Mr. David Bibby reports

HYPERCHARGE NETWORKS CORP. ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE THREE MONTHS AND NINE MONTHS ENDED DECEMBER 31, 2023

Hypercharge Networks Corp. has released its unaudited financial results for the three months and nine months ended Dec. 31, 2023. All dollar figures are in Canadian dollars, unless otherwise stated.

Business and pipeline highlights (for the three months ended Dec. 31, 2023):

• Signed sales orders for 276 level 2 and DC (direct current) fast-charging ports in the three months ended Dec. 31, 2023, for a total of over 2,800 charging ports sold since commencing business operations in June, 2021;
• Sold and delivered 307 charging ports in the three months ended Dec. 31, 2023, for a total of over 1,650 charging ports since commencing business operations in June, 2021;
• Processed a sales order pursuant to a supply agreement dated Dec. 20, 2023, between the company and a Western Canadian energy infrastructure provider for up to 12 DC fast-charging locations to be deployed in Western Canada, worth an estimated $2-million to $3-million in revenue;
• Reduced general and administration expenditures, net of non-cash expenses, by $275,575 (24 per cent) and $499,574 (37 per cent) compared with the three months ended Sept. 30, 2023, and June 30, 2023, respectively. As such, the company strategically reallocated these resources with investment in sales and marketing initiatives and research and development efforts over the same period.
• Increased EV (electric vehicle) charging sites under management to 271, an increase of 167 (161 per cent) year over year for the 12-month period ending Dec. 31, 2023;
• Increased the number of drivers using the Hypercharge mobile app in the quarter by 2,370 (33 per cent) to over 9,600 users;
• Launched three new products: (1) Hypercharge Home, the company's residential level 2 EV charging station for single-family homes; (2) Eevion integrated charging, a cloud-based platform that integrates the Hypercharge EV charging network into any third party app, platform or system; and (3) the Hypercharge carbon credit program, administering carbon credits for select commercial and multifamily properties across certain areas of North America;
• Received the Greater Vancouver Board of Trade Business Distinction Award for Business Growth under $5-million in revenue.

Financial highlights (for the nine months ended Dec. 31, 2023)

For the nine months ended Dec. 31, 2023, the company's revenue was $2,004,629, an increase of 28 per cent compared with $1,562,987 in the nine months ended Nov. 30, 2022. Gross margin increased to 35 per cent from 20 per cent in the comparable period. Operating expenses increased from $4,442,902 in the comparable period to $7,188,957 (an increase of 62 per cent) for the nine months ended Dec. 31, 2023. The increase in operating expenses of $2,746,055 during the nine months ended Dec. 31, 2023, is attributable to the company's early stages of business in the comparable period and comprises $1,385,576 in non-cash expenses and non-recurring expenses, and $1,360,479 in increased direct and variable costs.

Financial highlights (for the three months ended Dec. 31, 2023)

For the three months ended Dec. 31, 2023, the company's gross profit increased to $178,658 (4 per cent), compared with $172,011 in the three months ended Nov. 30, 2023. Gross margin increased to 31 per cent, compared with 15 per cent in the comparative period, due primarily to increased sales volume of higher-margin AC (alternating current) chargers and new SaaS (software-as-a-service) subscriptions and recurring SaaS revenues. For the three months ended Dec. 31, 2023, the company's revenue was $581,822, a decrease of 48 per cent compared with $1,123,071 in the three months ended Nov. 30, 2022. Operating expenses increased from $1,882,276 in the comparable period to $2,640,079 (an increase of 40 per cent) for the three months ended Dec. 31, 2023. Operating expenses comprise general and administrative expenses, sales and marketing expenses, and research and development. The increased operating expenses of $757,803 during the three months ended Dec. 31, 2023, are attributable to $687,239 in non-cash expenses and non-recurring expenses, and $70,564 in increased direct and variable costs.

"Reflecting on this quarter's results, our focus remains on providing value-added EV charging services to our growing number of sites under management, controlling our operating expenses and focusing on long-term growth," said David Bibby, president and chief executive officer of Hypercharge. "Despite current economic conditions leading to longer delivery cycles affecting revenue in the quarter, we are pleased with our strong margins and focused on building a growing backlog."

Total assets as at Dec. 31, 2023, were $7,384,703, (a 15-per-cent increase from $6,404,576 for the year ended March 31, 2023). As at Dec. 31, 2023, the company had cash and cash equivalents of $4,367,649.

Summary of key financial measures:

A summary of selected financial information for the three months ended Dec. 31, 2023, and the three months ended Nov. 30, 2022, is provided in the attached table.

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 nine months ended Dec. 31, 2023, and Nov. 30, 2022. These documents are available on the company's website and under the company's SEDAR+ profile.

About Hypercharge Networks Corp.

Hypercharge is a leading provider of smart electric vehicle charging solutions that offers turnkey technology to 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.