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Ocean Power Technologies Announces Second Quarter Fiscal 2022 Results

·9 min read

Investor Conference Call and Webcast on December 15, 2021, at 9:00 A.M. ET

MONROE TOWNSHIP, N.J., Dec. 14, 2021 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or "the Company") (NYSE American: OPTT), a leader in innovative and cost-effective low-carbon marine power, data, and service solutions, today announced financial results for its second quarter, ended October 31, 2021.

Business Highlights

  • Revenues grew to $247,000 in the second quarter of Fiscal Year 2022 compared to $118,000 for the second quarter of Fiscal Year 2021, driven by growth in Strategic Consulting Services as the Company further integrates the February 2021 acquisition of 3Dent Technology, Inc.

  • Entered strategic partnerships with software and robotics developers Greensea and Fathom5 to advance the development of the Company's proprietary next-generation Maritime Domain Awareness Solution ("MDA") platform.

  • Conducted offshore MDA testing off the coast of New Jersey with positive results for OPT's continued development of this leading-edge solution.

  • Subsequent to quarter-end, and as previously announced, the Company completed its acquisition of Marine Advanced Robotics ("MAR") on November 15, 2021, expanding OPT's commercial offering into autonomous vehicles for maritime data services.

Management Commentary – Philipp Stratmann, OPT's President and Chief Executive Officer

"We had another quarter of progress executing our strategy to become the global leader in data- and power-as-a-service within our oceans and seas. We are reinforcing the building blocks of our services' technology design, including static data capture through our PowerBuoy® platforms, as well as autonomous vehicles through our acquisition of Marine Advanced Robotics. We also partnered with experienced developers to bolster our proprietary Maritime Domain Awareness platform that will feature advanced analytic capabilities and military-grade cybersecurity. We believe this will result in larger MDA project scoping and a strong subscription business."

Financial Highlights

  • Revenues – increased to $247,000 for the second quarter of Fiscal Year 2022, compared to $118,000 for the second quarter of Fiscal Year 2021, due to additional strategic consulting services.

  • Engineering and product development costs – increased $2.0 million from the second quarter of Fiscal Year 2021 to the second quarter of Fiscal Year 2022. This was mainly due to costs related to OPT's Greensea and Fathom5 MDA project.

  • Selling, general, and administrative (SG&A) costs – increased by approximately $200k from the second quarter of Fiscal Year 2021 to the second quarter of Fiscal Year 2021. The Company continues to manage its SG&A costs closely.

  • Net loss – based on the above activity, the Company had a net loss of $5.2 million for the second quarter of Fiscal Year 2022 compared to a net loss of $3.0 million for the second quarter of Fiscal Year 2021.

Balance Sheet and Cash Flow

  • Total unrestricted cash and cash equivalents were $72.6 million as of October 31, 2021.

  • Subsequent to quarter-end, the Company closed on the previously announced MAR acquisition in a cash and stock deal. This included $4.0 million of cash and $7.0 million of stock at closing.

  • Net cash used in operating activities for the first six months of Fiscal Year 2022 was $10.4 million, as compared to $5.7 million for the first six months of Fiscal Year 2021.

Conference Call & Webcast

As announced on November 9, 2021, OPT will host a conference call and webcast to review its financial and operating results on Wednesday, December 15, 2021, at 9:00 A.M. Eastern Time. Investors, analysts, and other interested parties may access the conference call by:

A digital replay will be available by telephone approximately two hours after the call's completion and until March 14, 2022. Access by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers and using the Conference ID#13694019. The archived webcast will also be available on the OPT website investor relations page.

About Ocean Power Technologies
OPT aspires to transform the world through durable, innovative, and cost-effective marine energy, data, and service solutions. Its PowerBuoy® solutions platform provides clean and reliable electric power and real-time data communications for remote maritime and subsea applications in markets such as offshore oil and gas, defense and security, science and research, and offshore wind. The Company is headquartered in Monroe Township, New Jersey. To learn more, visit www.OceanPowerTechnologies.com.

Forward-Looking Statements
This release may contain forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases such as "may", "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions. These forward-looking statements reflect the Company's current expectations about its future plans and performance. These forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company's most recent Forms 10-Q and 10-K and subsequent filings with the U.S. Securities and Exchange Commission for further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.

Financial Tables Follow
Additional information may be found in the Company's Annual Report on Form 10-K that has been filed with the U.S. Securities and Exchange Commission. The Form 10-K is accessible at www.sec.gov or the Investor Relations section of the Company's website (www.OceanPowerTechnologies.com/investor-relations).

