OPTT Ocean Power Technologies Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended January 31, 2025

 

Or

 

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Transition Period From ______to______

 

Commission file number: 001-33417

 

OCEAN POWER TECHNOLOGIES, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware		22-2535818
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

 

28 ENGELHARD DRIVE, SUITE B, MONROE TOWNSHIP, NJ 08831

(Address of Principal Executive Offices, Including Zip Code)

 

(609) 730-0400

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock $0.001 par value		OPTT		NYSE American
Series A Preferred Stock Purchase Rights		N/A		NYSE American

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

As of March 14, 2025, the number of outstanding shares of common stock of the registrant was 170,050,563.

 

 

 

OCEAN POWER TECHNOLOGIES, INC.

 

INDEX TO FORM 10-Q

 

	Page Number
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets as of January 31, 2025 (unaudited) and April 30, 2024	3
Unaudited Consolidated Statements of Operations for the three and nine months ended January 31, 2025 and 2024	4
Unaudited Consolidated Statements of Comprehensive Loss for the three and nine months ended January 31, 2025 and 2024	5
Unaudited Consolidated Statement of Shareholders’ Equity for the three and nine months ended January 31, 2025 and 2024	6
Unaudited Consolidated Statements of Cash Flows for the nine months ended January 31, 2025 and 2024	8
Notes to Unaudited Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures About Market Risk	43
Item 4. Controls and Procedures	43
PART II — OTHER INFORMATION	44
Item 1. Legal Proceedings	44
Item 1A. Risk Factors	44
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3. Defaults Upon Senior Securities	44
Item 4. Mine Safety Disclosures	44
Item 5. Other Information	45
Item 6. Exhibits	45

 

 

PART I — FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Ocean Power Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(in $000’s, except share data)

 

		January 31, 2025				April 30, 2024
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	10,026			$	3,151
Accounts receivable, net			1,626				796
Contract assets			478				18
Inventory			3,949				4,831
Other current assets			752				1,747
Total current assets			16,831				10,543
Property and equipment, net			3,589				3,443
Intangibles, net			3,523				3,622
Right-of-use assets, net			1,772				2,405
Restricted cash, long-term			154				154
Goodwill			8,537				8,537
Total assets		$	34,406			$	28,704
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	637			$	3,366
Earnout payable			350				1,130
Accrued expenses			2,240				1,787
Right-of-use liabilities, current portion			1,115				774
Contract liabilities			—				302
Total current liabilities			4,342				7,359
Deferred tax liability			203				203
Right-of-use liabilities, less current portion			950				1,798
Total liabilities			5,495				9,360
Commitments and contingencies (Note 14)			-				-
Shareholders’ Equity:
Preferred stock, $0.001 par value; authorized 5,000,000 shares, none issued or outstanding; 100,000 designated as Series A			—				—
Common stock, $0.001 par value; authorized 200,000,000 shares, issued 170,790,707 shares and 61,352,731 shares, respectively; outstanding 170,003,230 shares and 61,264,714 shares, respectively			170				61
Treasury stock, at cost; 787,477 and 88,017 shares, respectively			(1,018	)			(369	)
Additional paid-in capital			352,468				327,276
Accumulated deficit			(322,664	)			(307,579	)
Accumulated other comprehensive loss			(45	)			(45	)
Total shareholders’ equity			28,911				19,344
Total liabilities and shareholders’ equity		$	34,406			$	28,704

 

See accompanying notes to unaudited consolidated financial statements.

 

 

Ocean Power Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(in $000’s, except per share data)

Unaudited

 

		2025				2024				2025				2024
		Three months ended January 31,								Nine months ended January 31,
		2025				2024				2025				2024
Revenues		$	825			$	1,792			$	4,545			$	3,953
Cost of revenues			628				979				3,106				1,989
Gross margin			197				813				1,439				1,964
Operating expenses			6,072				8,551				15,702				24,648
Gain from change in fair value of consideration			—				(33	)			—				(117	)
Operating loss			(5,875	)			(7,705	)			(14,263	)			(22,567	)
Interest income, net			6				151				13				760
Other income (expense), net			(13	)			—				4				—
Loss on disposition of assets			—				(210	)			—				(210	)
Loss on extinguishment of debt			(838	)			—				(838	)			—
Foreign exchange gain (loss)			—				1				(1	)			2
Loss before income taxes			(6,720	)			(7,763	)			(15,085	)			(22,015	)
Income tax benefit			—				1,254				—				1,254
Net loss			(6,720	)			(6,509	)			(15,085	)			(20,761	)
Basic and diluted net loss per share		$	(0.04	)		$	(0.11	)		$	(0.13	)		$	(0.35	)
Weighted average shares used to compute basic and diluted net loss per common share			147,543,452				58,865,898				112,630,443				58,790,160

 

See accompanying notes to unaudited consolidated financial statements.

 

 

Ocean Power Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in $000’s)

Unaudited

 

		2025				2024				2025				2024
		Three months ended January 31,								Nine months ended January 31,
		2025				2024				2025				2024
Net loss		$	(6,720	)		$	(6,509	)		$	(15,085	)		$	(20,761	)
Foreign currency translation adjustment			—				—				—				—
Total comprehensive loss		$	(6,720	)		$	(6,509	)		$	(15,085	)		$	(20,761	)

 

See accompanying notes to unaudited consolidated financial statements.

 

 

Ocean Power Technologies, Inc. and Subsidiaries

Consolidated Statements of Shareholders’ Equity

(in $000’s, except share data)

Unaudited

 

		Shares				Amount				Shares				Amount				Capital				Deficit				Loss				Equity
		Nine Months Ended January 31, 2025
		Common Shares								Treasury Shares								Additional Paid-In				Accumulated				Accumulated Other Comprehensive				Total Stockholders’
		Shares				Amount				Shares				Amount				Capital				Deficit				Loss				Equity
Balance at May 1, 2024			61,352,731			$	61				(88,017	)		$	(369	)		$	327,276			$	(307,579	)		$	(45	)			19,344
Net loss			—				—				—				—				—				(15,085	)			—				(15,085	)
Share-based compensation			—				—				—				—				1,331				—				—				1,331
Common stock issued related to bonus and earnout payments			2,864,808				3				—				—				627				—				—				630
Common stock issued upon vesting of restricted shares			2,964,209				2				—				—				—				—				—				2
Issuance of common stock – AGP At The Market Offering, net of issuance costs			66,720,451				67				—				—				16,812				—				—				16,879
Issuance of common stock – Capital Raise, net of issuance costs			21,446,079				22				—				—				2,429				—				—				2,451
Issuance of common stock - Convertible Debt, net of issuance costs			15,442,429				15				—				—				3,993				—				—				4,008
Shares withheld for tax withholdings			—				—				(699,460	)			(649	)			—				—				—				(649	)
Balances at January 31, 2025			170,790,707			$	170				(787,477	)		$	(1,018	)		$	352,468			$	(322,664	)		$	(45	)		$	28,911

 

		Nine Months Ended January 31, 2024
		Common Shares								Treasury Shares								Additional Paid-In				Accumulated				Accumulated Other Comprehensive				Total Stockholders’
		Shares				Amount				Shares				Amount				Capital				Deficit				Loss				Equity
Balance at May 1, 2023			56,304,642			$	56				(40,914	)		$	(355	)		$	324,393			$	(280,096	)		$	(45	)			43,953
Net loss			—				—				—				—				—				(20,761	)			—				(20,761	)
Share-based compensation			—				—				—				—				803				—				—				803
Common stock issued related to bonus and earnout payments			2,403,846				3				—				—				1,247				—				—				1,250
Common stock issued upon vesting of restricted stock			786,998				—				—				—				—				—				—				—
Issuance of common stock - Cantor At The Market offering, net of issuance costs			55,604				—				—				—				29				—				—				29
Shares withheld for tax withholdings			—				—				(47,103	)			(13	)			—				—				—				(13	)
Balances at Balance, January 31, 2024			59,551,090			$	59				(88,017	)		$	(368	)		$	326,472			$	(300,857	)		$	(45	)		$	25,261

 

 

		Shares				Amount				Shares				Amount				Capital				Deficit				Loss				Equity
		Three Months Ended January 31, 2025
		Common Shares								Treasury Shares								Additional Paid-In				Accumulated				Accumulated Other Comprehensive				Total Stockholders’
		Shares				Amount				Shares				Amount				Capital				Deficit				Loss				Equity
Balance at November 1, 2024			124,683,555			$	125				(88,017	)		$	(369	)		$	338,352			$	(315,944	)		$	(45	)			22,119
Net loss			—				—				—				—				—				(6,720	)			—				(6,720	)
Share-based compensation			—				—				—				—				780				—				—				780
Common stock issued related to bonus and earnout payments			—				—				—				—				—				—				—				—
Common stock issued upon vesting of restricted shares			2,954,209				2				—				—				—				—				—				2
Issuance of common stock – AGP At The Market Offering, net of issuance costs			27,710,514				28				—				—				9,343				—				—				9,371
Issuance of common stock - Convertible Debt, net of issuance costs			15,442,429				15				—				—				3,993				—				—				4,008
Shares withheld for tax withholdings			—				—				(699,460	)			(649	)			—				—				—				(649	)
Balances at January 31, 2025			170,790,707			$	170				(787,477	)		$	(1,018	)		$	352,468			$	(322,664	)		$	(45	)		$	28,911

 

		Three Months Ended January 31, 2024
		Common Shares								Treasury Shares								Additional Paid-In				Accumulated				Accumulated Other Comprehensive				Total Stockholders’
		Shares				Amount				Shares				Amount				Capital				Deficit				Loss				Equity
Balance at November 1, 2023			58,833,756			$	59				(44,988	)		$	(357	)		$	326,342			$	(294,348	)		$	(45	)			31,651
Balance			58,833,756			$	59				(44,988	)		$	(357	)		$	326,342			$	(294,348	)		$	(45	)			31,651
Net loss			—				—				—				—				—				(6,509	)			—				(6,509	)
Share-based compensation			—				—				—				—				130				—				—				130
Common stock issued upon vesting of restricted stock			717,332				—				—				—				—				—				—				—
Shares withheld for tax withholdings			—				—				(43,029	)			(11	)			—				—				—				(11	)
Balances at Balance, January 31, 2024			59,551,090			$	59				(88,017	)		$	(368	)		$	326,472			$	(300,857	)		$	(45	)		$	25,261
Balance			59,551,090			$	59				(88,017	)		$	(368	)		$	326,472			$	(300,857	)		$	(45	)		$	25,261

 

See accompanying notes to unaudited consolidated financial statements.

 

 

Ocean Power Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in $000’s)

Unaudited

 

		2025				2024
		Nine months ended January 31,
		2025				2024
Cash flows from operating activities:
Net loss		$	(15,085	)		$	(20,761	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of fixed assets			610				286
Foreign exchange (loss)/gain			(1	)			2
Loss on disposal of property and equipment			111				—
Amortization of intangible assets			99				114
Noncash lease expense			633				388
Accretion of discount on investments			—				(277	)
Change in contingent consideration liability			—				(117	)
Share-based compensation			1,331				803
Loss on extinguishment of debt			838				—
Loss on disposition of assets			—				210
Changes in operating assets and liabilities:
Accounts receivable			(830	)			120
Contract assets			(460	)			(129	)
Inventory			366				(2,416	)
Other assets			996				(2,933	)
Accounts payable			(2,731	)			512
Earnout payable			(150	)			(500	)
Accrued expenses			453				894
Right-of-use liabilities			(506	)			(397	)
Contract liabilities			(302	)			(510	)
Net cash used in operating activities		$	(14,628	)		$	(24,711	)
Cash flows from investing activities:
Redemptions of short-term investments			—				31,625
Purchases of short-term investments			—				(7,935	)
Purchases of property and equipment			(350	)			(1,224	)
Net cash (used in)/provided by investing activities		$	(350	)		$	22,466
Cash flows from financing activities:
Cash paid for tax withholding related to shares withheld		$	(649	)			(13	)
Proceeds from on convertible notes			3,171				—
Proceeds from issuance of common stock - At The Market offering, net of issuance costs			16,880			$	29
Proceeds from issuance of common stock - Capital Raise, net of issuance costs			2,451
Net cash provided by financing activities		$	21,853			$	16
Net increase (decrease) in cash, cash equivalents and restricted cash		$	6,875			$	(2,229	)
Cash, cash equivalents and restricted cash, beginning of period		$	3,305			$	7,103
Cash, cash equivalents and restricted cash, end of period		$	10,180			$	4,874
Supplemental disclosure of noncash investing and financing activities:
Common stock issued related to bonus and earnout payments		$	630			$	1,250
Common stock issued related to conversion of convertible debt			15				—
Operating right of use asset obtained in exchange for operating lease liability			—				1,247

 

See accompanying notes to unaudited consolidated financial statements.

 

 

Ocean Power Technologies, Inc. and Subsidiaries

Notes to Unaudited Consolidated Financial Statements

 

(1) Background, Basis of Presentation and Liquidity

 

(a) Background

 

Ocean Power Technologies, Inc. (the “Company” or “OPT”) was founded in 1984 in New Jersey, commenced business operations in 1994 and re-incorporated in Delaware in 2007. The Company provides ocean data collection and reporting, marine power, offshore communications and Maritime Domain Awareness Systems (“MDA” or “MDAS”) products and integrated solutions. The Company’s solutions focus on three major service areas: Data as a Service (“DaaS”), which includes data collected by Wave Adaptive Modular Vessel (WAM-V®) autonomous vehicles and PowerBuoy® product lines; Robotics as a Service (“RaaS”), which provides a lower cost subscription model for customers to access use of WAM-V’s®; and Power as a Service (“PaaS”), which includes PowerBuoy® products. The Company offers products and services to a wide-range of customers, including those in government and offshore energy, oil and gas, construction, wind power and other industries. The Company has been involved in the entire life cycle of product development, from product design through assembly, testing, deployment, maintenance and upgrades, while working closely with partners across the supply chain. The Company’s solutions are based on technologies that enable autonomous, zero or low carbon emitting, and cost-effective data collection, analysis, transportation, cooperation with other assets such as aerial drones, and communication. The Company’s solutions are primarily suited to ocean and other offshore environments, and support generation of actionable intelligence on a standalone basis or working with other data sources. The Company then channels the information it collects, and other communications, through control equipment linked to edge computing and cloud hosting environments. The Company’s goal is to generate most revenue from the sale or lease of products and solutions. The Company expects to continue having net cash outflows until it can generate positive cash flow from the commercialization of products and services.

 

(b) Basis of Presentation

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and for interim financial information in accordance with the Securities and Exchange Commission (“SEC”), instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The interim operating results are not necessarily indicative of the results for a full year or for any other interim period. Further information on potential factors that could affect the Company’s financial results can be found in the Company’s Annual Report on Form 10-K for the year ended April 30, 2024, as filed with the SEC and elsewhere in subsequent Exchange Act filings, including this Form 10-Q. Certain amounts have been reclassified to conform to current period presentation. This reclassification had no impact on the previously reported net loss or comprehensive loss.

 

(c) Going Concern Uncertainty

 

For the nine months ended January 31, 2025, the Company incurred net losses of approximately $15.1 million and used cash in operations of approximately $14.6 million. In addition, the Company has continued to make investments to support order backlog and future growth. For the nine months ended January 31, 2025 and through the date of filing of this Form 10-Q, the Company has obtained additional capital financing through our capital raises with certain investors. Despite this, management believes the Company’s current cash, cash equivalents, and restricted cash balances at January 31, 2025 of $10.2 million may not be sufficient to fund its planned expenditures through March 2026.

 

The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect the Company’s future operating results and could cause actual results to vary materially from expectations include, but are not limited to, performance of its products, its ability to market and commercialize its products and new products that it may develop, access to capital, technology development, scalability of technology and production, ability to attract and retain key personnel, concentration of customers and suppliers, pending or threatened litigation, and deployment risks and integration of acquisitions.

 

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Table of Contents

 

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The accompanying consolidated financial statements have been prepared on a basis which assumes the Company is a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from any uncertainty related to the Company’s ability to continue as a going concern. Such adjustments could be material.

 

(2) Summary of Significant Accounting Policies

 

(a) Consolidation

 

The accompanying consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, Marine Advanced Robotics Inc. (CA), referred to herein as MAR, 3dent Technologies LLC (3Dent), Oregon Wave Energy Partners I LLC (DE), ReedSport OPT WavePark, LLC (OR) and Ocean Power Technologies Ltd. in the United Kingdom. ReedSport OPT WavePark, LLC (OR) and Oregon Wave Energy Partners I, LLC (DE) were dissolved during the first quarter of fiscal 2024. 3dent was sold in November 2023 and the consolidated financial statements for the three and nine months ended January 31, 2024 include 3dent’s results of operations for the applicable periods through the date of sale. All significant intercompany balances and transactions have been eliminated in consolidation.

 

(b) Use of Estimates

 

The preparation of the consolidated financial statements requires management of the Company to make several estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include, among other items, stock-based compensation based on actual and projected revenues, over time revenue recognition, valuation consideration related to business combinations, including contingent consideration based on actual and projected revenues, including discount rates and present values, and other assumptions and estimates used to evaluate the recoverability of long-lived assets, goodwill and other intangible assets. Actual results could differ from those estimates.

 

(c) Cash, Cash Equivalents, Restricted Cash and Security Agreements

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with an original maturity of three months or less when purchased, to be cash equivalents. The Company invests excess cash in a money market account. The Company had cash, cash equivalents and restricted cash of approximately $10.2 million and $3.3 million as of January 31, 2025 and April 30, 2024, respectfully.

 

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Restricted Cash and Security Agreements

 

The Company has a letter of credit agreement with Santander Bank, N.A. (“Santander”). Cash of $154,000 is on deposit at Santander and serves as security for a letter of credit issued by Santander for the lease of warehouse/office space in Monroe Township, New Jersey.

 

In the prior years, Santander also issued a letter of credit to subsidiaries of Enel Green Power (“EGP”) pursuant to the Company’s contracts with EGP. A letter of credit was issued in the amount of $645,000 and was reduced to $323,000 in August 2020. The letter of credit was further reduced by an additional $258,000 in January 2023, when the legacy PB3 PowerBuoy® (“PB3”) and its accompanying systems passed final acceptance testing. The remaining restricted amount of $65,000 was released in January 2024.

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that total to the same amounts shown in the Consolidated Statements of Cash Flows.

 Schedule of Cash, Cash Equivalents and Restricted Cash

		January 31, 2025				April 30, 2024
		(in thousands)
Cash and cash equivalents		$	10,026			$	3,151
Restricted cash- long term			154				154
Cash, cash equivalents, restricted cash and restricted cash equivalents		$	10,180			$	3,305

 

(d) Inventory

 

In accordance with Accounting Standards Codification 330 (ASC 330), inventory is stated at the lower of costs or net realizable value applicable to goods on hand. Items remain in inventory until they are shipped to the customer, at which time the costs are transferred on a FIFO basis to cost of revenues, or moved to leased assets as applicable, following the matching principle where costs and revenues are recognized in the same period. The Company has three classes of inventory; raw materials, work in process, and finished goods.

 

(e) Accounts Receivable

 

Accounts receivable are stated at the net amount expected to be collected. Amounts are usually due between 30 and 90 days after the invoice issuance. The Company is exposed to credit losses primarily on accounts receivable and contract assets related to sales to customers. If applicable, an allowance for credit losses is established to provide for the expected lifetime credit losses by evaluating factors such as customer creditworthiness, historical payment and loss experiences, current economic conditions (including geographic and political risk), and the age and status of outstanding receivables. Based on these factors, management has determined the allowance for credit losses of approximately $100,000. Expected credit losses are written off in the period in which the financial assets are no longer collectible.

 

The Company grants credit to its customers, generally, without collateral, under normal payment. Generally, invoicing occurs after the services are performed or control of the product has transferred to the customer. Accounts receivable represent an unconditional right to consideration arising from the Company’s performance under contracts with customers.

 

(f) Property and Equipment, net

 

Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives (three to ten years) of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Expenses for maintenance and repairs are charged to operations as incurred. Property and equipment is also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, then an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset.

 Schedule of Property and Equipment Estimated Depreciable Life

Description		Estimated depreciable life
Equipment		5-7 years
Computer equipment & software		3 years
Office furniture & fixtures		3-7 years
Leasehold improvements		Shorter of the estimated useful life or lease term
Leased Power Buoy assets		10 years
Leased WAM-V assets		10 years

 

(g) Foreign Exchange Gains and Losses

 

Transactions denominated in a foreign currency may result in realized and unrealized foreign exchange gains or losses from exchange rate fluctuations, which are included in “Foreign exchange gain” in the accompanying Consolidated Statements of Operations.

 

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(h) Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to credit risk consist principally of trade accounts receivable and cash equivalents. The Company believes that its credit risk is limited because the Company’s current contracts are with entities with a reliable and predictable payment history. The Company invests its excess cash in a money market fund and does not believe that it is exposed to any significant risks related to its cash accounts, money market fund, or held-to maturity investments.

 

For the nine months ended January 31, 2025 and 2024, the Company had four and five customers, respectively, whose revenues accounted for at least 10% of the Company’s consolidated revenues. These revenues accounted for approximately 73% and 36% of the Company’s total revenues for the respective periods. For the three months ended January 31, 2025 and 2024, the Company had three and two customers, respectively, whose revenues accounted for at least 10% of the Company’s consolidated revenues. These revenues accounted for approximately 95% and 85% of the Company’s total revenues for the respective periods.

 

(i) Share-Based Compensation

 

Costs resulting from all share-based payment transactions are recognized in the consolidated financial statements at their fair values. The aggregate share-based compensation expense recorded in the Consolidated Statements of Operations for the nine months ended January 31, 2025 and 2024 was approximately $1.3 million and $0.8 million, respectively. For the three months ended January 31, 2025 and 2024, the aggregate share-based compensation expense was approximately $0.8 million and $0.1 million, respectively. The Company’s policy is to account for forfeitures of share-based compensation as they occur.

 

Additionally, upon vesting of Restricted Stock Units (“RSU”) that were granted to an employee, the employee is given the option to either pay the taxes themselves, or have enough shares of their RSU award withheld by the Company to cover the taxes incurred by the employee. In the event the employee elects to surrender shares to cover the tax implication, the Company maintains those shares in the Company’s treasury stock account. Shares held in the Company’s treasury stock account are not available for future RSU grants.

 

(j) Revenue Recognition

 

The Company accounts for revenue in accordance with Accounting Standards Codification 606 (ASC 606) for contracts with customers and Accounting Standards Codification 842 (ASC 842) for leasing arrangements. In relation to ASC 606, which states that a performance obligation is the unit of account for revenue recognition, the Company assesses the goods or services promised in a contract with a customer and identifies as a performance obligation as either: a) a good or service (or a bundle of goods or services) that is distinct; or b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. A contract may contain a single performance obligation or multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contracted transaction price to each performance obligation based upon the relative standalone selling price, which represents the price the Company would sell a promised good or service separately to a customer. The Company determines the standalone selling price based upon the facts and circumstances of each obligated good or service. When no observable standalone selling price is available, the standalone selling price is generally estimated based upon the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate profit margin.

 

The nature of the Company’s contracts may give rise to several types of variable consideration, including unpriced change orders, liquidated damages and penalties. Variable consideration can also arise from modifications to the scope of services. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on the assessment of legal enforceability, performance, and any other information (historical, current, and forecasted) that is reasonably available to us. There was no variable consideration as of January 31, 2025 or 2024. The Company presents shipping and handling costs, that occur after control of the promised goods or services transfer to the customer, as fulfilment costs in costs of revenues and regular shipping and handling activities charged to operating expenses.

 

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The Company recognizes revenue when or as it satisfies a performance obligation by transferring a good or service to a customer, either (1) at a point in time or (2) over time. A good or service is transferred when or as the customer obtains control. The evaluation of whether control of each performance obligation is transferred at a point in time or over time is made at contract inception. Input measures such as costs incurred are utilized to assess progress against specific contractual performance obligations for the Company’s services. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. For the Company, the input method using costs or labor hours incurred best represents the measure of progress against the performance obligations incorporated within the contractual agreements. If estimated total costs on any contract project a loss, the Company charges the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss are known and the loss can be reasonably estimated. These loss projections are re-assessed for each subsequent reporting period until the project is complete. Such revisions could occur at any time and the effects may be material. During the nine-month period ended January 31, 2025, the Company recognized approximately $4.0 million in revenue related to performance obligations satisfied at a point in time and approximately $0.5 million in revenue related to performance obligations satisfied over time. During the three-month period ended January 31, 2025, the Company recognized approximately $0.4 million in revenue related to performance obligations satisfied at a point in time and approximately $0.4 million in revenue related to performance obligations satisfied over time.

 

The Company’s contracts are either cost-plus contracts, fixed-price contracts, time and material agreements, lease or service agreements. Under cost plus contracts, customers are billed for actual expenses incurred plus an agreed-upon fee.

 

The Company has two types of fixed-price contracts, firm fixed-price and cost-sharing. Under firm fixed-price contracts, the Company receives an agreed-upon amount for providing products and services specified in the contract, and a profit or loss is recognized depending on whether actual costs are more or less than the agreed-upon amount. Under cost-sharing contracts, the fixed amount agreed upon with the customer is only intended to fund a portion of the costs on a specific project. Under cost-sharing contracts, an amount corresponding to the revenue is recorded in cost of revenue, resulting in gross profit on these contracts of zero. The Company reports its disaggregation of revenue by contract type since this method best represents the Company’s business. For the nine-month periods ended January 31, 2025 and 2024, the majority of the Company’s contracts were classified as firm fixed-price and the remainder were cost-sharing.

 

The Company’s contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations. The Company’s accounts receivable balance is made up entirely of customer contract-related balances.

 

The Company’s revenue also includes revenue from certain contracts which do not fall within the scope of ASC 606, but under the scope of ASC 842, “Leases”. At inception of a contract for those classified under ASC 842, the Company classifies leases as either operating or financing in accordance with the authoritative accounting guidance contained within ASC 842. If the direct financing or sales-type classification criteria are met, then the lease is accounted for as a finance lease. All others are treated as operating leases. The Company recognizes revenue from operating lease arrangements generally on a straight-line basis over the lease term, or as agreed upon in-use days are utilized, which is presented in Revenues in the Consolidated Statement of Operations. The Company also enters into lease arrangements for its PowerBuoys® and Wave Adaptive Modular Vessels (“WAM-V®”) with certain customers. Revenue related to multiple-element arrangements is allocated to lease and non-lease elements based on their relative standalone selling prices or expected cost plus a margin approach. Lease elements generally include a PowerBuoy®, WAM-V®, and components, while non-lease elements, which the Company expects to become more prevalent, generally include engineering, monitoring and support services. In the lease arrangement, the customer may be provided with an option to extend the lease term or purchase the leased buoy or WAM-V® at some point during and/or at the end of the lease term.

 

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As of January 31, 2025, the Company’s total remaining performance obligations, also referred to as backlog, totalled $7.5 million as compared to $3.3 million as of January 31, 2024.

 

Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined that collectability of any portion of the contract value is not probable, an analysis of variable consideration will be performed using either the most likely amount or expected value method to determine the amount of revenue that must be constrained until the scenario causing the variability has been resolved.

 

The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or costs of revenue.

 

The table below represents the total revenue recognized under ASC 606 and ASC 842 for the three and nine months ended January 31, 2025 and 2024.

