Mr. David Bibby reports

HYPERCHARGE NETWORKS CORP. ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE THREE MONTHS AND SIX MONTHS ENDED SEPTEMBER 30, 2023

Hypercharge Networks Corp. has released its unaudited financial results for the three months and six months ended Sept. 30, 2023.

Financial highlights (for the three months ended Sept. 30, 2023)

For the three months ended Sept. 30, 2023, the company's revenue was $921,783, an increase of 148 per cent compared with $371,081 in the three months ended Aug. 31, 2022. Operating expenses increased from $1,262,329 in the comparable period to $2,122,982 (an increase of 68 per cent) for the three months ended Sept. 30, 2023. Operating expenses are composed of general and administrative expenses, sales and marketing expenses, and research and development. The increased operating expenses of $860,653 during the three months ended Sept. 30, 2023, are attributable to $294,334 in non-recurring expenses, $192,661 in non-cash expenses, and $373,658 in increased direct and variable costs.

Financial highlights (for the six months ended Sept. 30, 2023)

For the six months ended Sept. 30, 2023, the company's revenue was $1,422,807, an increase of 223 per cent compared with $439,916 in the six months ended Aug. 31, 2022. Operating expenses increased from $2,560,626 in the comparable period to $4,548,878 (an increase of 78 per cent) for the six months ended Sept. 30, 2023. The increase in operating expenses of $1,988,252 during the six months ended Sept. 30, 2023, are attributable to $385,842 in non-recurring expenses, $383,679 in non-cash expenses, and $1,218,631 in increased direct and variable costs.

Total assets as at Sept. 30, 2023, were $9,148,612, (a 43-per-cent increase from $6,404,576 for the year ended March 31, 2023). As at Sept. 30, 2023, the company had cash and cash equivalents of $5,222,730.

"We are pleased to report the unaudited financial results for the three months and six months ended Sept. 30, 2023," said David Bibby, president and chief executive officer of Hypercharge. "With triple-digit revenue growth percentages and a growing sales backlog in both comparable periods, we thank our growing customer base for their support as we continue on our growth journey."

Business and pipeline highlights (for the three months ended Sept. 30, 2023):

• Processed sales orders for 413 charging ports in the three months ended Sept. 30, 2023, and over 2,600 charging ports since commencing business operations in June, 2021;
• Sold and delivered 280 charging ports in the three months ended Sept. 30, 2023, and over 1,300 charging ports since commencing business operations in June, 2021;
• Increased sales backlog by 265 charging ports; the company expects phased delivery of these chargers beginning in 2024;
• Activated 10 new strategic partnerships assisting with installation of chargers that facilitate entry into new markets; this increases the company's total number of strategic partnerships to 54;
• Reduced general and administration expenditures by $400,420 (22 per cent) and $325,478 (18 per cent) compared with the three months ended June 30, 2023, and March 31, 2023, respectively; as such, the company strategically reallocated these resources, and doubled its investment in sales and marketing initiatives and research and development efforts over the same period;
• Selected by Natural Resources Canada's zero-emission vehicle infrastructure program to support the growth of electric vehicle charging infrastructure and further the adoption of electric vehicles in Ontario; the ZEVIP funding of $229,356 will subsidize the cost of 48 Level 2 EV chargers across 11 parking lots.

Summary of key financial measures

A summary of selected financial information for the three months ended Sept. 30, 2023, and the three months ended Aug. 31, 2022, is attached.

                            FINANCIAL HIGHLIGHTS

                                   Three months ended     Three months ended  
                                       Sept. 30, 2023       Aug. 31, 2022 (1)   

Revenue                                      $921,783               $371,081  
Gross margin                                       32%                    39%  
Comprehensive (loss)                       (1,798,692)            (3,361,491)
Basic and diluted (loss) per share              (0.03)                 (0.07)

(1) As a result of the company's change in year-end, the comparative period 
reflects the three months ended Aug. 31, 2022.

For more information, please refer to the company's management's discussion and analysis and the company's unaudited condensed consolidated interim financial statements for the three and six months ended Sept. 30, 2023, and Aug. 31, 2022. These documents are available on the company's website and under the company's SEDAR+ profile.

About Hypercharge Networks Corp.

Hypercharge (NEO: HC) (OTCQB: HCNWF) (Frankfurt Stock Exchange: PB7) is a leading provider of smart electric vehicle charging solutions that offers turnkey technology to multiunit residential and commercial buildings, fleet operations, and other rapidly growing sectors. Driven by its mission to accelerate EV adoption and enable the shift toward 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.

We seek Safe Harbor.