Exhibit 99.1
Eco Wave Power Global AB (publ)
Condensed consolidated financial statements
As of June 30, 2022
Unaudited
Index
1
Eco Wave Power Global AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)
| June 30 2022 | December 31 2021 | |||||||
| In USD thousands | ||||||||
| Assets | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | ||||||||
| Restricted short-term bank deposits | ||||||||
| Other receivables and prepaid expenses | ||||||||
| TOTAL CURRENT ASSETS | ||||||||
| NON-CURRENT ASSETS: | ||||||||
| Property and equipment, net | ||||||||
| Right-of-use assets, net | ||||||||
| Investments in a joint venture accounted for using the equity method | ||||||||
| TOTAL NON-CURRENT ASSETS | ||||||||
| TOTAL ASSETS | ||||||||
| Liabilities and equity | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current maturities of long-term loans from related party | ||||||||
| Current maturities of other long-term loan | - | |||||||
| Accounts payable and accruals: | ||||||||
| Trade | ||||||||
| Other | ||||||||
| Current maturities of lease liabilities | ||||||||
| TOTAL CURRENT LIABILITIES | ||||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Long-term loans from related party, net of current maturities | - | |||||||
| Other long-term loan | ||||||||
| TOTAL NON-CURRENT LIABILITIES | ||||||||
| TOTAL LIABILITIES | ||||||||
| EQUITY: | ||||||||
| Common shares | ||||||||
| Share premium | ||||||||
| Foreign currency translation reserve | ( | ) | ( | ) | ||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| TOTAL EQUITY | ||||||||
| TOTAL LIABILITIES AND EQUITY | ||||||||
The above condensed consolidated statements of financial position should be read in conjunction with the accompanying notes.
2
Eco Wave Power Global AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited)
| Three months ended | Six months ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| In USD thousands | In USD thousands | |||||||||||||||
| REVENUES | ||||||||||||||||
| COST OF REVENUES | ( | ) | ( | ) | ||||||||||||
| GROSS PROFIT | ||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Research and development expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Sales and marketing expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| General and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income | ||||||||||||||||
| Share of net loss of a joint venture accounted for using the equity method | ( | ) | ( | ) | ||||||||||||
| TOTAL OPERATING EXPENSES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| OPERATING LOSS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Financial expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Financial income | ||||||||||||||||
| FINANCIAL INCOME (EXPENSES) - NET | ( | ) | ||||||||||||||
| NET LOSS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| ATTRIBUTABLE TO: | ||||||||||||||||
| The parent company shareholders | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
| In USD | ||||||||||||||||
| LOSS PER COMMON SHARE – BASIC AND DILUTED | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES USED IN CALCULATION OF LOSS PER COMMON SHARE | ||||||||||||||||
The above condensed consolidated statements of loss should be read in conjunction with the accompanying notes.
3
Eco Wave Power Global AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)
| Three months ended | Six months ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| in USD thousands | ||||||||||||||||
| LOSS FOR THE PERIOD | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS | ||||||||||||||||
| EXCHANGE DIFFERENCES ON TRANSLATION OF FOREIGN OPERATIONS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS | ||||||||||||||||
| EXCHANGE DIFFERENCES ON TRANSLATION TO PRESENTATION CURRENCY | ( | ) | ( | ) | ( | ) | ||||||||||
| OTHER COMPREHENSIVE LOSS FOR THE PERIOD | ( | ) | ( | ) | ( | ) | ||||||||||
| TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| TOTAL COMPREHENSIVE LOSS FOR THE PERIOD IS ATTRIBUTABLE TO: | ||||||||||||||||
| Total comprehensive loss for the period is attributable to the parent company shareholders | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
The above condensed consolidated statements of comprehensive loss should be read in conjunction with the accompanying notes.
4
Eco Wave Power Global AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)
| Number of common shares* | Common shares capital | Share premium | Foreign currency translation reserve | Accumulated deficit | Total for Company's shareholders | Total | ||||||||||||||||||||||
| in USD thousands | ||||||||||||||||||||||||||||
| BALANCE AT JANUARY 1, 2021 | ( | ) | ||||||||||||||||||||||||||
| CHANGES IN THE SIX MONTHS ENDED JUNE 30, 2021: | ||||||||||||||||||||||||||||
| Loss for the period | - | - | - | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Other comprehensive loss | - | - | - | ( | ) | - | ( | ) | ( | ) | ||||||||||||||||||
| Total comprehensive loss for the period | - | - | - | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||
| BALANCE AT JUNE 30, 2021 | ( | ) | ||||||||||||||||||||||||||
| BALANCE AT JANUARY 1, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||
| CHANGES IN THE SIX MONTHS ENDED JUNE 30, 2022: | ||||||||||||||||||||||||||||
| Loss for the period | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Other comprehensive loss | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Total comprehensive loss for the period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
| BALANCE AT JUNE 30, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||
The above condensed consolidated statements of changes in equity should be read in conjunction with the accompanying notes.
