Expion360 Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Expion360 Inc. has filed its 2023 10-K report detailing financial performance and operational data.</b>

AI Summary

Expion360 Inc. (XPON) filed a Annual Report (10-K) with the SEC on March 28, 2024. Expion360 Inc. filed its 2023 Form 10-K on March 28, 2024, reporting on its fiscal year ending December 31, 2023. The company is incorporated in Nevada and operates in the Miscellaneous Electrical Machinery, Equipment & Supplies sector. Its principal business address is located at 2025 SW Deerhound Ave, Redmond, OR 97756. The filing covers financial data for the fiscal years 2021, 2022, and 2023. Key financial statement components like Common Stock, Additional Paid-In Capital, and Retained Earnings are detailed for these periods.

Why It Matters

For investors and stakeholders tracking Expion360 Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Expion360's financial health and operational status for the fiscal year 2023, crucial for investors to assess the company's performance and future prospects. The detailed breakdown of assets, equity, and liabilities in the filing allows stakeholders to understand the company's financial structure, investment in equipment, and outstanding debt instruments.

Risk Assessment

Risk Level: medium — Expion360 Inc. shows moderate risk based on this filing. The company's financial performance and operational details are presented in a standard 10-K format, indicating a routine disclosure process. However, the absence of specific financial performance metrics like revenue or net income in the provided text prevents a deeper assessment of its financial health, thus classifying the risk as medium.

Analyst Insight

Review the full 10-K filing for detailed financial statements, management discussion and analysis, and risk factors to form an investment thesis.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-03-28 — Filing Date (FILED AS OF DATE)
• 001-41347 — SEC File Number (SEC FILE NUMBER)
• 3690 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• Expion360 Inc. (company) — CONFORMED NAME
• 2025 SW Deerhound Ave, Redmond, OR 97756 (address) — BUSINESS ADDRESS
• NV (state) — STATE OF INCORPORATION
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240328 (date) — FILED AS OF DATE

FAQ

Industry Context

Expion360 Inc. operates within the Miscellaneous Electrical Machinery, Equipment & Supplies industry. This sector involves the manufacturing and distribution of electrical equipment and supplies.

Regulatory Implications

The company is subject to the reporting requirements of the Securities Exchange Act of 1934, as evidenced by its filing of a Form 10-K.

What Investors Should Do

1. Analyze the full financial statements within the 10-K for revenue, net income, and cash flow.
2. Examine the Management's Discussion and Analysis (MD&A) section for insights into business performance and outlook.
3. Review the Risk Factors section for potential challenges and uncertainties facing Expion360.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 2023 10-K.
• 2024-03-28: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing of a 10-K for Expion360 Inc. as per the provided data, indicating a new reporting cycle or transition to public reporting standards.

Key Financial Figures

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Filing Documents

• xpon_10k.htm (10-K) — 1151KB
• ex4_4.htm (EX-4.4) — 22KB
• ex10_3.htm (EX-10.3) — 9KB
• ex21_1.htm (EX-21.1) — 1KB
• ex23_1.htm (EX-23.1) — 3KB
• ex31_1.htm (EX-31.1) — 12KB
• ex31_2.htm (EX-31.2) — 12KB
• ex32_1.htm (EX-32.1) — 6KB
• ex32_2.htm (EX-32.2) — 6KB
• ex97_1.htm (EX-97.1) — 37KB
• 0001903596-24-000170.txt (&nbsp;) — 5321KB
• xpon-20231231.xsd (EX-101.SCH) — 46KB
• xpon-20231231_cal.xml (EX-101.CAL) — 53KB
• xpon-20231231_def.xml (EX-101.DEF) — 94KB
• xpon-20231231_lab.xml (EX-101.LAB) — 302KB
• xpon-20231231_pre.xml (EX-101.PRE) — 234KB
• xpon_10k_htm.xml (XML) — 796KB

FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA

FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA 4 PART I 6 ITEM 1.

BUSINESS

BUSINESS 6

RISK

ITEM 1A. RISK FACTORS 13

UNRESOLVED

ITEM 1B. UNRESOLVED STAFF COMMENTS 29

CYBERSECURITY

ITEM 1C. CYBERSECURITY 29 ITEM 2.

