Ocean Power Technologies Announces Progress on Shift to Commercialization and Expects to Achieve Profitability in Calendar Year 2025

Company is Well-Positioned to Drive Shareholder Value Creation in Post-R&D Phase, With Fully Commercialized Solutions and Robust Pipeline

MONROE TOWNSHIP, N.J., Jan. 17, 2024 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. (“OPT” or the “Company”) (NYSE American: OPTT), a leader in innovative and cost-effective low-carbon marine power, data, and service solutions, today announced it has completed several previously announced milestones and initiatives – including reallocation of headcount towards commercialization – that it believes will enhance shareholder value.

OPT now has fully commercialized customer solutions, a robust pipeline, and several recent commercial wins. The Company now expects to achieve profitability in calendar year 2025.

OPT CEO and President Dr. Philipp Stratmann commented: “Now that OPT’s research and development phase has been substantially completed, we have reallocated headcount towards execution and commercialization and are fully focused on this next phase of the Company’s evolution. As we have consistently stated, we are seeing meaningful progress in orders, pipeline, and backlog across our business. Despite current economic headwinds, we have built a cutting-edge suite of products that we believe will be the basis for our current and future commercial success and that will help drive profitability in calendar year 2025. We are fully committed to executing our strategy to generate value for all shareholders.”

As part of the Company’s transition, OPT has divested its strategic consulting team so that it can more fully focus its efforts and resources on commercialization – particularly for the national security and defense markets. In addition to the divesture, the Company also announced that recent achievements in R&D, such as the WAM-V charging demonstration and the Mass-On-Spring-Wave-Energy-Converter (MOSWEC) developments, have enabled additional reallocation of headcount and a material reduction in third-party expenditure. As a result, more than 50% of OPT’s employees are now dedicated to customer delivery.

OPT expects that recent meaningful contract wins, the growth in OPT’s commercial pipeline, the cessation of material R&D efforts, and the corresponding savings from the divestiture of its consulting team and reduction of its engineering team will enable it to reach profitability during calendar year 2025 using current capital resources.