Ocean Power Technologies Announces Third Quarter FY2021 Results
March 05 2021 - 4:30PM
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 third
quarter of fiscal year 2021 ended January 31, 2021.
Recent Operational Highlights
- Acquired 3Dent Technology, adding
offshore engineering and design services and an established project
and customer base.
- Planned first OPT PowerBuoy® remote
deployment.
- Strengthened its liquidity position
with an increase in total cash of $80.4 million.
Management Commentary"OPT's third quarter
brought dramatic change to our company," said George H. Kirby,
OPT's President and Chief Executive Officer. "We acquired 3Dent
Technology, which we believe is an important step for our long-term
growth strategy and for expanding our offerings of autonomous clean
ocean energy and data solutions. Additionally, we planned our first
remote installation of a turnkey wave energy-powered subsea data
collection system in Chile, which we believe offers flexibility and
cost-reduction to our customers. We also welcomed three new
directors to our board who bring valuable expertise in offshore
energy, safety, finance and governance."
Kirby further said, "A key goal for us this year was to bolster
our financial position, improve our liquidity and reduce our
capital risk, and we believe that we've made great strides towards
those efforts. During the fiscal year, the Company has generated
$76.1 million in net proceeds through utilization of its ATM
Facilities and Equity Line Common Stock Purchase Agreements,
including $66.7 in net proceeds raised during the third quarter,
during which we saw an increase in share price. Additionally,
the Company's liquidity position has improved due to cost-cutting
measures that were put in place at the beginning of the year. We
believe that the Company's unrestricted cash balance of
approximately $79.8 million as of January 31, 2021, in addition to
continued prudent cost management, will provide us with the capital
necessary to fund ongoing operations as well as the financial
flexibility to execute on our growth strategy, consisting of market
expansion, sales cycle acceleration, development of new products
and solutions, and strategic acquisitions."
Third Quarter and First Nine Months
Fiscal Year 2021 Financial ReviewRevenue for the third
quarter of fiscal year 2021 was $0.3 million compared to $0.7
million for the same period in the prior year, and the net loss for
the third quarter of fiscal 2021 increased by $0.3 million as
compared to the third quarter of fiscal 2020. Revenue for the first
nine months of fiscal year 2021 was $0.6 million compared to
$1.1 million for the same period in the prior year, and the net
loss for the first nine months of fiscal 2021 increased
by $0.5 million as compared to the same period in the prior
year. The decrease in revenue and increase in net loss for the
third quarter and first nine months of fiscal 2021 were mainly
attributable to pandemic-related delays of the Company's
revenue-generating projects.
Balance Sheet and Cash FlowTotal cash, cash
equivalents, and restricted cash was $80.4 million as
of January 31, 2021. Net cash used in operating activities
decreased by $0.1 million during the first nine months of fiscal
2021 to $8.5 million, as compared to the first nine
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. During the nine months ended January 31,
2021, the Company's At-The-Market agreements and equity line
agreements with Aspire Capital generated net proceeds of $76.1
million.
Conference Call & WebcastOPT will host a
conference call and webcast to review its financial and operating
results on Tuesday, March 9, 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
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
June 9, 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 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) |
|
|
|
|
|
|
|
|
|
January 31, 2021 |
|
April 30, 2020 |
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
79,801 |
|
|
$ |
10,002 |
|
|
Restricted cash, short-term |
|
|
384 |
|
|
|
707 |
|
|
Accounts receivable |
|
|
- |
|
|
|
105 |
|
|
Contract assets |
|
|
63 |
|
|
|
251 |
|
|
Other current assets |
|
|
1,001 |
|
|
|
588 |
|
|
Total current assets |
|
|
81,249 |
|
|
|
11,653 |
|
Property and equipment, net |
|
|
417 |
|
|
|
499 |
|
Right-of-use asset, net |
|
|
1,005 |
|
|
|
1,165 |
|
Restricted cash, long-term |
|
|
222 |
|
|
|
221 |
|
|
Total assets |
|
$ |
82,893 |
|
|
$ |
13,538 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
|
Loan payable |
|
$ |
175 |
|
|
$ |
- |
|
|
Accounts payable |
|
|
74 |
|
|
|
220 |
|
|
Accrued expenses |
|
|
2,340 |
|
|
|
1,353 |
|
|
Contract liabilities, current portion |
|
|
75 |
|
|
|
100 |
|
|
Right-of-use liability, current portion |
|
|
252 |
|
|
|
229 |
|
|
Warrant liabilities |
|
|
- |
|
|
|
- |
|
|
Paycheck protection program loan- current |
|
|
396 |
|
|
|
- |
|
|
Total current liabilities |
|
|
3,312 |
|
|
|
1,902 |
|
Paycheck protection program loan, less current portion |
|
|
495 |
|
|
|
- |
|
