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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 Act of 1934

 

Date of Report (Date of earliest event reported): September 12, 2022

 

Ocean Power Technologies, Inc.
(Exact name of registrant as specified in its charter)

 

Delaware
(State or other jurisdiction of incorporation)

  001-33417
(Commission
File Number)
 

22-2535818
(I.R.S. Employer
Identification No.)

 

28 Engelhard Drive, Suite B
Monroe Township,
New Jersey
(Address of principal executive offices)
  08831
(Zip Code)

 

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

 

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 (see General Instruction A.2. below):

 

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 240.14-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CRF 240.133-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol (s)   Name of each exchange on which registered
Common Stock, $0.001 Par Value   OPTT   NYSE American

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On September 12, 2022, Ocean Power Technologies, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal first quarter ended July 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.

 

In accordance with General Instruction B.2 of Form 8-K, the information set forth in Item 2.02 and in the attached Exhibit 99.1 shall be deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

 

Item 9.01 Financial Statements and Exhibits.

 

Exhibit NumberDescription
   
*99.1 Press release dated September 12, 2022 regarding fiscal first quarter earnings.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

*Furnished herewith.

 

 

 

 

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.

 

Date: September 12, 2022

 

  OCEAN POWER TECHNOLOGIES, INC.
   
  /s/ Philipp Stratmann
  Philipp Stratmann
  President and Chief Executive Officer

 

 

 

 

Exhibit 99.1

 

 

Ocean Power Technologies, Inc. Announces First Quarter Fiscal 2023 Results

 

MONROE TOWNSHIP, N.J., September 12, 2022 (GLOBE NEWSWIRE) – Ocean Power Technologies, Inc. (“OPT” or “the Company”) (NYSE American: OPTT), a leader in innovative and cost-effective low-carbon marine data, power, and consulting service solutions, today announced financial results for its first quarter ended July 31, 2022.

 

1Q23 HIGHLIGHTS:

 

Revenues increased to $714,000 in 1Q23, as compared to $272,000 in 1Q22.
Selected by the U.S. Department of Energy (DOE) for the Phase II development of a next-generation wave energy converter. In the DOE’s recently published awards for clean energy Small Business Innovation Research (SBIR) projects, OPT will receive up to $1.1 million over the next 18-24 months to develop and test a modular and scalable Mass-on-Spring Wave Energy Converter (MOSWEC) PowerBuoy®.
Continued second round of field testing of a proprietary next-generation Maritime Domain Awareness (“MDA”) solution, which is scheduled to be completed in 3Q23.
Continued integration of MAR, including advancing the plans to start manufacturing WAM-Vs at our New Jersey facility.

 

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

 

“I was pleased with our results this quarter, particularly with the progress within business development, and I remain encouraged with our ability to achieve our $9.0 million bookings target for fiscal 2023. An example of our success was winning the DOE award for Phase II development of next generation technologies, which further advances our leading ocean energy generation capabilities and supports U.S. Government-led Energy Transition efforts. Additionally, we have seen increased demand for our WAM-V based solutions, from new and recurring customers, as well as continued traction within Strategic Consulting Services. We look forward to sharing our continued progress in the coming quarters.”

 

FINANCIAL HIGHLIGHTS – 1Q23

 

Income Statement:

 

Revenues increased to $714,000 in 1Q23, driven by sales and leases of the WAM-V and growth of Strategic Consulting Services.
Engineering and product development costs were $2.2 million for the 1Q23, which were in line with recent levels, as the trailing four-quarter average in FY22 was $2.3 million.
Selling, general, and administrative (SG&A) costs increased by $166,000 from the 4Q22 to $4.1 million for the 1Q23. This increase is mainly related to increased payroll related expenses in the quarter.
Net loss was $5.9 million for 1Q23, as compared to a net loss of $3.1 million for the 1Q22.

 

Balance Sheet and Cash Flow:

 

Combined cash, unrestricted cash, cash equivalents and short-term investments at July 31, 2022 and 2021 was $52.4 million and $77.7 million, respectively.
Bank debt was $0 at both July 31, 2022 and July 31, 2021.
Net cash used in operating activities for 1Q23 was $5.1 million, which was comparable to the 1Q22.

 

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Conference Call & Webcast

 

As announced on August 12, 2022, OPT will host a conference call and webcast to review its financial and operating results tomorrow morning, Tuesday, September 13, 2022, at 9:00 a.m. Eastern time. Philipp Stratmann, CEO, Bob Powers, CFO, and Joseph DiPietro, Treasurer and Controller, will host the call.

 

The dial-in numbers for the conference call are 877-407-8291 or 1-201-689-8345.

 

Live webcast: Link to 1Q23 Webcast for OPTT

 

A replay will be available by telephone approximately two hours after the call’s completion until December 13, 2022. You may access the replay by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers and using the Conference ID 1373 2125. The archived webcast will also be available on the OPT investor relations section of its website.

