Flux Power Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

QUARTERLY FINANCIAL SUMMARY (Tables)

QUARTERLY FINANCIAL SUMMARY (Tables)

12 Months Ended

Jun. 30, 2024

Quarterly Financial Information Disclosure [Abstract]

The following tables set forth summarized quarterly financial information of the Restated Quarters, including the effects of the restatement on our previously reported consolidated statements of operations, and the quarter ended June 30, 2024.

SCHEDULE OF SUMMARIZED FINANCIAL ITEMS

	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	Fiscal year 2024
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
				Restated			Restated			Restated
Revenues	$	13,377,000		$	14,457,000		$	18,203,000		$	14,787,000
Gross profit		3,592,000			4,025,000			5,381,000			4,235,000
Operating loss		(1,811,000	)		(2,572,000	)		(447,000	)		(1,785,000	)
Net loss		(2,244,000	)		(3,005,000	)		(896,000	)		(2,188,000	)
Net loss per share – basic and diluted	$	(0.13	)	$	(0.18	)	$	(0.06	)	$	(0.13	)

	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
	Fiscal year 2023
	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
	Restated			Restated			Restated			Restated
Revenues	$	16,403,000		$	15,087,000		$	17,158,000		$	17,840,000
Gross profit		3,601,000			4,677,000			3,993,000			3,619,000
Operating loss		(1,832,000	)		(1,229,000	)		(1,419,000	)		(1,932,000	)
Net loss		(2,200,000	)		(1,487,000	)		(1,796,000	)		(2,260,000	)
Net loss per share – basic and diluted	$	(0.13	)	$	(0.10	)	$	(0.11	)	$	(0.14	)

	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
	Fiscal year 2022
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
	Restated			Restated			Restated			Restated
Revenues	$	15,195,000		$	13,177,000		$	7,690,000		$	6,271,000
Gross profit		2,714,000			1,601,000			187,000			1,105,000
Operating loss		(2,672,000	)		(3,841,000	)		(5,348,000	)		(4,360,000	)
Net loss		(2,838,000	)		(3,893,000	)		(5,379,000	)		(4,363,000	)
Net loss per share – basic and diluted	$	(0.18	)	$	(0.24	)	$	(0.33	)	$	(0.32	)

Quarterly Financial Summary

The net impact of the restatement on our quarterly and year-to-date unaudited condensed financial statements is as follows:

SCHEDULE OF QUARTERLY FINANCIAL SUMMARY

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			December 31,			September 30,
	Fiscal year 2024
	March 31,			December 31,			September 30,
	2024			2023			2023
	Restated			Restated			Restated
ASSETS

Current assets:
Cash	$	1,250,000		$	1,584,000		$	1,139,000
Accounts receivable		10,468,000			12,726,000			10,840,000
Inventories, net		17,362,000			15,554,000			16,591,000
Other current assets		840,000			942,000			1,053,000
Total current assets		29,920,000			30,806,000			29,623,000

Right of use asset		2,291,000			2,482,000			2,670,000
Property, plant and equipment, net		1,705,000			1,680,000			1,747,000
Other assets		118,000			119,000			119,000

Total assets	$	34,034,000		$	35,087,000		$	34,159,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	11,394,000		$	10,361,000		$	10,202,000
Accrued expenses		3,900,000			3,350,000			3,782,000
Line of credit		13,645,000			13,575,000			11,986,000
Deferred revenue		343,000			310,000			336,000
Customer deposits		18,000			232,000			17,000
Finance leases payable, current portion		153,000			150,000			147,000
Office leases payable, current portion		712,000			689,000			667,000
Accrued interest		136,000			130,000			102,000
Total current liabilities		30,301,000			28,797,000			27,239,000

Long term liabilities:
Finance leases payable, less current portion		153,000			191,000			229,000
Office leases payable, less current portion		1,511,000			1,698,000			1,880,000

Total liabilities		31,965,000			30,686,000			29,348,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-			-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,599,683, 16,532,275 and 16,478,237 shares issued and outstanding at March 31, 2024, December 31, 2023 and September 30, 2023, respectively		17,000			17,000			16,000
Additional paid-in capital		99,520,000			98,847,000			98,362,000
Accumulated deficit		(97,468,000	)		(94,463,000	)		(93,567,000	)
Total stockholders’ equity		2,069,000			4,401,000			4,811,000
Total liabilities and stockholders’ equity	$	34,034,000		$	35,087,000		$	34,159,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			December 31,			September 30,
	Fiscal year 2023
	March 31,			December 31,			September 30,
	2023			2022			2022
	Restated			Restated			Restated
ASSETS

Current assets:
Cash	$	790,000		$	157,000		$	306,000
Accounts receivable		9,881,000			10,507,000			11,596,000
Inventories, net		18,859,000			17,449,000			16,935,000
Other current assets		775,000			884,000			1,308,000
Total current assets		30,305,000			28,997,000			30,145,000

Right of use asset		3,035,000			2,601,000			2,558,000
Property, plant and equipment, net		1,724,000			1,561,000			1,758,000
Other assets		119,000			115,000			42,000

Total assets	$	35,183,000		$	33,274,000		$	34,503,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	10,855,000		$	12,837,000		$	13,505,000
Accrued expenses		2,604,000			2,298,000			2,228,000
Line of credit		10,491,000			6,811,000			5,651,000
Deferred revenue		–			81,000			347,000
Customer deposits		135,000			29,000			10,000
Finance leases payable, current portion		140,000			64,000			13,000
Office leases payable, current portion		616,000			542,000			523,000
Accrued interest		3,000			1,000			2,000
Total current liabilities		24,844,000			22,663,000			22,279,000

Long term liabilities:
Finance leases payable, less current portion		311,000			172,000			55,000
Office leases payable, less current portion		2,223,000			2,079,000			2,222,000

Total liabilities		27,378,000			24,914,000			24,556,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-			-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,156,432, 16,029,478 and 15,998,336 shares issued and outstanding at March 31, 2023, December 31, 2022 and September 30, 2022, respectively		16,000			16,000			16,000
Additional paid-in capital		96,968,000			96,036,000			95,827,000
Accumulated deficit		(89,179,000	)		(87,692,000	)		(85,896,000	)
Total stockholders’ equity		7,805,000			8,360,000			9,947,000
Total liabilities and stockholders’ equity	$	35,183,000		$	33,274,000		$	34,503,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			December 31,			September 30,
	Fiscal Year 2022
	March 31,			December 31,			September 30,
	2022			2021			2021
	Restated			Restated			Restated
ASSETS

Current assets:
Cash	$	3,804,000		$	7,855,000		$	15,737,000
Accounts receivable		9,508,000			5,184,000			4,511,000
Inventories, net		19,297,000			18,090,000			12,655,000
Other current assets		577,000			868,000			1,026,000
Total current assets		33,186,000			31,997,000			33,929,000

Right of use asset		2,711,000			2,821,000			2,929,000
Property, plant and equipment, net		1,588,000			1,627,000			1,471,000
Other assets		89,000			89,000			89,000

Total assets	$	37,574,000		$	36,534,000		$	38,418,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	13,361,000		$	9,239,000		$	9,298,000
Accrued expenses		2,142,000			2,233,000			1,908,000
Line of credit		3,500,000			3,500,000			–
Deferred revenue		313,000			140,000			127,000
Customer deposits		690,000			–			322,000
Office leases payable, current portion		486,000			469,000			452,000
Accrued interest		2,000			3,000			3,000
Total current liabilities		20,494,000			15,584,000			12,110,000

Long term liabilities:
Office leases payable, less current portion		2,493,000			2,621,000			2,745,000

Total liabilities		22,987,000			18,205,000			14,855,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-			-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,992,080, 15,987,502 and 15,987,502 shares issued and outstanding at March 31, 2022, December 31, 2021 and September 30, 2021, respectively		16,000			16,000			16,000
Additional paid-in capital		95,369,000			95,217,000			95,073,000
Accumulated deficit		(80,798,000	)		(76,904,000	)		(71,526,000	)
Total stockholders’ equity		14,587,000			18,329,000			23,563,000
Total liabilities and stockholders’ equity	$	37,574,000		$	36,534,000		$	38,418,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	March 31, 2024
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	1,250,000		$	–			$	1,250,000
Accounts receivable ^(b)		10,404,000			64,000		(b)		10,468,000
Inventories, net ^(a)(d)		20,174,000			(2,812,000	)	(a) (d)		17,362,000
Other current assets		840,000			-				840,000
Total current assets		32,668,000			(2,748,000	)			29,920,000

Right of use asset		2,291,000			–				2,291,000
Property, plant and equipment, net		1,705,000			–				1,705,000
Other assets		118,000			–				118,000

Total assets	$	36,782,000		$	(2,748,000	)		$	34,034,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(b)(d)(e)	$	11,050,000		$	344,000		(b) (d) (e)	$	11,394,000
Accrued expenses ^(e)		3,645,000			255,000		(e)		3,900,000
Line of credit		13,645,000			–				13,645,000
Deferred revenue		343,000			–				343,000
Customer deposits		18,000			–				18,000
Finance leases payable, current portion		153,000			–				153,000
Office leases payable, current portion		712,000			–				712,000
Accrued interest		136,000			–				136,000
Total current liabilities		29,702,000			599,000				30,301,000

Long term liabilities:
Finance leases payable, less current portion		153,000			–				153,000
Office leases payable, less current portion		1,511,000			–				1,511,000

Total liabilities		31,366,000			599,000				31,965,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,599,683 shares issued and outstanding		17,000			–				17,000
Additional paid-in capital		99,520,000			–				99,520,000
Accumulated deficit ^(a)(d)(e)		(94,121,000	)		(3,347,000	)	(a) (d) (e)		(97,468,000	)
Total stockholders’ equity		5,416,000			(3,347,000	)			2,069,000
Total liabilities and stockholders’ equity	$	36,782,000		$	(2,748,000	)		$	34,034,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	December 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	1,584,000		$	–			$	1,584,000
Accounts receivable ^(b)		12,579,000			147,000		(b)		12,726,000
Inventories, net ^(a)(d)		18,283,000			(2,729,000	)	(a) (d)		15,554,000
Other current assets		942,000			-				942,000
Total current assets		33,388,000			(2,582,000	)			30,806,000

Right of use asset		2,482,000			–				2,482,000
Property, plant and equipment, net		1,680,000			–				1,680,000
Other assets		119,000			–				119,000

Total assets	$	37,669,000		$	(2,582,000	)		$	35,087,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(b)(d)(e)	$	10,021,000		$	340,000		(b) (d) (e)	$	10,361,000
Accrued expenses ^(e)		3,290,000			60,000		(e)		3,350,000
Line of credit		13,575,000			–				13,575,000
Deferred revenue		310,000			–				310,000
Customer deposits		232,000			–				232,000
Finance leases payable, current portion		150,000			–				150,000
Office leases payable, current portion		689,000			–				689,000
Accrued interest		130,000			–				130,000
Total current liabilities		28,397,000			400,000				28,797,000

Long term liabilities:
Finance leases payable, less current portion		191,000			–				191,000
Office leases payable, less current portion		1,698,000			–				1,698,000

Total liabilities		30,286,000			400,000				30,686,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,532,275 shares issued and outstanding		17,000			–				17,000
Additional paid-in capital		98,847,000			–				98,847,000
Accumulated deficit ^(a)(d)(e)		(91,481,000	)		(2,982,000	)	(a) (d) (e)		(94,463,000	)
Total stockholders’ equity		7,383,000			(2,982,000	)			4,401,000
Total liabilities and stockholders’ equity	$	37,669,000		$	(2,582,000	)		$	35,087,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	September 30, 2023
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	1,139,000		$	–			$	1,139,000
Accounts receivable ^(b)		10,699,000			141,000		(b)		10,840,000
Inventories, net ^(a)(d)		19,495,000			(2,904,000	)	(a) (d)		16,591,000
Other current assets		1,053,000			-				1,053,000
Total current assets		32,386,000			(2,763,000	)			29,623,000

Right of use asset		2,670,000			–				2,670,000
Property, plant and equipment, net		1,747,000			–				1,747,000
Other assets		119,000			–				119,000

Total assets	$	36,922,000		$	(2,763,000	)		$	34,159,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(d)	$	10,065,000		$	137,000		(d)	$	10,202,000
Accrued expenses		3,782,000			–				3,782,000
Line of credit		11,986,000			–				11,986,000
Deferred revenue		336,000			–				336,000
Customer deposits		17,000			–				17,000
Finance leases payable, current portion		147,000			–				147,000
Office leases payable, current portion		667,000			–				667,000
Accrued interest		102,000			–				102,000
Total current liabilities		27,102,000			137,000				27,239,000

Long term liabilities:
Finance leases payable, less current portion		229,000			–				229,000
Office leases payable, less current portion		1,880,000			–				1,880,000

Total liabilities		29,211,000			137,000				29,348,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,478,237 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		98,362,000			–				98,362,000
Accumulated deficit ^(a)(b)(d)		(90,667,000	)		(2,900,000	)	(a) (b) (d)		(93,567,000	)
Total stockholders’ equity		7,711,000			(2,900,000	)			4,811,000
Total liabilities and stockholders’ equity	$	36,922,000		$	(2,763,000	)		$	34,159,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	March 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	790,000		$	–			$	790,000
Accounts receivable ^(b)		9,853,000			28,000		(b)		9,881,000
Inventories, net ^(a)(d)		20,959,000			(2,100,000	)	(a) (d)		18,859,000
Other current assets		775,000			-				775,000
Total current assets		32,377,000			(2,072,000	)			30,305,000

Right of use asset		3,035,000			–				3,035,000
Property, plant and equipment, net		1,724,000			–				1,724,000
Other assets		119,000			–				119,000

Total assets	$	37,255,000		$	(2,072,000	)		$	35,183,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(b)	$	10,827,000		$	28,000		(b)	$	10,855,000
Accrued expenses		2,604,000			–				2,604,000
Line of credit		10,491,000			–				10,491,000
Customer deposits		135,000			–				135,000
Finance leases payable, current portion		140,000			–				140,000
Office leases payable, current portion		616,000			–				616,000
Accrued interest		3,000			–				3,000
Total current liabilities		24,816,000			28,000				24,844,000

Long term liabilities:
Finance leases payable, less current portion		311,000			–				311,000
Office leases payable, less current portion		2,223,000			–				2,223,000

Total liabilities		27,350,000			28,000				27,378,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,156,432 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		96,968,000			–				96,968,000
Accumulated deficit ^(a)(d)		(87,079,000	)		(2,100,000	)	(a) (d)		(89,179,000	)
Total stockholders’ equity		9,905,000			(2,100,000	)			7,805,000
Total liabilities and stockholders’ equity	$	37,255,000		$	(2,072,000	)		$	35,183,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	December 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	157,000		$	–			$	157,000
Accounts receivable ^(b)		10,467,000			40,000		(b)		10,507,000
Inventories, net ^(a)(d)		19,507,000			(2,058,000	)	(a) (d)		17,449,000
Other current assets		884,000			-				884,000
Total current assets		31,015,000			(2,018,000	)			28,997,000

Right of use asset		2,601,000			–				2,601,000
Property, plant and equipment, net		1,561,000			–				1,561,000
Other assets		115,000			–				115,000

Total assets	$	35,292,000		$	(2,018,000	)		$	33,274,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(b)	$	12,797,000		$	40,000		(b)	$	12,837,000
Accrued expenses		2,298,000			–				2,298,000
Line of credit		6,811,000			–				6,811,000
Deferred revenue		81,000			–				81,000
Customer deposits		29,000			–				29,000
Finance leases payable, current portion		64,000			–				64,000
Office leases payable, current portion		542,000			–				542,000
Accrued interest		1,000			–				1,000
Total current liabilities		22,623,000			40,000				22,663,000

Long term liabilities:
Finance leases payable, less current portion		172,000			–				172,000
Office leases payable, less current portion		2,079,000			–				2,079,000

Total liabilities		24,874,000			40,000				24,914,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		–			–				–
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,029,478 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		96,036,000			–				96,036,000
Accumulated deficit ^(a)(d)		(85,634,000	)		(2,058,000	)	(a) (d)		(87,692,000	)
Total stockholders’ equity		10,418,000			(2,058,000	)			8,360,000
Total liabilities and stockholders’ equity	$	35,292,000		$	(2,018,000	)		$	33,274,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	September 30, 2022
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	306,000		$	–			$	306,000
Accounts receivable		11,596,000			-				11,596,000
Inventories, net ^(a)(d)		18,878,000			(1,943,000	)	(a) (d)		16,935,000
Other current assets		1,308,000			-				1,308,000
Total current assets		32,088,000			(1,943,000	)			30,145,000

