WAVE Eco Wave Power Global AB

Exhibit 99.2

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included in our Annual Report on Form 20-F for the year ended December 31, 2023, as well as our unaudited condensed consolidated financial statements and the related notes thereto as of and for the six months ended June 30, 2024, included elsewhere in this Report of Foreign Private Issuer on Form 6-K. The discussion below contains forward-looking statements that are based upon our current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to inaccurate assumptions and known or unknown risks and uncertainties.  

 

Cautionary Statement Regarding Forward-Looking Statements

 

Certain information included herein may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Forward-looking statements are often characterized by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue,” “believe,” “should,” “intend,” “project” or other similar words, but are not the only way these statements are identified.

 

These forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, statements that contain projections of results of operations or of financial condition, expected capital needs and expenses, statements relating to the research, development, completion and use of our products, and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future.

 

Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. We have based these forward-looking statements on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate.

 

Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: 

 

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our ability to successfully enter new markets, manage our international expansion and comply with any applicable laws and regulations;

 

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the timing for the commercialization of our wave energy conversion, or WEC, technology, including the timing, cost, regulatory approvals or other aspects related thereto;

 

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our ability to generate revenue from our WEC technology and ancillary services, such as feasibility studies or our Wave Power Verification, or WPV, software;

 

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our expectations regarding the supply of components and manufacturing of our products;

 

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the ability of our WEC technology to generate commercial amounts of energy and its perceived benefits versus other solutions;

 

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the successful development of the WPV software;

 

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the implementation of solar panels into our WEC technology;

 

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our estimates regarding anticipated expenses, capital requirements and our needs for additional financing;

 

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our expectations with regards to the receipt of funds pursuant to existing and future grants;

 

 

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our ability to compete with other companies in our industry;

 

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the receipt of any government subsidies or feed-in-tariffs;

 

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our research and development and growth strategies and marketing plans;

 

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our ability to comply with environmental laws and to adapt to changes in laws, regulations or policies of governmental agencies or regulators relating to the utilization of our WEC technology;

 

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the ability of our management team to lead the development and commercialization of our WEC technology;

 

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our estimates of the size of our market opportunities;

 

	●	issuance of patents to us by the United States Patent and Trademark Office and other governmental patent agencies;
	●	foreign exchange rate fluctuations, particularly fluctuations between the U.S. dollar and Swedish Kronor and Israeli shekel;

 

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general market, political and economic conditions in the countries in which we operate including those related to recent unrest and actual or potential armed conflict in Israel and other parts of the Middle East, such as Israel’s multi-front war; and

 

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those factors referred to in “Item 3. Key Information - D. Risk Factors,” “Item 4. Information on the Company,” and “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the year ended December 31, 2023, or our Annual Report.

 

The foregoing list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting our company, reference is made to our Annual Report, which was filed with the Securities and Exchange Commission, or the SEC, on March 28, 2024, and the other risk factors discussed from time to time by our company in reports filed or furnished to the SEC.

 

Except as otherwise required by law, we undertake 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.

 

Unless otherwise indicated, all references to “we,” “us,” “our,” the “Company” and “EWPG” refer to Eco Wave Power Global AB (publ), after the date that it acquired its operating subsidiary, Eco Wave Power Ltd., or EWP Israel, or the Acquisition, while such references, before the time of the Acquisition, refer to EWP Israel. References to “U.S. dollars” and “$” are to currency of the United States of America, references to “SEK” are to Swedish Kronor, references to “shekel,” “Israeli shekel” and “NIS” are to New Israeli Shekels, references to “Euro,” “EUR” and “€” are to the Euro common currency of the Eurozone of the European Union and references to “GBP” are to the British Pounds Sterling. References to “Common Shares” are to our Common Shares, no par value. We report our financial statements under International Financial Reporting Standards, or IFRS, as issued by the International Accounting Standards Board, or the IASB. None of the financial statements were prepared in accordance with generally accepted accounting principles in the United States.

 

Overview

 

We are a wave energy company primarily engaged in the development of a smart and cost-efficient WEC technology that converts ocean and sea waves into clean electricity. Our wave energy technology is implemented onshore or nearshore, as opposed to offshore systems, and draws energy from incoming waves by converting the rising and falling motion of the waves into an efficient and clean energy generation process. In addition to our WEC technology, we are also building out a pipeline of ancillary technology services that we may provide to our clients and other parties, such as research institutions. These services currently include feasibility studies for potential clients of our WEC technology. We are also developing a smart WPV software, intended to provide real-time production verification that is expected to allow preventative-predictive and corrective measures to be taken. We believe that by providing these complementary services, we will be better positioned to be a leader of the wave energy industry.

 

 

We have entered into a variety of agreements with parties interested in the utilization of our WEC technology. These agreements consist of Power Purchase Agreements, Concession Agreements and other agreements in various stages, including letters of intent. Based on the terms of the agreements and our own calculations, we believe that we have a total worldwide pipeline of projects that may be up to 404.7 megawatts in size. Although the majority of the megawatts included in our pipeline are subject to preliminary agreements, we have a limited amount of megawatts that are subject to more advanced agreements, such as our Power Purchase Agreement in Gibraltar (which we are not currently actively working on advancing) for five megawatts, a Concession Agreement in Portugal for up to 20 megawatts, an Agreement in Spain for up to 2MW, an Interconnection Agreement in Mexico for up to 25 megawatts (which we are not currently actively working on advancing) and a collaboration agreement with AltaSea in the Port of Los Angeles. Pursuant to this collaboration agreement, we signed a pilot test agreement on January 3, 2024 for the development of a wave energy pilot in the AltaSea premises in the Port of Los Angeles between us and Shell International Exploration and Production Inc. Although some of these agreements may be deemed to be definitive, there is no guarantee that we will complete the construction of any WEC systems for such projects (or any others), as we will need to meet certain conditions and obtain certain licenses to reach the actual construction stage of such projects, of which there can be no guarantee. (See Item. 4.D. – “Risk Factors — Risks Related to Our Business Operations” in our Annual Report for risks associated with our pipeline projects and Item. 4.B. – “Business — Project Pipeline” in our Annual Report for additional information).

