U.S.-based lithium-ion storage solutions provider Flux Power Holdings recorded $13.2 million in revenue in the third quarter (Q3) of the fiscal year 2022, an increase of 89% from $7 million in the same period last year. The company said that the increase in revenue was mainly due to a rise in sales volumes and models with higher selling prices.

Flux Power reported a gross profit of $1.9 million in Q3, a year-over-year (YoY) surge of 12%. The company’s gross margin was impacted by the increase in steel, electronic parts, and common off-the-shelf equipment costs and fell to 14.6% compared to 24.1% in Q3 2021.

In March, the company introduced three new products — the L36 lithium-ion battery pack with a 36-volt option for three-wheel forklifts; the C48 lithium-ion battery pack for automated guided vehicles and autonomous mobile robots; and the S24 lithium-ion battery pack with twice the capacity of 210Ah for Walkie Pallet Jacks for heavy-duty applications.

Selling and administration expenses amounted to $3.9 million, a 3% rise from $3.1 million in the same period last year. The increase in outbound shipping rates combined with new hirings, temporary labor expenses, and increased insurance premiums contributed to the increase in expenses.

The company noted that it is identifying more competitive carriers to reduce shipping costs and utilizing lower-cost steel suppliers that meet required specifications to improve profitability and strategize supply chain management. It increased inventory to $20.9 million as of March 31, 2022, to mitigate the impact of supply chain disruptions and support timely deliveries. Flux also secured a $5 million credit facility with a $4 million signed commitment.

Flux Power reported a net loss of $3.7 million in Q3 2022, up 12% from $1.7 million in Q3 2021. The company said that the loss was due to the higher operating expenses of $6 million in Q3 against $5 million in the same period last year.

Flux Power had recorded revenue of $7.7 million in the second quarter, a 19% YoY surge from $6.5 million in Q2 2021.

In October 2021, Flux Power announced the closing of its registered direct offering. Under NASDAQ rules, it was priced at the market to sell 2,142,860 shares of its common stocks and warrants to purchase up to an aggregate of 1,071,430 shares of common stock at $7/share.