Q4 2024 Eco Wave Power Global AB (publ) Earnings Call

Speaker Change: [music] I D.

Greetings and welcome to the Eco wave power fourth quarter 2024 earnings call.

Operator: Greetings and welcome to the Eco Wave Power 4th Quarter 2024 Earnings. At this time, all participants are in a listen-only mode, and if anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded.

At this time all participants are in a listen only mode and if anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.

Please note this conference is being recorded.

Aharon Yehuda: I will now turn the conference over to your host, Aaron Yehuda, CEO of Eco Wave Power. Sir, the floor is yours.

Speaker Change: Ill now turn the conference over to your host IRA and Yehuda seal of equal weight power, Sir the floor is yours.

Speaker Change: Thank you CFO.

Aharon Yehuda: CFO for Eco Wave Power. Good morning, everyone. I am pleased to present Eco Wave Power's financial results for the fiscal year 2024. This year has been marked by significant progress and strategic financial management positioning us well for future goals. As to financial performance in 2024, Eco Wave Power raised $3 million in gross proceeds through a successful public auction. We continued our disciplined approach to cost management, reducing operating costs by 7% this year and achieving a cumulative 32% reduction since 2020. These efforts, combined with our efficient working capital management, led to a $784,000 reduction in net cash used in operating accounts.

Speaker Change: Hello.

Speaker Change: Good morning, everyone I am pleased to present equal weight.

Speaker Change: The results for the fiscal year 2024.

Speaker Change: This year has been marked by significant progress in strategic financial management positioning us well for future growth.

Speaker Change: This strong financial performance in 2020 full equal weight power raised $3 million in gross proceeds through a successful public offering.

Speaker Change: We continued our disciplined approach to cost management, reducing operating costs by 7% this year and achieving a cumulative 32% reduction.

Speaker Change: 2022.

Speaker Change: These vessels cold behind.

Speaker Change: <unk> working capital management led to a $784000 reduction in net cash used in operating activities.

Aharon Yehuda: As of December 31st, 2024, we had a robust cash position of $9.3 million, including $7.8 million in cash and cash equivalents, and $1.5 million in short-term bank deposits. As to revenue and income, we are excited to report our first revenues from Wave Energy Project Agreement of $168,000, adding to other income of $225,000. This compares to 2023 $306,000 from feasibility studies and $17,000 in other income. Our transition from feasibility studies to tangible project revenues underscores our growth, trajectory, and operational process. As expense management, our total operating expenses for 2024 were $2.46 million. a 7% decrease from 2023 and a 32% lower than 2023.

Speaker Change: As of December 31st 2020, full we have the robust cash position of $9 3 million.

Speaker Change: Including $7 million to $8 million in cash and cash equivalents and $1.5 million in short term bank deposits.

Speaker Change: It's the revenue and income.

Speaker Change: Cited to report our first revenues for wave energy project agreements of $168000.

Speaker Change: I think two other income was $275000. This compares to 2023 $306000 from feasibility studies and $17000.

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Speaker Change: Hello transition full feasibility studies to tangible project revenues underscores our growth trajectory and operational losses.

Speaker Change: Okay.

Speaker Change: As expense management.

Speaker Change: Total operating expenses for 2000 $24 million to $46 million given us.

Speaker Change: A 7% decrease from 2023 and 32.

Speaker Change: <unk> lower than 2022.

Aharon Yehuda: Breaking this down, R&D expenses increased by $17,000 to $536,000, reflecting our investment in new... including our first U.S. project at the Port of Los Angeles, our first megawatt-scale project in Portugal, and our pilot project in Taiwan. Sales and marketing expenses decreased by 19.7% to $301,000, mainly due to reduced payroll and travel expenses. As our project pipeline grows, we expect sales and marketing expenses to rise to support our extension in time. General and administrative expenses slightly increased by $9,000 to $1,773,000. Driven by higher travel, payroll, and depreciation. Chair of Net Loss in Joint Venture, increased to $79,000, largely due to operational costs.

Speaker Change: Breaking this down.

Speaker Change: <unk> expenses increased by 17000.

