Mr. Ray de Ocampo reports

ONENERGY INC. REPORTS FY 2023 RESULTS AND PROVIDES CORPORATE UPDATE

ONEnergy Inc. has filed its financial results as at and for the year ended Dec. 31, 2023, and has provided a corporate update.

Financial results

For the three-month period ended Dec. 31, 2023, net loss and comprehensive loss was ($112,000) compared with net loss and comprehensive loss of ($1,463,000), during same period in 2022.

Net loss and comprehensive loss for the three-month period ended Dec. 31, 2022, included a litigation provision of $1,042,000 ($769,000 (U.S.)) related to the default motion.

For the year ended Dec. 31, 2023, net loss and comprehensive loss amounted to ($1,141,000) compared with net loss and comprehensive loss of ($1,475,000) during the year ended Dec. 31, 2022.

Net loss and comprehensive loss for the year ended Dec. 31, 2022, included a net gain of $126,000 arising from: (i) a gain of $1,168,000 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 United States Code, to have Sunwave Canada's assignment into bankruptcy in Canada recognized in the United States, offset by (ii) the recognition of a provision of $1,042,000 ($769,000 (U.S.)) for the default motion. Net loss and comprehensive loss for the year ended Dec. 31, 2023, included an additional litigation provision of $258,000 ($195,000 (U.S.)) related to the default motion.

For further information on the financial results of the company, please review the company's audited consolidated financial statements and management's discussion and analysis of financial condition and results of operations for the years ended Dec. 31, 2023, and 2022, available under the company's issuer profile on SEDAR+.

CWave 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 (together with the company, the defendants). CWave brought a motion for default judgment as a result of the defendants not responding to a verified complaint that was filed in the NY court.

On July 17, 2023, the NY court granted CWave's default motion. On March 1, 2024, a final judgment against the defendants, with approval of the final amount sought, being approximately $963,520 (U.S.), was issued by the NY court.

The company expects to satisfy the Debt through the proposal that it filed pursuant to the Bankruptcy and Insolvency Act (Canada) (BIA) on May 30, 2023.

The company last reported on the progress of its proposal on Feb. 15, 2024. The proposal was approved by the company's unsecured creditors at a meeting held on June 22, 2023. The proposal was approved by the Ontario Superior Court of Justice on Jan. 23, 2024, and by the TSX Venture Exchange on Feb. 15, 2024. 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 Nov. 25, 2023, and March 4, 2024, 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 $95,000. The secured note is not convertible into securities of the company, is secured by a first-ranking security over the company's assets and bears an annual interest rate at 10 per cent. The maturity date on the secured note of Dec. 31, 2023, was amended and extended to Dec. 31, 2024.

About ONEnergy Inc.

ONEnergy common shares are listed on the NEX board of the TSX Venture Exchange under the symbol OEG.H. Material information about ONEnergy can be found on SEDAR+ under the company's issuer profile.

We seek Safe Harbor.