STOCKHOLM, Sept. 27, 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 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 six
months ended June 30, 2023 and
provide a corporate update.
Management Commentary
Eco Wave Power continues to execute its dual-fold strategy:
increasing our business presence and promoting wave energy as a
vital source of renewable energy.
During the second quarter of 2023, we achieved several key
milestones:
- In Israel, we successfully
connected Jaffa Port – EWP EDF One Project- to the Israel national electrical grid.
- In the Port of Los Angeles, we
are currently at the advanced licensing stage. Additionally, we
have employed a local engineering firm to examine the integrity of
the jetty and assist with planning of the connection of our
floaters to the jetty. At the same time, it should also be noted
that the California State legislature
unanimously passed California
Senate Bill 605 ("SB 605"). This legislative initiative directs the
California Energy Commission to evaluate the feasibility, costs,
and benefits of using wave energy and tidal energy along
California's 840-mile coastline.
The bill, introduced by Senator Steve
Padilla (D-Chula Vista),
now heads to Governor Gavin Newsom's
desk for his consideration. This law is expected to assist our
project's progress and advance other potential projects in the
U.S.
- In Portugal, we have received
the last approval necessary for the commencement of the works of
our first megawatt (MW) in the city of Porto (TURH license). Eco Wave Power is
currently setting up the execution bond for the project, in order
to officially receive the final license. The next steps will
include finalizing detailed construction plans for the first 1 MW
power plant, obtaining approval from relevant entities for the
detailed construction plans, and then commencing actual
construction, which is expected to take up to 24 months. This 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 new potential projects, we recently announced
the signing of a Memorandum of Understanding (MoU) with Lian Tat
Company to introduce wave energy to Taiwan and engaged in discussions with the
management of the Port of Heraklion in Greece regarding the planning of a 2 MW Wave
Energy Project. In parallel, we have successfully performed
feasibility studies for a potential project in Morocco and a first of its kind feasibility
study for a potential project on a drilling platform offshore.
"In 2023, Eco Wave Power continues to prove that with the right
technology, the right governmental support, and the right strategic
partnerships - wave energy is possible!
Here at Eco Wave Power, we are proving that we do not need
sky-high deployment budgets and we do not need extremely lengthy
deployment times. Wave energy, especially onshore wave energy
technology, can be simple, cost-effective and promptly
implemented.
With the deployment of our second grid connected project
in Israel, and a near future
deployment of our first project in the Port of Los Angeles, U.S. we are striding with
confidence towards our first commercial scale project in the city
of Porto, in Portugal.
We still have work to do, as there are not a lot of wave
energy developers that have deployed their technology in
real-conditions, and therefore most of the information has to be
learned, developed and validated by our own teams, but with all the
progress that we have made so far, I really feel comfortable and
pleased with the direction of the wave energy sector, and
especially the direction of Eco Wave Power.
We are also looking forward to the approval of our Share
Repurchase Program by SFSA, as we believe that our share buyback
program will allow our leadership to have a greater scope to act
and the opportunity to improve the Company's capital structure,
driving greater shareholder value and improving the investment
value of our company," Commented Inna Braverman, Founder and Chief
Executive Officer of the Company.
Operations
Israel
- Eco Wave Power is Officially Connected to Israeli Electrical
Grid: The EWP EDF One Station Supplies First Wave Energy to
Country's Power Supply (August 15,
2023)
Eco Wave Power has announced that its station at the port of
Jaffa in Tel Aviv, EWP-EDF One,
has officially been connected to Israel's national electric grid, making it the
first wave energy project to deliver electricity to the country's
power supply. Earlier this year, Eco Wave Power entered
Israel's first wave energy Power
Purchase Agreement with the National Electric Company.
Additionally, the Israeli Energy Ministry, which has recognized Eco
Wave Power's technology as "pioneering technology," released its
final grant funding for the EWP-EDF One wave energy power station
in the Port of Jaffa, indicating the official completion of the
construction of the project. The EWP-EDF One wave energy system is
comprised of ten floaters along the Port of Jaffa's pre-existing
breakwater. Each of the floaters is directly connected to Eco Wave
Power's land-based energy conversion unit, allowing easy access for
operational maintenance and upgrades. The power station has an
installed capacity of 100 kilowatt (KW), which is enough energy to
power up to 100 homes at peak efficiency. These land-based
conversion units and usage of pre-existing structures display Eco
Wave Power's commitment to sustainably build clean energy at nearly
any location. In addition to providing clean energy, EWP-EDF One
power station will also be a public education center, as Eco Wave
Power recently announced that it has received the GREENinMED grant
from the European Union, as an aid for funding the creation and
installation of unique educational experiences at the Jaffa Port,
Israel.
