Q1 2024 Eco Wave Power Global AB (publ) Earnings Call

Greetings welcome to eco wife powers first quarter 'twenty 'twenty four earnings conference call.

Operator: At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Aaron Yehuda, CFO of EcoWave Power. You may begin.

Speaker Change: At this time all participants are in a listen only mode. If anyone should require operator assistance. During the conference. Please press star zero on your phone keypad. Please note. This conference is being recorded.

Speaker Change: I will now turn the conference over to your host Aaron Yehuda CFO of Eco wave power you may begin.

Thank you all for joining us for taking the time to joining US. This morning for this conference call.

Aaron Yehuda: Thank you all for joining us this morning for this conference call. In the first quarter of 2024, EcoWave Power continued its cost reduction strategy while accelerating its progress with existing and planned projects. In Q1 2024, we achieved a 3.5% cost reduction compared to the same period in 2023. This cost reduction joins the cost reduction presented for the whole year of 2023, which amounted to a total of 26%. Now, turning to our Detailed Course Track.

Speaker Change: In the first quarter 'twenty to 'twenty four equally followed continuous.

Speaker Change: RTG, while accelerating its sluggish with existing and planned projects.

Speaker Change: Q1, 'twenty 'twenty four we achieved a three 5% cost reduction compared to the same period.

Speaker Change: 23.

Speaker Change: This cost reduction joined because production presented for the whole years 'twenty to 'twenty, three which amounted to a total of 26%.

Speaker Change: Now turning to our detailed cost structure or operating cost decreased six 683000 in Q1 2023, the 659000 in Q1 2024.

Aaron Yehuda: Our operating costs decreased from $683,000 in Q1 2023 to $659,000 in Q1 2024. We can see a specific decrease in R&D costs, which decreased from 210,000 in Q1 2023 to 177,000 in Q1 2024. The R&D expenses are expected to increase in the next quarter due to adding a VP of R&D to lead our engineering team, which is meant to drive the company's ability to handle new orders from clients and existing projects. Sales and marketing costs are expected to decrease from $76,000 in Q1 2023 to $65,000 in Q1 2025. Also, during Q1 of 2024, we recorded net financial income of $132,000 versus $160,000 in Q1 of 2023. The company ended the period with $7.96 million in cash and cash equivalents and in short-term bank deposits.

Speaker Change: We can see specific decrease in R&D costs, which decreased from 210000 in Q1 2020.

Speaker Change: Three to 177000 in Q1 since it's plentiful.

Speaker Change: R&D expenses are expected to increase in the next quarter due to adding a VP R&D to lead our engineering team, which is meant to drive the company's ability to handle new orders from science and existing projects.

Speaker Change: Sales and marketing costs reduced from 76000 in Q1 2023, the 65000 in Q1 2024.

Speaker Change: Also during Q1 of 2020 full really call. It a net financial income was 132000.

Speaker Change: This is 160000 in Q1 2023.

Speaker Change: The company ended the period with seven points to 96 million.

Speaker Change: Cash and cash equivalents and short term bank deposits.

Aaron Yehuda: We look forward to executing its plans for projects in the U.S. and in Portugal, which Ina Braverman, our CEO, will provide you with further information about. I will now turn the conference over to Ina Braverman, CEO of Echo Wave Power. Ina, you may start. Thank you, Aaron.

Look forward to execute its plans for projects in the U S and in Portugal.

Which in above him on our CEO will provide you with further inflows.

Speaker Change: I will now turn the conference over to Bob Lamond Schiele of cycled with Boeing.

Ina Braverman: So, over the past month, an array of ETFs dedicated to key aspects of the energy transition from renewable energy generation to smart grid management have all posted positive returns. We can see that EcoWave Power's stock followed a similar pattern with the rising of wavestock. During this period, wavestock outperformed the Global Alternative Energy Index by showing growth of 136.4 percent in the last three months. We believe that what enabled the growth and rising interest in wave stocks is the fact that the company delivered on its promises and reached significant progress during each quarter while cutting down its net loss and operational expenses and boosting revenues.

Alan: Thank you Alan that so over the past month and the rail E. T. S dedicated to key aspect of energy transition from renewable energy generation to smart grid management of all posted positive hit Darden, we can see that the echo with polished followed a similar pattern with the rising wages, though during this period.

