optt20151211_8k.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act

of 1934

 

Date of Report (Date of earliest event reported): December 14, 2015

 

OCEAN POWER TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

Delaware

 

001-33417

 

22-2535818

(State or other jurisdiction

of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

1590 Reed Road

Pennington, NJ

 

 

08534

(Address of principal executive offices)

 

(Zip Code)

 

Registrant's telephone number, including area code: (609) 730-0400

(Former name or former address, if changed since last report.)

 

  

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

  

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

  

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

  

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 


 

 
 

 

  

Item 2.02. Results of Operation and Financial Condition

 

On December 14, 2015, Ocean Power Technologies, Inc. (the "Company") issued a press release announcing its financial results for the fiscal second quarter ended October 31, 2015, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in this Form 8-K (including the exhibit hereto) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as and to the extent expressly set forth by specific reference in such a filing.

 

 

Item 9.01. Financial Statements and Exhibits

 

(d) Exhibits.

 

99.1 Press release issued by the Company dated December 14, 2015.

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

OCEAN POWER TECHNOLOGIES, INC.

 

 

Date: December 14, 2015 

By:  

/s/ Mark A. Featherstone  

 

 

 

Mark A. Featherstone

 

 

 

Chief Financial Officer 

 

 

ex99-1.htm

Exhibit 99.1

 

 

NEWS RELEASE

1590 Reed Road, Pennington, NJ 08534 609.730.0400

 

 

Ocean Power Technologies Announces Results for the
Fiscal
Second QuarterEnded October 31, 2015

 

PENNINGTON, N.J., December 14, 2015 (GLOBE NEWSWIRE) --Ocean Power Technologies, Inc. (Nasdaq: OPTT) today announced financial results for its Fiscal 2016 second quarter ended October 31, 2015.

 

George H. Kirby, President and Chief Executive Officer of OPT, stated, "I am pleased with our second quarter results as we executed on our objectives and achieved considerable progress on both the technical and commercial fronts. During the second quarter, we deployed the APB350 (A1) and initiated Accelerated Life Testing (ALT) on our redesigned APB350 PowerTakeoff system. We formed a Technical Advisory Panel (TAP) to provide critical industry feedback on market applications and requirements to increase our speed to market. Furthermore, we signed a Memorandum of Understanding (“MOU”) with Gardline Environmental, Ltd, one of our TAP members, to jointly investigate innovative metocean monitoring and maritime security systems for prospective customers.”

 

Mr. Kirby continued, “Consistent with our strategic pivot away from large grid-connected systems to smaller autonomous PowerBuoys, we have made considerable progress toward our next-generation APB350, which we are moving to commercialization. We expect the APB350 will feature an enhanced electrical storage system, a higher efficiency power management system, and “plug and play” capability, making it end-user payload agnostic. I am excited to announce this next-generation buoy has undergone a critical design review, and we expect the APB350 to undergo significant in-ocean and accelerated life testing in the next year. We currently project that in calendar year 2016, it will achieve a maturity level that will allow us to proceed with a commercial launch of our product.”

  

 
 

 

 

 

Ocean Power Technologies Announces Results for the First Quarter Ended October 31, 2015

Page 2 of 7

 

Results for the Second Fiscal Quarter Ended October 31, 2015

 

For the three months ended October 31, 2015, OPT reported revenue of $0.5 million, as compared to revenue of $1.7 million for the three months ended October 31, 2014. The decrease in revenues compared with the prior year was primarily related to decreased billable costs on our project with Mitsui Engineering & Shipbuilding ("MES") and with our contract with the U.S. Department of Energy (“DOE”). The MES project is currently undergoing a stage-gate review as discussed more fully in the MD&A section of our quarterly report on Form 10-Q for the second fiscal 2016 quarter ended October 31, 2015.

 

The net loss for the three months ended October 31, 2015 was $3.0 million as compared to a net loss of $4.4 million for the three months ended October 31, 2014. The decrease in net loss is primarily due to lower selling, general and administrative expenses including reduced third party consulting, site development and patent amortization costs. During the three months ended October 31, 2015, we recovered product development costs from prior periods under our cost-sharing contract with the European Union for our WavePort project. In addition, the prior year included $0.3 million of gross loss due to a change in project cost estimates related to the MES contract.

 

Results for the Six Months Ended October 31, 2015

 

For the six months ended October 31, 2015, OPT reported revenue of $0.6 million, as compared to revenue of $3.3 million for the six months ended October 31, 2014. The decrease in revenue is primarily related to decreased billable work for the DOE, WavePort and MES contracts.

