Vancouver, British Columbia--(Newsfile Corp. - June 29, 2023) - Hypercharge Networks Corp. (NEO: HC) (OTCQB: HCNWF) (FSE: PB7) (the "Company" or "Hypercharge"), a leading, smart electric vehicle (EV) charging solutions provider, is announcing the release of its audited financial results for the three months and seven months ended March 31, 2023, and related management discussion and analysis. The Company's reporting period for the seven months ended March 31, 2023, reflects the Company's change in fiscal year end. These documents will be posted on SEDAR and Hypercharge's website at https://hypercharge.com/investors/.
For the three months ended March 31, 2023, the Company's revenue in the quarter was C$752,673, an increase of 1,373% compared to C$51,097 in the three months ended March 31, 2022. Operating expenses increased from C$940,041 in the comparable period to C$2,160,025 (an increase of 80%) for the three months ended March 31, 2023. This increase is largely attributable to general and administrative expenses in connection with non-cash share-based compensation expenses and non-recurring expenses. The lower operating expenses during the comparable period for the three months ended March 31, 2022 are attributable to the Company's early stages of business, which resulted in lower direct and variable costs during the period.
For the seven months ended March 31, 2023, the Company achieved revenue of C$1,988,007, marking a significant growth rate of 311%, compared to the year ended August 31, 2022. For the comparable seven month period, the Company achieved a year-over-year revenue growth rate of 2,069%.
During this seven month comparable period, operating expenses increased from C$2,563,917 to C$4,921,140 (an increase of 109%), related to: (i) hiring key personnel to further support the Company's sales and marketing efforts, (ii) an increase in research and development initiatives, (iii) general and administrative expenses related to professional fees for audit and legal, (iv) regulatory compliance, and (v) non-recurring corporate issuer fees from the Company's initial public offering.
Total assets as at March 31, 2023 were C$6,404,576, (down from C$9,302,818 for the year ended August 31, 2022). As at March 31, 2023, the Company had cash and cash equivalents of C$2,686,157.
"We are pleased to report the audited financial results for the year ended March 31, 2023," said David Bibby, President and CEO of Hypercharge. "We are proud to see the increase in our customer base and their growing confidence in our ability to provide innovative charging solutions reflected in these results."
Business and Pipeline Highlights (during the three months ended March 31, 2023):
- As part of the Company's U.S. growth objectives, the Company closed the first four sales orders for customer sites in five states in the U.S., which include Massachusetts, New Jersey, New York, Pennsylvania, and Rhode Island.
- Activated 18 new partners that help Hypercharge enter into new markets, sell the Company's products, and assist with installation of chargers. This more than doubled the Company's total number of partnerships (to a total of 37).
- Recruited five additional employees in sales, engineering, operations, and finance.
Recent Business and Pipeline Highlights during the Seven Months ended March 31, 2023:
- Sold and delivered 489 EV charging stations across eight provinces in Canada.
- Developed a growing sales backlog highlighted by completion of three significant sales orders in British Columbia for 748, 128, and 110 Level 2 charging stations. The Company expects to begin phased delivery of these projects in early 2024.
- Announced its first roaming agreement with Electric Circuit, enabling both networks' users to access over 4,250 public charging stations.
- Delivered its first Level 3 DC Fast Charging stations in Alberta and British Columbia.
Summary of Key Financial Measures:
A summary of selected annual financial information for the last two fiscal years is as follows (expressed in Canadian dollars):
| Seven months ended | Year ended | ||||
| March 31, 20231 | August 31, 2022 | ||||
| Revenue | $ | 1,988,007 | $ | 484,218 | |
| Net and comprehensive loss | 4,451,910 | 9,641,448 | |||
| Total assets | 6,404,576 | 9,302,818 | |||
| Non-current financial liabilities | 347,180 | 90,636 |
- Reflects a seven-month period as a result of the Company's change in year-end to March 31st.
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About Hypercharge
Hypercharge Networks Corp. (NEO: HC) (OTCQB: HCNWF) (FSE: PB7) is a leading provider of smart electric vehicle (EV) charging solutions that offers turnkey technology to multi-unit residential and commercial buildings, fleet operations, and other rapidly growing sectors. Driven by its mission to accelerate EV adoption and enable the shift towards a carbon neutral economy, Hypercharge is committed to providing seamless, simple charging solutions by offering industry-leading equipment and a robust network of public and private charging stations. Learn more: https://hypercharge.com/.
On behalf of the Company,
Hypercharge Networks Corp.
David Bibby, President & CEO
Investor Relations:
Kelsey Letham | Head of Investor Relations
invest@hypercharge.com
604-881-1730
Media Contact:
Kyle Green | Senior Marketing Manager
kyle.green@hypercharge.com
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "could", "should", "anticipate", "will", "estimates", "believes", "intends", "expects" and similar expressions which are intended to identify forward-looking statements. More particularly and without limitation, this news release contains forward-looking statements concerning the Company's growth, commercial developments, delivery timeliness and revenue recognition. Forward-looking statements are inherently uncertain, and the actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of the Company. Readers are cautioned that assumptions used in the preparation of any forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company. Readers are further cautioned not to place undue reliance on any forward-looking statements, as such information, although considered reasonable by management of the Company at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
The forward-looking statements contained in this news release are made as of the date of this news release, and are expressly qualified by the foregoing cautionary statement. Except as expressly required by securities law, the Company undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the NEO Exchange nor its Market Regulator (as that term is defined in policies of the NEO Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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