Ocean Power Technologies Announces Second Quarter FY2021 Results
08 December 2020 - 8:30AM
Ocean Power Technologies, Inc. ("OPT" or "the Company")
(Nasdaq: OPTT), a leader in innovative and cost-effective ocean
energy solutions, today announced financial results for the second
quarter of fiscal year 2021 ended October 31, 2020.
Recent Operational
Highlights
- Signed contract with Adams
Communications & Engineering Technology (ACET) to evaluate
a PB3 PowerBuoy® solution to support the U.S. Navy's
Naval Postgraduate School's Sea, Land, Air, Military
Research (SLAMR) Initiative.
- Received DeepStar® project award to
study deployment and operational requirements of utilizing OPT's
PB3 PowerBuoy® to provide remotely controllable zero carbon power
for deepwater subsea oil production applications.
- Deployed the OPT Marine
Surveillance System on a hybrid PowerBuoy® off the New Jersey coast
for advanced testing and demonstration.
- Expanded OPT's commercial European
presence with oil and gas industry veteran Jorge Franco joining as
Regional Sales Representative, based in Spain.
- Executed a new Common Stock
Purchase Agreement with Aspire Capital to sell up to $12.5 million
in common stock to Aspire Capital over a term of 30 months, which
provides flexibility to access capital on a cost-effective
basis.
- Increased total cash, cash
equivalents, and restricted cash balances to $26.3 million.
Management Commentary"We are seeing
long-evolving projects come to fruition with two recent PB3
PowerBuoy®-related contracts with ACET and DeepStar," said George
H. Kirby, President and Chief Executive Officer of OPT. "Our
expanded sales footprint, coupled with our product and solution
suite and cash balance, positions OPT to be able to deliver on
anticipated market demand."
Second Quarter
Fiscal Year 2021 Financial
ReviewRevenue for the second quarter of fiscal year 2021
was $0.1 million compared to $0.2 million for the same period
in the prior year. The decrease of $0.1 million was primarily due
to lower revenue from a project with Enel Green Power (EGP), while
the same period in the prior year included revenue from projects
with Premier Oil and the U.S. Navy. The net loss for the second
quarter of fiscal 2021 decreased by $0.2 million as compared
to the second quarter of fiscal 2020, which was mainly attributable
to decreased spending on product development costs.
Fiscal First Half
2021 Financial
ReviewRevenue for the first six months of fiscal year 2021
was $0.3 million compared to $0.4 million for the same period
in the prior year. The decrease of $0.1 million was primarily due
to lower revenue from projects with Premier Oil and the U.S. Navy,
partially offset by higher revenue generated from the project with
EGP in the current year. The net loss for the first six months of
fiscal 2021 increased by $0.2 million as compared to the
second quarter of fiscal 2020, which was mainly attributable to
higher spending on selling, general, and administrative costs
partly offset by decreased spending on product development
costs.
Balance Sheet and Cash FlowTotal cash, cash
equivalents, and restricted cash was $15.8 million as
of October 31, 2020. Net cash used in operating activities
decreased by $0.7 million during the first six months of fiscal
2021 to $5.7 million, as compared to the first six months
of fiscal 2020. This decrease is mainly the result of lower cash
spending on customer projects and product development costs in the
current fiscal year period as compared to the same period in the
prior fiscal year. On May 5, 2020, the Company received $0.9
million from the Paycheck Protection Program made available by the
Coronavirus Aid, Relief and Economic Security Act, commonly
referred to as the CARES Act.
Conference Call & WebcastOPT will host a
conference call and webcast to review its financial and operating
results on Tuesday, December 8, 2020, 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
https://www.oceanpowertechnologies.com/investor-relations.
A digital replay will be available by telephone approximately
two hours after the completion of the call and until February 8,
2021. It can be accessed 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 TechnologiesHeadquartered in
Monroe Township, New Jersey, OPT aspires to transform the world
through durable, innovative, and cost-effective ocean energy
solutions. Its PowerBuoy® solutions platform provides clean and
reliable electric power and real-time data communications for
remote offshore and subsea applications in markets such as offshore
oil and gas, defense and security, science and research, and
communications. To learn more, visit
www.oceanpowertechnologies.com.
