Ocean Power Technologies(US:OPTT)2025-12-15 12:01Financial Performance - The company incurred a net loss of approximately $18.2 million and used cash in operations of approximately $13.1 million during the six months ended October 31, 2025 [141]. - Revenues for the three months ended October 31, 2025, were approximately $0.4 million, a decline of 83.5% compared to $2.4 million in the same period of 2024, primarily due to disruptions from the U.S. federal government shutdown [165]. - The net loss for the six months ended October 31, 2025, was $18.2 million, compared to a net loss of $8.4 million for the same period in 2024, indicating a year-over-year increase of 116.7% [176]. - Operating expenses rose to $8.7 million for the three months ended October 31, 2025, compared to $4.7 million in 2024, driven by a $2.5 million increase in share-based compensation [167]. - Net cash used in operating activities for the six months ended October 31, 2025, was $13.1 million, an increase of $2.2 million from $10.9 million in the same period of 2024 [177]. - Interest expense for the three months ended October 31, 2025, was $(564,000), a significant decrease from $3,000 in 2024, primarily due to expenses related to convertible notes [168]. Financial Position - As of October 31, 2025, the company had cash and cash equivalents of $11.8 million, which is expected to fund operations through December 2026 [182]. - The company believes cash on hand and forecasted operating results will provide sufficient liquidity for at least the next 12 months [142]. - Net cash provided by financing activities increased to $19.8 million for the six months ended October 31, 2025, compared to $10.0 million in 2024, primarily due to proceeds from convertible notes [179]. - The company issued an additional $6.5 million of convertible notes to institutional investors during the quarter, increasing its financial flexibility [140]. Market and Operational Insights - As of October 31, 2025, the backlog was $15.0 million, compared to $3.8 million at October 31, 2024, indicating significant growth in unfulfilled purchase orders [147]. - The company expects to convert all current backlog into revenue within the next 12 to 36 months, although timing may vary [147]. - Revenue distribution for the three months ended October 31, 2025, showed 32% from North and South America, 26% from EMEA, and 42% from Asia and Australia, highlighting a shift in market focus [154]. Costs and Expenses - Cost of revenues increased to $1.8 million for the three months ended October 31, 2025, from $1.6 million in 2024, reflecting full recognition of losses associated with contracts in strategically important markets [166]. - The company has a history of operating losses, which are expected to continue in the short term [141]. Development and Strategic Plans - Engineering and product development costs are focused on enhancing the PowerBuoy® system's power output and reliability, as well as developing new products [156]. - The company plans to use net proceeds from its At-the-Market Offering Program, which has a gross sales price of up to $40.0 million, for general corporate purposes including product development and potential acquisitions [144]. Accounting and Reporting - The company is currently evaluating the impact of recently issued Accounting Standards Updates on its financial reporting [149]. - The company experienced a foreign exchange loss of $10, compared to a loss of $1 in the same period of 2024 [164]. - The company has not engaged in any off-balance sheet financing activities since inception [183].