Third Quarter and Year-to-date Financial Highlights:
- As of
November 28, 2023 , the Company has a Sales Pipeline1 of 17.7 million (M) and Sales Order Backlog2 of$0.8M . This represents a growth of 6% in Sales Pipeline, or a$1.0M increase, and a 38% reduction in Sales Order Backlog, or a$0.5M reduction, for an aggregate growth of 3% or$0.5M from the previous disclosure. Rising interest rates and the ripple effect this has caused to the real estate market has caused some developers to delay construction as they strategize delivery of their projects. However, the Company is finding new opportunities in adjacent market sectors. - Working capital is
$3.5M , which includes$2.0M of cash, as ofSeptember 30, 2023 . The Company no longer holds any debt, except for standard operating payables and liabilities, due to the 100% conversion to equity of$3.95M in maturing convertible debt during the nine months endedSeptember 30, 2023 (“YTD 2023”). - During the three months ended
September 30, 2023 (“Q3 2023”), the Company reported revenues of$0.55M , a loss of$0.91M and an Adjusted EBITDA3 loss of$0.63M . Revenue increased 567% over revenue during the three months endedSeptember 30, 2022 (“Q3 2023”) of$0.08M , the loss improved 38% over comparative in 2022 of$1.46M and Adjusted EBITDA loss improved by 6% over Q3 2022 comparative of an Adjusted EBITDA earnings of$0.67M . - During YTD 2023, the Company reported revenues of
$1.73M , a loss of$3.3M and an Adjusted EBITDA loss of$1.59M . Revenue increased 53% over revenue during the nine months endedSeptember 30, 2022 (“YTD 2022”) of$1.13M , the loss and comprehensive loss improved 7% over comparative YTD 2022 of$3.54M and Adjusted EBITDA loss improved 22% over 2022 comparative of$1.95M . - Gross margin for YTD 2023 was 43.0% compared with gross margin of 32.7% for YTD 2022. In YTD 2023, the Company returned to a supply and service revenue mix whereas during YTD 2022, the Company earned lower margin on general contracting revenue earned.
Hanspaul Pannu, CFO and COO of SHARC Energy, said, "Wastewater Energy Transfer, or WET, is gaining momentum with increased awareness and visibility with key players within the geothermal and hydronic heating, cooling and hot water market. WET is one of the best thermal energy solutions supporting hydronic HVAC systems in the market today and we continue to see positive signs of rapidly increasing adoption across
YTD 2023 Highlights and Subsequent Events
- Appointment of
Michael Albertson as SHARC US President. The Company announced the strategic addition of 40+ year industry veteranMichael Albertson to its executive team as the President of SHARC US. Albertson, with his extensive experience and proven track record as a renewable thermal energy expert with a focus on Thermal Energy Networks (“TENs”) and district energy networks, is set to play a pivotal role in driving the Company's growth and revenue generation. - Appointment of
Peter Busby to the Board of Directors. The Company announced the addition of renowned sustainable architect,Peter Busby to the Board of Directors.Mr. Busby is a principal at Perkins & Will, a global design practice founded in 1935, with over 28 offices and more than 2,500 employees. The Company will leverage Mr. Busby’s expertise to better engage with architects worldwide and grow awareness of SHARC Energy within the industry and drive lead generation for its products. - Appointment of
Dermot Sweeny to the Board of Directors.Mr. Sweeny was appointed to the Board of Directors onOctober 17, 2023 . Mr. Sweeny’s firm, Sweeny & Co, has achieved numerous awards from reputable institutions, like theCanadian Green Building Council and theUrban Land Institute , for their sustainable building designs. This strategic appointment highlights SHARC Energy’s ongoing commitment to creating significant value for our shareholders by bringing together industry experts who passionately embrace our vision of advancing sustainability. - False Creek Neighbourhood Energy Utility (“NEU”) Expansion. During Q4 2022, the Company commenced 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. This project is expected to increase the capacity of the current 3.2MW WET system to 9.8MW, making it the largest operating WET project inNorth America upon completion, with an additional carbon emission reduction of an estimated 4,400 tonnes per year. The major components of the SHARC WET systems have been delivered to site. The final milestones for the supply contract, including commissioning and field testing of the SHARC WET systems, are anticipated to complete in Q3/Q4 2024. - Purchase order received for
