Mr. Ray de Ocampo reports

ONENERGY INC. REPORTS 2023 Q2 RESULTS AND PROVIDES CORPORATE UPDATE

ONEnergy Inc. has filed its financial results as at and for the three- and six-month periods ended June 30, 2023, and has provided a corporate update.

Financial results

For the three-month period ended June 30, 2023, net loss and comprehensive loss were ($580,000) compared with net income and comprehensive income of $551,000 during same period in 2022.

For the six-month period ended June 30, 2023, net loss and comprehensive loss amounted to ($833,000) compared with net income and comprehensive income of $458,000 during the same period in 2022.

Net loss and comprehensive loss for the three- and six-month periods ended June 30, 2023, include an additional litigation provision of $258,000 related to the default motion (see CWave Power & Gas Inc. motion below for discussion).

Net income and comprehensive income for the three-month period ended June 30, 2022, include a gain of $959,000 on the derecognition of certain liabilities in the United States of the company's wholly owned subsidiary, Sunwave Gas & Power Inc., as a result of the filing and approval, under Chapter 15 of Title 11 of the U.S. Code, to have Sunwave Canada's assignment into bankruptcy in Canada recognized in the United States. Net income and comprehensive income for the six-month period ended June 30, 2022, include a gain of $1,168,000 on the derecognition of the net liabilities of Sunwave Canada.

For further information on the financial results of the company, please review the company's unaudited interim condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations for the three-month and six-month periods ended June 30, 2023, available under the company's issuer profile on SEDAR+.

CWave Power & Gas Inc. motion and creditor proposal

As previously reported on April 28, 2023, the company is a defendant in an action commenced by CWave Power & Gas Inc. in the Supreme Court of the State of New York. Also a defendant is Sunwave Canada. CWave brought a motion for default judgment as a result of the defendants not responding to a verified complaint that was filed in the N.Y. Court.

On July 17, 2023, the N.Y. Court granted CWave's default motion. A final judgment against the defendants, with approval of the final amount sought, being approximately $964,041 (U.S.), is pending issuance by the N.Y. Court. Accordingly, the company increased its litigation provision by $258,000 (to $1,276,000 ($964,041 (U.S.))) as a result of the ruling.

The company expects to satisfy the debt through the proposal that it filed pursuant to the Bankruptcy and Insolvency Act (Canada) on May 30, 2023. The company previously reported on the progress of its proposal on May 30, 2023, and on June 22, 2023. The proposal was approved by the company's unsecured creditors at a meeting held on June 22, 2023. The company will make a motion in writing to the Ontario Superior Court of Justice seeking approval of the proposal. The proposal is subject to the approval of the TSX Venture Exchange. Following the receipt of requisite approvals by the Ontario Court and the exchange and pursuant to the proposal, the company will satisfy its unsecured outstanding liabilities in exchange for the issuance of common shares of the company. The issuance of common shares by the company shall be full and final satisfaction for all of the company's unsecured claims, including the debt, and all unsecured claims as against the company will be forever released.

Secured grid promissory note debt financing

Between May 30, 2023, and Aug. 18, 2023, Stephen J.J. Letwin, a director and chairman of the board of directors, provided advances under a secured grid promissory note to the company totalling $180,000. This note is not convertible into securities of the company, is secured by a first-ranking security over the company's assets, bears an annual interest rate at 10 per cent and is due on Dec. 31, 2023.

About ONEnergy Inc.

ONEnergy common shares are listed on the NEX board of the TSX Venture Exchange under the symbol OEG.H.

The company's common shares remain halted from trading pending implementation of the proposal.

We seek Safe Harbor.