Upcoming Launch of Next Generation Products to Expand Market Opportunities
REDMOND, Ore., May 15, 2026 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) ("Expion360" or the "Company"), an industry leader in lithium-ion battery power storage solutions, today reported its financial and operational results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial and Operational Highlights
- Net sales for the three months ended March 31, 2026 totaled $1.6 million, a 24% decrease compared to $2.0 million for the same period in 2025.
- Gross profit for the three months ended March 31, 2026 totaled $0.4 million, a 21% decrease compared to $0.5 million for the same period in 2025.
- Net cash used in operations for the three months ended March 31, 2026 was $1.1 million, compared to $1.2 million for the same period in 2025.
- Cash and cash equivalents totaled $3.1 million as of March 31, 2026, compared to $3.0 million as of December 31, 2025.
- Working capital was $5.6 million as of March 31, 2026, compared to $6.0 million as of December 31, 2025.
- Stockholders' equity totaled $6.0 million as of March 31, 2026, compared to $6.5 million as of December 31, 2025.
- Entered into a strategic partnership related to the launch of the DASGen Hybrid Energy Storage System, an energy storage solution intended for use on construction and industrial job sites, marking Expion360's entry into the industrial market.
- Announced the upcoming release of three next-generation battery models, with commercial availability expected in the second half of 2026.
Management Commentary
"The first quarter of 2026 was underscored by ongoing progress for our technology roadmap and diversifying our portfolio into strategic adjacent verticals including construction and industrial markets," said Joseph Hammer, Chief Executive Officer and Chairman of the Board of Directors of Expion360. "First quarter sales were impacted by the strategic decision to discontinue resale of certain low-margin accessories in order to increase our profit margins. Also, certain OEM customers entered the period carrying elevated battery inventory levels built up through year-end, which tempered order volume in the quarter. We anticipate demand from these customers to normalize in the second quarter of 2026 and beyond as their inventories return to standard operating levels. We continue to position the Company toward the achievement of increased market share and revenue growth with new products and technologies, OEM market penetration, and expanded reach through new partnerships.
"We are highly focused on scaling our technology, including the upcoming introduction of three next-generation lithium battery models for the industrial market, a key strategic target for our expansion into adjacent verticals. With commercial availability expected in the second half of 2026, the new models build upon our established reputation in the RV and marine sectors. They are designed to meet the increasing demand for higher-energy-density, fully-featured battery systems within commercial and industrial sectors. We expect to provide these batteries at a lower cost than current equivalent models, while delivering superior capacity and enhanced performance. Additionally, updated battery designs are intended to optimize our internal cost structures and margins which we expect will enable product development reinvestment.
"During the quarter we partnered with Dealer Accessory Supply to introduce the DASGen Hybrid Energy Storage System, an energy solution engineered for use at construction and industrial job sites. Utilizing Expion360 battery technology, the system functions as an energy buffer between diesel generators and jobsite electrical loads. By storing and deploying power based on real-time load requirements, the system can reduce generator runtimes and increase efficiency, depending on specific site conditions and usage patterns. Following successful performance at test sites and early interest from major construction firms, we are preparing to offer this system to the market through our commercial sales organization.
"We expect the future development of our technology roadmap will involve the diversification of our portfolio and the exploration of new revenue streams. We are focused on higher-density lithium-ion and LiFePO4 chemistries, modular platforms, and enhanced battery management systems aimed at improving safety, longevity, and overall cost efficiency for mobile and off-grid applications. We are also developing specialized energy storage solutions for surveillance and monitoring use cases. Our research and development efforts remain concentrated on next-generation storage technologies that support scalable manufacturing, improved energy density and lower costs. To strengthen our vertical integration, we may also explore selective partnerships or acquisitions in energy management and power electronics.
"Looking ahead, we are pursuing opportunities within the construction and industrial sectors for our three new next-generation lithium battery models. Our near-term objectives include continuing OEM market penetration and expanding our reach through new partnerships. New products are under development, including new battery form factors and features tailored to specific OEM requirements. We remain committed to innovation, disciplined margin improvement, and steady growth across our end markets," concluded Mr. Hammer.
