This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about our future results of operations and financial position, our operational performance, our anticipated growth and business strategy, our future capital expenditures and debt service obligations, the projected costs, prospects and plans and objectives of management for future operations, including regarding expect ...

Financial Data and Key Metrics Changes - The company achieved record annual revenue of $380 million, a 24% increase year-over-year, with fourth quarter revenue reaching $113.4 million, reflecting a strong growth margin of 36.6% [11][27] - Gross profit for Q4 2024 was $41.5 million, an 80% improvement from $23 million in Q4 2023, resulting in a gross margin of 36.6%, up from 22% year-over-year [28][29] - The adjusted EBITDA for Q4 2024 was $8.6 million, compared to a negative $2.6 million in the prior year period, indicating effective strategic execution [35] Business Line Data and Key Metrics Changes - The company reported a significant increase in email revenue, with a 123% year-over-year growth [11] - The backlog grew to $401.3 million, driven by regional demand for technology [19] - The company maintained a focus on improving efficiency and profitability, executing strategies in EMEA and AIPAC while implementing cost-cutting measures in the U.S. [14][15] Market Data and Key Metrics Changes - In the EMEA region, revenue increased by 123% year-over-year to $187.7 million, accounting for almost half of total revenue [37] - U.S. revenues rose 360% year-over-year from $3.1 million in 2023 to $14.4 million in 2024, contributing 4% of total revenue [38] - Revenue in the Asia Pacific region declined by 19% year-over-year, from $219.1 million in 2023 to $177.7 million in 2024, due to strategic repositioning away from low-margin segments [39] Company Strategy and Development Direction - The company aims to achieve sustainable profitability by focusing on cash flow positivity and maintaining strong gross margins while expanding to meet customer demand [15][46] - The Huzhou State 3.2% expansion project is expected to add up to 2 gigawatt hours of production capacity, enhancing the company's ability to meet high demand [16][45] - The company is committed to innovation, with advancements in silicon-based cell technologies and all solid-state batteries [10][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue as a going concern, citing improved operating results and stronger cash positioning [36] - The company expects 2025 revenue to increase by 18% to 25%, with a target range of $450 million to $475 million [44] - Management highlighted the importance of strategic partnerships and technology innovation to capitalize on the growing electrification trend [48] Other Important Information - The company faced challenges in 2024, including a difficult financing environment and supply constraints, but responded with strategic cost control [22] - The company reported a GAAP net loss of $82.3 million for Q4 2024, compared to a net loss of $24.6 million in Q4 2023 [31] Q&A Session Summary Question: What are the expectations for revenue growth in 2025? - The company expects revenue to increase by 18% to 25% year-over-year, with guidance in the range of $450 million to $475 million [44] Question: How is the company addressing challenges in the APAC region? - The company is strategically repositioning away from low-margin segments in China and India, focusing on more profitable opportunities [39] Question: What are the key drivers for growth in the EMEA market? - Strong commercial traction in Italy, Germany, and other Western European markets is driving growth, reflecting continued demand for high-performance battery systems [37]

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]

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]

FREMONT, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- Enovix Corporation ("Enovix") (Nasdaq: ENVX), a global high-performance battery company, today announced the completion of its second milestone, triggering a payment for sample battery cells shipped under a development agreement executed in October 2024 with a leading smartphone OEM. The samples were customized to specific requirements of the OEM, including cycle life, fast charge and energy density levels which Enovix believes are superior to any product ...

