Expion360 Inc.

Greetings and welcome to the Expion 360 fourth quarter and fiscal year 2023 financial results conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded and will be available in the investor relations section of the company's website at investors.expion360.com. Before we begin the formal presentation, I would like to remind everyone that certain statements made on this call and through the webcast are forward-looking statements within the meaning of the federal securities laws and are subject to considerable risk and uncertainty. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements made on this call today, other than statements of historical fact, are forward-looking statements. and include statements regarding the company's beliefs, plans, and expectations about the company's operations, future development plans, growth prospects, product pipeline and development, anticipated timing of commercial availability of its products, beliefs about market size and opportunity, including customer base and market conditions. While these forward-looking statements represent management's current judgment and expectations, they are subject to risks and uncertainties that could cause actual results to differ materially. The company has explained some of these risks and uncertainties in its SEC filings, including in the risk factors section of its annual reports on Form 10-K and quarterly reports on Form 10-Q. You are cautioned not to place under reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Except if required by law or the NASDAQ listing standards, the company expressly disclaims any intent or obligation to update any forward-looking statements. Your host today, Brian Schaffner, Chief Executive Officer, Greg Adelott, Chief Financial Officer, and Paul Schoen, Co-Founder, President, and Chief Operating Officer, will present results of operations for the fiscal fourth quarter and fiscal year ended December 31, 2023. A press release detailing these results crossed the wire this afternoon at 4.01 p.m. Eastern Time and is available in the investor relations section of the company's website at investors.XBeyond360.com. At this time, I will turn the call over to XBeyond360 Chief Executive Officer Brian Schaffner.

Thank you so much and good afternoon, everyone. I'm pleased to welcome you to today's fourth quarter and fiscal year 2023 financial results conference call. For those of you who might be new to our story, I'd like to start by giving a brief overview of who we are and what we do. XBeyond360 focuses on the design, assembly, and sales of lithium iron phosphate or LiPo4 batteries and supporting accessories for RV and and marine applications, and has recently announced our expansion into the light electrical vehicle, or LEV, and home energy storage markets with plans to expand into industrial applications in the future. We design, assemble, and distribute high-powered lithium battery solutions using groundbreaking concepts 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, or ESS, which we expect to bring positive change to the industry in barrier price, flexibility, and integration. We are developing multiple intellectual property strategies with cutting-edge research. and innovative 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. And we have a management team and board experienced across engineering, technology, and finance. We believe the confluence of these factors position us to execute our long-term growth strategies. I am proud of the progress that we have made both in the fourth quarter and the full year of 2023, and I'm very excited about our future prospects. Our E360 product line, which is manufactured for the RV and marine industries, has shown to be a preferred conversion solution for lead acid batteries through its sales growth. We currently have more than 300 customers across the United States consisting of dealers, wholesalers, private label consumers, and original equipment manufacturers who then sell our products to end consumers. In addition, we also sell products directly to consumers. We have sales relationships with major RV retailers, including Camping World, a leading national RV retailer, as well as Meyers Distributing Inc., a leading national marketer and distributor of automotive and RV specialty products. We believe we have a strong reputation in the lithium battery space, which we plan to continue leveraging to broaden our distribution channels as we expand into adjacent verticals such as LEDs and home energy storage. Now I'll highlight some of our accomplishments and milestones throughout the year. In February 2023, our custom 360 amp hour battery passed UL 1973 certification. We also achieved UL 1973 compliance for our 450 amp hour EX1 batteries earlier this month. In June 2023, we unveiled E360 SmartPak, an innovative mobile app that allows the seamless integration and management of E360 Bluetooth enabled LiPo4 batteries. This technology enables users to wirelessly monitor and manage E360 batteries, providing a view of individual battery conditions and performance, as well as a comprehensive view of the entire power bank, consisting of multiple E360 battery packs. We also introduced our 48-volt GC2 battery, our first three E360 SmartTalk battery for powering golf carts and other LEVs. In August 2023, we strengthened our corporate governance with the appointment of tech industry veteran, innovator, and business leader, Hien Nguyen, to our board of directors. In September 2023, we introduced a new 4.5 amp hour 26650 lithium iron phosphate battery cell which will allow us to increase energy density by over 32% compared to a traditional 3.4 amp hour 26650 cell. In December 2023, we announced our entry into the home energy storage market with our introduction of two LIFO4 battery storage systems, a wall mount all-in-one inverter and 10 kilowatt hour battery, and an expandable server rack style battery cabinet system that enables residential and small business customers to create their own stable micro energy grid and lessen the impact of increasing power fluctuations and outages. Lastly, in December 2023, we announced the financing commitments of up to $22.5 million with three I's, LP and Tumman Stone Capital LLC, providing additional operating liquidity and financial flexibility to support IP and product development and our recently launched home energy storage solutions. Greg will provide some additional details on that shortly. We have strategically positioned our battery portfolio across both established market segments and future premium market segments, each of which I will quickly touch on. The recreational vehicle and overland segment continues to grow, driven by interest in outdoor activities and demands for vehicles that depend on batteries to power their systems. Our lithium batteries support these systems and appliances while replacing noisy generators for off-grid power and are charged by the engine or by solar. Our solutions are also employed in the boating and marine segment to support trolling motors and operating cabin electronics. The third established market segment we serve is light electrical vehicle, or LEV, such as golf carts, which are also undergoing the transition to lithium from lead acid. These LEVs require sufficient power and reliability to which XBeyond batteries deliver. For our future markets, we recently announced plans to enter the home energy storage market, including both home and commercial solar power storage solutions. I'll expand on our opportunity in home energy shortly. We see industrial applications as a future growth vertical for Expion, driven by demand for additional capacities for electric forklift and industrial material handling. We are building a robust IP moat across all five of these market segments, in which we have 11 patents pending. Now for some more detail on our future market expansion with E360 Home Energy. With the December 2023 introduction of our two LIFO4 battery solutions to support home energy storage, we are targeting home and small commercial solar users and installers who are interested in a high performance modular system with straightforward installation. We are mobilizing quickly with the launch and plan on accepting orders for the new energy systems commencing in the second quarter of 2024, with shipments expected to begin in the second half of the year. We believe the home energy market provides complementary economics to our business model, with an opportunity to generate new revenue streams while enabling margin expansion. Our solutions provide scalability and versatility across market channels. Some of these channels include solar installers, electrical contractors, retailers, and wholesalers, big box stores and franchise hardware retailers, residential and commercial builders, and finally, energy service providers. We believe this launch will support the company's strategic objectives. I will now turn the call over to our co-founder, President and Chief Operating Officer Paul Schaum to discuss our technology and ongoing initiatives.

