Hybrid Power Solutions Inc. Reports Significant Revenue Growth and Improved Financial Position in Q1 Fiscal 2027

Mississauga, Ontario — October 30, 2026 — Leads & Copy — Hybrid Power Solutions Inc. (CSE: HPSS) (OTC: HPSIF) (FSE: E092), a company focused on fuel-free clean power solutions, announced its financial results for the first quarter of fiscal 2027, reporting an 111% increase in revenue year over year. The company's working capital deficiency was reduced by 61% from the fiscal year end, and a new, larger manufacturing facility was established in Mississauga, Ontario, subsequent to the quarter's end.

First quarter revenue reached $630,383, a significant rise from $298,926 in the same period last fiscal year. Product revenue increased to $622,233 from $290,776 a year prior, driven by sales of high-value units. Revenue from Canadian customers saw a substantial increase, growing to $456,882 from $36,369.

Gross profit for the quarter was $62,852, resulting in a gross margin of 10.0%, an improvement from the 7.4% margin reported in the first quarter of fiscal 2026. This higher margin is attributed to the sale of high-value units, which helped distribute fixed production and operating costs over a larger revenue base.

Operating expenses increased by 21% to $806,985, compared to $668,159 in the prior year's first quarter. This rise was primarily due to increased general and administrative expenses, including a $65,733 bad debt expense, and higher salaries and benefits.

The company reported a net loss of $1,016,223, or $0.01 per share, an increase of 62% from the $627,687 net loss in the first quarter of fiscal 2026. The increased net loss was mainly influenced by $157,550 in interest and accretion, a $140,152 loss on revaluation of the derivative liability, and an $87,926 loss on the sale of property and equipment. These were partially offset by $106,283 in government assistance.

As of August 31, 2026, the company held $304,172 in cash, up from $234,500 at the end of May 2026. The working capital deficiency decreased to $730,796 from $1,853,561 at the fiscal year end. The shareholders' deficiency also decreased to $1,865,425 from $2,811,929, largely due to share capital and reserves issued during the quarter, including the June financing. Inventory levels increased to $1,168,987 from $622,165 as the company acquired materials for production.

Net cash used in operating activities was $1,719,641, significantly higher than the $559,929 used in the same period last year. This increase was primarily due to investments in inventory, accounts receivable, and prepaid expenses. Net cash provided by financing activities was $1,786,970, bolstered by net share issuance proceeds of $1,686,840.

Business highlights during the first quarter included a C$560,000 purchase order for Batt Pack Pro units for a European defense customer, and a C$370,000 order from Kiikew Renewables Corp. for various Spark units and associated battery packs. Hybrid Power Solutions also announced a distribution partner agreement with Fair D Canada to represent its portable, fuel-free power solutions to Canadian government, military, and public safety organizations.

The company also announced its attendance at Eurosatory 2026 in Paris, facilitated by the Ontario Ministry of Economic Development, Job Creation and Trade and the Government of Canada’s Trade Commissioner Service. Subsequent to the quarter, Hybrid Power Solutions announced the filing of a patent application for an AI-driven energy management system and the establishment of its larger manufacturing facility in Mississauga, intended to support increased production capacity. Other post-quarter announcements included a purchase order for twenty Batt Pack Pro units for the United States Air Force, a systems integration agreement with Vortex Telecom Group Inc., and repeat orders from existing customers.

Subsequent to the quarter end, Hybrid Power Solutions completed a non-brokered private placement raising $617,500 and repaid the remaining $350,000 balance of its convertible debentures in cash. As of October 29, 2026, the company had 155,327,950 common shares outstanding.

"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," stated Francois Byrne, CEO and Director. "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."

Source: Hybrid Power Solutions Inc.