Flux Power Holdings, Inc.
Climate Impact & Sustainability Data (2020, 2023-06-30 to 2024-03-31)
Reporting Period: 2020
Environmental Metrics
Climate Goals & Targets
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023-06-30 to 2024-03-31
Environmental Metrics
ESG Focus Areas
- Sustainability
- Environmental
Environmental Achievements
- Lithium-ion battery packs reduce CO2 emissions and help improve sustainability and ESG metrics for fleets.
Climate Goals & Targets
Environmental Challenges
- Improper accounting for inventory resulting in an overstatement of inventory, current assets, total assets and accumulated deficit on its balance sheet, and an understatement of cost of sales and net loss, and overstatement of gross profit on its statement of operations.
- Material weakness in the Company’s disclosure controls and procedures and the Company’s internal control over financial reporting due to insufficient personnel resources with technical accounting expertise.
Mitigation Strategies
- Engaged an external financial consultant with extensive technical accounting expertise.
- Strengthened internal financial expertise by hiring a new Chief Financial Officer.
- Strengthening internal processes and procedures over inventory management and reporting.
- Updating processes and controls around inventory obsolescence, the timing of its internal inventory audits and implementation of other measures.
- Engaged an external financial consultant to assist with the analysis of prior periods, along with an independent law firm to conduct an internal review of the events and activities leading to errors in the financial statements.