REDMOND, OR / ACCESSWIRE / May 13, 2022 / Expion360, Inc. (NASDAQ:XPON), which is focused on the design, assembly, manufacturing and sales of lithium-ion phosphate batteries and supporting accessories for recreational vehicles and marine applications, reported results for the quarter ended March 31, 2022. All comparisons are to the same year-ago period unless otherwise noted.
Q1 2022 Financial Highlights
- Revenue increased 144% to record $2.2 million.
- Gross profit increased 213% to $862,000.
- Gross margin expanded from 31.1% to 40.0%.
- Achieved first quarterly positive cash flow from operations.
Q1 2022 Operational Highlights
- One of the country's largest RV dealer groups became a customer, and initiated the sale and distribution of Expion360's lithium batteries and accessories nationwide.
- Began selling products to a customer with one of the largest and most well-established battery distribution networks in the U.S.
- Established a new 10,000 sq. ft. sales and distribution warehouse in Elkhart, Indiana, to support the company's planned nationwide market expansion.
- Secured a new 30,000 sq. ft. facility in Redmond, Oregon to support a planned new in-house battery pack assembly line and onshoring of this part of the production process.
- Strengthened company's global supply chain by securing a secondary source for lithium-ion phosphate cells from supplier based in Denmark.
- Commenced initial public offering (IPO) of common stock. On April 1, the company's common stock commenced trading on the NASDAQ Capital Market, with total net proceeds from the IPO of approximately $15.7 million.
'In Q1, we achieved record revenue and our first quarter of positive cash flow from operations,' stated John Yozamp, CEO of Expion360. 'This strong performance was the result of the increasing demand for our industry leading lithium-ion batteries and accessories for RV, marine and other mobile and stationary power applications. It also reflects how we have significantly strengthened our distribution channels and expanded our customer base of dealers, wholesalers and OEMs over the past year.
'In February, we took a major step towards onshoring our product assembly by securing a 30,000 sq. ft. facility near our headquarters in Redmond, Oregon. We anticipate this new in-house assembly line will improve our operational efficiencies while creating valuable American jobs. We are working towards it becoming operational before the end of the year.
'While many companies are reporting supply chain issues, we believe we have been able to successfully navigate these challenges. We have been leveraging our strong cash position and positive cash flow to opportunistically increase our inventory levels in anticipation of future needs. As a result, we have not experienced supply constraints in fulfilling the orders in our growing sales pipeline.
'In fact, in April, we began shipments of more than 500 e360 lithium batteries to another new major customer, AIM, who provides premium wholesale RV parts and accessories to hundreds of dealers, distribution chain partners and retailers nationwide.
'Also during the quarter, we began selling our products to one of the largest and most well-established battery distributors in the U.S. This distribution network operator has a long-standing strong reputation among RV and marine professionals. We believe their decision to purchase our products is a validation of the quality and innovations we have introduced with our e360 lithium battery product line.
'We expect these new customer wins to increase our sales and elevate our brand nationwide, as well as potentially open the door to new applications, like golf carts and other small service vehicles. These new major customers represent the fruits from our efforts to capitalize on the ongoing market conversion from lead-acid to lithium batteries as a primary method of power storage. Our battery products can also replace gas or propane powered generators to deliver clean and minimal-footprint electric power.
'Looking ahead, we expect our momentum to continue. The progress we've made expanding our customer base and distribution channels over the last year has set the stage for what we anticipate will be the best year yet for Expion360.'
Q1 2022 Financial Summary
Revenue in the first quarter of 2022 totaled $2.2 million, up 144% from $885,000 in the same year-ago quarter. The increase was primarily due to increased sales of lithium-ion batteries and accessories to dealerships, wholesalers and OEMs.
Gross profit totaled $862,000 or 40.0% of revenue as compared to $275,000 or 31.1% of revenue in the same year-ago quarter. The increase in gross margin was primarily due to product price adjustments, as well as increased sales of higher margin products primarily to dealerships.
Selling, general and administrative expenses increased to $1.2 million compared to $317,000 in the same year-ago quarter.
Net loss totaled $697,000 or $(0.16) per share compared to a net loss of $247,000 or $(0.10) per share in the same year-ago period.
Cash and cash equivalents and short-term investments totaled $799,000 at March 31, 2022, as compared to $773,000 at December 31, 2021. Subsequent to the first quarter of 2022, the company raised net proceeds of approximately $15.7 million in its IPO on the Nasdaq Capital Markets. Cash and equivalents as of May 12, 2022 total approximately $11.6 million.
Expion360 is an industry leader of premium lithium batteries and accessories for recreational vehicles and the marine industry, with planned expansion into residential and industrial applications. The company sources, assembles and white-labels components and finished products. Its 360 (12V/360Ah) is 3.5x the capacity of an average RV battery and is unique in form factor. Founded in 2016 by the company's CEO, John Yozamp, Expion360 designs and engineers its batteries out of its headquarters in Redmond, Oregon. To learn more about the company, visit, expion360.com.
Forward-Looking Statements and Safe Harbor Notice
All statements other than statements of historical facts included in this press release are 'forward-looking statements' (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as 'projected,' 'expect,' 'possibility' and 'anticipate.' The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company's Prospectus filed with the SEC on April 4, 2022, previous filings, subsequent filings and future periodic reports filed with the SEC. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
The Company cautions that statements and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release.
Ronald Both or Justin Lumley
CMA Investor Relations
Tel (949) 432-7566
CMA Media Relations
Tel (949) 432-7572
Statements of Operations for the Three Months Ended March 31, 2022 and 2021 (Unaudited)
SOURCE: Expion360 Inc.
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