Ocean Power Technologies, Inc. (Nasdaq:OPTT) today
announced financial results for its Fiscal 2017 second quarter
ended October 31, 2016.
George H. Kirby, President and Chief Executive Officer of OPT,
stated, "We continue to make measurable progress towards executing
on our strategic business plan, and we are pleased with the
developments throughout the second quarter and to date. Our
accomplishments include successfully completing a pre-requisite
stage gate review with MES and securing a new contract with the
U.S. Department of Defense Office of Naval Research to conduct the
design of a new mass-spring oscillating PowerBuoy for mission
critical sensors. In October we completed a public offering of
common stock with net proceeds of approximately $6.9 million. In
early November we secured a joint marketing agreement with
Sonalysts Inc., received court approval of the class action
settlement, and received nearly $700,000 through New Jersey’s
Technology Business Tax Certificate Transfer Program.”
Mr. Kirby continued, “We have continued our aggressive market
outreach through direct discussions with potential partners and
end-users in our target markets as an essential element of our
product launch and commercialization strategy. We also had two
PowerBuoys operating simultaneously off the coast of New Jersey
through October 2016. We retrieved our pre-commercial buoy in
October for updating to commercial status, while our commercial
buoy was retrieved in early December, upon completing all intended
testing and validation, to then be prepped and subsequently shipped
to MES in Japan. We believe these achievements provide us with
strong momentum going into our second half of the fiscal year."
Results for the Second Fiscal Quarter Ended October 31,
2016
For the three months ended October 31, 2016, OPT reported
revenue of $0.2 million, as compared to revenue of $0.5 million for
the three months ended October 31, 2015. The decrease in revenues
over the prior year was primarily related to lower revenue from MES
during the three months ended October 31, 2016 as compared to the
three months ended October 31, 2015, which included revenue from
our WavePort contract and billable work under our prior contracts
with the U.S. Department of Energy.
The net loss for the three months ended October 31, 2016 was
$1.0 million as compared to a net loss of $3.0 million for the
three months ended October 31, 2015. The decrease in net loss is
mainly attributable to lower selling, general, and administrative
costs and the decline in the fair market value of the common stock
warrants liability. These were partially offset by higher
product development costs.
Results for the Six Months Ended October 31,
2016
For the six months ended October 31, 2016, OPT reported revenue
of $0.4 million, as compared to revenue of $0.6 million for the six
months ended October 31, 2015. The net loss for the six
months ended October 31, 2016 was $4.8 million, as compared to a
net loss of $7.2 million for the six months ended October 31, 2015.
The decrease in net loss is due to lower product development costs
and selling, general, and administrative costs as well as the
decline in the fair market value of the common stock warrants
liability.
Balance Sheet and Available Cash
As of October 31, 2016, total cash, cash equivalents, and
marketable securities were $12.5 million, up from $6.8 million on
April 30, 2016. As of October 31, 2016 and April 30, 2016,
restricted cash was $0.3 million for each period. Net cash used in
operating activities was $6.3 million during the six months ended
October 31, 2016, which includes $0.7 million of costs related to
the litigation settlement of $0.5 million and additional legal
costs of $0.2 million, compared with $7.0 million for the six
months ended October 31, 2015. Excluding these items, net
cash used in operating activities was $5.6 million. During
the quarter ended October 31, 2016, OPT completed a public offering
of common stock wherein $6.9 million net proceeds were raised.
Conclusion
Mr. Kirby concluded, "We believe our combined ocean deployments,
aggressive market outreach to key stakeholders in our target
markets, and our utmost focus on achieving a reliable product with
a clear value proposition have strongly contributed to advancing
our commercialization efforts. We remain focused on progressing our
commercialization strategy by building strategic partnerships to
accelerate market access, expanding our product delivery and
support capabilities, and advancing application demonstrations for
early adopters.”
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 13, 2016, at 9:00 a.m. eastern time. Please call
1-844-473-0979 (toll free in the U.S.) or 574-990-1390 (for
international callers) and enter pass code 27058843. Additionally,
the call will be webcast live at the Company's website at
www.oceanpowertechnologies.com. A telephonic replay will be
available from 12:00 p.m. eastern time the day of the
teleconference until December 20, 2016. To listen to the archived
call, dial 1-855-859-2056 and enter pass code 27058843, 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.
