Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”),
an industry leader in lithium-ion battery power storage solutions,
today reported its financial and operational results for the second
quarter ended June 30, 2024.
Second Quarter & Subsequent 2024
Financial & Operational Highlights
- Q2 2024 revenue totaled $1.3
million, up 32% sequentially from Q1 2024.
- Q2 2024 net loss totaled $2.2
million compared to a net loss of $1.5 million in the prior year
period as the Company continued to invest in new product
development and launches.
- Closed a firm commitment
underwritten public offering with gross proceeds to the Company of
approximately $10.0 million, before deducting underwriting
discounts and other estimated expenses payable by the Company.
- Announced e-commerce retail
partnership with Tractor Supply Company (“Tractor Supply”), the
largest rural lifestyle retailer in the U.S., to offer Expion360
products online for shipment to customers in 49 states.
- Announced partnership with K-Z
Recreational Vehicles (“K-Z RV”), a subsidiary of Thor Industries,
Inc., for integration of Expion360’s 51.2V 60Ah Edge Vertical Heat
Conduction™ (“VHC™”) heated batteries and new Group 27 12.8V 100Ah
VHC™ heated batteries into K-Z RV's premium offerings.
- Launched the Edge™ battery
available in both 12.8V and 51.2V configurations, featuring a slim
profile that maximizes available space without compromising
performance and is now available for preorder with shipments
expected to commence in Q3 2024.
- Received substantial preorders of
next generation Group 27 and GC2 series lithium iron phosphate
(“LiFePO4") batteries, which now include our proprietary VHC™
internal heating technology, a patent-pending innovation. Expion360
began taking pre-orders of the new Group 27 and GC2 batteries in Q1
2024 and commenced deliveries in May 2024.
- Released specifications for Home
Energy Storage Solutions.
Management Commentary
"The second quarter of 2024 was highlighted by
an important new partnership, the launch of our next generation
battery products, and continued sequential revenue growth,” said
Brian Schaffner, Chief Executive Officer of Expion360. “Taken
together, we are successfully scaling our efforts through the
introduction of new technologies, entering new retail markets, and
expanding into complementary verticals with a portfolio servicing
marine, overland and light electric vehicles. We also have two
energy storage products currently under development, which includes
undergoing the process to obtain UL safety certifications, in
addition to other requirements for various Authorities Having
Jurisdiction.
“Sales grew sequentially for a second
consecutive quarter, improving 32% from Q1 2024, while year over
year sales continued to be impacted by the downturn in the RV
market. However, the RV market is now gaining increased momentum,
with RV shipments in June 2024 up 8.4% compared to June 2023
according to the RV Industry Association. We are leveraging our
products’ superior capacity and flexibility to lead acid
competitors and introducing new batteries and improved
technologies, to capture market share as RV industry demand
returns.
“These new products and technologies include our
next generation Group 27 and GC2 batteries, which started being
delivered to customers in the second quarter of 2024. These
batteries include our proprietary VHC™ internal heating technology,
a patent-pending innovation representing a significant breakthrough
in battery performance, particularly in cold climates. We also
launched the Edge™ battery, available in both 12.8V and 51.2V
configurations, incorporating VHC™ and featuring Integrated
SmartTalk™ Bluetooth and controller area network communication,
allowing users to monitor battery performance in real-time. The
Edge™ features a slim profile with dimensions of just 4.2 inches in
height, 17.5 inches in width, and 21.9 inches in length, offering
flexibility for installation in a variety of applications and
maximizing available space without compromising performance.
“Our products can be found at more than 300
resellers across the United States, consisting of dealers,
wholesalers, private-label customers and original equipment
manufacturers (“OEMs”) who then sell our products to end consumers.
We recently announced a partnership with K-Z RV for integration of
Expion360’s 51.2V 60Ah Edge VHC heated batteries and new Group 27
12.8V 100Ah VHC™ heated batteries into K-Z RV's premium offerings,
and a new e-commerce retail partnership with Tractor Supply, the
largest rural lifestyle retailer in the United States, to offer
Expion360 products online for shipment to customers in 49 states.
We believe our lithium battery line and accessories will be
attractive to Tractor Supply customers shopping online to outfit
and upgrade their outdoor lifestyles, and the partnership expands
our market presence across the country.
