Summary of Ocean Power Technologies (OPTT) Conference Call Company Overview - **Company**: Ocean Power Technologies (NYSEAM: OPTT) - **Industry**: Ocean intelligence and autonomous systems for defense and energy sectors Key Points and Arguments 1. **Business Transition**: The company has transitioned from focusing solely on buoy technology to providing autonomous systems for ocean intelligence gathering, addressing various market needs including defense and energy infrastructure [2][3][4] 2. **Technology Utilization**: OPTT's technology includes persistent autonomous systems that can operate for extended periods, providing critical data from the seabed to the surface and into the air [3][4] 3. **Market Applications**: The technology has applications in defense (e.g., naval operations), energy (e.g., oil and gas pipeline monitoring), and environmental monitoring [4][10] 4. **Cost Efficiency**: The autonomous systems offer significant cost savings compared to traditional methods, with operational costs for autonomous vehicles being substantially lower than manned vessels [18][20] 5. **Revenue Model**: The company generates revenue through the sale of vehicles, maintenance, upgrades, and monitoring services. Customers often prefer leasing options for short-term projects [27][30] 6. **Backlog and Pipeline**: As of the last report, the company has a backlog of approximately $15 million in contracted purchase orders and a pipeline of over $130 million in qualified opportunities [46][47] 7. **Competitive Landscape**: The company faces competition from new entrants in the defense tech space, but differentiates itself through established technology and a public company structure that provides transparency [36][39] 8. **Future Growth Potential**: The management believes there is significant growth potential in the market, especially as demand for autonomous systems increases in both defense and civilian applications [47][48] Additional Important Content 1. **Veteran Workforce**: Approximately 20-30% of the workforce consists of veterans, enhancing the company's credibility in defense-related projects [6] 2. **Technological Features**: The buoys are equipped with solar, wind, and wave power capabilities, allowing them to recharge autonomously and support various sensors for surveillance and communication [13][14] 3. **Collaborative Autonomy**: The company is developing an AI-capable software system (MEROS) that integrates buoys and unmanned surface vehicles (USVs) for enhanced operational efficiency [32][33] 4. **Market Valuation Discrepancies**: There is a notable discrepancy between the valuations of private competitors and OPTT, which is seen as an opportunity for public investors seeking stability and transparency [36][39] This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, market positioning, and financial outlook.

Core Viewpoint - Ocean Power Technologies, Inc. (OPTT) has experienced a significant decline in share price following its fiscal Q1 2026 results, indicating challenges in revenue generation despite a strong backlog and pipeline growth [1][4]. Earnings & Revenue Performance - The company reported revenues of $1.2 million for fiscal Q1 2026, a decrease of 9% from $1.3 million in the same period last year [2]. - Gross profit turned into a small loss of $23,000 compared to a profit of $0.4 million in the prior year [2]. - Operating expenses increased by 44% year over year to $7.1 million, primarily due to a rise in non-cash stock-based compensation [2]. Net Loss and Share Performance - The net loss widened to $7.4 million from $4.5 million in the first quarter of fiscal 2025, with a loss per share of 4 cents, slightly better than the 5 cents from the previous year [3]. Key Business Metrics - The backlog at the end of July 2025 reached $15 million, a 184% increase from $5.3 million a year ago [4]. - The company's pipeline grew by 45% to $133.5 million from $92 million in July 2024, indicating strong demand potential [4]. Balance Sheet and Cash Flow - As of July 31, 2025, the company reported $10 million in cash, cash equivalents, and short-term investments, up from $3.3 million at the beginning of the fiscal year [5]. - Net cash used in operating activities improved to $5.6 million from $6.1 million in the prior-year quarter [5]. Management Commentary - The CEO emphasized the accelerating momentum across markets and the growing recognition of OPT's technologies globally, positioning the company well for future opportunities [6]. Factors Influencing Financial Results - Revenue decline was attributed to lower project activity and increased operating expenses, particularly from stock-based compensation [7]. - The company is investing in technology and scaling operations, including a major upgrade to its Merrows Maritime Domain Awareness Solution [8]. Strategic Developments - Ocean Power Technologies expanded its partnership with Unique Group for non-defense unmanned surface vehicle projects in the UAE, which includes leasing a WAM-V 22 [12]. - The company plans to establish a maintenance, repair, and overhaul hub in the UAE to enhance recurring revenue streams [13]. - The CEO's engagement in policy discussions aims to influence regulations and expand market opportunities in renewable marine power [14].

