How are energy investors positioned?
Legend Power Systems reported its financial results for the third quarter of 2025, showing a significant drop in revenue and gross margin compared to the previous year. Revenue was $385,000, down from $1,000,000 in the same period last year, and gross margin decreased from 50% to 24%. Despite these challenges, the company is optimistic about future growth, driven by its SmartGate solution and market opportunities in power quality improvement. According to InvestingPro data, the company’s trailing twelve-month revenue stands at $1.63 million, with a notable revenue growth of 211.7% compared to the previous period.
Key Takeaways
- Revenue fell sharply to $385,000 from $1,000,000 in Q3 2024.
- Gross margin decreased to 24% from 50% a year ago.
- The company is focused on cost reduction and expanding its SmartGate installations.
- Significant market opportunities identified in commercial real estate and government sectors.
Company Performance
Legend Power Systems experienced a challenging third quarter, with a marked decline in revenue and gross margin compared to the previous year. The company attributes this decline to market conditions and is taking steps to improve its financial performance by reducing costs and enhancing its product offerings. Despite these setbacks, Legend Power Systems remains committed to expanding its market presence, particularly in the United States, where power quality issues present significant opportunities.
Financial Highlights
- Revenue: $385,000, down from $1,000,000 in Q3 2024
- Gross Margin: 24%, down from 50% in the previous year
- Cash Position: $215,000
- Working Capital: $156,000
Outlook & Guidance
The company is optimistic about its future, expecting significant growth in government and commercial sectors. Legend Power Systems is pursuing a Multiple Award Schedule (MAS) contract and anticipates validation from the GSA Technology Proving Grounds. The company aims to expand its market reach through strategic partnerships with Energy Service Companies (ESCOs) and capitalize on the growing demand for power quality solutions.
Executive Commentary
Mike Sciosi, VP of Sales and Marketing, emphasized the growing recognition of SmartGate, stating, "SmartGate is still under known, but it’s no longer unproven." CEO Randy Buckimer expressed confidence in the company’s future, noting, "We believe we’re poised to redefine the future of power management."
Risks and Challenges
- Declining revenue and gross margin pose significant challenges.
- Supply chain issues could impact cost reduction efforts.
- Market saturation and competition in the power management sector.
- Economic uncertainties affecting commercial real estate investment.
Q&A
During the earnings call, analysts inquired about Legend Power Systems’ potential for US manufacturing and the current tariff situation. The company’s leadership clarified its deposit and backlog processes and highlighted strategic partnerships and pipeline growth as key areas of focus moving forward.
Full transcript - Legend Power Systems Inc (LPS) Q3 2025:
Randy Buckimer, CEO, Legend Power Systems: Great. Good morning. Thanks, Mike. Welcome to Legend Power Systems fiscal twenty twenty 05/2003 investor call. I’m Randy Buckimer, Legend’s CEO.
We’re pleased to have you join us today to discuss our corporate progress and financial results for the 2025, which were the three months ended 06/30/2025. Please note that certain statements in this call may be forward looking in nature. These include statements involving known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in our forward looking statements. For more information about Legend Power’s forward looking statements and risk factors, please see our management discussion and analysis, which was filed on SEDAR yesterday under the company profile at sedar+.com sorry, dot c a. I’m joined by Florence Tan, our CFO, and Mike Sciosi, VP sales and marketing, and Paul Moffitt is on holidays during this call.
Florence will provide a financial overview of the quarter. Mike will update you on the strong Gen three solution market performance, customer acceptance, and the growing sales funnel. And the sales team has secured several outstanding partners and are keen to grow their businesses with Legend Solutions. We’ve been frustrated with US government flip flops on programs and policy changes that have deferred significant orders. But I wanna be absolutely clear today, we have not lost nor do we expect to lose any US government business.
We have experienced delays, but we do expect good order flow. We’ve operated in a very tight cash environment for the last couple of years, and q three was also a tight cash quarter. We continue to make the necessary expense and operational cost reduction changes for this environment. We continued to lower our component costs and we continue to lower our component costs and increase our system margins. We’re on track to achieve 50% plus margins during the next year.