Core Viewpoint - The supply and price fluctuations of battery metals such as cobalt, nickel, and copper are raising new market concerns, driven by various regulatory changes and geopolitical factors affecting supply chains and production costs [1][3]. Group 1: Cobalt Market Dynamics - The Democratic Republic of Congo (DRC) dominates global cobalt supply, accounting for over 78%, and its upcoming export ban in February 2025 has led to a dramatic price surge from 162,000 CNY/ton to 260,000 CNY/ton, a rise of over 60% [3]. - The DRC government may extend the export ban to maintain high prices, which, along with cooperation with Indonesia, signals long-term supply concerns [3]. - The price increase in cobalt directly impacts battery cathode material costs, with prices for ternary precursors (523 and 622 types) rising by 30% and 28%, respectively, and lithium cobalt oxide increasing by 20% [3][4]. Group 2: Nickel Supply Constraints - Indonesia and the Philippines, which together account for over 70% of global nickel supply, are tightening policies, with Indonesia raising nickel ore tax rates and the Philippines planning to ban raw ore exports [6]. - These policy changes have led to increased mining costs and a supply gap of 5,000 tons for nickel sulfate in Q1, pushing nickel prices upward [6]. - The rising nickel prices are affecting the cost of nickel sulfate and may force automotive companies to reassess their technology routes due to increased procurement costs of 15%-20% for smelters [7]. Group 3: Copper Market Fluctuations - The global copper market is experiencing significant volatility, with prices reaching historical highs, driven by expectations of potential high tariffs on imported copper in the U.S. [8]. - Approximately 500,000 tons of copper are currently being redirected to the U.S. market, exacerbating supply tightness in non-U.S. regions, particularly Asia [8]. - The continuous rise in copper prices translates to cost pressures for battery manufacturers, as copper foil constitutes 10%-15% of total battery costs, thereby squeezing profit margins [8][2].

Financial Data and Key Metrics Changes - Total revenue grew 17% year-over-year to $12.2 million, marking the first quarterly year-over-year revenue growth in two years [13][31] - OEM sales increased by 61% to $6.2 million from $3.9 million, while DTC sales declined to $5.7 million from $6.6 million due to macroeconomic pressures [31][32] - Gross profit rose 12.5% to $2.5 million, with a gross profit margin of 20.8%, although gross margin declined by 80 basis points year-over-year due to higher material costs [33] - Net loss was $9.8 million, compared to a net income of $3.3 million in the previous year, resulting in a diluted net loss of $1.39 per share [34] - Adjusted EBITDA was negative $2.3 million, worse than the negative $1.8 million reported last year [35] Business Line Data and Key Metrics Changes - OEM sales growth was driven by increased adoption of current products and new business acquisitions [31][32] - DTC segment sales decline reflects ongoing macroeconomic pressures impacting consumer demand [32] Market Data and Key Metrics Changes - The RV market continues to face challenges, but there are signs of increased adoption of premium products as manufacturers reintegrate add-ons into their units [15] - The trucking industry is identified as a significant growth opportunity, with partnerships leading to fleet-wide implementations of Dragonfly Energy's solutions [16][18] Company Strategy and Development Direction - The company has launched a corporate optimization program to focus on near-term revenue-generating opportunities and accelerate the path to profitability [9][11] - A debt restructuring has enhanced financial flexibility, extending debt maturity to October 2027 and reclassifying debt as long-term [8] - The company is diversifying its revenue streams beyond the RV sector, particularly targeting the trucking industry and exploring new markets through partnerships [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA by the fourth quarter of 2025, driven by growth in the RV and trucking markets [35][36] - The company is optimistic about the momentum in diversification efforts and the potential for significant revenue contributions in 2025 [36] Other Important Information - The company has promoted Dr. Vick Singh to Chief Operating Officer to oversee operational efficiencies and the execution of the corporate optimization program [11][12] - The Stryten Energy partnership is expected to provide access to new markets, although meaningful revenue from this collaboration is not anticipated until 2026 or later [68] Q&A Session Summary Question: Clarification on EBITDA profitability target for Q4 - Management expects the entire fourth quarter to be adjusted EBITDA positive [40] Question: Contingency plans if market conditions do not improve - Management indicated that they are not overly reliant on contingency plans, as they are optimistic based on the current pipeline of opportunities [42] Question: Update on dry manufacturing business - The focus has shifted to collaborating with customers who can produce cells from the electrodes provided by the company, rather than producing cells in-house [46][47] Question: Impact of tariffs on profitability guidance - Management confirmed that tariff impacts have been accounted for in profitability projections, noting that their non-tariffable costs are lower than industry averages [49][50] Question: Trends in the RV market and re-contenting - Management noted a modest growth forecast for the RV industry, with wider adoption of their products among core customers [57][58] Question: Update on the Stryten licensing deal - The relationship is active, focusing on product development, but significant revenue is not expected until 2026 or later [68]

