Core Viewpoint - Ocean Power Technologies, Inc. (OPTT) has experienced a significant decline in share price despite some operational improvements and strategic initiatives aimed at growth and market expansion [1][2][5]. Financial Performance - Fiscal 2025 revenue grew modestly by 6% to $5.9 million from $5.5 million in fiscal 2024, but gross profit contracted to $1.7 million from $2.8 million [1][2]. - Operating expenses decreased by 28% to $23.3 million from $32.2 million, leading to a narrowed net loss of $21.5 million compared to $27.5 million the previous year [2]. - The diluted net loss per share improved to 17 cents from 47 cents in fiscal 2024, attributed to reduced operating expenses and an increased share count [2]. Business Metrics - The company closed fiscal 2025 with a record backlog of $12.5 million, a 155% increase from $4.9 million at the end of fiscal 2024 [3]. - The sales pipeline surged by 88% year over year, rising from $71.6 million to $137.5 million, indicating strong future revenue potential [3]. Operational Efficiency - Net cash used in operations decreased by 38% to $18.6 million from $29.8 million, and the company ended the year with $6.9 million in cash and equivalents, up from $3.3 million [4]. - A $10 million post-year-end unsecured debt facility was secured to support near-term scaling efforts [4]. Management Insights - The CEO characterized fiscal 2025 as a pivotal year, highlighting the transition from a technology demonstrator to a scaling solutions provider, with successful international deployments of AI-enabled platforms [5]. - The company received Facility Security Clearance from the U.S. Department of Defense, allowing participation in classified contracts and enhancing credibility in government bidding processes [6]. Challenges and Future Outlook - Revenue remained below expectations due to procurement delays linked to U.S. election uncertainty and macroeconomic headwinds, particularly in the defense segment [7]. - Management anticipates improved margins as the project mix shifts towards recurring service revenues and full-scale system deployments [8]. - Confidence in backlog execution and pipeline conversion is strong, with plans to invest cautiously in capacity expansions to meet future demand [9]. Strategic Initiatives - In Q4 of fiscal 2025, Ocean Power signed a $3 million reseller agreement with a Mexican engineering firm to promote maritime solutions in Central America [10]. - Exclusive distribution partnerships were formed in the UAE, Colombia, and Brazil to enhance market reach and reduce customer acquisition costs [11]. - A strategic alliance with Red Cat Holdings was established to integrate military-grade aerial drones with WAM-V surface vehicles, enhancing operational capabilities [12]. - An OEM agreement with Teledyne Marine was signed to co-develop AI-powered integrated payload solutions, reinforcing the company's commitment to innovation [13].

Core Viewpoint - Ocean Power Technologies (OPTT) reported fiscal 2025 earnings showing a modest revenue increase but significant challenges in profitability and gross margin [1][5]. Financial Performance - GAAP revenue for FY2025 was $5.9 million, a 6% increase from $5.5 million in FY2024 [2][5]. - Gross profit declined sharply to $1.7 million, down 39.3% from $2.8 million in FY2024 [2][5]. - Operating expenses were reduced by 27.6%, from $32.2 million in FY2024 to $23.3 million in FY2025 [2][6]. - The net loss decreased to $21.5 million from $27.5 million in FY2024 [2][6]. - Net cash used in operating activities was $18.6 million, down 37.6% from $29.8 million in FY2024 [2][6]. Company Overview and Key Drivers - Ocean Power Technologies designs renewable energy systems and autonomous marine robots for various markets, including offshore monitoring and defense [3]. - The core products include the PowerBuoy®, WAM-V® autonomous surface vehicles, and the Merrows™ command and control system [3]. Growth Strategy - The company focuses on expanding market reach and building recurring revenue through product innovation, new geographies, and strategic partnerships [4]. - The order backlog reached a record $12.5 million, up from $4.9 million, indicating increased visibility for future revenue [10]. Operational Highlights - The company shipped its first AI-enabled Merrows™ PowerBuoy® and deployed a PowerBuoy® integrated with 5G technology [7]. - Strategic partnerships expanded, including a $3 million reseller deal in Mexico and collaborations with Teledyne Marine and Red Cat Holdings [8][9]. Regulatory and Certification Milestones - The company received Department of Defense Facility Security Clearance and attained ISO 9001 certification, enhancing eligibility for government contracts [10]. Future Outlook - Management did not provide explicit financial guidance for fiscal 2026 but highlighted a record backlog and increased international interest as positive indicators [12]. - The company finished FY2025 with $6.9 million in cash, up from $3.3 million [13].

