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Expion360 Inc. (XPON-7.95%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $1,389,495 from $1,890,115 in the same quarter the previous year. The decrease is attributed to a downturn in the RV market and anticipation of new product releases.
Cost of sales for the quarter was $1,220,804, representing 87.9% of sales, compared to 75.0% in the same quarter of the previous year. This increase in cost ratio is due to higher fixed overhead costs per unit and liquidation of non-core products.
The company reported a gross profit of $168,691 for the quarter, compared to $472,563 in the previous year, with the decline attributed to decreased sales and higher cost ratios.
Selling, general, and administrative expenses decreased to $2,096,468 from $2,290,955, primarily due to reductions in legal and professional fees and salaries.
Net loss for the quarter was $8,814,657, up from $1,814,215 in the previous year. The increase in net loss is primarily due to lower net sales and higher other expenses, including a $5.9 million increase in derivative liability.
Cash used in operating activities was $6,649,331, while cash provided by investing activities was $122,061, mainly from the sale of fixed assets.
Cash provided by financing activities was $5,919,749, primarily from net proceeds of a public offering and exercise of warrants.
Expion360 had a working capital of $2,000,071 as of September 30, 2024. The company acknowledges its dependence on additional funding and cost management to meet future obligations.
The filing details various financial activities, including the August 2024 public offering and the termination of an equity line of credit with Tumim Stone Capital, LLC.
Expion360 continues to focus on expanding into the home energy storage market and developing new products, with a recent launch of the Edge battery aimed at off-grid enthusiasts.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Expion360 Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.