Flux Power Holdings, Inc. (NASDAQ:FLUX), a developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, today provided an update regarding its previously discussed restatement process and subsequent SEC filings for the fiscal fourth quarter and year ended June 30, 2024, and the fiscal first quarter ended September 30, 2024.
On September 5, 2024, Flux announced that it had identified approximately $1.7 million of excess and obsolete inventory primarily related to product innovation and design of its products during a period of rapid growth over the last several years. A further detailed review of this and related items has resulted in estimated noncash inventory write-downs of approximately $4.4 million and related noncash warranty related items of approximately $0.5 million, totaling adjustments of approximately $4.9 million. This impact is not a one-time adjustment but impacting multiple quarters over multiple years. To properly reflect the obsolete inventory, the Company is currently in the process of restating previously issued financial statements for fiscal year 2023 and the interim periods of fiscal year 2024, which will be reflected in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024. The Flux team has completed its internal review of the restatements and 10-K and is working with its auditors to file them as soon as practicable, which reflects a large body of work over an extended period of time. Upon completion, Flux will work to complete the 10-Q filing for the quarter ending September 30, 2024.
