Ocean Power Technologies Announces Results for the Fiscal First Quarter Ended July 31, 2016
September 12 2016 - 4:30PM
Ocean Power Technologies, Inc. (NASDAQ:OPTT)
(“OPT” or “the Company”) today announced financial results for its
Fiscal 2017 first quarter ended July 31, 2016 ("fiscal 2017").
George H. Kirby, President and Chief Executive
Officer of OPT, stated, "The first quarter of fiscal 2017 has been
a very eventful quarter for us on the technical, commercial and
financial fronts. In June, we redeployed the PB3-A1 PowerBuoy
off the coast of New Jersey, which included payloads from the
National Data Buoy Center and the Wildlife Conservation
Society. In July, we deployed our second PB3 PowerBuoy off
the coast of New Jersey, which is intended to be our first
commercial unit, and which includes a number of enhancements from
the PB3-A1. In June we announced our first commercial
agreement, which includes a six month PB3 PowerBuoy
lease. Also in June, we completed a registered direct
offering of common stock and warrants with net proceeds realized of
approximately $1.7 million. In July, we completed a public
offering of common stock and warrants with net proceeds realized of
approximately $3.6 million.”
Results for the First Fiscal Quarter Ended July 31,
2016
For the three months ended July 31, 2016, OPT
reported revenue of $0.2 million, as compared to revenue of $0.1
million for the three months ended July 31, 2015. The increase in
revenues compared with the prior year was primarily related to the
commercial contract we announced in June 2016 while the prior year
included revenue from prior contracts with the U.S. Department of
Energy. The net loss for the three months ended July 31, 2016
was $3.8 million as compared to a net loss of $4.1 million for the
three months ended July 31, 2015. The decrease in net loss is
primarily due to lower product development costs and lower selling,
general and administrative costs compared to the prior year,
resulting in an operating loss of $3.1 million vs. $4.4 million in
the prior year quarter.
Selling, general and administrative expenses
were $1.5 million in the fiscal 2017 quarter compared with $1.9
million in the prior year quarter, reflecting lower consulting,
legal and employee related costs.
Balance Sheet and Available Cash
As of July 31, 2016, total cash, cash
equivalents, and marketable securities were $9.1 million, up from
$6.8 million on April 30, 2016. As of July 31, 2016 and April 30,
2016, restricted cash was $0.3 million. Net cash used in operating
activities was $2.9 million during the quarter ended July 31, 2016,
slightly down from $3.1 million for the quarter ended July 31,
2015. During the quarter, OPT also completed two common stock and
warrant capital raises wherein a combined net $5.3 million was
raised.
Conclusion
Mr. Kirby concluded, "I am excited by our
commercial progress and the continued positive market feedback we
receive. I believe that our PowerBuoy represents a more
cost-effective alternative to incumbent solutions that generally
use more costly and less capable sources of power. We are
continuing to discuss new opportunities with potential customers as
part of our business development and commercialization efforts. We
are encouraged by the opportunities in our target markets,
including oil and gas, ocean observing, security and defense,
communications and offshore wind, each of which we believe can
derive significant benefits from our PB3 PowerBuoy power and
real-time communications solutions."
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, September 13, 2016, at 10:00 a.m. eastern time.
Please call (844) 473-0979 and enter pass code 77083698.
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 September 20, 2016. To listen to the archived
call, dial (855) 859-2056 and enter pass code 77083698, 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 of ocean wave power
generation and energy storage systems. OPT’s proprietary PowerBuoy®
technology is based on a cost-effective, scalable, modular, and
environmentally sound design which provides power and
communications for a number of markets and applications.