 Schedule of Revenue Recognized Under ASC 606 and ASC 842

		ASC 606				ASC 842				Total				ASC 606				ASC 842				Total
		Nine months ended January 31, 2025												Nine months ended January 31, 2024
		ASC 606				ASC 842				Total				ASC 606				ASC 842				Total
		(in thousands)												(in thousands)
Product Line:
WAM-V		$	3,996			$	206			$	4,202			$	1,625			$	896			$	2,521
Buoy			343				—				343				950				—				950
Services			—				—				—				482				—				482
Total		$	4,339			$	206			$	4,545			$	3,057			$	896			$	3,953
Region:
North and South America		$	3,046			$	—			$	3,046			$	3,025			$	750			$	3,775
EMEA			1,291				206				1,497				32				146				178
Asia and Australia			2				—				2				—				—				—
Total		$	4,339			$	206			$	4,545			$	3,057			$	896			$	3,953

 

		ASC 606				ASC 842				Total				ASC 606				ASC 842				Total
		Three months ended January 31, 2025												Three months ended January 31, 2024
		ASC 606				ASC 842				Total				ASC 606				ASC 842				Total
		(in thousands)												(in thousands)
Product Line:
WAM-V		$	580			$	74			$	654			$	1,085			$	387			$	1,472
Buoy			171				—				171				320				—				320
Services			—				—				—				—				—				—
Total		$	751			$	74			$	825			$	1,405			$	387			$	1,792
Region:
North and South America		$	326			$	—			$	326			$	1,391			$	338			$	1,729
EMEA			425				74				499				14				49				63
Asia and Australia			—				—				—				—				—				—
Total		$	751			$	74			$	825			$	1,405			$	387			$	1,792
Revenue		$	751			$	74			$	825			$	1,405			$	387			$	1,792

 

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(k) Net Loss per Common Share

 

Basic and diluted net loss per share for all periods presented is computed by dividing net loss by the weighted average number of shares of common stock and common stock equivalents outstanding during the period. Due to the Company’s net losses, potentially dilutive securities, consisting of options to purchase shares of common stock, warrants on common stock and unvested RSUs issued to employees and non-employee directors, were excluded from the diluted loss per share calculation due to their anti-dilutive effect.

 

In computing diluted net loss per share on the Consolidated Statements of Operations, warrants on common stock, options to purchase shares of common stock and unvested RSUs issued to employees and non-employee directors, totalling 20,835,027 and 6,094,714 as of January 31, 2025 and 2024, respectively, were excluded from each of the computations as the effect would have been anti-dilutive due to the net loss for the periods. Share purchase rights, which include a contingency, are not included in the calculation until the contingency is resolved.

 

(l) Intangibles, net

 

Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Intangible assets, including patents, are amortized over the estimated useful life of the asset on a basis that approximates the pattern of economic benefit. The patents, trade name and customer relationship intangibles are being amortized over 20, 12 and 10 years respectively, which is consistent with the estimated pattern of economic benefit of the assets. The trademark is not subject to amortization.

 

Intangible assets are reviewed for impairment if indicators of potential impairment exist. There were no indications of potential impairment of intangible assets for either the nine months ended January 31, 2025 or 2024.

 

(m) Goodwill

 

Goodwill is assessed for impairment using a qualitative or quantitative approach. The Company performs an annual impairment test of goodwill and further periodic tests to the extent indicators of impairment develop between annual impairment tests. There were no indications of potential impairment of goodwill identified for the nine months ended January 31, 2025 and 2024. Where the Company uses a qualitative analysis, it considers factors that include historical financial performance, macroeconomic and industry conditions, and the legal and regulatory environment. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is also performed. The quantitative assessment requires an analysis of several estimates including future cash flows or income consistent with management’s strategic business plans, annual revenue growth rates and the selection of assumptions underlying a discount rate (weighted average cost of capital) based on market data available at the time to determine the fair value of the Company. If the fair value is less than the carrying amounts, an impairment charge for the difference is recorded. The Company acquired goodwill as part of its purchase of MAR. Management performed its annual qualitative assessment in fiscal year 2024 and determined that it is more likely than not that no goodwill impairment existed as of April 30, 2024.

 

(n) Income Taxes

 

Income taxes are accounted for under (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) utilizing the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carry forwards are expected to be recovered, settled or utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. If such event occurs, a valuation allowance is recorded. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

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The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon examination. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses, to the extent incurred. Refer to Note 15 for additional disclosure.

 

In order to monetize their attributes, the Company has historically sold the Net Operating Losses (NOL’s) and R&D credit generated in New Jersey. The Company has elected to recognize the gain on the sale as a component of tax expense at the time of the sale. Prior to the time of sale, the Company has elected to not factor the expected sales when assessing the realizability of the related deferred tax assets.

 

(o) Accumulated Other Comprehensive Loss

 

The functional currency for the Company’s foreign operations is the applicable local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for balance sheet accounts using the exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. The unrealized gains or losses resulting from such translation are included in Accumulated Other Comprehensive Loss within Shareholders’ Equity. For the nine months ended January 31, 2025 and 2024, there were no amounts recorded to other comprehensive loss due to limited foreign operations.

 

(p) Warranty

 

The Company does not include a right of return on its products other than rights related to standard warranty provisions that permit repair or replacement of defective goods. Warranty expense incurred to date has not been material.

 

(q) Product Development

 

Costs related to product development activities by the Company are expensed as incurred. The Company had approximately $2.6 million and $5.5 million in product development expense for the nine months ended January 31, 2025 and 2024, respectively. The Company had approximately $1.3 million and $1.5 million in product development expense for the three months ended January 31, 2025 and 2024, respectively.

 

(r) Recently Issued Accounting Standards

 

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, which improves the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, although early adoption is permitted. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating what the potential impact of adopting this ASU 2023-09 could have on our consolidated financial statements and disclosures.

 

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU improves financial reporting by requiring disclosure of incremental segment information. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company expects to provide incremental qualitative segment-related disclosures beginning with the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025.

 

In November 2024, the FASB issued ASU No. 2024-3, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This ASU improves the disclosures about a public business entity’s expenses and addresses requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The new guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating what the potential impact of adopting this ASU 2024-03 could have on our consolidated financial statements and disclosures.

 

(3) Accounts Receivable, Contract Assets and Contract Liabilities

 

The following provides further details on the balance sheet accounts of accounts receivable, contract assets and contract liabilities from contracts with customers:

 Schedule of Accounts Receivable, Contract Assets and Contract Liabilities

		January 31, 2025				April 30, 2024				April 30, 2023
		(in thousands)
Accounts receivable		$	1,626			$	796			$	745
Contract assets		$	478			$	18			$	152
Contract liabilities		$	—			$	302			$	1,378

 

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Contract Assets

 

Contract assets include unbilled amounts typically resulting from arrangements whereby the right to payment is conditional on completing additional tasks or services for a performance obligation. The increase in contract assets from year end is primarily a result of consulting services projects for which revenue was recognized in the current period but has not yet been billed. No impairments to contract assets were incurred during the nine months ended January 31, 2025 and 2024.

 

Significant changes in the contract assets balances during the period were as follows:

 Schedule of Significant Changes in Contract Assets

		Nine months ended January 31, 2025				Nine months ended January 31, 2024
		(in thousands)
Transferred to receivables from contract assets recognized		$	(600	)		$	(1,469	)
Revenue recognized and not billed			1,060				1,598
Net change in contract assets		$	460			$	129

 

Contract Liabilities

 

Contract liabilities consist of amounts invoiced to customers in excess of revenue recognized. The decrease in contract liabilities from year end is primarily due to converting previous payments collected to recognized revenue in the current year.

 

Significant changes in the contract liabilities balances during the period are as follows:

 Schedule of Significant Changes in Contract Liabilities

		Nine months ended January 31, 2025				Nine months ended January 31, 2024
		(in thousands)
Revenue recognized		$	(1,830	)		$	(1,312	)
Payments collected for which revenue has not been recognized			1,528				802
Net change in contract liabilities		$	(302	)		$	(510	)

 

(4) Inventory

 

The Company holds inventory related to the production of its WAM-V® and PowerBuoy® products.

 Schedule of Inventory

		January 31, 2025				April 30, 2024
		(in thousands)
Raw Materials		$	3,254			$	4,298
Work in Process			695				397
Finished Products			—				136
Inventory, net		$	3,949			$	4,831

 

The Company’s raw materials balance represents the majority of the inventory as the Company orders parts in quantity to fill orders. Work in process and finished products typically represent smaller portions of inventory as the Company does not historically hold finished products with the exception of assets transitioning to the lease fleet. The Company typically ships finished products as they are completed.

 

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(5) Other Current Assets

 

Other current assets consisted of the following at January 31, 2025 and April 30, 2024:

 Schedule of Other Current Assets

		January 31, 2025				April 30, 2024
		(in thousands)
Prepaid insurance		$	195			$	202
Prepaid software & licenses			236				224
Prepaid sales & marketing			28				124
Prepaid project costs			35				578
Prepaid inventory materials			47				414
Prepaid expenses- other			211				205
Total other current assets		$	752			$	1,747

 

(6) Property and Equipment, net

 

The components of property and equipment, net as of January 31, 2025 and April 30, 2024 consisted of the following:

 Schedule of Components of Property and Equipment, Net

		January 31, 2025				April 30, 2024
		(in thousands)
Equipment		$	1,569			$	1,530
Computer equipment & software			790				790
Office furniture & equipment			425				422
Leasehold improvements			683				683
Leased WAM-V’s			1,912				1,547
Leased Buoys			794				444
Property and equipment, gross			6,173				5,416
Less: accumulated depreciation			(2,584	)			(1,973	)
Property and equipment, net		$	3,589			$	3,443

 

Leased WAM-V’s and buoys represent fixed assets that are associated with underlying operating leases with customers or for customer demonstration as discussed in the revenue recognition section related to ASC 842.

 

Depreciation expense was approximately $610,000 and $286,000 for the nine-month periods ended January 31, 2025 and 2024, respectively. Depreciation expense was approximately $155,000 and $114,000 for the three-month periods ended January 31, 2025 and 2024, respectively.

 

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(7) Intangible Assets

 

The components of intangible assets, net as of January 31, 2025 and April 30, 2024 consisted of the following:

 Schedule of Components of Intangible Assets

		January 31, 2025				April 30, 2024
		(in thousands)
Patents		$	2,729			$	2,729
Trademarks			2,769				2,769
Intangible assets, gross			5,498				5,498
Accumulated amortization			(1,975	)			(1,876	)
Intangible assets, net		$	3,523			$	3,622

 

Amortization expense was approximately $99,000 and $114,000 for the nine-month periods ended January 31, 2025 and 2024, respectively. Amortization expense was approximately $33,000 and $34,000 for the three-month periods ended January 31, 2025 and 2024, respectively.

 

(8) Goodwill

 

Goodwill in the amount of $8.5 million was recognized in November 2021 related to the acquisition of MAR. There have been no additions to, or any impairment of, goodwill during the nine-month periods ended January 31, 2025 and 2024.

 

(9) Leases

 

Lessor Information

 

As of January 31, 2025 and April 30, 2024, the Company had three WAM-V’s leased to customers which have been classified as operating leases per accounting guidance contained within ASC Topic 842, “Leases”, respectively. The remaining term on these operating leases is less than 2 years.

 

Lessee Information

 

Right-of-use assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, the Company uses the incremental borrowing rate based on the information available at the effective date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The renewal options have not been included in the lease term as they are not reasonably certain of exercise. The Company’s operating leases consist of leases for office facilities and warehouse space. Lease expense for minimum lease payments is recognized on a straight- line basis over the lease term and consists of interest on the lease liability and the amortization of the right of use asset.

 

The Company has a lease for its facility located in Monroe Township, New Jersey that is used as warehouse/production space and the Company’s principal offices and corporate headquarters. In February 2024, the Company extended the lease for its main headquarters in Monroe, NJ to April 30, 2026. The lease is classified as an operating lease and is included in right-of-use assets, net, right-of-use liabilities – current portion, and right-of-use liabilities- less current portion on the Company’s Consolidated Balance Sheets.

 

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The Company also has a lease for office space located in Richmond, California. This lease commenced in April of 2023 and will expire in June of 2028. The lease is classified as an operating lease and is included in right-of-use assets, right-of-use liabilities- current and right-of-use liabilities- long-term on the Company’s Consolidated Balance Sheets.

 

Variable lease expenses, if any, are recorded as incurred. The operating lease cash flow payments for the nine months ended January 31, 2025 and 2024 were $679,000 and $564,000, respectively. The operating lease cash flow payments for the three months ended January 31, 2025 and 2024 were $314,000 and $193,000, respectively.

 

The components of lease expense which are included in our operating expenses in the Consolidated Statement of Operations for the three and nine months ended January 31, 2025 and 2024 were as follows:

 

Schedule of Operating Lease Costs

 

		2025				2024				2025				2024
		Three months ended January 31,								Nine months ended January 31,
		2025				2024				2025				2024
		(in thousands)								(in thousands)
Operating lease cost		$	260			$	162			$	782			$	478
Short-term lease cost			8				20				24				60
Total lease cost		$	268			$	182			$	806			$	538

 

Information related to the Company’s right-of use assets and lease liabilities as of January 31, 2025 was as follows:

 Schedule of Right-of use Assets and Lease Liabilities

		January 31, 2025
		(in thousands)
Operating lease:
Operating right-of-use assets, net		$	1,772
Right-of-use liabilities- current		$	1,115
Right-of-use liabilities- long term			950
Total lease liabilities		$	2,065
Weighted average remaining lease term- operating leases			2.26 years
Weighted average discount rate- operating leases			8.4	%

 

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Total remaining lease payments under the Company’s operating leases are as follows:

 Schedule of Future Minimum Lease Payments Under Operating Lease

		January 31, 2025
		(in thousands)
Remainder of fiscal year 2025		$	308
2026			1,847
2027			329
2028			333
2029			28
thereafter			—
Total future minimum lease payments		$	2,845
Less imputed interest			(780	)
Total		$	2,065

 

(10) Accrued Expenses

 

Accrued expenses consisted of the following at January 31, 2025 and April 30, 2024:

 Schedule of Accrued Expenses

		January 31, 2025				April 30, 2024
		(in thousands)
Employee incentive payments		$	1,022			$	1,271
Accrued salary and benefits			995				369
Professional fees			10				—
Other			213				147
Accrued expenses total		$	2,240			$	1,787

 

(11) Warrants

 

Equity Classified Warrants

 

The underwritten public offering from April 2019 included the issuance of common stock warrants to purchase up to 4,927,680 shares of common stock that had an exercise price of $3.85 per share and expired five years from the issuance date. As of April 30, 2024, common warrants to purchase 732,500 shares of the common stock had been exercised. The remaining warrants expired prior to April 30, 2024.

 

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(12) Share-Based Compensation

 

In 2015, upon approval by the Company’s shareholders, the Company’s 2015 Omnibus Incentive Plan (the “2015 Plan”) became effective. A total of 1,332,036 shares were authorized for issuance under the 2015 Omnibus Incentive Plan, including shares available for awards under the 2006 Stock Incentive Plan remaining at the time that plan terminated, or that were subject to awards under the 2006 Stock Incentive Plan that thereafter terminated by reason of expiration, forfeiture, cancellation or otherwise. If any award under the 2006 Stock Incentive Plan or 2015 Plan expires, is cancelled, terminates unexercised or is forfeited, those shares become again available for grant under the 2015 Plan. Most recently in January 2025, the shareholders approved an amendment and restatement of the 2015 Plan to, among other things, provide an aggregate increase to the 2015 Plan of 20,000,000 shares resulting in total shares authorized for issuance of 27,282,036 as of January 31, 2025. The 2015 Plan will now terminate in January 2035, but is subject to earlier termination as provided in the 2015 Plan.

 

On January 18, 2018, the Company’s Board of Directors adopted the Company’s Employment Inducement Incentive Award Plan (the “2018 Inducement Plan”) pursuant to which the Company reserved 25,000 shares of common stock for issuance under the Inducement Plan in accordance with Rule 711(a) of the NYSE American Company Guide. On February 9, 2022, the 2018 Inducement Plan was amended to increase the authorized shares by 250,000 to 275,000.

 

Stock Options

 

The Company estimates the fair value of each stock option award granted with service-based vesting requirements, using the Black-Scholes option pricing model, assuming no dividends, and using weighted average valuation assumptions. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant commensurate with the expected life of the award. The expected life (estimated period of time outstanding) of the stock options granted was estimated using the “simplified” method as permitted by the SEC’s Staff Accounting Bulletin No. 110, Share-Based Payment. Expected volatility is based on the Company’s historical volatility over the expected life of the stock option granted. The Company did not grant any stock options during the nine months ended January 31, 2025 and 2024, respectively.

 

A summary of stock options under the stock incentive plans is detailed in the following table.

 Schedule of Stock Option Activity

		Shares Underlying Options				Weighted Average Exercise Price				Weighted Average Remaining Contractual Term (In Years)
Outstanding as of April 30, 2024			734,543			$	2.12				7.6
Granted			—			$	—
Exercised			—			$	—
Cancelled/forfeited			(251,201	)		$	1.20
Outstanding as of January 31, 2025			483,342			$	2.59				6.6
Exercisable as of January 31, 2025			425,440			$	2.85				6.4

 

As of January 31, 2025, the total intrinsic value of outstanding and exercisable options was approximately zero. As of January 31, 2025, approximately 58,000 options were unvested, which had an intrinsic value of zero and a weighted average remaining contractual term of 8.0 years. There was approximately $38,000 and $50,000 of total recognized compensation cost related to stock options during each of the nine months ended January 31, 2025 and 2024, respectively. There was approximately $12,000 and ($49,000) of total recognized compensation cost related to stock options during each of the three months ended January 31, 2025 and 2024, respectively. As of January 31, 2025, there was approximately $35,000 of total unrecognized compensation cost related to non-vested stock options granted under the plans. This cost is expected to be recognized over a weighted-average period of 1.0 year.

 

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Performance Stock Units

 

As of January 31, 2025, there were no performance stock units outstanding. As of April 30, 2023 there were 66,667 units outstanding which were all cancelled during the quarter ended July 31, 2023. There was approximately zero and $43,000 of total recognized compensation cost related to performance stock units during the nine months ended January 31, 2025 and 2024, respectively.

 

Restricted Stock Units

 

Compensation expense for RSUs is generally recorded based on the market value on the date of grant and recognized rateably over the associated service and performance period. During the nine months ended January 31, 2025 and 2024, the Company granted 21,903,000 and 183,000 shares, respectively, that were subject to both service-based and market-based vesting requirements.

 

A summary of unvested RSU’s under the Stock Incentive Plans is as follows:

 Schedule of Non-vested Restricted Stock Activity

		Number of Shares				Weighted Average Price per Share
Unvested at April 30, 2024			5,124,529			$	0.38
Granted/Adjusted			21,079,453			$	0.99
Vested and issued			(2,964,280	)		$
Cancelled/forfeited			(778,069	)		$	0.30
Unvested at January 31, 2025			22,461,633			$	0.90

 

There was approximately $1,293,000 and $710,000 of total recognized compensation cost related to RSUs for the nine months ended January 31, 2025 and 2024, respectively. There was approximately $768,000 and $179,000 of total recognized compensation cost related to RSUs for the three months ended January 31, 2025 and 2024, respectively. As of January 31, 2025, there was approximately $17,480,000 of unrecognized compensation cost remaining related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of 1.7 years.

 

(13) Fair Value Measurements

 

ASC Topic 820, “Fair Value Measurements” states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities that are measured at fair value are reported using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable input and minimizes the use of unobservable inputs. The following is a description of the three hierarchy levels.

 

Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2	Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly.
Level 3	Inputs that are unobservable for the asset or liability.

 

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Disclosure of Fair Values

 

The Company’s financial instruments that are not re-measured at fair value include cash, cash equivalents, restricted cash, accounts receivable, other assets, contract assets and liabilities, deposits, accounts payable, and accrued expenses. The carrying value is equal to their fair value due to the short-term nature of these accounts.

 

During the nine months ended January 2025, the Company paid $150,000 in cash and issued 2,864,808 in shares worth $0.5 million to partially satisfy the final earnout period related to its acquisition of MAR in November 2021.

 

Transfers into or out of any hierarchy level are recognized at the end of the reporting period in which the transfers occurred. There were no transfers between any hierarchy levels during either of the three and nine months ended January 31, 2025 and 2024, respectively.

 

(14) Equity

 

On March 21, 2024, the Company entered into an At-the-Market Offering Agreement with an aggregate offering price of up to $7.0 million (the “2023 ATM Facility”). On August 30, 2024 the aggregate offering price under the 2023 ATM Facility was increased to approximately $16.0 million. It was then reduced to approximately $2.9 million in September 2024 and increased again to approximately $60.0 million in December 2024. As of January 31, 2025, the Company had received proceeds of approximately $16.9 million under this facility and an additional $0.9 million between January 31, 2025 and March 16, 2025.

 

First Registered Direct Offering

 

On September 13, 2024, the Company entered into a common stock purchase agreement (the “First RDO Purchase Agreement”) with an institutional accredited investor for the sale (the “First Offering”) by the Company of shares (the “First RDO Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), for aggregate gross proceeds of $1.5 million before deducting offering expenses payable by the Company. The First RDO Shares were issued upon execution of a funding notice by the Company to the investor. The First RDO Shares were issued at a price per share equal to 80% of the lowest traded price of the Common Stock ten days prior to the closing date for the purchase of the shares. In addition, the Company has the right, but not the obligation, to sell to this investor up to an additional $3.5 million of shares of Common Stock on the same pricing terms.

 

The First RDO Purchase Agreement contained customary representations, warranties and agreements by the Company and customary conditions for closing. Pursuant to the First RDO Purchase Agreement, the Company also agreed to indemnify the purchaser against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained therein. The First RDO Purchase Agreement included a waiver to the Tax Benefits Preservation Plan as well as a covenant on the investor to vote their shares of common stock in favor of all Company director nominees and other proxy proposals, but only for so long as the investor owns more than 5% of the outstanding stock.

 

Second Registered Direct Offering

 

On September 13, 2024, the Company also entered into a common stock purchase agreement (the “Second RDO Purchase Agreement”) with a separate institutional accredited investor for the sale (the “Second Offering”) by the Company of shares (the “Second RDO Shares”) of the Common Stock, for aggregate gross proceeds of $1.5 million, before deducting offering expenses payable by the Company. The Second RDO Shares were issued upon issuance of a funding notice by the Company to the investor. The Second RDO Shares were issued at a price per share equal to 80% of the lowest traded price of the Common Stock five days prior to the closing date for the purchase of the shares. In addition, the Company has the right, but not the obligation, to sell to this investor up to an additional $2.5 million of shares of Common Stock on the same pricing terms.

 

The Second RDO Purchase Agreement contains customary representations, warranties and agreements by the Company and customary conditions to closing. Pursuant to the Second RDO Purchase Agreement, the Company also agreed to indemnify the purchaser against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained therein. The Second RDO Purchase Agreement included a waiver to the Tax Benefits Preservation Plan as well as a covenant on the investor to vote their shares of common stock in favor of all Company director nominees and other proxy proposals, but only for so long as the investor owns more than 5% of the outstanding stock.

 

The Company used the net proceeds from the First RDO Purchase Agreement and the Second RDO Purchase Agreement to build additional products and solutions to meet market demand, further advance the development of new products and solutions, engage in corporate development and merger and acquisition activities, for working capital needs, capital expenditures, repayment or refinancing of indebtedness, repurchases and redemptions of securities, and for other general corporate purposes.

 

Convertible Debt Offering

 

On December 20, 2024, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with an institutional investor (the “Investor”) under which the Company agreed to issue and sell, in one or more registered public offerings by the Company directly to the Investor (the “Offering”), senior convertible notes for up to an aggregate principal amount of $54.0 million (the “Notes”) that will be convertible into shares of the Company’s common stock. On December 20, 2024 (the “Initial Closing Date”), the Company issued and sold to the Investor a Note in the original principal amount of $4.0 million (the “Initial Note”). Upon our filing of one or more additional prospectus supplements, and our satisfaction of certain other conditions, the Securities Purchase Agreement contemplates additional closings of up to $50 million in aggregate principal amount of additional Notes, upon mutual agreement of the Company and the Investor. The Securities Purchase Agreement contains customary representations, warranties and covenants. It also grants the Investor the right to participate in certain future equity and equity-linked transactions of the Company from the Initial Closing Date through the 3-year anniversary thereof, as well as certain anti-dilution rights applicable to the Notes. No Note may be converted to the extent that such conversion would cause the then holder of such Note to become the beneficial owner of more than 4.99%, or, at the option of such holder, 9.99% of the then outstanding common stock, after giving effect to such conversion (the “Beneficial Ownership Cap”).

 

The Initial Note was issued with an original issue discount of 9.5%, resulting in $3.6 million of proceeds to the Company, before fees and expenses of approximately $0.4 million. Each Note bore interest at a rate of 12.5% per annum, which compounded on the first calendar day of each calendar quarter and increased the principal amount of the Notes on a dollar-for-dollar basis. Upon the occurrence and during the continuance of an event of default, the interest rate on the Notes will increase to 17.5% per annum. Unless earlier converted, the Notes will mature on the eighteen-month anniversary of their respective issuance dates. All amounts due under the Notes were convertible at any time, in whole or in part, and subject to the Beneficial Ownership Cap, at the option of the holders into shares of common stock at a conversion price equal to the lower of the closing price of the common stock on the trading day prior to each closing plus a 15% premium (the “Reference Price”) or 90% of the volume weighted average price of the common stock during the seven trading days ending and including the trading day immediately preceding the delivery or deemed delivery of the applicable conversion notice. Upon the satisfaction of certain conditions, we could have prepaid outstanding Notes upon not less than 20 business days nor more than 30 business days’ written notice by paying an amount equal to the face value of the Notes at a premium of 15%.

 

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The Initial Note contained certain terms and conditions which management evaluated as potential embedded derivatives. Management determined that the optional conversion feature is not clearly and closely related to the debt host instrument, and therefore required bifurcation and separate accounting. We determined the fair value of the embedded derivative as approximately $0.4 million and recorded it as a discount to the debt and a derivative liability on the date of issue.

 

The Investor converted all of the outstanding principal and accrued interest under the Initial Note to common stock during December 2024, resulting in the issuance of 15,442,429 common shares at an average conversion price of $0.26 per share. Interest expense during the time the Initial Note was outstanding was immaterial. The Company recognized a loss on extinguishment resulting from the conversion, which is presented as a separate line item in the Company’s Consolidated Statements of Operations.

 

(15) Commitments and Contingencies

 

Spain Income Tax Audit

 

The Company underwent an income tax audit in Spain for the period from 2011 to 2014, when its Spanish branch was closed. On July 30, 2018, the Spanish tax inspector concluded that although there was no tax owed in light of losses reported, the Company’s Spanish branch owed penalties for failure to properly account for the income associated with the funding grant. During the year ended April 30, 2022, the Company received notice from the Spanish Central Economic and Administrative Tribunal (“Spanish Tax Administration”) that it agreed with the inspector and ruled that the Company owes the full amount of the penalty in the amount of €279,870 or approximately $331,000. On January 25, 2021, the Company paid the Spanish Tax Administration €279,870. Notwithstanding that payment, on April 30, 2022, the Company filed its appeal of the decision of the Central Court to the Spanish National Court. On February 3, 2025, the Spanish National Court denied the Company’s appeal, and the Company does not believe it has further available grounds to appeal this decision to the Spanish Supreme Court. Accordingly, this matter is closed.

 

Litigation with Paragon Technologies, Inc.

 

On October 10, 2023, Paragon Technologies, Inc. filed a complaint in the Court of Chancery of the State of Delaware against the Company, and the members of its Board of Directors, claiming certain breaches of their fiduciary duties. The complaint sought only injunctive relief against the Company, and not monetary damages, and therefore the financial exposure derived therein was limited to applicable legal fees and costs at that stage, which was material to FY’ 24. On November 2, 2023, Paragon sought leave to amend its complaint to add additional claims. The Court granted this motion for leave to amend, provided that the Court would not delay the hearing on the matters raised in the initial complaint, which was set for November 28, 2023. This hearing on the initial complaint was held and on November 30, 2023, the Court ruled in favor of the Company and denied Paragon’s motion for injunctive relief. The status of the in the amended complaint is still pending. On February 28, 2024, the Company successfully finalized its 2023 annual meeting of stockholders in spite of Paragon’s repeated attempts to contest the meeting. In an August 12, 2024 Press Release and its Form 10-Q report for the second quarter of 2024, Paragon announced that it was no longer pursuing litigation against the Company. Pursuant to a Court order dated January 9, 2025, Paragon was required “to file a status report within 30 days. Otherwise, the case will be dismissed under Rule 41(e).” Because Paragon did not file a status report by February 10, 2025, the Company anticipates that the Court will dismiss the case, with prejudice, due to Paragon’s failure to prosecute.

