Legend Power Systems Reports Q2 F2025 Financial Results

Rhea-AI Summary

Legend Power Systems (OTCQB: LPSIF) reported its Q2 F2025 financial results with revenue of $523K, up 323% from $124K in Q2 F2024. The company posted a net loss of $940K compared to $907K loss in the same period last year. Cash position stood at $224K with no debt and $874K in working capital as of March 31, 2025.

Key developments include a strategic partnership with Unity Electric for New York City operations, launch of their Voltage Adherence Risk metric, and securing orders from the City of New York Public School System. The company completed a second tranche of private placement raising $851K, bringing total financing to $1.6M. Post-quarter, Legend received $750K in outstanding receivables and secured a repeat order for eight SmartGATE systems.

Gross margin was $114K (22%) compared to $57K (46%) in Q2 F2024, with the margin decrease attributed to higher inventory costs and USD-denominated supplier payments.

Positive

• Revenue increased significantly by 323% YoY to $523K
• Secured strategic partnership with Unity Electric for NYC market expansion
• Received first order from NYC Public School System and repeat order for 8 SmartGATE systems
• Successfully raised $1.6M through private placement
• Collected $750K in outstanding receivables post-quarter

Negative

• Net loss increased to $940K from $907K YoY
• Gross margin percentage declined significantly to 22% from 46% YoY
• Operating expenses increased by 8% to $1.05M
• Low cash position of $224K at quarter-end

Conference Call Today at 11am ET

Vancouver, British Columbia--(Newsfile Corp. - May 23, 2025) - 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 March 31, 2025 ("Q2 F2025"). The Company has also scheduled a conference call to provide a business update to discuss its Q2 F2025 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.

Q2 F2025 Highlights

• Revenue of $523 thousand versus $124 thousand in Q2 F2024.

• Net loss of $940 thousand versus a $907 thousand loss in Q2 F2024.

• Cash of $224 thousand, no debt, and $874 thousand in working capital at March 31, 2025 (subsequent to quarter end, the Company received $750,403 of outstanding trades receivables and deposits from sales orders).

"The second quarter of 2025 marks a new phase of execution for Legend Power Systems as we shift our focus from internal readiness to closing deals and capturing additional sales," said Randy Buchamer, CEO of Legend Power Systems. "SmartGATE™ continues to prove its value in delivering reliable, efficient power for building owners who require optimal facility performance at all times. With the first order from the City of New York Public School System and a repeat order of eight additional SmartGATE systems from an existing customer post quarter end, we are seeing our efforts in establishing key partnerships come to fruition. These wins validate our strategy, and we are now focused on accelerating deployments, advancing late-stage opportunities, and converting strong pipeline activity into repeatable, scalable revenue across commercial real estate, education, government, and military sectors."

Q2 F2025 Operational Highlights

• Legend Power Systems entered into a strategic partnership with Unity Electric, an Equans company, to serve as Legend's authorized sales, distribution, and installation partner in New York City. This collaboration strengthens our ability to scale with speed and deliver localized support in a core strategic market.

• Our proprietary Voltage Adherence Risk metric was launched - this diagnostic capability quantifies the operational risk caused by grid-induced power volatility, enabling deeper visibility to the risks to critical building systems present in current non-SmartGATE operations. The SmartGATE Insights evaluation is enhancing the velocity and positive decision-making process for customers and partners.

• Legend Power Systems secured an accelerated purchase order just three weeks after the launch of the new Voltage Adherence Risk measurement service. Through the SmartGATE Insights Power Impact Report, a North American school district's discovered severe power quality issues. This rapid deal highlights how actionable, data-driven insights into "dirty power" can accelerate decision-making and open the door for broader adoption across entire building portfolios.

• Engaged with a major North American Transport Agency to assess and address power quality and energy efficiency challenges at one of the United States 10 largest airports.

• The Company closed it's second tranche of non-brokered private placement of $851 thousand, further increasing liquidity bringing the total financing to $1.6 million.

Events Subsequent to Q2 F2025

• The Company has received $750,403 of outstanding trades receivables and deposits from sales orders.

• The Company signed a large repeat order from a longstanding customer for eight additional SmartGATE systems and the City of New York Public School System placed its first SmartGATE order, aligning with their building electrification and grid resilience strategy.

Q2 F2025 Financial Highlights

Financial summary for the three months ended March 31, 2025 and 2024

		Three months ended March 31,									Six months ended March 31,
(Cdn$, unless noted otherwise)		2025			2024			Change			2025			2024			Change
Revenue		522,579			123,678			323%			604,414			125,226			383%
Cost of sales		408,234			66,907			510%			478,123			89,571			434%
Gross margin1		114,345			56,771			101%			126,291			35,655			254%
Gross margin %1		22%			46%						21%			28%
Operating expenses		(1,049,412	)		(968,239	)		8%			2,090,698			2,037,827			3%
Net loss		(939,863	)		(907,158	)		(4)%			(1,972,744	)		(1,988,648	)		(1)%

 

¹ Gross margin is based on a blend of both equipment and installation revenue.

Revenue for Q2 F2025 was $522,579, compared with $123,678 in the same quarter of fiscal 2024. The higher revenue during Q2 of fiscal 2025 is primarily due to the fulfillment of additional SmartGATE units.

Gross margin in Q2 F2025 was $114,345, compared with $56,771 in the same quarter of fiscal 2024. The increase in gross margin dollars is mainly due to an increase in the number SmartGATE units sold. Gross margin percentage has decreased due to increased cost of certain inventory components, as well as suppliers paid in US dollars. Margin percentage is also lower this quarter, due to the mix of SmartGATE units sold, and anticipate margins to return to the targeted margin levels.

The Company's operating expenses for Q2 F2025 were $1,049,412, compared with $968,239 in the same quarter of fiscal 2024. The primary cause for the increase was higher consulting and warranty expense, as well as temporary cost cutting measures taken in the prior year.

Net loss for Q2 F2025 was $939,863, compared with a net loss of $907,158 in the same quarter of fiscal 2024.

CONFERENCE CALL DETAILS:

DATE: Friday, May 23, 2025
TIME: 11:00 AM ET (8:00 AM PT)
WEBINAR: Legend Power Q2 Fiscal 2025 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.

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.

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.

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/253130

FAQ

What were Legend Power Systems (LPSIF) Q2 2025 financial results?

Legend Power reported Q2 F2025 revenue of $523K (up 323% YoY), net loss of $940K, and gross margin of $114K (22%). Cash position was $224K with no debt and $874K in working capital.

Why did Legend Power Systems' gross margin decline in Q2 2025?

The gross margin declined to 22% from 46% due to increased inventory component costs, suppliers paid in US dollars, and the mix of SmartGATE units sold.

What major partnerships did LPSIF secure in Q2 2025?

Legend Power Systems partnered with Unity Electric, an Equans company, as their authorized sales, distribution, and installation partner in New York City.

How much funding did Legend Power Systems raise in Q2 2025?

The company closed a second tranche of non-brokered private placement of $851K, bringing the total financing to $1.6 million.

What new products or services did Legend Power Systems launch in Q2 2025?

The company launched its proprietary Voltage Adherence Risk metric, a diagnostic capability that quantifies operational risk caused by grid-induced power volatility.