July 8, 2016
Flux – Powering Your Every Move
Greetings Flux Power stakeholders,
As the summer kicks in, I thought I would take this moment to update you on the progress we are making at Flux Power.
The sales team and I have been on the road meeting with members of our national battery and forklift ecosystem including distributors, dealers and end-users as we completed our fiscal year 2016 and enter fiscal 2017 beginning July 1, 2016.
Everyone we meet with shares our enthusiasm for our newly launched UL 2271 Listed LiFT Pack line for walkie pallet jacks. The financial and performance benefits of this cutting edge technology are clear and our lithium packs are also a great way to support ‘green’ technology.
These are some of the reasons Flux is securing repeat orders from large enterprise customers including some of the most vocal supporters of the lithium revolution that is beginning to sweep the motive power industry.
Our core group of customers has always included global beverage producers, national grocers and those involved in the food service arena among others, and we’re excited that another leading beverage bottler has recently signed up to start piloting our packs.
Our Flux LiFT Pack – with UL Mark proudly displayed – is no ordinary ‘black box’ and far from it! The UL stamp is an unmistakable sign of the safety and durability features we have built into our packs.
With this unparalleled product line, Flux is making good progress toward our production goal of 100 packs per month by the end of the summer. A wide array of systems and processes must be established and put in place to support an efficient ramp in our production. This takes time but is critical to our growth plans and trajectory. From the 100 pack per month goal, we look to further ramp production to 200 units per month by calendar year-end 2016.
The good news is that demand seems very solidly established – including an order backlog of over 100 units. The downside is that there are not short cuts to ramping production – so we are moving that process as quickly as possible to meet our production goals.
From Warehouses …. to Airports
Concurrent with our LiFT Pack progress, the airline industry is also getting an initial taste of the future of motive power as Flux completes our first pilot of a lithium-ion ‘Airport Pack’ storage solution that powers aviation ground support equipment.
The first pilot program with a leading national airline at Los Angeles International Airport (LAX) has been progressing very well over the first two months, and there is less than a month left in this initial pilot. LAX is also expected to be the site of a second Airport Pack pilot program with another national carrier.
In keeping with the industry norm, we chose white as the color for this pack. It’s not the look but the performance of our packs that really stands out when compared with the incumbent power source: lead-acid storage. Airports and airlines stand to benefit from the very same improvements in charging, performance and lifespan that lead to substantial cost savings and improved efficiency.
The Airport market offers a substantial new opportunity for Flux with a base price of approximately $20,000 and an estimated 10,000 pieces of equipment that could use this better performing technology.
In Summary – Bringing Better Power to the People
Flux is focused on the multi-billion dollar opportunity to bring our lithium technology to industrial applications that are currently mired in decades-old lead acid technology (and we haven’t yet mentioned safety or the environmental benefits.)
Currently, as you can see, our efforts are centered on material handling vehicle applications such as forklifts. Our fundamental value proposition is combining our technical and design expertise along with our battery management system software and circuitry and other proprietary technology, to develop lithium cells that deliver better performance at a lower total cost.
Part of the challenge is to fit the specifications of each piece of equipment. The current Flux LiFT Pack line in use today is very modular and scalable. It’s that technology platform that we find particularly exciting about the future for Flux.
Our core system can be tailored to a number of sectors in the industrial equipment market – a market that is just starting to awaken to the benefits of a new age of power.
Thank you for your support and interest; please help us spread the word that “the lithium is coming!”
Have a great summer!
Flux Power CEO