Summary of XPON Three Sixty Inc. Conference Call Company Overview - **Company Name**: XPON Three Sixty Inc. - **Ticker Symbol**: XPON - **Industry**: Clean Energy Battery Storage - **Founded**: February 2016 - **Focus Areas**: Recreational vehicles (RVs), marine, light industrial vehicles, and home energy storage solutions [3][2] Core Values and Product Offering - **Core Values**: Safety, Quality, Service - **Product Warranty**: 12-year warranty with 100% replacement for the first six years [4][5] - **Battery Technology**: Utilizes lithium iron phosphate (LiPo) for safety and performance, with a focus on reducing thermal runaway risks [8][12] Market Insights - **RV Market Growth**: Expected to grow by 14% in the current year according to RVIA [7] - **Installed Systems**: Over 10 million RVs on the road, most using lead-acid batteries that last less than three years, indicating a significant replacement market [7][8] - **Home Energy Storage**: Launched in January, showing faster growth than initially predicted [11] Financial Performance - **Market Capitalization**: Currently below inventory levels with minimal debt [6] - **Revenue Growth**: 11% increase year-over-year; gross profit margin improved to 24.5% from 22.9% [29][31] - **Cost Management**: Reduced SG&A expenses by 24.7% through operational efficiencies [32] Strategic Initiatives - **Onshoring Production**: Efforts to bring battery cell manufacturing to the U.S. in partnership with Asian manufacturers [25][24] - **Demand for Energy Storage**: Projected growth of 20.7% annually for energy storage cells, with global market demand expected to exceed $200 billion by 2030 [25][26] - **Partnerships**: Collaborating with NeoVolta for joint ventures in home energy systems [54] Competitive Positioning - **Market Strategy**: Targeting smaller integration partners who benefit from additional margins on battery sales [40] - **OEM Relationships**: Long-standing relationships with OEMs, contributing to $5 million in new annualized revenue [44] - **Patent Protection**: Holds 11 pending patents, providing a competitive moat, although some technology remains unprotected [51][52] Future Outlook - **Manufacturing Plant**: Plans to build a battery manufacturing plant with a projected cost of $150 to $250 million, funded through a mix of private and government investments [26][55] - **Market Demand**: Anticipates significant demand for high-density battery cells, which could lead to a competitive pricing advantage [57] Additional Notes - **Customer Satisfaction**: High customer satisfaction and ease of installation reported for home energy products [38] - **Warranty Claims**: Warranty claims are low enough that no reserve is required, indicating product reliability [47][50] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, market opportunities, and financial health.

Financial Data and Key Metrics Changes - Revenue in Q1 2025 totaled $2,000,000, an increase of 111% from $1,000,000 in the prior year period [20] - Gross profit in Q1 2025 was $500,000, or 24.5% of revenue, compared to $200,000, or 22.9% of revenue in the prior year [20] - Net loss in Q1 2025 totaled $1,200,000, a 47.5% improvement from a net loss of $2,200,000 in the prior year [22] - Cash and cash equivalents were $1,100,000 as of March 31, 2025, compared to $500,000 as of December 31, 2024 [22] Business Line Data and Key Metrics Changes - The company has made progress in its home energy storage solutions (HESS) vertical, with shipments beginning in January 2025 [9] - The E360 product line has shown sales growth, indicating a preferred conversion solution for lead acid batteries [7] - The RV market is recovering, with total RV shipments increasing by 14% in Q1 2025 [24] Market Data and Key Metrics Changes - The home energy storage market is expected to surpass $123 billion globally by 2029 [19] - The company is targeting home and small commercial solar users with its new battery solutions [16] - The industrial applications market is identified as a future growth vertical, driven by demand for electric forklifts and material handling [15] Company Strategy and Development Direction - The company aims to onshore the manufacturing of its components to mitigate tariff impacts and pursue government and defense opportunities [13][26] - A partnership with NeaVolta is being explored to develop a U.S.