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.
|
OCEAN POWER TECHNOLOGIES, INC. AND
SUBSIDIARIES |
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
ASSETS |
|
Oct 31, 2016 |
|
Apr 30, 2016 |
|
|
|
|
|
|
|
|
(unaudited) |
|
|
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
12,512,185 |
|
|
$ |
6,729,814 |
|
|
Marketable
securities |
|
|
25,000 |
|
|
|
75,000 |
|
|
Restricted
cash |
|
|
305,690 |
|
|
|
299,543 |
|
|
Unbilled
receivables |
|
|
102,730 |
|
|
|
37,465 |
|
|
Litigation
receivable |
|
|
2,500,000 |
|
|
|
2,500,000 |
|
|
Other
current assets |
|
|
385,308 |
|
|
|
116,805 |
|
|
|
|
|
|
Total
current assets |
|
|
15,830,913 |
|
|
|
9,758,627 |
|
Property
and equipment, net |
|
|
220,180 |
|
|
|
273,049 |
|
Other
noncurrent assets |
|
|
320,599 |
|
|
|
319,450 |
|
|
|
|
|
|
Total
assets |
|
$ |
16,371,692 |
|
|
$ |
10,351,126 |
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
142,781 |
|
|
$ |
372,700 |
|
|
Accrued
expenses |
|
|
2,881,505 |
|
|
|
2,674,841 |
|
|
Litigation
payable |
|
|
2,500,000 |
|
|
|
3,000,000 |
|
|
Unearned
revenue |
|
|
- |
|
|
|
39,146 |
|
|
Warrant
liabilities |
|
|
548,382 |
|
|
|
- |
|
|
Current
portion of long-term debt and capital lease obligations |
|
|
33,796 |
|
|
|
81,541 |
|
|
|
|
|
|
Total
current liabilities |
|
|
6,106,464 |
|
|
|
6,168,228 |
|
Long-term
debt and capital lease obligations |
|
|
41,167 |
|
|
|
54,567 |
|
Deferred
credits payable non-current |
|
|
600,000 |
|
|
|
600,000 |
|
|
|
|
|
|
Total
liabilities |
|
|
6,747,631 |
|
|
|
6,822,795 |
|
Commitments
and contingencies |
|
|
|
|
Ocean Power
Technologies, Inc. Stockholders’ equity: |
|
|
|
|
|
Common
stock, $0.001 par value; authorized 50,000,000 shares, |
|
|
|
|
|
|
issued
6,321,040 and 2,352,100 shares, respectively |
|
|
6,321 |
|
|
|
2,352 |
|
|
Treasury
stock, at cost; 13,254 and 6,894 shares, respectively |
|
|
(174,894 |
) |
|
|
(137,766 |
) |
|
Additional
paid-in capital |
|
|
192,632,350 |
|
|
|
181,670,121 |
|
|
Accumulated
deficit |
|
|
(182,676,542 |
) |
|
|
(177,884,011 |
) |
|
Accumulated
other comprehensive loss |
|
|
(163,174 |
) |
|
|
(122,365 |
) |
|
Total
equity |
|
|
9,624,061 |
|
|
|
3,528,331 |
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
|
$ |
16,371,692 |
|
|
$ |
10,351,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
|
Consolidated Statements of
Operations |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
Six Months Ended October 31, |
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Revenues |
|
|
$ |
169,964 |
|
|
$ |
494,412 |
|
|
$ |
372,353 |
|
|
$ |
600,078 |
|
|
Cost of
revenues |
|
|
|
125,146 |
|
|
|
494,412 |
|
|
|
252,431 |
|
|
|
600,078 |
|
|
|
|
Gross
profit |
|
|
44,818 |
|
|
|
- |
|
|
|
119,922 |
|
|
|
- |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Product
development costs |
|
|
1,307,734 |
|
|
|
1,177,656 |
|
|
|
2,944,106 |
|
|
|
3,660,444 |
|
|
|
Selling,
general and administrative costs |
|
|
1,723,737 |
|
|
|
1,821,993 |
|
|
|
3,242,296 |
|
|
|
3,728,938 |
|
|
|
|
Total
operating expenses |
|
|
3,031,471 |
|
|
|
2,999,649 |
|
|
|
6,186,402 |
|
|
|
7,389,382 |
|
|
Operating
loss |
|
|
|
(2,986,653 |
) |
|
|
(2,999,649 |
) |
|
|
(6,066,480 |
) |
|
|
(7,389,382 |
) |
|
Change in
fair value of warrant liabilities |
|
|
2,017,557 |
|
|
|
- |
|
|
|
1,265,488 |
|
|
|
- |
|
|
Interest
income, net |
|
|
2,232 |
|
|
|
3,712 |
|
|
|
2,046 |
|
|
|
8,835 |
|
|
Other
(expense) income, net |
