EnWave Reports 2024 Second Quarter Consolidated Interim Financial Results

Delta, BC, 24 mai 2024

today reported the Company’s consolidated interim financial results for the second quarter ended March 31, 2024.  

Toutes les valeurs sont exprimées en milliers et en dollars canadiens, sauf indication contraire.

• Reported royalty revenues of $414, representing an increase of $137 relative to the comparable period in the prior year. Royalties for the six months ending March 31, 2024 were $894 compared to $690 for the same period ending March 31, 2023, an increase of $204 or 30%. Royalties grew due to increased partner product sales and production offset by a decrease in exclusivity fees.
• Reported revenue for Q2 2023 of $663, representing a decrease of $3,972 relative to the comparable period in the prior year.   The decrease was related to fewer machine sales and machines in fabrication due to the inherent volatility in large-scale Radiant Energy Vacuum (“REV™”) machine orders.
• Reported Selling, General & Administrative (“SG&A”) costs (including Research & Development (“R&D”)) of $1,389 which was consistent with the comparable period in the prior year.  SG&A costs for the six months ending March 31, 2024 were $2,652 compared to $2,954 for the same period ending March 31, 2023, a decrease of $302 or 10%.  The Company continues to make concerted efforts to manage discretionary spending. 
• Gross margin for the three months ended Q2 2024 was -25% compared to 49% for the three months ended Q2 2023. The decrease in margin was a result of fewer machine sales and machines in fabrication to absorb fixed overhead costs.
• Reported an Adjusted EBITDA⁽¹⁾ loss of $1,268 for Q2 2024, compared to an Adjusted EBITDA⁽¹⁾ profit of $1,151 in the same period in the prior year.

Performance financière consolidée :

• 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.

Significant Corporate Accomplishments in Q2 2024 and Subsequently:

• Signed an Equipment Purchase Agreement with an existing Royalty Partner for a 120kW REV™ dehydration machine to commercialize its own branded snack products and co-manufacture new snack and ingredient products with several major consumer packaged goods companies.
• Signed a Technology Evaluation and License Option Agreement with a North American multi-state cannabis company to evaluate REV™ Technology over other incumbent drying methods.  
• Signed a toll manufacturing agreement with BranchOut Food Inc. to produce vegetable snack products on an interim basis at the Company’s REVworx facility in Delta, Canada. 
• Signed a new royalty-bearing commercial license and equipment lease agreement for two 10kw REV™ machines with an established South American food manufacturer that currently sells health supplements, snacks, cereals, baked goods, among other products.
• Signed a Technology Evaluation and License Option Agreement with a North American food company led by a renowned chef with multiple Michelin Stars.

Mesures financières non conformes aux IFRS :

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 impairment, 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.

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.

À propos d'EnWave  

EnWave est un leader mondial dans l'innovation et l'application de la déshydratation par micro-ondes sous vide. Depuis son siège à Delta, en Colombie-Britannique, EnWave a développé un solide portefeuille de propriété intellectuelle, perfectionné sa technologie Radiant Energy Vacuum (REV™) et transformé une idée novatrice en une solution de séchage éprouvée, cohérente et évolutive pour les industries alimentaire, pharmaceutique et du cannabis, qui surpasse largement les méthodes de séchage traditionnelles en termes d'efficacité, de capacité, de qualité des produits et de coût.

Avec plus de cinquante partenaires générateurs de redevances répartis dans vingt-six pays et sur cinq continents, les partenaires licenciés d'EnWave créent des en-cas et des ingrédients rentables et inédits, améliorent la qualité et la régularité de leurs offres existantes, réduisent leurs coûts et accèdent plus rapidement au marché grâce à la technologie brevetée de la société, à ses machines sous licence et à ses conseils d'experts.

La stratégie d'EnWave consiste à signer des licences commerciales assorties de redevances avec les producteurs de denrées alimentaires qui souhaitent sécher mieux, plus rapidement et plus économiquement que la lyophilisation, le séchage sur claies et le séchage à l'air, et profiter des avantages suivants : produire de nouveaux produits intéressants, atteindre des niveaux d'humidité optimaux jusqu'à sept fois plus rapidement, et améliorer le goût, la texture, la couleur et la valeur nutritionnelle des produits.

Pour en savoir plus, consultez le site EnWave.net. 

EnWave Corporation 

M. Brent Charleton, CFA 

Président et directeur général 

Pour plus d'informations : 

Brent Charleton, CFA, président et directeur général au +1 (778) 378-9616
E-mail : bcharleton@enwave.net  

Dylan Murray, CFO at +1 (778) 870-0729
E-mail : dmurray@enwave.net   

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