Flux Power Holdings Inc reports multiple purchase orders valued at more than USD400,000 for its lithium LiFT Pack batteries and an expanded distributor network.
Flux Power develops and markets advanced lithium-ion energy storage systems based on its proprietary battery management system and in competition with entrenched forklift power systems.
Flux says a leading global beverage company made an initial purchase order of 17 LiFT Packs for delivery in early December. The order's value exceeds USD45,000.
Flux is working with a national retail automotive chain on a bid for up to 50 LiFT Packs for delivery over 12 months in conjunction with the purchase of new forklifts. A national supplier to the food and beverage industry is considering up to 100 LiFT Packs for delivery over 12 months, also with new forklift purchases.
The expanded Flux network in the US includes 18 battery distributors and more than 400 forklift dealers and forklift original-equipment-manufacturer (OEM) outlets. Flux says: "Several of these partners have already played important roles in supporting initial trials and sales."
Flux has made headway with the market for Class 3 pallet jacks.
Ronald Dutt, Flux's chief executive officer, says: "Our strategy is to focus on solid execution in the Class 3 lift truck space over the next several quarters. Down the road, we plan to extend our product line into larger industrial equipment.
"We also continue to build our product lines in portable power for use in remote locations [and] select specialty opportunities. Because we are still in the early stages of market development, we expect our revenue and operating performance to fluctuate over the next several quarters based on the size and timing of initial orders."
Flux has secured its third major technical approval from a forklift OEM. The approval followed extensive testing.
On 29 September, Flux reported revenues more than doubled to USD201,000 for the fourth quarter ended 30 June, compared with USD72,000 in the 2013 June quarter.
"Interest in and the pace of customer trials and adoption of our industrial battery product lines have exceeded expectations," Dutt says. Battery distributors in 18 US states are testing, purchasing and selling LiFT Packs.
Vista-based Flux Power filed a form D notice with the US Securities and Exchange Commission on 3 October for a proposed exempt offering with a single unidentified investor for up to USD1.3 million in convertible debt securities and related warrants to buy Flux stock.
The proposed offering will fund inventory, receivables and other working capital requirements for Flux's lithium storage business. The debt carries an 8% coupon and is convertible into Flux common stock at USD0.12 per share, representing a 9% premium to the closing price on 3 October. The offering includes warrants to buy Flux common stock at USD0.20 per share.