Expion360 Inc. Q1 FY2025 earnings call

• Expion360 focuses on energy storage solutions for RV, marine, light EV, home energy storage, and industrial applications.
• Shipped Home Energy Storage Solutions (HESS) in January 2025, benefiting from a growing battery energy storage market and incentives like California's Self-Generation Incentive Program and federal tax credits.
• Exploring a partnership with NeoVolta to engineer a US-based battery manufacturing facility.
• Secured new OEM customers including Scout Campers, Alaskan Campers, and K-Z Recreational Vehicles.
• Closed a $2.6 million registered direct offering and private placement in January 2025 for working capital and growth initiatives.
• Took steps to mitigate tariffs by building 6-12 months of inventory and diversifying the supply chain.
• Long-term goal to onshore US manufacturing of components and assemblies, including cell manufacturing.
• IP portfolio with 11 patents across multiple markets, including RV, marine, LEV, home energy, and industrial applications.

In the first quarter of 2025, Expion360's revenue totaled $2.0 million, which is a 111% increase from $1 million in the prior year period. Gross profit was $0.5 million, representing 24.5% of revenue, compared to $0.2 million (22.9% of revenue) in the prior year. Selling, general and administrative expenses decreased 24.7% to $1.6 million from $2.2 million in the prior year. Net loss in the first quarter was $1.2 million, a 47.5% improvement from a net loss of $2.2 million in the prior year. Cash and cash equivalents as of March 31, 2025, were $1.1 million.

• Confident in continued sequential growth in 2025 and beyond with substantial purchase orders and new customer interest.
• HESS began production and shipments in January 2025, targeting growth in the home energy storage market.
• Focus on expanding addressable market through product development and OEM market penetration.

• Uncertainties related to tariffs and international manufacturing.
• Dependence on successful onshoring efforts and the partnership with NeoVolta.
• Impact of market dynamics on revenue and margin performance.

Q: How will the onshoring of a cell plant help Expion financially?

A: There are several ways; access to cost-plus batteries to increase margins, economies of scale through shared administrative tasks, and receiving royalties from cell sales which will directly affect cash and the bottom line.

Q: What would your financial burden be should a domestic cell plant be constructed?

A: Expion provides technology and partners with NeoVolta. The partner bears the financial burden and responsibility of providing the necessary capital for constructing the domestic cell plant.

Q: How did your meetings go in Washington? And can you provide any additional details?

A: Meetings were really incredible and went very well. Greatly encouraged by the support for onshoring efforts and the desire to increase US manufacturing investment in jobs.