 

We own and operate a grid connected wave energy project in Israel, with co-investment from EDF Renewables IL and the Israeli Energy Ministry, which recognized our technology as “Pioneering Technology.” The Israeli wave energy project marks the first grid-connected wave energy system in Israel’s history. We plan to continue to develop the projects in our pipeline, specifically our EDF EWP One project, the construction of our pilot project at the AltaSea premises in the Port of Los Angeles, and to work towards implementing our megawatt project in Portugal and/or other locations, further expand our project pipeline, conduct research and development aimed at continuing to upgrade and improve our WEC technology, continue the reinforcement of our patent portfolio, and to expand the team that will help us achieve our growth strategy. We expect the development cost of launching any commercial-scale project (i.e., at least 20 megawatts), will range from EUR 1.2 million ($1.3 million) to EUR 1.8 million ($2 million) for the cost of equipment per megawatt. In addition to the cost of equipment, the cost to launch a commercial-scale project will also include installation and connection to the local/regional electricity grid, which cost may significantly vary in accordance with the condition of the breakwater and/or the construction of a novel marine structure, and the distance from the nearest grid connection point. In addition, the price may vary significantly due to the wave climate in the region, as regions with lower wave climates may require significantly larger amounts of floaters to reach an adequate capacity factor. As of the date of this Report of Foreign Private Issuer on Form 6-K, most of our projects are either not of a commercial nature or in too early stage of their development to determine the exact final construction, installation, and grid connection costs. In addition, we expect that the costs of completing our pipeline projects will be impacted by applicable government regulations, some of which may cause the actual cost of getting to commercial launch to become more expensive.

 

The EDF EWP One 100 kilowatt (or 0.1 megawatt) installed capacity project, which is the most advanced project in our pipeline, cost approximately $1 million. The cost of the project is more than originally expected due to component price increases resulting from supply chain disruptions related to COVID-19 and different research and development activities to be performed at the site. The costs are to be divided equally between us and EDF Renewables IL.

 

Our projects generally have the following development milestones, once an agreement and/or proper licenses have been entered:

 

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pre-feasibility studies, which entail preliminary site suitability and energy potential assessments;

  

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feasibility studies, which entail detailed civil engineering studies, wave studies, forecasting energy generation calculations, forecasting cost calculations, as well as site and project suitability assessments;

 

 

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licensing (including securing grid connection approvals and terms and negotiating feed-in-tariffs, if not available), which generally entails securing all the licenses, permits, and approvals required for the development and construction of a power station at the relevant site;

 

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detailed planning;

 

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parts procurement, assembly, construction, installation; and

 

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connection to the electricity grid and full system integration, followed by a test run.

 

Revenue

 

We did not generate any revenue during the six months ended June 30, 2023 and during the six months ended June 30, 2024.

 

To date, we have generated sales from feasibility studies. We have not generated any revenue from product sales and do not expect to generate any significant revenue from product sales for at least the next several years.

 

Operating Expenses

 

Our current operating expenses consist of three components - research and development expenses, sales and marketing expenses and general and administrative expenses.

 

Research and Development Expenses

 

Our research and development expenses consist primarily of salaries and related personnel expenses, depreciation and other research and development expenses. Although our research and development expenses have decreased during the last six months period, we expect that our research and development expenses will 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

 

Our sales and marketing expenses consist primarily of salaries, marketing and advertising services, including public relations and investor relations, and travel. Although our expenses have decreased during the six months ended June 30, 2024, we expect that our sales and marketing expenses will 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

 

Our general and administrative expenses consist primarily of salaries, professional service fees, depreciation, and other general and administrative expenses, such as rent and consulting fees. Our general and Administrative Expenses have increased during the last six month period, and we expect that our general and administrative expenses will continue to 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.

 

 

Results of Operations

 

Comparison of the Six Months Ended June 30, 2024 and 2023

 

The following table sets forth our results of operations for the six months ended June 30, 2024 and 2023:

 

		Six Months Ended June 30,
USD in thousands		2024				2023
Research and development expenses			(320	)			(323	)
Sales and marketing expenses			(137	)			(193	)
General and administrative expenses			(894	)			(854	)
Other income			32				9
Share of net loss of a joint venture accounted for using the equity method			(30	)			(10	)
Operating loss			(1,349	)			(1,371	)
Financial income, net			331				512
Net loss			(1,018	)			(859	)

 

Research and Development Expenses

 

Research and development expenses decreased by $3 thousand, or 1%, to $320 thousand for the six months ended June 30, 2024, compared to $323 thousand for the six months ended June 30, 2023. This decrease was primarily attributable to a decrease in payroll and related expenses in the first half of 2024.

 

Sales and Marketing Expenses

 

Sales and marketing expenses decreased by $56 thousand, or 29%, to $137 thousand for the six months ended June 30, 2024, compared to $193 thousand for the six months ended June 30, 2023. This decrease was primarily attributable to a decrease in payroll and related expenses in the first half of 2024.

 

General and Administrative Expenses

 

General and administrative expenses increased by $40 thousand, or 5%, to $894 thousand for the six months ended June 30, 2024, compared to $854 thousand for the six months ended June 30, 2023. This increase was primarily attributable to a $23 thousand increase in legal services and an increase in travel expenses.

 

Other Income

 

Other income increased by $23 thousand, or 255%, to $32 thousand for the six months ended June 30, 2024 compared to $9 thousand for the six months ended June 30, 2023. This increase was primarily attributable to receipt of $25 thousand Vital Voices Global Partnership award and from management fees in a joint venture during the first half of 2024.

 

Share of net loss of a joint venture

 

Share of net loss of a joint venture accounted for using the equity method increased by $20 thousand, or 255% to $30 thousand for the six months ended June 30, 2024 compared to $10 thousand for the six months ended June 30, 2023. This increase was primarily attributable to management fees, depreciation and other operational costs.

 

Operating loss

 

Operating loss decreased by $22 thousand, or 2%, to $1,349 thousand for the six months ended June 30, 2024, compared to $1,371 thousand for the six months ended June 30, 2023. This decrease was primarily attributable to a decrease in sales and marketing costs of $56 thousand mainly due to payroll and related expenses, and a $23 thousand increase in legal services and an increase in travel expenses.

 

 

Financial Income (Expenses), Net

 

Net financial income decreased by $181 thousand, or 35% to $331 thousand for the six months ended June 30, 2024, compared to $512 thousand for six months ended June 30, 2023. This decrease was primarily attributable to a decrease in income from foreign exchange differences.

 

Net Loss

 

Net loss increased by $159 thousand, or 19%, to $1,018 thousand for the six months ended June 30, 2024, compared to $859 thousand for the six months ended June 30, 2023. This increase was primarily attributable to a decrease $181 thousand in net financial income primarily attributable to a decrease in income from foreign exchange differences.

 

Liquidity and Capital Resources.

 

Overview

 

Since the inception of EWP Israel and through June 30, 2024, we have funded our operations principally with $25.4 million from the sale of our Common Shares in our initial public offering on Nasdaq First North Growth Market Sweden (“Nasdaq First North”), from private issuances of Common Shares, from our public offering of our American Depository Shares (“ADSs”) on the Nasdaq Capital Market, from shareholder loans and from the receipt of various government grants. As of June 30, 2024, we had $7.42 million in cash and cash equivalents and $0.06 million in short term bank deposits.

