STOCKHOLM, Nov. 30,
2023 /PRNewswire/ -- Eco Wave Power Global AB (publ)
("Eco Wave Power" or the "Company") (Nasdaq: WAVE), a leading,
publicly traded onshore wave energy technology company that has
developed a patented, smart and cost-efficient technology for
turning ocean and sea waves into green electricity, is pleased to
report its financial results as of and for the three and nine
months ended September 30, 2023 and
provide a corporate update.
Management Commentary
During the third quarter of 2023, we achieved several key
milestones:
· In Israel, we successfully connected the EWP EDF
One Project in the Port of Jaffa to the national electrical grid.
We have also performed an initial grid connection test, which
effectively supplied electricity extracted from the power of the
waves to the Israeli national electric grid for the very first
time. Currently, our focus is on upgrading the power plants'
automation system to enable optimal electricity production and
supply to the grid. Additionally, we were awarded a GREENinMED
grant from the European Union as part of the ENI CBC Mediterranean
Sea Basin Programme. This grant is intended to enhance Eco Wave
Power's energy station by integrating educational features. This
funding will support the creation and installation of unique
educational experiences, transforming the EDF-EWP One wave energy
power station into a distinctive tourist attraction and showcasing
Israeli innovation.
· Moreover, on September 22nd, 2023, Eco Wave Power
was notified that a consortium of which we are a part won a UK
grant in the total amount of GBP
1,499,644 (approximately $1.83
million), out of which Eco Wave Power share will be
GBP 456,500 (approximately
$558 thousand). The grant amount Eco
Wave Power will be eligible for is GBP
319,550 (approximately $390,905).
· At the Port of Los Angeles, we are proceeding with the
licensing for the installation of our first U.S.-based project.
Recently, a local engineering firm examined the integrity of the
jetty and approved our construction design and assembly plans for
the floaters to be installed on the jetty. With this approval, we
submitted our comprehensive project plan to the port authorities
and made a request for the final necessary licenses from the Port
of Los Angeles and the Army Corps
of Engineers. In addition, in the beginning of October 2023, California Governor Gavin Newsom signed California Senate Bill 605 ("SB 605") into law
– a historic moment for wave energy in America. The legislation
directs the California Energy Commission to evaluate the
feasibility of wave and tidal energy in California, including the costs and benefits
of implementing the technology along the state's coastline. This
legislative initiative aligns with California's goal of achieving a carbon-free
energy grid by 2045. SB 605 recognizes the potential of wave and
tidal energy to provide economic and environmental benefits and is
expected to assist in our project's progress and advance other
potential projects in the U.S.
· In Portugal, we received the last approval
necessary for the commencement of the works of our first megawatt
(MW) in the city of Porto (TURH
license). The next steps include finalizing detailed construction
plans for the first 1 MW power plan to be followed by 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 will position Eco Wave Power as a leading wave
energy developer and serve as a significant milestone towards the
commercialization of wave energy globally.
· With respect to our new
collaborations, as previously announced in Q2 report, we would like
to update that our collaboration with Lian Tat Company (LTC) in
Taiwan is progressing as planned.
In October, the president of Taiwan visited LTC's exhibition of Eco Wave
Power's technology in the Taipei Nangang International Exhibition
Center and announced that the Taiwanese government will actively
promote the development of forward-looking renewable energy, such
as wave power. Eco Wave Power and LTC are currently working
towards EWP's official visit to Taiwan and towards finding a first location
for their planned joint wave energy pilot.
· With the potential project in the port
of Heraklion, Greece, Eco Wave
Power has finalized the feasibility studies for the implementation
of our technology in the port, in collaboration with Rogan
Associates. The parties are currently working towards applying for
a grant from the European Union to fund the execution of a 2MW wave
energy project. In parallel, we have finalized feasibility studies
for the implementation of Eco Wave Power's technology on a
breakwater in Morocco and on
Chevron Corp's offshore gas drilling platform in Israel. We have also commenced a new
feasibility study, funded by a large-scale U.S. energy company, for
wave energy potential in the U.S. and around strategic locations
around the globe.
