Management Commentary
During the first quarter of 2024, Eco Wave Power continued to demonstrate resilience by decreasing its operating expenses by 3.5% compared to the first quarter of 2023, ending the quarter with
- In
Israel , theEWP-EDF One Project in thePort of Jaffa , has been delivering clean energy from the waves to the Israeli National electrical grid, since its connection to the grid in the end of 2023. An opening ceremony for the project will be held as soon as the Company deems the geopolitical situation inIsrael has improved. Eco Wave Power and EDF Renewables IL have started an analysis of the first set of results fromJanuary 2024 toApril 2024 . The results from the project are encouraging, as we can see a month-by-month improvement both in terms of the energy generation results and in terms of significant decrease in down-time for the power station. For example, downtime has decreased from 35% inJanuary 2024 , to 26% inFebruary 2024 , to 13.4% inMarch 2024 and to only 3.6% inApril 2024 . In addition, the Company was able to get closer to its energy generation target for the site by 8%.
- At the
Port of Los Angeles , inJanuary 2024 , we signed a strategic co-investment agreement with a majorEnergy Company (the full name of the company is disclosed in our annual report on Form 20-F forDecember 31, 2023 ), for the implementation of our firstU.S -based project while we are also moving forward with the licensing process. We have submitted our comprehensive project engineering plans to the port authorities and have formally requested the final required licenses from both thePort of Los Angeles and theU.S. Army Corps of Engineers . As a response, we have been requested to submit a third-party opinion about the fact that our project site in thePort of Los Angeles , is not a historic site. We have received such a formal opinion onApril 29, 2024 , and have submitted it to all relevant parties. As soon as we receive the relevant licenses, we expect a very short implementation time of around 6 months for our firstU.S. project. InMay 2024 , the founder and CEO of Eco Wave Power,Inna Braverman , also met with representatives from theU.S. Department of Energy and presented the progress and timeline for the implementation of the project.
Due to rising interest and opportunity that we see in the U.S. market, we conducted a comprehensive feasibility study with the same major energy company, aimed at identifying the best locations for commercial onshore wave energy stations along theU.S. coastline and worldwide. The three-month, in-depth feasibility study which now has been completed, has shown favorable conditions for clean energy production in multiple locations in theU.S. and globally. In the study, we pointed out at least 77 sites in theU.S. that may be compatible with the implementation of Eco Wave Power's technology.
- In
Portugal , we received the final approval necessary for the commencement of the construction works of our first commercial-size project inPorto (TURH license) fromAPDL Port Authority . As a result, we have issued a performance bond to APDL, meant to solidify our commitment for the construction of the first commercial wave energy project within a 2-year period. We believe this will be the first wave energy project in the world to show significant energy production from the power of the waves. During Q1, 2024, we have finalized the construction plans for the energy conversion units and held an official project kick-off call onApril 22, 2024 with the architect of the implementation site and APDL. The next steps include finalizing detailed construction plans for the full first 1 MW power plant (including the floaters) to be followed by an official site visit by Eco Wave Power's engineering team and commencing actual construction, which is expected to take up to 24 months. The Portuguese project is expected to be Eco Wave Power's first MW scale project, which we believe will position Eco Wave Power as a leading wave energy developer and serve as a significant milestone towards the commercialization of wave energy globally.
- During the year 2023, Eco Wave Power was able to increase its cash flow and substantially decrease its net loss by providing feasibility studies services and other engineering services to major energy companies and other clients around the globe. In 2024, to increase the Company's revenue and cash flow, the Company's management decided to start supplying turnkey wave energy to clients around the world, while progressing with its core projects in
Israel , thePort of Los Angeles , andPortugal .
- In
December 2023 , Eco Wave Power submitted an official request to theFinancial Supervisory Authority of Sweden ("SFSA"), to receive authorization for the Company's repurchase of American Depositary Shares representing up to 10 percent of the total number of shares in the Company, which is the maximum amount permitted by Swedish Law. In the meantime, the SFSA recognized that Nasdaq Capital Market is a regulated market for the purpose of such repurchase and has notified the Company that it is examining the prospect of approving such repurchase, based on the shareholder rights attached to the American Depository Shares. Once its examination is completed, the Company hopes that Eco Wave Power will be permitted to exercise such a repurchase and would intend to proceed with the repurchase action as soon as such approval is granted.
CEO Commentary:
According to an article published by
We believe that what enabled the growth and rising interest in the Company's share price is the fact that the Company constantly delivers on its promises, and reaches significant progress during each quarter, while cutting down its operational expenses and boosting revenues.
In the first quarter of 2024, we were able to keep the low level of expenses and thus demonstrate our resilience by decreasing our operating expenses by 3.5% compared to the first quarter of 2023, ending the year with
There was progress across all projects, including key improvements in the operational results of the EWP-EDF One project at the
We have also reinforced our engineering team and are planning on establishing a
The expansion of the engineering team in
According to an article published by Reuters titled "Clean energy ETFs start to outperform key oil and gas ETF" on
I would like to finish by thanking all our existing shareholders, and the new ones that joined us in recent months and reiterate our excitement about the new deal with the major energy company, and the progress with all our projects. Let's change the world, One Wave at a Time.
First Quarter 2024 Financial Overview
● There were no revenues as of and for the three months ended
● Operating expenses were
- Research and development expenses were
$177,000 compared to$210,000 in the same period last year, down by 15.7% on the same period last year. -
Sales and marketing expenses were
$65,000 compared to$76,000 in the same period last year, down by 14.5% on the same period last year. -
General and administrative expenses were
$408,000 compared to$397,000 in the same period last year, up by 2.8% on the same period last year. -
Other income of
$4,000 was generated mainly from management fees in a joint venture. -
Share of net loss of a joint venture accounted for using the equity method was
$13,000 .
