Got it straight now. I'm so used to HV ESCs I forgot about the internal BEC on the Kosmik. When I removed the red wire from the throttle channel, no flashing lights. But there's more to it than that. It seems the system is designed to use a Lipo as a buffer when using the internal BEC. I had to go into the programming with the prog unit and change the BEC voltage from 5.6 to 7.7v. When I did that, reconnected the red BEC wire, all was good. No more warning lights. With the voltage set to 5.6v, it didn't know it was a Lipo. Hope this makes sense. Just wanted to share
T