Thanks very much, and thanks again to everyone who have joined us today for EnWave's Q3 fiscal 2026 quarterly conference call. Q3 was a much better quarter than the first two fiscal 2026 quarters, given we recognized the revenue tied to the sale of a pre-built 120 kW radiant energy vacuum machine to Procesadora, our valued Mexican royalty partner.

We continue to see strong royalty growth, led by BranchOut Food and MicroDried. As we continue to work towards securing additional royalty streams and hastening the growth of these carried interests, my team and I are also concurrently planning to reduce internal expenses materially to position the company best for sustainable profitability in the coming years.

Consistent with our past quarterly conference calls, the information we will present today, including my introductory statements, contains forward-looking information that is based on our management's expectations, estimates, and projections. Our statements are not a guarantee of future performance and involve a number of risks, uncertainties, and assumptions.

Please consider the risk factors in the filings made by EnWave on SEDAR when reviewing this information. Also, all amounts discussed will be in Canadian dollars, unless otherwise noted.

As we continue to drive the company forward, our priorities remain focused on four areas. First, convert our commercial pipeline into equipment sales.

That's obvious. It's great to have engagement, but engagement needs to convert into long-term commercial agreements, period.

Second, expand our installed base of REV machinery, and we continue to work closely with current royalty partners to help them develop new products and increase their REV machinery utilization. This effort is designed to lead to many more repeat purchase orders, like the one recently with Procesadora.

Third, increase reoccurring royalty revenue generated by our existing partners. Same support mentioned a moment ago will help drive this growth.

Lastly, fourth, continue building relationships with large food companies capable of deploying REV's technology at meaningful commercial scale, either themselves directly or by using one of our many royalty partners that offer co-manufacturing services. Either way, we win.

We feel we are well on our way to accomplishing these priorities. In Q3, we yielded superior results, as noted, to the prior two quarters, as quarterly revenue was $3.33 million, up 21% year-over-year, and gross margin in the quarter was 25%, up 6 points year-over-year.

Additionally, year-to-date [clears throat] sorry, additionally, year-to-date gross margin was 30%, on target for our traditional gross margin that we approach for machine sales blended with royalties. Royalties were $536,000 in Q3, up 24% in the quarter year-over-year, despite an adjustment of about $62,000 tied to an overpayment in Q2 by MicroDried, which was related to a miscalculation on the amount owed.

Without this adjustment, the normalized base royalties, which doesn't include any exclusivity payments collected in Q3, would have been approximately $600,000, the most base royalties collected in any quarter by EnWave. Now there is ample opportunity for consistent royalty growth in the coming quarters, generated from the increased manufacturing capacity utilization of the installed REV machine base.

We've been told that there are many new REV product launches planned in the coming quarters, some of which by blue-chip food manufacturers using one or more of our established royalty partners. Any of these launches, if successful, could meaningfully increase our base royalties.

With the information shared with us by current royalty partners, our royalties should push towards $3 million collected in fiscal 2027. I'm thrilled that EnWave is in a position to reach this level of royalties.

It's a direct reflection of the efforts from our leadership group and a huge improvement from past years. To better put this into perspective, 3 years ago we collected a total of $1.5 million in royalties, half of what we anticipate in fiscal 2027.

Now while our quarterly financial performance continues to be influenced by the timing of large-scale REV equipment contracts, we made meaningful progress across several areas that we believe are important indicators of the underlying health and future potential of the business. Those areas include the number of active projects with billion-dollar revenue companies, the continued sales pipeline expansion across multiple continents, and the growing success of many REV-dried products in both the North American, Asian, and European markets.

Importantly, we are seeing increased engagement from both existing royalty partners and prospective customers, and the quality of our commercial pipeline has continued to improve, particularly among larger organizations evaluating REV as an alternative to incumbent dehydration technologies, whilst also looking to disrupt their respective categories through innovation. From a business development standpoint, we generated 772 new qualified leads in Q3 through strategic targeting and trade show attendance.