We managed our backlog by leveraging existing inventory to continue fulfilling commitments. We currently have a 15 system backlog and expect all systems to be shipped by calendar year end. Also wanna acknowledge the dedication and resilience shown by the Legend team during the last quarter of challenging times. It’s been commendable, and we thank the Legend team members for their ongoing support. We see opportunity more than ever before.
SmartGate interest is strong. We’re close on numerous large multiple year deals, and infill system performance has been absolutely outstanding. We’re transitioning from commitments for dozens of SmartGate installations annually to hundreds per year. This shift is underpinned by strong execution, proven solutions, and a growing pipeline of opportunities. We are extremely confident that our progress is not just upward, but transformative.
Importantly, while the green investing sector has faced political challenges, Legend Power Systems value proposition transcends political narratives by delivering lower cost, increased profitability, and reduced risk. We provide enduring value rooted in traditional business fundamentals. We see a bright Legend future, and the Legend team is absolutely focused and committed to make Legend Power a success story. Florence, please provide the financial highlights.
Florence Tan, CFO, Legend Power Systems: Thank you, Randy. During this quarter, revenue recognized was $385,000 compared to $1,000,000 in ’24. The third quarter reflected lower revenues due to deal timing as we still have a significant backlog, which we expect to be fulfilled in calendar twenty twenty five. Our gross margin for the quarter was 24% compared to 50% in 2024. Gross margin percentage has decreased due to this quarter’s production utilization as well as some rush orders in the prior year, which attributed to the higher margins in 2024.
The company ended the quarter with $215,000 in cash, no debt and $156,000 in working capital. The company received $214,000 of outstanding trade receivables and deposits from sales orders subsequent to June 30, which further strengthens our working capital position. We continue to focus on priorities critical to attaining our projections while managing our resources to support our sales growth and to deliver for our shareholders. I’ll pass it back to Randy for some operational highlights.
Randy Buckimer, CEO, Legend Power Systems: Actually, I think we’ll go right to Mike, if we can, for a sales update.
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Excellent. Yeah. Thanks, everybody. Appreciate your time today. So, let me start off with with saying this, that, it’s gotta be clearly understood that the market sees the need for what it is that we provide.
They see the need for smart gate. And when we look at it, there’s portfolio managers, engineering firms, and national service companies, and we’re hearing it everywhere that we’re solving the exact problem that people are struggling with. In fact, just a few days ago, a top power quality engineering firm told us this market has exactly the functionality that the market needs and that the problem it solves is both real and massive. To give you an example of that, on one of our companies that we work with, they they the lifetime maintenance plans for HVAC and electrical systems were one of the profit leaders over the last, eighteen to twenty four months. They’ve actually seen that shift.
They’re now operating at a significant loss. And what’s driving that is the increased, call frequency and repair expenses, that are associated with these contracts. And they believe that this market can not only help restore those margins, but also drive new revenue for them and dramatically improve their customer satisfaction. And they’re moving to act on it, which is important. So the the feedback is clear that SmartKate addresses a critical and growing pain point, and leaders across multiple sectors are starting to recognize it.
The challenge isn’t product market fit. It’s awareness, proof, and delivery friction, and we’re working on all three of these. So let me give you some idea of some strategic wins and some market activity that we’ve got going. First of all, we’re on the cusp of closing a a nice 7 figure opportunity with a new commercial real estate company based out of Texas. All signs point to eminent execution, and we’re in discussions to finalize the all of the final considerations.
You know, the technical and the financial decision makers are aligned, and this will be a flagship case and one from the fastest growing commercial real estate markets in the new one. We’re also very close with portfolio in Canada, a new and they’re they’re nearing contract signature pending final MMP verification of similar buildings that we have underway. So when this deal closes, this deal would add yet another large private multifamily customer to our customer roster. So we’re very excited about that. We’re also preparing to present closing materials for an iconic commercial real estate prop property pilot.
