Expion360 Reports First Quarter 2024 Financial Results
Expion360 reported its Q1 2024 financial results, highlighting a revenue of $1.0 million, up 13% sequentially from Q4 2023, but down 35.5% year-over-year. The net loss increased to $2.2 million from $2.0 million in the prior year, driven by new product development and launches.
Key developments include substantial preorders for new Group 27 and GC2 batteries featuring proprietary Vertical Heat Conduction™ technology, the launch of Edge™ battery, and UL 1973 compliance for 450Ah EX1 batteries. The company also detailed future strategic partnerships and product expansions for various sectors, including home energy storage solutions.
CEO Brian Schaffner emphasized the company's innovation and expansion efforts across multiple market segments. Cash reserves totaled $2.3 million, with additional financing commitments of up to $22.5 million to support ongoing initiatives.
- Q1 2024 revenue up 13% sequentially to $1.0 million.
- Substantial preorders for new Group 27 and GC2 batteries.
- Launch of new Edge™ battery with advanced features.
- Achieved UL 1973 compliance for 450Ah EX1 batteries.
- Expansion into home energy storage solutions.
- Additional financing commitments of up to $22.5 million.
- Q1 2024 revenue decreased 35.5% year-over-year.
- Net loss increased to $2.2 million from $2.0 million in the prior year.
- Gross profit margin decreased to 22.9% from 29.4% in the prior year.
- Selling, general, and administrative expenses rose to $2.2 million from $2.1 million.
- Cash and cash equivalents decreased to $2.3 million from $3.9 million at year-end 2023.
Insights
The financial performance of Expion360 in the first quarter of 2024 shows mixed signals. Revenue for Q1 2024 was
The net loss of
Another key point is the company's cash position, which declined to
Overall, while there are clear signs of recovery and strategic progress, the financial health of Expion360 needs to show consistent revenue growth and improved cost management to inspire more confidence among investors.
The announcement of new products and technologies from Expion360, notably the Group 27 and GC2 series lithium iron phosphate batteries featuring their proprietary Vertical Heat Conduction™ (VHC™) internal heating technology, is an important innovation. This technology ensures uniform heat distribution across each cell, significantly enhancing battery performance in cold climates, which is a critical advantage for applications in RVs and other outdoor uses. This feature, combined with a sophisticated Battery Management System, can optimize operational safety and longevity, making it a substantial selling point. The preorders and impending deliveries of these products indicate market interest and potential demand.
Additionally, the introduction of the Edge™ battery with a slim profile and SmartTalk™ Bluetooth and CAN Bus communication technologies signifies a push towards more versatile and user-friendly products. These technologies allow real-time performance monitoring, which is increasingly expected by consumers in modern energy storage solutions. The expected launch of the Home Energy Storage System (ESS) further diversifies their product line and taps into a growing market for residential and commercial energy independence solutions.
However, the success of these products will largely depend on their market reception and the company's ability to scale production and manage supply chains effectively. Ensuring the reliability and performance of these new technologies will be paramount to building customer trust and securing a competitive edge.
Positioned for Increased Market Share & Revenue Growth with New Products and Technologies
Substantial Preorders of Next Generation Group 27 and GC2 Batteries that Now Include Proprietary Vertical Heat Conduction™ Internal Heating Technology
2024 Anticipated Milestones Include: New Strategic Partnerships, OEM Expansion and Disruptive Product Launches Across Multiple Market Segments
REDMOND, Ore., May 14, 2024 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium-ion battery power storage solutions, today reported its financial and operational results for the first quarter ended March 31, 2024.
First Quarter & Subsequent 2024 Financial & Operational Highlights
- Q1 2024 Revenue totaled
$1.0 million , up13% sequentially from Q4 2023. - Q1 2024 Net loss totaled
$2.2 million compared to a net loss of$2.0 million in the prior year period as the Company continued to invest in new product development and launches. - Received substantial preorders of next generation Group 27 and GC2 series lithium iron phosphate (“LiFePO4") batteries, which now include Expion360’s proprietary Vertical Heat Conduction™ (“VHC™”) internal heating technology, a patent-pending innovation. Expion360 began taking pre-orders of the new Group 27 and GC2 batteries in Q1 2024 and commenced deliveries in May 2024.
- In May 2024, announced the launch of the Edge™ battery available in both 12.8V and 51.2V configurations, featuring a slim profile that maximizes available space without compromising performance and is now available for preorder.