[Executive Summary & Fiscal Year 2025 Overview](index=1&type=section&id=Executive%20Summary) OPT achieved significant FY25 milestones, including substantial backlog and pipeline growth, revenue increase, reduced operating expenses, and key certifications [FY25 Results and Recent Highlights](index=1&type=section&id=FY25%20RESULTS%20and%20RECENT%20HIGHLIGHTS) Ocean Power Technologies (OPT) reported significant operational and financial milestones for fiscal year 2025, including substantial increases in backlog and pipeline, a 6% revenue growth, and a 28% reduction in operating expenses. The company expanded its global presence through key platform deployments and strategic partnerships, while also achieving ISO 9001 certification and a U.S. Department of Defense Facility Security Clearance FY25 Key Financial & Operational Highlights | Metric | FY25 Value (in millions) | FY24 Value (in millions) | Change (%) | Source | | :----- | :----------------------- | :----------------------- | :--------- | :----- | | Backlog (as of Apr 30) | $12.5 | $4.9 | +155% | chunk 2, 11 | | Pipeline (as of release date) | $137.5 | $71.6 (Apr 30, 2024) | +88% | chunk 2 | | Operating Expenses | $23.3 | $32.2 | -28% | chunk 2, 11 | | Revenues | $5.9 | $5.5 | +6% | chunk 2, 11 | - Shipped an AI-enabled Merrows™ PowerBuoy® to a Middle Eastern customer following a competitive procurement[2](index=2&type=chunk) - Secured a new contract with an international defense agency to demonstrate multiple WAM-V® Unmanned Surface Vehicles, expanding OPT's presence in allied naval markets[2](index=2&type=chunk) - Achieved ISO 9001 certification for its quality management system, a globally recognized benchmark for excellence in engineering, manufacturing, and service delivery[3](index=3&type=chunk) - Granted Facility Security Clearance by the U.S. Department of Defense, authorizing support for classified programs at the Secret level and significantly enhancing eligibility for future defense contracts[4](index=4&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary%20%E2%80%93%20Dr.%20Philipp%20Stratmann) Dr. Philipp Stratmann, CEO, highlighted FY25 as a pivotal year for OPT, marking a transition from technology proving to scaling impact. He emphasized the company's success in securing Facility Security Clearance and executing international deployments, positioning OPT's autonomous maritime systems as mission-critical infrastructure. The company enters FY26 with record backlog and growing demand, focusing on disciplined execution, recurring revenue expansion, and platform adoption - Fiscal 2025 was a pivotal year for Ocean Power Technologies, transitioning from proving technology to scaling impact, with key international deployments across the Middle East and Latin America[5](index=5&type=chunk) - AI-enabled Merrows™ PowerBuoy® and WAM-V® platforms are now active in global defense markets, providing clear evidence that OPT's autonomous maritime systems are becoming mission-critical infrastructure[5](index=5&type=chunk) - Entering fiscal 2026 with record backlog of **$12.5 million**, a solid balance sheet, access to additional capital, and growing demand from allied nations, with a focus on disciplined execution, expanding recurring revenue, and accelerating platform adoption[5](index=5&type=chunk) [Business and Operational Achievements](index=1&type=section&id=Business%20and%20Operational%20Achievements) OPT expanded its global presence through strategic platform deployments, key partnerships, and achieved operational excellence with ISO 9001 certification and DoD security clearance [Global Platform Deployments](index=1&type=section&id=Global%20Platform%20Deployments) OPT successfully deployed its AI-enabled Merrows™ PowerBuoy® and WAM-V® systems in critical international and defense applications, demonstrating their capability for persistent maritime surveillance and integration with advanced communication technologies like AT&T 5G - Shipped an AI-enabled Merrows™ PowerBuoy® to a Middle Eastern customer following a competitive procurement[2](index=2&type=chunk) - Secured a new contract with an international defense agency to demonstrate multiple WAM-V® Unmanned Surface Vehicles, expanding OPT's presence in allied naval markets[2](index=2&type=chunk) - Completed a U.S. Naval Postgraduate School deployment of a PowerBuoy® with Merrows™ for persistent maritime surveillance research, integrating AT&T 5G technology and advanced subsea sensors[2](index=2&type=chunk) [Strategic Partnerships & Alliances](index=1&type=section&id=Strategic%20Partnerships) OPT expanded its market reach and solution offerings through several strategic partnerships, including a reseller agreement in Central America, exclusive distribution alliances in the Middle East and South America, and a multi-domain ISR collaboration with Red Cat Holdings - Signed a **$3 million** reseller agreement with a leading Mexican engineering firm to expand reach across Central America through integrated sales and support of OPT's full suite of intelligent maritime solutions[2](index=2&type=chunk) - Formed exclusive distribution and integration alliances with Remah International Group (UAE) for defense and security, Unique Group for WAM-V® deployments across the GCC region, Elektron SAS (Colombia) for a multi-million-dollar purchase, and Ocean Wave Solutions Ltda (Brazil) for South America[2](index=2&type=chunk) - Entered