WAVE

Good day, everyone. Welcome to the Eco Wave Power first quarter 2026 earnings call. At this time, all participants have been placed on a listen-only mode. It is now my pleasure to turn the floor over to your host, Aharon Yehuda, the CFO of Eco Wave Power. The floor is yours.

Thank you. Good morning, everyone, and thank you for joining Eco Wave Power's first quarter 2026 earnings call. Turning to our financial results. During the first quarter of 2026, we continued advancing our global project portfolio while maintaining disciplined cost management across the organization. Operating expenses for the quarter were approximately $682,000, representing an 11% decrease compared to the first quarter of 2025. The reduction was primarily driven by lower research and development, sales and marketing, and general administrative expenses. Research and development expenses decreased to approximately $140,000 compared to $181,000 during the same period last year.

Sales and marketing expenses were approximately $71,000 compared to $77,000 in the prior year period, while general and administrative expenses decreased to approximately $499,000 from $539,000 last year. Operating loss improved year-over-year, decreasing to approximately $682,000 compared to $765,000 during the same period in 2020. Other income remained relatively stable at approximately $52,000 compared to $54,000 during the same period last year, and was primarily driven from technology demonstration activity as well as management fees from a joint venture. Net loss for the quarter was approximately $695,000 compared to approximately $505,000 during the same period last year.

The change was primarily attributable to a foreign exchange fluctuation, including the appreciation of the Swedish krona and the new Israeli shekels against the U.S. dollars, which impacted financial income during the quarter. Importantly, as of March 31, 2026, the company has approximately $5.3 million in total liquidity, including cash equivalents, and short-term bank deposits. We believe this provides a solid financial foundation to continue advancing our operational projects, strategic initiatives, and business development activities. Operationally, the company continued progressing projects across Israel, the United States, in Portugal, in Taiwan, in India, and in South Africa during the quarter, while also expanding discussions around potential future applications of wave energy within emerging AI-related energy infrastructure market. As we move forward, we remain focused on disciplined capital allocation, project execution, and strategic partnerships designed to support long-term commercial goals.

I will now turn the call over to our Founder and Chief Executive Officer, Inna Braverman.

Thank you, Aharon, and thank you everyone for joining us today. The first quarter of 2026 was an important quarter for Eco Wave Power, both operationally and strategically. During the quarter, we continued advancing our global project portfolio while also positioning Eco Wave Power within one of the most important emerging teams in the global infrastructure market, the rapidly growing intersection between artificial intelligence and energy demand. As AI adoption accelerates globally, energy availability is increasingly becoming one of the key constraints to scaling next-generation computing infrastructure. Data centers, accelerated computing systems, and digital infrastructure require significant amount of reliable electricity, particularly in coastal regions where many population centers and industrial hubs are located. We believe this creates a compelling long-term opportunity for Eco Wave Power.

Our technology is uniquely positioned within this emerging landscape because we generate renewable energy directly from existing coastal infrastructure, such as breakwaters and piers, enabling deployment close to demand centers without requiring offshore seabed connection or complex marine construction. During the quarter, Eco Wave Power was featured during NVIDIA Founder and CEO Jensen Huang's keynote presentation at the NVIDIA GTC conference as part of a future-facing digital twin model focused on the renewable energy infrastructure. Following the conference, Eco Wave Power was also featured across NVIDIA's social media channels. We view this visibility as an indication that the role of energy infrastructure in enabling AI growth is becoming increasingly important globally. We are also seeing broader market validation around the intersection of wave energy and AI infrastructure.

Recently, Panthalassa, a company focused on offshore energy solutions for AI infrastructure, announced a $140 million financing round led by Peter Thiel. We believe developments like this further demonstrate the increasing importance of scalable energy infrastructure in supporting the future growth of artificial intelligence. Importantly, we remain focused on disciplined execution and real-world deployment. In Israel, our EWP-EDF One project in Jaffa continued operating successfully as Israel's first grid-connected wave energy power station. During Q1, the system demonstrated stable performance and strong production during significant wave events. In the United States, we completed and submitted the final report for our pilot project at the Port of Los Angeles to Shell Marine Renewable Energy. The pilot successfully demonstrated the technical, regulatory, and economic feasibility of our nearshore deployment model.

As next steps, we are planning to submit the results of the report to the Port of L.A. and enter discussions regarding a potential larger-scale implementation on the outer breakwater of the port. We were also pleased to see our technology highlighted in a report issued by the U.S. Department of Energy, National Renewable Energy Laboratory, or NREL, which emphasized the advantages of infrastructure-integrated wave energy systems. In Portugal, we continued advancing our 1 MW project under a 20 MW concession agreement in Porto, including engineering validation and grid connection progress. In Taiwan, we continued advancing our first Asia Pacific project in collaboration with I-Ke International Ocean Energy, including localized manufacturing plan and deployment preparation. In India, we continued progressing our collaboration with Bharat Petroleum, beginning with site assessment work for a potential pilot installation.

