RE:RE:Q3 FinancialsSome clarification about the royaltys:
As for the Company’s royalties, they are most certainly moving in the
right direction. First, although lots of REV capacity has already been
installed, most of the current royalties are derived from two parties
only, NutraDried and Milne Fruit.
In the past nine months NutraDried contributed $217 thousand in
royalties. Note that NutraDried sales, and as such royalties, are
picking up speed as Slant has taken over the distribution from Spire.
Also important is that the NutraDried royalty is NOT included in the
regular royalties that are announced because they are considered an
intercompany transaction, and as such eliminated upon consolidation from
revenue.
Excluding NutraDried, $293 thousand in royalties has been received in
the first nine months of 2017. The most significant products that we
know of that have been on the market for a considerable time are
Milne’s. As mentioned, more than 50 consumer products on the market
today already use its ingredients.
Bonduelle and Ereli Agrosan, for example, are in the
process of starting commercial production on their full scale dryer. We
expect royalties to kick in shortly from those two. Also, Milne’s second
120kW quantaREV dryer was commissioned early August, which will be an
additional source of royalties. Also Gay Lea and Van Dyk will start
contributing to royalties later this year.
So based on the first nine months of FY 2017, EnWave will have close to
$700 thousand in royalties this year. Next FY that number could easily
reach $1.5 million. A number that goes straight to the bottom line!
Greetings,