Right of use asset		2,558,000			–				2,558,000
Property, plant and equipment, net		1,758,000			–				1,758,000
Other assets		42,000			–				42,000

Total assets	$	36,446,000		$	(1,943,000	)		$	34,503,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	13,505,000		$	–			$	13,505,000
Accrued expenses		2,228,000			–				2,228,000
Line of credit		5,651,000			–				5,651,000
Deferred revenue		347,000			–				347,000
Customer deposits		10,000			–				10,000
Finance leases payable, current portion		13,000			–				13,000
Office leases payable, current portion		523,000			–				523,000
Accrued interest		2,000			–				2,000
Total current liabilities		22,279,000			–				22,279,000

Long term liabilities:
Finance leases payable, less current portion		55,000			–				55,000
Office leases payable, less current portion		2,222,000			–				2,222,000

Total liabilities		24,556,000			–				24,556,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,998,336 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		95,827,000			–				95,827,000
Accumulated deficit ^(a)(d)		(83,953,000	)		(1,943,000	)	(a) (d)		(85,896,000	)
Total stockholders’ equity		11,890,000			(1,943,000	)			9,947,000
Total liabilities and stockholders’ equity	$	36,446,000		$	(1,943,000	)		$	34,503,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	March 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	3,804,000		$	–			$	3,804,000
Accounts receivable		9,508,000			-				9,508,000
Inventories, net ^{(a) (d)}		20,934,000			(1,637,000	)	(a) (d)		19,297,000
Other current assets		577,000			-				577,000
Total current assets		34,823,000			(1,637,000	)			33,186,000

Right of use asset		2,711,000			–				2,711,000
Property, plant and equipment, net		1,588,000			–				1,588,000
Other assets		89,000			–				89,000

Total assets	$	39,211,000		$	(1,637,000	)		$	37,574,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	13,361,000		$	–			$	13,361,000
Accrued expenses		2,142,000			–				2,142,000
Line of credit		3,500,000			–				3,500,000
Deferred revenue		313,000			–				313,000
Customer deposits		690,000			–				690,000
Office leases payable, current portion		486,000			–				486,000
Accrued interest		2,000			–				2,000
Total current liabilities		20,494,000			–				20,494,000

Long term liabilities:
Office leases payable, less current portion		2,493,000			–				2,493,000

Total liabilities		22,987,000			–				22,987,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,992,080 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		95,369,000			–				95,369,000
Accumulated deficit^{(a) (d)}		(79,161,000	)		(1,637,000	)	(a) (d)		(80,798,000	)
Total stockholders’ equity		16,224,000			(1,637,000	)			14,587,000
Total liabilities and stockholders’ equity	$	39,211,000		$	(1,637,000	)		$	37,574,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	December 31, 2021
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	7,855,000		$	–			$	7,855,000
Accounts receivable		5,184,000			-				5,184,000
Inventories, net ^{(a) (d)}		19,583,000			(1,493,000	)	(a) (d)		18,090,000
Other current assets		868,000			-				868,000
Total current assets		33,490,000			(1,493,000	)			31,997,000

Right of use asset		2,821,000			–				2,821,000
Property, plant and equipment, net		1,627,000			–				1,627,000
Other assets		89,000			–				89,000

Total assets	$	38,027,000		$	(1,493,000	)		$	36,534,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	9,239,000		$	–			$	9,239,000
Accrued expenses		2,233,000			–				2,233,000
Line of credit		3,500,000			–				3,500,000
Deferred revenue		140,000			–				140,000
Office leases payable, current portion		469,000			–				469,000
Accrued interest		3,000			–				3,000
Total current liabilities		15,584,000			–				15,584,000

Long term liabilities:
Office leases payable, less current portion		2,621,000			–				2,621,000

Total liabilities		18,205,000			–				18,205,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,987,502 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		95,217,000			–				95,217,000
Accumulated deficit ^{(a) (d)}		(75,411,000	)		(1,493,000	)	(a) (d)		(76,904,000	)
Total stockholders’ equity		19,822,000			(1,493,000	)			18,329,000
Total liabilities and stockholders’ equity	$	38,027,000		$	(1,493,000	)		$	36,534,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	September 30, 2021
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	15,737,000		$	–			$	15,737,000
Accounts receivable		4,511,000			-				4,511,000
Inventories, net ^(a)(d)		13,846,000			(1,191,000	)	(a) (d)		12,655,000
Other current assets		1,026,000			-				1,026,000
Total current assets		35,120,000			(1,191,000	)			33,929,000

Right of use asset		2,929,000			–				2,929,000
Property, plant and equipment, net		1,471,000			–				1,471,000
Other assets		89,000			–				89,000

Total assets	$	39,609,000		$	(1,191,000	)		$	38,418,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	9,298,000		$	–			$	9,298,000
Accrued expenses		1,908,000			–				1,908,000
Deferred revenue		127,000			–				127,000
Customer deposits		322,000			–				322,000
Office leases payable, current portion		452,000			–				452,000
Accrued interest		3,000			–				3,000
Total current liabilities		12,110,000			–				12,110,000

Long term liabilities:
Office leases payable, less current portion		2,745,000			–				2,745,000

Total liabilities		14,855,000			–				14,855,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Preferred stock value		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,987,502 shares issued and outstanding		16,000			–				16,000
Common stock value		16,000			–				16,000
Additional paid-in capital		95,073,000			–				95,073,000
Accumulated deficit		(70,335,000	)		(1,191,000	)	(a) (d)		(71,526,000	)
Total stockholders’ equity		24,754,000			(1,191,000	)			23,563,000
Total liabilities and stockholders’ equity	$	39,609,000		$	(1,191,000	)		$	38,418,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Fiscal year 2024
	March 31, 2024						December 31, 2023						September 30, 2023
	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Restated			Restated			Restated			Restated			Restated
Revenues	$	14,457,000		$	47,447,000		$	18,203,000		$	32,990,000		$	14,787,000
Cost of sales		10,432,000			33,806,000			12,822,000			23,374,000			10,552,000

Gross profit		4,025,000			13,641,000			5,381,000			9,616,000			4,235,000

Operating expenses:
Selling and administrative		5,311,000			14,629,000			4,593,000			9,318,000			4,725,000
Research and development		1,286,000			3,816,000			1,235,000			2,530,000			1,295,000
Total operating expenses		6,597,000			18,445,000			5,828,000			11,848,000			6,020,000

Operating loss		(2,572,000	)		(4,804,000	)		(447,000	)		(2,232,000	)		(1,785,000	)

Other income (expense):
Other income
Interest income (expense), net		(433,000	)		(1,285,000	)		(449,000	)		(852,000	)		(403,000	)

Net loss	$	(3,005,000	)	$	(6,089,000	)	$	(896,000	)	$	(3,084,000	)	$	(2,188,000	)

Net loss per share - basic and diluted	$	(0.18	)	$	(0.37	)	$	(0.06	)	$	(0.19	)	$	(0.13	)

Weighted average number of common shares outstanding - basic and diluted		16,538,998			16,510,046			16,516,700			16,495,727			16,474,754

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Fiscal year 2023
	March 31, 2023						December 31, 2022						September 30, 2022
	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Restated			Restated			Restated			Restated			Restated
Revenues	$	15,087,000		$	50,085,000		$	17,158,000		$	34,998,000		$	17,840,000
Cost of sales		10,410,000			37,796,000			13,165,000			27,386,000			14,221,000

Gross profit		4,677,000			12,289,000			3,993,000			7,612,000			3,619,000

Operating expenses:
Selling and administrative		4,724,000			13,510,000			4,250,000			8,786,000			4,536,000
Research and development		1,182,000			3,359,000			1,162,000			2,177,000			1,015,000
Total operating expenses		5,906,000			16,869,000			5,412,000			10,963,000			5,551,000

Operating loss		(1,229,000	)		(4,580,000	)		(1,419,000	)		(3,351,000	)		(1,932,000	)

Other income (expense):
Other income		–			8,000			8,000			8,000			–
Interest income (expense), net		(258,000	)		(971,000	)		(385,000	)		(713,000	)		(328,000	)

Net loss	$	(1,487,000	)	$	(5,543,000	)	$	(1,796,000	)	$	(4,056,000	)	$	(2,260,000	)

Net loss per share - basic and diluted	$	(0.10	)	$	(0.35	)	$	(0.11	)	$	(0.25	)	$	(0.14	)

Weighted average number of common shares outstanding - basic and diluted		16,048,054			16,021,653			16,020,183			16,008,740			15,997,296

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Fiscal year 2022
	March 31, 2022						December 31, 2021						September 30, 2021
	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Restated			Restated			Restated			Restated			Restated
Revenues	$	13,177,000		$	27,138,000		$	7,690,000		$	13,961,000		$	6,271,000
Cost of sales		11,576,000			24,245,000			7,503,000			12,669,000			5,166,000

Gross profit		1,601,000			2,893,000			187,000			1,292,000			1,105,000

Operating expenses:
Selling and administrative		3,904,000			11,402,000			4,000,000			7,498,000			3,498,000
Research and development		1,538,000			5,040,000			1,535,000			3,502,000			1,967,000
Total operating expenses		5,442,000			16,442,000			5,535,000			11,000,000			5,465,000

Operating loss		(3,841,000	)		(13,549,000	)		(5,348,000	)		(9,708,000	)		(4,360,000	)

Other income (expense):
Interest income (expense), net		(52,000	)		(86,000	)		(31,000	)		(34,000	)		(3,000	)

Net loss	$	(3,893,000	)	$	(13,635,000	)	$	(5,379,000	)	$	(9,742,000	)	$	(4,363,000	)

Net loss per share - basic and diluted	$	(0.24	)	$	(0.89	)	$	(0.33	)	$	(0.65	)	$	(0.32	)

Weighted average number of common shares outstanding - basic and diluted		15,988,926			15,254,983			15,987,502			14,895,989			13,804,475

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended March 31, 2024
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	14,457,000		$	–			$	14,457,000
Cost of sales ^(a)(e)		10,067,000			365,000		(a) (e)		10,432,000

Gross profit		4,390,000			(365,000	)			4,025,000

Operating expenses:
Selling and administrative		5,311,000			–				5,311,000
Research and development		1,286,000			–				1,286,000
Total operating expenses		6,597,000			–				6,597,000

Operating loss		(2,207,000	)		(365,000	)			(2,572,000	)

Other income (expense):
Interest income (expense), net		(433,000	)		–				(433,000	)

Net loss	$	(2,640,000	)	$	(365,000	)		$	(3,005,000	)

Net loss per share - basic and diluted	$	(0.16	)	$	(0.02	)		$	(0.18	)

Weighted average number of common shares outstanding - basic and diluted		16,538,998			16,538,998				16,538,998

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended December 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues ^(b)	$	18,344,000		$	(141,000	)	(b)	$	18,203,000
Cost of sales ^(a)(c)(d)(e)		12,676,000			146,000		(a) (c) (d) (e)		12,822,000

Gross profit		5,668,000			(287,000	)			5,381,000

Operating expenses:
Selling and administrative		4,593,000			–				4,593,000
Research and development ^(c)		1,440,000			(205,000	)	(c)		1,235,000
Total operating expenses		6,033,000			(205,000	)			5,828,000

Operating loss		(365,000	)		(82,000	)			(447,000	)

Other income (expense):
Interest income (expense), net		(449,000	)		–				(449,000	)

Net loss	$	(814,000	)	$	(82,000	)		$	(896,000	)

Net loss per share - basic and diluted	$	(0.05	)	$	(0.01	)		$	(0.06	)

Weighted average number of common shares outstanding - basic and diluted		16,516,700			16,516,700				16,516,700

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues^(b)	$	14,797,000		$	(10,000	)	(b)	$	14,787,000
Cost of sales^(a)		10,486,000			66,000		(a)		10,552,000

Gross profit		4,311,000			(76,000	)			4,235,000

Operating expenses:
Selling and administrative		4,725,000			–				4,725,000
Research and development		1,295,000			–				1,295,000
Total operating expenses		6,020,000			–				6,020,000

Operating loss		(1,709,000	)		(76,000	)			(1,785,000	)

Other income (expense):
Interest income (expense), net		(403,000	)		–				(403,000	)

Net loss	$	(2,112,000	)	$	(76,000	)		$	(2,188,000	)

Net loss per share - basic and diluted	$	(0.13	)	$	(0.00	)		$	(0.13	)

Weighted average number of common shares outstanding - basic and diluted		16,474,754			16,474,754				16,474,754

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended March 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	15,087,000		$	–			$	15,087,000
Cost of sales^(a)(d)		10,368,000			42,000		(a) (d)		10,410,000

Gross profit		4,719,000			(42,000	)			4,677,000

Operating expenses:
Selling and administrative		4,724,000			–				4,724,000
Research and development		1,182,000			–				1,182,000
Total operating expenses		5,906,000			–				5,906,000

Operating loss		(1,187,000	)		(42,000	)			(1,229,000	)

Other income (expense):
Interest income (expense), net		(258,000	)		–				(258,000	)

Net loss	$	(1,445,000	)	$	(42,000	)		$	(1,487,000	)

Net loss per share - basic and diluted	$	(0.09	)	$	(0.01	)		$	(0.10	)

Weighted average number of common shares outstanding - basic and diluted		16,048,054			16,048,054				16,048,054

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended December 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	17,158,000		$	–			$	17,158,000
Cost of sales ^(a)(d)		13,050,000			115,000		(a) (d)		13,165,000

Gross profit		4,108,000			(115,000	)			3,993,000

Operating expenses:
Selling and administrative		4,250,000			–				4,250,000
Research and development		1,162,000			–				1,162,000
Total operating expenses		5,412,000			–				5,412,000

Operating loss		(1,304,000	)		(115,000	)			(1,419,000	)

Other income (expense):
Other income		8,000			–				8,000
Interest income (expense), net		(385,000	)		–				(385,000	)

Net loss	$	(1,681,000	)	$	(115,000	)		$	(1,796,000	)

Net loss per share - basic and diluted	$	(0.10	)	$	(0.01	)		$	(0.11	)

Weighted average number of common shares outstanding - basic and diluted		16,020,183			16,020,183				16,020,183

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	17,840,000		$	–			$	17,840,000
Cost of sales ^(a)(c)(d)		13,892,000			329,000		(a) (c) (d)		14,221,000

Gross profit		3,948,000			(329,000	)			3,619,000

Operating expenses:
Selling and administrative		4,536,000			–				4,536,000
Research and development ^(c)		1,223,000			(208,000	)	(c)		1,015,000
Total operating expenses		5,759,000			(208,000	)			5,551,000

Operating loss		(1,811,000	)		(121,000	)			(1,932,000	)

Other income (expense):
Interest income (expense), net		(328,000	)		–				(328,000	)

Net loss	$	(2,139,000	)	$	(121,000	)		$	(2,260,000	)

Net loss per share - basic and diluted	$	(0.13	)	$	(0.01	)		$	(0.14	)

Weighted average number of common shares outstanding - basic and diluted		15,997,296			15,997,296				15,997,296

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended March 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	13,177,000		$	–			$	13,177,000
Cost of sales ^(a)(c)(d)		11,257,000			319,000		(a) (c) (d)		11,576,000

Gross profit		1,920,000			(319,000	)			1,601,000

Operating expenses:
Selling and administrative		3,904,000			–				3,904,000
Research and development ^(c)		1,713,000			(175,000	)	(c)		1,538,000
Total operating expenses		5,617,000			(175,000	)			5,442,000

Operating loss		(3,697,000	)		(144,000	)			(3,841,000	)

Other income (expense):
Interest income (expense), net		(52,000	)		–				(52,000	)

Net loss	$	(3,749,000	)	$	(144,000	)		$	(3,893,000	)

Net loss per share - basic and diluted	$	(0.23	)	$	(0.01	)		$	(0.24	)

Weighted average number of common shares outstanding - basic and diluted		15,988,926			15,988,926				15,988,926

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended December 31, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	7,690,000		$	–			$	7,690,000
Cost of sales ^(a)(c)(d)		6,648,000			855,000		(a) (c) (d)		7,503,000

Gross profit		1,042,000			(855,000	)			187,000

Operating expenses:
Selling and administrative		4,000,000			–				4,000,000
Research and development ^(c)		2,088,000			(553,000	)	(c)		1,535,000
Total operating expenses		6,088,000			(553,000	)			5,535,000

