Item 1.01 Entry into a Material Definitive Agreement

On January 10, 2023, Flux Power, Inc. ("Flux"), a wholly-owned subsidiary of Flux Power Holdings, Inc. (the "Registrant" and together with Flux, the "Company"), and the Registrant entered into a Fourth Amendment to Loan and Security Agreement (the "Fourth Amendment") with Silicon Valley Bank ("SVB"), which amended certain terms of the Loan and Security Agreement dated November 9, 2020, as amended on October 29, 2021, as further amended on June 23, 2022, and as further amended on November 7, 2022 (together with the Fourth Amendment, the "Agreement"), including but not limited to, (i) increasing the amount of the revolving line of credit from $8.0 million to $14.0 million, (ii) removing the liquidity ratio financial covenant of the Company under Section 6.9 of the Agreement, (iii) amending the definition of Borrowing Base (as defined in the Fourth Amendment), which includes a new defined term for Net Orderly Liquidation Value (as defined in the Fourth Amendment), and (iv) removing certain defined liquidity terms under Section 13.1 of the Agreement.

Pursuant to the Fourth Amendment, the Registrant agreed to pay SVB a non-refundable amendment fee of Ten Thousand Dollars Dollars ($10,000.00) and SVB's legal fees and expenses incurred in connection with the Fourth Amendment.

The foregoing description of the Fourth Amendment does not purport to be a complete description of the terms and is qualified in its entirety by reference to the full text of the Fourth Amendment, which is attached hereto as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

The information disclosed in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

Item 7.01 Regulation FD Disclosure

On January 13, 2023, the Company issued a press release announcing the entry into the Fourth Amendment with SVB and the expansion of its credit facility with SVB from $8 million to $14 million. A copy of the press release is attached hereto as Exhibit 99.1, and is incorporated herein by reference.

The information reported under Item 7.01 in this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being "furnished" and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 ,as amended, or the Exchange Act, regardless of any general incorporation language in such filing. This Current Report on Form 8-K will not be deemed an admission as to the materiality of any information contained herein.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits



Exhibit   Exhibit Description
10.1        Fourth Amendment to Loan and Security Agreement, dated January 10,
          2023
99.1        Press Release dated January 13, 2023
104       Cover Page Interactive Data File (embedded within the Inline XBRL
          document)

© Edgar Online, source Glimpses