Flux Power Holdings, Inc. announced a new credit facility with Cleveland Capital L.P. and provided an update on its capital structure. The Company has taken the following recent actions to strengthen its capital structure: Secured a $15 million credit facility with Gibraltar Business Capital with a term to July 28, 2025, with no warrants, that can be expanded to $20 million. Entered into a new $2 million subordinated credit facility with Cleveland Capital, L.P. ("CCLP") which includes a duration to August 15, 2025.

Terminated an at-the-market offering program. The facility is secured by the existing assets of the Company, matures on July 28, 2025, and includes no warrants. The agreement allows the Company to increase the facility to $20.0 million at the Company's request subject to approval by GBC.

The Company has also chosen to work with Bank of America for cash management and other operational banking services. On November 2, 2023, the Company entered into a new $2.0 million Subordinated LOC agreement with CCLP with a duration to August 15, 2020, and cancelled the existing $5.0 million Subordinated location. Subject to the subordination provisions, the entire principal amount and all unpaid accrued interest shall be due and payable on August 15, 2025.

Interest shall accrue on each Advance at the Secured Overnight Financing Rate plus nine% per annum. The accrued but unpaid interest on the Advances, if any, shall be payable on the due date in cash. At-The-Market Offering - Terminated on October 5, 2023.

On December 21, 2020, the Company entered into a Sales Agreement with H.C. Wainwright & Co., LLC to sell shares of its common stock from time to time, through an ATM program. From December 21, 2020 through September 30, 2023, the Company sold an aggregate of 1,524,873 shares of common stock at an average price of $10.45 per share for gross proceeds of approximately $15.9 million under the ATM Offering. On October 5, 2023, the Company terminated the sales agreement with H.C. Wainswright & Co.