Operating loss		(5,046,000	)		(302,000	)			(5,348,000	)

Other income (expense):
Interest income (expense), net		(31,000	)		–				(31,000	)

Net loss	$	(5,077,000	)	$	(302,000	)		$	(5,379,000	)

Net loss per share - basic and diluted	$	(0.32	)	$	(0.01	)		$	(0.33	)

Weighted average number of common shares outstanding - basic and diluted		15,987,502			15,987,502				15,987,502

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	6,271,000		$	–			$	6,271,000
Cost of sales ^(a)(d)		4,933,000			233,000		(a) (d)		5,166,000

Gross profit		1,338,000			(233,000	)			1,105,000

Operating expenses:
Selling and administrative		3,498,000			–				3,498,000
Research and development		1,967,000			–				1,967,000
Total operating expenses		5,465,000			–				5,465,000

Operating loss		(4,127,000	)		(233,000	)			(4,360,000	)

Other income (expense):
Interest income (expense), net		(3,000	)		–				(3,000	)

Net loss	$	(4,130,000	)	$	(233,000	)		$	(4,363,000	)

Net loss per share - basic and diluted	$	(0.30	)	$	(0.02	)		$	(0.32	)

Weighted average number of common shares outstanding - basic and diluted		13,804,475			13,804,475				13,804,475

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues ^(b)	$	33,141,000		$	(151,000	)	(b)	$	32,990,000
Cost of sales ^(a)(c)(d)(e)		23,162,000			212,000		(a) (c) (d) (e)		23,374,000

Gross profit		9,979,000			(363,000	)			9,616,000

Operating expenses:
Selling and administrative		9,318,000			–				9,318,000
Research and development ^(c)		2,735,000			(205,000	)	(c)		2,530,000
Total operating expenses		12,053,000			(205,000	)			11,848,000

Operating loss		(2,074,000	)		(158,000	)			(2,232,000	)

Other income (expense):
Interest income (expense), net		(852,000	)		–				(852,000	)

Net loss	$	(2,926,000	)	$	(158,000	)		$	(3,084,000	)

Net loss per share - basic and diluted	$	(0.18	)	$	(0.01	)		$	(0.19	)

Weighted average number of common shares outstanding - basic and diluted		16,495,727			16,495,727				16,495,727

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	34,998,000		$	–			$	34,998,000
Cost of sales ^(a)(c)(d)		26,942,000			444,000		(a) (c) (d)		27,386,000

Gross profit		8,056,000			(444,000	)			7,612,000

Operating expenses:
Selling and administrative		8,786,000			–				8,786,000
Research and development ^(c)		2,385,000			(208,000	)	(c)		2,177,000
Total operating expenses		11,171,000			(208,000	)			10,963,000

Operating loss		(3,115,000	)		(236,000	)			(3,351,000	)

Other income (expense):
Other income		8,000			–				8,000
Interest income (expense), net		(713,000	)		–				(713,000	)

Net loss	$	(3,820,000	)	$	(236,000	)		$	(4,056,000	)

Net loss per share - basic and diluted	$	(0.24	)	$	(0.01	)		$	(0.25	)

Weighted average number of common shares outstanding - basic and diluted		16,008,740			16,008,740				16,008,740

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	13,961,000		$	–			$	13,961,000
Cost of sales ^(a)(c)(d)		11,581,000			1,088,000		(a) (c) (d)		12,669,000

Gross profit		2,380,000			(1,088,000	)			1,292,000

Operating expenses:
Selling and administrative		7,498,000			–				7,498,000
Research and development ^(c)		4,055,000			(553,000	)	(c)		3,502,000
Total operating expenses		11,553,000			(553,000	)			11,000,000

Operating loss		(9,173,000	)		(535,000	)			(9,708,000	)

Other income (expense):
Interest income (expense), net		(34,000	)		–				(34,000	)

Net loss	$	(9,207,000	)	$	(535,000	)		$	(9,742,000	)

Net loss per share - basic and diluted	$	(0.62	)	$	(0.03	)		$	(0.65	)

Weighted average number of common shares outstanding - basic and diluted		14,895,989			14,895,989				14,895,989

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2024
	As previously reported			Restatement adjustments			Reference	As restated
Revenues ^(b)	$	47,598,000		$	(151,000	)	(b)	$	47,447,000
Cost of sales ^(a)(c)(d)(e)		33,229,000			577,000		(a) (c) (d) (e)		33,806,000

Gross profit		14,369,000			(728,000	)			13,641,000

Operating expenses:
Selling and administrative		14,629,000			–				14,629,000
Research and development ^(c)		4,021,000			(205,000	)	(c)		3,816,000
Total operating expenses		18,650,000			(205,000	)			18,445,000

Operating loss		(4,281,000	)		(523,000	)			(4,804,000	)

Other income (expense):
Interest income (expense), net		(1,285,000	)		–				(1,285,000	)

Net loss	$	(5,566,000	)	$	(523,000	)		$	(6,089,000	)

Net loss per share - basic and diluted	$	(0.34	)	$	(0.03	)		$	(0.37	)

Weighted average number of common shares outstanding - basic and diluted		16,510,046			16,510,046				16,510,046

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	50,085,000		$	–			$	50,085,000
Cost of sales ^(a)(c)(d)		37,310,000			486,000		(a) (c) (d)		37,796,000

Gross profit		12,775,000			(486,000	)			12,289,000

Operating expenses:
Selling and administrative		13,510,000			–				13,510,000
Research and development ^(c)		3,567,000			(208,000	)	(c)		3,359,000
Total operating expenses		17,077,000			(208,000	)			16,869,000

Operating loss		(4,302,000	)		(278,000	)			(4,580,000	)

Other income (expense):
Other income		8,000			–				8,000
Interest income (expense), net		(971,000	)		–				(971,000	)

Net loss	$	(5,265,000	)	$	(278,000	)		$	(5,543,000	)

Net loss per share - basic and diluted	$	(0.33	)	$	(0.02	)		$	(0.35	)

Weighted average number of common shares outstanding - basic and diluted		16,021,653			16,021,653				16,021,653

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	27,138,000		$	–			$	27,138,000
Cost of sales ^(a)(c)(d)		22,838,000			1,407,000		(a) (c) (d)		24,245,000

Gross profit		4,300,000			(1,407,000	)			2,893,000

Operating expenses:
Selling and administrative		11,402,000			–				11,402,000
Research and development ^(c)		5,768,000			(728,000	)	(c)		5,040,000
Total operating expenses		17,170,000			(728,000	)			16,442,000

Operating loss		(12,870,000	)		(679,000	)			(13,549,000	)

Other income (expense):
Interest income (expense), net		(86,000	)		–				(86,000	)

Net loss	$	(12,956,000	)	$	(679,000	)		$	(13,635,000	)

Net loss per share - basic and diluted	$	(0.85	)	$	(0.04	)		$	(0.89	)

Weighted average number of common shares outstanding - basic and diluted		15,254,983			15,254,983				15,254,983

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

		Shares		Capital Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
		Common Stock
	Reference	Shares		Capital Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
Balance, as restated, June 30, 2023			16,462,215	$	16,000	$	98,086,000	$	(91,379,000	)	$	6,723,000
Activity, as reported			16,022		–		276,000		(2,112,000	)		(1,836,000	)
Adjustments ^{(a) (b)}	(a) (b)		–		–		–		(76,000	)		(76,000	)
Balance, as restated, September 30, 2023			16,478,237		16,000		98,362,000		(93,567,000	)		4,811,000

Activity, as reported			54,038		1,000		485,000		(814,000	)		(328,000	)
Adjustments ^(a)(b)(d)(e)	(a) (b) (d) (e)		–		–		–		(82,000	)		(82,000	)
Balance, as restated, December 31, 2023			16,532,275		17,000		98,847,000		(94,463,000	)		4,401,000

Activity, as reported			67,408		–		673,000		(2,640,000	)		(1,967,000	)
Adjustments ^{(a) (e)}	(a) (e)		–		–		–		(365,000	)		(365,000	)
Balance, as restated, March 31, 2024			16,599,683	$	17,000	$	99,520,000	$	(97,468,000	)	$	2,069,000

		Common Stock
	Reference	Shares		Capital Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
Balance, as restated, June 30, 2022			15,996,658	$	16,000	$	95,732,000	$	(83,636,000	)	$	12,112,000
Activity, as reported			1,678		–		95,000		(2,139,000	)		(2,044,000	)
Adjustments ^(a) (d)	(a) (d)		–		–		–		(121,000	)		(121,000	)
Balance, as restated, September 30, 2022			15,998,336		16,000		95,827,000		(85,896,000	)		9,947,000

Activity, as reported			31,142		–		209,000		(1,681,000	)		(1,472,000	)
Adjustments ^(a) (d)	(a) (d)		–		–		–		(115,000	)		(115,000	)
Balance, as restated, December 31, 2022			16,029,478		16,000		96,036,000		(87,692,000	)		8,360,000

Activity, as reported			126,954		–		932,000		(1,445,000	)		(513,000	)
Adjustments ^(a) (d)	(a) (d)		–		–		–		(42,000	)		(42,000	)
Balance, as restated, March 31, 2023			16,156,432	$	16,000	$	96,968,000	$	(89,179,000	)	$	7,805,000

		Common Stock
	Reference	Shares		Capital Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
Balance, as restated, June 30, 2021*			13,652,164	$	14,000	$	79,197,000	$	(67,163,000	)	$	12,048,000
Activity, as reported			2,335,338		2,000		15,876,000		(4,130,000	)		11,748,000
Adjustments ^(a) (d)	(a) (d)		–		–		–		(233,000	)		(233,000	)
Balance, as restated, September 30, 2021			15,987,502		16,000		95,073,000		(71,526,000	)		23,563,000

Activity, as reported			–		–		144,000		(5,077,000	)		(4,933,000	)
Adjustments ^{(a) (d)}	(a) (d)		–		–		–		(302,000	)		(302,000	)
Balance, as restated, December 31, 2021			15,987,502		16,000		95,217,000		(76,905,000	)		18,328,000

Activity, as reported			4,578		–		152,000		(3,749,000	)		(3,597,000	)
Adjustments ^{(a) (d)}	(a) (d)		–		–		–		(144,000	)		(144,000	)
Balance, as restated, March 31, 2022			15,992,080	$	16,000	$	95,369,000	$	(80,798,000	)	$	14,587,000

*	June 30, 2021 total shareholders’ equity, as restated, reflects the impact of restatement adjustments related to periods prior to the year ended June 30, 2022. The impact of restatement is a decrease of $958,000 to accumulated deficit at June 30, 2021.

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended March 31, 2024			Six months ended December 31, 2023			Three months ended September 30, 2023
	Fiscal Year 2024
	Nine months ended March 31, 2024			Six months ended December 31, 2023			Three months ended September 30, 2023
	Restated			Restated			Restated
Cash flows from operating activities:
Net loss	$	(6,089,000	)	$	(3,084,000	)	$	(2,188,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		787,000			523,000			261,000
Stock-based compensation		1,233,000			670,000			276,000
Amortization of debt issuance costs		161,000			134,000			81,000
Non-cash lease expense		448,000			296,000			146,000
Inventory write downs		358,000			233,000			113,000
Changes in operating assets and liabilities:
Accounts receivable		(1,668,000	)		(3,926,000	)		(2,040,000	)
Inventories		(1,562,000	)		371,000			(546,000	)
Other assets		11,000			(65,000	)		(215,000	)
Accounts payable		1,522,000			489,000			330,000
Accrued expenses		719,000			169,000			601,000
Accrued interest		134,000			128,000			100,000
Office leases payable		(476,000	)		(312,000	)		(152,000	)
Deferred revenue		212,000			179,000			205,000
Customer deposits		(64,000	)		150,000			(65,000	)
Net cash used in operating activities		(4,274,000	)		(4,045,000	)		(3,093,000	)

Cash flows from investing activities:
Purchases of equipment		(588,000	)		(338,000	)		(181,000	)
Proceeds from sale of fixed assets
Net cash used in investing activities		(588,000	)		(338,000	)		(181,000	)

Cash flows from financing activities:
Proceeds from stock option exercises and employee stock purchase plan exercises		110,000			–			–
Proceeds from the issuance of common stock in registered direct offering, net of offering costs
Proceeds from the issuance of common stock in public offering, net of offering costs
Proceeds from revolving line of credit		52,820,000			35,868,000			18,055,000
Payment of revolving line of credit		(49,087,000	)		(32,205,000	)		(15,981,000	)
Payment of finance leases		(110,000	)		(75,000	)		(40,000	)
Net cash provided by financing activities		3,733,000			3,588,000			2,034,000

Net change in cash		(1,129,000	)		(795,000	)		(1,240,000	)
Cash, beginning of period		2,379,000			2,379,000			2,379,000

Cash, end of period	$	1,250,000		$	1,584,000		$	1,139,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	222,000		$	183,000		$	–
Warrants issued in connection with borrowing agreements, recorded as debt issuance cost	$	92,000		$	92,000		$	–

Supplemental cash flow information:
Interest paid	$	1,000,000		$	605,000		$	223,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended March 31, 2023			Six months ended December 31, 2022			Three months ended September 30, 2022
	Fiscal Year 2023
	Nine months ended March 31, 2023			Six months ended December 31, 2022			Three months ended September 30, 2022
	Restated			Restated			Restated
Cash flows from operating activities:
Net loss	$	(5,543,000	)	$	(4,056,000	)	$	(2,260,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		647,000			371,000			172,000
Stock-based compensation		539,000			304,000			95,000
Amortization of debt issuance costs		445,000			368,000			229,000
Non-cash lease expense		370,000			236,000			117,000
Inventory write downs		191,000			88,000			43,000
Changes in operating assets and liabilities:
Accounts receivable		(1,272,000	)		(1,898,000	)		(2,987,000	)
Inventories		(4,610,000	)		(3,097,000	)		(2,538,000	)
Other assets		11,000			(17,000	)		(229,000	)
Accounts payable		4,210,000			6,192,000			6,860,000
Accrued expenses		395,000			89,000			9,000
Accrued interest		2,000			–			1,000
Office leases payable		(379,000	)		(244,000	)		(120,000	)
Deferred revenue		(163,000	)		(82,000	)		184,000
Customer deposits		(40,000	)		(146,000	)		(165,000	)
Net cash used in operating activities		(5,197,000	)		(1,892,000	)		(589,000	)

Cash flows from investing activities:
Purchases of equipment		(753,000	)		(344,000	)		(352,000	)
Proceeds from sale of fixed assets		8,000			8,000			–
Net cash used in investing activities		(745,000	)		(336,000	)		(352,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in public offering, net of offering costs		697,000			–			–
Proceeds from revolving line of credit		48,800,000			30,550,000			12,900,000
Payment of revolving line of credit		(43,198,000	)		(28,628,000	)		(12,138,000	)
Payment of finance leases		(52,000	)		(22,000	)		–
Net cash provided by financing activities		6,247,000			1,900,000			762,000

Net change in cash		305,000			(328,000	)		(179,000	)
Cash, beginning of period		485,000			485,000			485,000

Cash, end of period	$	790,000		$	157,000		$	306,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Initial right of use asset recognition	$	855,000		$	258,000		$	78,000
Common stock issued for vested RSUs	$	114,000		$	114,000		$	5,000

Supplemental cash flow information:
Interest paid	$	524,000		$	288,000		$	99,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended March 31, 2022			Six months ended December 31, 2021			Three months ended September 30, 2021
	Fiscal Year 2022
	Nine months ended March 31, 2022			Six months ended December 31, 2021			Three months ended September 30, 2021
	Restated			Restated			Restated
Cash flows from operating activities:
Net loss	$	(13,635,000	)	$	(9,742,000	)	$	(4,363,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		412,000			259,000			123,000
Stock-based compensation		601,000			449,000			200,000
Noncash lease expense		324,000			214,000			106,000
Inventory write downs		482,000			351,000			110,000
Changes in operating assets and liabilities:
Accounts receivable		(3,411,000	)		913,000			1,586,000
Inventories		(10,224,000	)		(8,886,000	)		(3,210,000	)
Other assets		(118,000	)		(408,000	)		(567,000	)
Accounts payable		6,186,000			2,064,000			2,123,000
Accrued expenses		(441,000	)		(350,000	)		(675,000	)
Accrued interest		–			1,000			1,000
Office leases payable		(322,000	)		(211,000	)		(104,000	)
Deferred revenue		289,000			116,000			103,000
Customer deposits		519,000			(171,000	)		151,000
Net cash used in operating activities		(19,338,000	)		(15,401,000	)		(4,416,000	)

