Ocean Power Technologies Announces Fourth Quarter and Full-Year Fiscal 2021 Results

Rhea-AI Summary

Ocean Power Technologies (NYSE American: OPTT) reported its financial results for the fourth quarter and full fiscal year 2021, ending April 30, 2021. The company achieved a revenue of $0.6 million in Q4 and $1.2 million for the full year, marking a 28% decrease from fiscal 2020, largely due to COVID-19 project delays. The net loss for Q4 and the full year stood at $5.2 million and $14.8 million, respectively. However, the company maintains a strong cash position with $83.6 million in total cash and is optimistic about future growth opportunities following its acquisition of 3Dent Technology.

Positive

• Acquired 3Dent Technology, enhancing offshore engineering and consulting services.
• Strong cash position with $83.6 million in total cash.
• Operational milestones achieved with PB3 PowerBuoy® deployments.

Negative

• 28% revenue decline for fiscal year 2021 compared to 2020.
• Net loss increased to $14.8 million for the full fiscal year.
• Higher operational costs due to COVID-19 impacts.

Investor Conference Call and Webcast on July 20, 2021, at 11:00 A.M. ET

MONROE TOWNSHIP, N.J., July 19, 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 the fourth quarter and full fiscal year 2021, ended April 30, 2021.

Fiscal Year 2021 and Recent Operational Highlights

• Acquired 3Dent Technology to add offshore engineering and consulting services to the Company's portfolio of offerings
• Contracted with Adams Communication & Engineering Technology, Inc. ("ACET") for U.S. Navy Naval Postgraduate School's Sea, Land, Air, Military Research ("SLAMR") Initiative study
• Completed DeepStar® study of utilizing OPT's PB3 PowerBuoy® for deepwater subsea oil production applications
• Deployed a PB3 PowerBuoy® in Chile
• Achieved PB3 PowerBuoy® operational milestone in the Adriatic Sea
• Launched two new products: Hybrid PowerBuoy® and Subsea Battery
• Opened a Houston office to support energy sector business development
  

Management Commentary

"Despite the challenges presented by the COVID-19 pandemic, during fiscal year 2021, OPT continued its business progression, including the successful acquisition and integration of 3Dent Technology, which will open up new avenues for consulting services, and we significantly improved our cash position," said Philipp Stratmann, OPT's President and Chief Executive Officer. "I am proud to say that our offices have reopened, and we continue to operate with attention to safety as the pandemic subsides."

Stratmann continued, "I'm excited to be leading OPT at this juncture, and believe the Company is well-positioned for success in terms of products, solutions, and customer developments. Our growth strategy, including a particular focus on Maritime Domain Awareness and expansion in the ocean protection and ocean data markets, will help solidify our position as a leader in maritime power and data solutions." Stratmann concluded, "We are energized and excited for the year ahead and our plans to grow our business to benefit our shareholders."

Fourth Quarter and Fiscal Year 2021 Financial Review

Revenue for the fourth quarter of fiscal year 2021 was $0.6 million, essentially flat compared to the prior-year period, while revenue for the full fiscal year 2021 was $1.2 million, reflecting a 28% decrease from fiscal 2020. The decline in revenue for the full year was mainly attributable to COVID-19 pandemic-related project delays. The net loss for the fourth quarter and fiscal year 2021 was $5.2 million, and $14.8 million, respectively, representing increases over the prior year comparable periods primarily attributable to higher costs incurred due to COVID-19 pandemic-related delays, higher engineering, product development, and general and administrative costs, and the impact of an arbitration settlement.

Balance Sheet and Cash Flow
Total cash, cash equivalents, and restricted cash was $83.6 million as of April 30, 2021. Net cash used in operating activities increased by $1.1 million during the fiscal year ended April 30, 2021, to $11.7 million. The use of cash reflects the timing of the receipt of proceeds on the sale of net operating losses, which occurred subsequent to yearend for fiscal 2021, and within the fiscal year 2020.

Conference Call & Webcast

OPT will host a conference call and webcast to review its financial and operating results on Tuesday, July 20, 2021, 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 www.OceanPowerTechnologies.com/investor-relations.

A digital replay will be available by telephone approximately two hours after the completion of the call and until October 20, 2021. 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

Headquartered in Monroe Township, New Jersey, 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. 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)
				April 30, 2021				April 30, 2020
ASSETS
Current assets:
	Cash and cash equivalents			$	83,028			$	10,002
	Restricted cash, short-term				384				707
	Accounts receivable				350				105
	Contract assets				190				251
	Other current assets				487				588
		Total current assets			84,439				11,653
Property and equipment, net					406				499
Intangibles, net					274				-
Right-of-use asset, net					1,036				1,165
Restricted cash, long-term					222				221
		Total assets		$	86,377			$	13,538
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	687			$	220
	Accrued expenses				1,881				1,353
	Contract liabilities, current portion				-				100
	Right-of-use liability, current portion				495				229
	Litigation payable				1,224				-
	Liability classified stock awards				60				-
	Warrant liabilities				-				-
	Paycheck protection program loan- current				347				-
		Total current liabilities			4,694				1,902
Paycheck protection program loan, less current portion					396				-
Right-of-use liability, less current portion					819				1,078
Contract liabilities, less current portion					-				65
		Total liabilities			5,909				3,045
Commitments and contingencies (Note 17)
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 52,458,011 and 12,939,420 shares, respectively				52				13
	Treasury stock, at cost; 21,040 and 4,251 shares, respectively				(338	)			(302	)
	Additional paid-in capital				315,821				231,101
	Accumulated deficit				(234,896	)			(220,136	)
	Accumulated other comprehensive loss				(171	)			(183	)
		Total stockholders' equity			80,468				10,493
		Total liabilities and stockholders equity		$	86,377			$	13,538