into a strategic alliance with Red Cat Holdings to integrate drone technology with WAM-V® USVs for ocean-powered air and sea-based intelligence, surveillance, and reconnaissance (ISR) missions[6](index=6&type=chunk) - Signed an OEM agreement with Teledyne Marine to co-develop integrated payload and AI solutions[6](index=6&type=chunk) [Operational Excellence & Certifications](index=2&type=section&id=Operational%20Excellence%20%26%20Certifications) OPT achieved ISO 9001 certification, reflecting its evolution into a scalable, process-driven provider, and secured a U.S. Department of Defense Facility Security Clearance, significantly enhancing its eligibility for classified defense contracts. The company also streamlined operations, reducing operating expenses by approximately 26% year over year - Achieved ISO 9001 certification for its quality management system, a globally recognized benchmark for excellence in engineering, manufacturing, and service delivery, supporting growth strategy[3](index=3&type=chunk) - Operating expenses declined by approximately **26%** year over year due to a streamlined team and leaner operating expense structure, increasing operating efficiency without compromising delivery or innovation[4](index=4&type=chunk) - Granted Facility Security Clearance by the U.S. Department of Defense, authorizing support for classified programs at the Secret level and affirming compliance with industrial security standards[4](index=4&type=chunk) [Fiscal Year 2025 Financial Performance](index=3&type=section&id=FY25%20FINANCIAL%20HIGHLIGHTS) OPT reported a 6% revenue increase, a 28% reduction in operating expenses, and a narrower net loss, supported by significant growth in backlog and cash reserves [Key Financial Highlights](index=3&type=section&id=Key%20Financial%20Highlights) For FY25, OPT reported a 6% revenue increase to $5.9 million, alongside a significant 28% decrease in operating expenses. Despite a decline in gross profit, the reduced operating costs led to a narrower net loss of $21.5 million, an improvement of 21.7% compared to FY24 FY25 vs FY24 Income Statement Highlights (in thousands) | Metric | FY25 | FY24 | Change ($) | Change (%) | Source | | :----- | :--- | :--- | :--------- | :--------- | :----- | | Revenue | $5,861 | $5,525 | $336 | +6.1% | chunk 11, 19 | | Cost of Revenue | $4,201 | $2,699 | $1,502 | +55.6% | chunk 19 | | Gross Profit | $1,660 | $2,826 | $(1,166) | -41.2% | chunk 11, 19 | | Operating Expenses | $23,346 | $32,229 | $(8,883) | -27.6% | chunk 11, 19 | | Net Loss | $(21,511) | $(27,483) | $5,972 | -21.7% | chunk 11, 19 | | Basic and Diluted Net Loss Per Share | $(0.17) | $(0.47) | $0.30 | -63.8% | chunk 19 | FY25 vs FY24 Cash & Backlog Highlights (in thousands) | Metric | FY25 | FY24 | Change ($) | Change (%) | Source | | :----- | :--- | :--- | :--------- | :--------- | :----- | | Backlog (as of Apr 30) | $12,500 | $4,900 | $7,600 | +155% | chunk 11 | | Combined Cash, Cash Equivalents & Short-Term Investments (as of Apr 30) | $6,900 | $3,300 | $3,600 | +109.1% | chunk 11 | | Net Cash Used in Operating Activities | $(18,600) | $(29,800) | $11,200 | -37.6% | chunk 11 | [Non-GAAP Measures: Backlog and Pipeline](index=1&type=section&id=Non-GAAP%20Measures%3A%20Pipeline) OPT reported a record backlog of $12.5 million as of April 30, 2025, a 155% increase year-over-year, and a pipeline of $137.5 million, an 88% increase from the prior year. These metrics are considered useful indicators for future revenue expectations and strategic growth, though pipeline is a non-GAAP measure subject to change Backlog and Pipeline Growth | Metric | As of Apr 30, 2025 (in millions) | As of Apr 30, 2024 (in millions) | Change (%) | Source | | :----- | :------------------------------- | :------------------------------- | :--------- | :----- | | Backlog | $12.5 | $4.9 | +155% | chunk 2, 11 | | Pipeline | $137.5 (as of release date) | $71.6 | +88% | chunk 2 | - Backlog includes unfilled firm written orders for products and services, serving as a useful metric for investors to support future revenue expectations and validate strategic growth plans[11](index=11&type=chunk) - Pipeline is a non-GAAP measure representing the journey potential customers take, used to track sales progress and identify roadblocks, but revenue estimates can be subject to change due to various factors[12](index=12&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of April 30, 2025, OPT's total assets increased to $30.8 million from $28.7 million in the prior year, primarily driven by a significant increase in cash and cash equivalents and contract assets. Total liabilities significantly decreased by 55.8% to $4.1 million, mainly due to reductions in accounts payable and earn out payable, contributing to a 37.8% increase in total shareholders' equity to $26.7 million Consolidated Balance Sheet Highlights (in thousands) | Metric | April 30, 2025 | April 30, 2024 | Change ($) | Change (%) | Source | | :----- | :------------- | :------------- | :--------- | :--------- | :----- | | Total Assets | $30,793 | $28,704 | $2,089 | +7.3% | chunk 17 | | Cash and cash equivalents | $6,715 | $3,151 | $3,564 | +113.1% | chunk 17 | | Contract assets | $1,088 | $18 | $1,070 | +5944.4% | chunk 17 | | Total Liabilities | $4,141 | $9,360 | $(5,219) | -55.8% | chunk 17 | | Accounts payable | $568 | $3,366 | $(2,798) | -83.1% | chunk 17 | | Earn out payable | $300 | $1,130 | $(830) | -73.5% | chunk 17 | | Total Shareholders' Equity | $26,652 | $19,344 | $7,308 | +37.8% | chunk 17 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For FY25, OPT's revenue increased by 6.1% to $5.86 million, while cost of revenue rose significantly by 55.6%, leading to a 41.2% decrease in gross profit. However, a substantial 27.6% reduction in operating expenses helped narrow the net loss by 21.7% to $21.51 million, resulting in a basic and diluted net loss per share of $(0.17) Consolidated Statements of Operations (in thousands, except per share data) | Metric | FY25 | FY24 | Change ($) | Change (%) | Source | | :----- | :--- | :--- | :--------- | :--------- | :----- | | Revenue | $5,861 | $5,525 | $336 | +6.1% | chunk 19 | | Cost of revenue | $4,201 | $2,699 | $1,502 | +55.6% | chunk 19 | | Gross profit | $1,660 | $2,826 | $(1,166) | -41.2% | chunk 19 | | Operating expenses | $23,346 | $32,229 | $(8,883) | -27.6% | chunk 19 | | Operating loss | $(21,686) | $(29,331) | $7,645 | -26.1% | chunk 19 | | Net loss | $(21,511) | $(27,483) | $5,972 | -21.7% | chunk 19 | | Basic and diluted net loss per share | $(0.17) | $(0.47) | $0.30 | -63.8% | chunk 19 | | Weighted average shares | 126,913,998 | 59,031,736 | 67,882,262 | +115.0% | chunk 19 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In FY25, net cash used in operating activities significantly decreased to $18.63 million from $29.76 million in FY24, primarily due to a lower net loss and favorable changes in working capital. Investing activities used $0.51 million, while financing activities provided $22.70 million, mainly from proceeds from convertible notes and common stock issuances, resulting in a net increase in cash, cash equivalents, and restricted cash of $3.56 million Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | FY25 | FY24 | Change ($) | Source | | :----- | :--- | :--- | :--------- | :----- | | Net cash used in operating activities | $(18,634) | $(29,763) | $11,129 | chunk 21 | | Net cash (used in)/provided by investing activities | $(505) | $25,496 | $(26,001) | chunk 21 | | Net cash provided by/(used in) financing activities | $22,703 | $469 | $22,234 | chunk 21 | | Net decrease in cash, cash equivalents and restricted cash | $3,564 | $(3,798) | $7,362 | chunk 21 | | Cash, cash equivalents and restricted cash, end of year | $6,869 | $3,305 | $3,564 | chunk 21 | - Proceeds from issuance of common stock (At The Market offering) were **$17.73 million** in FY25, significantly up from $0.48 million in FY24[21](index=21&type=chunk) - Proceeds from convertible notes were **$3.17 million** in FY25[21](index=21&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) This section provides an overview of Ocean Power Technologies' intelligent maritime solutions, details for the upcoming conference call, forward-looking statement disclaimers, and contact information [About Ocean Power Technologies](index=3&type=section&id=About%20Ocean%20Power%20Technologies) Ocean Power Technologies (OPT) provides intelligent maritime solutions and services for diverse markets including defense and security, oil and gas, science and research, and offshore wind. Their core offerings include PowerBuoy® platforms for clean power and real-time data communications, as well as WAM-V® autonomous surface vessels and marine robotics services - OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets[9](index=9&type=chunk) - The company's PowerBuoy® platforms provide clean and reliable electric power and real-time data communications, while they also offer WAM-V® autonomous surface vessels (ASVs) and marine robotics services[9](index=9&type=chunk) [Conference Call & Webcast Details](index=3&type=section&id=Conference%20Call%20%26%20Webcast) OPT will host a conference call on Friday, July 25, 2025, at 9:00 a.m. Eastern time to discuss its financial results, with CEO Philipp Stratmann and CFO Bob Powers. Details for accessing the live webcast, dial-in numbers, and replay options (both telephone and archived webcast) are provided - A conference call to discuss OPT's financial results will be held on Friday, July 25, 2025, at 9:00 a.m. Eastern time, hosted by CEO Philipp Stratmann and CFO Bob Powers[8](index=8&type=chunk)[11](index=11&type=chunk) - Live webcast and call replay options are available, with the replay accessible by telephone until August 26, 2024, and the archived webcast available on the OPT investor relations website[11](index=11&type=chunk) [Forward-Looking Statements & SEC Filings](index=4&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements, identified by specific phrases, which reflect current expectations but are subject to assumptions, estimates, risks, and uncertainties as outlined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to unduly rely on them, and the company disclaims any obligation to update these statements. Further information on risks is available in the company's 10-Q and 10-K filings with the SEC - This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, identified by certain words or phrases such as 'may', 'will', 'believe', 'expect', 'anticipate', 'estimate', 'intend', 'plan', 'future', 'should', and similar expressions[13](index=13&type=chunk) - These forward-looking statements rely on assumptions and estimates that could be inaccurate and are subject to risks and uncertainties, with