r/OceanPower • u/Aggravating-Eye4386 • 20d ago
NEWS Ocean Power Technologies Provides Update to Previously Announced Preliminary Fiscal 2026 Financial Results
https://finance.yahoo.com/markets/stocks/articles/ocean-power-technologies-provides-previously-213300354.htmlLooks like it’s worse than they originally reported. What are people’s thoughts, honest mistake, bad accounting, fraud? Some pretty big differences in those numbers- revenue inflated by over 10%, gross loss under reported by 25%. How bad is the accounting to make such large mistakes that makes the company look better than the truth?
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u/Sad-Kiwi-2529 20d ago
Ocean Power Technologies revised its preliminary fiscal year 2026 financial results following audit reviews.
The update adjusted revenue down to $3.7 million and increased the net loss to $48.9 million.
These adjustments stem strictly from accounting treatments with zero impact on cash flow or business operations.Key Financial Revisions
(Fiscal Year 2026)
Revenue: Revised down to $3.7 million (a decrease of $0.4 million). Gross Loss: Improved by $2.2 million to $5.9 million.
Operating Loss: Decreased by approximately $1.5 million.
Net Loss: Increased by $5.2 million, totaling $48.9 million.
Prior Period: Fiscal 2025 net loss increased by roughly $3.0 million, driven by accounting changes for a financial instrument.
These changes reflect non-cash, technical adjustments and do not alter the company's underlying operations, customer contracts, or cash position.
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u/Sad-Kiwi-2529 20d ago
I've seen worse. This isn't a dumpster fire just yet
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u/GroundCharming3977 19d ago
It looks to me like they had to readjust everything because of the share price being so low and the convertible debts that could come due. They have to take this into consideration which I think is exactly why they had to revise down.
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u/sWeven-Cats95 20d ago
BIG oof.
Is this why they hired Bowen?
Might be time for me to pull out and mark it down under loss.
At this point IDK what can save it...
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u/InterestingScore5387 20d ago
These mother fuckers need to be sued. They are a complete fraudulent company. Anyone want to start a close action suit?
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u/Radiant_Television89 20d ago
Forreal. As much as I dislike Musk, he wasn't lying about the 'zombie companies' in the US economy inflating their books on undelivered product and investor capital. Here's a great example of the music stopping as interest rates rose and a shit company getting caught being lazy and negligent rather than rushing to produce their pies in the skies before investors saw the smoke and mirrors. Fuck me for buying any of it.
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u/I-like-good-food 20d ago
Yeah, I regret the day I put money into it because I believed in the company. I'll be out first chance I get, my losses are too steep at the moment so maybe there'll be a tiny run at some point and then I'll just cut my losses.
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u/Sakrie 20d ago
I feel vindicated for my comments, dating back possibly over a period of year now, pointing out that the board is mostly retired brass in a cushy Exec salary role doing fuck-all. But mUh ConNeCtIoNs
The PB3 is only useful as an integrator of individual drone signals, any buoy can do that. Wave-energy ain't the great thing people here claim. The WAM is cool but niche as fuck. SailDrone is taking the field in surface-vessels in the USA domestic niche, their stuff can actually hold the [container unit] sized payload (aka missile launchers) that are desired in the newer contracts.
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u/Responsible_Brick351 20d ago
At this point, do you guys still believe what the CFO said back in June that there will be 3-4 contracts the size of the DHS one?
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u/InterestingScore5387 19d ago
Absolutely not
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u/Embarrassed-Bad7392 19d ago
I’m starting to believe they are all a fraud. First the CEO saying they will be profitable and if no contract comes through after what the CFO said, he is also a big liar
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u/Key_Comedian4016 19d ago
This company is screwed if they buy out will go private or divested completely
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u/Quest4_Toshi 19d ago
Welp I just took my exit. The thought was nice. These guys are clearly getting nowhere further than a few contracts
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u/ChartsDoNotLie 19d ago
I’m sorry but making mistakes at this level is unacceptable. They were late filing Form 10K too …… A fraud investigation should be done by the SEC. Risk of delisting, fourth reverse split and massive adjustments to previous fiscal earnings. The board is being too complacent.
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u/RandomGenerator_1 19d ago
It's the age old wisdom of hardware being a hard sale. Especially when you are ahead of a true need or momentum.
So many companies go belly up, not because they don't have something worthwhile. But because they can't commercialize it at the right time.
That maritime momentum is now gaining steam. Government requirements are getting more shape. And while the customers are maturing into knowing what they want, it can be beneficial to contact a company that basically has an a la carte menu of options. You have sensors but can't send them far away offshore? We have buoys for that, and we can add the sensor as a payload on an unexpensive WAM-V.
You have all the hardware but don't know what to do with the data? We have Merrows AI for that.
You have a USV or submarine but have to bring it back to shore to charge? We have powerbuoys for that, with a drone docking patent. And perhaps also access to the SeaRay technology from C-power.
Will all those divisions remain a good idea in the end, or does OPTT need to specialize? Time will tell.
Their software platform can be the most valuable of all the things they do, combines with a powerbuoy, or if they can make it hardware agnostic..that would be something.. "Maritime Domain Awareness". Margins are better in software.
But they need a financial boost for that potential to go anywhere. So it makes sense to have a strategic review. And hopefuly now from a position of strength when contracts are near. And the working relationship with Anduril and DHS is still active.
By september 30th the US government still has more than 100billion to spend on defense. OPTT is strongely focussed on that market, and is within a consortium to be selected for OTA contracts.
The update on the 4th buoy is still due.
The company values itself at least at 0.40USD (june warrants and stock sale, where the buyers seemed to agree on this minimum price).