Ocean Power Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

October 31, 2021

April 30, 2021

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

72,630

$

83,028

Restricted cash, short-term

384

384

Accounts receivable

180

350

Contract assets

325

190

Other current assets

560

487

Total current assets

74,079

84,439

Property and equipment, net

360

406

Intangibles, net

262

274

Right-of-use asset, net

897

1,036

Restricted cash, long-term

222

222

Total assets

$

75,820

$

86,377

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

277

$

687

Accrued expenses

1,576

1,881

Contract liabilities, current portion

117

-

Right-of-use liability, current portion

327

347

Litigation payable

-

1,224

Liability classified stock awards

60

60

Warrant liabilities

-

-

Paycheck protection program loan- current

-

495

Total current liabilities

2,357

4,694

Paycheck protection program loan, less current portion

-

396

Right-of-use liability, less current portion

690

819

Total liabilities

3,047

5,909

Commitments and contingencies (Note 15)

Stockholders’ Equity:

Preferred stock, $0.001 par value; authorized 5,000,000 shares, none issued or outstanding

-

-

Common stock, $0.001 par value; authorized 100,000,000 shares, issued and outstanding 52,478,011 shares

52

52

Treasury stock, at cost; 21,040 shares

(338

)

(338

)

Additional paid-in capital

316,389

315,821

Accumulated deficit

(243,191

)

(234,896

)

Accumulated other comprehensive loss

(139

)

(171

)

Total stockholders' equity

72,773

80,468

Total liabilities and stockholders’ equity

$

75,820

$

86,377



Ocean Power Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

Three months ended October 31,

Six months ended October 31,

2021

2020

2021

2020

Revenues

$

247

$

118

$

519

$

287

Cost of revenues

300

216

723

550

Gross profit/(loss)

(53

)

(98

)

(204

)

(263

)

Operating expenses:

Engineering and product development costs

3,082

1,063

5,053

2,315

Selling, general and administrative costs

2,050

1,841

4,958

3,828

Total operating expenses

5,132

2,904

10,011

6,143

Operating loss

(5,185

)

(3,002

)

(10,215

)

(6,406

)

Interest income, net

19

8

38

20

Other expense, net

-

(33

)

-

(33

)

Gain on extinguishment of PPP loan

-

-

891

-

Foreign exchange gain/(loss)

(5

)

3

(5

)

10

Loss before income taxes

(5,171

)

(3,024

)

(9,291

)

(6,409

)

Income tax benefit

-

-

1,041

-

Net loss

$

(5,171

)

$

(3,024

)

$

(8,250

)

$

(6,409

)

Basic and diluted net loss per share

$

(0.10

)

$

(0.15

)

$

(0.16

)

$

(0.36

)

Weighted average common shares used to compute basic and diluted net loss per share

52,460,223

20,090,000

52,459,122

17,883,666



Ocean Power Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

Six months ended October 31,

2021

2020

Cash flows from operating activities:

Net loss

$

(8,250

)

$

(6,409

)

Adjustments to reconcile net loss to net cash used in operating activities:

Foreign exchange gain

5

(10

)

Depreciation of fixed assets

70

73

Amortization of intangible assets

12

-

Amortization of right of use asset

139

105

Gain on extinguishment of PPP Loan

(891

)

-

Stock-based compensation

547

223

Loss on disposal of property, plant and equipment

-

2

Changes in operating assets and liabilities:

Accounts receivable

170

105

Contract assets

(135

)

154

Other assets

(73

)

(499

)

Accounts payable

(410

)

(72

)

Accrued expenses

(305

)

812

Change in lease liability

(147

)

(110

)

Contract liabilities

117

(56

)

Litigation Payable

(1,224

)

-

Net cash used in operating activities

(10,375

)

(5,682

)

Cash flows from investing activities:

Purchase of property, plant and equipment

(24

)

-

Net cash used in investing activities

(24

)

-

Cash flows from financing activities:

Proceeds from Paycheck Protection Program Loan

-

890

Proceeds from loan payable

-

467

Payment of loan payable

-

(117

)

Proceeds from stock option exercises

21

-

Proceeds from issuance of common stock- Aspire financing net of issuance costs

-

3,241

Proceeds from issuance of common stock- AGP At The Market offering, net of issuance costs

-

6,094

Net cash provided by financing activities

21

10,575

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(20

)

27

Net (decrease)/increase in cash, cash equivalents and restricted cash

(10,398

)

4,920

Cash, cash equivalents and restricted cash, beginning of period

83,634

10,930

Cash, cash equivalents and restricted cash, end of period

$

73,236

$

15,850

Supplemental disclosure of noncash operating activities:

Prepaid financing costs reported in accrued expenses

$

-

$

49

CONTACT: Contact Information Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com