EnWave Corp (TSX-V:ENW, OTC:NWVCF) reported a sharp revenue increase in the fourth quarter of fiscal 2024, driven by higher royalties and the resale of a large-scale machine.
The Vancouver-based food technology company posted Q4 revenue of C$3.63 million, up C$2.18 million from the prior-year period.
Quarterly royalties climbed 68% to C$642,000 bolstered by new exclusivity payments under a Commercial License Agreement with an existing partner.
Adjusted EBITDA for Q4 reached C$450,000, reversing a loss of C$324,000 in the prior-year quarter.
While annual revenue for fiscal 2024 fell 28% to C$8.18 million, attributed to fewer machine sales and reduced production, the decline was partially offset by a 34% rise in annual royalty revenues to C$1.96 million, driven by increased exclusivity payments and higher partner production.
EnWave highlighted several significant milestones during and after Q4. The firm signed agreements with ELEA Technology GmbH for a 10kW REV machine lease and the Spanish National Centre for Food Technology and Safety (CNTA) for a similar machine purchase.
EnWave secured a revolving credit facility with Desjardins Group, providing up to C$5 million at an interest rate of Canadian prime plus 1.5%, alongside a C$500,000 loan.
The firm also reached a global settlement with its former CEO and employees, barring them from competing in vacuum microwave dryer sales and reclaiming related patents.
EnWave’s patented vacuum microwave dehydration technology, which enhances food preservation and processing, remains central to its growth strategy. The company aims to expand its global licensing and equipment sales footprint despite challenges in machine fabrication and sales.