 

The net loss for the six months ended October 31, 2015 was $7.1 million, as compared to a net loss of $7.7 million for the six months ended October 31, 2014. The decrease in the Company's net loss year-over-year primarily reflects increased estimated project costs associated with our contract with MES in the prior year period as well as reduced legal, third party consulting, site development costs and patent amortization expenses compared with the prior year period. These decreases were partially offset in part by higher product development costs related to our APB350 and PB40 projects.

 

Balance Sheet and Available Cash

 

As of October 31, 2015, total cash, cash equivalents, and marketable securities were $10.4 million, down from $17.4 million on April 30, 2015. As of October 31, 2015 and April 30, 2015, restricted cash was $0.4 million and $0.5 million, respectively. Net cash used in operating activities was $7.0 million during the six months ended October 31, 2015, compared with $12.1 million for the six months quarter ended October 31, 2014. The prior year reflects the return of $4.7 million related to an advance payment received from ARENA while the current year reflects costs related to increased deployment activity.

  

 
 

 

 

Ocean Power Technologies Announces Results for the First Quarter Ended October 31, 2015

Page 3 of 7

 

Conclusion

 

Mr. Kirby concluded, "We are especially encouraged by A1’s performance, particularly power generation to date, which has generated positive market feedback. We continue to believe that our PowerBuoys will be cost-effective alternatives to incumbent solutions that generally use less reliable and more costly sources of power, as well as enable new applications. Further, we remain focused on discussing new opportunities for joint development and projects with potential partners and customers as part of our commercialization efforts. Overall, we are excited about the growth opportunities in front of us, and we look forward to achieving further progress in the near future."

 

Conference Call Details

 

The Company will host a conference call and webcast to review financial and operating results. The call will be held on Tuesday, December 15, 2015, at 10:00 a.m. eastern time. Please call 1-844-864-2538 and enter pass code 5968623. Additionally, the call will be webcast live at the Company's website at www.oceanpowertechnologies.com. A telephonic replay will be available from 4:30 p.m. eastern time the day of the teleconference until December 14, 2016. To listen to the archived call, dial 1-855-859-2056 and enter pass code 5968623, or access the webcast replay via the Company website at www.oceanpowertechnologies.com, where a transcript will be posted once available.

 

About Ocean Power Technologies

 

Headquartered in Pennington, New Jersey, Ocean Power Technologies (Nasdaq:OPTT) is a pioneer in renewable wave-energy technology that converts ocean wave energy into electricity. OPT has developed and is seeking to commercialize its proprietary PowerBuoy® technology, which is based on a modular design and has undergone periodic ocean testing since 1997. OPT specializes in designing cost-effective, and environmentally sound ocean wave based power generation and management technology.

 

  

 
 

 

 

Ocean Power Technologies Announces Results for the First Quarter Ended October 31, 2015

Page 4 of 7

 

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 SEC 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 Quarterly Report on Form 10-Q that has been filed with the U.S. Securities and Exchange Commission (“SEC”). The Form 10-Q may be accessed at www.sec.gov or at the Company’s website in the Investor Relations section.

 

CONTACT:

 

Company Contact:  

 

Mark A. Featherstone,

 

Chief Financial Officer of OPT

 

Phone: 609-730-0400

Investor Contact:  

 

Shawn Severson

 

The Blueshirt Group

 

Phone: (415)489-2198

 

 
 

 

 

Ocean Power Technologies Announces Results for the First Quarter Ended October 31, 2015

Page 5 of 7

 

Consolidated Balance Sheets as of

October 31, 2015 and April 30, 2015

 

 

ASSETS

 

October 31, 2015

   

April 30, 2015

 
   

(Unaudited)

         

Current assets:

               

Cash and cash equivalents

  $ 10,339,322     $ 17,335,734  

Marketable securities

    25,000       75,000  

Restricted cash 

    437,732       438,561  

Accounts receivable

    104,827       103,470  

Unbilled receivables

    46,796       81,658  

Other current assets

    329,826       186,641  

Total current assets

    11,283,503       18,221,064  

Property and equipment, net

    219,403       263,898  

Restricted cash

    -       50,000  

Other noncurrent assets

    284,958       335,924  

Total assets

  $ 11,787,864     $ 18,870,886  

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable

  $ 258,655     $ 352,827  

Accrued expenses

    2,477,207       2,507,119  

Current portion of long-term debt

    100,000       100,000  

Total current liabilities

    2,835,862       2,959,946  

Long-term debt

    -       50,000  

Deferred credits 

    600,000       600,000  

Total liabilities

    3,435,862       3,609,946  
                 

Ocean Power Technologies, Inc. Stockholders’ equity:

               

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

    -       -  

Common stock, $0.001 par value; 105,000,000 authorized as of April 30, 2015, and 50,000,000 share authorized as of October 31, 2015; issued 1,836,620 and 1,838,720 shares, respectively

