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Ocean Power Technologies Announces Second Quarter FY2021 Results

Investor Conference Call and Webcast on December 8, 2020, at 11:00 A.M. ET

MONROE TOWNSHIP, N.J., Dec. 07, 2020 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. ("OPT" or "the Company") (Nasdaq: OPTT), a leader in innovative and cost-effective ocean energy solutions, today announced financial results for the second quarter of fiscal year 2021 ended October 31, 2020.

Recent Operational Highlights

  • Signed contract with Adams Communications & Engineering Technology (ACET) to evaluate a PB3 PowerBuoy® solution to support the U.S. Navy's Naval Postgraduate School's Sea, Land, Air, Military Research (SLAMR) Initiative.
  • Received DeepStar® project award to study deployment and operational requirements of utilizing OPT's PB3 PowerBuoy® to provide remotely controllable zero carbon power for deepwater subsea oil production applications.
  • Deployed the OPT Marine Surveillance System on a hybrid PowerBuoy® off the New Jersey coast for advanced testing and demonstration.
  • Expanded OPT's commercial European presence with oil and gas industry veteran Jorge Franco joining as Regional Sales Representative, based in Spain.
  • Executed a new Common Stock Purchase Agreement with Aspire Capital to sell up to $12.5 million in common stock to Aspire Capital over a term of 30 months, which provides flexibility to access capital on a cost-effective basis.
  • Increased total cash, cash equivalents, and restricted cash balances to $26.3 million.

Management Commentary
"We are seeing long-evolving projects come to fruition with two recent PB3 PowerBuoy®-related contracts with ACET and DeepStar," said George H. Kirby, President and Chief Executive Officer of OPT. "Our expanded sales footprint, coupled with our product and solution suite and cash balance, positions OPT to be able to deliver on anticipated market demand."

Second Quarter Fiscal Year 2021 Financial Review
Revenue for the second quarter of fiscal year 2021 was $0.1 million compared to $0.2 million for the same period in the prior year. The decrease of $0.1 million was primarily due to lower revenue from a project with Enel Green Power (EGP), while the same period in the prior year included revenue from projects with Premier Oil and the U.S. Navy. The net loss for the second quarter of fiscal 2021 decreased by $0.2 million as compared to the second quarter of fiscal 2020, which was mainly attributable to decreased spending on product development costs.

Fiscal First Half 2021 Financial Review
Revenue for the first six months of fiscal year 2021 was $0.3 million compared to $0.4 million for the same period in the prior year. The decrease of $0.1 million was primarily due to lower revenue from projects with Premier Oil and the U.S. Navy, partially offset by higher revenue generated from the project with EGP in the current year. The net loss for the first six months of fiscal 2021 increased by $0.2 million as compared to the second quarter of fiscal 2020, which was mainly attributable to higher spending on selling, general, and administrative costs partly offset by decreased spending on product development costs.

Balance Sheet and Cash Flow
Total cash, cash equivalents, and restricted cash was $15.8 million as of October 31, 2020. Net cash used in operating activities decreased by $0.7 million during the first six months of fiscal 2021 to $5.7 million, as compared to the first six months of fiscal 2020. This decrease is mainly the result of lower cash spending on customer projects and product development costs in the current fiscal year period as compared to the same period in the prior fiscal year. On May 5, 2020, the Company received $0.9 million from the Paycheck Protection Program made available by the Coronavirus Aid, Relief and Economic Security Act, commonly referred to as the CARES Act.

Conference Call & Webcast
OPT will host a conference call and webcast to review its financial and operating results on Tuesday, December 8, 2020, at 11:00 A.M. Eastern Time. Interested parties may access the conference call by dialing 877-407-8291 (toll-free in the U.S.) or 201-689-8345 for international callers.

Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the Company's website at https://www.oceanpowertechnologies.com/investor-relations.

A digital replay will be available by telephone approximately two hours after the completion of the call and until February 8, 2021. It can be accessed 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
Headquartered in Monroe Township, New Jersey, OPT aspires to transform the world through durable, innovative, and cost-effective ocean energy solutions. Its PowerBuoy® solutions platform provides clean and reliable electric power and real-time data communications for remote offshore and subsea applications in markets such as offshore oil and gas, defense and security, science and research, and communications. 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 which could be inaccurate and which are 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 a 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 may be accessed on www.sec.gov or the Company's website in the Investor Relations section.