Cash flows from investing activities:
Purchases of equipment		(644,000	)		(530,000	)		(238,000	)
Net cash used in investing activities		(644,000	)		(530,000	)		(238,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs		13,971,000			13,971,000			14,076,000
Proceeds from the issuance of common stock in public offering, net of offering costs		1,602,000			1,602,000			1,602,000
Proceeds from revolving line of credit		3,500,000			3,500,000			–
Net cash provided by financing activities		19,073,000			19,073,000			15,678,000

Net change in cash		(909,000	)		3,142,000			11,024,000
Cash, beginning of period		4,713,000			4,713,000			4,713,000

Cash, end of period	$	3,804,000		$	7,855,000		$	15,737,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	9,700		$	–		$	–

Supplemental cash flow information:
Interest paid	$	86,000		$	33,000		$	2,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2024
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss ^(a)(b)(d)(e)	$	(5,566,000	)	$	(523,000	)	(a) (b) (d) (e)	$	(6,089,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		787,000			–				787,000
Stock-based compensation		1,233,000			–				1,233,000
Fair value of warrants issued as debt discount cost		92,000			(92,000	)	(f)		0
Amortization of debt issuance costs		161,000			–				161,000
Non-cash lease expense		448,000			–				448,000
Inventory write downs^(a)		13,000			345,000		(a)		358,000
Changes in operating assets and liabilities:
Accounts receivable ^(b)		(1,755,000	)		87,000		(b)		(1,668,000	)
Inventories^(a)(d)		(1,191,000	)		(371,000	)	(a) (d)		(1,562,000	)
Other assets		(81,000	)		92,000		(f)		11,000
Accounts payable^(b)(d)(e)		1,315,000			207,000		(b) (d) (e)		1,522,000
Accrued expenses^(e)		464,000			255,000		(e)		719,000
Accrued interest		134,000			–				134,000
Office leases payable		(476,000	)		–				(476,000	)
Deferred revenue		212,000			–				212,000
Customer deposits		(64,000	)		–				(64,000	)
Net cash used in operating activities		(4,274,000	)		–				(4,274,000	)

Cash flows from investing activities:
Purchases of equipment		(588,000	)		–				(588,000	)
Net cash used in investing activities		(588,000	)		–				(588,000	)

Cash flows from financing activities:
Proceeds from stock option exercises and employee stock purchase plan exercises		110,000			–				110,000
Proceeds from revolving line of credit		52,820,000			–				52,820,000
Payment of revolving line of credit		(49,087,000	)		–				(49,087,000	)
Payment of finance leases		(110,000	)		–				(110,000	)
Net cash provided by financing activities		3,733,000			–				3,733,000

Net change in cash		(1,129,000	)		–				(1,129,000	)
Cash, beginning of period		2,379,000			–				2,379,000

Cash, end of period	$	1,250,000		$	–			$	1,250,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	222,000		$	–			$	222,000
Warrants issued in connection with borrowing agreements, recorded as debt issuance cost	$	–		$	92,000		(f)	$	92,000

Supplemental cash flow information:
Interest paid	$	1,000,000		$	–			$	1,000,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(b)(d)(e)	$	(2,926,000	)	$	(158,000	)	(a) (b) (d) (e)	$	(3,084,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		523,000			(92,000	)	(f)		523,000
Stock-based compensation		670,000			–				670,000
Fair value of warrants issued as debt discount cost^(f)		92,000			(92,000	)	(f)		–
Amortization of debt issuance costs		134,000			–				134,000
Non-cash lease expense		296,000			–				296,000
Inventory write downs^(a)		(2,000	)		235,000		(a)		233,000
Changes in operating assets and liabilities:
Accounts receivable ^(b)		(3,930,000	)		4,000		(b)		(3,926,000	)
Inventories^(a)(d)		715,000			(344,000	)	(a) (d)		371,000
Other assets^(f)		(157,000	)		92,000		(f)		(65,000	)
Accounts payable^(b)(d)(e)		286,000			203,000		(b) (d) (e)		489,000
Accrued expenses^(e)		109,000			60,000		(e)		169,000
Accrued interest		128,000			–				128,000
Office leases payable		(312,000	)		–				(312,000	)
Deferred revenue		179,000			–				179,000
Customer deposits		150,000			–				150,000
Net cash used in operating activities		(4,045,000	)		–				(4,045,000	)

Cash flows from investing activities:
Purchases of equipment		(338,000	)		–				(338,000	)
Net cash used in investing activities		(338,000	)		–				(338,000	)

Cash flows from financing activities:
Proceeds from revolving line of credit		35,868,000			–				35,868,000
Payment of revolving line of credit		(32,205,000	)		–				(32,205,000	)
Payment of finance leases		(75,000	)		–				(75,000	)
Net cash provided by financing activities		3,588,000			–				3,588,000

Net change in cash		(795,000	)		–				(795,000	)
Cash, beginning of period		2,379,000			–				2,379,000

Cash, end of period	$	1,584,000		$	–			$	1,584,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	183,000		$	–			$	183,000
Warrants issued in connection with borrowing agreements, recorded as debt issuance cost ^(f)	$	-		$	92,000		(f)	$	92,000

Supplemental cash flow information:
Interest paid	$	605,000		$	–			$	605,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(b)	$	(2,112,000	)	$	(76,000	)	(a) (b)	$	(2,188,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		261,000			–				261,000
Stock-based compensation		276,000			–				276,000
Amortization of debt issuance costs		81,000			–				81,000
Non-cash lease expense		146,000			–				146,000
Inventory write downs^(a)		(3,000	)		116,000		(a)		113,000
Changes in operating assets and liabilities:
Accounts receivable ^(b)		(2,050,000	)		10,000		(b)		(2,040,000	)
Inventories^(a)		(496,000	)		(50,000	)	(a)		(546,000	)
Other assets		(215,000	)		–				(215,000	)
Accounts payable		330,000			–				330,000
Accrued expenses		601,000			–				601,000
Accrued interest		100,000			–				100,000
Office leases payable		(152,000	)		–				(152,000	)
Deferred revenue		205,000			–				205,000
Customer deposits		(65,000	)		–				(65,000	)
Net cash used in operating activities		(3,093,000	)		–				(3,093,000	)

Cash flows from investing activities:
Purchases of equipment		(181,000	)		–				(181,000	)
Net cash used in investing activities		(181,000	)		–				(181,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs
Proceeds from revolving line of credit		18,055,000			–				18,055,000
Payment of revolving line of credit		(15,981,000	)		–				(15,981,000	)
Payment of finance leases		(40,000	)		–				(40,000	)
Net cash provided by financing activities		2,034,000			–				2,034,000

Net change in cash		(1,240,000	)		–				(1,240,000	)
Cash, beginning of period		2,379,000			–				2,379,000

Cash, end of period	$	1,139,000		$	–			$	1,139,000

Supplemental cash flow information:
Interest paid	$	223,000		$	–			$	223,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(5,265,000	)	$	(278,000	)	(a) (d)	$	(5,543,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		647,000			–				647,000
Stock-based compensation		539,000			–				539,000
Amortization of debt issuance costs		445,000			–				445,000
Non-cash lease expense		370,000			–				370,000
Inventory write downs^(a)		214,000			(23,000	)	(a)		191,000
Changes in operating assets and liabilities:					–
Accounts receivable ^(b)		(1,244,000	)		(28,000	)	(b)		(1,272,000	)
Inventories^(a)(d)		(4,911,000	)		301,000		(a) (d)		(4,610,000	)
Other assets		11,000			–				11,000
Accounts payable ^(b)		4,182,000			28,000		(b)		4,210,000
Accrued expenses		395,000			–				395,000
Accrued interest		2,000			–				2,000
Office leases payable		(379,000	)		–				(379,000	)
Deferred revenue		(163,000	)		–				(163,000	)
Customer deposits		(40,000	)		–				(40,000	)
Net cash used in operating activities		(5,197,000	)		–				(5,197,000	)

Cash flows from investing activities:
Purchases of equipment		(753,000	)		–				(753,000	)
Proceeds from sale of fixed assets		8,000			–				8,000
Net cash used in investing activities		(745,000	)		–				(745,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in public offering, net of offering costs		697,000			–				697,000
Proceeds from revolving line of credit		48,800,000			–				48,800,000
Payment of revolving line of credit		(43,198,000	)		–				(43,198,000	)
Payment of finance leases		(52,000	)		–				(52,000	)
Net cash provided by financing activities		6,247,000			–				6,247,000

Net change in cash		305,000			–				305,000
Cash, beginning of period		485,000			–				485,000

Cash, end of period	$	790,000		$	–			$	790,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Initial right of use asset recognition	$	855,000		$	–			$	855,000
Common stock issued for vested RSUs	$	114,000		$	–			$	114,000

Supplemental cash flow information:
Interest paid	$	524,000		$	–			$	524,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(3,820,000	)	$	(236,000	)	(a) (d)	$	(4,056,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		371,000			–				371,000
Stock-based compensation		304,000			–				304,000
Amortization of debt issuance costs		368,000			–				368,000
Non-cash lease expense		236,000			–				236,000
Inventory write downs^(a)		135,000			(47,000	)	(a)		88,000
Changes in operating assets and liabilities:
Accounts receivable ^(b)		(1,858,000	)		(40,000	)	(b)		(1,898,000	)
Inventories^(a)(d)		(3,380,000	)		283,000		(a) (d)		(3,097,000	)
Other assets		(17,000	)		–				(17,000	)
Accounts payable ^(b)		6,152,000			40,000		(b)		6,192,000
Accrued expenses		89,000			–				89,000
Office leases payable		(244,000	)		–				(244,000	)
Deferred revenue		(82,000	)		–				(82,000	)
Customer deposits		(146,000	)		–				(146,000	)
Net cash used in operating activities		(1,892,000	)		–				(1,892,000	)

Cash flows from investing activities:
Purchases of equipment		(344,000	)		–				(344,000	)
Proceeds from sale of fixed assets		8,000			–				8,000
Net cash used in investing activities		(336,000	)		–				(336,000	)

Cash flows from financing activities:
Proceeds from revolving line of credit		30,550,000			–				30,550,000
Payment of revolving line of credit		(28,628,000	)		–				(28,628,000	)
Payment of finance leases		(22,000	)		–				(22,000	)
Net cash provided by financing activities		1,900,000			–				1,900,000

Net change in cash		(328,000	)		–				(328,000	)
Cash, beginning of period		485,000			–				485,000

Cash, end of period	$	157,000		$	–			$	157,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Initial right of use asset recognition	$	258,000		$	–			$	258,000
Common stock issued for vested RSUs	$	114,000		$	–			$	114,000

Supplemental cash flow information:
Interest paid	$	288,000		$	–			$	288,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(2,139,000	)	$	(121,000	)	(a) (d)	$	(2,260,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		172,000			–				172,000
Stock-based compensation		95,000			–				95,000
Amortization of debt issuance costs		229,000			–				229,000
Non-cash lease expense		117,000			–				117,000
Inventory write downs^(a)		25,000			18,000		(a)		43,000
Changes in operating assets and liabilities:
Accounts receivable		(2,987,000	)		–				(2,987,000	)
Inventories^(a)(d)		(2,641,000	)		103,000		(a) (d)		(2,538,000	)
Other assets		(229,000	)		–				(229,000	)
Accounts payable		6,860,000			–				6,860,000
Accrued expenses		9,000			–				9,000
Accrued interest		1,000			–				1,000
Office leases payable		(120,000	)		–				(120,000	)
Deferred revenue		184,000			–				184,000
Customer deposits		(165,000	)		–				(165,000	)
Net cash used in operating activities		(589,000	)		–				(589,000	)

Cash flows from investing activities:
Purchases of equipment		(352,000	)		–				(352,000	)
Net cash used in investing activities		(352,000	)		–				(352,000	)

Cash flows from financing activities:
Proceeds from revolving line of credit		12,900,000			–				12,900,000
Payment of revolving line of credit		(12,138,000	)		–				(12,138,000	)
Net cash provided by financing activities		762,000			–				762,000

Net change in cash		(179,000	)		–				(179,000	)
Cash, beginning of period		485,000			–				485,000

Cash, end of period	$	306,000		$	–			$	306,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Initial right of use asset recognition	$	78,000		$	–			$	78,000
Common stock issued for vested RSUs	$	5,000		$	–			$	5,000

Supplemental cash flow information:
Interest paid	$	99,000		$	–			$	99,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(12,956,000	)	$	(679,000	)	(a) (d)	$	(13,635,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		412,000			–				412,000
Stock-based compensation		601,000			–				601,000
Non-cash lease expense		324,000			–				324,000
Inventory write downs^(a)		109,000			373,000		(a)		482,000
Changes in operating assets and liabilities:
Accounts receivable		(3,411,000	)		–				(3,411,000	)
Inventories^(a)(d)		(10,530,000	)		306,000		(a) (d)		(10,224,000	)
Other assets		(118,000	)		–				(118,000	)
Accounts payable		6,186,000			–				6,186,000
Accrued expenses		(441,000	)		–				(441,000	)
Office leases payable		(322,000	)		–				(322,000	)
Deferred revenue		289,000			–				289,000
Customer deposits		519,000			–				519,000
Net cash used in operating activities		(19,338,000	)		–				(19,338,000	)

Cash flows from investing activities:
Purchases of equipment		(644,000	)		–				(644,000	)
Net cash used in investing activities		(644,000	)		–				(644,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs		13,971,000			–				13,971,000
Proceeds from the issuance of common stock in public offering, net of offering costs		1,602,000			–				1,602,000
Proceeds from revolving line of credit		3,500,000			–				3,500,000
Net cash provided by financing activities		19,073,000			–				19,073,000

Net change in cash		(909,000	)		–				(909,000	)
Cash, beginning of period		4,713,000			–				4,713,000

Cash, end of period	$	3,804,000		$	–			$	3,804,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	9,700		$	–			$	9,700

Supplemental cash flow information:
Interest paid	$	86,000		$	–			$	86,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(9,207,000	)	$	(535,000	)	(a) (d)	$	(9,742,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		259,000			–				259,000
Stock-based compensation		449,000			–				449,000
Non-cash lease expense		214,000			–				214,000
Inventory write downs^(a)		169,000			182,000		(a)		351,000
Changes in operating assets and liabilities:
Accounts receivable		913,000			–				913,000
Inventories^(a)(d)		(9,239,000	)		353,000		(a) (d)		(8,886,000	)
Other assets		(408,000	)		–				(408,000	)
Accounts payable		2,064,000			–				2,064,000
Accrued expenses		(350,000	)		–				(350,000	)
Accrued interest		1,000			–				1,000
Office leases payable		(211,000	)		–				(211,000	)
Deferred revenue		116,000			–				116,000
Customer deposits		(171,000	)		–				(171,000	)
Net cash used in operating activities		(15,401,000	)		–				(15,401,000	)

Cash flows from investing activities:
Purchases of equipment		(530,000	)		–				(530,000	)
Net cash used in investing activities		(530,000	)		–				(530,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs		13,971,000							13,971,000
Proceeds from the issuance of common stock in public offering, net of offering costs		1,602,000			–				1,602,000
Proceeds from revolving line of credit		3,500,000			–				3,500,000
Net cash provided by financing activities		19,073,000			–				19,073,000

Net change in cash		3,142,000			–				3,142,000
Cash, beginning of period		4,713,000			–				4,713,000

Cash, end of period	$	7,855,000		$	–			$	7,855,000

Supplemental cash flow information:
Interest paid	$	33,000		$	–			$	33,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(4,130,000	)	$	(233,000	)	(a) (d)	$	(4,363,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		123,000			–				123,000
Stock-based compensation		200,000			–				200,000
Non-cash lease expense		106,000			–				106,000
Inventory write downs^(a)		24,000			86,000		(a)		110,000
Changes in operating assets and liabilities:
Accounts receivable		1,586,000			–				1,586,000
Inventories^(a)(d)		(3,357,000	)		147,000		(a) (d)		(3,210,000	)
Other assets		(567,000	)		–				(567,000	)
Accounts payable		2,123,000			–				2,123,000
Accrued expenses		(675,000	)		–				(675,000	)
Accrued interest		1,000			–				1,000
Office leases payable		(104,000	)		–				(104,000	)
Deferred revenue		103,000			–				103,000
Customer deposits		151,000			–				151,000
Net cash used in operating activities		(4,416,000	)		–				(4,416,000	)

