Page 1

121 EN WAVE CORPORATION EnWave Announces 2021 Second Quarter Consolidated Interim Financial Results Vancouver , B.C. , May 27th , 2021 EnWave Corporation ( TSX - V : ENW | FSE : E4U ) ( " EnWave " , or the " Company " ) today reports the Company's consolidated interim financial results for the second quarter ended March 31 , 2021 . Consolidated Financial Performance : ( $ ' 000s ) Three months ended March 31 , Change 2021 2020 % 2021 2020 Six months ended March 31 , Change % Revenues Direct costs 4,686 7,492 ( 37 % ) 12,219 16,101 ( 24 % ) 4,208 5,629 ( 25 % ) 10,043 11,042 ( 9 % ) Gross margin 478 1,863 ( 74 % ) 2,176 5,059 ( 57 % ) Operating expenses General and administration 1,214 1,558 ( 22 % ) 2,340 3,316 ( 29 % ) Sales and marketing 1,304 1,796 ( 27 % ) 2,825 3,739 ( 24 % ) Research and development 463 481 ( 4 % ) 1,032 1,016 2 % 2,981 3,835 ( 22 % ) 6,197 8,071 ( 23 % ) Net loss for the period after taxes ( 2,286 ) ( 1,850 ) 24 % ( 3,657 ) ( 3,276 ) 12 % Adjusted EBITDA ( * ) ( 1,968 ) ( 1,462 ) 35 % ( 2,879 ) ( 2,205 ) 31 % Loss per share - basic and diluted $ ( 0.02 ) $ ( 0.02 ) $ ( 0.03 ) $ ( 0.03 ) 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 Q2 ( expressed in ‘ 000s ) : • • • Reported consolidated revenue for Q2 2021 of $ 4,686 compared to $ 7,492 for Q2 2020 , a decrease of $ 2,806 or 37 % . Revenue from EnWave in Q2 2021 was $ 2,348 compared to $ 2,169 in Q2 2020 , an increase of $ 179 or 8 % . The increase in revenue was due to higher Radiant Energy Vacuum ( " REVTM " ) machine rentals for technology evaluation purposes and higher customized REVTM ” machinery sales in the food and cannabis verticals . Revenue from NutraDried in Q2 2021 was $ 2,338 compared to $ 5,323 in Q2 2020 , a decrease of $ 2,985 or 56 % . NutraDried revenues were downwardly impacted by fewer rotations with Costco , partially offset by some growth in the online channels . Gross margin for Q2 2021 was 10 % compared to 25 % for Q2 2020. The margin compression in Q2 2021 was due to lower manufacturing cost absorption at NutraDried with manufacturing overhead being allocated over reduced production volume . NutraDried also recorded an inventory PAGE 1 of 5