Expion360 Inc. Q1 FY2024 earnings call

• Expion360 focuses on designing, assembling, and selling lithium-ion phosphate batteries and accessories for RV, marine, light electric vehicle, and home energy storage markets.
• In January 2024, launched next-generation Group 27 and GC2 Series lithium iron phosphate batteries with advanced features. In March, EX1 SmartTalk Bluetooth batteries achieved UL 1973 compliance. In April, announced substantial pre-orders for next-gen batteries. In May, launched the Edge battery for pre-order with modular design. In April, released specs for Home Energy Storage Solutions.
• Market segments include RV, marine, light electric vehicles, home energy storage, and industrial applications. Work ongoing to expand OEM market penetration and add features to products.
• Recently signed a contract to become a vendor for Tractor Supply, with products to be available on their website in June.

In the first quarter of 2024, revenue totaled $1 million, a decrease of 35.5% from the prior year's $1.5 million. Gross profit for the first quarter was $200,000, equivalent to 22.9% of revenue, compared to $400,000 (29.4%) in the prior year period. Net loss for the first quarter was $2.2 million, or $0.31 per share, up from the prior year's net loss of $2 million, or $0.29 per share.

• Confident in growth trajectory for 2024; RV industry shipments up 9.3% in Q1 and expected to be up 18.8% full year.
• Planned launch of Home Energy system expected to disrupt the industry.
• Substantial pre-orders for next-generation Group 27 and GC2 Series batteries have begun shipping.
• Edge battery to begin shipping in the third quarter of 2024.
• Excited about partnership with Tractor Supply to expand retail footprint.

• Forward-looking statements subject to risks and uncertainties as outlined in SEC filings.
• Initial read of Biden administration tariffs shows no impact on their batteries currently, but potential future impact if tariffs expand and affect their product space.

Q: Any possibility to expand Tractor Supply partnership to their retail locations?

A: Tractor Supply has a unique niche with web services allowing quick product access; excited to start with them, and would inform about further expansion first.

Q: Early feedback on home energy system since releasing data sheets?

A: Had good traffic related to calls about new products; units must be sold and installed through certified dealers, working with dealers on test pilots.

Q: Thoughts on gross margin?

A: Mainly related to batteries; pricing with vendors has been stable with no significant increases thus far.

Q: Speak to Biden administration's tariffs?

A: Initial read shows no their batteries in tariff list for 2024-2025; if tariffs affected, industry would be on even field, and they're constantly working to reduce costs.

Q: Expand on Tractor Supply contract?

A: Finished executing contract this morning; they have over 2,200 locations, and will follow up with formal press release.

Q: Begun shipping products for Group 27 and GC2 battery pre-orders?

A: Have started shipping Group 27 pre-orders, and GC2 batteries are in and being fulfilled.

Q: Customer feedback on Edge battery?

A: Customers appreciate the flexibility the new form factor provides during RV design process.

Q: Update on new OEM partners or customers?

A: Many potential OEM and retail partners engaged, expect to announce new relationships as finalized.

Q: Update on Home Energy Storage solutions?

A: Units must be sold and installed through certified dealers; working with dealers on test pilots for customer installations.