Sharc International Systems Inc (SHRC) AI Stock Analysis

• Market Cap: C$13.84M
• Dividend Yield: N/A
• Average Volume (3M): 13.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 25.83%
• EPS Growth: -30.00%
• Country: CA
• Employees: 14
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): >-0.01
• Shares Outstanding: 162,861,420
• 10 Day Avg. Volume: 15,770
• 30 Day Avg. Volume: 13,919
• PEG Ratio: 0.47
• Price to Book (P/B): 945.35
• Price to Sales (P/S): 10.21
• P/FCF Ratio: -10.32
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Sharc International Systems Inc's overall stock score is primarily impacted by its poor financial performance, characterized by negative profitability and high leverage. Technical analysis indicates weak momentum, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest significant risks for potential investors.

Sharc International Systems Inc Business Overview & Revenue Model

Company Description

Sharc International Systems Inc (SHRC) is a technology company specializing in advanced digital signal processing solutions and software development for various industries, including telecommunications, audio processing, and industrial automation. The company focuses on creating innovative products and services that enhance audio and data transmission through efficient and reliable systems, utilizing its proprietary algorithms and technologies.

How the Company Makes Money

Sharc International Systems generates revenue primarily through the sale of its patented audio processing technologies and software licenses to manufacturers and developers in telecommunications and consumer electronics. The company also earns income from providing consulting services and technical support to its clients, facilitating the integration of its products into their systems. Key revenue streams include licensing agreements, product sales, and potential royalties from partners who incorporate Sharc's technology into their products. Strategic partnerships with industry leaders and ongoing research and development efforts further contribute to its earnings by expanding its market reach and enhancing its product offerings.

Sharc International Systems Inc Financial Statement Overview

Summary

Sharc International Systems Inc faces significant financial challenges, with consistent negative EBIT, EBITDA, and net income, indicating operational inefficiencies and a lack of profitability. The high debt levels and negative stockholders' equity highlight financial instability and reliance on debt financing, posing 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.47M	2.17M	1.59M	1.94M	2.70M	630.57K
Gross Profit	982.23K	914.22K	-2.21M	560.46K	991.08K	273.09K
EBITDA	-3.49M	-3.47M	-3.50M	-3.80M	-1.81M	-1.95M
Net Income	-3.98M	-3.72M	-3.90M	-4.82M	-3.04M	-2.89M
Balance Sheet
Total Assets	3.02M	3.91M	3.46M	3.15M	5.97M	4.37M
Cash, Cash Equivalents and Short-Term Investments	92.67K	818.26K	1.24M	1.07M	3.15M	3.10M
Total Debt	2.65M	2.16M	141.15K	3.99M	4.99M	5.61M
Total Liabilities	4.32M	3.89M	754.65K	5.10M	5.51M	5.81M
Stockholders Equity	-1.30M	23.41K	2.71M	-1.95M	457.02K	-1.44M
Cash Flow
Free Cash Flow	-2.51M	-2.14M	-3.47M	-1.68M	-2.70M	-2.65M
Operating Cash Flow	-2.49M	-2.12M	-3.46M	-1.56M	-2.59M	-2.63M
Investing Cash Flow	-77.96K	-129.32K	-13.65K	-120.85K	-133.68K	-26.83K
Financing Cash Flow	2.30M	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: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, 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$22.50M	―	-1.51%	―	-3.45%	-104.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GRN	49 Neutral	C$39.24M	277.78	0.73%	―	-31.63%	―
WATR	47 Neutral	C$6.16M	―	-1238.40%	―	-72.45%	-987.50%
DST	43 Neutral	C$5.46M	-0.78	―	―	-46.69%	-203.36%
QST	43 Neutral	C$12.45M	-13.55	-4.12%	―	75.22%	83.79%
SHRC	41 Neutral	C$13.84M	―	-2546.33%	―	25.83%	-30.00%

Sharc International Systems Inc Corporate Events

SHARC Energy Completes Largest WET Project in North America

SHARC International Systems Inc. has completed the expansion of the False Creek Neighbourhood Energy Utility in Vancouver, making it the largest operating WET project in North America. This expansion, which triples the utility’s capacity to 9.8MW, significantly reduces reliance on the BC Hydro power grid and is expected to cut carbon emissions by 4,400 tonnes annually. The project exemplifies the potential of WET technology to transform wastewater into a renewable energy resource, providing affordable energy rates and a return on investment for the city. SHARC’s technology is increasingly being adopted in urban infrastructure projects, highlighting its role in advancing sustainable energy solutions.

SHARC Energy Highlights Wastewater Energy Innovations at Climate Week NYC

SHARC International Systems Inc. co-hosted a panel during Climate Week NYC, focusing on how technologies like wastewater energy transfer can transform building development. The event highlighted the role of such innovations in creating sustainable, affordable housing and emphasized SHARC Energy’s commitment to collaborating with policymakers and industry leaders to advance these solutions.

SHARC Energy Strengthens Market Position with New Patents

SHARC Energy has secured key patents for its wastewater heat exchange system in the United States and Europe, enhancing its competitive edge in major markets. These patents, along with ongoing global patent filings, are expected to bolster SHARC Energy’s market position and drive growth in orders as the company expands its footprint across North America, Europe, and beyond.

SHARC Energy Recognized as Finalist in Global Climate Innovation Challenge

SHARC Energy has been selected as a Cohort 2 Finalist in the New York Climate Exchange’s Sustainable Solutions Challenge, a global competition for climate change innovations. This recognition highlights SHARC’s wastewater energy transfer technology’s role in creating low-carbon infrastructure, with potential integration into New York’s Climate Hub, and underscores the company’s collaboration with key stakeholders like NYSERDA and Con Edison to advance clean energy solutions.

SHARC Energy Reports Strong Revenue Growth and Expands Market Presence in 2025

SHARC Energy has reported a 19% increase in revenue for the first half of 2025 compared to the same period in 2024, with a total revenue of $1.86 million. The company’s sales order backlog has grown by 3% since May 2025 and represents a 71% improvement over 2024 revenue. SHARC Energy is expanding its footprint in North America with key projects in Ottawa and Vancouver, and is also progressing into new sectors such as wastewater treatment facilities and universities.

SHARC Energy Secures $1.57 Million in Convertible Debentures

SHARC International Systems Inc. has completed a $1.57 million non-brokered private placement of unsecured convertible debentures, which will mature in three years and bear an 8% annual interest. The proceeds will be used for working capital and corporate purposes, enhancing the company’s ability to fulfill production and delivery of its SHARC and PIRANHA WET systems.