Mr. Brent Charleton reports

ENWAVE ANNOUNCES PLAN TO DRIVE PROFITABILITY AND CASH FLOW THROUGH STREAMLINED OPERATIONS

EnWave Corp. provided details pertaining to an operational efficiency plan expected to drive profitability and cash flow as first referenced on Aug. 21, 2026, during its fiscal Q3 (third quarter) conference call.

The plan involves the wind-down of the company's REVworx co-manufacturing operations, reflecting EnWave's Radiant Energy Vacuum (REV) technology reaching a more mature stage of commercial adoption, which has reduced the need for internal co-manufacturing activities to support customer testing and validation, which is expected to unlock:

1. $1-million of annual cost savings: Total reductions in facility leases, labour and other operating costs are expected to lower EnWave's annual operating expense base by approximately $1-million on a run rate basis by fiscal 2028 with gradual realizations expected throughout fiscal 2027.
2. Material net income improvements: Anticipated savings are expected to reduce EnWave's annual operating cost base to approximately $3.7-million, contributing incremental net income gradually during fiscal 2027, reaching at least $1-million annually starting in fiscal 2028.
3. $2-million of equipment for monetization: Property, plant and equipment currently dedicated to REVworx, including a 10-kilowatt (kW) and 60 kW REV machine, has an estimated resale value of $2-million and can be transferred to inventory to support future machine sales.
4. Streamlined business focus: The plan reinforces EnWave's focus on growing its royalty portfolio generated from its installed base of REV machines, while leveraging the technology's increasing commercial validation and EnWave's established capabilities and customer relationships to support partners' product innovation efforts.

The cost savings are expected to be realized gradually throughout fiscal 2027 with the newly released equipment being available for sale almost immediately to service customer demand.

The plan preserves the company's core innovation, engineering and commercialization capabilities while reflecting EnWave's continued focus on improving operating leverage, establishing sustainable profitability and concentrating resources on the highest-value components of its business model, including the generation of recurring royalties from its global portfolio of licensed partners and the sale of REV equipment.

Wind-down of REVworx co-manufacturing operations

REVworx was originally established to help accelerate the commercialization of new REV-dried products by providing prospective and existing customers with access to commercial-scale production capacity. While REVworx has provided strategic value in demonstrating REV at commercial scale and accelerating the commercial validation of REV technology, EnWave's growing global ecosystem of licensed royalty partners now provides alternative commercial-scale manufacturing capacity for companies seeking access to REV technology.

Therefore, EnWave has decided that maintaining a dedicated internal co-manufacturing operation is no longer necessary to support the company's commercialization strategy and is accordingly winding down its REVworx co-manufacturing operations.

The wind-down is expected to materially reduce facility, labour and other operating costs. Once fully implemented, the broader restructuring is expected to reduce EnWave's annual operating expense structure by approximately $1-million and materially improving net income, assuming other operating factors remain unchanged. With this operating expense reduction, the company's total operating expense base should lower to approximately $3.7-million by fiscal 2028. These cost savings and positive net income impacts are projected to be realized gradually throughout fiscal 2027 with full run rate impacts realized beginning in fiscal 2028.

EnWave also believes its annualized base royalty collections could reach approximately $3-million by the end of fiscal 2027, largely covering the company's pro forma base operating costs.

Further, EnWave possesses property, plant and equipment associated with REVworx, including a 10 kW REV machine and 60kW REV machine. The company estimates the market value of these assets to be approximately $2-million, while the IFRS (international financial reporting standards) book value is diminutive.

Preserving innovation and commercialization capabilities

EnWave will retain the critical technical infrastructure, personnel and capabilities required to continue advancing REV technology, conducting product development, and supporting prospective and existing royalty partners.

The company remains highly active in product innovation, process development, customer demonstrations and commercial trials by continuing to provide prospective partners with the technical expertise required to validate REV applications and establish commercially viable processing protocols.

Separating these high-value innovation activities from the higher fixed-cost structure associated with commercial co-manufacturing will allow EnWave to operate a more efficient platform while relying on the global platform of already deployed REV equipment to strengthen its ability to develop new applications and support the growth of its existing royalty partner network.

Leveraging EnWave's Global REV ecosystem

EnWave has established an extensive international network of 52 licensed royalty partners, several of which possess large-scale, commercial REV production capacity and offer third party co-manufacturing services.

EnWave has been actively leveraging this ecosystem to connect larger consumer packaged goods (CPGs) companies and emerging food brands with qualified REV processors where outsourced manufacturing is required. Going forward, this effort will be amplified. This approach provides prospective customers with access to commercial-scale REV capacity.

Sales pipeline outlook

EnWave remains highly optimistic about the quality and potential of its commercial sales pipeline. The company is advancing multiple opportunities with large, well-capitalized food companies across several product categories and geographies, including organizations evaluating REV as a commercial alternative to incumbent dehydration technologies. Importantly, EnWave's pipeline is increasingly focused on opportunities with clearly defined commercial applications, meaningful production requirements, and the potential to generate both equipment revenue and long-term recurring royalties. Recent commercial activity, including the purchase of a second 120 kW REV system by Procescir, provides further validation of the economic value of REV at commercial scale and demonstrates the potential for successful royalty partners to expand their installed capacity over time.

Looking ahead to fiscal 2027, management believes the combination of prospective new customers and expansion opportunities within EnWave's existing royalty partner network provides a compelling foundation for renewed equipment sales growth. Several material opportunities are progressing through the sales cycle, while existing partners are evaluating additional production capacity as demand for REV-dried products expands. Although the timing of large-scale equipment orders will inherently remain uneven, management believes the quality, scale and commercial maturity of the current pipeline are stronger than witnessed to date by the company.

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.

With more than 50 partners spanning 24 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 producers who want to dry better, faster and more economical than freeze drying, rack drying and air drying, and enjoy the following benefits of producing exciting new products, reaching optimal moisture levels up to seven times faster, and improve product taste, texture, colour and nutritional value.

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