- Achieved UL 1973 compliance for 450Ah EX1 batteries, reaffirming commitment to safety and innovation in the rapidly growing lithium battery industry.
- On April 30, 2024, released specifications for Home Energy Storage Solutions.
Management Commentary
“In the first quarter of 2024 we fortified our position as a leader in premium LiFePO4 batteries with next generation battery product launches and new technologies,” said Brian Schaffner, Chief Executive Officer of Expion360. “With continued existing product momentum for an improving RV market, we also are scaling efforts into other verticals and channels such as marine, overland and light electric vehicles, and introducing products for home energy and commercial applications.
“First quarter sales continued to be impacted by the battery business for RVs year over year, but improved
“We continue to innovate and expand our product line and have received substantial preorders of our next generation Group 27 and GC2 batteries, with shipments beginning now. These batteries include our proprietary VHC™ internal heating technology, a patent-pending innovation representing a significant breakthrough in battery performance, particularly in cold climates. VHC™ heating technology utilizes Positive Temperature Coefficient Heating Film to ensure uniform heat distribution across each cell, promoting optimal battery performance even in extreme cold conditions. The sophisticated Battery Management System provides real-time monitoring and control, enhancing operational safety and longevity in cold temperatures. The new versions also include higher amp-hour 4.0Ah and 4.5Ah cell technology, Bluetooth® and controller area network communication.
“Most recently, we announced the launch of the Edge™ battery available in both 12.8V and 51.2V configurations, incorporating VHC™ and is equipped with Integrated SmartTalk™ Bluetooth and CAN Bus communication, allowing users to monitor battery performance in real-time. The Edge™ features a slim profile with dimensions of just 4.2 inches in height, 17.5 inches in width, and 21.9 inches in length, offering flexibility for installation in a variety of applications and maximizing available space without compromising performance.
“We expect to begin taking orders for the new e360 Home Energy Storage System (“ESS”) beginning in the second quarter of 2024 with shipments expected to begin in the second half of the year, growing our portfolio from recreational vehicles and marine applications into home energy applications. These two LiFePO4 battery storage solutions will enable residential and small business customers to create their own stable micro-energy grid and lessen the impact of increasing power fluctuations and outages. We believe consumer uptake of home energy storage can rapidly scale with the introduction of products that improve price, flexibility, and integration.
“Looking ahead, we anticipate additional orders as the RV market recovers given our marketing initiatives and expanding product line. We continue to work towards additional OEM market penetration as well as growing demand from customers looking to achieve greater power density, better reliability and superior quality for their energy storage needs. We look forward to providing future updates on our business in the months ahead,” concluded Mr. Schaffner.
First Quarter 2024 Financial Summary
For the first quarter of 2024, revenue totaled
Gross profit for the first quarter of 2024 totaled
Selling, general and administrative expenses increased to
Net loss for the first quarter of 2024, totaled
Cash and cash equivalents totaled
First Quarter 2024 Results Conference Call
Brian Schaffner, Chief Executive Officer and Greg Aydelott, Chief Financial Officer of Expion360 will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.
To access the call, please use the following information:
| Date: | Tuesday, May 14, 2024 |
| Time: | 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) |
| Dial-in: | 1-877-407-9039 |
| International Dial-in: | 1-201-689-8470 |
| Conference Code: | 13746144 |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1667094&tp_key=98b5c4683a |
A telephone replay will be available commencing approximately three hours after the call and will remain available through May 28, 2024, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 13746144. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available via the investor relations section of the Company’s website here.
About Expion360
Expion360 is an industry leader in premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles and marine applications, with residential and industrial applications under development. In December 2023, the Company announced its entrance into the home energy storage market with the introduction of two premium LiFePO4 battery storage systems that enable residential and small business customers to create their own stable micro-energy grid and lessen the impact of increasing power fluctuations and outages. Please find the press release here.
The Company’s lithium-ion batteries feature half the weight of standard lead-acid batteries while delivering three times the power and ten times the number of charging cycles. Expion360 batteries also feature better construction and reliability compared to other lithium-ion batteries on the market due to their superior design and quality materials. Specially reinforced, fiberglass-infused, premium ABS and solid mechanical connections help provide top performance and safety. With Expion360 batteries, adventurers can enjoy the most beautiful and remote places on Earth even longer.
The Company is headquartered in Redmond, Oregon. Expion360 lithium-ion batteries are available today through more than 300 dealers, wholesalers, private-label customers, and OEMs across the country. To learn more about the Company, visit expion360.com.
