Ocean Power Technologies Readies Shipment of AI Capable Merrows™ PowerBuoy® for Naval Postgraduate School

Rhea-AI Summary

Ocean Power Technologies (NYSE American: OPTT) has completed the main assembly of a PowerBuoy® system for the Naval Postgraduate School (NPS). The system features AT&T® 5G technology and advanced subsea sensors, integrated with OPT's latest Merrows™ suite for AI-capable Maritime Domain Awareness.

The system is being prepared for shipment and deployment in early 2025, coinciding with NPS's January Technology Showcase. Once deployed, it will provide continuous, autonomous monitoring and data collection in a strategically significant maritime environment.

The project aims to demonstrate PowerBuoy's® capability as 5G communication nodes along the U.S. coastline, supporting maritime security and operational capabilities both above and below the surface.

Positive

• Successful completion of main assembly for Naval Postgraduate School contract
• Integration of advanced technologies (5G, AI, subsea sensors) expanding product capabilities
• Strategic deployment planned for early 2025
• Recent institutional investor support strengthening financial position

Negative

• None.

Insights

Maritime Technology Expert

The completion of the AI-capable Merrows™ PowerBuoy® assembly represents a significant technological milestone in maritime domain awareness (MDA). The integration of AT&T® 5G technology with advanced subsea sensors creates a sophisticated autonomous monitoring platform that addresses critical naval intelligence needs. The system's ability to provide continuous surveillance in strategically significant maritime environments while acting as a 5G communication node demonstrates a dual-use capability that could revolutionize coastal surveillance infrastructure.

The technological architecture combining AI capabilities with maritime power generation positions OPT uniquely in the defense technology sector. The integration of 5G connectivity significantly enhances the system's real-time data transmission capabilities, enabling faster decision-making processes for naval operations. This development could lead to potential follow-on contracts with other military branches and coastal security agencies seeking similar capabilities.

Defense Industry Analyst

The Naval Postgraduate School contract execution marks a crucial validation point for OPT's technology in the defense sector. The timing of the deployment alongside NPS's Technology Showcase in January 2025 strategically positions OPT to demonstrate its capabilities to key defense decision-makers. The recent institutional investor support mentioned strengthens OPT's ability to scale operations and pursue additional defense contracts.

The strategic value lies in the system's ability to establish persistent maritime domain awareness, a key priority for naval operations. The successful deployment could open doors to larger defense contracts, particularly given the increasing focus on autonomous systems in naval warfare. For investors, this represents a potential inflection point in OPT's market penetration strategy, though the $43.9M market cap suggests the market is still cautious about the company's execution capabilities.

Main Assembly Finalized--Further Progressing Strategic Plan

MONROE TOWNSHIP, N.J., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. (NYSE American: OPTT) (“OPT” or the “Company”), a leader in innovative and cost-effective low-carbon marine power, data, and service solutions, today announced it has finalized the main assembly of the previously announced PowerBuoy® for Naval Postgraduate School. The full system, which includes installing AT&T® 5G technology and integrating advanced subsea sensors into a PowerBuoy® equipped with OPT’s latest Merrows™ suite for AI capable seamless integration of Maritime Domain Awareness (MDA) across platforms, is now being readied for shipment ready for deployment in early 2025 alongside the Technology Showcase NPS is hosting in January. Once deployed, the PowerBuoy® will provide continuous, autonomous monitoring and data collection capabilities in one of the world’s most strategically significant maritime environments. This is another step forward in executing the Company’s robust strategic plan.

“We are very excited about completing this critical phase of our contract with NPS.  This phase advances our ability to highlight our PowerBuoy® AI capable Merrows™ technology as a vital tool for enhancing maritime security and operational capability above and below the surface," said Philipp Stratmann, CEO of Ocean Power Technologies. "Our continued scaling of our cutting-edge operations and best-in-class servicing of our customers is further supported by the recently announced support from an institutional investor. OPT continues to differentiate itself with technological advances. We believe the results from the upcoming deployment with NPS will also further demonstrate the ability to deploy PowerBuoy’s® as 5G communication nodes across the coastline of the United States. As more and more customers are looking for rapidly deployable systems, OPT’s superior technology and the aforementioned institutional financing will further enhance our growing services business."

For additional information about OPT, please visit our website Ocean Power Technologies.

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, including Merrows™, which provides AI capable seamless integration of Maritime Domain Awareness Systems across platforms. 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 (ASVs) and marine robotics services. The Company’s headquarters is in Monroe Township, New Jersey, with an additional office in Richmond, California. To learn more about OPT’s groundbreaking products, services and solutions, 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, including the continuing successful operations of the AI capable Merrows™ PowerBuoy®, success with NPS, the delivery of customer services, the conversion of potential customers to contracts and the realization of the potential revenue thereunder. 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.

FAQ

When will OPTT deploy its PowerBuoy system for Naval Postgraduate School?

The PowerBuoy system is scheduled for deployment in early 2025, alongside NPS's Technology Showcase in January.

What new technologies are integrated into OPTT's latest PowerBuoy system?

The system includes AT&T 5G technology, advanced subsea sensors, and OPT's Merrows™ suite for AI-capable Maritime Domain Awareness integration.

How will OPTT's PowerBuoy system benefit maritime operations?

The system will provide continuous, autonomous monitoring and data collection capabilities in strategically significant maritime environments, enhancing maritime security above and below the surface.

What is the strategic significance of OPTT's PowerBuoy deployment for coastal communications?

The deployment aims to demonstrate PowerBuoy's capability to serve as 5G communication nodes across the U.S. coastline, offering rapidly deployable systems for maritime operations.