Expion360 Reports Second Quarter 2025 Financial and Operational Results

Q2 2025 Sales Growth of 134% to $3.0 Million Fueled by Strong Demand for New Products and Technologies Records Two of the Most Successful Months of Sales in Company History in Q2 2025 Sixth Consecutive Quarter of Sales Growth REDMOND, Ore., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium iron phosphate battery power storage, today reported its financial and operational results for the first quarter ended June 30, 2025. Second Quarter 2025 and Subsequent Financial and Operational Highlights Q2 2025 net sales totaled $3.0 million, up 134% from Q2 2024, and up 46% from Q1 2025.First half 2025 net sales of $5.0 million, up 124% from the first half of 2024.6th consecutive quarter of sales growth.Gross profit increased 91% compared to Q2 2024.First half 2025 operating cash burn improved 52% compared to the first half of 2024.$1.4 million in cash, cash equivalents and accounts receivable.Regained compliance with Nasdaq Listing Rule 5550(a)(2) as of August 13, 2025. Management Commentary "The second quarter of 2025 was highlighted by two of the most successful sales months in our history, providing exceptional sales growth and momentum,” said Brian Schaffner, Chief Executive Officer and Interim Chief Financial Officer. “Net sales grew 134% year over year to $3.0 million, and sequentially for a sixth consecutive quarter on strong organic sales within our large customer base of dealers, distributors, OEMs and private label clients. “Gross margin was adversely affected by ongoing tariff uncertainty during the quarter and increased volume of lower margin pass-through product sales, decreasing from 24% in Q1 2025 to 21% in Q2 2025. Gross margin impact was partially offset by our previous tariff mitigation efforts of adding 6-12 months of inventory before new tariffs were introduced, which reduced costs within our current line of batteries. We are also seeking to improve margins by diversifying our supply chain and have already transitioned certain products to U.S.-based manufacturers. This shift has resulted in lower costs for these products given the current tariff environment—particularly for steel and aluminum accessories—and we continue to explore additional sourcing opportunities from other countries. Our long-term goal is to onshore manufacturing of most of our components and assemblies. We are also actively engaged with resources in Washington, D.C. to advocate for reduced tariff impacts on our business and operations.” “Our Home Energy Storage Solutions (HESS), which began production earlier this year, enable residential and small business customers to create their own stable micro-energy grid and lessen the impact of increasing power fluctuations and outages. Of our two home energy product options, one has achieved UL9540 certification, and the second is in the final stages of UL approval. Proper UL certification is vital as states such as California require UL9540 certification of the battery and inverter system to qualify for tax credits.” “Looking ahead, with our current balance sheet positioning, from a combination of cash, receivables, and strong inventory levels, we believe we are well positioned to execute on our key growth initiatives, including adding OEM partnerships and distributors, further developing HESS, and introducing new technologies and batteries. We remain focused on expanding distribution and advancing our lithium-ion battery technology,” concluded Mr. Schaffner. Second Quarter 2025 Financial Summary Net sales in the second quarter of 2025 totaled $3.0 million, an increase of 134% from $1.3 million in the prior year period. The increase in net sales was primarily attributable to sales growth in the RV market along with accessory sales growth through integrator partners. Gross profit totaled $0.6 million, or 21% as a percentage of sales, as compared to $0.3 million, or 25% as a percentage of sales, in the prior year period. The decrease in gross margin percentage was primarily attributable to the product mix sold in different periods. Selling, general and administrative expenses were $2.0 million, which was relatively flat compared to the prior year period, but reflecting a decrease of 91 percentage points as a percentage of sales, from 157% of sales in the second quarter of 2024 to 66% of sales in the second quarter of 2025. The nominal decrease was primarily due to reduced costs of rent and related expenses, partially offset by smaller increases in travel expense, research and development, and other expenses. Net loss totaled $1.4 million, a 38% improvement from $2.2 million in the prior year period. The decrease in net loss was primarily the result of higher net sales combined with relatively flat selling, general, and administrative expenses. First Half 2025 Financial