Saturday, November 26, 2022

Acceleware Ltd. Reviews Third Quarter 2022 Monetary and Working Outcomes

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Acceleware Limited

Acceleware Restricted

CALGARY, Alberta, Nov. 23, 2022 (GLOBE NEWSWIRE) — Acceleware® Ltd. (“Acceleware” or the “Firm”) (TSX-V: AXE), a number one developer of applied sciences focusing on low-cost and clear extraction of heavy oil and bitumen, right this moment introduced its monetary and working outcomes for the three and 9 months ended September 30, 2022 (all figures are in Canadian {dollars} except in any other case famous). Acceleware’s quarter finish outcomes mirror contributions from the Firm’s two enterprise items, comprised of radio frequency heating expertise (“RF Heating”), a cheap and environmentally pleasant various to steam assisted gravity drainage (“SAGD”) for the extraction of heavy oil and bitumen by means of its proprietary RF XL heating expertise, together with high-performance scientific computing functions (“HPC”). This information launch needs to be learn along side the Firm’s unaudited interim condensed monetary statements and the accompanying notes for the three and 9 months ended September 30, 2022, and administration’s dialogue and evaluation (“MD&A”) thereto, along with the audited monetary statements for the yr ended December 31, 2021, notes and MD&A thereto, all of which can be found on Acceleware’s web site at www.acceleware.com or on SEDAR at www.sedar.com.

HIGHLIGHTS

The Firm continues to make progress on the RF XL commercial-scale pilot being performed close to Marwayne, Alberta (“RF XL Pilot”) and based mostly on preliminary observations, stays assured that RF XL will develop into viable as a essential expertise within the effort to decarbonize heavy oil and oil sands manufacturing. As famous in the newest RF XL Pilot replace launched on October 20, 2022, the heating nicely workover program is underway. Planning and execution of the workover program is in response to wreck incurred to the fibre optic distributed temperature sensing (DTS) system within the heating nicely throughout a upkeep operation on the RF XL Pilot, in late July 2022. Although not a core element of the RF XL expertise itself, the DTS is necessary to knowledge gathering and energy regulation to make sure the system operates inside specified parameters. At the side of the restore of the DTS, the Firm will take the chance to take away and examine sure downhole elements of the RF XL system, to achieve priceless info relating to the preliminary efficiency of the RF energy transmission system. The Firm’s workover plans included enter and evaluation from business companions, sourcing alternative elements and securing service distributors. Upon completion of the workover, heating operations and additional testing are anticipated to renew.

Monetary highlights for the three and 9 months ended September 30, 2022:

 

Three Months Ended

9 Months Ended

$

Sept 30, 2022

Sept 30, 2021

Sept 30, 2022

Sept 30, 2021

Income

53,282

297,226

255,237

665,740

Complete loss

1,000,346

1,103,068

3,796,255

2,324,475

Gross R&D expenditures

592,442

3,992,639

4,454,625

7,421,670

RF XL Pilot deferred income

1,000,000

1,200,000

2,000,000

 

 

 

 

 

The Firm had money readily available of $0.2 million, as much as $1.6 million of quantities dedicated however not but acquired or receivable from three main oil-sands producers, and unfavorable working capital, excluding money, of $1.9 million. The Firm actively manages its money circulation necessities with a mixture of money generated from operations, exterior funding, and capital elevating actions. On November 10, 2022, the Firm closed a non-public placement of items for complete gross proceeds of $1,800,000. The proceeds shall be used to fund a portion of the workover for the commercial-scale pilot check of the RF XL expertise and for basic company functions.

As well as, current highlights through the three months ended September 30, 2022 included:

  • Earlier than a pause for the workover described above, the CTI had been operational for seven consecutive months, one thing that has by no means been achieved earlier than.

  • The Firm efficiently injected energy into the transmission traces for over 200 days previous to the workover, a big milestone. Sustained heating of the formation was noticed across the RF XL nicely previous to a pause in operations for a workover.

  • Oil manufacturing from the RF XL Pilot nicely commenced in April 2022 and continued throughout Q3 2022, with shipments and proceeds recorded as an offset to R&D bills.

There are 13 patents granted or allowed to guard numerous proprietary applied sciences associated to Acceleware’s mental property, and 31 patent functions pending or underneath improvement. The Firm makes use of an built-in technique to IP safety involving a mixture of patenting and commerce secrets and techniques, working carefully with the patent places of work and mental property advisors.