actual results potentially varying materially from those anticipated[13](index=13&type=chunk) - Readers are advised to refer to the Company's most recent Forms 10-Q and 10-K and subsequent SEC filings for further discussion of these risks and uncertainties[13](index=13&type=chunk)[14](index=14&type=chunk) - The Company expressly disclaims any obligation to publicly update or revise any forward-looking statements after the date of this press release, except as required by applicable law[13](index=13&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact details for investor relations and media inquiries are provided, including dedicated phone numbers and email addresses for each - Investors can contact via 609-730-0400 x401 or InvestorRelations@oceanpowertech.com[15](index=15&type=chunk) - Media can contact via 609-730-0400 x402 or MediaRelations@oceanpowertech.com[15](index=15&type=chunk)

Core Viewpoint - Ocean Power Technologies, Inc. reported its Q4 and full fiscal year 2025 earnings, highlighting key financial metrics and future outlook [1]. Financial Performance - The earnings press release and annual report for the period ended April 30, 2025, were issued after market close on July 24, 2025 [3]. - The company’s public filings are accessible on the SEC website and the Investor Relations section of its website [3]. Management Commentary - The call featured insights from Dr. Philipp Stratmann, President and CEO, and Bob Powers, Senior VP and CFO, who provided updates on the company's performance and strategic direction [2].

Financial Data and Key Metrics Changes - Fiscal year 2025 was a record year for revenue, generating $5.9 million, a 7% increase from $5.5 million in the prior year [24] - Operating expenses decreased by 27% to $23.4 million from $32.2 million in FY 2024, reflecting cost optimization efforts [26] - The company's loss improved by 22%, decreasing from $27.5 million to $21.5 million [26] - Total cash position increased to $6.7 million from $3.2 million at the close of FY 2024 [27] - Net cash used in operating activities improved by over 38%, from $29.8 million in FY 2024 to $18.6 million [27] Business Line Data and Key Metrics Changes - The backlog reached $12.5 million, the highest in the company's history, reflecting strong customer confidence and multi-quarter fulfillment of contracts [8][24] - The backlog is well-diversified across buoys, vehicles, and associated services, with an uptick in service revenues related to training [42] Market Data and Key Metrics Changes - Expansion in Latin America significantly contributed to FY 2025 revenue and backlog, indicating a focus on high-growth international markets [25] - The company has established a meaningful global footprint in allied defense and commercial markets through deployments in the Middle East, Latin America, and the Indo-Pacific [8] Company Strategy and Development Direction - The company aims to lead in the sustainable data-driven blue economy, focusing on diversifying revenue, scaling operations, and improving margins [21] - Strategic partnerships with defense, drone, and subsea leaders are being expanded to enhance market access and reduce customer acquisition costs [9][14] - The company has retooled its go-to-market strategy to emphasize scalable, repeatable sales and improve customer engagement [15][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in fiscal year 2026 marking a step function in execution towards sustained growth and profitability [20] - The company is prepared to scale responsibly as opportunities mature, with a focus on converting backlog into deliveries [12][28] - Management acknowledged headwinds in fiscal year 2025 due to election-related uncertainty and macroeconomic volatility but remains optimistic about future demand [18][19] Other Important Information - The company achieved ISO 9001 certification for its quality management system, enhancing its credibility and operational foundation [16][17] - The company is no longer solely focused on wave energy but has evolved into a multi-solution platform provider for maritime domain awareness [20][21] Q&A Session Summary Question: Inquiry about the pipeline and its conversion - Management explained that the pipeline consists of actual opportunities under discussion with customers, and they are confident in increasing conversion rates due to recent leadership changes [33][35] Question: Capacity to meet demand - Management confirmed that facilities are designed for quick scaling, with a focus on working capital management to avoid excess inventory [36] Question: Breakdown of backlog by product type - Management indicated a healthy split in the backlog between buoys, vehicles, and services, with increasing service revenues related to training [41][42] Question: Future gross margin expectations - Management anticipates an uptick in gross margins as the company transitions to operational use of systems and increases service revenues, which carry higher margins [43][44]