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) [First Quarter Fiscal 2026 Overview](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Overview) Ocean Power Technologies reported a significant surge in backlog and pipeline for Q1 Fiscal 2026, indicating accelerating growth. Despite a slight decrease in revenue, the company expanded key partnerships, upgraded its AI-enabled maritime solution, and strengthened its market presence Key Financial Metrics | Metric | 1Q26 (July 31, 2025) | 1Q25 (July 31, 2024) | Change (%) | | :----------------------- | :------------------- | :------------------- | :--------- | | Backlog | $15.0 million | $5.3 million | +184% | | Pipeline | $133.5 million | $92.0 million | +45% | | Revenues | $1.2 million | $1.3 million | -9% | - Cash operating expenses remained consistent with the prior year, with the year-over-year increase primarily due to **non-cash stock compensation expense**[3](index=3&type=chunk) [Key Business Developments](index=1&type=section&id=Key%20Business%20Developments) OPT made significant strides in Q1 FY26 by expanding its strategic partnership with Unique Group in the UAE, enhancing its AI-enabled Merrows™ Maritime Domain Awareness Solution, and establishing a new U.S. office to bolster its presence in the uncrewed systems market [Strategic Partnerships & Market Expansion](index=1&type=section&id=Strategic%20Partnerships%20%26%20Market%20Expansion) OPT expanded its partnership with UAE-based Unique Group through a Master Services Agreement, positioning Unique Group as its execution partner for non-defense WAM-V® USV projects in the UAE. This includes immediate leasing of a WAM-V 22 and plans for fleet expansion and revenue sharing. Additionally, OPT opened a new U.S. office in Washington, D.C., at the AUVSI headquarters to enhance access to government and industry stakeholders - Expanded partnership with UAE-based Unique Group via a Master Services Agreement, designating them as OPT's execution partner for non-defense WAM-V® USV projects in the UAE, with plans for fleet expansion and revenue sharing[3](index=3&type=chunk) - Established a new U.S. office at the AUVSI headquarters in Washington, D.C., to strengthen strategic position in the uncrewed systems market and enhance access to key government and industry stakeholders[3](index=3&type=chunk) [Product & Technology Enhancements](index=1&type=section&id=Product%20%26%20Technology%20Enhancements) The company unveiled a major upgrade to its AI-enabled Merrows™ Maritime Domain Awareness Solution (MDAS), significantly improving its performance, stability, security, and interoperability across various platforms, enhancing its role as an ISR node - Unveiled a major upgrade to the AI-enabled Merrows™ Maritime Domain Awareness Solution (MDAS), enhancing performance, stability, security, and interoperability across surface, subsurface, and aerial platforms[3](index=3&type=chunk) [Industry Leadership & Policy Engagement](index=1&type=section&id=Industry%20Leadership%20%26%20Policy%20Engagement) OPT reinforced its role as a policy and industry thought leader by testifying before the New Jersey Legislature, highlighting the state's opportunity to lead the U.S. marine energy sector and how OPT's technologies can shape favorable policy - Testified before the New Jersey Legislature on the state's opportunity to lead the emerging U.S. marine energy sector, emphasizing OPT's role in shaping policy and unlocking market opportunities[3](index=3&type=chunk) [Management Outlook](index=2&type=section&id=Management%20Outlook) Dr. Philipp Stratmann, President and CEO, highlighted accelerating market momentum, evidenced by record backlog and pipeline expansion. He noted increasing customer demand for OPT's integrated solutions combining maritime autonomy, renewable power, and advanced analytics, positioning the company for leadership in autonomous maritime systems - Management observes accelerating market momentum, reflected in **record backlog and pipeline expansion**[4](index=4&type=chunk) - Customers are increasingly seeking OPT's solutions that integrate maritime autonomy, renewable power, and advanced analytics for critical ocean data as a service[4](index=4&type=chunk) - OPT is positioned to capture new opportunities and expand its leadership in autonomous, persistent, and resident maritime systems[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) [Key Financial Highlights](index=2&type=section&id=Key%20Financial%20Highlights) For the first quarter of fiscal 2026, OPT experienced a 9% decrease in revenues and a shift from gross profit to gross loss. Operating expenses significantly increased due to higher non-cash stock compensation, leading to a larger net loss. However, backlog saw a substantial 184% increase, and cash reserves improved Summary of Financial Performance | Metric | 1Q26 (July 31, 2025) | 1Q25 (July 31, 2024) | Change ($) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :--------- | :--------- | | Revenues | $1.2 million | $1.3 million | -$0.1M | -9% | | Gross Margin | -$23 thousand | $0.4 million | -$0.423M | -105% | | Operating Expenses | $7.1 million | $4.9 million | +$2.1M | +44% | | Net Loss | $7.4 million | $4.5 million | +$2.9M | +64% | | Backlog | $15.0 million | $5.3 million | +$9.7M | +184% | | Cash, cash equivalents & short-term investments | $10.0 million | $3.3 million (start of FY) | +$6.7M | +203% | | Net cash used in operating activities | $5.6 million | $6.1 million | -$0.5M | -8% | - The increase in operating expenses and net loss was primarily driven by a **$2.1 million increase in non-cash stock compensation expenses**[8](index=8&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations show a decline in revenue and a significant increase in operating expenses, primarily due to higher share-based compensation, resulting in a larger net loss for