Cash flows from investing activities:
Purchases of equipment		(238,000	)		–				(238,000	)
Net cash used in investing activities		(238,000	)		–				(238,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs		14,076,000			–				14,076,000
Proceeds from the issuance of common stock in public offering, net of offering costs		1,602,000			–				1,602,000
Net cash provided by financing activities		15,678,000			–				15,678,000

Net change in cash		11,024,000			–				11,024,000
Cash, beginning of period		4,713,000			–				4,713,000

Cash, end of period	$	15,737,000		$	–			$	15,737,000

Supplemental cash flow information:
Interest paid	$	2,000		$	–			$	2,000

SCHEDULE OF QUARTERLY FINANCIAL SUMMARY

The net impact of the restatement on our quarterly and year-to-date unaudited condensed financial statements is as follows:

SCHEDULE OF QUARTERLY FINANCIAL SUMMARY

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			December 31,			September 30,
	Fiscal year 2024
	March 31,			December 31,			September 30,
	2024			2023			2023
	Restated			Restated			Restated
ASSETS

Current assets:
Cash	$	1,250,000		$	1,584,000		$	1,139,000
Accounts receivable		10,468,000			12,726,000			10,840,000
Inventories, net		17,362,000			15,554,000			16,591,000
Other current assets		840,000			942,000			1,053,000
Total current assets		29,920,000			30,806,000			29,623,000

Right of use asset		2,291,000			2,482,000			2,670,000
Property, plant and equipment, net		1,705,000			1,680,000			1,747,000
Other assets		118,000			119,000			119,000

Total assets	$	34,034,000		$	35,087,000		$	34,159,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	11,394,000		$	10,361,000		$	10,202,000
Accrued expenses		3,900,000			3,350,000			3,782,000
Line of credit		13,645,000			13,575,000			11,986,000
Deferred revenue		343,000			310,000			336,000
Customer deposits		18,000			232,000			17,000
Finance leases payable, current portion		153,000			150,000			147,000
Office leases payable, current portion		712,000			689,000			667,000
Accrued interest		136,000			130,000			102,000
Total current liabilities		30,301,000			28,797,000			27,239,000

Long term liabilities:
Finance leases payable, less current portion		153,000			191,000			229,000
Office leases payable, less current portion		1,511,000			1,698,000			1,880,000

Total liabilities		31,965,000			30,686,000			29,348,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-			-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,599,683, 16,532,275 and 16,478,237 shares issued and outstanding at March 31, 2024, December 31, 2023 and September 30, 2023, respectively		17,000			17,000			16,000
Additional paid-in capital		99,520,000			98,847,000			98,362,000
Accumulated deficit		(97,468,000	)		(94,463,000	)		(93,567,000	)
Total stockholders’ equity		2,069,000			4,401,000			4,811,000
Total liabilities and stockholders’ equity	$	34,034,000		$	35,087,000		$	34,159,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			December 31,			September 30,
	Fiscal year 2023
	March 31,			December 31,			September 30,
	2023			2022			2022
	Restated			Restated			Restated
ASSETS

Current assets:
Cash	$	790,000		$	157,000		$	306,000
Accounts receivable		9,881,000			10,507,000			11,596,000
Inventories, net		18,859,000			17,449,000			16,935,000
Other current assets		775,000			884,000			1,308,000
Total current assets		30,305,000			28,997,000			30,145,000

Right of use asset		3,035,000			2,601,000			2,558,000
Property, plant and equipment, net		1,724,000			1,561,000			1,758,000
Other assets		119,000			115,000			42,000

Total assets	$	35,183,000		$	33,274,000		$	34,503,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	10,855,000		$	12,837,000		$	13,505,000
Accrued expenses		2,604,000			2,298,000			2,228,000
Line of credit		10,491,000			6,811,000			5,651,000
Deferred revenue		–			81,000			347,000
Customer deposits		135,000			29,000			10,000
Finance leases payable, current portion		140,000			64,000			13,000
Office leases payable, current portion		616,000			542,000			523,000
Accrued interest		3,000			1,000			2,000
Total current liabilities		24,844,000			22,663,000			22,279,000

Long term liabilities:
Finance leases payable, less current portion		311,000			172,000			55,000
Office leases payable, less current portion		2,223,000			2,079,000			2,222,000

Total liabilities		27,378,000			24,914,000			24,556,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-			-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,156,432, 16,029,478 and 15,998,336 shares issued and outstanding at March 31, 2023, December 31, 2022 and September 30, 2022, respectively		16,000			16,000			16,000
Additional paid-in capital		96,968,000			96,036,000			95,827,000
Accumulated deficit		(89,179,000	)		(87,692,000	)		(85,896,000	)
Total stockholders’ equity		7,805,000			8,360,000			9,947,000
Total liabilities and stockholders’ equity	$	35,183,000		$	33,274,000		$	34,503,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			December 31,			September 30,
	Fiscal Year 2022
	March 31,			December 31,			September 30,
	2022			2021			2021
	Restated			Restated			Restated
ASSETS

Current assets:
Cash	$	3,804,000		$	7,855,000		$	15,737,000
Accounts receivable		9,508,000			5,184,000			4,511,000
Inventories, net		19,297,000			18,090,000			12,655,000
Other current assets		577,000			868,000			1,026,000
Total current assets		33,186,000			31,997,000			33,929,000

Right of use asset		2,711,000			2,821,000			2,929,000
Property, plant and equipment, net		1,588,000			1,627,000			1,471,000
Other assets		89,000			89,000			89,000

Total assets	$	37,574,000		$	36,534,000		$	38,418,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	13,361,000		$	9,239,000		$	9,298,000
Accrued expenses		2,142,000			2,233,000			1,908,000
Line of credit		3,500,000			3,500,000			–
Deferred revenue		313,000			140,000			127,000
Customer deposits		690,000			–			322,000
Office leases payable, current portion		486,000			469,000			452,000
Accrued interest		2,000			3,000			3,000
Total current liabilities		20,494,000			15,584,000			12,110,000

Long term liabilities:
Office leases payable, less current portion		2,493,000			2,621,000			2,745,000

Total liabilities		22,987,000			18,205,000			14,855,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-			-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,992,080, 15,987,502 and 15,987,502 shares issued and outstanding at March 31, 2022, December 31, 2021 and September 30, 2021, respectively		16,000			16,000			16,000
Additional paid-in capital		95,369,000			95,217,000			95,073,000
Accumulated deficit		(80,798,000	)		(76,904,000	)		(71,526,000	)
Total stockholders’ equity		14,587,000			18,329,000			23,563,000
Total liabilities and stockholders’ equity	$	37,574,000		$	36,534,000		$	38,418,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	March 31, 2024
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	1,250,000		$	–			$	1,250,000
Accounts receivable ^(b)		10,404,000			64,000		(b)		10,468,000
Inventories, net ^(a)(d)		20,174,000			(2,812,000	)	(a) (d)		17,362,000
Other current assets		840,000			-				840,000
Total current assets		32,668,000			(2,748,000	)			29,920,000

Right of use asset		2,291,000			–				2,291,000
Property, plant and equipment, net		1,705,000			–				1,705,000
Other assets		118,000			–				118,000

Total assets	$	36,782,000		$	(2,748,000	)		$	34,034,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(b)(d)(e)	$	11,050,000		$	344,000		(b) (d) (e)	$	11,394,000
Accrued expenses ^(e)		3,645,000			255,000		(e)		3,900,000
Line of credit		13,645,000			–				13,645,000
Deferred revenue		343,000			–				343,000
Customer deposits		18,000			–				18,000
Finance leases payable, current portion		153,000			–				153,000
Office leases payable, current portion		712,000			–				712,000
Accrued interest		136,000			–				136,000
Total current liabilities		29,702,000			599,000				30,301,000

Long term liabilities:
Finance leases payable, less current portion		153,000			–				153,000
Office leases payable, less current portion		1,511,000			–				1,511,000

Total liabilities		31,366,000			599,000				31,965,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,599,683 shares issued and outstanding		17,000			–				17,000
Additional paid-in capital		99,520,000			–				99,520,000
Accumulated deficit ^(a)(d)(e)		(94,121,000	)		(3,347,000	)	(a) (d) (e)		(97,468,000	)
Total stockholders’ equity		5,416,000			(3,347,000	)			2,069,000
Total liabilities and stockholders’ equity	$	36,782,000		$	(2,748,000	)		$	34,034,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	December 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	1,584,000		$	–			$	1,584,000
Accounts receivable ^(b)		12,579,000			147,000		(b)		12,726,000
Inventories, net ^(a)(d)		18,283,000			(2,729,000	)	(a) (d)		15,554,000
Other current assets		942,000			-				942,000
Total current assets		33,388,000			(2,582,000	)			30,806,000

Right of use asset		2,482,000			–				2,482,000
Property, plant and equipment, net		1,680,000			–				1,680,000
Other assets		119,000			–				119,000

Total assets	$	37,669,000		$	(2,582,000	)		$	35,087,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(b)(d)(e)	$	10,021,000		$	340,000		(b) (d) (e)	$	10,361,000
Accrued expenses ^(e)		3,290,000			60,000		(e)		3,350,000
Line of credit		13,575,000			–				13,575,000
Deferred revenue		310,000			–				310,000
Customer deposits		232,000			–				232,000
Finance leases payable, current portion		150,000			–				150,000
Office leases payable, current portion		689,000			–				689,000
Accrued interest		130,000			–				130,000
Total current liabilities		28,397,000			400,000				28,797,000

Long term liabilities:
Finance leases payable, less current portion		191,000			–				191,000
Office leases payable, less current portion		1,698,000			–				1,698,000

Total liabilities		30,286,000			400,000				30,686,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,532,275 shares issued and outstanding		17,000			–				17,000
Additional paid-in capital		98,847,000			–				98,847,000
Accumulated deficit ^(a)(d)(e)		(91,481,000	)		(2,982,000	)	(a) (d) (e)		(94,463,000	)
Total stockholders’ equity		7,383,000			(2,982,000	)			4,401,000
Total liabilities and stockholders’ equity	$	37,669,000		$	(2,582,000	)		$	35,087,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	September 30, 2023
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	1,139,000		$	–			$	1,139,000
Accounts receivable ^(b)		10,699,000			141,000		(b)		10,840,000
Inventories, net ^(a)(d)		19,495,000			(2,904,000	)	(a) (d)		16,591,000
Other current assets		1,053,000			-				1,053,000
Total current assets		32,386,000			(2,763,000	)			29,623,000

Right of use asset		2,670,000			–				2,670,000
Property, plant and equipment, net		1,747,000			–				1,747,000
Other assets		119,000			–				119,000

Total assets	$	36,922,000		$	(2,763,000	)		$	34,159,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(d)	$	10,065,000		$	137,000		(d)	$	10,202,000
Accrued expenses		3,782,000			–				3,782,000
Line of credit		11,986,000			–				11,986,000
Deferred revenue		336,000			–				336,000
Customer deposits		17,000			–				17,000
Finance leases payable, current portion		147,000			–				147,000
Office leases payable, current portion		667,000			–				667,000
Accrued interest		102,000			–				102,000
Total current liabilities		27,102,000			137,000				27,239,000

Long term liabilities:
Finance leases payable, less current portion		229,000			–				229,000
Office leases payable, less current portion		1,880,000			–				1,880,000

Total liabilities		29,211,000			137,000				29,348,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,478,237 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		98,362,000			–				98,362,000
Accumulated deficit ^(a)(b)(d)		(90,667,000	)		(2,900,000	)	(a) (b) (d)		(93,567,000	)
Total stockholders’ equity		7,711,000			(2,900,000	)			4,811,000
Total liabilities and stockholders’ equity	$	36,922,000		$	(2,763,000	)		$	34,159,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	March 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	790,000		$	–			$	790,000
Accounts receivable ^(b)		9,853,000			28,000		(b)		9,881,000
Inventories, net ^(a)(d)		20,959,000			(2,100,000	)	(a) (d)		18,859,000
Other current assets		775,000			-				775,000
Total current assets		32,377,000			(2,072,000	)			30,305,000

Right of use asset		3,035,000			–				3,035,000
Property, plant and equipment, net		1,724,000			–				1,724,000
Other assets		119,000			–				119,000

Total assets	$	37,255,000		$	(2,072,000	)		$	35,183,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(b)	$	10,827,000		$	28,000		(b)	$	10,855,000
Accrued expenses		2,604,000			–				2,604,000
Line of credit		10,491,000			–				10,491,000
Customer deposits		135,000			–				135,000
Finance leases payable, current portion		140,000			–				140,000
Office leases payable, current portion		616,000			–				616,000
Accrued interest		3,000			–				3,000
Total current liabilities		24,816,000			28,000				24,844,000

Long term liabilities:
Finance leases payable, less current portion		311,000			–				311,000
Office leases payable, less current portion		2,223,000			–				2,223,000

Total liabilities		27,350,000			28,000				27,378,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,156,432 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		96,968,000			–				96,968,000
Accumulated deficit ^(a)(d)		(87,079,000	)		(2,100,000	)	(a) (d)		(89,179,000	)
Total stockholders’ equity		9,905,000			(2,100,000	)			7,805,000
Total liabilities and stockholders’ equity	$	37,255,000		$	(2,072,000	)		$	35,183,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	December 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	157,000		$	–			$	157,000
Accounts receivable ^(b)		10,467,000			40,000		(b)		10,507,000
Inventories, net ^(a)(d)		19,507,000			(2,058,000	)	(a) (d)		17,449,000
Other current assets		884,000			-				884,000
Total current assets		31,015,000			(2,018,000	)			28,997,000

Right of use asset		2,601,000			–				2,601,000
Property, plant and equipment, net		1,561,000			–				1,561,000
Other assets		115,000			–				115,000

Total assets	$	35,292,000		$	(2,018,000	)		$	33,274,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable ^(b)	$	12,797,000		$	40,000		(b)	$	12,837,000
Accrued expenses		2,298,000			–				2,298,000
Line of credit		6,811,000			–				6,811,000
Deferred revenue		81,000			–				81,000
Customer deposits		29,000			–				29,000
Finance leases payable, current portion		64,000			–				64,000
Office leases payable, current portion		542,000			–				542,000
Accrued interest		1,000			–				1,000
Total current liabilities		22,623,000			40,000				22,663,000

Long term liabilities:
Finance leases payable, less current portion		172,000			–				172,000
Office leases payable, less current portion		2,079,000			–				2,079,000

Total liabilities		24,874,000			40,000				24,914,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		–			–				–
Common stock, $0.001 par value; 30,000,000 shares authorized; 16,029,478 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		96,036,000			–				96,036,000
Accumulated deficit ^(a)(d)		(85,634,000	)		(2,058,000	)	(a) (d)		(87,692,000	)
Total stockholders’ equity		10,418,000			(2,058,000	)			8,360,000
Total liabilities and stockholders’ equity	$	35,292,000		$	(2,018,000	)		$	33,274,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	September 30, 2022
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	306,000		$	–			$	306,000
Accounts receivable		11,596,000			-				11,596,000
Inventories, net ^(a)(d)		18,878,000			(1,943,000	)	(a) (d)		16,935,000
Other current assets		1,308,000			-				1,308,000
Total current assets		32,088,000			(1,943,000	)			30,145,000

Right of use asset		2,558,000			–				2,558,000
Property, plant and equipment, net		1,758,000			–				1,758,000
Other assets		42,000			–				42,000

Total assets	$	36,446,000		$	(1,943,000	)		$	34,503,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	13,505,000		$	–			$	13,505,000
Accrued expenses		2,228,000			–				2,228,000
Line of credit		5,651,000			–				5,651,000
Deferred revenue		347,000			–				347,000
Customer deposits		10,000			–				10,000
Finance leases payable, current portion		13,000			–				13,000
Office leases payable, current portion		523,000			–				523,000
Accrued interest		2,000			–				2,000
Total current liabilities		22,279,000			–				22,279,000

Long term liabilities:
Finance leases payable, less current portion		55,000			–				55,000
Office leases payable, less current portion		2,222,000			–				2,222,000

Total liabilities		24,556,000			–				24,556,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,998,336 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		95,827,000			–				95,827,000
Accumulated deficit ^(a)(d)		(83,953,000	)		(1,943,000	)	(a) (d)		(85,896,000	)
Total stockholders’ equity		11,890,000			(1,943,000	)			9,947,000
Total liabilities and stockholders’ equity	$	36,446,000		$	(1,943,000	)		$	34,503,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	March 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	3,804,000		$	–			$	3,804,000
Accounts receivable		9,508,000			-				9,508,000
Inventories, net ^{(a) (d)}		20,934,000			(1,637,000	)	(a) (d)		19,297,000
Other current assets		577,000			-				577,000
Total current assets		34,823,000			(1,637,000	)			33,186,000

