Expion360 Inc., an industry leader in lithium-ion battery power storage solutions, today reported its financial and operational results for the first quarter ended March 31.
Q1 2024 revenue totaled $1 million, up 13% sequentially from Q4 2023. Q1 2024 net loss totaled $2.2 million, compared to a net loss of $2 million in the prior year period as the company continued to invest in new product development and launches.
The company received substantial preorders of next-generation Group 27 and GC2 series lithium iron phosphate (LiFePO4) batteries, which now include Expion360’s proprietary Vertical Heat Conduction (VHC) internal heating technology, a patent-pending innovation. Expion360 began taking pre-orders of the new Group 27 and GC2 batteries in Q1 2024 and commenced deliveries in May 2024.
In May 2024, it announced the launch of the Edge battery available in both 12.8V and 51.2V configurations. Expion360 also achieved UL 1973 compliance for 450Ah EX1 batteries, reaffirming commitment to safety and innovation in the rapidly growing lithium battery industry.
“In the first quarter of 2024 we fortified our position as a leader in premium LiFePO4 batteries with next generation battery product launches and new technologies,” said Brian Schaffner, CEO of Expion360. “With continued existing product momentum for an improving RV market, we also are scaling efforts into other verticals and channels such as marine, overland and light electric vehicles, and introducing products for home energy and commercial applications.
“First quarter sales continued to be impacted by the battery business for RVs year over year but improved 13% sequentially from the fourth quarter. According to the RV Industry Association, RV shipments were up over 9% through the first quarter of 2024. As the RV market returns, we are well positioned with our superior capacity and flexibility to lead acid competitors with a strong focus on safety, quality, service and innovation for our more than 300 resellers across the United States, consisting of dealers, wholesalers, private-label customers and original equipment manufacturers who then sell our products to end consumers.
“Looking ahead, we anticipate additional orders as the RV market recovers given our marketing initiatives and expanding product line. We continue to work towards additional OEM market penetration as well as growing demand from customers looking to achieve greater power density, better reliability and superior quality for their energy storage needs. We look forward to providing future updates on our business in the months ahead.”
Q1 2024 financial summary:
For the first quarter of 2024, revenue totaled $1 million, decreasing 35.5% from $1.5 million in the prior year period. The decrease was primarily attributable to the lingering effects of the downturn in the RV market, combined with customers limiting orders in anticipation of the availability of our new products with enhanced features.
Gross profit for the first quarter of 2024 totaled $0.2 million or 22.9% of revenue, as compared to $0.4 million or 29.4% of revenue in the prior year period. The decrease in gross profit as a percentage of revenue was primarily attributable to decreases in sales which drove higher fixed overhead costs per unit.
Selling, general and administrative expenses increased to $2.2 million compared to $2.1 million in the prior year period. The increase was primarily due to salaries and benefits which included non-cash stock-based compensation, and sales and marketing increases, offset by significant reductions in legal and professional fees.
Net loss for the first quarter of 2024, totaled $2.2 million, or $(0.31) per share, and net loss of $2 million, or $(0.29) per share in the prior year period.
Cash and cash equivalents totaled $2.3 million at March 31 compared to $3.9 million at December 31, 2023. As previously announced, the company received financing commitments of up to $22.5 million from 3i, LP and Tumim Stone Capital, providing additional operating liquidity and financial flexibility to support intellectual property and product development, and newly launched home energy storage solutions.
