Sharc International Systems Inc (SHRC) AI Stock Analysis

• Market Cap: C$13.03M
• Dividend Yield: N/A
• Average Volume (3M): 43.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 46.73%
• EPS Growth: 6.56%
• Country: CA
• Employees: 14
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): N/A
• Shares Outstanding: 162,861,420
• 10 Day Avg. Volume: 14,352
• 30 Day Avg. Volume: 43,640
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score reflects significant financial and technical challenges. The company's high leverage and lack of profitability weigh heavily, despite positive corporate developments and potential market expansion.

Sharc International Systems Inc Business Overview & Revenue Model

Company Description

Sharc International Systems Inc (SHRC) is a company operating in the clean technology sector, focusing on innovating and providing advanced wastewater heat recovery solutions. The company's core products include the SHARC and PIRANHA systems, which are designed to capture, store, and distribute thermal energy from wastewater, thus offering energy-efficient and environmentally friendly alternatives for heating and cooling applications in various settings, such as residential, commercial, and industrial buildings.

How the Company Makes Money

Sharc International Systems Inc generates revenue through the sale and licensing of its proprietary heat recovery systems, primarily the SHARC and PIRANHA systems. These systems are sold to building developers, operators, and energy service companies who are seeking to enhance energy efficiency and reduce carbon emissions in their projects. The company may also earn income from maintenance services, system installations, and potentially through partnerships or collaborations with energy companies and government bodies interested in sustainable energy solutions. Significant factors contributing to its earnings include the global push for greener technologies and regulatory support for reducing carbon footprints, which drive demand for their innovative solutions.

Sharc International Systems Inc Financial Statement Overview

Summary

Sharc International Systems Inc exhibits significant financial challenges. Despite some revenue growth, the company struggles with profitability and cash generation, coupled with a high leverage structure which could limit future growth potential. The financial instability and reliance on debt financing present substantial risks.

Income Statement

Sharc International Systems Inc has shown some growth in total revenue over the years, with a notable increase from 2019 to 2024. However, the company consistently reports negative EBIT, EBITDA, and net income, indicating ongoing operational inefficiencies and a lack of profitability. The net profit margin remains negative, highlighting the company's struggle to convert sales into profit.

Balance Sheet

The balance sheet reveals a concerning capital structure with high total debt levels, leading to a negative stockholders' equity in some years. The debt-to-equity ratio is extremely high, indicating significant leverage and potential financial risk. A low equity ratio further shows reliance on debt financing, which poses risks in terms of financial stability.

Cash Flow

The cash flow statement highlights negative operating cash flows, suggesting operational cash generation issues. However, free cash flow shows improvement over time, though it remains negative. The free cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income into cash. Financing cash flow is positive, reflecting reliance on external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.17M	1.59M	1.94M	2.70M	630.57K
Gross Profit	914.22K	656.27K	560.46K	991.08K	273.09K
EBITDA	-3.47M	-3.50M	-3.80M	-1.81M	-1.95M
Net Income	-3.72M	-3.90M	-4.82M	-3.04M	-2.89M
Balance Sheet
Total Assets	3.91M	3.46M	3.15M	5.97M	4.37M
Cash, Cash Equivalents and Short-Term Investments	818.26K	1.24M	1.07M	3.15M	3.10M
Total Debt	2.16M	141.15K	3.99M	4.99M	5.61M
Total Liabilities	3.89M	754.65K	5.10M	5.51M	5.81M
Stockholders Equity	23.41K	2.71M	-1.95M	457.02K	-1.44M
Cash Flow
Free Cash Flow	-2.14M	-3.47M	-1.68M	-2.70M	-2.65M
Operating Cash Flow	-2.12M	-3.46M	-1.56M	-2.59M	-2.63M
Investing Cash Flow	-129.32K	-13.65K	-120.85K	-133.68K	-26.83K
Financing Cash Flow	1.83M	3.65M	-401.13K	2.78M	5.65M

Sharc International Systems Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHRC, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SHRC.

Sharc International Systems Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMG	69 Neutral	C$25.97M	166.67	4.63%	―	14.78%	-90.82%
QST	61 Neutral	C$12.67M	―	-9.94%	―	1.06%	56.94%
Sector *	61 Neutral	C$7.19B	-4.76	-4.20%	2.32%	13.56%	-31.48%
GRN	55 Neutral	C$14.91M	―	0.73%	―	-31.63%	―
WATR	47 Neutral	C$4.79M	―	-143.77%	―	-67.62%	-493.75%
SHRC	44 Neutral	C$13.03M	―	-539.37%	―	46.73%	6.56%
DST	43 Neutral	C$4.49M	―	23.34%	―	-47.05%	-261.26%

Sharc International Systems Inc Corporate Events

SHARC Energy Announces Convertible Debenture Financing to Boost Operations

SHARC Energy has announced a non-brokered private placement of secured convertible debentures worth up to $1.5 million, intended to support working capital as the company continues to deliver its SHARC and PIRANHA WET systems. This move replaces a previously announced offering and aims to strengthen SHARC Energy’s operational capacity in the energy recovery sector.

SHARC Energy Expands U.S. Presence with Key WET System Shipment

SHARC International Systems Inc. has announced the shipment of two SHARC 880 Wastewater Energy Transfer (WET) Systems to a U.S. government-affiliated project, marking a significant milestone in the company’s expansion. This development highlights the growing adoption of SHARC Energy’s innovative WET solutions as cities and governments increasingly seek scalable, low-carbon alternatives for sustainable infrastructure, enhancing the company’s influence in the industry.

SHARC Energy Launches Convertible Debenture Financing to Boost Operations

SHARC International Systems Inc. announced a non-brokered private placement of unsecured convertible debentures, aiming to raise up to $1.5 million, with an option to increase the total proceeds to $1.725 million through an over-allotment. The funds will be used for working capital as the company continues to deliver its SHARC and PIRANHA Wastewater Energy Transfer systems, enhancing its operational capacity and market presence in the energy recovery sector.

SHARC Energy Reports Strong Q1 2025 Growth and Expands Market Reach

SHARC International Systems Inc. reported a strong start to 2025, with Q1 revenue reaching $1.01 million, a 30% increase over the previous year. The company also noted an 18% growth in its Sales Order Backlog, reflecting a 64% improvement over 2024. SHARC Energy is actively expanding its market presence with key projects in Ottawa and Vancouver and is exploring new sectors such as wastewater treatment and universities. The company anticipates launching new products soon, aiming for increased revenue and profitability in the coming years.

SHARC Energy’s WET System Powers Historic Sen̓áḵw Development

SHARC International Systems Inc. announced that its Wastewater Energy Transfer (WET) system will be the central component of the Sen̓áḵw Energy System, a district energy network supporting the largest real estate development in Canadian First Nations history. This project, developed by the Squamish Nation, aims to create a net-zero carbon community by utilizing sewer heat recovery, significantly reducing carbon emissions and setting a new standard for sustainable urban living. The initiative marks a pioneering effort in Canada to use an external sewer force main as a primary energy source, aligning with regional goals for carbon neutrality and showcasing leadership in leveraging wastewater for energy.

SHARC Energy Secures $400,000 Loan to Support Project Delivery

SHARC International Systems Inc. has secured a short-term working capital loan of up to $400,000 to support its ongoing projects over the next three months. The loan, which matures on July 31, 2025, and carries an 8% annual interest rate, is secured against the company’s assets. This financial move is aimed at facilitating the company’s operational cycle and project delivery, potentially strengthening its position in the energy transfer industry.