Edgewater Wireless Announces Fiscal Q1 2022 Financial Results

Rhea-AI Summary

Edgewater Wireless Systems Inc. (OTC Pink: KPIFF) reported its financial results for the first quarter ending July 31, 2021. The company, focusing on Wi-Fi Spectrum Slicing technology, incurred a net loss of $286,445, up from $181,911 in Q1 2020. Sales and marketing expenses decreased to $36,951, while general and administrative expenses rose to $204,932. Cash and short-term investments stood at $1,053,925. Upcoming initiatives include expanding pilot projects with Tier 1 service providers and forming silicon partnerships to enhance commercialization efforts.

Positive

• Sales and marketing expenses decreased by $32,384 to $36,951 compared to Q1 FY 2021.
• The company is capturing significant inbound interest from service providers and large enterprises.

Negative

• Net loss increased to $286,445 from $181,911 in Q1 FY 2021.
• General and administrative expenses rose significantly to $204,932 from $121,021.

OTTAWA, Ontario--(BUSINESS WIRE)-- Edgewater Wireless Systems Inc. (TSX.V:YFI) (OTC Pink:KPIFF), the industry leader in Wi-Fi Spectrum Slicing technology for residential and enterprise markets, is pleased to announce its financial results for the First Quarter Ending July 31, 2021, which are available on SEDAR (www.sedar.com). The Company fiscal year-end is April 30.

“Edgewater Wireless continues its strategic focus on adding new proof of concept Tier-1 candidates, moving our new commercial pilot project forward and further expanding our silicon partnerships & alliances initiatives. We are delighted to have recently announced our partnership with CMC Microsystems to accelerate the commercialization of Edgewater’s Spectrum Slicing silicon solutions for IoT applications. Edgewater has generated significant inbound service provider and large enterprise interest and is capturing strong momentum. We are pleased with our progress and are looking forward to building on that momentum,” stated Andrew Skafel, CEO of Edgewater Wireless.

Highlights for the Fiscal First Quarter Ended July 31, 2021:

• Edgewater Wireless is a pre-revenue, development-stage company.
• During the three months ended July 31, 2021, the Company recorded a net loss of $286,445, compared to a net loss of $181,911, incurred during the three months ended July 31, 2020.
• Sales and marketing expenses decreased by $32,384 to $36,951 in Q1 FY 2022 compared to $69,335 in Q1 FY 2021.
• General and administrative expenses increased by $83,911 to $204,932 in Q1 FY 2022 compared to $121,021 in Q1 FY 2021. The increase is attributed mainly to the increase in activity in the quarter due to the equity raised compared to the same period the previous year.
• Product development expenses of $23,250 reflect a resumption of research and development work at our Churchill location in Ottawa, Canada.
• Cash and short-term investments at the end of July 31, 2021, were $1,053,925.

Subsequent Events to the Fiscal First Quarter Ended July 31, 2021:

• September 20, 2021: CMC and Edgewater Wireless Accelerate Commercialization of Game-Changing Technology
  
  Edgewater Wireless Inc. and CMC Microsystems, manager of Canada’s National Design Network^® (CNDN), announced a Memorandum of Understanding (MOU) for expanded technology sharing. Under this agreement, Edgewater will provide CMC with access to their Spectrum Slicing Development Kit for IoT devices for residential and industrial applications. CMC will, in turn, facilitate access to state-of-the-art design environments (CAD), prototype services (FAB) and equipment for device validation (LAB). CMC will also provide pre-fabrication support in the form of an independent design review and validation process using members of its pan-Canadian research network.

The Company Reiterates its Strategic Focus on the Following Growth Initiatives:

1. Proof of Concept (PoC) Pipeline Expansion: Management continues to focus on select Tier 1 Service Providers who have displayed a strong and genuine interest in participating in future Proof of Concepts and Pilots.. The Company anticipates providing status updates to the market in the coming months on the progress of PoC engagements.
2. Commercial Pilot Project: Edgewater management is working directly with the Tier 1 Service Provider to take Edgewater’s Spectrum Slicing product through extensive lab testing. The Tier-1 Service Provider had previously participated in the successful PoC, and Edgewater’s top priority is to move to the pilot stage or physical test phase.
3. Silicon Partnerships and Alliances: Edgewater management continues to focus on building alliances with several potential silicon partners to strengthen its move to capture the volume market for Spectrum Slicing. The ultimate goal is to create an ecosystem of world-class silicon partnerships to continue to move its strategic initiatives forward.

For further information, please visit SEDAR.ca.

About Edgewater Wireless
We make Wi-Fi. Better.
Edgewater Wireless (www.edgewaterwireless.com) is the industry leader in innovative Spectrum Slicing technology for residential and commercial markets. We develop advanced Wi-Fi silicon solutions, Access Points, and IP licensing designed to meet the high-density and high quality-of-service needs of service providers and their customers. With 24+ patents, Edgewater’s Multi-Channel, Single Radio (MCSR) technology revolutionizes Wi-Fi, delivering next-generation Wi-Fi today.

Edgewater’s physical layer Spectrum Slicing allows a frequency band to be divided, or sliced, to enable more radios to operate in a given area. Think of Spectrum Slicing like moving from a single-lane road to a multi-lane highway — regardless of Wi-Fi technology. The recently completed Proof of Concept (PoC) with a major Tier 1 Service Provider showed 7 to 18 times performance gains in 75% of homes surveyed. Interestingly, homes with the most devices saw the greatest improvements.

For more information, visit www.edgewaterwireless.com or www.aera.io.

Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. Although Edgewater Wireless believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Edgewater Wireless can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause Edgewater Wireless’ actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to access to capital markets, market forces, competition from new and existing companies and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. Edgewater Wireless undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210929005942/en/

Edgewater Wireless:

Andrew Skafel, President and CEO

andrews@edgewaterwireless.com

Bill Mitoulas, Investor Relations

ir@edgewaterwireless.com

+1.416.479.9547

www.edgewaterwireless.com

Source: Edgewater Wireless Systems Inc.

FAQ

What were Edgewater Wireless's financial results for the first quarter ending July 31, 2021?

Edgewater Wireless reported a net loss of $286,445 for Q1 FY 2022, compared to $181,911 in Q1 FY 2021.

What is the cash position of Edgewater Wireless as of July 31, 2021?

As of July 31, 2021, Edgewater Wireless had $1,053,925 in cash and short-term investments.

What key initiatives is Edgewater Wireless pursuing post-Q1 FY 2022?

Edgewater is focusing on expanding proof of concept pilots with Tier 1 service providers and developing silicon partnerships.

How much did Edgewater Wireless decrease its sales and marketing expenses in Q1 FY 2022?

Sales and marketing expenses decreased by $32,384 to $36,951 in Q1 FY 2022 compared to the same quarter in FY 2021.