Thank you, Brian. To kind of continue on where Brian left off there, we believe our technology offers a myriad of advantages that positions XBeyond at the forefront of energy storage solutions. Firstly, the overall design of our products is characterized by compactness, high capacity, and significant reliability, making it An efficient and dependable choice for various applications. Utilizing lithium iron phosphate chemistry, our technology stands out for its exceptional safety profile and the chemistry of our batteries widely recognized as one of the safest available. Another standout feature is our product's ability to charge two to three times faster than conventional lead acid batteries, allowing users to rapidly reach full capacity. Moreover, its higher energy density provides 50% more usable energy compared to OLED ACID counterparts while also being 50% lighter in weight. Our technology is further distinguished with an innovative mobile app that facilitates seamless integration for wirelessly monitoring performance and accessing analytics. Designed with a user-centric approach, it boasts flexibility and modularity, ensuring ease of placement and integration into diverse systems. Lastly, our batteries extend a lifespan of approximately 12 or more years, which is equivalent to 3,000 to 5,000 charging cycles, as a testament to its durability, offering life cycles that are typically 10 times more than that of a typical lead-acid battery. Expion battery technology excels not only in functionality but also in its superior aesthetics, design, materials, and construction. Its rugged design features an IP66 rated enclosure, ensuring robust protection against a variety of environmental conditions while also facilitating easy placement and seamless integration into different systems. The use of a fiberglass-infused ABS plastic enhances structural integrity, providing enhanced strength and durability. Furthermore, the battery's case adheres to the UL 94 VO fire rating standard, our internal battery cells meet UL 1642, and our complete battery construction meets UL 1973, underscoring our commitment to safety and reliability. In January of 2024, we introduced our next generation 12-volt GC2 and group 27 series lithium iron phosphate batteries. The new versions now include higher amp hour options, utilizing our 4.0 amp hour cell and our 4.5 amp hour cell technology. And the latest advancements in power technology features, including XBeyond's proprietary and patent-pending vertical heat conduction for internal heating, Bluetooth, and CAN bus communication. We began taking pre-orders of the new GC2 and Group 27 batteries this quarter, with anticipated deliveries in Q2 of 2024. We're also currently wrapping up UL testing on our new Edge battery that has been designed based on the input from several large RV manufacturers. This custom form factor includes all of the recent patents and other IP that we've been developing over the past couple years, and we plan to begin shipping this product in Q3 of this year. We expect to release more information about this product and its functionality in the coming weeks. Our main 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 working with several OEMs on options for power systems to eliminate the need for gas and diesel generators in the RV industry. We expect several states, including California, to soon ban the use of these types of generators, and we believe we have some of the best solutions for customers to still have the power they need by utilizing our energy storage systems. Additional focus markets include home energy storage with our introduction of the two Lifepo battery storage systems that we released in December, where we aim to provide a cost-effective, flexible, and scalable system for those looking to power their homes via solar, wind, or grid backup. I will now turn the call over to our Chief Financial Officer, Greg Adelot, to discuss our financial results.