Sharc Energy Announces a 2564 Percent Increase in Fourth Quarter Revenue and 328 Percent Increase for Fiscal 2021

Rhea-AI Summary

SHARC International Systems Inc. (OTCQB: INTWF) reported significant revenue growth in its fourth quarter and fiscal year ended December 31, 2021. Q4 2021 revenue reached $0.98M, a remarkable 2564% increase year-over-year. For YE 2021, revenue totaled $2.70M, marking a 328% increase from the previous year. However, the company experienced an Adjusted EBITDA loss of $0.40M in Q4 and $1.46M for the year. As of April 18, 2022, it holds a sales pipeline of $6.02M but faces a 62% decrease in sales order backlog. Working capital stands at $3.35M, promoting a positive outlook for continued operations.

Positive

• Q4 2021 revenue of $0.98M, up 2564% YoY.
• FY 2021 revenue of $2.70M, up 328% YoY, the largest in company history.
• Adjusted EBITDA loss improved by 28% compared to Q4 2020.
• Adjusted EBITDA loss for YE 2021 improved by 21% from 2020.
• Sales pipeline increased by 15% to $6.02M as of April 2022.
• Sufficient working capital of $3.35M for the next 12 months.

Negative

• Q4 2021 loss of $0.78M, slightly better than Q4 2020.
• FY 2021 loss increased to $3.06M, a $0.15M rise from the previous year.
• Sales order backlog decreased by 62% from previous disclosure.

VANCOUVER, British Columbia., April 19, 2022 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) ("SHARC Energy" or the “Company”) announces it has filed financial results for the fourth quarter and the year ended December 31, 2021. All figures are in Canadian Dollars unless otherwise stated and in accordance with IFRS.

Fourth Quarter and Year End Highlights:

• Revenue for the three months ended December 31, 2021 (“Q4 2021”) was $0.98M, representing an increase of 2564% or 0.94M from the three months ended December 31, 2020 (“Q4 2020”).
  
  
• Revenue for the year ended December 31, 2021 (“YE 2021”) was $2.70M, representing an increase of 328% or $2.07M from the year ended December 31, 2020 (“YTD 2020”). This represents the largest revenue year in the Company’s history.
  
  
• The Company reported an Adjusted EBITDA¹ loss of $0.40M in Q4 2021 which represents a 28% or $0.15M improvement over the Q4 2020 Adjusted EBITDA loss. The Company also reported an Adjusted EBITDA loss of $1.46M in YE 2021 compared to $1.86M in YTD 2020, representing an improvement of 21% or $0.40M from YE 2020.
  
  
• As of April 18, 2022, the Company has Sales Pipeline² of $6.02M. This represents a 15% growth from previous disclosure on November 15^th, 2021. Furthermore, the Company has Sales Order Backlog³ of $0.56M, which represents a 62% decrease from previous disclosure on November 15^th, 2021. The aggregate Sales Pipeline and Sales Order Backlog decreased by 2% from the previous disclosure which indicates the Company was able to replenish what has been recognized in Revenue to date. The Company continues to see growth in its leads and opportunities and anticipates continued growth of these figures over 2022.
  
  
• Loss for Q4 2021 and YE 2021 was $0.78M and $3.06M, representing a decrease of $0.17M from Q4 2020 and an increase of $0.15M from YE 2020. This increase in loss YE 2021 compared to YTD 2020 is largely driven by a gain on settlement of debt and revaluation of warrants on debt settlement reported in YE 2020 which improved the loss by $0.41M.                                                                          
  
  
• The Company has $3.35M of working capital as of December 31, 2021. Management anticipates it has sufficient working capital to maintain its activities for the subsequent 12 months.
  

“While we have delivered outstanding performance this past year, our new targets indicate we have many more opportunities to increase revenue as more people become aware of the economic and environmental benefits of turning wastewater into energy. We are continuing to dynamically manage our business while remaining focused on executing against our business strategy to drive long-term profitable growth,” says says Lynn Mueller, Chief Executive Officer of SHARC Energy. “We have a promising future ahead as we take Sharc Energy’s performance to the next level and drive significant shareholder value.”

