[Expion360 Fourth Quarter and Full Year 2024 Financial Results](index=1&type=section&id=Expion360%20Fourth%20Quarter%20and%20Full%20Year%202024%20Financial%20Results) This report details Expion360's financial and operational performance for Q4 and full year 2024, including key highlights, management insights, detailed financial statements, and future business outlook [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Expion360 reported strong Q4 revenue growth of **131% year-over-year** and **43% sequentially**, driven by new products, expanded OEM relationships, initial Home Energy Storage Solutions (HESS) shipments, and a strengthened balance sheet Q4 2024 Key Metrics | Metric | Value ($) | Change (YoY) | Change (QoQ) | | :--- | :--- | :--- | :--- | | Q4 2024 Revenue | $2.0 million | ↑ 131% | ↑ 43% | - Began fulfilling purchase orders for its **Home Energy Storage Solutions (HESS)**[4](index=4&type=chunk) - Signed a non-binding letter of intent with **NeoVolta Inc.** for a potential collaboration on a **U.S.-based battery manufacturing facility**[4](index=4&type=chunk)[6](index=6&type=chunk) - Expanded customer base by partnering with **new OEMs** like Scout Campers and adding a **new distributor**[4](index=4&type=chunk)[5](index=5&type=chunk) - Strengthened the **balance sheet** by closing a **$2.6 million** registered direct offering and private placement[4](index=4&type=chunk)[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted robust sequential revenue growth driven by an expanding reseller network and new OEM partnerships, while making significant progress in Home Energy Storage Solutions (HESS) despite RV market softness - Revenue grew sequentially for the fourth consecutive quarter, improving **43%** from Q3 2024, demonstrating successful sales expansion efforts[3](index=3&type=chunk) - **New OEM customers**, including Scout Campers, Alaskan Campers, and K-Z Recreational Vehicles, are driving demand for the company's lithium battery technology[5](index=5&type=chunk) - Production shipments for the **Home Energy Storage Solutions (HESS)** product line began in January 2025, with expected benefits from government incentives[7](index=7&type=chunk) - The company is exploring a collaboration with **NeoVolta** to engineer a **U.S.-based battery manufacturing facility** and develop new battery designs[6](index=6&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) The company achieved a **131% year-over-year** revenue increase in Q4 2024, with Q4 net loss improving **88%**, despite a full-year revenue decrease and a substantial increase in full-year net loss due to a non-cash suspended liability expense [Fourth Quarter 2024 Financial Summary](index=2&type=section&id=Fourth%20Quarter%202024%20Financial%20Summary) Expion360 reported a **131% increase** in Q4 2024 revenue to **$2.0 million**, with gross profit up **114%**, and net loss significantly reduced by **88%** | Financial Metric | Q4 2024 ($) | Q4 2023 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $2.0 million | $0.9 million | ↑ 131% | | Gross Profit | $438,552 | $205,114 | ↑ 114% | | Gross Margin | 22.1% | 23.9% | ↓ 1.8 p.p. | | SG&A Expenses | $1.6 million | $2.4 million | ↓ 33% | | Net Loss | ($251,647) | ($2.2 million) | ↓ 88% | - The increase in **Q4 revenue** was primarily driven by increased sales to both existing and new OEM customers[9](index=9&type=chunk) - The decrease in **gross margin** was attributed to customer discounts issued for higher-volume purchases by OEMs[10](index=10&type=chunk) [Full Year 2024 Financial Summary](index=2&type=section&id=Full%20Year%202024%20Financial%20Summary) For the full year 2024, revenue decreased **6.0%** to **$5.6 million**, gross profit declined **25.0%**, and net loss significantly widened by **80.0%** to **$13.5 million** | Financial Metric | FY 2024 ($) | FY 2023 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $5.6 million | $6.0 million | ↓ 6.0% | | Gross Profit | $1.2 million | $1.6 million | ↓ 25.0% | | Gross Margin | 20.5% | 26.3% | ↓ 5.8 p.p. | | SG&A Expenses | $7.9 million | $8.7 million | ↓ 9.6% | | Net Loss | ($13.5 million) | ($7.5 million) | ↑ 80.0% | | Net Loss Per Share | ($21.03) | ($108.25) | N/A (split adj.) | - The **annual revenue decrease** was primarily due to softness in the recreational vehicle market during the first two quarters of the year[12](index=12&type=chunk) - The **significant increase in net loss** was primarily the result of a **$5.0 million suspended liability expense** related to a reverse stock split cash true-up provision in Series A Warrants[15](index=15&type=chunk) [Financial Position and Cash Flow](index=3&type=section&id=Financial%20Position%20and%20Cash%20Flow) As of December 31, 2024, cash and cash equivalents decreased to **$0.5 million**, and net cash used in operating activities increased to **$9.6 million** for the full year | Metric | As of Dec 31, 2024 ($) | As of Dec 31, 2023 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | $0.5 million | $3.9 million | | Net cash used in operating activities (FY) | ($9.6 million) | ($5.5 million) | - Subsequent to year-end, on January 3, 2025, the Company closed a **$2.6 million** registered direct offering and private placement to bolster its **cash position**[16](index=16&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Expion360 projects **$5.0 million** in incremental revenue and **$1.4 million** in gross profit for fiscal year 2025 from new OEM partnerships and distributors, with a strategic focus on Home Energy Storage Solutions (HESS) and new battery technologies - The company projects new OEM partnerships and distributors to generate incremental revenue of approximately **$5.0 million** for fiscal year 2025[8](index=8&type=chunk) - The anticipated revenue growth is expected to increase gross profits by an estimated **$1.4 million** for fiscal year 2025[8](index=8&type=chunk) - Future focus includes further development of the **HESS** product line and the introduction of new technologies and batteries, such as the next-generation GC2, Group 27, and new Edge batteries[8](index=8&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) A conference call to discuss Q4 and full year 2024 results will be held on **March 31, 2025**, at **4:30 p.m. Eastern Time**, with dial-in and webcast details provided Conference Call Details | Item | Details | | :--- | :--- | | **Date** | Monday, March 31, 2025 | | **Time** | 4:30 p.m. Eastern Time | | **Dial-in** | 1-844-825-9789 | | **Webcast** | [Link](https://viavid.webcasts.com/starthere.jsp?ei=1705725&tp_key=ca73831ad8) | [About Expion360](index=3&type=section&id=About%20Expion360) Expion360 is a leading provider of premium lithium iron phosphate (LiFePO4) batteries and accessories for RVs, marine, and residential energy storage, distributed through a network of over **300** dealers, wholesalers, and OEMs - Specializes in premium **lithium iron phosphate (LiFePO4)** batteries for RVs, marine, Light EV, and residential energy storage[20](index=20&type=chunk) - Expion360 batteries offer **half the weight**, **three times the power**, and **ten times the charging cycles** compared to standard lead-acid batteries[21](index=21&type=chunk) - Products are distributed through a network of more than **300 dealers**, wholesalers, private-label customers, and OEMs across the country[22](index=22&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents Expion360's detailed balance sheets, statements of operations, and statements of cash flows for the fiscal years 2023 and 2024 [Balance Sheets](index=5&type=section&id=Balance%20Sheets) As of December 31, 2024, total assets decreased to **$9.1 million** due to reduced cash, while total liabilities remained stable at **$6.6 million** with a new **$5.0 million** suspended liability, leading to a decrease in stockholders' equity to **$2.5 million** Consolidated Balance Sheets | Balance Sheet Item | Dec 31, 2024 ($) | Dec 31, 2023 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $7,841,195 | $8,266,389 | | Cash and cash equivalents | $547,565 | $3,932,698 | | Inventory | $4,831,461 | $3,825,390 | | **Total Assets** | **$9,107,388** | **$11,905,331** | | **Total Current Liabilities** | $5,847,888 | $4,015,882 | | Suspended Liability | $4,985,948 | $0 | | **Total Liabilities** | **$6,589,064** | **$6,555,649** | | **Total Stockholders' Equity** | **$2,518,324** | **$5,349,682** | [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) For the full year 2024, net sales slightly decreased to **$5.6 million**, while net loss significantly widened to **$13.5 million**, primarily due to a **$5.0 million** suspended liability expense Consolidated Statements of Operations | Income Statement Item | For Year Ended Dec 31, 2024 ($) | For Year Ended Dec 31, 2023 ($) | | :--- | :--- | :--- | | Net Sales | $5,624,939 | $5,981,134 | | Gross Profit | $1,155,228 | $1,575,523 | | Loss from Operations | ($6,753,991) | ($7,169,612) | | Suspended liability expense | $4,985,948 | $0 | | **Net Loss** | **($13,479,475)** | **($7,456,274)** | | **Net Loss Per Share** | **($21.03)** | **($108.25)** | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) For the year ended December 31, 2024, net cash used in operating activities increased to **$9.6 million**, largely offset by **$6.1 million** from financing activities, resulting in a **$3.4 million** decrease in cash and cash equivalents to **$0.5 million** Consolidated Statements of Cash Flows | Cash Flow Activity | For Year Ended Dec 31, 2024 ($) | For Year Ended Dec 31, 2023 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | ($9,562,545) | ($5,531,232) | | Net cash provided by investing activities | $113,408 | $16,578 | | Net cash provided by financing activities | $6,064,004 | $2,246,108 | | **Net change in cash** | **($3,385,133)** | **($3,268,546)** | | **Cash at end of period** | **$547,565** | **$3,932,698** |

