Vancouver, B.C., Canada – May 28, 2020 – Legend Power® Systems Inc. (TSX.V: LPS) (“Legend Power” or the “Company”), a global leader in onsite energy management technology, today reported its Q2 fiscal 2020 financial results for the six months ended March 31, 2020. A conference call to discuss the results is set for 4:15pm EST today (dial in details below). A complete set of Financial Statements and Management’s Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.

Financial Highlights for the three months ending March 31, 2020

• Revenue of $676k down 12% year-over-year from $769k reported in Q2 2019;
• Gross margin of 32% down from 54% in the quarter a year-ago, due to sales incentives offered in the quarter;
• Adjusted EBITDA loss of $1.5 million versus $1.3 million loss in Q2 2019;
• Net loss of $1.5 million versus the $1.4 million loss in Q2 2019; and
• Cash of $2.6 million, no debt, and $4.9 million of working capital at March 31, 2020.

Working Capital Update to May 28, 2020

• The Company received payment from customers for in excess of 50% of receivables at March 31, 2020;
• During the month of May 2020, the Company received U.S. and Canadian COVID-19 related subsidies totaling approximately $250k, all of which are anticipated to be forgiven;
• All sales during quarter were from existing, paid-for inventory;
• In response to COVID-19, on April 1, 2020 management implemented a pro-active cost reduction and continuity plan. It is anticipated that the cost cutting measures will reduce overall expenditures by approximately $1 million during the period from April 1, 2020 to September 30, 2020. These cost-containment efforts can be extended, if required, and pared back or removed as the economy gets back on track;
• Current cash position of $3.3 million up $700k from March 31, 2020; receipt of additional government subsidies anticipated.

Objectives through fiscal year-end (September 30)

• Establish presence with large multi-family operator in a new major metropolitan centre;
• Sign at least one deal with an Energy Services Company (ESCO) and establish a relationship with a second;
• Leverage all COVID-19 related government small business programs;
• Ship first SmartGATE 2.0 platform to customer in Q4/20;
• Enter industrial vertical and sign first SmartGATE Insights led transaction with significant customer.

Management Commentary
“Like most industries, the last few weeks of the second quarter of 2020 saw a significant decline of sales activity across all of our markets as school boards and commercial property owners worked to understand COVID-19 prior to temporarily closing their properties,” said Legend Power Systems CEO Randy Buchamer. “In response, we took quick action in March to implement cost reduction measures of approximately $1 million for our third and fourth quarters. This together with receipt of various government subsidies and a significant inflow of funds from customer receivables has significantly shored up or working capital. I am very pleased to report that subsequent to quarter end we are seeing some sectors of our business reopen and our sales activities have re-started.”

Financial summary for the three and six months ended March 31, 2020 and 2019

	Three months ended March 31,			Six months ended March 31,
(Cdn$, unless noted otherwise)	2020	2019	Change	2020	2019	Change
Revenue	676,359	769,443	(12)%	1,679,688	1,172,843	43%
Cost of sales	459,794	355,329	29%	1,249,023	432,161	189%
Gross margin1	216,565	414,114	(48)%	430,665	740,682	(42)%
Gross margin %1	32%	54%	(22)%	26%	63%	(37)%
Operating expenses	(1,736,091)	(1,845,557)	(6)%	(3,356,522)	(3,330,400)	1%
Adjusted EBITDA2	(1,467,805)	(1,285,984)	(14)%	(2,792,966)	(2,334,336)	(20)%
Net loss	(1,516,627)	(1,402,451)	8%	(2,998,825)	(2,493,783)	20%

¹ Gross margin is based on a blend of both equipment and installation revenue.
² Adjusted EBITDA is a non-IFRS financial measure. See EBDITA Reconciliation for details.

Revenue for the second quarter of 2020 was $676,359, a 12% decrease from $769,443 in the same quarter of 2019. Revenue for the six months ended March 31, 2020 was $1,679,688 a 43% increase from $1,172,843 in the same period 2019.

Gross margin in the second quarter of fiscal 2020 was 32%, a decrease from 54% in second quarter of fiscal 2019. Gross margin in the first half of fiscal 2020 was 26%, a decrease from 63% over the first half of 2019. The lower gross margins experienced in the first half of 2020 was due primarily to:

1. two projects completed for an early adopter, marquee, New York City customer during Q1 of 2020. Early projects in new regions typically involve higher overall install costs, in particular electrical contractor costs due to a significant learning curve in understanding the nuances of installing a new and unfamiliar technology; and
2. a disproportionate amount of total revenue derived from installation services during the six-month period, which has historically yielded lower gross margins. The fiscal 2020 Q1 negative effect on gross margin was offset by stronger margins in fiscal Q2 of 2020 which were the result of a larger relative amount of high margin equipment sales.

Adjusted EBITDA for the second quarter of fiscal 2020 was negative $1,467,805, compared with negative $1,285,984 in the second quarter of fiscal 2019. Adjusted EBITDA for the first half of fiscal 2020 decreased to negative $2,792,966, from negative $2,334,336 in the first half of fiscal 2019.

Net loss for the second quarter of fiscal 2020 was $1,516,627, compared with a net loss of $1,402,451 in the second quarter of fiscal 2019. Net loss for the first six months of 2020 was $2,998,825, an increase of 20% from a loss of $2,493,783 in the same period of 2019. Lower gross margins were the prime contributor to the increase in net loss compared with the same six-month period in fiscal 2019.

The Company’s operating expenses for the second quarter of 2020 were $1,736,091, down from $1,845,557 in the same quarter of 2019 and for the first six months of fiscal 2020 were $3,356,522 compared with $3,330,400 in the same six months of 2019.

