Flux Power Restates Financials

TL;DR

Flux Power won't trust its old financials, expect restatements.

AI Summary

Flux Power Holdings, Inc. announced on August 30, 2024, that it will not rely on previously issued financial statements for the fiscal year ended June 30, 2024, and interim periods thereafter. This decision stems from an ongoing review of the company's internal controls over financial reporting and potential adjustments to its financial statements.

Why It Matters

This filing indicates potential inaccuracies in past financial reporting, which could impact investor confidence and require significant restatements.

Risk Assessment

Risk Level: high — The company is withdrawing previously issued financial statements, signaling significant accounting issues and potential restatements.

Key Players & Entities

• Flux Power Holdings, Inc. (company) — Registrant
• August 30, 2024 (date) — Date of earliest event reported
• June 30, 2024 (date) — Fiscal year end

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value FLUX Nasdaq Capital Mark
• $1.2 million — it became aware that (i) approximately $1.2 million of excess and obsolete inventory, prima
• $0.5 million — statement of inventory of approximately $0.5 million. As a result, the Company concluded tha
• $16 million — h a revolving credit facility for up to $16 million. Under the Loan Agreement, upon an occu
• $1.7 million — elease announced that it has identified $1.7 million of excess and obsolete inventory and th

Filing Documents

• form8-k.htm (8-K) — 52KB
• ex99-1.htm (EX-99.1) — 16KB
• ex99-1_001.jpg (GRAPHIC) — 12KB
• 0001493152-24-035146.txt ( ) — 263KB
• flux-20240828.xsd (EX-101.SCH) — 3KB
• flux-20240828_lab.xml (EX-101.LAB) — 33KB
• flux-20240828_pre.xml (EX-101.PRE) — 24KB
• form8-k_htm.xml (XML) — 3KB

Financial Statements"), which were filed with the Securities and Exchange Commission ("SEC") on September

Financial Statements"), which were filed with the Securities and Exchange Commission ("SEC") on September 21, 2023, November 9, 2023, February 8, 2024 and May 13, 2024, respectively, should no longer be relied upon because of errors in such financial statements relating to the improper accounting for inventory and a restatement should be undertaken. During the Company's preparation of financial statements for the year ended June 30, 2024, it became aware that (i) approximately $1.2 million of excess and obsolete inventory, primarily as a result of a change in battery cells from a new supplier, was not properly reserved or written-off in earlier periods resulting in an overstatement of inventory, and (ii) certain loaner service packs were improperly accounted for as finished goods inventory as of June 30, 2023 resulting in an overstatement of inventory of approximately $0.5 million. As a result, the Company concluded that the errors resulted in (i) an overstatement of inventory, current assets, total assets and accumulated deficit on its balance sheet, and (ii) an understatement of cost of sales and net loss, and overstatement of gross profit on its statement of operations in the Prior Financial Statements. The Company is also evaluating the impact that improper accounting for inventory had on other historical financial statements for previous quarterly and fiscal periods which also could include the audited consolidatedfinancial statements as of and for the years ended June 30, 2022 and 2021, as well as the quarterly unaudited consolidated financial statements within the years ended June 30, 2022, 2021 and 2020. Based upon the foregoing, the Company's Board of Directors is evaluating the impact of these matters on previous fiscal years and quarters to determine which financial statements in addition to the Prior Financial Statements may need to be restated and, as a part of this evaluation, may include additional revisions and/or adjustments to the Prior Financial

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. The information contained in Item 2.02 of this Current Report on Form 8-K is incorporated herein by reference. On September 5, 2024, the Company issued a press release announced that it has identified $1.7 million of excess and obsolete inventory and that as a result, the Company will restate previously issued financial 31, 2023 and March 31, 2024. The information in Item 7.01 and Exhibit 99.1 of this Current Report on Form 8-K attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

01 Financial Statements

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Exhibit Description 99.1 Press Release dated September 5, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) Forward-Looking This Current Report on Form 8-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and other securities law. Forward-looking statements are statements that are not historical facts. Words and phrases such as "anticipated," "forward," "will," "would," "could," "may," "intend," "remain," "potential," "prepare," "expected," "believe," "plan," "seek," "continue," "estimate," "and similar expressions are intended to identify forward-looking statements. These including the estimated amount and impact of adjustments on the Company's financial statements, expectations with respect to the Company's internal control over financial reporting and disclosure controls and procedures and related remediation, the potential for additional adjustments to the Company's financial statements and additional restatements, the Company's ability to access its revolving credit facility under the Loan Agreement, the potential actions that GBC could take to protect and enforce its rights under the Loan Agreement, and the expected filing date of its Form 10-K. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the Company's control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Such risks and uncertainties include, but are not limited to, the completion of the review and preparation of the Company's financial statements and internal control ove

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Flux Power Holdings, Inc. a Nevada corporation By: /s/ Ronald F. Dutt Ronald F. Dutt, Chief Executive Officer Dated: September 5, 2024

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View this 8-K filing on SEC EDGAR