Legend Power Initiates First Install of NextGen SmartGATE Platform and Maintains Strong Working Capital to Secure Inventory to Meet Demand
VANCOUVER, BC / ACCESSWIRE / December 9, 2021 / Legend Power Systems® (TSXV:LPS) and (OTCQB:LPSIF), a global leader in commercial electrical system solutions, today provided a general corporate update following the Company's recent participation at the U.S. National ESCO Conference. The Company is in active discussions with several potential customers and partners since the show, the first Gen3 systems have shipped, the Company has $10 million of working capital and the supply chain issues the Company was facing have improved.
U.S. National ESCO Conference Generating Positive Feedback
On November 9-12, 2021, Legend Power participated in the National Association of Energy Service Companies (NAESCO) annual ESCO Conference R3 - Renovate, Retrofit and Reduce, held in Austin Texas. The Company had 41 one-on-one meetings at the conference and is following up with 21 ESCOs and partners that are interested in the SmartGATE solution for their clients. While these discussions are at various levels, the engagement, initial feedback and follow-up conversations about the platform is encouraging. The Company will update investors if and when these discussions convert into meaningful business for Legend Power.
"We had several potential partners, including many of their CEOs, comment that they have been waiting for a provider to address power quality issues affecting their commercial properties and that Legend's SmartGATE platform is the right way to do it", says Mike Cioce, Vice President of Sales and Marketing for Legend Power. "The sales team is busy following up post the conference and our confidence in the platform and future demand is higher than ever."
Mark Petersen, VP of Engineering for Legend Power Systems recently conducted an Active Power Management webinar for the NAESCO organization. The webinar covered significant trends and opportunities for the ESCO industry and was very well attended with over 30 organizations seeking to learn how the SmartGATE platform can add value and revenue to their performance contracting efforts. This event has resulted in multiple new organizations seeking to partner with Legend Power.
First Gen3 Units Have Shipped
Legend Power is pleased to announce that the first Gen3 SmartGATE platforms shipped in November 2021. These initial units are from several larger orders for new and existing customers in the multifamily and government markets which collectively are to be installed over the next few months.
Supply Chain Issues are Improving
The Company is pleased to announce that after diligently working with new and existing suppliers, its supply chain issues have improved. Legend's transition to fulfilling customer orders for the new SmartGATE Platform is being managed to balance customer scheduling expectations with the amount of working capital committed to investing in inventory. During November 2021, the Company secured sufficient parts to complete another 28 units of the Gen3 SmartGATE platform with most of these units now completed and in testing. While supply chains around the world are still a concern for many companies, Legend has significantly reduced its risk and will continue to work to secure supply to be able to deliver on anticipated growing demand.
The Company is actively expanding its market focus with channel sales, Federal market, and geographic expansion. Legend Power is participating in the US Federal GSA Green Proving Ground RFI program. This program is designed to accelerate market acceptance of innovative building technologies focused in GHG reduction, electrification and decarbonization efforts. This program is similar to the New York City IDEA program, where Legend Power was chosen to demonstrate SmartGATE's capabilities in a multi-month, real-world installation in a NY State school. The demonstration will commence in early 2022, with results expected within 120 days of installation.
LPS has also been chosen as one of about 60 companies to participate in the Southern California Utilities Energy Saving Assistance program RFP. This program includes all of the Investor-Owned Utilities (IOUs) for southern California including Pacific Gas and Electric (PG&E), San Diego Gas and Electric Company (SDG&E) and Southern California Gas Company (SoCalGas).
The Legend Power marketing team also plans to launch its first partner portal during the first quarter of calendar 2022. This interactive online tool will drive engagement for partner sales and installation partners across the entire ecosystem. This will include training, marketing support, sales support, technical support and lead registration for the select partners chosen for the Legend Channel Sales Program.
Working Capital Remains Strong at $10 Million
The Company continues to have a strong balance sheet with working capital of approximately $10 million, giving the Company ample room to further secure supply for additional orders.
"I am extremely excited about the follow-up and interest following the NAESCO Conference last month", said Randy Buchamer, CEO of Legend Power. "The first installations of our latest SmartGATE Platform are a significant milestone and key enabler for Legend's future success. With a stronger energy savings capability, enhanced features sets, remote monitoring and ability to host commercial building power technologies of tomorrow, we are more confident than ever in SmartGATE's unrivaled value proposition.
Gen3 SmartGATE Offers Significant Upgrade and Value to Customers
Legend's new SmartGATE platform is designed to be the hub that hosts the commercial building energy requirements today and in the future. Key features include:
- Lowering energy usage and costs for the building;
- Improving energy quality and therefore preventing damaging events like low voltage or phase imbalances;
- 24/7 real-time monitoring and improvement of the entire electrical environment in a building; and
- Connected IoT device that allows for remote software and new feature upgrades, firmware upgrades, C-suite power impact reports and service reminders.
Electrical performance issues often impact key areas of commercial real estate metrics, including occupant safety and satisfaction as well as financial performance and ESG outcomes. This waste can also lead to higher operating costs, higher GHG emissions, lower net operating income, and other potential financial risks to the building owner, including adverse tenant experiences.
Legend Power is Addressing a $50 Billion Dollar Market
Given initial testing and feedback from the Company's over 300 installations, management believes that SmartGATE can be a key component of most large building's electrical infrastructure. With governments, corporations and building owners all looking to reduce their energy consumption, SmartGATE offers a tool that not only reduces energy but also improves the functioning of the systems inside a building and lowers operating costs.
Legend Power estimates that the total addressable market for SmartGATE is over one million buildings or $50 billion in North America. The new US Federal Government infrastructure plan alone, represents a $1.2 billion opportunity for SmartGATE.
SmartGATE is the only whole building Active Power Management Platform that address six major aspects of the quality of power, focused on increasing efficiency, and lifetime and reliability of critical buildings systems. The Company is seeing validation from ESCOs and government programs as well as repeat customers who have installed SmartGATE and are analyzing the rest of their buildings for additional systems.
For further information, please contact:
Steve Vanry, CFO
+ 1 604 671 9522
Sean Peasgood, Investor Relations
+ 1 647 503 1054
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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.
SOURCE: Legend Power Systems Inc.
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