Expion360 Reports Third Quarter 2024 Financial Results
Q3 Sequential Revenue Growth of 8.7% Driven by New Products and Technologies
Seven New OEM and Distributor Relationships to Equip New Campers and RVs with Advanced Lithium-Ion Batteries
Closed
- Q3 2024 revenue totaled
$1.4 million , up 8.7% sequentially from Q2 2024. - Q3 2024 net loss totaled
$8.8 million compared to a net loss of$1.8 million in the prior year period, which was primarily the result of lower net sales and higher other expenses due to the change in fair value of warrants and settlement expense for the period endedSeptember 30, 2024 . - Partnered with Scout Campers, a subsidiary of
Adventurer Manufacturing, Inc. , to equip their high-quality campers with Expion360’s advanced lithium-ion batteries as a standard option, enhancing the energy efficiency and reliability of their products. - Partnered with
Alaskan Camper, LLC d/b/a Alaskan Campers for Expion360’s state-of-the-art 12.8V GC2 162Ah VHC internally heated battery to come standard in all of their truck camper product lines. - Partnered 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 their premium offerings.
- Closed a firm commitment underwritten public offering with gross proceeds to the Company of approximately
$10.0 million , before deducting underwriting discounts and other expenses payable by the Company.
Management Commentary
"The third quarter of 2024 was highlighted by sequential revenue growth and the addition of three new OEM customers,” said
“Revenue grew sequentially for a third consecutive quarter, improving 8.7% from Q2 2024, highlighting our efforts to expand sales with our more than 300 resellers across
“During the quarter we took the opportunity to strengthen our balance sheet with the close of a public offering with gross proceeds of approximately
“We are also 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. Additionally, funds are being used to allocate inventory for the mentioned new original equipment manufacturer (“OEM”) relationships. 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.
“Three recently named OEM customers highlight how we are leveraging our products’ superior capacity and flexibility to lead acid competitors to add critical new OEMs with recreational vehicle brands. Scout Campers offers a range of versatile truck campers designed to inspire outdoor adventures. Starting with model year 2025 production, each camper built by Scout Campers will feature a single Group 27 132Ah VHC internally heated lithium battery from
“With K-Z RV, we are integrating our cutting-edge battery technology into their premium offerings, enhancing the off-grid capabilities of their vehicles. K-Z RV’s Boondocker package, renowned for its exceptional off-grid features, will now include three
“Adding to the momentum created by these new customers, our team recently attended a very successful Elkhart RV Dealer Open House in September. More than 30 of the nation’s top RV manufacturers attended this event, which resulted in several new relationships with OEMs and one reseller who expressed interest across our product line, including our next generation
“I would also like to take this opportunity to mention that
“Looking ahead, we are highly focused on scaling revenue through the introduction of new technologies and batteries, entering new retail markets, and expanding into complementary high-growth verticals to capture additional market share. We are supported by strong marketing initiatives and an expanding list of large customers and major resellers,” concluded
Third Quarter 2024 Financial Summary
For the third quarter of 2024, net sales totaled
Gross profit for the third quarter of 2024 totaled
Selling, general and administrative expenses were
Net loss for the third quarter of 2024 totaled
The share, per share, and resulting financial amounts in this press release, including prior period metrics, have been adjusted to reflect the impact of the reverse stock split of the Company’s common stock, par value
Nine Months 2024 Financial Summary
For the nine months ended
Gross profit for the nine months ended
Selling, general and administrative expenses were
Net loss for the nine months ended
Cash and cash equivalents totaled
Net cash used in operating activities totaled
On
Conference Call
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
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 beliefs about the Company’s operations, future development plans, growth prospects, market opportunity, including customer base and market conditions, product pipeline and development, the expected timing of the Company’s Chief Operating Officer’s return, and the expected timing of the Company’s next conference call to discuss the Company’s financial results. 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.
