Vancouver – (October 30, 2026) – SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) (“SHARC Energy” or the “Company”) is pleased to announce it has filed financial results for the three and nine months ended September 30, 2026. All figures are in Canadian Dollars and in accordance with IFRS unless otherwise stated.
Third Quarter Financial Highlights:
- As of October 30, 2026, subsequent to quarter-end, the Company reported a Sales Pipeline¹ of $13.6 million and Sales Order Backlog² of $10.1 million. These figures represent a decrease of 24% to the Sales Pipeline and an increase of 87% to the Sales Order Backlog from the Company’s August 25, 2026 disclosure. The combined Sales Pipeline and Sales Order Backlog remains strong at approximately $23.6 million.
- Since the beginning of 2026, the Company has secured approximately $10.6 million in SHARC Energy equipment orders, representing an increase of 212% from the $3.4 million Sales Order Backlog reported in the Company’s final disclosure of 2025. The orders span multiple geographic markets and end-use applications and reflect the continued maturation of the Company’s Sales Pipeline.
- Revenue for the three months ended September 30, 2026 (“Q3 2026”) was $0.83 million, compared with $0.83 million for the three months ended September 30, 2025 (“Q3 2025”), The Company continues to experience quarter-to-quarter revenue variability resulting from the timing of project milestones, production schedules and equipment deliveries due to larger and more complex projects.
- Gross margin for Q3 2026 was 32.3%, compared with approximately 39% in Q3 2025. Gross margins continue to vary on product mix, project scope, geography and the stage of completion of individual projects.
- During Q3 2026, the Company reported a net loss of $0.87 million and an Adjusted EBITDA³ loss of $0.64 million, compared with a net loss of $0.74 million and Adjusted EBITDA loss of $0.54 million during Q3 2025.
- Revenue for the nine months ended September 30, 2026 was $1.6 million, compared with $2.7 million during the corresponding period of 2025. The Company reported a net loss of $2.7 million and an Adjusted EBITDA loss of $2.1 million, compared with a net loss of $2.5 million and Adjusted EBITDA loss of $1.7 million for the first nine months of 2025.
- The Company ended the quarter with $1.80 million of cash and negative working capital of approximately $0.09 million, compared with cash of $0.26 million and negative working capital of approximately $0.17 million at December 31, 2025.
Fred Andriano, Interim CFO and Chairman of the Board of SHARC Energy, said “The Company strengthened its financial position during the first nine months of 2026 through the completion of a $2.5 million convertible debenture financing, increasing cash to approximately $1.8 million at September 30, 2026. We also recorded significant growth in deferred revenue, reflecting customer advances received on future projects and providing improved visibility into future revenue conversion.”
“As we continue pursuing larger commercial, municipal and infrastructure opportunities, quarterly results will continue to be influenced by project schedules and revenue recognition milestones. Our focus remains on disciplined capital management, liquidity preservation and the successful execution of customer projects.”
Shane Dungey, Interim Chief Executive Officer and Executive Vice Chair of SHARC Energy, commented “The third quarter reflected our continued focus on executing our commercial strategy and developing opportunities across the wastewater energy transfer market.
Subsequent to quarter-end, we secured the largest purchase order in SHARC Energy’s history through the City of Surrey District Energy Sewer Heat Recovery Project. The project represents an important addition to our order backlog and demonstrates the application of our technology in larger-scale district energy infrastructure. This project brings us to $10.6 million in secured equipment orders in 2026 across multiple end markets, which reflects the range of applications for our technology and our focus on converting sales opportunities into contracted projects. We remain committed to successfully executing these projects while aligning operational resources and working capital with project delivery schedules.”
Q3 2026 Key Highlights and Subsequent Events
- Sales Order Backlog and Sales Pipeline. As of October 30, 2026, the Company reported a Sales Order Backlog of approximately $10.1 million and a Sales Pipeline of approximately $13.6 million.
- Approximately $10.6 million of Equipment Orders Secured in 2026. Since the beginning of 2026, the Company has secured approximately $10.6 million in SHARC Energy equipment orders. Projects include two substantial Vancouver-based district energy systems, a major U.S. West Coast airport, a Calgary wastewater treatment plant, a multi-family senior housing retrofit on Staten Island, New York, and the Naval Postgraduate School’s historic Hotel Del Monte in Monterey, California. These projects demonstrate both geographic and sector diversification across SHARC Energy’s addressable markets
- Record Purchase Order. SHARC Energy received a purchase order valued at more than $5.0 million from the City of Surrey for its District Energy Sewer Heat Recovery Project. The purchase order represents the largest customer order in the Company’s history and is expected to contribute to revenue beginning in the second half of 2027 and continuing into 2028 as project milestones are achieved
For complete financial information for the three and nine months ended September 30, 2026, please see the Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis (“MD&A”) filed on SEDAR at www.sedar.com.
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[1] Sales Pipeline is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2026 MD&A.
2 Sales Order Backlog is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2026 MD&A.
3 Adjusted EBITDA is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2026 MD&A.
