Flux Power Holdings, Inc. — financial distress indicators
Financial-health summary
Flux Power Holdings, Inc.'s reported numbers place it in the 'Weak' financial-health band (distress score 57/100). The main indicators are market-implied default probability >20%, losses in each of the last 3 years and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 98% and the market-implied (Merton) default probability is 52.0%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Merton distance-to-default -0.05 σ → PD 52%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -93% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
O-score 3.73 → model probability 98%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Last price $0.46.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
📰 Recent news scan
- Flux Power Rejects Unsolicited Proposal from Solidion Technology, Inc.Yahoo Finance · 2026-10-02
- Solidion Technology Chairman and CEO Jaymes Winters Justifies Below Market Acquisition Price for Flux Power, Inc. (Nasdaq: FLUX)Yahoo Finance · 2026-09-30
- Solidion Technology Issues Open Letter to Flux Power Inc. (NASDAQ: FLUX) ShareholdersYahoo Finance · 2026-09-30
- Flux Power Holdings Inc (FLUX) (Q4 2026) Earnings Call Highlights: Strategic Pivots and New ...Yahoo Finance · 2026-08-21
- Flux Power Holdings, Inc. (FLUX) Reports Q4 Loss, Tops Revenue EstimatesYahoo Finance · 2026-08-20
- Plug Power vs. Flux Power: Which Clean Energy Stock Should You Bet On?Yahoo Finance · 2026-06-29
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Flux Power Holdings, Inc.'s financial-health indicators show?
As of 2026-10-08, Flux Power Holdings, Inc.'s public financial data places it in the 'Weak' band with a distress score of 57/100, driven by market-implied default probability >20%, losses in each of the last 3 years and operations consume cash. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Flux Power Holdings, Inc.'s financial distress score?
57/100 ('Weak'). Ohlson O-score 3.73 (model 1-year failure probability 98%). Merton distance-to-default -0.05 σ (model default probability 52.0%).
What works in Flux Power Holdings, Inc.'s favour?
Operating cash flow is positive over the latest 12 months.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.