Mr. Jonathan Lansky reports

LEGEND POWER ANNOUNCES PRELIMINARY FINDINGS FROM INDEPENDENT EVALUATION OF SMARTGATE OPERATING PERFORMANCE

Legend Power Systems Inc. has released preliminary findings from an ongoing independent government-financed evaluation of SmartGATE operating performance at a federal facility.

The evaluation is assessing the impact of SmartGATE on building operating conditions, energy consumption, demand characteristics and infrastructure-related performance metrics under normal operating conditions. A final report is expected in October, 2026.

According to the interim findings, the facility was regularly operating approximately 32 to 35 volts above optimized equipment nameplate voltage conditions during normal utility operation. With SmartGATE engaged, operating voltage was maintained within approximately one to two volts of equipment nameplate.

Using standard electrical loss modelling, the elevated voltage conditions observed during baseline operation translated into approximately 14-per-cent to 16-per-cent higher thermal stress on building systems, equivalent to roughly a 7-degree Celsius increase in operating severity.

The interim measurement and verification analysis also demonstrated approximately 2.6 per cent energy savings, average demand reductions in the 2-per-cent to 4-per-cent range, and peak demand reductions approaching 25 per cent during portions of the evaluation period.

The interim findings are preliminary in nature and remain subject to review, refinement, and inclusion in the final report. Final conclusions may differ from the preliminary findings reported herein.

In addition to the measured evaluation results, facility operations personnel reported several operational improvements following SmartGATE deployment. According to feedback provided by facility staff, these observations included reduced lighting flicker, fewer breaker trips, fewer variable frequency drive (VFD) resets, and reductions in HVAC and elevator reset activity.

These observations were provided by facility personnel and are not part of the formal measurement and verification results. The company has not independently quantified these observations, and they are not included within the interim evaluation findings.

Building on a broader validation strategy

Over the past several quarters, Legend Power has focused on addressing a challenge frequently encountered during customer evaluations. While many building owners and operators recognize that operating conditions can influence equipment performance, quantifying the broader infrastructure and operational implications beyond energy savings has often proven difficult.

To address this challenge, the company implemented a focused strategy designed to better quantify and communicate SmartGATE's broader value proposition. This effort has included refinement of the company's technical framework, expanded use of third party operating and infrastructure data sets, and analysis of operating and financial results from existing SmartGATE deployments.

As part of this work, Legend Power has increasingly focused on the relationship between actual building operating voltage and equipment design voltage levels, commonly referred to as equipment nameplate ratings. Operating voltage conditions similar to those observed during the evaluation have been identified across numerous commercial and institutional facilities evaluated by the company, where equipment frequently operates above design voltage levels despite remaining within utility-permitted service ranges.

The company believes the preliminary findings provide an additional independent data point that is generally consistent with observations from existing SmartGATE deployments, facility operating feedback and the broader analytical framework developed over the past year.

"Historically, electrical optimization technologies have often been evaluated primarily through the lens of energy savings," said Mike Cioce, vice-president of sales and marketing.

"What makes these preliminary findings important is that they provide independent operating-condition data showing the relationship between building voltage conditions and modeled thermal stress on infrastructure. While additional analysis remains under way, these findings expand the discussion beyond energy savings and toward broader considerations such as infrastructure performance, operational stability, maintenance planning, reliability and long-term asset management.

"Over the past year, we have invested significant effort into helping customers better understand and evaluate the operational and infrastructure implications of operating outside equipment design conditions. The preliminary findings, together with operating data from existing deployments, third party infrastructure analysis and feedback from facility operators, continue to build the body of evidence supporting those discussions.

"Equally encouraging is the consistency between the measured findings and the operational feedback being reported by facility personnel. While these observations were not part of the formal measurement process, reports of reduced lighting flicker, fewer breaker trips, fewer VFD resets, and fewer HVAC and elevator reset events are consistent with the types of improvements one would expect from a more stable electrical operating environment."

Additional analysis remains under way, with the final report expected in October, 2026. Legend Power intends to provide further updates as additional findings become available.

About Legend Power Systems Inc.

Legend Power Systems 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 pro-active 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.

About SmartGATE

SmartGATE is a turnkey solution that identifies and resolves inefficiencies in commercial electrical systems, enhancing energy performance while reducing costs and emissions. The SmartGATE active energy management system installs after the meter in line with your switchgear. Using the company's patented technology, SmartGATE extracts a percentage of the load, convert and analyze it, rebuild the waveform, and then inject it back into your system. This provides full voltage regulation (plus/minus 8 per cent) to your exact specification, on each phase individually to address the main power attributes that impact system reliability, lifetime and efficiency. All focused on reducing energy consumption while creating optimal power for optimal performance with a footprint designed for today's buildings.

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