Company Contact:
541-797-6714
Email Contact
External Investor Relations:
949-491-8235
XPON@mzgroup.us
www.mzgroup.us
| Balance Sheets | ||||||||
2024 (unaudited) |
2023 |
|||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 3,325,177 | $ | 3,932,698 | ||||
| Accounts receivable, net | 438,572 | 154,935 | ||||||
| Inventory | 3,365,292 | 3,825,390 | ||||||
| Prepaid/in-transit inventory | 1,361,990 | 163,948 | ||||||
| Prepaid expenses and other current assets | 278,445 | 189,418 | ||||||
| Total current assets | 8,769,476 | 8,266,389 | ||||||
| Property and equipment | 905,428 | 1,348,326 | ||||||
| Accumulated depreciation | (396,094 | ) | (430,295 | ) | ||||
| Property and equipment, net | 509,334 | 918,031 | ||||||
| Other Assets | ||||||||
| Operating leases – right-of-use asset | 822,694 | 2,662,015 | ||||||
| Deposits | 27,471 | 58,896 | ||||||
| Total other assets | 850,165 | 2,720,911 | ||||||
| Total assets | $ | 10,128,975 | $ | 11,905,331 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 334,632 | $ | 286,985 | ||||
| Customer deposits | 41,249 | 17,423 | ||||||
| Accrued expenses and other current liabilities | 214,499 | 292,515 | ||||||
| Convertible note payable | — | 2,082,856 | ||||||
| Derivative liability – warrants | 5,886,823 | — | ||||||
| Current portion of operating lease liability | 260,024 | 522,764 | ||||||
| Current portion of stockholder promissory notes | — | 762,500 | ||||||
| Current portion of long-term debt | 32,178 | 50,839 | ||||||
| Total current liabilities | 6,769,405 | 4,015,882 | ||||||
| Long-term-debt, net of current portion | 207,752 | 298,442 | ||||||
| Operating lease liability, net of current portion | 606,969 | 2,241,325 | ||||||
| Total liabilities | $ | 7,584,126 | $ | 6,555,649 | ||||
| Stockholders' equity | ||||||||
| Preferred stock, par value |
— | — | ||||||
| Common stock, par value |
919 | 69 | ||||||
| Additional paid-in capital | 36,867,524 | 26,445,378 | ||||||
| Accumulated deficit | (34,323,594 | ) | (21,095,765 | ) | ||||
| Total stockholders' equity | 2,544,849 | 5,349,682 | ||||||
| Total liabilities and stockholders' equity | $ | 10,128,975 | $ | 11,905,331 | ||||
| Statements of Operations (Unaudited) | ||||||||||||||||
| For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 1,389,495 | $ | 1,890,115 | $ | 3,639,462 | $ | 5,122,415 | ||||||||
| Cost of sales | 1,220,804 | 1,417,552 | 2,922,786 | 3,752,006 | ||||||||||||
| Gross profit | 168,691 | 472,563 | 716,676 | 1,370,409 | ||||||||||||
| Selling, general and administrative | 2,096,468 | 2,290,955 | 6,290,202 | 6,363,514 | ||||||||||||
| Loss from operations | (1,927,777 | ) | (1,818,392 | ) | (5,573,526 | ) | (4,993,105 | ) | ||||||||
| Other expense | ||||||||||||||||
| Interest income | (14,589 | ) | (33,048 | ) | (60,049 | ) | (100,945 | ) | ||||||||
| Interest expense | 467,715 | 27,491 | 971,561 | 92,067 | ||||||||||||
| Loss on sale of property and equipment | 146,454 | — | 146,760 | 3,426 | ||||||||||||
| Settlement expense | 400,900 | — | 709,900 | 281,680 | ||||||||||||
| Other (income) / expense | 5,885,940 | — | 5,884,751 | (394 | ) | |||||||||||
| Total other (income) / expense | 6,886,420 | (5,557 | ) | 7,652,923 | 275,834 | |||||||||||
| Loss before income taxes | (8,814,197 | ) | (1,812,835 | ) | (13,226,449 | ) | (5,268,939 | ) | ||||||||
