Expion360 Reports First Quarter 2024 Financial Results
Positioned for Increased Market Share & Revenue Growth with New Products and Technologies
Substantial Preorders of
2024 Anticipated Milestones Include: New Strategic Partnerships, OEM Expansion and Disruptive Product Launches Across Multiple Market Segments
- Q1 2024 Revenue totaled
$1.0 million , up 13% sequentially from Q4 2023. - Q1 2024 Net loss totaled
$2.2 million compared to a net loss of$2.0 million in the prior year period as the Company continued to invest in new product development and launches. - Received substantial preorders of next generation Group 27 and GC2 series lithium iron phosphate (“LiFePO4") batteries, which now include Expion360’s proprietary Vertical Heat Conduction™ (“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 inMay 2024 . - In
May 2024 , announced the launch of 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. - Achieved UL 1973 compliance for 450Ah EX1 batteries, reaffirming commitment to safety and innovation in the rapidly growing lithium battery industry.
- On
April 30, 2024 , released specifications for Home Energy Storage Solutions.
Management Commentary
“In the first quarter of 2024 we fortified our position as a leader in premium LiFePO4 batteries with next generation battery product launches and new technologies,” said
“First quarter sales continued to be impacted by the battery business for RVs year over year, but improved 13% sequentially from the fourth quarter. According to the
“We continue to innovate and expand our product line and have received substantial preorders of our next generation Group 27 and GC2 batteries, with shipments beginning now. These batteries include our proprietary VHC™ internal heating technology, a patent-pending innovation representing a significant breakthrough in battery performance, particularly in cold climates. VHC™ heating technology utilizes Positive Temperature Coefficient Heating Film to ensure uniform heat distribution across each cell, promoting optimal battery performance even in extreme cold conditions. The sophisticated Battery Management System provides real-time monitoring and control, enhancing operational safety and longevity in cold temperatures. The new versions also include higher amp-hour 4.0Ah and 4.5Ah cell technology, Bluetooth® and controller area network communication.
“Most recently, we announced the launch of the Edge™ battery available in both 12.8V and 51.2V configurations, incorporating VHC™ and is equipped with Integrated SmartTalk™ Bluetooth and CAN Bus 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.
“We expect to begin taking orders for the new e360 Home Energy Storage System (“ESS”) beginning in the second quarter of 2024 with shipments expected to begin in the second half of the year, growing our portfolio from recreational vehicles and marine applications into home energy applications. These two LiFePO4 battery storage solutions will 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 can rapidly scale with the introduction of products that improve price, flexibility, and integration.
“Looking ahead, we anticipate additional orders as the RV market recovers given our marketing initiatives and expanding product line. We continue to work towards additional OEM market penetration as well as growing demand from customers looking to achieve greater power density, better reliability and superior quality for their energy storage needs. We look forward to providing future updates on our business in the months ahead,” concluded
First Quarter 2024 Financial Summary
For the first quarter of 2024, revenue totaled
Gross profit for the first quarter of 2024 totaled
Selling, general and administrative expenses increased to
Net loss for the first quarter of 2024, totaled
Cash and cash equivalents totaled
First Quarter 2024 Results Conference Call
To access the call, please use the following information:
| Date: | |
| Time: | |
| Dial-in: | 1-877-407-9039 |
| International Dial-in: | 1-201-689-8470 |
| Conference Code: | 13746144 |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1667094&tp_key=98b5c4683a |
A telephone replay will be available commencing approximately three hours after the call and will remain available through
About
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.
The Company is headquartered in
VHC™, Vertical Heat Conduction™, Edge™, and SmartTalk™ are trademarks of
© 2024
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. 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:
541-797-6714
Email Contact
External Investor Relations:
949-491-8235
XPON@mzgroup.us
www.mzgroup.us
Balance Sheets |
||||||||
| As of March 31, 2024 (unaudited) | As of |
|||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 2,263,133 | $ | 3,932,698 | ||||
| Accounts receivable, net | 238,921 | 154,935 | ||||||
| Inventory | 3,780,617 | 3,825,390 | ||||||
| Prepaid/in-transit inventory | 118,811 | 163,948 | ||||||
| Prepaid expenses and other current assets | 233,171 | 189,418 | ||||||
| Total current assets | 6,634,653 | 8,266,389 | ||||||
| Property and equipment | 1,212,984 | 1,348,326 | ||||||
| Accumulated depreciation | (421,836 | ) | (430,295 | ) | ||||
| Property and equipment, net | 791,148 | 918,031 | ||||||
