File: '\\swfile\EmailIn\20250704 184708 Attachment Eguana - News Release re 2024 Annual Finacial Results - DRAFT_V2.docx'

Eguana Announces 2024 Annual Financial Results

CALGARY, Alberta, (Newsfile Corp. - July 4, 2025) - Eguana Technologies Inc. (TSXV: EGT) (OTCQB: EGTYF) ("Eguana" or the "Company"), a leading provider of high-performance energy storage systems, announces its annual financial results for the year ended December 31, 2024.

Many of the strategic initiatives and activities throughout 2024 were driven by the Company's transition away from consumer driven rooftop solar channels and into Utility driven grid infrastructure channels. The Company targeted both Utility and DERMS (Distributed Energy Resource Management Systems) partnerships ahead of advanced batteries becoming integral to the power grid transformation to a distributed grid.

Advanced battery solutions, particularly behind the meter, will be key to expanding capacity and reliability of current grid infrastructure, enabling utilities to better manage edge of grid generating assets and renewables like wind and solar, while providing consumers with back up power capability during grid outages.

Eguana's hardware and software solutions were designed for power grid management at the utility level and come with a full suite of Virtual Power Plant (VPP) capability including demand response, voltage and frequency control, back up power, fleet aggregation and spinning reserve, plus real time grid edge visibility and analytics.

Strategic Summary

The Company partnered, and fully integrated hardware and software solutions, with 5 leading North American DERMS providers.

Completed pilot demonstrations for feeder voltage control in end-of-line and high PV penetration conditions with a western Canadian utility.

Delivered exclusive megawatt feeder peak management project with a western Canadian utility.

Completed demand response testing with single system and aggregated fleet with a California based DERMS partner and Community Choice Aggregator to bid into the California demand response market.

Completed system integration with Itron Intelliflex smart meter 2.0 delivering first smart battery/smart meter combination, which will be co-marketed to North American utilities.

Invited to participate 4MW feeder support RFP from largest Ontario LDC.

Planned feeder pilot with an Alberta based utility to demonstrate delivery of stacked services from residential storage in a competitive electricity market.

"2024 saw the continued collapse of consumer driven rooftop solar markets and ignited a strategic shift for Eguana into utility driven channels with focus on power grid transition and a distributed grid" commented Eguana CEO Justin Holland. "Eguana hardware and software solutions were designed to deliver grid services at the grid edge, however it is only now with increasing peak loads and an absence of widespread consumer adoption that utilities are directly investing in deployments where they are needed most. Our technology really stands apart at the utility level delivering much needed capacity and reliability to grid infrastructure already in place."

Eguana's Evolve hardware, and Eguana Cloud and Edge software platforms provide utilities with grid edge solutions with real time management and visibility to utility and DERMS partners. As the power grid transitions to a distributed grid, energy storage assets will be a key and critical component of power grid management.

Fiscal 2024 Summary Results

The Company's year-end financial statements for the twelve-month period ended December 31, 2024 ("F2024"), are being presented with comparative information for the twelve-month year ended December 31, 2023 ("F2023").

Operating costs, excluding amortization and share-based compensation, for the year ended December 31, 2024 were $5.25 million, down from $10.6 million for the year ended December 31, 2023, representing a 51% decrease year over year. Large overall cost reductions were achieved with lower headcount, a short summer period of reduced work weeks and payroll, and decreased spending in all categories.

The Company recognized a credit loss recovery for the year ended December 31, 2024, of $1.6 million, as opposed to the credit loss provision of $10.0 million for the year ended December 31, 2023. The large ECL provision in 2023 negatively impacted the net loss for that year. The Company originally recognized a credit loss provision at year-end December 31, 2022, and has been adjusting the provision on a quarterly basis.

Sales decreased 92.3% to $751,869 in F2024 in comparison to $9,761,892 in F2023. In 2024, the solar industry remained extremely volatile driven by economic uncertainty through consumer channels, and a reorganizing of global supply chains. Among other macro-economic factors and F2024 sales declined, after the first quarter, due to this demand shift. Liquidity issues of a major customer, also impacted by the underperforming solar market, negatively impacted F2024 sales

Overall gross margin remains low as the industry slowed and consumer driven markets became more price sensitive, with rising interest and high inflation. Gross margin decreased to negative 29%, or negative $0.2 million for the year ended December 31, 2024, compared to the period ended December 31, 2023, wherein gross margin was negative $2.2 million or 22%. Margins have also been negatively impacted by inventory impairments.