· At the same time, the Company has
shown a significant decrease in its Net Financial Loss for the 9
months of 2023, where Net loss was $1,052,000, compared to a net loss of
$2,011,000, in the same period last
year. , while announcing new orders, which will be recognized as
revenues in the fourth quarter of 2023.
"Although in these challenging times Eco Wave Power has
prioritized the well-being of our employees in Israel, we have also stayed extremely focused
on the continuity of our business growth and goals. We are proud to
share that during the third quarter of 2023, we have made
significant progress with all our existing projects while adding
new projects and collaborations to our pipeline,
In the third quarter of 2023, Eco Wave Power officially
commenced the test-run operation of our power station in the Port
of Jaffa, Israel and is finalizing
a civil engineering design that is getting us closer to the
deployment of our first project in the Port of Los Angeles. In addition, by securing
the final requisite license for our first MW scale project in
Portugal, we are striding with
confidence towards our first commercial scale project in
Porto, Portugal.
In parallel, we have also finalized feasibility studies for an
installation of EWP's innovative technology in a port in
Morocco, on a gas drilling
platform in Israel, and a
feasibility study for a first of its kind 2MW project in the Port
of Heraklion in Greece. We have
also commenced a new feasibility study, ordered by a large scale US
energy company, to examine wave energy potential in the U.S. and
around the globe.
Now, more than ever, we remain strong, resilient, and deeply
committed to advancing our wave energy projects.
First Nine Months 2023 Financial Overview
· For the nine months ended September 30, 2023, revenues were $27,000 compared to $26,000 in the same period last year.
· Operating expenses were $1.9 million, down by 33% from the same period
last year.
· Research and development ("R&D") expenses were
$383,000 compared to $755,000 in the same period last
year. R&D costs decreased mainly due to a one off
non-recurring loss of $278,000
pertaining to the disposal of the floater mechanisms of the
Gibraltar wave energy array in
2022 and due to the relocation of the Gibraltar conversion unit to the Port of Los
Angeles. Although our R&D expenses have significantly
decreased during the last nine months, we expect our R&D
expenses to materially increase due to the finalization of the
EWP-EDF One project, the planned implementation of our first U.S.
project in the Port of Los
Angeles, and the implementation of our first commercial
scale project in Portugal.
· Sales and marketing expenses were $262,000 compared to $435,000 in the same period last year. Although
our expenses have significantly decreased during the first nine
months period, we expect that our sales and marketing expenses will
materially increase as we add more projects to our project
pipeline, which will result in the need for marketing in new areas
of operation.
· General and administrative expenses were $1,217,000 compared to $1,610,000 in the same period last year. Although
our general and administrative expenses have significantly
decreased during the first nine months period, we expect that our
general and administrative expenses will materially increase as we
grow our operations, specifically in terms of employee headcount,
professional support and legal costs due to the finalization of the
EWP-EDF One project, the planned implementation of our first U.S.
project in the Port of Los
Angeles, and the implementation of our first commercial
scale project in Portugal.
· Other income of $14,000 was
generated mainly from management fees in a joint venture.
· Share of net loss of the EWP EDF One Project accounted
for using the equity method for the nine months ended September 30, 2023 was $14,000.
· Operating loss was $1.9 million compared to $2.8 million in the same period last year.
· Net financial income was $802,000, compared to $783,000 in the same period last year.
· Net loss was $1,052,000, or $0.02 per basic and diluted share, compared to a
net loss of $2,011,000, or
$0.05 per basic and diluted share in
the same period last year.
· The Company ended the period with
$3.7 million in cash and cash
equivalents and $5.1 million in short
term bank deposits, compared to $5.3
million and $5 million,
respectively, as of December 31,
2022.
Conference Call and Webcast Information
The Chief Executive Officer of Eco Wave Power, Inna Braverman will host a conference call to
discuss the financial results and outlook on Tuesday, December 5, 2023, at 5 p.m. Eastern time.
