Expion360 Reports 6% Decrease in Net Sales for Fiscal Year 2024, Despite Q4 Revenue Surge

Expion360 Inc. reported a decrease in net sales for the fiscal year ending December 31, 2024, totaling $5.6 million, down 6% from $6.0 million in 2023. The decline was attributed primarily to reduced consumer demand impacting original equipment manufacturer (OEM) sales. Despite the overall decrease, the company experienced a significant increase in sales during the fourth quarter of 2024, with revenues rising 131% to $2.0 million compared to $859,000 in the same quarter of the previous year. The cost of sales also saw a slight increase, rising to $4.5 million, which represented 79.5% of net sales, compared to 73.7% in 2023. This increase was linked to lower sales volumes and the liquidation of non-core products.

The company reported a net loss of $13.5 million for 2024, compared to a loss of $7.5 million in 2023. This increase in losses was largely due to a $5.0 million suspended liability expense related to a cash true-up payment provision in the Series A warrants issued during the August 2024 public offering. Selling, general, and administrative expenses decreased by 9.6% to $7.9 million, driven by reductions in legal and professional fees, although this was partially offset by increased costs associated with licenses and fees.

Strategically, Expion360 has made significant moves to expand its product offerings and market reach. In January 2025, the company began shipping its e360 Home Energy Storage Solutions, which include two lithium iron phosphate (LiFePO4) battery storage options aimed at residential and small business customers. This product line is expected to tap into the growing demand for home energy storage, which is projected to grow significantly in the coming years. Additionally, the company has introduced new battery models and enhanced existing products, including the next-generation 12V GC2 and Group 27 series batteries.

Operationally, Expion360 has maintained a customer base of over 300, including dealers, wholesalers, and OEMs, with a notable concentration of sales among a few key customers. In 2024, one customer accounted for approximately 14% of gross sales, while four others represented 60% of accounts receivable. The company is also focused on managing its supply chain effectively, relying on third-party manufacturers in Asia for battery production, while exploring alternative sourcing options to mitigate risks associated with raw material costs and availability.

Looking ahead, Expion360 faces challenges related to its financial health, as indicated by a substantial doubt about its ability to continue as a going concern. The company is actively seeking to raise additional capital and manage operational expenses to improve its liquidity position. Management remains optimistic about the potential for growth in the lithium battery market, particularly with the increasing adoption of lithium technology in recreational vehicles, marine applications, and home energy storage solutions.