This is one of the highest visibility opportunities in class a commercial office space, and the engagement is progressing with executive level sponsorship, which is very exciting. We’re also seeing some very significant momentum in the airport space. As you recall, several months ago, we did announce a engagement with a very major airport in the Northeast. We’ve completed 50 of the assessments for that particular airport, and the others are installing this weekend. And we presented the power impact report to that customer, and they were very excited to to see the results of of the the next round.
And that has actually led to seven other significant airports that that we’re engaging with. In fact, next week next month, we’re actually scheduled to begin the process with two new airports as well. The thing that’s exciting about this is these are mission critical infrastructure environments, and they they validate SmartGate as a reliability and a resiliency tool, not just a power condition or energy savings measure. So we’re very excited about that. During last summer, we actually went to a letter of intent with the Department of Defense base, and that is advancing nicely.
We now have been ranked number three on their national priority list. And this is a high potential anchor deal that can pave the way for broader Department of Defense adoption and further acceleration through our general services administration multiple award schedule once that’s finalized. And we’re gonna talk about more of that about that in a minute. In fact, with the initial prioritization, we’ve actually been asked to present to 30 other bases our our SmartGate solution because of the preliminary findings and the excitement around the the the first department of defense that we’re looking at. So moving on to our momentum with our multiple award schedule.
You know, it’s been a long time coming and after eight months of waiting, we finally received our feedback on our application, and a number of additional documents were requested and, three items that needed some correction. And, those have all been submitted and provided, and we expect final disposition shortly. And this is gonna have a dramatic impact on the future of Legend because this type of contract is not only used to streamline federal purchasing, but also at the state and municipal levels of government as well. And this preapproved status and and terms allow government sector deals to move much faster with much greater visibility. So we’re very excited about that.
And as I also mentioned, there’s a major HVAC and electrical franchising company that’s focused on looking at how SmartGate can turn the tides on some of their product offerings. We’ve agreed to terms with them, and that will make the SmartGate and and the power impact report available to their 150 franchise locations. So this is agreements under under final review, and we expect to complete this shortly. And the thing I’d like to add about this is it’s more than a channel expansion. It’s a direct response to a financial pain point that they’re experiencing and that their that their leadership is urgently trying to solve.
Again, historically, the the the lifetime maintenance contracts have been their most profitable offering for their franchisees. But over the last eighteen to twenty four months, they’ve seen that start to degrade to the point where they’ve flipped and where they’re no longer contributing profit that they are actually losing money on these deals. And this is really being driven by increased equipment breakage, increases in repair and labor costs, and also just the the the failing electrical infrastructure. So SmartGate gives them an path not only identify that, but to reverse that trend because stabilizing the voltage and improving the the system’s operation gives them a higher value offering for their end customers. And it’s a way to reduce service calls and equipment failures, and it’s a platform that enhances not only the the franchisee margin retention and top line revenue, but significantly enhances that customer’s operating environment.
Because, again, if they’re feeling that on the HVAC side, they’re most likely feeling that on the on the lighting and on the elevation equipment, on the motors, pumps, and drives and other critical infrastructure. And this has a has a lot of opportunity. These agreements represent prop probably roughly around 35% of an $800,000,000 business that is, again, flipped to being a loser that they’re counting on the smart gate, turning the tides on that, and actually returning them to profitability. And the franchisees want this. Their customers need this, and they believe that we are the answer.
It’s a powerful validation of our relevance and our commercial potential. And this is, again, inside one of the largest facility management networks on on the continent. So we’re very excited about that. Another strategic partner that’s coming online is a 9 figure power quality and energy solutions firm whose presidents literally said your product seems to be seems too good to be true. They’ve been working in this space for decades, and they’ve been focusing on on the harmonics and power factor side, but they haven’t found a reliable solution for the voltage side of it.
So we’re working with their engineering team, not only validate the performance, but bring them deeper into the sales process. And they’re currently focused on on those on those solutions and adding voltage regulation and and the types of solutions that SmartKey adds is gonna significantly extend the range of their customers and engagements and the revenue potential that they offer. So they’re very excited about partnering us, and we’re going through the due diligence process on that. In the past, I’m sure you’ve heard about the GSA, what was formerly known as the Green Proving Grounds, which has now been reconfigured to be the Technology Proving Grounds, and we are back on track with them. In fact, GSA has confirmed that they wanna finish the installation of the first smart gate by the September.
