EnWave Reports 2025 Second Quarter Consolidated Interim Financial Results
VANCOUVER, British Columbia, May 22, 2025 (GLOBE NEWSWIRE) — EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) today reported the Company’s consolidated interim financial results for the second quarter ended March 31, 2025.
All values in thousands and denoted in CAD unless otherwise stated.
- Reported revenue for Q2 2025 of $3,689, an increase of $3,026 relative to the comparable period in the prior year. The increase was primarily related to a large-scale machine sale and the commissioning of two small-scale machines.
- Reported royalty revenues for Q2 2025 of $474, an increase of $60 relative to the comparable period in the prior year. Royalties grew due to increased royalty partners, product sales, and partner production for the quarter.
- Gross margin for the three months ending Q2 2025 was 33% compared to (25)% for the three months ending Q2 2024. The increase in margin was a result of higher machine sales, royalties, and tolling revenue for the quarter.
- Reported an increase in Selling, General & Administrative (“SG&A”) costs (including Research & Development (“R&D”)) of $10 for Q2 2025 relative to the comparable period in the prior year, with the increase primarily related to recruitment fees.
- Reported Adjusted EBITDA(1) income for Q2 2025 of $112, an increase of $1,380 from the comparable period in the prior year.
Consolidated Financial Performance:
| ($ ‘000s) | Three months March 31, | Six months ended March 31, | |||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||
| Revenues | 3,689 | 663 | 456 | % | 4,866 | 1,925 | 153 | % | |||||||||
| Direct costs | (2,480 | ) | (830 | ) | 199 | % | (3,317 | ) | (1,859 | ) | 78 | % | |||||
| Gross margin | 1,209 | (167 | ) | (824 | %) | 1,549 | 66 | 2,247 | % | ||||||||
| Operating expenses | |||||||||||||||||
| General and administration | 585 | 565 | 4 | % | 1,009 | 1,077 | (6 | %) | |||||||||
| Sales and marketing | 436 | 440 | (1 | %) | 922 | 791 | 17 | % | |||||||||
| Research and development | 378 | 384 | (2 | %) | 736 | 785 | (6 | %) | |||||||||
| 1,399 | 1,389 | 1 | % | 2,667 | 2,653 | 1 | % | ||||||||||
| Net loss – continuous operations | (362 | ) | (1,559 | ) | 77 | % | (1,300 | ) | (2,703 | ) | 52 | % | |||||
| Net income (loss) – discontinued operations | 1,126 | 148 | 661 | % | 1,118 | (3 | ) | (37367 | %) | ||||||||
| Adjusted EBITDA(1) income (loss) | 112 | (1,268 | ) | (109 | %) | (523 | ) | (2,024 | ) | (74 | %) | ||||||
| Income (Loss) per share: | |||||||||||||||||
| Continuous operations – basic and diluted | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | ||||||
| Discontinued operations – basic and diluted | $ | 0.01 | $ | 0.00 | $ | 0.01 | $ | 0.00 | |||||||||
| Basic and diluted | $ | 0.01 | $ | (0.01 | ) | $ | 0.00 | $ | (0.02 | ) | |||||||
Note:
(1) Adjusted EBITDA is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures disclosure below for a reconciliation to the nearest IFRS equivalent.
EnWave’s consolidated interim financial statements and MD&A are available on SEDAR+ at www.sedarplus.ca and on the Company’s website www.enwave.net
Key Financial Highlights for the Six Months Ended March 31, 2025 (expressed in 000’s)
- Reported revenue of $4,866, an increase of $2,941 relative to the comparable period in the prior year. The increase was primarily related to additional machine sales.
- Reported Royalty revenues of $1,033, an increase of $139 or 16% relative to the comparative period in the prior year. Royalties grew due to increased royalty partners, product sales, partner production, and exclusivity payments.
- Reported an increase in SG&A costs of $14 for the six months ending March 31, 2025, relative to the comparable period in the prior year, with the increase primarily related to tradeshow attendance and recruitment fees offset by reduced legal costs associated with the capitalization of the Term Loan and Credit facility issuance costs.
- Reported an Adjusted EBITDA(1) loss of $523 for the six months ended March 31, 2025, an increase of $1,501 from the comparable period in the prior year.
Significant Corporate Accomplishments in Q2 2025 and Subsequently:
- Signed a Technology Evaluation and License Option Agreement with Solve Solutions LTDA of Brazil.
- Signed a License Agreement Amendment with BranchOut Food Inc. for the exclusive rights to produce dried blueberry products using EnWave’s REV™ technology in Peru.
- Signed a License Agreement Amendment with Patatas Fritas Torres S.L. of Spain to expand the product portfolio to focus on commercializing healthy, protein-rich snack products.
- Signed an Equipment Purchase Agreement and License Amendment with Sprouted Proteins for a 10kW REV™ machine and the grant of exclusive rights to produce certain starch-based snack products.
- Signed an Equipment Purchase Agreement and Commercial Licence Agreement with Hokkai Yamato Foods for a 10kW REV™ machine.
