Mr. Randy Buchamer reports

LEGEND POWER SYSTEMS REPORTS Q2 F2026 FINANCIAL RESULTS

Legend Power Systems Inc. has released its financial results for the three and six months ended March 31, 2026 (Q2 fiscal 2026). The company has also scheduled a conference call to provide a business update to discuss its Q2 fiscal 2026 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 discussion and analysis has been filed on SEDAR+. All dollar figures are quoted in Canadian dollars.

Q2 fiscal 2026 highlights:

• Revenue of $546,000 versus $523,000 in Q2 fiscal 2025;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $294,000 versus a loss of $810,000 in Q2 fiscal 2025;
• Net loss of $443,000 versus a loss of $940,000 in Q2 fiscal 2025.

"The second quarter of 2026 marked another important step forward for Legend Power Systems as customer engagement and commercial activity continued to accelerate," said Mr. Buchamer, CEO of Legend Power Systems. "Our pipeline is stronger than ever, driven by growing recognition that power quality and energy reliability are becoming mission-critical priorities across commercial real estate, education, government, transportation and defence infrastructure. Customers are increasingly leaning into our enhanced analytical tools and proprietary risk metrics, which are helping quantify the broader operational and financial impact of poor power quality beyond traditional energy savings alone. As we continue advancing late-stage opportunities and expanding strategic partnerships, we believe SmartGate is increasingly being viewed as essential building energy infrastructure rather than a discretionary efficiency upgrade."

Q2 fiscal 2026 operational highlights:

• The Technology Proving Ground program for the U.S. General Services Administration, which operates approximately 1,800 federally owned buildings, is proceeding well. The first site has been installed, and data are being generated for third party review.
• Sales activity is continuing at a strong pace, as evidenced from customers (repeat, stalled and new business) that continue engaging with deep and wide interest. The strength in viability is driven mainly by customers articulating power quality concerns and higher visible costs. Partner sales efforts also continue to grow in volume, dollars and strength.
• Legend Power Systems is engaged in active sales processes with several of the top firms in the commercial real estate space, with over 196 buildings in active sales cycles for over 400 potential SmartGates.

Subsequent events to quarter-end:

• Legend Power announced $1.3-million in orders representing 12 SmartGate systems across government expansion projects, reseller-driven sales channels and existing customer expansion opportunities. The orders reflect growing traction from the company's enhanced customer value strategy, including its Capital Infrastructure Risk Assessment (CIRA) framework and expanded analytical tools designed to better quantify the operational, maintenance and long-term infrastructure benefits of SmartGate beyond traditional energy savings metrics.

Revenue for the second quarter of 2026 was $545,838, compared with $522,579 in the same quarter of fiscal 2025. The higher revenue during Q2 fiscal 2026 is primarily due to the fulfilment of additional SmartGate units.

Gross margin in the second quarter of fiscal 2026 was $213,289, compared with $114,345 in the same quarter of fiscal 2025. The increase in gross margin, compared with prior quarter of this fiscal, was primarily due to an increase in average selling price of the SmartGate units and improved factory utilization.

The company's operating expenses for the second quarter of fiscal 2026 were $658,743, compared with $1,049,412 in the same quarter of fiscal 2025. The primary cause for the decrease was lower head count, salaries and consulting costs as a result of internal cost-cutting measures.

Adjusted EBITDA for the second quarter of fiscal 2026 was negative $293,833, compared with negative $810,293 in the same quarter of fiscal 2025.

Net loss for the second quarter of fiscal 2026 was $442,734, compared with a net loss of $939,863 in the same quarter of fiscal 2025.

Webinar details

Date:  Friday, May 22, 2026

Time:  11 a.m. ET (8 a.m. PT)

Replay:  available on Legend Power's website

Investor relations agreement

The company also announces that, subject to approval by the TSX Venture Exchange, it has renewed its engagement with Sophic Capital Inc. as its investor relations partner under a new agreement dated May 21, 2026. Sophic Capital is a comprehensive capital markets advisory firm specializing in small-cap growth companies. Pursuant to the agreement, Sophic Capital will receive $7,000 per month for a term of 12 months. In addition, Legend Power has granted Sophic Capital stock options to purchase up to 400,000 common shares in the capital of Legend Power at a price of 12 cents per option. The options are non-transferable, subject to vesting provisions and expire five years from the date of issuance, unless Sophic Capital's engagement ceases before the options expiry date.

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.

We seek Safe Harbor.