Expion360 (XPON) Q2 2024 earnings summary

Executive summary

• Specializes in lithium iron phosphate batteries for RV, marine, LEV, home energy, and industrial markets, leveraging patented technology and a strong management team.

• Q2 2024 net sales were $1.3 million, down 25.9% year-over-year, with a net loss of $2.2 million, reflecting RV market weakness and investment in new products.

• Expanded product portfolio with next-gen Group 27 and GC2 batteries, Edge battery, and home energy storage solutions.

• Strategic partnerships formed with Tractor Supply Company for e-commerce and K-Z RV for OEM integration.

• Completed a $10 million public offering in August 2024 to fund growth, repay debt, and support home energy storage commercialization.

Financial highlights

• Q2 2024 revenue was $1.3 million, down from $1.7 million in Q2 2023, but up 32% sequentially from Q1 2024.

• Gross profit for Q2 2024 was $300,000 (25.5% margin), compared to $500,000 (26.3%) in Q2 2023.

• Net loss for Q2 2024 was $2.2 million (-$0.30/share), compared to $1.5 million (-$0.21/share) in Q2 2023.

• Cash and equivalents at June 30, 2024, were $0.9 million, down from $3.9 million at year-end 2023.

• SG&A expenses for Q2 2024 were $2.0 million, flat or slightly up year-over-year.

Outlook and guidance

• Management is optimistic about growth for 2024 and beyond, citing new product launches, expanding addressable markets, and improving RV market conditions.

• Proceeds from the August 2024 public offering will fund commercialization of home energy storage solutions and other growth initiatives.

• Management expects continued losses and negative cash flows in the near term and may need to raise additional capital.