“Looking ahead, as the RV market recovers, we
are well positioned for new orders with our expanding portfolio of
advanced batteries, supported by strong marketing initiatives. We
are working to secure additional partnerships to expand our list of
major resellers and enhance our market penetration.
“Most recently, we closed a public offering with
gross proceeds to the Company of approximately $10.0 million. The
net proceeds from the offering were used, in part, to fully repay
the unsecured convertible promissory note issued to 3i, LP. In
addition, the Company and Tumim Stone Capital, LLC mutually agreed
to terminate the common stock purchase agreement establishing an
equity line of credit, effective immediately upon the closing of
the public offering. Importantly, we anticipate using proceeds from
the offering to provide necessary funding to further develop our
new e360 Home Energy Storage Solutions targeting home and small
commercial solar users and installers. Our two LiFePO4 battery
storage solutions enable residential and small business customers
to create their own stable micro-energy grid and lessen the impact
of increasing power fluctuations and outages. We believe consumer
uptake of home energy storage has the potential to scale rapidly
with the introduction of products that improve price, flexibility,
and integration, while creating an opportunity to generate
meaningful recurring revenue streams and enable margin expansion in
a market that is expected to surpass $123 billion globally by
2029,” concluded Mr. Schaffner.
Second Quarter 2024 Financial
Summary
For the second quarter of 2024, net sales
totaled $1.3 million, a decrease of 25.9% from $1.7 million in the
prior year period. The decrease was primarily attributable to the
lingering effects of the year over year downturn in the RV market,
combined with customers limiting orders in anticipation of the
availability of our new products with enhanced features.
Gross profit for the second quarter of 2024
totaled $0.3 million or 25.5% as a percentage of sales, as compared
to $0.5 million or 26.3% as a percentage of sales in the prior year
period. The decrease in gross profit was primarily attributable to
decreases in sales which drove higher fixed overhead costs per
unit.
Selling, general and administrative expenses
were $2.0 million in both the second quarter of 2024 and the second
quarter of 2023.
Net loss for the second quarter of 2024 totaled
$2.2 million, or $(0.30) per share, and net loss of $1.5 million,
or $(0.21) per share in the prior year period.
First Half 2024 Financial
Summary
For the six months ended June 30, 2024, net
sales totaled $2.2 million, a decrease of 30.4% from $3.2 million
in the prior year period.
Gross profit for the six months ended June 30,
2024, totaled $0.5 million or 24.4% as a percentage of sales,
compared to $0.9 million or 27.8% as a percentage of sales in the
prior year period.
Selling, general and administrative expenses
increased to $4.2 million from $4.1 million in the prior year
period.
Net loss for the six months ended June 30, 2024,
totaled $4.4 million, or $(0.61) per share, compared to a net loss
of $3.5 million, or $(0.50) per share in the prior year period.
Cash and cash equivalents totaled $0.9 million
at June 30, 2024, compared to $3.9 million at December 31,
2023.
On August 8, 2024, the Company closed a public
offering with gross proceeds of approximately $10.0 million.
Subsequent to the closing of the public offering, 14,598,000
pre-funded warrants have been exercised for shares.
Second Quarter 2024 Results Conference
Call
Brian Schaffner, Chief Executive Officer and
Greg Aydelott, Chief Financial Officer of Expion360 will host the
conference call, followed by a question-and-answer period. The
conference call will be accompanied by a presentation, which can be
viewed during the webcast or accessed via the investor relations
section of the Company’s website here.
To access the call, please use the following
information:
|
|
Date: |
Wednesday, August 14, 2024 |
Time: |
4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) |
Dial-in: |
1-844-825-9789 |
International Dial-in: |
1-412-317-5180 |
Conference Code: |
10191292 |
Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1681427&tp_key=b45018adfd |
|
|
A telephone replay will be available commencing
approximately three hours after the call and will remain available
through August 28, 2024, by dialing 1-844-512-2921 from the U.S.,
or 1-412-317-6671 from international locations, and entering replay
pin number: 10191292. The replay can also be viewed through the
webcast link above and the presentation utilized during the call
will be available via the investor relations section of the
Company’s website here.
