All right, everybody, I'd like to introduce our next presentation here at the Planet Microcap Showcase, Vancouver, in association with Small Cap Discoveries. At six six, we got Brent Charlton from EnWave. Sorry.
Thanks, buddy.
I've done it so many times.
You get the full thing. Two ninety as well. Pretty heavy, so. Thanks. Welcome, everybody. Again, my name is Brent Charlton. I'm the CEO of EnWave Corporation. I've been working with the company now for a full of 14 years, so I've seen it evolve, devolve, and now get to the point where we're ready to really take advantage of the ongoing commercialization of our patented vacuum microwave dehydration technology. We partner now with over 50 companies globally, primarily large food companies, who have bought our machinery, which offers a very elaborate value proposition, which I'll get into. And each of those adopters have agreed to pay us royalties on the value of the products that they are dehydrating and then selling to consumers on a global basis. So our current cap table is about 110 million common shares outstanding.
Our market capitalization has been depressed over the past twelve months, primarily to do with two family office positions that exited the business and our relatively modest liquidity. All that being said, we look at EnWave today as being a, a very attractive opportunity for investment, given the pipeline that we have going forward into fiscal twenty-five. Our fiscal year end is September thirtieth, starting October first. If you look at our overall revenue performance the past three years, we've been around, call it, CAD 10-12 million-dollar revenue business, with about 85%-90% of that revenue coming from the sale of our vacuum microwave machinery. Margin on those, on that revenue is about 30% gross margin. And the second big stream of revenue came from royalties being generated, again, through the sale of products being dehydrated from the machines that are being deployed.
Currently, our cash position is north of CAD 4 million, so there's no need for us to go to the market to raise capital and dilute our shareholders. We feel that's an adequate amount of capital to execute on our strategy. As I go into the next few slides, talk about some of these blue-chip, new license partners that are seeing traction in the market, which we believe will lead to additional follow-up orders on machines, and therefore, royalty growth within our portfolio. This business model, this licensing royalty business model that we've implemented, is not the norm in industry. Typical OEMs will sell machinery, they'll sign an after-sale service contract, and that's it. So there needs to be a tangible value to the user of our tech to justify that ongoing royalty, and I'll get into those details now.
In regards to EnWave as an investment thesis, we've proven out the technology. It's no longer in development. We have sophisticated products that we've sold multiple times over, and we've attracted the attention from some of the biggest CPG companies globally to adopt that. Our leadership team is tenured. We have a ton of experience with this licensing model and also in the food industry. We've sort of faded out of the cannabis industry, which we entered into serendipitously in twenty eighteen, twenty nineteen, which led to a number of purchase orders, but ultimately, that industry is a little bit unstable, whereas our focus on a go-forward basis will be primarily, again, in food.
We also have a blue-sky aspect to the story in that we are collaborating in the pharmaceutical industry through an industry-leading partner, GEA Lyophil, which is one of the largest purveyors of lyophilization equipment, to try and commercialize our technology for the drying of vaccinations and other biopharmaceutical products. That's sort of on the back burner, not a real driver of revenue today, but could be in the future. Why would companies consider vacuum microwave in the food space versus the primary incumbents of freeze drying and air drying, which are predominantly used to create shelf-stable snacks and ingredients? Typically, those two incumbents aren't satisfying the need for innovation. Oftentimes, they're quite expensive, long in processing times, and limited in outcomes, given the nature of the removal of water within those particular materials. That's where EnWave comes in.
By combining vacuum and microwave, we can create a very fast, efficient way to evenly remove moisture content from any organic load that goes through our machinery, and doing so can provide different qualitative outcomes, satisfying what consumers want and allowing for food companies to diversify their portfolios and also innovate and stand out from their competition. Further, the use of microwave energy is incredibly efficient, as I said, the processing times are far less than the incumbents. Our typical time would be between one to three hours, going from fresh to dry, versus freeze drying, which can be north of 15 hours to produce the same amount of product, or even air drying takes between six to eight hours, so we're looking at a remarkable time difference and therefore, cost saving on a per-unit basis.