 

The table below presents our cash flows for the periods indicated:

 

		Six Months Ended June 30,
USD in thousands		2024				2023
Cash used in operating activities, net			(841	)			(1,008	)
Cash used in investing activities, net			4,191				(34	)
Cash used in financing activities, net			(49	)			(33	)
Net decrease in cash and cash equivalents			3,301				(1,075	)
Effect of exchange rate changes on cash and cash equivalents			(161	)			(169	)

 

Operating Activities

 

Net cash used in operating activities for the six-month period ended June 30, 2024 was $841 thousand and primarily reflects a net loss of $1,018 thousand for the period. The cash used in operating activities was reduced mainly by the elimination of certain non-cash items that were taken into account in calculating, and that increased our overall loss, including $85 thousand of depreciation expenses, $197 thousand of other non-cash items and changes in components of working capital.

 

Net cash used in operating activities for the six-month period ended June 30, 2023 was $1,008 thousand and primarily was due to a net loss of $859 thousand for the period. The cash used in operating activities was reduced mainly by the elimination of certain non-cash items that were taken into account in calculating, and that increased our overall loss, including $80 thousand of depreciation expenses, $165 thousand of other non-cash items and changes in components of working capital.

 

The decrease in net cash used in operating activities was mainly the result of a decrease in net working capital items and an increase in non-cash expenses.

 

 

Investing Activities

 

Net cash provided by investing activities in the six months ended June 30, 2024, amounted to $4,191 thousand and consisted mainly of $3,998 thousand proceeds from short term deposits, $209 thousand interest received on short term bank deposits, an investment of $8 thousand in our EWP EDF One Ltd. joint venture that constructed the pilot project at Jaffa Port and $8 thousand purchase of property and equipment.

 

Net cash used in investing activities in the six months ended June 30, 2023, amounted to $34 thousand and consisted mainly of an investment of $41 thousand in our EWP EDF One Ltd. joint venture that constructed the pilot project at Jaffa Port.

 

This increase in net cash provided by investing activities is due mainly to $3,998 thousand proceeds from short term deposits and $209 thousand interest received on short term bank deposits.

 

Financing Activities

 

Net cash used in financing activities amounted to $49 thousand for the six months ended June 30, 2024, compared to $33 thousand for the six months ended June 30, 2023. This decrease is attributable to a decrease in payment of principal under our contractual lease payments of our company offices.

 

On March 7, 2019, EWP Israel signed a loan agreement with PortXL Netherlands B.V., or PortXL, to provide EWP Israel with €100,000 (approximately $111,000). The loan consisted of two components: (1) €85,000 (approximately $94,000) in kind consisting of services related to participating in PortXL’s startup accelerator program was provided; and (2) €15,000 (approximately $17,000) was provided in cash. The loan bears a compounded fixed interest of 5% per annum, accruing from April 1, 2019 through March 31, 2028. The outstanding balance of the loan and any accrued and unpaid interest thereon shall be due and payable in five annual installments, commencing from April 1, 2023. EWP Israel is entitled to prepay any part of the loan and/or the interest at any time, without any premium or penalty in its sole discretion. To the extent that EWP Israel fails to repay the loan when due, PortXL shall be entitled, as a sole remedy, to be issued ordinary shares of EWP Israel in such number equal to the unpaid balance of the loan and the accrued interest, divided by $357.825, which was the value of such ordinary shares prior to our initial public offering on Nasdaq First North. According to the loan agreement, EWP Israel is obligated to send PortXL audited financial statements, once such statements are available. As of June 30, 2024, the amount outstanding under the loan agreement with PortXL was $139,000.

 

As of June 30, 2024, we also have the following indebtedness from loans received from a related party. (See Item. 7.B. - “Related Party Transactions” in our Annual Report for additional information):

 

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In connection with a loan received during the course of 2011 through 2016, EWP Israel entered into loan agreements with David Leb, a shareholder of the Company and a member of our board of directors, in the amounts of $200,000 and $800,000, or the First Shareholder Loan and the Second Shareholder Loan, respectively. According to the terms of the First Shareholder Loan, EWP Israel agreed to repay the borrowed amount through monthly payments of $666, commencing from January 2019. The First Shareholder Loan carries an annual interest rate of 4% per year, compounded annually and the principal amount and the interest thereon were scheduled to mature in January 2020. Pursuant to a side letter entered into in January 2021 by us and Mr. Leb, the First Shareholder Loan is scheduled to mature in January 2022. According to the terms of the Second Shareholder Loan, EWP Israel agreed to repay the borrowed amount, interest-free, within 36 months, or the Maturity Date. In the event repayment is not made by the Maturity Date, the Second Shareholder Loan will begin to carry an interest rate of 4% per annum. We are currently accruing interest on the loan amount, as we have not yet decided whether to repay the loan, as per the terms of the loan agreement. Pursuant to a side letter from Mr. Leb dated December 31, 2021, the repayment of the loan will depend on the Company’s financial condition and any demand to repay the loan will not be made prior to January 2023. The First Shareholder Loan principal was repaid in 2022. The accrued interest is classified as a current liability to a related party in our statement of financial position as of June 30, 2024 and as of December 31, 2023.

 

 

In addition, we previously received a variety of grants, including royalty and non-royalty bearing grants, and other commitments.

 

In 2013 we signed a loan agreement with the Management Committee of Jiangsu Changshu High-tech Development Zone, or the Committee, and with Changshu Shirat Enterprise Management Co. Ltd., or CS. The Committee provided a loan in the aggregate amount of RMB 3,977,700 (approximately $570,000) to EWP Suzhou. In order to repay the principal amount of the loan and interest accrued thereon, pursuant to the terms of the agreement, EWP Suzhou is scheduled to pay the Committee 3% of the net proceeds from commercialization of its future projects and products in addition to 5% annual interest, until the full amount is repaid. There have been no proceeds in China since 2013 and there are no expected significant proceeds from near future projects in China. In addition, EWP Suzhou is also obligated to pay to CS 5% of the net proceeds from commercialization of its future projects for a term of 10 years from the date of the agreement. For further information, see Note 16(b) to the audited consolidated financial statements included in our Annual Report.

