VANCOUVER, British Columbia, Aug. 29, 2022 (GLOBE NEWSWIRE) — SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (INTWF) (“SHARC Energy” or the “Company”) announces that it has filed its financial results for the second quarter ended June 30, 2022. All figures are in Canadian dollars, unless otherwise indicated and in accordance with IFRS.

Second quarter and year-to-date financial highlights:

  • As of August 29, 2022, the Company has a sales pipeline1 of $9.8 million. This represents a 27% growth from the previous disclosure on April 18e2022. The aggregated sales pipeline and backlog2 (“Design pipeline”) increased by 26% from the previous disclosure indicating continued growth in wastewater energy transfer (“WET”) industry.
  • Revenue for the three months ended June 30, 2022 (“Q2 2022”) is $0.17Mrepresenting an increase of 56% or 0.60M for the quarter ended June 30, 2021 (“Q2 2021”). During the six months ended June 30, 2022 (“Year-to-date 2022”), the Company reported revenues of $1.05M, an increase of 254% over the six months ended June 30, 2021 of $0.3M (“Year-to-date 2021”).
  • The Company reported adjusted EBITDA3 loss of $0.83M and $1.35M in Q2 2022 and YTD 2022, representing an increase of 43% and 24%, respectively, over the comparative periods. This increase is due to increased investment in headcount within sales, marketing, operations, and advertising and promotion expenses.
  • The loss for Q2 2022 and current year 2022 is $1.24M and $2.08M, which represents an increase of $0.23M and $0.22M compared to Q2 2021. This increase in loss is due to the increase in headcount, travel, advertising and promotion expenses offset by an increase in gross profit and the reduction in interest and financing costs compared to the comparative periods.

“We are excited about the continued growth of our Design Pipeline. As growth accelerates in our key markets, driven by a myriad of reasons – rising natural gas prices, changing building codes, and environmental and regulatory policy to name a few; we are well positioned to accelerate and scale the commercial platform we have created for our WET products,” says Hanspaul Pannu, Chief Financial Officer of SHARC Energy. “We anticipate the maturation and revenue of our Design Pipeline over the next 24 months.”

“The potential of the wastewater energy transfer industry is limitless. The feedback we receive from industry stakeholders is encouraging and keeps us informed of what is yet to come. We will continue to partner and develop key relationships that will contribute to SHARC Energy’s long-term prospects,” said Lynn Mueller, President and CEO of SHARC Energy. “The signs are clear. SHARC Energy is a pioneer and a strong long-term position in the growing cleantech space.

Highlights of 2022 so far and subsequent events

  • Partnership with Salas O’Brien. The Company has entered into an agreement with Salas O’Brien, an employee-owned engineering firm with 55 offices, over 1,600 team members and over 360 registered professionals. Together, the companies intend to establish and cultivate a collaborative and strategic relationship that will support the market with turnkey solutions tailored to carbon reduction and energy efficiency goals. SHARC Energy anticipates that this relationship will help accelerate the growth of the WET industry and, as a result, drive accretive growth in the SHARC Energy WET product pipeline.
  • Innovations for Sustainable Living (“SLI”). SHARC Energy’s WET PIRANHA and PIRANHA HC T5, T10 and T15 systems have been selected by SLI for six new projects in design or construction. The Company has received a purchase order from California-Columbia Hydronics Corporation (“HCC“) for the first of six projects, which is a PIRANHA T5 HC for SLI’s new project in Seattle at 8601 Aurora Avenue. The remaining five projects currently in the design phase are expected to use a mix of 7 PIRANHAs and PIRANHA HC T10 and T15 for the heating and cooling needs of the various projects and have planned shipment dates in 2023.
  • Seattle SHARC WET system. SHARC Energy has received a purchase order from CHC for a SHARC WET system to be installed in the heart of Seattle, minutes from the Space Needle, marking the first SHARC WET system showcasing the power of wastewater in the heart of the North Pacific. -West USA.
  • PIRANHA in Canada’s capital. HTS Ontario, a representative of SHARC Energy products, have been selected to supply two PIRANHA T15 WET systems to be installed in Ottawa. This agreement is a key milestone as it marks the start of the renewal of HTS’ growing SHARC Energy pipeline and validates the company’s strategy to support and leverage its network of representatives to help grow brand awareness and sales of its products in key markets.
  • Western National Center. The National Western Center in Denver, Colorado is at the forefront of the greatest wastewater district energy innovation in North America to date. National Western Center will leverage two SHARC™ wastewater reclamation systems 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, avoiding the annual emission of 2,600 metric tons of carbon dioxide into the atmosphere. The project was commissioned in the first quarter of 2022.
  • lelǝḿ. The heating and cooling needs of a planned development of 1,200 residential units in Vancouver, British Columbia, will be met using a low-carbon wastewater energy exchange system from SHARC Energy in the part of a centralized energy installation. The installation and commissioning of the system was completed in the first quarter of 2022.

For complete financial information for the three and six months ended June 30, 2022, please refer to the condensed consolidated interim financial statements and management’s report (“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 every day down the drain. 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 publicly traded in Canada (CSE: SHRC), United States ( INTWF) and Germany (Frankfurt: IWIA) and you can learn more about our SEDAR profile.

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

ON BEHALF OF COUNCIL

Lynn Muller
President and CEO

For investor inquiries, please contact:
Hans-Paul Pannu
Financial director
SHARC Energy
Telephone: (604) 475-7710 ext. 4
E-mail: [email protected]
For media inquiries, please contact:
Kamran Sheikh
Account director
PR associates
Phone: 778-846-5406
E-mail: [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 with words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “have the intention to”, “should”, etc. phrases. 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, prevailing economic conditions and other factors, many of which are beyond our control. of the company. SHARC Energy believes that the expectations reflected in the forward-looking information are reasonable, but there can be no assurance that such expectations will prove to be correct and undue reliance should not be placed on such forward-looking information. 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 laws.

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1 Sales Pipeline is a non-IFRS measure. Please see the discussion of alternative performance measures and non-IFRS measures in the second quarter 2022 MD&A.
2 Customer order backlog is a non-IFRS measure. Please see the discussion of alternative performance measures and non-IFRS measures in the second quarter 2022 MD&A.
3 Adjusted EBITDA is a non-IFRS measure. Please see the discussion and reconciliation of alternative performance measures and non-IFRS measures in the Q2 2022 MD&A.

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