 

In February 2025, the Company received a shareholder demand under Section 220 of the General Corporation Law of the State of Delaware for inspection of certain books and records relating to prior equity grants made to officers and directors under the 2015 Plan in January 2023, February 2024 and January 2025. The Company is reviewing and considering the demand and engaging with counsel for the shareholder. The Company has not recorded any material liability for these matters as of January 31, 2025 as it cannot estimate the ultimate outcome at this time.

 

General Legal Matters

 

From time to time, the Company is involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable, and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary to make the consolidated financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its consolidated financial statements.

 

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(16) Income Taxes

 

Uncertain Tax Positions

 

The Company accounts for income taxes in accordance with ASC 740. The guidance requires the Company to recognize in its consolidated financial statements the impact of a tax position if that position is more likely than not to be sustained upon examination, based on the technical merits of the position. The Company has no current or deferred tax due to current and projected losses for the year. The Company previously appealed the results of the income tax audit in Spain for the period from 2011 to 2014, when the Company’s Spanish branch was closed (see Note 14). On February 3, 2025, the Spanish National Court denied the Company’s appeal, and the Company does not believe it has further available grounds to appeal this decision to the Spanish Supreme Court. Accordingly, this matter is closed. At January 31, 2025, the Company had no uncertain tax positions. The Company does not expect any material increase or decrease in its income tax expense or benefit in the next twelve months, related to examinations or uncertain tax positions. Net operating loss and credit carry forwards since inception remain open to examination by taxing authorities and will continue to remain open for a period of time after utilization.

 

Tax Preservation Plan

 

In June 2023, in order to protect the Company’s valuable tax assets related to its net operating losses from being limited or lost under Section 382 of the Internal Revenue Code, the Company adopted a Tax Benefits Preservation Plan (the “Plan”). Pursuant to the Plan, the Board declared a dividend of one preferred share purchase right (each, a “Right”) for each outstanding share of common stock of the Company. The dividend was distributed to stockholders of record as of the close of business on July 11, 2023. The Plan substantially diminishes the risk that the Company’s ability to utilize its net operating loss carryovers to reduce potential future federal income tax obligations may become substantially limited. The Plan is intended to act as a deterrent to any person or group acquiring beneficial ownership of 4.99% or more of the outstanding common stock without approval by potentially subjecting any such person or group to significant dilution. The Plan was approved by shareholders by a non-binding advisory vote at the Company’s Annual Meeting held on February 28, 2024.

 

The Company determined the grant date fair value of the Rights using an option-pricing model. The amount was immaterial to the consolidated financial statements and deemed to be de minimis, and accordingly was not recorded to the financial statements.

 

Sale of New Jersey NOL’s and R&D Tax Credits

 

In order to monetize their attributes, the Company has historically sold the Net Operating Losses (NOL’s) and R&D credit generated in New Jersey. In September 2024 the Company was notified that it received a preliminary award of approximately $1.1 million for New Jersey State for the sale of the fiscal year 2024 NOL. The final allocation is expected to be determined during the fourth quarter of OPT’s 2025 fiscal year when the sale of the NOL’s and credit are finalized. The Company has elected to recognize the gain on the sale as a component of tax expense at the time of the sale. Historically the Company has received over 90% of the amount of the preliminary award upon final sale.

 

(17) Operating Segments and Geographic Information

 

The Company’s business consists of one reportable segment as the revenues associated with its different business lines are not material enough to justify segment reporting or to make it meaningful to investors, and the Company’s chief operating decision maker does not view the Company’s operations on a segment basis. The Company operates worldwide, with its U.S. operations in New Jersey and California and one operating subsidiary in the UK. Revenues and expenses are generally attributed to the operating unit that bills the customers. During each of the three and nine months ended January 31, 2025 and 2024, the Company’s primary business operations were in North America, South America, EMEA and Asia/Australia.

 

 

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Special Note Regarding Forward-Looking Statements

 

We have made statements in this Quarterly Report on Form 10-Q that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey our current expectations or forecasts of future events. Forward-looking statements include statements regarding our future financial position, business strategy, pending, threatened, and current litigation, liquidity, budgets, projected revenue and costs, plans and objectives of management for future operations. The words “may,” “continue,” “estimate,” “intend,” “plan,” “will,” “believe,” “project,” “expect,” “anticipate”, and similar expressions may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking.

 

The forward-looking statements contained in or incorporated by reference are largely based on our expectations, which reflect estimates and assumptions made by management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve several risks and uncertainties that are beyond our control, including:

 

	●	our ability to improve, market and commercialize our products, and achieve and sustain profitability;
	●	our continued improvement of our proprietary technologies, and expected continued use of cash from operating activities unless or until we achieve positive cash flow from the commercialization of our products and services;
	●	our ability to obtain additional funding, as and if needed, which will be subject to several factors, including market conditions, our financial condition and our operating performance;
	●	the substantial doubt about our ability to continue as a going concern;
	●	our history of operating losses, which we expect to continue for at least the short term and possibly longer;
	●	our ability to manage challenges and expenses associated with communications and disputes with activist shareholders, including litigation;
	●	our ability to manage and mitigate risks associated with our internal cyber security protocols and protection of the data we collect and distribute;
	●	our ability to protect our intellectual property portfolio;
	●	the impact of inflation related to the U.S. dollar on our business, operations, customers, suppliers, manufacturers, and personnel;
	●	our ability to meet product enhancement, manufacturing and customer delivery deadlines and the potential impact due to disruptions to our supply chain or our ability to identify vendors that can assist with the prefabrication elements of our products, as a result of, among other things, staff shortages, order delays, and increased pricing from vendors and manufacturers;
	●	our forecasts and estimates regarding future expenses, revenue, gross margin, cash flow and capital requirements;
	●	our ability to identify and penetrate markets for our products, services, and solutions;
	●	our ability to effectively respond to competition in our targeted markets;
	●	our ability to establish relationships with our existing and future strategic partners which may not be successful;
	●	our ability to maintain the listing of our common stock on the NYSE American;
	●	the reliability and continuous improvement of our technology, products and solutions;
	●	our ability to increase or more efficiently utilize the synergies available from our product lines:
	●	changes in current legislation, regulations and economic conditions regarding Federal governmental tariffs, the implementation on the new US Department of Governmental Efficiency (“DOGE”) and related DOGE federal governmental budget cuts and the potential that this affects the demand for, or restrict the use of, our products and services;
	●	our ability to expand markets across geographic boundaries;
	●	our ability to be successful with Federal government work which is complex due to various statutes and regulations applicable to doing business with the Federal government;
	●	o; our ability to be successful doing business internationally which requires strict compliance with applicable statutes and regulations;
	●	the current geopolitical world uncertainty, including tariffs, Russia’s invasion of Ukraine, the Israel/Palestine conflict and previous attacks on merchant ships in the Red Sea;
	●	the potential impact that new foreign country tariffs may have on our ability (i) to source and procure necessary raw materials for the manufacture and provision of our products and services; and (ii) to deliver our products to such foreign countries;
	●	our ability to hire and retain key personnel, including senior management, to achieve our business objectives; and
	●	our ability to establish and maintain consistent commercial profit margins.

 

Any or all of our forward-looking statements in this report may turn out to be inaccurate. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. They may be affected by inaccurate assumptions we might make or unknown risks and uncertainties, including the risks, uncertainties and assumptions described in Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended April 30, 2024, and in our subsequent reports under the Exchange Act. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this report may not occur as contemplated and actual results could differ materially from those anticipated or implied by the forward-looking statements.

 

Many of these factors are beyond our ability to control or predict. These factors are not intended to represent a complete list of the general or specific factors that may affect us. You should not unduly rely on these forward-looking statements, which speak only as of the date of this filing. Unless required by law, we undertake no obligation to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise.

 

The following discussion and analysis should be read in conjunction with the accompanying unaudited consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q. Some of the information contained in this management’s discussion and analysis is set forth elsewhere in this Form 10-Q, including information with respect to our plans and strategy for our business, pending and threatened litigation and our liquidity, includes forward-looking statements that involve risks and uncertainties. You should review the “Risk Factors” section of our Annual Report on Form 10-K for the year ended April 30, 2024 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. References to a fiscal year in this Form 10-Q refer to the year ended April 30 of that year (e.g., fiscal 2024 refers to the year ended April 30, 2024). References to “we,” “us,” “our”, and “OPT” refer to Ocean Power Technologies, Inc. and its subsidiaries, as applicable.

 

Overview

 

Our solutions focus on three major service areas: Data as a Service (“DaaS”), which includes data collected by our Wave Adaptive Modular Vessel (WAM-V®) autonomous vehicles or our PowerBuoy® (“PB”) product lines; Robotics as a Service (“RaaS”), which provides a lower cost subscription model for our customers to access use of our WAM-V’s®; and Power as a Service (“PaaS”), which includes our PowerBuoy® products.

 

Our mission is to provide intelligent maritime solutions and services that enable more secure and more productive utilization of our oceans and waterways, provide clean energy power services, and offer sophisticated surface and subsea maritime domain awareness solutions. The Company achieves this through our proprietary, state-of-the-art technologies that are at the core of our clean and renewable energy platforms, autonomous systems, solutions and services. The Company is involved in the entire life cycle of product development, from product design through assembly, testing, deployment, maintenance and upgrades, while working closely with partners across our supply chain. The Company also works closely with our third-party partners that provide us with, among other things, software, controls, sensors, integration services, and marine installation services. Our solutions are based on proprietary technologies that enable autonomous, zero or low carbon emitting, and cost-effective data collection, analysis, transportation and communication. Our solutions are primarily suited to ocean and other offshore environments, and support generation of actionable intelligence on a standalone basis or working with other data sources. We channel the information we collect, and other communications, through control equipment linked to edge computing and cloud hosting environments, including Merrows™, which provides AI capable seamless integration of Maritime Domain Awareness Systems across platforms. The data collected by OPT’s technologies underscores the Company’s unique position as a system of systems provider. What sets OPT apart is its ability to enhance these data collection capabilities by integrating the WAM-V and PB systems. This integration enables the use of artificial intelligence and machine learning not only to improve data accuracy and operational efficiency but also delivery of persistent actionable intelligence over greater distances.

 

We were incorporated under the laws of the State of New Jersey in April 1984 and began commercial operations in 1994. On April 23, 2007, we reincorporated in Delaware.

 

 

Our Solutions

 

Data as a Service

 

Our DaaS solution is at the forefront of our strategic goal to be a leader in offshore data collection, integration, analytics and real time communication for a variety of important applications. For example, our solutions can track surface vessel movement for maritime border enforcement and illegal fishing interdiction, provide security for offshore wind farms and oil and gas fields, and provide harbor or port security as well as logistics support. We have the ability to support aquaculture and gather information on ocean currents, water quality, wind and other weather metrics, provide photography, and map shorelines or subsurface bathymetry, objects and activity frequently required for obtaining development and operational permits with environmental studies. We also offer 24/7 monitoring solutions that can provide meaningful real time information, and long-term data collection and analytics for sophisticated applications across many industries and scientific applications. Additionally, the stability of our WAM-V® platform makes it an ideal solution to produce high quality sonar data in many sea conditions for subsea surveys. WAM-V’s® can also be outfitted with various equipment for the performance of marine infrastructure surveys, berth clearance surveys, dredging surveys, and mining pit surveys.

 

The Company received funding from the Naval Postgraduate School for the deployment of a PowerBuoy® in Monterey Bay. The PowerBuoy®, integrating our MDAS along with cutting-edge Satellite communication and AT&T 5G technology, will demonstrate its persistent surveillance and communications capacities in a maritime environment. This deployment marks a significant milestone in maritime technology, showcasing the potential of standalone at-sea infrastructure nodes to support diverse operational needs. We have further expanded our DaaS offering through field demonstration such as ANTX Coastal Trident, as well as the Naval Task Force 59 for the Digital Horizon field exercise and the International Maritime Exercise (IMX) in Bahrain. Additional DaaS contracts include Sulmara for survey services with our WAM-V® platform and Phase I funding through National Oceanic and Atmospheric Administration’s (NOAA) Small Business Innovation Research (SBIR) program.

 

The Company also received an award of three separate Indefinite Delivery Indefinite Quantity (IDIQ) Multiple-Award Contracts (MAC) from the NOAA. NOAA has selected OPT as one of several Multiple Award IDIQ contract holders to provide Uncrewed Maritime Systems (UMS) Services to NOAA’s Office of Marine and Aviation Operations (OMAO), Uncrewed Systems Operation Center (UxSOC). Under these contracts, OPT will bring its expertise to utilize cutting-edge UMS to support NOAA in conducting vital marine resource surveys and research while also playing a pivotal role in enhancing NOAA’s meteorological and oceanographic observations, further advancing our understanding of the natural world. Finally, OPT will collaborate with NOAA to explore and characterize the depths of our oceans, contributing to the discovery and preservation of invaluable marine ecosystems.

 

Additionally, the Company was awarded a contract to provide scientific hardware delivery, training, and integration services under a subcontract for a U.S. government agency. This project seeks to identify and integrate sensors and systems and share data suitable for the full spectrum of maritime operations. We will provide the required hardware, hardware deployment support, software, software deployment support, integration services, surveillance and telemetry data, and associated training in support of a legacy PB3 PowerBuoy® equipped with our Maritime Domain Awareness (MDA) solution. The project will be deployed in support of security efforts to detect illegal, unreported, and unregulated (“IUU”) fishing, dark vessels, and human/drug trafficking in operation 24/7/365. As further discussed under “Commercial Activities,” the Company was awarded a contract in support of foreign law enforcement partners. This collaboration aims to protect vital marine species and combat illegal, unreported, and IUU fishing activities in critical habitats using our state-of-the-art uncrewed technologies and demonstrates unprecedented, networked surveillance capabilities and evidence collection.

 

Maritime Domain Awareness Solution (“MDAS”)

 

The International Maritime Organization defines Maritime Domain Awareness as the effective understanding of any activity that could impact the security, safety, economy, or environment related to and within our oceans and seas. Since 2002, the U.S. has had an active strategy to secure the maritime domain, primarily through the U.S. Navy. Furthermore, the U.S. Coast Guard has elevated IUU fishing, one aspect of MDA security, as a leading global maritime threat.

 

We have designed our solution to provide detailed, localized maritime domain awareness that can be utilized for a wide range of applications across market segments. Our MDAS base hardware consists of a high-definition radar, a stabilized high-definition optical and thermal imaging camera, and a vessel Automatic Identification System (“AIS”) detection module. This hardware can be customized or supplemented by other solutions, depending on the requirements of our customers. These devices can be mounted on our products, such as our legacy PB3 and NextGen PB or WAM-V®, and then, utilizing integrated command and control software, data would be sent to us and to our customers via secure communications channels. Multiple sensors can be used on a single unit based on the comprehensiveness of the needs of our customers.

 

 

Our MDAS processes data onboard our platforms (i.e., edge computing) and transmits the results to our cloud-based analytics platform via secure Wi-Fi and cellular and satellite communications. We anticipate integrating our MDAS solution into our WAM-V’s® to add mobile assets for patrols or interdiction and utilizing satellite communication to expand the availability of our data service. Surveillance data can be integrated with third party marine monitoring software or with our own MDAS software solution to provide command and control features of a multi-platform surveillance network. As an example, one or more WAM-Vs® can be networked to our self-powered buoy, which acts as a central data and communication hub. These WAM-Vs® can significantly increase the range of our MDAS network solutions. The data can also be integrated with satellite, weather, bathymetric, and other third-party data feeds to form a detailed surface and subsea picture of a monitored area. All vessel video, radar, and track data can be securely stored in our cloud, or the customer’s cloud environment and is accessible for as long as required by the customer for further analysis and reference. We refer to the integrated Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance systems as Merrows.

 

The Company launched the first commercially ready MDAS on a test buoy off the coast of New Jersey in September 2021. The system includes our proprietary integration of sensors, hardware and software, supported by cloud infrastructure as well as having a web-based user interface that displays camera, radar, AIS and live chart data. During the first half of calendar 2024 we successfully demonstrated the system multiple times for potential customers, including a remote demonstrations using assets deployed off New Jersey for potential customers active in the Mediterranean, South America and Middle East. In addition, during the third quarter of fiscal 20025 the Company shipped an AI capable Merrows™ PowerBuoy^® to a customer in the middle east and a system,to the Navy Postgraduate School which include AT&T® 5G technology and integrated advanced subsea sensors into a PowerBuoy® equipped with OPT’s latest Merrows™ suite for AI capable seamless integration of Maritime Domain Awareness (MDA) across platforms.

 

Autonomous Vehicles (“WAM-V^®”)

 

Our Autonomous Vehicles business incorporates the patented WAM-V® technology, which enables roaming capabilities for unmanned maritime systems in waters around the world. The first WAM-V® was launched in 2007 as a new vehicle class to deliver reliable autonomous surface vehicles to customers that could provide robust, real-time data collection and reporting. Our Autonomous Vehicles business also provides RaaS, allowing customers to lease WAM-V® robotics and access information from our WAM-Vs® while we maintain ownership and maintenance and repair responsibilities. Today, WAM-Vs® operate in ten countries for commercial, military defense and scientific uses. Our WAM-Vs® exist in three primary sizes of 8, 16, and 22 feet. However, many of the design components are common across the sizes, allowing for integration of different payloads and adaptation of the payload platforms for larger equipment. All sizes can be adapted to suit electric or liquid fuel propulsion methods.

 

The WAM-V® product line highly complements the Company’s business strategy and can be used inshore, nearshore, and offshore. This business continues to grow and is further into core marine survey and maritime security markets in the Middle East, Europe, Asia, Oceania and the expanding Americas. We continue to find ways to integrate Autonomous Vehicles with the Company’s existing platforms and service offerings and expect to take advantage of new synergistic opportunities as they arise. In addition, in connection with our Merrows offering noted below, we are already integrating data streams relating to all aspects of, on, under, adjacent to, or bordering on a sea, ocean, or other navigable waterway onto the WAM-V® to expand our offering to provide a roaming MDA solution to our customers.

 

 

Recent Technological Advancements

 

In January 2025 we completed a major set of exercises in California and successfully demonstrated the autonomous capability of the WAM-V to provide offshore survey capabilities for multiple days without needing to return to base. During the exercises, the WAM-V 22 operated for several days while hosting a complete seabed survey payload providing real time hydrographic and survey data collection. This multi-day operational capability is designed to offer greater persistence at sea while hosting an array of offshore instrumentation for longer and more power intensive requirements. This milestone for OPT demonstrated how WAM-Vs can now be deployed for multiple days in over the horizon operations. This opens up entirely new operating approaches for our customers, leading to enhanced efficiencies and new markets for OPT.

 

In October 2024 we completed the second set of exercises of the previously announced follow-on contract as a subcontractor to EpiSci and successfully deployed several WAM-V autonomous surface vehicles during the Mission Autonomy Proving Grounds (MAPG) as part of Project Overmatch. Project Overmatch is a United States Navy initiative aimed at achieving a seamless and highly integrated warfighting capability by leveraging advanced data networks, artificial intelligence (AI), and machine learning. Under this contract, OPT continues to ruggedize and enhance the operational capability of its autonomous maritime technologies to support the U.S. military and its allies. The first set of exercises was concluded over the summer and the completion of these most recent exercises contributed to the revenue recognition noted above.

 

In September 2024, we announced that we completed more than four months of offshore testing of our Next Generation PowerBuoy^® (“PB”) in the Atlantic Ocean off New Jersey. The solar and wind power equipped Next Generation PB was equipped with OPT’s AI capable Merrows™ suite of solutions. The system maintained 100% data uptime and the state of charge of the batteries remained over 90% throughout the deployment. During the deployment, several intelligence, surveillance, and reconnaissance demonstrations for potential customers were completed.

 

In April 2024, the Company announced Merrows^TM, a projected significant step forward to enhance maritime domain awareness and underline the critical importance of ocean security’s role in national security. Merrows ^TM is OPT’s consolidated solution offering comprehensive ocean surveillance and involves the deployment of sophisticated Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance systems. These systems are integrated within OPT’s roaming technologies, such as the WAM-V, and geostationary technologies, like the PB, to offer an unparalleled level of surveillance and data analysis capability. This initiative, which builds on OPT’s recently completed R&D efforts, demonstrates OPT’s commitment to safeguarding the world’s oceans through advanced technology and innovation.

 

In May 2024, the Company announced it was approaching 15MWh of renewable energy production from its family of PBs. The recent launch of its Next Generation PB off the coast of New Jersey has materially accelerated average energy production by combining solar, wind, and wave energy production capabilities. The energy generation numbers are based on deployments in the Atlantic, Pacific, Mediterranean, and North Sea. OPT has demonstrated and delivered use cases as a proven solution for Anti-Submarine Warfare, Intelligence, Surveillance, and Reconnaissance, USV Charging, and Environmental Sensing. These numbers show that non-grid connected marine energy production is not just for the R&D community but is a commercially available solution.

 

Robotics as a Service (“RaaS”)

 

During fiscal 2023 the Company introduced the subscription model for our customers to access our WAM-V’s®. Under this model we lease our WAM-V’s to our customers over a fixed time period or provide a specified number of use days, typically with a guaranteed minimum. This model provides a lower cost entry point for our customers to access our products, provides a try before buying opportunity, and allows our customers increased access during periods of increased need. The Company expects to benefit from the growing RaaS trend, providing greater visibility into predicting revenue and planning supply for demand, while providing our customers with flexibility and a lower cost of entry.

 

Power as a Service (“PaaS”)

 

PaaS solutions deliver value to customers by utilizing our managed power platforms. We continue to commercialize our proprietary power platforms that generate electricity primarily by harnessing the renewable energy of ocean waves. In addition to offering our commercial legacy PB3, we have added solar power options to our next generation PowerBuoy® (the “NextGen PB”) and have the option of adding small wind turbines to supplement power generation. The NextGen PB includes versions with and without a wave energy converter (WEC), with the non-WEC version replacing our previous hybrid PB. Our focus for these solutions is on bringing autonomous clean power to our customers wherever it is required. Moreover, offshore data and communications networks require power to function, and our solution provides this power continuously without requiring ongoing battery replacement or older technologies such as shore station power cables. Many of the lessons learned from the deployments of both our legacy PB3 and demonstrator systems have been used to develop the next generation of PowerBuoy®. The NextGen PBs are designed to be modular for both WEC and non-WEC applications. The legacy PB3 will continue to be available and supported in addition to the NextGen PB, which was fully commercialized during fiscal 2024.

 

 

Next Generation PowerBuoy® (“NextGen PB”)

 

The NextGen PB is our future platform that integrates the lessons learned from the legacy PB3 and our demonstrator systems. It consists of two versions, one utilizing solar and wind power and one utilizing solar and wind power plus wave energy conversion capability, to provide reliable power in remote offshore locations, regardless of ocean wave conditions. Both versions utilize the same spar shape, thus increasing modularity and decreasing part count and costs. The WEC technology in the NextGen PB is based on our Mass on Spring Wave Energy Converter (MOSWEC) development which has the advantages of smaller size, lower cost, sealed to the environment design, and increased energy generation capability. The solar and wind PowerBuoy® is now commercially available and the prototype of the MOSWEC PowerBuoys^® has been tested off the coast of New Jersey and the solar and wind system was used during the MDAS demonstration for ANTX during fiscal 2023.

 

We believe this product addresses a broader spectrum of customer deployment needs, including low-wave and nearshore environments, with the potential for greater product integration within each customer project. The NextGen PB is intended to provide a stable energy platform for our MDAS solution, and for agile deployment of other intelligence gathering surface and subsea sensors, subsea power and surface communications applications, for electric remotely operated vehicles (“eROV”) and autonomous underwater vehicles used for mine counter measures, unexploded ordinance disposal, subsea acoustic monitoring, underwater inspections and short-term maintenance, and subsea equipment monitoring and control. The design has a high payload capacity for surveillance and communications equipment, including subsea acoustics, with the capability of being tethered to subsea payloads such as batteries, or with a conventional anchor mooring system. Energy is stored in onboard lithium-ion batteries which can power subsea and topside payloads. The control system uses sensors and an onboard computer to continuously monitor the subsystems. The NextGen PB is designed to be able to operate over a broad range of temperature and ocean wave conditions and is capable of being deployed in hot climates such as the Middle East, Sub-Saharan Africa, and North Africa. It has a 50kW-hour battery system which can be expanded up to 100 kW-hour energy.

 

Legacy PB3 PowerBuoy^®

 

The legacy PB3 has been discontinued. The proprietary technologies that convert the hydrokinetic energy of ocean waves into electricity and lessons learned from the legacy PB# have been incorporated into the NextGen PB as noted above. The legacy PB3 generates a nominal nameplate capacity rating of up to three kilowatts (“kW”) of peak power. Our Energy Storage System (“ESS”) has a capacity of up to a nominal 150 kW-hours to meet specific application requirements.

 

The legacy PB3 is designed to generate power for use independent of the power grid in offshore locations. As ocean waves pass the legacy PB3, the rising and falling of the waves are converted into mechanical energy, which in turn, drives the electric generator. The power electronics system then conditions the electrical output which is stored within the ESS.

 

The operation of the legacy PB3 is controlled by our customized, proprietary control system. The control system uses sensors and an onboard computer to continuously monitor the legacy PB3 subsystems. We believe that this ability to optimize and manage the electric power output of the legacy PB3 is a significant advantage of our technology.

 

 

Strategy and Marketing

 

Our strategy includes developing integrated solutions and services, including autonomous and cloud-based delivery systems for ocean intelligence, ocean data and predictive analytics to provide actionable intelligence including our product offering Merrows ^TM. We also have a number of resellers and strategic alliances, including partnerships recently entered into in the Middle East and U.S., to advance our product and services and gain further adoption from our target markets. Our marketing efforts are focused on offshore locations that require a cost-efficient solution for renewable, reliable, and persistent power, data collection, and communications, either by supplying electric power to payloads that are integrated directly with our products or located in its vicinity, such as on the surface, the seabed, or in the water column. Our recent projects have been primarily focused on military and government applications.

 

Our recent market analysis reveals evolving dynamics within the offshore MDA sector, notably influenced by the technological revolution that enhances MDA capabilities through advanced, low-cost unmanned systems. This shift, highlighted by the National Plan to achieve MDA by the Department of Homeland Security (“DHS”) and the Government Accountability Office (“GAO”) in their 2022 ‘Unmanned Maritime Systems’ report on Maritime Security, is further exemplified by the U.S. Coast Guard’s March 2023 Unmanned System Strategic Plan. This plan outlines a vision to effectively employ, defend against, and regulate unmanned systems in maritime operations, underscoring the strategic importance of collaborative international efforts in maritime security. The U.S. is actively encouraging Pacific allies to bolster their maritime surveillance capabilities to counteract regional coercive behaviors, reflecting a broader trend towards democratizing technology to enhance global maritime safety, security, and prosperity. This aligns with our company’s positioning, as our products are well-suited to enable the Coast Guard and other maritime bodies to achieve their mission-critical capabilities in surveillance, detection, classification, identification, and prosecution, which are essential for executing statutory missions. Moreover, large defense contractors’ increasing interest in the “ocean data collection” space, through acquisition of small and mid-size unmanned and autonomous surface vehicle companies, signifies a growing market and application opportunities for our unmanned system offerings. Within the United States, our MDAS deployed on NextGen PB can also be deployed domestically, enhancing our market size.

 

Unmanned systems are increasingly in demand by defense and security and commercial companies to reduce costs and improve safety in offshore operations. Also, geopolitical developments such as conflict in the Middle East and Eastern Europe demonstrate the need for countries to protect their borders. In addition, the need to protect exclusive economic zones from illegal fishing activities and protect natural resources on the seabed are accelerating the adoption of solutions or technologies that collect, transmit, and synthesize data to provide actionable intelligence and decision-advantage to clients. Our recent operations in Bahrain and in the Asia Pacific region show the broadening geographic opportunity for our services, especially in the defense and security markets. This includes support for other unmanned technologies, such as aerial drones, deployment of underwater vehicles, that can then communicate via PowerBuoy® deployed secure communication links.

