Wavefront Announces Second Quarter 2015 Financial Results

EDMONTON, ALBERTA--(Marketwired - April 28, 2015) - Wavefront Technology Solutions Inc. (Wavefront or the Company) (TSX VENTURE:WEE)(OTCQX:WFTSF) a technology provider offering fluid delivery processes to oil and gas producers that are widely effective methods for maximizing reserves in mature field revitalization (Improved or Enhanced Oil Recovery or "IOR/EOR") as well as increasing single well productivity through more effective well workovers and stimulations announces its financial results for the second quarter ending February 28, 2015.

The financial highlights for the reporting period are as follows:

• Despite the impact of crude oil prices on oil field services, which also impacted Wavefront's six month revenues ended February 28, 2015, the Company was able to increase Powerwave workover and stimulation revenues by $180,316 over the comparative period in 2014. Due to marketing efforts, the Company experienced the greatest increases in Powerwave workover and stimulation revenues in the United States and internationally, which increased $356,064 over the comparative period.
  
  
• Although Wavefront saw total revenues decline for the second quarter by $187,493 over the comparative period in 2014, the Company's focus has resulted in increases in Powerwave stimulation revenues in the United States and internationally by $38,683, for the three months ended February 28, 2015 over the comparative period of 2014.
  
  
• Additionally international IOR/EOR revenues increased by $132,327 for the three months ended February 28, 2015 over the comparative period of 2014.
  
  
• Wavefront over the past two quarters has targeted the reduction of operating expenditures dollar for dollar to any reductions in revenue. The six month decline in total revenues was $340,543; however, the Company was able to reduce expenses, excluding costs of sale and the non-cash impairment charge (noted below), by $504,334 and in particular general and administrative expenses by $409,565.
  
  
• The quarterly decline in revenue was $187,493; however, the Company was able to reduce expenses, excluding costs of sale and the non-cash impairment charge (noted below), by $354,554. In particular the Company was able to reduce general and administrative expenses by $218,044. Included in the expense reduction, Wavefront has reduced its staff compliment by 28% since fiscal 2014, which may result in a reduction of annualized wages by $693,000.
  
  
• As a result of the proactive positioning of the Company concentrating on the Powerwave stimulations and expense rationalization, the net uses of cash and cash equivalents was $531,708 and $45,554 for the six and three months ended February 28, 2015, respectively. This represents a decrease in the use of cash and cash equivalents of $1,076,013 and $576,122 for the six and three months ended February 28, 2015 from the comparative periods, respectively.
  
  
• As at November 30, 2014 and February 28, 2015, the Company determined that impairment indicators existed related to the Company's market capitalization being below the carrying value of its net assets, the drop in and volatility in oil prices, and the changes to operating and capital budgets of exploration and production ("E&P") companies. Additional impairment indicators were present at February 28, 2015 in that the Company experienced weaker than expected economic performance and implemented operation expense reduction measures and managed capital programs.
  
  The Company completed the impairment tests and recorded a non-cash impairment charge of $2,968,885, which is allocated to the assets in the CGU consisting of $98,313 non-cash impairment charge for property, plant and equipment and $2,870,572 non-cash impairment charge for intangible assets. This non-cash charge does not have an impact on the Company's cash flows from operating activities and will not have an impact on the CGUs' future operations.
  
  
• The basic and diluted net loss for the second quarter ended February 28, 2015 increased by $2,952,875 to $4,089,528 ($0.049 per share), compared to $1,136,653 ($0.014 per share) for the comparative quarter ended February 28, 2014. The increase in net losses was principally impacted by the recording of the non-cash impairment expense of $2,968,889 that represents 72.3% of the recorded net losses.
  
  Prior to the non-cash impairment expense of $2,968,885, the basic and diluted net loss for the second quarter ended February 28, 2015 decreased by $16,010 to $1,120,643 ($0.014 per share).
  
  
• The EBITDA loss¹ and EBITDA loss per share for the quarter ended February 28, 2015 was $3,853,829 ($0.046 per share), compared to $706,430 ($0.009 per share) in the comparative quarter in 2014. The EBITDA loss¹ and EBITDA loss per share, prior to the non-cash impairment expense of $2,968,885, for the quarter ended February 28, 2015 was $884,944 ($0.011 per share).

The above financial highlights should be read in conjunction with the audited consolidated financial statements and management discussion and analysis of results for Wavefront for the second quarter ended February 28, 2015, which were filed on SEDAR on April 28, 2015.

ON BEHALF OF THE BOARD OF DIRECTORS

WAVEFRONT TECHNOLOGY SOLUTIONS INC.

D. Brad Paterson, CFO & Director

About Wavefront:

Wavefront is a technology based world leader in fluid injection technology for improved/enhanced oil recovery and groundwater restoration. Wavefront publicly trades on the TSX Venture Exchange under the symbol WEE and on the OTCQX under the symbol WFTSF. The Company's website is www.onthewavefront.com.

Cautionary Disclaimer - Forward-Looking Statement

Certain statements contained herein regarding Wavefront and its operations constitute "forward-looking statements" within the meaning of Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations or future performance, are "forward-looking statements". In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "believe", "continue" or the negative of these terms or other comparable terminology. We caution that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such factors include fluctuations in the acceptance rates of Wavefront's Powerwave and Primawave Processes, demand for products and services, fluctuations in the market for oil and gas related products and services, the ability of Wavefront to attract and maintain key personnel, technology changes, global political and economic conditions, and other factors that were described in further detail in Wavefront's continuous disclosure filings, available on SEDAR at www.sedar.com. Wavefront expressly disclaims any obligation to up-date any "forward-looking statements", other than as required by law.

©2015 Wavefront Technology Solutions Inc. All rights reserved. From Bit To Last Drop™, Powerwave™ and Primawave™ are registered trademarks of Wavefront Technology Solutions Inc.

NEITHER 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.

(1)

The Company uses IFRS, additional and non-IFRS measures to make strategic decisions, set targets and are used in operating activities, as well the Company believes that these additional and non-IFRS measures provide useful supplemental information to investors. EBITDA is calculated by adding back all interest, tax, depreciation and amortization to net loss, and is further discussed in Non-IFRS Measures.