VANCOUVER, British Columbia, June 05, 2020 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) ("SHARC" or the “Company”) has filed its financial results for the fourth quarter and fiscal year ended December 31, 2019. All figures are in CDN unless otherwise noted.
2019 Financial Highlights:
- Loss from continuing operations for the year ended December 31, 2019 was $3.3M, a decrease of $1.1M year over year.
- Through the restructuring of its operations, the Company has reduced its working capital deficit by approximately $1.6M, from $5.12M to $3.5M, between the interim period ended September 30, 2019 and the year ended December 31, 2019.
- Gross margin of $0.08M at 54% margin in 2019 compared to $0.25M at 46% margin in 2018.
- Disposed of the UK operations reducing a continued drain on cash balances and our financial commitments.
2019 Accomplishments
- Pivoted from the Design, Build, Finance and Operate (“DBFO”) or Energy Service Company (“ESCO”) model, a high upfront capital cost with long term residual income streams or payback, to a lower cost, higher return upfront model with a focus on equipment sales and leasing (“OEM”)
- Successfully reallocated internal resources from research and development and technical positions to sales and sales support positions
- Hired dedicated and skilled sales professionals to manage and generate leads with a focus to bring leads to a close.
- Review and reduced general and administrative spend and support focusing resources on sales and marketing activities.
- Successfully divested from UK Operations.
- Entered into a lease with the City of Vancouver for a one-year lease with the option to renew at $9,000 per month. The City of Vancouver is planning expansion of the False Creek Neighborhood Energy Utility with bidding beginning in late 2020.
Subsequent events
“SHARC has spent the fourth quarter of 2019 and year to date 2020 restructuring its operations to be focused on an OEM sales model, divesting the UK operations and hiring and successfully reallocating internal resources to sales and sales support positions,” says Hanspaul Pannu, Chief Financial Officer of SHARC International Systems Inc. “We have come a long way from 2019 and we don’t hide that we still have a long way to go. However, the road to profitability has never been clearer. 2020 is shaping up to be a monumental year in establishing waste water heat recovery as a viable solution supporting Electrification and Decarbonization.”
About SHARC International Systems
SHARC International Systems Inc. is a world leader in thermal heat recovery. SHARC systems recycle thermal energy from wastewater, generating one of the most energy efficient and economical systems for heating, cooling & hot water preheating for commercial, residential and industrial buildings. SHARC is publicly traded in Canada (CSE: SHRC), the United States (OTCQB: INTWF) and Germany (Frankfurt: IWIA).
Further information about the Company is available on our website at www.sharcenergy.com or under our profile on SEDAR at www.sedar.com.
ON BEHALF OF THE BOARD
“Lynn Mueller”
Chairman and Chief Executive Officer
For further information, please contact:
Jason Shepherd
SHARC International Systems Inc.
Telephone: (250) 212-2122
Email: jason.shepherd@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 by the use of 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'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 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 as a result of new information, future events or otherwise, except as required by applicable securities legislation.