- Signed a Master Service Agreement and First Work Order with Bio Technique LLC to evaluate EnWave’s REV™ dehydration technology.
- Signed an Equipment Purchase Agreement and Licence Agreement Amendment with MicroDried® for a 60kW REV™ machine and the exclusive rights to use REV™ technology for apple ingredient production in Washington, Oregon, and Idaho.
- Received the Second Progress Payment related to the Equipment Purchase Agreement with Procescir S.A. de C.V. of Mexico for 120kW Radiant Energy Vacuum Machinery.
- Signed a License Agreement Amendment with Creations Foods US Inc. for an additional right to produce dried cheese snacks for pet treat applications on a non-exclusive basis in the United States.
- The Company recognized a $836 USD tax refund for NutraDried during the quarter in discontinued operations. The tax refund was for the Employee Retention Tax Credit which is a refundable tax credit from the United States government for businesses that were affected during the COVID-19 pandemic. The Company does not expect to receive any additional tax refunds or credits related to NutraDried.
- The Company appointed its first international Business Development Manager, based in the Netherlands. This new Business Development Manager will play a pivotal role in strengthening the Company’s international presence and accelerating growth in the European market.
- Subsequent to the quarter, the Company repurchased a 10 kW REV™ machine and 120kW REV™ machine from an Illinois, U.S. based cannabis company. The transaction increases inventory levels and strengthens the Company’s position to deliver on partnership opportunities, expediting the fulfillment and revenue recognition of prospective REV™ machine sales.
Non-IFRS Financial Measures:
This news release refers to Adjusted EBITDA which is a non-IFRS financial measure. We define Adjusted EBITDA as earnings before deducting amortization and depreciation, stock-based compensation, foreign exchange gain or loss, finance expense or income, income tax expense or recovery and non-recurring income and expenses, restructuring and severance charges, and discontinued operations. This measure is not necessarily comparable to similarly titled measures used by other companies and should not be construed as an alternative to net income or cash flow from operating activities as determined in accordance with IFRS. Please refer to the reconciliation between Adjusted EBITDA and the most comparable IFRS financial measure reported in the Company’s consolidated interim financial statements.
| Three months ended March 31, | Six months ended March 31 | |||||||||
| ($ ‘000s) | 2025 | 2024 | 2025 | 2024 | ||||||
| Net income (loss) after income tax | 764 | (1,411 | ) | (182 | ) | (2,706 | ) | |||
| Amortization and depreciation | 302 | 288 | 595 | 563 | ||||||
| Stock-based compensation | 128 | 71 | 271 | 186 | ||||||
| Foreign exchange loss (gain) | 6 | (51 | ) | (141 | ) | (27 | ) | |||
| Finance income | (30 | ) | (54 | ) | (77 | ) | (106 | ) | ||
| Finance expense | 68 | 37 | 140 | 63 | ||||||
| Non-recurring (income) expense | – | – | (11 | ) | – | |||||
| Discontinued operations | (1,126 | ) | (148 | ) | (1,118 | ) | 3 | |||
| Adjusted EBITDA | 112 | (1,268 | ) | (523 | ) | (2,024 | ) | |||
Non-IFRS financial measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company’s operating results, underlying performance and prospects in a manner similar to EnWave’s management. Accordingly, these non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more information, please refer to the Non-IFRS Financial Measures section in the Company’s MD&A available on SEDAR+ www.sedarplus.ca.
About EnWave
EnWave is a global leader in the innovation and application of vacuum microwave dehydration. From its headquarters in Delta, BC, EnWave has developed a robust intellectual property portfolio, perfected its Radiant Energy Vacuum (REV™) technology, and transformed an innovative idea into a proven, consistent, and scalable drying solution for the food, pharmaceutical and cannabis industries that vastly outperforms traditional drying methods in efficiency, capacity, product quality, and cost.
With more than fifty partners spanning twenty-four countries and five continents, EnWave’s licensed partners are creating profitable, never-before-seen snacks and ingredients, improving the quality and consistency of their existing offerings, running leaner and getting to market faster with the company’s patented technology, licensed machinery, and expert guidance.
EnWave’s strategy is to sign royalty-bearing commercial licenses with food producers who want to dry better, faster and more economical than freeze drying, rack drying and air drying, and enjoy the following benefits of producing exciting new products, reaching optimal moisture levels up to seven times faster, and improve product taste, texture, color and nutritional value.
Learn more at EnWave.net.
EnWave Corporation
Mr. Brent Charleton, CFA
President and CEO
For further information:
Brent Charleton, CFA, President and CEO at +1 (778) 378-9616
E-mail: bcharleton@enwave.net
Dylan Murray, CPA, CA, CFO at +1 (778) 870-0729
E-mail: dmurray@enwave.net
Safe Harbour for Forward-Looking Information Statements: This press release may contain forward-looking information based on management’s expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expected expenditures, and the expected synergies following the closing are forward-looking statements. All third-party claims referred to in this release are not guaranteed to be accurate. All third-party references to market information in this release are not guaranteed to be accurate as the Company did not conduct the original primary research. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
