Expion360 Sees ’22 Revenue up 59% to Record $7.2 Million
REDMOND, Ore. – Expion360, Inc. (NASDAQ: XPON), an industry leader in lithium-ion battery power storage solutions, reported results for the three- and 12-months ended Dec. 31. All comparisons are to the same year-ago period unless otherwise noted.
Financial Highlights
- Revenue increased 8% in the fourth quarter to a record $1.45 million, with full year revenue up 59% to a record $7.2 million.
- Gross profit increased 39% to $2.3 million for fiscal year 2022.
- Net loss totaled $1.5 million in Q4, improving from a loss of $4.0 million in the same year-ago period. For the full year, net loss totaled $7.5 million versus $4.7 million in 2021.
- Approximately $3.3 million of the loss in 2022 was due to non-cash expenses, including stock-based compensation, interest expense, and other one-time costs associated with the company’s IPO and new public listing on Nasdaq. Cash and cash equivalents totaled $7.2 million at December 31, 2022, as compared to $8.1 million at September 30, 2022. Inventory on-hand December 31, 2022 totaled $4.5 million, $2.4 million higher than December 31, 2021.
Q4 2022 Operational Highlights
- Selected as the exclusive strategic supplier of high-capacity lithium-ion batteries for an overland RV trailer to be branded and sold by a top U.S. sports utility vehicle (SUV) manufacturer. Began shipping e360 batteries to the trailer OEM in Q1 2023. Several pre-configured models of the overland trailer with the e360-equipped solar power system are now available for pre-order online and through more than 5,000 SUV dealerships across North America. Pre-orders for a global edition are also being accepted.
- In December, began shipping battery prototypes to Cube Series, a manufacturer of “next generation” RV campers and trailers. Subsequent to the quarter, Cube Series selected Expion360 as its exclusive strategic supplier of high-energy lithium-ion batteries and power system components for its new ultra-lightweight, hard sided foldable camper designed for light duty trucks. Expion360 anticipates production shipments to begin in the second quarter of 2023.
- Also in December, selected as the exclusive strategic supplier of high-energy lithium-ion batteries for Imperial Outdoors’ new line off-grid, extreme overland RV campers. The win built upon a multi-year supplier relationship with the manufacturer. The e360-based system makes hot summer camping more enjoyable by powering a built-in DC air conditioning unit that requires 2,000 watts to operate. Such power requirements are not practical with traditional lead-acid batteries.
- Submitted application for two U.S. patents related to the company’s recently introduced AURA POWERCAP 600™ and AURA POWERCAP 800™. These are the first accessories designed by the company that can transform a standard Expion360 Li-ion battery into a 600-watt or 800-watt portable powerpack. The company continues to advance its proprietary battery and power system technology for use in industrial applications.
Management Commentary
“In 2022, we generated another year of record revenue that was largely due to our expanded product offerings and distribution network, as well as increased OEM market penetration,” stated Brian Schaffner, CEO of Expion360. “Our major expenses for the year were primarily related to our initial public offering in April and post IPO expansion efforts to support our key growth initiatives. Large strategic inventory purchases were also made in anticipation of increased OEM order flow and to follow our strategic procurement plan.
“During the quarter, we expanded our sales team by adding dedicated salespersons for each of our marine and overland camping market segments. We also achieved a series of major OEM wins, including being selected as the exclusive strategic supplier for an award-winning overland trailer to be sold under an iconic American SUV brand.
“We then won another exclusive strategic supplier agreement with Imperial Outdoors for their new extreme overland RV campers, which was soon followed by another exclusive with Cube Series for their new ultra-lightweight, foldable campers after a successful prototyping process.
“Earlier this month we announced being chosen as the exclusive strategic lithium-ion battery supplier for Xtreme Outdoors, which we believe is one of the world’s most recognizable teardrop brands and has more than 130 dealers across the U.S. and Canada.
“These numerous exclusive partnerships greatly elevate the awareness of our brand in the camper community, especially as our e360 batteries are featured at major RV events. The exclusivity also represents strong validation of our battery technology’s superior performance in harsh environments, as well as the high level of technical support we provide our customers, both before and after the sale.
“We also see many upsell opportunities presented by our OEM partners’ dealership networks. To be sure, none of this we expect to happen overnight, and we do not anticipate shipments under these major wins to begin ramping up until the second and third quarter of this year.