• 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:
802479
• The event will be webcast live, available at: at:
https://www.webcaster4.com/Webcast/Page/2922/49564
A replay will be available by telephone approximately four hours
after the call's completion until Tuesday,
December 19, 2023. You may access the replay by dialing
877-481-4010 from the U.S. or 919-882-2331 for international
callers, using the Replay ID 49564. The archived webcast will also
be available on the investor relations section of the Company's
website.
About Eco Wave Power Global AB (publ)
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 Israel, with co-investment from
the Israeli Energy Ministry, which recognized the Eco Wave Power
technology as "Pioneering Technology." The EWP-EDF One station
project marks the first grid-connected wave energy system in
Israeli history.
Eco Wave Power will soon commence the installation of its newest
pilot in AltaSea's premises in the Port of Los Angeles and its first MW scale wave energy
power station in Portugal,
Europe.
The Company also holds concession agreements for commercial
installations in Europe and has a
total projects pipeline of 404.7 MW.
Eco Wave Power received funding from the European Union Regional
Development Fund, Innovate UK and the European Commission's Horizon
2020 framework program. The Company has also received the "Global
Climate Action Award" from the United Nations.
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 Braverman, CEO
Inna@ecowavepower.com
+97235094017
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995 and other Federal
securities laws. For example, the Company is using forward-looking
statements in this press release when it discusses the prospective
use of the UK grant, that SB 605 is expected to assist the progress
of its projects and advance other potential projects in the U.S,
the next steps in the Portugal
project and the expected timing thereof, the potential project in
Morocco, that the LTC project is
expected to create several economic benefits, the impending
application for a grant to facilitate the project in Heraklion,
Greece, the expected recognition
of new orders as revenues in the fourth quarter of 2023, and the
Company's expectation that its research and development, sales and
marketing and general and administrative expenses to materially
increase, and the Company's planned conference call to discuss
these financial results. Forward-looking statements can be
identified by words such as: "anticipate," "intend," "plan,"
"goal," "seek," "believe," "project," "estimate," "expect,"
"strategy," "future," "likely," "may," "should," "will", or
variations of such words, and similar references to future periods.
These forward-looking statements and their implications are neither
historical facts nor assurances of future performance and are based
on the current expectations of the management of Eco Wave Power and
are subject to a number of factors, uncertainties and changes in
circumstances that are difficult to predict and may be outside of
Eco Wave Power's control that could cause actual results to differ
materially from those described in the forward-looking statements.
Therefore, you should not rely on any of these forward-looking
statements. Except as otherwise required by law, Eco Wave Power
undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events. More detailed information about the risks and uncertainties
affecting Eco Wave Power is contained under the heading "Risk
Factors" in Eco Wave Power's Annual Report on Form 20-F for the
fiscal year ended December 31, 2022
filed with the SEC on April 27, 2023,
which is available on the on the SEC's website, www.sec.gov, and
other documents filed or furnished to the SEC. Any forward-looking
statement made in this press release speaks only as of the date
hereof. References and links to websites have been provided as a
convenience and the information contained on such websites is not
incorporated by reference into this press release.