Right-of-use liability, less current portion |
|
|
887 |
|
|
|
1,078 |
|
Contract liabilities, less current portion |
|
|
- |
|
|
|
65 |
|
|
Total liabilities |
|
|
4,694 |
|
|
|
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 50,589,809 and 12,939,420 shares, respectively |
|
|
51 |
|
|
|
13 |
|
|
Treasury stock, at cost; 21,040 and 4,251 shares, respectively |
|
|
(338 |
) |
|
|
(302 |
) |
|
Additional paid-in capital |
|
|
310,342 |
|
|
|
231,101 |
|
|
Stock subscription receivable |
|
|
(1,983 |
) |
|
|
- |
|
|
Accumulated deficit |
|
|
(229,696 |
) |
|
|
(220,136 |
) |
|
Accumulated other comprehensive loss |
|
|
(177 |
) |
|
|
(183 |
) |
|
Total stockholders' equity |
|
|
78,199 |
|
|
|
10,493 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
82,893 |
|
|
$ |
13,538 |
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 31, |
|
Nine months ended January 31, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
317 |
|
|
$ |
725 |
|
|
$ |
604 |
|
|
$ |
1,131 |
|
Cost of revenues |
|
|
698 |
|
|
|
681 |
|
|
|
1,248 |
|
|
|
1,335 |
|
|
|
Gross profit/(loss) |
|
|
(381 |
) |
|
|
44 |
|
|
|
(644 |
) |
|
|
(204 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering and product development costs |
|
|
1,019 |
|
|
|
896 |
|
|
|
3,334 |
|
|
|
3,403 |
|
|
Selling, general and administrative costs |
|
|
1,763 |
|
|
|
2,093 |
|
|
|
5,591 |
|
|
|
5,629 |
|
|
|
Total operating expenses |
|
|
2,782 |
|
|
|
2,989 |
|
|
|
8,925 |
|
|
|
9,032 |
|
Operating loss |
|
|
(3,163 |
) |
|
|
(2,945 |
) |
|
|
(9,569 |
) |
|
|
(9,236 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain due to the change in fair value of warrant liabilities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
Interest income, net |
|
|
25 |
|
|
|
27 |
|
|
|
45 |
|
|
|
102 |
|
Other expense, net |
|
|
(16 |
) |
|
|
- |
|
|
|
(49 |
) |
|
|
- |
|
Foreign exchange gain/(loss) |
|
|
3 |
|
|
|
(1 |
) |
|
|
13 |
|
|
|
(5 |
) |
Net loss |
|
$ |
(3,151 |
) |
|
$ |
(2,919 |
) |
|
$ |
(9,560 |
) |
|
$ |
(9,133 |
) |
Basic and diluted net loss per share |
|
$ |
(0.09 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.41 |
) |
|
$ |
(1.40 |
) |
|
Weighted average shares used to compute |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and diluted net loss per share |
|
|
33,715,334 |
|
|
|
6,318,162 |
|
|
|
23,160,885 |
|
|
|
6,543,500 |
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Power Technologies, Inc. and
Subsidiaries |
Consolidated Statements of Cash Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended January 31, |
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(9,560 |
) |
|
$ |
(9,133 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Foreign exchange (gain)/loss |
|
|
(13 |
) |
|
|
5 |
|
|
|
Depreciation of fixed assets |
|
|
106 |
|
|
|
117 |
|
|
|
Amortization of right of use asset |
|
|
159 |
|
|
|
146 |
|
|
|
Compensation expense related to stock option grants and restricted
stock |
|
338 |
|
|
|
225 |
|
|
|
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 |
|
|
|
(7 |
) |
|
|
|
Contract assets |
|
|
188 |
|
|
|
(20 |
) |
|
|
|
Other assets |
|
|
(310 |
) |
|
|
19 |
|
|
|
|
Accounts payable |
|
|
(473 |
) |
|
|
(194 |
) |
|
|
|
Accrued expenses |
|
|
1,192 |
|
|
|
257 |
|
|
|
|
Change in lease liability |
|
|
(169 |
) |
|
|
(147 |
) |
|
|
|
Contract liabilities |
|
|
(90 |
) |
|
|
107 |
|
|
|
|
|
Net cash used in operating activities |
|
|
(8,525 |
) |
|
|
(8,631 |
) |
Cash flows from investing activities: |
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(17 |
) |
|
|
(61 |
) |
|
|
|
|
Net cash used in investing activities |
|
|
(17 |
) |
|
|
(61 |
) |
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from Paycheck Protection Program Loan |
|
|
890 |
|
|
|
- |
|
|
Proceeds from loan payable |
|
|
467 |
|
|
|
- |
|
|
Payment of loan payable |
|
|
(292 |
) |
|
|
- |
|
|
Proceeds from stock option exercises |
|
|
40 |
|
|
|
- |
|
|
Proceeds from issuance of common stock- Aspire financing |
|
|
|
|
|
|
|
|
|
|
net of issuance costs |
|
|
9,983 |
|
|
|
850 |
|
|
Proceeds from issuance of common stock- AGP At The Market
offering, |
|
|
|
|
|
|
|
|
|
|
net of issuance costs |
|
|
66,166 |
|
|
|
1,520 |
|
|
Proceeds associated with exercise of common stock warrants |
|
|
769 |
|
|
|
- |
|
|
Proceeds (costs) associated with exercise of pre-funded
warrants |
|
|
- |
|
|
|
(16 |
) |
|
Acquisition of treasury stock |
|
|
(36 |
) |
|
|
(1 |
) |
|
|
|
|
Net cash provided by financing activities |
|
|
77,987 |
|
|
|
2,353 |
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
32 |
|
|
|
(15 |
) |
|
|
|
|
Net increase/(decrease) in cash, cash equivalents and restricted
cash |
|
69,477 |
|
|
|
(6,354 |
) |
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
10,930 |
|
|
|
17,159 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
80,407 |
|
|
$ |
10,805 |
|
|
|
|
|
|
|
|
|
|
Contact Information
Investors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.com
Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
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