 

Our regional partnership strategy is a cornerstone of our growth plan, aligning with our broader vision of delivering sustainable, innovative ocean technology solutions while driving long-term value for our shareholders. This strategy includes engaging with regional partners and resellers in order to expand our market reach, accelerate sales cycles, and strengthening our global presence in a cost-effective manner. By partnering with regional resellers, we leverage their deep understanding of local market dynamics, regulatory environments, and customer needs. This enables us to tailor our solutions and better address region-specific challenges and opportunities. Such regional partners and resellers also have established relationships and networks, allowing us to enter new markets more rapidly. This minimizes barriers to entry and reduces the time it takes to secure contracts.

 

Recent global events have highlighted the growing risk of sabotage targeting critical infrastructure, including underwater pipelines and telecommunications cables. Such attacks have the potential to severely disrupt economic activities, compromise national security, and impede global communications. As these threats become more sophisticated, the need for proactive monitoring and deterrence strategies has never been more urgent. We recognize the critical role we play in supporting the security and resilience of maritime infrastructure. Our innovative solutions, such as the PowerBuoy® platform, provide real-time offshore intelligence, surveillance, and reconnaissance capabilities. These systems are equipped with advanced sensors, radar, and acoustic monitoring technologies, enabling the continuous collection and analysis of environmental and operational data. Through integrated communications systems, our platforms offer secure data transmission, allowing for timely detection of suspicious activities near critical assets. In light of the recent sabotage incidents, OPT has intensified its focus on collaborating with governmental agencies, defense organizations, and commercial operators to deploy maritime domain awareness solutions. Our autonomous, renewable energy-powered systems are designed to operate in remote and hard-to-reach areas, providing a sustainable and cost-effective approach to safeguarding vital infrastructure.

 

We are focused on serving defense and security organizations, while also targeting offshore wind, science and research, and ports and harbors. Our pipeline continues to grow and comprises primarily participants in defense and security markets. In addition, we continue to see a growing number of commercial opportunities from offshore wind companies for autonomous monitoring, surveillance and survey-related services during various stages of the project development cycle, including initial permitting that can reduce risk in permit obtainment and legal challenge. Further, we are attracting interest targeted toward subsea applications, using proprietary sensor payloads for environmental monitoring and subsea intelligence. We believe that our buoys and WAM-Vs® are uniquely able to deliver these services either as a standalone solutions, together or in combination with other systems. Furthermore, we are becoming a trusted provider of solutions for the hydrography survey market, especially for shallow water operations.

 

 

Commercial Activities

 

As noted above, we are now primarily focused on commercial activities. We have built a suite of products that we believe will be the basis for our current and future commercial success resulting in meaningful progress in orders, pipeline, and backlog. We continue to seek new strategic relationships and further develop our existing partnerships. We collaborate with companies that have developed or are developing in-ocean applications requiring a persistent source of power that is also capable of real time data collection, processing and communication, to address potential customer needs. For the three-month periods ended January 31, 2025 and 2024, the Company had three and two customers, respectively, whose revenue accounted for at least 10% of the Company’s consolidated revenue, respectively. These revenues accounted for approximately 95% and 85% of the Company’s total revenue for the respective periods.

 

In order to achieve success in ongoing commercialization efforts, we must expand our customer base and obtain commercial contracts to lease or sell our solutions and services to customers. Our potential customer base for our solutions includes various public and private entities, and agencies that require remote offshore power.

 

Recent Contracts and Commercial Activity

 

The following commercially notable activities occurred during year to date fiscal. 2025:

 

	●	In February 2025, we participated in NAVDEX in Abu Dhabi alongside Remah International Group (“RIG”), a privately held, UAE-headquartered company specializing in both military and civilian services. This collaboration follows OPT’s appointment of RIG as its exclusive distributor for defense and security solutions in the UAE in late 2024. During NAVDEX, OPT and RIG conducted live demonstrations of the WAM-V® Unmanned Surface Vehicles (“USVs”), showcasing their advanced capabilities, including underwater sensor integration and aerial drone compatibility. Additionally, we exhibited our Next Generation PowerBuoy® and AI-enabled Merrows™ system. These demonstrations highlight OPT’s innovative autonomous ocean security solutions and are expected to accelerate the adoption of AI-capable, resident, and persistent maritime technologies in the region. We are well-positioned to advance multiple opportunities in the UAE and the broader Middle East, aligning with the region’s increasing focus on autonomous defense solutions. Our work at NAVDEX showcased how technologies are designed to meet the operational needs of the UAE Armed Forces, offering drone and swarming capabilities across various domains, including maritime missions.
	●	In December 2024, we announced a new partnership in Latin America, accompanied by two purchase orders totalling $5 million in commitments. These purchase orders encompass both our Next Generation PowerBuoys® and WAM-V® Unmanned Surface Vehicles (USVs). The WAM-V USVs will be deployed for hydrographic applications, leveraging their adaptability and reliability to deliver versatile, multi-application solutions for our customers. Additionally, the PowerBuoys®, which harness a combination of wave, solar, and wind power generation, will enable customers to integrate permanent monitoring and marine intelligence solutions into the existing roaming capabilities we have begun deploying in the region. This strategic partnership highlights the increasing demand for OPTs’ innovative solutions and reinforces our position as a leader in the maritime artificial intelligence robotics sector.

 

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In October 2024 we made significant advancements to our expansion of our defense and security business in the Middle East by signing a Distributor Agreement with Remah International Group (“RIG”), a privately held and UAE headquartered company with a focus on both military and civilian services. The agreement calls for the parties to explore additional expansion and integration of services as demand for OPT’s solutions continues to grow in the UAE. In addition, we signed an agreement with 3B General Trading & Contracting Co. W.L.L. (3B) to explore projects in the offshore energy and maritime industry in Kuwait, including deployment of WAM-V® autonomous and unmanned surface vehicles and Next Generation PowerBuoys® equipped with AI capable Merrows™. We are also actively collaborating with Unique Group (UG) for WAM-V® 22 demonstrations to potential energy and hydrographic survey customers throughout the Middle East. UG will also be modifying the vehicle from gas to diesel-electric outboards per regulatory requirements in oil and gas fields in the region.

 

	●	In September 2024 we announced that we had received a further contract by the Naval Postgraduate School (NPS) in Monterey, California. This contract adds to the deployment of OPT’s PowerBuoy® as part of an ongoing initiative to enhance maritime domain awareness and connectivity in Monterey Bay and demonstrate the use of PowerBuoys® for multi-domain drone and communication integration. Building on the success of the previously announced NPS contract, which included installing AT&T 5G technology on a PowerBuoy®, this new order focuses on integrating advanced subsea sensors into a PowerBuoy® equipped with OPT’s latest Merrows™ suite for AI capable seamless integration of MDA across platforms and utilizing communication technologies from AT&T for NPS.
	●	In August 2024 we announced the signing of the latest of four new reseller agreements targeted at supporting global critical services. These agreements include opportunities for partnering with allied nations in areas like the South China Sea, previously announced efforts in Latin America and the Middle East and serving global commercial markets. These partnerships provide leverage to proactively serve the demand for our autonomous maritime technologies in geographies remote from OPT.
	●	In August 2024 we announced a patent pending for our docking and recharging buoy technology, specifically designed for the WAM-V. This advanced system has already been successfully demonstrated, showcasing its potential to revolutionize the operational efficiency and endurance of autonomous surface vessels. This development aligns with our broader strategy to enhance the functionality and versatility of our Merrows TM Platform, bringing artificial intelligence capable solutions to the ocean.
	●	In July 2024 we announced the signing of a reseller agreement with Geos Telecom, a prominent provider of maritime communication and navigation solutions in Costa Rica. This partnership marks a significant expansion of our presence in the Latin American market. We believe this agreement not only enhances our footprint in Latin America but also enables us to deliver advanced USV capabilities to a new customer base.
	●	In July 2024 we announced we had been awarded a contract for immediate delivery of a PowerBuoy equipped with Merrows TM in the Midde East. We had previously announced our selection as a preferred supplier for our Merrows TM equipped buoys in the region. We believe this order for a solar and wind powered system highlights our ability to provide carbon free, renewable Merrows TM platforms in most all marine environments across the globe. Offering field tested technology solutions as complementary building blocks makes it possible for our customers to integrate WAM-Vs and PowerBuoys into their operations and to put configurable ocean intelligence into their hands.

 

 

	●	In July 2024 we announced the signing of a reseller agreement with Survey Equipment Services, Inc. (“SES”), a specialist in the supply of Marine Survey and Navigation equipment. The agreement focuses on the provision of our WAM-Vs® in the USA. This agreement allows us to leverage SES’s offering of survey and navigation equipment and deploy WAM-V’s® to SES’s customer base.
	●	In July 2024 we announced a partnership with Unique Group (“Unique”), a UAE headquartered global innovator in subsea technologies and engineering, offering multiple products and services to customers in a range of industry sectors. Unique has more than 600 employees and 20 operational bases around the world. Unique Group will collaborate with OPT to deploy our WAM-V in the UAE and other countries in the Gulf Collaboration Council (“GCC”) region. Integrating our commercially available vehicles with Unique’s leading position in the offshore energy industry in the UAE will accelerate the adoption of USVs in the region. Working with Unique Group will further facilitate our efforts to deploy USVs globally.
	●	In June 2024 we announced the signing of an OEM agreement with Teledyne Marine, a division of Teledyne Technologies Inc. (NYSE: TDY) (“Teledyne”), a key supplier in the maritime technology inclusive of connectors, instruments, and vehicles. This strategic partnership aims to enhance our product offerings and drive innovation within the industry providing customers with a turnkey system. This agreement allows us to leverage Teledyne’s best-in-class offerings to deliver superior sensor and ocean technology products to our customers.
	●	In June 2024 we announced we launched our Global 24/7 Service Support (“Services”). We were already servicing its Artificial Intelligence Capable Maritime Domain Awareness Solution, Merrows TM, in regions such as Latin America and Sub-Saharan Africa. The new Services offering gives customers the opportunity for 24/7 support with tiered options to maintain operations around the globe. This new Services offering enables our customers to choose from a menu of options and determine the most cost-effective way to operate our PowerBuoys and USVs.

 

Business Relationships

 

We believe that our solutions are best developed, sold, deployed, and maintained together with subject matter experts in their respective fields. This enables the Company to protect, maintain, and evolve our various platforms and integrate them with surface and subsea payloads. The Company has previously entered into business relationships focused on including, but not limited to, deployment and installations, sourcing of surface payloads, and integration with autonomous vehicles. To augment our own internal software development team and further develop the MDAS, we maintain ongoing strategic software and robotics partnerships with software companies. We believe the business relationships with these software companies will further the development, alongside our internal technology resources, of our next-generation MDAS product for the maritime industrial market and governmental defense and security organizations.

 

We are finalizing the transition from our third-party software company to our internal software team, allowing us to have faster response to customer needs and more significant control over our MDAS solution. In addition, our internal software team will be supporting a more integrated solution between the PB and WAM-V products, moving the Merrows ^TM initiative forward. The platform will continue to have a flexible architecture that allows the Company to integrate new sensor technologies and third-party analytics capabilities and share MDAS data with customers and partners. We also keep in contact with several offshore specialists and marine operations partners globally to support our deployment, maintenance, and recovery operations and projects.

 

 

Business Strategy

 

During the first nine months of fiscal 2025, we have continued to advance our marketing programs, products, and solutions (including Merrows ^TM noted above). We intend to build on these efforts by introducing additional processes and making investments in appropriate human capital, operations, and manufacturing capabilities. In support of our focus on the national security and defense markets, we have developed a defense specific sales team, including veterans from the U.S. Navy and Swedish Navy.

 

The majority of the Company’s potential customers are in areas of defense and security, hydrographic survey, offshore wind, offshore and coastal communication networks, and MDA, including mitigation of IUU fishing, where the end use may be both domestic and abroad.

 

Historically, demonstration projects have been a requisite step towards broad solution deployment and revenue associated with specific applications such as our New Jersey MDAS test array as part of our DaaS solution and to highlight these capabilities. Customers may want their own dedicated demonstration depending on customer needs. During a typical demonstration project’s specification, negotiation and evaluation period, we are often subject to the prospective customer’s vendor qualification process, which entails substantial due diligence of the Company and its capabilities. Such demonstrations are often a required step prior to leasing and may include negotiation of standard terms and conditions. Many proposals contain provisions which would provide the option to purchase or lease our PowerBuoy® or WAM-V® product upon successful conclusion of the demonstration project. The Company maintains access to WAM-Vs® assets for demonstrations and has successfully demonstrated the capabilities of many of its solutions on its own or in customer-sponsored evaluation projects and remains focused on further demonstrations to build customer awareness and confidence in our products and services and ultimately to drive revenue.

 

The Company is pursuing a long-term growth strategy to expand its market value proposition while growing the Company’s revenue base. This strategy includes partnerships with leading companies and organizations in adjacent and complementary markets. We continue to refine NextGen PB and WAM-V® products for use in offshore power, data acquisition, and real-time data communications applications, and to achieve this goal, we are pursuing the following business objectives:

 

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Provide integrated turn-key solutions, purchases or leases. We also provide Contractor-Owned, Contractor-Operated (COCO) solutions whereby OPT owns and operates the equipment and GOCO Government-Owned, Contractor-Operated (GOCO) solutions whereby the government retains ownership of the equipment but OPT is hired to manage and operate it. We believe our DaaS, RaaS and PaaS solutions, together with our platforms, are well suited to enable unmanned, autonomous (non-grid connected) offshore applications, such as intelligence, surveillance, and reconnaissance (ISR), mine counter measure operations, topside and subsea surveillance and communications, surveying, subsea equipment monitoring, early warning systems platform, subsea power and buffering, and weather and climate data collection. We have investigated and realized market demand for some of these solutions, and we intend to sell and/or lease our products to these markets as part of these broader integrated solutions. Additionally, we intend to provide services associated with our solution offerings such as paid engineering studies, value-added engineering, maintenance, remote monitoring and diagnostics, application engineering, planning, training, project management, and marine and logistics support required for our solution life cycle. As our MDAS development continues, we expect that this will also include data and cloud services, as well as Counter Unmanned Underwater Vehicle (“CUUV”) WAM-V ® capability. CUUV represents emerging technologies designed to detect, track, and neutralize unmanned underwater vehicles and is an important area of growth in ensuring maritime security. Recent demonstrations successfully showcased the ability to detect multiple underwater threats, including singular and swarming micro–AUV.

 

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Expand customer system solution offerings through new complementary products that enable more cost-efficient deployments that make shorter missions more feasible. We are continuously innovating new solutions to deliver enhanced value to our customers, such as enhancing our MDAS and improving our deployment platforms solutions, such as our PowerBuoys® and WAM-Vs®. We have substantially completed development of our next generation PowerBuoy® that incorporates wave, wind, and solar power generation capabilities in a robust yet cost effective system that supports shorter term missions as well as the ability to operate in near shore and low wave environments. This effort was partially funded by the DOE SBIR Phase II award. In addition, we have integrated PowerBuoy® and WAM-V® capabilities, including WAM-V® recharging from a PowerBuoy®, with future plans to integrate MDAS capabilities into our WAM-Vs®, thus extending our reach and providing both fixed and mobile MDAS offerings to our customers.

 

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Focus WAM-Vs® on the defense and security, hydrographic survey, and surveillance industries. We are well positioned to capitalize on the growing demand for unmanned surface vehicles to provide maritime safety, security, and awareness of what is happening in the maritime domain, including surveillance, detection, classification, and identification. The ability of our WAM-Vs® to handle various payloads allows us to target navigation surveys, marine infrastructure surveys, berth clearance surveys, dredging surveys, and mining pit surveys. Near-term future markets for our WAM-Vs® include the use of WAM-Vs® for the launch of aerial drones and underwater survey equipment, including our partnership with Red Cat Holdings, Inc. (Nasdaq: RCAT) to deploy Teal 2 Drones as part of their strategy to leverage autonomous vehicles to assess and address maritime threats in real time. This collaboration adds to our robust tactical ecosystem of partnerships with leading companies to provide the best solutions to clients for their tactical missions.WAM-Vs® are easily and economically shipped via land, air, or sea, and their modular design enables us to quickly reduce their size for storage or shipment. The ability to disassemble a WAM-V® reduces the footprint by as much as 75%, and as a result, a 20-foot container can hold four 16-foot WAM-Vs®. In addition, our 8-foot WAM-V® can be checked as baggage on a standard commercial flight. To integrate our solutions and add roaming as an option or enhancement to our MDAS, we are advancing developments to further integrate MDAS into the WAM-V® platform and develop additional autonomy capabilities.

 

 

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Focus sales efforts on key global markets in the U.S., Middle East, Latin America, and Sub-Saharan Africa. While we are marketing our products and services globally, we have focused on several key markets and applications, including U.S. and foreign defense and security applications with our MDAS offering; and the hydrographic survey market with regard to our WAM-Vs®. We believe that each of these areas has demand for our solutions, sizable end market opportunities, and high levels of industrialization and economic development. Our headquarters in Monroe Township, New Jersey and our office in Richmond, California enable us to support the geographic diversity of our customers and strengthen our dialogue with our solution partners located on both the east and west coasts of the U.S.

 

●

Expand our relationships in key market areas through strategic partnerships and collaborations. We believe that strategic partners are an important part of expanding visibility to our products. Partnerships and collaborations can be used to improve the development of overall integrated solutions, create new market channels, expand commercial know-how and geographic footprint, and bolster our product delivery capabilities. We have formed such a relationship with several well-known groups, and we continue to seek other opportunities to collaborate with application experts from within our selected markets. These partnerships have helped us source services, such as installation expertise, and products, such as MDA enabling equipment, to meet our development and customer obligations. We have been actively pursuing additional opportunities to bring in-house skills, capabilities, and solutions that are complementary to our strategy and enable us to scale more quickly.

 

●

Partner with fabrication, deployment and service contractors. In order to minimize our capital requirements as we scale our business, we intend to optimize and utilize state of the art fabrication, anchoring, mooring, cabling supply, and in some cases, deployment of our products and solutions. We believe this domestically distributed manufacturing and assembly approach enables us to focus on our core competencies and ensure a cost-effective product by leveraging a larger more established supply base. We continue to seek strategic partnerships regarding servicing of our products and solutions.

 

●

Expand survey and security market applications. Through our WAM-V® products, we can increase our ability to lease vehicles specifically to support shoreline and offshore survey markets as well as security applications while integrating MDA into these solutions.

 

Liquidity

 

During the nine months ended January 31, 2025, the Company incurred a net loss of approximately $15.1 million and used cash in operations of approximately $14.6 million. The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect the Company’s future operating results and could cause actual results to vary materially from expectations include, but are not limited to, performance of its products, its ability to market and commercialize its products and new products that it may develop, access to capital, technology development, scalability of technology and production, ability to attract and retain key personnel, concentration of customers and suppliers, pending or threatened litigation (including recent litigation noted above), and deployment risks and integration of acquisitions.

 

On March 21, 2024, the Company entered into an At-the-Market Offering Agreement with an aggregate offering price of up to $7.0 million (the “2023 ATM Facility”). On August 30, 2024 the aggregate offering price under the 2023 ATM Facility was increased to approximately $16.0 million. It was then reduced to approximately $2.9 million in September 2024 and increased again to approximately $60.0 million in December 2024. As of January 31, 2025, the Company had received proceeds of approximately $16.8 million under this facility and an additional $0.9 million between January 31, 2025 and March 16, 2025.

 

First Registered Direct Offering

 

On September 13, 2024, the Company entered into a common stock purchase agreement (the “First RDO Purchase Agreement”) with an institutional accredited investor for the sale (the “First Offering”) by the Company of shares (the “First RDO Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), for aggregate gross proceeds of $1.5 million, before deducting offering expenses payable by the Company. The First RDO Shares were issued upon issuance of a funding notice by the Company to the investor. The First RDO Shares were issued at a price per share equal to 80% of the lowest traded price of the Common Stock ten days prior to the closing date for the purchase of the shares. In addition, the Company has the right, but not the obligation, to sell to this investor up to an additional $3.5 million of shares of Common Stock on the same pricing terms.

 

The First RDO Purchase Agreement contained customary representations, warranties and agreements by the Company and customary conditions for closing. Pursuant to the First RDO Purchase Agreement, the Company also agreed to indemnify the purchaser against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained therein. The First RDO Purchase Agreement also included a covenant on the investor to vote their shares of common stock in favor of all Company director nominees and other proxy proposals, but only for so long as the investor owns more than 5% of the outstanding stock.

 

Second Registered Direct Offering

 

On September 13, 2024, the Company also entered into a common stock purchase agreement (the “Second RDO Purchase Agreement”) with a separate institutional accredited investor for the sale (the “Second Offering”) by the Company of shares (the “Second RDO Shares”) of the Common Stock, for aggregate gross proceeds of $1.5 million, before deducting offering expenses payable by the Company. The Second RDO Shares were issued upon issuance of a funding notice by the Company to the investor. The Second RDO Shares were issued at a price per share equal to 80% of the lowest traded price of the Common Stock five days prior to the closing date for the purchase of the shares. In addition, the Company has the right, but not the obligation, to sell to this investor up to an additional $2.5 million of shares of Common Stock on the same pricing terms.

 

The Second RDO Purchase Agreement contains customary representations, warranties and agreements by the Company and customary conditions to closing. Pursuant to the Second RDO Purchase Agreement, the Company also agreed to indemnify the purchaser against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained therein. The Second RDO Purchase Agreement also included a covenant on the investor to vote their shares of common stock in favor of all Company director nominees and other proxy proposals, but only for so long as the investor owns more than 5% of the outstanding stock.

 

The Company used the net proceeds from the First RDO Purchase Agreement and the Second RDO Purchase Agreement to build additional products and solutions to meet market demand, further advance the development of new products and solutions, engage in corporate development and merger and acquisition activities, for working capital needs, capital expenditures, repayment or refinancing of indebtedness, repurchases and redemptions of securities, and for other general corporate purposes.

 

The Company’s current cash balance may not be sufficient to fund its planned expenditures through March 2026. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The accompanying consolidated financial statements have been prepared on a basis which assumes the Company is a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from any uncertainty related to the Company’s ability to continue as a going concern. Such adjustments could be material.

 

Convertible Debt Offering

 

On December 20, 2024, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with an institutional investor (the “Investor”) under which the Company agreed to issue and sell, in one or more registered public offerings by the Company directly to the Investor (the “Offering”), senior convertible notes for up to an aggregate principal amount of $54.0 million (the “Notes”) that will be convertible into shares of the Company’s common stock. On December 20, 2024 (the “Initial Closing Date”), the Company issued and sold to the Investor a Note in the original principal amount of $4.0 million (the “Initial Note”). Upon our filing of one or more additional prospectus supplements, and our satisfaction of certain other conditions, the Securities Purchase Agreement contemplates additional closings of up to $50 million in aggregate principal amount of additional Notes, upon mutual agreement of the Company and the Investor. The Securities Purchase Agreement contains customary representations, warranties and covenants. It also grants the Investor the right to participate in certain future equity and equity-linked transactions of the Company from the Initial Closing Date through the 3-year anniversary thereof, as well as certain anti-dilution rights applicable to the Notes. No Note may be converted to the extent that such conversion would cause the then holder of such Note to become the beneficial owner of more than 4.99%, or, at the option of such holder, 9.99% of the then outstanding common stock, after giving effect to such conversion (the “Beneficial Ownership Cap”).

 

 

The Initial Note was issued with an original issue discount of 9.5%, resulting in $3.6 million of proceeds to the Company, before fees and expenses of approximately $0.4 million. Each Note will bear interest at a rate of 12.5% per annum, which shall compound on the first calendar day of each calendar quarter and increase the principal amount of the Notes on a dollar-for-dollar basis. Upon the occurrence and during the continuance of an event of default, the interest rate on the Notes will increase to 17.5% per annum. Unless earlier converted, the Notes will mature on the eighteen-month anniversary of their respective issuance dates. All amounts due under the Notes are convertible at any time, in whole or in part, and subject to the Beneficial Ownership Cap, at the option of the holders into shares of common stock at a conversion price equal to the lower of the closing price of the common stock on the trading day prior to each closing plus a 15% premium (the “Reference Price”) or 90% of the volume weighted average price of the common stock during the seven trading days ending and including the trading day immediately preceding the delivery or deemed delivery of the applicable conversion notice. Upon the satisfaction of certain conditions, we may prepay outstanding Notes upon not less than 20 business days nor more than 30 business days’ written notice by paying an amount equal to the face value of the Notes at premium of 15%.

 

The Initial Note contains certain terms and conditions which management evaluated as potential embedded derivatives. Management determined that the optional conversion feature is not clearly and closely related to the debt host instrument, and therefore requires bifurcation and separate accounting. We determined the fair value of the embedded derivative as approximately $0.4 million and recorded it as a discount to the debt and a derivative liability on the date of issue.

 

The Investor converted all of the outstanding principal and accrued interest under the Initial Note to common stock during December 2024, resulting in the issuance of 15,442,429 common shares at an average conversion price of $0.26 per share. Interest expense during the time the Initial Note was outstanding was immaterial. The Company recognized a loss on extinguishment resulting from the conversion, which is presented as a separate line item in the Company’s Consolidated Statements of Operations.

 

Backlog

 

As of January 31, 2025, the Company’s backlog was $7.5 million as compared to $3.3 million as of January 31, 2024. Our backlog includes unfilled firm orders for our products and services from commercial or governmental customers. If any of our contracts were to be terminated, our backlog would be reduced by the expected value of the remaining terms of such contract.

 

The amount of contract backlog is not necessarily indicative of future revenue because modifications to or terminations of present contracts and production delays can provide additional revenue or reduce anticipated revenue. A portion of our revenue is recognized using the input method used to measure progress towards completion of our customer contracts over time, and changes in estimates from time to time may have a significant effect on revenue and backlog. Our backlog is subject to large variations from time to time due to the timing of new awards.

 

Critical Accounting Policies and Estimates

 

To understand our financial statements, it is important to understand our critical accounting policies and estimates. We prepare our financial statements in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). The preparation of financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from the estimates made by our management. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected. We believe that accounting policies are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management’s judgments and estimates.

 

We believe the following accounting policy requires significant judgment and estimates by us in the preparation of our consolidated financial statements.

 

For a discussion of our critical accounting estimates, see the section entitled Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended April 30, 2024. There were no material changes to our critical accounting estimates or accounting policies during the three and nine months ended January 31, 2025.

 

Revenue recognition

 

The Company accounts for revenue in accordance with Accounting Standards Codification 606 (ASC 606) for contracts with customers and Accounting Standards Codification 842 (ASC 842) for leasing arrangements. In relation to ASC 606, which states that a performance obligation is the unit of account for revenue recognition, the Company assesses the goods or services promised in a contract with a customer and identifies as a performance obligation as either: a) a good or service (or a bundle of goods or services) that is distinct; or b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. A contract may contain a single performance obligation or multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contracted transaction price to each performance obligation based upon the relative standalone selling price, which represents the price the Company would sell a promised good or service separately to a customer. The Company determines the standalone selling price based upon the facts and circumstances of each obligated good or service. When no observable standalone selling price is available, the standalone selling price is generally estimated based upon the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate profit margin.

 

 

The nature of the Company’s contracts may give rise to several types of variable consideration, including unpriced change orders, liquidated damages and penalties. Variable consideration can also arise from modifications to the scope of services. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on our assessment of legal enforceability, performance, and any other information (historical, current, and forecasted) that is reasonably available to us. There was no variable consideration as of January 31, 2025 or 2024. The Company presents shipping and handling costs, that occur after control of the promised goods or services transfer to the customer, as fulfilment costs in costs of goods sold and regular shipping and handling activities charged to operating expenses.