-based battery manufacturing facility [10][26] - The focus is on expanding the addressable market with E360 home energy storage solutions, which began production in January 2025 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025 and beyond, with substantial purchase orders and new customer interest [23] - Meetings in Washington D.C. were described as encouraging, with support for onshoring efforts [32][33] - The company is actively working to ensure tariffs have minimal impact on its business and growth [25] Other Important Information - The company has secured several new OEM customers, including Scout Campers and KZ Recreational Vehicles [10] - A registered direct offering in January 2025 raised approximately $2,600,000 for working capital and growth initiatives [12] Q&A Session Summary Question: How will the onshoring of a cell plant help financially? - Onshoring will provide access to cells at a cost-plus basis, increasing margins and eliminating tariff threats [30] Question: What would your financial burden be should a domestic cell plant be constructed? - The partner bears the financial burden, while the company provides technology and manages production [31] Question: How did your meetings go in Washington, and can you provide any additional details? - Meetings were very encouraging, with strong support for onshoring efforts and U.S. manufacturing investment [32][33]

Financial Data and Key Metrics Changes - Revenue in the first quarter of 2025 totaled $2,000,000, an increase of 111% from $1,000,000 in the prior year period [20] - Gross profit for the first quarter of 2025 was $500,000, or 24.5% of revenue, compared to $200,000, or 22.9% of revenue in the prior year period [20] - Net loss in the first quarter of 2025 totaled $1,200,000, a 47.5% improvement from a net loss of $2,200,000 in the prior year period [21] - Cash and cash equivalents were $1,100,000 as of March 31, 2025, compared to $500,000 as of December 31, 2024 [22] Business Line Data and Key Metrics Changes - The company has begun shipments in the home energy storage solutions (HESS) vertical, which is expected to benefit from a fast-growing battery energy storage market [8] - The E360 product line has shown sales growth, indicating a preferred conversion solution for lead-acid batteries [6] - The RV market is recovering, with total RV shipments increasing by 14% in the first quarter of 2025 [24] Market Data and Key Metrics Changes - The home energy market is projected to surpass $123 billion globally by 2029, indicating significant growth potential [19] - The company is exploring partnerships to enhance its manufacturing capabilities and mitigate tariff impacts, particularly with NeaVolta [9][26] Company Strategy and Development Direction - The company aims to onshore the manufacturing of its components to mitigate tariff risks and enhance production capabilities [12][26] - A focus on expanding the addressable market with E360 home energy storage solutions began production and shipments in January 2025 [25] - The company is actively working to diversify its supply chain to avoid tariffs and increase margins [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025 and beyond, with substantial purchase orders and new customer interest [23] - Meetings in Washington regarding onshoring efforts were described as encouraging, with strong support for increasing U.S. manufacturing investment [31] Other Important Information - The company closed a registered direct offering and concurrent private placement with institutional investors in January 2025, raising approximately $2,600,000 [11] - The company has prepared for growth by building up inventory early in the quarter before new tariffs were introduced [12] Q&A Session Summary Question: How will the onshoring of a cell plant help financially? - Onshoring will provide access to cells at a cost-plus basis, increasing margins without tariff threats, and will also generate royalties from cell sales [29] Question: What would the financial burden be for constructing a domestic cell plant? - The company will provide technology and manage the project, while the partner bears the financial burden and capital requirements [30] Question: How did the meetings in Washington go? - The meetings were very positive, with strong support for onshoring efforts and U.S. manufacturing investment [31]

