Expion360 (XPON) Registration Filing summary

Company overview and business model

• Designs, assembles, manufactures, and sells lithium iron phosphate (LiFePO4) batteries and accessories for RV, marine, and home energy storage, with plans to expand into industrial applications.

• Focuses on high-density, minimal-footprint batteries and is developing the e360 Home Energy Storage System for residential and small business markets.

• Operates from Redmond, Oregon, with suppliers in the US, Asia, and Europe; aims to onshore most manufacturing to the US long-term.

• Customers include dealers, wholesalers, private label clients, and OEMs, with a national revenue and brand presence.

Financial performance and metrics

• Preliminary Q2 2024 net sales: $1,278,109; cost of sales: $952,646; gross profit: $325,463; net loss: $2,220,232.

• As of June 30, 2024: total current assets $5,553,107; total current liabilities $4,049,379.

• Net losses of $7.5 million for each of the years ended December 31, 2023 and 2022; substantial doubt about ability to continue as a going concern.

Use of proceeds and capital allocation

• Estimated net proceeds of $8.7 million (at $0.473 per Unit), after underwriting discounts and expenses.

• Proceeds intended to repay ~$700,000 in stockholder notes, ~$2.5 million under a senior convertible note, and for working capital and general corporate purposes.

• Plans to terminate the Equity Line of Credit and pay off the 3i Note at closing.