Mr. Nick Blitterswyk reports

UGE REPORTS FISCAL Q1 2023 FINANCIAL RESULTS

UGE International Ltd. has released its financial results for the three months ended March 31, 2023. UGE reports all amounts in United States dollars.

In Q1 2023, UGE continued to grow its business of developing, building, financing, and operating commercial and community solar facilities. The company experienced one of its strongest growth quarters in its history, highlighted by declaring NTP (notice to proceed) on 10 megawatts of projects and COD (commercial operation) on a 1.4 MW project in Texas.

Key financial results in Q1 2023 included:

• Ended Q1 2023 with 3.8 MW of operating assets that contributed $107,300 of energy generation revenue with an 87-per-cent gross margin, representing an increase of 143 per cent in recurring revenue over the prior year. UGE is in the early stages of scaling its operational portfolio, which will see recurring revenue become the company's dominant source of revenue over time.
• Realized total revenue of $521,700, representing growth of 43 per cent over the same period of 2022. Total gross margins were 41 per cent compared with 43 per cent in 2022, remaining relatively consistent across the three business lines.
• The net loss and adjusted net loss for the quarter was $2.8-million, compared with $1.6-million for the same quarter of 2022, as a result of continued investment in developing UGE's project portfolio. UGE is currently developing a significant volume of projects; losses will continue until a greater share of the company's portfolio have reached commercial operations. The change was primarily driven by increased headcount, development, and financing expenses as the company develops its growing portfolio.
• Cash used in operations was $400,000 and the cash balance at March 31, 2023, was $4.2-million.

Key business highlights in Q1 2023 included:

• UGE reached commercial operation on one project with 1,432 KW in rated capacity, bringing its total to 3,758 KW at March 31, 2023. Installed capacity is now four times the installed capacity as at the same time in 2022.
• Achieved NTP on 10.1 MW of projects, a record for the company, as a greater volume of projects in the company's backlog begin to reach construction.
• Grew project backlog to 313 MW compared with 135 MW on March 31, 2022.
• Continued the company's green bond fundraising initiative, closing face value $1.4-million (Canadian) ($1.1-million (U.S.)) of bonds in Q1 2023 and a further face value $290,000 (Canadian) ($210,000 (U.S.)) on April 27, 2023.
• Progressed the sale of the company's Philippines projects as it focuses project development and ownership efforts on the robust U.S. market.

"In Q1 2023, we took notable strides towards our initial goal of 100 MW of operating assets," said UGE's chief executive officer, Nick Blitterswyk. "We exceeded our backlog growth target for the quarter with an additional 52.6 MW of net additions, which is over halfway towards our annual goal. Even more significantly, we reached NTP on 10.1 MW of projects as our team's hard work begins to pay off."

Full financial results and management's discussion and analysis are posted to SEDAR as well as on the company's website.

On-line webinar details

UGE's CEO, Nick Blitterswyk, and chief financial officer, Stephanie Bird, will be hosting a webinar to provide further analysis of the financial results and to answer your questions following the presentation. You can register for the webinar.

Date:  Thursday, May 25, 2023

Time:  11 a.m. ET

About UGE International Ltd.

UGE develops, owns, and operates commercial and community solar projects in the United States and strategic markets abroad. The company's distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers with no upfront cost. With over 500 MW of global experience, the company works daily to power a more sustainable world.

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