First quarter revenue of $630,383, up 111% year over year, with the working capital deficiency reduced by 61% from fiscal year end, and subsequent to quarter end established a new, larger manufacturing facility in Mississauga, Ontario

Mississauga, Ontario – TheNewswire - October 30, 2026 – Hybrid Power Solutions Inc. (CSE: HPSS) (OTC: HPSIF) (FSE: E092) ("Hybrid" or the "Company"), an emerging leader in the delivery of fuel-free clean power solutions, announces its financial results for the first quarter of fiscal 2027 (three months ended August 31, 2026). The Condensed Consolidated Interim Financial Statements, Management Discussion and Analysis and financial certifications have been filed on SEDAR+ and can be viewed on the Company’s investor website at https://investhps.com/. All amounts are in Canadian dollars unless otherwise stated.

First Quarter Fiscal 2027 Business Highlights

• Announced on June 18, 2026 the receipt of a purchase order valued at C$560,000 for dozens of Batt Pack Pro units, to be deployed in specialized mobile electronics systems for a European defense customer. 

• Announced on July 7, 2026 the receipt of a purchase order valued at C$370,000 from Kiikew Renewables Corp. for Spark 30 Hybrid, Spark 60 Hybrid and Spark 30 Cube units, together with associated battery packs, fast chargers, and shipping and delivery services, for use at a construction project site in British Columbia. 

• Announced on June 24, 2026 a distribution partner agreement with Fair D Canada, a Québec-based procurement and distribution specialist, to represent the Company’s portfolio of portable, fuel-free power solutions to government agencies, military, law enforcement and public safety organizations across Canada. 

• Announced on June 15, 2026 its attendance at Eurosatory 2026 in Paris, held June 15–19, 2026, with meetings facilitated through the Ontario Ministry of Economic Development, Job Creation and Trade and the Government of Canada’s Trade Commissioner Service. 

• Announced on August 28, 2026 that it would exhibit at APWA PWX 2026 in Houston, Texas (August 30 to September 2, 2026) and, as part of Canada’s official program administered by the Trade Commissioner Service, at MSPO 2026 in Kielce, Poland (September 8–11, 2026). 

• Completed a non-brokered private placement on June 10, 2026 under the listed issuer financing exemption, issuing 33,940,000 units at a price of $0.05 per unit for gross proceeds of $1,697,000, as announced on June 11, 2026. Each unit consists of one common share and one common share purchase warrant exercisable at $0.08 for 24 months. In the same release, the Company announced the issuance of 1,050,000 restricted share units to certain officers and senior management. 

• Reduced the convertible debenture balance to $350,000 through the conversion of $150,000 of principal into 3,000,000 common shares in June 2026, and received gross proceeds of $45,000 from the exercise of 900,000 warrants at $0.05 per share. 

• Announced on August 10, 2026 the grant of 100,000 stock options to a director, exercisable at $0.055 per share for five years, and 58,000 restricted share units to an employee, subject to the approval of the CSE. 

Business Highlights Subsequent to Quarter End

• Announced on September 2, 2026 the filing of a patent application for an AI-driven energy management system designed to optimize hybrid power deployments integrating battery storage, renewables, generators and grid connections. 

• Announced on September 9, 2026 that it has established a larger manufacturing facility in Mississauga, Ontario, intended to support increased production capacity, with planned dedicated lines for the Batt Pack product line and for Spark and Terra production. 

• Announced on September 28, 2026 the receipt of a purchase order for twenty (20) Batt Pack Pro units through its long-time distribution partner, Military Battery Systems Inc., intended for use by the United States Air Force. The Company stated that this is the 9th order received through Military Battery since August 2024. 

• Announced on October 22, 2026 a definitive, non-exclusive systems integration, distribution and co-branding agreement with Vortex Telecom Group Inc., operating as Vortex Technology Group, and a separate non-binding letter of intent dated October 19, 2026 setting out a framework for a proposed Canadian battery energy storage system (BESS) manufacturing and commercialization relationship. As stated in that release, no orders, sales volumes or revenue are assured under the agreement, and the letter of intent does not create a purchase order, backlog or revenue guarantee. 

• Announced on October 27, 2026 repeat orders from two existing customers: two Batt Pack Jupiter units for a large mining company, ordered through a distributor, and a 30 kWh Spark Hybrid unit for an equipment rental company that has ordered a total of 24 Spark Hybrid units to date. 

Facility transition: As announced on September 9, 2026, the Company has established a larger manufacturing facility in Mississauga, Ontario, which is intended to support increased production capacity. In connection with the move to the new facility, the Company temporarily paused certain operations. The Company's condensed consolidated interim financial statements for the three months ended August 31, 2026 disclose a new manufacturing facility lease commencing in November 2026.

