Flux Power 10-K: Auditor Raises Going Concern Doubt, GBC Credit Facility in Default
FLUX has more than doubled off its 52-week low of $0.47 on elevated volume (30× avg).
Summary
Flux Power's 10-K reveals an auditor going concern warning, a debt covenant default, and only $0.3M in cash. The company's survival hinges on a $40M equity line that requires the stock to stay above $0.50.
Key Events · Earnings and Guidance · FLUX
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Auditor Issues Going Concern Warning
Haskell & White LLP included an explanatory paragraph stating substantial doubt about Flux Power's ability to continue as a going concern, citing recurring losses, an accumulated deficit of $113.8M, and insufficient cash to fund operations for the next 12 months.
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GBC Credit Facility in Default
Flux Power failed to meet the minimum EBITDA covenant for the trailing three-month period ended February 28, 2026, triggering an event of default under its $16M GBC credit facility. GBC can call the $6.3M outstanding balance at any time.
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Cash Position Critical
Cash balance of $0.3M as of June 30, 2026, down from $1.3M a year earlier. Management states existing cash and forecasted cash flows will not be sufficient to fund operations for the next 12 months.
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Committed Equity Facility is the Lifeline
The $40M CEF with Roth Principal Investments allows Flux Power to sell shares at a 3.0%-5.25% discount to VWAP, but only if the stock closes above $0.50. The stock closed at $0.595 on August 14, 2026, leaving a thin margin.
Analysis · FLUX · Manufacturing
The annual report confirms Flux Power is in serious financial distress. An auditor's going concern opinion, a covenant default on the GBC credit facility, and a cash balance of just $0.3M mean the company may not survive the next 12 months without new financing. The only lifeline is a $40M committed equity facility with Roth Principal Investments, but it requires the stock to stay above $0.50 — and the stock closed at $0.595 on August 14, 2026, leaving little margin. The Nasdaq delisting notice adds further pressure. This filing quantifies the full extent of the crisis: revenue down 37%, net loss of $7.4M, and an accumulated deficit of $113.8M.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 41.6% of the 317 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.47%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, FLUX was trading at $1.03 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $17.5M. The 52-week trading range was $0.47 to $7.55. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.