Hypercharge Networks Corp. Announces Unaudited Financial Results for the Three Months and Six Months Ended September 30, 2023

Rhea-AI Summary

Hypercharge Networks Corp. (NEO: HC) (OTCQB: HCNWF) (FSE: PB7) announces unaudited financial results for the three and six months ended September 30, 2023. Revenue increased by 148% to $921,783 for three months and 223% to $1,422,807 for six months. Operating expenses rose by 68% and 78% for three and six months, respectively. Total assets grew by 43% to $9,148,612. The company processed sales orders for 413 charging ports and activated ten new strategic partnerships.

Positive

• Impressive revenue growth of 148% and 223% for three and six months, respectively.
• Significant increase in total assets by 43% to $9,148,612.
• Successful activation of ten new strategic partnerships for market expansion.
• Reduction in general and administration expenditures by 22% and 18% compared to previous periods.
• Selection by Natural Resources Canada's Zero-Emission Vehicle Infrastructure Program for funding of $229,356.

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - November 14, 2023) - Hypercharge Networks Corp. (NEO: HC) (OTCQB: HCNWF) (FSE: PB7) (the "Company" or "Hypercharge"), a leading, smart electric vehicle (EV) charging solutions provider, is announcing the release of its unaudited financial results for the three months and six months ended September 30, 2023. All dollar figures are in Canadian Dollars, unless otherwise stated.

Financial Highlights (for the three months ended September 30, 2023):

For the three months ended September 30, 2023, the Company's revenue was $921,783, an increase of 148% compared to $371,081 in the three months ended August 31, 2022. Operating expenses increased from $1,262,329 in the comparable period to $2,122,982 (an increase of 68%) for the three months ended September 30, 2023. Operating expenses are comprised of general and administrative expenses, sales and marketing expenses and research and development. The increased operating expenses of $860,653 during the three months ended September 30, 2023 are attributable to $294,334 in non-recurring expenses, $192,661 in non-cash expenses and $373,658 in increased direct and variable costs.

Financial Highlights (for the six months ended September 30, 2023):

For the six months ended September 30, 2023, the Company's revenue was $1,422,807, an increase of 223% compared to $439,916 in the six months ended August 31, 2022. Operating expenses increased from $2,560,626 in the comparable period to $4,548,878 (an increase of 78%) for the six months ended September 30, 2023. The increase in operating expenses of $1,988,252 during the six months ended September 30, 2023, are attributable to $385,842 in non-recurring expenses, $383,679 in non-cash expenses and $1,218,631 in increased direct and variable costs.

Total assets as at September 30, 2023 were $9,148,612, (a 43% increase from $6,404,576 for the year ended March 31, 2023). As at September 30, 2023, the Company had cash and cash equivalents of $5,222,730.

"We are pleased to report the unaudited financial results for the three months and six months ended September 30, 2023," said David Bibby, President and CEO of Hypercharge. "With triple digit revenue growth percentages and a growing sales backlog in both comparable periods, we thank our growing customer base for their support as we continue on our growth journey."

Business and Pipeline Highlights (for the three months ended September 30, 2023):

• Processed sales orders for 413 charging ports in the three months ended September 30, 2023 and over 2,600 charging ports since commencing business operations in June 2021.

• Sold and delivered 280 charging ports in the three months ended September 30, 2023 and over 1,300 charging ports since commencing business operations in June 2021.

• Increased sales backlog by 265 charging ports. The Company expects phased delivery of these chargers beginning in 2024.

• Activated ten (10) new strategic partnerships assisting with installation of chargers, that facilitate entry into new markets. This increases the Company's total number of strategic partnerships to 54.

• Reduced general and administration expenditures by $400,420 (22%) and $325,478 (18%) compared to the three months ended June 30, 2023, and March 31, 2023, respectively. As such, the Company strategically reallocated these resources and doubled its investment in sales and marketing initiatives and research and development efforts over the same period.

• Selected by Natural Resources Canada's Zero-Emission Vehicle Infrastructure Program ("ZEVIP") to support the growth of EV charging infrastructure and further the adoption of electric vehicles in Ontario. The ZEVIP funding of $229,356 will subsidize the cost of 48 Level 2 EV chargers across 11 parking lots.

Summary of Key Financial Measures:

A summary of selected financial information for the three months ended September 30, 2023, and the three months ended August 31, 2022, is as follows:

		Three months ended			Three months ended
		September 30, 2023			August 31, 20221
Revenue	$	921,783		$	371,081
Gross Margin		32%			39%
Comprehensive loss	$	(1,798,692	)	$	(3,361,491	)
Basic and diluted loss per share	$	(0.03	)	$	(0.07	)

 

¹As a result of the Company's change in year-end, the comparative period reflects the three months ended August 31, 2022.

For more information, please refer to the Company's management's discussion & analysis and the Company's unaudited condensed consolidated interim financial statements for the three- and six-months ended September 30, 2023 and August 31, 2022. These documents are available on the Company's website at https://hypercharge.com/investors/, and under the Company's SEDAR profile at www.sedarplus.ca.

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About Hypercharge

Hypercharge Networks Corp. (NEO: HC) (OTCQB: HCNWF) (FSE: PB7) is a leading provider of smart electric vehicle (EV) charging solutions that offers turnkey technology to multi-unit 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 providing seamless, simple charging solutions by offering industry-leading equipment and 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

Investor Relations:
invest@hypercharge.com

Media Contact:
Kyle Kingsnorth | Senior Marketing Manager
kyle.kingsnorth@hypercharge.com

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. 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. More particularly and without limitation, this news release contains forward-looking statements concerning the Company's growth, commercial developments, delivery timeliness and revenue recognition. 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 NEO Exchange nor its Market Regulator (as that term is defined in policies of the NEO Exchange) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/187366

FAQ

What were Hypercharge Networks Corp.'s revenues for the three months ended September 30, 2023?

The revenue was $921,783, marking a 148% increase from the previous period.

What was the percentage increase in operating expenses for the six months ended September 30, 2023?

Operating expenses increased by 78% for the six months.

How many sales orders for charging ports did the company process for the three months ended September 30, 2023?

The company processed sales orders for 413 charging ports in the three months.

What strategic partnerships did Hypercharge Networks Corp. activate for market expansion?

The company activated ten new strategic partnerships to facilitate market entry.

What funding did the company receive from Natural Resources Canada's Zero-Emission Vehicle Infrastructure Program?

The company received funding of $229,356 from the ZEVIP program.