Financial Performance & Highlights - Expion360's revenue increased to $2 million in Q1 2025, compared to $1 million in Q1 2024[47] - Gross profit increased to $05 million in Q1 2025, compared to $02 million in Q1 2024[47] - Gross margin increased to 245% in Q1 2025, compared to 229% in Q1 2024[47] - Net loss decreased to $(12) million in Q1 2025, compared to $(22) million in Q1 2024[47] - The company closed a $26 million registered direct offering in January 2025[20, 47] Strategic Initiatives & Market Positioning - Began fulfilling purchase orders for Home Energy Storage Solutions ("HESS") in January 2025[20, 26] - Exploring a potential collaboration with NeoVolta Inc to engineer a state-of-the-art battery manufacturing facility[20] - RV industry shipments increased 14% in the first quarter of 2025[48] Technology & Product Development - e360 12 volt 450 Ah battery features new proprietary anode/cathode design that increases energy density by >32%[29] - The company has 11 patents pending across its five market segments[23]

[Cautionary Note Regarding Forward-Looking Statements and Industry Data](index=4&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS%20AND%20INDUSTRY%20DATA) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements concerning future operations and financial performance that are subject to significant risks and uncertainties - The company identifies several key risks that could impact future performance, including:[10](index=10&type=chunk) - **History of Losses & Going Concern:** The company has a history of losses and its financial statements include a substantial doubt about its ability to continue as a going concern[10](index=10&type=chunk) - **Competitive & Supply Chain Pressures:** The company operates in a highly competitive industry, is subject to pricing pressures, and depends on third-party manufacturers and suppliers, facing risks related to raw material costs and availability[10](index=10&type=chunk) - **Customer Concentration:** A limited number of customers account for a substantial portion of sales, posing a concentration risk[10](index=10&type=chunk) - **Capital & Financing Risks:** The company's ability to raise future capital may be limited, and outstanding warrants could dilute stockholder ownership and affect the stock price[10](index=10&type=chunk)[11](index=11&type=chunk) [PART I - FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited statements show increased net sales and a reduced net loss, but operating losses and negative cash flows persist, prompting a going concern warning [Balance Sheets](index=7&type=section&id=BALANCE%20SHEETS) Total assets slightly increased to $9.24 million while total liabilities decreased, resulting in an increase in stockholders' equity to $3.20 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,092.6 | $547.6 | | Inventory | $6,036.0 | $4,831.5 | | Total current assets | $8,079.2 | $7,841.2 | | **Total assets** | **$9,242.4** | **$9,107.4** | | **Liabilities & Equity** | | | | Suspended Liability | $4,485.9 | $4,986.0 | | Total current liabilities | $5,379.2 | $5,847.9 | | **Total liabilities** | **$6,045.8** | **$6,589.1** | | **Total stockholders' equity** | **$3,196.6** | **$2,518.3** | [Statements of Operations (Unaudited)](index=8&type=section&id=STATEMENTS%20OF%20OPERATIONS%20(UNAUDITED)) For Q1 2025, revenue grew 111% to $2.05 million and the net loss improved by 48% to $1.15 million year-over-year Quarterly Operating Results (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $2,049.3 | $971.9 | | Gross profit | $501.6 | $222.5 | | Selling, general and administrative | $1,649.4 | $2,189.5 | | Loss from operations | $(1,147.9) | $(1,967.0) | | **Net loss** | **$(1,152.0)** | **$(2,192.9)** | | Net loss per share (basic and diluted) | $(0.37) | $(31.30) | [Statements of Cash Flows (Unaudited)](index=10&type=section&id=STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) Net cash used in operations improved, while financing activities provided $1.77 million, resulting in a net cash increase of $545,042 for Q1 2025 Summary of Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,228.9) | $(1,671.9) | | Net cash provided by investing activities | $2.8 | $77.1 | | Net cash provided by / (used in) financing activities | $1,771.2 | $(74.8) | | **Net change in cash** | **$545.0** | **$(1,669.6)** | | Cash and cash equivalents, ending | $1,092.6 | $2,263.1 | [Notes to Financial Statements (Unaudited)](index=12&type=section&id=NOTES%20TO%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Notes highlight a going concern doubt due to recurring losses, a January 2025 public offering, and significant customer concentration - **Going Concern:** The company has sustained recurring losses, with a net loss of $1.2 million for Q1 2025 and an accumulated deficit of $35.7 million, raising substantial doubt about its ability to continue as a going concern[37](index=37&type=chunk) - **January 2025 Public Offering:** The company raised gross proceeds of approximately **$2.6 million** through