- Eco Wave Power Receives Grant from the European Union for
Its New Wave Energy Power Station in Jaffa Port, Israel (July 13,
2023)
Eco Wave Power announced the approval of the GREENinMED
grant, provided by the European Union, under the ENI CBC
Mediterranean Se Basin Programme. The GREENinMED grant is
promoted and managed by a consortium of parties from Spain, France, and Israel. The Kinneret Academic College selected
Eco Wave Power's project to receive the grant. This was done with
the goal of adding educational and knowledge-sharing features for
Eco Wave Power's energy power station, promoting and facilitating
the adaptation of technologies and equipment that will create new
eco-innovative products for Israel's tourism industry. Eco Wave Power will
use this funding towards the creation and installation of a
knowledge-sharing experience for the local population, and
tourists, making the EDF-EWP One wave energy power station a unique
tourist attraction, and introducing Eco Wave Power as an example of
Israeli innovation. The grant marks a collaborative milestone
between Eco Wave Power and various European Union (EU) funding
programs and reinforces Eco Wave Power's long-standing focus on the
European market. This grant marks another milestone in the
long-term productive collaboration between Eco Wave Power and
various EU funding programs, and also reinforces Eco Wave Power's
long-standing focus on the European market. The Company's historic
station in Gibraltar was co-funded
by the European Regional Development Fund, and Eco Wave Power also
received a grant from the Horizon2020 phase A- EU funding program.
Eco Wave Power is currently taking part in the Iliad consortium,
which was awarded 17 million Euro by
the EU.
Taiwan
- Eco Wave Power and Lian Tat Company Sign MoU to Bring Wave
Energy to Taiwan (June 22, 2023)
Eco Wave Power Global Ab (publ) signed an MOU with a prominent
maritime engineering company, Lian Tat Company ("LTC") to bring its
wave energy technology to Taiwan.
The terms of the agreement state that Eco Wave Power and Lian Tat
Company will establish a Joint Venture company to develop wave
energy projects in Taiwan. LTC
will be responsible for acquiring permits, land use consents, and
any licensing and approvals required to complete the installation
of the wave energy project. Moreover, LTC will be accountable for
funding the joint venture, and the project during the pilot phase,
and managing the construction, operation, and maintenance of the
project in Taiwan. Eco Wave Power
will provide wave energy conversion technology, aid in the research
and evaluation of the project's feasibility, supply power
generation equipment and knowledge, and execute troubleshooting.
The project will begin with a 100 kW pilot and then expand in
stages until a total installed capacity of 20 MW is reached within
the first stage of developing the wave energy power station. In
conjunction with producing 20 MW of clean energy, the project is
expected to create several economic benefits.
Greece
- Eco Wave Power Enters an
Agreement with Rogan Associates S.A. to Bring the EWP Technology to
Greece and Conducts an Official
Site Visit with Rogan Associates at Greece's Port of Heraklion to Discuss the Next
Steps for the Planning of the 2MW Wave Energy Project (July 20, 2023)
In April 2023, Eco Wave Power
entered an agreement with Rogan Associates S.A. to bring Eco Wave
Power's energy technology design to Greece. In this collaboration, Rogan
Associates S.A. will reinforce the existing breakwater and plan the
potential extension of the breakwater, while Eco Wave Power will
complete the wave energy production analysis and custom design the
wave energy technology to retrofit the existing breakwater at the
port. Meetings were held with the managing director of Heraklion
Port Authority, Mr. Minas Papadakis, and other port
representatives, to receive updates regarding the goals achieved
thus far in planning the project. The next steps of the project are
to conduct further analysis of the site, focusing on civil
engineering and pricing for installation. The work conducted by the
parties is funded by a grant from the European Union Climate,
Infrastructure, and Environment Executive Agency. The grant is an
additional proof to the a long-term productive collaboration
between Eco Wave Power and different EU funding programs.
During July 2023, the CEO of
Eco Wave Power, Inna Braverman, and
representatives from Rogan Associates S.A. traveled to Crete, Greece for an official site visit of
the Heraklion breakwater as it is being examined for a potential 2
MW wave energy power station.
