Acceleware Ltd. Reports Second Quarter 2025 Financial and Operating Results

Executive Summary

• Acceleware released its Q2 2025 financial results, reporting a significant decline in revenue to $201,523 (from $2.01M in Q2 2024) and a comprehensive loss of $714,148, driven by the absence of deferred revenue from the previous year's RF XL Marwayne Pilot contract.
• The company announced the completion of the RF XL 2.0 design, which reduces per-well capital costs by an estimated 30% and eliminates water ingress risks. The company is seeking $5–$6 million in funding for the RF XL 2.0 Pilot phase.
• Subsequent to the quarter, the company closed the first tranche of a non-brokered private placement raising $791,334 and settled $186,000 in debt obligations by issuing units.

Key Details

• Financial Performance (Three Months Ended June 30, 2025):
  • Revenue: $201,523 (vs. $2,012,047 in Q2 2024).
  • Comprehensive Loss: $(714,148) (vs. Income of $1,263,914 in Q2 2024).
  • R&D Expenditures: $266,595 (vs. $140,205 in Q2 2024).
  • G&A Expenses: $327,000 (approximate based on text description of lower costs vs $418k in Q2 2024).
• Financial Performance (Six Months Ended June 30, 2025):
  • Revenue: $632,749 (vs. $2,055,641 in H1 2024).
  • Comprehensive Loss: $(1,096,343) (vs. Income of $293,944 in H1 2024).
  • Gross R&D Expenses: $687,424 (vs. $641,324 in H1 2024).
  • G&A Expenses: $580,000 (vs. $871,000 in H1 2024).
• Operational Updates:
  • RF XL 2.0: Engineering team confirmed industry support for a ground-up redesign. The new fully sealed, continuous tubing design reduces per-well capital costs by ~30%, simplifies deployment, and reduces manufacturing/well completion costs.
  • Pilot Funding: Expected cost to complete the RF XL 2.0 Pilot is $5–$6 million (including contingency). Company is in discussions with industry and government funders.
  • Asset Transfer: Acceleware entered an agreement to transfer certain wells, assets, liabilities, licenses, and leases from the RF XL Marwayne Pilot to a third party. Consideration includes cash payments and a gross overriding royalty on future production, plus a commitment to establish a new farmout agreement at Marwayne.
  • Critical Minerals: Completed additional IMII-funded testing of a 100kg/hour potash dryer prototype with promising results. IMII members (including BHP, Cameco, Mosaic, Nutrien, Fission Uranium, The Uranium Corp) are considering Phase 3 proposal for a larger-scale prototype.
  • Strategy: Announced focused investment strategy including critical minerals heating/drying, amine regeneration, and RF XL 2.0.
• Subsequent Events (Post-Q2 2025):
  • Private Placement (July 31, 2025): Closed first tranche of non-brokered private placement.
    • Units Issued: 7,913,342.
    • Price: $0.10 per Unit.
    • Gross Proceeds: $791,334.20.
    • Warrants: Each unit includes one warrant exercisable at $0.20/share, expiring 24 months from issuance. Acceleration clause triggers if share price closes at or above $0.30 for 30 consecutive days.
  • Debt Settlement (August 13, 2025): Closed shares for debt transactions to settle $186,000 in trades payable, management fees, and interest on convertible debentures.
    • Units Issued: Up to 1,863,375 Units.
    • Deemed Price: $0.10 per Unit.
• Balance Sheet (As of June 30, 2025):
  • Cash and Cash Equivalents: $88,000 (vs. $272,000 at Dec 31, 2024).
  • Negative Working Capital: $4.2 million (vs. $3.4 million at Dec 31, 2024).
  • Drivers of negative working capital: Decrease in cash, increase in short-term notes payable, and increase in deferred management compensation.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.