SHARC Energy Announces Q3 2024 Financial Results

VANCOUVER, British Columbia, Nov. 27, 2024 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) ("SHARC Energy" or the "Company") is pleased to announce it has filed financial results for the three and nine months ended September 30, 2024. All figures are in Canadian Dollars and in accordance with IFRS unless otherwise stated.

Third Quarter and Year to Date (YTD) Financial Highlights:

   -- Revenue for the nine months ended September 30, 2024 ("YTD 2024") is 
      $2.34M representing 147% of the full year revenue in 2023. Revenue 
      slightly increased quarter over quarter from the three months ended June 
      30, 2024, of $0.78M to $0.79M during the three months ended September 30, 
      2024 ("Q3 2024"). 
 
   -- Revenue for Q3 2024 is $0.79M, which is a 44% increase from the three 
      months ended September 30, 2023 ("Q3 2023"). YTD 2024 revenue is $2.34M 
      which represents a 35% increase from the nine months ended September 30, 
      2023 (YTD 2023"). 
 
   -- Gross margins for Q3 2024 and YTD 2024 were lower at 32% and 37%, versus 
      40% and 42% reported in Q3 2023 and YTD 2023, respectively, due to sales 
      mix. Management remains optimistic that this margin range aligns with our 
      expectations for the coming quarters. 
 
   -- As of November 27, 2024, the Company has a Sales Pipeline1 of 17.1 
      million $(MIMI)$ and Sales Order Backlog2 of $2.5M. Sales Pipeline saw a 
      slight increase of 2% or $0.3M while Sales Order Backlog slightly 
      decreased by 7% or $0.2M since the Company's August 29, 2024 disclosure 
      despite drawing down Sales Order Backlog by $0.79M. The Company continues 
      to observe the maturity of its Sales Pipeline providing the Company's 
      revenue more consistency with reduced revenue volatility, providing a 
      solid platform to scale and grow. 

Michael Albertson, President of SHARC Energy US, said, "The third quarter of 2024 continued to validate SHARC Energy's pipeline has reached a key maturity milestone as Sales Order Backlog grew from its previous disclosure on August 29, 2024, despite recognizing quarter over quarter revenue growth in Q3 2024 compared to Q2 2024. Sales Order Backlog currently contains 10 projects, consistent with Q2 2024, representing the greatest number of projects under order at any period in the Company's history. We see this as a strong indication that the Company's future revenue is not only growing but diversifying. There are several projects indicating signs of conversion from Sales Pipeline to Sales Order Backlog which should affirm continued stability and growth of revenue in the near and long term."

"Thermal Energy Networks, commonly referred to as TENs or district energy, is a growing solution for managing small to large scale thermal energy loads efficiently and cost-effectively. WET supported solutions continue to grow in awareness and acceptance with the Company learning of projects in planning across North America and globally. In the Greater Vancouver, British Columbia region alone, there are several municipal or utility supported TENs ranging in size and scale, similar to the False Creek Neighborhood Energy Utility or lel m projects, in different stages of development that will increase SHARC Energy's local footprint over the next few years. In the United States, legislation allowing or mandating utilities to develop thermal energy network demonstration projects or pilots have been passed in eight states, including the State of New York and recently added California, where the Company has installations in progress, projects in design and a growing list of leads looking to implement WET TENs," added Mr. Albertson.

Q3 2024 Highlights and Subsequent Events

   -- Fred Andriano appointed to the Board of Directors. The Company announced 
      the appointment of Fred Andriano to its Board of Directors on November 7, 
      2024. Mr Andriano was previously CFO at WaterFurnace International, where 
      his leadership was critical in strategic acquisitions, international 
      joint ventures and impressive growth, with revenues doubling from $65M to 
      $130M culminating in a $364M acquisition by NIBE Group in 2014. He 
      continued as CFO and eventually moving to Vice President of Financial and 
      Administrative Services for NIBE North America. During this time, Mr. 
      Andriano played a pivotal role in securing major acquisitions, such as 
      Enertech and The Climate Control Group, expanding NIBE's footprint in the 
      renewable energy space. 
 
