Mr. Brent Charleton reports

ENWAVE REPORTS 2022 THIRD QUARTER CONSOLIDATED INTERIM FINANCIAL RESULTS

EnWave Corp. has released the company's consolidated interim financial results for the third quarter ended June 30, 2022:

• Royalty revenue year to date of $1.15-million, representing annual growth of 55 per cent in the high-margin royalty portfolio.
• The first 10-kilowatt good manufacturing practice unit was commissioned for the dehydration of premium cannabis products in New Zealand, expanding the use of REV (radiant energy vacuum) across the legalized global cannabis industry.
• The REVworx facility obtained safe quality food certification (SQF) as part of the strategy to provide advanced toll processing capabilities to the food industry.

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

Key financial highlights for third quarter (expressed in thousands):

• The company reported consolidated revenue for Q3 2022 of $5,554, compared with $7,351 in Q3 2021, a decrease of $1,797 or 24 per cent:
  • EnWave's segment revenue was $2,663 compared with $3,560 in Q3 2021, a decrease of $897 or 25 per cent. Royalty revenues for Q3 2022 were $301 compared with $191 for Q3 2021, an increase of $110 or 58 per cent.
  • NutraDried's segment revenue was $2,891 compared with $3,791 for Q3 2021, a decrease of $900 or 24 per cent due to lower sales volumes of bulk and ingredient products.
• Gross margin for Q3 2022 was 26 per cent, compared with 35 per cent for third quarter 2021 and second quarter 2022. Gross margins at NutraDried in the quarter were compressed due to higher input costs related to cheese and freight.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) for Q3 2022 was a loss of $1,096 compared with a profit of $937 for Q3 2021, a decrease of $2,033.
• Selling, general and administrative expenses (including research and development) were $3,164 in Q3 2022, compared with $2,257 in Q3 2021, an increase of $907. The company continued to invest in developing its intellectual property during the quarter to support the expansion of its global licensing strategy. Marketing investments were made to generate awareness and enhance the business development pipelines at EnWave and NutraDried.

Significant corporate accomplishments in Q3 2022 and subsequently:

• Sold a 120-kilowatt REV machine to Dole Worldwide Food and Beverage Group that will significantly increase Dole's vacuum microwave production capacity and processing capabilities; the machine is expected to be delivered in early calendar 2023 to begin royalty-bearing commercial production;
• Sold a third 10-kilowatt REV machine to Dairy Concepts to further increase its commercial production capacity for the sale of its shelf-stable hand-held dairy snacks in Ireland;
• Sold a 10-kilowatt REV machine to Fungaria Snack Ltd. to develop and commercialize premium fruit and vegetable snack for the Hungarian market;
• Received a purchase order for EU GMP (European Union good manufacturing practice certification) with an unnamed pharmaceutical cannabis company to dry cannabis for medical consumption and derivative products for sale in the European Union and legal global markets;
• Obtained safe quality food certification (SQF) for REVworx state-of-the-art vacuum microwave toll drying facility, which has a 10-kilowatt and 60-kilowatt REV machine to provide toll drying services for companies of all sizes and in all sectors;
• Launched national distribution of four flavours of Moon cheese into Kroger;
• Signed a technology evaluation and licence option agreement with Bounty Fresh Group, a leading producer of protein products in Southeast Asia, to evaluate the potential commercial use of REV technology in producing a variety of meat, cheese and other nutritious snacks;
• Signed a technology evaluation and licence option agreement with Wyckoff Farms Inc. to evaluate the use of REV technology to dry premium hop products;
• Signed a technology evaluation agreement with a large Canadian cannabis company to evaluate REV technology at its facilities using a 10-kilowatt machine;
• Completed the installation of BranchOut Snacks' 60-kilowatt REV machine in Peru to scale up royalty-bearing commercial production capacity for its line of better-for-you snack products.

Rescheduled conference call

The company has rescheduled the conference call to discuss the third quarter 2022 financial results and the company's state of affairs. The conference call will be held on Aug. 23, 2022. Prepared remarks will be given followed by a question-and-answer session for shareholders.

Date:  Aug. 23, 2022

Time:  7 a.m. PST/10 a.m. EST

Participant access:  1-877-407-2988 (toll-free number)

A webcast will be available.

(1) Non-international financial reporting standard measure.

About EnWave Corp.

EnWave is a global leader in the innovation and application of vacuum microwave dehydration. From its headquarters in Vancouver, B.C., EnWave has developed a robust intellectual property portfolio, perfected its radiant energy vacuum 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 and product quality.

With more than 50 royalty-generating partners spanning 20 countries and five continents, EnWave's licensed partners are creating profitable, never-before-seen snacks and ingredients, improving the quality and consistency of their existing offerings, running leaner, and getting to market faster with the company's patented technology, licensed machinery and expert guidance.

EnWave's strategy is to sign royalty-bearing commercial licences with food and cannabis producers which want to dry better, faster and more economically than freeze drying, rack drying and air drying, and enjoy the following benefits:

• Food and ingredient companies can produce exciting new products, reach optimal moisture levels up to seven times faster, and improve product taste, texture, colour and nutritional value.
• Cannabis producers can dry four to six times faster, retain 20 per cent more terpenes and 25 per cent more cannabinoids, and achieve at least a three-log reduction in crop-destroying microbes.

We seek Safe Harbor.