Expion360 Inc.

Greetings and welcome to the Expion 360 second quarter 2024 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 risks and uncertainties. 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 its operations, growth prospects, product development and pipeline, anticipated timing of commercial availability of its products, market size and opportunity, and the anticipated use of proceeds from the company's recently completed public offering. While these forward-looking statements represent management's current beliefs 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 factor section of its annual report on Form 10-K and quarterly reports on Form 10-Q. Your caution not to place undue reliance on these forward-looking statements which reflect our expectations as of the date of this presentation. Except as required by law or the NASDAQ listing standards, the company expressly disclaims any intent or obligation to publicly update or revise any forward-looking statements. Your hosts today, Brian Schaffner, Chief Executive Officer, and Greg Adelot, Chief Financial Officer, will present results of operations for the second quarter ended June 30, 2024. A press release detailing these results crossed the wire this afternoon at 4.05 p.m. Eastern Time and is available in the Investor Relations section of the company's website at InvestorsExpion360.com. At this time, I will turn the call over to Expion360's Chief Executive Officer, Brian Schaffner.

Thank you, operator, and good afternoon, everyone. I'm pleased to welcome you to today's second quarter 2024 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. Xpeon 360 focuses on the design, assembly, and sales of lithium iron phosphate or LiPo4 batteries and supporting accessories. for RVs and marine applications. As recently announced, we are also expanding into the light electric vehicle, or LEV market, and the home energy storage market, and we have plans to expand into industrial applications in the future. We design, assemble, and distribute high-powered lithium battery solutions using groundbreaking concepts. while employing a creative sales and marketing approach. We believe our product offerings include some of the most dense and minimal footprint batteries available. We are developing E360 home energy storage solutions, which we expect to bring positive change to the industry with regards to key areas of differentiation, including price, flexibility, and integration. we are also deploying multiple intellectual property strategies, advanced research and development capabilities, and innovative products to sustain and scale the business. We currently have customers consisting of dealers, wholesalers, private label customers, and original equipment manufacturers, or OEMs, who are driving revenue and brand awareness nationally and complement our wholesale channel with direct-to-consumer sales. Our management team and board members are experienced across engineering, technology, and finance. We believe the combination of these factors positions us to execute our long-term growth strategies. I am proud of the progress we made in the second quarter and remain excited about our future prospects. Our E360 product line, which is manufactured for RV and marine industries, is a preferred conversion solution for lead acid batteries. We currently have more than 300 customers across the United States consisting of dealers, wholesalers, private label customers, and OEMs who then sell our products to end consumers. In addition, we sell products directly to consumers through our e-commerce platform. We have sales relationships with major RV retailers, including Camping World, a leading national RV retailer, KZ Recreational Vehicles, a subsidiary of Thor Industries, and Meijer 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 LEVs and home energy storage. Now to highlight some of our accomplishments and milestones in the second quarter. On April 18, we announced substantial pre-orders for our next generation Group 27 and GC2 series batteries, which now include our proprietary vertical heat conduction or VHC technology. The new versions also include higher amp hour 4.0 and 4.5 amp hour cell technology, smart talk Bluetooth, and CAN bus communication. Shipments for these orders began in May. On April 30, we released specifications for our home energy storage solutions, DC-tupled home energy battery. which is expandable in 5kW increments up to 80kW, and for our AC-coupled all-in-one home energy battery featuring a 10kW battery paired with a built-in 5kW inverter, which is expandable in 10kW increments up to a total of 40kW. On May 8, we announced the launch of the Edge battery, which utilizes a modular design for off-grid power storage solutions and is available in both 12.8-volt and 51.2-volt configurations. It features a slim profile that maximizes available space without compromising performance. With dimensions of just 4.2 inches in height, 17.5 inches in width, and 21.9 inches in length, the Edge offers flexibility for installation in a variety of applications, from mounting on the wall of vans to fitting into tight spaces in RVs. The Edge's slim design maximizes available space without compromising performance. The Edge incorporates VHC technology, SmartTalk Bluetooth, and CAN bus communication. We began shipping the Edge to consumers during the third quarter. On May 16, we announced our new e-commerce retail partnership with Tractor Supply Company, the largest rural lifestyle retailer in the United States. We did this to offer our products online for shipment to customers in 49 states. XBeyond 360 products are now available on Tractor Supply's website, including our group 24 and 27 batteries, our Aura power cap, and portable solar bundle to start. On August 6, we announced a partnership with KZ Recreational Vehicles, or KZRV, a subsidiary of Thor Industries, Inc. This collaboration will integrate our cutting-edge battery technology into KZRV's premium offerings, enhancing the off-grid capabilities of their vehicles. KZRV's Boondocker package renowned for its exceptional off-grid features, will now include three 51.2-volt 60-amp-hour EDGE VHC heated batteries with an option to add a fourth battery. In addition to the Boondocker package, KZRV will offer two Group 27 100-amp-hour VHC heated batteries as an option to their standard off-grid solar package. Most recently on August 8, we closed an underwritten public offering with gross proceeds to the company of approximately $10 million. The net proceeds from the offering were used in part to fully repay the 3i note. We also terminated the equity line of credit previously entered into with Tummin Stone Capital LLC. We intend to use the additional net proceeds from the offering to advance the commercialization of our home energy storage solutions and pursue other key growth initiatives. We believe that we have strategically positioned our battery portfolio across multiple market segments, each of which I will quickly touch on. The RV segment is recovering, driven by interest in outdoor activities and demand for vehicles that depend on batteries to power systems. Our lithium batteries support these systems and appliances while replacing noisy generators for off-grid power and can be charged either by engine or by solar power. The Edge battery, which is now commercially available, features a custom form factor that includes our patent-pending innovations and other recently developed IPs. The Edge incorporates VHC technology, smart talk, Bluetooth, and CAN bus communication. We began shipping the Edge to customers in the third quarter. Our solutions are also employed in the marine segments. to support trolling motors and operating electronics. The third established market segment we serve is the LED market, such as golf carts, which are undergoing a transition from lithium to lead acid. These LEDs require sufficient power generation and reliability, which our batteries deliver. On December 19, 2023, we announced our entrance into the home energy storage market, including both new home and commercial solar power storage solutions. I will expand on our opportunity in home energy shortly. Finally, we see the industrial applications market as a future growth vertical for us, driven by demand for additional capacities for electric forklift and industrial material handling. We are building a robust IP portfolio across all five of these market segments, and we currently have 11 patents pending. Now I will focus on our market expansion with E360 Home Energy. With the introduction of our two LIFO4 battery solutions to support home energy storage in December 2023, We are targeting home and small commercial solar users and installers who are interested in a high performance, modular system with straightforward installation. Our solutions provide scalability and versatility across market channels, including solar installers, electrical contractors, residential and commercial builders, and energy service providers. A view of our home energy solutions can be found on our website at xbeyond360.com forward slash pages forward slash residential. We think the home energy market provides complementary economics to our business model. With an opportunity to generate recurring revenue streams while enabling margin expansion in a market that is expected to surpass $123 billion globally, by 2029. That's according to market data forecast. We anticipate using proceeds from our recently closed public offering to provide necessary funding to further develop our new E360 home energy storage solutions, including completion of the UL testing and certification process, in addition to other requirements for various authorities having jurisdiction. I will now turn the call over to Greg to discuss our second quarter 2024 financial results.

Thank you, Brian.