 

The Company recognizes revenue when or as it satisfies a performance obligation by transferring a good or service to a customer, either (1) at a point in time or (2) over time. A good or service is transferred when or as the customer obtains control. The evaluation of whether control of each performance obligation is transferred at a point in time or over time is made at contract inception. Input measures such as costs incurred are utilized to assess progress against specific contractual performance obligations for the Company’s services. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. For the Company, the input method using costs or labor hours incurred best represents the measure of progress against the performance obligations incorporated within the contractual agreements. If estimated total costs on any contract project a loss, the Company charges the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss are known and the loss can be reasonably estimated. These loss projections are re-assessed for each subsequent reporting period until the project is complete. Such revisions could occur at any time and the effects may be material. During the nine-month period ended January 31, 2025, the Company recognized approximately $4.0 million in revenue related to performance obligations satisfied at a point in time and approximately $0.5 million in revenue related to performance obligations satisfied over time. During the three month period ended January 31, 2025, the Company recognized approximately $0.4 million in revenue related to performance obligations satisfied at a point in time and approximately $0.4 million in revenue related to performance obligations satisfied over time.

 

The Company’s contracts are either cost-plus contracts, fixed-price contracts, time and material agreements, lease or service agreements. Under cost plus contracts, customers are billed for actual expenses incurred plus an agreed-upon fee.

 

The Company has two types of fixed-price contracts, firm fixed-price and cost-sharing. Under firm fixed-price contracts, the Company receives an agreed-upon amount for providing products and services specified in the contract, and a profit or loss is recognized depending on whether actual costs are more or less than the agreed-upon amount. Under cost-sharing contracts, the fixed amount agreed upon with the customer is only intended to fund a portion of the costs on a specific project. Under cost sharing contracts, an amount corresponding to the revenue is recorded in cost of revenue, resulting in gross profit on these contracts of zero. The Company’s share of the costs is recorded as product development expense. The Company reports its disaggregation of revenue by contract type since this method best represents the Company’s business. For the three- and nine-month periods ended January 31, 2025 and 2024, the majority of the Company’s contracts were classified as firm fixed-price and the balance were cost-sharing.

 

The Company’s revenue also includes revenue from certain contracts which do not fall within the scope of ASC 606, but under the scope of ASC 842. At inception of a contract for those classified under ASC 842, the Company classifies leases as either operating or financing in accordance with the authoritative accounting guidance contained within ASC Topic 842, “Leases”. If the direct financing or sales-type classification criteria are met, then the lease is accounted for as a finance lease. All others are treated as operating leases. The Company recognizes revenue from operating lease arrangements generally on a straight-line basis over the lease term, or as agreed upon in-use days are utilized, which is presented in Revenue in the Consolidated Statement of Operations. The Company also enters into lease arrangements for its PowerBuoys® and WAM-V® with certain customers. Revenue related to multiple-element arrangements is allocated to lease and non-lease elements based on their relative standalone selling prices or expected cost plus a margin approach. Lease elements generally include a PowerBuoy®, WAM-V®, and components, while non-lease elements, which the Company expects to become more prevalent, generally include engineering, monitoring and support services. In the lease arrangement, the customer may be provided with an option to extend the lease term or purchase the leased buoy or WAM-V® at some point during and/or at the end of the lease term.

 

 

Recently Issued Accounting Standards

 

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which improves the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, although early adoption is permitted. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the impact of adopting this ASU 2023-09 on our consolidated financial statements and disclosures.

 

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU improves financial reporting by requiring disclosure of incremental segment information. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance was effective for the Company on May 1, 2024. The Company expects to provide incremental qualitative segment-related disclosures beginning with the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025.

 

In November 2024, the FASB issued ASU No. 2024-3, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This ASU improves the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The new guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating what the potential impact of adopting this ASU 2024-03 could have on our consolidated financial statements and disclosures

 

Financial Operations Overview

 

The following describes certain line items in our statement of operations and some of the factors that affect our operating results.

 

We currently focus our sales efforts in key global markets in North America, South America, Europe and Asia. The following table shows the percentage of our revenues by geographical location of our customers for the three and nine months ended January 31, 2025 and 2023.

 

		Three months ended January 31,								Nine months ended January 31,
Customer Location*		2025				2024				2025				2024
North America & South America			39	%			96	%			67	%			96	%
EMEA			61	%			4	%			33	%			4	%
Asia & Australia			—	%			—	%			—	%			—	%
			100	%			100	%			100	%			100	%

 

* For U.S. Government contracts, the revenue is classified as North American however, location of operations may differ.

 

Cost of revenue

 

Our cost of revenue consists primarily of subcontracts, incurred material, labor and manufacturing overhead expenses, such as engineering expense, equipment depreciation, maintenance, and facility related expenses, and includes the cost of equipment to customize the PowerBuoy®, WAM-V® and our other products supplied by third-party suppliers. Cost of revenue also includes PowerBuoy® and other product system delivery and deployment expenses and may include losses recorded at the time a loss is forecasted to be incurred on a contract.

 

Operating Expenses

 

Engineering and product development costs

 

Our engineering and product enhancement costs consist of salaries and other personnel-related costs and the costs of products, materials and outside services used in our product enhancement and unfunded research activities. Our product enhancement costs relate primarily to our efforts to increase the power output and reliability of our PowerBuoy® system and other products, to enhance and optimize data monitoring and controls systems, and the development of new products, product applications and complementary technologies. We expense all of these costs as incurred.

 

Selling, general and administrative costs

 

Our selling, general and administrative costs consist primarily of professional fees, salaries, share-based compensation and other personnel-related costs for employees and consultants engaged in sales and marketing of our products, and costs for executive, accounting and administrative personnel, professional fees and other general corporate expenses.

 

Interest income, net

 

Interest income, net consists of interest received on cash, cash equivalents, and short-term investments and interest paid on certain obligations to third parties as well as amortization expense related to the premiums on the purchase of short-term investments.

 

 

Foreign exchange gain (loss)

 

We transact business in various countries and have exposure to fluctuations in foreign currency exchange rates. Since we conduct our business in U.S. dollars and our functional currency is the U.S. dollar, our main foreign exchange exposure, if any, results from changes in the exchange rate between the U.S. dollar and transactions settled in foreign currencies.

 

The Company completed the process of winding down its Australian subsidiary during fiscal 2024. The Company began the process of winding down its UK subsidiary during fiscal 2024 and expects this to be completed during fiscal 2025. The unrealized gains or losses resulting from foreign currency balances translation are included in Accumulated Other Comprehensive Loss within Shareholders’ Equity. Foreign currency transaction gains and losses are recognized within our Consolidated Statements of Operations.

 

We currently do not hedge our exchange rate exposure. However, we assess the anticipated foreign currency working capital requirements and capital asset acquisitions of our foreign operations and assess the need and cost to utilize financial instruments to hedge currency exposures on an ongoing basis and may hedge against exchange rate exposure in the future.

 

Results of Operations

 

This section should be read in conjunction with the discussion below under “Liquidity and Capital Resources.”

 

Three months ended January 31, 2025 compared to the three months ended January 31, 2024

 

The following table contains selected statement of operations information, which serves as the basis of the discussion of our results of operations for the three months ended January 31, 2025 and 2024.

 

		Three months ended January 31,
		2025				2024
Revenues		$	825			$	1,792
Cost of revenues			628				979
Gross margin			197				813
Operating expenses			6,072				8,551
Gain from change in fair value of consideration			—				(33	)
Operating loss			(5,875	)			(7,705	)
Interest income, net			6				151
Other income (expense), net			(13	)			—
Loss on extinguishment of debt			(838	)			—
Loss on disposal of assets			—				(210	)
Foreign exchange gain			—				1
Loss before income taxes			(6,720	)			(7,763	)
Income tax benefit			—				1,254
Net loss		$	(6,720	)		$	(6,509	)

 

Revenues

 

Revenues for the three months ended January 31, 2025 and 2024 were approximately $0.8 million and $1.8 million, respectively. The year-over-year decrease primarily related to the timing of deliveries on current year projects versus the prior year contracts of WAM-Vs.

 

Cost of revenues

 

Cost of revenues for the three months ended January 31, 2025 and 2024 decreased to $0.6 million from $1.0 million, respectively. The year-over-year decrease is related primarily to revenue decreases and changes in product mix, with the current year’s quarterly revenue containing a larger amount of third-party equipment, which carry lower margins.

 

Gain from change in fair value of contingent consideration

 

The gain from change in fair value of contingent consideration for the three months ended January 31, 2025 and 2024 was zero and a $33,000 decrease in the liabilities value, respectively. The prior year amount was due to changes in actual and forecasted bookings relating to the MAR acquisition.

 

Operating expenses

 

Operating expenses for the three months ended January 31, 2025 and 2024 were $6.0 million and $8.6 million, respectively. The decrease of approximately $2.6 million was primarily the result of the significant cost reduction activities we implemented at the end of fiscal 2024 including headcount optimization, material reductions in third party spend, and efforts to tightly control and contain costs.

 

Interest income

 

Interest income for the three months ended January 31, 2025 and 2024 was less than $6,000 and $151,000, respectively, with the decrease primarily related to lower investment balances in the current year.

 

Loss on extinguishment of debt

 

The loss on extinguishment of debt of $0.8 million as of January 31, 2025 relates to convertible notes issued in December 2024 that were converted to common stock in December 2024.

 

Loss on disposition of assets

 

The loss on disposition of assets of $0.2 million as of January 31, 2024 relates to the disposal of intangible and fixed assets related to the disposition of 3Dent Technology, LLC in November of 2023.

 

 

Nine months ended January 31, 2025 compared to the nine months ended January 31, 2024

 

The following table contains selected statement of operations information, which serves as the basis of the discussion of our results of operations for the nine months ended January 31, 2025 and 2024.

 

		Nine months ended January 31,
		2025				2024
Revenues		$	4,545			$	3,953
Cost of revenues			3,106				1,989
Gross margin			1,439				1,964
Operating expenses			15,702				24,648
Gain from change in fair value of consideration			—				(117	)
Operating loss			(14,263	)			(22,567	)
Interest income, net			13				760
Other income			4				—
Loss on extinguishment of debt			(838	)			—
Loss on disposition of assets			—				(210	)
Foreign exchange gain			(1	)			2
Loss before income taxes			(15,085	)			(22,015	)
Income tax benefit			—				1,254
Net loss		$	(15,085	)		$	(20,761	)

 

Revenues

 

Revenues for the nine months ended January 31, 2025 and 2024 were approximately $4.5 million and $4.0 million, respectively. The year-over-year increase primarily reflects higher levels of revenue stemming from the sales and leases of WAM-Vs.

 

Cost of revenues

 

Cost of revenues for the nine months ended January 31, 2025 and 2024 increased to $3.1 million from $2.0 million, respectively. The year-over-year increase is related to an increase in revenue and a change in product mix, with the current year’s quarterly revenue containing a larger amount of third-party equipment, and associated lower margins.

 

Gain from change in fair value of contingent consideration

 

The change in fair value of contingent consideration for the nine months ended January 31, 2025 and 2024 was zero and a $0.1 million decrease in the liabilities value, respectively. The prior year amount was due to changes in actual and forecasted bookings relating to the MAR acquisition.

 

Operating expenses

 

Operating expenses for the nine months ended January 31, 2025 and 2024 were $15.7 million and $24.6 million, respectively. The decrease of approximately $8.9 million was primarily the result of the significant cost reduction activities we implemented at the end of fiscal 2024 including headcount optimization, material reductions in third party spend, and efforts to tightly control and contain costs.

 

Interest income

 

Interest income for the nine months ended January 31, 2025 and 2024 was $13,000 and $760,000, respectively, with the decrease primarily related to lower investment balances in the current year.

 

Other income

 

Other income for the nine months ended January 31, 2025 and 2024 was $4,000 and zero, respectively. The 2025 balance is related to proceeds received from the sale of fixed assets.

 

Loss on extinguishment of debt

 

The loss on extinguishment of debt of $0.8 million as of January 31, 2025 relates to convertible notes that were issued in December 2024 and were converted to common stock in December 2024.

 

Loss on disposition of assets

 

The loss on disposition of assets of $0.2 million as of January 31, 2024 relates to the disposal of intangible and fixed assets related to the disposition of 3Dent Technology, LLC in November of 2023.

 

Liquidity and Capital Resources

 

Our cash requirements relate primarily to working capital needed to operate and grow our business including funding operating expenses. We have experienced and continue to experience negative cash flows from operations and net losses. The Company incurred net losses of $15.1 million and $20.8 million for the nine months ended January 31, 2025 and 2024, respectively. Refer to “Liquidity Outlook” below for additional information.

 

Net cash used in operating activities

 

During the nine months ended January 31, 2025, net cash flows used in operating activities was $14.6 million, a reduction of cash used in operating activities of $10.1 million compared to net cash used in operating activities during the nine months ended January 31, 2024 of $24.7 million. This primarily reflects a decrease in the net loss, of $5.9 million and increases in the current year on non-cash expenses, such as depreciation and stock-based compensation.

 

Net cash (used in)/provided by investing activities

 

Net cash used in investing activities during the nine months ended January 31, 2025 was ($350,000), compared to $22.5 million cash provided by investing activities during the nine months ended January 31, 2024, a change of $22.1 million. The net cash of $(350,000) million used in investing activities during the nine months ended January 31, 2025 was due to the purchase of property, plant and equipment.

 

Net cash provided by financing activities

 

Net cash provided by financing activities during the nine months ended January 31, 2025 and January 31, 2024 was $21.9 million and $16,000, respectively. The current quarter activity was driven by the issuance of common stock under the Company’s At the Market Facility and proceeds from the issuance of stock for convertible debt, discussed above under “Liquidity”.

 

Effect of exchange rates on cash and cash equivalents

 

There was no material effect of exchange rates on cash and cash equivalents during the nine months ended January 31, 2025 and January 31, 2024.

 

 

Liquidity Outlook

 

Since our inception, the cash flows from customer revenues have not been sufficient to fund our operations and provide the capital resources for our business. As of January 31, 2025, our year-to-date revenues were $4.5 million, our year-to-date net losses were $15.1 million, and our year-to-date net cash used in operating activities was $14.6 million.

 

We expect to continue to devote substantial resources to expand our sales, marketing and manufacturing programs associated with the continued commercialization of our products. Our future capital requirements will depend on several factors, including but not limited to:

 

	●	our ability to improve, market and commercialize our products, and achieve and sustain profitability;
	●	our continued improvement of our proprietary technologies, and expected continued use of cash from operating activities unless or until we achieve positive cash flow from the commercialization of our products and services;
	●	our ability to obtain additional funding, as and if needed, which will be subject to several factors, including market conditions, our financial condition and our operating performance;
	●	the substantial doubt about our ability to continue as a going concern;
	●	our history of operating losses, which we expect to continue for at least the short term and possibly longer;
	●	our ability to manage challenges and expenses associated with communications and disputes with activist shareholders, including litigation;
	●	our ability to manage and mitigate risks associated with our internal cyber security protocols and protection of the data we collect and distribute;
	●	our ability to protect our intellectual property portfolio;
	●	the impact of inflation related to the U.S. dollar on our business, operations, customers, suppliers, manufacturers, and personnel;
	●	our ability to meet product enhancement, manufacturing and customer delivery deadlines and the potential impact due to disruptions to our supply chain or our ability to identify vendors that can assist with the prefabrication elements of our products, as a result of, among other things, staff shortages, order delays, and increased pricing from vendors and manufacturers;
	●	our forecasts and estimates regarding future expenses, revenue, gross margin, cash flow and capital requirements;
	●	our ability to identify and penetrate markets for our products, services, and solutions;
	●	our ability to effectively respond to competition in our targeted markets;
	●	our ability to establish relationships with our existing and future strategic partners which may not be successful;
	●	our ability to maintain the listing of our common stock on the NYSE American;
	●	the reliability and continuous improvement of our technology, products and solutions;
	●	our ability to increase or more efficiently utilize the synergies available from our product lines:
	●	changes in current legislation, regulations and economic conditions regarding Federal governmental tariffs, the implementation on the new US Department of Governmental Efficiency (“DOGE”) and related DOGE federal governmental budget cuts and the potential that this affects the demand for, or restrict the use of, our products and services;
	●	our ability to expand markets across geographic boundaries;
	●	our ability to be successful with Federal government work which is complex due to various statutes and regulations applicable to doing business with the Federal government;
	●	o; our ability to be successful doing business internationally which requires strict compliance with applicable statutes and regulations;
	●	the current geopolitical world uncertainty, including tariffs, Russia’s invasion of Ukraine, the Israel/Palestine conflict and previous attacks on merchant ships in the Red Sea;
	●	the potential impact that new foreign country tariffs may have on our ability (i) to source and procure necessary raw materials for the manufacture and provision of our products and services; and (ii) to deliver our products to such foreign countries;
	●	our ability to hire and retain key personnel, including senior management, to achieve our business objectives; and
	●	our ability to establish and maintain consistent commercial profit margins.

 

Our business is capital intensive, and through January 31, 2025, we have been funding our business principally through sales of our securities. As of January 31, 2025, our cash and cash equivalents and long-term restricted cash balance was $10.2 million and we expect to fund our business with this amount and, to a lesser extent, with our cash flow generated from operations. Management believes the Company’s current cash and cash equivalents, and long-term restricted cash, may not be sufficient to fund its planned expenditures through March 2026.

 

These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern for at least a period of one year from the issuance of these consolidated financial statements. The ability to continue as a going concern is dependent upon the Company’s operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due.

 

Off-Balance Sheet Arrangements

 

Since inception, we have not engaged in any off-balance sheet financing activities.

 

 

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

Item 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that material information required to be disclosed in our reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required financial disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

 

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 of the Exchange Act. Based upon that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were not effective, due to the material weaknesses in internal control over financial reporting that are described in our Annual Report on Form 10-K for the year ended April 30, 2024 (the “2024 10-K”).

 

Notwithstanding such material weaknesses in internal control over financial reporting, our management, including our CEO and CFO, has concluded that our consolidated financial statements present fairly, in all material respects, our financial position, results of our operations and our cash flows for the periods presented in this Quarterly Report, in conformity with U.S. generally accepted accounting principles.

 

Remediation Plans

 

As previously described in Part II – Item 9A – Controls and Procedures of the 2024 10-K, we continue to implement a remediation plan to address the material weaknesses mentioned above. The weaknesses will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. Please see below for the remediation actions taken by management.

 

We trained our employees to reinforce the importance of a strong control environment and communicated expectations to emphasize responsibilities and the technical requirements for controls, and to set the appropriate expectations on internal controls.

 

We established a business process control remediation plan, which included frequent communications between our Audit Committee and senior management regarding the progression of remediation of our financial reporting and internal control environment.

 

We have established IT General Controls and invested in people and technology to address gaps in IT Systems Security controls. In addition, there is now a formal process for System and Organization Controls (“SOC”) Report reviews and templates that are being performed by management.

 

We engaged third-party consultants to assist with process mapping and internal control design.

 

Progress has been made against management’s plan to remediate these material weaknesses, but for management to consider a material weakness remediated, the related controls are required to function as anticipated for a minimum period which varies based upon the specified control. As part of its remediation plan, management will put mitigating controls in place to minimize risk associated with any open material weaknesses.

 

Changes in Internal Control Over Financial Reporting

 

In response to the material weaknesses described in the 2024 10-K, the Company reviewed the design of its controls and began remediation activities to alleviate the noted control deficiencies. Other than these items, there was no change in the Company’s internal control over financial reporting that occurred during the quarter ended January 31, 2015, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 

PART II — OTHER INFORMATION

 

Item 1. LEGAL PROCEEDINGS

 

As part of our normal business activities, we are party to a number of legal proceedings and other matters in various stages of development. Management periodically assesses our liabilities and contingencies in connection with these matters based upon the latest information available. We disclose material pending legal proceedings pursuant to SEC rules and other pending matters as we may determine to be appropriate.

 

For information on matters in dispute, see Note 14 to the Consolidated Financial Statements under Part I, Item 1 of this report.

 

Item 1A. RISK FACTORS

 

The discussion of our business and operations should be read together with the risk factors contained in Item 1A of our Annual Report on Form 10-K for the year ended April 30, 2024 and set forth below in this Quarterly Report on Form 10-Q. These risk factors describe various risks and uncertainties to which we are or may become subject. These risks and uncertainties have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner. Except as noted below, there have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K filed with the SEC on July 25, 2024.

 

We have a history of operating losses and may not achieve or maintain profitability and positive cash flow.

 

We have incurred net losses since we began operations in 1994, including net losses of $15.1 million during the first nine months of fiscal year 2025 and $20.8 million during the same nine-month period in fiscal year 2024. As of January 31, 2025, we had an accumulated deficit of $322.5 million.

 

We do not know whether we will be able to successfully commercialize our products and solutions, or whether we can achieve profitability. There is significant uncertainty about our ability to successfully commercialize our products and solutions in our targeted markets. Even if we do achieve commercialization of our products and solutions and become profitable, we may not be able to achieve or, if achieved, sustain profitability on a quarterly or annual basis.

 

We encounter seasonality and revenue variability due to the markets and customers we serve which may impact our ability to attain forecasted revenue, earnings and cash flow targets consistently on a quarterly basis

 

As we continue to grow and scale, we anticipate some quarterly variability in both bookings and revenue recognition going forward. This is a natural outcome of our business model, which involves securing large, complex contracts that may span multiple quarters before revenue is fully recognized. We believe this variability will continue to be offset by our existing “as a Service” solutions that provide recurring revenue, but there may be quarters in our business where this cannot be the case. Our focus remains on long-term execution, delivering on our commitments, and driving sustained value creation. By maintaining this disciplined approach, we believe we will successfully navigate these natural variances as we scale, but there can be no assurance that this will be the case consistently on a quarterly basis. In turn, our ability to attain forecasted revenue, earnings and cash flow targets could be negatively impacted from time to time.

 

Changes in government trade policies, including the imposition of tariffs, may have a material impact on our results of operations.

 

We evaluate all trade policies that impact us, and we adjust our operational strategies to mitigate the impact of these policies. However, trade policies, including quotas, duties, tariffs, taxes, or other restrictions on the import or export of our products, are subject to change, and we cannot ensure that any mitigation strategies employed will remain available in the future or that we will be able to offset tariff-related costs or maintain competitive pricing of our products. The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact demand for our products, our costs, our customers, our suppliers, and the global economy, which in turn could have a material adverse effect on our business, operating results, and financial condition.

 

Further tariffs may be imposed on other imports of our products. For example, effective February 4, 2025, the U.S. announced additional tariffs for goods imported into the U.S. from Mexico, Canada, and China beginning in January through April of 2025. We cannot predict what additional actions may ultimately be taken by the U.S. or other governments with respect to tariffs or trade relations and our business may be further impacted by retaliatory trade measures taken by other countries in response to existing or future U.S. tariffs or other measures (e.g., subsidies). We may raise our prices on products subject to such tariffs to share the cost with our customers, which could harm our operating performance or cause our customers to seek alternative suppliers. In addition, we may seek to shift some of our manufacturing to other countries, which could result in additional costs and disruption to our operations. We also sell our products globally and, therefore, our export sales could be impacted by the tariffs. Any material reduction in sales may have a material adverse effect on our results of operations.

 

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

Item 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

Item 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

 

Item 5. OTHER INFORMATION

 

Item 6. EXHIBIT INDEX

 

10.1		Form of Amended and Restated Common Stock Purchase Agreement, dated as of September 19, 2024 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 20, 2024.
10.2		Form of Securities Purchase Agreement, dated as of September 13, 2024 (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed on September 16, 2024).
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	*	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101		The following financial information from Ocean Power Technologies, Inc.’s Quarterly Report on Form 10-Q for the quarter ended January 31, 2025, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets – January 31, 2025 (unaudited) and April 30, 2024, (ii) Consolidated Statements of Operations (unaudited) – three and three months ended January 31, 2025 and 2023, (iii) Consolidated Statements of Comprehensive Loss (unaudited) – three and three months ended January 31, 2025 and 2021, (iv) Consolidated Statement of Shareholders’ Equity (unaudited) – three and three months ended January 31, 2025 and 2023 (v) Consolidated Statements of Cash Flows (unaudited) –three months ended January 31, 2025 and 2023, (vi) Notes to Consolidated Financial Statements.**
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)
	*	As provided in Item 601(b)(32)(ii) of Regulation S-K, this exhibit shall not be deemed to be “filed” or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability under those sections.
	**	As provided in Rule 406T of Regulation S-T, this exhibit shall not be deemed “filed” or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability under those sections.
	##	As permitted by Regulation S-K, Item 601(b)(10)(iv) of the Securities Exchange Act of 1934, as amended, certain confidential portions of this exhibit have been redacted from the publicly filed document. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon its request.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	Ocean Power Technologies, Inc.
	(Registrant)
Date: March 17, 2025		/s/ Philipp Stratmann
	By:	Philipp Stratmann
		President and Chief Executive Officer
Date: March 17, 2025		/s/ Robert Powers
	By:	Robert Powers
		Senior Vice President and Chief Financial Officer

 

 

 

Exhibit 31.1

 

CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES-OXLEY ACT

 

I, Philipp Stratmann, certify that:

 

1.	I have reviewed this Quarterly Report on Form 10-Q of Ocean Power Technologies, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or other persons performing the equivalent functions):
(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: March 17, 2025
	/s/ Philipp Stratmann
	Philipp Stratmann
	President and Chief Executive Officer

 

 

 

 

 

Exhibit 31.2

 

CERTIFICATION PURSUANT TO SECTION 302 OF SARBANES-OXLEY ACT

 

I, Robert Powers, certify that:

 

1	I have reviewed this Quarterly Report on Form 10-Q of Ocean Power Technologies, Inc.;
2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4	The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or other persons performing the equivalent functions):
(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: March 17, 2025
	/s/ Robert Powers
	Robert Powers
	Senior Vice President and Chief Financial Officer

 

 

 

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Ocean Power Technologies, Inc. (the “Company”) for the period ended January 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Philipp Stratmann III, President and Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

 

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: March 17, 2025
	/s/ Philipp Stratmann
	Philipp Stratmann
	President and Chief Executive Officer

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Ocean Power Technologies, Inc. (the “Company”) for the period ended January 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Robert Powers, Senior Vice President and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

 

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: March 17, 2025
	/s/ Robert Powers
	Robert Powers
	Senior Vice President and Chief Financial Officer