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 |
|
Jul 31, 2016 |
|
|
Apr 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
|
9,024,512 |
|
|
$ |
|
6,729,814 |
|
|
Marketable
securities |
|
|
100,000 |
|
|
|
|
75,000 |
|
|
Restricted
cash |
|
|
266,125 |
|
|
|
|
299,543 |
|
|
Accounts
receivable |
|
|
150,004 |
|
|
|
|
- |
|
|
Unbilled
receivables |
|
|
50,704 |
|
|
|
|
37,465 |
|
|
Litigation
receivable |
|
|
2,500,000 |
|
|
|
|
2,500,000 |
|
|
Other
current assets |
|
|
461,522 |
|
|
|
|
116,805 |
|
|
|
|
|
|
Total
current assets |
|
|
12,552,867 |
|
|
|
|
9,758,627 |
|
Property
and equipment, net |
|
|
248,101 |
|
|
|
|
273,049 |
|
Other
noncurrent assets |
|
|
324,085 |
|
|
|
|
319,450 |
|
|
|
|
|
|
Total
assets |
$ |
|
13,125,053 |
|
|
$ |
|
10,351,126 |
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
$ |
|
639,799 |
|
|
$ |
|
372,700 |
|
|
Accrued
expenses |
|
|
3,380,932 |
|
|
|
|
2,674,841 |
|
|
Litigation
payable |
|
|
2,500,000 |
|
|
|
|
3,000,000 |
|
|
Unearned
revenue |
|
|
- |
|
|
|
|
39,146 |
|
|
Warrant
Liability |
|
|
|
2,565,939 |
|
|
|
|
- |
|
|
Current
portion of long-term debt and capital lease obligation |
|
|
61,088 |
|
|
|
|
81,541 |
|
|
|
|
|
|
Total
current liabilities |
|
|
9,147,758 |
|
|
|
|
6,168,228 |
|
Long-term
debt and capital lease obligations |
|
|
44,273 |
|
|
|
|
54,567 |
|
Deferred
credits payable-noncurrent |
|
|
600,000 |
|
|
|
|
600,000 |
|
|
|
|
|
|
Total
liabilities |
|
|
9,792,031 |
|
|
|
|
6,822,795 |
|
Commitments
and contingencies |
|
|
|
|
|
Ocean Power
Technologies, Inc. Stockholders’ equity: |
|
|
|
|
|
|
Common
stock, $0.001 par value; authorized 50,000,000 shares, |
|
|
|
|
|
|
|
issued
3,551,850 and 2,352,100 shares, respectively |
|
|
3,552 |
|
|
|
|
2,352 |
|
|
Treasury
stock, at cost; 7,341 and 6,894 shares, respectively |
|
|
(141,887 |
) |
|
|
|
(137,766 |
) |
|
Additional
paid-in capital |
|
|
185,335,452 |
|
|
|
|
181,670,121 |
|
|
Accumulated
deficit |
|
|
(181,711,458 |
) |
|
|
|
(177,884,011 |
) |
|
Accumulated
other comprehensive loss |
|
|
(152,637 |
) |
|
|
|
(122,365 |
) |
|
|
|
|
|
Total Ocean
Power Technologies, Inc. stockholders’ equity |
|
|
3,333,022 |
|
|
|
|
3,528,331 |
|
Noncontrolling interest in Ocean Power Technologies (Australasia)
Pty Ltd. |
|
|
- |
|
|
|
|
- |
|
|
Total
equity |
|
|
3,333,022 |
|
|
|
|
3,528,331 |
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
|
13,125,053 |
|
|
$ |
|
10,351,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
|
Consolidated Statements of
Operations |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
July 31, 2016 |
|
|
April 30, 2015 |
|
|
Revenues |
|
$ |
|
202,389 |
|
|
$ |
|
105,666 |
|
|
|
Cost of
revenues |
|
|
|
127,285 |
|
|
|
|
105,666 |
|
|
|
|
|
Gross
profit |
|
|
75,104 |
|
|
|
|
- |
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Product
development costs |
|
|
1,636,372 |
|
|
|
|
2,482,788 |
|
|
|
|
Selling,
general and administrative costs |
|
|
1,518,559 |
|
|
|
|
1,906,945 |
|
|
|
|
|
Total
operating expenses |
|
|
3,154,931 |
|
|
|
|
4,389,733 |
|
|
|
Operating
loss |
|
|
|
(3,079,827 |
) |
|
|
|
(4,389,733 |
) |
|
|
Change in
fair value of warrant liability |
|
|
(752,069 |
) |
|
|
|
- |
|
|
|
Interest
(expense) income |
|
|
(186 |
) |
|
|
|
5,123 |
|
|
|
Other
income |
|
|
|
|
- |
