Acceleware Ltd. Reports Fourth Quarter and Year End 2019 Financial and Operating Results - Seite 3

Total comprehensive loss for the year ended December 31, 2019 was approximately $1.6 million (December 31, 2018 – approximately $0.1 million) as the majority of spending focused on research and development initiatives that (1) have a longer-term payback and (2) are directed at increasing the Company’s profile and presence in the clean technology segment of the energy industry. Federal and provincial government assistance of approximately $1.2 million was recognized in 2019 (December 31, 2018 - $1.8 million), which offset research and development costs incurred. During the last quarter of 2018, Acceleware completed contribution agreements for the commercial-scale RF XL pilot test with Sustainable Development Technology Canada (“SDTC”) and Emissions Reduction Alberta (“ERA”) as well as a Calgary-based oil sands producer. The government assistance funding is recorded as an offset to research and development expenses as the spending is incurred.

At year end 2019, Acceleware had working capital of approximately $1.0 million (December 31, 2018 – approximately $2.0 million) including cash and cash equivalents of approximately $4.4 million (December 31, 2018 – approximately $3.2 million). The increase in cash is attributable to the receipt of government assistance milestone funding for the RF XL field test.

2019 FINANCIAL RESULTS

• Revenue totaled $1,453,924 in 2019, compared to $4,317,361 in 2018, which includes $3,276,848 of non-recurring revenue associated with work completed under a consulting services agreement with AMD. Excluding this, revenue in 2019 would be $413,411 higher due solely to new contracts under the revised HPC software licensing model.
  
  
• Total expenses decreased 34% to $2,962,013 in 2019, supported by lower expenses across the organization. Cost of revenue decreased 96% due to fewer technical staff engaged in custom software development. General and administrative (“G&A”) expenses decreased 5% primarily due to decreased payroll and payroll related expenses. Research and development (“R&D”) expenses fell 66% as a result of decreased payroll spending and consulting costs as the Company’s resources and activities were focused on executing a successful field test of the RF XL Heating technology.