EnWave Corp (TSX-V:ENW, OTC:NWVCF) CEO Brent Charleton spoke with Proactive about the company’s recent strides, including a partnership with ELEA Technology to develop healthier snacks, a strong rebound in 2024 financial performance, and a key board appointment.
Charleton shared how these advancements, alongside EnWave’s patented REV drying technology, are shaping the company’s growth strategy for 2025 and beyond.
Proactive: There’s been a lot of news over the last few days. First, you've announced a partnership with ELEA Technology. This is for healthier snacks. Tell me about how this came about.
Brent Charleton: We previously explored combining their patented pulse liquid fuel technology with our patented drying technology, REV. Initially, it was exploratory, but now, with this specific project, their clients want to develop better-for-you potato and root vegetable snacks. ELEA will use one of our 10-kilowatt units at their facility in Germany. They’ll work with their clients to explore commercialization, which could lead to more machine sales to large potato and vegetable companies.
The unit is expected to arrive in February next year. Is this aimed at replacing frying?
Yes, it dramatically reduces fat absorption and makes products shelf-stable by using controlled lower temperatures. This also minimizes acrylamide buildup, which is common in current potato chip snacks.
That’s exciting. Now, let’s talk about your financial results. How would you sum up 2024?
The first half was bad, but the second half was much better. We had positive adjusted EBITDA in the past two quarters and achieved positive net income in Q4. It’s been a tale of two stories, and we hope to continue the second-half momentum into fiscal 2025.
Some highlights from Q4 include a 149% revenue increase and gross margins up 243%. These are strong indicators heading into the next year.
Absolutely. We plan to maintain our expense structure and pricing strategy for reasonable margins on machinery sales. Royalties grew from 1.5 million to 2 million year-over-year, and we expect further increases in fiscal 2025 due to new large-scale machines now in production.
Lastly, you’ve appointed a new board member. Tell us about that.
Mary Richie, who retired recently, served for almost a decade and did an excellent job as chair of the audit committee. She’s now enjoying retirement. We recruited Louise Lalonde, who brings excellent financial acumen and will seamlessly step into the audit chair role.
It sounds like the company is in a strong position heading into 2025.
We’re seeing many repeat sales opportunities from blue-chip partners with successful products. With proper volume forecasting and delivery timelines, we expect steady news flow starting in Q2 and continuing throughout the year.
Quotes have been lightly edited for style and clarity