   -- Closing of $2 Million 8.0% Debenture financing. The Company closed a 
      non-brokered private placement of debenture units of the Company 
      ("Debenture units") at a price of $1,000 per Debenture Unit, for gross 
      proceeds of $2,000,000. Each Debenture Unit will be comprised of: (i) a 
      $1,000 principal amount of 8.0% unsecured debenture of the Company (the 
      "Debenture"); and (ii) 5,000 common share purchase warrants of the 
      Company (the "Warrants"). Each Warrant will entitle the holder thereof to 
      acquire one common share in the capital of the Company (each, a "Share") 
      at an exercise price of $0.20 per Share for a period of 36 months from 
      the date of issuance. 
 
   -- False Creek Neighbourhood Energy Utility ("NEU") Expansion. The Company 
      continued work on the supply and maintenance agreement with the City of 
      Vancouver for the provision and maintenance of five SHARC systems for the 
      False Creek NEU Expansion. During the period, the Company completed and 
      billed milestone 3 of 5 of the agreement, where all components have been 
      delivered to site. The project is expected to be completed before the end 
      of 2024. 
 
   -- Purchase order received for Whitney Young retrofit featured in NYSERDA 
      Empire Building Challenge. The Company received a purchase order for a 
      SHARC 660 WET system for the Whitney Young Manor recapitalization project 
      in Yonkers, New York. The Whitney Young Manor will undergo a $22 million 
      renovation, with nearly $12 million allocated to the project's 
      decarbonization effort, inclusive of all energy efficiency measures. The 
      retrofit project will highlight how to leverage a recapitalization 
      opportunity to comprehensively retrofit energy systems and modernize an 
      affordable housing complex. The system shipped in Q1 2024. 
 
   -- Purchase Order received for Phase 1 of transformative $1.2B development 
      to create 2,400 affordable homes, a medical clinic, and retail in 
      Brooklyn, New York. The Company received a purchase order for a SHARC 660 
      WET system to be included in the first phase of a transformative $1.2 
      billion redevelopment in Brooklyn's East New York neighborhood led by 
      Apex Building Company, L+M Development Partners, RiseBoro Community 
      Partnership, and Services for the Underserved. The system shipped Q1 
      2024. 
 
   -- Insiders, including management and directors, have purchased 4,632,500 
      common shares of the Company year to date. Insider ownership represents 
      16% of the current outstanding float. 

For complete financial information for the three and nine months ended September 30, 2024, please see the Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis ("MD&A") filed on SEDAR at www.sedar.com.

About SHARC Energy

SHARC International Systems Inc. is a world leader in energy recovery from the wastewater we send down the drain every day. SHARC Energy's systems recycle thermal energy from wastewater, generating one of the most energy-efficient and economical systems for heating, cooling & hot water production for commercial, residential, and industrial buildings.

SHARC Energy is publicly traded in Canada (CSE: SHRC), the United States (OTCQB: INTWF) and Germany (Frankfurt: IWIA) and you can find out more on our SEDAR profile.

Learn more about SHARC Energy: Website | Investor Page | LinkedIn | YouTube | PIRANHA | SHARC

ON BEHALF OF THE BOARD

Lynn Mueller

Chairman and Chief Executive Officer

 
For investor inquiries, please contact:  For media inquiries, please contact: 
 Hanspaul Pannu                           Mike Tanyi 
 Chief Financial & Operating Officer      Director of Marketing & IT 
 SHARC Energy                             SHARC Energy 
 Telephone: (604) 475-7710 ext. 4         Telephone: 604.475.7710 Ext.109 
 Email: hanspaul.pannu@sharcenergy.com    Email: mike.tanyi@sharcenergy.com 
 
 

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

Forward-Looking Statements

Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified using words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "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 because of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the 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 these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this news 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

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