Financial Data and Key Metrics Changes - The company reported total revenue of $10.6 million for Q4 2024, a 35% increase from Q3 2024 and a 170% increase from Q4 2023 [18][20] - Full-year revenue for 2024 reached $24.2 million, representing a 167% increase from $9.1 million in 2023 [20][36] - Product revenue in Q4 2024 was $10.3 million, a 71% sequential increase and nearly 1,000% increase year-over-year from $0.9 million in Q4 2023 [33][34] - Gross margin improved to negative 21% in Q4 2024 from negative 65% in Q3 2024 and negative 98% in Q4 2023 [38] - Operating expenses for Q4 2024 were $9.5 million, a 55% increase from Q3 2024 and a 62% increase year-over-year [40] Business Line Data and Key Metrics Changes - The company shipped to 98 customers in Q4 2024, with 53 being new to the Amprius platform [17] - The light electrical vehicle market contributed about 25% of Q4 revenue, with expectations for significant growth in this segment [22][116] - The company has a high-performance commercial battery portfolio with 14 different SKUs available [16][19] Market Data and Key Metrics Changes - 77% of Q4 revenue came from outside the United States, compared to 22% in the same period last year [18] - The light electrical vehicle market is projected to reach approximately $136 billion by 2029 [22] - The global drone market is expected to surge from $18 billion in 2023 to $213 billion by 2032 [28] Company Strategy and Development Direction - The company aims to lead in technology innovation and product performance while ensuring world-class manufacturing capability and sufficient production capacity [52] - Amprius plans to expand its customer pipeline and drive revenue growth through additional manufacturing partnerships [54] - The company is actively working on developing a global contract manufacturing network to mitigate geopolitical risks [30][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting to deliver new high-performance batteries and engage with more customers [54] - The company is monitoring policy challenges and potential industry headwinds due to changes in federal administration [30] - Management highlighted the importance of customer qualification processes and the potential for significant revenue growth from existing customers [124][126] Other Important Information - The company ended 2024 with $55.2 million in net cash and no debt [46] - A total of $16 million in new customer purchase orders was added to the backlog in Q4 2024, providing visibility into growth for 2025 [25][88] Q&A Session Summary Question: Can you talk about the diversity of applications and customization required for customers? - Management noted three types of customers: those replacing existing batteries, those needing qualification, and those requiring certification, with confidence in converting many to purchase orders in 2025 [58][60] Question: Can you discuss your strategy for incremental contract manufacturing? - The company has successfully utilized contract manufacturing without significant capital expenditure and is exploring partnerships in Korea and Europe to diversify manufacturing locations [62][64] Question: Can you provide an update on the balance sheet activity? - The company entered a blackout period as of December 31 and has not been active in the market since then [68] Question: Can you walk us through the strategic decision to target many customers with smaller volumes? - Management emphasized that all customers have high volume potential, and engaging with more customers increases opportunities for success [72][74] Question: What is the expected revenue cadence for 2025? - Management anticipates sequential improvements in revenue throughout 2025, despite some headwinds in Q1 [135] Question: How should we think about gross margin progression for the year? - Management indicated that gross margins are expected to improve as SiCore sales contribute positively from day one [100]