So that’s super exciting for us because that that that final confirmation is is gonna come from the the contractors and the facilities that’s going in. But, again, it’s a clear project timeline that demonstrates the their the GSA’s urgency to moving forward. So what’s also exciting is that Oak Ridge will continue testing for a full year because every everything’s all set with the funding and and the separate budget for that. But they will also provide initial reporting at ninety days and as well as a robust reporting at the end of the one year period. What’s exciting is that GSAA has agreed to monitor the smart gate unit for that for that, initial ninety day period.
And when the performance aligns with the stated outcomes, they’re gonna officially endorse the technology, and that they would recommend it for broader adoption across the GSA facilities and inclusion in the ESCO contracts that they do. Again, a full report and final test will be provided by Oak Ridge, but they plan to publish the report on their website, and and they’ll give us a public link so we can make that available to all of you. And this will serve as an authoritative third party validation of our technology. And, again, what’s exciting is the GSA really opens the door to some very strategic opportunities because most of their contracts run through energy service companies or ESCOs, And the GSA is actually committed to introducing us directly to the network of ESCO partners that they work with and communicating that the GSA recommend rents our product based on our performance. And this endorsement and resulting ESCO relationships represent a major opportunity for us considering that that that market is measured in billions of dollars per year.
So it’s a very nice market segment for us to go after. And, also, strengthens our credibility in broader markets where the GSA recommendations carry some significant weight. So no two ways about it. This there’s a long term upside potential from this program, and it can be substantial. And that the successful demonstration, could position us for significant expansion beyond, both GSA and the wider EBSCO ecosystem.
So we’re very excited about that. What’s also interesting is that if we if we pull back up and we take a look at the market positioning in general, we’re we’re not just being taken more seriously. We’re being pulled into the right conversations. You know, earlier this quarter, I was invited to be one of three global panelists on a commercial property management podcast that focuses on the intersection of AI, on-site generation, and grid volatility, with an emphasis on how these trends are impacting broader real estate portfolios. Again, this wasn’t a sales pitch.
It was about thought leadership and being recognized as someone who has the answers for where the market is going, and that’s exactly where we wanna be. So at the same point in time we have all this going on, we are focused on on scaling. And one of the bottlenecks that we are con that we are still, resolving, is the installation cost and some of the time line uncertainty. If we look at our average installation costs, they now surpass about a 150% of these smart gate hardware costs, which is more than we saw in the earlier generations. You know?
And, again, we’re seeing some some longer lead times in some of these third party quotes. So we’re, we’re working to compress those. So the operations team and the sales team are working very closely together to to compress that. Because, again, there’s there’s friction there, and for new customers, we need to take that friction out. So because they do experience a turnkey solution, and they want a single neck to choke for the first couple of solutions, for first couple of systems.
So we’re focused on on solving that. So with that said, there’s been some clear patterns that are emerging. And then once customers have gone through the process and they’ve experienced the benefits, they become far more comfortable with owning their own installation themselves. This not only lowers cost barriers, but also improves go gross margins and accelerates follow on orders and cash flow. So we’re working closely with the ops team to improve the scoping and workflow and streamlining the process to avoid some of the some of the lags in in the cycles.
You know, again, we’re also focused on the sales and operations and and tightening up that entire process. As our deal volumes continue to grow and and and more installations occur, we’re using that data to improve processes, reduce surprises, and build customer trust. This operational learning curve is shortening, and we’re feeding a virtuous cycle because more activities drive more results, which drives more comfort, which drives more deals, which, again, drives more results, more activity. That’s the flywheel we’ve been building, and it’s starting to spin faster. So we’re very excited about that.