Ocean Power Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share data)
         
    October 31, 2020   April 30, 2020
    (Unaudited)    
ASSETS        
Current assets:        
Cash and cash equivalents   $ 15,244     $ 10,002  
Restricted cash, short-term     384       707  
Accounts receivable     -       105  
Contract assets     97       251  
Other current assets     1,129       588  
Total current assets     16,854       11,653  
Property and equipment, net     425       499  
Right-of-use asset, net     1,060       1,165  
Restricted cash, long-term     222       221  
Total assets   $ 18,561     $ 13,538  
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Loan payable   $ 350     $ -  
Accounts payable     148       220  
Accrued expenses     2,215       1,353  
Contract liabilities, current portion     109       100  
Right-of-use liability, current portion     244       229  
Warrant liabilities     -       -  
Paycheck protection program loan- current     396       -  
Total current liabilities     3,462       1,902  
Paycheck protection program loan, less current portion     495       -  
Right-of-use liability, less current portion     954       1,078  
Contract liabilities, less current portion     -       65  
Total liabilities     4,911       3,045  
Commitments and contingencies (Note 16)        
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 24,153,554 and 12,939,420 shares, respectively     24       13  
Treasury stock, at cost; 4,251 shares     (302 )     (302 )
Additional paid-in capital     240,648       231,101  
Accumulated deficit     (226,545 )     (220,136 )
Accumulated other comprehensive loss     (175 )     (183 )
Total stockholders' equity     13,650       10,493  
Total liabilities and stockholders’ equity   $ 18,561     $ 13,538  


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,
      2020       2019       2020       2019  
                 
Revenues   $ 118     $ 204     $ 287     $ 406  
Cost of revenues     216       288       550       655  
Gross loss     (98 )     (84 )     (263 )     (249 )
                 
Operating expenses:                
Engineering and product development costs     1,063       1,309       2,315       2,507  
Selling, general and administrative costs     1,841       1,838       3,828       3,534  
Total operating expenses     2,904       3,147       6,143       6,041  
Operating loss     (3,002 )     (3,231 )     (6,406 )     (6,290 )
                 
Gain due to the change in fair value of warrant liabilities     -       -       -       6  
Interest income, net     8       32       20       74  
Other expense, net     (33 )     -       (33 )     -  
Foreign exchange gain/(loss)     3       10       10       (4 )
Net loss   $ (3,024 )   $ (3,189 )   $ (6,409 )   $ (6,214 )
Basic and diluted net loss per share   $ (0.15 )   $ (0.51 )   $ (0.36 )   $ (1.01 )
Weighted average shares used to compute basic and diluted net loss per share     20,090,000       6,259,255       17,883,666       6,150,061  


Ocean Power Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
                 
            Six months ended October 31,
              2020       2019  
                         
             
Cash flows from operating activities:        
  Net loss   $ (6,409 )   $ (6,214 )
  Adjustments to reconcile net loss to net cash used in operating activities:        
    Foreign exchange (gain)/loss     (10 )     4  
    Depreciation of fixed assets     73       77  
    Amortization of right of use asset     105       96  
    Compensation expense related to stock option grants and restricted stock     223       168  
    Gain due to the change in fair value of warrant liabilities     -       (6 )
    Loss on disposal of property, plant and equipment     2       -  
    Changes in operating assets and liabilities:        
      Accounts receivable     105       (934 )
      Contract assets     154       (96 )
      Other assets     (499 )     (6 )
      Accounts payable     (72 )     (138 )
      Accrued expenses     812       (75 )
      Change in lease liability     (110 )     (96 )
      Contract liabilities     (56 )     802  
        Net cash used in operating activities     (5,682 )     (6,418 )
Cash flows from investing activities:        
  Purchase of property, plant and equipment     -       (41 )
        Net cash used in investing activities     -       (41 )
Cash flows from financing activities:        
  Proceeds from Paycheck Protection Program Loan     890       -  
  Proceeds from loan payable     467       -  
  Payment of loan payable     (117 )     -  
  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       746  
  Proceeds (costs) associated with exercise of pre-funded warrants     -       (18 )
  Acquisition of treasury stock     -       (1 )
        Net cash provided/ (used) by financing activities     10,575       727  
Effect of exchange rate changes on cash, cash equivalents and restricted cash     27       (5 )
        Net increase/(decrease) in cash, cash equivalents and restricted cash     4,920       (5,737 )
Cash, cash equivalents and restricted cash, beginning of period     10,930       17,159  
Cash, cash equivalents and restricted cash, end of period   $ 15,850     $ 11,422  
                 


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

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Source: Ocean Power Technologies, Inc.

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