Hypercharge Networks Corp. Announces Unaudited Financial Results for the Three Months and Nine Months Ended December 31, 2023
Vancouver, British Columbia–(Newsfile Corp. – February 14, 2024) – 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 nine months ended December 31, 2023. All dollar figures are in Canadian Dollars, unless otherwise stated.
Business and Pipeline Highlights (for the three months ended December 31, 2023):
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Signed sales orders for 276 Level 2 and DC fast charging ports in the three months ended December 31, 2023 for a total of over 2,800 charging ports sold since commencing business operations in June 2021.
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Sold and delivered 307 charging ports in the three months ended December 31, 2023 for a total of over 1,650 charging ports since commencing business operations in June 2021.
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Processed a sales order pursuant to a supply agreement dated December 20, 2023 between the Company and a Western Canadian energy infrastructure provider for up to 12 DC fast charging locations to be deployed in Western Canada, worth an estimated $2,000,000-$3,000,000 in revenue.
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Reduced general and administration expenditures, net of non-cash expenses, by $275,575 (24%) and $499,574 (37%) compared to the three months ended September 30, 2023 and June 30, 2023, respectively. As such, the Company strategically reallocated these resources with investment in sales and marketing initiatives and research and development efforts over the same period.
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Increased EV charging sites under management to 271, an increase of 167 (161%) year over year for the 12-month period ending December 31, 2023.
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Increased the number of drivers using the Hypercharge mobile app in the quarter by 2,370 (33%) to over 9,600 users.
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Launched three (3) new products: 1) Hypercharge Home, the Company’s residential Level 2 EV Charging Station for single-family homes; 2) Eevion™️ Integrated Charging, a cloud-based platform that integrates the Hypercharge EV charging network into any third-party app, platform, or system; and 3) the Hypercharge Carbon Credit Program, administering carbon credits for select commercial and multifamily properties across certain areas of North America.
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Received the Greater Vancouver Board of Trade Business Distinction Award for Business Growth under $5,000,000 in revenue.
Financial Highlights (for the nine months ended December 31, 2023):
For the nine months ended December 31, 2023, the Company’s revenue was $2,004,629, an increase of 28% compared to $1,562,987 in the nine months ended November 30, 2022. Gross margin increased to 35% from 20% in the comparable period. Operating expenses increased from $4,442,902 in the comparable period to $7,188,957 (an increase of 62%) for the nine months ended December 31, 2023. The increase in operating expenses of $2,746,055 during the nine months ended December 31, 2023, are attributable to the Company’s early stages of business in the comparable period and are comprised of $1,385,576 in non-cash expenses and non-recurring expenses, and $1,360,479 in increased direct and variable costs.
Financial Highlights (for the three months ended December 31, 2023):
For the three months ended December 31, 2023, the Company’s gross profit increased to $178,658 (4%) compared to $172,011 in the three months ended November 30, 2023. Gross margin increased to 31% compared to 15% in the comparative period, due primarily to increased sales volume of higher margin AC chargers and new SaaS subscriptions and recurring SaaS revenues. For the three months ended December 31, 2023, the Company’s revenue was $581,822, a decrease of 48% compared to $1,123,071 in the three months ended November 30, 2022. Operating expenses increased from $1,882,276 in the comparable period to $2,640,079 (an increase of 40%) for the three months ended December 31, 2023. Operating expenses are comprised of general and administrative expenses, sales and marketing expenses and research and development. The increased operating expenses of $757,803 during the three months ended December 31, 2023 are attributable to $687,239 in non-cash expenses and non-recurring expenses, and $70,564 in increased direct and variable costs.
“Reflecting on this quarter’s results, our focus remains on providing value-added EV charging services to our growing number of sites under management, controlling our operating expenses, and focusing on long-term growth,” said David Bibby, President and CEO of Hypercharge. “Despite current economic conditions leading to longer delivery cycles affecting revenue in the quarter, we are pleased with our strong margins and focused on building a growing backlog.”
Total assets as at December 31, 2023 were $7,384,703, (a 15% increase from $6,404,576 for the year ended March 31, 2023). As at December 31, 2023, the Company had cash and cash equivalents of $4,367,649.
Summary of Key Financial Measures:
A summary of selected financial information for the three months ended December 31, 2023, and the three months ended November 30, 2022, is as follows:
| Three months ended | Three months ended | ||||||
| December 31, 2023 | November 30, 20221 | ||||||
| Revenue | $ | 581,822 | $ | 1,123,071 | |||
| Gross margin | 31% | 15% | |||||
| Net and comprehensive loss | $ | (2,425,375 | ) | $ | (1,662,365 | ) | |
| Basic and diluted loss per share | $ | (0.04 | ) | $ | (0.03 | ) |
1As a result of the Company’s change in year-end, the comparative period reflects the three months ended November 30, 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 nine-months ended December 31, 2023 and November 30, 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 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 | Head of Marketing
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”, “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 regarding the Company’s growth, commercial developments, delivery timelines 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 NEO Exchange Inc. nor its Market Regulator (as that term is defined in policies of NEO Exchange Inc.) accepts responsibility for the adequacy or accuracy of this news release.
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