Photo: Illustration/OPT’s PB3 PowerBuoy (Courtesy of OPT)

Ocean Power Technologies deepens 2021 year-end loss

U.S.-based marine energy company Ocean Power Technologies (OPT) has increased its net loss for the fourth quarter and fiscal year 2021, compared to the same period a year earlier.

Illustration/OPT’s PB3 PowerBuoy (Courtesy of OPT)
Illustration/OPT’s PB3 PowerBuoy (Courtesy of OPT)

OPT’s 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.

The increase is 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, according to OPT.

The losses grew from $1.2 million in the fourth quarter, and $10.4 million for the full fiscal year in 2020.

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 when OPT recorded the revenue of $1.7 million.

OPT said the decline in revenue for the full year was mainly attributable to COVID-19 pandemic-related project delays.

“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.

“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”.

Total cash, cash equivalents, and restricted cash in OPT was $83.6 million as of April 30, 2021. Net cash used in operating activities increased by $1.1 million during the fiscal year ended April 30, 2021, to $11.7 million, OPT informed.

To remind, OPT recently secured $1 million of non-dilutive funding through the New Jersey Technology Business Tax Certificate Transfer Program to finance their growth and operations.

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