SHARC Energy Reports Record Revenue and Positive First Quarter Cash Flow

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VANCOUVER, British Columbia, November 15, 2021 (GLOBE NEWSWIRE) – SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) (“SHARC Energy” or the “Company”) announces that it has filed its financial results for the third quarter and nine months ended September 30, 2021. All figures are in Canadian dollars, unless otherwise indicated and in accordance with IFRS.

Highlights of the third quarter and year to date:

  • Revenue for the quarter ended September 30, 2021 (“Q3 2021“) was $ 1.42 million, an increase of 234% or 0.99 million from the quarter ended September 30, 2020 (“Q3 2020“). This is the largest turnover in the history of the Company.
  • Revenue for the nine months ended September 30, 2021 (“YTD 2021 “) was $ 1.72 million, which represents an increase of 190% or $ 1.13 million from the nine months ended September 30, 2020 (“Year-to-date 2020“). This is the largest period of cumulative revenue over the fiscal year in the history of the company.
  • The Company achieved its first positive quarter of cash flow in the history of the Company with Adjusted EBITDA1 of $ 0.02 million in Q3 2021, which represents an improvement of 106% or $ 0.37 million compared to Q3 2020 adjusted EBITDA loss. The Company also reported an adjusted EBITDA loss of $ 1.07 million in fiscal 2021, compared to $ 1.31 million in fiscal 2020, which represents an improvement of 19% or $ 0.24 million from fiscal 2020.
  • As of November 15, 2021, the Company had a sales pipeline2 of $ 5.25 million. This represents a growth of 39% compared to the previous disclosure of August 20, 2021. In addition, the Company has an order book3 of $ 1.59 million, which represents a decrease of 44% compared to the previous disclosure of the August 20, 2021.
  • The loss for the third quarter 2021 and fiscal 2021 was $ 0.41 million and $ 2.27 million, which represents a decrease of $ 0.44 million from the third quarter of 2020 and an increase $ 0.32 million over FY2020. This increase in FY2021 loss over FY2020 is largely due to a gain on debt settlement reported in YTD 2020.
  • The Company has working capital of $ 2.67 million as at September 30, 2021. Management expects to have sufficient working capital to maintain its operations over the next 12 months.

1 Adjusted EBITDA is a non-IFRS measure. Please see the discussion and reconciliation of alternative performance measures and non-IFRS measures in the MD&A for the third quarter of 2021.2 Sales pipeline is a non-IFRS measure. Please see the discussion of alternative performance measures and non-IFRS measures in the MD&A for the third quarter of 2021.3 Backlog is a non-IFRS measure. Please see the discussion of alternative performance measures and non-IFRS measures in the Q3 2021 MD&A.

Highlights of fiscal year 2021 and beyond

  • Western National Center. The National Western Center is the pioneer of the largest district energy innovation for wastewater in North America to date. The National Western Center will rely on two SHARC ™ wastewater collection systems placed at the heart of its 3.8 megawatt (MW) district energy system, creating a low-carbon, sustainable and regenerative campus. The first phase of development is expected to recover thermal energy from 3,000 gallons of wastewater every minute, preventing 2,600 metric tons of carbon dioxide from being emitted into the atmosphere each year.
  • Visit of Congresswoman Marcy Kaptur to DC Water. US House Representative Marcy Kaptur, Chair of the Parliamentary Appropriations Subcommittee on Energy and Water Development, visited DC Water’s headquarters in the US capital (“DC Water HQ“) on March 9, 2021.” I have never seen a technology that could have such a positive impact on energy as what I have seen at DC Water headquarters, “Congresswoman Kaptur said after her visit.
  • WashOut laundry renovation. The Company has completed the installation of a PIRANHA T15 in the WashOut laundry, which is the first PIRANHA refurbishment approved under the FortisBC Personalized Performance Program. WashOut is expected to save over 2,100 gigajoules per year of natural gas, saving 105 tonnes of greenhouse gas emissions per year.
  • ELLA. A 45-suite multi-family residential project in Vancouver, British Columbia, seeking to reduce its energy costs and carbon footprint, while guarding against the carbon tax hike, installed a PIRANHA T10 HC. The unit is expected to save the project 524 tonnes of CO2 emissions reduction over its lifetime.
  • Trico LivingWell. Calgary’s newest seniors community will install two PIRANHA T15s in two carefully planned residences. The PIRANHA T15 will reduce the CO2 emissions linked to the production of domestic hot water in residences by up to 100%. These two units represent the 2nd and 3rd installations of a PIRANHA system in Alberta.
  • the the. The heating and cooling needs of a planned development of 1,200 residential units will be met using a low-carbon wastewater energy exchange system SHARC Energy as part of a centralized energy installation. The system is expected to be shipped and installed in the fourth quarter of 2021.
  • $ 2.2 million (M) raised through capital markets and security exercises. From the beginning of 2021 until the date of the MD&A, the Company has raised $ 0.45M (gross) through private placements of shares and equity units without intermediaries, 1.43M $ by the exercise of stock options and warrants and $ 0.24 million by the exercise of stock warrants.
  • Conversion of the face value of the convertible debt of $ 1.59 million. During fiscal 2021 and thereafter to date, the Company converted $ 1.59 million of convertible debt.

