As of December 31, 2021, the Company had a cash balance of $7,855,000 and may need to raise additional capital in the near future. These events have placed pressure on the Company’s margins and cash resources and raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve months following the filing date of this Quarterly Report on Form 10-Q. The massive liquidity drain resulted in the requirement to include a going-concern warning in the company's quarterly report on form 10-Q (emphasis added by author):ĭelays in the receipt of key component parts due in part to supply chain disruptions as well as recent changes in the design of the product offering have impacted the Company’s ability to fulfill the backlog of sales orders as planned. Our goal is to monetize our existing backlog of $31.4 million in the months ahead and improve our working capital and cash flow needs. We ended the second quarter with $7.9 million in cash, and $19.6 million in product inventory.
This combination of factors increased our operating expenses and reduced gross profit.Ĭash usage in the second quarter of 2022 was also elevated due to global supply chain disruptions leading to high levels of inventory as well as new strategic initiatives that include new product designs, production facility improvements and better supply chain management. To address the unprecedented level of supply chain uncertainty, we elected to build inventory levels of key component parts. We experienced higher costs to obtain key components of our energy solutions and delays in the receipt of such parts which led to manufacturing and shipping delays.
#FLUX POWER STOCK FREE#
While the company's top- and bottom line results largely matched analyst expectations, Flux Power's cash usage reached new all-time highs.Ĭost inflation and ongoing supply chain disruptions resulted in negative free cash flow of $11.3 million for the quarter thus causing cash and cash equivalents to decline to just $7.9 million despite an initial $3.5 million drawdown under the company's $6.0 million revolving credit facility with Silicon Valley Bank.Īlthough customer demand was strong during the second quarter, our profitability was negatively impacted by continued disruption in our supply chain. On Thursday, lithium-ion battery manufacturer Flux Power Holdings ( NASDAQ: FLUX) or "Flux Power" reported less-than-stellar Q2/FY2022 results. If I were you, I wouldn't invest in them until they do.Stock photo and footage/iStock via Getty Images
#FLUX POWER STOCK HOW TO#
So far, none of these three companies has quite figured out how to do that with consistency. When you get right down to it, though, the business of business is not just to make sales, but to profit off those sales. FuelCell's sales gain, however, is an underwhelming 8.5%. Flux's sales in the first quarter of its new 2021 fiscal year more than doubled. Revenue at Plug Power is up 55% year over year through the first three reported quarters of 2020. According to data from S&P Global Market Intelligence, Flux Power has also been a perennial cash burner.Ībout the only good thing that can be said for these companies at present is that they're doing a good job growing sales (although some better than others). For the last 10 years, Plug and FuelCell have done nothing but lose money and burn cash. And when I look closely at Plug, FuelCell, and Flux Power, I really don't like what I see. What's an investor to do when stocks rise for apparently no reason? Check the numbers to see if they work, and if there's really a good reason to be buying these stocks.
0 kommentar(er)
