EnWave Corp (TSX-V:ENW, OTC:NWVCF, FRA:E4U) announced it has inked a technology evaluation and license option agreement with one of the world's largest multinational food companies.
The agreement calls for the partner to evaluate REV technology at commercial scale across a range of food categories it serves globally.
The partner is described as a global leader in branded consumer foods with annual revenues exceeding US$20 billion, with operations spanning retail grocery, snack foods, breakfast cereals, frozen foods, convenience meals, and ingredient solutions. The company distributes products in more than 100 countries and holds a portfolio of internationally recognized household brands.
If the evaluation is completed successfully, the agreement gives the partner the option to negotiate one or more commercial royalty-bearing licenses for the use of REV technology.
The evaluation program will focus on REV's ability to preserve flavor, texture, color, and nutritional characteristics while reducing drying times compared to conventional dehydration methods.
The partner is also expected to assess REV's potential to improve product quality and streamline manufacturing across its largest product lines.
Evaluation work is expected to commence over the coming months at the partner's facilities and at EnWave's innovation center in Vancouver.
The partnership news came as EnWave reported its second-quarter financial results, with the company pointing to growing partner momentum and expanding distribution as indicators of stronger royalty revenue ahead.
Royalty revenue held relatively steady, with total royalties of C$465,000 down just 2% year over year. EnWave said it expects royalty revenue to grow in coming periods, noting that several partners have signaled inventory builds ahead of increased commercial activity and broader product distribution.
For the three months ended March 31, 2026, revenue was C$1.16 million, down C$2.53 million from the same period a year earlier, a decline the company attributed to the timing of large-scale REV machine orders.
Gross margin improved to 35% from 33% in Q2 2025, driven by lower fabrication costs on machines under contract.
SG&A expenses, including research and development, rose C$78,000 year over year, primarily reflecting investment in additional sales personnel. Adjusted EBITDA loss was C$775,000 for the quarter.
For the six months ended March 31, 2026, base royalties rose 4% to C$934,000 and total royalty revenues climbed 5% to C$1.09 million, supported by a growing partner base, higher partner production volumes, and exclusivity payments.
Shares of EnWave added 13% on the update.