Based on the latest information received from BPCL, we currently expect to receive the formal site assessment order during Q3 of this year. In South Africa, we completed the feasibility study at the Port of Ngqura, indicating approximately 8.3 megawatts of potential installed capacity. At the same time, we have initiated discussions with infrastructure developers and data center participants regarding potential future applications of wave energy within AI-related infrastructure environments. Looking ahead, our priorities remain clear. Continue advancing our operational projects, maintain disciplined financial management, deepen strategic partnerships, and position Eco Wave Power within the next generation of global energy infrastructure. The demand of energy driven by artificial intelligence is happening now, and the market is actively searching for scalable solutions that can be deployed within commercially relevant timelines.

While many emerging concepts being discussed, including advanced nuclear technologies, space-based energy systems, or orbital solar collection platforms, are technologically fascinating, most are expecting to require many years, and in some cases, decades, before meaningful commercial deployment. By contrast, Eco Wave Power's technology is designed around existing coastal infrastructure and commercially deployable engineering, allowing potential implementation timelines measured in months rather than decades. We can build wave energy for AI right now and not in decades. We believe this positions wave energy as one of the practical renewable energy solutions capable of helping address the rapidly growing electricity demands of AI infrastructure in co-coastal markets today. Thank you again for joining us today.

Thank you, everyone. This does conclude today's conference call. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

Welcome to the Eco Wave Power fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Aharon Yehuda, CFO of Eco Wave Power. You may begin.

Good morning, everyone. Thank you for taking the time and joining this conference call. I will begin with a brief overview of our financial performance for 2025. As reflected in our annual report, our financial results primarily reflect a year of continued operational expansion and investment in infrastructure. During the year, we advanced key strategic projects, most notably the establishment of our U.S. pilot at the Port of Los Angeles, while also progressing additional projects in Europe and in Asia. These activities required increased investment, which is reflected in our operating expenses and net loss, which was approximately $3.7 million. Importantly, these expenses are directly tied to building the foundation for future commercialization, including engineering, deployment, and project development activities.

At the same time, our revenue remains limited and continued to be driven by project timing and milestone recognition, which is typical to a company at our current stage. From a liquidity perspective, the company ended the year with approximately $6.3 million in cash, providing us a solid financial base to support ongoing operations and key project milestones. Turning to the fourth quarter, maintaining financial discipline is equally critical as we scale. In Q4, we reduced operating expenses by 4% compared to the previous quarter, with R&D expenses down by 26% and sales and marketing expenses reduced by 32%. This improvement reflects a more efficient cost structure as we transition from pure development into the execution phase of real-world projects.

We believe this is an important milestone, as scaling an energy infrastructure company requires not only technological progress but also operational and financial efficiency. In parallel, we are seeing strong validation of the broader market approach. March 16th, 2026, Eco Wave Power was featured in NVIDIA GTC Keynote, where our digital twin technology was presented as part of the application of AI real-world energy solutions. As artificial intelligence continues to expand globally, it is driving significant growth in electricity demands, particularly from data centers and high-performance computing infrastructure. Many of these facilities are located in coastal regions, where access to scalable and reliable renewable energy is becoming increasingly important. We believe our technology is well-positioned to contribute to this evolving landscape by enabling clean electricity generation from existing coastal infrastructure near areas of growing energy demand.

Looking ahead, achieving full commercial deployment will require the installation of additional systems at scale. Our projects in Portugal and Taiwan represent the first steps in this direction, and together with our broader pipeline, form the basis for our transition from pilot project to larger commercial wave energy arrays. Overall, we believe the combination of continued project advancement, improving cost discipline, and the increasing relevance of renewable energy in the AI era provides a solid foundation for the next phase of growth. I now turn the call over to Inna Braverman, CEO of Eco Wave Power Global AB. Inna, you may begin.

Thank you, Aharon Yehuda, and good morning, everyone. I'm actually taking this call from NVIDIA's GTC conference, where I had the privilege of attending the keynote of NVIDIA's CEO earlier this week. I was truly honored and excited to see Eco Wave Power's technology featured during Jensen Huang's keynote and to experience it firsthand, to experience the magnitude of the artificial intelligence industry. What is very clear here is that AI is not just a technological shift. It is an infrastructure shift, and one of its most critical constraints is energy. The scale of electricity required to support data centers, high-performance computing, and AI-driven application is immense and growing rapidly, creating a significant need for new, reliable, and renewable energy sources. Against this backdrop, 2025 was a year of meaningful progress for Eco Wave Power as we continued advancing the commercialization of our technology and expanding our global project portfolio.

One of the key milestones was the successful launch and the completion of the first onshore wave energy pilot project in the United States at the Port of Los Angeles in collaboration with Shell Marine Renewable Energy. In March 2026, we submitted the final project report confirming that the system achieved its technical and operational objective. Importantly, the project demonstrated that Wave Energy systems can be safely integrated into existing port infrastructure using conventional onshore construction methods. This provides a clear and validated pathway towards future commercial scale deployment. At the same time, our project at Jaffa Port in Israel continued to deliver strong operational performance. The system maintained zero downtime during 2025, generated stable electricity under varying wave conditions, and achieved the highest wave conditions and peak production levels recorded at the site to date.

