Flux Power Rejects Unsolicited Proposal from Solidion Technology, Inc.

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Solidion Proposal is Not in the Best Interests of Flux Shareholders

VISTA, Calif., Oct. 02, 2026 (GLOBE NEWSWIRE) -- Flux Power Holdings, Inc. (NASDAQ: FLUX) (“Flux Power” or the “Company”), a leading developer of advanced lithium-ion energy storage solutions and fleet intelligence technology, today announced that its Board of Directors (the “Board”) has unanimously rejected the unsolicited, non-binding acquisition proposal (the “Proposal”) announced by Solidion Technology, Inc. (NASDAQ: STI) (“Solidion”) on September 30, 2026.

We can appreciate why there is interest by Solidion in acquiring the Company. However, after a comprehensive review, conducted in consultation with its legal advisors, the Board concluded that the Proposal substantially undervalues Flux Power and is not in the best interests of the Company and its shareholders.

Flux Power’s management team is focused on executing its strategy to reposition the Company toward a path to profitability, supported by several factors:

  • Transforming the business: With the new management team, Flux Power has implemented extensive changes expected to benefit the Company in FY 2027 and beyond. It has lowered product and operating costs and improved operating efficiencies, significantly enhanced its supply chain to improve margins, refreshed its sales leadership team, expanded OEM relationships, and launched aggressive new marketing programs aimed at diversifying its customer base.
  • Early momentum: In the 2026 fiscal fourth quarter, the Company reduced operating expenses by 33% over the 2025 fiscal fourth quarter; achieved certification with a new major OEM, increasing its addressable market within electric material handling; and made a significant platform leap with the launch of AI-driven SkyEMSÂŽ 3.0, further positioning Flux Power as a differentiated technology provider.
  • New avenues for growth: Flux Power has developed – and is currently executing – a strategy to leverage its S series as an anchor product to approach new OEMs and dealership networks by providing unique white label solutions for their use cases, offering new avenues for accelerated, predictable growth. As announced in the 2026 fiscal fourth quarter, Flux Power has entered a new vertical, Robotics, in collaboration with a large global technology company, with clear visibility into potential future demand.
  • Growing market demand: As macroeconomic headwinds ease, Flux Power expects to capitalize on growing pent-up demand for its products. The Company believes lithium-ion will become the dominant battery technology in the coming years as Flux Power continues to build a scalable framework to capture this potentially significant market opportunity.

With a leaner cost structure and headcount and refreshed leadership team, Flux Power believes it is well positioned to deliver renewed growth and accelerate its path toward profitability as economic conditions improve. In addition, the Board is currently evaluating potential financing paths and strategic partnerships to ensure the Company has the financial flexibility necessary to continue executing its operating strategy.

About Flux Power
Flux Power (NASDAQ: FLUX) designs, manufactures, and sells advanced lithium-ion energy storage solutions for electrification of a range of industrial and commercial sectors including material handling and airport ground support equipment (GSE). Flux Power’s lithium-ion battery packs, including the proprietary battery management system (BMS) and telemetry, provide customers with a better performing, lower cost of ownership, and more environmentally friendly alternative, in many instances, to traditional lead acid and propane-based solutions. Lithium-ion battery packs reduce CO2 emissions and help improve sustainability and ESG metrics for fleets. For more information, please visit www.fluxpower.com.

Forward Looking Statements

This release contains "forward-looking statements" relating to Flux Power’s business, that are often identified using "believes," "expects" or similar expressions. Forward-looking statements include, but are not limited to, statements regarding the expected benefits of Flux Power’s changes to its operations, the future dominance of lithium-ion battery technology and the resulting market opportunity, Flux Power’s growth, addressable market and profitability expectations and Flux Power’s ability to capitalize on pent-up market demand. Forward-looking statements involve several estimates, assumptions, risks, and other uncertainties that may cause actual results to be materially different from those anticipated, believed, estimated, expected, etc. Accordingly, forward-looking statements are not guarantees of future results. Some of the important factors that could cause Flux Power’s actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: Flux Power’s ability to amend the terms of its agreement with Gibraltar Business Capital, LLC and Flux Power’s continued access to its credit facility thereunder; Flux Power’s ability to secure sufficient funding to support its current and proposed operations; Flux Power’s ability to continue as a going concern; Flux Power’s ability to meet projected revenue targets and generate sufficient cash from operations; Flux Power’s ability to regain compliance with and continue to meet the continued listing standards of the Nasdaq Stock Market; the impact of tariffs on Flux Power’s ability to cost-effectively source battery packs and materials used in its products; Flux Power’s ability to obtain raw materials and other supplies for its products at existing or competitive prices and on a timely basis; Flux Power’s anticipated growth strategies and its ability to manage the expansion of its business operations effectively; Flux Power’s ability to maintain or increase its market share in the competitive markets in which it does business; Flux Power’s ability to grow its revenue, increase its gross profit margin and become a profitable business; Flux Power’s ability to fulfill its backlog of open sales orders due to delays in the receipt of key component parts and other potential manufacturing disruptions; Flux Power’s ability to keep up with rapidly changing technologies and evolving industry standards, including its ability to achieve technological advances; Flux Power’s dependence on the growth in demand for its products; Flux Power’s ability to compete with both peers and larger companies with far greater resources than it; Flux Power’s ability to reduce production costs of its product line through new designs, manufacturing and supply arrangements; Flux Power’s ability to shift to new suppliers and incorporate new components into its products in a manner that is not disruptive to its business; Flux Power’s ability to obtain and maintain UL Listings and OEM approvals for its energy storage solutions; Flux Power’s ability to diversify its product offerings and capture new market opportunities; Flux Power’s ability to source its needs for skilled labor, machinery, parts, and raw materials economically; Flux Power’s ability to retain and/or successfully recruit key members of its senior management team; Flux Power’s ability to diversify its customer base to reduce its current dependence on a few major customers; and the expense, timing and outcome of legal proceedings relating to Flux Power’s accounting practices, financial disclosures and employment policies and practices, investigations and information requests that may be initiated or that may be asserted. Actual results could differ from those projected due to numerous factors and uncertainties. Although Flux Power believes that the expectations, opinions, projections, and comments reflected in these forward-looking statements are reasonable, it can give no assurance that such statements will prove to be correct, and that Flux Power’s actual results of ‎operations, financial condition and performance will not differ materially from the ‎results of operations, financial condition and performance reflected or implied by these forward-‎looking statements. Undue reliance should not be placed on the forward-looking statements and investors should refer to the risk factors outlined in Flux Power’s Form 10-K, 10-Qs and other reports filed with the SEC and available at www.sec.gov/edgar. These forward-looking statements are made as of the date of this release, and Flux Power assumes no obligation to update these statements or the reasons why actual results could differ from those projected, except as required by applicable law.

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