Flux Power Holdings, a U.S.-based lithium-ion storage solutions provider, recorded a net loss of $2.13 million, a 48% year-over-year (YoY) decline in the first quarter (Q1) of the fiscal year (FY) 2023.

The quarterly loss narrowed with increased sales volumes, especially from models with higher selling prices, including enhanced sales to existing and new customers.

The revenue for the quarter was $17.84 million, an 184% jump YoY.

The company’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) amounted to a loss of $1.54 million, compared with $3.8 million YoY.

Gross profit for Q1FY23 jumped by 195% to $3.8 million, mainly driven by both installed and new customers.

“Our emphasis on building strong partnerships with our existing customers has enhanced our order volume, with nearly 90% of revenue during the quarter contributed from customers with whom we have had long-term relationships,” said Ron Dutt, CEO of Flux Power

Flux also progressed new product designs to lower costs, simplify the bill of materials, and improve manufacturability and serviceability. It also increased its inventory 3.6 times during the quarter.

Ongoing efforts to fulfill timely shipment of orders reduced the company’s backlog to $26.9 million as of September 30, 2022, down from $35 million in the prior quarter. Flux increased its raw materials and parts inventory to $18.9 million as of September 30, 2022, to mitigate supply chain disruptions and support timely deliveries.

“This quarter saw gross profit increased 195% to $3.9 million and gross margin expand to 22% compared to $1.3 million, respectively, in the year-ago period. Growth was driven by both installed and new customers, while new order flow in the first quarter reflected uneven purchasing patterns. Progress with new accounts was substantial, adding two new customers in the new fiscal year, which have fleet potential and at least seven-figure revenue potential,” Dutt said.

The company had posted a net loss of $15.6 in FY 2022. The increase in losses resulted from higher operating expenses, partially offset by a rise in gross profit and a fall in interest expenses.

Last October, the company announced the closing of its registered direct offering. It was priced at the market under Nasdaq rules for selling 2,142,860 shares of its common stock and warrants to purchase up to an aggregate of 1,071,430 shares of common stock.