SHARC International Reports on 2019 Fiscal Year

VANCOUVER, British Columbia, June 05, 2020 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) ("SHARC" or the “Company”) has filed its financial results for the fourth quarter and fiscal year ended December 31, 2019. All figures are in CDN unless otherwise noted.

2019 Financial Highlights:

• Loss from continuing operations for the year ended December 31, 2019 was $3.3M, a decrease of $1.1M year over year.
   
• Through the restructuring of its operations, the Company has reduced its working capital deficit by approximately $1.6M, from $5.12M to $3.5M, between the interim period ended September 30, 2019 and the year ended December 31, 2019.
   
• Gross margin of $0.08M at 54% margin in 2019 compared to $0.25M at 46% margin in 2018.
   
• Disposed of the UK operations reducing a continued drain on cash balances and our financial commitments.

2019 Accomplishments

• Pivoted from the Design, Build, Finance and Operate (“DBFO”) or Energy Service Company (“ESCO”) model, a high upfront capital cost with long term residual income streams or payback, to a lower cost, higher return upfront model with a focus on equipment sales and leasing (“OEM”)
   
• Successfully reallocated internal resources from research and development and technical positions to sales and sales support positions
   
• Hired dedicated and skilled sales professionals to manage and generate leads with a focus to bring leads to a close.
   
• Review and reduced general and administrative spend and support focusing resources on sales and marketing activities.
   
• Successfully divested from UK Operations.
   
• Entered into a lease with the City of Vancouver for a one-year lease with the option to renew at $9,000 per month. The City of Vancouver is planning expansion of the False Creek Neighborhood Energy Utility with bidding beginning in late 2020.

Subsequent events

• On February 11, 2020, the Company issued 10,000,000 units at a price of $0.065 for cash proceeds of $156,000 and the settlement of debt of $494,000 owed to officers, directors and consultants. Debt settlement of officers and directors of the Company account for $326,794 of the total settlements.
   
• On February 13 and February 24, 2020, the Company issued unsecured convertible debenture units with total principal amounts of $1,764,000 and $276,000 respectively. The debentures mature on February 13 and February 24, 2023, respectively, and bear interest at an annual rate of 2% due semi-annually.