Financial Data and Key Metrics Changes - The company reported total revenue of $10,600,000 for Q4 2024, a 35% increase from Q3 2024 and a 170% increase year-over-year from Q4 2023 [12][22][26] - Full-year revenue for 2024 reached $24,200,000, representing a 167% increase from $9,100,000 in 2023 [13][25] - Gross margin improved to negative 21% in Q4 2024 from negative 65% in Q3 2024 and negative 98% in Q4 2023 [26][29] - The net loss for Q4 2024 was $11,400,000, compared to $10,900,000 in Q3 2024 and $9,700,000 in Q4 2023 [29][30] Business Line Data and Key Metrics Changes - Product revenue in Q4 2024 was $10,300,000, a 71% sequential increase and nearly a 1000% increase year-over-year [23][25] - Development services and grant revenue totaled $300,000 in Q4 2024, down from $1,800,000 in Q3 2024 and $3,000,000 year-over-year [23][24] - The company shipped to 98 customers in Q4 2024, with 53 being new to the platform [12][25] Market Data and Key Metrics Changes - 77% of Q4 revenue came from outside the United States, compared to 22% in the same period last year [12][26] - The light electrical vehicle market is projected to reach approximately $136 billion by 2029, indicating significant growth potential [15] Company Strategy and Development Direction - The company aims to lead in technology innovation, ensure world-class manufacturing capability, and grow its customer pipeline to drive revenue growth [36][37] - Plans to expand the global contract manufacturing network to mitigate geopolitical risks and enhance supply chain resilience [20][46][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth throughout 2025, supported by a strong customer pipeline and ongoing projects [36][37] - The company is monitoring policy changes and potential industry headwinds due to geopolitical factors, taking actions to mitigate risks [20][21] Other Important Information - The company has over 1.8 gigawatt-hour cell manufacturing capacity and is well-equipped to deliver various battery cell types [17] - The company expects to spend $1,000,000 on supporting equipment in 2025, in addition to normal operating capital requirements [34] Q&A Session Summary Question: Can you talk about the diversity of applications and customization required for customers? - The company has 235 customers, with three types: quick replacements, those needing redesigns, and those requiring product certification, with confidence in converting many to purchase orders in 2025 [39][42][43] Question: Can you discuss your strategy for managing contract manufacturing in light of geopolitical dynamics? - The company has successfully utilized contract manufacturing without significant capital expenditure, with facilities currently in China and plans for partnerships in Korea and Europe [44][46][47] Question: Can you provide an update on the balance sheet and cash activity? - The company entered a traditional blackout period as of December 31, limiting market activity [48][49] Question: What is the strategic decision behind targeting many customers with smaller volumes? - The company engages with customers that have high volume potential, focusing on a large customer base to increase opportunities for success [54][56] Question: How do you see gross margin progression for the year? - The company expects positive movement in gross margin driven by the Sycor product line, which is gross margin positive from day one [78][80] Question: How will existing customers contribute to revenue compared to new customers? - Existing customers are expected to contribute more revenue as they progress through the qualification process, while new customer growth will be more selective [99][102]

Core Insights - HPQ Silicon Inc. and its affiliate NOVACIUM SAS have achieved significant advancements in battery technology, particularly with the GEN3 silicon-based anode batteries, which maintain over 3,000 mAh capacity after 1,000 cycles, retaining approximately 80% of their original capacity, and outperforming traditional graphite batteries by 18% in capacity [2][7][10]. Battery Performance - The GEN3 batteries exhibit a slow and linear capacity decrease over their lifespan, contrasting with typical batteries that experience rapid capacity loss initially, allowing for better lifetime performance predictions and enhanced overall battery efficiency [3][4]. - At the 1,000-cycle mark, GEN3 batteries deliver around 3,500 Ampere-hours (Ah) compared to approximately 2,700 Ah from graphite-based batteries, indicating over a 30% increase in total energy output [8][9]. Market Position and Growth Potential - The global graphite market is projected to grow from approximately 5.7 million tonnes in 2025 to 11.1 million tonnes by 2030, creating an addressable market for silicon-based materials valued between US$27.5 billion and US$55.0 billion [13]. - HPQ and NOVACIUM's silicon-based materials can replace up to 10% of graphite in existing manufacturing processes without requiring costly retooling, positioning the company to capture 5% to 10% of the total graphite market [12]. Strategic Developments - The company has acquired full ownership of a provisional patent for a one-step manufacturing process for fumed alumina and fumed titanium, essential for next-generation lithium-ion battery cathodes, enhancing its technological capabilities [16][21]. - HPQ's strategy focuses on producing silicon-based materials for the rapidly growing 3C markets (Computer, Consumer, and Communication), projected to grow from a US$12 billion market today to US$38.3 billion by 2030 [15].