 

Non-royalty bearing grants that we have received, and which we are not required to repay, include an AUD 75,000 (approximately $51,000) non-royalty bearing grant from the government of Queensland to support our operations and further growth in Australia, an EUR 50,000 (approximately $55,000) grant from the European Commission’s Horizon 2020 program, a $2,500 grant from Vital Voices Global Partnership to install certain equipment for the power station at the EDF EWP One Project, an EUR7,500 ($8,200) grant from MazeX program for marketing and business development in Portugal, a GBP 8,480 (approximately $10,800) grant from the Wohl Clean Growth Alliance, a GBP 103,993 ($132,000) grant from Innovate UK through the Energy Catalyst Round 8, an EUR 22,500 (approximately $24,900) from the European Union Regional Development Fund, a GREENinMED grant provided by the European Union under the ENI CBC Mediterranean Sea Basin Programme, and an EUR 17,885.70 (approximately $19,150) from Interreg Atlantic Area, European regional development fund [through?] its program Ports Towards Energy Self-Sufficiency.

 

Non-royalty bearing grants which we have been awarded but we have not yet fully received include a GBP 456,500 (approximately $580,000) grant approval from Innovate UK’s Energy Catalyst program Round 10, as part of a consortium led by Toshiba (U.K.) and Aquatera Ltd and an EUR 178,500 (approximately $197,000) from the EU Horizon 2020 Research and Innovation Programme as part of the ILIAD consortium (of which we received an advanced payment of EUR 86 thousand in 2022).

 

We also were approved a royalty-bearing grant in the aggregate amount of up to NIS 492,000 (approximately $135,000) that we have received from the Israeli Ministry of Energy pursuant to a financing agreement. We are committed to pay royalties at a rate of 5% from commercialization of the project’s know-how and intellectual property up to the cumulative amount of the grant, linked to the Israeli consumer price index, and with the addition of the interest rate of the Accountant General of Israel.

 

Current Outlook

 

We have financed our operations to date primarily through proceeds from the sale of our Common Shares in our initial public offering on Nasdaq First North, from private issuances of shares by EWP Israel prior to our initial public offering on Nasdaq First North, from the public offering of our ADSs on Nasdaq Capital Market, from shareholder loans and from the receipt of various government grants. We have incurred losses and generated negative cash flows from operations since the inception of EWP Israel in 2011. From inception through June 30, 2024, we have not generated any significant revenue, and we do not expect to generate significant revenues from the sale of our products in the near future.

 

As of June 30, 2024, our cash and cash equivalents were $7.42 million and our short term bank deposits were $0.06 million. Based upon our currently expected level of operating expenditures, we expect that our existing cash and cash equivalents will be sufficient to fund operations through at least the next 12 months period from the date of this Report of Foreign Private Issuer on Form 6-K. However, we will require significant additional financing in future periods to continue to fully execute our business plan.

 

 

In addition, our operating plans may change as a result of many factors that may currently be unknown to us, and we may need to seek additional funds sooner than planned. Our future capital requirements will depend on many factors, including:

 

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our research and development efforts, including our ability to finish research and development projects or product development within the allotted or expected timeline;

 

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the cost, timing and outcomes of seeking to commercialize our products in a timely manner;

 

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the announcement of new products, new developments, services or technological innovations by our competitors in the traditional and renewable energy industry;

 

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global policies and feed-in-tariffs for wave energy;

 

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licensing costs and timelines;

 

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our ability to generate cash flows;

 

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economic weakness, including inflation, or political instability in particular foreign economies and markets;

 

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government regulation in our industry, and more specifically, the costs and timing of obtaining regulatory approval or permits to launch our technology in various geographical markets; and

 

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the costs of, and timing for, strengthening our manufacturing agreements for production of our WEC technology.

 

Until we can generate significant revenues, if ever, we expect to satisfy our future cash needs through our existing cash, cash equivalents and short-term deposits, the net proceeds from the past offerings, loans, or debt or equity financings. We cannot be certain that additional funding will be available to us on acceptable terms, if at all. If funds are not available, we may be required to delay, reduce the scope of, or eliminate research or development plans for, or commercialization efforts with respect to, one or more applications of our products and projects in our pipeline. This may raise substantial doubts about our ability to continue as a going concern.

 

Trend information

 

Our operating results are influenced by general economic conditions, including macroeconomic factors, as well as the overall economic activity within the industries and markets we serve. Furthermore, the ongoing macroeconomic, business, and operational uncertainties, coupled with the current inflationary environment and elevated interest rates, could persist as challenges in the future. These challenges could impact our ability to secure funding and may also influence the spending decisions of our customers. 

 

Critical Accounting Estimates 

 

The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, obligations, income and expenses during the reporting periods. For a comprehensive discussion of our critical accounting estimates please see “Item 5. Operating and Financial Review and Prospects - Management’s Discussion and Analysis of Financial Condition and Results of Operations – E. Critical Accounting Estimates” section in our Annual Report.

 

 

9

Exhibit 99.3

 

Eco Wave Power Announces H1 Results; Unveils Data from its Grid-Connected
Project That Won the EDF Pulse Award, Kicks-Off Portugal Project, and Announces
Green Light for its Shares Repurchase Program

 

The Company also Announced its Support for the Marine Energy Technologies Acceleration
Act, federal legislation in the U.S. that would invest $1 billion to advance marine energy
toward full scale commercialization

 

Stockholm, Sweden, August 29^th, 2024 – Eco Wave Power Global AB (publ) (“Eco Wave Power” or the “Company”) (Nasdaq: WAVE), a leading, publicly traded onshore wave energy technology company that has 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, 2024 and provide a corporate update.

 

Management Commentary

 

Operations

 

During the first half of 2024, Eco Wave Power continued to demonstrate resilience by decreasing its operating expenses by 1.6% compared to the first half of 2023, ending the quarter with $7.48 million in cash and in short term bank deposits. At the same time, we have achieved the following milestones:

 

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In Israel, the EWP-EDF One Project in the Port of Jaffa, has been delivering clean energy from the waves to the Israeli National electrical grid, since its connection to the grid in the end of 2023. An opening ceremony for the project is due to be held in December 2024. During the second quarter of 2024, Eco Wave Power and EDF Renewables IL have continued their analysis of the project’s operational results; and results from the second quarter of operation continue to be encouraging, both in terms of improvement of the energy generation results and the decrease in down-time for the power station. For example, downtime has decreased from 4% in April to 0% in June 2024. In addition, the Company was able to get closer to its energy generation target and show 17% improvement from the month of April 2024 to the month of June 2024.

 

Also, Eco Wave Power is pleased to announce that the Company and its pioneering Israeli project won the 2024 EDF Pulse Awards in the category of “Developing a Profitable Decentralized Energy System.” Eco Wave Power was awarded during a ceremony conducted by Luc Rémont, Chairman & Chief Executive Officer of Électricité de France SA in the EDF Pavilion, constructed in partnership with the Paris 2024 Olympic Games. This significant recognition comes in parallel to the productive collaboration between Eco Wave Power and EDF Renewables IL (a subsidiary of Électricité de France), which jointly own and operate the wave energy project in Israel (the EWP-EDF One Project).