This slide highlights some of the other value proposition points under consideration for those adopting REV technology. As you can see at the bottom of the slide, some of the highlights from an ESG standpoint, less energy utilization. That energy that's used is typically electrical energy, which can be sourced from green sources. Often some of our well-known branded products claim it's a green snack product based on that point. It's also got a closed-loop cooling system, so not wasting water, and allows some of its users to take B or C grade food products that otherwise would go to the landfill because they don't qualify to be sold through the grocery chain fresh, and turn that into a high-value ingredient or snack product to be sold in market.
So currently, as I mentioned, we have 54 licensed partners, and a breakdown of the verticals in which we've commercialized this technology successfully, is highlighted in those blue circles along each individual vertical, i.e., fruit and vegetable, we have 17 commercial licenses, dairy, 16 licenses, and so on. We're also operating in 25 countries globally, so we have large partnerships in Japan with a very well-known snacking company, Calbee, Dole in Thailand and the Philippines, in Europe for a variety of companies in North America, South America as well. We will not do business in China, Russia, or any other jurisdiction that doesn't respect intellectual property law, because that really is the foundation of our business's value, and that we're able to leverage that IP to justify the royalties being paid from our licensors.
And so, I'd say, important to note that we are the only company that offers scalable and reliable vacuum microwave equipment. And it's a pretty bold statement to make, but it's true, and that's the primary reason why we're able to execute on this business model and collection of royalties. Microwave is a fickle thing. Under a vacuum, it tends to concentrate in different areas and not be homogeneous in distribution. And our patents, of which we have eighteen, protect the apparatus designs that ensure that homogeneous distribution of energy, and also the processing protocols for different product types have also been patented, so layers in further protection to the folks that adopt our technology.
In terms of total addressable market, CAD 4 . 3 billion dollars' worth of dehydration equipment was sold in 2023, and that's a combination of freeze dryers, air dryers, and other bespoke drying mechanisms, so very large market for us to go after in terms of machine revenue, quantum. And then in terms of, you know, what could we apply the royalty to? And typically, a royalty structure is a percentage of gross revenue. So for example, I mentioned Dole. If Dole sells, you know, CAD 30 to CAD 40 million worth of dried pineapple chips, well, we're gonna get 2% of that gross revenue. They're gonna pay us that on a quarterly basis, ongoing. It's a similar structure for other food companies, between 2% and 5%, typically.
That's why it's important to note that CAD 36 billion worth of just freeze-dried food was sold in 2022. So, I mentioned machine sales, of which 85% of our revenue was in 2023, is a very important part of our financial performance. If you note, Q1 and Q2 of our fiscal year, 2024, was quite weak and lumpy because we didn't close any large-scale fruit stores within that time frame. Then in Q3, we closed 3 in a row, and so Q3 was a fantastic quarter because of that percentage of revenue derived from the machine sales. Q4 is expected to be strong as well. As we go into fiscal 2025, we have a number of new opportunities, both repeat orders and new orders for our clientele. The REV royalties that we generate, pure margin, right?
Our run rate for fiscal 2024, which ends in a few days here, September 30th, we should be coming somewhere in the range of CAD 2 million now, and that's up from CAD 1.5 million the year prior, and we're just in the process of finalizing several large-scale installations right now, which will lend itself to incremental growth in fiscal twenty-five. And I'll talk a bit more about the pipeline in a second in terms of machine orders and what that could mean for our financials. Lastly, just worth mentioning, we do have a co-manufacturing facility in Delta. That's where we're based, just outside of Vancouver. And we use that more so as a sales tool versus a revenue driver, allowing food companies to do line trials, get product to market, de-risk the business case, really, before deploying material CapEx to get their own internal manufacturer.
I did say that, you know, the bold claim, we're the only company that offers a commercial-scale, reliable vacuum microwave, and really, that's the primary reason that food companies will contact us and engage on innovation projects. We're also, you know, proactively hunting new prospects too. But we are the only proven option. Beyond that, because of the royalty model, it's a win-win scenario and that we want to ensure that that machine is running twenty-four seven, if possible. Meaning that we have technicians, both food scientists and engineers, available via WhatsApp, email, getting on planes, doing whatever we have to do to maximize the success of our royalty partners. And that will continue in the culture of EnWave as we move forward. And then lastly, just proven process.
