Vancouver, British Columbia--(Newsfile Corp. - November 26, 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 and six months ended September 30, 2024, and related management discussion and analysis. All dollar figures are in Canadian dollars, unless otherwise stated.
"The second quarter of fiscal 2025 represents a pivotal period for Hypercharge, marked by record-breaking achievements across the board. We delivered our highest quarterly revenue and gross profit in the Company's history, and lowest operating expenses and loss to date.
We are energized by this performance to continue building momentum by fulfilling our robust backlog, expanding across North America, and advancing our technology innovation-all while maintaining disciplined cost management.
Hypercharge is confidently accelerating our journey toward profitability, and I believe we are uniquely positioned to achieve exceptional operational success in the coming quarters."
- David Bibby, President and CEO of Hypercharge
Business and Pipeline Highlights (for the three months ended September 30, 2024):
Financial Highlights (for the three months ended September 30, 2024):
The Company recognized quarterly revenue of $1,378,443, a year-over-year increase of $456,660 (50%) and the highest quarterly revenue in its history. The Company also grew its sales backlog by $966,206 (12%) compared to the quarter ending June 30, 2024.
Operating expenses were $1,571,601 for the three months ended September 30, 2024, a 26% decrease from the prior year period. The decrease in operating expenses was due to a $407,497 (28%) reduction in general and administrative expenses.
Gross margin decreased to 31% from 32% over the comparable period as a result of the Company's product mix. In the three months ended September 30, 2024, the Company's gross margin on EV charging equipment decreased to 30%, compared to 34% in the prior year comparable period. Gross margin on the Company's installation revenue, SaaS revenue, and other revenue increased significantly to 42% compared to 19% in the prior year comparable period.
Net and comprehensive loss for the three months ended September 30, 2024, decreased 39% to $1,129,514, or ($0.016) per basic and diluted share, as compared to a net loss of $1,798,692, or ($0.026) per basic and diluted share during the three months ended September 30, 2023.
Financial Highlights (for the six months ended September 30, 2024):
The Company recognized six months revenue of $2,276,692, a year-over-year increase of $853,885 (60%) compared to the six months ending September 30, 2024.
Operating expenses were $3,445,518 for the six months ended September 30, 2024, a 24% decrease from the prior year period. The decrease in operating expenses was due to a $1,067,265 (32%) reduction in general and administrative expenses.
Gross margin decreased to 29% from 37% over the comparable period as a result of the Company's product mix. In the six months ended September 30, 2024, the Company's gross margin on EV charging equipment decreased to 30%, compared to 34% in the prior year comparable period. Gross margin on the Company's product mix included sales of lower gross margin Level 3 direct current (DC) fast chargers, whereas in the comparative period, sales were compromised of higher gross margin Level 2 alternating current (AC) chargers.
Net and comprehensive loss for the six months ended September 30, 2024, decreased 46% to $2,739,998, or ($0.04) per basic and diluted share, as compared to net loss of $3,987,327, or ($0.06) per basic and diluted share during the six months ended September 30, 2023.
Summary of Key Financial Measures:
A summary of selected financial information for the three months ended September 30, 2024, and 2023, is as follows:
Three months ended | Three months ended | ||
September 30, 2024 |
September 30, 2023 |
Change | |
Revenue | $1,378,443 | $921,783 | $456,660 |
Gross margin | 31.3% | 31.6% | (0.3%) |
Net and comprehensive loss | $(1,129,514) | $(1,798,692) | $669,178 |
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 September 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
invest@hypercharge.com | (949) 491-8235
Media Contact:
Kyle Kingsnorth | Head of Marketing | Hypercharge
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. More particularly and without limitation, this news release contains forward-looking statements regarding growth, commercial developments, delivery timelines 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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