Greetings, and welcome to the Expion360 Fourth Quarter and Full Year 2024 Financial Results Conference Call. At this time, all participants are in a 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, through April 14, 2025. 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 security 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 Private Securities Litigation Reform Act of 1995. All statements made on this call today, other than statements of historical facts, 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 incremental revenue to be generated from new OEM partnerships and distributors, potential partnerships with NeoVolta 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 reports on Form 10-K and quarterly reports on Form 10-Q. You are cautioned not to place any 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 host today, Brian Schaffner, Chief Executive Officer and interim Chief Financial Officer, will present results of operations for the fourth quarter and year ended December 31, 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 Web site at investors.expion360.com. At this time, I will turn the call over to Expion360's Chief Executive Officer and interim CFO, Brian Schaffner.

Thank you, operator. And good afternoon, everyone. I am pleased to welcome you to today's fourth quarter and year ended December 31, 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 of who we are and what we do. Expion360 is focused on creating energy storage solutions for our customers, utilizing our core values of safety through third party testing and UL certification, quality, offering an industry leading 12 year warranty and service. We provide customer support for the entire system purchased from us, not just the Expion360 built components. Expion360 designs, assembles and sells lithium iron phosphate or LiFePO4 batteries and supporting accessories for RVs, marine, light EV and home energy storage applications. We believe our product offerings include some of the most energy dense and minimal footprint batteries available. We are also deploying multiple intellectual property strategies, advanced research and development capabilities and innovative products to sustain and to scale the business. Our customers consist of dealers, wholesalers, private label customers and original equipment manufacturers or OEMs who are driving revenue and brand awareness nationally. And we complement our wholesale channel with direct-to-consumer sales. Our management team and Board of Directors are experienced across engineering, technology and finance. We believe the combination of these factors positions us to execute our long term growth strategies. I'm extremely proud of the progress that we made in the fourth quarter and remain excited about our future prospects. Our e360 product line is a preferred conversion solution for lead acid batteries as demonstrated by its sales growth. 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,…

[Operator Instructions] Since we have no questions, this does conclude our question-and-answer session. I will now turn the call over for media questions.

Thank you, operator. Our first webcast question today is, Mr. Schaffner, congrats on solid revenue growth in Q4. Can you talk about what products and customers drove the performance?

Yes, we had very solid revenue growth and it was driven by expanding and new OEM relationships. Our products have unique footprints like the Edge and new features, such as our vertical heat conduction and the Bluetooth, and that has really led the way for our revenue growth.

Our second webcast question is, gross margins took a dip in Q4 but I am assuming this is a good thing because of higher volumes. Can you talk about the gross margin profile in fiscal year 2025? Does this normalize in the low 20% range or do you see higher GMs with the rollout of your HESS product?

We've historically operated just upwards of 20% gross margins. Q4 was in line with that. Management does believe that our home energy storage market sales will help to increase those market levels for the company from our 2024 levels.

Our third webcast question is, tariffs are a big topic for those manufacturing outside the United States. Can you speak to what you have done recently to hedge your risk?

Well, first, we brought in more inventory than normal at the end of 2024 and at early 2025 in anticipation of the tariffs to avoid paying these tariffs on product that we knew was going to be in demand. And we can't predict the tariffs but we have been able to work with some of our suppliers to share the tariff burden. And I guess finally, we have passed some of the tariff costs on to our customers.

And a derivative of that question is, how should we think about this relative to your NeoVolta partnership? Does this fast track a US based manufacturing facility and the associated government grants?

We are working on our JV relationship with NeoVolta and it is progressing well. And we are aggressively pursuing onshoring our manufacturing that would be very advantageous for us.

And our fourth and final webcast question is, any update on new OEM partners and customers? Are the new products driving new relationships, especially with the slim form factor in RVs?

We are doing well with the new OEMs that we brought on board at the end of 2024. We're also seeing growth with some of our longer established OEM relationships, so that's very nice. We expect to be expanding to other OEM brands that are not a part of the original announcement that we made late in 2024. And we believe much of this is due to our expanded product line and expanded features and that this momentum will carry forward in 2025.

Thank you. Operator, this concludes the webcast portion of the call.

I would now like to turn the call back over to Mr. Schaffner for any closing remarks.

Thank you again for attending today's call. We are excited about where we're headed and we continue to look forward to engaging with our investors throughout the remainder of 2025. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group, who would be more than happy to assist. This concludes our call.

The conference call has now concluded. Thank you for attending today's presentation. You may now disconnect.