Right of use asset		2,711,000			–				2,711,000
Property, plant and equipment, net		1,588,000			–				1,588,000
Other assets		89,000			–				89,000

Total assets	$	39,211,000		$	(1,637,000	)		$	37,574,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	13,361,000		$	–			$	13,361,000
Accrued expenses		2,142,000			–				2,142,000
Line of credit		3,500,000			–				3,500,000
Deferred revenue		313,000			–				313,000
Customer deposits		690,000			–				690,000
Office leases payable, current portion		486,000			–				486,000
Accrued interest		2,000			–				2,000
Total current liabilities		20,494,000			–				20,494,000

Long term liabilities:
Office leases payable, less current portion		2,493,000			–				2,493,000

Total liabilities		22,987,000			–				22,987,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,992,080 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		95,369,000			–				95,369,000
Accumulated deficit^{(a) (d)}		(79,161,000	)		(1,637,000	)	(a) (d)		(80,798,000	)
Total stockholders’ equity		16,224,000			(1,637,000	)			14,587,000
Total liabilities and stockholders’ equity	$	39,211,000		$	(1,637,000	)		$	37,574,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	December 31, 2021
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	7,855,000		$	–			$	7,855,000
Accounts receivable		5,184,000			-				5,184,000
Inventories, net ^{(a) (d)}		19,583,000			(1,493,000	)	(a) (d)		18,090,000
Other current assets		868,000			-				868,000
Total current assets		33,490,000			(1,493,000	)			31,997,000

Right of use asset		2,821,000			–				2,821,000
Property, plant and equipment, net		1,627,000			–				1,627,000
Other assets		89,000			–				89,000

Total assets	$	38,027,000		$	(1,493,000	)		$	36,534,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	9,239,000		$	–			$	9,239,000
Accrued expenses		2,233,000			–				2,233,000
Line of credit		3,500,000			–				3,500,000
Deferred revenue		140,000			–				140,000
Office leases payable, current portion		469,000			–				469,000
Accrued interest		3,000			–				3,000
Total current liabilities		15,584,000			–				15,584,000

Long term liabilities:
Office leases payable, less current portion		2,621,000			–				2,621,000

Total liabilities		18,205,000			–				18,205,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,987,502 shares issued and outstanding		16,000			–				16,000
Additional paid-in capital		95,217,000			–				95,217,000
Accumulated deficit ^{(a) (d)}		(75,411,000	)		(1,493,000	)	(a) (d)		(76,904,000	)
Total stockholders’ equity		19,822,000			(1,493,000	)			18,329,000
Total liabilities and stockholders’ equity	$	38,027,000		$	(1,493,000	)		$	36,534,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	September 30, 2021
	As previously reported			Restatement adjustments			Reference	As restated
ASSETS

Current assets:
Cash	$	15,737,000		$	–			$	15,737,000
Accounts receivable		4,511,000			-				4,511,000
Inventories, net ^(a)(d)		13,846,000			(1,191,000	)	(a) (d)		12,655,000
Other current assets		1,026,000			-				1,026,000
Total current assets		35,120,000			(1,191,000	)			33,929,000

Right of use asset		2,929,000			–				2,929,000
Property, plant and equipment, net		1,471,000			–				1,471,000
Other assets		89,000			–				89,000

Total assets	$	39,609,000		$	(1,191,000	)		$	38,418,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	9,298,000		$	–			$	9,298,000
Accrued expenses		1,908,000			–				1,908,000
Deferred revenue		127,000			–				127,000
Customer deposits		322,000			–				322,000
Office leases payable, current portion		452,000			–				452,000
Accrued interest		3,000			–				3,000
Total current liabilities		12,110,000			–				12,110,000

Long term liabilities:
Office leases payable, less current portion		2,745,000			–				2,745,000

Total liabilities		14,855,000			–				14,855,000

Stockholders’ equity:
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		-			-				-
Preferred stock value		-			-				-
Common stock, $0.001 par value; 30,000,000 shares authorized; 15,987,502 shares issued and outstanding		16,000			–				16,000
Common stock value		16,000			–				16,000
Additional paid-in capital		95,073,000			–				95,073,000
Accumulated deficit		(70,335,000	)		(1,191,000	)	(a) (d)		(71,526,000	)
Total stockholders’ equity		24,754,000			(1,191,000	)			23,563,000
Total liabilities and stockholders’ equity	$	39,609,000		$	(1,191,000	)		$	38,418,000

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Fiscal year 2024
	March 31, 2024						December 31, 2023						September 30, 2023
	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Restated			Restated			Restated			Restated			Restated
Revenues	$	14,457,000		$	47,447,000		$	18,203,000		$	32,990,000		$	14,787,000
Cost of sales		10,432,000			33,806,000			12,822,000			23,374,000			10,552,000

Gross profit		4,025,000			13,641,000			5,381,000			9,616,000			4,235,000

Operating expenses:
Selling and administrative		5,311,000			14,629,000			4,593,000			9,318,000			4,725,000
Research and development		1,286,000			3,816,000			1,235,000			2,530,000			1,295,000
Total operating expenses		6,597,000			18,445,000			5,828,000			11,848,000			6,020,000

Operating loss		(2,572,000	)		(4,804,000	)		(447,000	)		(2,232,000	)		(1,785,000	)

Other income (expense):
Other income
Interest income (expense), net		(433,000	)		(1,285,000	)		(449,000	)		(852,000	)		(403,000	)

Net loss	$	(3,005,000	)	$	(6,089,000	)	$	(896,000	)	$	(3,084,000	)	$	(2,188,000	)

Net loss per share - basic and diluted	$	(0.18	)	$	(0.37	)	$	(0.06	)	$	(0.19	)	$	(0.13	)

Weighted average number of common shares outstanding - basic and diluted		16,538,998			16,510,046			16,516,700			16,495,727			16,474,754

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Fiscal year 2023
	March 31, 2023						December 31, 2022						September 30, 2022
	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Restated			Restated			Restated			Restated			Restated
Revenues	$	15,087,000		$	50,085,000		$	17,158,000		$	34,998,000		$	17,840,000
Cost of sales		10,410,000			37,796,000			13,165,000			27,386,000			14,221,000

Gross profit		4,677,000			12,289,000			3,993,000			7,612,000			3,619,000

Operating expenses:
Selling and administrative		4,724,000			13,510,000			4,250,000			8,786,000			4,536,000
Research and development		1,182,000			3,359,000			1,162,000			2,177,000			1,015,000
Total operating expenses		5,906,000			16,869,000			5,412,000			10,963,000			5,551,000

Operating loss		(1,229,000	)		(4,580,000	)		(1,419,000	)		(3,351,000	)		(1,932,000	)

Other income (expense):
Other income		–			8,000			8,000			8,000			–
Interest income (expense), net		(258,000	)		(971,000	)		(385,000	)		(713,000	)		(328,000	)

Net loss	$	(1,487,000	)	$	(5,543,000	)	$	(1,796,000	)	$	(4,056,000	)	$	(2,260,000	)

Net loss per share - basic and diluted	$	(0.10	)	$	(0.35	)	$	(0.11	)	$	(0.25	)	$	(0.14	)

Weighted average number of common shares outstanding - basic and diluted		16,048,054			16,021,653			16,020,183			16,008,740			15,997,296

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Fiscal year 2022
	March 31, 2022						December 31, 2021						September 30, 2021
	Three months ended			Nine months ended			Three months ended			Six months ended			Three months ended
	Restated			Restated			Restated			Restated			Restated
Revenues	$	13,177,000		$	27,138,000		$	7,690,000		$	13,961,000		$	6,271,000
Cost of sales		11,576,000			24,245,000			7,503,000			12,669,000			5,166,000

Gross profit		1,601,000			2,893,000			187,000			1,292,000			1,105,000

Operating expenses:
Selling and administrative		3,904,000			11,402,000			4,000,000			7,498,000			3,498,000
Research and development		1,538,000			5,040,000			1,535,000			3,502,000			1,967,000
Total operating expenses		5,442,000			16,442,000			5,535,000			11,000,000			5,465,000

Operating loss		(3,841,000	)		(13,549,000	)		(5,348,000	)		(9,708,000	)		(4,360,000	)

Other income (expense):
Interest income (expense), net		(52,000	)		(86,000	)		(31,000	)		(34,000	)		(3,000	)

Net loss	$	(3,893,000	)	$	(13,635,000	)	$	(5,379,000	)	$	(9,742,000	)	$	(4,363,000	)

Net loss per share - basic and diluted	$	(0.24	)	$	(0.89	)	$	(0.33	)	$	(0.65	)	$	(0.32	)

Weighted average number of common shares outstanding - basic and diluted		15,988,926			15,254,983			15,987,502			14,895,989			13,804,475

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended March 31, 2024
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	14,457,000		$	–			$	14,457,000
Cost of sales ^(a)(e)		10,067,000			365,000		(a) (e)		10,432,000

Gross profit		4,390,000			(365,000	)			4,025,000

Operating expenses:
Selling and administrative		5,311,000			–				5,311,000
Research and development		1,286,000			–				1,286,000
Total operating expenses		6,597,000			–				6,597,000

Operating loss		(2,207,000	)		(365,000	)			(2,572,000	)

Other income (expense):
Interest income (expense), net		(433,000	)		–				(433,000	)

Net loss	$	(2,640,000	)	$	(365,000	)		$	(3,005,000	)

Net loss per share - basic and diluted	$	(0.16	)	$	(0.02	)		$	(0.18	)

Weighted average number of common shares outstanding - basic and diluted		16,538,998			16,538,998				16,538,998

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended December 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues ^(b)	$	18,344,000		$	(141,000	)	(b)	$	18,203,000
Cost of sales ^(a)(c)(d)(e)		12,676,000			146,000		(a) (c) (d) (e)		12,822,000

Gross profit		5,668,000			(287,000	)			5,381,000

Operating expenses:
Selling and administrative		4,593,000			–				4,593,000
Research and development ^(c)		1,440,000			(205,000	)	(c)		1,235,000
Total operating expenses		6,033,000			(205,000	)			5,828,000

Operating loss		(365,000	)		(82,000	)			(447,000	)

Other income (expense):
Interest income (expense), net		(449,000	)		–				(449,000	)

Net loss	$	(814,000	)	$	(82,000	)		$	(896,000	)

Net loss per share - basic and diluted	$	(0.05	)	$	(0.01	)		$	(0.06	)

Weighted average number of common shares outstanding - basic and diluted		16,516,700			16,516,700				16,516,700

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues^(b)	$	14,797,000		$	(10,000	)	(b)	$	14,787,000
Cost of sales^(a)		10,486,000			66,000		(a)		10,552,000

Gross profit		4,311,000			(76,000	)			4,235,000

Operating expenses:
Selling and administrative		4,725,000			–				4,725,000
Research and development		1,295,000			–				1,295,000
Total operating expenses		6,020,000			–				6,020,000

Operating loss		(1,709,000	)		(76,000	)			(1,785,000	)

Other income (expense):
Interest income (expense), net		(403,000	)		–				(403,000	)

Net loss	$	(2,112,000	)	$	(76,000	)		$	(2,188,000	)

Net loss per share - basic and diluted	$	(0.13	)	$	(0.00	)		$	(0.13	)

Weighted average number of common shares outstanding - basic and diluted		16,474,754			16,474,754				16,474,754

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended March 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	15,087,000		$	–			$	15,087,000
Cost of sales^(a)(d)		10,368,000			42,000		(a) (d)		10,410,000

Gross profit		4,719,000			(42,000	)			4,677,000

Operating expenses:
Selling and administrative		4,724,000			–				4,724,000
Research and development		1,182,000			–				1,182,000
Total operating expenses		5,906,000			–				5,906,000

Operating loss		(1,187,000	)		(42,000	)			(1,229,000	)

Other income (expense):
Interest income (expense), net		(258,000	)		–				(258,000	)

Net loss	$	(1,445,000	)	$	(42,000	)		$	(1,487,000	)

Net loss per share - basic and diluted	$	(0.09	)	$	(0.01	)		$	(0.10	)

Weighted average number of common shares outstanding - basic and diluted		16,048,054			16,048,054				16,048,054

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended December 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	17,158,000		$	–			$	17,158,000
Cost of sales ^(a)(d)		13,050,000			115,000		(a) (d)		13,165,000

Gross profit		4,108,000			(115,000	)			3,993,000

Operating expenses:
Selling and administrative		4,250,000			–				4,250,000
Research and development		1,162,000			–				1,162,000
Total operating expenses		5,412,000			–				5,412,000

Operating loss		(1,304,000	)		(115,000	)			(1,419,000	)

Other income (expense):
Other income		8,000			–				8,000
Interest income (expense), net		(385,000	)		–				(385,000	)

Net loss	$	(1,681,000	)	$	(115,000	)		$	(1,796,000	)

Net loss per share - basic and diluted	$	(0.10	)	$	(0.01	)		$	(0.11	)

Weighted average number of common shares outstanding - basic and diluted		16,020,183			16,020,183				16,020,183

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	17,840,000		$	–			$	17,840,000
Cost of sales ^(a)(c)(d)		13,892,000			329,000		(a) (c) (d)		14,221,000

Gross profit		3,948,000			(329,000	)			3,619,000

Operating expenses:
Selling and administrative		4,536,000			–				4,536,000
Research and development ^(c)		1,223,000			(208,000	)	(c)		1,015,000
Total operating expenses		5,759,000			(208,000	)			5,551,000

Operating loss		(1,811,000	)		(121,000	)			(1,932,000	)

Other income (expense):
Interest income (expense), net		(328,000	)		–				(328,000	)

Net loss	$	(2,139,000	)	$	(121,000	)		$	(2,260,000	)

Net loss per share - basic and diluted	$	(0.13	)	$	(0.01	)		$	(0.14	)

Weighted average number of common shares outstanding - basic and diluted		15,997,296			15,997,296				15,997,296

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended March 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	13,177,000		$	–			$	13,177,000
Cost of sales ^(a)(c)(d)		11,257,000			319,000		(a) (c) (d)		11,576,000

Gross profit		1,920,000			(319,000	)			1,601,000

Operating expenses:
Selling and administrative		3,904,000			–				3,904,000
Research and development ^(c)		1,713,000			(175,000	)	(c)		1,538,000
Total operating expenses		5,617,000			(175,000	)			5,442,000

Operating loss		(3,697,000	)		(144,000	)			(3,841,000	)

Other income (expense):
Interest income (expense), net		(52,000	)		–				(52,000	)

Net loss	$	(3,749,000	)	$	(144,000	)		$	(3,893,000	)

Net loss per share - basic and diluted	$	(0.23	)	$	(0.01	)		$	(0.24	)

Weighted average number of common shares outstanding - basic and diluted		15,988,926			15,988,926				15,988,926

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended December 31, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	7,690,000		$	–			$	7,690,000
Cost of sales ^(a)(c)(d)		6,648,000			855,000		(a) (c) (d)		7,503,000

Gross profit		1,042,000			(855,000	)			187,000

Operating expenses:
Selling and administrative		4,000,000			–				4,000,000
Research and development ^(c)		2,088,000			(553,000	)	(c)		1,535,000
Total operating expenses		6,088,000			(553,000	)			5,535,000

Operating loss		(5,046,000	)		(302,000	)			(5,348,000	)

Other income (expense):
Interest income (expense), net		(31,000	)		–				(31,000	)

Net loss	$	(5,077,000	)	$	(302,000	)		$	(5,379,000	)

Net loss per share - basic and diluted	$	(0.32	)	$	(0.01	)		$	(0.33	)

Weighted average number of common shares outstanding - basic and diluted		15,987,502			15,987,502				15,987,502

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	6,271,000		$	–			$	6,271,000
Cost of sales ^(a)(d)		4,933,000			233,000		(a) (d)		5,166,000

Gross profit		1,338,000			(233,000	)			1,105,000

Operating expenses:
Selling and administrative		3,498,000			–				3,498,000
Research and development		1,967,000			–				1,967,000
Total operating expenses		5,465,000			–				5,465,000

Operating loss		(4,127,000	)		(233,000	)			(4,360,000	)

Other income (expense):
Interest income (expense), net		(3,000	)		–				(3,000	)

Net loss	$	(4,130,000	)	$	(233,000	)		$	(4,363,000	)