 

●

At the Port of Los Angeles in April 2024, we officially announced that the Company signed a strategic co-investment agreement with Shell International Exploration and Production Inc. (“Shell MRE”) for the implementation of our first U.S-based project, while we also moved forward with the licensing process. In August, 2024, we received a green light from the relevant departments in the Port of Los Angeles for our project’s engineering plans, and other documents submitted. The Port of Los Angeles and AltaSea at the Port of LA are planning to submit the full package of documents for a final license from the Army Corps of Engineers in the upcoming week. As soon as we receive the last approval from the Army Corps of Engineers, we expect a very short implementation time of approximately six months for our first U.S. project.

 

In conjunction with the upcoming wave energy demonstration project to be implemented by Eco Wave Power and Shell MRE at the Port of Los Angeles, U.S. House representatives Nanette Barragán (CA-44) and Suzanne Bonamici (OR-01) introduced the Marine Energy Technologies Acceleration Act, legislation that would involve the appropriation of $1 billion towards advancing marine energy toward full scale commercialization. Representative Barragán has already visited Eco Wave Power’s installation site and was impressed by the abundant possibilities for wave energy implementation in California and in the United States.

 

 

The Marine Energy Technologies Acceleration Act would provide unprecedented levels of funding to the Department of Energy’s Waterpower Technologies Office for demonstration projects, research and development, detailed resource potential mapping, workforce development, and more efficient permitting processes.

 

The legislation is cosponsored by Representatives Suzanne Bonamici (Ore.), Ed Case (Hawaii), Rashida Tlaib (Mich.), Kevin Mullin (Calif.), Val Hoyle (Ore.), Troy Carter (La.), Salud Carbajal (Calif.), and Anne Kuster (NH).

 

The full text of the bill can be found here.

 

●

In Portugal, Eco Wave Power officially kicked-off the first MW-scale wave energy project. In July 2024, Inna Braverman, Founder and Chief Executive Officer of Eco Wave Power and Eco Wave Power’s engineering team, have arrived for a meeting and an official site visit with Administração dos Portos do Douro, Leixões e Viana do Castelo, S.A (APDL), and other relevant stakeholders for the official kickoff of the Company’s first MW-scale wave energy project , to be located in the city of Porto in Portugal.

 

Following the meeting with APDL, Eco Wave Power’s engineering team held a site visit to the breakwater and the room underneath the breakwater (“The Gallery”), where Eco Wave Power’s energy conversion equipment will be installed, and later opened to the public as a first of its kind wave energy museum and education centre.

 

During the site visit, Eco Wave Power’s team met with local subcontractors and manufacturers to choose the preferred entities that will take part in the execution of this innovative project.

 

The first MW project is being executed in line with a 20MW Concession Agreement entered with APDL and is planned to be followed by a gradual expansion to the whole 20MW of installed capacity.

 

In March 2024, the Company received the final approval necessary for the commencement of the construction works of its first commercial-size project in Porto (TURH license) from APDL Port Authority and in turn issued a performance bond to APDL , meant to solidify the Company’s commitment for the construction of the first commercial wave energy project within a two-year period.

 

Eco Wave Power’s project is well in line with the renewable energy plan of the Government of Portugal, as in July 2024 Portugal announced that it aims to generate 85% of its annual electricity production from renewable sources by 2030, compared to 61% in 2023, one of the highest ratios in Europe.

 

 

ADS repurchase

 

●

In December 2023, Eco Wave Power submitted an official request to the Financial Supervisory Authority of Sweden (“SFSA”), to receive authorization for the Company’s repurchase of American Depositary Shares (“ADS”) representing up to 10 percent of the total number of shares in the Company, which is the maximum amount permitted by Swedish Law.

 

In August 2024, the SFSA responded that in its opinion, the ADS are not considered equivalent to shares in accordance with Chapter 19 of the Swedish Companies Act. As a result, the Company should be able to repurchase ADS, in accordance with Swedish law.

 

Any repurchases will be made through open market purchases, privately-negotiated transactions, or otherwise in compliance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.

 

In accordance with this decision, Eco Wave Power will enter into relevant agreements with a bank for the execution of any necessary steps related to the buyback.

 

CEO Commentary:

 

In the first half of 2024, we were able to keep the low level of expenses and thus demonstrate our resilience by decreasing our operating expenses by 1.6% compared to the first half of 2023, ending the year with USD 7.48 million in cash and in short term bank deposits.

 

There was also progress across all key projects, including significant improvements in the operational results of the EWP-EDF One project, at the Port of Jaffa in Israel, which reached 0% downtime for the very first time, and got closer by 17% to its energy generation targets. The company and the project also received the prestigious EDF Pulse Award by Électricité de France (a multinational electric utility company and the largest renewable energy producer in Europe), which we believe will lead to an extended collaboration with the EDF group.

 

We have also submitted the final licensing documents for the installation of the project at the Port of Los Angeles, and in parallel representatives Nanette Barragán (CA-44) and Suzanne Bonamici (OR-01) introduced the Marine Energy Technologies Acceleration Act,- a proposed legislation that would appropriate $1 billion to advance marine energy toward full scale commercialization. Representative Barragán has already visited Eco Wave Power’s installation site and was impressed by the abundant possibilities for wave energy implementation in California and in the United States.

 

The Marine Energy Technologies Acceleration Act would provide unprecedented levels of funding to the Department of Energy’s Waterpower Technologies Office for demonstration projects, research and development, detailed resource potential mapping, workforce development, and more efficient permitting processes.

 

We are grateful that representatives Barragán and Bonamici recognized the vast potential of wave energy in meeting the U.S. renewable energy targets and promoting economic growth through the blue economy.

 

The U.S. is becoming a global leader on climate initiatives, and this new federal legislation further demonstrates the U.S. leadership across the world. We believe that wave energy has massive potential, and we will soon be demonstrating our pioneering technology at the Port of Los Angeles and showcasing that wave energy can be a significant force in combating climate change and powering our communities with clean, reliable energy sourced from the endless power of the ocean.

 

And finally, we held an official kick off for our first MW-scale project in Portugal, which included a site visit and meeting with relevant subcontractors to advance with the project.

