Flux Power Holdings, Inc. Segments Disclosure
NOTE 13 – SEGMENT INFORMATION
The Company has one business activity and derives its revenue from the design, development, manufacturing, and sale of a portfolio of advanced lithium-ion energy storage solutions for electrification of a range of industrial commercial sectors which include material handling, airport ground support equipment (“GSE”), and stationary energy storage. Accordingly, the Company operates as a single operating and reporting segment. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. The CODM reviews financial information including operating results and assets on a consolidated basis.
When evaluating the Company’s financial performance and making strategic decisions, the CODM uses net income (loss) and Adjusted EBITDA to assess performance and allocate financial, capital and personnel resources. Net income (loss) and Adjusted EBITDA are used in the annual operating plan and forecasting process as well as ongoing decisions driven by the monthly or quarterly reviews of the plan versus actual results.
The table below is a summary of the segment profit or loss, including significant segment expenses, for the periods presented:
| Year ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | $ | 66,434,000 | $ | 60,824,000 | ||||
| Less: | ||||||||
| Cost of sales | 44,694,000 | 43,591,000 | ||||||
| General and administrative | 18,337,000 | 15,669,000 | ||||||
| Selling and marketing | 2,965,000 | 2,218,000 | ||||||
| Research and development | 4,464,000 | 4,916,000 | ||||||
| Depreciation | 1,002,000 | 1,045,000 | ||||||
| Interest | 1,646,000 | 1,718,000 | ||||||
| Net loss | $ | (6,674,000 | ) | $ | (8,333,000 | ) | ||
Assets provided to the CODM are consistent with those reported on the consolidated balance sheets. All long-lived assets are held in the United States, and revenues and net losses are solely generated from operations in the United States.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.