The Company Announces 1,076% Revenues Increase, 36% Decrease in Net Loss, an Investment Agreement with a
The Annual Report, which contains Eco Wave Power's audited consolidated financial statements, can be accessed on the
Management Commentary
- The economic landscape in 2023 was marked by unpredictability and numerous challenges. At the year's start, both consumers and economists braced for a possible recession. Despite these worries, Eco Wave Power demonstrated resilience by increasing its revenues by 1076% (not including funds from grants and other sources) and decreasing its net loss by 36% (compared to 2022), ending the year with
$8.4 million in cash and deposits.
- In 2023, Eco Wave Power won the Energy Catalyst Round 10 Innovate
UK grant (as part of a consortium including Toshiba, Hitachi,University of Manchester , theUniversity of Exeter , theQueen Mary University of London and others) to design a pilot microgrid project for remote islands. The total amount of the grant isGBP 1,499,644 (approximately$1.9 million ), out of which Eco Wave Power's share will beGBP 456,500 (approximately$580 thousand ). Additional funds were received from other grants, such as the GREENinMED grant funded by theEuropean Union , theILIAD Consortium grant as part of theEuropean Union's Green Deal, and from the Energy Catalyst round 8 program of InnovateUK .
- Although the Company's cash burn rate substantially decreased, Eco Wave Power demonstrated significant and instrumental progress with all its key projects:
- In
Israel , we successfully connected theEWP-EDF One Project in thePort of Jaffa to the national electrical grid, marking the first time in the history ofIsrael that wave energy officially connected to the National Electrical Grid, through a Power Purchase Agreement. Since then, the project has been supplying electricity harnessed from the power of the waves to the Israeli national electric grid. An opening ceremony for the project will be held as soon as situation inIsrael enables it.
- At the
Port of Los Angeles , inJanuary 2024 , we signed a strategic co-investment agreement with a majorEnergy Company (full name disclosed in the 20F report), for the implementation of our firstU.S -based project while we are also moving forward with the licensing process. We have submitted our comprehensive project engineering plans to the port authorities and have formally requested the final required licenses from both thePort of Los Angeles and theU.S. Army Corps of Engineers . As soon as licenses are received, we expect a very short implementation time of around 6 months for our firstU.S. project. In addition, in earlyOctober 2023 , the Governor ofCalifornia ,Gavin Newsom , signed into lawCalifornia Senate Bill 605 ("SB 605"), landmark legislation for wave energy inthe United States . We believe that SB 605 underscores the potential of wave energy to offer both economic and environmental advantages, and it is anticipated to facilitate the progression of our project while also fostering the development of other prospective initiatives across the country.
- In
Portugal , we received the final approval necessary for the commencement of the construction works of our first commercial-size project inPorto (TURH license) fromAPDL Port Authority . As a result, we have issued a performance bond to APDL, meant to solidify our commitment for the construction of the first commercial wave energy project within a 2-year period. We believe this will be the first wave energy project in the world to show significant energy production from the power of the waves.
- In 2023, Eco Wave Power also conducted several feasibility studies that enabled us and our clients to explore new markets for wave energy implementation. Among such studies, we have performed a
U.S. feasibility study forShell MRE, a feasibility study for installing our wave energy technology on offshore gas drilling platform forChevron Corporation , a feasibility study ordered byJesa Group for a commercial project inMorocco , and a feasibility study and detailed project planning performed forRogan Associates for a commercial scale project inGreece .
- In
December 2023 , Eco Wave Power submitted an official request to theFinancial Supervisory Authority of Sweden ("SFSA"), to receive an authorization for the repurchase of 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. The Company plans to proceed with the repurchase action as soon as such approval is granted.
CEO commentary:
The economic landscape in 2023 was marked by unpredictability and numerous challenges. At the year's start, both consumers and economists braced for a possible recession. When faced with such challenges, we, at
Although the Company's burn rate of cash has decreased substantially, we were able to achieve significant milestones, such as the grid connection of our
While Eco Wave Power had an eventful year, in the financial markets, clean energy stocks, including WAVE Stock, did not perform well, as we believe high interest rates and lagging efforts to combat climate change have impacted the sector.
According to CNN,
Even considering the above, we strongly believe that with the recovery in the economic landscape, and other positive initiatives, such as The Biden administration's sweeping Inflation Reduction Act (which since its passage, announced more that 270 new clean energy projects, with
In fact,
I would like to finish by saying that as the founder and CEO of Eco Wave Power, and one of the largest shareholders of WAVE stock, I am disappointed by the performance of the WAVE stock on the financial market (the company's market cap is currently below its cash position). However, at the same time, I would like to say that since the incorporation of the company, none of the founders of the company have sold any shares as we believe strongly in the Company, and I am very pleased to share that we believe the Company is financially stable and resilient, and has enough funding, expertise, and support from strategic partners to procced with the execution of its upcoming projects in the
I believe in Eco Wave Power's team, in Eco Wave Power's technology, and in the global ambition to fight climate change. As a result, we are looking forward to receiving the
I am looking forward to an amazing 2024, filled with performance and operational progress!
2023 Financial Overview
● Revenues for the year ended
● Operating expenses were
- Research and development ("R&D") expenses decreased by
$379 thousand , or 42%, to$519,000 compared to$898,000 in 2022. Although our R&D expenses have significantly decreased during 2023, we expect our R&D expenses to materially increase due to the finalization of the EWP-EDF One project, the planned implementation of our firstU.S. project in thePort of Los Angeles , and the implementation of our first commercial scale project inPortugal .
