Acceleware Ltd. Reports First Quarter 2025 Financial and Operating Results

CALGARY, Alberta, Could 22, 2025 (GLOBE NEWSWIRE) — Acceleware® Ltd. (“Acceleware” or the “Firm”) (TSX-V: AXE), a complicated electromagnetic (“EM”) heating firm with extremely scalable options for giant industrial purposes, at present introduced its monetary and working outcomes for the three months ended March 31, 2025 (all figures are in Canadian {dollars} until in any other case famous). The Firm’s merchandise are branded EM Powered Warmth and supply a pathway to economically electrify and decarbonize industrial heating processes beforehand thought of tough to abate. EM Powered Warmth know-how is powered by the Firm’s proprietary Clear Tech Inverter (“CTI”) for purposes together with enhanced oil restoration (“RF XL”), mining and mineral processing, carbon seize, cement and concrete, and agri-food. Along with EM Powered Warmth, the Firm additionally offers specialised scientific high-performance (“HPC”) software program. This information launch must be learn along with the Firm’s unaudited interim condensed monetary statements and the accompanying notes for the three months ended March 31, 2025 and administration’s dialogue and evaluation (“MD&A”) thereto, along with the audited monetary statements for the yr ended December 31, 2024, notes and MD&A thereto, all of which can be found on Acceleware’s web site at http://www.acceleware.com or on http://www.sedarplus.ca.

HIGHLIGHTS

Monetary highlights:

Acceleware is piloting RF XL at its commercial-scale RF XL pilot venture at Marwayne, Alberta (the “RF XL Pilot”). The RF XL Pilot efficiently demonstrated the potential of the know-how in an operational atmosphere. RF XL is the primary software of the Firm’s patent-protected CTI. Performance of the CTI has been confirmed by means of scaled discipline assessments performed in 2019 and 2020, and over six months of operation on the RF XL Pilot. Please check with the RF XL PILOT UPDATE part beneath for extra info, and to the MD&A for an entire RF XL Pilot replace.

Primarily based on constructive outcomes to this point, Acceleware stays assured that RF XL will grow to be viable as a crucial know-how within the effort to cut back manufacturing prices and decarbonize heavy oil and oil sands manufacturing. In 2024, the Firm’s operations staff continued knowledge evaluation, “history-matching” simulations and different analyses of operational knowledge from assessments in 2022. The evaluation offers proof that the operation of the RF XL Pilot resulted in sustained heating of the formation across the heating properly previous to the pause in operations for upkeep and inspection. Specifically, the Firm efficiently injected RF energy into the heating properly for over 200 days — a major milestone and one thing that has by no means been achieved earlier than. Additionally of be aware is that the CTI efficiently operated for seven consecutive months at a wide range of energy ranges and working circumstances throughout this time.

Within the three months ended March 31, 2025, the Firm continued to work on the following iteration of the RF XL subsurface system to extra concretely deal with technical points that had been illuminated through the first part of heating on the RF XL Pilot. These iterations are additionally anticipated to considerably cut back the complexity of the subsurface construction, whereas decreasing manufacturing and deployment prices as soon as commercialized. This redesign work is now full and prepared for manufacturing and deployment. The Firm is looking for funding for a second part of heating on the RF XL Pilot incorporating the brand new subsurface design and present floor services together with the CTI. Throughout 2024 the Firm confirmed that the anticipated price to redeploy the upgraded design at Marwayne could be roughly $5 million together with contingency. Additionally in 2024, the Firm introduced that it had secured a complete of as much as $1.3 million in non-dilutive funding from the Clear Useful resource Innovation Community (“CRIN”) for the following part of the RF XL Pilot, contingent on the Firm sourcing the remaining $3.7 million. The Firm has recognized a number of trade and authorities potential funders and has mentioned the venture with them. The aim of the second part of heating on the RF XL Pilot is to allow increased energy to be distributed into the reservoir for a sustained interval, leading to increased reservoir temperatures and oil manufacturing, to advance the potential industrial viability of RF XL know-how.

Along with improvement work, and with outcomes gained from RF XL deployment in Marwayne to this point, Administration has additionally initiated a strategic overview of the commercialization plan for RF XL. The method concerned analyzing varied heavy oil and bitumen reservoirs in western Canada, with the purpose of figuring out the optimum assets for the demonstration of economic viability of RF XL. These reservoirs included not solely the huge McMurray oil sands, but in addition heavy oil performs together with the Clearwater in north-central Alberta, the Bluesky in west-central Alberta, and the Mannville Stack in japanese Alberta and western Saskatchewan. The overview course of has led Administration to conclude that heavy oil performs provide the best near-term potential for commercializing RF XL, as a consequence of decrease preliminary capital per properly, means to scale from one heating properly to many, decrease working price to successfully lower viscosity, and the potential for important incremental manufacturing and supreme restoration to make uneconomic assets financial. As soon as confirmed in heavy oil, Administration believes the oil sands will provide important market growth potential.

