EnWave Corporation (TSX.V:ENW / FSE: E4U), the Canadian tech company with a proprietary dehydration technology, continues to gather speed after its restructuring earlier this year. EnWave recently reported a full year set of results showing its best ever quarter so far.
For the full fiscal year 2021 the company generated its highest ever annual revenue of C$13.9 million and best ever net profit of C$1.2 million. For the 12 months of fiscal year 2021 royalties from third parties increased by C$100,000 to $920,000. Royalties in the last three months of the fiscal rose 28% on the quarter to C$245,000.
The revenue includes royalties from NutraDried, the unit that was struggling under previous management but turned around after a major restructuring in February. NutraDried created positive adjusted EBITDA in the last quarter and EnWave’s chief executive Brent Charleton expects the unit to return to profitability during the coming financial year.
EnWave’s not so secret weapon
Four of these are repeat purchase orders from existing royalty partners and three were completed by third party machine resellers. The technology company has significantly expanded its REV and reseller network and is now represented by a dozen companies helping fill the sales pipeline. EnWave expects all of the 540 kilowatts of new REV machine orders to be installed and to generate royalties by the fiscal third quarter of 2022.
“Our focus continues to be the building of a diversified royalty portfolio through the commercialization of REV primarily in the food and cannabis industries. We have signed several notable deals this past year including two licenses with US based multi-state operators in the cannabis industry including one of the largest MSOs in North America,” said Charleton.
Technology has been proven at scale for cannabis
During the last fiscal year the company signed 19 new commercial agreements, of which 14 are new royalty brand licenses and five are technology evaluation license option deals.
“Our tech is proven at scale for cannabis applications retaining at least 20% more terpenes and higher level of cannabinoids than room or rack drying. Thus we believe that REV could become the industry standard for cannabis drying. We have many active opportunities to pursue but the value to the sector is clearer than ever,” Charleton said.
The firm also started a global strategic partnership with Dole Sunshine Company to develop innovative nutrition solutions. EnWave is working with Dole on several projects to potentially integrate REV technology into its global production system.
EnWave will have a busy January. Its REVworx toll manufacturing facility is almost complete. The REV machines have been put in place and the recently purchased medium sized air dryer will be commissioned in January, making the facility ready for initial commercial production in the next few months. The firm is expected to confirm its first tolling contracts in early 2022.