Net loss before tax from continuing operations, for the year ended December 31, 2024, was $15.2 million, as compared to $32.4 million for the year ended December 31, 2024. The decrease in net loss can primarily be attributed to decreased total operating expenses by $6.0 million, due to lower costs in all categories, as the Company continued cost-saving measures across the Company.

In response to market constraints, the Company made the decision to close it's German business and to liquidate the operations during third quarter 2024, the Company also made the decision to close it's Australian subsidiary by formal liquidation. Net loss from discontinued operations for the three months ended December 31, 2024, was $380 thousand and when the comparative presentation is presented, the net loss from discontinued operations for the three months ended December 31, 2023 was $1.6 million.

The Consolidated Financial Statements and the Management Discussion and Analysis thereof are available on SEDAR+ at www.sedarplus.com and the Company's website at www.EguanaTech.com.

About Eguana Technologies Inc.

Eguana's vision is to accelerate grid modernization and resilience, by delivering flexible, modular, and cost-effective alternatives to traditional grid upgrades. Our technology provides value to all key stakeholders - from the consumer, to the electricity retailer, the distribution utility, and the system operator.

Eguana Technologies connects utilities with consumers, through its high-performance commercial and residential energy storage solutions. Eguana's vertically integrated product suite has been designed from the ground up, with both the end user and the utility in mind, to transition the power grid seamlessly.

Manufactured in local facilities across the globe to ensure compliance and quality, Eguana's standardized platform allows the flexibility to ensure each product solution is optimized for use in major grid modernization markets.

To learn more, visit www.EguanaTech.com or follow us on LinkedIn and @EguanaTech on X.

Company Inquiries

Justin Holland, CEO

Eguana Technologies Inc.

+1.416.728.7635

Justin.Holland@EguanaTech.com

Forward Looking Statements

The reader is advised that all information herein, other than statements of historical fact, may constitute forward-looking statements and forward-looking information (together, "forward- looking statements") within the meaning assigned by National Instrument 51-102 - Continuous Disclosure Obligations and other relevant securities legislation.

Forward-looking statements are included to provide information about management's current expectations and plans that allows investors and others to have a better understanding of the Company's business plans and financial performance and condition. All statements, other than statements of historical fact included in this news release, regarding the Company's strategy, future operations, prospects, plans and objectives of management are forward-looking statements that involve risks and uncertainties. Forward-looking statements are typically identified by words such as "plan", "expect", "estimate", "intend", "anticipate", "believe", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking statements in this news release include, but are not limited to: that the Company will remain focused on demonstrating the value of demand response, load management and auxiliary power, and voltage and frequency control for utility companies; and, that the Company's VPP utility accelerator program, including Eguana Edge(TM), is expected to drive higher storage sales with stronger margins and deliver future recurring revenues.

Forward-looking statements are not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Such factors include, but are not limited to, risks associated with: failure by the Company to improve cash flow which would have a material adverse impact on the viability of the business to continue operating; timely collection of accounts receivable; ability to raise capital in debt or equity, as needed, on appropriate terms; unanticipated effects of the reduction to headcount; effective implementation and deployment of Eguana solutions and building additional partnerships and developing existing partnerships; general economic, market and business conditions; competitive factors; achieving strategic objectives; engagement and adoption of the VPP solutions with utilities; obtaining additional revenue, recurring revenue and higher margins; inability to or delays in sourcing materials; production delays or certification delays: the Company's ability to roll out additional utility pilot programs and demonstrations or deployment; the operational effectiveness and efficiency of the products when in use by utilities; a slower adoption of energy storage technologies and other factors set out in the "Risk Factors" section of the Company's management's discussion and analysis for the three and nine months ended September 30, 2023 and annual information form dated May 1, 2023, which may be found on its website or at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.