In Q1 2025 Acceleware’s board of administrators authorised an initiative proposed by Administration to analyze (in parallel with continued effort to progress a second part of heating at Marwayne) the chance for Acceleware, as an operator, to amass rights to an acceptable heavy oil property, and thereafter apply RF XL as a secondary restoration technique to enhance the property’s manufacturing, cashflow, final restoration and asset valuation. Beneath this state of affairs, Acceleware would profit from the valuation enhancement led to by RF XL. Administration has commenced its investigation pursuant to this initiative as of the date of this information launch. Within the three months ended March 31, 2025 the Firm’s subsurface staff refined its reservoir choice standards and recognized a number of promising places for a industrial demonstration of RF XL.

As of the date of this information launch, the Firm accomplished further IMII-funded testing of a 100kg per hour prototype potash dryer with additional promising outcomes. IMII and its taking part members had requested further testing beneath varied eventualities earlier than contemplating the Firm’s Section 3 proposal for the design, building and testing of a brand new, larger-scale prototype. Acceleware expects to be taught if IMII and its members will sanction a Section 3 venture later this yr. IMII’s minerals trade members embody BHP, Cameco Company, Fission Uranium Corp., The Mosaic Firm and Nutrien Ltd.

Through the three months ended March 31, 2025, Acceleware continued to put money into growing and defending new mental property with the variety of patents issued, allowed, utilized for, or in improvement totalling 62. The Firm has 28 patents granted or allowed to guard varied proprietary applied sciences and 34 patent purposes pending or beneath improvement. The Firm makes use of an built-in technique for IP safety involving a mixture of patenting and commerce secrets and techniques, working intently with the patent places of work and mental property advisors.

RF XL PILOT UPDATE
Acceleware plans to provoke a second part of heating after finishing a proposed important subsurface design improve to deal with the moisture ingress situation. Previous to the following part of heating, all RF XL subsurface elements will probably be eliminated, and considerably upgraded, after which redeployed. This plan was developed in session with trade companions and repair suppliers and among the many options examined, it’s anticipated to have the very best likelihood of reaching increased energy injected into the reservoir for a sustained interval. The subsurface design was additional refined in Q1 2025 to extra utterly deal with the moisture ingress situation, to extend simplicity and to cut back prices for the industrial product. The refined design shouldn’t be anticipated to materially affect the estimated price for the second part of heating on the RF XL Pilot. An estimated further $5 million of funding is required to finish the redeployment together with contingency, and Acceleware is actively working to lift these funds. Acceleware has secured $1.3 million partial funding for the redeployment conditional on securing the steadiness of the funds from trade companions or different sources. The ultimate timing and value of the redeployment and subsequent heating is unsure and stays primarily depending on financing, accomplice funding, the time required to supply the remaining financing, and the profitable deployment of repairs and elements.

Whole direct funding obtained for the primary part of the RF XL Pilot was $24.4 million and included $5.9 million from Alberta Innovates, $5.5 million from Sustainable Improvement Know-how Canada (“SDTC”), $5.0 million from Emissions Discount Alberta (“ERA”), $3.0 million from CRIN and $5.0 million in combination from three oil sands operators. See dialogue beneath in Monetary Abstract. In change for funding, the oil sands operators obtained unique entry to detailed technical knowledge and check outcomes, prioritized rights to host a subsequent check, most popular pricing on pre-commercial merchandise and most popular entry to RF XL merchandise. These main oil sands producers symbolize properly over a million barrels of oil sands and heavy oil manufacturing per day.

QUARTER IN REVIEW
Income of $431 thousand was recorded within the three months ended March 31, 2025 (“Q1 2025”) in comparison with $44 thousand within the three months ended March 31, 2024 (“Q1 2024”) and $1.9 million within the earlier quarter ended December 31, 2024 (“This autumn 2024”). Income in This autumn 2024 was considerably related to deferred income acknowledged regarding a contract with one oil sands producer for the RF XL Pilot.

