GlobeNewswire Inc | Jul 19, 2021 04:15PM EDT

July 19, 2021

MONROE TOWNSHIP, N.J., July 19, 2021 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc.("OPT" or "the Company") (NYSE American: OPTT), a leader in innovative and cost-effective low-carbon marine power, data, and service solutions, today announced financial results for the fourth quarter and full fiscal year 2021, endedApril 30, 2021.

Fiscal Year 2021 and Recent Operational Highlights

-- Acquired 3Dent Technology to add offshore engineering and consulting services to the Company's portfolio of offerings -- Contracted with Adams Communication & Engineering Technology, Inc. ("ACET") for U.S. Navy Naval Postgraduate School's Sea, Land, Air, Military Research ("SLAMR") Initiative study -- Completed DeepStar study of utilizing OPT's PB3 PowerBuoy for deepwater subsea oil production applications -- Deployed a PB3 PowerBuoy in Chile -- Achieved PB3 PowerBuoy operational milestone in the Adriatic Sea -- Launched two new products: Hybrid PowerBuoy and Subsea Battery -- Opened a Houston office to support energy sector business development

Management Commentary

"Despite the challenges presented by the COVID-19 pandemic, during fiscal year 2021, OPT continued its business progression, including the successful acquisition and integration of 3Dent Technology, which will open up new avenues for consulting services, and we significantly improved our cash position," said Philipp Stratmann, OPT's President and Chief Executive Officer. "I am proud to say that our offices have reopened, and we continue to operate with attention to safety as the pandemic subsides."

Stratmann continued, "I'm excited to be leading OPT at this juncture, and believe the Company is well-positioned for success in terms of products, solutions, and customer developments. Our growth strategy, including a particular focus on Maritime Domain Awareness and expansion in the ocean protection and ocean data markets, will help solidify our position as a leader in maritime power and data solutions." Stratmann concluded, "We are energized and excited for the year ahead and our plans to grow our business to benefit our shareholders."

Fourth Quarter and Fiscal Year 2021 Financial Review

Revenue for the fourth quarter of fiscal year 2021 was$0.6 million, essentially flat compared to the prior-year period, while revenue for the full fiscal year 2021 was$1.2 million, reflecting a 28% decrease from fiscal 2020. The decline in revenue for the full year was mainly attributable to COVID-19 pandemic-related project delays. The net loss for the fourth quarter and fiscal year 2021 was $5.2 million, and $14.8 million, respectively, representing increases over the prior year comparable periods primarily attributable to higher costs incurred due to COVID-19 pandemic-related delays, higher engineering, product development, and general and administrative costs, and the impact of an arbitration settlement.

Balance Sheet and Cash FlowTotal cash, cash equivalents, and restricted cash was$83.6 millionas ofApril 30, 2021. Net cash used in operating activities increased by $1.1 million during the fiscal year endedApril 30, 2021,to$11.7 million. The use of cash reflects the timing of the receipt of proceeds on the sale of net operating losses, which occurred subsequent to yearend for fiscal 2021, and within the fiscal year 2020.

Conference Call & Webcast

OPT will host a conference call and webcast to review its financial and operating results on Tuesday, July 20, 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 www.OceanPowerTechnologies.com/investor-relations.

A digital replay will be available by telephone approximately two hours after the completion of the call and until October 20, 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 Technologies

Headquartered in Monroe Township, New Jersey, OPT aspires to transform the world through durable, innovative, and cost-effective marine energy, data, and service solutions. Its PowerBuoy solutions platform provides clean and reliable electric power and real-time data communications for remote maritime and subsea applications in markets such as offshore oil and gas, defense and security, science and research, and offshore wind. To learn more, visit www.OceanPowerTechnologies.com.

Forward-Looking Statements

This 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 that could be inaccurate and 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 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 Follow

Additional 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 is accessible at www.sec.govor the Investor Relations section of the Company's website (www.OceanPowerTechnologies.com/investor-relations).

