Eco Wave Power Global AB (publ)

CEO Commentary:

The third quarter of 2026 and the months that followed marked an important period for Eco Wave Power, combining significantly improved financial performance with tangible progress across our international projects and meaningful advances in artificial intelligence.

From a financial perspective, we reduced our quarterly net loss by 47% and operating expenses by 25% compared with the same period last year.

We also recorded net financial income during the quarter, compared with net financial expenses in the corresponding period of 2025.

For the first nine months of 2026, we achieved a 24% reduction in net loss, a 14% reduction in operating expenses and an 80% reduction in net financial expenses.

For me, these improvements are particularly important because they demonstrate that we can continue advancing our technology and international project portfolio while maintaining financial discipline.

As a public company operating in an emerging renewable energy sector, we recognize that efficient capital allocation and responsible financial management are essential to creating long-term shareholder value.

During June, we also strengthened our financial position through a $4 million registered direct offering completed at a 10.7% premium to the previous Nasdaq closing price.

In October, a Schedule 13G filed with the SEC identified Citadel Advisors, Citadel Securities and other affiliated reporting persons in connection with beneficial ownership of Eco Wave Power securities.

We believe financial discipline and continued access to capital markets are important foundations as we work toward the next stages of commercialization.

Commercially, we believe we are beginning to see meaningful progress in translating strategic relationships and pilot demonstrations into more concrete project-development activities.

In India, our collaboration with Fortune 500 energy company Bharat Petroleum advanced to the issuance of the first purchase order for a comprehensive site assessment at BPCL’s marine infrastructure in Mumbai.

We believe this is an important milestone because it moves our collaboration from the initial agreement toward a defined implementation phase.

We believe major energy companies such as BPCL have the infrastructure, operational expertise and long-term perspective that can play an important role in accelerating the adoption of innovative renewable energy technologies.

In the United States, we successfully completed our Port of Los Angeles pilot project earlier this year and have now initiated preliminary licensing-related discussions regarding a potential commercial-scale installation of up to 60 MW.

While this opportunity remains subject to additional technical assessments, licensing and approvals, we believe it represents an exciting possible next step in building on the experience gained from our U.S. pilot.

We were also encouraged to see Eco Wave Power’s Port of Los Angeles project specifically referenced in California’s Final SB 605 Consultant Report as the State continues evaluating pathways toward marine renewable energy commercialization.

In Rhode Island, I was honored to participate as an invited Luminary Speaker at the inaugural Futures: Ocean Forum in Newport.

Our engagement in Rhode Island builds on earlier U.S. coastline feasibility work conducted with Shell Marine Renewable Energy and reflects our continued interest in identifying suitable coastal locations for future commercial wave energy development.

Portugal remains one of our most important priorities as we prepare for our first megawatt-scale installation.

Our planned 1 MW project in Porto represents the first phase of our 20 MW concession agreement with APDL.

During the third quarter, I visited Portugal and met with key local subcontractors expected to participate in the project’s execution.

We are encouraged by APDL’s commencement of the necessary breakwater rehabilitation works, its formal support for our grid-connection deadline extension request and its indication that rehabilitation is progressing better than expected.

Our ambition remains to commence construction during 2027, subject to the completion of the necessary works, safe site access and regulatory approvals.

In Israel, our Jaffa Port station continues demonstrating operational reliability and generating valuable real-world data.

The production results published during August showed increased electricity generation during stronger wave conditions, while the station has maintained zero downtime attributable to our system since the beginning of 2025.

This installation continues to serve as an important foundation for the optimization and further development of our technology.

One of the developments I am most excited about, however, is the progress we are making in artificial intelligence and Digital Twin technology.

In September 2026, we announced the signing of an agreement with Germany-based AI engineering GmbH to develop an AI-powered Digital Twin platform for our proprietary wave energy technology.

Our goal was to combine physics-based simulation, machine learning and real-world operating data to create increasingly intelligent and predictive wave energy systems.

Just two months later, on November 2, we announced the successful completion of the first phase of this collaboration.

During Phase 1, we created a physics-based digital model of how ocean waves interact with our proprietary floaters, including simulations of structural forces, floater movement and potential energy generation under different sea conditions.

We also began developing machine-learning capabilities for energy and load forecasting and evaluated how the model could be adapted to future project locations.

I believe this is an important achievement because it demonstrates that our AI strategy is moving from concept to practical technological implementation.

As our projects grow in size and geographic reach, we believe the ability to simulate, predict and optimize system performance could become increasingly valuable in improving engineering efficiency, accelerating deployment and enhancing scalability.

We were also particularly pleased to receive a formal support letter from NVIDIA Networking for our proposed Digital Twin and Energy-Aware Computing research initiative. NVIDIA Networking described our initiative as a key opportunity to demonstrate the application of AI, accelerated computing and Digital Twin technologies to next-generation renewable energy infrastructure.

This development builds on an exciting year in which our technology was featured twice in keynote presentations by NVIDIA Founder and CEO Jensen Huang, and NVIDIA published a dedicated corporate blog highlighting our technology, Digital Twin development and the longer-term potential for ocean-powered data centers.

For us, artificial intelligence represents two complementary opportunities.

First, we believe it can make our wave energy technology increasingly intelligent, predictive and scalable, helping us improve engineering decisions, system optimization, forecasting and maintenance efficiency.

Second, we see an emerging opportunity to supply renewable electricity to the rapidly expanding AI infrastructure market.

As data centers continue growing globally, their electricity requirements are becoming increasingly significant.

Many potential data-center locations and other energy-intensive infrastructure assets are situated near coastlines, where our technology could potentially generate renewable electricity using existing marine structures.

We are therefore engaged in discussions with data-center developers and infrastructure partners regarding potential wave energy integration into future coastal data-center projects.

In parallel, we are exploring technologies intended to enable secure connections between wave-energy systems and data-center infrastructure, together with trusted measurement, verification and settlement of electricity supplied.

Our vision is not only to make wave energy smarter through AI, but also to help provide the renewable electricity that the AI economy increasingly needs.

As we continue advancing our projects, our priorities remain clear.

We intend to focus on translating our international project pipeline into operating commercial installations, advancing our first megawatt-scale project in Portugal, building on commercial progress in India and the United States, moving our Taiwan project toward implementation, and further developing the AI capabilities that can strengthen our technology.

Throughout this process, maintaining financial discipline will remain a central priority.

We believe Eco Wave Power is increasingly positioned at the intersection of several important global trends: renewable energy, energy security, coastal infrastructure modernization and the extraordinary growth in electricity demand driven by artificial intelligence.

We believe the progress achieved during the third quarter and the subsequent period provides a strong foundation for the next stages of our development.

I am proud of our team’s continued dedication and grateful for the trust and support of our shareholders and partners.

We believe the combination of improving financial performance, tangible commercial progress and increasingly intelligent technology positions Eco Wave Power for meaningful long-term growth.

We look forward to continuing to execute our strategy and updating our shareholders as we reach further milestones.