Acceleware Ltd. Announces Impressive Q2 2024 Results
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Acceleware Ltd. Reports Second Quarter 2024 Financial and Operating Results
CALGARY, Alberta — Acceleware Ltd. (“Acceleware” or the “Company”) (TSX-V: AXE), a leading innovator of transformative technologies targeting the decarbonization of industrial process heat, today announced its financial and operating results for the six months ended June 30, 2024 (all figures are in Canadian dollars unless otherwise noted). Acceleware’s results reflect contributions from the Company’s two business units, radio frequency (“RF”) heating for industrial applications using the Company’s proprietary Clean Tech Inverter (“CTI”) including enhanced oil recovery (“RF XL”), and high-performance computing ("HPC”) scientific software. This news release should be read in conjunction with the Company’s unaudited interim condensed financial statements and the accompanying notes for the six months ended June 30, 2024 and management’s discussion and analysis (“MDA”) thereto, together with the audited financial statements for the year ended December 31, 2023, notes and MDA thereto, all of which are available on Acceleware’s website at www.acceleware.com or on www.sedarplus.ca.
Financial Highlights
The financial highlights for the three and six months ended June 30, 2024 include:
- Revenue: $2,012,047 in Q2 2024 compared to $69,407 in Q2 2023 and $2,055,641 in the first half of 2024 against $172,954 in the same period last year.
- Comprehensive Income (Loss): $1,263,914 for Q2 2024 versus a loss of $(1,135,498) for Q2 2023; and $293,943 against $(1,391,115) for the first two quarters of 2023.
- Gross R&D Expenditures: $717,968 in Q2 2024 compared to $637,633 in Q2 2023; totaling $1,219,083 for six months against $1,390,001 last year.
- Government Assistance: $577,763 recognized during Q2 2024, with similar funding received in prior periods.
Operational Insights
Acceleware remains optimistic regarding the RF XL technology's potential role in decarbonizing heavy oil and oil sands production. Throughout the first half of 2024, the Company has been collaborating with industry partners to progress the RF XL Pilot. Recent developments indicate that redeploying subsurface components with upgraded RF XL downhole systems is the most feasible approach moving forward. The Company is actively seeking an additional $5 million in funding to facilitate this effort, having already secured partial non-dilutive funding contingent on the total amount raised. The focus of outreach efforts is to explain how the redeployment will enhance power distribution capabilities within the reservoir during subsequent heating phases.
Project Funding Agreement Success
For Q2 2024, Acceleware achieved all milestones under a Project Funding Agreement with an oil-sands producer, resulting in the recognition of $1,950,000 in revenue. Additionally, a Test Data Purchase Agreement was terminated, leading to a $950,000 revenue recognition anticipated in Q3 2024.
Advancements in Research and Development
On April 11, 2024, Acceleware was awarded Phase 2 of a potash ore drying project by the International Minerals Innovation Institute (IMII). This phase built upon prior work to further validate the use of RF energy for mineral drying. By the end of Q2 2024, a lab-scale prototype was successfully completed, with findings presented to IMII in July 2024. A proposal for Phase 3, which involves a larger demonstration dryer, is currently under review. IMII is committed to fostering innovative partnerships that enhance Canada's minerals industry.
Intellectual Property and Technology Development
The Company continues to invest in new intellectual property, resulting in a total of 62 patents issued, allowed, or in development.
Quarterly Financial Overview
For Q2 2024, Acceleware's generated revenue reached $2.0 million, surging from the previous year’s $0.1 million. This increase is attributed mainly to RF XL Pilot revenue captured as contractual milestones were met. Comprehensive income for this quarter was noted at $1.3 million compared to a loss the previous year. Furthermore, increased government support contributed favorably to financial results.
Future Projections and Annual Review
The Company anticipates continued growth, with a reported revenue of $2.1 million for the first half of the year, highlighting a substantial increase from $0.2 million in the same timeframe last year. Acceleware continues to manage G&A expenses closely, reflecting stability in challenging economic conditions.
About Acceleware
Acceleware is dedicated to innovative clean-tech decarbonization solutions, primarily through its Radio Frequency Heating Technology and Seismic Imaging Software. The patented RF XL technology represents a significant advancement in heavy oil recovery practices and aims to facilitate a shift towards much cleaner energy production, thereby reducing greenhouse gas emissions. Additionally, Acceleware seeks to address industrial heating challenges through its EM Powered Heat technology, currently being piloted in a potash drying project.
Frequently Asked Questions
1. What were Acceleware's main financial highlights for Q2 2024?
Acceleware reported a revenue of $2,012,047 for Q2 2024 and comprehensive income of $1,263,914, reflecting significant growth compared to the previous year.
2. How does Acceleware's RF XL technology contribute to decarbonization?
The RF XL technology provides a low-cost, low-carbon approach to heavy oil production, which could significantly reduce greenhouse gas emissions associated with this industry.
3. What is the status of the potash ore drying project?
Phase 2 of the potash ore drying project was successfully completed, with a proposal for Phase 3 currently under review by the IMII.
4. How many patents does Acceleware currently hold?
Acceleware has a portfolio of 62 patents that are issued, allowed, applied for, or in development to protect its innovations.
5. How does Acceleware manage its expenses?
The Company focuses on cost control, with G&A expenses remaining stable despite fluctuations in revenue and working capital.
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