Flux Power’s management team is focused on executing its strategy to reposition the Company toward a path to profitability, supported by several factors:

Transforming the business: With the new management team, Flux Power has implemented extensive changes expected to benefit the Company in FY 2027 and beyond. It has lowered product and operating costs and improved operating efficiencies, significantly enhanced its supply chain to improve margins, refreshed its sales leadership team, expanded OEM relationships, and launched aggressive new marketing programs aimed at diversifying its customer base.
Early momentum: In the 2026 fiscal fourth quarter, the Company reduced operating expenses by 33% over the 2025 fiscal fourth quarter; achieved certification with a new major OEM, increasing its addressable market within electric material handling; and made a significant platform leap with the launch of AI-driven SkyEMS® 3.0, further positioning Flux Power as a differentiated technology provider.
New avenues for growth: Flux Power has developed – and is currently executing – a strategy to leverage its S series as an anchor product to approach new OEMs and dealership networks by providing unique white label solutions for their use cases, offering new avenues for accelerated, predictable growth. As announced in the 2026 fiscal fourth quarter, Flux Power has entered a new vertical, Robotics, in collaboration with a large global technology company, with clear visibility into potential future demand.
Growing market demand: As macroeconomic headwinds ease, Flux Power expects to capitalize on growing pent-up demand for its products. The Company believes lithium-ion will become the dominant battery technology in the coming years as Flux Power continues to build a scalable framework to capture this potentially significant market opportunity.
With a leaner cost structure and headcount and refreshed leadership team, Flux Power believes it is well positioned to deliver renewed growth and accelerate its path toward profitability as economic conditions improve. In addition, the Board is currently evaluating potential financing paths and strategic partnerships to ensure the Company has the financial flexibility necessary to continue executing its operating strategy.