Whitney Young retrofit featured in NYSERDA EmpireBuilding Challenge . The Company has received a purchase order for a SHARC 660 WET system for theWhitney Young Manor recapitalization project inYonkers, 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 showcase how to leverage a recapitalization opportunity to comprehensively retrofit energy systems and modernize an affordable housing complex. It is anticipated that the system will ship 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 inBrooklyn, New York . The Company has completed the final submittal process with itsNew York State representative HIGHMARK and has 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’sEast New York neighborhood led byApex Building Company , L+M Development Partners,RiseBoro Community Partnership , and Services for the Underserved. It is anticipated that the system will ship in Q1 2024. Snowmass Base Village ,Colorado installs PIRANHA. A PIRANHA T15 WET system will be installed in Aura’s 21 slope-side residences, powered 100% by renewable energy resources within the residential building. Aura’s team is led byEast West Partners , a developer of high-end mountain resort communities, and supported by SHARC Energy’sColorado distributor,LONG Building Technologies . This unit shipped Q2 2023.- PIRANHAs in Canada’s Capital. HTS Ontario, a representative of SHARC Energy products, has been selected to supply two PIRANHA T15 WET systems to be installed in
Ottawa . This deal is a key milestone as it marks the beginning of HTS’s growing SHARC Energy pipeline turning over and it validates the Company’s strategy to support and leverage its representative network to help grow awareness and sales for its products in key markets. These units shipped in Q1 2023. - Partnership with Subterra Renewables. The Company and
Subterra Capital Partners Inc. , a leading full-service geothermal drilling provider with a proprietary Energy-as-a-Service (“EaaS”) model known as Aura™, announced onApril 27, 2023 , a$200M strategic partnership to revolutionize the renewable thermal energy transfer landscape acrossNorth America . By combining SHARC Energy's innovative WET technology with Subterra's geothermal exchange systems, the partnership aims to bring unparalleled solutions to the market, capturing a greater share for both companies. - PIRANHA receives North American Certification. The PIRANHA WET system has successfully completed testing in compliance with CSA/UL Standards 60335-2-40, and NSF 5. The PIRANHA series will now bear the
Electrical Testing Laboratories (“ETL”) listed mark indicating to distributors and customers that the product is compliant to North American standards and provides a pathway for the PIRANHA series to gain compliance in key North American markets requiring state approval. $3.98M raised through security exercises. Since the beginning of 2023 to the date of the MD&A, the Company raised gross proceeds of$3.77M through the exercise of warrants and$0.21M through the exercise of debenture warrants.- Conversion of Convertible Debt Face Value of
$3.95M . From the beginning of 2023 to the date of the MD&A, the Company has converted$3.95M of convertible debt. This represents 100% of convertible debt previously held on the balance sheet resulting in the Company becoming debt-free outside of standard operating payables and liabilities.
Wastewater Energy Transfer Industry Supporting Policy
The outlook for the Wastewater Energy Transfer industry is experiencing signs of scale-up due to new supportive regulations and funding in several key markets across
Also, the
Furthermore, the
The
On
This legislation will promote the development of thermal energy networks throughout the State, providing benefits by reducing fossil fuel usage for heating and cooling through community-scale infrastructure solutions, along with employment opportunities for existing utility workers and new workers. The enabling legislation will build on the progress of, and complement, NYSERDA’s active community thermal program, which to-date has funded feasibility studies, detailed design studies, and other advanced project construction incentives to more than three dozen sites across the state.
Then,
Finally,
These policies along with the growing number of cities across
For complete financial information for the nine months ended
About SHARC Energy
SHARC Energy is publicly traded in
Learn more about SHARC Energy: Website | Investor Page | LinkedIn | YouTube | PIRANHA | SHARC
ON BEHALF OF THE BOARD
Chairman and Chief Executive Officer
For investor inquiries, please contact: | For media inquiries, please contact: | ||
Hanspaul Pannu | |||
Chief Financial 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 as a result 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 obligation to update or revise any forward-looking information whether because of new information, future events or otherwise, except as required by applicable securities legislation.
1 Sales Pipeline is a Non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2023 MD&A.
2 Sales Order Backlog is a Non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2023 MD&A.
3 Adjusted EBITDA is a Non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2023 MD&A.
Source: SHARC Energy
2023 GlobeNewswire, Inc., source