Core Insights - Expion360 Inc. reported a significant sales growth of 134% year-over-year, reaching $3.0 million in Q2 2025, marking the sixth consecutive quarter of sales growth [4][6][7] - The increase in sales was primarily driven by strong demand in the RV market and accessory sales through integrator partners [6][11] Financial Performance - Net sales for the first half of 2025 totaled $5.0 million, up 124% from $2.2 million in the same period of 2024 [11] - Gross profit for Q2 2025 was $0.6 million, representing a gross margin of 21%, down from 25% in Q2 2024 [8][6] - Selling, general, and administrative expenses were $2.0 million in Q2 2025, a decrease as a percentage of sales from 157% in Q2 2024 to 66% in Q2 2025 [9][6] - The net loss for Q2 2025 was $1.4 million, a 38% improvement from $2.2 million in the prior year period [10][6] Operational Highlights - The company experienced two of the most successful sales months in its history during Q2 2025, contributing to exceptional sales momentum [4] - The Home Energy Storage Solutions (HESS) product line began production earlier in the year, with one product achieving UL9540 certification, which is crucial for tax credit eligibility in states like California [5][4] - The company is actively working on diversifying its supply chain and has transitioned some products to U.S.-based manufacturers to mitigate tariff impacts [5][4] Compliance and Future Outlook - Expion360 has regained compliance with Nasdaq Listing Rule 5550(a)(2) as of August 13, 2025, following a period of non-compliance [16][17] - The company is well-positioned to execute key growth initiatives, including expanding OEM partnerships and further developing its HESS product line [5][4]

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 creating energy storage solutions and plans to leverage its strong reputation in the lithium battery space to broaden distribution channels [10][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 with new features and improved energy density while developing unique OEM-centric form factors [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025 and beyond, highlighting strategic supplier selections by multiple RV OEMs [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][36] - 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 increased 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]