EnWave (ENW) investor relations material

Business model and technology

• Vacuum-microwave dehydration enables low-temperature, continuous processing with precise final moisture control; processing takes up to 3.5 hours versus at least 15 hours for lyophilization.

• Equipment sells at ~30% gross margin; licenses typically carry 2%–5% royalties on product revenue, payable through the last applicable patent expiry, currently extending to ~2040.

• More than 50 licensed partners span food categories; 18 patent families support the technology, with 20 fruit and vegetable licenses, 13 dairy licenses and five seafood licenses.

• Food equipment TAM was estimated at $2B annually; premium dried food market at $76B annually. Pharmaceutical lyophilization machinery represents a further $6B in annual sales, with technology still under evaluation.

Fiscal 2027 outlook

• FY2026 ended September 30, 2026; three anticipated large-scale equipment transactions shifted into FY2027. Guidance targets ~6 large-scale transactions at ~$2M USD each.

• Royalties are forecast at just over CAD 2M for FY2026 and closer to CAD 3M in FY2027, versus CAD 1.82M in FY2025.

• FY2027 OpEx is expected to fall to CAD 3.5M–CAD 3.7M after closing a Vancouver production facility that cost more than CAD 1M annually to operate.

• With royalties near CAD 3M and lower OpEx, roughly two large-scale equipment sales would be needed to reach profitability; three FY2027 targets are new adopters and three are existing royalty partners.

Growth pipeline and commercialization

• General Mills engagement began in FY2026; two product launches are confirmed for 2027, using existing co-manufacturer capacity and expected to lift royalties.

• Pet food is a priority growth vertical for 2027; a Japanese prospect is considering production around mid-2027, while an Icelandic prospect is evaluating a large-scale equipment purchase before calendar year-end.

• New products from PepsiCo’s Bare Snacks, Calbee and Dole are being developed for targeted launches next calendar year; first installations in South Africa, Morocco and Egypt are expected this year.

• Installed capacity is the leading indicator for royalty growth; a large-scale machine at 80% utilization could generate USD 150K–USD 250K in annual royalties.

• Co-manufacturers help shorten customer adoption cycles; MicroDried accounts for an estimated 20%–25% of royalty streams and is seeing larger contracts with major consumer brands.