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PART I [Business](index=5&type=section&id=Item%201.%20Business) Ocean Power Technologies (OPT) provides intelligent maritime solutions via DaaS, RaaS, and PaaS, utilizing its PowerBuoy®, WAM-V®, and Merrows™ platforms, achieving significant backlog growth to **$12.5 million** in fiscal 2025 - OPT specializes in Maritime Domain Awareness (MDA) solutions, offering them through service-based models like DaaS, RaaS, and PaaS, utilizing its PowerBuoy®, WAM-V®, and Merrows™ platforms[19](index=19&type=chunk) Contract Backlog Growth (YoY) | Date | Backlog (in millions) | Change | | :--- | :--- | :--- | | April 30, 2024 | $4.9 | - | | April 30, 2025 | $12.5 | +155% | - The company secured approximately **$5 million** in purchase orders for PowerBuoy® and WAM-V® platforms from customers in Latin America between December 2024 and January 2025[82](index=82&type=chunk) - OPT was granted a Facility Security Clearance (FCL) at the Secret level by the U.S. Department of Defense in fiscal 2025, enabling it to pursue classified government contracts[82](index=82&type=chunk)[101](index=101&type=chunk) - As of April 30, 2025, the company holds approximately **70 issued U.S. patents** covering its core technologies, with expiration dates extending through fiscal year 2041[96](index=96&type=chunk)[97](index=97&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including a history of operating losses, an accumulated deficit of **$329.1 million**, and dependence on additional capital and third-party suppliers Historical Financial Performance | Fiscal Year | Net Loss (in millions) | Accumulated Deficit (as of year-end) | | :--- | :--- | :--- | | 2024 | $27.5 | - | | 2025 | $21.5 | $329.1 million | - The company's ability to operate depends on raising sufficient capital. As of April 30, 2025, the unrestricted cash balance was **$6.7 million** after raising approximately **$23.4 million** during fiscal 2025[130](index=130&type=chunk) - Loss of the company's Facility Security Clearance (FCL) could prevent bidding on or performing classified U.S. government contracts, significantly harming the business[128](index=128&type=chunk)[129](index=129&type=chunk) - The company is highly dependent on third-party suppliers for components, facing risks from supply chain disruptions, particularly for semiconductors and specialty metals[151](index=151&type=chunk) - Revenue from customers outside the U.S. accounted for **60% of total revenue** in fiscal 2025, up from 4% in fiscal 2024, increasing exposure to international operational risks[156](index=156&type=chunk) [Unresolved Staff Comments](index=41&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - Not applicable[204](index=204&type=chunk) [Properties](index=42&type=section&id=Item%202.%20Properties) The company's headquarters is a **56,000 sq. ft.** leased facility in Monroe Township, NJ, supplemented by **13,800 sq. ft.** leased in Richmond, CA for operations - The main headquarters is a **56,000 sq. ft.** leased facility in Monroe Township, NJ, used for administration, R&D, manufacturing, and testing[215](index=215&type=chunk) - The company leases two properties in Richmond, CA, totaling approximately **13,800 sq. ft.**, for West Coast operations[216](index=216&type=chunk) [Legal Proceedings](index=43&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in litigation with Paragon Technologies, Inc., expected to be dismissed, and is reviewing a shareholder demand for inspection of records related to equity grants - Litigation initiated by Paragon Technologies, Inc. in October 2023 is anticipated to be dismissed with prejudice after Paragon failed to file a required status report by February 10, 2025[217](index=217&type=chunk) - In February 2025, the company received a shareholder demand under Section 220 to inspect records related to certain equity grants, which the company is reviewing and has not recorded a liability[218](index=218&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures - None[219](index=219&type=chunk) PART II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE American under "OPTT", has **135 holders of record**, and does not intend to pay future cash dividends, with equity compensation plan details provided - The company's common stock is listed on the NYSE American under the symbol "OPTT". As of July 22, 2025, there were **135 holders of record**[221](index=221&type=chunk) - The company has never paid cash dividends and does not anticipate doing so in the foreseeable future, intending to retain earnings for business growth[223](index=223&type=chunk) Equity Compensation Plan Information as of April 30, 2025 | Plan Category | Shares to be Issued Upon Exercise | Weighted-Average Exercise Price | Shares Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | **Approved by Shareholders** | | | | | Stock Options | 483,342 | $2.59 | — | | Restricted Stock Units | 22,461,633 | N/A | — | | **Not Approved by Shareholders** | | | | | Restricted Stock Units | — | N/A | 161,487 | [[Reserved]](index=46&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved - This item is noted as [Reserved] in the report[231](index=231&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2025, OPT's revenue increased to **$5.9 million**, while gross profit decreased to **$1.7 million**, and operating expenses were reduced, resulting in a net loss of **$21.5 million**, with management expecting sufficient cash to fund operations through July 2026 Fiscal Year 2025 vs. 2024 Financial Results (in thousands) | Metric | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $5,861 | $5,525 | +$336 | | Gross Profit | $1,660 | $2,826 | -$1,166 | | Operating Loss | $(21,686) | $(29,331) | +$7,645 | | Net Loss | $(21,511) | $(27,483) | +$5,972 | | Net Loss Per