PROPERTIES

PROPERTIES 30 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 30

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 31 PART II 32 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 32 ITEM 6. [RESERVED] 32 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 33

QUANTITATIVE

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 44 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 45 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 45

CONTROLS

ITEM 9A. CONTROLS AND PROCEDURES 45

OTHER

ITEM 9B. OTHER INFORMATION 45

DISCLOSURE

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION 46 PART III 47 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 47 ITEM 11. EXECUTIVE COMPENSATION 47 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 47 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 47 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 47 PART IV 48 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 48 ITEM 16. FORM 10-K SUMMARY 49

SIGNATURES

SIGNATURES 50 Index to Consolidated Financial Statements 51 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS and industry data This Annual Report on Form 10-K (this "Annual Report") includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements in this Annual Report, other than statements of historical fact, are "forward-looking statements" for purposes of these provisions, including, without limitation, any projections regarding the markets where we operate, any statements of the plans and objectives of our management for future operations, any statements concerning proposed new products or services, any statements regarding expected capital expenditures, any statements regarding future economic conditions or performance, and any statements of assumptions underlying any of the foregoing. All forward-looking statements included in this Annual Report are made as of the date hereof and are based on information available to us as of such date. We assume no obligation to update any forward-looking statement. In some cases, forward-looking statements can be identified by the use of terminology such as "may," "will," "expects," "plans," "should," "anticipates," "intends," "seeks," "believes," "estimates," "potential," "forecasts," "continue," or other forms of these words or similar words or expressions, or the negative thereof or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements contained herein are reasonable, there can be no assurance that such expectations or any of the forward-looking statements will prove to be correct. Actual results will likely differ, and could differ materially, from those projected or assumed in the forward-looking statements. Prospective investors are cautioned not to unduly rely on any such

forward-looking statements

forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: We operate in an extremely competitive industry and are subject to pricing pressures. We have a history of losses and our audited financial statements include a statement that there is a substantial doubt about our ability to continue as a going concern. As our costs increase, we may not be able to generate sufficient revenue to achieve and sustain profitability. Our business and future growth depends on the needs and success of our customers, and we have substantial customer concentration. We may not be able to successfully manage our growth. We may fail to expand our sales and distribution channels and our ability to expand into international markets is uncertain. Nearly all of our raw materials enter the United States through a limited number of ports, and we rely on third parties to store and ship some of our inventory; labor unrest at these ports or other product delivery difficulties could interfere with our distribution plans and reduce our revenue. Government reviews, inquiries, investigations, and act

BUSINESS

BUSINESS Our Company Expion360 focuses on the design, assembly, manufacturing, and sales of lithium iron phosphate ("LiFePO4") batteries and supporting accessories for recreational vehicles ("RVs"), marine applications and home energy storage products, with plans to expand into industrial applications. We design, assemble, and distribute high-powered, lithium battery solutions using ground-breaking concepts and rugged, high-quality designs with a creative sales and marketing approach. We believe that our product offerings include some of the most dense and minimal-footprint batteries in the RV and marine industries. We are developing the e360 Home Energy Storage System, a system that we expect to significantly change the industry in barrier price, flexibility, and integration. We are deploying multiple intellectual property strategies with cutting-edge research and unique products to sustain and scale the business. We currently have customers consisting of dealers, wholesalers, private label customers and original equipment manufacturers who are driving revenue and brand awareness nationally. Our corporate headquarters are based in Redmond, Oregon, and our suppliers are based in the United States, Asia, and Europe. We are currently in the process of building out manufacturing capacity at our corporate headquarters. Our long-term target is to onshore the manufacturing of most of our components and assemblies, including cell manufacturing, to the United States. Our primary target markets are currently the RV and marine industries. We believe that we are well-positioned to capitalize on the rapid market conversion from lead-acid to lithium batteries as the primary method of power sourcing in these industries. We are also focused on expanding into the home energy storage market with the introduction of our two LiFePO4 battery storage systems, where we aim to provide a cost-effective, low barrier of entry, flexible system for those looking to power their homes vi