We held about 120 meetings and sent out about 1,200 nurturing emails through our automated sequencing, a big effort from our sales group. In Q3, we exhibited at the Pet Food Forum, at the Institute of Food Technologists in the United States, as well as FOOMA in Japan and Vitafoods in Europe.

We're also planning to attend FoodTech Mexico and the upcoming SupplySide West in Las Vegas in the fall. The number of large-scale prospective projects, some of which that were expected to close earlier in fiscal 2026, are numerous.

Those projects that we thought would close in Q1 and Q2 haven't gone away; they've necessarily been delayed into quarters forthcoming here. The sales pipeline we have created is a direct result, again, of that effort and leadership through Dan Danadjiev, our VP of Sales, as well as the rest of our team.

This heightened level of interest that we have has yet to directly affect our financial performance in terms of large-scale machine orders, but those purchase decisions and commercial product launches should transpire within the next few quarters. The sales cycle for these larger organizations can be lengthy, as we know, but successful conversion has the potential to materially expand EnWave's installed base and recurring royalty revenue.

Currently, we are advanced in the sales cycle with several material targets that should convert into long-term royalty partners in fiscal 2027. One of the most important developments in Q3, as noted before, is the continued expansion of our relationship with Procesadora in Mexico.

Now following the successful deployment of their initial large-scale REV system, Procesadora committed to purchasing their second 120 kW REV machine. This is exactly the type of progression we want to see from our royalty partners: a customer initially adopts REV, validates the economics and product quality at commercial scale, builds demand for the resulting products, and ultimately adds additional capacity.

Repeat machine orders are particularly important because they provide tangible validation of both the technology and the customer's underlying business case. Also in Q3 and to the date of this report, we signed three new licenses and two technology evaluation and license option agreements.

The first new license we signed was with Rhizome, a company led by multiple Michelin-star winning chef Dan Barber. Rhizome is focused on the development and commercialization of several food applications that are sustainable, innovative, and unique.

Part of this deal was the purchase of a pilot-scale REV machine, and I hope to be able to share more details on the potential commercial launch of these products in coming quarters. The second license was signed with The Dry Hub of Egypt, our first foray into the African continent, who also purchased a pilot-scale REV machine, a 10 kW unit.

They're busy completing their facility to house this machinery, along with several upstream and downstream processes. We hope to have their REV equipment delivered for installation in early fiscal 2027, if not sooner.

The most recent new license was signed earlier this month with University of Limerick, who purchased a lab-scale REV unit to be used for research and development, as well as industry engagement in Ireland and the UK. We hope that this relationship will spawn additional commercial opportunities for EnWave in the future.

In regards to the technology evaluation agreements signed, one deal was signed with Swiss Cannabis Selection for further exploration into the use of REV technology for the production of various cannabis-based products, and the second was signed with General Mills, a top 10 global food conglomerate. Both companies are renting 10 kW REV machines to help complete their respective evaluations.

Our objective with relationships like the one established with General Mills is not simply to sell a piece of equipment. The larger opportunity is to embed REV into commercial manufacturing platforms where the technology can potentially be deployed across multiple products, facilities, and geographies.

We continue to actively support evaluations with several prospective partners and are working to convert successful product development programs into royalty-bearing commercial licenses and equipment purchase agreements. These programs take time, and large multinational food companies have rigorous product development, engineering, procurement, and capital approval processes.

The potential value of converting even a small number of these opportunities is significant. Currently, we are engaged with behemoths in the pet food, seafood, snack, and ingredient industries.

Another important part of our strategy is expanding access to REV technology. Over the past several quarters, we have established relationships with commercial processors, research organizations, and innovation centers in most major global markets.

These relationships create regional access points where prospective customers can test products, develop processes, and better understand the economic and product quality advantages of REV. This is important because adoption becomes considerably easier when customers can see the technology operating, conduct trials, and develop commercial products without immediately committing to large-scale capital equipment.

We believe these hubs can shorten the path between initial interest and commercial adoption. They also support academic and technical research that can further validate the REV value proposition.

