EnWave Corp (NWVCF)

[Dromers]

For Q1 2022, the Company had consolidated revenues of $6,297, compared to $7,533 in the same period in fiscal 2021, a decrease of 16% or $1,236. The Company had a consolidated net loss of $253 in the Q1 2022, compared to a consolidated net loss of $1,371 for Q1 2021, an improvement of $1,118.

The Company reported an Adjusted EBITDA(*) profit of $301 for Q1 2022 compared to an Adjusted EBITDA(*) loss of $911 for Q1 2021, an improvement of $1,212. The EnWave segment reported positive Adjusted EBITDA(*) in Q1 2022 while NutraDried had a negative Adjusted EBITDA(*).

During Q1 2022, EnWave reported revenues of $4,067 compared to $2,676 for Q1 2021, an increase of $1,391 or 52%. EnWave’s revenues were higher due to an increase in machine sales paired with higher royalties compared to the prior year. EnWave reported segment income of $600 for Q1 2022 compared to a segment loss of $25 for Q1 2021, an increase of $625. During Q1 2022, the Company had seven customized machines under fabrication, four of which were large-scale machines and three of which were GMP small-scale machines.

EnWave had third-party royalty revenue of $505 for Q1 2022, compared to $320 for Q1 2021, an increase of $185 or 58%. Q1 2022 base royalties increased due to the installation of more royalty- bearing machines and commercial growth in the products being produced. Additionally, the Q1 royalty amounts include annual payments made by certain royalty partners to retain exclusivity under the license agreement.

NutraDried reported revenues of $2,230 for the three months ended December 31, 2021, compared to $4,857 for the three months ended December 31, 2020, a decrease of $2,627 or 54%. NutraDried sales decreased due to lower sales to Costco in Q1 2022 compared to Q1 2021, which had shipments under a national “buy on get one free” promotion at Costco. NutraDried reported segment loss of $853 for Q1 2022, compared to a loss of $1,346 for Q1 2021, an improvement of $493.