SeeThruEquity Issues Update on Flux Power Holdings, Inc. (OTCQB: FLUX)

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NEW YORK, NY / ACCESSWIRE / October 9, 2018 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update note on Flux Power Holdings, Inc. (FLUX).

The report is available here: FLUX Update Note.

We are updating coverage of Flux Power Holdings, Inc. ("Flux") following revenue growth of over 350% in FY2018 and guidance to more than double revenue in FY2019. Flux develops and markets advanced lithium-ion batteries that replace lead acid chemistries long used in electric forklifts and airport ground support equipment. Its energy storage systems utilize proprietary battery management system (BMS), as well as in-house engineering and product design to address pain points in industrial battery storage. Flux's solutions deliver improvements to performance, electricity consumption and cycle life, as well as environmental compliance and greater return on investment than legacy lead acid solutions. Following the initial launch of battery solutions for Class 3 "Walkie" pallet jack forklifts, Flux is introducing bigger, more powerful solutions for Class 1 and Class 2 forklifts, Class 3 end riders, and airport ground support equipment. Supported by strong growth in FY2018 and an outlook to more than double sales in FY2019, we view Flux as having transitioned from development stage to a growth company targeting an estimated $10 billion opportunity for industrial lithium battery solutions.

Highlights from the note include:

FLUX reports strong results and outlook for FY2019

We are updating coverage of Flux following recent 4Q and 2018 results and updated FY2019 guidance. Flux's growth record and outlook suggest the company may have reached an inflection point in the market.

Highlights were as follows:

  • FY2018 revenues grew by 350%+ YoY to reach $4.1mn. Flux FY2018 revenue rose 357% to $4.1mn, from $0.9mn in FY2017. Flux reported a $2mn backlog at the end of FY2018.

  • FY4Q18 revenues rose approximately 800% to $1.1mn, versus $121,000 in FY1Q17. 4Q18 sales included airport GSE packs delivered to a global aviation leader in aircraft ground support services.

  • FLUX management sees revenues more than doubling in 2019 from 2018 levels of approximately $4.1mn. Flux guided to robust growth in FY2019 as it benefits from existing and new customers, as well as higher price points from its larger for Class 1, Class 2 and Class 3 end rider solutions.

  • Clear margin improvement plan in place. Flux announced a program to improve gross margins through improved sourcing, volume discounts and technology enhancements, including the launch of a new BMS, with a goal of reaching 30% gross margins within 18 months.

  • Flux raised $4mn in new equity funding in May and June, leaving the company with 31.1mn shares outstanding as of September 24, 2018. We expect the company to seek additional financing to fund growth initiatives including customer and product expansion. Flux also anticipates the conversion of the balance due on its credit facility (approximately $8mn) into common stock at a price of $0.60 per share by the end of January 2019.

Flux targets $10Bn potential opportunity for conversion of forklift batteries to lithium-ion power

We see Flux as emerging from development stage to a growth story seeking to penetrate what management estimates is a $10Bn opportunity to replace existing lead-acid batteries with more efficient and lower cost lithium-ion storage. We note Flux shares have been strong performers, rising by 320% over the last year to $2.10 on October 3, 2018.

Please review important disclosures in the report and at www.seethruequity.com.

About Flux Power Holdings, Inc.

Flux Power develops advanced lithium-ion batteries for industrial uses, including its first-ever UL 2271 Listed lithium-ion "LiFT Pack" forklift batteries. Flux solutions utilize its proprietary battery management system and in-house engineering and product design. Flux batteries deliver improved performance, extended cycle life and lower total cost of ownership than legacy lead-acid solutions. Flux sells primarily to lift equipment OEM's, their dealers and battery distributors. Current products include advanced battery packs for motive power in the lift equipment and airport ground support markets. www.fluxpwr.com

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.

Contact:

SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity



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View source version on accesswire.com:
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View source version on accesswire.com:
https://www.accesswire.com/513708/SeeThruEquity-Issues-Update-on-Flux-Power-Holdings-Inc-OTCQB-FLUX

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