We’ve now reached a point where we’re not just chasing projects. We’re shaping expectations, guiding portfolios, and influencing capital planning. Smart gate is still under known, but it’s no longer unproven. And the the market is starting to pay attention, and the right cost customers and conversations are happening more frequently with higher urgency and higher stakes. So we still have work to do, but we’re doing the right things, and people are noticing.
And the momentum is building, and we’re working through everything that we need to work through to drive significant revenues. And the future of Legend is brighter than it’s ever been. So with that said, Randy, I’ll toss it back to you.
Randy Buckimer, CEO, Legend Power Systems: Great. Thanks, Mike. What we hope to do, this morning, it’s difficult when you just look at financial reports, to get a proper indication how well the company is proceeding in the marketplace. And, hopefully, today, we ask Mike to go into a little more detail and that you appreciate there’s a lot going on that you don’t see in the financial statements. We’re very excited about a lot of these huge opportunities, and we really see, a lot of these things starting to fall in place over the next number of weeks and months that will provide that demonstrable proof that we’ve been talking about for some time.
We know we’ve got a proven technology. We know we’ve got a growing pipeline and acceptance level. We’ve got a clear path to revenue growth over the next few years, and we believe we’re poised to redefine the future of power management. And we believe that for people like yourselves that are invested and, you put your trust in Legend Power, that extraordinary promising future as we break through some of these large deals and build the company rapidly. On that note, they’ve heard a lot of information from Mike this morning.
So we’d like to, thank you for your trust and partnerships, but we, at this point in time, would be pleased to take any questions.
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Yes. And if if everyone can see the screen, there’s a q and a button below below this at the bottom of the screen. Please go ahead and click that and type your question in there, and we’ll be happy to go ahead and answer them. Again, if you have any questions, feel free to go ahead and put them in in in the in the chat.
Randy Buckimer, CEO, Legend Power Systems: While we’re waiting for a few questions, Mike, I’ll just introduce a couple that I’ve been asked directly. I was asked the other day a little bit about some of our supply chain, etcetera, how we’re making out there. So just a quick update. We have open relationships with several new suppliers that have the potential to take our two top components or transform and enclosure cost down by 50%. We have done a lot of testing over the last number of months and expect to conclude that analysis shortly, but we see some good progress there.
We have found that we are having a better response on supply chain as far as getting components. We are also better utilizing the existing inventory we have. So that’s sort of one of the questions I have had. Another question I have had is about cash. And, as Florence said, there was additional cashes coming through the quarter on deposits and on AR, collections.
I mean, we are tight on cash. We manage our cash as well as any company I’ve ever seen. We’re very frugal, and we will continue to do what we’ve done the last number of years is as we continue to build sales and get deposits, we will collect our receivables as quickly as possible. We’ll manage our cash. It is our belief that with the news and progress that we will show over the next period of time that there are opportunities, for the organization to, increase its cash.
So we’re we’re excited to, get some of those opportunities over the line and, deposits, etcetera, in. So couple of quick questions that I have at Mike. Or do we have any questions?
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Yes. We’ve had a couple of questions that have come in. The first question is, do you expect the multiple awards process to be completed in calendar twenty twenty five? You would like me to handle that one, Randy?
Randy Buckimer, CEO, Legend Power Systems: Yes, please.
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Yeah. We certainly we do expect that. However, we all know that governmental processes are a bit on unpredictable. So we we’re excited by the fact that we’ve they’ve been very active and very engaged over the past couple of weeks to to finalize everything. So we do see that that has it gives us good reason for hope for sure.
Another question that’s come in is how important is Oak Ridge reports with respect to non energy savings validation? And if you don’t mind, Randy, I’ll go ahead and handle this one as well. So Oak Ridge the the Oak Ridge report is gonna be crucial to that because, again, to have a third party globally respected firm like Oak Ridge National Labs that can articulate the value against reliability and lifetime is going to be very strong for Legend. So there’s no two ways about that, that it goes beyond the the the GSA. It goes beyond governmental spending in general and will be a major influence in the market in general because it’s gonna shift the conversation from here’s what we tell you to here’s what a globally respected third party tells you.