VHC™, Vertical Heat Conduction™, Edge™, and SmartTalk™ are trademarks of Expion360.
© 2024 Expion360. All rights reserved.
Forward-Looking Statements and Safe Harbor Notice
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release, including statements about our beliefs and expectations, are "forward-looking statements" and should be evaluated as such. Examples of such forward-looking statements include, statements that use forward-looking words such as "projected," "expect," "possibility,” “believe,” “aim,” “goal,” “plan,” and "anticipate," or similar expressions. Forward-looking statements included in this press release include, but are not limited to, statements relating to the Company’s expectations about the Company’s operations, future development plans, growth prospects, product pipeline and development, anticipated timing of commercial availability of its products, beliefs about market size and opportunity, including customer base, and market conditions. Forward-looking statements are subject to and involve risks, uncertainties, and assumptions that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by such forward-looking statements.
The Company cautions that forward-looking statements are not historical facts and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management are under no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any forward-looking statements following the date of this press release, whether as a result of new information, future events or otherwise, except as required by law.
Company Contact:
Brian Schaffner, CEO
541-797-6714
Email Contact
External Investor Relations:
Chris Tyson, Executive Vice President
MZ Group - MZ North America
949-491-8235
XPON@mzgroup.us
www.mzgroup.us
Expion360 Inc. Balance Sheets | ||||||||
| As of March 31, 2024 (unaudited) | As of December 31, 2023 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 2,263,133 | $ | 3,932,698 | ||||
| Accounts receivable, net | 238,921 | 154,935 | ||||||
| Inventory | 3,780,617 | 3,825,390 | ||||||
| Prepaid/in-transit inventory | 118,811 | 163,948 | ||||||
| Prepaid expenses and other current assets | 233,171 | 189,418 | ||||||
| Total current assets | 6,634,653 | 8,266,389 | ||||||
| Property and equipment | 1,212,984 | 1,348,326 | ||||||
| Accumulated depreciation | (421,836 | ) | (430,295 | ) | ||||
| Property and equipment, net | 791,148 | 918,031 | ||||||
| Other Assets | ||||||||
| Operating leases – right-of-use asset | 2,532,252 | 2,662,015 | ||||||
| Deposits | 58,896 | 58,896 | ||||||
| Total other assets | 2,591,148 | 2,720,911 | ||||||
| Total assets | $ | 10,016,949 | $ | 11,905,331 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 282,420 | $ | 286,985 | ||||
| Customer deposits | 10,926 | 17,423 | ||||||
| Accrued expenses and other current liabilities | 248,905 | 292,515 | ||||||
| Convertible note payable | 2,206,067 | 2,082,856 | ||||||
| Current portion of operating lease liability | 535,576 | 522,764 | ||||||
| Current portion of stockholder promissory notes | 700,000 | 762,500 | ||||||
| Current portion of long-term debt | 31,472 | 50,839 | ||||||
| Total current liabilities | 4,015,366 | 4,015,882 | ||||||
| Long-term debt, net of current portion and discount | 223,954 | 298,442 | ||||||
| Operating lease liability, net of current portion | 2,102,605 | 2,241,325 | ||||||
| Total liabilities | $ | 6,341,925 | $ | 6,555,649 | ||||
| As of March 31, 2024 (unaudited) | As of December 31, 2023 | |||||||
| Stockholders’ equity | ||||||||
| Preferred stock, par value $.001 per share; 20,000,000 shares authorized; zero shares issued and outstanding as of March 31, 2024 and December 31, 2023 | — | — | ||||||
| Common stock, par value $.001 per share; 200,000,000 shares authorized; 7,046,853 and 6,922,912 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 7,047 | 6,923 | ||||||
| Additional paid-in capital | 26,956,682 | 26,438,524 | ||||||
| Accumulated deficit | (23,288,705 | ) | (21,095,765 | ) | ||||
| Total stockholders’ equity | 3,675,024 | 5,349,682 | ||||||
| Total liabilities and stockholders’ equity | $ | 10,016,949 | $ | 11,905,331 | ||||
| Expion360 Inc. Statements of Operations (Unaudited) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net sales | $ | 971,859 | $ | 1,507,177 | ||||
