Acceleware Ltd. Stories Second Quarter 2024 Monetary and Working Outcomes

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CALGARY, Alberta, Aug. 17, 2024 (GLOBE NEWSWIRE) — Acceleware^® Ltd. (“Acceleware” or the “Firm”) (TSX-V: AXE), a number one innovator of transformative applied sciences focusing on the decarbonization of commercial course of warmth, right this moment introduced its monetary and working outcomes for the six months ended June 30, 2024 (all figures are in Canadian {dollars} except in any other case famous). Acceleware’s outcomes mirror contributions from the Firm’s two enterprise models, radio frequency (“RF”) heating for industrial purposes utilizing the Firm’s proprietary Clear Tech Inverter (“CTI”) together with enhanced oil restoration (“RF XL”), and high-performance computing (“HPC”) scientific software program. This information launch must be learn together with the Firm’s unaudited interim condensed monetary statements and the accompanying notes for the six months ended June 30, 2024 and administration’s dialogue and evaluation (“MDA”) thereto, along with the audited monetary statements for the yr ended December 31, 2023, notes and MDA thereto, all of which can be found on Acceleware’s web site at www.acceleware.com or on www.sedarplus.ca.

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HIGHLIGHTS

Monetary highlights for the three and 6 months ended June 30, 2024:

Primarily based on constructive outcomes thus far, Acceleware stays assured that RF XL will turn into viable as a essential know-how within the effort to decarbonize heavy oil and oil sands manufacturing. Within the six months ended June 30, 2024, the Firm continued to work carefully with business companions to progress subsequent steps within the RF XL Pilot. An output of this work is the dedication that probably the most sensible path ahead includes a redeployment of all subsurface parts incorporating the a number of enhancements and upgrades that Acceleware has made to the RF XL downhole system. Acceleware is actively sourcing an extra $5 million of funding to finish the redeployment. The Firm has been profitable in securing partial non-dilutive funding for the redeployment, contingent on receiving the rest of the $5 million. The Firm has recognized a number of potential business and authorities funders and is within the strategy of contacting and discussing the undertaking with them. The first outreach message is that the redeployment is anticipated to allow larger energy to be distributed within the reservoir for a sustained interval in a second section of heating. Please discuss with the MDA for an entire RF XL Pilot replace.

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Within the three months ended June 30, 2024 (“Q2 2024”) the Firm accomplished all milestones below a Mission Funding Settlement with one oil-sands producer and as such acknowledged $1,950,000 income associated to that efficiency obligation (three months ended June 30, 2023 – $nil). Subsequent to June 30, 2024, a Check Knowledge Buy Settlement with a second oil-sands producer was terminated and as such the Firm will acknowledge $950,000 income within the third quarter of 2024. The remaining income of $1,950,000 from the third oil-sands producer can be acknowledged when all milestones have been met (which is anticipated within the second half of 2024), or the contract is terminated, whichever is earlier.

On April 11, 2024, Acceleware introduced that it had been awarded Section 2 of a potash ore drying undertaking by the Worldwide Minerals Innovation Institute (“IMII”). This Section was structured to advance Section 1 work and additional validate the usage of radio frequency power from Acceleware’s CTI for drying potash ore and different minerals. By the tip of Q2 2024, Section 2 was efficiently accomplished, together with the development and testing of a lab-scale prototype potash dryer. The findings have been introduced to IMII in July 2024. A proposal for Section 3 has been introduced to IMII and is at the moment below evaluate. Section 3 of the undertaking would come with the design, development and testing of a bigger shop-scale demonstration dryer. IMII, a non-profit group collectively funded by business and authorities, is dedicated to creating and implementing modern training, coaching, analysis and growth partnerships to assist a world-class minerals business. IMII’s minerals business members embody BHP, Cameco Company, Fission Uranium Corp., The Mosaic Firm and Nutrien Ltd.

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Acceleware continued to spend money on creating and defending new mental property with the entire variety of patents issued, allowed, utilized for, or in growth rising to a complete of 62.

QUARTER IN REVIEW

Income of $2.0 million was generated in Q2 2024 in comparison with $0.1 million within the three months ended June 30, 2023 (“Q2 2023”) and $0.04 million within the earlier quarter ended March 31, 2024 (“Q1 2024”). Income in Q2 2024 included $1.95 million in income associated to the RF XL Pilot as all milestones have been accomplished below contract for one oil-sands producer triggering income recognition of beforehand obtained milestone funds.