 

 

We believe that this will be the first wave energy project in the world to show significant energy production from the power of the waves. I truly believe that this revolutionary project will position Eco Wave Power as a leading wave energy developer and serve as a significant milestone towards the commercialization of our wave energy technology globally. We would like to thank the Municipality of Porto and APDL for being true wave energy pioneers by enabling and supporting the development of an innovative, environmentally friendly energy generation technology which will serve to lower the port’s carbon footprint while creating new workplaces and an innovative industry in Portugal.

 

At the same time, we have reinforced our engineering team by adding two members, and are in the process of establishing a U.S. based sales and business development team to enable the Company to enter into deals for turnkey wave energy projects which we believe will, in turn, significantly boost the Company’s revenues, in addition to the revenues that the Company has been generating from feasibility studies and other related engineering services.

 

The expansion of the engineering team in Israel and the new business development and sales team in the U.S. are well on their way, and we believe that such an enhanced company structure will lead to positive financial results and accelerated project delivery.

 

Lastly, we are excited to update that we have recently received a green light to commence our American Depository Shares repurchase plan, and we are working on setting the appropriate arrangement with a bank to pursue such opportunity. We believe that our ADS repurchase plan will allow our leadership to have a greater scope to act and have the opportunity to improve the Company’s capital structure, driving greater shareholder value and improving the investment value of our company.

 

Eco Wave Power is entering a very exciting period, which will involve an expansion of our team, expansion of the Company’s operational projects and strategic partnerships.

 

I would like to reiterate our gratitude to our shareholders for joining us on this exciting journey. We look forward to sharing more exciting progress!

 

First Half 2024 Financial Overview

 

●

Operating expenses were $1.35 million, down by 1.6% from the same period last year.

 

●

Research and development (R&D) expenses were $320,000 compared to $323,000 in the same period last year. Research and development costs decreased mainly due to reduction in in payroll and related expenses in the first half of 2024. We expect 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 $137,000 compared to $193,000 in the same period last year. This decrease was primarily attributable to a decrease in payroll and related expenses in the first half of 2024. 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 $894,000 compared to $854,000 in the same period last year. This increase was primarily attributable to a $23 thousand increase in legal services and an increase in travel expenses. 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 $32,000 was generated mainly from a grant and 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, 2024 was $30,000.

 

 

●

Operating loss was $1.35 million compared to $1.37 million in the same period last year.

 

●

Net financial income was $331,000, compared to $512,000 in the same period last year. This decrease was primarily attributable to a decrease in foreign currency exchange gains.

 

●

Net loss was $1,018,000, or $0.02 per basic and diluted share, compared to a net loss of $859,000, or $0.02 per basic and diluted share in the same period last year.

 

●

The Company ended the period with $7.48 million in cash and cash equivalents and in short-term bank deposits.

 

Conference Call and Webcast Information

 

The Chief Executive Officer of Eco Wave Power, Inna Braverman and the Chief Financial Office, Aharon Yehuda, will host a conference call to discuss the financial results and outlook on Tuesday, September 3, 2024, at 5 PM Eastern time.

 

●

The dial-in numbers for the conference call are 877-545-0523 (toll-free) or 973-528-0016 (international). If requested, please provide participant access code: 660735

 

●

The event will be webcast live, available at: https://www.webcaster4.com/Webcast/Page/2922/51203

 

●

You may submit your questions for the call until September 2, 2024 Eastern time at 12:00 pm via email to: aharon@ecowavepower.com

 

A replay will be available by telephone approximately four hours after the call’s completion until Monday, September 16, 2024. You may access the replay by dialing 877-481-4010 from the U.S. or 919-882-2331 for international callers, using the Replay ID 51203. The archived webcast will also be available on the investor relations section of the Company’s website.

 

About Eco Wave Power Global AB (publ)

 

Eco Wave Power is a leading onshore wave energy 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 owns and operates a grid connected wave energy project in Israel, with co-investment from EDF Renewables IL and the Israeli Energy Ministry, which recognized Eco Wave Power’s technology as “Pioneering Technology.”  The Israeli wave energy project marks the first grid-connected wave energy system in Israel’s history.

 

Eco Wave Power will soon commence the installation of its third and fourth wave energy projects, in the Port of Los Angeles, and in Portugal. The Company also holds a total projects pipeline of 404.7MW.

 

Eco Wave Power received funding from the European Union Regional Development Fund, Innovate UK and the European Commission’s Horizon 2020 framework program and was honored with 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

 

Aharon Yehuda, CFO

Aharon@ecowavepower.com

+97235094017

 

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 the prospective approval of requisite licenses for its U.S-based wave energy project at the Port of Los Angeles and expected implementation time should the licenses be granted, the Company’s belief that the wave energy project in Portugal will be the first to show significant wave energy production, the finalization of construction plans and implementation time of the project in Portugal, that the project in Portugal is expected to be the Company’s first MW scale project that may position the Company as a leading wave energy developer, the Company’s plans and intentions regarding a share repurchase program and that it may improve the Company’s capital structure, driving greater shareholder value and improving the investment value of the Company, the Company’s belief that its expansion in its engineering, business development and sales teams may lead to improved financial results, certain projected positive trends in the green energy market, the potential impact of potential federal legislation regarding marine energy subsidies, the belief that wave energy has massive potential, the belief that the Company will soon be demonstrating its pioneering technology at the Port of Los Angeles and showcasing that wave energy can be a significant force in combating climate change and powering communities with clean, reliable energy sourced from the ocean. 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, 2023, filed with the SEC on March 28, 2024, 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 2024				December 31 2023
		In USD thousands
Assets
CURRENT ASSETS:
Cash and cash equivalents			7,421				4,281
Short term bank deposits			-				4,102
Restricted short-term bank deposits			61				63
Trade receivables			14				202
Other receivables and prepaid expenses			103				108
TOTAL CURRENT ASSETS			7,599				8,756
NON-CURRENT ASSETS:
Property and equipment, net			591				636
Right-of-use assets, net			43				90
Investments in a joint venture accounted for using the equity method			490				527
TOTAL NON-CURRENT ASSETS			1,124				1,253
TOTAL ASSETS			8,723				10,009
Liabilities and equity
CURRENT LIABILITIES:
Loans from related party			992				974
Current maturities of long-term loan			94				62
Accounts payable and accruals:
Trade			66				50
Other			1,007				957
Short term lease liabilities			38				87
TOTAL CURRENT LIABILITIES			2,197				2,130
NON-CURRENT LIABILITIES:
Long-term loan			45				78
TOTAL NON-CURRENT LIABILITIES			45				78
TOTAL LIABILITIES			2,242				2,208
EQUITY:
Common shares			98				98
Share premium			23,121				23,121
Foreign currency translation reserve			(2,575	)			(2,275	)
Accumulated deficit			(13,995	)			(12,994	)
Capital and reserves attributable to parent company shareholders			6,649				7,950
Non-Controlling interest			(168	)			(149	)
TOTAL EQUITY			6,481				7,801
TOTAL LIABILITIES AND EQUITY			8,723				10,009

