Acceleware® Ltd. a leading innovator of transformative technologies targeting the decarbonization of industrial heating, today announced its financial and operating results for six months ended June 30, 2023 (all figures are in Canadian dollars unless otherwise noted) (“Q2 2023”). Acceleware’s quarter end 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, 2023 and management’s discussion and analysis (“MDA”) thereto, together with the audited financial statements for the year ended December 31, 2022,
In Q2 2023, the Company continued to make progress on the workover for the pilot test of RF heating technology at Marwayne, Alberta (the “RF XL Pilot”), and based on observations to date, remains confident that RF XL will become viable as a critical technology in the effort to decarbonize heavy oil and oil sands production. Initial data analysis, backed up with subsequent “history-matching” simulations and further analyses provide strong evidence that the operation of the RF XL Pilot in 2022 resulted in sustained RF heating of the formation around the heating well prior to a pause in operations for a maintenance workover. The final timing and cost of the workover remains dependent on availability of service rigs, supply chain availability, and the successful deployment of upgraded components. Please refer to the RF XL Pilot Update section below for more information, and to the MDA for a complete RF XL Pilot update.
Financial highlights for the six months ended June 30, 2023:
|Three Months Ended||Six Months Ended|
|June 30, 2023||June 30, 2022||June 30, 2023||June 30, 2022|
|Gross R&D expenditures||637,633||1,239,217||1,390,002||3,862,187|
|RF XL Pilot deferred revenue||—||800,000||—||1,200,000|
The Company had cash on hand of $0.1 million (December 31, 2022 – $1.1 million), up to $4.4 million (December 31, 2022 – $1.4 million) of amounts committed but not yet received or receivable from grants and three major oil-sands producers, and negative working capital, excluding cash, of $2.1 million (December 31, 2022 – $1.8 million). The Company actively manages its cash flow requirements with a combination of cash generated from operations, external funding, and capital raising activities.
In addition, recent highlights during the three months ended June 30, 2023, included:
- Subsequent to June 30, 2023, Acceleware signed an agreement with a Canadian not-for-profit corporation providing non-dilutive, non-repayable funding of up to $3 million for the RF XL Pilot. The funding will be paid upon completion of certain milestones and is reimbursement for costs incurred between January 1, 2022 and March 31, 2024.
- During Q2 2023, Acceleware successfully concluded an Exploring Innovations project with the International Minerals Innovation Institute (“IMII”), which validated the potential to use RF energy from Acceleware’s CTI to dry potash and other mineral commodities. IMII subsequently announced that it has invited Acceleware to submit a proposal for subsequent project phases which could lead to the development of a commercial scale drying platform.
- On June 6, 2023, Acceleware announced a non-brokered private placement of units (“Units”) at a price of $0.23 per Unit for gross proceeds of up to $2,000,000. Each Unit consists of one common share in the capital of the Company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share of Acceleware at $0.30 for a period of 24 months from the date of the issuance of the warrant. In the event the common shares trade at a closing price at or greater than $0.69 per common share for a period of thirty consecutive trading days, the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given. The offering is expected to close on August 21, 2023.