Tuesday, 30 May 2023 11:13 GMT

Enwave Reports 2023 Second Quarter Consolidated Interim Financial Results

(MENAFN- GlobeNewsWire - Nasdaq) VANCOUVER, British Columbia, May 26, 2023 (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, 2023.

All values in thousands and denoted in CAD unless otherwise stated.

  • Reported net income from continuing operations of $687 and Adjusted EBITDA(1) of $1,151 for Q2 2023, representing an increase of $2,386 and $2,190 respectively relative to the comparable period of the prior year. The increase was primarily due to the resale of two large scale machines and the wind down of NutraDried in Q2 2023.
  • Completed the sale of NutraDried assets and a 100kW unit to Creations Foods U.S. incorporated for total consideration of $2,608 USD.
  • Reported revenue for Q2 2023 of $4,635, representing an increase of $3,137 relative to the comparable period of the prior year.
  • Commissioned two large scale 120kW units for the dehydration of fruit and vegetables in Italy and Thailand.

Consolidated Financial Performance:

($ '000s) Three months ended March 31, Six months ended March 31,
2023 2022 Change
2023 2022 Change
Revenues 4,635 1,498 209% 7,420 5,564 33%
Direct costs (2,371 ) (935) 154% (4,127 ) (2,724) 52%
Gross margin 2,264 563 302% 3,293 2,840 16%
Operating expenses
General and administration 697 745 (6%) 1,252 1,464 (14%)
Sales and marketing 276 521 (45%) 890 1,105 (19%)
Research and development 415 550 (28%) 812 1,087 (25%)
1,388 1,816 (24%) 2,954 3,656 (19%)
Net income(loss) continuing operations 687 (1,699) 140% (56 ) (1,384) 96%
Net loss discontinued operations (3,386 ) (687) (393%) (4,672 ) (1,255) (272%)
Adjusted EBITDA(1) 1,151 (1,039) 211% 895 (430) 308%
Loss per share:
Basic and diluted – continuous operations $ 0.01 $ (0.02) $ (0.00 ) $ (0.01)
Basic and diluted – discontinued operations $ (0.03 ) $ (0.00) $ (0.04 ) $ (0.01)
$ (0.02 ) $ (0.02) $ (0.04 ) $ (0.02)

(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 annual consolidated financial statements and MD&A are available on SEDAR at and on the Company's website

Key Financial Highlights for the Six Months Ended Q2 2023 (expressed in '000s):

  • The Company reported revenue for the six months ended Q2 2023 of $7,420 compared to $5,564 for the six months ended Q2 2022, an increase of $1,856. The increase in revenue is primarily due to the resale of two large scale machines in the first half of 2023, relative to the comparable period of the prior year which had one machine resale.
  • Royalty Revenues of $690 for the six months ended Q2 2023 compared to $750 for the six months ended Q2 2022, a decrease of $60. Some partners had higher base royalties during the calendar year, resulting in a smaller royalty obligation to meet the minimum annual royalty threshold. Additionally, some partners decided to forego exclusivity.
  • Gross margin for the six months ended Q2 2023 was 44% compared to 51% for six months ended Q2 2022. EnWave sold two high margin machines in the quarter however, due to increased large-scale machines in fabrication, direct costs increased.
  • SG&A expenses (including R&D) were $2,954 for the six months ended Q2 2023 compared to $3,656 for the six months ended Q2 2022, a decrease of $702. The decrease resulted from concerted efforts to reduce discretionary spending, including lower personnel costs in all departments.
  • Adjusted EBITDA (refer to Non-IFRS Financial Measures section below) for the six months ended Q2 2023 was $895 compared to a loss of $430 for the six months ended Q2 2022, an increase of $1,325. The increase in adjusted EBITDA was primarily due to the wind down of NutraDried and its classification as discontinued operations, the resale of two large scale machines and the reduction of SG&A expenses (including R&D).

Significant Corporate Accomplishments in Q2 2023 and Subsequently:

  • Commissioned a 120kW large-scale REVTM machine for Orto al Sole in Italy for production of premium dried fruits and vegetables for snacking.
  • Commissioned a 120kW large-scale REVTM machine in Asia for Dole to start production of better-for-you snack products under the brand Good CrunchTM ( ) using EnWave's REVTM technology.
  • Sold and commissioned a 120kW REVTM machine to a major Canadian cannabis company to produce premium smokeable flower, cannabis plant material for extraction and edible products.
  • Sold two 10kW REVTM machines to a current royalty partner tripling its North American REVTM manufacturing capacity for production to support a growing market demand.
  • Signed a license with PiP International Incorporated (“PIP”) to allow for the commercialization of high-value plant-based ingredients. Additionally, PIP purchased a 10kW REVTM machine for continued product development.

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 impairment, restructuring and severance charges, government assistance 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 financial statements.

Three months ended
March 31,
Six months ended
March 31
($ '000s) 2023 2022 2023 2022
Net (loss) income after income tax (2,699) (2,386) (4,728) (2,639)
Amortization and depreciation 276 243 565 446
Stock-based compensation 197 378 365 612
Foreign exchange loss (9) 47 32 66
Finance expense (income), net - (8) (11) (23)
Government assistance - - - (147)
Discontinued operations 3,386 687 4,672 1,255
Adjusted EBITDA 1,151 (1,039) 895 (430)

Non-IFRS financial measures should be considered together with other data prepared 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 .

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 (REVTM) 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 royalty-generating partners spanning twenty six 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 and cannabis producers who want to dry better, faster and more economical than freeze drying, rack drying and air drying, and enjoy the following benefits:

  • Food and ingredients companies can produce exciting new products, reach optimal moisture levels up to seven times faster, and improve product taste, texture, color and nutritional value.
  • Cannabis producers can dry four to six times faster, retain up to 20% more terpenes and 25% more cannabinoids, and achieve at least a 3-log reduction in crop-destroying microbes.

EnWave Corporation

Mr. Brent Charleton, CFA
President and CEO


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