Management Commentary
During the third quarter of 2023, we achieved several key milestones:
- In
Israel , we successfully connected theEWP EDF One Project in thePort 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 theEuropean 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 22 nd, 2023, Eco Wave Power was notified that a consortium of which we are a part won aUK grant in the total amount ofGBP 1,499,644 (approximately$1.83 million ), out of which Eco Wave Power share will beGBP 456,500 (approximately$558 thousand ). The grant amount Eco Wave Power will be eligible for isGBP 319,550 (approximately$390,905 ).
-
At the
Port of Los Angeles , we are proceeding with the licensing for the installation of our firstU.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 thePort of Los Angeles and theArmy Corps of Engineers . In addition, in the beginning ofOctober 2023 ,California GovernorGavin Newsom signedCalifornia Senate Bill 605 ("SB 605") into law - a historic moment for wave energy in America. The legislation directs theCalifornia Energy Commission to evaluate the feasibility of wave and tidal energy inCalifornia , including the costs and benefits of implementing the technology along the state's coastline. This legislative initiative aligns withCalifornia '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 theU.S.
-
In
Portugal , we received the last approval necessary for the commencement of the works of our first megawatt (MW) in the city ofPorto (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) inTaiwan is progressing as planned. In October, the president ofTaiwan 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 toTaiwan 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 withRogan Associates . The parties are currently working towards applying for a grant from theEuropean 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 inMorocco and onChevron Corp's offshore gas drilling platform inIsrael . We have also commenced a new feasibility study, funded by a large-scaleU.S. energy company, for wave energy potential in theU.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
In the third quarter of 2023, Eco Wave Power officially commenced the test-run operation of our power station in the
In parallel, we have also finalized feasibility studies for an installation of EWP's innovative technology in a port in
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 theGibraltar wave energy array in 2022 and due to the relocation of theGibraltar conversion unit to thePort 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 firstU.S. project in thePort of Los Angeles , and the implementation of our first commercial scale project inPortugal . -
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 firstU.S. project in thePort of Los Angeles , and the implementation of our first commercial scale project inPortugal . -
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 endedSeptember 30, 2023 was$14,000 .
-
Research and development ("R&D") expenses were
-
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 ofDecember 31, 2022 .
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: 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
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
+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)
|
| ||
|
| 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 | 1,398 |
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 |
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited)
|
| Three months ended | Nine months ended | |||||
|
| |||||||
|
| 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 | ||||
https://news.cision.com/ewpg-holding-ab--publ-/r/eco-wave-power--q3-sees-a-significant-net-loss-decrease--with-new-orders-increasing-q4-revenues--pro,c3886065
https://mb.cision.com/Main/18497/3886065/2467588.pdf
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