Ocean Power Technologies, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
					Three months ended April 30,								Twelve months ended April 30,
						2021				2020				2021				2020
Revenues					$	601			$	551			$	1,206			$	1,682
Cost of revenues						1,031				452				2,279				1,787
		Gross loss				(430	)			99				(1,073	)			(105	)
Operating expenses:
	Engineering and product development costs					1,413				941				4,747				4,344
	Selling, general and administrative costs					2,179				1,288				7,772				6,916
		Total operating expenses				3,592				2,229				12,519				11,260
Operating loss						(4,022	)			(2,130	)			(13,592	)			(11,365	)
Gain due to the change in fair value of warrant liabilities						-				-				-				6
Litigation settlement						(1,224	)			-				(1,224	)			-
Interest income, net						79				23				124				124
Other expense, net						(34	)			-				(83	)			-
Foreign exchange gain/(loss)						1				(7	)			15				(12	)
Loss before income taxes						(5,200	)			(2,114	)			(14,760	)			(11,247	)
	Income tax benefit					-				895				-				895
Net loss					$	(5,200	)		$	(1,219	)		$	(14,760	)		$	(10,352	)
Basic and diluted net loss per share					$	(0.10	)		$	(0.13	)		$	(0.49	)		$	(1.44	)
	Weighted average shares used to compute
	basic and diluted net loss per share					51,286,196				9,679,968				30,018,838				7,209,732

Ocean Power Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
						Twelve months ended April 30,
							2021				2020
Cash flows from operating activities:
	Net loss					$	(14,760	)		$	(10,352	)
	Adjustments to reconcile net loss to net cash used in operating activities:
		Foreign exchange (gain)/loss					(15	)			12
		Depreciation of fixed assets					143				158
		Amortization of intangibles					6				-
		Amortization of right of use asset					223				197
		Compensation expense related to equity compensation					721				340
		Gain due to the change in fair value of warrant liabilities					-				(6	)
		Performance obligation shares compensation					60				-
		Net effect from disposal of property, plant and equipment					2				-
		Changes in operating assets and liabilities, net of acquisition:
			Accounts receivable				(245	)			(42	)
			Contract assets				61				(236	)
			Other assets				106				251
			Accounts payable				441				(92	)
			Accrued expenses				761				(585	)
			Litigation payable				1,224				-
			Change in lease liability				(237	)			(201	)
			Contract liabilities				(165	)			(23	)
				Net cash used in operating activities			(11,674	)			(10,579	)
Cash flows from investing activities:
	Cash acquired in acquisition						100				-
	Purchase of property, plant and equipment						(26	)			(65	)
				Net cash provided by (used in) investing activities			74				(65	)
Cash flows from financing activities:
	Proceeds from Paycheck Protection Program Loan						890				-
	Proceeds from loan payable						467				-
	Payment of loan payable						(467	)			-
	Proceeds from stock option exercises						184				-
	Payment of payroll taxes related to stock option exercises						(245	)			-
	Proceeds from issuance of common stock- Aspire financing
		net of issuance costs					14,393				1,021
	Proceeds from issuance of common stock- AGP At The Market offering,
		net of issuance costs					66,166				3,443
	Proceeds associated with exercise of common stock warrants						2,818				-
	Proceeds (costs) associated with exercise of pre-funded warrants						-				(16	)
	Acquisition of treasury stock						(36	)			(1	)
				Net cash provided by financing activities			84,170				4,447
Effect of exchange rate changes on cash, cash equivalents and restricted cash							134				(32	)
				Net increase/(decrease) in cash, cash equivalents and restricted cash			72,704				(6,229	)
Cash, cash equivalents and restricted cash, beginning of year							10,930				17,159
Cash, cash equivalents and restricted cash, end of year						$	83,634			$	10,930

FAQ

What were Ocean Power Technologies' (OPTT) financial results for Q4 2021?

In Q4 2021, Ocean Power Technologies reported a revenue of $0.6 million and a net loss of $5.2 million.

How did the COVID-19 pandemic affect OPTT's revenue in fiscal year 2021?

The COVID-19 pandemic caused project delays, leading to a 28% revenue decline to $1.2 million in fiscal year 2021.

What is the future outlook for Ocean Power Technologies after acquiring 3Dent Technology?

The acquisition of 3Dent Technology is expected to enhance OPTT's consulting services and support growth in maritime power solutions.

When will Ocean Power Technologies hold its investor conference call?

The investor conference call is scheduled for July 20, 2021, at 11:00 A.M. Eastern Time.