● Operating loss was
● Net financial income was
● Net loss was
● The Company ended the period with
Conference Call and Webcast Information
The Chief Executive Officer of Eco Wave Power,
** The dial-in numbers for the conference call are 888-506-0062 (toll-free) or 973-528-0011 (international).
If requested, please provide participant access code: 193251
** The event will be webcast live, available at: https://www.webcaster4.com/Webcast/Page/2922/50651
A replay will be available by telephone approximately four hours after the call's completion until
About
Eco Wave Power is a leading onshore wave energy technology company that developed a patented, smart and cost-efficient technology for turning ocean and sea waves into green electricity. Eco Wave Power's mission is to assist in the fight against climate change by enabling commercial power production from the ocean and sea waves.
The Company completed construction of its grid connected project in
Eco Wave Power will soon commence the installation of its newest pilot in AltaSea's premises in the
The Company also holds concession agreements for commercial installations in
Eco Wave Power received funding from the
Eco Wave Power's American Depositary Shares (WAVE) are traded on the Nasdaq Capital Market.
Read more about Eco Wave Power at www.ecowavepower.com
Information on, or accessible through, the websites mentioned above does not form part of this press release.
For more information, please contact:
Inna@ecowavepower.com
Aharon@ecowavepower.com
+97235094017
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)
|
| 2024 | 2023 |
|
| In USD thousands |
Assets |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
| 7,739 | 4,281 |
Short term bank deposits |
| - | 4,102 |
Restricted short-term bank deposits |
| 221 | 63 |
Trade receivables |
| 20 | 202 |
Other receivables and prepaid expenses |
| 117 | 108 |
TOTAL CURRENT ASSETS |
| 8,097 | 8,756 |
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
Property and equipment, net |
| 621 | 636 |
Right-of-use assets, net |
| 66 | 90 |
Investments in a joint venture accounted for using the equity method |
| 513 | 527 |
TOTAL NON-CURRENT ASSETS |
| 1,200 | 1,253 |
TOTAL ASSETS |
| 9,297 | 10,009 |
|
|
|
|
Liabilities and equity |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current maturities of long-term loans from related party |
| 983 | 974 |
Current maturities of other long-term loan |
| 64 | 62 |
Accounts payable and accruals: |
|
|
|
Trade |
| 54 | 50 |
Other |
| 1,017 | 957 |
Current maturities of lease liabilities |
| 63 | 87 |
TOTAL CURRENT LIABILITIES |
| 2,181 | 2,130 |
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
Other long-term loan
|
| 74
| 78
|
TOTAL NON-CURRENT LIABILITIES |
| 74 | 78 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
| 2,255 | 2,208 |
|
|
|
|
EQUITY: |
|
|
|
Common shares |
| 98 | 98 |
Share premium |
| 23,121 | 23,121 |
Foreign currency translation reserve |
| (2,499) | (2,275) |
Accumulated deficit |
| (13,514) | (12,994) |
Capital and reserves attributable to parent company shareholders |
| 7,206 | 7,950 |
Non-Controlling interest |
| (164) | (149) |
TOTAL EQUITY |
| 7,042 | 7,801 |
TOTAL LIABILITIES AND EQUITY |
| 9,297 | 10,009 |
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited)
|
| Three months ended | |||||
|
| ||||||
|
| 2024 | 2023 | ||||
|
| In USD thousands | |||||
OPERATING EXPENSES |
|
|
| ||||
Research and development expenses |
| (177) | (210) | ||||
Sales and marketing expenses |
| (65) | (76) | ||||
General and administrative expenses |
| (408) | (397) | ||||
Other income |
| 4 | 5 | ||||
Share of net loss of a joint venture |
|
|
| ||||
accounted for using the equity method |
| (13) | (5) | ||||
TOTAL OPERATING EXPENSES |
| (659) | (683) | ||||
|
|
|
| ||||
OPERATING LOSS |
| (659) | (683) | ||||
|
|
|
| ||||
Financial expenses |
| (15) | (12) | ||||
Financial income |
| 147 | 172 | ||||
FINANCIAL INCOME (EXPENSES) - NET |
| 132 | 160 | ||||
|
|
|
| ||||
NET LOSS |
| (527) | (523) | ||||
|
|
|
| ||||
ATTRIBUTABLE TO: |
|
|
| ||||
The parent company shareholders |
| (520) | (523) | ||||
Non-controlling interests |
| (7) | - | ||||
|
| (527) | (523) | ||||
|
|
|
|
| |||
| In USD | ||||||
LOSS PER COMMON SHARE - BASIC AND DILUTED |
(0.01) |
(0.01) | |||||
|
|
| |||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES USED IN CALCULATION OF LOSS |
|
| |||||
PER COMMON SHARE | 44,394,844 | 44,394,844 | |||||
[1] https://www.fidelityinternational.com/editorial/article/three-reasons-clean-energy-stocks-could-come-back-in-2024-e3b803-en5/
[2] https://www.reuters.com/business/energy/clean-energy-etfs-start-outperform-key-oil-gas-etf-maguire-2024-05-07/
https://news.cision.com/ewpg-holding-ab--publ-/r/eco-wave-power-announces-q1-financial-results--progress-with-projects-in-israel--united-states-and-p,c3982679
https://mb.cision.com/Main/18497/3982679/2802439.pdf
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