The 50-day deadline for a $4M+ equity raise is the critical binary catalyst. Failure to raise by early November 2026 triggers an immediate, non-curable default, likely leading to lender acceleration and potential foreclosure. Monitor for any 8-K announcing the equity raise or, absent that, a going-concern warning or restructuring filing.
Price Chart
Executive Summary
Flux Power entered Amendment No. 7 to its Loan and Security Agreement with Gibraltar Business Capital, acknowledging a continuing default. The amendment requires Flux to raise at least $4.0 million in net equity proceeds within 50 days, submit weekly budgets and compliance reports, and pay a $135,000 amendment fee. The lender retains full rights to demand immediate repayment or foreclose on collateral at any time, making this a distressed credit event that signals severe liquidity pressure.
Key Financial Metrics
Key Facts
- Flux Power remains in default under the Loan and Security Agreement; the Specified Default continues after the amendment.
- The company must complete a Specified Equity Raise of at least $4,000,000 net proceeds within 50 days (by November 6, 2026).
- Failure to raise the equity is an immediate Event of Default with no cure or grace period.
- A $135,000 non-refundable amendment fee is payable in three $45,000 installments due Sept 17, Oct 17, and Nov 16, 2026.
- Weekly budget compliance reports are required; material budget deviations (sales or cash receipts <80% of budget, or cash disbursements >110%) are immediate Events of Default.
- Lender may discontinue revolving credit access, declare all obligations due, and repossess collateral at any time.
- COO Jeff Mason resigned effective Sept 25, 2026, with no replacement named (filed 7 days prior).
Financial Impact
Mandatory equity raise of at least $4,000,000 net proceeds within 50 days; $135,000 amendment fee; lender retains right to accelerate all outstanding obligations and foreclose on collateral.
Risk Factors
- Inability to raise $4M+ net equity within 50 days triggers immediate default and potential lender foreclosure.
- Lender can terminate the revolving credit facility and demand full repayment at any time, creating acute liquidity risk.
- Weekly budget compliance with tight 80%/110% thresholds creates high probability of technical defaults.
- COO departure without replacement adds operational uncertainty during a critical restructuring period.
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-043365 |
| Document: form8-k.htm | 0001493152-26-043365 |
| Document: 0001493152-26-043365-index-headers.html | 0001493152-26-043365 |
| Document: 0001493152-26-043365-index.html | 0001493152-26-043365 |
| Document: 0001493152-26-043365.txt | 0001493152-26-043365 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 30, 2026 26d ago | Press Release | $0.4509 | awaiting T+60 | — | $0.4107 (+8.92%) |
Sep 18, 2026 5w ago | 8-K | $0.5408 | awaiting T+60 | — | $0.4107 (+24.06%) |
Sep 11, 2026 6w ago | 8-K | $0.5510 | awaiting T+60 | — | $0.4107 (−25.46%) |
Aug 20, 2026 9w ago | Press Release | $0.5989 | awaiting T+60 | — | $0.4107 (+31.42%) |
May 22, 2026 22w ago | S-1 | $1.05 $0.7098 | ▲ +32.40% | ▲ +35.12% | $0.4107 (+60.89%) |
May 18, 2026 23w ago | 8-K | $1.00 $0.5837 | ▲ +41.63% | ▲ +46.48% | $0.4107 (+58.93%) |
Apr 29, 2026 25w ago | Press Release | $1.17 $0.5906 | ▼ −49.52% | ▼ −53.63% | $0.4107 (−64.90%) |
Apr 3, 2026 29w ago | 8-K | $1.17 $0.9700 | ▲ +17.09% | ▲ +30.56% | $0.4107 (+64.90%) |
US Market Status
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