Flux Power Holdings amends debt agreements, extends loan maturities

Flux Power Holdings , Inc. (NASDAQ:FLUX), a small-cap energy storage solutions provider with a market capitalization of $33.47 million, announced amendments to two key debt agreements, according to a press release statement and a filing with the Securities and Exchange Commission. InvestingPro analysis indicates the company faces liquidity challenges, with short-term obligations exceeding liquid assets.

On July 16, the company entered into a First Amendment to its Subordinated Unsecured Promissory Note with Cleveland Capital, L.P. The amendment changes the note’s due date from August 15, 2025, to September 30, 2025. Cleveland Capital is reported to beneficially own about 7.3% of Flux Power Holdings’ common stock, based on a February 2025 Schedule 13G filing.

Also on July 16, Flux Power Holdings and its wholly owned subsidiary, Flux Power, Inc., executed Amendment No. 5 to their Loan and Security Agreement with Gibraltar Business Capital, LLC. The amendment revises the maturity date of the loan to August 31, 2025, unless further extended under the agreement’s terms.

The maturity date will be automatically extended to July 31, 2027, if either the due date of the Cleveland Capital note is extended to a date no earlier than September 29, 2027, or if all outstanding obligations under that note are converted into equity of Flux Power Holdings. As part of the amendment, the company agreed to pay Gibraltar Business Capital a non-refundable amendment fee of $112,500.

The information is based on a press release statement and the company’s Form 8-K filing with the SEC.

In other recent news, Flux Power Holdings reported significant financial developments for the third fiscal quarter of 2025. The company achieved a 16% year-over-year revenue increase, reaching $16.7 million. Gross profit improved to $5.3 million, or 32% of revenues, up from 28% in the previous year. Despite a slight rise in operating expenses to $6.9 million, Flux Power narrowed its adjusted EBITDA loss to $1.1 million, compared to a $1.7 million loss in the prior year. The net loss for the quarter was reduced to $1.9 million, or $0.12 per share, down from $3.0 million, or $0.18 per share, the previous year. Additionally, Flux Power secured a $2 million order from a major U.S. airline for its redesigned G80-420 lithium-ion battery packs, to be delivered through 2025. The purchase order was facilitated by Averest, a channel partner specializing in aviation ground support equipment. H.C. Wainwright maintained a Buy rating for Flux Power’s stock, with a price target of $8.00, highlighting the company’s improved financial metrics. Furthermore, Flux Power announced a $2.9 million private placement of prefunded warrants, aimed at supporting general corporate purposes and growth capital.

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