Vancouver, BC

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, 2022.

• Q2 YTD royalties grew to $750K representing 55% growth in our high-margin royalty base year-over-year.
• NutraDried’s Q2 revenue grew by 142% relative to Q1 with material new Moon Cheese^® distribution into Kroger and a Costco Canada program.
• NutraDried launched Moon Cheese^® Crunchy Sticks with Whole Foods Market and confirmed its second major distribution commitment from Walmart in 400 U.S. stores.
• REVworx™ facility is operational and progress is underway to obtain food safety certifications.
• EnWave’s potential new royalty partner pipeline is robust with six active technology evaluation agreements and many near-term opportunities for large-scale machinery scale-up with current partners.

Los estados financieros consolidados anuales de EnWave y el MD&A están disponibles en SEDAR en www.sedar.com y en el sitio web de la empresa www.enwave.net.

Key Financial Highlights for Q2 (expressed in ‘000s):

• The Company reported consolidated revenue for Q2 2022 of $6,881, compared to $4,686 in Q2 2021, an increase of $2,195 or 47%.
  • EnWave’s segment revenue was $1,494 compared to $2,348 in Q2 2021, a decrease of $854 or 36%. Royalty revenues for Q2 2022 were $245 compared to $163 for Q2 2021, an increase of $82 or 51%. Machine sales were lower than in the comparable quarter, however, the machine sales pipeline is robust, and the Company expects to confirm further large-scale orders with royalty partners scaling-up projects in the near future. Machinery related revenue has been historically lumpy and management expects this to continue.
  • NutraDried’s segment revenue was $5,387 compared to $2,388 for Q2 2021, an increase of $2,999 or 126%. In Q2 NutraDried secured a national program for Moon Cheese^® in Costco Canada, and further expanded its grocery distribution into Kroger; Moon Cheese^® Crunchy Sticks launched nationally into Whole Foods Market.
• Gross margin for Q2 2022 was 20%, up from 10% for Q2 2021, and down from 43% in Q1 2022. Gross margin in Q2 was downwardly impacted by lower EnWave machine revenue relative to Q1, which was offset partially by growth in higher margin royalty revenues.
• Adjusted EBITDA⁽¹⁾ (refer to Non-IFRS Financial Measures section below) for Q2 2022 was a loss of $1,218 compared to a loss of $1,968 for Q2 2021, an improvement of $750. The Company is focused on reaching consistent positive Adjusted EBITDA⁽¹⁾ by scaling revenues, including growing its royalty portfolio, while tightly controlling expenses.
• SG&A expenses (including R&D) were $3,239 in Q2 2022, compared to $2,981 in Q2 2021 an increase of $258. EnWave continued to invest in sales and business development activities to drive penetration of REV™ technology into the global food and cannabis industries.

Significant Corporate Accomplishments in Q2 2022 and Subsequently:

• Sold a 120kW REV™ machine to EnWave’s Italian royalty partner, Orto Al Sole, to scale-up commercial drying of premium fruits and vegetables in Italy. The machine is expected to be delivered in Summer 2022 to begin royalty-bearing commercial production.
• Advanced the global strategic partnership with Dole Worldwide Food and Beverage Group (“Dole”) and placed a second 10kW machine with Dole to accommodate the market trial of its line of products made using EnWave’s technology.
• Launched the REVworx^™ state-of-the-art vacuum-microwave toll drying facility and installed both a 60kW and 10kW REV™ machine to provide toll drying services for companies of all sizes.
• Obtained a new U.S. patent for the drying and decontamination of cannabis using REV™ technology. This new patent further strengthens EnWave’s intellectual property protection of its method of reducing bioburden in cannabis while concurrently achieving fast, uniform drying.
• NutraDried launched its new lineup of Moon Cheese^® Crunchy Sticks, an all-natural cheese stick snack that comes in five delicious flavours. The new product line debuted at Expo West, and NutraDried has already confirmed national distribution for three flavours of Moon Cheese^® Sticks with Whole Foods Market in the U.S, as well as distribution with Walmart. The new product will be launched online via www.mooncheese.com and amazon.com in Q3.
• Received a purchase order from Nomad Nutrition for a second 10kW machine to double their commercial production capacity for the sale of their Ready-To-Eat adventure meals.
• Signed a Technology Evaluation and License Option Agreement with GoldenCrops Corporation, a Southeast Asian ingredient manufacturer, to evaluate the potential commercial use of REV™ technology in producing a variety of fruit, dairy and grain products.
• Installed 10kW REV™ machine in Spain for Fresh Business to conduct intensive new product development using EnWave’s technology as a new chokepoint for expansion into Western European industries.

Conferencia telefónica:

EnWave’s executive management will be holding a conference call to discuss its 2022 Second Quarter Financial Results and the Company’s state of affairs. Prepared remarks will be given followed by a question-and-answer session for shareholders.

Date: May 27, 2022
Time: 7:00am PST / 10:00am EST
Participant Access: 1-877-407-2988 (toll free number)
Webcast:  https://event.choruscall.com/mediaframe/webcast.html?webcastid=J8fQb02Y

¹ 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,  non-recurring impairment, restructuring and/or severance charges, and government assistance. 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 financial statement.

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 www.sedar.com.

DESCARGUE LA ACTUALIZACIÓN AQUÍ

Acerca de EnWave

EnWave es líder mundial en innovación y aplicación de la deshidratación por microondas al vacío. Desde su sede en Vancouver (Columbia Británica), EnWave ha desarrollado una sólida cartera de propiedad intelectual, ha perfeccionado su tecnología Radiant Energy Vacuum (REV™) y ha transformado una idea innovadora en una solución de secado probada, consistente y escalable para las industrias alimentaria, farmacéutica y del cannabis que supera ampliamente a los métodos de secado tradicionales en eficiencia, capacidad, calidad del producto y coste.

Con más de cincuenta socios generadores de royalties repartidos por veinte países y cinco continentes, los socios licenciatarios de EnWave están creando aperitivos e ingredientes rentables y nunca vistos, mejorando la calidad y consistencia de sus ofertas existentes, funcionando de forma más ágil y llegando al mercado más rápidamente con la tecnología patentada de la empresa, la maquinaria bajo licencia y la orientación de expertos.

La estrategia de EnWave consiste en firmar licencias comerciales con derechos de autor con productores de alimentos y cannabis que deseen secar mejor, más rápido y de forma más económica que la liofilización, el secado en bastidor y el secado al aire, y disfrutar de las siguientes ventajas:

- Las empresas alimentarias y de ingredientes pueden elaborar productos nuevos e interesantes, alcanzar niveles óptimos de humedad hasta siete veces más rápido y mejorar el sabor, la textura, el color y el valor nutritivo de los productos.

- Los productores de cannabis pueden secar entre cuatro y seis veces más rápido, retener hasta un 20% más de terpenos y un 25% más de cannabinoides, y lograr una reducción de al menos 3 logs en los microbios que destruyen los cultivos.

Más información en EnWave.net.

EnWave Corporation
Sr. Brent Charleton, CFA
Presidente y Consejero Delegado

Para más información:

Brent Charleton, CFA
Presidente y Director General +1 (778) 378-9616
Correo electrónico: bcharleton@enwave.net

Dan Henriques, CA, CPA,
Director Financiero al +1 (604) 835-5212
Correo electrónico: dhenriques@enwave.net

Para consultas de los medios de comunicación:
Correo electrónico: media@enwave.net

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