Business Context and Reporting Period
Company: Ocean Power Technologies, Inc. (OPTT)
Filing Type: Form 8-K (Current Report)
Date of Report: September 25, 2009
Event Date: September 25, 2009 (Agreement Entry)
Business Context: The company entered into a material definitive agreement with the US Navy regarding the Littoral Expeditionary Autonomous PowerBuoy (LEAP) system, designed to enhance anti-terrorism and force protection capabilities through persistent power at sea for maritime surveillance.
Key Financial Metrics
Contract Value: $2.4 million (eligible to be received).
Contract Duration: One year (initial award under a proposed four-year project).
Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The filing text does not provide a clear value for these general financial metrics; this report focuses solely on the specific contract award.
Material Changes
This filing reports the entry into a new material definitive agreement with the US Navy. There is no prior comparable period data provided in this specific document to assess changes in financial performance.
Guidance, Outlook, and Risks
- Project Scope: The agreement is the initial award for a proposed four-year project involving the LEAP system.
- Subcontracting: Certain aspects of the system will be provided by subcontractors, including Rutgers University and Mikros Systems Corporation.
- System Capabilities: Includes detection, tracking, and timely communication of information for port maritime surveillance in near coast, harbors, piers, and offshore areas.
- Disclosure: The full text of the press release announcing the agreement is filed as Exhibit 99.1. The full Agreement will be filed as an exhibit to the next Form 10-Q.
Investor Verification Checklist
- Verify the total potential value of the proposed four-year project beyond the initial $2.4 million award.
- Review the upcoming Form 10-Q for the period ended October 31, 2009, to examine the full text of the Agreement.
- Assess the financial impact of subcontracting arrangements with Rutgers University and Mikros Systems Corporation.
- Confirm the specific milestones required to receive the $2.4 million eligible amount.