Vancouver, British Columbia--(Newsfile Corp. - August 29, 2024) - Hypercharge Networks Corp. (TSXV: HC) (OTCQB: HCNWF) (FSE: PB7) (the "Company" or "Hypercharge"), a leading, smart electric vehicle (EV) charging solutions provider and network operator, is announcing the release of its unaudited financial results for the three months ended June 30, 2024, and related management discussion and analysis. All dollar figures are in Canadian dollars, unless otherwise stated.
Business & Pipeline Highlights (for the three months ended June 30, 2024):
Financial Highlights and Commentary (for the three months ended June 30, 2024):
For the three months ended June 30, 2024, the Company delivered its first quarter of positive operating cash flows, generating net cash of $15,951 provided by operating activities, a year-over-year increase of $1,184,502.
The Company recognized quarterly revenue of $898,249, a year-over-year increase of $397,225 (79%), and grew its sales backlog by $1,445,192 (23%) compared to the quarter ending March 31, 2024.
Operating expenses were $1,873,917 for the three months ended June 30, 2024, a 23% decrease from the prior year period. The decrease in operating expenses was due to a $659,765 (35%) reduction in general and administrative expenses, partially offset by increased investment of $107,786 (19%) in sales and marketing, and research and development.
Gross margin decreased to 26% from 46% over the comparable period as a result of the Company's product mix. In the three months ended June 30, 2024, the Company's product mix included sales of lower gross margin Level 3 direct current (DC) fast chargers, whereas in the comparable period, sales were compromised of higher gross margin Level 2 alternating current (AC) chargers.
Net and comprehensive loss for the three months ended June 30, 2024, was $1,610,484, or ($0.02) per basic and diluted share, as compared to net loss of $2,188,632, or ($0.03) per basic and diluted share in the prior year.
"During the first quarter of fiscal 2025, Hypercharge continued to make progress in key areas, most notably with our sales backlog, which increased to $7.7 million as of June 30, 2024," said David Bibby, President and CEO of Hypercharge. "This represents a $1.4 million (23%) increase from March 31, 2024, and a year-over-year increase of $5.7 million (270%), highlighting the strong demand for our EV solutions. Our growing backlog, which includes diverse projects from major customers including Mattamy and the Deveraux Group of Companies, is projected to be delivered over the next 3 to 18 months, supporting our expansion across Canada and into the U.S. We are building on this strong momentum and expect to further expand sales across strategic accounts and markets in the following quarters and convert our sales backlog.
"The Company also achieved a significant milestone by generating positive cash flow from operating activities for the first time, with $15,951 of net cash provided in the quarter, a $1.2 million improvement year-over-year. Operating expenses decreased by $552,000, or 23% year-over-year, driven by a 50% reduction in general and administrative expenses. These cost management efforts, combined with strategic investments in sales, marketing, and R&D, are positioning us well for the future.
"As we move forward, our focus is clear: expanding our network, enhancing our technology, controlling costs, and accelerating our path towards profitability. We're committed to customer excellence and sustained growth," concluded Bibby.
Summary of Key Financial Measures:
A summary of selected financial information for the three months ended June 30, 2024, and 2023, is as follows:
Three months ended | Three months ended | |||||
June 30, 2024 (unaudited) | June 30, 2023 (unaudited) | Change | ||||
Revenue | $898,249 | $501,024 | $397,225 | |||
Gross margin | 26.3% | 45.8% | (19.5%) | |||
Net and comprehensive loss | $(1,610,484) | $(2,188,632) | $578,148 | |||
Basic and diluted loss per share | $(0.02) | $(0.03) | $0.01 |
For more information, please refer to the Company's management's discussion and analysis, and the Company's unaudited condensed consolidated interim financial statements for the three months ended June 30, 2024. These documents are available on the Company's website at https://hypercharge.com/investors/, and under the Company's SEDAR+ profile at https://www.sedarplus.ca/.
About Hypercharge
Hypercharge Networks Corp. (TSXV: HC) (OTCQB: HCNWF) (FSE: PB7) is a leading provider of smart electric vehicle (EV) charging solutions for residential and commercial buildings, fleet operations, and other rapidly growing sectors. Driven by its mission to accelerate EV adoption and enable the shift towards a carbon neutral economy, Hypercharge is committed to offering seamless, simple solutions including industry-leading hardware, innovative and integrated software, and comprehensive services, backed by a robust network of public and private charging stations. Learn more: https://hypercharge.com/.
On behalf of the Company,
Hypercharge Networks Corp.
David Bibby, President & CEO
Contacts
Investor Relations:
Chris Tyson | Executive Vice President | MZ Group
This email address is being protected from spambots. You need JavaScript enabled to view it. | (949) 491-8235
Media Contact:
Kyle Kingsnorth | Head of Marketing | Hypercharge
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Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. More particularly and without limitation, this news release contains forward-looking statements regarding the Company's growth, commercial developments, delivery timeliness and revenue recognition. Forward-looking statements are often identified by terms such as "may", "could", "should", "anticipate", "will", "estimates", "believes", "intends", "expects" and similar expressions which are intended to identify forward-looking statements. Forward-looking statements are inherently uncertain, and the actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of the Company. Readers are cautioned that assumptions used in the preparation of any forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company. Readers are further cautioned not to place undue reliance on any forward-looking statements, as such information, although considered reasonable by management of the Company at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
The forward-looking statements contained in this news release are made as of the date of this news release, and are expressly qualified by the foregoing cautionary statement. Except as expressly required by securities law, the Company undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
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