Ocean Power Technologies, Inc. and SubsidiariesConsolidated Balance Sheets(in thousands, except share data) April 30, 2021 April 30, 2020 ASSETS Current assets: Cash and cash equivalents $ 83,028 $ 10,002 Restricted cash, short-term 384 707 Accounts receivable 350 105 Contract assets 190 251 Other current assets 487 588 Total current assets 84,439 11,653 Property and equipment, net 406 499 Intangibles, net 274 - Right-of-use asset, net 1,036 1,165 Restricted cash, long-term 222 221 Total assets $ 86,377 $ 13,538 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 687 $ 220 Accrued expenses 1,881 1,353 Contract liabilities, current portion - 100 Right-of-use liability, current portion 495 229 Litigation payable 1,224 - Liability classified stock awards 60 - Warrant liabilities - - Paycheck protection program loan- 347 - current Total current liabilities 4,694 1,902 Paycheck protection program loan, less 396 - current portionRight-of-use liability, less current 819 1,078 portionContract liabilities, less current portion - 65 Total liabilities 5,909 3,045 Commitments and contingencies (Note 17) 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 and outstanding 52,458,011 and 52 13 12,939,420 shares, respectively Treasury stock, at cost; 21,040 and (338 ) (302 ) 4,251 shares, respectively Additional paid-in capital 315,821 231,101 Accumulated deficit (234,896 ) (220,136 ) Accumulated other comprehensive loss (171 ) (183 ) Total stockholders' equity 80,468 10,493 Total liabilities and stockholders $ 86,377 $ 13,538 equity

Ocean Power Technologies, Inc. and SubsidiariesConsolidated Statements of Operations(in thousands, except per share data)(Unaudited) Three months ended April 30, Twelve months ended April 30, 2021 2020 2021 2020 Revenues $ 601 $ 551 $ 1,206 $ 1,682 Cost of revenues 1,031 452 2,279 1,787 Gross loss (430 ) 99 (1,073 ) (105 ) Operating expenses: Engineering and product 1,413 941 4,747 4,344 development costs Selling, general and 2,179 1,288 7,772 6,916 administrative costs Total operating 3,592 2,229 12,519 11,260 expensesOperating loss (4,022 ) (2,130 ) (13,592 ) (11,365 ) Gain due to thechange in fair - - - 6 value of warrantliabilitiesLitigation (1,224 ) - (1,224 ) - settlementInterest income, 79 23 124 124 netOther expense, net (34 ) - (83 ) - Foreign exchange 1 (7 ) 15 (12 )gain/(loss)Loss before income (5,200 ) (2,114 ) (14,760 ) (11,247 )taxes Income tax - 895 - 895 benefitNet loss $ (5,200 ) $ (1,219 ) $ (14,760 ) $ (10,352 )Basic and diluted $ (0.10 ) $ (0.13 ) $ (0.49 ) $ (1.44 )net loss per share Weighted average shares used to compute basic and diluted net 51,286,196 9,679,968 30,018,838 7,209,732 loss per share

Ocean Power Technologies, Inc. and SubsidiariesConsolidated Statements of Cash Flows(in thousands)(Unaudited) Twelve months ended April 30, 2021 2020 Cash flows from operating activities: Net loss $ (14,760 ) $ (10,352 ) Adjustments to reconcile net loss to net cash used in operating activities: Foreign exchange (gain)/loss (15 ) 12 Depreciation of fixed assets 143 158 Amortization of intangibles 6 - Amortization of right of use asset 223 197 Compensation expense related to equity 721 340 compensation Gain due to the change in fair value of - (6 ) warrant liabilities Performance obligation shares 60 - compensation Net effect from disposal of property, 2 - plant and equipment Changes in operating assets and liabilities, net of acquisition: Accounts receivable (245 ) (42 ) Contract assets 61 (236 ) Other assets 106 251 Accounts payable 441 (92 ) Accrued expenses 761 (585 ) Litigation payable 1,224 - Change in lease liability (237 ) (201 ) Contract liabilities (165 ) (23 ) Net cash used in operating (11,674 ) (10,579 ) activitiesCash flows from investing activities: Cash acquired in acquisition 100 - Purchase of property, plant and equipment (26 ) (65 ) Net cash provided by (used in) 74 (65 ) investing activitiesCash flows from financing activities: Proceeds from Paycheck Protection Program 890 - Loan Proceeds from loan payable 467 - Payment of loan payable (467 ) - Proceeds from stock option exercises 184 - Payment of payroll taxes related to stock (245 ) - option exercises Proceeds from issuance of common stock- Aspire financing net of issuance costs 14,393 1,021 Proceeds from issuance of common stock- AGP At The Market offering, net of issuance costs 66,166 3,443 Proceeds associated with exercise of 2,818 - common stock warrants Proceeds (costs) associated with exercise - (16 ) of pre-funded warrants Acquisition of treasury stock (36 ) (1 ) Net cash provided by financing 84,170 4,447 activitiesEffect of exchange rate changes on cash, cash 134 (32 )equivalents and restricted cash Net increase/(decrease) in cash, 72,704 (6,229 ) cash equivalents and restricted cashCash, cash equivalents and restricted cash, 10,930 17,159 beginning of yearCash, cash equivalents and restricted cash, $ 83,634 $ 10,930 end of year

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