GlobeNewswire Inc | Dec 7, 2020 04:30PM EST

December 07, 2020

MONROE TOWNSHIP, N.J., Dec. 07, 2020 (GLOBE NEWSWIRE) -- 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 endedOctober 31, 2020.

Recent Operational Highlights

-- Signed contract withAdams Communications & Engineering Technology(ACET) to evaluate a PB3 PowerBuoysolution to support theU.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 millionas ofOctober 31, 2020. Net cash used in operating activities decreased by $0.7 million during the first six months of fiscal 2021to$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.govor the Company's website in the Investor Relations section.

Ocean Power Technologies, Inc. and SubsidiariesConsolidated Balance Sheets(in thousands, except share data) October 31, April 30, 2020 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 495 - portionRight-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 outstandingCommon stock, $0.001 par value; authorized100,000,000 shares, issued 24,153,554 and 24 13 12,939,420 shares, respectivelyTreasury 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 SubsidiariesConsolidated 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 216 288 550 655 revenuesGross loss (98 ) (84 ) (263 ) (249 ) Operating expenses:Engineeringand product 1,063 1,309 2,315 2,507 developmentcostsSelling,general and 1,841 1,838 3,828 3,534 administrativecostsTotaloperating 2,904 3,147 6,143 6,041 expensesOperating loss (3,002 ) (3,231 ) (6,406 ) (6,290 ) Gain due tothe change infair value of - - - 6 warrantliabilitiesInterest 8 32 20 74 income, netOther expense, (33 ) - (33 ) - netForeignexchange gain/ 3 10 10 (4 )(loss)Net loss $ (3,024 ) $ (3,189 ) $ (6,409 ) $ (6,214 )Basic anddiluted net $ (0.15 ) $ (0.51 ) $ (0.36 ) $ (1.01 )loss per shareWeightedaverage sharesused tocompute basic 20,090,000 6,259,255 17,883,666 6,150,061 and dilutednet loss pershare

Ocean Power Technologies, Inc. and SubsidiariesConsolidated 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 223 168 option grants and restricted stock Gain due to the change in fair value of - (6 ) warrant liabilities Loss on disposal of property, plant and 2 - equipment 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 (5,682 ) (6,418 ) activitiesCash flows from investing activities: Purchase of property, plant and equipment - (41 ) Net cash used in investing - (41 ) activitiesCash flows from financing activities: Proceeds from Paycheck Protection Program 890 - Loan Proceeds from loan payable 467 - Payment of loan payable (117 ) - Proceeds from issuance of common stock- 3,241 - Aspire financing net of issuance costs Proceeds from issuance of common stock- AGP At The Market offering, net of issuance 6,094 746 costs Proceeds (costs) associated with exercise of - (18 ) pre-funded warrants Acquisition of treasury stock - (1 ) Net cash provided/ (used) by 10,575 727 financing activitiesEffect of exchange rate changes on cash, cash 27 (5 )equivalents and restricted cash Net increase/(decrease) in cash, cash equivalents and restricted 4,920 (5,737 ) cashCash, cash equivalents and restricted cash, 10,930 17,159 beginning of periodCash, cash equivalents and restricted cash, end $ 15,850 $ 11,422 of period

Contact InformationInvestors: 609-730-0400 x401 or InvestorRelations@oceanpowertech.comMedia: 609-730-0400 x402 or MediaRelations@oceanpowertech.com