GlobeNewswire Inc | Mar 5, 2021 04:30PM EST

March 05, 2021

MONROE TOWNSHIP, N.J., March 05, 2021 (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 third quarter of fiscal year 2021 endedJanuary 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 millionas ofJanuary 31, 2021. Net cash used in operating activities decreased by $0.1 million during the first nine months of fiscal 2021to$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 SubsidiariesConsolidated Balance Sheets(in thousands, except share data) January 31, April 30, 2021 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 495 - portionRight-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, 51 13 respectively Treasury stock, at cost; 21,040 and 4,251 (338 ) (302 ) shares, respectively 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 SubsidiariesConsolidated 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/ (381 ) 44 (644 ) (204 ) (loss) Operating expenses: Engineering and product 1,019 896 3,334 3,403 development costs Selling, general and 1,763 2,093 5,591 5,629 administrative costs Total operating 2,782 2,989 8,925 9,032 expensesOperating loss (3,163 ) (2,945 ) (9,569 ) (9,236 ) Gain due to thechange in fair value - - - 6 of warrantliabilitiesInterest income, 25 27 45 102 netOther expense, (16 ) - (49 ) - netForeign exchange 3 (1 ) 13 (5 )gain/(loss)Net loss $ (3,151 ) $ (2,919 ) $ (9,560 ) $ (9,133 )Basic and dilutednet loss per $ (0.09 ) $ (0.46 ) $ (0.41 ) $ (1.40 )share Weighted average shares used to compute basic and diluted net 33,715,334 6,318,162 23,160,885 6,543,500 loss per share

Ocean Power Technologies, Inc. and SubsidiariesConsolidated 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 338 225 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 (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 (8,525 ) (8,631 ) activitiesCash flows from investing activities: Purchase of property, plant and equipment (17 ) (61 ) Net cash used in investing (17 ) (61 ) activitiesCash flows from financing activities: Proceeds from Paycheck Protection Program 890 - Loan 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 769 - stock warrants Proceeds (costs) associated with exercise of - (16 ) pre-funded warrants Acquisition of treasury stock (36 ) (1 ) Net cash provided by financing 77,987 2,353 activitiesEffect of exchange rate changes on cash, cash 32 (15 )equivalents and restricted cash Net increase/(decrease) in cash, cash 69,477 (6,354 ) equivalents and restricted cashCash, cash equivalents and restricted cash, 10,930 17,159 beginning of periodCash, cash equivalents and restricted cash, end $ 80,407 $ 10,805 of period

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