Summary For the six months ended June 30, 2025, net sales totaled $5.0 million, an increase of 124% from $2.2 million in the prior year period. The increase in net sales was primarily attributable to sales growth in the RV market along with accessory sales growth through integrator partners. Gross profit totaled $1.1 million, or 22% as a percentage of sales, compared to $0.5 million, or 24% as a percentage of sales, in the prior year period. The decrease in gross margin percentage was primarily attributable to the product mix sold in different periods. Selling, general and administrative expenses decreased 14% to $3.6 million compared to $4.2 million in the prior year period, and decreased as a percentage of sales by 114 percentage points, from 186% of sales in the first half of 2024 to 72% of sales in the first half of 2025. The decrease was primarily due to decreases in salaries and benefits, rent and related expenses, and legal and professional fees, slightly offset by an increase in research and development expenses. Net loss totaled $2.5 million, a 43% improvement from $4.4 million in the prior year period. The decrease in net loss was primarily the result of higher net sales for the period combined with a decrease in selling, general, and administrative expenses. Cash and cash equivalents totaled $0.7 million as of June 30, 2025, compared to $0.5 million as of December 31, 2024. Net cash used in operating activities totaled $1.6 million, compared to $3.4 million in the prior year period. Receiving inventory that was prepaid during the prior period accounted for the majority of the change for the six months ended June 30, 2025. Compliance with Nasdaq Listing Rules The Company has regained compliance with the Nasdaq minimum bid price requirement and its common stock continues to be listed and traded on The Nasdaq Capital Market. The Company previously received a notice from The Nasdaq Stock Market stating it was not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2). However, the trading price of the Company’s common stock closed above $1.00 per share for more than ten consecutive trading days and, as a result, the Company received a letter from Nasdaq advising that the Company had regained compliance with the Nasdaq minimum bid price requirement. Second Quarter 2025 Results Conference Call Brian Schaffner, Chief Executive Officer and Interim Chief Financial Officer of Expion360, will host the conference call, followed by a question-and-answer period. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here. To access the call, please use the following information: Date:Wednesday, August 13, 2025Time:4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)Dial-in:1-844-825-9789International Dial-in:1-412-317-5180Conference Code:10200569Webcast:XPON Q2 2025 Financial Results Conference Call A telephone replay will be available approximately three hours after the call and will remain available through August 27, 2025, by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 10200569. The replay can also be viewed through the webcast link above and the presentation utilized during the call will be available via the investor relations section of the Company’s website here. About Expion360 Expion360 is an industry leader in premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles, marine applications, Light EV and residential energy storage. The Company’s lithium-ion batteries feature half the weight of standard lead-acid batteries while delivering three times the power and ten times the number of charging cycles. Expion360 batteries also feature better construction and reliability compared to other lithium-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 lithium-ion batteries are available today through more than 300 dealers, wholesalers, private-label customers, and OEMs across the country. To learn more about the Company, visit expion360.com. Forward-Looking Statements The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements included in this press release include, but are not limited to, statements relating to the Company’s ability to execute on its growth strategy and initiatives, and expand sales to new and existing customers; the Company’s ability to implement cost mitigation efforts, including diversifying its supply chain and onshoring manufacturing; the impact of tariffs on the Company’s business and financial results, and its ability to mitigate those impacts; and the Company’s ability to expand its product portfolio and introduce new technologies. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law or Nasdaq listing standards, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Company Contact:Brian Schaffner, CEO and Interim CFO541-797-6714Email Contact External Investor Relations:Chris Tyson, Executive Vice PresidentMZ Group - MZ North America949-491-8235XPON@mzgroup.us www.mzgroup.us EXPION360 INC.BALANCE SHEETS As ofJune 30, 2025(Unaudited) As ofDecember 31,2024Assets Current Assets Cash and cash equivalents$684,920 $547,565 Accounts receivable, net 715,724 613,022 Inventory 5,138,263 4,831,461 Prepaid/in-transit inventory 485,507 1,612,686 Prepaid expenses and other current assets 350,848 236,461 Total current assets 7,375,262 7,841,195 Property and equipment 807,082 914,081 Accumulated depreciation (427,459) (430,191)Property and equipment, net 379,623 483,890 Other Assets Operating leases – right-of-use assets 818,188 754,832 Deposits 32,016 27,471 Total other assets 850,204 782,303 Total assets$8,605,089 $9,107,388 Liabilities and stockholders’ equity Current liabilities Accounts payable$675,351 $338,091 Customer deposits 48,693 48,474 Accrued expenses and other current liabilities 250,390 187,464 Current portion of operating lease liability 318,335 256,153 Current portion of long-term debt 30,772 31,758 Suspended Liability 4,485,948 4,985,948 Total current liabilities 5,809,489 5,847,888 Long-term debt, net of current portion and discount 182,842 198,412 Operating lease liability, net of current portion 545,535 542,764 Total liabilities$6,537,866 $6,589,064 Stockholders’ equity Preferred stock, par value $0.001 per share; 20,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024 — — Common stock, par value $0.001 per share; 200,000,000 shares authorized; 3,374,468 and 2,096,082 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 3,374 2,096 Additional paid-in capital 39,159,947 37,091,468 Accumulated deficit (37,096,098) (34,575,240)Total stockholders’ equity 2,067,223 2,518,324 Total liabilities and stockholders’ equity$8,605,089 $9,107,388 EXPION360 INC.STATEMENTS OF OPERATIONS (UNAUDITED) For the Three Months EndedJune 30, For the Six Months EndedJune 30, 2025 2024 2025 2024Net sales$2,989,947 $1,278,109 $5,039,278 $2,249,967 Cost of sales 2,367,337 952,646 3,915,101 1,701,982 Gross profit 622,610 325,463 1,124,177 547,985 Selling, general and administrative 1,972,806 2,004,260 3,622,241 4,193,734 Loss from operations (1,350,196) (1,678,797) (2,498,064) (3,645,749) Other expense Interest income — (18,596) (1) (45,460)Interest expense 3,649 250,560 9,317 503,846 Loss on sale of property and equipment 14,978 — 13,353 306 Settlement expense — 309,000 — 309,000 Other (income) / expense — 11 50 (1,189)Total other expense 18,627 540,975 22,719 766,503 Loss before income taxes (1,368,823) (2,219,772) (2,520,783) (4,412,252) Franchise taxes 37 460 75 920 Net loss$(1,368,860) $(2,220,232) $(2,520,858) $(4,413,172) Net loss per share (basic and diluted)$(0.41) $(30.20) $(0.78) $(61.48)Weighted-average number of common shares outstanding 3,335,237 73,517 3,223,003 71,787 EXPION360 INC.STATEMENTS OF CASH FLOWS (UNAUDITED) For the Six Months Ended June 30, 2025 2024Cash flows from operating activities Net loss$(2,520,858) $(4,413,172)Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 65,244 94,866 Amortization of convertible note costs — 333,572 Loss on sale of property and equipment 13,353 306 Stock-based settlement — 209,000 Stock-based compensation 183,950 438,923 Issuance of common stock in exchange for services 106,250 — Non-cash expense in exchange for asset disposal 21,420 — Changes in operating assets and liabilities: Increase in accounts receivable (102,702) (198,071) (Increase) / Decrease in inventory (306,802) 463,558 (Increase) / Decrease in prepaid/in-transit inventory 1,127,179 (555,338)Increase in prepaid expenses and other current assets (114,387) (27,242)Increase in deposits (4,545) — Increase in accounts payable 337,260 145,566 Increase / (Decrease) in customer deposits 219 (3,329)Increase in accrued expenses and other current liabilities 62,926 98,166 Increase in right-of-use assets and lease liabilities 1,597 6,929 Decrease in suspended liability (500,000) — Net cash used in operating activities (1,629,896) (3,406,266) Cash flows from investing activities Purchases of property and equipment — (10,550)Net proceeds from sale of property and equipment 4,250 87,684 Net cash provided by investing activities 4,250 77,134 Cash flows from financing activities Principal payments on convertible note — (365,671)Principal payments on long-term debt (16,556) (101,560)Principal payments on stockholder promissory notes — (62,500)Net proceeds from exercise of warrants — (4) Net proceeds from issuance of common stock 1,779,557 828,492 Net cash provided by financing activities 1,763,001 298,757 Net change in cash and cash equivalents 137,355 (3,030,375) Cash and cash equivalents, beginning 547,565 3,932,698 Cash and cash equivalents, ending 684,920 902,323

Expion360 Reports Second Quarter 2025 Financial and Operational Results

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