Eco Wave Power Global AB (publ)

Welcome to the Echo Wave Power Second Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. I would now like to turn the call over to your host, Aaron Yehuda. You may begin, sir. Thank you.

Good morning, everyone, and thank you for joining ECOWAS Power's second quarter earnings call. I'm Eron Yehuda, and I'll start with a brief overview of our financial results, followed by our CEO, Ina Brazman, who will provide an update on operations and strategic developments. Financial highlights of the third half of the year. Operating expenses for H1 2025 totaled $1.6 million, up by $239,000 from H1 2024. This increase reflects our continued investment in R&D, engineering teams, and project execution, including our US and Autoguard projects. R&D expenses increased 25% to US$399,000, driven primarily by our Portuguese project and threatening our engineering department. Sales and marketing expenses decreased by 123%. reflecting more efficient investor communication. General and administrative expenses rose 22% to $1.1 million, mainly due to payroll for new U.S. hires, for penalties and travel costs associated with project extension. Other income nearly doubled to $62,000, coming from technology demonstration services in Asia. Net loss for the third half of 2025 was 1.9 million US dollars, reflected growth, investment, and foreign exchange impact. We ended the period with $7.94 million in cash and short-term bank deposits, providing a strong foundation to fund ongoing projects and future goals. Despite significant progress across all project phases, our operating expenses have increased modestly, demonstrating our disciplined approach to scaling operations. We remain focused on delivering long-term value to shareholders while investing strategically in technology and global market extension. And now, I'll turn the call over to Ina Wagner, our CEO, to provide insights into our project progress and strategic initiative.

Thank you, Alon, and good morning, everyone. I'm pleased to share our achievements during the first half of 2025, which is a period marked by rapid execution, strategic growth, and expanding global presence. I would like to start by explaining our commercialization strategy. Our approach to commercialization of wave energy is multi-layered, designed to advance technology, demonstrate its value, and scale responsibly. First, we are building pilot projects in key markets. These pilots allow us to collect site-specific data, conduct R&D, and establish favorable regulatory frameworks, ensuring smooth entry into new markets while refining our technology for maximum performance. Second, we are advancing our Portugal megawatt-scale project, expected to operate with new continuous wave availability. This project will serve as a clear demonstration that in suitable locations, wave energy can deliver a stable and dense renewable supply, complementing solar and wind and supporting grid integration on a large scale. Third, we are actively working on the reduction of the cost of our floaters. which is expected to lower the levelized cost of energy and allow us to offer competitive pricing while delivering continuous electricity. By combining technological innovation with cost efficiency, we are positioning Wave Energy to become a mainstream renewable solution. Beyond traditional energy applications, Wave Energy has the potential to power intensive operations, including AI infrastructure and coastal data centers. By providing stable, near-continuous electricity, Wave Energy can support high-demand computing environments while reducing reliance on carbon-intensive sources. This highlights the versatility and strategic importance of our technology, empowering the next generation of digital innovation. Turning to current updates, in the United States, at Altafinda Port of LA, we completed the installation of the floaters and the onshore energy conversion unit for our first U.S. Wave Energy project. This is particularly exciting because we announced the co-investment agreement with Shell in April 2024, received a final license from the Port of Belém in March 2025, and just six months later, the pilot station is fully installed. This demonstrates that EcoWave Power executes projects efficiently while maintaining high technical standards. In Portugal, preparations continue for the first Megawackel project under our contested agreement. With wave availability expected to be approximately 90%, this project will demonstrate almost continuous energy generation, validating wave energy's potential as a reliable and dense renewable energy source. In Asia, our expansion continues with strategic initiatives in India and Taiwan. In India, we signed a memorandum of understanding with Fortune 500 petroleum to explore wave energy deployment at Mumbai oil terminal. The collaboration begins with site assessments and regulatory preparation, laying the groundwork for a pilot project. In Taiwan, we are working with IK International Ocean Energy, advancing local floater production and permitting milestones. IK has already successfully passed the first round qualification for a wave energy tender, positioning us strongly for the next project phase. Back home in Israel, the EWP DS-1 project at Jaffa Port continues to serve as a key R&D and benchmarking site. Data collected here confirms that wave energy can generate significantly more power per site footprint than other renewable energy sources, providing an important foundation for global expansion. In Africa, we signed the feasibility study agreement with Africa Great Future Development for a potential project in South Africa. With over 2,800 kilometers of coastline and pressing need for energy diversification, this market holds considerable long-term potential. We are also proud to participate in the Atlantic Wave Energy Sustainable Deployment Initiative, a 2.45 million euro European project that will accelerate commercial-scale wave energy adoption across the Atlantic region. Finally, I want to highlight our leadership strengths. In July, Hilary Ackermann joined our board of directors with over 30 years of experience in energy and finance, including senior roles at Vistra Energy, Goldman Sachs, and UBS. Hilary brings valuable expertise to support our global commercialization strategy and strength in corporate governance. Overall, the first half of 2025 shows that EcoWave Power is delivering on its promises, advancing pilots, completing installation, securing regulatory approval, forming strategic partnerships, and expanding globally. With our strong financial foundation of $7.94 million in cash and short-term deposits and a growing product pipeline, we are well-positioned to bring wave energy to mainstream renewable energy markets, delivering innovative, sustainable, and high-value solutions for our shoulders and partners.

Thank you for your continued support. The meeting has now concluded. Thank you for joining and have a pleasant day.