The Company is Gearing Towards the Official Opening of its
Project in Israel, while Also
Creating a Strong U.S Presence through its Upcoming Pilot at the
Port of Los Angeles, and its
Progress in Promoting the First Onshore Wave Energy Implementation
in the State of New Jersey. At the
Same Time, Eco Wave Power is Reinforcing its European Presence with
Planned Projects in Portugal and
Spain, with a Clear Goal of Moving
Towards Larger Scale Deployments.
STOCKHOLM, Sept. 28, 2022 /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,
today provided a corporate update and reported its financial
results as of and for the six months ended June 30, 2022.
Management Commentary
"Eco Wave Power continues to advance important initiatives, with
2022 being a year thus far of executing new projects, broadening
our project pipeline in Europe and
penetrating the U.S. market, with new initiatives in the
State of California and the
State of New Jersey," commented
Inna Braverman, Founder and Chief
Executive Officer. "We have previously proven our technology in
Gibraltar and are now advancing
the build out of new deployments at Jaffa Port in Israel and the Port of Los Angeles in the State of California, while also moving forward
with new and exciting Concession Agreements in Portugal, Spain and additional areas of interest, with a
clear goal of reaching large scale deployments in the near
future."
Continued Braverman, "Our approach is well-aligned with global
initiatives, including legislation and renewable energy mandates,
such as the recent $369 billion
Renewable Energy Bill Initiative by the U.S. Government (The
Inflation Reduction Act of 2022). According to the U.S. Energy
Information Administration, wave energy off the American coasts
could have generated the equivalent of about 66% of all the
electricity generated across the country in 2020. I have been
discussing the positive shift that we believe we are able to bring
to the energy ecosystem at recent events, including the UN Ocean
Conference, the New York Climate Week, the CODE conference in
Los Angeles and the Atlantic 'Next
Scientific Revolution' Conference, while simultaneously meeting
with forward-thinking legislators, seeking to integrate wave energy
in their state's respective renewable energy policies. Interest is
growing, which we believe enables Eco Wave Power to promote new
projects faster, enter into new Concession Agreements, and reduce
legislation related barriers. As a result, we are increasingly
confident in our ability to introduce wave energy as an innovative,
exciting and viable renewable energy source."
Pipeline Development Update
Eco Wave Power has demonstrated continued progress expanding its
presence in its core markets of interest, currently being its
country of origin, Israel, the
U.S. and Europe. This includes a
gearing up towards the opening of its first grid connected wave
energy project in Israel, and
progress towards its first deployment in the U.S., in parallel with
advancements in Portugal coupled
with plans for further deployments in Spain and other locations of interest. As of
2022, Eco Wave Power holds a project pipeline of up to 327.7 MW,
which is expected to grow in the upcoming year.
- Significant Development Progress at Jaffa: In
August 2022, Eco Wave Power
officially commenced real conditions test runs of its EWP-EDF One
wave energy pilot project at the Port of Jaffa in Tel Aviv, Israel. During the testing, which is
conducted for the purpose of examining the operation of the
mechanical and hydraulic subsystems of the project, the Eco Wave
Power floaters were lowered to the water and tested for the very
first time, resulting in a green light for the next phases of the
project, which includes grid connection works by the Israeli
Electrical Company ("IEC') and testing of the overall system, to be
followed by full operation. Once testing and final works are
completed, including the grid-connection, the Company will have an
official launch of its power station marking the first time in
Israel's history that electricity
produced by the power of waves will be transmitted to the national
electric grid. On August 23, 2022,
Eco Wave Power announced that the Israeli Electric Authority
("IEA") has set an official Feed-in Tariff ("FIT") for the EWP-EDF
One project. With the FIT in place, the IEC commenced operations to
officially connect the EWP-EDF One wave energy project to
Israel's energy grid.
- First U.S. Deployment Advances in Los Angeles: Eco Wave Power's energy
conversion unit, formerly deployed in Gibraltar, is in transit to AltaSea's 35-acre
campus located at the Port of Los
Angeles, the nation's busiest seaport, set to arrive in
early October 2022. The AltaSea pilot
station will be the first U.S. location for Eco Wave Power's
technology and is part of Eco Wave Power's increased focus on
bringing its pioneering wave energy technology to the U.S. and
expanding its worldwide presence.
- Progress Towards First of its Kind Legislation in the
State of New Jersey: The
Company has worked closely with New Jersey State Assemblyman
Robert Karabinchak who announced in
January 2022 his intent to introduce
new legislation to bolster wave energy as the next, up-and-coming
renewable energy source, recognizing this technology's incredible
potential. Assemblyman Karabinchak has said that the State can aim
to include wave energy in its Energy Master Plan and develop a
streamlined process for its deployment along New Jersey's coast. This action will help
New Jersey become the first U.S.
state or territory to have a commercial wave energy proof of
concept. In line with the announcement, in June 2022, Assemblyman Karabinchak introduced
Bill A4483, which calls for the utility board to create a
commercialization and deployment plan and to offer financial
incentives to companies and port owners for executing wave energy
power stations. On September 22,
2022, the bill passed the Assembly Committee.