the sale of common stock and warrants, with $500,000 of the net proceeds used to partially satisfy a cash true-up payment liability[38](index=38&type=chunk)[89](index=89&type=chunk)[94](index=94&type=chunk) - **Customer Concentration:** During Q1 2025, sales to four customers accounted for approximately **49.6% of total sales** and represented 53% of total accounts receivable as of March 31, 2025[62](index=62&type=chunk) - **Subsequent Events:** In April 2025, the board approved grants of 105,000 RSUs and a conditional grant of 188,278 options to employees, and 125,000 shares of restricted common stock were issued to a consultant[146](index=146&type=chunk)[148](index=148&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes a 111% sales increase to market rebound and new products, but liquidity remains a critical issue with a going concern doubt [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q1 2025 saw 111% sales growth to $2.0 million and a 125% gross profit increase, significantly reducing the net loss compared to the prior-year period Comparison of Operations for the Three Months Ended March 31 | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $2.0M | $0.97M | +111% | | Gross Profit | $0.50M | $0.22M | +125% | | Gross Margin | 24.5% | 22.9% | +1.6 pts | | SG&A Expenses | $1.6M | $2.2M | -24.7% | | Net Loss | $(1.2M) | $(2.2M) | -48% | - The decrease in SG&A was primarily due to lower salaries and benefits (including stock-based compensation), reduced headcount, and lower legal and professional fees[194](index=194&type=chunk)[195](index=195&type=chunk) - Other expense decreased significantly to $4,000 from $226,000 in Q1 2024, mainly due to lower interest expense after the convertible note was paid off in August 2024[196](index=196&type=chunk)[197](index=197&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Recurring operating losses and negative cash flows raise substantial doubt about the company's ability to continue as a going concern - The company's financial condition, marked by **recurring losses and negative cash flows**, raises substantial doubt about its ability to continue as a going concern within the next 12 months[207](index=207&type=chunk) - As of March 31, 2025, cash and cash equivalents stood at **$1.1 million**, with working capital at $2.7 million[204](index=204&type=chunk) - Short-term liquidity needs include approximately $31,000 in debt payments, $256,000 in lease obligations, and a **$4.5 million suspended liability payment**[206](index=206&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a smaller reporting company, this information is not required - The company is a smaller reporting company and is not required to provide the information called for by Item 305 of Regulation S-K[227](index=227&type=chunk) [Controls and Procedures](index=42&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal controls - Based on an evaluation as of March 31, 2025, the principal executive and financial officer concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level[230](index=230&type=chunk) - No changes in internal control over financial reporting occurred during the three months ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[231](index=231&type=chunk)[232](index=232&type=chunk) [PART II - OTHER INFORMATION](index=44&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not currently a party to any material legal proceedings - As of the report date, the company is not party to any pending legal claims or contingencies that would materially impact its business or financial condition[233](index=233&type=chunk) [Risk Factors](index=44&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section incorporates by reference the risk factors detailed in the company's Annual Report on Form 10-K - The report refers investors to the detailed risk factors described in Part I, Item 1A of the company's Annual Report[234](index=234&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered equity securities were sold during the quarter, but 125,000 restricted shares were issued to a consultant subsequent to the period - No unregistered equity securities were sold during the quarter ended March 31, 2025[235](index=235&type=chunk) - Subsequent to the quarter, on April 21, 2025, the company issued **125,000 shares of restricted common stock** pursuant to a consulting agreement[235](index=235&type=chunk) [Defaults Upon Senior Securities](index=44&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities during the period - None[237](index=237&type=chunk) [Other Information](index=45&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No director or officer adopted, modified, or terminated any Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[240](index=240&type=chunk) [Exhibits](index=45&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Quarterly Report, including corporate governance documents and officer certifications - The report includes a list of filed exhibits, such as corporate governance documents, forms of securities, and certifications required by the Sarbanes-Oxley Act[241](index=241&type=chunk)

