Bay Street News

EnWave Announces Fourth Quarter and 2018 Annual Consolidated Financial Results 

VANCOUVER, British Columbia, Dec. 17, 2018 (GLOBE NEWSWIRE) — EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) today reported the Company’s consolidated financial results for the fourth quarter and year-ended September 30, 2018.

Consolidated Financial Performance:

($ ‘000s) Three months ended
September 30,
Year ended
September 30,
  2018 2017   Change
%
  2018   2017   Change
%
 
                   
Revenues 7,355 3,630   103 % 22,825   15,954   43 %
Direct costs 4,097 2,764   48 % 13,915   11,654   19 %
  Gross margin 3,258 866   276 % 8,910   4,300   107 %
                   
Operating Expenses                  
General and administration 730 466   57 % 2,439   2,072   18 %
Sales and marketing 1,353 754   79 % 3,731   2,160   73 %
Research and development 313 199   57 % 1,213   1,138   7 %
  2,396 1,419   69 % 7,383   5,370   37 %
                   
Net income (loss) for the period after taxes 75 (1,060 ) 107 % (945 ) (2,986 ) 68 %
Adjusted EBITDA(*) 1,300 (278 )   2,932   6    
                   
Earnings (loss) per share – basic and diluted 0.00 (0.01 )    (0.01 )  (0.04 )  

EnWave’s annual and interim consolidated financial statements and MD&As are available on SEDAR at www.sedar.com and on the Company’s website www.enwave.net.

Key Financial Highlights for 2018 and Q4 (expressed in ‘000s):

Significant Accomplishments in 2018:

Sales Pipeline:

Currently, the Company has 11 prospective royalty partners actively engaged in Technology Evaluation and License Option Agreement (“TELOA”) projects and the U.S. Army in an advanced stage of technology evaluation. The Company’s objective is to convert these TELOA projects into royalty-bearing commercial license agreements and to secure purchase commitments for REVTM machine capacity. The Company also has several existing royalty partners that have tested the market with small-scale REVTM machinery and are evaluating the business case to scale-up to large-scale REVTM processing lines. The Company anticipates several long-term projects in the pipeline to convert to CLAs as well as additional REVTM machine capacity to be ordered by existing partners in 2019.

EnWave’s strategy is also to address the expanding medical and recreational cannabis processing sector in legalized jurisdictions. The Company has validated the business model for licensing its patented REVTM dehydration technology for the rapid dehydration and decontamination of cannabis with Tilray®, and the business case is sound. The strategy in the near-term is to secure additional royalty-bearing licenses for processing of cannabis, as well as additional equipment purchase orders for REVTM machine capacity in Canada and other legalized markets.

EnWave has been growing its prospective royalty partner pipeline as it commercializes REVTM across the food, legalized cannabis and pharmaceutical sectors as part of its strategy to build a large, diversified royalty-bearing portfolio.

(*) Non-IFRS Financial Measures:
Adjusted EBITDA is not a measure of financial performance under IFRS. 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 and non-recurring impairment charges. 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 discussion included in the Company’s annual MD&A for the year ended September 30, 2018.

About EnWave
EnWave Corporation, a Vancouver-based advanced technology company, has developed Radiant Energy Vacuum (“REV™”) – an innovative, proprietary method for the precise dehydration of organic materials. EnWave has further developed patent-pending methods for uniformly drying and decontaminating cannabis through the use of REV™ technology, shortening the time from harvest to marketable cannabis products. 

REV™ technology’s commercial viability has been demonstrated and is growing rapidly across several market verticals in the food, and pharmaceutical sectors including legal cannabis. EnWave’s strategy is to sign royalty-bearing commercial licenses with industry leaders in multiple verticals for the use of REV™ technology. The company has signed over twenty royalty-bearing licenses to date, opening up nine distinct market sectors for commercialization of new and innovative products. In addition to these licenses, EnWave has formed a Limited Liability Corporation, NutraDried Food Company, LLC, to develop, manufacture, market and sell all-natural cheese snack products in the United States under the Moon Cheese® brand. 

EnWave has introduced REV™ as the new dehydration standard in the food and biological material sectors: faster and cheaper than freeze drying, with better end product quality than air drying or spray drying. EnWave currently has three commercial REV™ platforms:

1.    nutraREV® which is used in the food industry to dry food products quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour;

2.    powderREV® which is used for the bulk dehydration of food cultures, probiotics and fine biochemicals such as enzymes below the freezing point, and

3.     quantaREV® which is used for continuous, high-volume low-temperature drying.

An additional platform, freezeREV®, is being developed as a new method to stabilize and dehydrate biopharmaceuticals such as vaccines and antibodies. More information about EnWave is available at www.enwave.net.

EnWave Corporation
Mr. Brent Charleton, CFA
President and CEO

For further information:

John P.A. Budreski, Executive Chairman at +1 (416) 930-0914
E-mail: jbudreski@enwave.net  

Brent Charleton, CFA, President and CEO at +1 (778) 378-9616
E-mail: bcharleton@enwave.net      

Deborah Honig, Corporate Development at + 1 (647) 203-8793
E-mail: dhonig@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.