Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>Last week, the WTR Sustainable Index was up 3.4% W/W versus the S&amp;P 500 Index (up 0.9%), the Russell 2000 Index (up 3.1%), and the Nasdaq Index (up 0.4%).</li><li>Energy Technology (41% of the index) was up 3.1%, while Transportation Solutions (33% of the index) was up 3.9%, Climate Tech and Clean Tech (19% of the index) was up 2.7%, and Climate Tech Mining and Processing (7% of the index) was up 3.3%.</li><li>Top 10 Performers: AMYZF, XPON, GRNWF, GEVO, RIDE, SUUN, BNRG, ARRY, FSI, PPSI</li></ul>

Last week, the WTR Sustainable Index was up 3.4% W/W versus the S&amp;P 500 Index (up 0.9%), the Russell 2000 Index (up 3.1%), and the Nasdaq Index (up 0.4%).Energy Technology (41% of the index) was up 3.1%, while Transportation Solutions (33% of the index) was up 3.9%, Climate Tech and Clean Tech (19% of the index) was up 2.7%, and Climate Tech Mining and Processing (7% of the index) was up 3.3%.Top 10 Performers: AMYZF, XPON, GRNWF, GEVO, RIDE, SUUN, BNRG, ARRY, FSI, PPSI

Sustainable Investing Surveyor Focus on NHHHF - August 18, 2025

Research Coverage on Small and Micro-Cap Companies, Zacks Small Cap Research

Zacks Small Cap Research

Research Coverage on Small and Micro-Cap Companies

Zacks Small Cap Research provides research coverage on small- and micro-cap companies that are “under-followed” or “under-valued” by Wall Street. We produce high quality equity research for the institutional and retail investor on microcap firms we believe are well positioned for future growth. The Zacks SCR analyst team has an average of 20 years of experience in investment research. We conduct significant due diligence in an effort to maintain the highest quality small-cap universe.

Equity Bottom-Up

<ul><li>Expion360 announced several new OEM relationships that management "expects to generate incremental revenue of $5.0 million in 2025".</li><li> We are electing to be more conservative with our model for the moment but we are still raising our 2025 revenue estimate from $6 million to $8.9 million.</li><li> Our valuation target also remains unchanged at $4/share as the improving 2025 outlook is tempered by concerns about the company's financial condition in 2025.</li></ul>

Expion360 announced several new OEM relationships that management "expects to generate incremental revenue of $5.0 million in 2025". We are electing to be more conservative with our model for the moment but we are still raising our 2025 revenue estimate from $6 million to $8.9 million. Our valuation target also remains unchanged at $4/share as the improving 2025 outlook is tempered by concerns about the company's financial condition in 2025.

XPON: New OEM relationships improve the outlook for 2025

<ul><li>Expion360's shareholders authorized the company to effect a reverse stock split with a ratio of 1:50 to 1:100 at the annual shareholders meeting on September 27, 2024.</li><li>The company's Board of Directors decided to implement a 1:100 stock reverse stock split effective October 9, 2024.</li><li> The company also reported third quarter 2024 results which again fell short of our forecast.</li></ul>

Expion360's shareholders authorized the company to effect a reverse stock split with a ratio of 1:50 to 1:100 at the annual shareholders meeting on September 27, 2024.The company's Board of Directors decided to implement a 1:100 stock reverse stock split effective October 9, 2024. The company also reported third quarter 2024 results which again fell short of our forecast.

XPON: The RV market recovery remains elusive. Substantially adjusting our valuation target and estimates to reflect significant dilution and recent reverse stock split.

<ul><li>Expion360 released full results for the second quarter which had been prereleased in the registration statement related to the recent $10 million financing and were just slightly below our expectations.</li><li> The company provided no formal guidance for 2024 and 2025 but the new home energy storage business will have to be wildly successful to avoid further (potentially significant) dilution to existing shareholders.</li><li> As we have seen in the past Expion360's shares frequently trade independent of the fundamentals of the business.</li></ul>

Expion360 released full results for the second quarter which had been prereleased in the registration statement related to the recent $10 million financing and were just slightly below our expectations. The company provided no formal guidance for 2024 and 2025 but the new home energy storage business will have to be wildly successful to avoid further (potentially significant) dilution to existing shareholders. As we have seen in the past Expion360's shares frequently trade independent of the fundamentals of the business.