Our recently established relationship with the University of Limerick highlights this structure. Now our royalty business remains central to the long-term EnWave investment thesis; that's no surprise to anybody.

We have a broad installed base of royalty partners operating across multiple countries and product categories. The objective is to steadily increase the utilization of this installed base.

Some partners are quickly expanding distribution and enjoying immense commercial success; others are introducing new products, and several are evaluating additional REV capacity at the moment. This creates operating leverage within our business model.

EnWave does not need to manufacture another machine to benefit when an existing partner sells more REV-dried product. As partner utilization increases, royalty revenue can grow with very little incremental cost to EnWave.

That remains one of the most attractive aspects of our business model, and we are starting to see the real traction. Looking at our total number of active license agreements, 52, 36 companies are actively deploying resources into the growth of REV-dried products sales in market, while 16 companies are still either in the product development or testing phase, or associated with cannabis companies that purchased small 10 kW units and are exploring the technology currently.

The vast majority of the REV machine kilowatts deployed are being put to use to produce royalties, meaning most large-scale machines are in action currently. Internally, we've also continued to sharpen our commercial approach.

We have become increasingly selective about where we allocate technical and sales resources. Our focus is on opportunities where there is a clearly defined commercial application, sufficient product production volume, a credible path to capital deployment, and the potential for meaningful recurring royalties.

Simply generating more technology evaluations is not the objective; our objective is converting the right evaluations into commercial licenses and machine purchases. We believe this discipline is beginning to improve the overall quality of our pipeline.

Now looking towards the remainder of fiscal 2026 and into fiscal 2027, our outlook is constructive. We have several meaningful opportunities progressing, and we have existing royalty partners evaluating additional production capacity.

We have multinational companies conducting product and process evaluations, including General Mills and others, and we have a growing international network of REV users, research institutions, and commercial processing hubs supporting the adoption of the technology. Now before I ask Nav to further summarize our financials, I want to reiterate our four key priorities moving forward: conversion of our pipeline opportunities into equipment orders, one; successful execution on the equipment already under contract, number two; help our royalty partners increase utilization, three; and lastly, maintaining financial discipline while pursuing these opportunities.

It's inevitable that the timing of large equipment orders will continue to make quarterly revenue uneven, but that's inherent to our business. We're driving the underlying indicators that matter: installed capacity, repeat equipment purchases, partner utilization, royalty generation, and engagement with larger strategic customers.

Now before Nav begins her financial statement synopsis, I want to congratulate her publicly for her well-deserved promotion to CFO. Nav, you've earned this opportunity, and I'm excited to work closely with you to drive EnWave to the next level of success.

Please take it away.

Thanks, Brent. Good morning, everyone, and thank you for joining us today.

Please note that the figures I will be discussing can be found in our press release from yesterday and in the financial statements and MD&A filed on SEDAR, and all amounts are in Canadian dollars unless otherwise noted. I will make a reference to adjusted EBITDA, which is a non-IFRS financial measure, please refer to non-IFRS financial measures disclosures and reconciliation to GAAP net income both in the press release and in our MD&A.

Also, please note that the comparative period I will refer to throughout this presentation is the prior-year Q3 ended June 30th, 2025. Revenue for Q3 was $3.3 million compared to $2.7 million in Q3 2025, an increase of $569,000, or 21%.

The increase was primarily related to selling a fully fabricated, large-scale machine to Procesadora and increase in base royalties. Base royalty revenue was $536,000 in Q3 2026 compared to $432,000 in the comparative period, an increase of $104,000, or 24%.

Base royalties in Q3 2026 were reduced by a one-time $60,000 adjustment related to a Q2 overpayment by MicroDried, one of the company's larger royalty-paying licensed partners. Royalties grew due to the increased number of royalty partners, product sales, and product production for the quarter.

Additionally, as our royalty partners grow their business and increase capacity utilization of installed REV equipment, further REV installations will follow from new sales contracts and material royalty growth should continue in the coming quarters. Gross margin for the company in Q3 2026 was 25% compared to 19% in the comparative period, with the increase primarily attributable to lower fabrication costs from large-scale machines on contract and increased royalties as compared to the prior quarter.