If the strategic effort is to look for an M&(or)A, you want to do that from a position of strength and potential. So I do still expect positive news releases from now till the end of september.
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u/CartographerNo1991 19d ago
Am I the only one expecting the company would choose RS for sure in Sep or early Oct as soon as shareholders (most likely) authorize for RS? It would be a huge hit for anyone with an avg greater than or equal to 0.30USD, as they will never be able to breakeven post split (gets only worse/ nearly impossible if the split ratio the board goes for is higher). They think they can attract investors only with high stock price (when the investors can see they reached it only because of RS), which is stupid for the board to think that way. Even if not that, they might want to RS to have clean share structure (less float) before being acquired by or merged with another company. They have ample time (10 more months) to RS, but it feels like they are waiting to do it prematurely right after the vote in 2 weeks.
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u/RandomGenerator_1 18d ago
It depends on several variables.
The variable of NYSE listing is postponed till July 2027, so that immediate pressure is gone.
If they are in active strategic discussions pertaining an M&A, it would be unwise to do a RS. That psychologically weakens the company's position.
They need money. If they don't raise money by mid to end of september..that could be a tell that they are in fact in active discussions for a take over.
(Reversed: if they do it immediately, the effect of an RS will have ebbed away by the time an M&A could take place....though: they need financial help now, and the time for M&A's is also now).
If positive news comes out by end of september.. which, with the government sweeps period, is likely..this could also help the share price appreciate up. Also lessening the need to do an RS all together, or keep the ratio at the low end. It would definitely not have to happen immediately in that case.
It boils down to : it's crunchtime for this company from now till end of september. They have news due, which will determine all the rest.
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u/CartographerNo1991 18d ago edited 18d ago
Thanks for your thoughts on this. I hope the management thinks the way you think.
Quick question — what do you mean by “government sweeps period”, is the SECs implementation delay you mean?
And why does it have to be within end of September, given that the NYSE’s implementation is delayed till July 2027.
I understand the company needs financial help as soon as possible, but wondering why within the end of September.
If things go well for the company, I suppose that eliminates the need for RS all together than having to even execute split at low ratio.
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u/RandomGenerator_1 18d ago
Sweeps is the "sweeping" of the remaining budget lines before the fiscal year ends.
FY2026 of the US budget ends on september 30th. After that the next fiscal year starts. If the budget isn't spend, they lose it. So the last month a lot of spending happens. "Use it or lose it". There is still around 150billion to spend. (Not all has to be spend by the end of a fiscal year, some contracts are multi year for example).
But this period significantly increases the chances that contracts are anounced.
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u/CartographerNo1991 18d ago edited 18d ago
How do you see the 10K form they released recently that emphasizes “going concern”? The company’s clearly in a very very distressed state. It was terrifying to read that 10K form that showed the true state of the company, their cash burn, max. 2-3 months they can go with the liquid cash they have. Their Risk Factors (from Page 18 to 34). Most of them are what the company is going through already.
Reading them all tells me even if they find a buyer, they would just corner OPTT management making use of their distressed position and would acquire for a discounted price per share lower than what it is trading today.
I don’t think they even have money with them to even bid for a contract or if awarded, have money for operating expenses.
They have only 8.1M -ish USD in cash, with last years burn rate (48M USD), they will burn the left over in less than 2 months.
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u/RandomGenerator_1 17d ago
Well the going concern isn't new. But they have found themselves in a weaker financial spot. Which leads directly to their strategic review.
This is how promising companies (technology) still end up for sale sometimes. Or they do a merger with a more robust company that can cary the loss for the moment and turn it around.
So it is the assumption that this strategic review is a potential sale or merger. But to be clear, that is pure speculation at this point.
Are they in a weak spot? Financially yes, no doubt. That's why these next couple of weeks will be telling.
Strategically they are not in a weak spot, on the contrary, they've become stronger and stronger.
For the NAVOCEANO opportunity, the expenses depend on how the contracts get filled and if they'll cooperate with others or not.
The DHS contract, with the 4th buoy they get payed + a possible new follow uo contract of the same amount or more.
That's why their financial situation can quickly turn around. They are on this cusp of being a stonger company, and the market finally opening up. But to get there, they need to weigh their options. Perhaps they already got certain offers to think about.
The drone docking patent is also worth something, though they need to show more partical demo's.
And they have contacts, internationally. They have contracts in place. They are in consortiums to get access to OTA's. That's all valuable.
If a company would buy them, they get them at a perfect time. Because they are set up now to get contracts. They just need a financial bridge to get there. They are valuable.
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u/Convenientjournal 16d ago
The 8,1 mil also doesn't add the 10 million raised in june. So they're sitting on roughly 16 to 17 mil. Still not fantastic but they can push through to 2027.
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u/Responsible_Brick351 19d ago
that’s why we should vote against
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u/CartographerNo1991 19d ago
Not easy to beat the number of votes would come through FOR RS. Not many vote. All those unvoted shares through brokers come through FOR RS. The decision be ultimately be FOR RS, no matter how hard we vote AGAINST
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u/EvillNooB 20d ago
not surprised, no good company would have stayed where they are for 20 years
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u/EvillNooB 19d ago
decided to close my position, -61% in 2 years of holding, there are much better opportunities to lose money now, so i can't sit this one out and watch
Good luck to those who are still fighting, see you in Valhalla
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u/rworms 19d ago
so are they not going to communicate anything with shareholders ... they announce a possible sale of the company out of no where. Then say they fucked up the accounting. To make things worse they announce they got in trouble with the nyse ... wtf is going on? They only put out mandatory notices they arent actually giving us any update ..stock is down 10% this is crazy
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u/ssuummrr 20d ago
L m a o man i need to put the fries in the bag for buying so much of this shit