$536000.

Speaker Change: Our investment in new projects.

Speaker Change: Including our first U S.

Speaker Change: Well the first megawatt scale projects in both of those.

Speaker Change: A pilot project in Taiwan.

Speaker Change: Sales and marketing expenses decreased by 19, 7% to 300.

Speaker Change: 301000, mainly due to reduced payroll and property expenses.

Speaker Change: It's a blank goes.

Speaker Change: We expect sales and marketing expenses to rise to support our expansion.

Speaker Change: Yeah.

Speaker Change: <unk> expenses increased by $90000 to 1770 $3000.

Speaker Change: Driven by higher payroll.

Speaker Change: <unk> and depreciation costs.

Speaker Change: <unk> net loss in joint venture increased to $79000 largely due to operational costs.

Speaker Change: Profitability metrics.

Aharon Yehuda: Profitability Matters Our operating load. Improved by 3% to $2.3 million, while net financial income was $230,000, compared to $547,000 in 2022. The net loss of 2024 was $2.1 million, up from $1.87 million in the prior year. Reflecting our continued investment in strategic oil. Capital Managed. We remain committed to delivering value to our shareholders. During the year, we continue to repurchase ADS. This buyback reflects our confidence in Eco Wave Power's long-term growth potential. And looking ahead, we expect 2025 to be a year of continual momentum as we advance our project in Los Angeles, Portugal and Taiwan.

Speaker Change: Operating loss.

Speaker Change: Well, the 3% to $2 $3 million.

Speaker Change: I'll list their names.

Speaker Change: Yes.

Speaker Change: <unk> thousand dollars compared to $547000.

Speaker Change: 2023.

Speaker Change: The net loss.

2024 was $2 1 million up.

Speaker Change: Optical one points to $87 million.

Prior year, reflecting our continued investment in strategic projects.

Speaker Change: Capital management.

Speaker Change: We remain committed to delivering value to our shareholders. During the year, we continued to repurchase shares.

Speaker Change: This buyback reflects our confidence in <unk> loans down both Fitch.

Speaker Change: And looking ahead, we expect 2025 via yields continued momentum as we advance the project in Los Angeles, both about in Taiwan, our disciplined financial strategy combined with our innovative technology position us well to capitalize on.

Aharon Yehuda: Our disciplined financial strategy, combined with our innovative technology, position us well to capitalize on the growing demand for renewable energy. Thank you for your continued support.

Speaker Change: Demand for renewable energy solutions.

Speaker Change: Thank you for your continued support we look forward to updating you on our progress throughout the year.

Aharon Yehuda: We look forward to updating you on our progress throughout the year.

Speaker Change: I will now turn the conference over to Ina brother months seal of physical with Butler.

Inna Braverman: I will now turn the conference over to Inna Braverman, CEO of Eco Wave Power. Inna, you may begin. Thank you, Aaron. As we reflect on the achievements of 2024, I'm incredibly proud of the progress Eco Wave Power has made across both financial and operational fronts. Our unwavering commitment to efficiency, innovation and growth has positioned us for a long-term success, and our strong foundation is a testament to the hard work and dedication of our team. Financially, as Aaron mentioned, we have made remarkable strides. Not only did we successfully reduce operating expenses by 7% and cut net cash used in operating activities by 30%, but we also grew our cash reserves by 11%, finishing the period with $9.3 million, which reflects our solid financial standing.

Speaker Change: You may begin.

Speaker Change: Thank you Ireland is really reflect on the achievements of 2024 I'm incredibly proud of the progress equal with power has made across both financial and operational fronts.

Speaker Change: I know that wavering commitment to efficiency innovation and growth has positioned us for long term success and our strong Foundation is a testament to the hard work and dedication of our team.

Speaker Change: Financially as Alan mentioned, we have made remarkable strides not only did we successfully reduced operating expenses by 7% and cut net cash used in operating activities by 30%, but we also grew our cash reserves by 11%, finishing the period were $9 3 million.

Speaker Change: Dollar, which reflects our solid financial standing.

