Eco Wave Power AB (publ)(WAVE) - 2025 Q2 - Quarterly Report

Condensed Consolidated Financial Statements This section presents the company's financial position, performance, cash flows, and equity changes for the interim period Condensed Consolidated Statements of Financial Position The company's total assets decreased from $10,682 thousand at December 31, 2024, to $9,371 thousand at June 30, 2025, primarily driven by a reduction in cash and cash equivalents, while total liabilities saw a slight increase and total equity experienced a notable decline Financial Position Summary (USD thousands) | Metric | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :-------------------------------- | :------------------------------ | :-------------------------------- | | Assets | | | | Cash and cash equivalents | 6,458 | 7,845 | | Total Current Assets | 8,069 | 9,445 | | Total Non-Current Assets | 1,302 | 1,237 | | TOTAL ASSETS | 9,371 | 10,682 | | Liabilities | | | | Total Current Liabilities | 2,389 | 2,239 | | Total Non-Current Liabilities | 73 | 143 | | TOTAL LIABILITIES | 2,462 | 2,382 | | Equity | | | | Total Equity | 6,909 | 8,300 | Condensed Consolidated Statements of Loss The company reported a significant increase in net loss for both the three and six months ended June 30, 2025, compared to the prior year, primarily due to higher operating expenses and a substantial shift from net financial income to net financial loss Statements of Loss Summary (USD thousands) | Metric (USD thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating Expenses | (823) | (690) | (1,588) | (1,349) | | Operating Loss | (823) | (690) | (1,588) | (1,349) | | Financial (Loss) Income - Net | (564) | 199 | (304) | 331 | | NET LOSS | (1,387) | (491) | (1,892) | (1,018) | | LOSS PER COMMON SHARE – BASIC AND DILUTED | (0.03) | (0.01) | (0.04) | (0.02) | - Net loss for the six months ended June 30, 2025, increased by 85.85% to $(1,892) thousand from $(1,018) thousand in the same period of 2024[6] - Financial (loss) income - net shifted from a gain of $331 thousand in the six months ended June 30, 2024, to a loss of $(304) thousand in the same period of 2025[6] Condensed Consolidated Statements of Comprehensive Loss The total comprehensive loss for the six months ended June 30, 2025, was $(1,364) thousand, a slight increase from $(1,320) thousand in the prior year, despite a positive other comprehensive gain in 2025 compared to a loss in 2024 Statements of Comprehensive Loss Summary (USD thousands) | Metric (USD thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | LOSS FOR THE PERIOD | (1,387) | (491) | (1,892) | (1,018) | | Other Comprehensive Gain (Loss) for the Period | 636 | (70) | 528 | (302) | | TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | (751) | (561) | (1,364) | (1,320) | - Other comprehensive gain for the six months ended June 30, 2025, was $528 thousand, a significant improvement from a loss of $(302) thousand in the same period of 2024[8] Condensed Consolidated Statements of Changes in Equity Total equity decreased from $8,300 thousand at January 1, 2025, to $6,909 thousand at June 30, 2025, primarily driven by the net loss for the period and treasury share repurchases, partially offset by other comprehensive income Statements of Changes in Equity Summary (USD thousands) | Equity Component (USD thousands) | Balance at January 1, 2025 | Changes in Six Months Ended June 30, 2025 | Balance at June 30, 2025 | | :------------------------------- | :------------------------- | :---------------------------------------- | :----------------------- | | Common shares | 102 | - | 102 | | Share premium | 25,845 | - | 25,845 | | Treasury shares | (50) | (27) | (77) | | Foreign currency translation reserve | (2,368) | 533 | (1,835) | | Accumulated deficit | (15,071) | (1,877) | (16,948) | | Capital and reserves attributable to parent company shareholders | 8,458 | (1,371) | 7,087 | | Non-Controlling interest | (158) | (20) | (178) | | TOTAL EQUITY | 8,300 | (1,391) | 6,909 | - Accumulated deficit increased by $1,877 thousand during the six months ended June 30, 2025, reaching $(16,948) thousand[10] - Treasury shares increased by $27 thousand due to repurchases during the period[10] Condensed Consolidated Statements of Cash Flows The company experienced a significant decrease in cash and cash equivalents, primarily due to an increased net cash outflow from operating activities and a substantial reduction in cash provided by investing activities compared to the prior year Statements of Cash Flows Summary (USD thousands) | Cash Flow Activity (USD thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | (1,474) | (841) | | Net cash provided by investing activities | 93 | 4,191 | | Net cash used in financing activities | (111) | (49) | | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,492) | 3,301 | | CASH AND CASH EQUIVALENTS - END OF PERIOD | 6,458 | 7,421 | - Net cash used in operating activities increased by 75.27% from $(841) thousand in 2024 to $(1,474) thousand in 2025[12] - Net cash provided by investing activities decreased significantly from $4,191 thousand in 2024 to $93 thousand in 2025, largely due to the absence of proceeds from short-term deposits in 2025[12] Notes to the Consolidated Financial Statements This section provides additional information and explanations regarding the accounting policies, estimates, and specific items presented in the condensed consolidated financial statements Note 1 - General Information Eco Wave Power Global AB (publ) is a Swedish public limited company with its American Depositary Shares (ADSs) traded on the Nasdaq Capital Market, with headquarters in Israel, which has been in an ongoing state of war, though management determined no material adverse impacts on the interim financial statements for the period ended June 30, 2025 - Eco Wave Power Global AB (publ) is a Swedish public limited company, with ADSs traded on the Nasdaq Capital Market[14] - The Group's headquarters are in Israel, which is experiencing an ongoing state of war, including a recent conflict with Iran[15] - Management determined no material adverse impacts on the interim consolidated financial statements for the period ended June 30, 2025, due to the war[15] Note 2 - Basis for Preparation The condensed consolidated interim financial statements are unaudited and prepared in accordance with IAS 34, and should be read in conjunction with the company's annual financial statements as of December 31, 2024, as they do not include all disclosures necessary for a fair presentation in conformity with full IFRS Accounting Standards - Interim financial statements are unaudited and prepared in accordance with IAS 34[16] - These statements do not include all disclosures required by full IFRS Accounting Standards[16] - They should be read in conjunction with the annual financial statements for December 31, 2024[16] Estimates and judgments The preparation of interim financial information requires management to make significant accounting estimates and judgments consistent with annual reporting - Preparation of interim financial information requires management to exercise judgment and use significant accounting estimates and assumptions[17] - Significant accounting judgments and uncertainties associated with key estimates are consistent with those in the consolidated annual financial statements for the year ended December 31, 2024[17] Note 3 - Material Accounting Policies The principal accounting policies and calculation methods applied in the preparation of the interim financial information are consistent with those used in the Group's annual financial statements for the year ended December 31, 2024 - Principal accounting policies and calculation methods for the interim period are consistent with those used in the annual financial statements for December 31, 2024[18] New International Financial Reporting Standard: IFRS 18 The IASB has issued IFRS 18, which introduces new requirements for financial statement presentation and disclosure, effective from January 1, 2027 - The IASB issued IFRS 18, 'Presentation and disclosure in Financial Statements,' replacing IAS 1, effective for reporting periods beginning on or after January 1, 2027, with earlier application permitted[19] - IFRS 18 introduces new requirements for presentation within the statement of profit or loss, disclosure of management-defined performance measures, and aggregation/disaggregation of financial information[19] - The Company is currently assessing the new requirements of IFRS 18, which will apply retrospectively[20][21] Note 4 - Fair Value of Financial Instruments As of June 30, 2025, and December 31, 2024, the fair value of the Group's non-derivative financial instruments, which primarily consist of working capital items, deposits, and loans, is generally close or identical to their carrying amount - The Group's financial instruments primarily consist of non-derivative assets and liabilities (working capital items, deposits, and loans)[22] - The fair value of these financial instruments is generally close or identical to their carrying amount as of June 30, 2025, and December 31, 2024[22]