Alan: Are you still outperformed the global alternative energy index by showing growth of 136, 4% in the last three months.

Alan: We believe that with a neighbor the girlfriend rising interest in the waste, though is the fact that the company delivered on its promises and reach significant progress during each Florida quota, while cutting down it's not it's not lost in operational expenses and boosting revenues.

Ina Braverman: As Awan mentioned, in Q1, 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 Q1 2023, ending the period with $7.96 million in cash and short-term bank deposits.

Alan: As Alan mentioned in Q1, we were able to keep the low level of expenses and thus demonstrate our resilience by decreasing our operating expenses by three 5% compared to Q1 2023 and in the period.

Alan: Seven $196 million in cash and short everybody deposit.

Ina Braverman: At the same time, we were able to achieve progress in all the company's projects with key improvements in the operational results of the EWP-DF1 project in the port of Jaffa, Israel, submission of final licensing documents for the installation of our first project in the U.S. at the port of Los Angeles, and moving forward with our megawatt-scale project in the city of Porto, in Portugal. And a little more details, in Israel, the EWPDF1 project has been delivering clean electricity from the waves to the Israeli National Electrical Grid since its connection to the grid at the end of 2023. An opening ceremony for the project will be held as soon as the company deems the geopolitical situation in Israel has improved.

Alan: In the same time, we were able to achieve progress in all the companies projects with key improvements in the operational results of the EW P. D. F. One project in the fourth of July Israel submission I'll find the licensing documents for the installation of our first project in the U S. In the ports of Los Angeles, and moving forward with our megawatt scale project.

Alan: The city of Portland, Portugal.

Alan: And a little more detail in Israel. The AWP D. F. One project has been delivering clean electricity from the waves to the Israeli national electrical grid since its connection to the grid in the end of 'twenty to 'twenty three and opening ceremony for the project will be held as soon as the company deems the geopolitical situation in Israel has been pulled.

Ina Braverman: EcoWave Power and EDF Renewables IL have started an analysis of the first set of results from January 2024 to April 2024. The results from the projects are encouraging, as we can see a month-to-month improvement, both in terms of energy generation and in terms of a significant decrease in downtime for the power station. Downtime decreased from 35% in January 2024 to 26% in February to 14.4% in March and only 3.6% in April 2024.

Alan: Equal with power and EDF renewables I N have started an analysis of the first set of results from January 2024, So April 'twenty 'twenty four.

Alan: The results from the projects are encouraging as we can see amongst the most improvement both in terms of energy generation and in terms of a significant decrease in downtime for the power station.

Alan: Downtime has decreased from 35% in January 2024% to 26% in February to 14, 4% in March and only three 6% in April 2024. In addition, the company was able to get closer to its energy generation targets by 8%.

Ina Braverman: In addition, the company was able to get closer to its energy generation targets by 8%. As to the port of Los Angeles, in January 2024, we announced that we signed a strategic investment agreement with Shell MRE for the implementation of our first US-based. Wave Energy Project while at the same time also moving forward with the licensing process. We submitted our comprehensive project engineering plans to the port authorities and have requested the final licenses from the Port of Los Angeles and the Army Corps of Engineers. And the last opinion that we submitted is an opinion saying that the site where we're installing is not a historic site, which was requested by the Army Corps, and now we're waiting for their update.

Speaker Change: And so the ports of Los Angeles in January 'twenty, 'twenty, four we announced that we signed a strategic investment agreement with shell and marine for the implementation of our first U S based.

Speaker Change: Wave energy project.

While at the same time also moving forward with licensing process, we submitted our comprehensive project engineering plans to the sports authorities and have requested the final licenses from the ports of Los Angeles, and the Army Corps of engineers.

Speaker Change: And the last the opinion that we submit that is it an opinion say that besides what we're installing is not the historic site, which was requested by the Army Corps and all we're waiting for the updates.

Speaker Change: Due to the rising of interest and opportunity that we see in the U S. Market. We also conducted a comprehensive feasibility study, which Alan Murray aimed at identifying the best locations for commercial onshore waiver legislation along the U S coastline and worldwide. The free month industry's ability study, which now has been completed so far.

