Stays in default; lender requires $4M equity raise within 50 days

What did Flux Power Holdings, Inc. announce?

Flux Power amended its Gibraltar credit agreement to require a $4.0 million equity raise within 50 days, while remaining in default and with the lender reserving rights to accelerate all obligations.

Key details

• Company remains in default under the Loan and Security Agreement; GBC did not waive the Specified Default and can terminate commitments, declare all obligations immediately due, charge default-rate interest or take action against collateral at any time.
• Failure to complete a sale of equity interests yielding at least $4.0 million of net proceeds within 50 days of September 17, 2026 is an immediate Event of Default with no cure or grace period.
• New weekly reporting regime: 13-week budget within 15 days, weekly budget compliance reports and weekly equity-raise status updates; sales or cash receipts below 80% of budget, or cash disbursements above 110%, is itself an immediate Event of Default.
• Amendment fee of $135,000 payable in three $45,000 installments (September 17, October 17 and November 16, 2026); the minimum EBITDA covenant is to be re-set within 90 days.

Why it matters

This 8-K reports financial distress at Flux Power Holdings, Inc.. The likely share-price reaction reads as negative.

More from Flux Power Holdings, Inc.

• 8-K

  Sep 11, 2026
  Chief Operating Officer Jeff Mason resigns

All Flux Power Holdings, Inc. SEC filings →