We now have close to ten years operating history with our scaled-up machinery. So we're not selling theoretical, you know, machinery with AutoCAD designs. We can take prospects through plants, let them talk to our current royalty partners, allow them to provide the testimonials for how we work with them, and then hopefully accelerate, again, the growth of our royalty portfolio through additional licenses being signed. So what's the sales cycle, typically? That ranges. So small to medium enterprises can be anywhere between three months to twelve months, especially if it's, to do with a product that's already been successful in the market. The larger, you know, multi-billion revenue, CPG, consumer packaged good companies, can take anywhere between a year to three years, to be frank.
And so we've realized a number of those relationships over the past two years, which has really changed the profile of our business, in that now it's not a question of, okay, going into robust negotiations to get the commercial terms, the royalties, exclusivities, all done. It's about demand and market. So we've got several of our partners who have maxed out or are close to maxing out their capacity on the existing lines that they purchased, and are now providing us with forecasts for fiscal 2025 based on their volume needs. And that's given us a lot of optimism in terms of up to doubling our performance in number of large-scale machines to be sold in fiscal 2025. Past three years, we've sold between three and five large-scale machines per year.
For fiscal 2025, we're feeling, I think, conservative optimism in eight machines, but we've got far more. We've got thirty projects on the go for 2025, but we've targeted eight. Eight machines for us is markedly different than four. At four machines, we're a cash flow break-even business. At eight, selling them, and I'll get to it in a minute on the pricing, would get close to CAD 3 million-CAD 4 million in bottom line or EBITDA, excuse me, for fiscal 2025, if we're successful in that effort. So here's a snapshot, sorry, trophy wall per se. A lot of the logos you recognize, many of which you won't recognize. The ones you don't recognize are typically the co-manufacturers, the ones that are drying the strawberries and selling to General Mills versus General Mills themselves.
They're all equally important in terms of the progression and adoption of our REV vacuum microwave technology. So the machinery, we have three primary products that are trusted and true and sold many times over and being used by all types of companies. The first is a batch unit. It sells for approximately CAD 300,000, and that is often used for product development, process, protocol refinement, and small-scale market entries to, again, de-risk the acquisition of larger lines. And then we have a medium-sized unit, sells for CAD 1.75 million. The medium and large-scale machines are continuous, and that is another remarkable difference to large batch freeze dryers.
So it allows the operators to switch over products more frequently, and also ensures that if there is an issue, for whatever reason, the electricity goes out at the plant, you're not talking about the full batch being written off, you're talking about a small, small component of the product that's passing through the machinery during that particular time. The largest line sells for CAD 2.5 million, and again, gross margin on these sales is about 30%. So as EnWave grows, we have natural scalability. We have current capacity to build up to 10 large-scale machines per year at our site in Delta, British Columbia. As I said, the past few years has been between three and five machines, so we have room without any additional investment. Forecasting, you know, potentially eight machines for fiscal 2025, we still have existing capacity to do that.
You're not looking at massive investment or growth in expense structure to meet that need. And as we continue to deploy these large lines, which generate anywhere between CAD 100,000 to, in certain anomaly cases, CAD 400,000 in royalties per annum, these large machines, once they're up to about 80% capacity utilization, will grow incrementally as we deploy machine by machine by machine. Ultimately, leading to margin growth, because the mix of revenue will start to increase in terms of the royalty contribution. In addition to the pipeline we currently have, and I guess, the internal optimism that we're going to execute on our plans, we've also committed to investing in a more robust sales structure.
We recently went out and recruited a new VP Sales, a lady by the name of Ms. Danna Dunnage , who's ex-President of Gordon Food Service. You probably know that company, food distribution organization here in Canada. And she's been given the green light to hire an additional manager in the Netherlands and Thailand to expand our breadth globally in an effort to, again, build a pipeline. We've also committed to attending some of the major industry trade shows, more so than we have in times past. We typically would do four or five trade shows a year.
