Eco Wave Power AB (publ)(WAVE) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q1 2025, Ecowave Power recorded a net loss of $500,005, an improvement from $527,000 in the same period last year, reflecting ongoing cost discipline while supporting project development [2][6] - Operating expenses increased to $765,000 from $659,000 in Q1 2024, primarily due to growth in engineering and execution work related to projects in Los Angeles and Portugal [3] - Cash and short-term deposits as of March 31, 2025, were $8,800,000, down from $9,300,000 at the end of 2024, attributed to development stage spending [4] Business Line Data and Key Metrics Changes - In Los Angeles, the company moved from permitting to production, with a floater manufacturing agreement signed in April [6][7] - In Portugal, engineering designs were finalized, and groundwork has begun, with equipment procurement and installation expected later this year [7] - The AWP EDF-one installation at Jaffa Port achieved zero downtime in Q1, with successful testing of 10 floaters demonstrating an average power output of 13 kilowatts [8] Market Data and Key Metrics Changes - Partnerships in India and Taiwan reached new milestones, with a MOU in India setting the stage for site assessment and a sale agreement in Taiwan moving into detailed permitting [7][8] - The company anticipates a purchase order in Q2 from Bahad Petroleum in India [7] Company Strategy and Development Direction - The company is focused on maintaining a healthy balance sheet while advancing the commercialization of its Wave Energy technology [4] - An advisory board was established to strengthen governance and strategic direction, with Hilary Ackerman joining as the first member [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue investing in its global pipeline while preserving flexibility for new opportunities [6] - The company remains committed to building a diversified and resilient wave energy business, with ongoing R&D efforts aimed at reducing floater costs and streamlining installation [9] Other Important Information - The company expects to finalize floaters in Los Angeles by the end of Q2 2025 and is on track for a 2026 startup in Portugal [4][7] Q&A Session Summary Question: What are the updates on the projects in Los Angeles and Portugal? - The company has moved swiftly from permitting to production in Los Angeles, with a floater manufacturing agreement signed, and in Portugal, engineering designs have been finalized with groundwork underway [6][7] Question: How is the company managing its cash flow amid project developments? - The company reported a reduction in net loss and maintains a cash balance that allows for continued investment while managing development stage spending [2][4]