Q3 2024 Eco Wave Power Global AB (publ) Earnings Call

Speaker Change: Good morning and welcome to the EcoWave Power third quarter 2024 earnings call. At this time all participants are in a listen-only mode and if anyone should require operator assistance during this conference please press star zero on your telephone keypad.

Please note, this conference is being recorded.

Speaker Change: I will now turn the conference over to your host, Aharon Yehuda, CFO at EcoWave. The floor is yours.

Aharon Yehuda: Thank you for the introduction and thank you all for joining us for the rebroadcast.

Let's dive into our page.

Aharon Yehuda: Over the first nine months of 2024, EcoWaves Power has remained committed to prioritizing cost efficiency, and I am pleased to share some positive results.

Aharon Yehuda: From the second quarter to the third quarter of this year, we successfully reduced our overall expenses by 10% quarter over quarter.

is how we achieve this.

Aharon Yehuda: General and administrative expenses decreased by $63,000. Research and development expenses were reduced by $29,000.

Aharon Yehuda: These savings were driven by lower costs for directors and officers' insurance and reduced consulting fees.

Aharon Yehuda: Additionally, we saw an increase in grants during the third quarter, which further supported our cost-saving efforts.

Aharon Yehuda: These measures led us to a 73,000 reduction in our operating loss quarter over quarter.

Aharon Yehuda: Also, on a positive note, Equivis Power entered into an agreement with Open Iron Bank

Aharon Yehuda: to facilitate the buyback process and in September 2024 the company commenced

Aharon Yehuda: the repurchases of its ADSs and plans to continue such repurchase during the open trading window in November and December 2024.

Aharon Yehuda: By the end of the third quarter, we maintained a solid financial position with $7.04 million in cash and short-term bank deposits. This reflects only a modest $447,000 decrease from Q2 2024.

Aharon Yehuda: To summarize, we are proud to report that even as we are making significant progress across all of the company's key projects,

Aharon Yehuda: In Israel, Los Angeles, Taiwan, and Portugal, we have also achieved notable cost reductions that reflect our commitment to both operational excellence and strategic growth.

Speaker Change: That said, I now hand it over to Inna Braverman, Chief Executive Officer of Echoed Power, to share more about our progress and outlook.

Inna Braverman: Dear shareholders, as we reflect on the first nine months of 2024, I am proud to share the significant strides Equal Way Power has made in both financial management and project execution.

Inna Braverman: Our focus on operational efficiency has enabled us to maintain a strong cash position of $7.04 million in cash and short-term bank deposits.

Inna Braverman: while reducing operating expenses by 10% compared to the previous quarter.

Inna Braverman: This year has been marked by remarkable progress across all our projects. In Israel, the EWP-DF1 project at the port of Jaffa achieved 0% downtime for the very first time in June 2024, a testament to the reliability of our technology.

Inna Braverman: By September, the project reached 83% of its energy generation target, a 27% improvement over just three months, suppressing the average annual performance of our first grid-connected project, which was built in Gibraltar.

Enter a video from Municipality.

Speaker Change: In this unique project, for the very first time, electricity generated from sea waves is supplied to the National Grid, a historic milestone in Israel's renewable energy journey.

Speaker Change: On December 5th, we will have an official opening ceremony of Israel's first wave energy power station.

Speaker Change: In Jaffa Court, this groundbreaking global project combines innovation, sustainability, and the fight against climate change.

Speaker Change: The launch of Israel's first wave energy power plant is more than just a technological achievement. It's a powerful statement about the future we envision.

Speaker Change: This project at Jaffa Port represents a historic milestone in the global renewable energy journey, proving that wave energy can be a viable, clean and consistent source of electricity.

Speaker Change: In the United States, we secured a major regulatory milestone, the final nationwide permit from the U.S. Army Corps of Engineers for our first

Speaker Change: This groundbreaking project will be the first onshore wave energy installation in the U.S., with installation set for completion by the end of Q1, 2025.

Speaker Change: These achievements also fulfill key milestones under our co-investment agreement with Shell MRE, announced in April 2024, which is expected to enhance our fourth quarter revenues.

Speaker Change: Our global reach continues to grow with new opportunities. This year we signed our first turnkey wave energy deal in Taiwan, a pivotal step in our strategy to sell wave energy projects to third parties.

Speaker Change: This agreement has sparked interest from other global players eager to replicate this success, and we believe this model will significantly boost our market presence and revenue potential.

Speaker Change: We anticipate that securing three to four similar deals will position EcoWave Power as the first profitable wave energy company worldwide, a game-changing achievement for an industry often viewed as resource-intensive.

Speaker Change: To support this growth, we have expanded our leadership and engineering teams, including appointing a Vice President of Engineering and forming a U.S.-based sales and business development team to drive further expansion.

Speaker Change: We are also making strides to strengthen our capital structure through our American Depository Shares Researchers Program.

Speaker Change: Initiated in September 2024 in collaboration with Oppenheimer, this program is set to continue during the Open Trading Windows.

Speaker Change: We see this initiative as a strategic step toward enhancing shareholder value while providing the flexibility to execute on key priorities.

Speaker Change: On the legislative front, the introduction of the Marine Energy Technologies Acceleration Act by U.S. Representatives Nanette Baragon and Susan Bonamici represents a major milestone for the marine energy sector.

Speaker Change: This proposed legislation would allocate $1 billion to accelerate the commercialization of marine energy technologies, providing vital funding for demonstration projects, research and workforce development.

Speaker Change: We are encouraged by Representative Berrigan's support for our California installation and are optimistic that bipartisan recognition of the importance of renewable energy will continue to grow.

Speaker Change: While uncertainty exists around the Inflation Reduction Act under the incoming administration, we remain confident that states like California will lead the way in advancing clean energy initiatives.

Speaker Change: As we close out 2024, EcoWaste Power is steadfast in its mission to revolutionize the renewable energy landscape.

Speaker Change: Our focus remains on executing strategic initiatives, driving global growth, and delivering sustained value for our shareholders. Thank you for your trust and unwavering support as we continue on this journey.

Thank you.