So that’s gonna play a major role in in in in our in our growth. One of the other questions that came in, Randy, is what is the latest update on potentially manufacturing smart gate in The United States?
Randy Buckimer, CEO, Legend Power Systems: Yeah. And it’s obviously a topic we’ve talked about the last few quarters. I think it was very topical, about February when a lot of the changes came in The US that were tariffs, different things, etcetera. The answer is we’ve continued to look at partners that can work with us. The change has been, that there are people, obviously, we can work with, but we’re also looking at different programs where we can get some funding and some help.
And that just seems to have flattened out a little bit, so there’s some clarity on that, but it’s an ongoing process. I I don’t see us doing anything with manufacturing in The US probably till at earliest about a year’s this time. Just because the way we’re set up with our production, the businesses we have that we need to deal with, etcetera, all, I think, will provide some clarity over the next while of where we want to be, where the best strategic location is. But there are numerous people that can provide the service, and and work with us, and that won’t be an issue. It’ll be more where do you wanna be, how do you wanna be, and how do we get the best cost and strategic advantage there.
So stay tuned. We’ll have more news on that as we go forward.
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Great. Thanks, Randy. Another question that has come in is tremendous pipeline of projects as the company moves forward. Where is the company positioned in regards to the tariff situation or customer to USMA?
Randy Buckimer, CEO, Legend Power Systems: Yeah. And that, you know, is a I used the term flip flop earlier when I was discussing the business. It it changes. There’s, some policies that we believe we are tariff free or part of the old Mexican, Canadian, US, deal. There’s also some opportunities we look at that there may be some tariffs.
It almost changes every two weeks. And I know I was reading actually yesterday with Kearney and, Trump getting together again that there looks like there’s some progress there. So, it hasn’t affected us yet. It hasn’t been anything that we have had to deal with, but we are planning, and and that will make us help make decisions on where we will produce the product, how we’ll produce the product. Also, there’s a lot of US components in our in our system, which are are not tariff applicable.
So there’s lots of different answers to that, but we’re looking at it, as I said, almost on a weekly basis, and it changes. So when we get some clarity, we can, we can come back with some better information on that. But as it it, is today, it hasn’t been a factor, and it’s not something that we’re overly concerned about at this point in
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: time. Great. Thanks, Randy. And another question that’s come in is, we explain the impact of obtaining the multiple award schedule status, and the impact that we’ll have with the DOD, with New York and the ESCO markets in general? So I’d
Randy Buckimer, CEO, Legend Power Systems: be happy take one.
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Yeah. Sure. I’d happy to. So first of all, it’s the short answer is it’s massive. Right?
Because what that does is that streamlines the procurement, the purchasing mechanisms for every governmental agency. It doesn’t matter whether it’s federal, state, local. So no two ways about it. It’s getting on that approved list shortens the the the the sales cycle. It reduces the the pain associated with buying a smart gate, and it it dramatically accelerates deals.
And, again, that’s at the government level, the DOD level, at the state level, at the local level. So yes, we definitely see a very rapid ramping up of business from all of those sectors and then again, with the ESCO market. So again, when you look at the multiple layers of this strategy we’ve deployed, we’re validating on the corporate side, we’re validating on the government side, we’re going through the ESCOs, we’re going through the Department of Defense, we’re going through the multiple award schedule process, All of these are in conjunction to to position us very strongly for very strong growth. So we’re very excited about that.
Randy Buckimer, CEO, Legend Power Systems: The next question, Tony, is the definition of backlog. And then is it a fair way to predict time of sales? So just to be clear what a backlog is, it it’s already an order or a sale, and it’s in the process of being fulfilled, shipped to the customer. So, again, backlog is an order. What it isn’t is rev rec for sales.
So by that, I mean, once we, go through the backlog cycle of getting an order with deposit, there’s some revenue recognized there of either 25 or 50%. And as it goes through the process of being shipped, installed, and finally signed off, additional percentage of the rev rec is achieved. So the 15 systems we expect to be shipped through the process, and delivered to the customer, we believe by the end of the calendar year. So that’ll be 15 systems. A lot of those are systems themselves without installation, but there are some install components in that too.