FINANCIAL SUMMARY

Gross R&D spending in Q3 2022 was considerably decrease than the identical quarter within the prior yr as operations for the RF XL Pilot started in early March 2022 and continued by means of the quarter. Operation of the RF XL Pilot has a a lot decrease price than set up and building which occurred for many of Q3 2021 till finish of Q1 2022. Operational spending in Q3 2022 in comparison with Q2 2022 was additionally decrease as there have been extra prices incurred in Q2 2022 to ramp up the ability. Cumulative RF XL Pilot bills as at September 30, 2022 have been roughly $24.8 million (December 31, 2021 – $20.4 million). The remaining money dedicated however not but acquired from SDTC, ERA and Alberta Innovates, together with holdbacks receivable was $1.5 million as at September 30, 2022 (December 31, 2021 – $2.9 million) and quantities dedicated however not but acquired or receivable from three main oil-sands producers have been $1.6 million as at September 30, 2022 (December 31, 2021 – $2.8 million).

QUARTER IN REVIEW

Income in Q3 2022 was primarily generated from upkeep income with software program income decrease on account of much less demand for FDTD and seismic software program. Acceleware acquired non-refundable milestone money funds for the RF XL Pilot of $nil in Q3 2022 in comparison with $1,000,000 in Q3 2021 and $0.8 million in Q2 2022, all of which have been recorded in deferred income.

Complete loss in Q3 2022 and Q2 2022 was positively impacted by the unrealized achieve on by-product devices inside the convertible debenture. These modifications in worth are pushed primarily by the fluctuation within the Firm’s share worth. Moreover, R&D bills and authorities help have been decrease in Q3 2022 and Q2 2022 in comparison with Q3 2021 on account of much less expenditures required for heating operations of the RF XL Pilot.

Analysis and improvement (“R&D”) bills have been decrease in Q3 2022 in comparison with Q3 2021 and Q2 2022 due to decrease prices for working the RF XL Pilot in comparison with the prices incurred for drilling, completion, and building. The RF XL Pilot started operations in April 2022 and incurred extra prices in Q2 2022 for initialization however then skilled decrease and extra constant prices in Q3 2022. Authorities help usually reduces R&D bills; nevertheless, all authorities help had been absolutely acknowledged on the finish of Q2 2022. There was $3.0 million authorities help acknowledged in Q3 2021 and $0.2 million acknowledged in Q2 2022, offsetting gross R&D prices.

Common and administrative (“G&A”) bills incurred in Q3 2022 have been $0.5 million in comparison with $0.4 million in Q3 2021 and $0.5 million in Q2 2022. Further authorized {and professional} charges have been incurred in Q2 2022 in reference to the convertible debenture and non-cash payroll associated prices have been increased in Q3 2022 and Q2 2022 in comparison with Q3 2021 as a result of timing of possibility grants. The Firm continues to prioritize price management given unsure financial situations.

YEAR IN REVIEW

The decrease income within the 9 months ended September 30, 2022 in comparison with the 9 months ended September 30, 2021 is because of decrease demand for software program and upkeep within the HPC phase. Along with acknowledged income, Acceleware has additionally acquired non-refundable milestone money funds for the RF XL Pilot of $1.2 million for the 9 months ended September 30, 2022 in comparison with $2.0 million for the 9 months ended September 30, 2021 that are recorded in deferred income.

Complete complete loss for the 9 months ended September 30, 2022 was $3.8 million in comparison with $2.3 million for the 9 months ended September 30, 2021 primarily on account of much less authorities help acknowledged in 2022 for heating operations of the RF XL Pilot.

Gross R&D spending was decrease in 2022 due to decrease prices for working the RF XL Pilot in comparison with the prices incurred for drilling, completion, and building. Nicely drilling and completion work started in August 2021 and was accomplished in Q1 2022. Federal and provincial authorities help of $1.3 million acknowledged within the 9 months ended September 30, 2022 was decrease in comparison with $5.8 million for the 9 months ended September 30, 2021 as a result of RF XL Pilot coming into operations.

G&A bills incurred through the 9 months ended September 30, 2022 have been $1.5 million in comparison with $1.2 million for the 9 months ended September 30, 2021 a rise of $0.3 million due primarily to authorized {and professional} charges for the convertible debenture and better non-cash payroll associated prices for possibility grants. The Firm continues to prioritize price administration.

