1. What’s involved in the UL listing process and how confident is Flux in achieving this certification?
A: UL operates under its own authority as an independent, not-for-profit, nongovernmental organization. To establish certification, samples of a product submitted by manufacturers for certification are tested and evaluated. If UL decides the product fulfills all applicable requirements it authorizes the manufacturer to apply a certification mark to production of the samples submitted, or issues a certificate or notification that the product is now certified by UL. Flux is very confident that LiFT Packs will achieve UL Listing because our packs were initially designed to meet UL standards.
2. What is your strategy and plan to initiate larger scale deployments from existing customers that have made modest initial LiFT Pack purchases? How does UL fit into that strategy and what sort of pace can we expect to see for ramping sales?
A: The plan to increase sales to existing customers who have made modest purchases to date hinges on exceptional customer service. Proactively addressing any customer concerns and questions is the best way to ensure repeat and future large scale ordering. The OEM’s and battery dealers with whom we partner are crucial advocates for additional after-market service of Flux packs. We are forever articulating the LiFT Pack value proposition over alternative power sources for materials handling equipment in terms of runtime, performance and total cost of ownership. Prominent customers have suggested to Flux that the only hurdle to large scale ordering is the existence of a UL Mark on Flux LiFT Packs. As previously indicated, Flux expects to conclude the process with UL in Q2 ’16, and we expect significant, increased ordering in the beginning of the calendar year 2016.
3. What is it going to take to get the Flux stock price moving? What can management do to position Flux shares for appreciation?
A: The share price of Flux stock will respond positively to news of LiFT Pack sales growth. Management expects to keep investors informed of large scale customer orders in addition to reporting quarterly results that include details on the number units sold. The materials handling battery market is a multi-billion dollar opportunity each year. Flux can capture a larger share of the market for LiFT Packs by leveraging and expanding the same things that got us in this position as first mover; engineering acumen, customer service and advancing our reputation for reliability.