SG&A expenses, including R&D, were $1.2 million for Q3 2026 compared to $1.4 million for the comparative period, a decrease of $205,000, or 15%, with the decrease primarily related to lower personnel and third-party commission costs. Adjusted EBITDA is a non-IFRS financial measure, please refer to our MD&A for the reconciliation from GAAP net income to adjusted EBITDA.

The company reported an adjusted EBITDA loss of $93,000 for Q3 2026 compared to adjusted EBITDA loss of $575,000 for Q3 2025, an improvement of $480,000 over the comparative period. The increase was primarily related to selling a fully fabricated large-scale machine, increased royalties, and lower operating expenses.

We finished Q3 2026 with cash and cash equivalents of $2.5 million and net working capital surplus of $7.1 million as at June 30th, 2026. EnWave also has a credit facility with Desjardins for growth and working capital purposes.

As at June 30th, 2026, the credit facility had a total authorized limit of $2.3 million at a rate of prime plus 1.5%, with $1.9 million drawn and $360,000 remaining undrawn availability. As at June 30th, 2026, inventory was $3 million compared to $1.4 million at year-end, an increase of $1.6 million, or 118%.

The increase in inventory is as a result of manufacturing the large-scale machine, specifically 100 kW nutraREV machine, and two small-scale machines in aggregate were approximately 90% complete by June 30th. This investment, combined with an expanded marketing presence through increased trade show attendance and sales personnel, is designed to ensure faster order fulfillment and for prospective future machine sales.

Off to you, Brent.

Thanks, Nav. Now I mentioned at the beginning of our call that we are also working towards further significant expense reductions.

Our goal is to reduce our expense base by more than a million dollars by fiscal 2028, and I will be disclosing the details of this plan in the coming weeks, stay tuned. Before opening the calls to questions, I want to leave shareholders with one final thought.

EnWave has spent many years developing REV from an innovative drying technology into a proven commercial platform. Today, our technology is being used commercially across multiple countries, industries, and product categories.

The opportunity in front of us is increasingly about scale: scale the installed base, scale our successful royalty partners, scale our relationships with major food companies, and ultimately scale the recurring royalty revenue generated from this technology. The second 120 kW machine order for Procesadora is a good example of what that model can look like when a partner succeeds.

We have cast a massive number of hooks into the pond; we have many fish on the line currently, and now we are reeling them in. We appreciate the continued support of our shareholders, employees, partners, and customers.

Now with that, I'd be happy to open the call to questions. If you have any questions specific to royalty partner progress, please ask.

Thank you.

Hi, Brent and Nav. Done on a much improved quarter for fiscal Q3.

Nice to see that. First off, just in terms of this planned expense reduction that you're planning to do over the next 12 months or so, I guess, where does that kind of get you in terms of an overhead?

Do you get to the point if you think you're going to do $3 million of royalties in fiscal '27, do you kind of get to the point where royalties are almost covering all your kind of cash operating costs?

You nailed it, Noel. We want to be faster to that particular scenario, and we think that we can get our base expenses down to about $3.5 million bucks from the changes that we're contemplating.

Of course, again, like I said, those details will be shared with the markets, investors, shareholders within the next couple of weeks. With our royalty expected to reach about $3 million in fiscal 2027, we're ever closer to that scenario.

By 2028, we think that we should be generating royalties well above what our base expenses are to run this business.

Great. Secondly, okay, it sounds like there's now, as you said, multiple new product lines that could launch with blue-chip companies.

I presume that's blue-chip CPG companies in '27. Can you talk at all about, to the extent that you know or you can disclose, like geographies, is it human, is it pet, is it snacks, ingredients?

What is it that's really driving the interest from the blue-chips right now?

Your assumption is correct in that it is blue-chip CPG companies in both the pet and human space. We are knowledgeable of several of these launches, information that's been shared with us by our royalty partners who are co-manufacturers for these larger organizations.