the three months ended July 31, 2025, compared to the same period in 2024 Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Revenues | $1,182 | $1,301 | | Cost of revenues | $1,205 | $854 | | Gross margin | ($23) | $447 | | Operating expenses | $7,055 | $4,920 | | Operating loss | ($7,078) | ($4,473) | | Interest (expense)/income, net | ($310) | $3 | | Other income, net | — | $17 | | Loss before income taxes | ($7,388) | ($4,453) | | Income tax benefit | — | — | | Net loss | ($7,388) | ($4,453) | | Basic and diluted net loss per common share | ($0.04) | ($0.05) | | Weighted average shares used | 172,969,163 | 81,951,002 | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of July 31, 2025, OPT's total assets increased to $36.6 million from $30.8 million at April 30, 2025, primarily driven by an increase in cash and cash equivalents, accounts receivable, and property and equipment. Total liabilities also significantly increased, mainly due to new convertible notes payable and derivative liability Consolidated Balance Sheets (in thousands) | Metric (in thousands) | July 31, 2025 | April 30, 2025 | | :-------------------- | :------------ | :------------- | | **ASSETS** | | | | Cash and cash equivalents | $9,860 | $6,715 | | Accounts receivable, net | $2,207 | $1,191 | | Contract assets | $555 | $1,088 | | Inventory | $4,865 | $4,222 | | Total current assets | $18,380 | $13,616 | | Property and equipment, net | $4,703 | $3,444 | | Total assets | $36,618 | $30,793 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Accounts payable | $1,283 | $568 | | Convertible notes payable | $7,107 | — | | Derivative liability | $570 | — | | Total current liabilities | $11,619 | $3,289 | | Total liabilities | $12,428 | $4,141 | | Total shareholders' equity | $24,190 | $26,652 | | Total liabilities and shareholders' equity | $36,618 | $30,793 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended July 31, 2025, net cash used in operating activities decreased slightly. Investing activities saw an increase in property and equipment purchases. Financing activities provided a significant cash inflow, primarily from proceeds from convertible notes and common stock issuance, leading to a substantial net increase in cash, cash equivalents, and restricted cash Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Three months ended July 31, 2025 | Three months ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | ($5,605) | ($6,124) | | Net cash used in investing activities | ($1,453) | ($374) | | Net cash provided by financing activities | $10,203 | $6,529 | | Net increase in cash, cash equivalents and restricted cash | $3,145 | $31 | | Cash, cash equivalents and restricted cash, end of period | $10,014 | $3,336 | - Share-based compensation significantly increased to **$2,399 thousand in 1Q26** from **$259 thousand in 1Q25**, impacting operating activities[17](index=17&type=chunk) - Financing activities in 1Q26 included **$9,866 thousand from convertible notes** and **$337 thousand from common stock issuance**[17](index=17&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) [About Ocean Power Technologies](index=2&type=section&id=About%20Ocean%20Power%20Technologies) Ocean Power Technologies (OPT) specializes in intelligent maritime solutions and services for defense, security, oil and gas, science, research, and offshore wind markets. Their offerings include PowerBuoy® platforms for clean power and real-time data, and WAM-V® autonomous surface vessels (ASVs) and marine robotics services - OPT provides intelligent maritime solutions and services for defense and security, oil and gas, science and research, and offshore wind markets[6](index=6&type=chunk) - Key products include PowerBuoy® platforms for clean power and real-time data, and WAM-V® autonomous surface vessels (ASVs) and marine robotics services[6](index=6&type=chunk) [Non-GAAP Measures: Pipeline](index=2&type=section&id=Non-GAAP%20Measures%3A%20Pipeline) The 'Pipeline' metric, while not a GAAP measure, is used by OPT to track potential customer journeys and sales progress. It represents estimated future revenue, but is subject to changes due to project accelerations, cancellations, or delays - Pipeline is a non-GAAP measure used to track potential customer journeys and sales progress, divided into phases representing milestones[7](index=7&type=chunk) - Revenue estimates from the pipeline are subject to change due to project accelerations, cancellations, or delays, which can affect realization periods and levels[7](index=7&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company disclaims any obligation to publicly update or revise these statements - The release contains forward-looking statements, identified by terms like 'may', 'will', 'believe', 'expect', 'anticipate', 'estimate', 'intend', 'plan', 'project', and 'should'[9](index=9&type=chunk) - These statements rely on assumptions and estimates that could be inaccurate and are subject to risks and uncertainties, as detailed in the Company's Forms 10-Q and 10-K[9](index=9&type=chunk) - The Company expressly disclaims any obligation to publicly update or revise any forward-looking statements after the date of the press release[9](index=9&type=chunk) [Investor Relations & Media Contacts](index=3&type=section&id=Investor%20Relations%20%26%20Media%20Contacts) Additional financial information can be found in the Company's Annual Report on Form 10-K filed with the SEC. Contact details for investor and media inquiries are provided - Additional information is available in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission[10](index=10&type=chunk) - Contact information for investors is 609-730-0400 x401 or InvestorRelations@oceanpowertech.com[11](index=11&type=chunk) - Contact information for media is 609-730-0400 x402 or MediaRelations@oceanpowertech.com[11](index=11&type=chunk)

