Mr. Brent Charleton reports

ENWAVE REPORTS 2024 FIRST QUARTER CONSOLIDATED INTERIM FINANCIAL RESULTS

EnWave Corp. has released its consolidated interim financial results for the first quarter ended Dec. 31, 2023.

All values in thousands and denoted in Canadian dollars unless otherwise stated.

• Reported royalty revenues of $480, representing an increase of $67 relative to the comparable period in the prior year. Royalties grew due to increased partner product sales and production offset by a decrease in exclusivity fees for the quarter.
• Reported an overall decrease in selling, general and administrative (SG&A) costs (including research and development (R&D)) of $303 for Q1 2024 relative to the comparable period in the prior year, with the decrease primarily related to a reduction in commissions to third party sales representatives and concerted efforts to maintain discretionary spending.
• Reported revenue for Q1 2023 of $1,262, representing a decrease of $1,523 relative to the comparable period in the prior year. The decrease was primarily related to fewer machine sales and machines in fabrication due to the inherent volatility in large-scale radiant energy vacuum (REV) machine orders.
• Gross margin for the three months ended Q1 2024 was 18 per cent compared with 37 per cent for the three months ended Q1 2023. The decrease in margin was a result of fewer machine sales and machines in fabrication to absorb fixed overhead costs.
• Reported an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $756 for Q1 2024, a decrease of $500 from the comparable period in the prior year.

EnWave's consolidated interim financial statements and management's discussion and analysis are available on SEDAR+ and on the company's website.

Significant corporate accomplishments in Q1 2024 and subsequently:

• Signed a technology evaluation and licence option agreement with a North American multistate cannabis company to evaluate REV technology over other incumbent drying methods;
• Signed a toll manufacturing agreement with BranchOut Food Inc. to produce vegetable snack products on an interim basis at the company's REVworx facility in Delta, Canada.

About EnWave Corp.

EnWave is a global leader in the innovation and application of vacuum microwave dehydration. From its headquarters in Delta, B.C., EnWave has developed a robust intellectual property portfolio, perfected its radiant energy vacuum (REV) technology, and transformed an innovative idea into a proven, consistent and scalable drying solution for the food, pharmaceutical and cannabis industries that vastly outperforms traditional drying methods in efficiency, capacity, product quality and cost.

We seek Safe Harbor.