These results provide valuable engineering data and supports the optimization and scaling of our technology. We also made continued progress across our international pipeline. In Portugal, we advanced the development of our first megawatt-scale project, including engineering work, wave analysis, and submission of the execution plan. While the Port Authority is currently conducting structural assessments following a recent storm event, they have reiterated their continued interest in the project, and we view this as a part of the natural process of advancing large-scale infrastructure. At the same time, we're maintaining diversified global pipeline, allowing us to continue progressing other opportunities while developments in Portugal are being finalized. In Taiwan, our partners secured a land lease agreement for deployment at Su'ao Port, and we continued expanding into additional markets, including collaboration with BPCL, Bharat Petroleum in India, and the feasibility studies supporting potential 8 MW project in South Africa.

From a financial perspective, as discussed earlier, 2025 reflected a year of investment in growth and infrastructure, with a strong focus on advancing real-world projects. At the same time, we demonstrated improving cost discipline in the fourth quarter, which is an important step as we transition towards execution and commercialization. Looking ahead, we're particularly encouraged by the growing intersection between AI and energy demand. Many of the world's largest data centers are located near coastal population centers, where electricity demand is concentrated. We believe that Wave Energy deployed on existing coastal infrastructure can play a meaningful role in providing clean, reliable energy close to these demand centers, reducing reliance on long-distance transmission and supporting the next generation of digital infrastructures.

In parallel, we are also advancing our digital capabilities, including the exploration of our WaveGPT platform, also digital twin, which is intended to leverage AI and advanced analytics to optimize performance, enable predictive maintenance, and improve energy forecasting. Overall, we believe that the combination of validated technology, growing global project pipeline, improving cost discipline, and increasing global demand for clean energy driven by AI positions Eco Wave Power well for the next phase of growth. I would like to thank our shareholders, partners, and supporters for their continued confidence as we move forward. Thank you.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Welcome to the Eco Wave Power Second Quarter 2025 Earnings Call. [Operator Instructions] I would now like to turn the call over to your host, Aharon Yehuda. You may begin, sir. Thank you.

Good morning, everyone, and thank you for joining Eco Wave Power's Second Quarter Earnings Call. I'm Aharon Yehuda and I'll start with a brief overview of our financial results, followed by our CEO, Inna Braverman, who will provide an update on operations and strategic developments. Financial highlights of the first half of the year. Operating expenses for H1 2025 totaled $1.6 million, up by USD 239,000 from H1 2024. This increase reflects our continued investment in R&D, engineering teams and project execution, including our U.S. and Portugal projects. R&D expenses increased 25% to USD 399,000, driven primarily by our Portuguese project and strengthening our engineering department. Sales and marketing expenses decreased by slightly by USD 123,000, reflecting more efficient investor communication. General and administrative expenses rose 22% to $1.1 million, mainly due to payroll for new U.S. hires, professional fees and travel costs associated with project expansion. Other income nearly doubled to USD 62,000 coming from technology demonstration services in Asia. Net loss for the first half of 2025 was USD 1.9 million, reflecting growth investments 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 growth. 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 expansion. I'll now turn the call over to Inna Braverman, our CEO, to provide insights into our project progress and strategic initiatives.

Thank you, Aharon, 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 multilayered, designed to advance technology, demonstrating 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 framework, 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 near continuous wave availability. This project will serve as a clear demonstration that in suitable locations, wave energy can deliver 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 allows 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 product updates. In the United States at it's Port of L.A., 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 the final license from the Port of L.A. in March 2025. And just 6 months later, the pilot station is fully installed. This demonstrates that Eco Wave Power executes projects efficiently while maintaining high technical standards. In Portugal, preparation continue for the first megawatt-scale project under our concession 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, Bharat Petroleum to explore wave energy deployment at Mumbai Oil Terminal. The collaboration begins with site assessment and regulatory preparations, laying the groundwork for a pilot project. In Taiwan, we are working with I-Ke International Ocean Energy, advancing local floater production and permitting milestones. I-Ke has already successfully passed the first round qualification for wave-energy tender, positioning us strongly for the next project phase. Back home in Israel, the EWP-EDF One project at Jaffa Port continues to serve as a key R&D and benchmarking site. Data collected here confirm 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 a 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 EUR 2.45 million European project that will accelerate commercial scale wave energy adoption across the Atlantic region. Finally, I want to highlight our leadership strength. 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 strengthen corporate governance. Overall, the first half of 2025 shows that Eco Wave Power is delivering on its promises, advancing pilots, completing installation, securing regulatory approvals, forming strategic partnerships and expanding globally. With our strong financial foundation of USD 7.94 million in cash and short-term deposits and a growing project pipeline, we are well positioned to bring wave energy into mainstream renewable energy market, delivering innovative, sustainable and high-value solutions for our shareholders and partners. Thank you for your continued support.

The meeting has now concluded. Thank you for joining, and have a pleasant day.