Ina Braverman: Due to the rising interest and opportunity that we see in the U.S. market, we also conducted a comprehensive feasibility study with Shell MRE aimed at identifying the best locations for commercial onshore wave energy stations along the U.S. coastline and worldwide. The three-month in-depth feasibility study, which has now been completed, showed favorable conditions for clean energy generation in 77 sites in the U.S., compatible with the installation of EcoWave Power technology In Portugal, we received the final approval necessary for the commencement of the construction works of our first megawatt-scale project in Porto from APDL Port Authority.

Speaker Change: Verbal conditions for clean energy generation in 77 sites in the U S.

Speaker Change: And competitive but for the installation of equal with Power's technology.

Speaker Change: In Portugal, we received the final approval necessary for the commencement of the construction works of our first megawatt scale project in portal from a P. D airports authority.

Ina Braverman: As a result, we have issued a performance bond, a bank guarantee basically, meant to solidify our commitment to the construction of the first commercial wave energy power station within a two-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 wave. During Q1 2024, we finalized the construction plan of the energy conversion unit and held an official kick-off meeting with the port and the architect of the site.

Speaker Change: As a result with issue the performance bond and then guarantee basically meant to solidify our commitment for the construction of the first commerce commercial wave energy power station within three years period.

Speaker Change: We believe this would be the first wave energy project in the World to show significant energy production from the power of the waves.

Speaker Change: During Q1, 'twenty 'twenty four will finalize the construction plans of the LNG conversion units and held an official kick off meeting.

Speaker Change: With the board and the architect of the site.

Ina Braverman: The next steps include finalizing detailed construction plans for the whole one megawatt power plant, including the floaters, to be followed by an official visit by Echo Wave Power's engineering team and the commencement of actual construction, which is expected to take up to 24 months. The Portuguese project is expected to be EcoWave Power's first megawatt-scale project, which we believe will position EcoWave Power as a leading wave energy developer and serve as a significant milestone toward the commercialization of wave energy globally.

Speaker Change: Next steps include finalizing detailed construction plans for the older one megawatt power plants, including the floaters to be followed by official visit of equity with followers engineering team and commencing a actual construction.

Speaker Change: It is expected to take up to 24 months.

Speaker Change: The Portuguese project is expected to be equal with Power's first megawatt scale project, which we believe will position equal with power as the leader in wave energy developer and serve as a significant milestone towards commercialization of wave energy globally.

Ina Braverman: We have also reinforced our engineering team and are planning on establishing a U.S.-based sales and business development team to enable the company to enter deals for turn-key wave energy projects, which we believe will, in turn, significantly boost the company's revenues to be added to revenues that the company is already generating from feasibility studies and other related engineering services. The expansion of the engineering team in Israel and the new BDN sales team in the U.S. will require some time, but we believe that such an enhanced company structure will lead to positive financial results and accelerate the project delivery timeline.

Speaker Change: Also reinforced our engineering team and are planning on establishing a U S based sales and business development team to enable the company to enter deals for turnkey wave energy project, which we believe will in turn significantly boost the company's revenues to be edits revenues that the company is already generating strong feasibility studies.

Speaker Change: The related engineering services.

Speaker Change: The extension of the engineering team in Israel, and then you'll be D and sales team in the U S will require some time. However, we believe that such enhanced company structure will lead to positive financial results and accelerated project delivery timeline.

Ina Braverman: I would like to finish by thanking all our existing shareholders and the new ones that have joined us in the recent months, and reiterate our excitement about the new Deal with Shell MRE and the progress with all our projects, and update you that Eco Wave Power is still working towards receiving approval from SFSA for a buyback of up to 10% of our shares. Thank you very much.

Speaker Change: I would like to finish by thanking all of our existing shareholders and then you wanted to join us in the recent months.

Speaker Change: And reiterate our excitement about the new deals we could sell M. R E and the progress with all of our projects and update you that equal with flower is still working towards receiving an approval from S. FSA for the buyback.

Speaker Change: Up to 10% of all the shares thank you very much.

Speaker Change: Thank you very much. This does conclude today's conference and you may now disconnect your phone lines and thank you for your participation.

Operator: Thank you very much. This does conclude today's conference, and you may now disconnect your phone lines. Thank you for your participation.