Forward-Looking StatementsThis 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 U.S. Securities and Exchange Commission 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 FollowAdditional 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 may be accessed on www.sec.gov or the Company's
website in the Investor Relations section.
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(in thousands, except share data) |
|
|
|
|
|
|
|
October 31, 2020 |
|
April 30, 2020 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
15,244 |
|
|
$ |
10,002 |
|
Restricted cash, short-term |
|
|
384 |
|
|
|
707 |
|
Accounts receivable |
|
|
- |
|
|
|
105 |
|
Contract assets |
|
|
97 |
|
|
|
251 |
|
Other current assets |
|
|
1,129 |
|
|
|
588 |
|
Total current assets |
|
|
16,854 |
|
|
|
11,653 |
|
Property and equipment, net |
|
|
425 |
|
|
|
499 |
|
Right-of-use asset, net |
|
|
1,060 |
|
|
|
1,165 |
|
Restricted cash, long-term |
|
|
222 |
|
|
|
221 |
|
Total assets |
|
$ |
18,561 |
|
|
$ |
13,538 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Loan payable |
|
$ |
350 |
|
|
$ |
- |
|
Accounts payable |
|
|
148 |
|
|
|
220 |
|
Accrued expenses |
|
|
2,215 |
|
|
|
1,353 |
|
Contract liabilities, current portion |
|
|
109 |
|
|
|
100 |
|
Right-of-use liability, current portion |
|
|
244 |
|
|
|
229 |
|
Warrant liabilities |
|
|
- |
|
|
|
- |
|
Paycheck protection program loan- current |
|
|
396 |
|
|
|
- |
|
Total current liabilities |
|
|
3,462 |
|
|
|
1,902 |
|
Paycheck protection program loan, less current portion |
|
|
495 |
|
|
|
- |
|
Right-of-use liability, less current portion |
|
|
954 |
|
|
|
1,078 |
|
Contract liabilities, less current portion |
|
|
- |
|
|
|
65 |
|
Total liabilities |
|
|
4,911 |
|
|
|
3,045 |
|
Commitments and contingencies (Note 16) |
|
|
|
|
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 24,153,554 and 12,939,420 shares, respectively |
|
|
24 |
|
|
|
13 |
|
Treasury stock, at cost; 4,251 shares |
|
|
(302 |
) |
|
|
(302 |
) |
Additional paid-in capital |
|
|
240,648 |
|
|
|
231,101 |
|
Accumulated deficit |
|
|
(226,545 |
) |
|
|
(220,136 |
) |
Accumulated other comprehensive loss |
|
|
(175 |
) |
|
|
(183 |
) |
Total stockholders' equity |
|
|
13,650 |
|
|
|
10,493 |
|
Total liabilities and stockholders’ equity |
|
$ |
18,561 |
|
|
$ |
13,538 |
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended October 31, |
|
Six months ended October 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
118 |
|
|
$ |
204 |
|
|
$ |
287 |
|
|
$ |
406 |
|
Cost of revenues |
|
|
216 |
|
|
|
288 |
|
|
|
550 |
|
|
|
655 |
|
Gross loss |
|
|
(98 |
) |
|
|
(84 |
) |
|
|
(263 |
) |
|
|
(249 |
) |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Engineering and product development costs |
|
|
1,063 |
|
|
|
1,309 |
|
|
|
2,315 |
|
|
|
2,507 |
|
Selling, general and administrative costs |
|
|
1,841 |
|
|
|
1,838 |
|
|
|
3,828 |
|
|
|
3,534 |
|
Total operating expenses |
|
|
2,904 |
|
|
|
3,147 |
|
|
|
6,143 |
|
|
|
6,041 |
|
Operating loss |
|
|
(3,002 |
) |
|
|
(3,231 |
) |
|
|
(6,406 |
) |
|
|
(6,290 |
) |
|
|
|
|
|
|
|
|
|
Gain due to the change in fair value of warrant liabilities |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
