Paragon Technologies Commences Mailing of BLUE Proxy Card and Issues Letter to Ocean Power Technologies Shareholders - Seite 2

Expenses $12.5M $21.5M $28.3M $16.1M

Net Loss ($14.8M) ($18.9M) ($26.3M) ($14.3M)

Cash & ST Inv. $83.0M $57.3M $34.7M $18.7M

On April 30, 2021, OPT's share price was $2.51. As of December 15, 2023, the share price is $0.35, a decline of nearly 90%.

Perhaps more self-serving, at the expense of stockholders, is that over the past three years Board and Executive Officer Compensation more than doubled and exceeded OPTT's revenues!

Fiscal Year Ended 2021 2022 2023 Total

Revenues $1.2M $1.8M $2.7M $5.7M

Board and Exec. Comp $2.1M $3.0M $2.6M $7.7M

In three years, the board and management have taken home $7.7 million while the entire company has generated $5.5 million in sales and lost $60 million.

How were these losses funded? By stockholders. Since April 30, 2020, OPT has raised nearly $80 million from the sale of tens of millions of shares of stock to the public that have funded losses, salaries, and bonuses. The Board has no problem issuing millions of shares and diluting stockholders because they own very little equity, almost all of it granted to them. A share price decline does not affect their pocketbooks.

Despite the worsening financial performance, the Board and CEO continue to publicly paint a false narrative of the business in an attempt to mislead stockholders:

• The CEO continues to tout "progress" and that the "strategy is working" without substantiating any of these comments with numerical support or milestones.
• They make public announcements about potential contract awards that have no definitive revenue commitments.
• Seemingly out of nowhere they start announcing a sales pipeline of $60 million and then $90 million while the latest quarterly revenues were $900,000.
• They spend $8 million a quarter on expenses that are primarily funding salaries, bonuses and incentive payments.

The current Board has decimated OPT, yet it has never acknowledged or taken responsibility for any of the stockholder value destruction that has occurred. Instead, OPT's Board and management have tried to paint a rosy picture, "putting lipstick on a pig." They do not deserve, or warrant, the trust that stockholders should expect from their fiduciaries.