EnWave (ENW) Planet MicroCap Showcase summary

Business overview and technology

• Commercialization of patented vacuum microwave dehydration technology with over 50 global partners, mainly in the food sector, generating both machinery sales and royalties.

• Revenue has been stable at CAD 10–12 million annually, with 85–90% from machinery sales and 30% gross margin; royalties are a growing secondary stream.

• Cash position exceeds CAD 4 million, eliminating the need for near-term capital raises.

• Focus has shifted away from cannabis to food, with a blue-sky opportunity in pharmaceuticals via a partnership with GEA Lyophil.

• Technology offers faster, more efficient dehydration than freeze or air drying, with significant ESG benefits and the ability to upcycle lower-grade food products.

Market position and competitive advantage

• Only provider of scalable, reliable vacuum microwave equipment, protected by 18 patents covering apparatus and processing protocols.

• 54 licensed partners across 25 countries, with a focus on IP-respecting jurisdictions; major clients include Dole and Calbee.

• Addressable market for dehydration equipment was CAD 4.3 billion in 2023, with royalty rates typically 2–5% of gross revenue.

• Royalty revenue is pure margin and expected to grow as installed base increases.

Financial performance and outlook

• Fiscal 2024 royalty run rate expected at CAD 2 million, up from CAD 1.5 million in 2023; several large installations underway for further growth in fiscal 2025.

• Q3 2024 saw strong revenue and margin due to multiple machine sales; Q4 is also expected to be strong.

• Selling 4 large machines achieves cash flow break-even; targeting 8 machines in fiscal 2025 could yield CAD 3–4 million EBITDA.

• Installed capacity projected to reach 2,700–2,800 kW by end of fiscal 2024, supporting future royalty growth.

• No debt and no need for additional capital; focus is on execution and increasing market visibility.