Mr. David Bibby reports

HYPERCHARGE ANNOUNCES FOURTH QUARTER AND FY2024 FINANCIAL RESULTS

Hypercharge Networks Corp. has released its audited financial results for the fourth quarter and fiscal year ended March 31, 2024, and filed the related management's discussion and analysis.

"Fiscal 2024 was a year of solid growth and momentum building for Hypercharge, underscored by record revenues and driven by improved sales execution, key product introductions, and increased technology innovation," said David Bibby, president and chief executive officer of Hypercharge.

"For the fiscal year, revenue increased to $3.1-million, driven by strong execution in our multiunit residential and direct current (DC) fast-charging verticals, and, in the fiscal fourth quarter, revenue increased to a record $1.1-million. Our gross margin for the year improved to 32 per cent, up 760 basis points from the previous year, bolstered by a 375-per-cent increase in SaaS subscriptions and recurring revenues. The company's performance has been resilient, even with the EV industry encountering hurdles in calendar Q4 and Q1, including higher borrowing costs and other economic challenges.

"The growing momentum in the business is further demonstrated by substantial growth in our sales backlog, reaching $6.3-million as of March 31, 2024, which we expect to deliver over the coming quarters as we expand our presence across Canada and into the U.S.

"Looking ahead, our strategic priorities include growing our network of charging stations across Canada and the U.S., ramping up professional services to expand our revenue mix, and continued investment in industry specific technology innovation to improve customer and site owner experience. We have also implemented measures to reduce recurring operating expenses by 20 per cent, which we anticipate will positively impact the upcoming fiscal year. With strong orders, a growing backlog and solid margins, we are gaining traction by intensifying our efforts to capture market share and drive revenue growth," concluded Mr. Bibby.

Fiscal year (FY) 2024 business and pipeline highlights:

• The company signed sales orders for 1,138 charging ports and delivered 1,210 charging ports;
• The company recognized revenue of $3,072,107, an increase of $1,084,100 (55 per cent) compared with the seven months ended March 31, 2023, and $667,129 (28 per cent) compared with the 12 months ended March 31, 2023;
• Increased the sales backlog to $6,301,525 as of March 31, 2024, an increase of $4,521,486 (254 per cent) during the fiscal year, which includes signed sales orders for 991 EV (electric vehicle) charging ports;
• Increased the number of drivers using the Hypercharge mobile app by 8,630 (251 per cent) in the year ended March 31, 2024, to a total of 12,063 users;
• The company now operates EV charging stations across eight provinces and one territory in Canada, and 10 states in the United States;
• Processed a sales order with a Canadian energy infrastructure provider for up to 12 DC fast-charging stations to be deployed in Western Canada, worth an estimated $3-million;
• Expanded the company's product offering through the launch of a series of new innovative offerings to the marketplace, including its carbon credit program, professional services and Eevion, the company's integrated charging platform;
• Received approval to list the company's common shares on the TSX Venture Exchange following satisfaction of regulatory requirements. The common shares were voluntarily delisted from Cboe Canada Inc. (formerly Neo Exchange Inc.) at the close of markets on March 27, 2024, and began trading on the TSX-V at the open of markets on March 28, 2024;
• Entered into a strategic partnership with Precise ParkLink Inc., which manages over 500,000 parking stalls across Canada in the health care, municipal, commercial, institutional and private sectors. Precise ParkLink is the company's first customer utilizing Eevion;
• Completed a $5-million non-brokered private placement;
• Selected by Natural Resources Canada's Zero-Emission Vehicle Infrastructure Program (ZEVIP) to support the growth of EV charging infrastructure and furthering the adoption of electric vehicles in Ontario. The ZEVIP financing of $229,356 will subsidize the cost of 48 level 2 EV chargers across 11 parking lots;
• Received the Greater Vancouver Board of Trade Business Distinction Award for Business Growth under $5-million in revenue.

Financial highlights (for the three months ended March 31, 2024)

For the three months ended March 31, 2024, the company recognized revenue of $1.1-million, an increase of 42 per cent compared with $800,000 in the prior year. The increase was primarily due to an increase in EV charging equipment revenue, with 302 EV charging ports delivered during the quarter, representing an increase of 26 per cent over the comparable period.

Gross profit increased to $300,000 for the three months ended March 31, 2024, an increase of 62 per cent from $200,000 for the three months ended March 31, 2023, due primarily to increased sales volume of EV charging equipment, and increased contribution from other revenues and growth in new SaaS (software-as-a-service) subscriptions and recurring SaaS revenues. For the three months ended March 31, 2024, gross margin increased to 27 per cent from 23 per cent in the comparable period.

Operating expenses were $1.9-million for the three months ended March 31, 2024, an 11-per-cent decrease from $2.2-million in the prior-year period. The decrease in operating expenses was due to a 32-per-cent reduction in general and administrative expenses, and non-cash expenses, partially offset by increased investments in sales and marketing, and research and development. The company's operating expenses in the quarter decreased by $720,957 (27 per cent) from the three months ended Dec. 31, 2023.

Net and comprehensive loss for the three months ended March 31, 2024, was $1.6-million, or two cents per basic and diluted share, as compared with a net loss of $2.0-million, or four cents per basic and diluted share, in the prior year.

Financial highlights (for the fiscal year ended March 31, 2024)

For the fiscal year ended March 31, 2024, the company recognized revenue of $3.1-million, an increase of 28 per cent compared with $2.4-million in the prior year. The increase was primarily due to an increase in EV charging equipment revenue, with 1,210 EV charging ports delivered during the year, representing an increase of 493 (70 per cent) over the comparable year-ago period. For the fiscal year ended March 31, 2024, SaaS revenue of $100,000 increased 375 per cent over the prior year.

Gross profit increased to $1.0-million for the year ended March 31, 2024, an increase of 67 per cent from $600,000 in fiscal 2023, due primarily to increased sales volume of AC chargers, higher gross profit dollars earned on sales of DC fast chargers, and from increased gross profits associated with scaling up of recurring SaaS and other revenues compared with the prior-year comparative period. Fiscal year 2024 gross margin increased to 32 per cent, from 24 per cent in the comparable year-ago period, as a result of product mix and an increase in higher-margin SaaS and other revenues.

Operating expenses were $9.1-million for fiscal 2024, a 29-per-cent increase from $7.1-million during the 12 months ended March 31, 2023. The increased operating expenses were attributable primarily to the company's early stages of business in the comparable period.

Net and comprehensive loss for fiscal 2024 was $8.0-million, or 12 cents per basic and diluted share, as compared with a net loss of $9.9-million, or 18 cents per basic and diluted share, in the prior year.

Total assets as at March 31, 2024, were $6.0-million, as compared with $6.4-million for the year ended March 31, 2023. As at March 31, 2024, the company had cash and cash equivalents of $2.5-million, compared with $2.7-million at March 31, 2023. The company's working capital was $3.3-million as at March 31, 2024, compared with $4.3-million at March 31, 2023.

Summary of key financial measures

A summary of selected financial information for the three and 12 months ended March 31, 2024, and March 31, 2023, is provided in the attached table.

For more information, please refer to the company's management's discussion and analysis, the company's annual information form, and the company's audited consolidated financial statements for the three-month periods and years ended March 31, 2024, and March 31, 2023. 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 (EV) charging solutions for 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 offering seamless, simple solutions, including industry-leading hardware, innovative and integrated software, and comprehensive services, backed by a robust network of public and private charging stations.

We seek Safe Harbor.