fluxworks powertrain update #004

Welcome to the FluxWorks powertrain, we're glad to have you aboard. If you missed Powertrain #003, catch up here before we jump into this quarter's review.

technology update

With the new non-dilutive funding, we'll continue innovating the next generation of CG-series for commercialization, increasing:

• Torque per unit weight (Nm/kg)
• Torque transparency (%)

while reducing:

• Cost per unit torque ($/Nm)

In short: less weight, more feedback, zero gear greaseis how we're preparing our technology for new applications in robotics, automation, and outer space.

what does fluxworks do again?

empowering progress, transforming motion.

FluxWorks exists to redefine how machines move. With our Celestial Gear™ we're delivering elegant, efficient, and contactless power transmission.

The Celestial Gear™ serves as the anchor for all our innovations. From it, Lodestar™ and Kepler Controls™ were forged, elevating motion to become more transparent, precise, and intelligent. Learn more about our core technologieshere.

seed round updates

The Seed Round was raised for a focused, strategical entry into beachhead markets in robotics and automation. Specifically, Delta & SCARA robots and End-of-Arm Tools (EOAT). Here's our first 90 days of progress:

1. validate celestial gear™ scalability through commercial pilots.

• Integrated CG-Series Pilots: We're visiting Douglas Machine & Aagard to finalize details for Q1 2026 demos. These will benchmark Celestial Gear™ and Lodestar™ performance in live systems.

2. land our first tier-1 oem relationship.

• Rockwell Automation: Rockwell Automation has teed up to test drive Celestial Gear™ technology. (Even better, it’s in the same automation ecosystem as Douglas and Aagard).

3. de-risk supply chain & scalable manufacturing techniques that also reduce cost and weight.

• Design improvements for manufacture and assembly made it possible to secure US rare earth magnets for 35% CHEAPERper kg than our order for the same product in Oct 2024.
• We're weaving through supply chain shortages for now, and our goal to drive costs down and maintain 8 week lead times or less holds true as we continue to innovate and maintain supply chain & QMS certification.

4. fluxworks's new groove— we've revamped our branding!

• More than just a shiny new logo, our new brand is better suited to positioning ourselves as a mechatronics company. Check out our new style here.

key metrics

2025 at Q3 close vs. 2024 at Q3 close.

• New Cumulative Non-Dilutive Selected: $3.34M vs. $2.3M
• YTD Revenue (All): $1.35M vs. $1.09M
• Gross Margin (at Q3 Close): 55.76% vs. 61.31%
• Revenue: 23.50% YoY growth

In our last update, we talked about practicing lean culture at FluxWorks. We've brought on Rick Collins to help us keep the momentum up, and improve our financial rhythms.

what we've learned since our last update

Two books, Turn the Ship Around! and Who(thanks, Brad Jenkins, for the recommendations!), have helped us tune up leadership to prepare for the growing pains of scaling(see What Keeps Me Up at Night for more).

With Alex Lee’s refined GTM playbook, we discovered that vertically integrated OEMs are the fastest and most attractive entry points. They move quickly, need differentiation, and are eager to pilot.

If our upcoming pilot programs with significant industry players convert,they alone could consume the full capacity of our current production facility.

Winning here means:

1. Demonstrating product-market fit with high-value customers.
2. Establishing a path to dominate the broader Delta and SCARA robot segment across food, beverage, and other CPG automation applications.

team

new hires on the block:

• Rick Collins joined as Director of Finance to formalize FP&A, improve forecasting discipline, and manage compliance for our growing portfolio of federal contracts.
• Alex Lee transitioned to half-time Chief Strategy Officer, leading go-to-market and partnerships across robotics and automation.

what i’m hyped about

Our core valuesare becoming a part of our natural day-to-day, bringing together a nice blend of culture into even our technical conversations.

I’ve also been stepping out of more meetings and into the field with Alex Lee to focus on pipeline and customer relationships. Simply walking the PackExpo floor this October led us to our two upcoming pilot programs.

And yes, we’re replacing another mechanical gear in the process. People are starting to see the potential in magnetic gear capabilities. We're on our way to Make Gears Great Again™.

what keeps me up at night

We’re running faster than ever, but the task of scaling our team at pace is breathing down our necks. Turn the Ship Around!and Who have been the source of excellent practical tips to help us address this burgeoning challenge in two ways:

1. (Who) Outlining a focused recruitment effort to support our commercial pipeline. Hiring has been a strenuous process of search and selection, but finding the right people for our upcoming pilots remains critical.
2. (Turns the Ship Around) Helping the team take on full ownership by stepping up on leadership fronts. We're starting to show faster decision loops and higher confidence levels, despite the discomfort of change.

Having too many opportunities can become a problem of its own. We're slowing down other pilots and pipeline to maximize execution on our long-term strategy for commercialization. It's a full time juggling act to keep our velocity without burning out the team.

what we need help with

seed round is nearly fully subscribed—only $1.2m remains open

We're also gearing up for a potential, highly attractive, opportunity with the Army SBIR CATALYST Program for investment in Q1 2026 that will be 2-1 fund matched. VC funding will act essentially as rocket fuel to light the program fuse, triggering explosive program benefits.

That being said, Investors aligned with dual-use, robotics, and industrial techare our priority. If you have someone in mind, we'd love to get in touch.

referrals & hiring

We’re also continuing to grow the team:

• Applications Engineer, to support commercial pipeline development and upcoming pilots.
• Engineering Program Lead, to manage engineering design focus, testing and validation across multiple projects.

Senior technical leadership/experience referrals are highly desired and appreciated as we continue to ramp up our commercial projects and relationships.

gratitude to...

• Zach Beecher, Cody Huggins, Mike Keane, and Nate Smith for the work you are doing to make connections for us. Kellie Pias, for making our communications effective. AndBrad Harrison, I have gotten multiple emails that read something like “Met Brad today. He spoke so highly of you.” Thank you for the kind words.
• Col. (Ret.) Ross Guiebfor all you do as one of our key invested advisors, and for championing our work at Fed Supernova and on Capitol Hill.
• Al White, for your CEO coaching, and for connecting me to "Rhino".
• Gallant Culture for a brand that finally feels like us.
• Chloe Praslicka for your resourcefulness in transforming our office into a professional working space, while still leveraging incredibly low cost solutions. (Another thing we're learning at FluxWorks is the power of design. Even a little paint goes a long way to create a space in which our team can feel revitalized).
• Brad Jenkins for thebook recommendations and gift.
• And to every advisor who’s stayed up on a late call or answered a quick “gut check” text.

FluxWorks is what it is today because of the people who believed before the world noticed. From handwritten notes to warm intros, every ounce of belief compounds.

With gratitude and momentum,
Bryton Praslicka
Founder & CEO, FluxWorks Inc.

FluxWorks, 1026 Outpost Dr, Ste B1, Conroe, Texas 77304, United States, 9794310990

Unsubscribe Manage preferences