Inna Braverman: On the operational side, our team delivered impressive results. The EWP-DF1 Wave Energy Project at Jaffa Port represents a historic first for Israel, as it is the first wave energy project in the country supplying clean energy from the waves to the national grid. I believe that this success is not just a win for Eco Wave Power, but the entire wave energy industry. Additionally, securing the final federal permit for our Port of Los Angeles project and advancing our efforts in Portugal with our first 1 MW project reflect the rapid expansion of Eco Wave Power's global footprint. Our commitment to the development of sustainable energy solutions continues to drive our work as we scale our technology in key markets.

Speaker Change: On the operational side, our team delivered impressive results the AWP. The F. One wave energy project that Jeff abort represents a historic first four he's right and it is the first wave of LNG projects in the country supplying clean energy from the wave to the national grid I believe that this success is not just to win.

Speaker Change: For Echo wave power, but the entire wave energy industry.

Speaker Change: Additionally, securing the final federal permit for our Port of Los Angeles project and advancing our efforts in Portugal with our first one megawatt project reflect the rapid expansion of equal with Power's global footprint, our commitment to the development of sustainable energy solutions.

Speaker Change: Genius to drive our work as is as we scale our technology in key markets.

Inna Braverman: We are also proud of our continued global expansion. Our agreement with IKE in Taiwan is a significant step toward introducing wave energy in Asia. And our collaboration with Bharat Petroleum in India further strengthens our ability to bring sustainable energy solutions to emerging markets. These partnerships are vital as we scale our operations and bring wave energy to new regions, demonstrating the potential of this renewable energy source. Looking ahead to 2025, we are excited about the opportunities to refine our technology and maximize our energy production. Our focus remains on improving the efficiency of our systems and pushing the boundaries of wave energy technology.

Speaker Change: We're also proud of our continued global expansion our agreement with I can't even say one is a significant step toward introducing wave energy in Asia, and our collaboration with Bob I put volume in India farthest strengthens our ability to bring sustainable energy solutions to emerging markets.

Speaker Change: Partnerships are vital as we scale, our operations and bring wave energy to new regions, demonstrating the potential of this renewable energy source.

Speaker Change: Looking ahead to 2025, we are excited about the opportunities to refine our technology and maximize our energy production.

Speaker Change: Our focus remains on improving the efficiency of our systems and pushing the boundaries of wave energy technology I believe that our disciplined approach to both financial management and project execution will keep equal with power at the forefront of the way the energy industry.

Inna Braverman: I believe that our disciplined approach to both financial management and project execution will keep Eco Wave Power at the forefront of the wave energy industry. I also want to highlight the recent recognition of hydropower in President Trump's National Energy Emergency Plan. This support underscores the growing importance of renewable sources of energy that can provide reliable 24-7 power. Much like hydropower, wave energy offers the ability to generate continuous energy in suitable locations, making it an integral part of a diverse renewable energy mix. In my opinion, this recognition provides a positive outlook for the wave energy sector, and we are poised to capitalize on the increasing interest in sustainable clean energy solutions.

I also want to highlight the recent recognition of hydropower in President Trump's National Energy Emergency plan.

Speaker Change: We support underscores the growing importance of renewable sources.

Speaker Change: Energy that can provide reliable 24 seven power.

Speaker Change: Much like hydro power wave energy offering the ability to generate continuous energy and suitable locations, making it an integral part of their various renewable energy Meek in my opinion. This recognition provides a positive outlook for the wave energy sector.

Speaker Change: And we are poised to capitalize on the increasing interest in sustainable clean energy solutions.

Inna Braverman: I would like to express my sincere appreciation to our investors, stakeholders, and the entire Eco Wave Power team for their continued support. Together, we are making waves in the renewable energy industry and driving forward our mission to harness the power of ocean waves for a cleaner, more sustainable future. Thank you.

Speaker Change: I would like to express my sincere appreciation to our investors stakeholders and the entire equal weight power team for their continued support together, we're making waves in the renewable energy industry and driving forward our mission to harness the power of ocean waves for cleaner more sustainable future.

Speaker Change: Thank you.