First Quarter 2026 Financial Summary
Net sales in the first quarter of 2026 totaled $1.6 million, a decrease of 24% from $2.0 million in the prior year period. The decrease in net sales was primarily attributable to discontinuing sales of certain low-margin accessories. In addition, certain OEM customers entered 2026 carrying elevated battery inventory levels, which is expected to normalize in the second quarter of 2026 and beyond.
Gross profit in the first quarter of 2026 totaled $0.4 million, or 25% as a percentage of net sales, compared to gross profit of $0.5 million, or 24% as a percentage of net sales, in the prior year period. The decrease in gross profits was primarily attributable to the decrease in net sales, although gross profit as a percentage of net sales increased due to discontinuing sales of low-margin items.
Selling, general, and administrative expenses were $2.2 million in the first quarter of 2026, an increase of 31% from $1.6 million in the first quarter of 2025. The increase was primarily due to increases in legal and professional fees and salaries and benefits.
Net loss in the first quarter of 2026 totaled $1.8 million, compared to $1.2 million in the first quarter of 2025. The change was primarily the result of higher selling, general, and administrative expenses as well as lower net sales.
Cash and cash equivalents totaled $3.1 million as of March 31, 2026, compared to $3.0 million as of December 31, 2025, an increase of $0.1 million, or 3%. Working capital was $5.6 million as of March 31, 2026, compared to $6.0 million as of December 31, 2025, a decrease of $0.4 million, or 7%. Stockholders' equity totaled $6.0 million as of March 31, 2026, compared to $6.5 million as of December 31, 2025, a decrease of $0.5 million, or 7%.
Net cash used in operating activities for the three months ended March 31, 2026 decreased 8% to $1.1 million from $1.2 million in the prior year period.
About Expion360
Expion360 is an industry leader in premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles, marine applications, Light EV and industrial applications.
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 casing and solid mechanical connections help provide top performance and safety. Expion360 delivers advanced lithium battery technology that powers every adventure, every mission, for the moments that matter.
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
This press release contains "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 anticipated timing of commercial availability of its products, the expected demand for its products, the Company's ability to execute on its growth strategy and initiatives, the Company's ability to expand its product portfolio and introduce new technologies, and the Company's expectations for product features and capabilities and market opportunity. 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, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.
Company Contact:
541-797-6714
Shawna.Bowin@expion360.com
External Investor Relations:
Chris Tyson, Executive Vice President
MZ Group - MZ North America
949-491-8235
XPON@mzgroup.us
www.mzgroup.us
| EXPION360 INC. BALANCE SHEETS | |||||||
| As of March 31, 2026 (Unaudited) | As of December 31, 2025 | ||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | - | 3,056,538 | - | 2,969,096 | |||
| Accounts receivable, net | 616,448 | 718,964 | |||||
| Inventory | 2,433,581 | 2,858,780 | |||||
| Prepaid/in-transit inventory | 174,362 | 318,440 | |||||
| Prepaid expenses and other current assets | 326,353 | 179,645 | |||||
| Total current assets | 6,607,282 | 7,044,925 | |||||
| Property and equipment | 807,083 | 807,083 | |||||
| Accumulated depreciation | (503,774 | - | (478,861 | - | |||
| Property and equipment, net | 303,309 | 328,222 | |||||
| Other Assets | |||||||
| Operating leases - right-of-use asset | 587,672 | 666,199 | |||||
| Deposits | 32,016 | 32,016 | |||||
| Total other assets | 619,688 | 698,215 | |||||