California Legislation
- Assembly Committee Passes Wave and Tidal Renewable Energy
Bill (September 20, 2023)
Earlier this month, California State Senate unanimously passing
California Senate Bill 605 ("SB
605"), a legislative initiative that directs the California Energy
Commission to evaluate the feasibility, costs, and benefits of
using wave energy and tidal energy across California's 840-mile coastline. The bill,
introduced by Senator Steve Padilla,
now heads to Governor Gavin Newsom's
desk for his consideration.
Per the amended bill, the California Energy Commission (the
"Energy Commission") will work with various state agencies,
including the California Coastal Commission, the Ocean Protection
Council, and other stakeholders to identify suitable locations for
wave energy and tidal energy projects in both state and federal
waters. This bill aims to lead California to develop a new source of clean,
renewable energy to aid the state in meeting its carbon-free
targets, while bolstering its electric grid. SB 605 instructs the
California Energy Commission to work with the relevant state
agencies to analyze the feasibility and potential for wave and
tidal energy development in California and sets deadlines for findings to
be reported to the California Legislature and Governor. The SB 605
also requires the Energy Commission to consider wave and tidal
energy projects that "assess the technological feasibility and
provide research and demonstration of the technology" in the
investment planning process for the Electric Investment Charge
program. This program is a California Energy Commission program
that "invests in scientific and technological research to
accelerate the transformation of the electricity sector to meet the
state's energy and climate goals." This legislation is sponsored by
AltaSea at the Port of Los
Angeles. This is a 35-acre ocean technology campus that
houses Eco Wave Power's first energy power station in North America. This pilot project is believed
to be the first onshore wave energy station built in the United States. California has established 2045 as its
deadline to achieve a carbon-free energy grid. The National
Renewable Energy Laboratory found that the energy potential in
California is 140 TWh/year, which
is the equivalent to the power needs of 13 million homes or 69% of
California's 2019 net electricity
generation. SB 605 specifies that if developed and deployed at
scale, wave and tidal energy have the potential to provide economic
and environmental benefits to the state and the nation.
Capital Markets
- Eco Wave Power Announces Plans for Share Repurchase Program
(June 29, 2023)
Eco Wave Power announced its intention to set up a share
repurchase program to repurchase American Depositary Shares,
corresponding to up to 10 percent of the total number of shares in
the Company, which is the maximum amount permitted by the Swedish
law. All share repurchase programs are subject to necessary permits
being obtained from the Swedish Financial Supervisory Authority
(SFSA), in accordance with chapter 19 of the Swedish Companies Act.
The permit is limited in time and conditional on the SFSA's
assessment of the Nasdaq Capital Market as an equivalent of a
regulated market as defined in the Swedish Securities Market Act.
Repurchases will be made in accordance with the Swedish Companies
Act and applicable U.S. securities laws and regulations under the
U.S. Securities Exchange Act of 1934, as amended. The Company's
management will determine the timing, amount, and manner of a
repurchase subject to an evaluation of business, market, and
economic conditions, corporate and regulatory requirements, and
other considerations.
First Half 2023 Financial Overview
- For the six months ended June 30,
2023, revenues were zero compared to $26,000 in the same period last year. The
decrease is due to the fact that we were in the midst of certain
studies and did not yet recognize the payments as income.
- Operating expenses were $1.4
million, down by 35% from the same period last year.
- Research and development (R&D) expenses were $323,000 compared to $635,000 in the same period last year. Research
and development costs decreased mainly due to a one off
non-recurring loss of $278,000
pertaining to a disposal of the floater mechanisms of the
Gibraltar wave energy array in
2022, 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 6 months
period, we expect that our research and development 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 $193,000 compared to $300,000 in the same period last year. This
decrease was primarily attributable to a $51
thousand decrease in sales and marketing activities in the
first half of 2023. Although our expenses have significantly
decreased during the first 6 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 $854,000 compared to $1,186,000 in the same period last year. This
decrease was primarily attributable to a $175 thousand decrease in D&O insurance
premium, $51 thousand decrease in
payroll and related expenses and a $30
thousand decrease in legal expenses. Although our general
and administrative expenses have significantly decreased during the
first 6 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 $9,000 was
generated mainly from management fees in a joint venture.
- Share of net loss of a joint venture accounted for using the
equity method for the six months ended June
30, 2023 was $10,000.
- Operating loss was $1.4 million
compared to $2.1 million in the same
period last year.
- Net financial income was $512,000, compared to $681,000 in the same period last year.
- Net loss was $859,000, or
$0.02 per basic and diluted share,
compared to a net loss of $1,431,000,
or $0.03 per basic and diluted share
in the same period last year.