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

v3.25.1

Cover - shares	9 Months Ended
	Jan. 31, 2025	Mar. 14, 2025
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jan. 31, 2025
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2025
Current Fiscal Year End Date	--04-30
Entity File Number	001-33417
Entity Registrant Name	OCEAN POWER TECHNOLOGIES, INC.
Entity Central Index Key	0001378140
Entity Tax Identification Number	22-2535818
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	28 ENGELHARD DRIVE
Entity Address, Address Line Two	SUITE B
Entity Address, City or Town	MONROE TOWNSHIP
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08831
City Area Code	(609)
Local Phone Number	730-0400
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		170,050,563
Common Stock $0.001 par value [Member]
Title of 12(b) Security	Common Stock $0.001 par value
Trading Symbol	OPTT
Security Exchange Name	NYSEAMER
Series A Preferred Stock Purchase Rights [Member]
Title of 12(b) Security	Series A Preferred Stock Purchase Rights
No Trading Symbol Flag	true
Security Exchange Name	NYSEAMER

v3.25.1

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024
Current assets:
Cash and cash equivalents	$ 10,026	$ 3,151
Accounts receivable, net	1,626	796
Contract assets	478	18
Inventory	3,949	4,831
Other current assets	752	1,747
Total current assets	16,831	10,543
Property and equipment, net	3,589	3,443
Intangibles, net	3,523	3,622
Right-of-use assets, net	1,772	2,405
Restricted cash, long-term	154	154
Goodwill	8,537	8,537
Total assets	34,406	28,704
Current liabilities:
Accounts payable	637	3,366
Earnout payable	350	1,130
Accrued expenses	2,240	1,787
Right-of-use liabilities, current portion	1,115	774
Contract liabilities		302
Total current liabilities	4,342	7,359
Deferred tax liability	203	203
Right-of-use liabilities, less current portion	950	1,798
Total liabilities	5,495	9,360
Commitments and contingencies (Note 14)
Shareholders’ Equity:
Preferred stock, $0.001 par value; authorized 5,000,000 shares, none issued or outstanding; 100,000 designated as Series A
Common stock, $0.001 par value; authorized 200,000,000 shares, issued 170,790,707 shares and 61,352,731 shares, respectively; outstanding 170,003,230 shares and 61,264,714 shares, respectively	170	61
Treasury stock, at cost; 787,477 and 88,017 shares, respectively	(1,018)	(369)
Additional paid-in capital	352,468	327,276
Accumulated deficit	(322,664)	(307,579)
Accumulated other comprehensive loss	(45)	(45)
Total shareholders’ equity	28,911	19,344
Total liabilities and shareholders’ equity	$ 34,406	$ 28,704

v3.25.1

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jan. 31, 2025	Apr. 30, 2024
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	170,790,707	61,352,731
Common stock, shares outstanding	170,003,230	61,264,714
Treasury stock, shares	787,477	88,017
Series A Preferred Stock [Member]
Preferred stock, shares authorized	100,000	100,000

v3.25.1

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024
Income Statement [Abstract]
Revenues	$ 825	$ 1,792	$ 4,545	$ 3,953
Cost of revenues	628	979	3,106	1,989
Gross margin	197	813	1,439	1,964
Operating expenses	6,072	8,551	15,702	24,648
Gain from change in fair value of consideration		(33)		(117)
Operating loss	(5,875)	(7,705)	(14,263)	(22,567)
Interest income, net	6	151	13	760
Other income (expense), net	(13)		4
Loss on disposition of assets		(210)		(210)
Loss on extinguishment of debt	(838)		(838)
Foreign exchange gain (loss)		1	(1)	2
Loss before income taxes	(6,720)	(7,763)	(15,085)	(22,015)
Income tax benefit		1,254		1,254
Net loss	$ (6,720)	$ (6,509)	$ (15,085)	$ (20,761)
Basic net loss per share	$ (0.04)	$ (0.11)	$ (0.13)	$ (0.35)
Diluted net loss per share	$ (0.04)	$ (0.11)	$ (0.13)	$ (0.35)
Weighted average shares used to compute basic net loss per common share	147,543,452	58,865,898	112,630,443	58,790,160
Weighted average shares used to compute diluted net loss per common share	147,543,452	58,865,898	112,630,443	58,790,160

v3.25.1

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024
Income Statement [Abstract]
Net loss	$ (6,720)	$ (6,509)	$ (15,085)	$ (20,761)
Foreign currency translation adjustment
Total comprehensive loss	$ (6,720)	$ (6,509)	$ (15,085)	$ (20,761)

v3.25.1

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Treasury Stock, Common [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Apr. 30, 2023	$ 56	$ (355)	$ 324,393	$ (280,096)	$ (45)	$ 43,953
Balance, shares at Apr. 30, 2023	56,304,642
Balance, shares at Apr. 30, 2023		(40,914)
Net loss				(20,761)		(20,761)
Share-based compensation			803			803
Common stock issued related to bonus and earnout payments	$ 3		1,247			1,250
Common stock issued related to bonus and earnout payments, shares	2,403,846
Common stock issued upon vesting of restricted stock
Common stock issued upon vesting of restricted stock, shares	786,998
Shares withheld for tax withholdings		$ (13)				(13)
Shares withheld for tax withholdings, shares		(47,103)
Issuance of common stock - Cantor At The Market offering, net of issuance costs			29			29
Issuance of common stock - Cantor At The Market offering, net of issuance costs, shares	55,604
Balance at Jan. 31, 2024	$ 59	$ (368)	326,472	(300,857)	(45)	25,261
Balance, shares at Jan. 31, 2024	59,551,090
Balance, shares at Jan. 31, 2024		(88,017)
Balance at Oct. 31, 2023	$ 59	$ (357)	326,342	(294,348)	(45)	31,651
Balance, shares at Oct. 31, 2023	58,833,756
Balance, shares at Oct. 31, 2023		(44,988)
Net loss				(6,509)		(6,509)
Share-based compensation			130			130
Common stock issued upon vesting of restricted stock
Common stock issued upon vesting of restricted stock, shares	717,332
Shares withheld for tax withholdings		$ (11)				(11)
Shares withheld for tax withholdings, shares		(43,029)
Balance at Jan. 31, 2024	$ 59	$ (368)	326,472	(300,857)	(45)	25,261
Balance, shares at Jan. 31, 2024	59,551,090
Balance, shares at Jan. 31, 2024		(88,017)
Balance at Apr. 30, 2024	$ 61	$ (369)	327,276	(307,579)	(45)	$ 19,344
Balance, shares at Apr. 30, 2024	61,352,731
Balance, shares at Apr. 30, 2024		(88,017)				88,017
Net loss				(15,085)		$ (15,085)
Share-based compensation			1,331			1,331
Common stock issued related to bonus and earnout payments	$ 3		627			630
Common stock issued related to bonus and earnout payments, shares	2,864,808
Common stock issued upon vesting of restricted stock	$ 2					2
Common stock issued upon vesting of restricted stock, shares	2,964,209
Issuance of common stock – AGP At The Market Offering, net of issuance costs	$ 67		16,812			16,879
Issuance of common stock - AGP At The Market Offering, net of issuance costs, shares	66,720,451
Issuance of common stock – Capital Raise, net of issuance costs	$ 22		2,429			2,451
Issuance of common stock - Capital Raise, net of issuance costs, shares	21,446,079
Issuance of common stock - Convertible Debt, net of issuance costs	$ 15		3,993			4,008
Issuance of common stock - Convertible Debt, net of issuance costs, shares	15,442,429
Shares withheld for tax withholdings		$ (649)				(649)
Shares withheld for tax withholdings, shares		(699,460)
Balance at Jan. 31, 2025	$ 170	$ (1,018)	352,468	(322,664)	(45)	$ 28,911
Balance, shares at Jan. 31, 2025	170,790,707
Balance, shares at Jan. 31, 2025		(787,477)				787,477
Balance at Oct. 31, 2024	$ 125	$ (369)	338,352	(315,944)	(45)	$ 22,119
Balance, shares at Oct. 31, 2024	124,683,555
Balance, shares at Oct. 31, 2024		(88,017)
Net loss				(6,720)		(6,720)
Share-based compensation			780			780
Common stock issued related to bonus and earnout payments
Common stock issued upon vesting of restricted stock	$ 2					2
Common stock issued upon vesting of restricted stock, shares	2,954,209
Issuance of common stock – AGP At The Market Offering, net of issuance costs	$ 28		9,343			9,371
Issuance of common stock - AGP At The Market Offering, net of issuance costs, shares	27,710,514
Issuance of common stock - Convertible Debt, net of issuance costs	$ 15		3,993			4,008
Issuance of common stock - Convertible Debt, net of issuance costs, shares	15,442,429
Shares withheld for tax withholdings		$ (649)				(649)
Shares withheld for tax withholdings, shares		(699,460)
Balance at Jan. 31, 2025	$ 170	$ (1,018)	$ 352,468	$ (322,664)	$ (45)	$ 28,911
Balance, shares at Jan. 31, 2025	170,790,707
Balance, shares at Jan. 31, 2025		(787,477)				787,477

v3.25.1

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024
Cash flows from operating activities:
Net loss	$ (15,085,000)	$ (20,761,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of fixed assets	610,000	286,000
Foreign exchange (loss)/gain	(1,000)	2,000
Loss on disposal of property and equipment	111,000
Amortization of intangible assets	99,000	114,000
Noncash lease expense	633,000	388,000
Accretion of discount on investments		(277,000)
Change in contingent consideration liability		(117,000)
Share-based compensation	1,331,000	803,000
Loss on extinguishment of debt	838,000
Loss on disposition of assets		210,000
Changes in operating assets and liabilities:
Accounts receivable	(830,000)	120,000
Contract assets	(460,000)	(129,000)
Inventory	366,000	(2,416,000)
Other assets	996,000	(2,933,000)
Accounts payable	(2,731,000)	512,000
Earnout payable	(150,000)	(500,000)
Accrued expenses	453,000	894,000
Right-of-use liabilities	(506,000)	(397,000)
Contract liabilities	(302,000)	(510,000)
Net cash used in operating activities	(14,628,000)	(24,711,000)
Cash flows from investing activities:
Redemptions of short-term investments		31,625,000
Purchases of short-term investments		(7,935,000)
Purchases of property and equipment	(350,000)	(1,224,000)
Net cash (used in)/provided by investing activities	(350,000)	22,466,000
Cash flows from financing activities:
Cash paid for tax withholding related to shares withheld	(649,000)	(13,000)
Proceeds from on convertible notes	3,171,000
Proceeds from issuance of common stock - At The Market offering, net of issuance costs	16,880,000	29,000
Proceeds from issuance of common stock - Capital Raise, net of issuance costs	2,451,000
Net cash provided by financing activities	21,853,000	16,000
Net increase (decrease) in cash, cash equivalents and restricted cash	6,875,000	(2,229,000)
Cash, cash equivalents and restricted cash, beginning of period	3,305,000	7,103,000
Cash, cash equivalents and restricted cash, end of period	10,180,000	4,874,000
Supplemental disclosure of noncash investing and financing activities:
Common stock issued related to bonus and earnout payments	630,000	1,250,000
Common stock issued related to conversion of convertible debt	15,000
Operating right of use asset obtained in exchange for operating lease liability		$ 1,247,000

v3.25.1

Background, Basis of Presentation and Liquidity	9 Months Ended
	Jan. 31, 2025
Accounting Policies [Abstract]
Background, Basis of Presentation and Liquidity	(1) Background, Basis of Presentation and Liquidity   (a) Background   Ocean Power Technologies, Inc. (the “Company” or “OPT”) was founded in 1984 in New Jersey, commenced business operations in 1994 and re-incorporated in Delaware in 2007. The Company provides ocean data collection and reporting, marine power, offshore communications and Maritime Domain Awareness Systems (“MDA” or “MDAS”) products and integrated solutions. The Company’s solutions focus on three major service areas: Data as a Service (“DaaS”), which includes data collected by Wave Adaptive Modular Vessel (WAM-V®) autonomous vehicles and PowerBuoy® product lines; Robotics as a Service (“RaaS”), which provides a lower cost subscription model for customers to access use of WAM-V’s®; and Power as a Service (“PaaS”), which includes PowerBuoy® products. The Company offers products and services to a wide-range of customers, including those in government and offshore energy, oil and gas, construction, wind power and other industries. The Company has been involved in the entire life cycle of product development, from product design through assembly, testing, deployment, maintenance and upgrades, while working closely with partners across the supply chain. The Company’s solutions are based on technologies that enable autonomous, zero or low carbon emitting, and cost-effective data collection, analysis, transportation, cooperation with other assets such as aerial drones, and communication. The Company’s solutions are primarily suited to ocean and other offshore environments, and support generation of actionable intelligence on a standalone basis or working with other data sources. The Company then channels the information it collects, and other communications, through control equipment linked to edge computing and cloud hosting environments. The Company’s goal is to generate most revenue from the sale or lease of products and solutions. The Company expects to continue having net cash outflows until it can generate positive cash flow from the commercialization of products and services.   (b) Basis of Presentation   The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and for interim financial information in accordance with the Securities and Exchange Commission (“SEC”), instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The interim operating results are not necessarily indicative of the results for a full year or for any other interim period. Further information on potential factors that could affect the Company’s financial results can be found in the Company’s Annual Report on Form 10-K for the year ended April 30, 2024, as filed with the SEC and elsewhere in subsequent Exchange Act filings, including this Form 10-Q. Certain amounts have been reclassified to conform to current period presentation. This reclassification had no impact on the previously reported net loss or comprehensive loss.   (c) Going Concern Uncertainty   For the nine months ended January 31, 2025, the Company incurred net losses of approximately $15.1 million and used cash in operations of approximately $14.6 million. In addition, the Company has continued to make investments to support order backlog and future growth. For the nine months ended January 31, 2025 and through the date of filing of this Form 10-Q, the Company has obtained additional capital financing through our capital raises with certain investors. Despite this, management believes the Company’s current cash, cash equivalents, and restricted cash balances at January 31, 2025 of $10.2 million may not be sufficient to fund its planned expenditures through March 2026.   The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect the Company’s future operating results and could cause actual results to vary materially from expectations include, but are not limited to, performance of its products, its ability to market and commercialize its products and new products that it may develop, access to capital, technology development, scalability of technology and production, ability to attract and retain key personnel, concentration of customers and suppliers, pending or threatened litigation, and deployment risks and integration of acquisitions.     These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The accompanying consolidated financial statements have been prepared on a basis which assumes the Company is a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from any uncertainty related to the Company’s ability to continue as a going concern. Such adjustments could be material.

v3.25.1

Summary of Significant Accounting Policies	9 Months Ended
	Jan. 31, 2025
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies   (a) Consolidation   The accompanying consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, Marine Advanced Robotics Inc. (CA), referred to herein as MAR, 3dent Technologies LLC (3Dent), Oregon Wave Energy Partners I LLC (DE), ReedSport OPT WavePark, LLC (OR) and Ocean Power Technologies Ltd. in the United Kingdom. ReedSport OPT WavePark, LLC (OR) and Oregon Wave Energy Partners I, LLC (DE) were dissolved during the first quarter of fiscal 2024. 3dent was sold in November 2023 and the consolidated financial statements for the three and nine months ended January 31, 2024 include 3dent’s results of operations for the applicable periods through the date of sale. All significant intercompany balances and transactions have been eliminated in consolidation.   (b) Use of Estimates   The preparation of the consolidated financial statements requires management of the Company to make several estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include, among other items, stock-based compensation based on actual and projected revenues, over time revenue recognition, valuation consideration related to business combinations, including contingent consideration based on actual and projected revenues, including discount rates and present values, and other assumptions and estimates used to evaluate the recoverability of long-lived assets, goodwill and other intangible assets. Actual results could differ from those estimates.   (c) Cash, Cash Equivalents, Restricted Cash and Security Agreements   Cash and Cash Equivalents   The Company considers all highly liquid investments with an original maturity of three months or less when purchased, to be cash equivalents. The Company invests excess cash in a money market account. The Company had cash, cash equivalents and restricted cash of approximately $10.2 million and $3.3 million as of January 31, 2025 and April 30, 2024, respectfully.     Restricted Cash and Security Agreements   The Company has a letter of credit agreement with Santander Bank, N.A. (“Santander”). Cash of $154,000 is on deposit at Santander and serves as security for a letter of credit issued by Santander for the lease of warehouse/office space in Monroe Township, New Jersey.   In the prior years, Santander also issued a letter of credit to subsidiaries of Enel Green Power (“EGP”) pursuant to the Company’s contracts with EGP. A letter of credit was issued in the amount of $645,000 and was reduced to $323,000 in August 2020. The letter of credit was further reduced by an additional $258,000 in January 2023, when the legacy PB3 PowerBuoy® (“PB3”) and its accompanying systems passed final acceptance testing. The remaining restricted amount of $65,000 was released in January 2024.   The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that total to the same amounts shown in the Consolidated Statements of Cash Flows.  Schedule of Cash, Cash Equivalents and Restricted Cash     January 31, 2025     April 30, 2024       (in thousands)   Cash and cash equivalents   $ 10,026     $ 3,151   Restricted cash- long term     154       154   Cash, cash equivalents, restricted cash and restricted cash equivalents   $ 10,180     $ 3,305     (d) Inventory   In accordance with Accounting Standards Codification 330 (ASC 330), inventory is stated at the lower of costs or net realizable value applicable to goods on hand. Items remain in inventory until they are shipped to the customer, at which time the costs are transferred on a FIFO basis to cost of revenues, or moved to leased assets as applicable, following the matching principle where costs and revenues are recognized in the same period. The Company has three classes of inventory; raw materials, work in process, and finished goods.   (e) Accounts Receivable   Accounts receivable are stated at the net amount expected to be collected. Amounts are usually due between 30 and 90 days after the invoice issuance. The Company is exposed to credit losses primarily on accounts receivable and contract assets related to sales to customers. If applicable, an allowance for credit losses is established to provide for the expected lifetime credit losses by evaluating factors such as customer creditworthiness, historical payment and loss experiences, current economic conditions (including geographic and political risk), and the age and status of outstanding receivables. Based on these factors, management has determined the allowance for credit losses of approximately $100,000. Expected credit losses are written off in the period in which the financial assets are no longer collectible.   The Company grants credit to its customers, generally, without collateral, under normal payment. Generally, invoicing occurs after the services are performed or control of the product has transferred to the customer. Accounts receivable represent an unconditional right to consideration arising from the Company’s performance under contracts with customers.   (f) Property and Equipment, net   Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives (three to ten years) of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Expenses for maintenance and repairs are charged to operations as incurred. Property and equipment is also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, then an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset.  Schedule of Property and Equipment Estimated Depreciable Life Description   Estimated depreciable life       Equipment   5-7 years Computer equipment & software   3 years Office furniture & fixtures   3-7 years Leasehold improvements   Shorter of the estimated useful life or lease term Leased Power Buoy assets   10 years Leased WAM-V assets   10 years   (g) Foreign Exchange Gains and Losses   Transactions denominated in a foreign currency may result in realized and unrealized foreign exchange gains or losses from exchange rate fluctuations, which are included in “Foreign exchange gain” in the accompanying Consolidated Statements of Operations.     (h) Concentration of Credit Risk   Financial instruments that potentially subject the Company to credit risk consist principally of trade accounts receivable and cash equivalents. The Company believes that its credit risk is limited because the Company’s current contracts are with entities with a reliable and predictable payment history. The Company invests its excess cash in a money market fund and does not believe that it is exposed to any significant risks related to its cash accounts, money market fund, or held-to maturity investments.   For the nine months ended January 31, 2025 and 2024, the Company had four and five customers, respectively, whose revenues accounted for at least 10% of the Company’s consolidated revenues. These revenues accounted for approximately 73% and 36% of the Company’s total revenues for the respective periods. For the three months ended January 31, 2025 and 2024, the Company had three and two customers, respectively, whose revenues accounted for at least 10% of the Company’s consolidated revenues. These revenues accounted for approximately 95% and 85% of the Company’s total revenues for the respective periods.   (i) Share-Based Compensation   Costs resulting from all share-based payment transactions are recognized in the consolidated financial statements at their fair values. The aggregate share-based compensation expense recorded in the Consolidated Statements of Operations for the nine months ended January 31, 2025 and 2024 was approximately $1.3 million and $0.8 million, respectively. For the three months ended January 31, 2025 and 2024, the aggregate share-based compensation expense was approximately $0.8 million and $0.1 million, respectively. The Company’s policy is to account for forfeitures of share-based compensation as they occur.   Additionally, upon vesting of Restricted Stock Units (“RSU”) that were granted to an employee, the employee is given the option to either pay the taxes themselves, or have enough shares of their RSU award withheld by the Company to cover the taxes incurred by the employee. In the event the employee elects to surrender shares to cover the tax implication, the Company maintains those shares in the Company’s treasury stock account. Shares held in the Company’s treasury stock account are not available for future RSU grants.   (j) Revenue Recognition   The Company accounts for revenue in accordance with Accounting Standards Codification 606 (ASC 606) for contracts with customers and Accounting Standards Codification 842 (ASC 842) for leasing arrangements. In relation to ASC 606, which states that a performance obligation is the unit of account for revenue recognition, the Company assesses the goods or services promised in a contract with a customer and identifies as a performance obligation as either: a) a good or service (or a bundle of goods or services) that is distinct; or b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. A contract may contain a single performance obligation or multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contracted transaction price to each performance obligation based upon the relative standalone selling price, which represents the price the Company would sell a promised good or service separately to a customer. The Company determines the standalone selling price based upon the facts and circumstances of each obligated good or service. When no observable standalone selling price is available, the standalone selling price is generally estimated based upon the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate profit margin.   The nature of the Company’s contracts may give rise to several types of variable consideration, including unpriced change orders, liquidated damages and penalties. Variable consideration can also arise from modifications to the scope of services. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on the assessment of legal enforceability, performance, and any other information (historical, current, and forecasted) that is reasonably available to us. There was no variable consideration as of January 31, 2025 or 2024. The Company presents shipping and handling costs, that occur after control of the promised goods or services transfer to the customer, as fulfilment costs in costs of revenues and regular shipping and handling activities charged to operating expenses.     The Company recognizes revenue when or as it satisfies a performance obligation by transferring a good or service to a customer, either (1) at a point in time or (2) over time. A good or service is transferred when or as the customer obtains control. The evaluation of whether control of each performance obligation is transferred at a point in time or over time is made at contract inception. Input measures such as costs incurred are utilized to assess progress against specific contractual performance obligations for the Company’s services. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. For the Company, the input method using costs or labor hours incurred best represents the measure of progress against the performance obligations incorporated within the contractual agreements. If estimated total costs on any contract project a loss, the Company charges the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss are known and the loss can be reasonably estimated. These loss projections are re-assessed for each subsequent reporting period until the project is complete. Such revisions could occur at any time and the effects may be material. During the nine-month period ended January 31, 2025, the Company recognized approximately $4.0 million in revenue related to performance obligations satisfied at a point in time and approximately $0.5 million in revenue related to performance obligations satisfied over time. During the three-month period ended January 31, 2025, the Company recognized approximately $0.4 million in revenue related to performance obligations satisfied at a point in time and approximately $0.4 million in revenue related to performance obligations satisfied over time.   The Company’s contracts are either cost-plus contracts, fixed-price contracts, time and material agreements, lease or service agreements. Under cost plus contracts, customers are billed for actual expenses incurred plus an agreed-upon fee.   The Company has two types of fixed-price contracts, firm fixed-price and cost-sharing. Under firm fixed-price contracts, the Company receives an agreed-upon amount for providing products and services specified in the contract, and a profit or loss is recognized depending on whether actual costs are more or less than the agreed-upon amount. Under cost-sharing contracts, the fixed amount agreed upon with the customer is only intended to fund a portion of the costs on a specific project. Under cost-sharing contracts, an amount corresponding to the revenue is recorded in cost of revenue, resulting in gross profit on these contracts of zero. The Company reports its disaggregation of revenue by contract type since this method best represents the Company’s business. For the nine-month periods ended January 31, 2025 and 2024, the majority of the Company’s contracts were classified as firm fixed-price and the remainder were cost-sharing.   The Company’s contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations. The Company’s accounts receivable balance is made up entirely of customer contract-related balances.   The Company’s revenue also includes revenue from certain contracts which do not fall within the scope of ASC 606, but under the scope of ASC 842, “Leases”. At inception of a contract for those classified under ASC 842, the Company classifies leases as either operating or financing in accordance with the authoritative accounting guidance contained within ASC 842. If the direct financing or sales-type classification criteria are met, then the lease is accounted for as a finance lease. All others are treated as operating leases. The Company recognizes revenue from operating lease arrangements generally on a straight-line basis over the lease term, or as agreed upon in-use days are utilized, which is presented in Revenues in the Consolidated Statement of Operations. The Company also enters into lease arrangements for its PowerBuoys® and Wave Adaptive Modular Vessels (“WAM-V®”) with certain customers. Revenue related to multiple-element arrangements is allocated to lease and non-lease elements based on their relative standalone selling prices or expected cost plus a margin approach. Lease elements generally include a PowerBuoy®, WAM-V®, and components, while non-lease elements, which the Company expects to become more prevalent, generally include engineering, monitoring and support services. In the lease arrangement, the customer may be provided with an option to extend the lease term or purchase the leased buoy or WAM-V® at some point during and/or at the end of the lease term.     As of January 31, 2025, the Company’s total remaining performance obligations, also referred to as backlog, totalled $7.5 million as compared to $3.3 million as of January 31, 2024.   Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined that collectability of any portion of the contract value is not probable, an analysis of variable consideration will be performed using either the most likely amount or expected value method to determine the amount of revenue that must be constrained until the scenario causing the variability has been resolved.   The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or costs of revenue.   The table below represents the total revenue recognized under ASC 606 and ASC 842 for the three and nine months ended January 31, 2025 and 2024.  Schedule of Revenue Recognized Under ASC 606 and ASC 842     ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       Nine months ended January 31, 2025     Nine months ended January 31, 2024       ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       (in thousands)     (in thousands)   Product Line:                                                 WAM-V   $ 3,996     $ 206     $ 4,202     $ 1,625     $ 896     $ 2,521   Buoy     343       —       343       950       —       950   Services     —       —       —       482       —       482   Total   $ 4,339     $ 206     $ 4,545     $ 3,057     $ 896     $ 3,953                                                     Region:                                                 North and South America   $ 3,046     $ —     $ 3,046     $ 3,025     $ 750     $ 3,775   EMEA     1,291       206       1,497       32       146       178   Asia and Australia     2       —       2       —       —       —   Total   $ 4,339     $ 206     $ 4,545     $ 3,057     $ 896     $ 3,953         ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       Three months ended January 31, 2025     Three months ended January 31, 2024       ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       (in thousands)     (in thousands)   Product Line:                                                 WAM-V   $ 580     $ 74     $ 654     $ 1,085     $ 387     $ 1,472   Buoy     171       —       171       320       —       320   Services     —       —       —       —       —       —   Total   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792                                                     Region:                                                 North and South America   $ 326     $ —     $ 326     $ 1,391     $ 338     $ 1,729   EMEA     425       74       499       14       49       63   Asia and Australia     —       —       —       —       —       —   Total   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792   Revenue   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792       (k) Net Loss per Common Share   Basic and diluted net loss per share for all periods presented is computed by dividing net loss by the weighted average number of shares of common stock and common stock equivalents outstanding during the period. Due to the Company’s net losses, potentially dilutive securities, consisting of options to purchase shares of common stock, warrants on common stock and unvested RSUs issued to employees and non-employee directors, were excluded from the diluted loss per share calculation due to their anti-dilutive effect.   In computing diluted net loss per share on the Consolidated Statements of Operations, warrants on common stock, options to purchase shares of common stock and unvested RSUs issued to employees and non-employee directors, totalling 20,835,027 and 6,094,714 as of January 31, 2025 and 2024, respectively, were excluded from each of the computations as the effect would have been anti-dilutive due to the net loss for the periods. Share purchase rights, which include a contingency, are not included in the calculation until the contingency is resolved.   (l) Intangibles, net   Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Intangible assets, including patents, are amortized over the estimated useful life of the asset on a basis that approximates the pattern of economic benefit. The patents, trade name and customer relationship intangibles are being amortized over 20, 12 and 10 years respectively, which is consistent with the estimated pattern of economic benefit of the assets. The trademark is not subject to amortization.   Intangible assets are reviewed for impairment if indicators of potential impairment exist. There were no indications of potential impairment of intangible assets for either the nine months ended January 31, 2025 or 2024.   (m) Goodwill   Goodwill is assessed for impairment using a qualitative or quantitative approach. The Company performs an annual impairment test of goodwill and further periodic tests to the extent indicators of impairment develop between annual impairment tests. There were no indications of potential impairment of goodwill identified for the nine months ended January 31, 2025 and 2024. Where the Company uses a qualitative analysis, it considers factors that include historical financial performance, macroeconomic and industry conditions, and the legal and regulatory environment. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is also performed. The quantitative assessment requires an analysis of several estimates including future cash flows or income consistent with management’s strategic business plans, annual revenue growth rates and the selection of assumptions underlying a discount rate (weighted average cost of capital) based on market data available at the time to determine the fair value of the Company. If the fair value is less than the carrying amounts, an impairment charge for the difference is recorded. The Company acquired goodwill as part of its purchase of MAR. Management performed its annual qualitative assessment in fiscal year 2024 and determined that it is more likely than not that no goodwill impairment existed as of April 30, 2024.   (n) Income Taxes   Income taxes are accounted for under (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) utilizing the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carry forwards are expected to be recovered, settled or utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. If such event occurs, a valuation allowance is recorded. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.     The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon examination. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses, to the extent incurred. Refer to Note 15 for additional disclosure.   In order to monetize their attributes, the Company has historically sold the Net Operating Losses (NOL’s) and R&D credit generated in New Jersey. The Company has elected to recognize the gain on the sale as a component of tax expense at the time of the sale. Prior to the time of sale, the Company has elected to not factor the expected sales when assessing the realizability of the related deferred tax assets.   (o) Accumulated Other Comprehensive Loss   The functional currency for the Company’s foreign operations is the applicable local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for balance sheet accounts using the exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. The unrealized gains or losses resulting from such translation are included in Accumulated Other Comprehensive Loss within Shareholders’ Equity. For the nine months ended January 31, 2025 and 2024, there were no amounts recorded to other comprehensive loss due to limited foreign operations.   (p) Warranty   The Company does not include a right of return on its products other than rights related to standard warranty provisions that permit repair or replacement of defective goods. Warranty expense incurred to date has not been material.   (q) Product Development   Costs related to product development activities by the Company are expensed as incurred. The Company had approximately $2.6 million and $5.5 million in product development expense for the nine months ended January 31, 2025 and 2024, respectively. The Company had approximately $1.3 million and $1.5 million in product development expense for the three months ended January 31, 2025 and 2024, respectively.   (r) Recently Issued Accounting Standards   In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, which improves the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, although early adoption is permitted. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating what the potential impact of adopting this ASU 2023-09 could have on our consolidated financial statements and disclosures.   In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU improves financial reporting by requiring disclosure of incremental segment information. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company expects to provide incremental qualitative segment-related disclosures beginning with the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025.   In November 2024, the FASB issued ASU No. 2024-3, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This ASU improves the disclosures about a public business entity’s expenses and addresses requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The new guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating what the potential impact of adopting this ASU 2024-03 could have on our consolidated financial statements and disclosures.

