Flux Power Holdings, Inc. 8-K

What Happened
Flux Power Holdings, Inc. filed an 8-K on April 3, 2026 reporting that on March 31, 2026 it failed to meet the minimum EBITDA covenant for the trailing three months under its Loan and Security Agreement with Gibraltar Business Capital, LLC (GBC), resulting in an Event of Default. The loan agreement (originally dated July 28, 2023) had an outstanding balance of approximately $6.5 million as of March 31, 2026. The company is negotiating with GBC for an amendment or waiver.

Key Details

• Covenant breach date: trailing three-month period ended March 31, 2026; Event of Default determined March 31, 2026.
• Lender: Gibraltar Business Capital, LLC (GBC); Loan Agreement dated July 28, 2023 (as amended).
• Outstanding balance under the Loan Agreement: ~ $6.5 million (as of March 31, 2026).
• GBC is currently allowing continued access to the line of credit while negotiations continue but may limit access or declare obligations due and payable if it chooses.

Why It Matters
A loan covenant breach and resulting Event of Default can affect Flux Power’s liquidity and access to its credit line. If GBC demands immediate repayment or limits the credit line, the company could face cash pressure that may impact operations or financial flexibility. Flux Power says it is negotiating an amendment or waiver and has previously renegotiated the agreement, but the company also warns there is no assurance of a favorable outcome. Investors should monitor updates on the waiver/amendment negotiations and any changes to the company’s access to its line of credit.