Whole complete loss for Q1 2025 was $383 thousand in comparison with a complete lack of $1.0 million for Q1 2024 and complete earnings of $0.9 million for This autumn 2024. The discount in complete loss in Q1 2025 in comparison with Q1 2024 was as a consequence of increased income and a major discount in R&D and G&A bills. Complete earnings in This autumn 2024 was increased as a consequence of income associated to the RF XL Pilot. Finance expense contains curiosity expense on convertible debentures and notes payable that are funding the Firm’s working capital. Complete earnings in all intervals was impacted by modifications in worth of the by-product monetary devices embedded throughout the convertible debenture. The modifications in by-product worth are pushed primarily by the fluctuation within the Firm’s share worth.

R&D bills incurred in Q1 2025 had been $421 thousand in comparison with $501 thousand in Q1 2024 and $581 thousand in This autumn 2024. R&D spending in Q1 2025 and This autumn 2024 was associated to the IMII dryer for potash ore and included lab engineering, designing and testing, knowledge evaluation, and accomplice consultations, and to additional engineering on the following iteration of the RF XL Pilot. R&D spending in Q1 2024 was associated to the RF XL Pilot. There was $nil authorities help obtained in Q1 2025, This autumn 2024 and Q1 2024.

G&A bills incurred in Q1 2025 had been $253 thousand in comparison with $452 thousand in Q1 2024 and $315 thousand in This autumn 2024. There have been decrease non-cash payroll associated prices incurred in Q1 2025 as a result of timing of choice grants and decrease skilled charges because the Firm continues to prioritize price management given unsure financial circumstances.

As at December 31, 2024, Acceleware had damaging working capital of $3.6 million (December 31, 2024 – damaging working capital of $3.4 million) together with money and money equivalents of $211 thousand (December 31, 2024 – $272 thousand). The rise in damaging working capital is attributable to the lower in money in addition to a rise in brief time period notes payable, and a rise in deferred administration compensation.

Within the pursuits of matching money necessities with a mixture of money generated from operations, exterior funding, and capital elevating actions, the Firm actively manages its money stream and investments in new merchandise. Acceleware intends to maximise money generated from operations by means of a number of initiatives which embody persevering with to concentrate on increased gross margin software program merchandise which might be marketed by means of a mixture of direct and reseller fashions; minimizing working bills the place doable; and limiting capital expenditures. Because the Firm continues to develop its RF Heating know-how, new R&D investments will probably be financed by means of a mixture of inner money stream from the HPC enterprise, venture funding agreements, authorities help and exterior financing, when accessible.

ABOUT ACCELEWARE:
Acceleware is an innovator of clean-tech decarbonization applied sciences comprised of two enterprise models: Radio Frequency Heating Know-how and Seismic Imaging Software program.  

Acceleware is piloting RF XL, its patented low-cost, low-carbon manufacturing know-how for heavy oil and oil sands that’s materially completely different from any heavy oil restoration method used at present. 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 know-how might remove greenhouse fuel (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 mess of reservoir varieties. Acceleware can be actively growing partnerships for RF heating of different industrial purposes utilizing the Firm’s proprietary CTI.

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 might be 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 essentially the most correct and superior imaging accessible for oil exploration in advanced geologies. Acceleware is a public firm listed on Canada’s TSX Enterprise Alternate beneath the buying and selling image “AXE”.

NOTE REGARDING FORWARD-LOOKING INFORMATION AND OTHER ADVISORIES
This information launch accommodates “forward-looking info” throughout the which means of Canadian securities laws. Ahead-looking info usually means details about an issuer’s enterprise, capital, or operations which might be potential in nature, and contains 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 contains details about, the anticipated commercialization of RF XL, the anticipated price of the RF XL Pilot, the timing of the execution of the RF XL Pilot and the redeployment, anticipated financing required for the RF XL Pilot redeployment, the anticipated financial and societal advantages of the RF XL know-how, and the long run improvement plans associated to potash ore drying prototypes. Acceleware assumes that present price estimates are correct, 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 will probably be profitable.  

Precise outcomes could range from the forward-looking info on this press launch as a consequence of sure materials threat elements. These threat elements are described intimately in Acceleware’s steady disclosure paperwork, that are filed on SEDAR at http://www.sedar.com. 

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

This information launch doesn’t represent a proposal to promote or a solicitation of a proposal to purchase any of the securities described on this launch in the US. The securities haven’t been and won’t be registered beneath the US Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities legal guidelines and will not be provided or bought inside the US or to U.S. individuals until registered beneath the U.S. Securities Act and relevant state securities legal guidelines or an exemption from such registration is obtainable. 

DISCLAIMER

Neither the TSX Enterprise Alternate nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) 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 10^th Avenue SE
Calgary, AB, T2G 0W3
Canada
Tel: +1 (403) 249-9099
http://www.acceleware.com