NASDAQ:XPON Expion360 Q1 2025 Earnings Report $1.62 -0.04 (-2.41%) Closing price 04:00 PM EasternExtended Trading$1.63 +0.01 (+0.62%) As of 05:54 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings History Expion360 EPS ResultsActual EPSN/AConsensus EPS -$0.64Beat/MissN/AOne Year Ago EPSN/AExpion360 Revenue ResultsActual RevenueN/AExpected Revenue$1.70 millionBeat/MissN/AYoY Revenue GrowthN/AExpion360 Announcement DetailsQuarterQ1 2025Date5/15/2025TimeAfter Market ClosesConference Call DateThursday, May 15, 2025Conference Call Time4:30PM ETConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Expion360 Q1 2025 Earnings Call TranscriptProvided by QuartrMay 15, 2025 ShareLink copied to clipboard.Key Takeaways Q1 2025 revenue rose 111% year-over-year to $2.0 M while net loss narrowed 47.5% to $1.2 M, driven by higher sales and lower SG&A expenses. Selling, general and administrative expenses fell 24.7% as headcount, stock-based compensation, legal fees and rent were reduced. Shipments of the E360 Home Energy Storage System (HESS) began in January 2025 with UL certification underway, positioning the company to leverage federal and state incentives. Pursuit of US onshoring and tariff mitigation, including a potential partnership with Neovolta and pre-tariff inventory buildup of six to twelve months, aims to improve margins and secure supply. Despite improvements, the company sustained a net loss of $1.2 M and held $1.1 M in cash as of March 31, indicating limited short-term liquidity. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallExpion360 Q1 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipantsPresentationSkip to Participants Operator00:00:00Greetings, and welcome to the Xpeon three sixty First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded and will be available in the Investor Relations section of the company's website at investors.xpeon360.com. Before we begin the formal presentation, I would like to remind everyone that certain statements made on this call and throughout the webcast are forward looking statements within the meaning of the federal securities laws and are subject to considerable risks and uncertainties. Operator00:00:45These forward looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements made on this call today other than statements of historical fact are forward looking statements and include statements regarding the company's beliefs, plans, and expectations about its operations, growth prospects, product development and pipeline, anticipated timing of commercial availability of its products, market size and opportunity, the anticipated incremental revenue to be generated from new OEM partnerships and distributors, the potential partnership with NeoVolta, and the anticipated use of proceeds from the company's recently completed public offering. While these forward looking statements represent management's current beliefs and expectations, they are subject to risks and uncertainties that could cause actual results to differ materially. The company has explained some of these risks and uncertainties in its SEC filings, including in the risk factor section of its annual report on Form 10 k. You are cautioned not to place undue reliance on these forward looking statements, which reflect our expectations as of the date of this presentation. Operator00:02:07Except as required by law or the NASDAQ listing standards, the company expressly disclaims any intent or obligation to publicly update or revise any forward looking statements. Your host today, Brian Schaffner, chief executive officer and interim chief financial officer, will present results of operations for the first quarter ended 03/31/2025. A press release detailing these results crossed the wire this afternoon at 04:05PM eastern time and is available in the Investor Relations section of the company's website at investors.xpeon360.com. At this time, I will turn the call over to Xpeon360's CEO and Interim CFO, Brian Schaffner. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:02:58Thank you, operator, and good afternoon, everyone. I am pleased to welcome you to today's first quarter twenty twenty five financial results conference call. But before I begin, I apologize for any difficulties with the audio. I am calling in from our nation's capital, Washington DC, where I've been speaking with the elected officials and US representatives about our onshoring efforts and tariff concerns, which I will address in more detail shortly. For those of you who might be new to our story, I'd like to start by giving a brief overview of who we are and what we do. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:03:37XBeon three sixty is focused on creating energy storage solutions for our customers, utilizing our core values of safety through third party testing and UL certification, quality, offering an industry leading twelve year warranty and service. We provide customer support for the entire system purchased from us, not just the XBEYOND three sixty built components. XBEYOND three sixty designs, assembles, and sells lithium iron phosphate or LiPo four batteries and supporting accessories for RVs, marine, light EV, and home energy storage applications. We believe our product offerings include some of the most energy dense and minimal footprint batteries available. We are also deploying multiple intellectual property strategies, advanced research and development capabilities, and innovative products to sustain and scale our business. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:04:37Our customers consist of dealers, wholesalers, private label customers, and original equipment manufacturers or OEMs, who are driving revenue and brand awareness nationally, and we complement our wholesale channel with direct to consumer sales. Our management team and board of directors are experienced across engineering, technology, and finance. We believe the combination of these factors positions us to execute our long term growth strategies. I'm extremely proud of the progress we made in the first quarter and remain excited about our future. Our E360 product line is a preferred conversion solution for lead acid batteries as demonstrated by its sales growth. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:05:25We currently have more than 300 customers across The United States consisting of dealers, wholesalers, private label customers and OEMs who then sell our products to end consumers. In addition, we sell products directly to consumers through our e commerce platform. We have sales relationships with major RV retailers, including Camping World, a leading RV retailer, KZ Recreational Vehicles, a subsidiary of Thor Industries and Meijer Distributing Inc, a leading national marketer and distributor of automotive and RV specialty products. We believe we have a strong reputation in the lithium battery space, which we plan to continue leveraging to broaden our distribution channels. Let me take a moment to highlight some of our accomplishments and milestones in the first quarter. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:06:19We have continued our progress in our home energy storage solutions or HESS vertical with shipments beginning in January 2025. We believe the Hess product line will benefit from a fast growing battery energy storage market and consumer uptake can rapidly scale with the introduction of products that improve price, flexibility and integration. We also anticipate that Hess will benefit from incentives available through California's self generation incentive program and federal tax credits available through the inflation reduction act for home battery systems. Additionally, we are exploring a partnership with NeaVolta to combine our strengths towards a potential collaboration that aims to engineer a US based state of the art battery manufacturing facility and develop innovative lithium ion battery cell and module product designs. A formal engagement would enable us to contribute our expertise in design and engineering, while Neovolta plans to provide the necessary capital and manpower. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:07:28Together, we expect to bring high performance sustainable energy storage solutions to the market to address the growing demand for efficient energy management in both residential and commercial applications. Our anticipated partnership with NeaVolta and our goal to onshore American made batteries has become increasingly timely with the recent implementation of tariffs. In addition to pursuing this partnership to mitigate risks associated with international manufacturing, we are actively working to complete a tariff exclusion request, working with our resources in Washington to ensure that tariffs have little, if any impact on our business and our growth. In addition to strengthening our relationships with existing OEM partners, we continue to work towards additional OEM market penetration with new major partners. Newer relationships have included three announced new OEM customers, Scout Campers, Alaskan Campers, and KZ Recreational Vehicles. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:08:32Welcome. And we have secured several new OEM customers. Recently, we welcomed Carson Heegan as Chief Operating Officer. Carson brings over ten years of leadership experience in operations, finance, global supply chain management and ERP systems. Carson joined XBEYOND three sixty in 2021 and has rapidly and deservedly risen from the Director of Finance to VP of Operations and now our COO. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:09:06We closed a registered direct offering and concurrent private placement with institutional investors in January of twenty twenty five. Aggregate gross proceeds from both transactions were approximately $2,600,000 We are using the net proceeds from the offering as working capital and for general corporate purposes to advance the commercialization of our home energy storage system and pursue other key growth initiatives like our onshoring. As I just mentioned, I am in Washington DC where I have been speaking with elected officials and US representatives about our onshoring efforts and tariff relief. While Monday's news about a reduction in tariffs on imports from China is a step in the right direction, we have nonetheless undertaken both short and long term strategies to address current and future uncertainties. Our tariff mitigation efforts include several initiatives to increase margins and reduce costs within the current line of batteries. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:10:05We have also prepared for continued growth in tariff mitigation by building up six to twelve months of inventory early in the quarter before the new tariffs were introduced. One of our stated long term goals has been onshoring the manufacturing and production of our BMS, cells, communications and cases. This would not only tariff proof our products, but allow us to pursue opportunities in the government and defense space, and I hope to be able to report some positive developments in the very near future. Our reputation for quality in the recreational and LED markets is the driving force behind our development of home energy solutions that will be a foundation for our future growth. As mentioned before, we pride ourselves on servicing the entire system sold to a customer, not just the battery, and we are also a master Victron distributor. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:11:01We believe we have strategically positioned our battery portfolio across multiple markets, each of which I will now touch on. The RV market is recovering with healthy momentum driven by interest in outdoor activities and demand for vehicles that depend on batteries to power systems. Our lithium batteries support RV systems and appliances while replacing noisy generators for off grid power and can be charged by engine or solar. The Edge battery, which is now commercially available, features a custom form factor that includes our patent pending innovations and other recently developed IP. The Edge incorporates VHC heating technology, smart talk Bluetooth and CAN bus communication. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:11:46We began shipping the Edge to customers in the third quarter of twenty twenty four. Our solutions are also employed in the marine market to support trolling motors and operating cabin electronics. The third established market we serve is the LED market such as golf carts, which are undergoing a transition from lithium to lead acid. These LEDs require sufficient power generation or reliability, which our batteries deliver. The fourth and newest market we serve is the home energy storage market, including both home and commercial solar powered storage solutions. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:12:23I'll expand on our opportunity in home energy shortly. Finally, we see the industrial applications market as a future growth vertical for us, driven by demand for additional capacities related to electric forklift and industrial material handling. We continue to build a robust IP portfolio across all five of these markets, and we currently have 11 patents pending. Now I will focus on our market expansion with the E360 home energy storage solutions or HESS. With the introduction of our two LiPo4 battery solutions to support home energy storage, we are targeting home and small commercial solar users and installers who are interested in a high performance modular system with straightforward installation. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:13:14The company moved up its home energy development timeline due to the downturn in RV sales in 2023, and we've seen the benefit of that. Even though we actually gained the market share during the downturn, our team knew that home energy was our future. Development was accelerated and we now have two systems that are in final stages of UL certification and testing. Proper UL certification is vital as states such as California require UL 90 fiveforty certification of the battery and its inverter system to qualify for tax credits. Battery storage systems offer a way to capture ROI for consumer outside of a traditional solar system, utilizing a draw of power into the system during off peak hours and a discharge during peak hours. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:14:02Our solutions provide scalability and versatility across market channels, including solar installers, electrical contractors, residential and commercial builders, and energy service providers. Please visit a view of our home energy solutions at our website, xpeon360.com/pages/residential.com. In January, we began distribution and fulfilling purchase orders These order deliveries reflect a significant milestone in bringing E360 HESS to the market. We believe the HESS product line will benefit from a fast growing market, battery market and energy storage market and consumer uptake can rapidly scale with the introduction of products. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:14:53HESS improves price, flexibility and integration. We anticipate HESS will benefit from incentives available through California's self generation incentive program and federal tax credits available through the Inflation Reduction Act for home battery systems. We think the home energy market provides complementary economics for our business model with an opportunity to generate recurring revenue streams, while enabling margin expansion in a market that is expected to surpass $123,000,000,000 globally by 2029 according to market data forecast. We are using proceeds from our public offering to provide necessary funding to further develop our new E360 home energy storage solutions, including completion of UL testing and certification processes, in addition to other requirements for various authorities having jurisdiction. I will now discuss our first quarter twenty twenty five financial results. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:15:57Revenue in the first quarter of twenty twenty five totaled $2,000,000 an increase of 111% from $1,000,000 in the prior year period. The increase in net sales was due in part to a rebound in the RV market overall, as well as completing our first sales in the home energy market. Gross profit in the first quarter of twenty twenty five totaled $500,000 or 24.5% of revenue compared to $200,000 or 22.9% of revenue in the prior year period and 20.5% of revenue for the full fiscal year ended 12/31/2024. The increase was primarily attributable to the increase in sales and lower cost of goods sold as a percentage of our sales. Selling, general and administrative expenses in the first quarter of twenty twenty five decreased 24.7% to $1,600,000 compared to $2,200,000 in the prior year period. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:17:01The decrease was primarily due to decreases in salaries and benefits, including lower non cash stock based compensation, as well as a reduction in headcount. Legal and professional fees have also seen a significant decrease as did rent expense due to terminating the lease on our second warehouse. Net loss in the first quarter of twenty twenty five totaled $1,200,000 a 47.5% improvement from a net loss of $2,200,000 in the prior year period. The decrease in net loss was primarily the result of higher net sales for the period ending 03/31/2025, combined with the decrease in selling, general and administrative expenses. Cash and cash equivalents totaled $1,100,000 as of 03/31/2025, compared to $500,000 as of 12/30/1024. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:18:00On 01/03/2025, our company closed a $2,600,000 registered direct offering in private placement priced at the market under NASDAQ rules. Net cash used in operating activities totaled $1,200,000 for the three months ending 03/31/2025, compared to 1,700,000 in the prior year period. Receiving inventory that was prepaid during the prior period accounted for a large portion of the change for three months ending 03/31/2025, as well as making payments to decrease our suspended liability. In closing, we remain confident and enthusiastic about our growth trajectory for 2025 and beyond. With substantial purchase orders already additional new customers expressing interest across our product lines, we look forward to announcements of additional milestones in the months ahead. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:19:01New customers are expressing interest across product lines, including our next generation GC2, Group 27 and Edge batteries. Most importantly, market tailwinds are further strengthening our expectations for continued sequential growth moving forward. Our focus on safety, quality and service is paying off with our customers and this has been translated to the top and bottom lines, underscored by the confidence from over 300 network resellers in our network nationwide. Our customers know that we truly believe in our product quality and manufacturing capabilities. Results for the RV Industry Association's March twenty twenty five survey of manufacturers found that total RV shipments increased 14% in the first quarter of twenty twenty five, and we believe the RV market will continue to gain ground through 2025 with shipments increasing traction throughout the year. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:20:04We are focused on expanding our addressable market, most recently with our E360 home energy storage solutions, which began production and shipments in January of twenty twenty five. Operationally, we have undertaken several initiatives to increase margins and reduce costs within the current line of our batteries. We are also actively engaged with resources in Washington to ensure that tariffs have little if any impact on our business and growth, and we are working to diversify our supply chain with potential sourcing from additional free trade countries such as South Korea to further avoid tariffs and increase volume and margin. We have also prepared for continued growth in tariff mitigation by adding six to twelve months of inventory early in the quarter before new tariffs were introduced. In fact, we believe there is a significant market disconnect in our current valuation as we now have more in inventory than our market cap. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:21:06Our long term goal is to onshore The U. S. Manufacturing of most of our components and assemblies, including cell manufacturing. To that end, we continue to work with Neovolta to combine our strengths towards a potential collaboration that aims to engineer a U. S.-based state of the art battery manufacturing facility and develop innovative lithium ion battery cell and module product designs. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:21:32We continue to work towards additional OEM market penetration by adding features, improving energy density and developing unique OEM centric form factors. Thank you all for attending. And now I would like to hand the call back over to the operator for additional questions. Operator? Operator00:21:52Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. Operator00:22:14At this time, we will pause momentarily to assemble our roster. We have no audio questions at this moment, ladies and gentlemen. And we'll now proceed to any questions from the webcast. Executive00:22:49Our first webcast question asks, how will the onshoring of a cell plant help XBEYOND three sixty financially? Brian SchaffnerCEO, Interim CFO & Director at Expion36000:22:59Well, are a couple of ways that it will help us financially. One of them is that we will have access to cells for our batteries at a cost plus basis, which should help us increase our margins with no threat of tariffs for those high density cells that are currently made in Asia. We also benefit from economies of scale through shared administrative tasks. Finally, we would be receiving royalties from the sale of the battery cells, and that would directly affect our cash and our bottom line. Executive00:23:37Our next question asks, what would your financial burden be should a domestic cell plant be constructed? Brian SchaffnerCEO, Interim CFO & Director at Expion36000:23:46Well, we provide the technology and the business partner in Asia. And our job is to bring our trusted manufacturing partners and their IP to the table to onshore production in The US and manage site construction, equipment installation, production ramp up, and then the management of production going forward. That is our job. Our partner bears the financial burden and responsibility of providing the necessary capital to get that done. Executive00:24:24And our last webcast question asks, how did your meetings go in Washington, and can you provide any additional details? Brian SchaffnerCEO, Interim CFO & Director at Expion36000:24:34Well, I can say that they were really incredible. They went very, very well. I'm greatly encouraged by the support we're receiving to make our onshoring efforts a reality. There is a great desire to increase US manufacturing investment in jobs. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:24:55And that's what we plan on being part of. And I come away from my meetings in Washington more encouraged than ever that this can become a possibility for us. And we do look forward to sharing more with our valued investors and friends in the future. Executive00:25:14That concludes the webcast question and answer portion of this session. Operator00:25:22This concludes our question and answer session. I would now like to turn the call back over to Mr. Schaffner for his closing remarks. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:25:32Thank you. And thank you for attending today's call. We are excited about where we are headed and look forward to continuing to engage with our investors throughout the remainder of 2025. If for some reason we're unable to answer any of your questions, please do reach out to our IR firm, MZ Group, who would be more than happy to assist. This concludes our call. Operator00:25:57Thank you for attending today's presentation. You may now disconnect.Read moreParticipantsExecutivesBrian SchaffnerCEO, Interim CFO & DirectorAnalystsExecutivePowered by Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Expion360 Earnings HeadlinesExpion360 Reduces Warrant Exercise Price, Boosts EquityAugust 26 at 5:30 PM | tipranks.comExpion360 (NASDAQ:XPON) and SiTime (NASDAQ:SITM) Critical SurveyAugust 24, 2025 | americanbankingnews.comWhy More Investors Are Using Family Trusts to Protect Their WealthFor many investors, a family trust can be an