Those larger organizations were also directly working with on the product development side, we have insight. That should be primarily North American launches, albeit some of the co-manufacturers that would be participating in these opportunities may be based outside of North America, say in Europe in certain cases, to help support some of these new products being introduced to market.

Great. Then finally, this might be a very similar question here, but as you're going out over the next 12 months or so and you're seeing royalty growth, like we see from BranchOut Foods talking about tripling or quintupling their ingredient production for dried pieces that are going into CPG products for flavoring and color and that sort of thing, and we see them doubling their production for new listing wins in US retailers for their own branded products, are you seeing this fairly broadly across the partners that you're working with?

Is it, hey, we've got a couple partners that are just blowing the doors off and are just leading the way for everybody, or are you also starting to see some of those other commercial licensees that you've had for a while starting to say, okay, this is really starting to pick up and we're really starting to get going with this?

Good question, Noel. Across the board, I'd say the majority of royalty partners, we're seeing a rising of tides in overall royalty payments coming through, which is great indicatively that REV-dried products are further displacing other alternatives in market.

In terms of leading the way, BranchOut Foods and MicroDried are by far showing the most growth in terms of royalty generation. We saw a 265% increase year-over-year for BranchOut Foods as they are ramping up their facility and landing those deals you've talked about.

Then in terms of MicroDried, we saw very healthy growth in the 24, 25 percentile growth year-over-year for them. From past discussions in the last month, again, we're quite confident with that expectation of $3 million in royalties based on machine utilization that's been shared with us tied to specific projects from some of these larger royalty payers and the potential for, again, additional repeat purchase orders from these folks sometime in the latter half of fiscal 2027.

We do have better clarity to provide confidence behind that assumption given, again, the information that was shared with us.

Then just one more for me before I get back in the queue. This sounds pretty exciting for '27 if all the stars kind of align here.

Are you seeing that the quote-unquote blue-chip CPG companies that are now looking to do these product launches, what's been the sales cycle of them working with you or working with your co-packer partners in terms of getting to the point to say, hey, you know what, I think we want to go launch with this? Has it been a 2-year cycle or a 1-year cycle?

Then for the newer ones that are coming in, are you seeing an acceleration of that decision to say, okay, let's just get going, again, I'm leading this a bit, is there validation that you're seeing in the market that is driving these blue-chip companies to say, okay, vacuum microwave is now something that we can really kind of latch onto?

I'll start with the timing. Typically, the forthcoming meaningful launches from large billion-dollar CPG companies are typically 1 to 1.5 years of development.

Doing the product development, matching them up with co-manufacturers, thankfully many of our royalty partners are already approved suppliers for many of these large CPGs, you skip that headache because they have to do facility audits and all of those things. Yeah, 1 to 1.5 years to the point where we're at now where there's planned launches in calendar 2027 or fiscal 2027 for us, which is great.

Then obviously, additional success in market is driving faster decisions. One example of that would be some of the existing relationships in pet that some of our co-manufacturers have, and they've already supplied them with a certain type of product which is doing really well in market, and then they showed a better version of it at slightly less cost, i.e., not freeze-dried, but vacuum microwave-dried.

That really gets them excited to move faster because they already know there's demand in market for these types of formats, but they can provide a better product at lower cost. That scenario has really driven some of the decision points more quickly than maybe they would have been in times past.

Great. All right, thanks very much.

Thanks, Noel.

Hi, Brent. This is Bart from Belgium.

Interesting quarter. Can you give me an idea on the number of machines that have not been sold, that are in inventory right now?

Currently, we have a pretty much fully built 100 kW nutraREV machine in inventory. Then we have several 10 kW units in inventory as well, which we always carry so that we can readily deploy them for different evaluation projects.

The majority of the inventory number in our financial statements is primarily that 100 kW nutraREV machine. I did have another webcast question, which kind of ties into this question from you, Bart, is where were the large opportunities earlier in the year?

I'll say that three of them are still very active that were looking to close before the end of this calendar year, and only one of them went away. We closed Procesadora.

