Expion360 Inc. Q2 FY2025 earnings call

• Expion360 focuses on energy storage solutions for various applications like RV, marine, light electric vehicle, home energy storage, and industrial applications. • Sixth consecutive quarter of sequential revenue growth. Second quarter included 2 of the most successful months of sales in company history. • HESS vertical shipments began in January 2025. Exploring expansion into AI data center storage and backup market. • Actively pursuing tariff exclusion request, built 6 to 12 months of inventory, reduced costs, diversified supply sources, and aims to onshore manufacturing of key components. • Product lines include e360 Edge battery with VHC heating technology, SmartTalk Bluetooth, etc., and solutions for RV, marine, LEV, home energy, and industrial applications. Currently have 11 patents pending.

In the second quarter ended June 30, 2025, revenue totaled $3 million, an increase of 134% year-over-year and 46% sequentially from the first quarter. Gross profit totaled $0.6 million or 21% of revenue. For the six months ended June 30, 2025, net sales totaled $5 million, a 124% increase from the prior year period. Gross profit for the six months was $1.1 million or 22% of sales.

• Substantial purchase orders already in hand and interest from new customers across product line. • Focus on increasing margins and reducing costs within current battery line. • Continue to work towards additional OEM market penetration by adding features and developing OEM-centric form factors.

• Tariff uncertainties with the finish line being moved monthly. Impact on business growth if tariff issues not resolved. • Supply chain risks related to sourcing and potential impacts on manufacturing and costs.

Q: Current tariff environment and lobbying efforts in Washington, D.C. Has anything developed?

A: Yes, tariff finish line is moved monthly. Confident in lobbying efforts and have case for exclusion in front of right people. Benefiting from inventory preloading in September, October, November.

Q: How much prebuilt inventory is left for subsequent quarters?

A: Considerable amount, over $5 million in inventory available for sale, which is majority of inventory purchased in September, October, November.

Q: Does the China tariff pause help? Or will you pass price increases to customers or sell at lower margins?

A: For next quarter, sales mix matters. Battery sales, which is driving top line, is expected to help with strong margin in third quarter.