Acceleware Ltd. Reports Fourth Quarter and Year End 2019 Financial and Operating Results - Seite 2

Positive Field/Lab Experiment: Realized successful test metrics from a field test completed in the fourth quarter which assessed the magnitude of power levels injected, converter efficiency, load adaptability and confirmed the ability to perform under a variety of environmental operating conditions.

Six new patent applications were filed in 2019 protecting various proprietary technologies related to the RF heating research and development. Progress was made on eight patent applications being readied for filing covering areas related to key technologies in RF Heating, and the Company continues to work closely with the patent offices and its intellectual property advisors.

In addition to the key operational advancements outlined above, Acceleware achieved meaningful impact in its efforts to drive awareness and position its RF Heating technology in the clean-tech field across several avenues. The Company was invited by Clean Resource Innovation Network (“CRIN”) to present at an event in Ottawa in May and also co-hosted a follow-up event in Calgary with CRIN and Petroleum Technology Alliance Canada in June. These events have created momentum for Acceleware to establish working groups for clean technology and increase the depth and breadth of its advisory board. Acceleware’s involvement with CRIN also led to a series of six articles published by JuneWarren-Nickle’s Energy Group (“JWN”) focused on the Company’s RF Heating technology and its impact on Canada’s evolving energy landscape. The relationship with JWN also created the opportunity for Acceleware to be nominated across several different categories as a potential recipient of the Energy Excellence Awards in 2020. During the latter half of 2019, the Company launched a new corporate website and implemented targeted outreach programs designed to further build Acceleware’s potential customer base, attract new investors and optimally engage with other stakeholders.

FINANCIAL SUMMARY HIGHLIGHTS

Revenue of approximately $1.5 million generated in 2019 from the Company’s software, maintenance and services sales exceeded expectations as the Company successfully signed contracts with international customers under its new HPC software revenue model, which features direct sales of seismic software to oil and gas companies using new licencing models. Revenue in 2018 was $4.3 million, and included approximately $3.3 million earned from a single contract with a Canadian affiliate of Advanced Micro Devices, Inc. (“AMD”) under a consulting services agreement. Were this one-time contract payment to be excluded from 2018, the run-rate revenue generated in 2019 would be the highest of the past three years.