Expion360 (XPON) - 2025 Q1 - Quarterly Results

Q1 2025 Performance Overview 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 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][7] - Strengthened the balance sheet by closing a $2.6 million registered direct offering and private placement[7][6] Management Commentary 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] - The company began production shipments of its LiFePO4 battery HESS products, targeting residential and small business customers for creating stable micro-energy grids[4] - 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] - The company expects quarterly sequential growth to continue, supported by a strong balance sheet, substantial purchase orders, and growing customer interest[6] Q1 2025 Financial Results 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 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] - 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] - 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] Financial Statements 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 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 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 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] Additional Information 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 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][15] About Expion360 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] - 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] Forward-Looking Statements 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]