Net loss per share - basic and diluted	$	(0.30	)	$	(0.02	)		$	(0.32	)

Weighted average number of common shares outstanding - basic and diluted		13,804,475			13,804,475				13,804,475

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues ^(b)	$	33,141,000		$	(151,000	)	(b)	$	32,990,000
Cost of sales ^(a)(c)(d)(e)		23,162,000			212,000		(a) (c) (d) (e)		23,374,000

Gross profit		9,979,000			(363,000	)			9,616,000

Operating expenses:
Selling and administrative		9,318,000			–				9,318,000
Research and development ^(c)		2,735,000			(205,000	)	(c)		2,530,000
Total operating expenses		12,053,000			(205,000	)			11,848,000

Operating loss		(2,074,000	)		(158,000	)			(2,232,000	)

Other income (expense):
Interest income (expense), net		(852,000	)		–				(852,000	)

Net loss	$	(2,926,000	)	$	(158,000	)		$	(3,084,000	)

Net loss per share - basic and diluted	$	(0.18	)	$	(0.01	)		$	(0.19	)

Weighted average number of common shares outstanding - basic and diluted		16,495,727			16,495,727				16,495,727

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	34,998,000		$	–			$	34,998,000
Cost of sales ^(a)(c)(d)		26,942,000			444,000		(a) (c) (d)		27,386,000

Gross profit		8,056,000			(444,000	)			7,612,000

Operating expenses:
Selling and administrative		8,786,000			–				8,786,000
Research and development ^(c)		2,385,000			(208,000	)	(c)		2,177,000
Total operating expenses		11,171,000			(208,000	)			10,963,000

Operating loss		(3,115,000	)		(236,000	)			(3,351,000	)

Other income (expense):
Other income		8,000			–				8,000
Interest income (expense), net		(713,000	)		–				(713,000	)

Net loss	$	(3,820,000	)	$	(236,000	)		$	(4,056,000	)

Net loss per share - basic and diluted	$	(0.24	)	$	(0.01	)		$	(0.25	)

Weighted average number of common shares outstanding - basic and diluted		16,008,740			16,008,740				16,008,740

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	13,961,000		$	–			$	13,961,000
Cost of sales ^(a)(c)(d)		11,581,000			1,088,000		(a) (c) (d)		12,669,000

Gross profit		2,380,000			(1,088,000	)			1,292,000

Operating expenses:
Selling and administrative		7,498,000			–				7,498,000
Research and development ^(c)		4,055,000			(553,000	)	(c)		3,502,000
Total operating expenses		11,553,000			(553,000	)			11,000,000

Operating loss		(9,173,000	)		(535,000	)			(9,708,000	)

Other income (expense):
Interest income (expense), net		(34,000	)		–				(34,000	)

Net loss	$	(9,207,000	)	$	(535,000	)		$	(9,742,000	)

Net loss per share - basic and diluted	$	(0.62	)	$	(0.03	)		$	(0.65	)

Weighted average number of common shares outstanding - basic and diluted		14,895,989			14,895,989				14,895,989

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2024
	As previously reported			Restatement adjustments			Reference	As restated
Revenues ^(b)	$	47,598,000		$	(151,000	)	(b)	$	47,447,000
Cost of sales ^(a)(c)(d)(e)		33,229,000			577,000		(a) (c) (d) (e)		33,806,000

Gross profit		14,369,000			(728,000	)			13,641,000

Operating expenses:
Selling and administrative		14,629,000			–				14,629,000
Research and development ^(c)		4,021,000			(205,000	)	(c)		3,816,000
Total operating expenses		18,650,000			(205,000	)			18,445,000

Operating loss		(4,281,000	)		(523,000	)			(4,804,000	)

Other income (expense):
Interest income (expense), net		(1,285,000	)		–				(1,285,000	)

Net loss	$	(5,566,000	)	$	(523,000	)		$	(6,089,000	)

Net loss per share - basic and diluted	$	(0.34	)	$	(0.03	)		$	(0.37	)

Weighted average number of common shares outstanding - basic and diluted		16,510,046			16,510,046				16,510,046

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	50,085,000		$	–			$	50,085,000
Cost of sales ^(a)(c)(d)		37,310,000			486,000		(a) (c) (d)		37,796,000

Gross profit		12,775,000			(486,000	)			12,289,000

Operating expenses:
Selling and administrative		13,510,000			–				13,510,000
Research and development ^(c)		3,567,000			(208,000	)	(c)		3,359,000
Total operating expenses		17,077,000			(208,000	)			16,869,000

Operating loss		(4,302,000	)		(278,000	)			(4,580,000	)

Other income (expense):
Other income		8,000			–				8,000
Interest income (expense), net		(971,000	)		–				(971,000	)

Net loss	$	(5,265,000	)	$	(278,000	)		$	(5,543,000	)

Net loss per share - basic and diluted	$	(0.33	)	$	(0.02	)		$	(0.35	)

Weighted average number of common shares outstanding - basic and diluted		16,021,653			16,021,653				16,021,653

FLUX POWER HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Revenues	$	27,138,000		$	–			$	27,138,000
Cost of sales ^(a)(c)(d)		22,838,000			1,407,000		(a) (c) (d)		24,245,000

Gross profit		4,300,000			(1,407,000	)			2,893,000

Operating expenses:
Selling and administrative		11,402,000			–				11,402,000
Research and development ^(c)		5,768,000			(728,000	)	(c)		5,040,000
Total operating expenses		17,170,000			(728,000	)			16,442,000

Operating loss		(12,870,000	)		(679,000	)			(13,549,000	)

Other income (expense):
Interest income (expense), net		(86,000	)		–				(86,000	)

Net loss	$	(12,956,000	)	$	(679,000	)		$	(13,635,000	)

Net loss per share - basic and diluted	$	(0.85	)	$	(0.04	)		$	(0.89	)

Weighted average number of common shares outstanding - basic and diluted		15,254,983			15,254,983				15,254,983

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

		Shares		Capital Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
		Common Stock
	Reference	Shares		Capital Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
Balance, as restated, June 30, 2023			16,462,215	$	16,000	$	98,086,000	$	(91,379,000	)	$	6,723,000
Activity, as reported			16,022		–		276,000		(2,112,000	)		(1,836,000	)
Adjustments ^{(a) (b)}	(a) (b)		–		–		–		(76,000	)		(76,000	)
Balance, as restated, September 30, 2023			16,478,237		16,000		98,362,000		(93,567,000	)		4,811,000

Activity, as reported			54,038		1,000		485,000		(814,000	)		(328,000	)
Adjustments ^(a)(b)(d)(e)	(a) (b) (d) (e)		–		–		–		(82,000	)		(82,000	)
Balance, as restated, December 31, 2023			16,532,275		17,000		98,847,000		(94,463,000	)		4,401,000

Activity, as reported			67,408		–		673,000		(2,640,000	)		(1,967,000	)
Adjustments ^{(a) (e)}	(a) (e)		–		–		–		(365,000	)		(365,000	)
Balance, as restated, March 31, 2024			16,599,683	$	17,000	$	99,520,000	$	(97,468,000	)	$	2,069,000

		Common Stock
	Reference	Shares		Capital Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
Balance, as restated, June 30, 2022			15,996,658	$	16,000	$	95,732,000	$	(83,636,000	)	$	12,112,000
Activity, as reported			1,678		–		95,000		(2,139,000	)		(2,044,000	)
Adjustments ^(a) (d)	(a) (d)		–		–		–		(121,000	)		(121,000	)
Balance, as restated, September 30, 2022			15,998,336		16,000		95,827,000		(85,896,000	)		9,947,000

Activity, as reported			31,142		–		209,000		(1,681,000	)		(1,472,000	)
Adjustments ^(a) (d)	(a) (d)		–		–		–		(115,000	)		(115,000	)
Balance, as restated, December 31, 2022			16,029,478		16,000		96,036,000		(87,692,000	)		8,360,000

Activity, as reported			126,954		–		932,000		(1,445,000	)		(513,000	)
Adjustments ^(a) (d)	(a) (d)		–		–		–		(42,000	)		(42,000	)
Balance, as restated, March 31, 2023			16,156,432	$	16,000	$	96,968,000	$	(89,179,000	)	$	7,805,000

		Common Stock
	Reference	Shares		Capital Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total
Balance, as restated, June 30, 2021*			13,652,164	$	14,000	$	79,197,000	$	(67,163,000	)	$	12,048,000
Activity, as reported			2,335,338		2,000		15,876,000		(4,130,000	)		11,748,000
Adjustments ^(a) (d)	(a) (d)		–		–		–		(233,000	)		(233,000	)
Balance, as restated, September 30, 2021			15,987,502		16,000		95,073,000		(71,526,000	)		23,563,000

Activity, as reported			–		–		144,000		(5,077,000	)		(4,933,000	)
Adjustments ^{(a) (d)}	(a) (d)		–		–		–		(302,000	)		(302,000	)
Balance, as restated, December 31, 2021			15,987,502		16,000		95,217,000		(76,905,000	)		18,328,000

Activity, as reported			4,578		–		152,000		(3,749,000	)		(3,597,000	)
Adjustments ^{(a) (d)}	(a) (d)		–		–		–		(144,000	)		(144,000	)
Balance, as restated, March 31, 2022			15,992,080	$	16,000	$	95,369,000	$	(80,798,000	)	$	14,587,000

*	June 30, 2021 total shareholders’ equity, as restated, reflects the impact of restatement adjustments related to periods prior to the year ended June 30, 2022. The impact of restatement is a decrease of $958,000 to accumulated deficit at June 30, 2021.

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended March 31, 2024			Six months ended December 31, 2023			Three months ended September 30, 2023
	Fiscal Year 2024
	Nine months ended March 31, 2024			Six months ended December 31, 2023			Three months ended September 30, 2023
	Restated			Restated			Restated
Cash flows from operating activities:
Net loss	$	(6,089,000	)	$	(3,084,000	)	$	(2,188,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		787,000			523,000			261,000
Stock-based compensation		1,233,000			670,000			276,000
Amortization of debt issuance costs		161,000			134,000			81,000
Non-cash lease expense		448,000			296,000			146,000
Inventory write downs		358,000			233,000			113,000
Changes in operating assets and liabilities:
Accounts receivable		(1,668,000	)		(3,926,000	)		(2,040,000	)
Inventories		(1,562,000	)		371,000			(546,000	)
Other assets		11,000			(65,000	)		(215,000	)
Accounts payable		1,522,000			489,000			330,000
Accrued expenses		719,000			169,000			601,000
Accrued interest		134,000			128,000			100,000
Office leases payable		(476,000	)		(312,000	)		(152,000	)
Deferred revenue		212,000			179,000			205,000
Customer deposits		(64,000	)		150,000			(65,000	)
Net cash used in operating activities		(4,274,000	)		(4,045,000	)		(3,093,000	)

Cash flows from investing activities:
Purchases of equipment		(588,000	)		(338,000	)		(181,000	)
Proceeds from sale of fixed assets
Net cash used in investing activities		(588,000	)		(338,000	)		(181,000	)

Cash flows from financing activities:
Proceeds from stock option exercises and employee stock purchase plan exercises		110,000			–			–
Proceeds from the issuance of common stock in registered direct offering, net of offering costs
Proceeds from the issuance of common stock in public offering, net of offering costs
Proceeds from revolving line of credit		52,820,000			35,868,000			18,055,000
Payment of revolving line of credit		(49,087,000	)		(32,205,000	)		(15,981,000	)
Payment of finance leases		(110,000	)		(75,000	)		(40,000	)
Net cash provided by financing activities		3,733,000			3,588,000			2,034,000

Net change in cash		(1,129,000	)		(795,000	)		(1,240,000	)
Cash, beginning of period		2,379,000			2,379,000			2,379,000

Cash, end of period	$	1,250,000		$	1,584,000		$	1,139,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	222,000		$	183,000		$	–
Warrants issued in connection with borrowing agreements, recorded as debt issuance cost	$	92,000		$	92,000		$	–

Supplemental cash flow information:
Interest paid	$	1,000,000		$	605,000		$	223,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended March 31, 2023			Six months ended December 31, 2022			Three months ended September 30, 2022
	Fiscal Year 2023
	Nine months ended March 31, 2023			Six months ended December 31, 2022			Three months ended September 30, 2022
	Restated			Restated			Restated
Cash flows from operating activities:
Net loss	$	(5,543,000	)	$	(4,056,000	)	$	(2,260,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		647,000			371,000			172,000
Stock-based compensation		539,000			304,000			95,000
Amortization of debt issuance costs		445,000			368,000			229,000
Non-cash lease expense		370,000			236,000			117,000
Inventory write downs		191,000			88,000			43,000
Changes in operating assets and liabilities:
Accounts receivable		(1,272,000	)		(1,898,000	)		(2,987,000	)
Inventories		(4,610,000	)		(3,097,000	)		(2,538,000	)
Other assets		11,000			(17,000	)		(229,000	)
Accounts payable		4,210,000			6,192,000			6,860,000
Accrued expenses		395,000			89,000			9,000
Accrued interest		2,000			–			1,000
Office leases payable		(379,000	)		(244,000	)		(120,000	)
Deferred revenue		(163,000	)		(82,000	)		184,000
Customer deposits		(40,000	)		(146,000	)		(165,000	)
Net cash used in operating activities		(5,197,000	)		(1,892,000	)		(589,000	)

Cash flows from investing activities:
Purchases of equipment		(753,000	)		(344,000	)		(352,000	)
Proceeds from sale of fixed assets		8,000			8,000			–
Net cash used in investing activities		(745,000	)		(336,000	)		(352,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in public offering, net of offering costs		697,000			–			–
Proceeds from revolving line of credit		48,800,000			30,550,000			12,900,000
Payment of revolving line of credit		(43,198,000	)		(28,628,000	)		(12,138,000	)
Payment of finance leases		(52,000	)		(22,000	)		–
Net cash provided by financing activities		6,247,000			1,900,000			762,000

Net change in cash		305,000			(328,000	)		(179,000	)
Cash, beginning of period		485,000			485,000			485,000

Cash, end of period	$	790,000		$	157,000		$	306,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Initial right of use asset recognition	$	855,000		$	258,000		$	78,000
Common stock issued for vested RSUs	$	114,000		$	114,000		$	5,000

Supplemental cash flow information:
Interest paid	$	524,000		$	288,000		$	99,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended March 31, 2022			Six months ended December 31, 2021			Three months ended September 30, 2021
	Fiscal Year 2022
	Nine months ended March 31, 2022			Six months ended December 31, 2021			Three months ended September 30, 2021
	Restated			Restated			Restated
Cash flows from operating activities:
Net loss	$	(13,635,000	)	$	(9,742,000	)	$	(4,363,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		412,000			259,000			123,000
Stock-based compensation		601,000			449,000			200,000
Noncash lease expense		324,000			214,000			106,000
Inventory write downs		482,000			351,000			110,000
Changes in operating assets and liabilities:
Accounts receivable		(3,411,000	)		913,000			1,586,000
Inventories		(10,224,000	)		(8,886,000	)		(3,210,000	)
Other assets		(118,000	)		(408,000	)		(567,000	)
Accounts payable		6,186,000			2,064,000			2,123,000
Accrued expenses		(441,000	)		(350,000	)		(675,000	)
Accrued interest		–			1,000			1,000
Office leases payable		(322,000	)		(211,000	)		(104,000	)
Deferred revenue		289,000			116,000			103,000
Customer deposits		519,000			(171,000	)		151,000
Net cash used in operating activities		(19,338,000	)		(15,401,000	)		(4,416,000	)

Cash flows from investing activities:
Purchases of equipment		(644,000	)		(530,000	)		(238,000	)
Net cash used in investing activities		(644,000	)		(530,000	)		(238,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs		13,971,000			13,971,000			14,076,000
Proceeds from the issuance of common stock in public offering, net of offering costs		1,602,000			1,602,000			1,602,000
Proceeds from revolving line of credit		3,500,000			3,500,000			–
Net cash provided by financing activities		19,073,000			19,073,000			15,678,000

Net change in cash		(909,000	)		3,142,000			11,024,000
Cash, beginning of period		4,713,000			4,713,000			4,713,000

Cash, end of period	$	3,804,000		$	7,855,000		$	15,737,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	9,700		$	–		$	–