 

 

Eco Wave Power Global AB (publ)

CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited)

 

		Three months ended								Six months ended
		June 30								June 30
		2024				2023				2024				2023
		In USD Thousands
OPERATING EXPENSES
Research and development expenses			(143	)			(113	)			(320	)			(323	)
Sales and marketing expenses			(72	)			(117	)			(137	)			(193	)
General and administrative expenses			(486	)			(457	)			(894	)			(854	)
Other income			28				4				32				9
Share of net loss of a joint venture accounted for using the equity method			(17	)			(5	)			(30	)			(10	)
TOTAL OPERATING EXPENSES			(690	)			(688	)			(1,349	)			(1,371	)
OPERATING LOSS			(690	)			(688	)			(1,349	)			(1,371	)
Financial expenses			(12	)			(14	)			(27	)			(26	)
Financial income			211				366				358				538
FINANCIAL INCOME (EXPENSES) - NET			199				352				331				512
NET LOSS			(491	)			(336	)			(1,018	)			(859	)
ATTRIBUTABLE TO:
The Parent Company shareholders			(481	)			(336	)			(1,001	)			(859	)
Non-controlling interests			(10	)			-				(17	)			-
			(491	)			(336	)			(1,018	)			(859	)
			In USD
LOSS PER COMMON SHARE – BASIC AND DILUTED			(0.01	)			(0.01	)			(0.02	)			(0.02	)
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

   

 

8

 

v3.24.2.u1

Document And Entity Information	6 Months Ended
	Jun. 30, 2024
Document Information Line Items
Entity Registrant Name	Eco Wave Power Global AB (publ)
Document Type	6-K
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001846715
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity File Number	001-40554

v3.24.2.u1

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 7,421	$ 4,281
Short term bank deposits		4,102
Restricted short-term bank deposits	61	63
Trade receivables	14	202
Other receivables and prepaid expenses	103	108
TOTAL CURRENT ASSETS	7,599	8,756
NON-CURRENT ASSETS:
Property and equipment, net	591	636
Right-of-use assets, net	43	90
Investments in a joint venture accounted for using the equity method	490	527
TOTAL NON-CURRENT ASSETS	1,124	1,253
TOTAL ASSETS	8,723	10,009
CURRENT LIABILITIES:
Loans from related party	992	974
Current maturities of long-term loan	94	62
Accounts payable and accruals:
Trade	66	50
Other	1,007	957
Short term lease liabilities	38	87
TOTAL CURRENT LIABILITIES	2,197	2,130
NON-CURRENT LIABILITIES:
Long-term loan	45	78
TOTAL NON-CURRENT LIABILITIES	45	78
TOTAL LIABILITIES	2,242	2,208
EQUITY:
Common shares	98	98
Share premium	23,121	23,121
Foreign currency translation reserve	(2,575)	(2,275)
Accumulated deficit	(13,995)	(12,994)
Capital and reserves attributable to parent company shareholders	6,649	7,950
Non-Controlling interest	(168)	(149)
TOTAL EQUITY	6,481	7,801
TOTAL LIABILITIES AND EQUITY	$ 8,723	$ 10,009

v3.24.2.u1

Condensed Consolidated Statements of Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
OPERATING EXPENSES
Research and development expenses	$ (143)	$ (113)	$ (320)	$ (323)
Sales and marketing expenses	(72)	(117)	(137)	(193)
General and administrative expenses	(486)	(457)	(894)	(854)
Other income	28	4	32	9
Share of net loss of a joint venture accounted for using the equity method	(17)	(5)	(30)	(10)
TOTAL OPERATING EXPENSES	(690)	(688)	(1,349)	(1,371)
OPERATING LOSS	(690)	(688)	(1,349)	(1,371)
Financial expenses	(12)	(14)	(27)	(26)
Financial income	211	366	358	538
FINANCIAL INCOME - NET	199	352	331	512
NET LOSS	(491)	(336)	(1,018)	(859)
ATTRIBUTABLE TO:
The Parent Company shareholders	(481)	(336)	(1,001)	(859)
Non-controlling interests	(10)		(17)
NET LOSS	$ (491)	$ (336)	$ (1,018)	$ (859)
LOSS PER COMMON SHARE – BASIC AND DILUTED (in Dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES USED IN CALCULATION OF LOSS PER COMMON SHARE (in Shares)	44,394,844	44,394,844	44,394,844	44,394,844

v3.24.2.u1

Condensed Consolidated Statements of Loss (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Profit or loss [Abstract]
LOSS PER COMMON SHARE – DILUTED	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)

v3.24.2.u1

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Comprehensive Loss [Abstract]
LOSS FOR THE PERIOD	$ (491)	$ (336)	$ (1,018)	$ (859)
ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS EXCHANGE DIFFERENCES ON TRANSLATION OF FOREIGN OPERATIONS	(96)	102	111	(131)
ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS
EXCHANGE DIFFERENCES ON TRANSLATION TO PRESENTATION CURRENCY	26	(421)	(413)	(347)
OTHER COMPREHENSIVE LOSS FOR THE PERIOD	(70)	(319)	(302)	(478)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD	(561)	(655)	(1,320)	(1,337)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD IS ATTRIBUTABLE TO:
The Parent Company shareholders	(556)	(655)	(1,301)	(1,337)
Non-controlling interests	(5)		(19)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD	$ (561)	$ (655)	$ (1,320)	$ (1,337)

v3.24.2.u1

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Number of common shares	Share premium	Foreign currency translation reserve	Accumulated deficit	Total for Company's shareholders	Non- controlling interest	Total
Balance at Dec. 31, 2022	$ 98	$ 23,121	$ (2,061)	$ (11,284)	$ 9,874		$ 9,874
Balance (in Shares) at Dec. 31, 2022	44,394,844
Loss for the period				(859)	(859)		(859)
Other comprehensive loss			(478)		(478)		(478)
Total comprehensive loss for the period			(478)	(859)	(1,337)		(1,337)
Balance at Jun. 30, 2023	$ 98	23,121	(2,539)	(12,143)	8,537		8,537
Balance (in Shares) at Jun. 30, 2023	44,394,844
Balance at Dec. 31, 2023	$ 98	23,121	(2,275)	(12,994)	7,950	$ (149)	7,801
Balance (in Shares) at Dec. 31, 2023	44,394,844
Loss for the period				(1,001)	(1,001)	(17)	(1,018)
Other comprehensive loss			(300)		(300)	(2)	(302)
Total comprehensive loss for the period			(300)	(1,001)	(1,301)	(19)	(1,320)
Balance at Jun. 30, 2024	$ 98	$ 23,121	$ (2,575)	$ (13,995)	$ 6,649	$ (168)	$ 6,481
Balance (in Shares) at Jun. 30, 2024	44,394,844

