VANCOUVER, British Columbia, Aug. 25, 2026 (GLOBE NEWSWIRE) -- 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 six months ended June 30, 2026. All figures are in Canadian Dollars and in accordance with IFRS unless otherwise stated.

Second Quarter Financial Highlights:

   -- As of August 25, 2026, the Company has a Sales Pipeline(1) of $17.9 
      million and Sales Order Backlog(2) of $5.4 million. These figures 
      represent decreases of 6% and 21% from the Company's June 1, 2026 
      disclosure. The main reason for the decrease in backlog was a 
      cancellation of a large District Energy project in Ontario. The combined 
      Sales Pipeline and Sales Order Backlog remains strong at approximately 
      $23.3 million. 
 
   -- Since the beginning of 2026, the Company has secured approximately $5.1 
      million in SHARC Energy equipment orders, representing an increase of 59% 
      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 June 30, 2026 ("Q2 2026") was $0.27 
      million, compared with $0.85 million for the three months ended June 30, 
      2025 ("Q2 2025"), a decrease of approximately 68%. 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 Q2 2026 was 41.4%, compared with approximately 44.0% in 
      Q2 2025. Gross margins continue to vary on product mix, project scope, 
      geography and the stage of completion of individual projects. 
 
   -- During Q2 2026, the Company reported a net loss of $0.92 million and an 
      Adjusted EBITDA(3) loss of $0.77 million, compared with a net loss of 
      $0.82 million and Adjusted EBITDA loss of $0.50 million during Q2 2025. 
 
   -- Revenue for the six months ended June 30, 2026 was $0.76 million, 
      compared with $1.86 million during the corresponding period of 2025. The 
      Company reported a net loss of $1.83 million and an Adjusted EBITDA loss 
      of $1.53 million, compared with a net loss of $1.74 million and Adjusted 
      EBITDA loss of $1.14 million for the first six months of 2025. 
 
   -- The Company ended the quarter with $1.40 million of cash and positive 
      working capital of approximately $0.56 million, compared with cash of 
      $0.26 million and negative working capital of approximately $0.17 million 
      at December 31, 2025. 
 
   -- During the first six months of 2026, the Company completed a $2.5 million 
      non-brokered private placement of unsecured convertible debentures, 
      strengthening the Company's liquidity and providing additional capital to 
      support operations and execution of its Sales Order Backlog and Sales 
      Pipeline. 

____________________________

(1) Sales Pipeline is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q2 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 Q2 2026 MD&A.

(3) Adjusted EBITDA is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q2 2026 MD&A.

Michael Albertson, President of SHARC Energy, said "While our second quarter revenue reflects the timing of project execution and equipment deliveries, the underlying commercial indicators of the business remain encouraging. Our $5.4 million Sales Order Backlog is 59% higher than the backlog reported at the end of 2025, while our $17.9 million Sales Pipeline has been maintained despite approximately $5.1 million of new equipment orders being secured since the beginning of the year.

The ability to convert opportunities into orders while continuing to replenish the pipeline is an important indicator of the underlying demand for SHARC Energy's technology. Our current backlog provides significantly greater forward revenue visibility than the Company has historically had, although the timing of individual projects and revenue recognition will continue to create variability between reporting periods.

The first half of 2026 also demonstrated the increasing diversity of the markets where our technology can be deployed. Projects include district energy, transportation infrastructure, wastewater treatment, multi-family residential and U.S. government-affiliated applications. At the same time, the commercial introduction of the MANTA system expands our addressable market into additional wastewater, hydronic and thermal energy applications, including wastewater treatment facilities, data centers and district heating and cooling systems.

We continue to see opportunities developing across both our established markets and newer applications for our technology. Our focus remains on working with customers, engineering partners and representatives to advance projects through the sales cycle, convert backlog into deliveries and continue building the pipeline behind it."

Shane Dungey, Interim Chief Executive Officer and Executive Vice Chair of SHARC Energy, commented "The commercial progress Michael and the team have made provides a strong foundation as we enter this next phase for SHARC Energy. The $2.5 million financing completed during the first half of the year has strengthened our liquidity, and as at June 30, 2026, the Company had approximately $1.4 million of cash and positive working capital of approximately $0.56 million.

Following the recently announced leadership changes, our priorities are straightforward: disciplined execution, converting the existing backlog into revenue, maintaining appropriate cost and capital discipline, and ensuring that the Company is positioned to capitalize on the opportunities being developed across its markets.

An important part of that work will also be evaluating opportunities to evolve and innovate our business model with the objective of developing more consistent and recurring sources of revenue over time. As our projects have become larger and more complex, the timing of project milestones and equipment deliveries has historically resulted in variability between reporting periods. We believe there are opportunities to complement our existing equipment sales model in ways that can provide greater revenue visibility, and reduce the impact of that variability as the business grows.

We have a substantially larger order backlog than we did entering the year, a $17.9 million Sales Pipeline and an expanding portfolio of applications for SHARC Energy's technology. Our focus for the balance of 2026 will be on translating those commercial opportunities into improved financial performance while continuing to build a stronger, more focused and increasingly predictable business for our customers, employees and shareholders."

Q2 2026 Key Highlights and Subsequent Events

   -- Sales Order Backlog and Sales Pipeline. As of August 25, 2026, the 
      Company reported a Sales Order Backlog of approximately $5.4 million and 
      a Sales Pipeline of approximately $17.9 million. These represent 
      increases of approximately 60% and 8%, respectively, from the Company's 
      December 1, 2025 disclosure. 
 
   -- Approximately $5.1 million of Equipment Orders Secured in 2026. Since the 
      beginning of 2026, the Company has secured approximately $5.1 million in 
      SHARC Energy equipment orders. Projects include a Vancouver-based 
      district energy system, 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 
   -- PIRANHA selected by National Laboratory of the Rockies $(NLR)$ Project. 
      SHARC Energy announced it has received a purchase order from the NLR for 
      a PIRANHA HC for a program focused on advancing high-efficiency domestic 
      hot water retrofit solutions for large institutional facilities, one of 
      the most energy-intensive and difficult-to-modernize building systems 
      across the Department of Defence (DoD), infrastructure. The initiative 
      aims to validate scalable, cost-effective technologies that improve 
      building performance, reduce operating costs, and enhance energy 
      resilience. This project was completed and the equipment was shipped 
      subsequent to June 30, 2026. 
 
   -- $2.5M Convertible Debenture Financing Completed. During the first half of 
      2026, SHARC Energy completed a non-brokered private placement of 
      unsecured convertible debentures for aggregate principal proceeds of $2.5 
      million. The debentures bear interest at 8.0% per annum, mature three 
      years following issuance and are convertible into common shares at $0.125 
      per share, subject to the terms of the debentures. 
 
   -- Commercial Launch of new product MANTA System. The Company is pleased to 
      announce that it has secured a purchase order for its newly introduced 
      MANTA system to be deployed at a Wastewater Treatment Plant in Calgary, 
      Alberta. 
   -- SHARC Systems Shipped to US Government-Affiliated Project. The Company 
      announced the shipment of two SHARC 880 WET Systems to a U.S. 
      government-affiliated project. Further information about the project will 
      be released at a later stage. 
 
   -- Strengthened Intellectual Property Portfolio. SHARC Energy has been