- Sales and marketing expenses decreased by
$86 thousand , or 18%, to$375,000 compared to$461,000 in 2022. This decrease was primarily attributable to a$53 thousand decrease in sales and marketing activities and a reduction in payroll expenses.
- General and administrative expenses decreased by
$495 thousand , or 22%, to$1,764,000 compared to$2,259,000 in 2022. This decrease was mainly attributable to a$206 thousand decrease in the Director and Officer insurance premium, a$54 thousand decrease in legal expenses, a$84 thousand decrease in investor relations consultants costs and a$97 thousand decrease in other services.
- Other income of
$17,000 was generated mainly from management fees in a joint venture.
- Share of net loss of the
EWP EDF One Project accounted for using the equity method was$19,000 .
● Operating loss decreased by
● Net financial income was
● Net loss decreased by
● The Company ended the period with
Conference Call and Webcast Information
The Chief Executive Officer of Eco Wave Power,
** The dial-in numbers for the conference call are 888-506-0062 (toll-free) or 973-528-0011 (international).
If requested, please provide participant access code: 230160
** The event will be webcast live, available at: https://www.webcaster4.com/Webcast/Page/2922/50269
A replay will be available by telephone approximately four hours after the call's completion until
About
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
Eco Wave Power will soon commence the installation of its newest pilot in AltaSea's premises in the
The Company also holds concession agreements for commercial installations in
Eco Wave Power received funding from the
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@ecowavepower.com
+97235094017
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
| ||
| Note | 2023 | 2022 |
|
| in USD thousands |
Assets |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
| 4,281 | 5,295 |
Short term bank deposits | 5 | 4,102 | 5,000 |
Restricted short term bank deposits | 6 | 63 | 63 |
Trade receivables |
| 202 | - |
Other receivables and prepaid expenses | 15a | 108 | 161 |
TOTAL CURRENT ASSETS |
| 8,756 | 10,519 |
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
Property and equipment, net | 7 | 636 | 722 |
Right-of-use assets, net | 8 | 90 | 166 |
Investments in a joint venture accounted for using the equity method | 9 | 527 | 510 |
TOTAL NON-CURRENT ASSETS |
| 1,253 | 1,398 |
TOTAL ASSETS |
| 10,009 | 11,917 |
|
|
|
|
Liabilities and equity |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Loans from related party | 10 | 974 | 941 |
Current maturities of other long-term loan | 11 | 62 | 32 |
Accounts payable and accruals: |
|
|
|
Trade | 15b | 50 | 75 |
Other | 15b | 957 | 733 |
Current maturities of lease liabilities | 8 | 87 | 78 |
TOTAL CURRENT LIABILITIES |
| 2,130 | 1,859 |
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
Other long-term loan | 11 | 78 | 96 |
Lease liabilities, net of current maturities | 8 | - | 88 |
TOTAL NON-CURRENT LIABILITIES |
| 78 | 184 |
|
|
|
|
COMMITMENTS | 16 |
|
|
|
|
|
|
TOTAL LIABILITIES |
| 2,208 | 2,043 |
|
|
|
|
EQUITY: | 12 |
|
|
Common shares |
| 98 | 98 |
Share premium |
| 23,121 | 23,121 |
Foreign currency translation reserve |
| (2,275) | (2,061) |
Accumulated deficit |
| (12,994) | (11,284) |
Capital and reserves attributable to parent company shareholders |
| 7,950 | 9,874 |
Non-controlling interest |
| (149) | - |
TOTAL EQUITY |
| 7,801 | 9,874 |
TOTAL LIABILITIES AND EQUITY |
| 10,009 | 11,917 |
|
|
|
|
CONSOLIDATED STATEMENTS OF LOSS
|
| Year ended | ||
| Note | 2023 | 2022 | 2021 |
|
| in USD thousands | ||
REVENUES | 15d | 306 | 26 | 31 |
COST OF REVENUES |
| (59) | (22) | (27) |
GROSS PROFIT |
| 247 | 4 | 4 |
OPERATING EXPENSES |
|
|
|
|
Research and development expenses | 15e | (519) | (898) | (670) |
Sales and marketing expenses | 15f | (375) | (461) | (485) |
General and administrative expenses | 15g | (1,764) | (2,259) | (1,909) |
Other income |
| 17 | 28 |
|
Share of net loss of a joint venture |
|
|
|
|
accounted for using the equity method |
| (19) | (21) | (10) |
TOTAL OPERATING EXPENSES |
| (2,660) | (3,611) | (3,074) |
|
|
|
|
|
OPERATING LOSS |
| (2,413) | (3,607) | (3,070) |
|
|
|
|
|
Financial expenses | 15h | (55) | (59) | (69) |
Financial income | 15h | 602 | 765 | 792 |
FINANCIAL INCOME (EXPENSES) - NET |
| 547 | 706 | 723 |
|
|
|
|
|
NET LOSS |
| (1,866) | (2,901) | (2,347) |
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO: |
|
|
|
|
The parent company shareholders |
| (1,710) | (2,901) | (2,347) |
Non-controlling interests |
| (156) | - | - |
|
| (1,866) | (2,901) | (2,347) |
|
|
|
|
|
|
| in USD | ||||
LOSS PER COMMON SHARE - BASIC AND DILUTED |
| (0.04) | (0.07) | (0.06) | ||
|
|
|
|
| ||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES USED IN CALCULATION OF LOSS |
|
|
|
| ||
PER COMMON SHARE |
| 44,394,844 | 44,394,844 | 39,832,861 | ||
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