|
|
- |
|
|
|
(8,080 |
) |
|
|
- |
|
|
|
242,927 |
|
|
Foreign
exchange gain (loss) |
|
|
1,780 |
|
|
|
(24,801 |
) |
|
|
6,415 |
|
|
|
(5,842 |
) |
|
Net
loss |
|
|
|
|
|
(965,084 |
) |
|
|
(3,028,818 |
) |
|
|
(4,792,531 |
) |
|
|
(7,143,462 |
) |
|
|
Less: Net
(profit) loss attributable to the non-controlling
interest |
|
|
|
|
|
|
|
|
|
in Ocean
Power Technologies (Australasia) Pty Ltd. |
|
|
- |
|
|
|
2,057 |
|
|
|
- |
|
|
|
(45,340 |
) |
|
Net loss
attributable to Ocean Power Technologies, Inc. |
|
$ |
(965,084 |
) |
|
$ |
(3,026,761 |
) |
|
$ |
(4,792,531 |
) |
|
$ |
(7,188,802 |
) |
|
Basic and
diluted net loss per share |
|
$ |
(0.25 |
) |
|
$ |
(1.71 |
) |
|
$ |
(1.51 |
) |
|
$ |
(4.08 |
) |
|
Weighted
average shares used to compute basic and |
|
|
|
|
|
|
|
|
|
|
diluted net
loss per share |
|
|
3,891,512 |
|
|
|
1,773,978 |
|
|
|
3,180,501 |
|
|
|
1,762,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCEAN POWER TECHNOLOGIES, INC. AND
SUBSIDIARIES |
Consolidated Statements of Cash
Flows |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended October 31, |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
|
Net
loss |
|
$ |
(4,792,531 |
) |
|
$ |
(7,143,462 |
) |
|
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Foreign
exchange (loss) gain |
|
|
(6,415 |
) |
|
|
5,842 |
|
|
|
|
Depreciation and amortization |
|
|
68,475 |
|
|
|
55,629 |
|
|
|
|
Compensation expense related to stock option grants &
restricted stock |
|
|
628,304 |
|
|
|
276,912 |
|
|
|
|
Change in
fair value of warrant liabilities |
|
|
(1,265,488 |
) |
|
|
- |
|
|
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
- |
|
|
|
(1,357 |
) |
|
|
|
|
Unbilled
receivables |
|
|
(65,265 |
) |
|
|
34,862 |
|
|
|
|
|
Other
current assets |
|
|
(269,157 |
) |
|
|
(144,364 |
) |
|
|
|
|
Other
noncurrent assets |
|
|
(35,690 |
) |
|
|
51,718 |
|
|
|
|
|
Accounts
payable |
|
|
(231,572 |
) |
|
|
(92,077 |
) |
|
|
|
|
Accrued
expenses |
|
|
(275,053 |
) |
|
|
(28,408 |
) |
|
|
|
|
Unearned
revenues |
|
|
(39,146 |
) |
|
|
- |
|
|
|
|
|
|
Net cash
used in operating activities |
|
|
(6,283,538 |
) |
|
|
(6,984,705 |
) |
Cash flows
from investing activities: |
|
|
|
|
|
Maturities
of marketable securities |
|
|
50,000 |
|
|
|
50,000 |
|
|
Restricted
cash |
|
|
(6,147 |
) |
|
|
50,829 |
|
|
Purchases
of equipment |
|
|
(11,500 |
) |
|
|
(11,130 |
) |
|
|
|
|
|
Net cash
provided by investing activities |
|
|
32,353 |
|
|
|
89,699 |
|
Cash flows
from financing activities: |
|
|
|
|
|
Proceeds
from issuance of common stock and related warrants, net of
costs |
|
|
12,151,764 |
|
|
|
4,798 |
|
|
Repayment
of debt |
|
|
(63,401 |
) |
|
|
(50,000 |
) |
|
Acquisition
of treasury stock |
|
|
(37,128 |
) |
|
|
(1,724 |
) |
|
|
|
|
|
Net cash
provided by (used in) financing activities |
|
|
12,051,235 |
|
|
|
(46,926 |
) |
Effect of
exchange rate changes on cash and cash equivalents |
|
|
(17,679 |
) |
|
|
(54,480 |
) |
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
|
|
5,782,371 |
|
|
|
(6,996,412 |
) |
Cash and
cash equivalents, beginning of period |
|
|
6,729,814 |
|
|
|
17,335,734 |
|
Cash and
cash equivalents, end of period |
|
$ |
12,512,185 |
|
|
$ |
10,339,322 |
|
Company Contact:
Matthew T. Shafer
Chief Financial Officer of OPT
Phone: 609-730-0400
Investor Relations Contact:
Andrew Barwicki
Barwicki Investor Relations Inc.
Phone: 516-662-9461
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