Whole complete earnings for Q2 2024 was $1.3 million in comparison with a complete lack of $1.1 million for Q2 2023 and a complete lack of $1.0 million for Q1 2024. Complete earnings in Q2 2024 was excessive attributable to income associated to the RF XL Pilot and receipt of presidency help from CRIN referring to prices incurred from July 1, 2023 to December 31, 2023. Finance bills in Q2 2024 have been larger as in comparison with Q2 2023 for curiosity on notes payable funding the Firm’s working capital. Complete earnings or loss in all durations was impacted by adjustments in worth of the spinoff monetary devices embedded throughout the convertible debenture. The adjustments in spinoff worth are pushed primarily by the fluctuation within the Firm’s share worth.

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Gross R&D bills incurred in Q2 2024 have been $0.7 million in comparison with $0.6 million in Q2 2023 and $0.5 million in Q1 2024. R&D spending was larger in Q2 2024 in comparison with Q2 2023 and Q1 2024 attributable to elevated spending associated to growth of the potash ore dryer. R&D exercise in Q2 2024 was associated to lab engineering, designing and testing, knowledge evaluation, and accomplice consultations. There was $0.6 million authorities help obtained in Q2 2024 and $nil in Q2 2023 and $nil in Q1 2024. The Firm obtained the primary CRIN fee in This autumn 2023 of $2.1 million and a second and third fee from CRIN totalling $0.6 million in Q2 2024. The Authorities of Alberta’s Innovation Employment Grant (“IEG”) to assist analysis and growth was efficient January 1, 2021 and gives a grant of as much as 20% of eligible R&D bills incurred in Alberta. This new grant successfully changed Alberta’s 10% scientific analysis and experimental growth refundable tax credit score that was eradicated as at December 31, 2019. The Firm met the eligibility standards, claimed eligible R&D expenditures and obtained $0.4 million within the three months ended March 31, 2023 associated to 2021 eligible expenditures and obtained $0.1 million within the three months ended September 30, 2023 associated to 2022 eligible expenditures. Subsequent to June 30, 2024, the Firm obtained $0.3 million associated to 2023 eligible expenditures. Authorities help offsets gross R&D prices.

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G&A bills incurred in Q2 2024 have been $0.4 million in comparison with $0.5 million in Q2 2023 and $0.5 million in Q1 2024. There have been decrease non-cash payroll associated prices incurred in Q2 2024 because of the timing of possibility grants and decrease salaries because the Firm continues to prioritize value management given unsure financial circumstances.

At June 30, 2024, Acceleware had destructive working capital of $2,460,058 (December 31, 2023 – destructive working capital of $1,985,372) together with $249,312 in money and money equivalents (December 31, 2023 – $951,569) and $927,696 in short-term notes payable (December 31, 2023 – $944,010). As of June 30, 2024, Acceleware additionally had $2,215,000 in long-term 10%, semi-annual curiosity, convertible debentures excellent, the principal quantity of which is owing 4 years from the date of problem or roughly Q1 2026. Fluctuations in non-cash working capital have been attributable to the timing of receipt and recognition of presidency and accomplice funding and associated R&D spending. Money and money equivalents decreased in Q1 2024 attributable to timing of funds of commerce payables. Rising the deficit is deferred income of $3,040,870 as at June 30, 2024 (December 31, 2022 – $4,350,000). Regardless of receiving non-refundable money funds for these quantities, the milestone funds haven’t met all necessities for income recognition below IFRS 15 Income from Contracts with Prospects. These quantities can be acknowledged as income and enhance shareholders’ fairness when RF XL Pilot heating is full or the information income contracts are terminated, whichever is earlier. The primary knowledge income associated to those contracts was acknowledged in Q2 2024 for $1,950,000.

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YEAR IN REVIEW

Income of $2.1 million was generated within the six months ended June 30, 2024 in comparison with $0.2 million for the six months ended June 30, 2023. Income for the six months ended June 30, 2024 included $1.95 million in income associated to the RF XL Pilot and quantities for software program and upkeep income for HPC. Income was larger as in comparison with 2023 attributable to income associated to the RF XL Pilot as all milestones have been accomplished below contract for one oil-sands producer triggering income recognition of beforehand obtained milestone funds.

Whole complete earnings for the six months ended June 30, 2024 was $0.3 million in comparison with complete lack of $1.4 million for the six months ended June 30, 2023 attributable to larger income as famous above and better authorities help. There are fluctuations in each durations associated to adjustments in honest worth of the spinoff monetary devices embedded within the convertible debentures.

