Acceleware Ltd. Reports Third Quarter 2025 Financial and Operating Results

Executive Summary

• Acceleware reported Q3 2025 revenue of $53.8 k (down from $1.26 M YoY) and a comprehensive loss of $578 k, widening the nine‑month loss to $1.67 M versus a $1.15 M income in the prior year.
• The company closed two private‑placement tranches raising approximately $1.0 M (10,003,342 Units at $0.10) and issued 1,863,375 Units to settle $186 k of debt.
• Progress on RF XL 2.0 pilot continues: design is complete, cost estimate $5‑6 M, conditional royalty credit approved by Saskatchewan’s SPII program; farm‑in discussions underway for assets in the Lloydminster Mannville Stack.

Key Details

• Financial Highlights – Q3 2025 vs. Q3 2024
• Revenue: $53,770 vs. $1,259,315.
• Comprehensive (loss) income: $(578,487) vs. $856,500.

• R&D expenditures: $211,725 vs. $(196,809).

• Financial Highlights – Nine Months Ended Sep 30 2025 vs. 2024

• Revenue: $686,519 vs. $3,314,956.
• Comprehensive (loss) income: $(1,674,830) vs. $1,150,443.

• R&D expenditures: $899,149 vs. $444,511.

• Financing – Private Placement

• Two tranches of non‑brokered Units; total units issued = 10,003,342 at $0.10 per Unit → gross proceeds ≈ $1.0 M.
• Each Unit = 1 common share + 1 warrant (exercise price $0.20, expires 24 months).

• Acceleration clause: if TSX‑V price ≥ $0.30 for 30 consecutive trading days, warrants may be accelerated to expire 30 days after notice.

• Financing – Debt Settlement

• Issued 1,863,375 Units at deemed $0.10 per Unit to settle $186 k of trade payables, management fees and interest on convertible debentures.

• Operational Update – RF XL 2.0

• Design complete; ready for manufacturing/deployment.
• Cost estimate for pilot: $5‑6 M (incl. contingency).
• Conditional approval from Saskatchewan Petroleum Innovation Incentive (SPII) for a transferable royalty credit equal to 25 % of eligible project costs, contingent on signing a project agreement within two years.

• Farm‑in discussions ongoing with multiple operators in Saskatchewan and Alberta targeting the Lloydminster Mannville Stack.

• Critical Minerals & Amine Regeneration

• Continued Phase 3 proposal work with International Minerals Innovation Institute (IMII) for larger‑scale potash dryer prototype; sanctioning expected later 2025.
• Secured paid feasibility study contract from a major international miner for a second mineral‑processing application.

• Completed additional lab testing of proof‑of‑concept amine RF regeneration system with positive results; exploring Canadian and EU partnership opportunities.

• Cash & Working Capital

• Cash & cash equivalents as of Sep 30 2025: $461 k (up from $272 k).

• Negative working capital improved to –$3.6 M (from –$3.4 M) due largely to the private‑placement proceeds and debt‑settlement unit issuance.

• Revenue Composition

• Nine‑month 2025 revenue driven by services for potash dryer, RF XL contracts, software licences and maintenance fees.

• Prior year’s higher revenue reflected $2.85 M deferred revenue from the Marwayne pilot contract.

• R&D & G&A Expenses

• Q3 2025 R&D: $212 k (incl. $54 k government assistance).
• Nine‑month 2025 R&D: $899 k (down from $445 k YoY due to reduced government assistance).

• G&A expenses decreased to $245 k in Q3 2025 and $824 k for the nine‑month period, reflecting cost‑control measures.

• Forward‑Looking Statements – The release contains extensive forward‑looking information regarding commercialization timelines, financing needs, and partnership expectations; actual results may differ materially.