Share | $(0.17) | $(0.47) | +$0.30 | - The decrease in operating expenses by **$8.9 million** was primarily due to cost reduction activities implemented at the end of fiscal 2024, including headcount optimization and reduced third-party spending[282](index=282&type=chunk) - The company raised approximately **$22.7 million** from financing activities in FY2025, primarily from its At-The-Market (ATM) facility and convertible debt issuances[290](index=290&type=chunk) - Management believes the company's cash balance of **$6.9 million** as of April 30, 2025, supplemented by the May 2025 convertible debt proceeds, will be sufficient to fund operations through July 2026[294](index=294&type=chunk)[455](index=455&type=chunk) Revenue by Geographic Location | Customer Location | FY 2025 | FY 2024 | | :--- | :--- | :--- | | North America & South America | 66% | 96% | | EMEA | 32% | 4% | | Asia and Australia | 2% | 0% | [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is reported as not applicable - Not applicable[300](index=300&type=chunk) [Financial Statements and Supplementary Data](index=56&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to Item 15 for the required financial statements and supplementary data - The financial statements and supplementary data are listed in Item 15 of the Annual Report[301](index=301&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=57&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with accountants on accounting and financial disclosure - None[302](index=302&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of April 30, 2025, with prior material weaknesses fully remediated - Management concluded that disclosure controls and procedures were effective as of April 30, 2025[303](index=303&type=chunk) - Material weaknesses in internal control over financial reporting identified in fiscal 2024 have been fully remediated as of April 30, 2025[306](index=306&type=chunk)[308](index=308&type=chunk) [Other Information](index=59&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[310](index=310&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=59&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) The Board of Directors comprises five members, with four independent, and the Audit Committee, chaired by a financial expert, oversees corporate governance and ethics - The Board is composed of five directors: Terence J. Cryan (Chairman), Philipp Stratmann (President & CEO), Clyde W. Hewlett, Diana G. Purcel, and Peter E. Slaiby[315](index=315&type=chunk) - Four of the five directors are independent, with Philipp Stratmann, the President and CEO, being the only non-independent director[313](index=313&type=chunk)[395](index=395&type=chunk) - The Audit Committee consists of Diana G. Purcel (Chair), Peter E. Slaiby, and Terence Cryan, with Ms. Purcel qualified as an "audit committee financial expert"[324](index=324&type=chunk) [Executive Compensation](index=64&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation, overseen by the Compensation Committee, aligns with shareholder interests through base salary, short-term incentives (STI), and long-term equity incentives (LTI), with NEOs receiving **64%** of target STI bonuses in FY2025 FY2025 Named Executive Officer (NEO) Compensation Summary | Name and Principal Position | Salary ($) | Bonus ($) | Stock Awards ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | Philipp Stratmann, President & CEO | 374,291 | 125,753 | 5,437,530 | 5,954,405 | | Robert Powers, SVP & CFO | 306,551 | 67,813 | 2,409,089 | 2,801,606 | | Tracy Pagliara, SVP & General Counsel | 86,539 | 33,750 | 2,611,106 | 2,731,395 | - For fiscal year 2025, the Compensation Committee approved STI bonuses for NEOs at **64%** of their respective targets[356](index=356&type=chunk) - Long-term incentive (LTI) awards for NEOs are primarily granted as Restricted Stock Units (RSUs) with time-based, performance-based (ISO certifications, bookings), and market-based (TSR) vesting conditions[342](index=342&type=chunk)[347](index=347&type=chunk)[348](index=348&type=chunk) - The company has a clawback policy compliant with SEC and NYSE American rules, allowing recovery of erroneously awarded incentive-based compensation in the event of an accounting restatement[338](index=338&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=75&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) As of July 24, 2025, all executive officers and directors as a group beneficially owned **1.6%** of the company's **177,524,775** outstanding common shares Beneficial Ownership of Directors and Executive Officers (as of July 24, 2025) | Name | Shares Beneficially Owned | Percentage of Shares | | :--- | :--- | :--- | | Philipp Stratmann | 513,725 | * | | Terence J. Cryan | 600,593 | * | | Clyde W. Hewlett | 423,806 | * | | Diana G. Purcel | 423,806 | * | | Peter E. Slaiby | 458,806 | * | | Robert Powers | 253,409 | * | | All directors and executive officers as a group (7 individuals) | 2,847,271 | 1.6% | [Certain Relationships and Related Transactions, and Director Independence](index=75&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) All directors are independent under NYSE American rules, except the CEO, and the Audit Committee reviews related person transactions, with none reported for the period - All current directors are deemed independent, except for President and CEO Philipp