EnWave Reports 16% YoY Decrease In Q1 Revenue, Trims Expenses By 12%

EnWave Corporation NWVCF ENW E reported its consolidated interim financial results for the first quarter ended December 31, 2021.

Q1 Financial Highlights

• Consolidated revenue amounted to $6.3 million compared to nearly $7 million in the prior quarter and $7.5 million in the same period of 2021.
• EnWave’s business unit revenue was roughly $4 million compared to $2.7 million in the prior year’s period, representing an increase of $1.4 million.
• EnWave’s royalty revenue totaled $505 000 representing a year-over-year increase of 58%.
• NutraDried’s revenue amounted to $2.2 million, representing a year-over-year decrease of $2.6 million.
• The gross margin was 43% compared to 23% for the first quarter of fiscal 2021.
• Adjusted EBITDA, a non-IFRS financial measure, was income of $301 000 compared to a loss of $911 000 for the prior year’s quarter, representing an improvement of $610 000.
• Trimmed selling, general, and administrative expenses across both EnWave and NutraDried, reporting a 12% reduction or $381 000 in operating expenses compared to the first quarter of 2021.
• Net loss totaled $253 000, representing an 82% year-over-year drop.
• Obtained TSX Venture exchange approval for a normal course issuer bid starting on October 29, 2021, and ending on October 28, 2022, whereby EnWave is entitled to purchase up to 2,204,101 shares in any 30-day period up to a maximum of 10,778,194 shares during the year.

Significant Corporate Accomplishments In Q1 2022 & Subsequently

• Commissioned a 120kW REV machine for EnWave’s Illinois-based cannabis partner for the rapid processing of premium smokeable cannabis.
• Commissioned a 100kW REV machine for Patatas Fritas Torres in Spain to scale-up the commercial launch of all-natural cheese snacks for the European market.
• Sold a second 10kW REV machine to Dairy Concepts IRL of Ireland to scale-up manufacturing of its lineup of Cheese O’s shelf-stable cheese snacks
• Signed a Technology Evaluation Agreement with Protein Isolate Plant International Inc. to evaluate the potential commercial use of REV technology in PIP International’s large scale yellow pea wet fractionation processing facility.
• Received a purchase order from Consulting Fresh Business, which is doing business as for a 10kW REV machine to be installed in Spain for intensive new product research and development using EnWave’s technology to develop further commercial applications in Europe.
• Advanced the Global Strategic Partnership with Dole Worldwide Food & Beverage Group, with Dole acquiring a second 10kW REV machine.
• Confirmed the commercial scale-up of EnWave’s Italian royalty partner, Orto Al Sole, with the purchase of a 120kW REV machine for the large-scale drying of premium fruits and vegetables in Italy.
• Launched an exciting lineup of Moon Cheese Sticks, an all-natural cheese stick snack that comes in five flavours: Kick It Up A Nacho, Yum Inferno, Cheesy Does It, Rowdy Ranch and Wild White Chedda’.
• Secured material new distribution for Moon Cheese with major U.S. retailers, including up-to 2,200 Kroger stores, 1,300 new Target locations among others. The new distribution confirmed by NutraDried is expected to begin shipping in the second half of fiscal 2022.

Photo: Courtesy of Nataliya Vaitkevich from Pexels