Flux Power is Bringing State of the Art Lithium Battery Technology to Large Untapped Industrial Markets:
Forklifts, Tug & Tow Vehicles & Portable Power for In-the-Field Use.
While Fuel Cells by PLUG, FCEL, BLDP & HYGS Garner Headlines and Trading Frenzy – Flux LiFT Packs offer a much lower cost, easier to implement forklift solution versus incumbent lead-acid storage.
Flux has created innovative lithium-ion batteries that deliver more storage and longer lifespan at a better price. Flux’s design transcends the traditional lead-acid battery and adapts to the modern era with a safer and more cost effective product.
Flux has scaled battery technology initially developed to power smartphones and tablets up to industrial applications like forklifts and other vehicles. Flux offers a far superior power source that performs much better, lasts far longer and is substantially more cost effective.
Flux Investment Thesis:
- Strong industry interest/validation
- Tested by major dealers such as Toyota Materials Handling, global leader in forklifts
- Growing base of distributor & dealer interest in 18 states
- Working to expand approvals to additional top OEMS
- Substantial interest & sales potential in large markets such as beverage makers, food & grocery chains, etc
- Partnerships with:
- HDT Global – portable packs for military/emergency response
- Wesley International – electric tow vehicles
- Penguin Automated – large robots for underground mining / civil construction
- Proven leadership – CEO /acting CFO Ron Dutt
- 30-year career senior management/financial executive experienced with growth and leading through transitions at DHL, Ford, Visa, Directed Electronics, Fritz Co.’s, SOLA Int’l
- Ron Dutt LinkedIn Profile
- Substantial Market Opportunities
The slide below is from Flux’s investor presentation (6/19/14). It illustrates the scope of some of Flux’s targeted markets. Provided Flux can develop industry acceptance, it’s ability to scale its business is both open ended and based on already proven and patented technology.
Initiating Sales Ramp for New Products
Flux is developing clear sales momentum for its new product lines launched earlier in the year. We expect that this trend can accelerate as Flux “gets through” the far longer dialogues and testing that are part of entering new markets and developing a reputation and track record.
The first three quarters of FY ‘2014 (ended June 30) were focused on launching and demonstrating Flux’s LiFT Pack forklift solutions, with initial sales really starting in Q4 ’14. The uptick in sales during Q2 ’14 related to a specialty portable power solution utilizing solar panels and storage for military field applications.
Flux Lithium-Ion Technology Offers Array of Advantages
- More power than lead-acid
- Higher operating power throughout discharge – performance starts high and stays high
- Lasts 25% longer between recharges
- Useful life up to 6x longer
- Light weight – easy to maneuver
- Advanced technology & design, salable assembly, proven performance
- Proprietary Flux Battery Management Systems (BMS)
- Patented, state-of-the-art technology
- Climatic adaptability – preforms in cold, wet, dry, humid and ever-changing climates & conditions
- Customization – can be adapted to customers needs
- Less expensive and easier to deploy than fuel cell technology
Targeting Large, Untapped Markets
While there a wide variety of attractive market opportunities for larger lithium-ion storage solutions, Flux is targeting three primary markets, but is focusing the bulk of its efforts on motive power and portable power.
- Industrial Motive Power – Lithium packs for lead-acid replacement & new applications:
- Lift Equipment (forklifts) starting with Class III Lifts “Walkies” via Flux LiFT packs – once Flux has solidified the Class III opportunity, it plans to scale-up its solutions for larger, higher priced Class 1 & 2 lifts.
- Tug & pull equipment
- Robotics for mining & civil construction – initial prototype delivered
- Portable power – Quiet, clean, reliable power source that replaces generators/fuel for:
- Military field operations
- On-location entertainment production
- Events & other remote applications
- Stationary Power – Solar and Wind Farm Storage for Utilities
- Longer-term opportunities
- Pursuing partnerships with grid integrators
Disclosures: The parent of CG Focus List, Catalyst Global LLC, is an investor relations consultancy based in New York City. Catalyst Global was formed by an investor relations professional with over 25 years of experience serving micro-, small- and midcap public companies. Flux Power Holdings, Inc. is a client of Catalyst Global and receives over 75% of its IR retainer compensation in the form of restricted Flux common stock that vests over a one year period. Coverage of Flux Power reflects CG Focus List/Catalyst’s belief that Flux Power offers a very attractive special situation investment opportunity based on the deployment of proprietary lithium-ion storage technologies within industrial markets that have been mired in a century-old technology with myriad flaws. The preparation of this CG Focus List report is outside the IR relationship between Catalyst Global and Flux but is intended to help expand awareness of the Flux story. Neither CG Focus list nor Catalyst Global have received compensation of any kind for the preparation and distribution of this Alert. Flux management was not involved in the preparation or review of this report.
CG Focus List and/or its affiliate Catalyst Global owns approximately 0.8% of Flux’s outstanding common stock (the shares are not registered) pursuant to IR retainer compensation and through our participation in a private placement in March 2014. CG Focus / Catalyst have a long term investment horizon (1-5 years) for their Flux investment and have no plans to sell any Flux stock for at least the next six months (we do have to pay our bills periodically and they generally request cash!). Further, the founder of Catalyst Global is the tallest son of Timothy Collins, Sr., Chairman of Flux Power Holdings. Tim Collins introduced us to Flux’s CEO last fall and later became Chairman in spring 2014. We are very willing to answer questions on the status of our relationship and ownership for anyone who asks, as we completely understand there may be questions or concerns. Rest assured that our integrity, ethics and adherence to disclosure standards are the bedrock of who we are and what we do each day, no matter the near term financial consequences. It’s the way it should be everywhere – but alas it is not.
Authors: Our amazing intern this summer, Kate Keller, along with Catalyst Global staffers Chris Eddy & Eric Lentini