    1,837       1,839  

Treasury stock, at cost; 4,318 and 3,866 shares, respectively

    (133,740 )     (132,016 )

Additional paid-in capital

    180,730,459       180,803,339  

Accumulated deficit

    (171,943,857 )     (164,755,055 )

Accumulated other comprehensive loss

    (302,697 )     (229,915 )

Total Ocean Power Technologies, Inc. stockholders’ equity

    8,352,002       15,688,192  

Noncontrolling interest in Ocean Power Technologies (Australasia) Pty Ltd

    -       (427,252 )

Total equity

    8,352,002       15,260,940  

Total liabilities and stockholders’ equity

  $ 11,787,864     $ 18,870,886  

 

 
 

 

 

Ocean Power Technologies Announces Results for the First Quarter Ended October 31, 2015

Page 6 of 7 

 

Consolidated Statements of Operations

For the Three and Six Months Ended October 31, 2015 and 2014

(Unaudited) 

 

 

   

Three Months Ended

   

Six Months Ended

 
   

October 31,

   

October 31,

 
   

2015

   

2014

   

2015

   

2014

 

Revenues

  $ 494,412     $ 1,747,788       600,078     $ 3,288,316  

Cost of revenues

    494,412       1,998,076       600,078       3,965,240  

Gross loss

    -       (250,288 )     -       (676,924 )

Operating expenses:

                               

Product development costs

    1,177,656       1,224,487       3,660,444       1,144,432  

Selling, general and administrative costs

    1,821,993       2,708,878       3,728,938       5,831,850  

Total operating expenses

    2,999,649       3,933,365       7,389,382       6,976,282  

Operating loss

    (2,999,649 )     (4,183,653 )     (7,389,382 )     (7,653,206 )

Interest income (expense), net

    3,712       3,424       8,835       (55,196 )

Other Income (expense), net

    (8,080 )     -       242,927       185,000  

Foreign exchange loss

    (24,801 )     (216,249 )     (5,842 )     (221,907 )

Net loss

    (3,028,818 )     (4,396,478 )     (7,143,462 )     (7,745,309 )

Less: Net (profit) loss attributable to the noncontrolling interest in Ocean Power Technologies (Australasia) Pty Ltd.

    2,057       26,784       (45,340 )     92,863  

Net loss attributable to Ocean Power Technologies, Inc

  $ (3,026,761 )   $ (4,369,694 )     (7,188,802 )   $ (7,652,446 )

Basic and diluted net loss per share

  $ 1.71     $ (2.50 )     (4.08 )   $ (4.40 )

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

    1,773,978       1,748,156       1,762,805       1,747,312  

 

 
 

 

 

Ocean Power Technologies Announces Results for the First Quarter Ended October 31, 2015

Page 7 of 7 

 

Consolidated Statements of Cash Flows

For the Six Months Ended October 31, 2015 and 2014

(Unaudited)

 

   

Six Months Ended October 31,

 
   

2015

   

2014

 
                 

Cash flows from operating activities:

               

Net loss

  $ (7,143,462 )   $ (7,745,309 )

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

               

Foreign exchange (gain) loss

    5,842       221,907  

Depreciation and amortization

    55,629       486,640  

Compensation expense related to stock option grants and restricted stock

    276,912       153,153  

Changes in operating assets and liabilities:

               

Accounts receivable

    (1,357 )     308,731  

Unbilled receivables

    34,862       18,267  

Other current assets

    (144,364 )     291,903  

Other noncurrent assets

    51,718       (131,539 )

Accounts payable

    (92,077 )     (90,043 )

Accrued expenses

    (28,408 )     (38,258 )

Advance payment received from ARENA

    -       (4,709,055 )

Unearned revenues

    -       (877,374 )

Net cash used in operating activities

    (6,984,705 )     (12,110,977 )

Cash flows from investing activities:

               

Purchases of marketable securities

    -       (13,746,959 )

Maturities of marketable securities

    50,000       11,745,562  

Restricted cash

    50,829       6,712,559  

Purchases of equipment

    (11,130 )     (10,896 )

Net cash provided by (used in) investing activities

    89,699       4,700,266  

Cash flows from financing activities:

               

Repayment of debt

    (50,000 )     (50,000 )

Proceeds from the sale of common stock, net of issuance costs

    4,798       1,155  

Acquisition of treasury stock

    (1,724 )     (1,309 )

Net cash (used in) provided by financing activities

    (46,926 )     (50,154 )

Effect of exchange rate changes on cash and cash equivalents

    (54,480 )     (159,086 )

Net increase in cash and cash equivalents

    (6,996,412 )     (7,619,951 )

Cash and cash equivalents, beginning of period

    17,335,734       13,858,659  

Cash and cash equivalents, end of period

  $ 10,339,322     $ 6,238,708