First Quarter Fiscal 2027 Financial Highlights (three months ended August 31, 2026)

• Revenue of $630,383, up 111% from $298,926 in the first quarter of fiscal 2026, compared with $886,333 in the fourth quarter of fiscal 2026. Product revenue rose to $622,233 from $290,776 a year earlier, reflecting high-value units sold in the quarter, and revenue from customers in Canada increased to $456,882 from $36,369. 

• Gross profit of $62,852, a gross margin of 10.0%, compared with gross profit of $22,237 and a gross margin of 7.4% in the first quarter of fiscal 2026. The higher margin mainly reflects the high-value units sold, which allowed fixed production and operating costs to be spread over a larger revenue base. 

• Operating expenses of $806,985, up 21% from $668,159 in the first quarter of fiscal 2026, mainly from higher general and administrative expenses (up $68,364, including bad debt expense of $65,733) and salaries and benefits (up $53,093). 

• Net loss of $1,016,223 ($0.01 per share), compared with a net loss of $627,687 ($0.01 per share) in the first quarter of fiscal 2026, an increase of 62%. The increase mainly reflects interest and accretion of $157,550, a loss on revaluation of the derivative liability of $140,152 and a loss on sale of property and equipment of $87,926, partly offset by government assistance of $106,283. 

• Cash of $304,172 as at August 31, 2026, compared with $234,500 at May 31, 2026. The working capital deficiency decreased by $1,122,765 to $730,796 (May 31, 2026: $1,853,561). The shareholders’ deficiency decreased to $1,865,425 (May 31, 2026: $2,811,929), mainly reflecting share capital and reserves issued during the quarter, including the June 2026 financing. Inventory increased to $1,168,987 from $622,165 as the Company purchased materials for production. 

• Net cash used in operating activities was $1,719,641 (2025: $559,929), mainly reflecting working capital invested in inventory ($546,823), accounts receivable ($268,802) and prepaid expenses ($188,191). Net cash provided by financing activities was $1,786,970 (2025: $678,345), including net share issuance proceeds of $1,686,840 and net loan proceeds of $103,076. 

• Subsequent to quarter end, the Company closed a non-brokered private placement of 12,350,000 units at a price of $0.05 per unit for gross proceeds of $617,500 on September 18, 2026, and on September 23, 2026 repaid the remaining $350,000 balance of its convertible debentures in cash, fully settling the convertible debt. As of October 29, 2026, the Company had 155,327,950 common shares outstanding. 

Selected Financial Results (C$, except per share amounts)

	Q1 FY2027	Q1 FY2026
Revenue	630,383	298,926
Cost of sales	567,530	276,689
Gross profit	62,852	22,237
Operating expenses	806,985	668,159
Net loss	(1,016,223)	(627,687)
Net loss per share, basic and diluted	(0.01)	(0.01)

 

Francois Byrne, CEO and Director, states: “Our first quarter revenue more than doubled from the same quarter last year, and our gross margin improved as higher-value units spread our fixed production costs over a larger revenue base. We also strengthened our balance sheet, reducing our working capital deficiency by more than $1.1 million from fiscal year end with the support of our June financing. After the quarter, we completed a further financing and repaid our convertible debentures in full in cash.”

About Hybrid Power Solutions

Hybrid Power Solutions Inc. is a Canadian clean energy innovator listed on the Canadian Securities Exchange under the symbol "HPSS." The Company specializes in developing portable power systems that eliminate the need for fossil fuels in off-grid and remote applications. With a focus on environmental responsibility and technological innovation, Hybrid Power Solutions is committed to leading the clean energy transition.

On Behalf of the Company,

Francois Byrne, CEO and Director

For further information, inquiries, or media opportunities, please contact:

Hybrid Power Solutions
E: invest@hybridps.ca
T: 866-549-2743
www.investhps.com

Investor Relations
Dean Stuart
E: dean@boardmarker.net
T: 403-617-7609

Sophic Capital
Sean Peasgood
E: Sean@SophicCapital.com
T: 437-836-8862

Forward-Looking Statements

Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by terminology such as "will," "expects," "anticipates," "intends," "plans," or variations of such words and phrases, or by statements that certain actions, events, or results "will" occur. Forward-looking statements in this release include, without limitation, statements regarding the Company’s production, operations and financing activities, the intended use of products ordered, the Mississauga manufacturing facility and its intended production capacity, and the proposed BESS manufacturing and commercialization relationship with Vortex Technology Group. Forward-looking statements are based on management’s estimates as of the date such statements are made and are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such statements, including the risk factors described in the Company’s MD&A filed on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking statements except as required by applicable securities laws.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.