Stratmann[395](index=395&type=chunk) - The Audit Committee is responsible for reviewing and approving all related person transactions, with no related person transactions disclosed[396](index=396&type=chunk) [Principal Accountant Fees and Services](index=76&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The company changed independent auditors from EisnerAmper LLP to Moss Adams LLP (now Baker Tilly US, LLP) in fiscal 2025, with total audit fees of approximately **$480,825** pre-approved by the Audit Committee - In August 2024, the company dismissed EisnerAmper LLP and appointed Moss Adams LLP as its independent auditor[398](index=398&type=chunk)[400](index=400&type=chunk) - Effective June 2, 2025, Moss Adams LLP merged with Baker Tilly US, LLP, which became the successor independent registered public accounting firm[401](index=401&type=chunk) Accountant Fees for Fiscal Year 2025 | Firm | Audit Fees ($) | Total Fees ($) | | :--- | :--- | :--- | | EisnerAmper, LLP | 130,200 | 130,200 | | Baker Tilly (Successor to Moss Adams) | 350,625 | 350,625 | | **Total** | **480,825** | **480,825** | PART IV [Exhibits and Financial Statement Schedules](index=77&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index to the consolidated financial statements and a list of exhibits filed with the report - This item contains the index to the Consolidated Financial Statements (page F-1) and the Exhibit Index (pages 53-54)[412](index=412&type=chunk) [Form 10-K Summary](index=77&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[413](index=413&type=chunk)

Core Insights - Ocean Power Technologies, Inc. (OPT) reported a record backlog of $12.5 million, representing a 158% increase year-over-year, and a pipeline of $137.5 million, an 88% increase from the previous year [2][5] - The company achieved revenues of $5.9 million for FY25, a 6% increase compared to FY24, while operating expenses decreased by 28% to $23.3 million [2][6] - OPT secured significant contracts and partnerships, including a $3 million reseller agreement in Mexico and collaborations with various international defense agencies [2][5] Financial Performance - Revenues for FY25 were $5.9 million, up from $5.5 million in FY24, while gross profit decreased to $1.7 million from $2.8 million [6][19] - Operating expenses were reduced by $8.9 million, or 28%, from $32.2 million in FY24 to $23.3 million in FY25 [2][6] - The net loss for FY25 was $21.5 million, an improvement from a net loss of $27.5 million in FY24 [6][19] Strategic Developments - The company shipped an AI-enabled Merrows™ PowerBuoy® to a Middle Eastern customer and secured a contract with an international defense agency for WAM-V® Unmanned Surface Vehicles [2][5] - OPT formed strategic partnerships with various firms, including Remah International Group and Unique Group, to expand its market presence in the Middle East and Latin America [2][5] - The company achieved ISO 9001 certification, enhancing its credibility and operational efficiency [4] Operational Highlights - The company’s operating model has been streamlined, resulting in a 26% reduction in operating expenses year-over-year while maintaining delivery capabilities [4] - OPT received a Facility Security Clearance from the U.S. Department of Defense, enhancing its eligibility for classified programs [4][5] - The company’s cash and cash equivalents increased to $6.9 million as of April 30, 2025, compared to $3.3 million at the beginning of the fiscal year [12]

Group 1 - Ocean Power Technologies, Inc. (OPT) has signed a new reseller agreement with a partner in Latin America to enhance its presence in the Mexican offshore and maritime markets [1][2] - The agreement includes a $3 million purchase commitment for OPT's WAM-V® Unmanned Surface Vehicles, which will support business development, sales, and technical services [2][3] - This partnership is part of OPT's strategy to expand its global reseller network and access high-growth markets, particularly in security, energy, and commercial sectors in Mexico [3] Group 2 - The company focuses on providing intelligent maritime solutions that enhance safety, cleanliness, and productivity in various sectors, including defense, oil and gas, and offshore wind [4] - OPT's product offerings include PowerBuoy® platforms for clean energy and real-time data communications, as well as marine robotics services [4]

Core Points - Ocean Power Technologies, Inc. (OPT) will release its fiscal 2025 full year and fourth quarter earnings on July 24, 2025, after market close [1] - A conference call to discuss the financial results will take place on July 25, 2025, at 9:00 AM EST, hosted by CEO Philipp Stratmann and CFO Bob Powers [2] - The company is focused on enhancing relations with institutional investors through individual meetings with portfolio managers and analysts [3] Company Overview - OPT specializes in low-carbon marine power, data, and service solutions, providing intelligent maritime solutions for various sectors including defense, oil and gas, science, research, and offshore wind [3] - The company's product offerings include Merrows™, which integrates Maritime Domain Awareness Systems, PowerBuoy platforms for clean electric power and data communications, WAM-V unmanned surface vehicles, and marine robotics services [3] - OPT is headquartered in Monroe Township, New Jersey, with an additional office in Richmond, California [3]