5
Eco Wave Power Global AB (publ)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Six months ended | ||||||||
| June 30 | ||||||||
| 2022 | 2021 | |||||||
| in USD thousands | ||||||||
| CASH FLOWS - OPERATING ACTIVITIES: | ||||||||
| Net loss | ( | ) | ( | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Interest | ||||||||
| Share of loss of a joint venture | - | |||||||
| Non-cash finance income | ( | ) | ( | ) | ||||
| Loss on disposal of fixed assets | - | |||||||
| Changes in operating assets and liabilities | ||||||||
| Decrease (increase) in other receivables and prepaid expenses | ( | ) | ||||||
| Increase in accounts payable and accruals | ||||||||
| Net cash provided by (used in) operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS – INVESTING ACTIVITIES: | ||||||||
| Investments in short-term deposits | ( | ) | - | |||||
| Investment in a joint venture | ( | ) | - | |||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS - FINANCING ACTIVITIES: | ||||||||
| Principal elements of lease payments | ( | ) | ( | ) | ||||
| Net cash used in financing activities | ( | ) | ( | ) | ||||
| DECREASE IN CASH AND CASH EQUIVALENTS | ( | ) | ( | ) | ||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | ||||||||
| EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS | ( | ) | ( | ) | ||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | ||||||||
| Non-cash Investing activities and financing | ||||||||
| Transfer of equipment to a joint venture | - | ( | ) | |||||
The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.
6
NOTE 1 - GENERAL INFORMATION:
Eco Wave Power Global AB (publ) (”the Parent Company” or together with its subsidiaries ”the Company”) is a Swedish public limited company formed on March 27, 2019 and registered at the Swedish Companies Registration Office on April 17, 2019. The Company’s American Depositary Shares (“ADSs”) are traded on the Nasdaq Capital Market in the United States. The Company’s corporate identity number is 559202-9499 and its address is Strandvägen 7A, 114 56 Stockholm, Sweden. Unless expressly indicated otherwise, all amounts are shown in thousands of U.S. dollars (”USD”).
In July 2021 the Company completed an underwritten public offering of ADSs. The ADSs began trading on Nasdaq on July 1, 2021.
On May 30, 2022 Nasdaq First North Growth Market Stockholm has accepted the Company’s application to delist its common shares. The last day of trading for the Company’s common shares on Nasdaq First North was June 13, 2022. As a result, since June 14, 2022 the company’s securities trade exclusively on the Nasdaq Capital Market in the United States in the form of American Depositary Shares (“ADSs”)
NOTE 2 - BASIS FOR PREPARATION
The Company's Unaudited condensed consolidated financial statements as of June 30, 2022 and 2021 and for the interim six month periods then ended (hereinafter: “The financial information for the interim period”) were prepared in accordance with International Accounting Standard 34: “Interim Financial reporting” (hereinafter: “IAS 34”). The financial information for the interim period is presented in a condensed form and does not include all of the information and disclosures that are required within the framework of annual financial statements. The financial information for the interim period should be read in conjunction with the annual financial statements for the year ended December 31, 2021 and the accompanying notes thereto, which comply with the International Financial Reporting Standards (hereinafter: “IFRS Standards”), as issued by the International Accounting Standard Board (“IASB”).
NOTE 3 - PRINCIPAL ACCOUNTING POLICIES
General
The principal accounting policies and calculation methods, which have been implemented in the preparation of the financial information for the interim period, are consistent with those that were implemented in the preparation of the Group’s annual financial statements for the year ended December 31, 2021.
Fair value of financial instruments
As of June 30, 2022 and December 31, 2021, the financial instruments of the Group consist of non-derivative assets and liabilities (primarily working capital items, deposits and loans). With regard to non-derivative assets and liabilities, given their nature, the fair value of the financial instruments included in the consolidated statement of financial position is generally close or identical to their carrying amount.
NOTE 4 - Events during the period
Between
2016 and January 2022, the company operated a grid-connected proof-of-concept wave energy array in Gibraltar. On January 20, 2022, the
company announced a collaboration agreement with AltaSea, a non-profit that accelerates scientific collaboration and advances an emerging
blue economy, at the Port of Los Angeles. On March 2, 2022, the company announced its intent to relocate the energy conversion unit from
Gibraltar to AltaSea’s premises in the Port of Los Angeles. Eco Wave Power intends to develop and supply new and upgraded floaters
for its planned pilot in AltaSea’s premises, while Gibraltar power station’s floater mechanisms will be sent to steel recycling.
As a result the company has recorded a one-off loss of $
8