UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number 001-41347 EXPION360 INC. (Exact name of registrant as specified in its charter) Nevada (state or other jurisdiction of incor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number 001-41347 EXPION360 INC. (Exact name of registrant as specified in its charter) Nevada (state or other jurisdiction of incorporat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or | Securities registered pursuant to Section 12(b) of the Act: | | | | --- | --- | --- | | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | Common Stock, $.001 par | XPON | The NASDAQ Stock Market LLC | | value | | | ☐ TRANSITION REPORT PURSUANT TO SECT ...

Market Growth and Trends - The North American RV market is projected to grow from approximately $33.95 billion in 2021 to $59.16 billion by 2027, at a CAGR of 9.7%[23]. - The global lithium-ion battery market is expected to grow at a CAGR of 13.1% from roughly $44.5 billion in 2022 to $135.1 billion by 2031[24]. - The U.S. electric vehicle market is projected to reach $823.75 billion by 2030, growing at a CAGR of 18.2%[22]. Product Development and Sales - Expion360 focuses on lithium iron phosphate (LiFePO4) batteries for RV and marine applications, with plans to expand into home energy storage and industrial applications[17]. - Expion360's e360 product line has shown rapid sales growth since its launch in December 2020, becoming a preferred solution for lead-acid battery conversion[20]. - The e360 Home Energy Storage system is expected to provide significant revenue potential with recurring income opportunities for the company and its sales partners[20]. - Expion360 introduced the AURA POWERCAP™ 600 and AURA POWERCAP™ 800 in January 2023, designed to convert existing lithium batteries into mobile power stations[34]. - New products, AURA POWERCAP™ 600 and AURA POWERCAP™ 800, were introduced in January 2023, with pre-orders starting in Q1 2023 and anticipated deliveries in Q2 2023[160]. Financial Performance - The company generated net losses of $7,536,540 and $4,720,858 for the years ended December 31, 2022 and 2021, respectively[63]. - Net sales for the year ended December 31, 2022, increased by $2.6 million, or 58.6%, reaching $7.2 million compared to $4.5 million in 2021[182]. - Cost of sales for the year ended December 31, 2022, rose by $2.0 million, or 69.7%, totaling $4.9 million, with cost of sales as a percentage of sales increasing by 4.5%[184]. - Gross profit for the year ended December 31, 2022, increased by $643,000, or 39.1%, to $2.3 million, while gross profit as a percentage of sales decreased from 36.4% in 2021 to 31.9% in 2022[185]. - Selling, general, and administrative expenses surged by $5.3 million, or 183%, to $8.2 million for the year ended December 31, 2022, primarily due to costs associated with growth and the initial public offering[186]. Operational Challenges - The company has a substantial doubt about its ability to continue as a going concern, as indicated by its independent auditors in their report[66]. - The company relies on a limited number of ports for raw material shipments, which could impact distribution and revenue due to potential disruptions[61]. - The company has experienced increased shipping costs due to rising fuel prices and COVID-19-related port shutdowns, impacting overall operational costs[77]. - The COVID-19 pandemic has caused disruptions in supply chains and increased operational costs due to preventive measures, affecting overall business performance[71]. - The company is currently experiencing global shortages and supply disruptions of electronic battery components, which could materially impact its business and financial condition[85]. Supply Chain and Manufacturing - Approximately 85% of inventory purchases in 2022 were made from foreign suppliers in China and Hong Kong, indicating a high dependency on a limited number of suppliers[81]. - The company plans to onshore manufacturing of most components to the U.S., enhancing flexibility and responsiveness to market demands[30]. - The company operates one battery production line at its headquarters in Redmond, Oregon, and any disruption could lead to delays in fulfilling customer orders[88]. - The company has secured a secondary source for lithium iron phosphate cells from a supplier in Denmark, diversifying its supply chain[166]. Regulatory and Compliance Risks - The company’s products are subject to strict government regulations, including inspections and compliance with environmental health and safety standards[49]. - The company has passed UL 1973 certification for its Group 24 and Group 27 batteries in August 2022 and for its custom 360Ah battery in February 2023[50]. - The company has implemented policies and procedures to ensure compliance with regulations governing the transportation of lithium-ion batteries, categorized as "dangerous goods"[49]. - The company is required to comply with Section 404 of Sarbanes-Oxley by the end of the fiscal year 2023, which may involve costs for improving internal control systems[124]. Management and Governance - Leadership changes in January 2023 included the appointment of Brian Schaffner as CEO and Greg Aydelott as CFO, indicating a strategic shift in management[158]. - The company relies on its senior management team and key employees, with significant attrition posing risks to business continuity and operational results[107]. - The company has broad discretion in the use of net proceeds from its initial public offering, which may not align with shareholder expectations[125]. Future Outlook and Risks - The company’s growth strategy includes significant investments in sales, marketing, and R&D, which may not lead to immediate profitability[64]. - Future expansion into international markets is uncertain and may be hindered by local regulations and the need for distribution partnerships[75]. - The uncertainty in global economic conditions, including inflation and rising interest rates, could adversely affect customer demand and pricing for products[77]. - Changes in tax laws or rulings could materially impact the company's financial position and cash flows, as seen with the changes enacted in December 2017 affecting tax obligations[108]. Shareholder and Capital Structure - The company has never declared or paid any dividends on its common stock and does not anticipate doing so in the foreseeable future, opting instead to retain earnings for business growth[143]. - As of March 27, 2023, the company had 200 million shares of common stock authorized, with 193,151,434 unissued, indicating potential for future dilution through equity offerings[114]. - The trading price of the company's securities may be volatile, influenced by market conditions and analyst recommendations, which could affect liquidity and stockholder confidence[111].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number 001-41347 EXPION360 INC. (Exact name of registrant as specified in its charter) Nevada (state or other jurisdiction of incor ...

