GlobeNewswire Inc | Sep 14, 2020 04:48PM EDT

September 14, 2020

MONROE TOWNSHIP, N.J., Sept. 14, 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 first quarter of fiscal year 2021 endedJuly 31, 2020.

Recent Operational Highlights

-- OPT announced two complementary new products: the hybrid PowerBuoy with solar panels and an efficientStirlingengine to power payloads independent of wave activity; and the Subsea Battery that is compatible with PowerBuoy products or deployable as a standalone power source. -- The Company unveiled a Surface Surveillance Solution integrating high-definition radar and cameras with state-of-the-art security sensors and software to enable agencies and organizations seeking to secure marine assets and territorial waters. -- OPT expanded its sales team with an Indonesia-based Southeast Asia representative to execute the Companys customer expansion strategy in the region. -- The Company opened a Houston office strategically located adjacent to the citys Energy Corridor as a base for regional sales and business development activities in support of Gulf of Mexicoand broaderU.S.and South America opportunities. -- OPTs PB3 PowerBuoy on lease to Eni and deployed in the Adriatic Sea reached a milestone surpassing more than 600 days of continuous operation.

Management CommentaryWe are fielding strong demand for proposals of OPT solutions from diverse markets, said George H. Kirby, President and Chief Executive Officer of OPT. With new products and solutions, and an expanding sales and business development presence, we believe that we are well-positioned to deliver on our commitment to grow our revenue.

First Quarter Fiscal Year 2021 Financial ReviewRevenue for the first quarter of fiscal year 2021 was$0.2 million, which was essentially flat compared to the first quarter of fiscal year 2020. Revenue for the three months ended July 31, 2020, was primarily derived from the Enel Green Power project, while revenue for the same period in the prior year was mainly from projects with Premier Oil and the U.S. Navy. The net loss for the first quarter of fiscal 2021 increased by$0.4 million as compared to the first quarter of fiscal 2020, which was mainly attributable to product development and administrative costs.

Balance Sheet and Cash FlowTotal cash, cash equivalents, and restricted cash was$12.0 millionas ofJuly 31, 2020. Net cash used in operating activities decreased by $0.9 million during the first quarter of fiscal 2021to$2.7 million, as compared to the first quarter of fiscal 2020. 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, September 15, 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 investor relations section of the Companys 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 December 15, 2020. It may 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 Companys 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 Companys 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 FollowAdditional information may be found in the Companys Annual Report on Form 10-K that has been filed with the U.S. Securities and Exchange Commission (SEC). The Form 10-K may be accessed on www.sec.gov or the Companys website in the Investor Relations section.

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

Ocean Power Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands, except share data) July 31, April 30, 2020 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 11,065 $ 10,002 Restricted cash- short-term 707 707 Accounts receivable 21 105 Contract assets 366 251 Other current assets 447 588 Total current assets 12,606 11,653 Property and equipment, net 462 499 Right-of-use asset, net 1,113 1,165 Restricted cash- long-term 221 221 Total assets $ 14,402 $ 13,538 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 228 $ 220 Accrued expenses 1,783 1,353 Contract liabilities- current 87 100 Right-of-use liability- current 236 229 Warrant liabilities - - Paycheck protection program loan- current 396 - Total current liabilities 2,730 1,902 Right-of-use liability less current portion 1,017 1,078 Contract liabilities less current portion 44 65 Paycheck protection program loan less current 494 - portion Total liabilities 4,285 3,045 Commitments and contingencies (Note 15) 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 18,624,816 and 12,939,420 shares, 19 13 respectively Treasury stock, at cost; 4,251 shares (302 ) (302 ) Additional paid-in capital 234,089 231,101 Accumulated deficit (223,521 ) (220,136 ) Accumulated other comprehensive loss (168 ) (183 ) Total stockholders' equity 10,117 10,493 Total liabilities and stockholders? equity $ 14,402 $ 13,538

Ocean Power Technologies, Inc. and Subsidiaries Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) Three months ended July 31, 2020 2019 Revenues $ 169 $ 202 Cost of revenues 334 367 Gross loss (165 ) (165 ) Operating expenses: Engineering and product development costs 1,252 1,198 Selling, general and administrative costs 1,987 1,697 Total operating expenses 3,239 2,895 Operating loss (3,404 ) (3,060 ) Gain due to the change in fair value of warrant - 6 liabilitiesInterest income, net 11 42 Foreign exchange gain/(loss) 8 (13 )Net loss $ (3,385 ) (3,025 )Basic and diluted net loss per share $ (0.22 ) $ (0.50 ) Weighted average shares used to compute basic and diluted net loss per 15,677,331 6,040,466 share

Ocean Power Technologies, Inc. and SubsidiariesConsolidated Statements of Cash Flows(in thousands)(Unaudited) Three months ended July 31, 2020 2019 Cash flows from operating activities: Net loss $ (3,385 ) $ (3,025 ) Adjustments to reconcile net loss to net cash used in operating activities: Foreign exchange (gain)/loss (8 ) 13 Depreciation of fixed assets 37 85 Amortization of right of use asset 52 - Compensation expense related to stock option 116 92 grants and restricted stock Gain due to the change in fair value of - (6 ) warrant liabilities Changes in operating assets and liabilities: Accounts receivable 84 (9 ) Contract assets (115 ) (121 ) Other assets 181 (30 ) Accounts payable 8 (215 ) Accrued expenses 381 (332 ) Change in lease liability (54 ) (47 ) Contract liabilities (34 ) (10 ) Net cash used in operating activities (2,737 ) (3,605 )Cash flows from investing activities: Purchase of computers, equipment and furniture - (28 ) Net cash used in investing activities - (28 )Cash flows from financing activities: Proceeds from Paycheck Protection Program Loan 890 - Proceeds from issuance of common stock- Aspire financing net of issuance costs 2,635 - Proceeds from issuance of common stock- AGP At The Market offering, net of issuance costs 243 - Proceeds (costs) associated with exercise of - (18 ) pre-funded warrants Acquisition of treasury stock - (1 ) Net cash provided/ (used) by financing 3,768 (19 ) activitiesEffect of exchange rate changes on cash, cash 32 (20 )equivalents and restricted cash Net increase/(decrease) in cash, cash 1,063 (3,672 ) equivalents and restricted cashCash, cash equivalents and restricted cash, 10,930 17,159 beginning of periodCash, cash equivalents and restricted cash, end of $ 11,993 $ 13,487 period