YE 2021 Highlights and Subsequent Events

• National Western Center. The National Western Center is pioneering the largest scale wastewater district-energy innovation in North America to date. The National Western Center will rely on two SHARC™ wastewater recovery systems placed in the heart of its 3.8-megawatt (MW) district energy system, creating a low-carbon campus that is sustainable and regenerative. The first phase of development is expected to recover the thermal energy from 3,000 gallons of wastewater every minute, preventing 2,600 metric tons of carbon dioxide annually from being emitted into the atmosphere.
  
  
• Congresswoman Marcy Kaptur visit to DC Water. U.S. House Representative Marcy Kaptur, Chairwoman of the House Appropriations Subcommittee on Energy and Water Development, toured the U.S. capital’s DC Water Headquarters (“DC Water HQ”) on March 9, 2021. “I have never seen a technology that could have as positive of an impact on energy as what I have seen at the DC Water HQ,” said Congresswoman Kaptur after her visit.
  
• WashOut Laundry Retrofit. The Company completed a retrofit installation of a PIRANHA T15 into WashOut Laundry, representing the first PIRANHA retrofit approved under the FortisBC Custom Performance Program. WashOut is projected to save over 2,100 gigajoules per year of natural gas, saving 105 tonnes of greenhouse gas emissions annually.

• ELLA. A 45-suite multi-family residential project in Vancouver, B.C. seeking to reduce its energy costs and carbon footprint, while future proofing against rising carbon tax, has installed a PIRANHA T10 HC. The unit is estimated to save the project 524 tonnes of CO₂ emissions reduction over its lifespan.
  
  
• Trico LivingWell. Calgary’s newest older adult community will be installing two PIRANHA T15’s in two thoughtfully-planned residences. The PIRANHA T15’s will reduce up to 100% of the CO₂ emissions involved in the hot water production for the residences. These two units represent the 2^nd and 3^rd installation of a PIRANHA system in Alberta.
  
• lelǝḿ. A 1,200 residential unit master planned development’s heating and cooling needs will be met by utilizing a SHARC Energy low-carbon wastewater energy exchange system as part of a centralized energy facility. The system shipped in Q4 2021 and commissioned in Q1 2022.
  
  
• GEC King Edward. Vancouver’s largest student housing community in Metro Vancouver Global Education City’s (“GEC”) will be using a PIRANHA T10 in its King Edward project, a 46,000 square foot four-story rental apartment with six two-story townhouses that will accommodate approximately 180 occupants. This system shipped in Q4 2021.
  
• $3.56 Million (M) raised through capital markets and security exercises. Since the beginning of 2021 to the date of the MD&A, the Company raised $0.45M (gross) through non-brokered equity and equity unit private placements, $2.82M through the exercise of stock options and warrants and $0.29M through the exercise of debenture warrants.
  
• Conversion of Convertible Debt Face Value of $1.61M. During YE 2021 and subsequently to date, the Company has converted $1.59M of convertible debt.
  

For complete financial information for the fourth quarter and the year ended December 31, 2021, please see the Audited Annual 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

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 Officer		Director of Marketing and 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 Adjusted EBITDA is a Non-IFRS measure. Please see discussion and reconciliation of Alternative Performance Measures and Non-IFRS measures in the YE 2021 MD&A.
² Sales Pipeline is a Non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the YE MD&A.
³ Sales Order Backlog is a Non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the YE 2021 MD&A.

FAQ

What are the revenue figures for SHARC International Systems in Q4 2021?

SHARC International Systems reported revenue of $0.98M for Q4 2021, reflecting a 2564% increase compared to Q4 2020.

How has SHARC International Systems performed in 2021?

For the fiscal year 2021, SHARC International Systems achieved a revenue of $2.70M, a 328% increase from 2020, making it the largest revenue year in the company's history.

What is the sales pipeline and backlog for SHARC as of April 2022?

As of April 2022, SHARC has a sales pipeline of $6.02M, although the sales order backlog has decreased by 62% from the previous report.

What is the working capital for SHARC International Systems?

SHARC International Systems reported working capital of $3.35M as of December 31, 2021, which is expected to support its activities for the next 12 months.

Did SHARC International Systems experience any changes in Adjusted EBITDA in 2021?

Yes, SHARC reported an Adjusted EBITDA loss of $0.40M in Q4 2021, which showed a 28% improvement compared to Q4 2020. For the fiscal year, the loss was $1.46M, improving by 21% from the previous year.