|
|
|
|
251,007 |
|
|
|
Foreign
exchange (loss) gain |
|
|
4,635 |
|
|
|
|
18,959 |
|
|
|
Net
loss |
|
|
|
|
|
(3,827,447 |
) |
|
|
|
(4,114,644 |
) |
|
|
|
Less: Net
loss (gain) attributable to the noncontrolling interest |
|
|
|
|
|
|
|
|
|
in Ocean
Power Technologies (Australasia) Pty Ltd. |
|
|
- |
|
|
|
|
(47,397 |
) |
|
|
Net loss
attributable to Ocean Power Technologies, Inc. |
$ |
|
(3,827,447 |
) |
|
$ |
|
(4,162,041 |
) |
|
|
Basic and
diluted net loss per share |
$ |
|
(1.72 |
) |
|
$ |
|
(2.38 |
) |
|
|
Weighted
average shares used to compute basic and |
|
|
|
|
|
|
|
|
diluted net
loss per share |
|
|
2,228,585 |
|
|
|
|
1,751,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCEAN POWER TECHNOLOGIES, INC. AND
SUBSIDIARIES |
Consolidated Statements of Cash
Flows |
|
|
|
|
|
|
|
|
Three Months Ended July 31, |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
|
|
Net loss |
$ |
|
(3,827,447 |
) |
|
$ |
|
(4,114,644 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Foreign exchange loss |
|
|
(4,635 |
) |
|
|
|
(18,959 |
) |
|
|
|
Depreciation and amortization |
|
|
33,616 |
|
|
|
|
28,545 |
|
|
|
|
Compensation expense related to stock option grants and
restricted stock |
|
218,329 |
|
|
|
|
145,426 |
|
|
|
|
Change in fair value of warrant liability |
|
|
752,069 |
|
|
|
|
- |
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(150,004 |
) |
|
|
|
(20,411 |
) |
|
|
|
|
Unbilled receivables |
|
|
(13,239 |
) |
|
|
|
18,214 |
|
|
|
|
|
Other assets |
|
|
(345,223 |
) |
|
|
|
(236,828 |
) |
|
|
|
|
Other noncurrent assets |
|
|
(23,807 |
) |
|
|
|
(9,060 |
) |
|
|
|
|
Accounts payable |
|
|
263,773 |
|
|
|
|
(29,212 |
) |
|
|
|
|
Accrued expenses |
|
|
214,830 |
|
|
|
|
1,118,561 |
|
|
|
|
|
Unearned revenues |
|
|
(39,146 |
) |
|
|
|
0 |
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(2,920,884 |
) |
|
|
|
(3,118,368 |
) |
Cash flows
from investing activities: |
|
|
|
|
|
|
Purchases of marketable securities |
|
|
(25,000 |
) |
|
|
|
- |
|
|
Maturities of marketable securities |
|
|
- |
|
|
|
|
75,000 |
|
|
Restricted cash |
|
|
33,418 |
|
|
|
|
27,334 |
|
|
Purchases of equipment |
|
|
(4,561 |
) |
|
|
|
(9,223 |
) |
|
|
|
|
|
Net cash provided by investing activities |
|
|
3,857 |
|
|
|
|
93,111 |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
Proceeds from issuance of common stock and related warrants,
net of costs |
|
|
5,261,060 |
|
|
|
|
- |
|
|
Repayment of debt |
|
|
(32,244 |
) |
|
|
|
(25,000 |
) |
|
Acquisition of treasury stock |
|
|
(4,121 |
) |
|
|
|
(355 |
) |
|
|
|
|
|
Net cash (used in) provided by financing activities |
|
|
5,224,695 |
|
|
|
|
(25,355 |
) |
Effect of
exchange rate changes on cash and cash equivalents |
|
|
(12,970 |
) |
|
|
|
(47,869 |
) |
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
2,294,698 |
|
|
|
|
(3,098,481 |
) |
Cash and
cash equivalents, beginning of period |
|
|
6,729,814 |
|
|
|
|
17,335,734 |
|
Cash and
cash equivalents, end of period |
$ |
|
9,024,512 |
|
|
$ |
|
14,237,253 |
|
Supplemental disclosure of noncash investing and financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Ocean Power Technologies (NASDAQ:OPTT)
Historical Stock Chart
From Apr 2024 to May 2024
Ocean Power Technologies (NASDAQ:OPTT)
Historical Stock Chart
From May 2023 to May 2024