Legend Power Systems Receives Follow-On Order for Four SmartGATE Systems

Rhea-AI Summary

Legend Power Systems has secured a follow-on order for four SmartGATE systems from an existing customer, surpassing 70 Gen3 units sold milestone. The customer will handle installation internally, leading to improved gross margins and faster cash collection. SmartGATE technology regulates voltage in commercial buildings to match design specifications, resulting in reduced operational disruptions and extended equipment life. The order demonstrates success in Legend's land-and-expand strategy, where customers typically start with small deployments before expanding across their portfolios based on demonstrated performance benefits. Previous installations have shown positive results, including reduced elevator entrapments and improved system stability.

Positive

• Reached milestone of over 70 Gen3 SmartGATE units sold since launch
• Customer-installed deal structure improves gross margins and accelerates cash collection
• Growing repeat orders demonstrate product effectiveness and customer satisfaction
• Proven operational benefits including reduced elevator entrapments and improved system stability

Negative

• None.

Surpasses Milestone of 70 Gen3 SmartGATE Units Sold

Vancouver, British Columbia--(Newsfile Corp. - June 2, 2025) - Legend Power® Systems (TSXV: LPS), a global leader in commercial electrical system solutions, announces a follow-on order for four additional SmartGATE systems from a long-standing customer. These units will be deployed across new buildings within the customer's existing real estate portfolio.

This latest order increases the total number of SmartGATE Gen 3 systems sold to over 70 units since launch. The decision to expand comes after performance data from previously installed systems indicated operational and financial improvements in electrical stability, system reliability, and building operations.

The customer has opted to manage installation using its internal team and preferred contractors. This "customer installed deal" structure contributes to improved gross margins, higher upfront deposit terms, and faster cash collection, consistent with Legend Power's evolving model for customer-directed deployment.

"This order reflects the continued execution of our land-and-expand strategy," said Mike Cioce, Vice President of Sales and Marketing at Legend Power Systems. "Customers begin with a small number of SmartGATE systems, assess performance, and then determine where additional systems can be applied across their portfolios. As customers realize the operation and financial benefits of SmartGATE we are beginning to see order size and velocity increase."

SmartGATE is designed to address deviations in incoming utility power by regulating voltage to match the design specifications of commercial building systems. In prior deployments, this has been shown to reduce operational disruptions, extend equipment life, and stabilize critical systems such as HVAC, elevators, and lighting. One customer, for example, reported a notable decline in elevator entrapments following system commissioning.

Repeat orders continue to represent a growing share of Legend Power's SmartGATE sales. The Company's strategy focuses on initial pilots that can be evaluated by customers before wider rollout decisions are made. We are also seeing word-of-mouth referrals as the industry hears about deployments and the positive results on building operations.

This most recent order aligns with that approach and contributes to Legend's current momentum in multi-building, multi-phase deployments.

Forward-Looking Statements Disclaimer

This press release contains forward-looking statements regarding potential future deployments and anticipated outcomes. These statements are based on current expectations and involve risks and uncertainties, including but not limited to the successful implementation of solutions and external market conditions. Actual results may differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements.

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 our patented technology, we extract 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 (+/- 8%) 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.

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
lansky.j@icloud.com

Sean Peasgood, Investor Relations
+1 647 503 1054
sean@sophiccapital.com

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254107

FAQ

What is the significance of Legend Power Systems' (LPSIF) latest SmartGATE order?

The order for four SmartGATE systems represents a follow-on purchase from an existing customer, pushing total Gen3 units sold beyond 70 and validating the company's land-and-expand strategy.

How does SmartGATE technology benefit commercial buildings?

SmartGATE regulates incoming utility power voltage to match building specifications, reducing operational disruptions, extending equipment life, and stabilizing critical systems like HVAC, elevators, and lighting.

What are the financial advantages of customer-installed SmartGATE deals for Legend Power?

Customer-installed deals result in improved gross margins, higher upfront deposit terms, and faster cash collection for Legend Power Systems.

How successful is Legend Power's land-and-expand strategy with SmartGATE?

The strategy has proven successful, with customers typically starting with small pilots, evaluating performance, and then expanding deployments across their portfolios based on positive results.

What specific operational improvements have customers seen with SmartGATE?

Customers have reported reduced operational disruptions, extended equipment life, improved system stability, and notably decreased elevator entrapments following system installation.