SHARC Energy Announces Q1 2024 Financial Results

VANCOUVER, British Columbia, May 16, 2024 (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 three months ended March 31, 2024. All figures are in Canadian Dollars and in accordance with IFRS unless otherwise stated.

First Quarter Financial Highlights:

• As of May 16, 2024, the Company has a Sales Pipeline¹ of $17.0 million (M) and Sales Order Backlog² of $2.3M. Sales Pipeline saw a marginal increase of 1% or $0.1M while revenue recognition improved, drawing down Sales Order Backlog by $0.7M since April 29, 2024 disclosure. The Company has hit an inflection point in the maturity of its Sales Pipeline, giving management confidence that 2024 will be a transformative year for SHARC Energy.
  
  
• Revenue for the three months ended March 31, 2024 (“Q1 2024”) is $0.8M, representing ~50% of the full year revenue in 2023. On a year over year (YoY) basis, this represents a 6% increase versus the three months ended March 31, 2023 (“Q1 2023”).
  
  
• Gross margin for Q1 2024 stood at a solid 38%, demonstrating our resilience despite a slight decrease from the impressive 42% recorded in Q1 2023. Management remains optimistic that these margins align well with our expectations for the coming quarters.
  
  
• Working capital is $2.0M, which includes $0.5M of cash, as of March 31, 2024. The Company does not hold any debt, except for standard operating payables and liabilities. The leadership team is currently in discussions with working capital facility lenders to utilize the expanding Sales Order Backlog as a strategic tool to facilitate the funding required for the Company's ongoing growth initiatives.
  

Hanspaul Pannu, CFO of SHARC Energy, said, "The results of Q1 2024 confirms SHARC Energy’s pipeline has reached a key maturity milestone with the delivery of revenue previously reported as Sales Order Backlog on April 29, 2024. There are several projects indicating signs of conversion from Sales Pipeline to Sales Order Backlog which will supplement the Revenue recognized in Q1 2024 and affirm continued stability and growth of revenue in the near and long term. As the Company continues to balance our working capital and our Sales Pipeline, SHARC Energy is now able to leverage its Sales Order Backlog for access to working capital facilities that will support the growth of SHARC Energy. Securing these solutions will provide the Company with necessary balance sheet flexibility while reducing the reliance on equity investment. SHARC Energy is currently in the process of reviewing and soliciting term sheets from lenders."