Eco Wave Power Global AB (publ)

Greetings, and welcome to the EcoWave Power third quarter 2025 earnings call. At this time, all participants are on a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Aaron Yehuda, CFO of EcoWave Power. Sir, the floor is yours.

Thank you. Good morning, and thank you, everyone, for joining EcoWebPower's Q3 2025 earning call. I'm Eroni Huda, the CFO of the company. I'll begin with a brief overview of our financial results, followed by our CEO, Ina Braviman, who will discuss operational progress and strategic developments. For the nine months ended September 30, 2025, operating expenses totaled $2.48 million, reflecting continued investment in our US, our Portugal, and Asia projects, all of which are critical to our long-term commercial roadmap. R&D expenses rose to $591,000, supporting engineering efforts and new project development. Sales and marketing expenses increased to 293,000 US dollars, primarily driven by the successful launch of our US pilot project at the Port of Los Angeles in September. General and administrative expenses totaled 1.61 million US dollars, reflecting staffing, professional fees, and other operational costs to support our expanding footprint. As a result, net loss for the nine months increased to $2.89 million, primarily due to higher operating expenses and foreign exchange impact. On a quarter-over-quarter basis, we achieved meaningful improvements in efficiency and financial discipline. Our net loss declined 28% to $996,000, driven by targeted investment and bigger costs and tighter cost management. R&D expenses decreased by 12% and G&A by 5%, demonstrating efficiency gain across all functions. Other income nearly doubled, and financial expenses declined by 81%, mainly due to lower foreign exchange losses, further strengthening our financial position. We ended the quarter with a solid cash position of $6.85 million, providing the resources needed to execute near-term milestones, advance project construction, and support our global expansion. These results underscored our disciplined financial approach, balancing growth investments with efficiency, as we advance multiple revenue-generating opportunities worldwide. As the global electricity demand accelerates, driven by the growth of energy-intensive sectors such as AI, data centers, and manufacturing, EcoWave Power is well positioned to deliver scalable, reliable, and cost-effective wave energy solutions. Our investments this quarter in the U.S., in Portugal, in Taiwan, and in India are laying the foundation for long-term commercial deployment and revenue growth in markets representing tens of billions of dollars in renewable energy potential. Finally, recognition by time is one of the best inventions of 2025. Alongside national media coverage of our U.S. project launch reinforces the strength of our technology, our brand, and our position as a leader in wave energy innovation. With a strong financial foundation, disciplined management, and growing global visibility, EcoWave Power is entering its next phase of commercialization from a position of strength. I now turn the call over to our CEO, Ina Braviman, to share more about our projects, progress, and strategic initiatives.

Thank you, Aaron, and good morning, everyone. The first quarter of 2025 has been one of the most exciting and defining periods in EcoWave Power's history. We've reached major milestones that not only validate our technology, but also reinforce our position as a global leader in wave energy. The highlight of the quarter was, without a doubt, the launch of our first U.S. project at the Port of Los Angeles. This marks a turning point, not only for EcoWave Power, but for the entire wave energy industry. Our installation at the Port of Los Angeles gained nationwide visibility, including coverage on Good Morning America and recognition by Time Magazine as one of the best inventions of 2025. That level of attention reflects just how ready the world is for wave energy and how far we've come in bringing it from concept to reality. The project also showcases the reliability and scalability of our patented floaters while highlighting our deep commitment to collaboration and community. We were proud to work with Altasea, Shell Marine Renewable Energy Program, and several small family-owned and woman-owned businesses, a partnership model that truly represents what clean innovation should look like, sustainable, inclusive, and impactful. Beyond the United States, our international expansion continues at full speed. In Taiwan, our partnership with IK International Ocean Energy led to the first ever commercial port tender for wave energy testing, paving the way for long-term deployment opportunities in Asia. In India, our collaboration with Bharat Petroleum gives us a foothold in one of the world's largest and most promising clean energy markets. And in Europe, we're preparing for Portugal's first megawatt-scale wave energy plant, fully aligned with the country's renewable energy roadmap and the EU's ambitious decarbonization goals. Back home in Israel, our EWP EDF-1 project in Jaffa ports continues to strengthen our R&D capabilities, enabling advanced testing, calibration, and performance optimization that fits directly into all future deployments. Meanwhile, in Africa, we're advancing feasibility studies and laying the groundwork for the continent's emerging marine energy sector. From a financial standpoint, we're proud to be growing from a position of strength and discipline. We entered the quarter with $6.85 million in cash and short-term deposits, providing a solid foundation to continue executing our global expansion plans. While operating expenses rose modestly by about $65,000 compared to Q2, These were targeted investments supporting our ongoing projects and strategic marketing around the U.S. launch. Importantly, our net loss decreased by 28% quarter over quarter, reflecting improved efficiency and disciplined cost management. Also, our financial expenses declined by 81%, largely due to reduced foreign exchange losses, a clear sign that our financial controls are working effectively as we expand internationally. Looking ahead, we see an incredibly promising horizon for eco-wave power. Global electricity demand is accelerating faster than ever, driven by the rise of artificial intelligence, data centers, and advanced manufacturing. This surge in demand requires new, reliable, renewable energy sources, and wave energy is uniquely positioned to fill that gap. It's clean, consistent, and can operate 24-7, complementing solar and wind power to create a balanced, resilient energy mix. EcoWave power technology is more than an environmental solution. It is a strategic answer to the world's urgent need for clean, abundant, and cost-effective electricity. We're proud of how far we've come and even more excited about what's ahead. Thank you to our shareholders, partners, and employees for your continued trust and support. Together, we're not just building a company, we're building a new category of renewable energy. Thank you.

Thank you, ladies and gentlemen. This does conclude today's call. You may disconnect your lines at this time, and we thank you for your participation.