About Expion360
Expion360 is an industry leader in premium
lithium iron phosphate (LiFePO4) batteries and accessories for
recreational vehicles and marine applications, with residential and
industrial applications under development. On December 19, 2023,
the Company announced its entrance into the home energy storage
market with the introduction of two premium LiFePO4 battery storage
systems that enable residential and small business customers to
create their own stable micro-energy grid and lessen the impact of
increasing power fluctuations and outages. Please find the press
release here.
The Company’s lithium-ion batteries feature half
the weight of standard lead-acid batteries while delivering three
times the power and ten times the number of charging cycles.
Expion360 batteries also feature better construction and
reliability compared to other lithium-ion batteries on the market
due to their superior design and quality materials. Specially
reinforced, fiberglass-infused, premium ABS and solid mechanical
connections help provide top performance and safety. With Expion360
batteries, adventurers can enjoy the most beautiful and remote
places on Earth even longer.
The Company is headquartered in Redmond, Oregon.
Expion360 lithium-ion batteries are available today through more
than 300 dealers, wholesalers, private-label customers, and OEMs
across the country. To learn more about the Company,
visit expion360.com.
Edge, VHC, Vertical Heat Conduction and
SmartTalk are trademarks of Expion360.
© 2024 Expion360. All rights reserved.
Forward-Looking Statements and Safe
Harbor Notice
This press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which statements are
subject to considerable risks and uncertainties. The Company
intends such forward-looking statements to be covered by the safe
harbor provisions contained in the Private Securities Litigation
Reform Act of 1995. All statements other than statements of
historical facts included in this press release, including
statements about our beliefs and expectations, are "forward-looking
statements" and should be evaluated as such. Examples of such
forward-looking statements include, statements that use
forward-looking words such as "projected," "expect," "possibility,”
“believe,” “aim,” “goal,” “plan,” and "anticipate," or similar
expressions. Forward-looking statements included in this press
release include, but are not limited to, statements relating to the
Company’s expectations about the Company’s operations, future
development plans, growth prospects, product pipeline and
development, anticipated timing of commercial availability of its
products, beliefs about market size and opportunity, including
customer base, and market conditions, and the anticipated use of
proceeds from the offering. Forward-looking statements are subject
to and involve risks, uncertainties, and assumptions that may cause
the Company’s actual results, performance or achievements to be
materially different from any future results, performance or
achievements predicted, assumed or implied by such forward-looking
statements.
The Company cautions that forward-looking
statements are not historical facts and makes no guarantee of
future performance. Forward-looking statements are based on
estimates and opinions of management at the time statements are
made. The information set forth herein speaks only as of the date
hereof. The Company and its management are under no obligation, and
expressly disclaim any obligation, to update, alter or otherwise
revise any forward-looking statements following the date of this
press release, whether as a result of new information, future
events or otherwise, except as required by law.
Company Contact: Brian Schaffner,
CEO 541-797-6714 Email Contact
