EnWave today announced details pertaining to an operational efficiency plan that includes the wind-down of the company’s REVworx co-manufacturing operations.
It said the move reflects EnWave’s Radiant Energy Vacuum (REV) technology reaching a more mature stage of commercial adoption which has reduced the need for internal co-manufacturing activities to support customer testing and validation.
EnWave said total reductions in facility leases, labor and other operating costs are expected to lower its annual operating expense base by approximately $1 million on a run-rate basis by fiscal 2028. It also said anticipated savings are expected to reduce its annual operating cost base to approximately $3.7 million.
The property, plant and equipment currently dedicated to REVworx, including a 10kW and 60kW REV machine, has an estimated resale value of $2 million and can be transferred to inventory to support future machine sales.
REVworx was originally established in 2022 to help accelerate the commercialization of new REV-dried products by providing prospective and existing customers with access to commercial-scale production capacity. While REVworx has provided strategic value in demonstrating REV at commercial scale and accelerating the commercial validation of REV technology, the company said, EnWave’s growing global ecosystem of licensed royalty partners now provides alternative commercial-scale manufacturing capacity for companies seeking access to REV technology.
"Therefore, EnWave has decided that maintaining a dedicated internal co-manufacturing operation is no longer necessary to support the Company’s commercialization strategy and is accordingly winding down its REVworx co-manufacturing operations," the company said in a news release.