| Other Assets | ||||||||
| Operating leases – right-of-use asset | 2,532,252 | 2,662,015 | ||||||
| Deposits | 58,896 | 58,896 | ||||||
| Total other assets | 2,591,148 | 2,720,911 | ||||||
| Total assets | $ | 10,016,949 | $ | 11,905,331 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 282,420 | $ | 286,985 | ||||
| Customer deposits | 10,926 | 17,423 | ||||||
| Accrued expenses and other current liabilities | 248,905 | 292,515 | ||||||
| Convertible note payable | 2,206,067 | 2,082,856 | ||||||
| Current portion of operating lease liability | 535,576 | 522,764 | ||||||
| Current portion of stockholder promissory notes | 700,000 | 762,500 | ||||||
| Current portion of long-term debt | 31,472 | 50,839 | ||||||
| Total current liabilities | 4,015,366 | 4,015,882 | ||||||
| Long-term debt, net of current portion and discount | 223,954 | 298,442 | ||||||
| Operating lease liability, net of current portion | 2,102,605 | 2,241,325 | ||||||
| Total liabilities | $ | 6,341,925 | $ | 6,555,649 | ||||
| As of |
As of |
|||||||
| Stockholders’ equity | ||||||||
| Preferred stock, par value |
— | — | ||||||
| Common stock, par value |
7,047 | 6,923 | ||||||
| Additional paid-in capital | 26,956,682 | 26,438,524 | ||||||
| Accumulated deficit | (23,288,705 | ) | (21,095,765 | ) | ||||
| Total stockholders’ equity | 3,675,024 | 5,349,682 | ||||||
| Total liabilities and stockholders’ equity | $ | 10,016,949 | $ | 11,905,331 | ||||
Statements of Operations (Unaudited) |
||||||||
| For the Three Months Ended |
||||||||
| 2024 | 2023 | |||||||
| Net sales | $ | 971,859 | $ | 1,507,177 | ||||
| Cost of sales | 749,337 | 1,063,730 | ||||||
| Gross profit | 222,522 | 443,447 | ||||||
| Selling, general and administrative | 2,189,475 | 2,120,894 | ||||||
| Loss from operations | (1,966,953 | ) | (1,677,447 | ) | ||||
| Other (income) / expense: | ||||||||
| Interest income | (26,865 | ) | (20,133 | ) | ||||
| Interest expense | 253,286 | 38,178 | ||||||
| Gain on sale of property and equipment | 306 | — | ||||||
| Settlement expense | — | 281,680 | ||||||
| Other (income) / expense | (1,200 | ) | 106 | |||||
| Total other expense | 225,527 | 299,831 | ||||||
| Loss before taxes | (2,192,480 | ) | (1,977,278 | ) | ||||
| Franchise taxes | 460 | — | ||||||
| Net loss | $ | (2,192,940 | ) | $ | (1,977,278 | ) | ||
| Net loss per share (basic and diluted) | $ | (0.31 | ) | $ | (0.29 | ) | ||
| Weighted-average number of common shares outstanding | 7,006,498 | 6,815,002 | ||||||
Statements of Cash Flows (Unaudited) |
||||||||
| For the Three Months Ended |
||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (2,192,940 | ) | $ | (1,977,278 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | 49,444 | 48,120 | ||||||
| Amortization of convertible note costs | 166,786 | |||||||
| Loss on sale of property and equipment | 306 | — | ||||||
| Decrease in allowance for doubtful accounts | — | (18,804 | ) | |||||
| Stock-based settlement | — | 251,680 | ||||||
| Stock-based compensation | 315,853 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in accounts receivable | (83,986 | ) | (311,923 | ) | ||||
| Decrease in inventory | 44,773 | 603,570 | ||||||
| (Increase) / Decrease in prepaid/in-transit inventory | 45,137 | (1,086,577 | ) | |||||
| Increase in prepaid expenses and other current assets | (43,753 | ) | (66,992 | ) | ||||
| Decrease in deposits | — | 5,005 | ||||||
| Increase / (Decrease) in accounts payable | (4,565 | ) | 895,845 | |||||
| Increase / (Decrease) in customer deposits | (6,497 | ) | 208,553 | |||||
| Increase in accrued expenses and other current liabilities | 33,669 | 19,638 | ||||||
| Increase in right-of-use assets and lease liabilities | 3,855 | 6,461 | ||||||
| Net cash used in operating activities | (1,671,918 | ) | (1,422,702 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (10,550 | ) | (9,280 | ) | ||||
| Net proceeds from sale of property and equipment | 87,684 | — | ||||||
| Net cash provided by / (used in) investing activities | 77,134 | (9,280 | ) | |||||
| Cash flows from financing activities | ||||||||
| Principal payments on convertible note | (43,575 | ) | — | |||||
| Principal payments on long-term debt | (93,855 | ) | (92,854 | ) | ||||
| Principal payments on stockholder promissory notes | (62,500 | ) | — | |||||
| Net proceeds from exercise of warrants | (4 | ) | 49,787 | |||||
| Net proceeds from issuance of common stock | 125,153 | — | ||||||
| Net cash provided by / (used in) financing activities | (74,781 | ) | (43,067 | ) | ||||
| Net change in cash and cash equivalents | (1,669,565 | ) | (1,475,049 | ) | ||||
| Cash and cash equivalents, beginning | 3,932,698 | 7,201,244 | ||||||
| Cash and cash equivalents, ending | 2,263,133 | 5,726,195 | ||||||
| For the Three Months Ended |
||||||||
| Supplemental disclosure of cash flow information: | 2024 | 2023 | ||||||
| Cash paid for interest | $ | 12,748 | $ | 38,399 | ||||
| Cash paid for franchise taxes | $ | — | $ | — | ||||
| 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 | $ | 41,250 | $ | — | ||||
| Issuance of common stock for payment on accrued compensation | $ | 36,029 | $ | — | ||||
| Issuance of common stock in exchange for short-term loan costs | $ | 63 | $ | — | ||||
Source: Expion360