EnWave Reports 2025 Third Quarter Consolidated Interim Financial Results

EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the “Company”) today reported the Company’s consolidated interim financial results for the third quarter ended June 30, 2025.

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

• Reported revenue for Q3 2025 of $2,744, an increase of $122 relative to the comparable period in the prior year. During the period, there was the completed fabrication of a large-scale 120kW REV™ machine for Procescir of Mexico and the initial fabrication of two 60kW REV™ machines sold to Microdried, EnWave’s longest standing royalty partner.
• Reported royalty revenues for Q3 2025 of $431, an increase of $6 relative to the comparable period in the prior year. Royalties grew due to the increased number of royalty partners, and the expansion of both product sales, and REV™ machine capacity utilization for the quarter, offset by a decrease in royalties associated with the license termination and machinery buyback from an Illinois, U.S. based cannabis company during the period. 
• Gross margin for the three months ending Q3 2025 was 19% compared to 44% for the three months ending Q3 2024. The decrease in margin was primarily a result of the production sales mix and a high-margin large scale machine resale in the comparative period.
• Reported an increase in Selling, General & Administrative (“SG&A”) costs, including Research & Development (“R&D”) of $40 for Q3 2025 relative to the comparable period in the prior year, with the increase primarily related to sales personnel, increased tradeshow attendance, and the timing of patent maintenance fees, offset by a decrease in legal fees. 
• Reported Adjusted EBITDA⁽¹⁾ loss for Q3 2025 of $575, a decrease of $660 from the comparable period in the prior year.

Performance financière consolidée :

Note:

(1) L'EBITDA ajusté est une mesure financière non conforme aux normes IFRS. Se référer à l'information sur les mesures financières non-IFRS ci-dessous pour un rapprochement avec l'équivalent IFRS le plus proche.

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 Nine Months Ended June 30, 2025 (expressed in 000’s)

• Reported revenue of $7,610, an increase of $3,063 relative to the comparable period in the prior year. The increase was primarily related to improved machine sales. 
• Reported Royalty revenues of $1,464, an increase of $145 or 11% relative to the comparative period in the prior year. Royalties grew due to the increased number of royalty partners, product sales, partner production, and exclusivity payments.
• Reported an increase in SG&A costs of $54 for the nine months ending June 30, 2025, relative to the comparable period in the prior year, with the increase primarily related to increased tradeshow attendance, recruitment costs, consulting fees and sales personnel, offset by reduced legal costs.
• Reported an Adjusted EBITDA⁽¹⁾ loss of $1,098 for the nine months ended June 30, 2025, an improvement of $841 from the comparable period in the prior year.

Significant Corporate Accomplishments in Q3 2025 and Subsequently:

• Signed an equipment purchase agreement and licence agreement amendment with MicroDried® for a 60kW REV™ machine and the exclusive rights to use REV^TM 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 a 120kW REV™ machine.
• 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. 
• Signed a license agreement amendment with Procescir S.A. de C.V. for an additional right to produce fruit and vegetables products for well-known American snack brand. 
• Signed an equipment purchase agreement with MicroDried® for two 10kWs and a 60kW REV™ machine and executed an additional royalty-bearing commercial license agreement for exclusive rights to produce mochi and Greek yogurt products in North America. The licence also includes the right to manufacture additional dairy applications, such as shredded cheese and cheesecake.
• Subsequent to the quarter, the Company signed an equipment purchase agreement with Dairy Concepts for two additional 10kW REV™ dehydration machines to expand dairy snack production in Europe.
• Subsequent to the quarter, the Company entered into an agreement with Clarus Securities Inc. (“Clarus”), as lead agent and sole bookrunner, pursuant to which Clarus agreed to sell, on a “best efforts” private placement basis, up to 7,500,000 common shares of the Company at a price per Share of C$0.40 for aggregate gross proceeds to the Company of up to C$3,000,000 (the “Offering”).  The Offering closed on August 21, 2025, and was fully subscribed. 

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 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.

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.

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.

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, 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 concerning the completion of the Offering, the use of proceeds of the Offering, the approval of the TSXV, the growth of the Company’s production capacity and the effects thereof, and the 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 or statements that include words such as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words are forward-looking statements. These statements are based on the current opinions and expectations of management and 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 as described in more detail in the Company’s recent securities filings available at www.sedarplus.ca, 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. The Company does not intend, and disclaims any obligation, except as required by applicable laws, to update or revise any forward-looking statements.

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