- Eco Wave Power believes that the $369
billion in energy security and climate change investments
from the Inflation Reduction Act of 2022, combined with the
Company's recent progress in the states of California and New
Jersey, will serve as a significant boost to the Company's
commercialization plans for the U.S.
- New Agreements in Europe: In April
2022, Eco Wave Power entered into a Concession Agreement
with Port Adriano on the island of Mallorca, Spain, for the potential construction of a
wave energy power plant of up to 2 MW. The agreement expands Eco
Wave Power's presence in Europe
and will help Spain to achieve its
aggressive goals for renewable power, leveraging its significant
coastline capacity. In addition, in June
2022, Eco Wave Power announced plans for a 1 MW Project in
Halki Island, Greece.
First Half 2022 Financial Overview
- Revenues for the six months ended June
30, 2022, were $26,000
compared to $31,000 in the same
period last year, with revenue related to feasibility study
services in Asia. The Company is
building out a pipeline of ancillary technology services that it
may provide to its customers and other parties, such as other
companies and research institutions, in addition to the Company's
wave energy conversion ("WEC") technology. These services currently
include feasibility studies for potential clients of WEC
technology.
- Operating expenses were $2.1
million, up 64% in the same period last year.
-
- Research and development expenses were $635,000 compared to $355,000 in the same period last year. Research
and development costs increased due to a non-recurring loss of
$278,000 pertaining to a disposal of
the floater mechanisms of the Gibraltar wave energy array, due to the
relocation of the Gibraltar Conversion Unit to the Port of
Los Angeles. The floater
mechanisms of the Gibraltar power
station were sent to steel recycling, while the conversion unit was
fully overhauled and refurbished and shipped to Los Angeles. Eco Wave Power intends to develop
and supply new and upgraded floaters for its planned pilot in
AltaSea's premises in the Port of Los
Angeles, to optimally meet the local marine conditions.
- Sales and marketing expenses were $300,000 compared to $220,000 in the same period last year.
- General and administrative expenses were $1,186,000 compared to $715,000 in the same period last year. This
increase was mainly the result of a $269,000 increase in insurance costs as well as
an increase in professional services expenditures associated with
the capital reorganization in 2021.
- Other income of $15,000 was
generated 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, 2022 was $10,000, which
was primarily attributable to management fees.,
- Operating loss was $2.1 million
compared to $1.3 million in the same
period last year.
- Net financial income was $681,000, compared to $45,000 in the same period last year. This
increase was primarily attributable to an increase in income from
foreign exchange differences due to the increased value of the USD
against the SEK.
- Net loss was $1.4 million, or
$0.03 per basic and diluted share,
compared to a net loss of $1.2
million, or $0.04 per basic
and diluted share in the same period last year.
- The Company ended the period with $12.3
million in cash and cash equivalents, compared to
$14.6 million as of December 31, 2021.
Capital Markets
As previously announced, Eco Wave Power has completed the
transition to a single exchange for trading in its securities. The
last day of trading for the Company's common shares on Nasdaq First
North was June 13, 2022, and
beginning on June 14, 2022, Eco Wave
Power's only listed securities are its American Depositary Shares
("ADSs") which trade on the Nasdaq Capital Market under the ticker
"WAVE".
Conference Call and Webcast Information
A conference call to discuss the financial results will be held
the following morning Wednesday, September
28, 2022, at 9 a.m. Eastern
time. Inna Braverman, CEO,
will host the call.
- The dial-in numbers for the conference call are 888-506-0062
(toll-free) or 973-528-0011. If requested, please provide
participant access code: 234153.
- The event will be webcast live, available at:
https://www.webcaster4.com/Webcast/Page/2922/46561.
- A replay will be available by telephone approximately two hours
after the call's completion until Wednesday,
October 12, 2022. You may access the replay by dialing
877-481-4010 from the U.S. or 919-882-2331 for international
callers and using the Replay Conference ID 46561. The archived
webcast will also be available on the Company's investor relations
section of its website.
Individual Meeting Information
In an effort to increase relations with institutional investors,
management has dedicated time to hosting individual meetings with
portfolio managers and analysts on September
29, 2022. If you are interested in scheduling a meeting with
management, please contact wave@fnkir.com.
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 is currently finalizing the 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" and will
soon commence the installation of its newest pilot in AltaSea's
premises in the Port of Los
Angeles. The Company also holds concession agreements for
commercial installations in Europe
and has a total projects pipeline of 327.7 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 ADSs are traded on the Nasdaq Capital Market
under the ticker "WAVE".
