Edgewater Wireless Announces Second Quarter 2023 Financial Results

Rhea-AI Summary

Edgewater Wireless Systems Inc. (OTC: KPIFF) reported its Q2 FY 2023 results with revenues of $1,795 and a reduced net loss of $266,028 compared to $280,738 in Q2 FY 2022. The company is actively engaging with Tier 1 service providers to address challenges in residential Wi-Fi, emphasizing the need for improved performance with Spectrum Slicing technology. Notably, the firm issued $716,000 in convertible debentures at a 10% annual interest rate. The recent resumption of in-person industry events has fostered business development across North America and Europe, highlighting a shift toward WiFi7 standards.

Positive

• Reduced net loss from $280,738 in Q2 FY 2022 to $266,028 in Q2 FY 2023.
• Engagements with Tier 1 service providers indicate strong business development opportunities.
• Successfully issued $716,000 in convertible debentures at 10% interest, enhancing capital.

Negative

• Revenue remains significantly low at $1,795, indicating ongoing development stage challenges.

OTTAWA, Ontario--(BUSINESS WIRE)-- Edgewater Wireless Systems Inc. (TSXV: YFI) (OTC: KPIFF), the industry leader in Wi-Fi Spectrum Slicing technology for residential and enterprise markets, is pleased to announce its financial and operational results for the Second Quarter ending October 31, 2022, which are available on SEDAR (www.SEDAR.com).

“Engagements with Tier 1 Service Providers and equipment vendors continue to bolster our confidence in the quickly changing residential Wi-Fi environments they service. Service Providers and equipment vendors alike re-iterate the multi-gigabit burst rates promised by WiFi5 and WiFi6 remain elusive. Contention and interference simply overwhelm legacy, single-channel architectures,” said Andrew Skafel, President and CEO of Edgewater Wireless. “With Spectrum Slicing, multiple, in-band physical links/channels are employed to turn the Wi-Fi spectrum into a multi-lane superhighway of connectivity — providing the greatest performance for ALL devices — harnessing the promise of WiFi7 and features like MLO.”

Q2 FY 2023 Activities and Accomplishments:

• With the lifting of COVID restrictions, in-person industry events resumed, creating a platform for business development and furthering customer engagements in Europe and North America.
  • The critical narrative from Service Provider discussions at the Wireless Broadband Alliance Global Congress focused on the accelerated evolution of home Wi-Fi and the rapid shift to the new WiFi7 standard.
  • Globally, service provider concerns shifted from the pre-COVID narrative of increased ‘speeds and feeds’ to providing lower latency and better quality of service for all customers.
  • Surprisingly, several major equipment manufacturers have acknowledged the challenges facing Wi-Fi as device density and contention continue to increase.
• In August, the Company issued $716,000 of convertible debentures bearing an interest rate of 10% per annum, payable quarterly in shares or cash at the discretion of management.
• 2023 AGM: The Company held its 2023 Annual General Meeting outside the reporting period. Shareholders voted in favour of all items the Board of Directors and Management put forward. The number of Directors was set at three (3), and Brian Imrie, Ralph Garcea and Andrew Skafel were appointed.

Q2 FY 2023 Operating Results:

• We are a development stage company, and revenues for Q2 FY 2023 were $1,795
• Net loss for Q2 FY 2023 was $266,028 compared to a net loss of $280,738 for Q2 FY 2022

Detailed information from the Company’s interim consolidated Financial Statements and Management Discussion and Analysis are available on www.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 26 granted 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.

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/20221220005487/en/

Edgewater Wireless:

Andrew Skafel, President and CEO

E: andrews@edgewaterwireless.com

Bill Mitoulas, Investor Relations

E: ir@edgewaterwireless.com

T: +1.416.479.9547

www.edgewaterwireless.com

Source: Edgewater Wireless Systems Inc.

FAQ

What were Edgewater Wireless' Q2 FY 2023 revenue and net loss?

Edgewater Wireless reported revenues of $1,795 and a net loss of $266,028 for Q2 FY 2023.

How has Edgewater Wireless engaged with Tier 1 service providers?

Edgewater Wireless is actively engaging with Tier 1 service providers to improve residential Wi-Fi performance and address challenges.

What is the significance of the convertible debentures issued by Edgewater Wireless?

Edgewater Wireless issued $716,000 in convertible debentures at a 10% annual interest rate to enhance capital for operations.

What major changes are happening in the residential Wi-Fi market according to Edgewater Wireless?

The shift towards WiFi7 standards and the increased demand for low latency and better quality of service are significant changes in the residential Wi-Fi market.