[Q1 2025 Performance Overview](index=1&type=section&id=Q1%202025%20Performance%20Overview) Expion360 achieved significant Q1 2025 revenue growth of 111% to $2.0 million, driven by a rebounding RV market and the successful launch of its Home Energy Storage Solutions, supported by a strengthened balance sheet [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Expion360 reported strong financial performance in Q1 2025, with revenue increasing 111% year-over-year to $2.0 million, marking the fifth consecutive quarter of sequential growth, alongside commencing shipments of its e360 Home Energy Storage Solutions (HESS) and securing $2.6 million in funding Q1 2025 Revenue Performance | Metric | Value | Growth | | :--- | :--- | :--- | | Q1 2025 Revenue | $2.0 million | 111% YoY | | Sequential Growth | 3% vs Q4 2024 | 5th consecutive quarter | - Began fulfilling purchase orders and shipping the new e360 Home Energy Storage Solutions ("HESS")[1](index=1&type=chunk)[7](index=7&type=chunk) - Strengthened the balance sheet by closing a **$2.6 million** registered direct offering and private placement[7](index=7&type=chunk)[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed the 111% year-over-year revenue growth to a rebounding RV market and the successful launch of its Home Energy Storage Solutions (HESS), while proactively increasing inventory and diversifying its supply chain with a long-term goal of onshoring manufacturing - Revenue growth was driven by a rebounding RV market, with the RV Industry Association (RVIA) reporting a **14% increase** in shipments in Q1 2025[3](index=3&type=chunk) - The company began production shipments of its LiFePO4 battery HESS products, targeting residential and small business customers for creating stable micro-energy grids[4](index=4&type=chunk) - Strategic initiatives include building **6-12 months of inventory** to mitigate tariffs, diversifying the supply chain, and working with NeoVolta to potentially develop a US-based battery manufacturing facility[5](index=5&type=chunk) - The company expects quarterly sequential growth to continue, supported by a strong balance sheet, substantial purchase orders, and growing customer interest[6](index=6&type=chunk) [Q1 2025 Financial Results](index=2&type=section&id=Q1%202025%20Financial%20Results) Expion360's Q1 2025 financial results show a 111% revenue increase to $2.0 million, improved gross margin, reduced SG&A, and a narrowed net loss, strengthening its cash position [First Quarter 2025 Financial Summary](index=2&type=section&id=First%20Quarter%202025%20Financial%20Summary) In the first quarter of 2025, Expion360 demonstrated significant financial improvement, with revenue surging 111% to $2.0 million, gross margin expanding to 25%, SG&A expenses reducing by 25%, and net loss narrowing by 48% to $1.2 million, strengthening the cash position to $1.1 million Q1 2025 vs. Q1 2024 Financial Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2.0 million | $1.0 million | +111% | | Gross Profit | $0.5 million | $0.2 million | +150% | | Gross Margin | 25% | 23% | +2 p.p. | | SG&A Expenses | $1.6 million | $2.2 million | -25% | | Net Loss | ($1.2 million) | ($2.2 million) | +48% Improvement | - The decrease in SG&A expenses was primarily due to lower salaries, benefits, stock-based compensation, reduced headcount, and lower legal and rent expenses[10](index=10&type=chunk) - Cash and cash equivalents increased to **$1.1 million** as of March 31, 2025, from **$0.5 million** at the end of 2024, bolstered by a **$2.6 million** financing round in January 2025[12](index=12&type=chunk) - Net cash used in operating activities improved to **$1.2 million** for the quarter, compared to **$1.7 million** in the prior year period[13](index=13&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The financial statements for Q1 2025 reflect a strengthened balance sheet with increased cash and inventory, a significantly reduced net loss, and improved operating cash flow [Balance Sheets](index=4&type=section&id=Balance%20Sheets) As of March 