Core Insights - Expion360 Inc. reported a sequential revenue growth of 43% in Q4 2024, totaling $2.0 million, which represents a 131% increase year-over-year from Q4 2023 [4][10][8] - The company has strengthened its balance sheet with a $2.6 million registered direct offering and private placement [4][8] - New OEM partnerships, including collaborations with Scout Campers and Alaskan Campers, are expected to drive demand for lithium-ion battery technology [5][9] Financial Highlights - Q4 2024 revenue was $2.0 million, up 131% from $0.9 million in Q4 2023 and 43% sequentially from Q3 2024 [10][8] - Gross profit for Q4 2024 was $438,552, representing 22.1% of revenue, compared to 23.9% in the prior year [11] - The net loss for Q4 2024 was $251,647, an 88% improvement from a net loss of $2.2 million in Q4 2023 [12] Yearly Performance - For the full year 2024, revenue totaled $5.6 million, a decrease of 6.0% from $6.0 million in 2023, primarily due to a downturn in the RV market [13] - Gross profit for the full year was $1.2 million, with a gross margin of 20.5%, down from 26.3% in the previous year [14] - The net loss for 2024 was $13.5 million, compared to a net loss of $7.5 million in 2023, largely due to increased expenses related to suspended liabilities and interest [16] Operational Developments - The company began shipping its Home Energy Storage Solutions (HESS) in January 2025, anticipating growth in the battery energy storage market [7][8] - Expion360 is exploring a collaboration with NeoVolta to develop a state-of-the-art battery manufacturing facility [6][9] - The company expects new OEM partnerships to generate approximately $5.0 million in incremental revenue for fiscal year 2025 [9]

