EnWave Reports 2025 Third Quarter Consolidated Interim Financial Results

Executive Summary

• EnWave Corporation reported consolidated interim financial results for the third quarter and nine months ended June 30, 2025, highlighting a significant increase in revenue driven by improved machine sales and royalty growth.
• The company reported a net loss from continuing operations of $1,162,000 for Q3 2025, a substantial increase from the $235,000 loss in the prior year period, primarily due to a decrease in gross margin and increased SG&A costs.
• Subsequent to the quarter, EnWave closed a fully subscribed private placement raising up to C$3,000,000 in gross proceeds and signed multiple new equipment purchase and license agreements with partners including MicroDried, Procescir, and Dairy Concepts.

Key Details

• Q3 2025 Financial Performance (Three Months Ended June 30, 2025):

  • Revenue: $2,744,000 (up 5% from $2,622,000 in Q3 2024).
  • Royalty Revenue: $431,000 (up $6,000 from prior year).
  • Gross Margin: 19% (down from 44% in Q3 2024); Gross profit was $535,000 (down 54% from $1,151,000).
  • Operating Expenses: $1,405,000 (up 3% from $1,365,000).
    • General and Administration: $532,000 (down 20%).
    • Sales and Marketing: $485,000 (up 35%).
    • Research and Development: $388,000 (up 13%).
  • Net Loss (Continuing Ops): $(1,162,000) (vs. $(235,000) in Q3 2024).
  • Adjusted EBITDA: $(575,000) loss (vs. $85,000 profit in Q3 2024).
  • EPS: $(0.01) basic and diluted.

• Nine Months Ended June 30, 2025 Financial Performance:

  • Revenue: $7,610,000 (up 67% from $4,547,000).
  • Royalty Revenue: $1,464,000 (up 11% or $145,000).
  • Gross Profit: $2,084,000 (up 71% from $1,217,000).
  • Net Loss (Continuing Ops): $(2,462,000) (vs. $(2,938,000) in prior year).
  • Adjusted EBITDA: $(1,098,000) loss (improvement of $841,000 from $(1,939,000) loss in prior year).

• Operational Updates & Corporate Actions (Q3 & Subsequent):

  • MicroDried Agreements: Signed equipment purchase agreement for a 60kW REV™ machine and exclusive rights for apple ingredient production in WA, OR, and ID. Also signed agreement for two 10kW and one 60kW REV™ machines, plus exclusive royalty-bearing license for mochi, Greek yogurt, shredded cheese, and cheesecake production in North America.
  • Procescir Agreements: Completed fabrication of a 120kW REV™ machine; received second progress payment. Signed license amendment for fruit/vegetable products for an American snack brand.
  • Creations Foods US Inc.: Signed license amendment for non-exclusive rights to produce dried cheese snacks for pet treats in the US.
  • Dairy Concepts: Signed equipment purchase agreement for two additional 10kW REV™ machines for European dairy snack production (subsequent to quarter).
  • Illinois Cannabis Company: License terminated and machinery buyback occurred, resulting in decreased royalties.

• Private Placement Offering:

  • Agent: Clarus Securities Inc. (lead agent and sole bookrunner).
  • Structure: "Best efforts" private placement.
  • Shares: Up to 7,500,000 common shares.
  • Price: C$0.40 per share.
  • Gross Proceeds: Up to C$3,000,000.
  • Status: Closed on August 21, 2025, and fully subscribed.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.