Legend Power Systems Reports Q1 F2024 Financial Results

Conference Call Scheduled for February 23, 2024 at 11am EST

February 23, 2024 7:00 AM EST | Source: Legend Power Systems Inc.

Vancouver, British Columbia--(Newsfile Corp. - February 23, 2024) - Legend Power Systems Inc. (TSXV: LPS) (OTCQB: LPSIF) ("Legend Power" or the "Company"), a global leader in commercial electrical system solutions, reports its financial results for the three months ended December 31, 2023 ("Q1 F2024"). The Company has also scheduled a conference call to provide a business update to discuss its Q1 F2024 financial results today at 11:00 AM ET (8:00 AM PT) (details below). The call will be hosted by Randy Buchamer, President & Chief Executive Officer. A complete set of Financial Statements and Management's Discussion & Analysis has been filed at www.sedarplus.ca. All dollar figures are quoted in Canadian dollars.

Q1 F2024 Highlights

  • Revenue of $1,548 versus $403 thousand in Q1 F2023
  • Adjusted EBITDA loss of $964 thousand versus a $850 thousand loss in Q1 F2023
  • Net loss of $1.08 million versus a $1.01 million loss in Q1 F2023
  • Cash of $1.4 million, no debt, and $2.8 million in working capital at December 31, 2023

"While deals have taken longer to close than initially thought, we continue to advance all deals that have previously been communicated and have not lost a single opportunity," said Randy Buchamer, Legend Power Systems CEO. "As we work to close deals, our pipeline continues to grow. We are managing our cash carefully and expect to receive deposits that will help with working capital going forward. I look forward to being able to update investors as these deals are finalized in the coming quarters."

Q1 F2024 Operational Highlights

  • Twelve systems are scheduled to be delivered over the next four months. The systems will provide about $1.1 million to cash.
  • Green Proving Ground program for the United States General Services Administration, which operates approximately 1,800 federally owned buildings is proceeding well. Building upon key milestones achieved in the prior year, the deployment and evaluation schedule continues to progress. Two initial sites have been selected, and the shipment of the first unit is expected in the next few weeks.
  • Progress continues with the City of New York's Department of Citywide Administrative Services (DCAS) IDEA program. Recall that DCAS finalized the City of New York schools specification for new builds and new renovations to have Active Power Management. Currently there are over 30 active RFP's that we are responding to, which is leading to an influx of inquiries about SmartGATE pricing and install capabilities.
  • The pipeline remains very strong with opportunities into government and commercial real estate including residential, hospitality, big box retail and commercial office. Currently Legend Power Systems is engaged in active sales processes with several of the top firms in the Commercial Real Estate space, with large building portfolios.

Q1 F2024 Financial Highlights

Financial summary for the three months ended December 31, 2023 and 2022

Three months ended December 31,
(Cdn$, unless noted otherwise)20232022Change
Revenue1,548 402,663 (100)%
Cost of sales22,664 301,952 (92)%
Gross margin1(21,116)100,711 (121)%
Gross margin %1(1364)%25%(1389)%
Operating expenses(1,069,588)(1,112,997)(4)%
Adjusted EBITDA2(963,612)(849,577)13%
Net loss(1,081,490)(1,005,515)8%


1 Gross margin is based on a blend of both equipment and installation revenue.
2 Adjusted EBITDA is a non-IFRS financial measure. See EBITDA Reconciliation for details.

Revenue for the first quarter of 2024 was $1,548 compared with $402,663 in the same quarter of fiscal 2023. The lower revenue during Q1 of fiscal 2024 was primarily due to production scheduling as order fulfillment of SmartGATE units are expected over the next quarters.

Gross margin in the first quarter of fiscal 2024 was negative $21,116, compared with $100,711 in same quarter of fiscal 2023. Negative margins were the result of allocated fixed costs incurred.

The Company's operating expenses for the first quarter of fiscal 2024 were $1,069,588, down from $1,112,997 in the same quarter of fiscal 2023. The primary cause for the decrease was lower salaries and consulting costs as a result of internal cost cutting measures.

Adjusted EBITDA for the first quarter of fiscal 2024 was negative $963,612, compared with negative $849,577 in same quarter of fiscal 2023.

Net loss for the first quarter of fiscal 2024 was $1,081,490, compared with a net loss of $1,005,515 in the same quarter of fiscal 2023. Decrease in gross margins and decreased operating costs in Q1 of fiscal 2024 compared with the same quarter of fiscal 2023 resulted in a higher net loss.


DATE: Friday, February 23, 2024
TIME: 11:00 AM ET (8:00 AM PT)
WEBINAR: Legend Power Q1 Fiscal 2024 Financial Results Investor Webinar (via Zoom)

REPLAY: Available at: https://legendpower.com

About Legend Power Systems Inc.

Legend Power Systems Inc. (https://legendpower.com/) 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 proactive 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.

For further information, please contact:

Jonathan Lansky, Director
+1 416 417 7664

Sean Peasgood, Investor Relations
+ 1 647 503 1054

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This Press Release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR+ at www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results to not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/198962