Flux Power Effects, Inc.( NASDAQ FLUX), an inventor of advanced lithium-ion energy storehouse results for electrification of marketable and artificial outfits, momentarily issued a letter to shareholders from Ron Dutt, CEO of Flux Power. Dear Fellow Shareholders, On behalf of the entire platoon at Flux Power, we hope you had an awful Holiday Season and wish you a Happy New Year! Throughout the timetable time 2023, Flux Power continued profit and periphery expansion while diligently following our roadmap to achieve harmonious profitability and an advanced capital structure. The time was stressed by new purchase orders from installed and new guests, ending 2023 with over 20,000 high-performance battery packs in the field for lift exchanges and another artificial outfit including field ground support outfit( GSE), and stationary energy storehouse for EV charging. For our products, during the time we attained UL results List Status for our coming-generation G2 series battery platform and began developing Artificial Intelligence( AI) features for the SkyBMS ® Telematics Platform. Operationally we opened a new Atlanta installation to condense client support services and continued our strategic force chain and profitability enhancement enterprise. 2023 enterprise fulfilled Added 8 new guests in 2023, reflecting guests’ desire to fulfill long-term line requirements of replacing supereminent acid battery packs with lithium-ion.
Expansion of Gross perimeters Leading to Profitability in FY2024 Commenced development of Artificial Intelligence( AI) features for SkyBMS ® Telematics Platform to drive more informed decision-making around asset operation and maximize functional effectiveness. Completed UL results in compliance testing to gain third-party, safety, and continuity instruments for high-demand new heavy-duty models to be launched in 2024, reflecting our product line expansion. Launched action with technology mate to incorporate fast charging capability into our lithium-ion battery cells. Reached prototype stage for the robotization of battery cells into modules to support current high client demand, while achieving copping simplification and reducing force.
Expanded testing and product confirmation capabilities with an on-point vibration table, to reduce time needed from testing to instrument. Opened a new Atlanta installation to condense client support services in response to growth in civil deals of lithium-ion battery packs, enabling brisk response times to Flux Power’s civil client base. Strategic Supply Chain and profitability enhancement enterprise continued to accelerate the path to cash inflow breakeven. Secured a new 15 million credit installation, with expansion capability to 20 million, from Gibraltar Business Capital( “ GBC ”) to fund working capital and to repay its credit installation with Silicon Valley Bank( “ SVB ”). Secured a new $ 2.0 million subordinated line of credit with Cleveland Capital furnishing fresh credit support with an extended duration to August 15, 2025. Terminated an at-the-request ( “ ATM ”) offering program. client order backlog of$31.1 M as of November 2, 2023. Throughout time, our increase in profit imaged the global trend of major pots laboriously seeking ways to dock emigrations and address the challenges posed by climate change, particularly through the relinquishment of electric lines.
The rising confluence of sustainability programs, fiscal edge, and governmental regulations is compelling businesses to explore innovative results that not only abbreviated carbon emigrations but also align with their environmental, social, and governance objects. In addition, our guests generally resettle to our lithium-ion packs to achieve advanced performance and cost reductions, without government impulses. To meet the demanding requirements of our guests with slice-edge results, we continued to introduce our products and capabilities and expand our reach into new operations. We began work to develop Artificial Intelligence features and capabilities into our SkyBMS Telematics platform, which delivers sapience into the outfit line’s operation so guests can make further informed opinions to maximize functional effectiveness. Our telemetry system with AI backing can help anticipate and resolve issues before they are, addressing the number one motorist in line operation- minimizing time-out of the outfit. We completed UL results compliance testing to gain a third-party, wisdom-backed instrument for our coming-generation clean energy battery technology. We also began an offered launching of our streamlined product platform that includes the rollout of “ heavy duty ” models for further demanding performance, which is anticipated to give added profit openings. Throughout the time we erected on our growing list of new and different Fortune 500 guests and mates.
We added on average two new major guests each quarter while maintaining orders from being guests. Expanding earnings from these connections helped drive new guests to our technology. We anticipate our new heavy-duty models and OEM private marker program commencing beforehand in timetable time 2024 will effectively meet the robust request demand. We anticipate our installed base of guests will continue to borrow our being and new lithium-ion packs for their line needs. Our significant backlog of open orders supports our strategy, along with a channel of high-probability orders of over 100 million ahead of us in 2024. In 2023 we took significant conduct to strengthen our capital structure while managing our business growth and periphery expansion with careful precedences as part of our strategy to enhance shareholder value. We migrated from our Silicon Valley Bank installation to a new 15 million credit installation with Gibraltar Business Capital, which provides lower interest rates, a two-time term, and the eventuality to expand the installation to 20 million to accommodate advanced working capital requirements as our business grows. This installation, along with our enhancement in operating cash performance, supports our current business growth. A fresh $ 2.0 million subordinated line of credit with Cleveland Capital provides lesser working capital optionality beyond our projected requirements and continued confidence in our growth strategy from a long-term investor in Flux Power. As we look to the future, we believe it’s a good commercial practice to have replaced our former shelf enrollment as this allows the Company outside inflexibility with respect to our capital operation.