v3.25.1

Accounts Receivable, Contract Assets and Contract Liabilities	9 Months Ended
	Jan. 31, 2025
Accounts Receivable Contract Assets And Contract Liabilities
Accounts Receivable, Contract Assets and Contract Liabilities	(3) Accounts Receivable, Contract Assets and Contract Liabilities   The following provides further details on the balance sheet accounts of accounts receivable, contract assets and contract liabilities from contracts with customers:  Schedule of Accounts Receivable, Contract Assets and Contract Liabilities     January 31, 2025     April 30, 2024     April 30, 2023       (in thousands)   Accounts receivable   $ 1,626     $ 796     $ 745   Contract assets   $ 478     $ 18     $ 152   Contract liabilities   $ —     $ 302     $ 1,378       Contract Assets   Contract assets include unbilled amounts typically resulting from arrangements whereby the right to payment is conditional on completing additional tasks or services for a performance obligation. The increase in contract assets from year end is primarily a result of consulting services projects for which revenue was recognized in the current period but has not yet been billed. No impairments to contract assets were incurred during the nine months ended January 31, 2025 and 2024.   Significant changes in the contract assets balances during the period were as follows:  Schedule of Significant Changes in Contract Assets     Nine months ended January 31, 2025     Nine months ended January 31, 2024       (in thousands)   Transferred to receivables from contract assets recognized   $ (600 )   $ (1,469 ) Revenue recognized and not billed     1,060       1,598   Net change in contract assets   $ 460     $ 129     Contract Liabilities   Contract liabilities consist of amounts invoiced to customers in excess of revenue recognized. The decrease in contract liabilities from year end is primarily due to converting previous payments collected to recognized revenue in the current year.   Significant changes in the contract liabilities balances during the period are as follows:  Schedule of Significant Changes in Contract Liabilities     Nine months ended January 31, 2025     Nine months ended January 31, 2024       (in thousands)   Revenue recognized   $ (1,830 )   $ (1,312 ) Payments collected for which revenue has not been recognized     1,528       802   Net change in contract liabilities   $ (302 )   $ (510 )

v3.25.1

Inventory	9 Months Ended
	Jan. 31, 2025
Inventory Disclosure [Abstract]
Inventory	(4) Inventory   The Company holds inventory related to the production of its WAM-V® and PowerBuoy® products.  Schedule of Inventory     January 31, 2025     April 30, 2024       (in thousands)   Raw Materials   $ 3,254     $ 4,298   Work in Process     695       397   Finished Products     —       136   Inventory, net   $ 3,949     $ 4,831     The Company’s raw materials balance represents the majority of the inventory as the Company orders parts in quantity to fill orders. Work in process and finished products typically represent smaller portions of inventory as the Company does not historically hold finished products with the exception of assets transitioning to the lease fleet. The Company typically ships finished products as they are completed.

v3.25.1

Other Current Assets	9 Months Ended
	Jan. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	(5) Other Current Assets   Other current assets consisted of the following at January 31, 2025 and April 30, 2024:  Schedule of Other Current Assets     January 31, 2025     April 30, 2024       (in thousands)   Prepaid insurance   $ 195     $ 202   Prepaid software & licenses     236       224   Prepaid sales & marketing     28       124   Prepaid project costs     35       578   Prepaid inventory materials     47       414   Prepaid expenses- other     211       205   Total other current assets   $ 752     $ 1,747

v3.25.1

Property and Equipment, net	9 Months Ended
	Jan. 31, 2025
Property, Plant and Equipment [Abstract]
Property and Equipment, net	(6) Property and Equipment, net   The components of property and equipment, net as of January 31, 2025 and April 30, 2024 consisted of the following:  Schedule of Components of Property and Equipment, Net     January 31, 2025     April 30, 2024       (in thousands)   Equipment   $ 1,569     $ 1,530   Computer equipment & software     790       790   Office furniture & equipment     425       422   Leasehold improvements     683       683   Leased WAM-V’s     1,912       1,547   Leased Buoys     794       444   Property and equipment, gross     6,173       5,416   Less: accumulated depreciation     (2,584 )     (1,973 ) Property and equipment, net   $ 3,589     $ 3,443     Leased WAM-V’s and buoys represent fixed assets that are associated with underlying operating leases with customers or for customer demonstration as discussed in the revenue recognition section related to ASC 842.   Depreciation expense was approximately $610,000 and $286,000 for the nine-month periods ended January 31, 2025 and 2024, respectively. Depreciation expense was approximately $155,000 and $114,000 for the three-month periods ended January 31, 2025 and 2024, respectively.

v3.25.1

Intangible Assets	9 Months Ended
	Jan. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	(7) Intangible Assets   The components of intangible assets, net as of January 31, 2025 and April 30, 2024 consisted of the following:  Schedule of Components of Intangible Assets     January 31, 2025     April 30, 2024       (in thousands)   Patents   $ 2,729     $ 2,729   Trademarks     2,769       2,769   Intangible assets, gross     5,498       5,498   Accumulated amortization     (1,975 )     (1,876 ) Intangible assets, net   $ 3,523     $ 3,622     Amortization expense was approximately $99,000 and $114,000 for the nine-month periods ended January 31, 2025 and 2024, respectively. Amortization expense was approximately $33,000 and $34,000 for the three-month periods ended January 31, 2025 and 2024, respectively.

v3.25.1

Goodwill	9 Months Ended
	Jan. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	(8) Goodwill   Goodwill in the amount of $8.5 million was recognized in November 2021 related to the acquisition of MAR. There have been no additions to, or any impairment of, goodwill during the nine-month periods ended January 31, 2025 and 2024.

v3.25.1

Leases	9 Months Ended
	Jan. 31, 2025
Leases
Leases	(9) Leases   Lessor Information   As of January 31, 2025 and April 30, 2024, the Company had three WAM-V’s leased to customers which have been classified as operating leases per accounting guidance contained within ASC Topic 842, “Leases”, respectively. The remaining term on these operating leases is less than 2 years.   Lessee Information   Right-of-use assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, the Company uses the incremental borrowing rate based on the information available at the effective date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The renewal options have not been included in the lease term as they are not reasonably certain of exercise. The Company’s operating leases consist of leases for office facilities and warehouse space. Lease expense for minimum lease payments is recognized on a straight- line basis over the lease term and consists of interest on the lease liability and the amortization of the right of use asset.   The Company has a lease for its facility located in Monroe Township, New Jersey that is used as warehouse/production space and the Company’s principal offices and corporate headquarters. In February 2024, the Company extended the lease for its main headquarters in Monroe, NJ to April 30, 2026. The lease is classified as an operating lease and is included in right-of-use assets, net, right-of-use liabilities – current portion, and right-of-use liabilities- less current portion on the Company’s Consolidated Balance Sheets.     The Company also has a lease for office space located in Richmond, California. This lease commenced in April of 2023 and will expire in June of 2028. The lease is classified as an operating lease and is included in right-of-use assets, right-of-use liabilities- current and right-of-use liabilities- long-term on the Company’s Consolidated Balance Sheets.   Variable lease expenses, if any, are recorded as incurred. The operating lease cash flow payments for the nine months ended January 31, 2025 and 2024 were $679,000 and $564,000, respectively. The operating lease cash flow payments for the three months ended January 31, 2025 and 2024 were $314,000 and $193,000, respectively.   The components of lease expense which are included in our operating expenses in the Consolidated Statement of Operations for the three and nine months ended January 31, 2025 and 2024 were as follows:   Schedule of Operating Lease Costs       2025     2024     2025     2024       Three months ended January 31,     Nine months ended January 31,       2025     2024     2025     2024       (in thousands)     (in thousands)   Operating lease cost   $ 260     $ 162     $ 782     $ 478   Short-term lease cost     8       20       24       60   Total lease cost   $ 268     $ 182     $ 806     $ 538     Information related to the Company’s right-of use assets and lease liabilities as of January 31, 2025 was as follows:  Schedule of Right-of use Assets and Lease Liabilities     January 31, 2025       (in thousands)   Operating lease:         Operating right-of-use assets, net   $ 1,772             Right-of-use liabilities- current   $ 1,115   Right-of-use liabilities- long term     950   Total lease liabilities   $ 2,065             Weighted average remaining lease term- operating leases     2.26 years   Weighted average discount rate- operating leases     8.4 %     Total remaining lease payments under the Company’s operating leases are as follows:  Schedule of Future Minimum Lease Payments Under Operating Lease     January 31, 2025       (in thousands)   Remainder of fiscal year 2025   $ 308   2026     1,847   2027     329   2028     333   2029     28   thereafter     —   Total future minimum lease payments   $ 2,845   Less imputed interest     (780 ) Total   $ 2,065

v3.25.1

Accrued Expenses	9 Months Ended
	Jan. 31, 2025
Payables and Accruals [Abstract]
Accrued Expenses	(10) Accrued Expenses   Accrued expenses consisted of the following at January 31, 2025 and April 30, 2024:  Schedule of Accrued Expenses     January 31, 2025     April 30, 2024       (in thousands)   Employee incentive payments   $ 1,022     $ 1,271   Accrued salary and benefits     995       369   Professional fees     10       —   Other     213       147   Accrued expenses total   $ 2,240     $ 1,787

v3.25.1

Warrants	9 Months Ended
	Jan. 31, 2025
Warrants
Warrants	(11) Warrants   Equity Classified Warrants   The underwritten public offering from April 2019 included the issuance of common stock warrants to purchase up to 4,927,680 shares of common stock that had an exercise price of $3.85 per share and expired five years from the issuance date. As of April 30, 2024, common warrants to purchase 732,500 shares of the common stock had been exercised. The remaining warrants expired prior to April 30, 2024.

v3.25.1

Share-Based Compensation	9 Months Ended
	Jan. 31, 2025
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	(12) Share-Based Compensation   In 2015, upon approval by the Company’s shareholders, the Company’s 2015 Omnibus Incentive Plan (the “2015 Plan”) became effective. A total of 1,332,036 shares were authorized for issuance under the 2015 Omnibus Incentive Plan, including shares available for awards under the 2006 Stock Incentive Plan remaining at the time that plan terminated, or that were subject to awards under the 2006 Stock Incentive Plan that thereafter terminated by reason of expiration, forfeiture, cancellation or otherwise. If any award under the 2006 Stock Incentive Plan or 2015 Plan expires, is cancelled, terminates unexercised or is forfeited, those shares become again available for grant under the 2015 Plan. Most recently in January 2025, the shareholders approved an amendment and restatement of the 2015 Plan to, among other things, provide an aggregate increase to the 2015 Plan of 20,000,000 shares resulting in total shares authorized for issuance of 27,282,036 as of January 31, 2025. The 2015 Plan will now terminate in January 2035, but is subject to earlier termination as provided in the 2015 Plan.   On January 18, 2018, the Company’s Board of Directors adopted the Company’s Employment Inducement Incentive Award Plan (the “2018 Inducement Plan”) pursuant to which the Company reserved 25,000 shares of common stock for issuance under the Inducement Plan in accordance with Rule 711(a) of the NYSE American Company Guide. On February 9, 2022, the 2018 Inducement Plan was amended to increase the authorized shares by 250,000 to 275,000.   Stock Options   The Company estimates the fair value of each stock option award granted with service-based vesting requirements, using the Black-Scholes option pricing model, assuming no dividends, and using weighted average valuation assumptions. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant commensurate with the expected life of the award. The expected life (estimated period of time outstanding) of the stock options granted was estimated using the “simplified” method as permitted by the SEC’s Staff Accounting Bulletin No. 110, Share-Based Payment. Expected volatility is based on the Company’s historical volatility over the expected life of the stock option granted. The Company did not grant any stock options during the nine months ended January 31, 2025 and 2024, respectively.   A summary of stock options under the stock incentive plans is detailed in the following table.  Schedule of Stock Option Activity     Shares Underlying Options     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term (In Years)   Outstanding as of April 30, 2024     734,543     $ 2.12       7.6   Granted     —     $ —           Exercised     —     $ —           Cancelled/forfeited     (251,201 )   $ 1.20           Outstanding as of January 31, 2025     483,342     $ 2.59       6.6   Exercisable as of January 31, 2025     425,440     $ 2.85       6.4     As of January 31, 2025, the total intrinsic value of outstanding and exercisable options was approximately zero. As of January 31, 2025, approximately 58,000 options were unvested, which had an intrinsic value of zero and a weighted average remaining contractual term of 8.0 years. There was approximately $38,000 and $50,000 of total recognized compensation cost related to stock options during each of the nine months ended January 31, 2025 and 2024, respectively. There was approximately $12,000 and ($49,000) of total recognized compensation cost related to stock options during each of the three months ended January 31, 2025 and 2024, respectively. As of January 31, 2025, there was approximately $35,000 of total unrecognized compensation cost related to non-vested stock options granted under the plans. This cost is expected to be recognized over a weighted-average period of 1.0 year.     Performance Stock Units   As of January 31, 2025, there were no performance stock units outstanding. As of April 30, 2023 there were 66,667 units outstanding which were all cancelled during the quarter ended July 31, 2023. There was approximately zero and $43,000 of total recognized compensation cost related to performance stock units during the nine months ended January 31, 2025 and 2024, respectively.   Restricted Stock Units   Compensation expense for RSUs is generally recorded based on the market value on the date of grant and recognized rateably over the associated service and performance period. During the nine months ended January 31, 2025 and 2024, the Company granted 21,903,000 and 183,000 shares, respectively, that were subject to both service-based and market-based vesting requirements.   A summary of unvested RSU’s under the Stock Incentive Plans is as follows:  Schedule of Non-vested Restricted Stock Activity     Number of Shares     Weighted Average Price per Share   Unvested at April 30, 2024     5,124,529     $ 0.38   Granted/Adjusted     21,079,453     $ 0.99   Vested and issued     (2,964,280 )   $     Cancelled/forfeited     (778,069 )   $ 0.30   Unvested at January 31, 2025     22,461,633     $ 0.90     There was approximately $1,293,000 and $710,000 of total recognized compensation cost related to RSUs for the nine months ended January 31, 2025 and 2024, respectively. There was approximately $768,000 and $179,000 of total recognized compensation cost related to RSUs for the three months ended January 31, 2025 and 2024, respectively. As of January 31, 2025, there was approximately $17,480,000 of unrecognized compensation cost remaining related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of 1.7 years.

v3.25.1

Fair Value Measurements	9 Months Ended
	Jan. 31, 2025
Fair Value Disclosures [Abstract]
Fair Value Measurements	(13) Fair Value Measurements   ASC Topic 820, “Fair Value Measurements” states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities that are measured at fair value are reported using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable input and minimizes the use of unobservable inputs. The following is a description of the three hierarchy levels.   Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.     Level 2 Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly.     Level 3 Inputs that are unobservable for the asset or liability.     Disclosure of Fair Values   The Company’s financial instruments that are not re-measured at fair value include cash, cash equivalents, restricted cash, accounts receivable, other assets, contract assets and liabilities, deposits, accounts payable, and accrued expenses. The carrying value is equal to their fair value due to the short-term nature of these accounts.   During the nine months ended January 2025, the Company paid $150,000 in cash and issued 2,864,808 in shares worth $0.5 million to partially satisfy the final earnout period related to its acquisition of MAR in November 2021.   Transfers into or out of any hierarchy level are recognized at the end of the reporting period in which the transfers occurred. There were no transfers between any hierarchy levels during either of the three and nine months ended January 31, 2025 and 2024, respectively.

v3.25.1

Equity	9 Months Ended
	Jan. 31, 2025
Equity [Abstract]
Equity	(14) Equity   On March 21, 2024, the Company entered into an At-the-Market Offering Agreement with an aggregate offering price of up to $7.0 million (the “2023 ATM Facility”). On August 30, 2024 the aggregate offering price under the 2023 ATM Facility was increased to approximately $16.0 million. It was then reduced to approximately $2.9 million in September 2024 and increased again to approximately $60.0 million in December 2024. As of January 31, 2025, the Company had received proceeds of approximately $16.9 million under this facility and an additional $0.9 million between January 31, 2025 and March 16, 2025.   First Registered Direct Offering   On September 13, 2024, the Company entered into a common stock purchase agreement (the “First RDO Purchase Agreement”) with an institutional accredited investor for the sale (the “First Offering”) by the Company of shares (the “First RDO Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), for aggregate gross proceeds of $1.5 million before deducting offering expenses payable by the Company. The First RDO Shares were issued upon execution of a funding notice by the Company to the investor. The First RDO Shares were issued at a price per share equal to 80% of the lowest traded price of the Common Stock ten days prior to the closing date for the purchase of the shares. In addition, the Company has the right, but not the obligation, to sell to this investor up to an additional $3.5 million of shares of Common Stock on the same pricing terms.   The First RDO Purchase Agreement contained customary representations, warranties and agreements by the Company and customary conditions for closing. Pursuant to the First RDO Purchase Agreement, the Company also agreed to indemnify the purchaser against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained therein. The First RDO Purchase Agreement included a waiver to the Tax Benefits Preservation Plan as well as a covenant on the investor to vote their shares of common stock in favor of all Company director nominees and other proxy proposals, but only for so long as the investor owns more than 5% of the outstanding stock.   Second Registered Direct Offering   On September 13, 2024, the Company also entered into a common stock purchase agreement (the “Second RDO Purchase Agreement”) with a separate institutional accredited investor for the sale (the “Second Offering”) by the Company of shares (the “Second RDO Shares”) of the Common Stock, for aggregate gross proceeds of $1.5 million, before deducting offering expenses payable by the Company. The Second RDO Shares were issued upon issuance of a funding notice by the Company to the investor. The Second RDO Shares were issued at a price per share equal to 80% of the lowest traded price of the Common Stock five days prior to the closing date for the purchase of the shares. In addition, the Company has the right, but not the obligation, to sell to this investor up to an additional $2.5 million of shares of Common Stock on the same pricing terms.   The Second RDO Purchase Agreement contains customary representations, warranties and agreements by the Company and customary conditions to closing. Pursuant to the Second RDO Purchase Agreement, the Company also agreed to indemnify the purchaser against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained therein. The Second RDO Purchase Agreement included a waiver to the Tax Benefits Preservation Plan as well as a covenant on the investor to vote their shares of common stock in favor of all Company director nominees and other proxy proposals, but only for so long as the investor owns more than 5% of the outstanding stock.   The Company used the net proceeds from the First RDO Purchase Agreement and the Second RDO Purchase Agreement to build additional products and solutions to meet market demand, further advance the development of new products and solutions, engage in corporate development and merger and acquisition activities, for working capital needs, capital expenditures, repayment or refinancing of indebtedness, repurchases and redemptions of securities, and for other general corporate purposes.   Convertible Debt Offering   On December 20, 2024, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with an institutional investor (the “Investor”) under which the Company agreed to issue and sell, in one or more registered public offerings by the Company directly to the Investor (the “Offering”), senior convertible notes for up to an aggregate principal amount of $54.0 million (the “Notes”) that will be convertible into shares of the Company’s common stock. On December 20, 2024 (the “Initial Closing Date”), the Company issued and sold to the Investor a Note in the original principal amount of $4.0 million (the “Initial Note”). Upon our filing of one or more additional prospectus supplements, and our satisfaction of certain other conditions, the Securities Purchase Agreement contemplates additional closings of up to $50 million in aggregate principal amount of additional Notes, upon mutual agreement of the Company and the Investor. The Securities Purchase Agreement contains customary representations, warranties and covenants. It also grants the Investor the right to participate in certain future equity and equity-linked transactions of the Company from the Initial Closing Date through the 3-year anniversary thereof, as well as certain anti-dilution rights applicable to the Notes. No Note may be converted to the extent that such conversion would cause the then holder of such Note to become the beneficial owner of more than 4.99%, or, at the option of such holder, 9.99% of the then outstanding common stock, after giving effect to such conversion (the “Beneficial Ownership Cap”).   The Initial Note was issued with an original issue discount of 9.5%, resulting in $3.6 million of proceeds to the Company, before fees and expenses of approximately $0.4 million. Each Note bore interest at a rate of 12.5% per annum, which compounded on the first calendar day of each calendar quarter and increased the principal amount of the Notes on a dollar-for-dollar basis. Upon the occurrence and during the continuance of an event of default, the interest rate on the Notes will increase to 17.5% per annum. Unless earlier converted, the Notes will mature on the eighteen-month anniversary of their respective issuance dates. All amounts due under the Notes were convertible at any time, in whole or in part, and subject to the Beneficial Ownership Cap, at the option of the holders into shares of common stock at a conversion price equal to the lower of the closing price of the common stock on the trading day prior to each closing plus a 15% premium (the “Reference Price”) or 90% of the volume weighted average price of the common stock during the seven trading days ending and including the trading day immediately preceding the delivery or deemed delivery of the applicable conversion notice. Upon the satisfaction of certain conditions, we could have prepaid outstanding Notes upon not less than 20 business days nor more than 30 business days’ written notice by paying an amount equal to the face value of the Notes at a premium of 15%.     The Initial Note contained certain terms and conditions which management evaluated as potential embedded derivatives. Management determined that the optional conversion feature is not clearly and closely related to the debt host instrument, and therefore required bifurcation and separate accounting. We determined the fair value of the embedded derivative as approximately $0.4 million and recorded it as a discount to the debt and a derivative liability on the date of issue.   The Investor converted all of the outstanding principal and accrued interest under the Initial Note to common stock during December 2024, resulting in the issuance of 15,442,429 common shares at an average conversion price of $0.26 per share. Interest expense during the time the Initial Note was outstanding was immaterial. The Company recognized a loss on extinguishment resulting from the conversion, which is presented as a separate line item in the Company’s Consolidated Statements of Operations.

v3.25.1

Commitments and Contingencies	9 Months Ended
	Jan. 31, 2025
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(15) Commitments and Contingencies   Spain Income Tax Audit   The Company underwent an income tax audit in Spain for the period from 2011 to 2014, when its Spanish branch was closed. On July 30, 2018, the Spanish tax inspector concluded that although there was no tax owed in light of losses reported, the Company’s Spanish branch owed penalties for failure to properly account for the income associated with the funding grant. During the year ended April 30, 2022, the Company received notice from the Spanish Central Economic and Administrative Tribunal (“Spanish Tax Administration”) that it agreed with the inspector and ruled that the Company owes the full amount of the penalty in the amount of €279,870 or approximately $331,000. On January 25, 2021, the Company paid the Spanish Tax Administration €279,870. Notwithstanding that payment, on April 30, 2022, the Company filed its appeal of the decision of the Central Court to the Spanish National Court. On February 3, 2025, the Spanish National Court denied the Company’s appeal, and the Company does not believe it has further available grounds to appeal this decision to the Spanish Supreme Court. Accordingly, this matter is closed.   Litigation with Paragon Technologies, Inc.   On October 10, 2023, Paragon Technologies, Inc. filed a complaint in the Court of Chancery of the State of Delaware against the Company, and the members of its Board of Directors, claiming certain breaches of their fiduciary duties. The complaint sought only injunctive relief against the Company, and not monetary damages, and therefore the financial exposure derived therein was limited to applicable legal fees and costs at that stage, which was material to FY’ 24. On November 2, 2023, Paragon sought leave to amend its complaint to add additional claims. The Court granted this motion for leave to amend, provided that the Court would not delay the hearing on the matters raised in the initial complaint, which was set for November 28, 2023. This hearing on the initial complaint was held and on November 30, 2023, the Court ruled in favor of the Company and denied Paragon’s motion for injunctive relief. The status of the in the amended complaint is still pending. On February 28, 2024, the Company successfully finalized its 2023 annual meeting of stockholders in spite of Paragon’s repeated attempts to contest the meeting. In an August 12, 2024 Press Release and its Form 10-Q report for the second quarter of 2024, Paragon announced that it was no longer pursuing litigation against the Company. Pursuant to a Court order dated January 9, 2025, Paragon was required “to file a status report within 30 days. Otherwise, the case will be dismissed under Rule 41(e).” Because Paragon did not file a status report by February 10, 2025, the Company anticipates that the Court will dismiss the case, with prejudice, due to Paragon’s failure to prosecute.   In February 2025, the Company received a shareholder demand under Section 220 of the General Corporation Law of the State of Delaware for inspection of certain books and records relating to prior equity grants made to officers and directors under the 2015 Plan in January 2023, February 2024 and January 2025. The Company is reviewing and considering the demand and engaging with counsel for the shareholder. The Company has not recorded any material liability for these matters as of January 31, 2025 as it cannot estimate the ultimate outcome at this time.   General Legal Matters   From time to time, the Company is involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable, and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary to make the consolidated financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its consolidated financial statements.

v3.25.1

Income Taxes	9 Months Ended
	Jan. 31, 2025
Income Tax Disclosure [Abstract]
Income Taxes	(16) Income Taxes   Uncertain Tax Positions   The Company accounts for income taxes in accordance with ASC 740. The guidance requires the Company to recognize in its consolidated financial statements the impact of a tax position if that position is more likely than not to be sustained upon examination, based on the technical merits of the position. The Company has no current or deferred tax due to current and projected losses for the year. The Company previously appealed the results of the income tax audit in Spain for the period from 2011 to 2014, when the Company’s Spanish branch was closed (see Note 14). On February 3, 2025, the Spanish National Court denied the Company’s appeal, and the Company does not believe it has further available grounds to appeal this decision to the Spanish Supreme Court. Accordingly, this matter is closed. At January 31, 2025, the Company had no uncertain tax positions. The Company does not expect any material increase or decrease in its income tax expense or benefit in the next twelve months, related to examinations or uncertain tax positions. Net operating loss and credit carry forwards since inception remain open to examination by taxing authorities and will continue to remain open for a period of time after utilization.   Tax Preservation Plan   In June 2023, in order to protect the Company’s valuable tax assets related to its net operating losses from being limited or lost under Section 382 of the Internal Revenue Code, the Company adopted a Tax Benefits Preservation Plan (the “Plan”). Pursuant to the Plan, the Board declared a dividend of one preferred share purchase right (each, a “Right”) for each outstanding share of common stock of the Company. The dividend was distributed to stockholders of record as of the close of business on July 11, 2023. The Plan substantially diminishes the risk that the Company’s ability to utilize its net operating loss carryovers to reduce potential future federal income tax obligations may become substantially limited. The Plan is intended to act as a deterrent to any person or group acquiring beneficial ownership of 4.99% or more of the outstanding common stock without approval by potentially subjecting any such person or group to significant dilution. The Plan was approved by shareholders by a non-binding advisory vote at the Company’s Annual Meeting held on February 28, 2024.   The Company determined the grant date fair value of the Rights using an option-pricing model. The amount was immaterial to the consolidated financial statements and deemed to be de minimis, and accordingly was not recorded to the financial statements.   Sale of New Jersey NOL’s and R&D Tax Credits   In order to monetize their attributes, the Company has historically sold the Net Operating Losses (NOL’s) and R&D credit generated in New Jersey. In September 2024 the Company was notified that it received a preliminary award of approximately $1.1 million for New Jersey State for the sale of the fiscal year 2024 NOL. The final allocation is expected to be determined during the fourth quarter of OPT’s 2025 fiscal year when the sale of the NOL’s and credit are finalized. The Company has elected to recognize the gain on the sale as a component of tax expense at the time of the sale. Historically the Company has received over 90% of the amount of the preliminary award upon final sale.

