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. Operating expenses continue to exceed gross sales and the path to generating positive cash flow from operations is uncertain. We believe that the premium that investors have assigned to Expion360 for most of its time as a public company may no longer likely to exist and the company will more likely trade in line with or at a discount to its competitors. As a result, we are lowering our target valuation substantially to $4.00/share reflecting a lower market multiple and uncertainty around the company's home energy storage initiatives.
