continued listing requirements.
The company noted in the filing that there is no assurance the panel will grant its request for continued listing or stay the suspension of its securities.
Flux Power Holdings, Inc. is incorporated in Nevada and its principal executive offices are located in Vista, California. The company’s common stock trades on the Nasdaq Capital Market under the symbol FLUX.
All information is based on a press release statement included in the company’s SEC filing.
In other recent news, Flux Power Holdings reported its financial results for the third fiscal quarter of 2025, showing a 16% year-over-year revenue growth, with revenues reaching $16.7 million. The company’s gross profit for the quarter was $5.3 million, accounting for 32% of revenues, an improvement from the previous year’s 28%. However, operating expenses rose slightly to $6.9 million from $6.6 million in the previous year. H.C. Wainwright maintained its Buy rating for Flux Power Holdings, setting a price target of $8. Additionally, the company secured a significant order from a major U.S. airline, valued at over $2 million, for 120 units of its redesigned G80-420 lithium-ion battery packs. This order will be fulfilled throughout 2025 and highlights the growing adoption of Flux Power’s technology in airport ground support operations. Furthermore, Flux Power announced a $2.9 million private placement of prefunded warrants with accredited investors, with plans to raise up to $5 million. Lastly, the company amended its debt agreements, extending loan maturities with Cleveland Capital, L.P., a significant shareholder.
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