If we had closed obviously three out of the four on the timing we assumed, we hopefully would have had four machines closed year-to-date. That just hasn't been the case.

They're still in the pipeline, and we expect that to transpire sometime in the next quarter into fiscal 2027.

Okay. Do you have anything planned in terms of a new big REV machine, or are you anticipating an order, or are you waiting for the 100 kW machine to be sold?

I would state that there are several projects that are getting to decision points more near-term than long-term, and the difference in starting to pre-build another large-scale machine versus getting an order through our traditional 40% deposit, 20% 3 months into the fabrication, 20% before shipment so we can manage the capital appropriately, is de minimis. From our standpoint strategically, we're just going to push forward to trying to close these deals, and then once we receive deposits, start building the next machines.

Thank you. Can you give me some sort of feeling how the utilization rate across the different plant base is, meaning is it close to 50%, is it close to 95%?

How close are we to full-capacity utilization that, in fact, the clients are forced to buy a new REV dryer?

Totally varies from royalty partner to royalty partner. Some are closing in on 90%, 95% capacity utilization for certain large-scale equipment; others are in the range of 40% to 50%.

Some that were maybe operating at 80%, and I'll use an example, one disappointment for us is a large dairy company who's actually down year-over-year close to 90% in royalties. That's because they lost a industrial buyer of an ingredient.

That is expected to return in October of this year. Even though we had very good royalties this quarter, that's also including a large reduction in that particular royalty payer, which is expected to rebound later in the year.

There are ebbs and flows across the board, but overall, as I alluded to in an earlier response, there is an overall rising of tide, I'd say. In terms of capacity available in the installed base, there's probably another 25% to 30% available in the installed base to utilize to generate further royalties for EnWave.

Okay. Thanks, and good luck this and the next quarters.

Thank you, Bart. Okay.

Seeing that there are no other dialing questions at this moment, there were two again web questions that were posed. One was, why are some of the larger machines delayed at the same time earlier this year?

I can give you sort of high-level details in the three that have been delayed. One went away for alternative protein company who decided to go with a cheaper air-drying option.

The other three that are very much in play currently, as well as a potential fourth here that hopefully we'll be talking about in a month or so, is in the pet industry for a new facility that's being built. The original idea was that the machinery was going to go into an existing facility, but then the operations folks rejigged the plan on that, so that's a 2027 delivery potentially.

The second is to do with a product launch that got delayed that's now launched currently, and we're hoping that the metrics tied to that product launch support the investment in a large-scale piece of equipment in the short term. Then lastly, there was a partner that had an exclusivity requirement to purchase a large-scale piece of equipment before March 31st.

All indications were that they were going to move forward up until about a week before the end of March, and they said they were going to delay their decision. Now we're talking to them again about increased capacity as their business has grown since that time.

Very much all still in play, those three other large-scale opportunities, for various reasons got delayed out of our control. We have to continue to soldier on and continue to pursue closing those deals.

The second question came in was about the royalty pipeline indications for fiscal 2027. I think we covered that off with responses to Noel and Bart.

We do have great clarity in terms of some of these product launches, expected utilization from some of our larger royalty payers, and some of the publicly disclosed forecasts from a company like BranchOut Foods does, again, support a quicker path to $3 million in royalties in the next fiscal given the information and the wins that they'd be able to share publicly. With that, I got one more question down below.

"So for the delayed machine sales, if a year ago they were close to a decision point and now they are close to a decision point, what has transpired over the year? What turned around a year ago when they were not close to a decision point?"

Exactly the explanation I just gave for the three different reasons for those projects is to that, had to do with operations that infrastructure has changed, had to do with product launch delays, which is now taking place, and in the case of the other, is more so getting to a critical point with business success to justify the CapEx to purchase a large-scale equipment, even though they perhaps lost their exclusive rights in their license because of this delayed decision. Okay.

With that, I'd like to thank everybody who's joined our Q3 conference call today. If you have any further questions pertaining to the company, please feel free to reach out to Nav or I.

At this time, you may disconnect. Thank you.