Ocean Power Technologies(US:OPTT)2024-12-16 21:15Contracts and Awards - The company received additional funding from the Naval Postgraduate School for the year-long deployment of a PowerBuoy® in Monterey Bay, integrating MDAS, Satellite communication, and AT&T 5G technology[169] - The company was awarded three separate Indefinite Delivery Indefinite Quantity (IDIQ) Multiple-Award Contracts (MAC) from NOAA to provide Uncrewed Maritime Systems (UMS) Services[170] - The company was awarded a contract to provide scientific hardware delivery, training, and integration services under a subcontract for a U.S. government agency[171] - In September 2024, the company received a contract from the Naval Postgraduate School for maritime domain awareness and connectivity enhancement[202] - In July 2024, the company was awarded a contract for immediate delivery of a PowerBuoy equipped with Merrows in the Middle East[206] Product Development and Testing - The company completed more than four months of offshore testing of its Next Generation PowerBuoy® in the Atlantic Ocean, maintaining 100% data uptime and battery state of charge over 90%[181] - The Next Generation PowerBuoy® integrates solar and wind power, with a prototype tested off the coast of New Jersey, and is now commercially available[187] - The NextGen PB has a 50kW-hour battery system expandable up to 100 kW-hour energy[188] - The legacy PB3 generates up to 3 kW of peak power with an ESS capacity of up to 150 kW-hours[189] - The company completed development of its next-generation PowerBuoy®, integrating wave, wind, and solar power generation capabilities, partially funded by the DOE SBIR Phase II award[219] - In August 2024, the company announced a patent pending for docking and recharging buoy technology for the WAM-V[204] Revenue and Financial Performance - Revenue for the six months ended October 31, 2024 was $3.7 million, compared to $2.2 million in the same period in 2023, driven by increased sales and leases of WAM-Vs[273] - Revenue for the three months ended October 31, 2024 was $2.4 million, up from $0.9 million in the same period in 2023, primarily due to higher sales and leases of WAM-Vs[264] - Cost of revenue for the six months ended October 31, 2024 increased to $2.5 million from $1.0 million in 2023, reflecting higher revenue and a shift in product mix[274] - Cost of revenue for the three months ended October 31, 2024 rose to $1.6 million from $0.4 million in 2023, driven by increased revenue and changes in product mix[265] - Operating expenses for the six months ended October 31, 2024 decreased to $9.6 million from $16.1 million in 2023, due to cost reduction measures including headcount optimization[276] - Operating expenses for the three months ended October 31, 2024 were $4.7 million, down from $8.0 million in 2023, primarily due to cost containment efforts[267] - Net loss for the six months ended October 31, 2024 was $8.4 million, compared to $14.3 million in 2023[273] - Net loss for the three months ended October 31, 2024 was $3.9 million, compared to $7.2 million in 2023[263] - Revenue from North and South America accounted for 61% of total revenue for the six months ended October 31, 2024, down from 95% in 2023[253] - Revenue from EMEA (Europe, Middle East, and Africa) increased to 38% of total revenue for the six months ended October 31, 2024, up from 5% in 2023[253] - Other income for the six months ended October 31, 2024 was $17 thousand, related to proceeds from the sale of fixed assets[278] - The company incurred net losses of $8.4 million for the six months ended October 31, 2024, compared to $14.3 million in the same period in 2023[279] - Net cash used in operating activities decreased to $10.9 million for the six months ended October 31, 2024, from $15.5 million in 2023[280] - Net cash used in investing activities was $128,000 for the six months ended October 31, 2024, compared to $11.9 million provided in 2023[281] - Net cash provided by financing activities was $10.0 million for the six months ended October 31, 2024, up from $27,000 in 2023[282] - Year-to-date revenues as of October 31, 2024 were $3.7 million, with net losses of $8.4 million and net cash used in operating activities of $10.9 million[285] - The company’s cash and cash equivalents and long-term restricted cash balance was $2.2 million as of October 31, 2024[286] - Substantial doubt exists about the company’s ability to continue as a going concern for at least one year from the issuance of the financial statements[287] Strategic Partnerships and Agreements - In October 2024, the company signed a Distributor Agreement with Remah International Group for defense and security business expansion in the Middle East[201] - In July 2024, the company signed a reseller agreement with Geos Telecom for maritime communication and navigation solutions in Costa Rica[205] - The company has strategic partnerships to enhance product development, market channels, and geographic footprint, including collaborations with fabrication, deployment, and service contractors[223][224] Product Launches and Innovations - The company announced Merrows, a comprehensive ocean surveillance solution integrating Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance systems[182] - The company approached 15MWh of renewable energy production from its family of PowerBuoys, with the Next Generation PB accelerating energy production by combining solar, wind, and wave energy[183] - The company introduced a subscription model for Robotics as a Service (RaaS), allowing customers to lease WAM-Vs over a fixed time period or specified use days[184] - In June 2024, the company launched Global 24/7 Service Support for its Merrows solution[211] Operational and Strategic Focus - The company transitioned focus from third-party software to internal software team for faster response and control over MDAS solution[213] - The company developed a defense-specific sales team including veterans from the U.S. Navy and Swedish Navy[215] - The company focuses sales efforts on key global markets, including the U.S., Middle East, Latin America, and Sub-Saharan Africa, targeting defense, security, and hydrographic survey markets[222] Financial Transactions and Offerings - The company entered into an At-the-Market Offering Agreement with an aggregate offering price of up to $60.0 million as of December 2024, with $8.0 million received by October 31, 2024, and an additional $2.0 million received by December 13, 2024[228] - The company's First Registered Direct Offering raised $1.5 million, with the potential to sell an additional $3.5 million of shares under the same terms[229] - The company's Second Registered Direct Offering raised $1.5 million, with the potential to sell an additional $2.5 million of shares under the same terms[232] - The company's current cash balance may not be sufficient to fund planned expenditures through December 2025, raising substantial doubt about its ability to continue as a going concern[235] Deployments and Demonstrations - The company successfully deployed several WAM-V autonomous surface vehicles during the Mission Autonomy Proving Grounds (MAPG) as part of Project Overmatch[180] - The company expanded its DaaS offering through field demonstrations such as ANTX Coastal Trident and the Naval Task Force 59 for the Digital Horizon field exercise[169] Product Features and Capabilities - The company's WAM-V® can reduce its footprint by up to 75%, allowing four 16-foot WAM-Vs® to fit in a 20-foot container[220]