- The Company ended the period with $4
million in cash and cash equivalents and $5.2 million in short term bank deposits,
compared to $5.3 million and
$5 million, respectively, as of
December 31, 2022.
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
For media inquiries, please contact:
Jacob Scott, Vectis Strategies
+1.412.445.7719
jscott@vectisstrategies.com
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 that SB 605 is
expected to assist its project's progress and advance other
potential projects in the U.S, the next steps in the Portugal project and the expected timing
thereof, potential project in Morocco, SFSA's approval of the share
repurchase program, that the LTC project is expected to create
several economic benefits, its expectation that its research and
development, sales and marketing and general and administrative
expenses to materially increase . 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)
|
|
|
|
June 30
2023
|
December 31
2022
|
|
|
In USD
thousands
|
Assets
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
|
4,051
|
5,295
|
Short Term Bank
Deposits
|
|
5,217
|
5,000
|
Restricted short-term
bank deposits
|
|
61
|
63
|
Other receivables and
prepaid expenses
|
|
95
|
161
|
TOTAL CURRENT
ASSETS
|
|
9,424
|
10,519
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
Property and
equipment, net
|
|
679
|
722
|
Right-of-use assets,
net
|
|
131
|
166
|
Investments in a joint
venture accounted for using the equity method
|
|
517
|
510
|
TOTAL NON-CURRENT
ASSETS
|
|
1,327
|
1,398
|
TOTAL
ASSETS
|
|
10,751
|
11,917
|
|
|
|
|
Liabilities and
equity
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term loans from related party
|
|
985
|
941
|
Current maturities of
other long-term loan
|
|
65
|
32
|
Accounts payable and
accruals:
|
|
|
|
Trade
|
|
40
|
75
|
Other
|
|
925
|
733
|
Current maturities of
lease liabilities
|
|
91
|
78
|
TOTAL CURRENT
LIABILITIES
|
|
2,106
|
1,859
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
Other long-term
loan
Lease liabilities, net
of current maturities
|
|
69
39
|
96
88
|
TOTAL NON-CURRENT
LIABILITIES
|
|
108
|
184
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
2,214
|
2,043
|
|
|
|
|
EQUITY:
|
|
|
|
Common
shares
|
|
98
|
98
|
Share
premium
|
|
23,121
|
23,121
|
Foreign currency
translation reserve
|
|
(2,539)
|
(2,061)
|
Accumulated
deficit
|
|
(12,143)
|
(11,284)
|
TOTAL
EQUITY
|
|
8,537
|
9,874
|
TOTAL LIABILITIES
AND EQUITY
|
|
10,751
|
11,917
|
|
|
|
|
Eco Wave Power
Global AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(Unaudited)
|
|
|
|
Six months
ended
|
|
|
June
30
|
|
|
2023
|
2022
|
|
|
In USD
Thousands
|
REVENUES
|
|
-
|
26
|
COST OF
REVENUES
|
|
-
|
(22)
|
GROSS
PROFIT
|
|
-
|
4
|
OPERATING
EXPENSES
|
|
|
|
Research and development
expenses
|
|
(323)
|
(635)
|
Sales and marketing
expenses
|
|
(193)
|
(300)
|
General and
administrative expenses
|
|
(854)
|
(1,186)
|
Other income
|
|
9
|
15
|
Share of net loss of a
joint venture
|
|
|
|
accounted for using the
equity method
|
|
(10)
|
(10)
|
TOTAL OPERATING
EXPENSES
|
|
(1,371)
|
(2,116)
|
|
|
|
|
OPERATING
LOSS
|
|
(1,371)
|
(2,112)
|
|
|
|
|
Financial
expenses
|
|
(26)
|
(31)
|
Financial
income
|
|
538
|
712
|
FINANCIAL INCOME
(EXPENSES) - NET
|
|
512
|
681
|
|
|
|
|
NET
LOSS
|
|
(859)
|
(1,431)
|
|
|
|
|
ATTRIBUTABLE
TO:
|
|
|
|
The Parent Company
shareholders
|
|
|
(1,241)
|
(859)
|
|
|
(859)
|
(1,241)
|
|
|
In
USD
|
LOSS PER COMMON
SHARE – BASIC AND DILUTED
|
|
(0.02)
|
(0.03)
|
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES USED IN CALCULATION OF LOSS
PER COMMON SHARE
|
|
44,394,844
|
44,394,844
|
The following files are available for download:
https://mb.cision.com/Main/18497/3843089/2322062.pdf
|
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|
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