| Franchise taxes / (refund) | 460 | 1,380 | 1,379 | 1,342 | ||||||||||||
| Net loss | $ | (8,814,657 | ) | $ | (1,814,215 | ) | $ | (13,227,828 | ) | $ | (5,270,281 | ) | ||||
| Net loss per share (basic and diluted) | $ | (24.55 | ) | $ | (26.25 | ) | $ | (78.63 | ) | $ | (76.62 | ) | ||||
| Weighted-average number of common shares outstanding | 358,990 | 69,107 | 168,219 | 68,787 | ||||||||||||
| Statements of Cash Flows (Unaudited) | ||||||||
| For the Nine Months Ended |
||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (13,227,828 | ) | $ | (5,270,281 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 139,876 | 153,714 | ||||||
| Amortization of convertible note costs | 667,144 | — | ||||||
| Loss on sale of property and equipment | 146,760 | 3,426 | ||||||
| Decrease in allowance for doubtful accounts | — | (18,804 | ) | |||||
| Stock-based settlement | 209,000 | 251,680 | ||||||
| Stock-based compensation | 545,527 | 189,831 | ||||||
| Decrease in right-of-use assets and lease liabilities | (67,777 | ) | — | |||||
| Increase in derivative liability | 5,886,823 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in accounts receivable | (283,637 | ) | (156,445 | ) | ||||
| Decrease in inventory | 460,100 | 371,653 | ||||||
| Increase in prepaid/in-transit inventory | (1,198,042 | ) | 38,964 | |||||
| Increase in prepaid expenses and other current assets | (89,027 | ) | (45,759 | ) | ||||
| Decrease in deposits | 31,425 | 5,005 | ||||||
| Increase in accounts payable | 47,646 | 206,986 | ||||||
| Increase in customer deposits | 23,826 | 46,190 | ||||||
| Increase / (decrease) in accrued expenses and other current liabilities | 48,851 | (6,371 | ) | |||||
| Increase in right-of-use assets and lease liabilities | 10,002 | 22,494 | ||||||
| Net cash used in operating activities | (6,649,331 | ) | (4,207,717 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (10,550 | ) | (20,170 | ) | ||||
| Net proceeds from sale of property and equipment | 132,611 | 36,748 | ||||||
| Net cash provided by investing activities | 122,061 | 16,578 | ||||||
| Cash flows from financing activities | ||||||||
| Principal payments on convertible note | (2,750,000 | ) | — | |||||
| Principal payments on long-term debt | (109,352 | ) | (148,986 | ) | ||||
| Principal payments on stockholder promissory notes | (762,500 | ) | — | |||||
| Net proceeds from exercise of warrants | 31,420 | 49,777 | ||||||
| Net proceeds from issuance of common stock | 9,510,181 | — | ||||||
| Net cash provided by / (used in) financing activities | 5,919,749 | (99,209 | ) | |||||
| Net change in cash and cash equivalents | (607,521 | ) | (4,290,348 | ) | ||||
| Cash and cash equivalents, beginning | 3,932,698 | 7,201,244 | ||||||
| Cash and cash equivalents, ending | $ | 3,325,177 | $ | 2,910,896 | ||||
| For the Nine Months Ended |
||||||||
| Supplemental disclosure of cash flow information: | 2024 | 2023 | ||||||
| Cash paid for interest | $ | 61,570 | $ | 92,136 | ||||
| Cash paid for franchise taxes | $ | — | $ | 1,342 | ||||
| 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 | $ | 90,839 | $ | — | ||||
| Issuance of common stock for payment on accrued compensation | $ | 36,029 | $ | — | ||||
| Cashless warrant exercises | $ | — | $ | 41 | ||||
Source: Expion360