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
Aharon Yehuda, CFO
aharon@ecowavepower.com
Investor contact:
Matt Chesler, FNK IR
+1 646 809 2183
wave@fnkir.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. Words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" and similar expressions
or variations of such words are intended to identify
forward-looking statements. For example, Eco Wave Power is using
forward-looking statements when it discusses that: the Company is
building out a pipeline of ancillary technology services that it
may provide to its customers and other parties; that the Company is
advancing the build out of new deployments in Jaffa, Israel, the Port of Los Angeles and concession agreements in
Portugal and Spain, moving large scale deployments in the
near future; that the Inflation Reduction Act of 2022 will serve as
a significant boost to the Company's commercialization plans in
the United States; and that the
energy conversion unit in transit to AltaSea at the Port of
Los Angeles will arrive in early
October 2022. These forward-looking
statements and their implications are based on the current
expectations of the management of Eco Wave Power and are subject to
a number of factors and uncertainties that could cause actual
results to differ materially from those described in the
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,
2021 filed with the SEC, which is available on the on the
SEC's website, www.sec.gov.
Eco Wave Power Global
AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION (Unaudited)
|
|
June 30
2022
|
December 31
2021
|
|
|
|
In USD
thousands
|
Assets
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
|
12,320
|
14,621
|
Restricted short-term
bank deposits
|
|
74
|
70
|
Other receivables and
prepaid expenses
|
|
169
|
389
|
TOTAL CURRENT
ASSETS
|
|
12,563
|
15,080
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
Property and
equipment, net
|
|
785
|
1,194
|
Right-of-use assets,
net
|
|
65
|
101
|
Investments in a joint
venture accounted for using the equity method
|
|
404
|
272
|
TOTAL NON-CURRENT
ASSETS
|
|
1,254
|
1,567
|
TOTAL
ASSETS
|
|
13,817
|
16,647
|
|
|
|
|
Liabilities and
equity
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
long-term loans from related party
|
|
1,130
|
220
|
Current maturities of
other long-term loan
|
|
32
|
-
|
Accounts payable and
accruals:
|
|
|
|
Trade
|
|
54
|
46
|
Other
|
|
755
|
510
|
Current maturities of
lease liabilities
|
|
90
|
127
|
TOTAL CURRENT
LIABILITIES
|
|
2,061
|
903
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
Long-term
loans from related party, net of current maturities
|
|
-
|
882
|
Other long-term
loan
|
|
90
|
129
|
TOTAL NON-CURRENT
LIABILITIES
|
|
90
|
1,011
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
2,151
|
1,914
|
|
|
|
|
EQUITY:
|
|
|
|
Common
shares
|
|
98
|
98
|
Share
premium
|
|
23,121
|
23,121
|
Foreign currency
translation reserve
|
|
(1,739)
|
(103)
|
Accumulated
deficit
|
|
(9,814)
|
(8,383)
|
TOTAL
EQUITY
|
|
11,666
|
14,733
|
TOTAL LIABILITIES
AND EQUITY
|
|
13,817
|
16,647
|
|
|
|
|
Eco Wave Power Global AB
(publ)
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(Unaudited)
|
|
Six months
ended
|
|
|
June
30
|
|
|
2022
|
2021
|
|
|
In USD
thousands
|
REVENUES
|
|
26
|
31
|
COST OF
REVENUES
|
|
(22)
|
(27)
|
GROSS
PROFIT
|
|
4
|
4
|
OPERATING
EXPENSES
|
|
|
|
Research and
development expenses
|
|
(635)
|
(355)
|
Sales and marketing
expenses
|
|
(300)
|
(220)
|
General and
administrative expenses
|
|
(1,186)
|
(715)
|
Other
income
|
|
15
|
-
|
Share of net loss of a
joint venture
|
|
|
|
accounted for using
the equity method
|
|
(10)
|
-
|
TOTAL OPERATING
EXPENSES
|
|
(2,116)
|
(1,290)
|
|
|
|
|
OPERATING
LOSS
|
|
(2,112)
|
(1,286)
|
|
|
|
|
Financial
expenses
|
|
(31)
|
(36)
|
Financial
income
|
|
712
|
81
|
FINANCIAL INCOME
(EXPENSES) - NET
|
|
681
|
45
|
|
|
|
|
NET
LOSS
|
|
(1,431)
|
(1,241)
|
|
|
|
|
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/ewpg-holding-ab--publ-/r/eco-wave-power-presents-continued-operational-progress-and-reports-first-half-2022-financial-results,c3637097
The following files are available for download:
https://mb.cision.com/Main/18497/3637097/1631374.pdf
|
Release
|
View original
content:https://www.prnewswire.co.uk/news-releases/eco-wave-power-presents-continued-operational-progress-and-reports-first-half-2022-financial-results-301634996.html