Burnaby, British Columbia – Legend Power Systems Inc. (TSX.V: LPS) (“Legend Power” or the “Company”), an electrical energy conservation company that manufactures and markets a patented device to help commercial and industrial customers achieve significant energy savings through voltage optimization, reports annual financial results for the year ended September 30, 2008. All dollar figures are reported in Canadian currency, unless otherwise stated.
Gerry Gill, Chairman and CEO of Legend Power commented, “2008 was a monumental year for Legend Power. We saw the culmination of many years of hard work, taking several critical projects from the concept stage to successful completion. As we celebrate our past successes, we are looking ahead to 2009 with a strong sense of commitment, confidence and optimism. We work to position ourselves for growth in 2009 in British Columbia and Ontario.”
Operational Highlights for 2008:
- Completed the acquisition and applications for registration for patents for the Electrical Harmonizer, which provides Legend Power the right to manufacture and distribute the technology throughout the world, with the exception of Japan
- Eliminated CAD $1 million otherwise payable for the manufacturing and distribution rights under an earlier agreement and removed Legend Power’s obligation to pay USD $100 million for exclusive U.S. distribution rights
- In conjunction with the acquisition of the patents, eliminated the requirement to issue 12.6 million shares (50% of the then outstanding company shares), to a party related to the vendor of the patents
- Completed development of the Automatic Voltage Regulator (AVR), conforming to the Electrical Harmonizer patent – Legend Power now holds the patents for the Electrical Harmonizer-AVR in nine countries and the intellectual property rights worldwide
- Completed reverse takeover of Texas Gas & Oil Inc., converted all share warrants to common shares of Legend Power Systems Inc. and listed on the TSX Venture Exchange
- Opened up new markets in Ontario with the sale and installation of eight Electrical Harmonizer-AVR units in three Canada Post facilities
- Qualified for higher incentive funding in British Columbia and Ontario, dramatically reducing the payback period for our customers – BC Hydro Power Smart Partner Program pays up to 60%of the capital costs and Ontario Power Authority’s Conservation and Demand Management program through Ontario’s Building Owners and Managers Association’spays up to 40%
- Secured $250,000 in grants from the Industrial Research Assistance Program (IRAP), a division of the National Research Council of Canada, allowing Legend Power to continue research and develop new leading edge technologies
- Secured financing agreement with Royal Bank of Canada (RBC) to provide (1) lease financing to qualified customers purchasing the Electrical Harmonizer-AVR with capital leases for up to 100% of the cost (net of rebates and grants) for terms from 24 to 60 months and (2) Legend Power with a $2 million operating line of credit and a $300,000 revolving line for the lease of capital assets
2008 Annual Financial Highlights, Audited:
The financial statements have been prepared in accordance with the Reverse Takeover accounting provisions within CICA Handbook Section 1581.
Revenues for the year ended September 30, 2008 (the “Year”) were $690,212 compared to $472,750 during the same period in 2007 (the “Prior Year”). The revenues in 2008 were primarily due to the installations in Ontario.
Expenses for the Year increased to $2,714,210 compared to $2,129,909 during the Prior Year, a significant portion of which related to the increase in RTO costs and research & development costs.
Net loss for the Year was $2,294,753 or $0.15 loss per share (basic and diluted) compared to a net loss of $1,594,608 or $0.12 loss per share (basic anddiluted) during the Prior Year.
Total expenses Income (loss) before other items Per share basic and diluted Net income (loss) Per share basic and diluted
|For the year ended September 30||2008||2007|
|Income (loss) before other items||$(2,382,795)||$(1,901,745)|
|Per share basic and diluted||$(0.16)||$(0.15)|
|Net income (loss)||$(2,294,753)||$(1,594,608)|
|Per share basic and diluted||$(0.15)||$(0.12)|
|Weighted average shares outstanding||15,295,038||12,985,673|
Cash and cash equivalents as at September 30, 2008, was $690,455 compared to $597,142 for the same period in 2007.
As at September 30, 2008, the Company had working capital of $180,415 compared to a deficit of $6,342,092 in the same period in 2007.
|As of September 30||2008||2007|
|Shareholders’ equity (deficiency)||$1,792,548||$(4,123,062)|
|Cash dividend paid||–||–|
Legend Power’s detailed financial information for the years ending September 20, 2008and 2007 along with accompanying Management’s Discussion and Analysis for the same period, and 2008 Annual Information Form are available on SEDAR (www.sedar.com).
About Legend Power Systems Inc.
Legend Power Systems Inc. is a leading electricalenergy conservation company that manufactures and markets a patented device to help commercial and industrial customers achieve significant energy savings through voltage optimization. Legend Power’s Electrical Harmonizer-AVR eliminates inefficiencies by delivering the optimal level of voltage a userneeds. Most customers receive higher voltage levels than required atcertain points of the grid from electrical utilities delivering higher levels to compensate for line loss across the feeder length. Higher than nominal voltage can affect the lifespan of electrical equipment and result in high monthly utility bills. By delivering the optimal voltage to the user,Legend Power’s Electrical Harmonizer-AVR helps companies reduce their electricity bills, maintenance costs and greenhouse gas emissions while increasing the life of electrical equipment. The technology also decreases capital and operating costs for electrical utilities.
For further information, please contact:
Ginny Morgan, Corporate Development Manager
Legend Power Systems Inc.
Martin Livingston, LivingCommunications Inc.
604 689 5559
Fred Cowan or Tracy Weslosky, Pro-Edge ConsultantsInc.
866 544 9622 or firstname.lastname@example.org
Forward Looking Information
This release and referenced materials contain forward looking statements, within the meaning of the “safe -harbour” provisions of the Private Securities Act of 1995, which are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause actual results to differ materially include: rapid technological and/or market changes in the industry including actual electrical billing rates; the adequate protection of the Company’s proprietary rights; and other factors described inthe Company’s regulatory filings. Although we believe the expectations reflected in our forward looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
LEGEND POWER SYSTEMS INC.
8618 Commerce Court
Burnaby, BC V5A 4N6
+1 604 420 1500