Sales Performance - The company reported a 121.7% increase in sales for the three months ended June 30, 2022, amounting to approximately $1.21 million compared to the same period in 2021[158]. - For the six months ended June 30, 2022, sales increased by 132.0%, or approximately $2.48 million, attributed to expanded product offerings and distribution network[158]. - The VPR 4EVER product line has shown rapid sales growth and is positioned as a preferred conversion solution for lead-acid batteries in the RV/Marine industry[135]. - The company has established strong distribution channels, including a relationship with Camping World, which represents around 25% of all new RVs sold nationwide[145]. Financial Performance - For the three months ended June 30, 2022, the net loss was $4.09 million, compared to a net loss of $130,000 for the same period in 2021, indicating a significant increase in losses[164]. - Total selling, general, and administrative expenses for the three months ended June 30, 2022, were $3.62 million, up from $417,426 in the same period in 2021, reflecting increased investments in human resources and business development[162]. - Cash flows used in operating activities for the six months ended June 30, 2022, were negative $2.73 million, compared to negative cash flows of approximately $917,000 for the same period in 2021[170]. - The company recognized approximately $2.1 million in non-cash expenses related to stock-based compensation for the three and six months ended June 30, 2022, which did not exist in the corresponding periods in 2021[164]. - Interest expense attributable to debt obligations totaled $193,402 for the three months ended June 30, 2022, compared to $84,569 for the same period in 2021, reflecting higher average debt balances[163]. Capital and Cash Management - Cash and cash equivalents as of June 30, 2022, were approximately $10.39 million, a substantial increase from $773,000 as of December 31, 2021[165]. - Cash provided by financing activities was approximately $12.48 million for the six months ended June 30, 2022, compared to $1.41 million for the same period in 2021[172]. - The company anticipates spending between $450,000 and $950,000 in 2022 for capital purchases related to expanding production facilities and building new assembly lines[171]. - The company expects cash flows from operations and proceeds from the initial public offering to be sufficient to meet anticipated cash needs for at least the next fifteen months[168]. Cost and Expenses - The cost of sales for the three months ended June 30, 2022, increased by 142.3%, or approximately $879,000, compared to the same period in 2021[159]. - Gross profit as a percentage of sales decreased to 32.1% for the three months ended June 30, 2022, down from 37.9% in the same period in 2021[160]. - Selling, general, and administrative expenses increased by 767.6%, or approximately $3.2 million, for the three months ended June 30, 2022, compared to the same period in 2021[161]. Strategic Initiatives - The company completed an initial public offering on April 1, 2022, raising total gross proceeds of $17,267,250 from the sale of 2,466,750 shares at $7.00 per share[146]. - The company plans to expand into the home energy storage market with the e360 Home Energy Storage system, targeting entry-level customers with a modular design[144]. - The company aims to onshore manufacturing of most components and assemblies to the United States, enhancing flexibility and responsiveness to market demands[133]. Current Assets and Liabilities - As of June 30, 2022, current assets exceeded current liabilities by approximately $14.2 million, compared to $3.2 million as of December 31, 2021[165].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number 333-262285 EXPION360 INC. (Exact name of registrant as specified in its charter) Nevada 81-2701049 Indicate by check mark whethe ...