| Total assets | - | 7,530,279 | - | 8,071,362 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable | - | 419,599 | - | 403,792 | |||
| Customer deposits | 1,042 | 2,978 | |||||
| Accrued expenses and other current liabilities | 241,448 | 221,863 | |||||
| Current portion of operating lease liability | 332,410 | 337,246 | |||||
| Current portion of long-term debt | 31,572 | 31,058 | |||||
| Total current liabilities | 1,026,071 | 996,937 | |||||
| Long-term debt, net of current portion and discount | 158,106 | 166,187 | |||||
| Operating lease liability, net of current portion | 296,503 | 372,478 | |||||
| Total liabilities | 1,480,680 | 1,535,602 | |||||
| Stockholders' equity | |||||||
| Preferred stock, par value $0.001; 20,000,000 shares authorized; zero shares issued and outstanding | - | - | |||||
| Common stock, par value $0.001; 200,000,000 shares authorized; 11,438,298 and 9,781,739 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 11,438 | 9,782 | |||||
| Additional paid-in capital | 48,610,756 | 47,336,405 | |||||
| Accumulated deficit | (42,572,595 | - | (40,810,427 | - | |||
| Total stockholders' equity | 6,049,599 | 6,535,760 | |||||
| Total liabilities and stockholders' equity | - | 7,530,279 | - | 8,071,362 | |||
| EXPION360 INC. STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net sales | - | 1,565,847 | - | 2,049,331 | ||||
| Cost of sales | 1,169,771 | 1,547,764 | ||||||
| Gross profit | 396,076 | 501,567 | ||||||
| Selling, general and administrative | 2,166,985 | 1,649,435 | ||||||
| Loss from operations | (1,770,909 | - | (1,147,868 | - | ||||
| Other (income) / expense: | ||||||||
| Interest income | (14,316 | - | (1 | - | ||||
| Interest expense | 5,519 | 5,668 | ||||||
| Gain on sale of property and equipment | - | (1,625 | - | |||||
| Other expense | 30 | 50 | ||||||
| Total other (income) / expense | (8,767 | - | 4,092 | |||||
| Loss before taxes | (1,762,142 | - | (1,151,960 | - | ||||
| Franchise taxes | 26 | 38 | ||||||
| Net loss | - | (1,762,168 | - | - | (1,151,998 | - | ||
| Net loss per share (basic and diluted) | - | (0.17 | - | - | (0.37 | - | ||
| Weighted-average number of common shares outstanding | 10,459,784 | 3,109,522 | ||||||
| EXPION360 INC. STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | - | (1,762,168 | - | - | (1,151,998 | - | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 24,913 | 34,028 | ||||||
| Gain on sale of property and equipment | - | (1,625 | - | |||||
| Stock-based compensation | 53,190 | 50,721 | ||||||
| Valuation of inventory | (74,443 | - | - | |||||
| Allowance for doubtful accounts | 7,626 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 94,890 | 20,397 | ||||||
| Inventory | 499,642 | (1,204,572 | - | |||||
| Prepaid/in-transit inventory | 144,078 | 1,463,145 | ||||||
| Prepaid expenses and other current assets | (146,708 | - | 28,088 | |||||
| Deposits | - | 2,000 | ||||||
| Accounts payable | 15,807 | 29,366 | ||||||
| Customer deposits | (1,936 | - | (6,554 | - | ||||
| Accrued expenses and other current liabilities | 19,585 | 9,410 | ||||||
| Right-of-use assets and lease liabilities | (2,284 | - | (1,340 | - | ||||
| Suspended liability | - | (500,000 | - | |||||
| Net cash used in operating activities | (1,127,808 | - | (1,228,934 | - | ||||
| Cash flows from investing activities | ||||||||
| Net proceeds from sale of property and equipment | - | 2,750 | ||||||
| Net cash provided by investing activities | - | 2,750 | ||||||
| Cash flows from financing activities | ||||||||
| Principal payments on long-term debt | (7,567 | - | (8,331 | - | ||||
| Net proceeds from issuance of common stock | 1,222,817 | 1,779,557 | ||||||
| Net cash provided by financing activities | 1,215,250 | 1,771,226 | ||||||
| Net change in cash and cash equivalents | 87,442 | 545,042 | ||||||
| Cash and cash equivalents, beginning | 2,969,096 | 547,565 | ||||||
| Cash and cash equivalents, ending | - | 3,056,538 | - | 1,092,607 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | - | 5,573 | - | 6,001 | ||||
| Cash paid for franchise taxes | - | 176 | - | - | ||||
