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EV Charging Stock News: Hypercharge (TSXV: HC) (OTCQB: HCNWF) Announces Fourth Quarter and FY2024 Financial Results

FY2024 Revenue Grew 28% to a Record $3.1 Million
Sold 1,138 Charging Ports and Delivered 1,210 Charging Ports
Listed Common Shares on the TSX Venture Exchange

 

Vancouver, British Columbia - July 2, 2024 (Newsfile Corp.) (Investorideas.com Newswire) 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 audited financial results for the fourth quarter and fiscal year ended March 31, 2024, and related management discussion and analysis. All dollar figures are in Canadian Dollars, unless otherwise stated.

"Fiscal 2024 was a year of solid growth and momentum building for Hypercharge, underscored by record revenues and driven by improved sales execution, key product introductions, and increased technology innovation," said David Bibby, President and CEO of Hypercharge.

"For the fiscal year, revenue increased to $3.1 million, driven by strong execution in our multi-unit residential and direct current (DC) fast charging verticals, and in the fiscal fourth quarter, revenue increased to a record $1.1 million. Our gross margin for the year improved to 32%, up 760 basis points from the previous year, bolstered by a 375% increase in SaaS subscriptions and recurring revenues. The Company's performance has been resilient, even with the EV industry encountering hurdles in calendar Q4 and Q1, including higher borrowing costs, and other economic challenges."

"The growing momentum in the business is further demonstrated by substantial growth in our sales backlog, reaching $6.3 million as of March 31, 2024, which we expect to deliver over the coming quarters as we expand our presence across Canada and into the U.S."

"Looking ahead, our strategic priorities include growing our network of charging stations across Canada and the U.S., ramping up professional services to expand our revenue mix, and continued investment in industry specific technology innovation to improve customer and site owner experience. We have also implemented measures to reduce recurring operating expenses by 20%, which we anticipate will positively impact the upcoming fiscal year. With strong orders, a growing backlog, and solid margins, we are gaining traction by intensifying our efforts to capture market share, and drive revenue growth," concluded Bibby.

FY2024 Business & Pipeline Highlights

Financial Highlights (for the three months ended March 31, 2024):

For the three months ended March 31, 2024, the Company recognized revenue of $1.1 million, an increase of 42% compared to $0.8 million in the prior year. The increase was primarily due to an increase in EV charging equipment revenue with 302 EV charging ports delivered during the quarter, representing an increase of 26% over the comparable period.

Gross profit increased to $0.3 million for the three months ended March 31, 2024, an increase of 62% from $0.2 million for the three months ended March 31, 2023, due primarily to increased sales volume of EV charging equipment, and increased contribution from other revenues and growth in new SaaS subscriptions and recurring SaaS revenues. For the three months ended March 31, 2024, gross margin increased to 27% from 23% in the comparable period.

Operating expenses were $1.9 million for the three months ended March 31, 2024, an 11% decrease from $2.2 million in the prior year period. The decrease in operating expenses was due to a 32% reduction in general and administrative expenses, and non-cash expenses, partially offset by increased investments in sales and marketing and research and development. The Company's operating expenses in the quarter decreased by $720,957 (27%) from the three months ended December 31, 2023.

Net and comprehensive loss for the three months ended March 31, 2024 was $1.6 million, or ($0.02) per basic and diluted share, as compared to net loss of $2.0 million, or ($0.04) per basic and diluted share in the prior year.

Financial Highlights (for the fiscal year ended March 31, 2024):

For the fiscal year ended March 31, 2024, the Company recognized revenue of $3.1 million, an increase of 28% compared to $2.4 million in the prior year. The increase was primarily due to an increase in EV charging equipment revenue with 1,210 EV charging ports delivered during the year, representing an increase of 493 (70%) over the comparable year ago period. For the fiscal year ended March 31, 2024, SaaS revenue of $0.1 million increased 375% over the prior year.

Gross profit increased to $1.0 million for the year ended March 31, 2024, an increase of 67% from $0.6 million in fiscal 2023, due primarily to increased sales volume of AC chargers, higher gross profit dollars earned on sales of DC fast chargers, and from increased gross profits associated with scaling up of recurring SaaS and other revenues compared to the prior year comparative period. Fiscal year 2024 gross margin increased to 32% from 24% in the comparable year ago period as a result of product mix and an increase in higher margin SaaS and other revenues.

Operating expenses were $9.1 million for fiscal 2024, a 29% increase from $7.1 million during the twelve months ended March 31, 2023. The increased operating expenses were attributable primarily to the Company's early stages of business in the comparable period.

Net and comprehensive loss for fiscal 2024 was $8.0 million, or ($0.12) per basic and diluted share, as compared to net loss of $9.9 million, or ($0.18) per basic and diluted share in the prior year.

Total assets as at March 31, 2024 were $6.0 million, as compared to $6.4 million for the year ended March 31, 2023. As at March 31, 2024, the Company had cash and cash equivalents of $2.5 million, compared to $2.7 million at March 31, 2023. The Company's working capital was $3.3 million as at March 31, 2024, compared to $4.3 million at March 31, 2023.

For more information, please refer to the Company's management's discussion and analysis, the Company's annual information form, and the Company's audited consolidated financial statements for the three-month periods and years-ended March 31, 2024 and March 31, 2023. 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.

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 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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