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121 EN WAVE CORPORATION EnWave Announces 2021 First Quarter Consolidated Interim Financial Results Vancouver , B.C. , February 26th , 2021 EnWave Corporation ( TSX - V : ENW | FSE : E4U ) ( " EnWave " , or the " Company " ) is pleased to report the Company's consolidated interim financial results for the first quarter ended December 31 , 2020 . Consolidated Financial Performance : ( $ ' 000s ) Revenues Direct costs Gross margin Operating Expenses General and administration Sales and marketing Research and development Net loss for the period after taxes Adjusted EBITDA ( * ) Loss per share - basic and diluted Three months ended December 31 , 2020 2019 Change $ $ % 7,533 8,609 ( 12 % ) 5,835 5,413 8 % 1,698 3,196 ( 47 % ) 1,126 1,758 ( 36 % ) 1,521 1,943 ( 22 % ) 569 535 6 % 3,216 4,236 ( 24 % ) ( 1,371 ) ( 1,426 ) ( 911 ) ( 743 ) ( 0.01 ) ( 0.01 ) Adjusted EBITDA is a non - IFRS financial measure . Refer to the disclosure below and in the Company's MD & A regarding non - IFRS financial measures . EnWave's interim consolidated financial statements and MD & As are available on SEDAR at www.sedar.com and on the Company's website www.enwave.net . Key Financial Highlights for Q1 ( expressed in ‘ 000s ) : • • • Reported consolidated revenue for Q1 2021 of $ 7,533 compared to $ 8,609 for Q1 2020 , a decrease of $ 1,076 or 12 % . EnWave Canada had revenue of $ 2,676 in Q1 2021 compared to $ 4,555 in Q1 2020. NutraDried had revenue of $ 4,857 in Q1 2021 compared to $ 4,054 in Q1 2020 . Gross margin was 23 % for Q1 2021 compared to 37 % for Q1 2020. The gross margin compression in Q1 2021 was due to a one - off discount offered by NutraDried on a national Moon CheeseⓇ promotion at Costco . Consolidated net loss after taxes was $ 1,371 for Q1 2021 compared to a net loss of $ 1,426 for Q1 2020 , an improvement of $ 55 . EnWave reported a segment loss of $ 25 for Q1 2021 compared to a segment loss of $ 790 for Q1 2020 , an improvement of $ 765 . The improvement in EnWave's segment results is attributed to the cost containment measures implemented in fiscal year 2020 and improved operating leverage with new REV ™ machinery orders . PAGE 1 of 5