Vancouver, British Columbia--(Newsfile Corp. - February 21, 2025) - Legend Power Systems Inc. (TSXV: LPS) (OTCQB: LPSIF) ("Legend Power" or the "Company"), a global leader in commercial electrical system solutions, reports its financial results for the three months ended December 31, 2024 ("Q1 F2025"). The Company has also scheduled a conference call to provide a business update to discuss its Q1 F2025 financial results today at 11:00 AM ET (8:00 AM PT) (details below). The call will be hosted by Randy Buchamer, President & Chief Executive Officer. A complete set of Financial Statements and Management's Discussion & Analysis has been filed at www.sedarplus.ca. All dollar figures are quoted in Canadian dollars.
Q1 F2025 Highlights
- Revenue of $82 thousand versus $2 thousand in Q1 F2024
- Net loss of $1.03 million versus a $1.08 million loss in Q1 F2024
- Cash of $661 thousand, no debt, and $939 thousand in working capital at December 31, 2024
"The first quarter of 2025 marks a pivotal moment for Legend Power Systems as we build on the momentum generated over the past year," said Randy Buchamer, CEO of Legend Power Systems. "Building owners require their facilities to operate optimally at all times, and SmartGATE has proven its ability to enhance reliability and efficiency. Business optimization has been underway to prepare for excess throughput to meet growing demand as the Company transitions from tens of SmartGATEs per year to hundreds and thousands to solve energy challenges and enhance operational stability across a wide range of applications including commercial real estate, education, government, and military infrastructure. With the successful financing post quarter end strengthening our balance sheet, we are now focused on scaling deployments with key partners to drive sustainable growth for years to come."
Q1 F2025 Operational Highlights
- Legend Power Systems closed it's first tranche of non-broker private placement of $762 thousand, increasing liquidity and providing the working capital required to execute on the pipeline.
- Collaboration with utilities and Energy Service Companies (ESCOs) continues to grow, expanding SmartGATE's reach into large-scale energy efficiency and infrastructure projects. Additionally, partner-driven sales efforts continue to expand in both volume and deal value, further accelerating market penetration.
- The Green Proving Ground program with the United States General Services Administration, which operates approximately 1,800 federally owned buildings, continues to progress. The two test sites have been selected, with the first unit shipped and pending installation. The second system is slated for delivery in the coming months.
Events Subsequent to Q1 F2025
- The Company closed it's second tranche of non-brokered private placement of $851 thousand, further increasing liquidity bringing the total financing to $1.6 million.
- Signed a sales, distribution and installment partnership in New York City with Unity Electric, an Equans Company.
- Engaged with a major North American Transport Agency to assess and address power quality and energy efficiency challenges at one of the United States 10 largest airports.
Q1 F2025 Financial Highlights
Financial summary for the three months ended December 31, 2024 and 2023
| Three months ended December 31, | ||||||||
| (Cdn$, unless noted otherwise) | 2024 | 2023 | Change | |||||
| Revenue | 81,835 | 1,548 | 5186% | |||||
| Cost of sales | 69,889 | 22,664 | 208% | |||||
| Gross margin1 | 11,946 | (21,116) | (157)% | |||||
| Gross margin %1 | 15% | (1,364)% | ||||||
| Operating expenses | (1,041,286) | (1,069,588) | (3)% | |||||
| Net loss | (1,032,881) | (1,081,490) | 4% | |||||
1 Gross margin is based on a blend of both equipment and installation revenue.
Revenue for the fourth quarter of 2025 was $81,835 compared with $1,548 in the same quarter of fiscal 2024. The higher revenue during Q1 of fiscal 2025 is primarily due to due to the fulfillment of SmartGATE units.
Gross margin in the first quarter of fiscal 2025 was $11,946, compared with negative $21,116 in the same quarter of fiscal 2024. Negative margins in the first quarter of fiscal 2024 were the result of allocated fixed costs incurred.
The Company's operating expenses for the first quarter of fiscal 2025 were $1,041,286, down from $1,069,588 in the same quarter of fiscal 2024. The primary cause for the decrease was lower salaries and consulting costs as a result of internal cost-cutting measures.
Net loss for the first quarter of fiscal 2025 was $1,032,881, compared with a net loss of $1,081,490 in the same quarter of fiscal 2024. Higher gross margin, and cost-cutting measures taken resulted in a lower net loss year-over-year.
CONFERENCE CALL DETAILS:
DATE: Friday, February 21, 2025
TIME: 11:00 AM ET (8:00 AM PT)
WEBINAR: Legend Power Q1 Fiscal 2025 Financial Results Investor Webinar (via Zoom)
REPLAY: Available at: https://legendpower.com
About Legend Power Systems Inc.
Legend Power Systems Inc. (https://legendpower.com/) provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance. Legend Power's proven solutions support proactive executive decision-making in a complex and volatile business and energy environment. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend Power's unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.
For further information, please contact:
Jonathan Lansky, Director
+1 416 417 7664
lansky.j@icloud.com
Sean Peasgood, Investor Relations
+ 1 647 503 1054
sean@sophiccapital.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This Press Release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR+ at www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results to not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241767
SOURCE: Legend Power Systems Inc.