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended July 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From ______to______ Commission file number: 001-33417 OCEAN POWER TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdic ...

Core Insights - Ocean Power Technologies, Inc. (OPT) reported a significant increase in backlog, rising 184% to $15.0 million as of July 31, 2025, compared to $5.3 million a year earlier, indicating strong demand for its services [6][12] - The company's pipeline also grew by 45% to $133.5 million from $92.0 million, reflecting an expanding market presence and opportunities [6] - Despite the growth in backlog and pipeline, revenues for the first quarter of fiscal year 2026 (1Q26) decreased by 9% to $1.2 million from $1.3 million in 1Q25, highlighting challenges in revenue generation [7][12] Business Highlights - The company expanded its partnership with Unique Group in the UAE, establishing a Master Services Agreement to enhance regional growth and service capacity [6] - A major upgrade to the AI-enabled Merrows™ Maritime Domain Awareness Solution was unveiled, improving performance and interoperability across various platforms [6] - OPT opened a new office in Washington, D.C., to strengthen its position in the uncrewed systems market and enhance access to government and industry stakeholders [6] Financial Performance - Operating expenses increased by 44% to $7.1 million in 1Q26, primarily due to a $2.1 million rise in non-cash stock compensation expenses [7] - The net loss for 1Q26 was $7.4 million, compared to a net loss of $4.5 million in 1Q25, driven by increased operating expenses [12] - Cash and cash equivalents as of July 31, 2025, were $10.0 million, up from $3.3 million at the beginning of the fiscal year, indicating improved liquidity [12]

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Core Insights - Ocean Power Technologies, Inc. (OPT) has entered a strategic partnership with Gradient Marine (GM) to enhance its digital engineering capabilities and maritime solutions [1][4] - The collaboration will integrate GM's Virtual Maritime Picture (VMP) software to create digital twins for OPT's platforms, enabling real-world simulations and lifecycle testing [2][3] Group 1: Partnership Details - The partnership aims to accelerate development cycles and reduce operational risks by allowing simulation before deployment [2][3] - It is expected to expand OPT's offerings in defense, offshore wind, aquaculture, subsea infrastructure, and environmental monitoring [4] Group 2: Technological Advancements - The integration of digital twins is anticipated to enhance OPT's engineering processes and provide customers with powerful modeling capabilities [4] - GM's VMP software will allow users to assess the performance of OPT systems in realistic environments, improving mission planning and training [5][6] Group 3: Strategic Goals - The partnership aligns with OPT's strategy to deliver intelligent maritime solutions that are resilient, cost-effective, and operationally proven [4] - The collaboration is expected to open new opportunities and provide access to GM's Department of Defense customer network [4]

Company Overview - Ocean Power Technologies, Inc. (OPT) is a leader in innovative and cost-effective low-carbon marine power, data, and service solutions [1] - The company provides intelligent maritime solutions for various markets including defense, oil and gas, science and research, and offshore wind [2] - OPT's offerings include PowerBuoy platforms for clean electric power and real-time data communications, as well as WAM-V autonomous surface vessels and marine robotics services [2] Earnings Announcement - OPT will release its earnings for the fiscal 2026 first quarter, covering the period ended July 31, 2025, after market close on September 15, 2025 [1] Investor Relations - To enhance relations with institutional investors, OPT management is hosting individual meetings with portfolio managers and analysts [2]

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