The lower in working capital is attributable to the timing of receipt and recognition of presidency and accomplice funding and timing of cost of accounts payable. On November 10, 2022, the Firm closed a non-public placement of items (“Items”). Every Unit consists of 1 widespread share and one widespread share buy warrant (“Warrant”). Every Warrant entitles the holder to amass one widespread share at an train worth of $0.36, for a interval ending on November 10, 2024. Within the occasion the widespread shares commerce at a closing worth at or higher than $0.81 per widespread share for a interval of thirty consecutive buying and selling days, Acceleware might speed up the expiry date by giving discover and in such case the Warrants will expire on the 30th day after the date on which such discover is given by the Firm. Pursuant to the personal placement, the Firm distributed a complete of 6,666,667 Items at a worth of $0.27 per Unit, for complete gross proceeds of $1,800,000. The proceeds shall be used to fund a portion of the workover for the commercial-scale pilot check of the RF XL expertise and for basic company functions.

ABOUT ACCELEWARE:

Acceleware (www.acceleware.com) is an innovator of clean-tech decarbonization applied sciences comprised of two enterprise items: Radio Frequency (RF) Heating Know-how and Seismic Imaging Software program.

Acceleware is piloting RF XL, its patented low-cost, low-carbon manufacturing expertise for heavy oil and oil sands that’s materially completely different from any heavy oil restoration approach used right this moment. Acceleware’s imaginative and prescient is that electrification of heavy oil and oil sands manufacturing will be made doable by means of RF XL, supporting a transition to a lot cleaner vitality manufacturing that may rapidly bend the emissions curve downward. With clear electrical energy, Acceleware’s RF XL expertise might remove greenhouse gasoline (GHG) emissions related to heavy oil and oil sands manufacturing. RF XL makes use of no water, requires no solvent, has a small bodily footprint, will be redeployed from website to website, and will be utilized to a large number of reservoir sorts.

Acceleware and Saa Dene Group (co-founded by Jim Boucher) have created Acceleware | Kisâstwêw to lift the profile, adoption, and worth of Acceleware applied sciences. The shared imaginative and prescient of the partnership is to enhance the environmental and financial efficiency of the vitality sector by supporting beliefs which are necessary to Indigenous peoples, together with respect for land, water, and clear air.

The Firm’s seismic imaging software program options are state-of-the-art for top constancy imaging, offering probably the most correct and superior imaging out there for oil exploration in complicated geologies. Acceleware is a public firm listed on Canada’s TSX Enterprise Trade underneath the buying and selling image “AXE”.

NOTE REGARDING FORWARD-LOOKING INFORMATION AND OTHER ADVISORIES

This information launch accommodates “forward-looking info” inside the that means of Canadian securities laws. Ahead-looking info usually means details about an issuer’s enterprise, capital, or operations which are potential in nature, and consists of disclosure concerning the issuer’s potential monetary efficiency or monetary place. 

The forward-looking info on this press launch will be recognized by phrases comparable to “believes”, “estimates”, “plans”, “potential”, and “will”, and consists of details about, the anticipated commercialization of RF XL, the anticipated price of the RF XL Pilot, the quantity of, and realized worth for the oil produced on the RF XL Pilot, the timing of the execution of the RF XL Pilot, and the anticipated financial and societal advantages of the RF XL expertise. Acceleware assumes that present price estimates are correct, simulations of oil manufacturing on the RF XL Pilot are correct, the worth realized for oil produced on the pilot stay at or close to present ranges, present timelines won’t be delayed by both inner or exterior causes, that analysis and improvement effort together with the commercial-scale check plans will end in commercial-ready merchandise, and that future capital elevating efforts shall be profitable.  

Precise outcomes might fluctuate from the forward-looking info on this press launch on account of sure materials threat elements. These threat elements are described intimately in Acceleware’s steady disclosure paperwork, that are filed on SEDAR at www.sedar.com. 

Acceleware assumes no obligation to replace or revise the forward-looking info on this press launch, except it’s required to take action underneath Canadian securities laws. 

This information launch doesn’t represent a suggestion to promote or a solicitation of a suggestion to purchase any of the securities described on this launch in america. The securities haven’t been and won’t be registered underneath america Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities legal guidelines and will not be supplied or offered inside america or to U.S. individuals except registered underneath the U.S. Securities Act and relevant state securities legal guidelines or an exemption from such registration is accessible. 

DISCLAIMER

Neither the TSX Enterprise Trade nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this launch.

For extra info:
Geoff Clark
Tel: +1 (403) 249-9099
geoff.clark@acceleware.com

Acceleware Ltd.
435 10th Avenue SE
Calgary, AB, T2G 0W3
Canada
Tel: +1 (403) 249-9099
www.acceleware.com



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