Acceleware Ltd. Experiences 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 business course of warmth, as we speak introduced its monetary and working outcomes for the six months ended June 30, 2024 (all figures are in Canadian {dollars} until 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 at the side of 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 12 months 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:

Based mostly on optimistic outcomes so far, Acceleware stays assured that RF XL will turn out to be 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 intently with business companions to progress subsequent steps within the RF XL Pilot. An output of this work is the willpower that probably the most sensible path ahead entails 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 greater energy to be distributed within the reservoir for a sustained interval in a second section of heating. Please confer 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 Venture 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 Take a look at Information 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 will likely 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 using radio frequency vitality 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 presently below evaluation. Section 3 of the undertaking would come with the design, building and testing of a bigger shop-scale demonstration dryer. IMII, a non-profit group collectively funded by business and authorities, is dedicated to growing and implementing modern training, coaching, analysis and growth partnerships to assist a world-class minerals business. IMII’s minerals business members embrace BHP, Cameco Company, Fission Uranium Corp., The Mosaic Firm and Nutrien Ltd.

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Acceleware continued to spend money on growing and defending new mental property with the overall 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 acquired milestone funds.

Complete complete revenue 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 revenue in Q2 2024 was excessive on account of income associated to the RF XL Pilot and receipt of presidency help from CRIN regarding prices incurred from July 1, 2023 to December 31, 2023. Finance bills in Q2 2024 have been greater as in comparison with Q2 2023 for curiosity on notes payable funding the Firm’s working capital. Complete revenue or loss in all durations was impacted by modifications in worth of the by-product monetary devices embedded inside the convertible debenture. The modifications in by-product 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 greater in Q2 2024 in comparison with Q2 2023 and Q1 2024 on account of elevated spending associated to growth of the potash ore dryer. R&D exercise in Q2 2024 was associated to lab engineering, designing and testing, information evaluation, and associate consultations. There was $0.6 million authorities help acquired in Q2 2024 and $nil in Q2 2023 and $nil in Q1 2024. The Firm acquired the primary CRIN cost in This autumn 2023 of $2.1 million and a second and third cost 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 supplies 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 acquired $0.4 million within the three months ended March 31, 2023 associated to 2021 eligible expenditures and acquired $0.1 million within the three months ended September 30, 2023 associated to 2022 eligible expenditures. Subsequent to June 30, 2024, the Firm acquired $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 choice grants and decrease salaries because the Firm continues to prioritize value management given unsure financial circumstances.

At June 30, 2024, Acceleware had detrimental working capital of $2,460,058 (December 31, 2023 – detrimental 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 associate funding and associated R&D spending. Money and money equivalents decreased in Q1 2024 on account of timing of funds of commerce payables. Growing 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 Clients. These quantities will likely be acknowledged as income and improve shareholders’ fairness when RF XL Pilot heating is full or the info income contracts are terminated, whichever is earlier. The primary information 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 greater as in comparison with 2023 on account of 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 acquired milestone funds.

Complete complete revenue 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 on account of greater income as famous above and better authorities help. There are fluctuations in each durations associated to modifications in honest worth of the by-product 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 on account of greater 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 Expertise 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 totally different from any heavy oil restoration approach used as we speak. Acceleware’s imaginative and prescient is that electrification of heavy oil and oil sands manufacturing may be made attainable by RF XL, supporting a transition to a lot cleaner vitality 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, may be redeployed from website to website, and may be utilized to a mess of reservoir varieties. Acceleware can be engaged on the decarbonization of different industrial course of warmth purposes by its EM Powered Warmth know-how, which makes use of the Firm’s proprietary CTI. These embrace a multi-phase EM Powered Warmth potash dryer undertaking presently 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 vitality 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 obtainable for oil exploration in complicated geologies. Acceleware is a public firm listed on Canada’s TSX Enterprise Alternate below the buying and selling image “AXE”.

NOTE REGARDING FORWARD-LOOKING INFORMATION AND OTHER ADVISORIES

This information launch incorporates “forward-looking data” inside the which means of Canadian securities laws. Ahead-looking data usually 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 may be recognized by phrases comparable 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 will likely be profitable.  

Precise outcomes might range from the forward-looking data on this press launch on account of sure materials threat components. These threat 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, until 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 the USA. The securities haven’t been and won’t be registered below the USA Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities legal guidelines and might not be provided or bought inside the USA or to U.S. individuals until registered below the U.S. Securities Act and relevant state securities legal guidelines or an exemption from such registration is accessible. 

DISCLAIMER

Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) 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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