essential tool for protecting assets, avoiding probate, and ensuring wealth is passed on according to your wishes. Trusts may also provide shielding from creditors and lawsuits while offering potential tax advantages—especially with estate tax thresholds set to decrease in 2026. If you’re considering whether a family trust is right for you, speaking with a fiduciary financial advisor can help you decide the best path forward. We’ve created a free tool that matches you with vetted advisors in your area—each legally bound to act in your best interest.August 28 at 2:00 AM | SmartAsset (Ad)Expion360 (NASDAQ:XPON) Stock Price Down 3.4% - Should You Sell?August 20, 2025 | americanbankingnews.comExpion360 Inc. (NASDAQ:XPON) Sees Significant Increase in Short InterestAugust 17, 2025 | americanbankingnews.comExpion360 Inc. (NASDAQ:XPON) Q2 2025 Earnings Call TranscriptAugust 14, 2025 | insidermonkey.comSee More Expion360 Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Expion360? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Expion360 and other key companies, straight to your email. Email Address About Expion360Expion360 (NASDAQ:XPON) designs, assembles, manufactures, and sells lithium iron phosphate batteries and supporting accessories under the VPR 4EVER name for recreational vehicles, marine, golf, industrial, residential, and off-the-grid applications. It provides battery monitors; direct current battery chargers; various models of industrial tie-downs; power generators AURA POWERCAP; terminal blocks; and bus bars. The company also engages in the development of e360 Home Energy Storage systems; e360 SmartTalk mobile application. It serves dealers, wholesalers, private label customers, and original equipment manufacturers in the United States and internationally. The company was formerly known as Yozamp Products Company, LLC and changed its name to Expion360 Inc. in November 2021. 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PresentationSkip to Participants Operator00:00:00Greetings, and welcome to the Xpeon three sixty First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded and will be available in the Investor Relations section of the company's website at investors.xpeon360.com. Before we begin the formal presentation, I would like to remind everyone that certain statements made on this call and throughout the webcast are forward looking statements within the meaning of the federal securities laws and are subject to considerable risks and uncertainties. Operator00:00:45These forward looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements made on this call today other than statements of historical fact are forward looking statements and include statements regarding the company's beliefs, plans, and expectations about its operations, growth prospects, product development and pipeline, anticipated timing of commercial availability of its products, market size and opportunity, the anticipated incremental revenue to be generated from new OEM partnerships and distributors, the potential partnership with NeoVolta, and the anticipated use of proceeds from the company's recently completed public offering. While these forward looking statements represent management's current beliefs and expectations, they are subject to risks and uncertainties that could cause actual results to differ materially. The company has explained some of these risks and uncertainties in its SEC filings, including in the risk factor section of its annual report on Form 10 k. You are cautioned not to place undue reliance on these forward looking statements, which reflect our expectations as of the date of this presentation. Operator00:02:07Except as required by law or the NASDAQ listing standards, the company expressly disclaims any intent or obligation to publicly update or revise any forward looking statements. Your host today, Brian Schaffner, chief executive officer and interim chief financial officer, will present results of operations for the first quarter ended 03/31/2025. A press release detailing these results crossed the wire this afternoon at 04:05PM eastern time and is available in the Investor Relations section of the company's website at investors.xpeon360.com. At this time, I will turn the call over to Xpeon360's CEO and Interim CFO, Brian Schaffner. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:02:58Thank you, operator, and good afternoon, everyone. I am pleased to welcome you to today's first quarter twenty twenty five financial results conference call. But before I begin, I apologize for any difficulties with the audio. I am calling in from our nation's capital, Washington DC, where I've been speaking with the elected officials and US representatives about our onshoring efforts and tariff concerns, which I will address in more detail shortly. For those of you who might be new to our story, I'd like to start by giving a brief overview of who we are and what we do. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:03:37XBeon three sixty is focused on creating energy storage solutions for our customers, utilizing our core values of safety through third party testing and UL certification, quality, offering an industry leading twelve year warranty and service. We provide customer support for the entire system purchased from us, not just the XBEYOND three sixty built components. XBEYOND three sixty designs, assembles, and sells lithium iron phosphate or LiPo four batteries and supporting accessories for RVs, marine, light EV, and home energy storage applications. We believe our product offerings include some of the most energy dense and minimal footprint batteries available. We are also deploying multiple intellectual property strategies, advanced research and development capabilities, and innovative products to sustain and scale our business. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:04:37Our customers consist of dealers, wholesalers, private label customers, and original equipment manufacturers or OEMs, who are driving revenue and brand awareness nationally, and we complement our wholesale channel with direct to consumer sales. Our management team and board of directors are experienced across engineering, technology, and finance. We believe the combination of these factors positions us to execute our long term growth strategies. I'm extremely proud of the progress we made in the first quarter and remain excited about our future. Our E360 product line is a preferred conversion solution for lead acid batteries as demonstrated by its sales growth. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:05:25We currently have more than 300 customers across The United States consisting of dealers, wholesalers, private label customers and OEMs who then sell our products to end consumers. In addition, we sell products directly to consumers through our e commerce platform. We have sales relationships with major RV retailers, including Camping World, a leading RV retailer, KZ Recreational Vehicles, a subsidiary of Thor Industries and Meijer Distributing Inc, a leading national marketer and distributor of automotive and RV specialty products. We believe we have a strong reputation in the lithium battery space, which we plan to continue leveraging to broaden our distribution channels. Let me take a moment to highlight some of our accomplishments and milestones in the first quarter. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:06:19We have continued our progress in our home energy storage solutions or HESS vertical with shipments beginning in January 2025. We believe the Hess product line will benefit from a fast growing battery energy storage market and consumer uptake can rapidly scale with the introduction of products that improve price, flexibility and integration. We also anticipate that Hess will benefit from incentives available through California's self generation incentive program and federal tax credits available through the inflation reduction act for home battery systems. Additionally, we are exploring a partnership with NeaVolta to combine our strengths towards a potential collaboration that aims to engineer a US based state of the art battery manufacturing facility and develop innovative lithium ion battery cell and module product designs. A formal engagement would enable us to contribute our expertise in design and engineering, while Neovolta plans to provide the necessary capital and manpower. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:07:28Together, we expect to bring high performance sustainable energy storage solutions to the market to address the growing demand for efficient energy management in both residential and commercial applications. Our anticipated partnership with NeaVolta and our goal to onshore American made batteries has become increasingly timely with the recent implementation of tariffs. In addition to pursuing this partnership to mitigate risks associated with international manufacturing, we are actively working to complete a tariff exclusion request, working with our resources in Washington to ensure that tariffs have little, if any impact on our business and our growth. In addition to strengthening our relationships with existing OEM partners, we continue to work towards additional OEM market penetration with new major partners. Newer relationships have included three announced new OEM customers, Scout Campers, Alaskan Campers, and KZ Recreational Vehicles. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:08:32Welcome. And we have secured several new OEM customers. Recently, we welcomed Carson Heegan as Chief Operating Officer. Carson brings over ten years of leadership experience in operations, finance, global supply chain management and ERP systems. Carson joined XBEYOND three sixty in 2021 and has rapidly and deservedly risen from the Director of Finance to VP of Operations and now our COO. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:09:06We closed a registered direct offering and concurrent private placement with institutional investors in January of twenty twenty five. Aggregate gross proceeds from both transactions were approximately $2,600,000 We are using the net proceeds from the offering as working capital and for general corporate purposes to advance the commercialization of our home energy storage system and pursue other key growth initiatives like our onshoring. As I just mentioned, I am in Washington DC where I have been speaking with elected officials and US representatives about our onshoring efforts and tariff relief. While Monday's news about a reduction in tariffs on imports from China is a step in the right direction, we have nonetheless undertaken both short and long term strategies to address current and future uncertainties. Our tariff mitigation efforts include several initiatives to increase margins and reduce costs within the current line of batteries. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:10:05We have also prepared for continued growth in tariff mitigation by building up six to twelve months of inventory early in the quarter before the new tariffs were introduced. One of our stated long term goals has been onshoring the manufacturing and production of our BMS, cells, communications and cases. This would not only tariff proof our products, but allow us to pursue opportunities in the government and defense space, and I hope to be able to report some positive developments in the very near future. Our reputation for quality in the recreational and LED markets is the driving force behind our development of home energy solutions that will be a foundation for our future growth. As mentioned before, we pride ourselves on servicing the entire system sold to a customer, not just the battery, and we are also a master Victron distributor. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:11:01We believe we have strategically positioned our battery portfolio across multiple markets, each of which I will now touch on. The RV market is recovering with healthy momentum driven by interest in outdoor activities and demand for vehicles that depend on batteries to power systems. Our lithium batteries support RV systems and appliances while replacing noisy generators for off grid power and can be charged by engine or solar. The Edge battery, which is now commercially available, features a custom form factor that includes our patent pending innovations and other recently developed IP. The Edge incorporates VHC heating technology, smart talk Bluetooth and CAN bus communication. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:11:46We began shipping the Edge to customers in the third quarter of twenty twenty four. Our solutions are also employed in the marine market to support trolling motors and operating cabin electronics. The third established market we serve is the LED market such as golf carts, which are undergoing a transition from lithium to lead acid. These LEDs require sufficient power generation or reliability, which our batteries deliver. The fourth and newest market we serve is the home energy storage market, including both home and commercial solar powered storage solutions. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:12:23I'll expand on our opportunity in home energy shortly. Finally, we see the industrial applications market as a future growth vertical for us, driven by demand for additional capacities related to electric forklift and industrial material handling. We continue to build a robust IP portfolio across all five of these markets, and we currently have 11 patents pending. Now I will focus on our market expansion with the E360 home energy storage solutions or HESS. With the introduction of our two LiPo4 battery solutions to support home energy storage, we are targeting home and small commercial solar users and installers who are interested in a high performance modular system with straightforward installation. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:13:14The company moved up its home energy development timeline due to the downturn in RV sales in 2023, and we've seen the benefit of that. Even though we actually gained the market share during the downturn, our team knew that home energy was our future. Development was accelerated and we now have two systems that are in final stages of UL certification and testing. Proper UL certification is vital as states such as California require UL 90 fiveforty certification of the battery and its inverter system to qualify for tax credits. Battery storage systems offer a way to capture ROI for consumer outside of a traditional solar system, utilizing a draw of power into the system during off peak hours and a discharge during peak hours. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:14:02Our solutions provide scalability and versatility across market channels, including solar installers, electrical contractors, residential and commercial builders, and energy service providers. Please visit a view of our home energy solutions at our website, xpeon360.com/pages/residential.com. In January, we began distribution and fulfilling purchase orders These order deliveries reflect a significant milestone in bringing E360 HESS to the market. We believe the HESS product line will benefit from a fast growing market, battery market and energy storage market and consumer uptake can rapidly scale with the introduction of products. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:14:53HESS improves price, flexibility and integration. We anticipate HESS will benefit from incentives available through California's self generation incentive program and federal tax credits available through the Inflation Reduction Act for home battery systems. We think the home energy market provides complementary economics for our business model with an opportunity to generate recurring revenue streams, while enabling margin expansion in a market that is expected to surpass $123,000,000,000 globally by 2029 according to market data forecast. We are using proceeds from our public offering to provide necessary funding to further develop our new E360 home energy storage solutions, including completion of UL testing and certification processes, in addition to other requirements for various authorities having jurisdiction. I will now discuss our first quarter twenty twenty five financial results. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:15:57Revenue in the first quarter of twenty twenty five totaled $2,000,000 an increase of 111% from $1,000,000 in the prior year period. The increase in net sales was due in part to a rebound in the RV market overall, as well as completing our first sales in the home energy market. Gross profit in the first quarter of twenty twenty five totaled $500,000 or 24.5% of revenue compared to $200,000 or 22.9% of revenue in the prior year period and 20.5% of revenue for the full fiscal year ended 12/31/2024. The increase was primarily attributable to the increase in sales and lower cost of goods sold as a percentage of our sales. Selling, general and administrative expenses in the first quarter of twenty twenty five decreased 24.7% to $1,600,000 compared to $2,200,000 in the prior year period. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:17:01The decrease was primarily due to decreases in salaries and benefits, including lower non cash stock based compensation, as well as a reduction in headcount. Legal and professional fees have also seen a significant decrease as did rent expense due to terminating the lease on our second warehouse. Net loss in the first quarter of twenty twenty five totaled $1,200,000 a 47.5% improvement from a net loss of $2,200,000 in the prior year period. The decrease in net loss was primarily the result of higher net sales for the period ending 03/31/2025, combined with the decrease in selling, general and administrative expenses. Cash and cash equivalents totaled $1,100,000 as of 03/31/2025, compared to $500,000 as of 12/30/1024. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:18:00On 01/03/2025, our company closed a $2,600,000 registered direct offering in private placement priced at the market under NASDAQ rules. Net cash used in operating activities totaled $1,200,000 for the three months ending 03/31/2025, compared to 1,700,000 in the prior year period. Receiving inventory that was prepaid during the prior period accounted for a large portion of the change for three months ending 03/31/2025, as well as making payments to decrease our suspended liability. In closing, we remain confident and enthusiastic about our growth trajectory for 2025 and beyond. With substantial purchase orders already additional new customers expressing interest across our product lines, we look forward to announcements of additional milestones in the months ahead. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:19:01New customers are expressing interest across product lines, including our next generation GC2, Group 27 and Edge batteries. Most importantly, market tailwinds are further strengthening our expectations for continued sequential growth moving forward. Our focus on safety, quality and service is paying off with our customers and this has been translated to the top and bottom lines, underscored by the confidence from over 300 network resellers in our network nationwide. Our customers know that we truly believe in our product quality and manufacturing capabilities. Results for the RV Industry Association's March twenty twenty five survey of manufacturers found that total RV shipments increased 14% in the first quarter of twenty twenty five, and we believe the RV market will continue to gain ground through 2025 with shipments increasing traction throughout the year. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:20:04We are focused on expanding our addressable market, most recently with our E360 home energy storage solutions, which began production and shipments in January of twenty twenty five. Operationally, we have undertaken several initiatives to increase margins and reduce costs within the current line of our batteries. We are also actively engaged with resources in Washington to ensure that tariffs have little if any impact on our business and growth, and we are working to diversify our supply chain with potential sourcing from additional free trade countries such as South Korea to further avoid tariffs and increase volume and margin. We have also prepared for continued growth in tariff mitigation by adding six to twelve months of inventory early in the quarter before new tariffs were introduced. In fact, we believe there is a significant market disconnect in our current valuation as we now have more in inventory than our market cap. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:21:06Our long term goal is to onshore The U. S. Manufacturing of most of our components and assemblies, including cell manufacturing. To that end, we continue to work with Neovolta to combine our strengths towards a potential collaboration that aims to engineer a U. S.-based state of the art battery manufacturing facility and develop innovative lithium ion battery cell and module product designs. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:21:32We continue to work towards additional OEM market penetration by adding features, improving energy density and developing unique OEM centric form factors. Thank you all for attending. And now I would like to hand the call back over to the operator for additional questions. Operator? Operator00:21:52Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. Operator00:22:14At this time, we will pause momentarily to assemble our roster. We have no audio questions at this moment, ladies and gentlemen. And we'll now proceed to any questions from the webcast. Executive00:22:49Our first webcast question asks, how will the onshoring of a cell plant help XBEYOND three sixty financially? Brian SchaffnerCEO, Interim CFO & Director at Expion36000:22:59Well, are a couple of ways that it will help us financially. One of them is that we will have access to cells for our batteries at a cost plus basis, which should help us increase our margins with no threat of tariffs for those high density cells that are currently made in Asia. We also benefit from economies of scale through shared administrative tasks. Finally, we would be receiving royalties from the sale of the battery cells, and that would directly affect our cash and our bottom line. Executive00:23:37Our next question asks, what would your financial burden be should a domestic cell plant be constructed? Brian SchaffnerCEO, Interim CFO & Director at Expion36000:23:46Well, we provide the technology and the business partner in Asia. And our job is to bring our trusted manufacturing partners and their IP to the table to onshore production in The US and manage site construction, equipment installation, production ramp up, and then the management of production going forward. That is our job. Our partner bears the financial burden and responsibility of providing the necessary capital to get that done. Executive00:24:24And our last webcast question asks, how did your meetings go in Washington, and can you provide any additional details? Brian SchaffnerCEO, Interim CFO & Director at Expion36000:24:34Well, I can say that they were really incredible. They went very, very well. I'm greatly encouraged by the support we're receiving to make our onshoring efforts a reality. There is a great desire to increase US manufacturing investment in jobs. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:24:55And that's what we plan on being part of. And I come away from my meetings in Washington more encouraged than ever that this can become a possibility for us. And we do look forward to sharing more with our valued investors and friends in the future. Executive00:25:14That concludes the webcast question and answer portion of this session. Operator00:25:22This concludes our question and answer session. I would now like to turn the call back over to Mr. Schaffner for his closing remarks. Brian SchaffnerCEO, Interim CFO & Director at Expion36000:25:32Thank you. And thank you for attending today's call. We are excited about where we are headed and look forward to continuing to engage with our investors throughout the remainder of 2025. If for some reason we're unable to answer any of your questions, please do reach out to our IR firm, MZ Group, who would be more than happy to assist. This concludes our call. Operator00:25:57Thank you for attending today's presentation. You may now disconnect.Read moreParticipantsExecutivesBrian SchaffnerCEO, Interim CFO & DirectorAnalystsExecutivePowered by
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