Legend Power Systems Reports Q3 F2025 Financial Results

Rhea-AI Summary

Legend Power Systems (OTCQB:LPSIF), a commercial electrical system solutions provider, reported its Q3 F2025 financial results with revenue of $385,354, down 63% from $1.04 million in Q3 F2024. The company posted a net loss of $837,615, compared to a $482,386 loss in the same period last year.

The quarter saw gross margins decline to 24% from 50% year-over-year, while operating expenses decreased 7% to $927,839. Despite lower revenue, CEO Randy Buchamer emphasized strong backlog levels and attributed the revenue decline to deal timing rather than demand issues. The company maintains a debt-free position with $215,000 in cash and $156,000 in working capital as of June 30, 2025.

Notable developments include progress toward obtaining a GSA Multiple Award Schedule, a repeat order for eight SmartGATE systems from an existing customer, and the first SmartGATE order from New York Public Schools.

Positive

• Debt-free balance sheet with $215,000 in cash
• Operating expenses reduced by 7% year-over-year
• Strong backlog reported as one of the highest in company history
• Progress on obtaining GSA Multiple Award Schedule for U.S. government sales
• Secured repeat order for eight SmartGATE systems from existing customer
• New customer acquisition with NYC Public School System

Negative

• Revenue declined 63% year-over-year to $385,354
• Net loss increased 74% to $837,615
• Gross margin decreased significantly from 50% to 24%
• Low cash position of $215,000 may indicate potential liquidity concerns
• Working capital decreased to $156,000

Conference Call Today at 11am ET

Vancouver, British Columbia--(Newsfile Corp. - August 22, 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 June 30, 2025 ("Q3 F2025"). The Company has also scheduled a conference call to provide a business update to discuss its Q3 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.

Q3 F2025 Highlights

• Revenue of $385 thousand versus $1 million in Q3 F2024
• Net loss of $837 thousand versus a $482 thousand loss in Q3 F2024
• Cash of $215 thousand, no debt, and $156 thousand in working capital at June 30, 2025

"The third quarter of 2025 reflected lower revenue due to deal timing, not demand, as our backlog is one of the strongest in the company's history and we expect a significant portion of these systems to be fulfilled this year," said Randy Buchamer, CEO of Legend Power Systems. "I recognize the fact that some initiatives have taken longer to land than we initially guided, but the reality is the groundwork is done, the relationships are built, and the deals are now in motion. We are sitting on multiple late-stage opportunities across commercial real estate, education, government, and military that, once closed, have the potential to meaningfully impact the Company. SmartGATE™ has gone from a proven technology to an essential piece of critical infrastructure, and our customers are seeing that in real-world performance. We are entering a period where momentum can compound quickly, and we fully expect to announce significant wins before year-end that validate Legend as a scaled, repeatable growth story."

Q3 F2025 Operational Highlights

• Legend Power Systems is also in progress of obtaining a GSA Multiple Award Schedule ("MAS"). A GSA MAS contract is the U.S. government's preferred way to buy from trusted, pre-vetted vendors, making procurement faster, easier, and more compliant for both sides.

• During the quarter, an existing customer placed a repeat order 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. We have also been engaged by several large international airports to help assess and find solutions to ongoing power challenges impacting overall airport operations.

Events Subsequent to Q3 F2025

• The Company has received $213,638 of outstanding trades receivables and deposits from sales orders.

• The Company extended the terms of 12,861,553 common share purchase warrants that were issued under the Company's private placement of units completed in two tranches on July 31, 2023 and August 22, 2023. The warrants have an exercise price of $0.25 and were set to expire on July 31, 2025 and August 22, 2025. The Company has received consent from TSX Venture Exchange to extend the expiry date of the warrants to July 31, 2026 and August 22, 2026.

Q3 F2025 Financial Highlights

Financial summary for the three months ended June 30, 2025 and 2024

		Three months ended June 30,								Nine months ended June 30,
(Cdn$, unless noted otherwise)		2025			2024			Change		2025			2024			Change
Revenue		385,354			1,042,412			(63)%		989,768			1,167,638			(15)%
Cost of sales		292,290			522,274			(44)%		770,413			611,845			26%
Gross margin1		93,064			520,138			(82)%		219,355			555,793			(61)%
Gross margin %1		24%			50%			(52)%		22%			48%			(54)%
Operating expenses		927,839			999,539			(7)%		3,018,537			3,037,366			(1)%
Net loss		(837,615	)		(482,386	)		74%		(2,810,359	)		(2,471,034	)		14%

 

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

Revenue for the third quarter of 2025 was $385,354 compared with $1,042,412 in the same quarter of fiscal 2024. The higher revenue during Q3 of fiscal 2024 is primarily due to the fulfillment of additional SmartGATE units.

Gross margin in the third quarter of fiscal 2025 was $93,064, compared with $520,138 in the same quarter of fiscal 2024. The decrease in gross margin dollars is mainly due to a decrease in the number SmartGATE units sold.

The Company's operating expenses for the third quarter of fiscal 2025 were $927,839, compared with $999,539 in the same quarter of fiscal 2024. The primary cause for the decrease was primarily due to cost cutting measures taken in Q3 of fiscal 2025.

Net loss for the third quarter of fiscal 2025 was $837,615, compared with a net loss of $482,386 in the same quarter of fiscal 2024.

CONFERENCE CALL DETAILS:

DATE:	Friday, August 22, 2025
TIME:	11:00 AM ET (8:00 AM PT)
WEBINAR:	Legend Power Q3 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/263396

FAQ

What were Legend Power Systems (LPSIF) key financial results for Q3 2025?

Legend Power reported revenue of $385,354 (down 63% YoY), a net loss of $837,615 (increased 74% YoY), and gross margins of 24% (down from 50% YoY).

How much cash does Legend Power Systems (LPSIF) have as of Q3 2025?

As of June 30, 2025, Legend Power had $215,000 in cash, no debt, and $156,000 in working capital.

What new business developments did Legend Power Systems announce in Q3 2025?

The company is pursuing a GSA Multiple Award Schedule, received a repeat order for eight SmartGATE systems, and secured its first order from NYC Public Schools.

Why did Legend Power Systems' revenue decline in Q3 2025?

According to CEO Randy Buchamer, the revenue decline was due to deal timing rather than demand issues, with the company reporting one of its strongest backlogs in history.

What happened to Legend Power Systems' warrant terms after Q3 2025?

The company extended the expiry date of 12,861,553 warrants with a $0.25 exercise price from July/August 2025 to July/August 2026, with TSX Venture Exchange approval.