In This Article:
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Revenue: $3.6 million for Q4 2024, up 149% from Q4 2023.
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Royalties: $642,000 in Q4 2024, a 69% increase from Q4 2023; $2 million for fiscal year 2024, up 34% from 2023.
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Adjusted EBITDA: $450,000 for Q4 2024, compared to a loss of $324,000 in Q4 2023.
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Net Income from Continuing Operations: $588,000 for Q4 2024.
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Gross Margin: 40% in Q4 2024, up from 29% in Q4 2023.
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SG&A Expenses: $1.3 million for Q4 2024, a 26% increase from Q4 2023.
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Cash and Cash Equivalents: $4.8 million as of September 30, 2024.
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Net Working Capital Surplus: $7.2 million as of September 30, 2024.
Release Date: December 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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EnWave Corp (NWVCF) reported a strong Q4 2024 performance with quarterly revenue of $3.6 million, a significant increase from Q3.
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The company achieved a robust gross margin of approximately 40% in Q4 2024.
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Royalties for the fiscal year 2024 increased by $500,000 to $2 million, indicating growth in the company's diversified royalty portfolio.
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Successful global settlements were reached in a civil claim, resulting in the transfer of patents to EnWave Corp (NWVCF), strengthening their intellectual property position.
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New patentable innovations have been developed, potentially extending royalty collection well into 2044, showcasing EnWave Corp (NWVCF)'s commitment to technological advancement.
Negative Points
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EnWave Corp (NWVCF) fell short of its targeted new REV machine sales for fiscal year 2024.
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The company experienced a slow first half of the year, which they aim to avoid in fiscal 2025.
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SG&A expenses, including R&D, increased by 26% in Q4 2024, primarily due to higher legal fees, travel costs, and marketing expenses.
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Despite a strong pipeline, operational execution and closing of deals remain critical challenges for EnWave Corp (NWVCF).
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The company is still in the process of securing two international sales hires, which could impact their ability to expand their opportunity pipeline effectively.
Q & A Highlights
Q: Can you provide an overview of EnWave's financial performance for Q4 2024? A: Brent Charleton, CEO, highlighted that EnWave generated quarterly revenue of $3.6 million, royalties of $642,000, and adjusted EBITDA of $450,000, all improvements from Q3. Net income from continuing operations was $588,000, with a robust gross margin of about 40%.
Q: What were the key achievements in terms of royalty partnerships and machine installations? A: Brent Charleton, CEO, mentioned successful commissioning of three large-scale REV machines at BranchOut Food's facility in Peru, with BranchOut projecting significant revenue growth. Additionally, Bounty Fresh in the Philippines is developing a premium chicken powder product, potentially requiring more REV machinery.