In This Article:
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Revenue: $1.2 million for Q1 2025, down 7% from $1.3 million in Q1 2024.
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Third-Party Royalty Revenue: $559,000, up $79,000 or 16% year-over-year.
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Gross Margin: 29% in Q1 2025, up from 18% in the prior year period.
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SG&A Expenses: $1.3 million, consistent with the prior year.
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Adjusted EBITDA: Loss of $624,000, an improvement from a loss of $756,000 in Q1 2024.
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Cash and Cash Equivalents: $4 million as of December 31, 2024.
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Net Working Capital Surplus: $6.8 million as of December 31, 2024.
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Credit Facility: Secured with Desjardins, up to $5 million available, with $1.9 million accessible at Canadian prime plus 1.5%.
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Term Loan: $500,000 with Desjardins, repayable over 48 months at Canadian prime plus 2%.
Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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EnWave Corp (NWVCF) reported an increase in third-party royalties to $559,000 for the quarter, up $80,000 year-over-year.
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The company signed two new license agreements with ELEA Technology of Germany and CNTA in Spain, expanding its international partnerships.
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Gross margin remained strong at 29%, indicating efficient cost management.
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EnWave secured a credit facility with Desjardins Group, providing financial flexibility for growth plans.
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The company has a robust sales pipeline and is experiencing positive momentum in its REVworx toll drying operation, with significant potential for future contracts.
Negative Points
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Revenues for Q1 decreased by 7% to $1.2 million compared to the previous year, primarily due to reduced equipment construction contract revenue.
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The company reported an adjusted EBITDA loss of $624,000 for Q1 2025, although this was an improvement from the previous year.
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There is uncertainty regarding the impact of potential tariffs on EnWave's royalty partners' ability to import products into the US.
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Only one 120-kilowatt machine is currently available for immediate deployment, which may limit the ability to meet sudden increases in demand.
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The company is still working towards breakeven, with profitability dependent on the consummation of large-scale sales.
Q & A Highlights
Q: Can you provide additional color on the potential impact of tariffs, especially with partners in the United States? A: Brent Charleton, CEO: Potential tariffs would not directly impact our imminent machine sales, as they involve companies outside the United States. However, tariffs could affect our royalty partners' ability to import snacks and ingredients into the US, depending on future tariff implementations.