Edgewater Wireless Announces Q1 FY2026 Financial Results and Corporate Update

09/29/2025 – 10:07 PM

Quarter ended July 31, 2025 – momentum in Spectrum Slicing™, non-dilutive funding, and capital structure flexibility

OTTAWA, Ontario – Edgewater Wireless Systems Inc. (TSXV: YFI, OTC: KPIFF), a pioneer in AI-powered Wi-Fi Spectrum Slicing™ technology, has released its unaudited financial results for the three months ending July 31, 2025 (Q1 FY2026). The report highlights progress in the company’s core technology, strategic funding initiatives, and efforts to bolster its capital structure. All figures are reported in Canadian dollars, adhering to IFRS standards.

Strategic Focus on Spectrum Slicing and AI Integration

Edgewater Wireless’s management emphasizes a strategic focus on developing its Wi-Fi Spectrum Slicing™ technology, an innovative approach that leverages artificial intelligence to optimize Wi-Fi performance in dense environments. The company’s core technology, PrismIQ™, mitigates congestion by intelligently allocating spectrum and dynamically reconfiguring channel and link density.

“We’ve been diligently executing a capital-efficient plan during Q1,” stated Andrew Skafel, President & CEO of Edgewater Wireless Systems Inc. “Our primary objective is to advance our Spectrum Slicing silicon/IP strategy, enhance engagement within the ecosystem, and secure non-dilutive funding. With our RF front-end now packaged and the Arm-powered AI subsystem prototyping progressing well, we are now concentrating on converting this technical momentum into tangible commercial outcomes.”

Q1 FY2026 Highlights

• Ecosystem & Brand Building: Showcased the advantages of Spectrum Slicing for managed broadband at the RDK Tech Summit 2025 in London and participated in the Silicon Catalyst Portfolio Company Update in Silicon Valley. The company also launched a redesigned corporate website and an updated investor presentation.
• Non-Dilutive Funding: Secured approximately C$921,000 in funding from FABrIC, a Canadian semiconductor commercialization program, contributing to a larger C$2.4 million development project. This influx of non-dilutive capital is crucial for Edgewater’s future development efforts.
• Talent & Incentives: Granted 500,000 stock options to a consultant, vesting over two years, to align incentives with the achievement of key milestones. This strategy suggests a focus on performance-driven partnerships.

Post-Quarter Developments

• Product Development Milestones: Completed the packaging of the company’s RF front-end and commenced prototyping an Arm-powered AI subsystem designed to improve intelligent, edge-centric Wi-Fi performance. The successful completion of milestones like these is critical for Edgewater’s potential to offer its customers more advanced Wi-Fi solutions.
• Capital Structure Adjustment: Received approval from the TSXV to extend the maturity of its 2022 unsecured convertible debentures from September 1, 2025, to September 1, 2027. The extension includes an acceleration (forced-conversion) provision if the VWAP reaches or exceeds $0.18 for 10 consecutive trading days. All other terms remain unchanged. This adjustment gives Edgewater more financial flexibility, reducing immediate debt concerns and improving its ability to invest in long-term growth.
• Increased Visibility: The Company’s CEO was selected to participate in Silicon Catalyst’s “Catalysts of Innovation” panel along with key ecosystem partners, indicating growing industry recognition.

Financial Performance (Q1 FY2026)

As of July 31, 2025, Edgewater Wireless reported a cash balance of $622,753. However, a working capital deficiency emerged, with current assets totaling $909,936 and current liabilities amounting to $1,623,803. The company recorded a net loss of $359,956 for the quarter (basic and diluted loss per share: $0.002, based on a weighted-average of 237,879,348 shares outstanding). This loss was driven by operating expenses of $359,736, including G&A expenses of $267,460 and product development expenditures of $68,113. Partially offsetting these expenses was $72,060 of other income derived from eligible FABrIC program costs. The results also reflect a non-cash change in the fair value of convertible debentures of $58,469; convertible debentures were valued at $480,800 at quarter-end.

Outlook and Future Priorities

Edgewater Wireless is maintaining its focus on commercializing Spectrum Slicing™ via silicon/IP licensing and reference designs. Key priorities in the near term include developing baseband and AI subsystems, solidifying relationships with service providers/OEMs, and utilizing non-dilutive programs to finance development.

Commercialization Challenges and Potential

While Edgewater’s technology promises significant performance improvements, the company faces challenges in penetrating a market dominated by established players. The ability to demonstrate tangible benefits and secure partnerships with major service providers and equipment manufacturers will be crucial for long-term success. The management acknowledges the going-concern risk factors and plans to explore financing and strategic options to support operations and growth. This underscores the need for strategic partnerships and successful market traction to ensure the company’s ongoing viability.

About Edgewater Wireless

We make Wi-Fi. Better.

Edgewater Wireless aims to deliver superior Wi-Fi QoS by mitigating congestion, managing spectrum allocation in real-time, and autonomously reconfiguring channel and link density, thereby optimizing connectivity in dense environments. The company’s patented, AI-powered Spectrum Slicing platform, delivered through the PrismIQ™ product family, supports multiple concurrent channels in a single band, increasing performance and reducing latency. With a portfolio of 26 patents and a fabless model, Edgewater focuses on transforming the economics of Wi-Fi for service providers, OEMs, and enterprises – enhancing scalable, standards-aligned connectivity.

Note on Forward-Looking Statements:

This report contains forward-looking statements subject to risks and uncertainties. Actual results may differ materially from those anticipated due to factors including market conditions, competition, and regulatory changes.