Eco Wave Power Global AB (publ)

Good morning and welcome to the EcoWave Power Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode, and if anyone should require operator assistance during this conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Aaron Yehuda, CFO at EcoWave. The floor is yours.

Thank you for the introduction, and thank you all for joining us for our quarterly webcast. Let's dive into updates. Over the first nine months of 2024, EcoWave's power has remained committed to prioritizing cost efficiency, and I'm pleased to share some positive results. From the second quarter to the third quarter of this year, we successfully reduced our overall expenses by 10% quarter over quarter. Here's how we achieved this. General and administrative expenses decreased by 63,000 US dollars. Research and development expenses were reduced by 29,000 dollars. These savings were driven by lower cost of all the director's and officer's insurance and reduced consulting fee. Additionally, we saw an increase in grants during the third quarter, which further supported our cost saving efforts. These measures led us to a 73,000 reduction in our operating loss quarter over quarter. Also, on a positive note, EcoWave Power entered into an agreement with Open Iron Bank to facilitate the buyback process, and in September 2024, the company commenced the repurchases of its ADSs and plans to continue such repurchase during the open trading window in November and December 2024. By the end of the third quarter, we maintain the solid financial position with $7.04 million in cash and short-term bond deposits. This reflects only a modest $447,000 decrease from year two. To summarize, we are proud to report that even as we are making significant progress across all of the company's key projects in Israel, Los Angeles, Taiwan, and Portugal, we have also achieved notable cost reductions that reflect our commitment to both operational excellence and strategic goals. That said, I now hand it over to Ina Bradman, Chief Executive Officer of EcoWave Power, to share more about our progress and outlook. Ina, please take it from here.

Thank you, Aaron. Dear shareholders, as we reflect on the first nine months of 2024, I'm proud to share the significant strides EcoWave Power has made in both financial management and project execution. Our focus on operational efficiency has enabled us to maintain a strong cash position of 7.04 million in cash and short-term bank deposits, while reducing operating expenses by 10% compared to the previous quarter. This year has been marked by remarkable progress across all our projects. In Israel, the EWP DF-1 project at the port of Jaffa achieved 0% downtime for the very first time in June 2024, a testament to the reliability of our technology. By September, the project reached 83% of its energy generation target, a 27% improvement over just three months, suppressing the average annual performance of our first grid-connected project, which was built in Gibraltar. The EcoWide Power project was built in collaboration with EDF Renewables IL, supported by the Chief Scientist of the Ministry of Energy, which recognized the company's technology as pioneering technology. and Tel Aviv Yaffa Municipality. In this unique project, for the very first time, electricity generated from sea waves is supplied to the national grid, a historic milestone in Israel's renewable energy journey. On December 5th, we will have an official opening ceremony of Israel's first wave energy power station in Jaffa port. This groundbreaking global project combines innovation, sustainability, and the fight against climate change. The event will include a formal cut-the-ribbon ceremony by Tel Aviv Mayor Ron Kuldari, followed by a reception at Warehouse 2 in Jaffa Port, with senior energy officials, investors, and strategic partners. The launch of Israel's first wave energy power plant is more than just a technological achievement. It's a powerful statement about the future we envision. This project at Jaffa Port represents a historic milestone in the global renewable energy journey. proving that wave energy can be viable, clean, and consistent source of electricity. We are proud to collaborate with EDF Renewables IL, Tel Aviv Municipality, and Atarim to place Israel at the forefront of wave energy innovation. Together, we are creating a new wave of possibilities in the fight against climate change. In the United States, we secured a major regulatory milestone, the final nationwide permit from the U.S. Army Corps of Engineers for our first wave energy project at in the Port of Los Angeles. This groundbreaking project will be the first onshore wave energy station in the U.S. with installation set for completion by the end of Q1 2025. These achievements also fulfill key milestones under our co-investment agreement with Shell MRE announced in April 2024. which is expected to enhance our fourth quarter revenues. Our global reach continues to grow with new opportunities. This year, we signed our first turnkey wave energy deal in Taiwan, a pivotal step in our strategy to sell wave energy projects to third parties. This agreement has sparked interest from other global players eager to replicate this success, and we believe this model will significantly boost our market presence and revenue potential. We anticipate that securing three to four similar deals will position EcoWave Power as the first profitable wave energy company worldwide, a game-changing achievement for an industry often viewed as resource intensive. To support this growth, we have expanded our leadership and engineering teams, including appointing a vice president of engineering and forming a U.S.-based sales and business development team to drive further expansion. We are also making strides to strengthen our capital structure through our American Depository Shares Repurchase Program. Initiated in September 2024 in collaboration with Oppenheimer, this program is set to continue during the open trading windows. We see this initiative as a strategic step toward enhancing shareholder value while providing the flexibility to execute on key priorities. On a legislative front, The introduction of the Marine Energy Technologies Acceleration Act by your representatives Nanette Baragon and Susan Bonamici represents a major milestone for the marine energy sector. This proposed legislation would allocate $1 billion to accelerate the commercialization of marine energy technologies, providing vital funding for demonstration projects, research, and workforce development. We are encouraged by Representative Baragon's support for our California installation and are optimistic that bipartisan recognition of the importance of renewable energy will continue to grow. While uncertainty exists around the Inflation Reduction Act under the incoming administration, we remain confident that states like California will lead the way in advancing clean energy initiatives. As we close out 2024, EcoWave Power is steadfast in its mission to revolutionize the renewable energy landscape. Our focus remains on executing strategic initiatives, driving global growth, and delivering sustained value for our shareholders. Thank you for your trust and unwavering support as we continue on this journey.

Thank you.

Thank you very much. This does conclude today's conference. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.