REDMOND, Ore. - Expion360 Inc. (NASDAQ: XPON), a leader in lithium-ion battery power storage solutions, announced today that it expects to see a significant increase in revenue due to new partnerships within its OEM and distribution network. The company, which showcased its battery products at the Elkhart RV Dealer Open House in September, has secured several new OEM customers and a new distributor as a result of its strategic sales efforts across the United States.
The new relationships are projected to generate approximately $5.0 million in incremental revenue for the fiscal year 2025 and are anticipated to contribute an estimated $1.4 million increase in gross profits for the same period. This growth is attributed to the company's expanded footprint in the RV markets and its commitment to delivering quality power solutions across various industries and sales channels.
Brian Schaffner, Chief Executive Officer of Expion360, expressed satisfaction with the company's momentum, citing strong interest in their product line, including the next-generation GC2, Group 27, and new Edge batteries. He believes that the new partnerships reflect the company's dedication to advancing energy solutions and meeting the demand for high-quality lithium battery technology.
The expansion of the OEM network is expected to strengthen Expion360's presence in the recreational vehicle (RV), off-grid, and surveillance industries, and through the addition of a new distributor, the company aims to broaden access to its innovative power solutions.
Expion360 specializes in premium lithium iron phosphate (LiFePO4) batteries and accessories for various applications, including recreational vehicles and marine, with residential and industrial applications under development. The company entered the home energy storage market in December 2023, introducing two premium LiFePO4 battery storage systems designed to help customers create their own micro-energy grid.
The company's batteries are known for their lightweight, power efficiency, and durability, offering adventurers the ability to enjoy remote locations for extended periods. Expion360's products are available through a network of over 300 dealers, wholesalers, private-label customers, and OEMs nationwide.
This news is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. These statements are intended to be covered by safe harbor provisions, and the company cautions that actual results may differ materially from those projected.
In other recent news, Expion360 Inc. has taken significant steps in its business operations. The company has announced a 1-for-100 reverse stock split approved by the Board of Directors and stockholders, aimed at complying with Nasdaq's minimum bid price requirement. In addition, the company has terminated a major commercial lease agreement early, a move expected to result in savings of approximately $40,000 per month over the next 51 months.
The outcomes of Expion360's Annual Meeting of Stockholders included the election of five directors and the ratification of the reverse stock split. However, the proposal to reduce the number of authorized shares was not passed. The company also priced its public offering with the goal of raising approximately $10 million, intended to repay outstanding debt and provide working capital for general corporate purposes.
In terms of product development, Expion360 has introduced its innovative Edge battery, featuring advanced internal heating technology known as Vertical Heat Conduction™, and real-time monitoring capabilities facilitated by Integrated SmartTalk™ Bluetooth and CAN Bus communication. Preorders for the Edge battery are now open, with shipping expected to commence in the third quarter of 2024. These are the recent developments from Expion360 Inc.
InvestingPro Insights
While Expion360 Inc. (NASDAQ: XPON) projects significant revenue growth from new partnerships, recent financial data from InvestingPro paints a challenging picture for the company. According to InvestingPro data, XPON's revenue for the last twelve months as of Q3 2024 was $4.5 million, with a concerning revenue growth decline of -31.26% over the same period.
InvestingPro Tips highlight that XPON is "quickly burning through cash" and "not profitable over the last twelve months." These factors may pose challenges to the company's ambitious growth projections. The stock's performance has also been concerning, with InvestingPro data showing a -99.38% price total return over the past year.
Despite these headwinds, it's worth noting that XPON "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company pursues its expansion plans. The company's price-to-book ratio of 0.55 suggests the stock might be undervalued relative to its book value, potentially offering an opportunity for investors who believe in the company's long-term prospects.
Investors considering XPON should be aware that InvestingPro lists 12 additional tips for this stock, offering a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for those looking to make informed decisions about Expion360's potential in the evolving energy storage market.
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