Flux Power Holdings, Inc. (Nasdaq: FLUX) has entered into Amendment No. 7 to its Loan and Security Agreement with Gibraltar Business Capital, LLC (GBC). The agreement was executed on September 17, 2026, and modifies the terms of the original agreement dated July 28, 2023.
Under the Seventh Amendment, Flux Power is required to complete a sale of equity interests generating net proceeds of at least $4.0 million within 50 days of the effective date. Additionally, the company must provide GBC with specific projections, budgets, and compliance reports regarding its operations. The filing notes that significant deviations from these budgets will constitute an immediate event of default.
The amendment also includes a provision to amend the company's EBITDA minimum financial covenant within 90 days of the effective date. Despite these changes, the company remains in default under the original Loan and Security Agreement.
Gibraltar Business Capital has permitted the Company to continue accessing its revolving credit facility. However, GBC has reserved the right to discontinue this access, terminate its commitments, and declare all obligations immediately due and payable at any time while the default persists.
In exchange for the amendment, Flux Power agreed to pay a non-refundable amendment fee of $135,000 in cash. The payment schedule breaks down as follows: $45,000 on September 17, 2026; $45,000 on October 17, 2026; and the final $45,000 on November 16, 2026.
