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$FLUX - Flux Power Holdings - Tiny Player In Lithium Battery Replacement Market

|Includes: Flux Power Holdings, Inc. (FLUX)

Recently heard the story of Flux Power Holdings $FLUX a tiny ($2-3M market cap) "restart" in the lithium storage market. They are bringing to market lithium batteries as a replacement for lead acid batteries in the fork lift market - those you walk alongside and those you can drive. The cost of ownership of lithium is far lower than lead acid because of its life (5+ years) it's ability to hold a charge (longer operating duration), its absence of maintenance (watering and more regular charging) and safety (no acid).

The market they are targeting ships at least 60,000 new lifts per year, and they last five years on average, making for a total battery population of around 300,000, each of which last about 2 years at best. At over $2k per FLUX battery, the revenue potential approaches $600M - but the market has been doing fine thus far without them - so taking share is not a trivial exercise even with a better product.

Even at the higher cost, it is sort of no brainer when you crunch the numbers and consider the cost of staff time and efficiency. BUT - driving new thinking & technology into an established (industrial) market is not easy, and requires effective sales & marketing, plus partners & distribution channels.

But the attractive part is that the technology and the market opportunity exist - they have begun to show their batteries with initial interest - so it's not hard to believe they can sell some customers. But the scale they can sell is up to FLUX to demonstrate with numbers and clearly the balance sheet will need some reinforcement to get them where they want to go.

But at least it's got my attention.

And in full disclosure - my father is in the process of merging his company KleenSpeed into Flux and involved in the management of the company from the outside, so I clearly cannot be unbiased in my views - but I also have no reason to write anything here that might harm my reputation or credibility - particularly when it concerns a $0.05 stock!

Actually the whole reason I started to write something was to see if I could post on an OTCQB stock here - as the $FLUX symbol was not being found in any searches on SA.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I am an investor relations consultant; FLUX is not a client.