| Cost of sales | 749,337 | 1,063,730 | ||||||
| Gross profit | 222,522 | 443,447 | ||||||
| Selling, general and administrative | 2,189,475 | 2,120,894 | ||||||
| Loss from operations | (1,966,953 | ) | (1,677,447 | ) | ||||
| Other (income) / expense: | ||||||||
| Interest income | (26,865 | ) | (20,133 | ) | ||||
| Interest expense | 253,286 | 38,178 | ||||||
| Gain on sale of property and equipment | 306 | — | ||||||
| Settlement expense | — | 281,680 | ||||||
| Other (income) / expense | (1,200 | ) | 106 | |||||
| Total other expense | 225,527 | 299,831 | ||||||
| Loss before taxes | (2,192,480 | ) | (1,977,278 | ) | ||||
| Franchise taxes | 460 | — | ||||||
| Net loss | $ | (2,192,940 | ) | $ | (1,977,278 | ) | ||
| Net loss per share (basic and diluted) | $ | (0.31 | ) | $ | (0.29 | ) | ||
| Weighted-average number of common shares outstanding | 7,006,498 | 6,815,002 | ||||||
| Expion360 Inc. Statements of Cash Flows (Unaudited) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (2,192,940 | ) | $ | (1,977,278 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | 49,444 | 48,120 | ||||||
| Amortization of convertible note costs | 166,786 | |||||||
| Loss on sale of property and equipment | 306 | — | ||||||
| Decrease in allowance for doubtful accounts | — | (18,804 | ) | |||||
| Stock-based settlement | — | 251,680 | ||||||
| Stock-based compensation | 315,853 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in accounts receivable | (83,986 | ) | (311,923 | ) | ||||
| Decrease in inventory | 44,773 | 603,570 | ||||||
| (Increase) / Decrease in prepaid/in-transit inventory | 45,137 | (1,086,577 | ) | |||||
| Increase in prepaid expenses and other current assets | (43,753 | ) | (66,992 | ) | ||||
| Decrease in deposits | — | 5,005 | ||||||
| Increase / (Decrease) in accounts payable | (4,565 | ) | 895,845 | |||||
| Increase / (Decrease) in customer deposits | (6,497 | ) | 208,553 | |||||
| Increase in accrued expenses and other current liabilities | 33,669 | 19,638 | ||||||
| Increase in right-of-use assets and lease liabilities | 3,855 | 6,461 | ||||||
| Net cash used in operating activities | (1,671,918 | ) | (1,422,702 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (10,550 | ) | (9,280 | ) | ||||
| Net proceeds from sale of property and equipment | 87,684 | — | ||||||
| Net cash provided by / (used in) investing activities | 77,134 | (9,280 | ) | |||||
| Cash flows from financing activities | ||||||||
| Principal payments on convertible note | (43,575 | ) | — | |||||
| Principal payments on long-term debt | (93,855 | ) | (92,854 | ) | ||||
| Principal payments on stockholder promissory notes | (62,500 | ) | — | |||||
| Net proceeds from exercise of warrants | (4 | ) | 49,787 | |||||
| Net proceeds from issuance of common stock | 125,153 | — | ||||||
| Net cash provided by / (used in) financing activities | (74,781 | ) | (43,067 | ) | ||||
| Net change in cash and cash equivalents | (1,669,565 | ) | (1,475,049 | ) | ||||
| Cash and cash equivalents, beginning | 3,932,698 | 7,201,244 | ||||||
| Cash and cash equivalents, ending | 2,263,133 | 5,726,195 | ||||||
| For the Three Months Ended March 31, | ||||||||
| Supplemental disclosure of cash flow information: | 2024 | 2023 | ||||||
| Cash paid for interest | $ | 12,748 | $ | 38,399 | ||||
| Cash paid for franchise taxes | $ | — | $ | — | ||||
| Non-cash financing activities: | ||||||||
| Acquisition/modification of operating lease right-of-use asset and lease liability | $ | — | $ | 13,993 | ||||
| Issuance of common stock for payment on accrued interest | $ | 41,250 | $ | — | ||||
| Issuance of common stock for payment on accrued compensation | $ | 36,029 | $ | — | ||||
| Issuance of common stock in exchange for short-term loan costs | $ | 63 | $ | — | ||||
FAQ
What were Expion360's Q1 2024 revenue figures?
What is the net loss reported by Expion360 for Q1 2024?
What new products did Expion360 launch in May 2024?
What technological advancement is featured in Expion360's new Group 27 and GC2 batteries?
What is the significance of Expion360 achieving UL 1973 compliance?
What were Expion360's gross profit margins for Q1 2024?
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What are some future milestones anticipated by Expion360 for 2024?
