Lithium Battery Company Reports Sequential Q2 2024 Financial Results
Expion360's Second Quarter 2024 Financial Results: A Comprehensive Review.
Disclaimer: The information provided in this blog article is for informational purposes only and should not be construed as financial or investment advice. All data and statements are based on the financial results and operational updates released by Expion360 for the second quarter of 2024.
We are working endlessly to provide free insights on the stock market every day, and greatly appreciate those who are paid members supporting the development of the Stock Region mobile application. Stock Region offers daily stock and option signals, watchlists, earnings reports, technical and fundamental analysis reports, virtual meetings, learning opportunities, analyst upgrades and downgrades, catalyst reports, in-person events, and access to our private network of investors for paid members as an addition to being an early investor in Stock Region. We recommend all readers to urgently activate their membership before reaching full member capacity (500) to be eligible for the upcoming revenue distribution program. Memberships now available at https://stockregion.net
Expion360 Inc., a leader in lithium-ion battery power storage solutions, reported its financial and operational results for the second quarter of 2024, ending June 30, 2024. This period was marked by significant developments, including new product launches, partnerships, and financial maneuvers designed to position the company for future growth.
Financial Performance Overview
Expion360 reported a sequential revenue growth of 32% in the second quarter of 2024, with sales totaling $1.3 million, up from $1.0 million in the first quarter of 2024. However, on a year-over-year basis, net sales declined by 25.9%, down from $1.7 million in the second quarter of 2023. This decrease was primarily attributed to the lingering effects of the downturn in the recreational vehicle (RV) market, coupled with customers delaying orders in anticipation of Expion360's new products featuring enhanced capabilities.
Despite the revenue growth on a sequential basis, the company reported a net loss of $2.2 million for Q2 2024, which was higher than the $1.5 million loss recorded in the same period of the previous year. This increase in net loss is largely due to continued investments in new product development and launches. Selling, general, and administrative expenses remained flat at $2.0 million compared to the second quarter of 2023.
For the first half of 2024, Expion360's net sales amounted to $2.2 million, representing a 30.4% decrease from $3.2 million in the first half of 2023. The net loss for this period was $4.4 million, compared to $3.5 million in the first half of the previous year. Gross profit for the six months ended June 30, 2024, was $0.5 million, or 24.4% of sales, down from $0.9 million or 27.8% of sales in the prior year period.
Partnerships and Product Launches
One of the highlights of the second quarter was Expion360's announcement of an e-commerce retail partnership with Tractor Supply Company, the largest rural lifestyle retailer in the United States. This partnership aims to offer Expion360's products online, making them accessible to customers in 49 states. This move is expected to expand Expion360's market presence and reach a broader customer base.
In addition to the Tractor Supply partnership, Expion360 also collaborated with K-Z Recreational Vehicles, a subsidiary of Thor Industries, Inc., to integrate Expion360's batteries into K-Z RV's premium offerings. This partnership focuses on the integration of Expion360’s 51.2V 60Ah Edge Vertical Heat Conduction (VHC™) heated batteries and new Group 27 12.8V 100Ah VHC™ heated batteries, enhancing the performance and reliability of K-Z RV's products. Expion360 launched the Edge™ battery during the second quarter, available in both 12.8V and 51.2V configurations. The Edge™ battery features a slim profile that maximizes available space without compromising performance. It incorporates VHC™ technology and Integrated SmartTalk™ Bluetooth and controller area network communication, allowing users to monitor battery performance in real-time.
The RV market experienced a downturn in recent years, impacting Expion360's sales. However, there are signs of recovery, with RV shipments increasing by 8.4% in June 2024 compared to June 2023, according to the RV Industry Association. Expion360's management believes that the company is well-positioned to capture market share as demand returns, leveraging the superior capacity and flexibility of its products compared to lead-acid competitors.
Financial Maneuvers and Future Outlook
Expion360 closed a firm commitment underwritten public offering in the second quarter, raising gross proceeds of approximately $10.0 million. The net proceeds from this offering were used to fully repay an unsecured convertible promissory note issued to 3i, LP, and to terminate the common stock purchase agreement with Tumim Stone Capital, LLC. The remaining funds are earmarked to advance the commercialization of Expion360's new home energy storage solutions and to pursue key growth initiatives.
The company’s e360 Home Energy Storage Solutions, targeting home and small commercial solar users and installers, are currently under development. These solutions feature lithium iron phosphate (LiFePO4) battery storage systems that enable residential and small business customers to create stable micro-energy grids, mitigating the impact of power fluctuations and outages. Expion360 believes that the demand for home energy storage solutions will scale rapidly, driven by improvements in price, flexibility, and integration. Brian Schaffner, Chief Executive Officer of Expion360, highlighted the company's strategic moves during the second quarter. "The second quarter of 2024 was highlighted by an important new partnership, the launch of our next-generation battery products, and continued sequential revenue growth," said Schaffner. He emphasized the company's efforts to scale through the introduction of new technologies, entering new retail markets, and expanding into complementary verticals.
Schaffner also addressed the challenges posed by the downturn in the RV market. "While year-over-year sales continued to be impacted by the downturn in the RV market, the RV market is now gaining increased momentum. We are leveraging our products’ superior capacity and flexibility to lead-acid competitors and introducing new batteries and improved technologies, to capture market share as RV industry demand returns."
Schaffner expressed confidence in Expion360's ability to secure new orders and expand its market presence. "As the RV market recovers, we are well-positioned for new orders with our expanding portfolio of advanced batteries, supported by strong marketing initiatives. We are working to secure additional partnerships to expand our list of major resellers and enhance our market penetration."
Expion360's second-quarter financial results reflect a period of transition and growth. While the company faced challenges due to the downturn in the RV market, it made significant strides in product development, partnerships, and financial maneuvers to position itself for future success. The launch of new products, such as the Edgeâ„¢ battery and the e360 Home Energy Storage Solutions, along with the partnership with Tractor Supply Company, are expected to drive growth and expand Expion360's market presence.
As the company continues to navigate the evolving market landscape, it remains focused on leveraging its innovative technologies and initiatives to capture new opportunities and deliver value to its stakeholders.
Disclaimer: The information provided in this blog article is for informational purposes only and should not be construed as financial or investment advice. All data and statements are based on the financial results and operational updates released by Expion360 for the second quarter of 2024.
We are working endlessly to provide free insights on the stock market every day, and greatly appreciate those who are paid members supporting the development of the Stock Region mobile application. Stock Region offers daily stock and option signals, watchlists, earnings reports, technical and fundamental analysis reports, virtual meetings, learning opportunities, analyst upgrades and downgrades, catalyst reports, in-person events, and access to our private network of investors for paid members as an addition to being an early investor in Stock Region. We recommend all readers to urgently activate their membership before reaching full member capacity (500) to be eligible for the upcoming revenue distribution program. Memberships now available at https://stockregion.net