Supplemental cash flow information:
Interest paid	$	86,000		$	33,000		$	2,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2024
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss ^(a)(b)(d)(e)	$	(5,566,000	)	$	(523,000	)	(a) (b) (d) (e)	$	(6,089,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		787,000			–				787,000
Stock-based compensation		1,233,000			–				1,233,000
Fair value of warrants issued as debt discount cost		92,000			(92,000	)	(f)		0
Amortization of debt issuance costs		161,000			–				161,000
Non-cash lease expense		448,000			–				448,000
Inventory write downs^(a)		13,000			345,000		(a)		358,000
Changes in operating assets and liabilities:
Accounts receivable ^(b)		(1,755,000	)		87,000		(b)		(1,668,000	)
Inventories^(a)(d)		(1,191,000	)		(371,000	)	(a) (d)		(1,562,000	)
Other assets		(81,000	)		92,000		(f)		11,000
Accounts payable^(b)(d)(e)		1,315,000			207,000		(b) (d) (e)		1,522,000
Accrued expenses^(e)		464,000			255,000		(e)		719,000
Accrued interest		134,000			–				134,000
Office leases payable		(476,000	)		–				(476,000	)
Deferred revenue		212,000			–				212,000
Customer deposits		(64,000	)		–				(64,000	)
Net cash used in operating activities		(4,274,000	)		–				(4,274,000	)

Cash flows from investing activities:
Purchases of equipment		(588,000	)		–				(588,000	)
Net cash used in investing activities		(588,000	)		–				(588,000	)

Cash flows from financing activities:
Proceeds from stock option exercises and employee stock purchase plan exercises		110,000			–				110,000
Proceeds from revolving line of credit		52,820,000			–				52,820,000
Payment of revolving line of credit		(49,087,000	)		–				(49,087,000	)
Payment of finance leases		(110,000	)		–				(110,000	)
Net cash provided by financing activities		3,733,000			–				3,733,000

Net change in cash		(1,129,000	)		–				(1,129,000	)
Cash, beginning of period		2,379,000			–				2,379,000

Cash, end of period	$	1,250,000		$	–			$	1,250,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	222,000		$	–			$	222,000
Warrants issued in connection with borrowing agreements, recorded as debt issuance cost	$	–		$	92,000		(f)	$	92,000

Supplemental cash flow information:
Interest paid	$	1,000,000		$	–			$	1,000,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(b)(d)(e)	$	(2,926,000	)	$	(158,000	)	(a) (b) (d) (e)	$	(3,084,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		523,000			(92,000	)	(f)		523,000
Stock-based compensation		670,000			–				670,000
Fair value of warrants issued as debt discount cost^(f)		92,000			(92,000	)	(f)		–
Amortization of debt issuance costs		134,000			–				134,000
Non-cash lease expense		296,000			–				296,000
Inventory write downs^(a)		(2,000	)		235,000		(a)		233,000
Changes in operating assets and liabilities:
Accounts receivable ^(b)		(3,930,000	)		4,000		(b)		(3,926,000	)
Inventories^(a)(d)		715,000			(344,000	)	(a) (d)		371,000
Other assets^(f)		(157,000	)		92,000		(f)		(65,000	)
Accounts payable^(b)(d)(e)		286,000			203,000		(b) (d) (e)		489,000
Accrued expenses^(e)		109,000			60,000		(e)		169,000
Accrued interest		128,000			–				128,000
Office leases payable		(312,000	)		–				(312,000	)
Deferred revenue		179,000			–				179,000
Customer deposits		150,000			–				150,000
Net cash used in operating activities		(4,045,000	)		–				(4,045,000	)

Cash flows from investing activities:
Purchases of equipment		(338,000	)		–				(338,000	)
Net cash used in investing activities		(338,000	)		–				(338,000	)

Cash flows from financing activities:
Proceeds from revolving line of credit		35,868,000			–				35,868,000
Payment of revolving line of credit		(32,205,000	)		–				(32,205,000	)
Payment of finance leases		(75,000	)		–				(75,000	)
Net cash provided by financing activities		3,588,000			–				3,588,000

Net change in cash		(795,000	)		–				(795,000	)
Cash, beginning of period		2,379,000			–				2,379,000

Cash, end of period	$	1,584,000		$	–			$	1,584,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	183,000		$	–			$	183,000
Warrants issued in connection with borrowing agreements, recorded as debt issuance cost ^(f)	$	-		$	92,000		(f)	$	92,000

Supplemental cash flow information:
Interest paid	$	605,000		$	–			$	605,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(b)	$	(2,112,000	)	$	(76,000	)	(a) (b)	$	(2,188,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		261,000			–				261,000
Stock-based compensation		276,000			–				276,000
Amortization of debt issuance costs		81,000			–				81,000
Non-cash lease expense		146,000			–				146,000
Inventory write downs^(a)		(3,000	)		116,000		(a)		113,000
Changes in operating assets and liabilities:
Accounts receivable ^(b)		(2,050,000	)		10,000		(b)		(2,040,000	)
Inventories^(a)		(496,000	)		(50,000	)	(a)		(546,000	)
Other assets		(215,000	)		–				(215,000	)
Accounts payable		330,000			–				330,000
Accrued expenses		601,000			–				601,000
Accrued interest		100,000			–				100,000
Office leases payable		(152,000	)		–				(152,000	)
Deferred revenue		205,000			–				205,000
Customer deposits		(65,000	)		–				(65,000	)
Net cash used in operating activities		(3,093,000	)		–				(3,093,000	)

Cash flows from investing activities:
Purchases of equipment		(181,000	)		–				(181,000	)
Net cash used in investing activities		(181,000	)		–				(181,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs
Proceeds from revolving line of credit		18,055,000			–				18,055,000
Payment of revolving line of credit		(15,981,000	)		–				(15,981,000	)
Payment of finance leases		(40,000	)		–				(40,000	)
Net cash provided by financing activities		2,034,000			–				2,034,000

Net change in cash		(1,240,000	)		–				(1,240,000	)
Cash, beginning of period		2,379,000			–				2,379,000

Cash, end of period	$	1,139,000		$	–			$	1,139,000

Supplemental cash flow information:
Interest paid	$	223,000		$	–			$	223,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2023
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(5,265,000	)	$	(278,000	)	(a) (d)	$	(5,543,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		647,000			–				647,000
Stock-based compensation		539,000			–				539,000
Amortization of debt issuance costs		445,000			–				445,000
Non-cash lease expense		370,000			–				370,000
Inventory write downs^(a)		214,000			(23,000	)	(a)		191,000
Changes in operating assets and liabilities:					–
Accounts receivable ^(b)		(1,244,000	)		(28,000	)	(b)		(1,272,000	)
Inventories^(a)(d)		(4,911,000	)		301,000		(a) (d)		(4,610,000	)
Other assets		11,000			–				11,000
Accounts payable ^(b)		4,182,000			28,000		(b)		4,210,000
Accrued expenses		395,000			–				395,000
Accrued interest		2,000			–				2,000
Office leases payable		(379,000	)		–				(379,000	)
Deferred revenue		(163,000	)		–				(163,000	)
Customer deposits		(40,000	)		–				(40,000	)
Net cash used in operating activities		(5,197,000	)		–				(5,197,000	)

Cash flows from investing activities:
Purchases of equipment		(753,000	)		–				(753,000	)
Proceeds from sale of fixed assets		8,000			–				8,000
Net cash used in investing activities		(745,000	)		–				(745,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in public offering, net of offering costs		697,000			–				697,000
Proceeds from revolving line of credit		48,800,000			–				48,800,000
Payment of revolving line of credit		(43,198,000	)		–				(43,198,000	)
Payment of finance leases		(52,000	)		–				(52,000	)
Net cash provided by financing activities		6,247,000			–				6,247,000

Net change in cash		305,000			–				305,000
Cash, beginning of period		485,000			–				485,000

Cash, end of period	$	790,000		$	–			$	790,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Initial right of use asset recognition	$	855,000		$	–			$	855,000
Common stock issued for vested RSUs	$	114,000		$	–			$	114,000

Supplemental cash flow information:
Interest paid	$	524,000		$	–			$	524,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(3,820,000	)	$	(236,000	)	(a) (d)	$	(4,056,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		371,000			–				371,000
Stock-based compensation		304,000			–				304,000
Amortization of debt issuance costs		368,000			–				368,000
Non-cash lease expense		236,000			–				236,000
Inventory write downs^(a)		135,000			(47,000	)	(a)		88,000
Changes in operating assets and liabilities:
Accounts receivable ^(b)		(1,858,000	)		(40,000	)	(b)		(1,898,000	)
Inventories^(a)(d)		(3,380,000	)		283,000		(a) (d)		(3,097,000	)
Other assets		(17,000	)		–				(17,000	)
Accounts payable ^(b)		6,152,000			40,000		(b)		6,192,000
Accrued expenses		89,000			–				89,000
Office leases payable		(244,000	)		–				(244,000	)
Deferred revenue		(82,000	)		–				(82,000	)
Customer deposits		(146,000	)		–				(146,000	)
Net cash used in operating activities		(1,892,000	)		–				(1,892,000	)

Cash flows from investing activities:
Purchases of equipment		(344,000	)		–				(344,000	)
Proceeds from sale of fixed assets		8,000			–				8,000
Net cash used in investing activities		(336,000	)		–				(336,000	)

Cash flows from financing activities:
Proceeds from revolving line of credit		30,550,000			–				30,550,000
Payment of revolving line of credit		(28,628,000	)		–				(28,628,000	)
Payment of finance leases		(22,000	)		–				(22,000	)
Net cash provided by financing activities		1,900,000			–				1,900,000

Net change in cash		(328,000	)		–				(328,000	)
Cash, beginning of period		485,000			–				485,000

Cash, end of period	$	157,000		$	–			$	157,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Initial right of use asset recognition	$	258,000		$	–			$	258,000
Common stock issued for vested RSUs	$	114,000		$	–			$	114,000

Supplemental cash flow information:
Interest paid	$	288,000		$	–			$	288,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(2,139,000	)	$	(121,000	)	(a) (d)	$	(2,260,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		172,000			–				172,000
Stock-based compensation		95,000			–				95,000
Amortization of debt issuance costs		229,000			–				229,000
Non-cash lease expense		117,000			–				117,000
Inventory write downs^(a)		25,000			18,000		(a)		43,000
Changes in operating assets and liabilities:
Accounts receivable		(2,987,000	)		–				(2,987,000	)
Inventories^(a)(d)		(2,641,000	)		103,000		(a) (d)		(2,538,000	)
Other assets		(229,000	)		–				(229,000	)
Accounts payable		6,860,000			–				6,860,000
Accrued expenses		9,000			–				9,000
Accrued interest		1,000			–				1,000
Office leases payable		(120,000	)		–				(120,000	)
Deferred revenue		184,000			–				184,000
Customer deposits		(165,000	)		–				(165,000	)
Net cash used in operating activities		(589,000	)		–				(589,000	)

Cash flows from investing activities:
Purchases of equipment		(352,000	)		–				(352,000	)
Net cash used in investing activities		(352,000	)		–				(352,000	)

Cash flows from financing activities:
Proceeds from revolving line of credit		12,900,000			–				12,900,000
Payment of revolving line of credit		(12,138,000	)		–				(12,138,000	)
Net cash provided by financing activities		762,000			–				762,000

Net change in cash		(179,000	)		–				(179,000	)
Cash, beginning of period		485,000			–				485,000

Cash, end of period	$	306,000		$	–			$	306,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Initial right of use asset recognition	$	78,000		$	–			$	78,000
Common stock issued for vested RSUs	$	5,000		$	–			$	5,000

Supplemental cash flow information:
Interest paid	$	99,000		$	–			$	99,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Nine months ended March 31, 2022
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(12,956,000	)	$	(679,000	)	(a) (d)	$	(13,635,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		412,000			–				412,000
Stock-based compensation		601,000			–				601,000
Non-cash lease expense		324,000			–				324,000
Inventory write downs^(a)		109,000			373,000		(a)		482,000
Changes in operating assets and liabilities:
Accounts receivable		(3,411,000	)		–				(3,411,000	)
Inventories^(a)(d)		(10,530,000	)		306,000		(a) (d)		(10,224,000	)
Other assets		(118,000	)		–				(118,000	)
Accounts payable		6,186,000			–				6,186,000
Accrued expenses		(441,000	)		–				(441,000	)
Office leases payable		(322,000	)		–				(322,000	)
Deferred revenue		289,000			–				289,000
Customer deposits		519,000			–				519,000
Net cash used in operating activities		(19,338,000	)		–				(19,338,000	)

Cash flows from investing activities:
Purchases of equipment		(644,000	)		–				(644,000	)
Net cash used in investing activities		(644,000	)		–				(644,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs		13,971,000			–				13,971,000
Proceeds from the issuance of common stock in public offering, net of offering costs		1,602,000			–				1,602,000
Proceeds from revolving line of credit		3,500,000			–				3,500,000
Net cash provided by financing activities		19,073,000			–				19,073,000

Net change in cash		(909,000	)		–				(909,000	)
Cash, beginning of period		4,713,000			–				4,713,000

Cash, end of period	$	3,804,000		$	–			$	3,804,000

Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Common stock issued for vested RSUs	$	9,700		$	–			$	9,700

Supplemental cash flow information:
Interest paid	$	86,000		$	–			$	86,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Six months ended December 31, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(9,207,000	)	$	(535,000	)	(a) (d)	$	(9,742,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		259,000			–				259,000
Stock-based compensation		449,000			–				449,000
Non-cash lease expense		214,000			–				214,000
Inventory write downs^(a)		169,000			182,000		(a)		351,000
Changes in operating assets and liabilities:
Accounts receivable		913,000			–				913,000
Inventories^(a)(d)		(9,239,000	)		353,000		(a) (d)		(8,886,000	)
Other assets		(408,000	)		–				(408,000	)
Accounts payable		2,064,000			–				2,064,000
Accrued expenses		(350,000	)		–				(350,000	)
Accrued interest		1,000			–				1,000
Office leases payable		(211,000	)		–				(211,000	)
Deferred revenue		116,000			–				116,000
Customer deposits		(171,000	)		–				(171,000	)
Net cash used in operating activities		(15,401,000	)		–				(15,401,000	)

Cash flows from investing activities:
Purchases of equipment		(530,000	)		–				(530,000	)
Net cash used in investing activities		(530,000	)		–				(530,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs		13,971,000							13,971,000
Proceeds from the issuance of common stock in public offering, net of offering costs		1,602,000			–				1,602,000
Proceeds from revolving line of credit		3,500,000			–				3,500,000
Net cash provided by financing activities		19,073,000			–				19,073,000

Net change in cash		3,142,000			–				3,142,000
Cash, beginning of period		4,713,000			–				4,713,000

Cash, end of period	$	7,855,000		$	–			$	7,855,000

Supplemental cash flow information:
Interest paid	$	33,000		$	–			$	33,000

FLUX POWER HOLDING, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	As previously reported			Restatement adjustments			Reference	As restated
	Three months ended September 30, 2021
	As previously reported			Restatement adjustments			Reference	As restated
Cash flows from operating activities:
Net loss^(a)(d)	$	(4,130,000	)	$	(233,000	)	(a) (d)	$	(4,363,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		123,000			–				123,000
Stock-based compensation		200,000			–				200,000
Non-cash lease expense		106,000			–				106,000
Inventory write downs^(a)		24,000			86,000		(a)		110,000
Changes in operating assets and liabilities:
Accounts receivable		1,586,000			–				1,586,000
Inventories^(a)(d)		(3,357,000	)		147,000		(a) (d)		(3,210,000	)
Other assets		(567,000	)		–				(567,000	)
Accounts payable		2,123,000			–				2,123,000
Accrued expenses		(675,000	)		–				(675,000	)
Accrued interest		1,000			–				1,000
Office leases payable		(104,000	)		–				(104,000	)
Deferred revenue		103,000			–				103,000
Customer deposits		151,000			–				151,000
Net cash used in operating activities		(4,416,000	)		–				(4,416,000	)

Cash flows from investing activities:
Purchases of equipment		(238,000	)		–				(238,000	)
Net cash used in investing activities		(238,000	)		–				(238,000	)

Cash flows from financing activities:
Proceeds from the issuance of common stock in registered direct offering, net of offering costs		14,076,000			–				14,076,000
Proceeds from the issuance of common stock in public offering, net of offering costs		1,602,000			–				1,602,000
Net cash provided by financing activities		15,678,000			–				15,678,000

Net change in cash		11,024,000			–				11,024,000
Cash, beginning of period		4,713,000			–				4,713,000

Cash, end of period	$	15,737,000		$	–			$	15,737,000

Supplemental cash flow information:
Interest paid	$	2,000		$	–			$	2,000