Gross R&D bills for the six months ended June 30, 2024 have been $1.2 million in comparison with $1.4 million incurred through the six months ended June 30, 2023 attributable to larger R&D exercise in 2023 associated to the ultimate steps of the RF XL Pilot workover through the six months ended June 30, 2023. Federal and provincial authorities help of $0.6 million was acknowledged within the six months ended June 30, 2024 in comparison with $0.4 million for the six months ended June 30, 2023 because the RF XL Pilot nears completion.

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G&A bills incurred through the six months ended June 30, 2024 have been $0.9 million in comparison with $0.9 million for the six months ended June 30, 2023. The Firm continues to prioritize value administration.

ABOUT ACCELEWARE:

Acceleware is an innovator of clean-tech decarbonization applied sciences comprised of two enterprise models: Radio Frequency Heating Know-how and Seismic Imaging Software program.  

Acceleware is piloting RF XL, its patented low-cost, low-carbon manufacturing know-how for heavy oil and oil sands that’s materially completely different from any heavy oil restoration method used right this moment. Acceleware’s imaginative and prescient is that electrification of heavy oil and oil sands manufacturing could be made attainable by means of RF XL, supporting a transition to a lot cleaner power manufacturing that may rapidly bend the emissions curve downward. With clear electrical energy, Acceleware’s RF XL know-how may remove greenhouse fuel (GHG) emissions related to heavy oil and oil sands manufacturing. RF XL makes use of no water, requires no solvent, has a small bodily footprint, could be redeployed from website to website, and could be utilized to a mess of reservoir varieties. Acceleware can be engaged on the decarbonization of different industrial course of warmth purposes by means of its EM Powered Warmth know-how, which makes use of the Firm’s proprietary CTI. These embody a multi-phase EM Powered Warmth potash dryer undertaking at the moment underway with the Worldwide Minerals Improvements Institute in Saskatchewan, Canada.

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Acceleware and Saa Dene Group (co-founded by Jim Boucher) have created Acceleware | Kisâstwêw to boost the profile, adoption, and worth of Acceleware applied sciences. The shared imaginative and prescient of the partnership is to enhance the environmental and financial efficiency of the power sector by supporting beliefs which can be essential to Indigenous peoples, together with respect for land, water, and clear air.

The Firm’s seismic imaging software program options are state-of-the-art for prime constancy imaging, offering probably the most correct and superior imaging out there for oil exploration in advanced geologies. Acceleware is a public firm listed on Canada’s TSX Enterprise Change below the buying and selling image “AXE”.

NOTE REGARDING FORWARD-LOOKING INFORMATION AND OTHER ADVISORIES

This information launch comprises “forward-looking data” throughout the that means of Canadian securities laws. Ahead-looking data typically means details about an issuer’s enterprise, capital, or operations which can be potential in nature, and contains disclosure concerning the issuer’s potential monetary efficiency or monetary place. 

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The forward-looking data on this press launch could be recognized by phrases corresponding to “believes”, “estimates”, “plans”, “potential”, and “will”, and contains details about, the anticipated commercialization of RF XL, the anticipated value of the RF XL Pilot, the timing of the execution of the RF XL Pilot and the redeployment, anticipated financing required for the RF XL Pilot redeployment, and the anticipated financial and societal advantages of the RF XL know-how. Acceleware assumes that present value estimates are correct, present timelines won’t be delayed by both inner or exterior causes, that analysis and growth effort together with the commercial-scale check plans will lead to commercial-ready merchandise, and that future capital elevating efforts can be profitable.  

Precise outcomes could differ from the forward-looking data on this press launch attributable to sure materials danger components. These danger components are described intimately in Acceleware’s steady disclosure paperwork, that are filed on SEDAR at www.sedar.com. 

Acceleware assumes no obligation to replace or revise the forward-looking data on this press launch, except it’s required to take action below Canadian securities laws. 

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This information launch doesn’t represent a suggestion to promote or a solicitation of a suggestion to purchase any of the securities described on this launch in america. The securities haven’t been and won’t be registered below america Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities legal guidelines and might not be supplied or offered inside america or to U.S. individuals except registered below the U.S. Securities Act and relevant state securities legal guidelines or an exemption from such registration is on the market. 

DISCLAIMER

Neither the TSX Enterprise Change nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts accountability for the adequacy or accuracy of this launch.

For extra data:
Geoff Clark
Tel: +1 (403) 249-9099
geoff.clark@acceleware.com

Acceleware Ltd.
435 10^th Avenue SE
Calgary, AB, T2G 0W3
Canada
Tel: +1 (403) 249-9099
www.acceleware.com

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