VANCOUVER, British Columbia, Aug. 25, 2026 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) ("SHARC Energy" or the "Company") is pleased to announce it has filed financial results for the three and six months ended June 30, 2026. All figures are in Canadian Dollars and in accordance with IFRS unless otherwise stated.
Second Quarter Financial Highlights:
-- As of August 25, 2026, the Company has a Sales Pipeline(1) of $17.9
million and Sales Order Backlog(2) of $5.4 million. These figures
represent decreases of 6% and 21% from the Company's June 1, 2026
disclosure. The main reason for the decrease in backlog was a
cancellation of a large District Energy project in Ontario. The combined
Sales Pipeline and Sales Order Backlog remains strong at approximately
$23.3 million.
-- Since the beginning of 2026, the Company has secured approximately $5.1
million in SHARC Energy equipment orders, representing an increase of 59%
from the $3.4 million Sales Order Backlog reported in the Company's final
disclosure of 2025. The orders span multiple geographic markets and
end-use applications and reflect the continued maturation of the
Company's Sales Pipeline.
-- Revenue for the three months ended June 30, 2026 ("Q2 2026") was $0.27
million, compared with $0.85 million for the three months ended June 30,
2025 ("Q2 2025"), a decrease of approximately 68%. The Company continues
to experience quarter-to-quarter revenue variability resulting from the
timing of project milestones, production schedules and equipment
deliveries due to larger and more complex projects.
-- Gross margin for Q2 2026 was 41.4%, compared with approximately 44.0% in
Q2 2025. Gross margins continue to vary on product mix, project scope,
geography and the stage of completion of individual projects.
-- During Q2 2026, the Company reported a net loss of $0.92 million and an
Adjusted EBITDA(3) loss of $0.77 million, compared with a net loss of
$0.82 million and Adjusted EBITDA loss of $0.50 million during Q2 2025.
-- Revenue for the six months ended June 30, 2026 was $0.76 million,
compared with $1.86 million during the corresponding period of 2025. The
Company reported a net loss of $1.83 million and an Adjusted EBITDA loss
of $1.53 million, compared with a net loss of $1.74 million and Adjusted
EBITDA loss of $1.14 million for the first six months of 2025.
-- The Company ended the quarter with $1.40 million of cash and positive
working capital of approximately $0.56 million, compared with cash of
$0.26 million and negative working capital of approximately $0.17 million
at December 31, 2025.
-- During the first six months of 2026, the Company completed a $2.5 million
non-brokered private placement of unsecured convertible debentures,
strengthening the Company's liquidity and providing additional capital to
support operations and execution of its Sales Order Backlog and Sales
Pipeline.
____________________________
(1) Sales Pipeline is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q2 2026 MD&A.
(2) Sales Order Backlog is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q2 2026 MD&A.
(3) Adjusted EBITDA is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q2 2026 MD&A.
Michael Albertson, President of SHARC Energy, said "While our second quarter revenue reflects the timing of project execution and equipment deliveries, the underlying commercial indicators of the business remain encouraging. Our $5.4 million Sales Order Backlog is 59% higher than the backlog reported at the end of 2025, while our $17.9 million Sales Pipeline has been maintained despite approximately $5.1 million of new equipment orders being secured since the beginning of the year.
The ability to convert opportunities into orders while continuing to replenish the pipeline is an important indicator of the underlying demand for SHARC Energy's technology. Our current backlog provides significantly greater forward revenue visibility than the Company has historically had, although the timing of individual projects and revenue recognition will continue to create variability between reporting periods.
The first half of 2026 also demonstrated the increasing diversity of the markets where our technology can be deployed. Projects include district energy, transportation infrastructure, wastewater treatment, multi-family residential and U.S. government-affiliated applications. At the same time, the commercial introduction of the MANTA system expands our addressable market into additional wastewater, hydronic and thermal energy applications, including wastewater treatment facilities, data centers and district heating and cooling systems.
We continue to see opportunities developing across both our established markets and newer applications for our technology. Our focus remains on working with customers, engineering partners and representatives to advance projects through the sales cycle, convert backlog into deliveries and continue building the pipeline behind it."
Shane Dungey, Interim Chief Executive Officer and Executive Vice Chair of SHARC Energy, commented "The commercial progress Michael and the team have made provides a strong foundation as we enter this next phase for SHARC Energy. The $2.5 million financing completed during the first half of the year has strengthened our liquidity, and as at June 30, 2026, the Company had approximately $1.4 million of cash and positive working capital of approximately $0.56 million.
Following the recently announced leadership changes, our priorities are straightforward: disciplined execution, converting the existing backlog into revenue, maintaining appropriate cost and capital discipline, and ensuring that the Company is positioned to capitalize on the opportunities being developed across its markets.