This year, we're tapped to do about eight to 10 trade shows per year. Going to, in the next three months to Chicago, Las Vegas, Dubai, Jakarta, Manila. So we'll be on planes pretty much full stop after this conference to try again to drive business. We were just recently in Mumbai, India, for Anuga FoodTec amongst others. We're really putting the full court press on driving commercialization of our technology and therefore our royalty streams.
This slide depicts our royalty growth that we've seen the past few years at an 18.9% CAGR going to fiscal 2023. The LTM as of Q3 2024 was CAD 1.7 million, but as I said, we're expecting to come in somewhere around CAD 2 million for fiscal 2024 in royalties, which again, is pure margin. The next slide we have here illustrates the total installed capacity. The three machines that you saw a few slides ago, the smallest machine is a 10-kilowatt unit, medium size is 60, and large is between 100-120 kilowatts. As you can see, the total kilowatt installed base increased quite nicely from 2019 to 2022.
A little blip there during COVID with new orders. We're just on the precipice of closing in on three finished installations over the next month. For fiscal 2024, you should see that installed base jump to about 27-28 hundred kilowatts, which is indicative of the royalties therefore improving in the coming year, because once those machines turn on, it's not instantaneous royalty generation. It takes time for them to build up the manufacturing capacity utilization and of course royalties. Some of the highlights from our last quarter financials, I think first is just positive adjusted EBITDA. We hadn't had that in a few quarters given that Q1 and Q2 were weak, so that was very much welcomed. Then year-over-year comparison of Q3 to Q3, we had increase in revenue as well, and very strong margin.
That strong margin was tied primarily to do with a strategic redeployment of a machine that we had taken back several years ago from a partner that went defunct, and we found a buyer for that, so it made very, very strong margin. But again, typical margin to expect is 30% on the machine sales, and depending on the blend of revenue, 100% from royalties. So go-forward strategy. Ultimately, at our town hall, internal town hall we had last week, it was basically simple. Sell, sell, sell, sell, sell, sell, sell, sell, sell, sell. Technology is proven. Business case is proven. We've licensed this to some very sophisticated procurement departments and legal departments to get through these long-term license agreements, which are intact until our intellectual property portfolio expires, which goes out until 2038 , 2039.
So we've got a nice runway for royalty collection currently. That's all been done. We've got proven successful products in the market. So Dole, with their pineapple chips and banana chips, are killing it right now. They're looking for additional manufacturing capacity. Calbee in Japan with their apple chips, dairy companies in Europe, what have you. That's all done. Now it's a matter how fast can we build up that momentum to get those folks to get those repeat purchase orders on additional manufacturing capacity, and also go and coerce their competitors to do the same thing, not necessarily in the same geographic regions, but others to complement their own growth. So clear go-forward strategy of where we need to be. As I mentioned, well capitalized, CAD 4 million on the balance sheet, no debt. Don't need to raise though.
Really, you know, what we're here for and why we're spending money on doing IR again, which we hadn't done for about two and a half, three years, because we didn't see it as a good use of proceeds before we got the company in the right spot, is to get more eyes on stock. And for us to deliver and execute, and hopefully, news release by news release, you can-- are compelled to become a shareholder of our business sometime in the future. So I'll stop now and ask if there's any questions from the audience.
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Can you hear now? I won't say it's like slam dunk, but. Everyone sucks. Everything always sucks. Yeah, but, you know, we've got a proven commodity now.
Do they get something in exchange for the royalty? Is there a ongoing support or something in line?
Yeah, 24/7 remote monitoring of the machine usage. So making sure there's minimal downtime, if any. 30% of access for improvement, for product and service development. So it's not just the machines we left you. Any new innovation that we come across, we share. And anything you have from top or in our IP portfolio, including the license product.
You guys ever having trouble with covering, royalties, perhaps smaller companies?
That's a great question. Sometimes, yes. Obviously, for companies with a small-scale unit that's ordered from us, like CAD 5,000 on the quarter, we put together a payment plan so they can pay us over time, it can be easy. But we remotely monitor usage. We monitor against the quota report, and there are tools in the license to shut it down. Also, it's still [something wrong with the machine]. So with remote access, we can manage the royalties. Turn it off, it's okay. Okay. Any other questions before we wrap up? I think I'm done on time. Okay, thanks, everyone.