XPON: Updating our estimates to reflect the higher share count post-offering and second-quarter results. Adjusting target to 0.25/share to reflect lower energy storage market valuations.

<ul><li>Expion360 announced the pricing of a $10 million offering which was priced dramatically lower than our expectations resulting in a sharply higher share count.</li><li>The offering of 50 million units was priced at $0.20/unit consisting of 1 common share (or pre-funded warrant), two Series A warrants, and a Series B warrant.</li><li> In the company's preliminary registration statement related to the offering the company also disclosed preliminary Q2 results which were roughly in line with our expectations.</li></ul>

Expion360 announced the pricing of a $10 million offering which was priced dramatically lower than our expectations resulting in a sharply higher share count.The offering of 50 million units was priced at $0.20/unit consisting of 1 common share (or pre-funded warrant), two Series A warrants, and a Series B warrant. In the company's preliminary registration statement related to the offering the company also disclosed preliminary Q2 results which were roughly in line with our expectations.

XPON: Addresses immediate financing needs with a 10 million offering. Dilution substantially exceeds our expectations. Lowering target valuation to $0.35.

United States

Expion360 Inc. design, assemble, manufacture, and distribute high-powered, lithium battery solutions. The Company offers batteries and supporting accessories for recreation vehicles, outdoor, marine, residential, and industrial applications. Expion360 serves customers in the United States.

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Expion360 (XPON US)

Sustainable Investing Surveyor Focus on NHHHF - August 18, 2025

Last week, the WTR Sustainable Index was up 3.4% W/W versus the S&P 500 Index (up 0.9%), the Russell 2000 Index (up 3.1%), and the Nasdaq Index (up...

Water Tower Research

XPON: New OEM relationships improve the outlook for 2025

Expion360 announced several new OEM relationships that management "expects to generate incremental revenue of $5.0 million in 2025". We are...

Zacks Small Cap Research

XPON: The RV market recovery remains elusive. Substantially adjusting our valuation target and estimates to reflect significant dilution and recent reverse stock split.

Expion360's shareholders authorized the company to effect a reverse stock split with a ratio of 1:50 to 1:100 at the annual shareholders meeting...

Zacks Small Cap Research

XPON: Addresses immediate financing needs with a 10 million offering. Dilution substantially exceeds our expectations. Lowering target valuation to $0.35.

Expion360 announced the pricing of a $10 million offering which was priced dramatically lower than our expectations resulting in a sharply higher...

Zacks Small Cap Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sustainable Investing Surveyor Focus on NHHHF - August 18, 2025

Last week, the WTR Sustainable Index was up 3.4% W/W versus the S&P 500 Index (up 0.9%), the Russell 2000 Index (up 3.1%), and the Nasdaq Index (up...

Water Tower Research

XPON: New OEM relationships improve the outlook for 2025

Expion360 announced several new OEM relationships that management "expects to generate incremental revenue of $5.0 million in 2025". We are...

Zacks Small Cap Research

XPON: The RV market recovery remains elusive. Substantially adjusting our valuation target and estimates to reflect significant dilution and recent reverse stock split.

Expion360's shareholders authorized the company to effect a reverse stock split with a ratio of 1:50 to 1:100 at the annual shareholders meeting...

Zacks Small Cap Research

XPON: Updating our estimates to reflect the higher share count post-offering and second-quarter results. Adjusting target to 0.25/share to reflect lower energy storage market valuations.

Expion360 released full results for the second quarter which had been prereleased in the registration statement related to the recent $10 million...

Zacks Small Cap Research

XPON: Addresses immediate financing needs with a 10 million offering. Dilution substantially exceeds our expectations. Lowering target valuation to $0.35.

Expion360 announced the pricing of a $10 million offering which was priced dramatically lower than our expectations resulting in a sharply higher...

Zacks Small Cap Research