Flux Power Holdings, Inc. Fails to Meet Financial Covenant

On March 31, 2026, Flux Power Holdings, Inc. determined that it failed to comply with the minimum EBITDA financial covenant for the trailing three-month period ended March 31, 2026, under its Loan and Security Agreement with Gibraltar Business Capital, LLC (GBC). This failure constitutes an "Event of Default" under the agreement. The company is currently negotiating with GBC for an amendment or waiver. GBC has allowed the company to continue accessing its line of credit during negotiations, but reserves the right to limit this access at any time. The outstanding balance under the loan agreement as of March 31, 2026, was approximately $6.5 million. The company is optimistic about renegotiating the terms, as it has in the past, but cannot guarantee a favorable outcome or any outcome at all. Failure to reach an agreement could lead to GBC terminating its commitments and demanding immediate repayment of all obligations.