An important part of that work will also be evaluating opportunities to evolve and innovate our business model with the objective of developing more consistent and recurring sources of revenue over time. As our projects have become larger and more complex, the timing of project milestones and equipment deliveries has historically resulted in variability between reporting periods. We believe there are opportunities to complement our existing equipment sales model in ways that can provide greater revenue visibility, and reduce the impact of that variability as the business grows.
We have a substantially larger order backlog than we did entering the year, a $17.9 million Sales Pipeline and an expanding portfolio of applications for SHARC Energy's technology. Our focus for the balance of 2026 will be on translating those commercial opportunities into improved financial performance while continuing to build a stronger, more focused and increasingly predictable business for our customers, employees and shareholders."
Q2 2026 Key Highlights and Subsequent Events
-- Sales Order Backlog and Sales Pipeline. As of August 25, 2026, the
Company reported a Sales Order Backlog of approximately $5.4 million and
a Sales Pipeline of approximately $17.9 million. These represent
increases of approximately 60% and 8%, respectively, from the Company's
December 1, 2025 disclosure.
-- Approximately $5.1 million of Equipment Orders Secured in 2026. Since the
beginning of 2026, the Company has secured approximately $5.1 million in
SHARC Energy equipment orders. Projects include a Vancouver-based
district energy system, a major U.S. West Coast airport, a Calgary
wastewater treatment plant, a multi-family senior housing retrofit on
Staten Island, New York, and the Naval Postgraduate School's historic
Hotel Del Monte in Monterey, California. These projects demonstrate both
geographic and sector diversification across SHARC Energy's addressable
markets
-- PIRANHA selected by National Laboratory of the Rockies $(NLR)$ Project.
SHARC Energy announced it has received a purchase order from the NLR for
a PIRANHA HC for a program focused on advancing high-efficiency domestic
hot water retrofit solutions for large institutional facilities, one of
the most energy-intensive and difficult-to-modernize building systems
across the Department of Defence (DoD), infrastructure. The initiative
aims to validate scalable, cost-effective technologies that improve
building performance, reduce operating costs, and enhance energy
resilience. This project was completed and the equipment was shipped
subsequent to June 30, 2026.
-- $2.5M Convertible Debenture Financing Completed. During the first half of
2026, SHARC Energy completed a non-brokered private placement of
unsecured convertible debentures for aggregate principal proceeds of $2.5
million. The debentures bear interest at 8.0% per annum, mature three
years following issuance and are convertible into common shares at $0.125
per share, subject to the terms of the debentures.
-- Commercial Launch of new product MANTA System. The Company is pleased to
announce that it has secured a purchase order for its newly introduced
MANTA system to be deployed at a Wastewater Treatment Plant in Calgary,
Alberta.
-- SHARC Systems Shipped to US Government-Affiliated Project. The Company
announced the shipment of two SHARC 880 WET Systems to a U.S.
government-affiliated project. Further information about the project will
be released at a later stage.
-- Strengthened Intellectual Property Portfolio. SHARC Energy has been
granted patents covering its latest SHARC wastewater heat exchange system
in the United States and Europe, complementing its existing Canadian
patent. The Company has also pursued additional national-phase patent
applications across several international markets.
-- Executive Leadership Transition. Subsequent to quarter-end, the Board
approved a series of executive leadership changes as part of the
Company's ongoing strategic evolution. Shane Dungey was appointed Interim
Chief Executive Officer and Executive Vice Chair, Michael Albertson was
appointed President, and Board Chairman Fred Andriano was appointed
Interim Chief Financial Officer, Treasurer and Corporate Secretary. Lynn
Mueller stepped away from his day-to-day responsibilities with the
Company, with the Board intending to finalize a consulting agreement
focused on business development and strategic growth initiatives, subject
to Board ratification. The Company also concluded its contractual
relationship with Hanspaul Pannu, former Chief Financial Officer.
For complete financial information for the three and six months ended June 30, 2026, please see the Condensed Consolidated Interim 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 wastewater based thermal energy transfer. SHARC Energy's systems exchange thermal energy with wastewater, generating one of the most energy-efficient and economical systems for heating, cooling & hot water production for commercial, residential and industrial buildings along with thermal energy networks, commonly referred to as "District Energy".
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 | Customers | LinkedIn | YouTube | PIRANHA | SHARC
ON BEHALF OF THE BOARD
Fred Andriano
Chairman
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. Forward-looking statements are provided for the purpose of assisting readers in understanding management's expectations and plans and may not be appropriate for other purposes. SHARC Energy's actual results could differ materially from those anticipated in this forward-looking information because 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.
For investor inquiries, please contact: Shane Dungey Chief Executive Officer (In SHARC Energy Telephone: 403.389.9911 Email: shane.dungey@sharcenergy.com For media inquiries, please contact: John Louis Fahie Marketing SHARC Energy Telephone: 604.475.7710 Ext.109 Email: johnlouis.fahie@sharcenergy.com