Mon, Mar 17, 8:48 PM (118 days ago)
**Ocean Power Technologies, Inc. (OPTT) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $825,000 for Q1 2025, down from $1.792 million in Q1 2024 due to timing of deliveries and product mix. - **Gross Margin:** 24% for Q1 2025, down from 45% in Q1 2024 due to lower margins on third-party equipment. - **Operating Loss:** $5.875 million for Q1 2025, down from $7.705 million in Q1 2024 due to cost reduction activities. - **Net Loss:** $6.720 million for Q1 2025, compared to $6.509 million in Q1 2024. - **Cash Flow:** $14.628 million used in operating activities for Q1 2025, down from $24.711 million in Q1 2024. - **Cash Balance:** $10.180 million as of January 31, 2025, up from $3.305 million as of April 30, 2024. **Key Metrics and Trends:** - **Revenue Recognition:** $4.0 million at a point in time and $0.5 million over time for the nine months ended January 31, 2025. - **Backlog:** $7.5 million as of January 31, 2025, up from $3.3 million as of January 31, 2024. - **Customer Concentration:** Three customers accounted for 95% of revenue in Q1 2025, compared to two customers accounting for 85% in Q1 2024. - **Going Concern:** Substantial doubt about the ability to continue as a going concern due to net losses and cash outflows. **Future Operations Impact:** - **Funding:** $16.8 million received under the At-the-Market Offering Agreement as of January 31, 2025, with an additional $0.9 million received between January 31, 2025, and March 16, 2025. - **Convertible Debt:** $4.0 million in convertible notes issued in December 2024, with the option to issue up to $50 million more. - **Uncertainties:** Dependence on additional funding, market conditions, and operational performance. **Uncertainties and Risks:** - **Market Risks:** Dependence on government contracts, technological advancements, and competitive pressures. - **Operational Risks:** Supply chain disruptions, regulatory changes, and geopolitical events. - **Financial Risks:** Need for additional funding, potential for further losses, and dependence on a few customers.