Flux Power Says It Identified $1.7M Of Excess And Obsolete Inventory; To Restate Previously Issued Financial Statements For FY23 And Interim Periods Of FY24
Portfolio Pulse from Benzinga Newsdesk
Flux Power has identified $1.7 million in excess and obsolete inventory, leading to a restatement of its financial statements for FY23 and interim periods of FY24. This inventory write-down is a non-cash charge and will not affect cash flow. The company may also include additional adjustments during its review. Flux Power's $16 million revolving credit facility with Gibraltar Business Capital remains available, subject to lending criteria.
September 05, 2024 | 8:03 pm
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Flux Power is restating its financial statements due to a $1.7M inventory write-down. This non-cash charge won't affect cash flow, but additional adjustments may occur. The $16M credit facility remains available.
The identification of $1.7M in excess and obsolete inventory necessitates a restatement of financials, which can negatively impact investor confidence. Although it's a non-cash charge, the potential for additional adjustments adds uncertainty. The availability of the $16M credit facility is a positive aspect, but the overall news is likely to be viewed negatively in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100