 

About Ocean Power Technologies

 

OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. Our PowerBuoy® platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. We also provide WAM-V® autonomous surface vessels (ASV) and marine robotics services through our wholly owned subsidiary Marine Advanced Robotics and strategic consulting services including simulation engineering, software engineering, concept design and motion analysis through our wholly owned subsidiary 3Dent. We are headquartered in Monroe Township, New Jersey, and have offices in Houston, Texas, and Richmond, California. 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 Quarterly Report on Form 10-Q that has been filed with the U.S. Securities and Exchange Commission. The Form 10-Q is accessible at www.sec.gov or the Investor Relations section of the Company’s website (www.OceanPowerTechnologies.com/investor-relations).

 

Contact Information

 

Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com

Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com

 

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Ocean Power Technologies, Inc. and Subsidiaries

 

Consolidated Balance Sheets

 

(in thousands, except share data)

 

   July 31, 2022   April 30, 2022 
    (Unaudited)       
ASSETS          
Current assets:          
Cash and cash equivalents  $9,176   $7,885 
Marketable securities   42,724    49,384 
Restricted cash, short-term   258    258 
Accounts receivable   119    482 
Contract assets   666    386 
Inventory   588    442 
Other current assets   480    467 
Total current assets   54,011    59,304 
Property and equipment, net   458    445 
Intangibles, net   4,096    4,136 
Right-of-use asset, net   677    752 
Restricted cash, long-term   219    219 
Goodwill  $8,537   $8,537 
Total assets  $67,998   $73,393 
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $1,058   $905 
Accrued expenses   1,090    877 
Contract liabilities   101    129 
Right-of-use liability, current portion   328    319 
Contingent liabilities, current portion   640    748 
Total current liabilities   3,217    2,978 
Deferred tax liability   203    203 
Contingent liabilities, less current portion   820    843 
Right-of-use liability, less current portion   446    538 
Total liabilities   4,686    4,562 
Commitments and contingencies (Note 13)          
Shareholders’ 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 55,921,880 shares and 55,905,213 shares, respectively; outstanding 55,898,528 shares and 55,881,861 shares, respectively   56    56 
Treasury stock, at cost; 23,352 shares   (341)   (341)
Additional paid-in capital   323,265    322,932 
Accumulated deficit   (259,622)   (253,770)
Accumulated other comprehensive loss   (46)   (46)
Total shareholders’ equity   63,312    68,831 
Total liabilities and shareholders’ equity  $67,998   $73,393 

 

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Ocean Power Technologies, Inc., and Subsidiaries

 

Consolidated Statements of Operations

 

(in thousands, except per share data)

 

   Three months ended July 31, 
   2022   2021 
         
Revenues  $714   $272 
Cost of revenues   520    423 
Gross margin (loss)   194    (151)
Change in fair value of contingent consideration   (131)    
Operating expenses   6,318    4,880 
Operating loss   (5,993)   (5,031)
           
Interest income, net   141    20 
Gain on extinguishment of PPP loan       891 
Loss before income taxes   (5,852)   (4,120)
Income tax benefit       1,041 
Net loss  $(5,852)  $(3,079)
Basic and diluted net loss per share  $(0.10)  $(0.06)
Weighted average shares used to compute basic and diluted net loss per share   55,889,651    52,458,011 

 

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OCEAN POWER TECHNOLOGIES, INC., AND SUBSIDIARIES

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

   Three months ended July 31, 
   2022   2021 
         
Cash flows from operating activities:          
Net loss  $(5,852)  $(3,079)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation of fixed assets   43    40 
Amortization of intangible assets   40    6 
Amortization of right of use asset   75    69 
Amortization of premium on marketable securities   220     
Gain on extinguishment of PPP Loan       (891)
Compensation expense related to equity compensation   333    390 
Change in contingent liability consideration   (131)    
Changes in operating assets and liabilities:          
Accounts receivable   363    (96)
Contract assets   (280)   (114)
Inventory   (146)    
Other assets   (13)   (20)
Accounts payable   154    (233)
Accrued expenses   212    (60)
Change in right of use lease liability   (82)   (75)
Contract liabilities   (28)    
Litigation payable       (1,224)
Net cash used in operating activities   (5,092)   (5,287)
Cash flows from investing activities:          
Redemptions of marketable securities   17,252     
Purchase of marketable securities   (10,813)    
Purchase of property, plant and equipment   (56)   (7)
Net cash provided by (used in) investing activities   6,383    (7)
Cash flows from financing activities:          
Proceeds from issuance of common stock        
Net cash provided by financing activities        
Effect of exchange rate changes on cash, cash equivalents and restricted cash       (14)
Net increase / (decrease) in cash, cash equivalents and restricted cash   1,291    (5,308)
Cash, cash equivalents and restricted cash, beginning of period   8,362    83,634 
Cash, cash equivalents and restricted cash, end of period  $9,653   $78,326 

 

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