31, 2025, Expion360's balance sheet showed total assets of $9.2 million and total liabilities of $6.0 million, with key changes including an increase in cash and cash equivalents to $1.1 million and a rise in inventory to $6.0 million, improving total stockholders' equity from $2.5 million to $3.2 million Selected Balance Sheet Data (As of March 31, 2025) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,092,607 | $547,565 | | Inventory | $6,036,033 | $4,831,461 | | Total Assets | $9,242,433 | $9,107,388 | | Total Liabilities | $6,045,829 | $6,589,064 | | Total Stockholders' Equity | $3,196,604 | $2,518,324 | [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) For the three months ended March 31, 2025, the company reported a net loss of $1.15 million, or ($0.37) per share, a significant improvement from the $2.19 million net loss, or ($31.30) per share, in the same period of 2024, driven by a 111% increase in net sales to $2.05 million and reduced operating expenses Q1 2025 Income Statement Summary | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $2,049,331 | $971,859 | | Gross Profit | $501,567 | $222,522 | | Loss from Operations | ($1,147,868) | ($1,966,953) | | Net Loss | ($1,151,998) | ($2,192,940) | | Net Loss Per Share | ($0.37) | ($31.30) | [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash used in operating activities improved to $1.2 million, with a net inflow of $1.8 million from financing activities, resulting in a net increase in cash and cash equivalents of $0.5 million, ending the quarter with a balance of $1.1 million Q1 2025 Cash Flow Summary | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,228,934) | ($1,671,918) | | Net cash provided by investing activities | $2,750 | $77,134 | | Net cash provided by / (used in) financing activities | $1,771,226 | ($74,781) | | **Net change in cash and cash equivalents** | **$545,042** | **($1,669,565)** | - The primary source of financing cash flow was **$1.78 million** in net proceeds from the issuance of common stock[26](index=26&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on the Q1 2025 conference call, an overview of Expion360's business in LiFePO4 batteries, and a standard forward-looking statements disclaimer [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Expion360 hosted a conference call and webcast on Thursday, May 15, 2025, at 4:30 p.m. Eastern Time to discuss the first quarter 2025 financial results, with dial-in details and a webcast link provided for participation and replay - A conference call to discuss Q1 2025 results was held on **May 15, 2025**, with replay information available through **May 29, 2025**[14](index=14&type=chunk)[15](index=15&type=chunk) [About Expion360](index=3&type=section&id=About%20Expion360) Expion360 is a Redmond, Oregon-based company specializing in premium lithium iron phosphate (LiFePO4) batteries and accessories, serving the recreational vehicle, marine, Light EV, and residential energy storage markets through a network of over 300 dealers, wholesalers, and OEMs - Expion360 is an industry leader in premium LiFePO4 batteries for RVs, marine applications, and residential energy storage[16](index=16&type=chunk) - The company's batteries are noted for being **half the weight** of lead-acid batteries while providing **three times the power** and **ten times the charging cycles**[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, cautioning that the report includes forward-looking statements regarding business prospects, growth, and market expectations, which are not guarantees of future performance and are subject to various risks and uncertainties - The report contains forward-looking statements concerning business prospects, product development, and growth expectations, which are subject to risks and uncertainties[19](index=19&type=chunk)

Core Insights - Expion360 Inc. reported a significant revenue growth of 111% year-over-year for Q1 2025, reaching $2.0 million, marking the fifth consecutive quarter of robust revenue growth [4][8][9] - The company began shipping its e360 Home Energy Storage Solutions (HESS) in January 2025, which is expected to enhance its market position in the residential energy sector [5][9] - The RV market is rebounding, with a reported 14% increase in total RV shipments in Q1 2025, contributing to the company's revenue growth [4][8] Financial Highlights - Revenue for Q1 2025 totaled $2.0 million, up from $1.0 million in Q1 2024, and increased by 3% sequentially from Q4 2024 [8][9] - Gross profit for the quarter was $0.5 million, representing 25% of revenue, compared