SHARC Energy Announces Q2 2025 Financial Results

Executive Summary

• SHARC International Systems Inc. released financial results for the three and six months ended June 30, 2025, reporting revenue growth and an increase in sales order backlog.
• The company reported a net loss for the period but highlighted strong momentum in its sales pipeline, particularly in District Energy Systems (DES) and Wastewater Energy Transfer (WET) projects.
• Subsequent to the quarter, the company closed a $1.57 million unsecured convertible debenture and announced significant changes to its Board of Directors.

Key Details

• Revenue Performance:
  • Six months ended June 30, 2025 (YTD): $1.86 million (up 19% from $1.56 million in YTD 2024).
  • Three months ended June 30, 2025 (Q2): $0.85 million (up 9% from $0.78 million in Q2 2024).
  • YTD 2025 revenue represents 86% of the full-year revenue earned in 2024.
• Sales Pipeline & Backlog:
  • Sales Pipeline: $16.6 million.
  • Sales Order Backlog: $3.7 million (a 3% increase from May 30, 2025, and a 71% improvement over 2024 full-year revenue of $2.17 million).
  • Backlog is estimated to convert to revenue within an average of 12 months.
• Financial Losses & Margins:
  • Q2 2025 Net Loss: $0.82 million (vs. $0.71 million in Q2 2024).
  • Q2 2025 Adjusted EBITDA Loss: $0.46 million (vs. $0.49 million in Q2 2024).
  • YTD 2025 Net Loss: $1.7 million (vs. $1.48 million in YTD 2024).
  • YTD 2025 Adjusted EBITDA Loss: $1.07 million (vs. $1.03 million in YTD 2024).
  • Gross Margins: 44% for Q2 2025 and 37% for YTD 2025.
• Operational Updates & Projects:
  • Sen̓áḵw Project: SHARC WET system shipped to the Sen̓áḵw District Energy System in Vancouver (largest real estate development in Canadian First Nations history) during Q2 2025.
  • US Government Project: Shipment of two SHARC 880 WET systems to a U.S. government-affiliated project.
  • Lebreton Flats: Two SHARC 880 WET systems selected for Ottawa’s District Energy System; submittals expected in 2025, with build/delivery in 2026.
  • False Creek NEU: Completed all remaining milestones for the supply and maintenance of five SHARC systems for the City of Vancouver’s False Creek Neighbourhood Energy Utility Expansion.
• Financing:
  • Closed a non-brokered private placement of unsecured convertible debentures for a principal amount of $1,570,000 subsequent to the YTD 2025 period.
• Corporate Governance:
  • Fred Andriano appointed as Chairman of the Board and Executive Officer on May 5, 2025, replacing Lynn Mueller (now Vice Chairman and Executive Officer).
  • Eleanor Chiu retired and resigned as Director.

Notable Quotes

• Michael Albertson, CEO: "We are continuing our strong start to the 2025 fiscal year... More importantly, despite the delivery of revenue growth over comparative periods, Sales Order Backlog increased by 3% from the previous disclosure and represents a 71% improvement over 2024 revenue sitting at $3.7 million as of the reporting date. SHARC Energy’s revenue growth continues to gain momentum."
• Michael Albertson, CEO: "We recently disclosed key District Energy System (“DES”) projects, Lebreton Flats in Ottawa and Sen̓áḵw in Vancouver, which are leveraging SHARC Wastewater Energy Transfer (WET) systems as the core component to power their thermal networks harnessing wastewater as the key renewable resource."
• Michael Albertson, CEO: "We are continuing to progress into new sectors for the SHARC and PIRANHA with promising opportunities developing within wastewater treatment facilities, universities, water utilities, correctional facilities and the design & build/energy sectors... The Company anticipates the closing of new business in these adjacent sectors as early as this year."