And, again, those 15 backlog systems are part of the order process. We’ll turn it to rev rec completion by the end of calendar, 2025.
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Thanks, Randy. And there’s another question that’s come in. Can we talk about deposits and our expectations to get those deposits? And are we seeing any change there?
Randy Buckimer, CEO, Legend Power Systems: Yeah. I think that we did make the change, as Mike said, of seeing a lot more due to the cost of installations, more people doing the installs to their own installation companies, which is an ideal situation for us and one that we we want to be in. In the perfect world, we would be the system experts and send solutions and have the customers do their install. And we’re doing that with several major customers, one who has now over 50 units that is doing their own installations. We just provide the equipment and expertise.
So deposits then increase when under that situation where the customer’s doing their own installs. It’s a product only sale. That’s a 50% deposit. If it’s part of an overall installation component that we’re guiding through, it’s 25%. So, we are seeing acceptance.
We’ve had no meaningful government business as we’ve talked about earlier that’s starting to happen. And that’s a question they get asked because they don’t necessarily do deposits, but they will do milestone payments, which mimic, the deposits. But deposits have been, at least the philosophy and application It’s been, accepted. We see that as a regular part of business now.
It’s a significant, cash contribution to us, and and we obviously, work as best we can to get deposits as quickly we can on the sales efforts that we do have. So, yes, it’s it’s something that now is ingrained in our process and well accepted.
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Yeah. Hey, Randy. I’d like to add on to that just to also clarify the the the the benefit of the shift to focusing on equipment and and less on installation. Typically, when we’re installing the product, there’s a 25% deposit. There’s 25% upon the customer receiving it.
There’s 25% upon rough in, and there’s 25% on finalization. And to give an idea of the dramatic difference in the in the pace of the cash flow and the cadence of the cash flow and the significance of With the with the equipment only deals, it’s a 50% upfront and 50% upon delivery. So in some cases, that could the the the the compression of the cash cycle can be months. So we’re very excited about that, and that’s part of the strategy behind pushing forward strongly with that.
Looking at the time and the questions, I think we’ve gone through most of the questions, and I think we’re at the bottom of the hour. So you wanna go ahead and put in run through some closing remarks, Randy?
Randy Buckimer, CEO, Legend Power Systems: Absolutely. First of all, thank you for everyone attending today’s call, and our objective was to get a little deeper than usual on the sales side and share the exciting progress that, isn’t apparent when you just look at some of the marketing material or financial reporting material that’s out there. Do expect, our cadence and our impact of press releases on progress to, to pick up starting in September and going forward. We know that the partnerships are growing and sell through is increasing. Our resellers are helping us to get business to their customers and build their brand by leveraging Legend Power Solutions.
It it’s the shortest and best way for us to grow the business. The whole GSA government business is imminent approvals that we’re waiting for will be a very exciting time for us. It helps the pipeline grow. Deals are becoming larger, and multiple year opportunities are starting to exist in in many, many opportunities. And we’re not seeing any improvement in the power problems that The US is experiencing, the electric grid, the quality challenges that are due to aging infrastructure, growing renewable penetration, and then rising demand for electrification.
So the shifts are introducing significant power quality issues and what Mike commonly calls it dirty power, the power quality challenge driving demand for smart gate solutions continues to grow. We have a committed and talented team and an outstanding active power management platform. There is no equal. We’re building the brand and the name and the acceptance of the quality of this excellent solution is growing every day. We’re focused on achieving our sales objectives, closely managing our cash while reducing operating costs and securing sales deposits.
We believe the future looks very bright and very exciting for Legend Power and our shareholders. We thank you today for your time. We appreciate your support, and we look forward to an ongoing basis and with more cadence improved cadence, sharing many Legend Power success stories with you over the next few months. Otherwise, enjoy the rest of the summer, and have a great legendary day. Thank you.
Hey, guys. Good job.
Mike Sciosi, VP Sales and Marketing, Legend Power Systems: Just a second, Randy. Let me get to, end the meeting.
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