Eco Wave Power Global AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
|
|
September 30
2023
|
December 31 2022
|
|
|
In USD
thousands
|
Assets
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
|
3,674
|
5 295
|
Short Term Bank
Deposits
|
|
5,108
|
5 000
|
Restricted short-term
bank deposits
|
|
59
|
63
|
Other receivables and
prepaid expenses
|
|
211
|
161
|
TOTAL CURRENT
ASSETS
|
|
9,052
|
10 519
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
Property and
equipment, net
|
|
642
|
722
|
Right-of-use assets,
net
|
|
105
|
166
|
Investments in a joint
venture accounted for using the equity method
|
|
496
|
510
|
TOTAL NON-CURRENT
ASSETS
|
|
1,243
|
1398
|
TOTAL
ASSETS
|
|
10,295
|
11 917
|
|
|
|
|
Liabilities and
equity
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term loans from related party
|
|
966
|
941
|
Current maturities of
other long-term loan
|
|
65
|
32
|
Accounts payable and
accruals:
|
|
|
|
Trade
|
|
87
|
75
|
Other
|
|
879
|
733
|
Current maturities of
lease liabilities
|
|
90
|
78
|
TOTAL CURRENT
LIABILITIES
|
|
2,087
|
1 859
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
Other long-term
loan
Lease liabilities, net
of current maturities
|
|
67
15
|
96
88
|
TOTAL NON-CURRENT
LIABILITIES
|
|
82
|
184
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
2,169
|
2 043
|
|
|
|
|
EQUITY:
|
|
|
|
Common
shares
|
|
98
|
98
|
Share
premium
|
|
23,121
|
23 121
|
Foreign currency
translation reserve
|
|
(2,754)
|
(2 061)
|
Accumulated
deficit
|
|
(12,338)
|
(11 284)
|
TOTAL
EQUITY
|
|
8,126
|
9 874
|
TOTAL LIABILITIES
AND EQUITY
|
|
10,295
|
11 917
|
|
|
|
|
Eco Wave Power Global AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited)
|
|
Three months
ended
|
Nine months
ended
|
|
|
September
30
|
September
30
|
|
|
2023
|
2022
|
2023
|
2022
|
|
|
In USD
thousands
|
In USD
thousands
|
REVENUES
|
|
27
|
-
|
27
|
26
|
COST OF
REVENUES
|
|
19
|
-
|
19
|
(22)
|
GROSS
PROFIT
|
|
8
|
-
|
8
|
4
|
OPERATING
EXPENSES
|
|
|
|
|
|
Research and
development expenses
|
|
(60)
|
(120)
|
(383)
|
(755)
|
Sales and marketing
expenses
|
|
(69)
|
(135)
|
(262)
|
(435)
|
General and
administrative expenses
|
|
(363)
|
(424)
|
(1,217)
|
(1,610)
|
Other
income
|
|
5
|
3
|
14
|
18
|
Share of net loss of a
joint venture
|
|
|
|
|
|
accounted for using
the equity method
|
|
(4)
|
(6)
|
(14)
|
(16)
|
TOTAL OPERATING
EXPENSES
|
|
(491)
|
(682)
|
(1,862)
|
(2,798)
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
(483)
|
(682)
|
(1,854)
|
(2,794)
|
|
|
|
|
|
|
Financial
expenses
|
|
(15)
|
(11)
|
(41)
|
(42)
|
Financial
income
|
|
305
|
113
|
843
|
825
|
FINANCIAL INCOME
(EXPENSES) - NET
|
|
290
|
102
|
802
|
783
|
|
|
|
|
|
|
NET
LOSS
|
|
(193)
|
(580)
|
(1,052)
|
(2,011)
|
|
|
|
|
|
|
ATTRIBUTABLE
TO:
|
|
|
|
|
|
The parent company
shareholders
|
|
(193)
|
(580)
|
(1,052)
|
(2,011)
|
|
|
(193)
|
(580)
|
(1,052)
|
(2,011)
|
|
|
|
|
|
|
|
In
USD
|
LOSS PER COMMON
SHARE – BASIC AND DILUTED
|
(0.004)
|
(0.01)
|
(0.02)
|
(0.05)
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF COMMON SHARES USED IN CALCULATION OF LOSS
|
|
|
|
|
PER COMMON
SHARE
|
44,394,844
|
44,394,844
|
44,394,844
|
44,394,844
|
|
|
|
|
|
|
|
|
|
The following files are available for download:
https://mb.cision.com/Main/18497/3886065/2467588.pdf
|
Release
|
View original
content:https://www.prnewswire.com/news-releases/eco-wave-power-q3-sees-a-significant-net-loss-decrease-with-new-orders-increasing-q4-revenues-progress-in-israel-us-and-portugals-commercial-installation-302002685.html
SOURCE EWPG Holding AB (publ)