The offering was terminated immediately following the closing on May 11, 2018. On May 11, 2018, Flux announced the completion of the private placement of $800,000 in common stock priced at $0.70 per share, of which $200,000 is reflected in Flux’s financial statements as of March 31, 2018. Borrowings under the Inventory Line of Credit (which matures March 31, 2019) were $1.76M as of May 14, 2018. In addition, on March 22, 2018, Flux secured a $5.0M Inventory Line of Credit from Esenjay. The Unrestricted Line of Credit is convertible, at Esenjay’s discretion, into Flux Common Stock at $0.60 per share and matures on January 31, 2019. Flux had 25.1M and 25.0M weighted average basic common shares outstanding for the periods ending Q3’18 and Q3’17, respectively.įlux continues to fund its working capital needs through a combination of borrowings from its largest shareholder, Esenjay Investments, LLC (“Esenjay”) and through private placements of common stock.īorrowings under Flux’s $10.0M Unrestricted Line of Credit provided by Esenjay were $7.98M as of May 14, 2018. Net loss in Q3 ‘18 increased to $1.75M, or ($0.07) per basic share, from $1.16M, or ($0.05) per basic share, in Q3 ‘17, reflecting the higher operating loss and an increase in interest expense due to higher average borrowings. Such expenses are expected to remain significant as Flux builds out a complete forklift product line, while also continuing to enhance features and functionality.įlux’s Q3 ‘18 operating loss increased to $1.54M from $1.11M in Q3 ‘17, principally due to higher operating expenses. Research & development expenses increased to $483,000 in Q3 ‘18, compared to $245,000 in Q3 ‘17, as Flux actively invested in new product development targeted at the larger Class 1 and Class 2 forklift markets. Selling and administrative expenses increased to $909,000 in Q3 ‘18 from $664,000 in Q3 ’17 primarily due to the addition of three sales managers in the last year as well as an increase in stock-based compensation and sales commissions. Flux believes these efforts can bring gross margin to a range of 25-30% over 12-18 months. The margin improvement plan includes design, production, pricing and procurement initiatives, in addition to expected efficiency improvements as production volume increases. Flux’s gross loss as a percentage of revenues has decreased from -66% during Q3 ‘17 to -9% during Q3 ‘18 due to initial steps in a comprehensive margin enhancement plan for its walkie LiFT Pack line. Q3 ‘18 cost of sales rose 257% to $1,816,000 compared to $508,000 in Q3 ‘17, principally due to the significant increase in LiFT Pack unit sales. Growing customer interest and sales dialogues provide increased confidence in Flux’s ability to continue increasing sales. Q3 ‘18 revenue rose 444% to $1,666,000 compared to Q3 ‘17 revenue of $306,000, principally due to Flux walkie LiFT Pack shipments to a Fortune 100 global customer that has indicated its intentions to standardize its walkie fleet on lithium-ion batteries. Airport Ground Support Equipment (GSE) Battery Shipments to a leading global aviation services provider are planned for May 2018 with anticipated value approaching $400,000 reflecting orders received.Flux expects an initial production order in the next few months. Expanding Product Line to Larger Class 1 and Class 2 Forklift Equipment – Flux has encountered strong interest for Class 1 and Class 2 solutions and has been piloting a LiFT Pack for Class 1 counterbalance forklifts with a Fortune 100 customer.Flux’s pipeline currently reflects anticipated orders exceeding $2.7 M for walkie LiFT Pack deliveries through December 2018. ![]()
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