Mr. Randy Buchamer reports

LEGEND POWER SYSTEMS REPORTS Q1 F2024 FINANCIAL RESULTS

Legend Power Systems Inc. has released its financial results for the three months ended Dec. 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 a.m. ET (8 a.m. PT) (details below). The call will be hosted by Randy Buchamer, president and chief executive officer. A complete set of financial statements and management's discussion and analysis has been filed on SEDAR+. All dollar figures are quoted in Canadian dollars.

Q1 F2024 highlights:

• Revenue of $1,548 versus $403,000 in Q1 F2023;
• Adjusted earnings before interest, taxes, depreciation and amortization loss of $964,000 versus an $850,000 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 Dec. 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 Mr. 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 RFPs that Legend is 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.

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 fulfilment of SmartGate units is 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.

Conference call details

Date: Friday, Feb. 23, 2024

Time: 11 a.m. ET (8 a.m. PT)

Webinar: Legend Power Q1 fiscal 2024 financial results investor webinar (via Zoom)

Replay: available on Legend Power website

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.

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