Acceleware Ltd. Studies 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, at present 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 items, 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 along 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 so far, Acceleware stays assured that RF XL will grow to be viable as a vital expertise 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 willpower that essentially the most sensible path ahead entails a redeployment of all subsurface elements 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 venture with them. The first outreach message is that the redeployment is predicted to allow greater energy to be distributed within the reservoir for a sustained interval in a second section of heating. Please discuss with the MDA for a whole 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 predicted 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 venture by the Worldwide Minerals Innovation Institute (“IMII”). This Section was structured to advance Section 1 work and additional validate using 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 presently below overview. Section 3 of the venture 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 improvement partnerships to help 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 put money into creating and defending new mental property with the entire variety of patents issued, allowed, utilized for, or in improvement 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 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 because 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 earnings or loss in all durations was impacted by adjustments in worth of the by-product monetary devices embedded throughout the convertible debenture. The adjustments 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 because of elevated spending associated to improvement of the potash ore dryer. R&D exercise in Q2 2024 was associated to lab engineering, designing and testing, information evaluation, and companion 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 help analysis and improvement 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 improvement 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 price management given unsure financial circumstances.

At June 30, 2024, Acceleware had unfavorable working capital of $2,460,058 (December 31, 2023 – unfavorable 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 difficulty or roughly Q1 2026. Fluctuations in non-cash working capital have been attributable to the timing of receipt and recognition of presidency and companion funding and associated R&D spending. Money and money equivalents decreased in Q1 2024 because 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 Prospects. These quantities can 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 because 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 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 because of greater income as famous above and better authorities help. There are fluctuations in each durations associated to adjustments in truthful 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 throughout the six months ended June 30, 2023 because of greater R&D exercise in 2023 associated to the ultimate steps of the RF XL Pilot workover throughout 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 throughout 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 price administration.

ABOUT ACCELEWARE:

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

Acceleware is piloting RF XL, its patented low-cost, low-carbon manufacturing expertise for heavy oil and oil sands that’s materially totally different from any heavy oil restoration approach used at present. Acceleware’s imaginative and prescient is that electrification of heavy oil and oil sands manufacturing might be made doable by means of RF XL, supporting a transition to a lot cleaner power manufacturing that may shortly bend the emissions curve downward. With clear electrical energy, Acceleware’s RF XL expertise might get rid of greenhouse gasoline (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, might be redeployed from web site to web site, and might be utilized to a large number of reservoir sorts. Acceleware can also be engaged on the decarbonization of different industrial course of warmth purposes by means of its EM Powered Warmth expertise, which makes use of the Firm’s proprietary CTI. These embody a multi-phase EM Powered Warmth potash dryer venture 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 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 top constancy imaging, offering essentially the most correct and superior imaging accessible for oil exploration in advanced 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 info” throughout the that means of Canadian securities laws. Ahead-looking info typically means details about an issuer’s enterprise, capital, or operations which can be potential in nature, and consists of disclosure concerning the issuer’s potential monetary efficiency or monetary place. 

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The forward-looking info on this press launch might be recognized by phrases similar to “believes”, “estimates”, “plans”, “potential”, and “will”, and consists of details about, the anticipated commercialization of RF XL, the anticipated price 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 expertise. Acceleware assumes that present price estimates are correct, present timelines is not going to be delayed by both inner or exterior causes, that analysis and improvement effort together with the commercial-scale take a look at plans will end in commercial-ready merchandise, and that future capital elevating efforts can be profitable.  

Precise outcomes could range from the forward-looking info on this press launch because of sure materials danger elements. These danger elements 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 info 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 supplied 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 offered. 

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 duty for the adequacy or accuracy of this launch.

For extra info:
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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