Flux Power Holdings, Inc. (NASDAQ:FLUX) Q2 2023 Earnings Call Transcript

And so that may be 10, or 50, or whatever. And they’ll ship that, they’ll get comfortable with how it works. The operating environment is a little bit different. We got computers on backpacks, they don’t, they need a whole giant room to charge lead acid battery, you don’t need any of that with us, but I got to keep ours charged, the battery chargers might be a little bit different. So they get comfortable with all that. And the operators need to get comfortable with it. The warehouse, people need to be comfortable, the finance, general management needs to be comfortable with it. And then once you’ve reached that point, then our salespeople work with them to start planning their needs. That’s one of the other facilities and what it begins to look like, when they’re going to do it, they have capital budget, expense budgets to deal with.

So there’s a fair amount of dependencies that drive the timing of that. And so it varies across company, but you can see, it doesn’t — it’s not like going out and buying a battery for your flashlight, just to be absurd about it. But so with these two customers, that was started quite some time ago. The good news is once they start down this road utilizing Flux, this is a very sticky proposition. Once we — we had to perform. I mean, we could screw up and they could drop us and go with somebody else. So we haven’t lost any customers. And it’s very sticky, so anybody’s got to take business away probably has to do it from the standpoint either our service was terrible, or our price was way, way too high. And we haven’t been experiencing any of that.

So there’s a stickiness to it. So it can take longer. But once you get it, it’s yours to lose really, that’s a general statement on simplifying somewhat, but that’s exactly what’s been our experience.

Matthew Galinko: Got it. That’s perfect color. Appreciate it

Operator: There are no further questions at this time. I would like to turn the floor back over to Mr. Dutt for closing comments. Please go ahead.

Ron Dutt : Thank you, operator. I would like to thank each of you for joining our financial results conference call today, and look forward to continuing to update you on our ongoing progress and growth. If we’re unable to answer any question or addressing your questions, please reach out to our IR firm, NZ Group, who would be more than happy to assist you. Good day.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.