v3.24.2.u1

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS - OPERATING ACTIVITIES:
Net loss	$ (1,018)	$ (859)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	85	80
Interest expenses	22	45
Interest income	(177)	(220)
Foreign exchange gain on cash and cash equivalents	(72)
Share of loss of a joint venture	30	10
Changes in operating assets and liabilities
Decrease in trade receivables	188
(Increase) decrease in other receivables and prepaid expenses	(3)	(92)
Increase in accounts payable and accruals	104	28
Net cash used in operating activities	(841)	(1,008)
CASH FLOWS – INVESTING ACTIVITIES:
Proceeds from short term deposits	3,998
Investments in short-term deposits		(1)
Interest received on short term bank deposits	209	14
Investment in a joint venture	(8)	(41)
Purchase of property and equipment	(8)	(6)
Net cash provided by (used in) investing activities	4,191	(34)
CASH FLOWS - FINANCING ACTIVITIES:
Principal elements of lease payments	(47)	(31)
Interest elements of lease payments	(2)	(2)
Net cash used in financing activities	(49)	(33)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,301	(1,075)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	4,281	5,295
EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS	(161)	(169)
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 7,421	$ 4,051

v3.24.2.u1

General Information	6 Months Ended
	Jun. 30, 2024
General Information [Abstract]
GENERAL INFORMATION	NOTE 1 - GENERAL INFORMATION:   Eco Wave Power Global AB (publ) (“the Parent Company” or together with its subsidiaries “the Company” or “the Group”) is a Swedish public limited company formed on March 27, 2019 and registered at the Swedish Companies Registration Office on April 17, 2019. The Company’s American Depositary Shares (“ADSs”) are traded on the Nasdaq Capital Market (the “Nasdaq”) in the United States. The Company’s corporate identity number is 559202-9499 and its address is Strandvägen 7A, 114 56 Stockholm, Sweden. Unless expressly indicated otherwise, all amounts are shown in thousands of U.S. dollars (“USD”).   The Group’s headquarters are located in Israel. In October 2023, Israel was attacked by a terrorist organization and entered a state of war. As of the date of these interim consolidated financial statements, the war in Israel is ongoing and continues to evolve. The intensity and duration of the war is difficult to predict, as such are the war’s economic implications on the Company’s operational and financial performance. The Company considered the impact of the war and determined that there were no material adverse impacts on the interim consolidated financial statements, including related significant estimates made by management, for the period ended June 30, 2024.

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Basis for Preparation	6 Months Ended
	Jun. 30, 2024
Basis for Preparation [Abstract]
BASIS FOR PREPARATION	NOTE 2 - BASIS FOR PREPARATION   The Company’s Unaudited condensed consolidated financial statements as of June 30, 2024 and 2023 and for the interim six month periods then ended (hereinafter: “The financial information for the interim period”) were prepared in accordance with International Accounting Standard 34: “Interim Financial reporting” (hereinafter: “IAS 34”). The financial information for the interim period is presented in a condensed form and does not include all of the information and disclosures that are required within the framework of annual financial statements. The financial information for the interim period should be read in conjunction with the annual financial statements for the year ended December 31, 2023 and the accompanying notes thereto, which comply with the International Financial Reporting Standards as issued by the International Accounting Standard Board.   Estimates and judgments   The preparation of the Condensed Interim Financial Information requires management to exercise judgment and use significant accounting estimates and assumptions. These affect the application of the Company’s accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ materially from these estimates. In preparing these Condensed Interim Financial Information, the significant accounting judgments and the uncertainties associated with key sources of estimates are consistent with those in the consolidated annual financial statements for the year ended December 31, 2023.

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Material Accounting Policies	6 Months Ended
	Jun. 30, 2024
Material Accounting Policies [Abstract]
MATERIAL ACCOUNTING POLICIES	NOTE 3 - MATERIAL ACCOUNTING POLICIES   General   The principal accounting policies and calculation methods, which have been implemented in the preparation of the financial information for the interim period, are consistent with those that were implemented in the preparation of the Group’s annual financial statements for the year ended December 31, 2023.   New International Financial Reporting Standard:   IFRS 18, Presentation and disclosure in Financial Statements   In April 2024, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 18, Presentation and disclosure in Financial Statements, which replaces International Accounting Standard (“IAS” )1, Presentation of Financial Statements. The new standard is a result of the IASB’s Primary Financial Statements project, which is aimed at improving comparability and transparency of communication in financial statements. While a number of sections have been brought forward from IAS 1, with limited wording changes, IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including the specified totals and subtotals. It also requires disclosure of management defined performance measures and includes new requirements for aggregation and disaggregation of financial information. In addition, certain amendments have been made to IAS 7, Statements of Cash flows. IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after January 1, 2027, but earlier application is permitted and must be disclosed.   IFRS 18 will apply retrospectively. Comparative periods in both interim and annual financial statements will need to be restated.   The Company is currently assessing the new requirements of IFRS 18.

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Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2024
Fair Value of Financial Instruments [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS   As of June 30, 2024 and December 31, 2023, the financial instruments of the Group consist of non-derivative assets and liabilities (primarily working capital items, deposits and loans). With regard to non-derivative assets and liabilities, given their nature, the fair value of the financial instruments included in the consolidated statement of financial position is generally close or identical to their carrying amount.

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Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
General	General The principal accounting policies and calculation methods, which have been implemented in the preparation of the financial information for the interim period, are consistent with those that were implemented in the preparation of the Group’s annual financial statements for the year ended December 31, 2023.
New International Financial Reporting Standard	New International Financial Reporting Standard: IFRS 18, Presentation and disclosure in Financial Statements In April 2024, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 18, Presentation and disclosure in Financial Statements, which replaces International Accounting Standard (“IAS” )1, Presentation of Financial Statements. The new standard is a result of the IASB’s Primary Financial Statements project, which is aimed at improving comparability and transparency of communication in financial statements. While a number of sections have been brought forward from IAS 1, with limited wording changes, IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including the specified totals and subtotals. It also requires disclosure of management defined performance measures and includes new requirements for aggregation and disaggregation of financial information. In addition, certain amendments have been made to IAS 7, Statements of Cash flows. IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after January 1, 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively. Comparative periods in both interim and annual financial statements will need to be restated. The Company is currently assessing the new requirements of IFRS 18.

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