EnWave Corporation Conference Call Summary Company Overview - EnWave Corporation is commercializing a proprietary dehydration technology that combines vacuum and microwave methods to efficiently remove water from food products, cannabis, and pharmaceuticals [2][3] - Recently completed a $3 million financing to build inventory of dehydration machines for licensed partners [2] Financial Performance - Generated just under $2 million in royalties in fiscal 2024 [4] - Anticipates growth in royalties and machine sales for fiscal 2025 and 2026 [4] - The company operates on a royalty structure, typically between 2% and 5% of revenue from product sales or a fee per pound/kilogram produced [3] Technology and Intellectual Property - Holds 18 patents globally, protecting both machinery design and processing protocols [5] - The technology has been operational for about 10 years, demonstrating successful business models [5] Revenue Streams - Revenue is generated through machine sales (30% gross margin) and royalties (pure margin) [7] - Currently, 75% of revenue comes from machine sales, with expectations for improved margins as royalty revenue increases [6][10] Market Potential - The total addressable market for freeze-drying equipment is estimated at $4.3 billion in 2023, with EnWave's technology offering significant advantages in processing time and energy efficiency [13] - The company aims to capture a portion of the freeze-dried product market, which could yield substantial royalties [14] Growth Strategy - Plans to sell a minimum of six large-scale machines and four to six small-scale machines in fiscal 2026 [15] - Focus on expanding partnerships and increasing machine installations to drive royalty revenue [9][12] Industry Applications - EnWave's technology is utilized across various sectors, including food, pet food, and cannabis [11][19] - The company has partnered with notable firms like Dole and BranchOut Food, showcasing diverse applications [11][19] Competitive Advantage - EnWave's technology is positioned as superior to traditional freeze-drying methods, offering better product quality and lower production costs [21] - The company emphasizes strong support and long-term relationships with partners to ensure successful implementation and innovation [20] Future Outlook - The company is confident in achieving positive EBITDA for fiscal 2026, driven by increased machine sales and royalty revenue [15][27] - Plans to continue expanding its global presence and enhancing its technology offerings [12][26] Liquidity and Financial Health - Strong liquidity position with $5 million cash resources and an additional $5 million line of credit [25] - The company is currently break-even, with a goal to improve profitability in the coming fiscal year [15][25] Conclusion - EnWave Corporation is well-positioned for growth in the dehydration technology market, with a solid financial foundation, innovative technology, and a diverse range of applications across multiple industries [27]