“The third quarter of 2021 marks a milestone quarter for the Company, where we generated record quarterly and annual revenues and our first quarter of breakeven adjusted EBITDA. Although revenue and Adjusted EBITDA are expected to fluctuate from quarter to quarter, SHARC Energy’s backlog and order pipeline continue to grow and have officially started to spin up and reach our account. result with greater consistency. This is expected to continue over the next few quarters, ”said Hanspaul Pannu, CFO of SHARC Energy.

“Our balance sheet remains healthy. Most of our diluted capital remains in the money, which offers an opportunity to improve working capital by injecting capital or extinguishing convertible debt. The company is well positioned to continue to develop its sales pipeline and investments in sales and marketing while exploring and soliciting large-scale private and public funding opportunities, ”said Pannu.

We have worked on a number of projects and strategic relationships during COVID-19 until today and are confident that the best is yet to come. SHARC Energy is projecting itself into the future with reliable solutions that will help world leaders achieve their climate action plans and achieve key goals for a greener future. Our products not only help eliminate carbon emissions from space heating and hot water production, but also save fresh water used in cooling towers and help reduce ambient wastewater temperature before their release into the Earth’s water bodies, ”said Lynn Mueller, Executive Director. by SHARC Energy. “The world is realizing the power of wastewater with every project using SHARC Energy technology and we are ready to help the world meet its climate action goals! “

For complete financial information for the third quarter and nine months ended September 30, 2021, please see the Interim Financial Statements and MD&A (“Management report”) Filed on SEDAR at www.sedar.com.

About SHARC Energy

SHARC International Systems Inc. is a world leader in recovering energy from the wastewater we discharge into sewers every day. SHARC Energy’s systems recycle thermal energy from wastewater, generating one of the most energy efficient and economical systems for heating, cooling and hot water production for commercial, residential and industrial buildings.

SHARC Energy is listed on the Canadian stock exchange (CST: SHRC), United States (OTCQB: INTWF) and Germany (Frankfurt: IWIA) and you can find out more about our SEDAR profile.

Learn more about SHARC Energy: Website | Investor | LinkedIn | Youtube | PIRANHA

ON BEHALF OF THE BOARD

Lynn muellerChairman and CEO

For investor inquiries, please contact:Hanspaul PannuChief Financial Officer SHARC Energy Telephone: (604) 475-7710 ext. 4E-mail: [email protected]

For media inquiries, please contact:Mike Tanyi Director of Marketing and IT SHARC Energy Phone: (604) 475-7710 ext 109 Email: [email protected]

The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release.

Forward-looking statements

Certain statements contained in this press release may constitute forward-looking information. Forward-looking information is often, but not always, identified using words such as “anticipate”, “plan”, “estimate”, “expect”, “could”, “will”, “intention”. “,” Should “and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. SHARC Energy’s actual results could differ materially from those anticipated in this forward-looking information due to regulatory decisions, competitive factors in the industries in which the Company operates, economic conditions and other factors, many of which are beyond the control of control of the company. SHARC Energy believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that such expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this press release represents the Company’s expectations as of the date hereof and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

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Source: SHARC Energy


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