to 23% in the prior year [10] - Selling, general, and administrative expenses decreased by 25% to $1.6 million from $2.2 million in the prior year, primarily due to reductions in salaries, benefits, and legal fees [11] Operational Developments - The company has taken proactive measures to prepare for growth by increasing inventory levels by 6-12 months early in the quarter to mitigate potential tariff impacts [6] - Expion360 is working on diversifying its supply chain and aims to onshore the manufacturing of most components to the U.S. [6] - The company closed a $2.6 million registered direct offering and private placement, strengthening its balance sheet for future growth initiatives [7][13] Market Outlook - The company anticipates continued growth in the RV market throughout 2025, supported by strong demand for its products [4] - Expion360 is focused on expanding its sales across its product portfolio and developing new technologies and batteries [7] - The company expects to announce additional milestones in the coming months, with substantial purchase orders already in hand [7]

Core Points - Expion360 Inc. will hold a conference call on May 15, 2025, to discuss its Q1 financial results and 2025 milestones [1][2] - The call will be hosted by CEO Brian Schaffner and will include a presentation and Q&A session [2] - Expion360 specializes in lithium iron phosphate (LiFePO4) batteries for various applications including recreational vehicles and residential energy storage [3] Company Overview - Expion360 is recognized as a leader in premium lithium-ion battery technology, offering products that are lighter and more powerful than traditional lead-acid batteries [4] - The company's batteries provide three times the power and ten times the charging cycles compared to standard options, emphasizing superior design and reliability [4] - Expion360's products are available through over 300 dealers and OEMs across the United States [5]

Financial Data and Key Metrics Changes - Revenue in Q4 2024 totaled $2 million, an increase of 131% from $0.9 million in the prior year period, primarily due to increased OEM sales [29] - Gross profit in Q4 2024 was $438,552, or 22.1% of revenue, compared to $205,114, or 23.9% of revenue in the prior year, with the decrease attributed to OEM customer discounts [30] - Net loss in Q4 2024 was $251,647, an 88% improvement from a net loss of $2.2 million in the same year-ago period, driven by sales growth [31] - Full year 2024 revenue totaled $5.6 million, a decrease of 6% from $6.0 million in the prior year, mainly due to decreases in the consumer market [32] - Full year 2024 net loss was $13.5 million, compared to a net loss of $7.5 million in the prior year, impacted by a one-time expense related to a warrant feature [35] Business Line Data and Key Metrics Changes - The E360 product line is noted as a preferred conversion solution for lead acid batteries, with significant sales growth and over 300 customers across the U.S. [12] - The home energy storage solutions (HESS) product line is expected to benefit from a fast-growing market, with shipments beginning in January 2025 [14][27] - The RV market is recovering, with September 2024 RV shipments up 7.7% year over year, indicating healthy momentum [20] Market Data and Key Metrics Changes - The home energy market is projected to surpass $123 billion globally by 2029, presenting a significant opportunity for the company [28] - The company anticipates generating incremental revenue of approximately $5 million for fiscal year 2025 from new OEM partnerships and distributors [38] Company Strategy and Development Direction - The company is focused on creating energy storage solutions and plans to leverage its strong reputation in the lithium battery space to broaden distribution channels [10][14] - A partnership with Neovolta is being explored to engineer a U.S.-based battery manufacturing facility, which is timely given recent tariff implementations [15][16] - The company aims to enhance its product offerings with new features and improved energy density while developing unique OEM-centric form factors [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025 and beyond, highlighting strategic supplier selections by multiple RV OEMs [37] - The anticipated revenue growth from new partnerships is expected to increase gross profits by an estimated $1.4 million for fiscal year 2025 [38] Other Important Information - The company closed a registered direct offering in January 2025, with gross proceeds of approximately $2.6 million, intended for working capital