Eco Wave Power (WAVE) Q3 2024 earnings summary

Executive summary

• Achieved a 10% reduction in overall expenses from Q2 to Q3 2024, driven by lower insurance and consulting costs, and increased grants.

• Maintained a strong cash position of $7.04 million in cash and short-term deposits at the end of Q3 2024.

• Made significant progress on key projects in Israel, Los Angeles, Taiwan, and Portugal.

• Achieved major milestones: first project sale in Taiwan, 83% energy target reached in Israel, U.S. federal permit secured for Los Angeles, and share buyback program commenced.

Financial highlights

• General and administrative expenses decreased by $63,000 and R&D expenses by $29,000 quarter over quarter.

• Operating loss reduced by $73,000 sequentially from Q2 to Q3 2024.

• Cash and short-term deposits decreased by only $447,000 year-to-date.

• Net loss was $1.57 million ($0.03 per share) compared to $1.05 million ($0.02 per share) in the same period last year.

• Net financial income declined to $394,000 from $802,000 year-over-year, mainly due to lower FX gains.

Outlook and guidance

• Installation of the first onshore wave energy project in the U.S. set for completion by end of Q1 2025.

• Anticipates enhanced Q4 revenues from the Shell MRE co-investment agreement and Taiwan project sale.

• Expects that securing three to four turnkey deals will lead to profitability.

• R&D and G&A expenses projected to rise with commercial scale projects in Portugal and the U.S.

• Optimism about continued renewable energy momentum despite U.S. political uncertainties.