External Investor Relations:
Chris Tyson, Executive Vice President MZ Group - MZ North America
949-491-8235 XPON@mzgroup.us www.mzgroup.us
|
Expion360 Inc. Balance
Sheets |
|
|
June 30, 2024 (unaudited) |
|
December 31, 2023 |
Assets |
|
|
|
Current Assets |
|
|
|
Cash and cash equivalents |
$ |
902,323 |
|
|
$ |
3,932,698 |
|
Accounts receivable, net |
|
353,006 |
|
|
|
154,935 |
|
Inventory |
|
3,361,832 |
|
|
|
3,825,390 |
|
Prepaid/in-transit inventory |
|
719,286 |
|
|
|
163,948 |
|
Prepaid expenses and other current assets |
|
216,660 |
|
|
|
189,418 |
|
Total current assets |
|
5,553,107 |
|
|
|
8,266,389 |
|
|
|
|
|
Property and equipment |
|
1,212,984 |
|
|
|
1,348,326 |
|
Accumulated depreciation |
|
(467,259 |
) |
|
|
(430,295 |
) |
Property and equipment, net |
|
745,725 |
|
|
|
918,031 |
|
|
|
|
|
Other Assets |
|
|
|
Operating leases - right-of-use asset |
|
2,399,736 |
|
|
|
2,662,015 |
|
Deposits |
|
58,896 |
|
|
|
58,896 |
|
Total other assets |
|
2,458,632 |
|
|
|
2,720,911 |
|
Total assets |
$ |
8,757,464 |
|
|
$ |
11,905,331 |
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
432,550 |
|
|
$ |
286,985 |
|
Customer deposits |
|
14,094 |
|
|
|
17,423 |
|
Accrued expenses and other current liabilities |
|
278,843 |
|
|
|
292,515 |
|
Convertible note payable |
|
2,050,757 |
|
|
|
2,082,856 |
|
Current portion of operating lease liability |
|
541,145 |
|
|
|
522,764 |
|
Current portion of stockholder promissory notes |
|
700,000 |
|
|
|
762,500 |
|
Current portion of long-term debt |
|
31,990 |
|
|
|
50,839 |
|
Total current liabilities |
|
4,049,379 |
|
|
|
4,015,882 |
|
|
|
|
|
Long-term-debt, net of current portion |
|
215,731 |
|
|
|
298,442 |
|
Operating lease liability, net of current portion |
|
1,967,593 |
|
|
|
2,241,325 |
|
Total liabilities |
$ |
6,232,703 |
|
|
$ |
6,555,649 |
|
Stockholders' equity |
|
|
|
Preferred stock, par value $0.001 per share; 20,000,000 authorized;
zero shares issued and outstanding |
|
- |
|
|
|
- |
|
Common stock, par value $0.001 per share; 200,000,000 shares
authorized; 7,559,530 and 6,922,912 issued and outstanding as of
June 30, 2024 and December 31, 2023, respectively |
|
7,560 |
|
|
|
6,923 |
|
Additional paid-in capital |
|
28,026,138 |
|
|
|
26,438,524 |
|
Accumulated deficit |
|
(25,508,937 |
) |
|
|
(21,095,765 |
) |
Total stockholders' equity |
|
2,524,761 |
|
|
|
5,349,682 |
|
Total
liabilities and stockholders' equity |
$ |
8,757,464 |
|
|
$ |
11,905,331 |
|
|
|
|
|
|
|
|
|
Expion360 Inc. Statements of Operations
(Unaudited) |
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net sales |
$ |
1,278,109 |
|
|
$ |
1,725,123 |
|
|
$ |
2,249,967 |
|
|
$ |
3,232,300 |
|
Cost of sales |
|
952,646 |
|
|
|
1,270,724 |
|
|
|
1,701,982 |
|
|
|
2,334,454 |
|
Gross profit |
|
325,463 |
|
|
|
454,399 |
|
|
|
547,985 |
|
|
|
897,846 |
|
Selling, general and administrative |
|
2,004,260 |
|
|
|
1,951,664 |
|
|
|
4,193,734 |
|
|
|
4,072,559 |
|
Loss from operations |
|
(1,678,797 |
) |
|
|
(1,497,265 |
) |
|
|
(3,645,749 |
) |
|
|
(3,174,713 |
) |
|
|
|
|
|
|
|
|
Other expense |
|
|
|
|
|
|
|
Interest income |
|
(18,596 |
) |
|
|
(47,764 |
) |
|
|
(45,460 |
) |
|
|
(67,897 |
) |
Interest expense |
|
250,560 |
|
|
|
26,399 |
|
|
|
503,846 |
|
|
|
64,576 |
|
Loss on sale of property and equipment |
|
- |
|
|
|
3,426 |
|
|
|
306 |
|
|
|
3,426 |
|
Settlement expense |
|
309,000 |
|
|
|
- |
|
|
|
309,000 |
|
|
|
281,680 |
|
Other (income) / expense |
|
11 |
|
|
|
(500 |
) |
|
|
(1,189 |
) |
|
|
(394 |
) |
Total other (income) / expense |
|
540,975 |
|
|
|
(18,439 |
) |
|
|
766,503 |
|
|
|
281,391 |
|
Loss before income taxes |
|
(2,219,772 |
) |
|
|
(1,478,826 |
) |
|
|
(4,412,252 |
) |
|
|
(3,456,104 |
) |
|
|
|
|
|
|
|
|
Franchise taxes / (refund) |