REDMOND, Ore., March 18, 2025 (GLOBE NEWSWIRE) -- Expion360 Inc. (NASDAQ:XPON) (the "Company"), an industry leader in lithium-ion battery power storage, will hold a conference call on Monday, March 31, 2025, at 4:30 p.m. Eastern Time to discuss its financial results for the fourth quarter and full year ended December 31, 2024, and review ongoing initiatives and anticipated 2025 milestones. A press release detailing these results will be issued prior to the call. Expion360 Chief Executive Officer Brian Schaf ...

REDMOND, Ore., March 18, 2025 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (the “Company”), an industry leader in lithium-ion battery power storage, will hold a conference call on Monday, March 31, 2025, at 4:30 p.m. Eastern Time to discuss its financial results for the fourth quarter and full year ended December 31, 2024, and review ongoing initiatives and anticipated 2025 milestones. A press release detailing these results will be issued prior to the call. Expion360 Chief Executive Officer Brian Scha ...

REDMOND, Ore., Jan. 03, 2025 (GLOBE NEWSWIRE) -- Expion360 Inc. (NASDAQ:XPON) (the "Company"), an industry leader in lithium-ion battery power storage solutions, today announced the closing of its previously announced registered direct offering and concurrent private placement with institutional investors. The Company issued shares of Common Stock and pre-funded warrants ("Pre-Funded Warrants") in a registered direct offering. In a concurrent private placement, the Company also issued to the same investors ...

REDMOND, Ore., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (the “Company”), an industry leader in lithium-ion battery power storage solutions, today announced that it has entered into definitive agreements with institutional investors for the purchase and sale of shares of its common stock, par value $0.001 per share (“Common Stock”) and pre-funded warrants to purchase Common Stock (each, a “Pre-Funded Warrant”) in a registered direct offering. In a concurrent private placement, the Comp ...

Q4 2024 Revenue in the Range of $1.8 to $2.0 Million REDMOND, Ore., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium-ion battery power storage solutions, today announced select preliminary, unaudited financial results for the fourth quarter ended December 31, 2024. Key Financial Highlights for the Fourth Quarter of 2024 Preliminary, unaudited revenue for Q4 2024 in the range of approximately $1.8 to $2.0 million, up sequentially fr ...

REDMOND, Ore., Jan. 02, 2025 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium-ion battery power storage solutions, announced today that it has begun distribution of its e360 Home Energy Storage Solutions (“HESS”). The Company is beginning to fulfill purchase orders for its HESS to Wellspring Solar (“Wellspring”), a division of Wellspring Components, which has served as a key partner to Expion360 in connection with the HESS pilot program and test ...

Chief Executive Officer Brian Schaffner Appointed Interim CFO, Principal Financial and Accounting OfficerREDMOND, Ore., Dec. 20, 2024 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium-ion battery power storage solutions, announced today the resignation of Greg Aydelott, Chief Financial Officer of the Company, effective December 31, 2024, due to family health concerns. Mr. Aydelott intends to remain available to the Company on an ongoing basis as ...

REDMOND, Ore., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) ("Expion360" or the "Company"), an industry leader in lithium-ion battery power storage solutions, will attend the LD Micro Main Event XVII Conference being held at the Luxe Sunset Blvd Hotel in Los Angeles, CA October 29 - 30, 2024. Expion360 Chief Executive Officer Brian Schaffner will conduct in-person one-on-one meetings during the conference to discuss its new products and technologies initiatives, including its Home Energy ...