Interest income, net |
|
|
8 |
|
|
|
32 |
|
|
|
20 |
|
|
|
74 |
|
Other expense, net |
|
|
(33 |
) |
|
|
- |
|
|
|
(33 |
) |
|
|
- |
|
Foreign exchange gain/(loss) |
|
|
3 |
|
|
|
10 |
|
|
|
10 |
|
|
|
(4 |
) |
Net loss |
|
$ |
(3,024 |
) |
|
$ |
(3,189 |
) |
|
$ |
(6,409 |
) |
|
$ |
(6,214 |
) |
Basic and diluted net loss per share |
|
$ |
(0.15 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.01 |
) |
Weighted average shares used to compute basic and diluted net loss
per share |
|
|
20,090,000 |
|
|
|
6,259,255 |
|
|
|
17,883,666 |
|
|
|
6,150,061 |
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Cash Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended October 31, |
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(6,409 |
) |
|
$ |
(6,214 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Foreign exchange (gain)/loss |
|
|
(10 |
) |
|
|
4 |
|
|
|
Depreciation of fixed assets |
|
|
73 |
|
|
|
77 |
|
|
|
Amortization of right of use asset |
|
|
105 |
|
|
|
96 |
|
|
|
Compensation expense related to stock option grants and restricted
stock |
|
|
223 |
|
|
|
168 |
|
|
|
Gain due to the change in fair value of warrant liabilities |
|
|
- |
|
|
|
(6 |
) |
|
|
Loss on disposal of property, plant and equipment |
|
|
2 |
|
|
|
- |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
105 |
|
|
|
(934 |
) |
|
|
|
Contract assets |
|
|
154 |
|
|
|
(96 |
) |
|
|
|
Other assets |
|
|
(499 |
) |
|
|
(6 |
) |
|
|
|
Accounts payable |
|
|
(72 |
) |
|
|
(138 |
) |
|
|
|
Accrued expenses |
|
|
812 |
|
|
|
(75 |
) |
|
|
|
Change in lease liability |
|
|
(110 |
) |
|
|
(96 |
) |
|
|
|
Contract liabilities |
|
|
(56 |
) |
|
|
802 |
|
|
|
|
|
Net cash used in operating activities |
|
|
(5,682 |
) |
|
|
(6,418 |
) |
Cash flows from investing activities: |
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
- |
|
|
|
(41 |
) |
|
|
|
|
Net cash used in investing activities |
|
|
- |
|
|
|
(41 |
) |
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from Paycheck Protection Program Loan |
|
|
890 |
|
|
|
- |
|
|
Proceeds from loan payable |
|
|
467 |
|
|
|
- |
|
|
Payment of loan payable |
|
|
(117 |
) |
|
|
- |
|
|
Proceeds from issuance of common stock- Aspire financing net of
issuance costs |
|
|
3,241 |
|
|
|
- |
|
|
Proceeds from issuance of common stock- AGP At The Market offering,
net of issuance costs |
|
|
6,094 |
|
|
|
746 |
|
|
Proceeds (costs) associated with exercise of pre-funded
warrants |
|
|
- |
|
|
|
(18 |
) |
|
Acquisition of treasury stock |
|
|
- |
|
|
|
(1 |
) |
|
|
|
|
Net cash provided/ (used) by financing activities |
|
|
10,575 |
|
|
|
727 |
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
27 |
|
|
|
(5 |
) |
|
|
|
|
Net increase/(decrease) in cash, cash equivalents and restricted
cash |
|
|
4,920 |
|
|
|
(5,737 |
) |
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
10,930 |
|
|
|
17,159 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
15,850 |
|
|
$ |
11,422 |
|
|
|
|
|
|
|
|
|
|
Contact Information
Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com
Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
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