Expion360 (XPON) - 2024 Q4 - Annual Results

Expion360 Fourth Quarter and Full Year 2024 Financial Results 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 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] - Signed a non-binding letter of intent with NeoVolta Inc. for a potential collaboration on a U.S.-based battery manufacturing facility[4][6] - Expanded customer base by partnering with new OEMs like Scout Campers and adding a new distributor[4][5] - Strengthened the balance sheet by closing a $2.6 million registered direct offering and private placement[4][3] Management Commentary 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] - New OEM customers, including Scout Campers, Alaskan Campers, and K-Z Recreational Vehicles, are driving demand for the company's lithium battery technology[5] - Production shipments for the Home Energy Storage Solutions (HESS) product line began in January 2025, with expected benefits from government incentives[7] - The company is exploring a collaboration with NeoVolta to engineer a U.S.-based battery manufacturing facility and develop new battery designs[6] Financial Performance 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 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] - The decrease in gross margin was attributed to customer discounts issued for higher-volume purchases by OEMs[10] Full Year 2024 Financial Summary 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] - 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] Financial Position and Cash Flow 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] Business Outlook 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] - The anticipated revenue growth is expected to increase gross profits by an estimated $1.4 million for fiscal year 2025[8] - 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] Conference Call Information 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 | About Expion360 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] - Expion360 batteries offer half the weight, three times the power, and ten times the charging cycles compared to standard lead-acid batteries[21] - Products are distributed through a network of more than 300 dealers, wholesalers, private-label customers, and OEMs across the country[22] Financial Statements 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 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 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 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 |