and growth initiatives [18][36] - The company has 11 patents pending, indicating a robust intellectual property portfolio [24] Q&A Session Summary Question: What products and customers drove the performance in Q4? - Revenue growth was driven by expanding and new OEM relationships, with unique product features contributing to this performance [43][44] Question: Can you talk about the gross margin profile in fiscal year 2025? - Historically, the company has operated with gross margins just above 20%, and management believes home energy storage market sales will help increase these levels [45][46] Question: What has been done to hedge risks related to tariffs? - The company increased inventory in anticipation of tariffs and worked with suppliers to share the tariff burden, passing some costs to customers [47][48] Question: Any update on new OEM partners and customers? - The company is seeing growth with new OEMs and established relationships, driven by an expanded product line and features [51][52]

Financial Data and Key Metrics Changes - Revenue in Q4 2024 totaled $2 million, an increase of 131% from $0.9 million in the prior year period, primarily due to increased OEM sales [29] - Gross profit in Q4 2024 was $438,552, or 22.1% of revenue, compared to $205,114, or 23.9% of revenue in the prior year, with the decrease attributed to OEM customer discounts [30] - Net loss in Q4 2024 was $251,647, an 88% improvement from a net loss of $2.2 million in the same year-ago period, driven by sales growth [31] - Full year 2024 revenue totaled $5.6 million, a decrease of 6% from $6.0 million in the prior year, mainly due to decreases in the consumer market [32] - Full year 2024 net loss was $13.5 million, compared to a net loss of $7.5 million in the prior year, impacted by a one-time expense related to a warrant feature [35] Business Line Data and Key Metrics Changes - The E360 product line is noted as a preferred conversion solution for lead acid batteries, with significant sales growth and over 300 customers across the U.S. [12] - The home energy storage solutions (HESS) product line is expected to benefit from a fast-growing market, with shipments beginning in January 2025 [14][27] - The RV market is recovering, with September 2024 RV shipments up 7.7% year over year, indicating healthy momentum [20] Market Data and Key Metrics Changes - The home energy market is projected to surpass $123 billion globally by 2029, presenting a significant opportunity for the company [28] - The company anticipates generating incremental revenue of approximately $5 million for fiscal year 2025 from new OEM partnerships and distributors [38] Company Strategy and Development Direction - The company is focused on expanding its distribution channels and leveraging its reputation in the lithium battery space [14] - A partnership with Neovolta is being explored to engineer a U.S.-based battery manufacturing facility, which is timely given recent tariff implementations [15][16] - The company aims to enhance its product offerings and features to penetrate the OEM market further [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025 and beyond, highlighting new OEM partnerships and the demand for high-quality lithium battery technology [37] - The anticipated revenue growth from new partnerships is expected to increase gross profits by an estimated $1.4 million for fiscal year 2025 [38] Other Important Information - The company closed a registered direct offering in January 2025, with gross proceeds of approximately $2.6 million, intended for working capital and growth initiatives [18] - The company has 11 patents pending, indicating a robust intellectual property portfolio [24] Q&A Session Summary Question: What products and customers drove the performance in Q4? - Revenue growth was driven by expanding and new OEM relationships, with unique product features contributing to this performance [43][44] Question: Can you talk about the gross margin profile in fiscal year 2025? - Historically, the company has operated with gross margins just above 20%, and management believes home energy storage market sales will help increase these levels [45][46] Question: What has been done to hedge risks related to tariffs? - The company brought in more inventory in anticipation of tariffs and worked with suppliers to share the tariff burden, passing some costs to customers [47][48] Question: Any update on new OEM partners and customers? - The company is seeing growth with new OEMs and established relationships, driven by an expanded product line and features [51][52]