“We have also begun receiving pre-orders for our new AURA POWERCAP. This new accessory enables overland and marine enthusiasts to keep their important electronic gear up and running while off-grid or on-the-go. We are preparing to begin production shipments of this innovative product in the second quarter of 2023.
“In January, we announced in-house management and board transitions designed to drive accelerated growth. These changes have helped us to diversify our customer revenue concentration and provide greater visibility into our robust sales pipeline. We anticipate converting this pipeline into revenue growth and positive cashflow over the coming quarters.
“We plan to continue to focus on our sales and distribution channels which will support continued expansion of our distribution network and growing family of OEM partners. We are also preparing to expand into new markets, such as home energy storage. We’re excited about our new home energy storage product that we plan to launch in 2024. We expect our home energy solution to directly address the ‘Energy Trilemma’ of energy reliability, affordability and sustainability, and its impact on everyday lives.
“Given the tremendous momentum we’ve experienced coming into the new year and the many great opportunities ahead being pursued by our highly capable sales team, we see 2023 shaping up to be another strong year.”
Q4 2022 Financial Summary
Revenue in the fourth quarter of 2022 totaled $1.45 million, up 8% from $1.345 million 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 $371,000 or 22.3% of revenue as compared to $460,000 or 35.2% of revenue in the same year-ago quarter. The decrease in gross profit was primarily attributable to increased facility costs and labor as the company expanded its operations. The decrease was also due to increased landed costs, which the company is currently monitoring.
Selling, general and administrative expenses increased to $1.8 million compared to $1.4 million in the same year-ago quarter. The increase was primarily due to increased costs for supporting the company’s sales growth and business development.
Net loss totaled $1.5 million or $(0.22) per share compared to a net loss of $4.0 million or $(1.07) per share in the same year-ago period.
Cash and cash equivalents totaled $7.2 million at December 31, 2022, as compared to $8.1 million at September 30, 2022.
Full Year 2022 Financial Summary
Revenue in full year 2022 totaled $7.2 million, up 59% from $4.5 million in 2021. The increase was primarily due to increased sales of lithium-ion batteries and accessories to dealerships, wholesalers, and OEMs.
Gross profit totaled $2.3 million or 31.9% of revenue as compared to $1.6 million or 36.4% of revenue in 2021. The decrease in gross margin was primarily attributable to increased facility costs and labor as the company expanded its operations. The decrease was also partially due to increased landed costs, which the company is currently monitoring.
Selling, general and administrative expenses increased to $8.2 million compared to $2.9 in 2021. The increase in SG&A was primarily due to increased costs for supporting the company’s sales growth and business development along with various expenses that were incurred due to planning and preparing for its initial public offering. The most substantial increases were in salaries and benefits, of which $2.1 million was attributable to non-cash stock-based compensation charges.
Net loss totaled $7.5 million or $(1.23) per share compared to a net loss of $4.7 million or $(1.63) per share in 2021. Approximately, $3.3 million of the loss was due to non-cash stock-based compensation and interest expense, as well as one-time costs associated with the company’s IPO.
Capital Structure Summary
The company’s outstanding common stock as of December 31, 2022, totaled 6,802,464 shares. As of December 31, 2022, there were 888,436 warrants and 829,500 options issued which brings the fully diluted shares to 8,520,400 shares of common stock. The public float was approximately 3,580,952 shares as of December 31, 2022.
For additional information, please see the company’s annual report on Form 10-K filed with the SEC.
About Expion360
Expion360 is an industry leader of premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles and marine applications, with residential and industrial applications under development.
The company’s lithium batteries feature half the weight of standard lead-acid batteries while delivering three times the power and 10 times the number of charging cycles. Expion360 batteries also feature better construction and reliability compared to other Li-ion batteries on the market due to their superior design and quality materials. Specially reinforced, fiberglass-infused, premium ABS and solid mechanical connections help provide top performance and safety. With Expion360 batteries, adventurers can enjoy the most beautiful and remote places on Earth even longer.
The company is headquartered in Redmond, Oregon. Expion360 Li-ion batteries are available today through more than 213 dealers, wholesalers, private-label customers, and OEMs across the country. To learn more about the company, visit expion360.com.
Source: https://rvbusiness.com/expion360-sees-22-revenue-up-59-to-record-7-2-million/
