Business Context and Reporting Period
Company: Ocean Power Technologies, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 13, 2016
Event: Entry into a Material Definitive Agreement with the U.S. Office of Naval Research (ONR).
Key Financial Metrics
This filing reports a specific contract agreement rather than periodic financial performance. Consequently, standard metrics such as revenue, profit, cash flow, margins, debt, and liquidity are not disclosed in this document.
| Metric | Value |
|---|---|
| Initial Phase Funding | Approximately $250,000 |
| Potential Aggregate Fee (All Phases) | Approximately $750,000 |
| Revenue Recognition Period | Not specified; contingent on project phases |
Material Changes
The filing details the execution of a new agreement to design and develop a "Mass on Spring Power Takeoff" and associated "Mass-Spring Oscillating PowerBuoy" for defense mission-critical sensor deployment. This represents a new revenue opportunity rather than a change in historical financial performance.
Outlook, Risks, and Contingencies
- Project Timeline: The initial phase requires delivery of a comprehensive design report to the ONR in early June 2017.
- Contingencies: Additional phases of research and development, which would bring the total fee to approximately $750,000, are contingent upon the successful completion of the initial phase and the availability of ONR funding.
- Contract Terms: The agreement includes standard provisions regarding inspection, testing, warranties, indemnities, limits of liability, risk of loss, and insurance.
Investor Verification Checklist
- Verify the full text of the ONR Agreement (Exhibit 10.1) for specific performance milestones and termination clauses.
- Confirm the Company's ability to deliver the design report by the June 2017 deadline to unlock subsequent funding phases.
- Assess the impact of the $250,000 initial funding on the Company's immediate cash flow and liquidity position.
- Review the press release (Exhibit 99.1) for additional strategic context regarding the defense sector application.