|
460 |
|
|
|
(38 |
) |
|
|
920 |
|
|
|
(38 |
) |
Net loss |
$ |
(2,220,232 |
) |
|
$ |
(1,478,788 |
) |
|
$ |
(4,413,172 |
) |
|
$ |
(3,456,066 |
) |
|
|
|
|
|
|
|
|
Net loss per share (basic and diluted) |
$ |
(0.30 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.50 |
) |
Weighted-average number of common shares outstanding |
|
7,357,300 |
|
|
|
6,910,491 |
|
|
|
7,182,121 |
|
|
|
6,862,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expion360 Inc. Statements of Cash Flows
(Unaudited) |
|
|
For the Six Months Ended June 30, |
|
2024 |
|
2023 |
Cash flows from operating activities |
|
|
|
|
|
|
|
Net loss |
$ |
(4,413,172 |
) |
|
$ |
(3,456,066 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Depreciation |
|
94,866 |
|
|
|
101,992 |
|
Amortization of convertible note costs |
|
333,572 |
|
|
|
- |
|
Loss on sales of property and equipment |
|
306 |
|
|
|
3,426 |
|
Decrease in allowance for doubtful accounts |
|
- |
|
|
|
(18,804 |
) |
Stock-based settlement |
|
209,000 |
|
|
|
251,680 |
|
Stock-based compensation |
|
438,923 |
|
|
|
- |
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
Increase in accounts receivable |
|
(198,071 |
) |
|
|
(92,359 |
) |
(Increase) / decrease in inventory |
|
463,558 |
|
|
|
(437,190 |
) |
Increase in prepaid/in-transit inventory |
|
(555,338 |
) |
|
|
(19,243 |
) |
Increase in prepaid expenses and other current assets |
|
(27,242 |
) |
|
|
(12,178 |
) |
Increase in deposits |
|
- |
|
|
|
(2,795 |
) |
Increase / (decrease) in accounts payable |
|
145,566 |
|
|
|
(10,759 |
) |
Increase / (decrease) in customer deposits |
|
(3,329 |
) |
|
|
156,881 |
|
Increase / (decrease) in accrued expenses and other current
liabilities |
|
98,166 |
|
|
|
(589 |
) |
Increase in right-of-use assets and lease liabilities |
|
6,929 |
|
|
|
14,477 |
|
Net cash used in operating activities |
|
(3,406,266 |
) |
|
|
(3,521,527 |
) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchases of property and equipment |
|
(10,550 |
) |
|
|
(34,250 |
) |
Net proceeds from sales of property and equipment |
|
87,684 |
|
|
|
37,964 |
|
Net cash provided by investing activities |
|
77,134 |
|
|
|
3,714 |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
Principal payments on convertible note |
|
(365,671 |
) |
|
|
- |
|
Principal payments on long-term debt |
|
(101,560 |
) |
|
|
(136,965 |
) |
Principal payments on stockholder promissory notes |
|
(62,500 |
) |
|
|
- |
|
Net proceeds from exercise of warrants |
|
(4 |
) |
|
|
49,777 |
|
Net proceeds from issuance of common stock |
|
828,492 |
|
|
|
- |
|
Net cash provided by / (used in) financing activities |
|
298,757 |
|
|
|
(87,188 |
) |
|
|
|
|
Net change in cash and cash equivalents |
|
(3,030,375 |
) |
|
|
(3,605,001 |
) |
Cash and cash equivalents, beginning |
|
3,932,698 |
|
|
|
7,201,244 |
|
Cash and cash equivalents, ending |
$ |
902,323 |
|
|
$ |
3,596,243 |
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, |
Supplemental disclosure of cash flow
information: |
2024 |
|
2023 |
Cash paid for interest |
$ |
67,070 |
|
|
$ |
64,798 |
|
Cash paid / (refunded) for franchise taxes |
$ |
- |
|
|
$ |
(39 |
) |
|
|
|
|
|
Non-cash financing activities: |
|
|
|
|
Acquisition/modification of operating lease right-of-use asset and
lease liability |
$ |
- |
|
|
$ |
(13,993 |
) |
Issuance of common stock for payment on accrued interest |
$ |
75,811 |
|
|
$ |
- |
|
Issuance of common stock for payment on accrued compensation |
$ |
36,029 |
|
|
$ |
- |
|
Issuance of common stock for settlement shares and vested RSUs |
$ |
65 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Expion360 (NASDAQ:XPON)
Historical Stock Chart
Von Sep 2024 bis Okt 2024
Expion360 (NASDAQ:XPON)
Historical Stock Chart
Von Okt 2023 bis Okt 2024