CONFERENCE CALL DETAILS:
The Company has scheduled a conference call to provide a business update and discuss its Q2 2020 financial results for Thursday, May 28, 2020 at 4:15PM ET (1:15PM PT). The call will be hosted by Randy Buchamer, President & Chief Executive Officer and Steve Vanry, Chief Financial Officer.

DATE: Thursday, May 28, 2020
TIME: 4:15PM ET (1:15PM PT)
DIAL‐IN NUMBER: North America Toll Free Dial‐in Number (877) 201‐0168
International Dial‐in Number – (647) 788‐4901
CONFERENCE ID: 1575407
REPLAY: Available at: www.legendpower.com

About Legend Power® Systems Inc.
Legend Power® Systems Inc. (www.legendpower.com) is a global leader in onsite energy management technology. We help buildings overcome grid volatility challenges common to utilities around the world. Legend’s industry-proven SmartGATE enables dynamic power management of an entire building. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend’s unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.

For further information, please contact:

Steve Vanry, CFO
+ 1 604 671 9522
svanry@legendpower.com

Sean Peasgood, Investor Relations
+ 1 647 503 1054
sean@sophiccapital.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
This Press Release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company’s quarterly and annual Management’s Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.

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Vancouver, B.C., Canada – May 22, 2020 ‐ Legend Power® Systems Inc. (TSX.V: LPS) (“Legend Power” or the “Company”), a global leader in onsite energy management technology, today announced it will release its Q2 2020 financial results for the six months ended March 31, 2020, on Thursday, May 28, 2020 after the close. The Company has scheduled a conference call to provide a business update and discuss its Q2 2020 financial results for Thursday, May 28, 2020 at 4:15PM ET (1:15PM PT). The call will be hosted by Randy Buchamer, President & Chief Executive Officer and Steve Vanry, Chief Financial Officer.

CONFERENCE CALL DETAILS:

DATE: Thursday, May 28, 2020
TIME: 4:15PM ET (1:15PM PT)
DIAL-IN NUMBER: Toll Free Dial-in Number (877) 201-0168
International Dial-in Number (647) 788-4901
CONFERENCE ID: 1575407
REPLAY: Available at: www.legendpower.com

About Legend Power® Systems Inc.
Legend Power® Systems Inc. (www.legendpower.com) is a global leader in onsite energy management technology. We help buildings overcome grid volatility challenges common to utilities around the world. Legend’s industry-proven SmartGATE enables dynamic power management of an entire building. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend’s unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.

For further information, please contact:

Steve Vanry, CFO
+ 1 604 671 9522
svanry@legendpower.com

Sean Peasgood, Investor Relations
+ 1 647 503 1054
sean@sophiccapital.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This Press Release may contain statements which constitute “forward‐looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward‐looking statements. Investors are cautioned that any such forward‐looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward‐looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company’s quarterly and annual Management’s Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results to not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward‐looking statements other than as may be required by applicable law.

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Vancouver, B.C., Canada – Legend Power® Systems (TSX-V: LPS), a global leader in onsite energy management technology, today provided a business update and discussed recent steps taken to ensure a seamless transition to the anticipated normalization of business and economic activity.

We are pleased to report that in-process sales cycles have continued and that the uptake of the SmartGATE Insights building power analysis solution is demonstrating customer confidence in this additional product. External highlights include:

• Installation of SmartGATE with a leading New York multi-residential property group.
• In Boston (a new market), an international insurance company is installing four SmartGATE Insights units to assess electrical supply impacts and prioritize potential corrective next steps.
• Installation of SmartGATE units in four schools in the Greater Ottawa Area.
• In Toronto, a sustainable building leader that owns and manages over 50 million square feet of premier real estate in Canada is moving forward with installation of a SmartGATE unit with Insights in one multi-residential building, and a stand-alone SmartGATE Insights at another multi-residential building.

Given that Legend provides a product that improves an essential service like electricity, the Company will continue to be flexible and creative to do whatever it can to assist our customers and the occupants of their buildings through the current environment.

“Legend took decisive action early, prioritizing the wellbeing of our employees, our customers, our partners, and our communities,” said CEO Randy Buchamer. “We’ve continued monitoring and assessing the impact of COVID-19 and are pleased to see that following their initial scramble to get employees set up for work-from-home initiatives, customers remain engaged in the value that both SmartGATE Insights and SmartGATE can bring to their buildings. And while we are not yet back to normal, I am pleased with the feedback and activity we are seeing in the pipeline.”

To ensure Legend continues to execute to plan, we have taken several steps to manage prudently through the current environment. These include:

• Quickly and seamlessly extending existing remote-working capabilities for staff.
• Scheduling bi-weekly all-team video conferences to keep our close-knit team in touch.
• Implementing a cost-savings plan trimming scheduled discretionary expenditures by approximately $1 million for the coming one to two quarters as required.
• Identifying and applying for both Canadian and US emergency funding programs for which we qualify.
• Executing inventory-management and purchasing process improvements.
• Developing innovative payment mechanisms to enable purchases by prospects and follow-on purchases by existing customers.
• Product development on the 3rd generation SmartGATE platform remains on schedule.

About Legend Power® Systems Inc.
Legend Power® Systems Inc. (www.legendpower.com) is a global leader in onsite energy management technology. We help buildings overcome grid volatility challenges common to utilities around the world. Legend’s industry-proven SmartGATE enables dynamic power management of an entire building. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment. Legend’s unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.

For further information, please contact:

Steve Vanry, CFO
+ 1 604 671 9522
svanry@legendpower.com

Sean Peasgood, Investor Relations
+ 1 647 503 1054
sean@sophiccapital.com

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
This Press Release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company’s quarterly and annual Management’s Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements other than as may be required by applicable law.

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