Acceleware Ltd. Reports Second Quarter 2024 Financial and Operating Results
CALGARY, Alberta — Acceleware Ltd. (“Acceleware” or the “Company”) (TSX-V: AXE) is a leading innovator in transformative technologies aimed at decarbonizing industrial process heat. Today, the Company shared its financial and operational results for the six months ending June 30, 2024 (all figures are in Canadian dollars unless otherwise specified). The results reflect contributions from Acceleware’s two business units: radio frequency (“RF”) heating for industrial applications utilizing the proprietary Clean Tech Inverter (“CTI”), including enhanced oil recovery (“RF XL”), and high-performance computing ("HPC") scientific software. This news release should be read alongside the Company’s unaudited interim condensed financial statements and accompanying notes for the six months ended June 30, 2024, as well as management’s discussion and analysis (“MDA”), along with the audited financial statements for the year ended December 31, 2023, notes, and MDA, all of which can be found on Acceleware’s website at www.acceleware.com or on www.sedarplus.ca.
Financial Highlights
Here are the financial highlights for the three and six months ending June 30, 2024:
- Revenue: $2,012,047 in Q2 2024, a significant increase from $69,407 in Q2 2023, and $2,055,641 in the first half of 2024 compared to $172,954 during the same period last year.
- Comprehensive Income (Loss): $1,263,914 for Q2 2024, compared to 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, up from $637,633 in Q2 2023; totaling $1,219,083 for six months compared to $1,390,001 last year.
- Government Assistance: $577,763 recognized during Q2 2024, with similar funding received in previous periods.
Operational Insights
Acceleware is optimistic about the potential of RF XL technology to contribute to the decarbonization of heavy oil and oil sands production. Throughout the first half of 2024, the Company has been working with industry partners to advance the RF XL Pilot. Recent developments suggest that redeploying subsurface components with upgraded RF XL downhole systems is the most feasible path forward. The Company is actively pursuing an additional $5 million in funding to support this initiative, having already secured partial non-dilutive funding contingent on the total amount raised. The outreach efforts are focused on demonstrating how this redeployment will improve power distribution capabilities within the reservoir during subsequent heating phases.
Project Funding Agreement Success
In Q2 2024, Acceleware successfully met 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 an anticipated revenue recognition of $950,000 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 builds on previous 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 developing new intellectual property, resulting in a total of 62 patents issued, allowed, or in development.
Quarterly Financial Overview
In Q2 2024, Acceleware generated revenue of $2.0 million, a significant increase from $0.1 million the previous year. This growth is primarily attributed to revenue from the RF XL Pilot as contractual milestones were achieved. The comprehensive income for this quarter was reported at $1.3 million, in contrast to a loss the previous year. Additionally, increased government support positively impacted the financial results.
Future Projections and Annual Review
The Company expects continued growth, reporting revenue of $2.1 million for the first half of the year, a substantial rise from $0.2 million during the same period last year. Acceleware is also closely managing its G&A expenses, demonstrating stability in challenging economic conditions.
About Acceleware
Acceleware is committed to providing innovative clean-tech decarbonization solutions, primarily through its Radio Frequency Heating Technology and Seismic Imaging Software. The patented RF XL technology marks a significant advancement in heavy oil recovery practices and aims to facilitate a transition towards cleaner energy production, thereby reducing greenhouse gas emissions. Additionally, Acceleware addresses industrial heating challenges with its EM Powered Heat technology, which is 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 a comprehensive income of $1,263,914, indicating substantial growth compared to the previous year.
2. How does Acceleware's RF XL technology contribute to decarbonization?
The RF XL technology offers a low-cost, low-carbon solution for heavy oil production, which could significantly reduce the greenhouse gas emissions associated with this sector.
3. What is the status of the potash ore drying project?
Phase 2 of the potash ore drying project has been successfully completed, and a proposal for Phase 3 is currently under review by the IMII.
4. How many patents does Acceleware currently hold?
Acceleware has a total 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 emphasizes cost control, maintaining stable G&A expenses despite fluctuations in revenue and working capital.