v3.25.1

Operating Segments and Geographic Information	9 Months Ended
	Jan. 31, 2025
Segment Reporting [Abstract]
Operating Segments and Geographic Information	(17) Operating Segments and Geographic Information   The Company’s business consists of one reportable segment as the revenues associated with its different business lines are not material enough to justify segment reporting or to make it meaningful to investors, and the Company’s chief operating decision maker does not view the Company’s operations on a segment basis. The Company operates worldwide, with its U.S. operations in New Jersey and California and one operating subsidiary in the UK. Revenues and expenses are generally attributed to the operating unit that bills the customers. During each of the three and nine months ended January 31, 2025 and 2024, the Company’s primary business operations were in North America, South America, EMEA and Asia/Australia.

v3.25.1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jan. 31, 2025
Accounting Policies [Abstract]
Consolidation	(a) Consolidation   The accompanying consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries, Marine Advanced Robotics Inc. (CA), referred to herein as MAR, 3dent Technologies LLC (3Dent), Oregon Wave Energy Partners I LLC (DE), ReedSport OPT WavePark, LLC (OR) and Ocean Power Technologies Ltd. in the United Kingdom. ReedSport OPT WavePark, LLC (OR) and Oregon Wave Energy Partners I, LLC (DE) were dissolved during the first quarter of fiscal 2024. 3dent was sold in November 2023 and the consolidated financial statements for the three and nine months ended January 31, 2024 include 3dent’s results of operations for the applicable periods through the date of sale. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	(b) Use of Estimates   The preparation of the consolidated financial statements requires management of the Company to make several estimates and assumptions relating to the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include, among other items, stock-based compensation based on actual and projected revenues, over time revenue recognition, valuation consideration related to business combinations, including contingent consideration based on actual and projected revenues, including discount rates and present values, and other assumptions and estimates used to evaluate the recoverability of long-lived assets, goodwill and other intangible assets. Actual results could differ from those estimates.
Cash, Cash Equivalents, Restricted Cash and Security Agreements	(c) Cash, Cash Equivalents, Restricted Cash and Security Agreements   Cash and Cash Equivalents   The Company considers all highly liquid investments with an original maturity of three months or less when purchased, to be cash equivalents. The Company invests excess cash in a money market account. The Company had cash, cash equivalents and restricted cash of approximately $10.2 million and $3.3 million as of January 31, 2025 and April 30, 2024, respectfully.     Restricted Cash and Security Agreements   The Company has a letter of credit agreement with Santander Bank, N.A. (“Santander”). Cash of $154,000 is on deposit at Santander and serves as security for a letter of credit issued by Santander for the lease of warehouse/office space in Monroe Township, New Jersey.   In the prior years, Santander also issued a letter of credit to subsidiaries of Enel Green Power (“EGP”) pursuant to the Company’s contracts with EGP. A letter of credit was issued in the amount of $645,000 and was reduced to $323,000 in August 2020. The letter of credit was further reduced by an additional $258,000 in January 2023, when the legacy PB3 PowerBuoy® (“PB3”) and its accompanying systems passed final acceptance testing. The remaining restricted amount of $65,000 was released in January 2024.   The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that total to the same amounts shown in the Consolidated Statements of Cash Flows.  Schedule of Cash, Cash Equivalents and Restricted Cash     January 31, 2025     April 30, 2024       (in thousands)   Cash and cash equivalents   $ 10,026     $ 3,151   Restricted cash- long term     154       154   Cash, cash equivalents, restricted cash and restricted cash equivalents   $ 10,180     $ 3,305
Inventory	(d) Inventory   In accordance with Accounting Standards Codification 330 (ASC 330), inventory is stated at the lower of costs or net realizable value applicable to goods on hand. Items remain in inventory until they are shipped to the customer, at which time the costs are transferred on a FIFO basis to cost of revenues, or moved to leased assets as applicable, following the matching principle where costs and revenues are recognized in the same period. The Company has three classes of inventory; raw materials, work in process, and finished goods.
Accounts Receivable	(e) Accounts Receivable   Accounts receivable are stated at the net amount expected to be collected. Amounts are usually due between 30 and 90 days after the invoice issuance. The Company is exposed to credit losses primarily on accounts receivable and contract assets related to sales to customers. If applicable, an allowance for credit losses is established to provide for the expected lifetime credit losses by evaluating factors such as customer creditworthiness, historical payment and loss experiences, current economic conditions (including geographic and political risk), and the age and status of outstanding receivables. Based on these factors, management has determined the allowance for credit losses of approximately $100,000. Expected credit losses are written off in the period in which the financial assets are no longer collectible.   The Company grants credit to its customers, generally, without collateral, under normal payment. Generally, invoicing occurs after the services are performed or control of the product has transferred to the customer. Accounts receivable represent an unconditional right to consideration arising from the Company’s performance under contracts with customers.
Property and Equipment, net	(f) Property and Equipment, net   Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives (three to ten years) of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Expenses for maintenance and repairs are charged to operations as incurred. Property and equipment is also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, then an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset.  Schedule of Property and Equipment Estimated Depreciable Life Description   Estimated depreciable life       Equipment   5-7 years Computer equipment & software   3 years Office furniture & fixtures   3-7 years Leasehold improvements   Shorter of the estimated useful life or lease term Leased Power Buoy assets   10 years Leased WAM-V assets   10 years
Foreign Exchange Gains and Losses	(g) Foreign Exchange Gains and Losses   Transactions denominated in a foreign currency may result in realized and unrealized foreign exchange gains or losses from exchange rate fluctuations, which are included in “Foreign exchange gain” in the accompanying Consolidated Statements of Operations.
Concentration of Credit Risk	(h) Concentration of Credit Risk   Financial instruments that potentially subject the Company to credit risk consist principally of trade accounts receivable and cash equivalents. The Company believes that its credit risk is limited because the Company’s current contracts are with entities with a reliable and predictable payment history. The Company invests its excess cash in a money market fund and does not believe that it is exposed to any significant risks related to its cash accounts, money market fund, or held-to maturity investments.   For the nine months ended January 31, 2025 and 2024, the Company had four and five customers, respectively, whose revenues accounted for at least 10% of the Company’s consolidated revenues. These revenues accounted for approximately 73% and 36% of the Company’s total revenues for the respective periods. For the three months ended January 31, 2025 and 2024, the Company had three and two customers, respectively, whose revenues accounted for at least 10% of the Company’s consolidated revenues. These revenues accounted for approximately 95% and 85% of the Company’s total revenues for the respective periods.
Share-Based Compensation	(i) Share-Based Compensation   Costs resulting from all share-based payment transactions are recognized in the consolidated financial statements at their fair values. The aggregate share-based compensation expense recorded in the Consolidated Statements of Operations for the nine months ended January 31, 2025 and 2024 was approximately $1.3 million and $0.8 million, respectively. For the three months ended January 31, 2025 and 2024, the aggregate share-based compensation expense was approximately $0.8 million and $0.1 million, respectively. The Company’s policy is to account for forfeitures of share-based compensation as they occur.   Additionally, upon vesting of Restricted Stock Units (“RSU”) that were granted to an employee, the employee is given the option to either pay the taxes themselves, or have enough shares of their RSU award withheld by the Company to cover the taxes incurred by the employee. In the event the employee elects to surrender shares to cover the tax implication, the Company maintains those shares in the Company’s treasury stock account. Shares held in the Company’s treasury stock account are not available for future RSU grants.
Revenue Recognition	(j) Revenue Recognition   The Company accounts for revenue in accordance with Accounting Standards Codification 606 (ASC 606) for contracts with customers and Accounting Standards Codification 842 (ASC 842) for leasing arrangements. In relation to ASC 606, which states that a performance obligation is the unit of account for revenue recognition, the Company assesses the goods or services promised in a contract with a customer and identifies as a performance obligation as either: a) a good or service (or a bundle of goods or services) that is distinct; or b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. A contract may contain a single performance obligation or multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contracted transaction price to each performance obligation based upon the relative standalone selling price, which represents the price the Company would sell a promised good or service separately to a customer. The Company determines the standalone selling price based upon the facts and circumstances of each obligated good or service. When no observable standalone selling price is available, the standalone selling price is generally estimated based upon the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate profit margin.   The nature of the Company’s contracts may give rise to several types of variable consideration, including unpriced change orders, liquidated damages and penalties. Variable consideration can also arise from modifications to the scope of services. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include such amounts in the transaction price are based largely on the assessment of legal enforceability, performance, and any other information (historical, current, and forecasted) that is reasonably available to us. There was no variable consideration as of January 31, 2025 or 2024. The Company presents shipping and handling costs, that occur after control of the promised goods or services transfer to the customer, as fulfilment costs in costs of revenues and regular shipping and handling activities charged to operating expenses.     The Company recognizes revenue when or as it satisfies a performance obligation by transferring a good or service to a customer, either (1) at a point in time or (2) over time. A good or service is transferred when or as the customer obtains control. The evaluation of whether control of each performance obligation is transferred at a point in time or over time is made at contract inception. Input measures such as costs incurred are utilized to assess progress against specific contractual performance obligations for the Company’s services. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services to be provided. For the Company, the input method using costs or labor hours incurred best represents the measure of progress against the performance obligations incorporated within the contractual agreements. If estimated total costs on any contract project a loss, the Company charges the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss are known and the loss can be reasonably estimated. These loss projections are re-assessed for each subsequent reporting period until the project is complete. Such revisions could occur at any time and the effects may be material. During the nine-month period ended January 31, 2025, the Company recognized approximately $4.0 million in revenue related to performance obligations satisfied at a point in time and approximately $0.5 million in revenue related to performance obligations satisfied over time. During the three-month period ended January 31, 2025, the Company recognized approximately $0.4 million in revenue related to performance obligations satisfied at a point in time and approximately $0.4 million in revenue related to performance obligations satisfied over time.   The Company’s contracts are either cost-plus contracts, fixed-price contracts, time and material agreements, lease or service agreements. Under cost plus contracts, customers are billed for actual expenses incurred plus an agreed-upon fee.   The Company has two types of fixed-price contracts, firm fixed-price and cost-sharing. Under firm fixed-price contracts, the Company receives an agreed-upon amount for providing products and services specified in the contract, and a profit or loss is recognized depending on whether actual costs are more or less than the agreed-upon amount. Under cost-sharing contracts, the fixed amount agreed upon with the customer is only intended to fund a portion of the costs on a specific project. Under cost-sharing contracts, an amount corresponding to the revenue is recorded in cost of revenue, resulting in gross profit on these contracts of zero. The Company reports its disaggregation of revenue by contract type since this method best represents the Company’s business. For the nine-month periods ended January 31, 2025 and 2024, the majority of the Company’s contracts were classified as firm fixed-price and the remainder were cost-sharing.   The Company’s contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations. The Company’s accounts receivable balance is made up entirely of customer contract-related balances.   The Company’s revenue also includes revenue from certain contracts which do not fall within the scope of ASC 606, but under the scope of ASC 842, “Leases”. At inception of a contract for those classified under ASC 842, the Company classifies leases as either operating or financing in accordance with the authoritative accounting guidance contained within ASC 842. If the direct financing or sales-type classification criteria are met, then the lease is accounted for as a finance lease. All others are treated as operating leases. The Company recognizes revenue from operating lease arrangements generally on a straight-line basis over the lease term, or as agreed upon in-use days are utilized, which is presented in Revenues in the Consolidated Statement of Operations. The Company also enters into lease arrangements for its PowerBuoys® and Wave Adaptive Modular Vessels (“WAM-V®”) with certain customers. Revenue related to multiple-element arrangements is allocated to lease and non-lease elements based on their relative standalone selling prices or expected cost plus a margin approach. Lease elements generally include a PowerBuoy®, WAM-V®, and components, while non-lease elements, which the Company expects to become more prevalent, generally include engineering, monitoring and support services. In the lease arrangement, the customer may be provided with an option to extend the lease term or purchase the leased buoy or WAM-V® at some point during and/or at the end of the lease term.     As of January 31, 2025, the Company’s total remaining performance obligations, also referred to as backlog, totalled $7.5 million as compared to $3.3 million as of January 31, 2024.   Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined that collectability of any portion of the contract value is not probable, an analysis of variable consideration will be performed using either the most likely amount or expected value method to determine the amount of revenue that must be constrained until the scenario causing the variability has been resolved.   The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or costs of revenue.   The table below represents the total revenue recognized under ASC 606 and ASC 842 for the three and nine months ended January 31, 2025 and 2024.  Schedule of Revenue Recognized Under ASC 606 and ASC 842     ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       Nine months ended January 31, 2025     Nine months ended January 31, 2024       ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       (in thousands)     (in thousands)   Product Line:                                                 WAM-V   $ 3,996     $ 206     $ 4,202     $ 1,625     $ 896     $ 2,521   Buoy     343       —       343       950       —       950   Services     —       —       —       482       —       482   Total   $ 4,339     $ 206     $ 4,545     $ 3,057     $ 896     $ 3,953                                                     Region:                                                 North and South America   $ 3,046     $ —     $ 3,046     $ 3,025     $ 750     $ 3,775   EMEA     1,291       206       1,497       32       146       178   Asia and Australia     2       —       2       —       —       —   Total   $ 4,339     $ 206     $ 4,545     $ 3,057     $ 896     $ 3,953         ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       Three months ended January 31, 2025     Three months ended January 31, 2024       ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       (in thousands)     (in thousands)   Product Line:                                                 WAM-V   $ 580     $ 74     $ 654     $ 1,085     $ 387     $ 1,472   Buoy     171       —       171       320       —       320   Services     —       —       —       —       —       —   Total   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792                                                     Region:                                                 North and South America   $ 326     $ —     $ 326     $ 1,391     $ 338     $ 1,729   EMEA     425       74       499       14       49       63   Asia and Australia     —       —       —       —       —       —   Total   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792   Revenue   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792
Net Loss per Common Share	(k) Net Loss per Common Share   Basic and diluted net loss per share for all periods presented is computed by dividing net loss by the weighted average number of shares of common stock and common stock equivalents outstanding during the period. Due to the Company’s net losses, potentially dilutive securities, consisting of options to purchase shares of common stock, warrants on common stock and unvested RSUs issued to employees and non-employee directors, were excluded from the diluted loss per share calculation due to their anti-dilutive effect.   In computing diluted net loss per share on the Consolidated Statements of Operations, warrants on common stock, options to purchase shares of common stock and unvested RSUs issued to employees and non-employee directors, totalling 20,835,027 and 6,094,714 as of January 31, 2025 and 2024, respectively, were excluded from each of the computations as the effect would have been anti-dilutive due to the net loss for the periods. Share purchase rights, which include a contingency, are not included in the calculation until the contingency is resolved.
Intangibles, net	(l) Intangibles, net   Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Intangible assets, including patents, are amortized over the estimated useful life of the asset on a basis that approximates the pattern of economic benefit. The patents, trade name and customer relationship intangibles are being amortized over 20, 12 and 10 years respectively, which is consistent with the estimated pattern of economic benefit of the assets. The trademark is not subject to amortization.   Intangible assets are reviewed for impairment if indicators of potential impairment exist. There were no indications of potential impairment of intangible assets for either the nine months ended January 31, 2025 or 2024.
Goodwill	(m) Goodwill   Goodwill is assessed for impairment using a qualitative or quantitative approach. The Company performs an annual impairment test of goodwill and further periodic tests to the extent indicators of impairment develop between annual impairment tests. There were no indications of potential impairment of goodwill identified for the nine months ended January 31, 2025 and 2024. Where the Company uses a qualitative analysis, it considers factors that include historical financial performance, macroeconomic and industry conditions, and the legal and regulatory environment. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is also performed. The quantitative assessment requires an analysis of several estimates including future cash flows or income consistent with management’s strategic business plans, annual revenue growth rates and the selection of assumptions underlying a discount rate (weighted average cost of capital) based on market data available at the time to determine the fair value of the Company. If the fair value is less than the carrying amounts, an impairment charge for the difference is recorded. The Company acquired goodwill as part of its purchase of MAR. Management performed its annual qualitative assessment in fiscal year 2024 and determined that it is more likely than not that no goodwill impairment existed as of April 30, 2024.
Income Taxes	(n) Income Taxes   Income taxes are accounted for under (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) utilizing the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss and tax credit carry forwards are expected to be recovered, settled or utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. If such event occurs, a valuation allowance is recorded. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.     The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon examination. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses, to the extent incurred. Refer to Note 15 for additional disclosure.   In order to monetize their attributes, the Company has historically sold the Net Operating Losses (NOL’s) and R&D credit generated in New Jersey. The Company has elected to recognize the gain on the sale as a component of tax expense at the time of the sale. Prior to the time of sale, the Company has elected to not factor the expected sales when assessing the realizability of the related deferred tax assets.
Accumulated Other Comprehensive Loss	(o) Accumulated Other Comprehensive Loss   The functional currency for the Company’s foreign operations is the applicable local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for balance sheet accounts using the exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. The unrealized gains or losses resulting from such translation are included in Accumulated Other Comprehensive Loss within Shareholders’ Equity. For the nine months ended January 31, 2025 and 2024, there were no amounts recorded to other comprehensive loss due to limited foreign operations.
Warranty	(p) Warranty   The Company does not include a right of return on its products other than rights related to standard warranty provisions that permit repair or replacement of defective goods. Warranty expense incurred to date has not been material.
Product Development	(q) Product Development   Costs related to product development activities by the Company are expensed as incurred. The Company had approximately $2.6 million and $5.5 million in product development expense for the nine months ended January 31, 2025 and 2024, respectively. The Company had approximately $1.3 million and $1.5 million in product development expense for the three months ended January 31, 2025 and 2024, respectively.
Recently Issued Accounting Standards	(r) Recently Issued Accounting Standards   In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, which improves the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, although early adoption is permitted. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating what the potential impact of adopting this ASU 2023-09 could have on our consolidated financial statements and disclosures.   In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU improves financial reporting by requiring disclosure of incremental segment information. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company expects to provide incremental qualitative segment-related disclosures beginning with the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025.   In November 2024, the FASB issued ASU No. 2024-3, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This ASU improves the disclosures about a public business entity’s expenses and addresses requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The new guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating what the potential impact of adopting this ASU 2024-03 could have on our consolidated financial statements and disclosures.

v3.25.1

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Jan. 31, 2025
Accounting Policies [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that total to the same amounts shown in the Consolidated Statements of Cash Flows.  Schedule of Cash, Cash Equivalents and Restricted Cash     January 31, 2025     April 30, 2024       (in thousands)   Cash and cash equivalents   $ 10,026     $ 3,151   Restricted cash- long term     154       154   Cash, cash equivalents, restricted cash and restricted cash equivalents   $ 10,180     $ 3,305
Schedule of Property and Equipment Estimated Depreciable Life	Schedule of Property and Equipment Estimated Depreciable Life Description   Estimated depreciable life       Equipment   5-7 years Computer equipment & software   3 years Office furniture & fixtures   3-7 years Leasehold improvements   Shorter of the estimated useful life or lease term Leased Power Buoy assets   10 years Leased WAM-V assets   10 years
Schedule of Revenue Recognized Under ASC 606 and ASC 842	The table below represents the total revenue recognized under ASC 606 and ASC 842 for the three and nine months ended January 31, 2025 and 2024.  Schedule of Revenue Recognized Under ASC 606 and ASC 842     ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       Nine months ended January 31, 2025     Nine months ended January 31, 2024       ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       (in thousands)     (in thousands)   Product Line:                                                 WAM-V   $ 3,996     $ 206     $ 4,202     $ 1,625     $ 896     $ 2,521   Buoy     343       —       343       950       —       950   Services     —       —       —       482       —       482   Total   $ 4,339     $ 206     $ 4,545     $ 3,057     $ 896     $ 3,953                                                     Region:                                                 North and South America   $ 3,046     $ —     $ 3,046     $ 3,025     $ 750     $ 3,775   EMEA     1,291       206       1,497       32       146       178   Asia and Australia     2       —       2       —       —       —   Total   $ 4,339     $ 206     $ 4,545     $ 3,057     $ 896     $ 3,953         ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       Three months ended January 31, 2025     Three months ended January 31, 2024       ASC 606     ASC 842     Total     ASC 606     ASC 842     Total       (in thousands)     (in thousands)   Product Line:                                                 WAM-V   $ 580     $ 74     $ 654     $ 1,085     $ 387     $ 1,472   Buoy     171       —       171       320       —       320   Services     —       —       —       —       —       —   Total   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792                                                     Region:                                                 North and South America   $ 326     $ —     $ 326     $ 1,391     $ 338     $ 1,729   EMEA     425       74       499       14       49       63   Asia and Australia     —       —       —       —       —       —   Total   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792   Revenue   $ 751     $ 74     $ 825     $ 1,405     $ 387     $ 1,792

v3.25.1

Accounts Receivable, Contract Assets and Contract Liabilities (Tables)	9 Months Ended
	Jan. 31, 2025
Accounts Receivable Contract Assets And Contract Liabilities
Schedule of Accounts Receivable, Contract Assets and Contract Liabilities	The following provides further details on the balance sheet accounts of accounts receivable, contract assets and contract liabilities from contracts with customers:  Schedule of Accounts Receivable, Contract Assets and Contract Liabilities     January 31, 2025     April 30, 2024     April 30, 2023       (in thousands)   Accounts receivable   $ 1,626     $ 796     $ 745   Contract assets   $ 478     $ 18     $ 152   Contract liabilities   $ —     $ 302     $ 1,378
Schedule of Significant Changes in Contract Assets	Significant changes in the contract assets balances during the period were as follows:  Schedule of Significant Changes in Contract Assets     Nine months ended January 31, 2025     Nine months ended January 31, 2024       (in thousands)   Transferred to receivables from contract assets recognized   $ (600 )   $ (1,469 ) Revenue recognized and not billed     1,060       1,598   Net change in contract assets   $ 460     $ 129
Schedule of Significant Changes in Contract Liabilities	Significant changes in the contract liabilities balances during the period are as follows:  Schedule of Significant Changes in Contract Liabilities     Nine months ended January 31, 2025     Nine months ended January 31, 2024       (in thousands)   Revenue recognized   $ (1,830 )   $ (1,312 ) Payments collected for which revenue has not been recognized     1,528       802   Net change in contract liabilities   $ (302 )   $ (510 )

v3.25.1

Inventory (Tables)	9 Months Ended
	Jan. 31, 2025
Inventory Disclosure [Abstract]
Schedule of Inventory	The Company holds inventory related to the production of its WAM-V® and PowerBuoy® products.  Schedule of Inventory     January 31, 2025     April 30, 2024       (in thousands)   Raw Materials   $ 3,254     $ 4,298   Work in Process     695       397   Finished Products     —       136   Inventory, net   $ 3,949     $ 4,831

v3.25.1

Other Current Assets (Tables)	9 Months Ended
	Jan. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Current Assets	Other current assets consisted of the following at January 31, 2025 and April 30, 2024:  Schedule of Other Current Assets     January 31, 2025     April 30, 2024       (in thousands)   Prepaid insurance   $ 195     $ 202   Prepaid software & licenses     236       224   Prepaid sales & marketing     28       124   Prepaid project costs     35       578   Prepaid inventory materials     47       414   Prepaid expenses- other     211       205   Total other current assets   $ 752     $ 1,747

v3.25.1

Property and Equipment, net (Tables)	9 Months Ended
	Jan. 31, 2025
Property, Plant and Equipment [Abstract]
Schedule of Components of Property and Equipment, Net	The components of property and equipment, net as of January 31, 2025 and April 30, 2024 consisted of the following:  Schedule of Components of Property and Equipment, Net     January 31, 2025     April 30, 2024       (in thousands)   Equipment   $ 1,569     $ 1,530   Computer equipment & software     790       790   Office furniture & equipment     425       422   Leasehold improvements     683       683   Leased WAM-V’s     1,912       1,547   Leased Buoys     794       444   Property and equipment, gross     6,173       5,416   Less: accumulated depreciation     (2,584 )     (1,973 ) Property and equipment, net   $ 3,589     $ 3,443

v3.25.1

Intangible Assets (Tables)	9 Months Ended
	Jan. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Components of Intangible Assets	The components of intangible assets, net as of January 31, 2025 and April 30, 2024 consisted of the following:  Schedule of Components of Intangible Assets     January 31, 2025     April 30, 2024       (in thousands)   Patents   $ 2,729     $ 2,729   Trademarks     2,769       2,769   Intangible assets, gross     5,498       5,498   Accumulated amortization     (1,975 )     (1,876 ) Intangible assets, net   $ 3,523     $ 3,622

v3.25.1

Leases (Tables)	9 Months Ended
	Jan. 31, 2025
Leases
Schedule of Operating Lease Costs	The components of lease expense which are included in our operating expenses in the Consolidated Statement of Operations for the three and nine months ended January 31, 2025 and 2024 were as follows:   Schedule of Operating Lease Costs       2025     2024     2025     2024       Three months ended January 31,     Nine months ended January 31,       2025     2024     2025     2024       (in thousands)     (in thousands)   Operating lease cost   $ 260     $ 162     $ 782     $ 478   Short-term lease cost     8       20       24       60   Total lease cost   $ 268     $ 182     $ 806     $ 538
Schedule of Right-of use Assets and Lease Liabilities	Information related to the Company’s right-of use assets and lease liabilities as of January 31, 2025 was as follows:  Schedule of Right-of use Assets and Lease Liabilities     January 31, 2025       (in thousands)   Operating lease:         Operating right-of-use assets, net   $ 1,772             Right-of-use liabilities- current   $ 1,115   Right-of-use liabilities- long term     950   Total lease liabilities   $ 2,065             Weighted average remaining lease term- operating leases     2.26 years   Weighted average discount rate- operating leases     8.4 %
Schedule of Future Minimum Lease Payments Under Operating Lease	Total remaining lease payments under the Company’s operating leases are as follows:  Schedule of Future Minimum Lease Payments Under Operating Lease     January 31, 2025       (in thousands)   Remainder of fiscal year 2025   $ 308   2026     1,847   2027     329   2028     333   2029     28   thereafter     —   Total future minimum lease payments   $ 2,845   Less imputed interest     (780 ) Total   $ 2,065

v3.25.1

Accrued Expenses (Tables)	9 Months Ended
	Jan. 31, 2025
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following at January 31, 2025 and April 30, 2024:  Schedule of Accrued Expenses     January 31, 2025     April 30, 2024       (in thousands)   Employee incentive payments   $ 1,022     $ 1,271   Accrued salary and benefits     995       369   Professional fees     10       —   Other     213       147   Accrued expenses total   $ 2,240     $ 1,787

v3.25.1

Share-Based Compensation (Tables)	9 Months Ended
	Jan. 31, 2025
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	A summary of stock options under the stock incentive plans is detailed in the following table.  Schedule of Stock Option Activity     Shares Underlying Options     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term (In Years)   Outstanding as of April 30, 2024     734,543     $ 2.12       7.6   Granted     —     $ —           Exercised     —     $ —           Cancelled/forfeited     (251,201 )   $ 1.20           Outstanding as of January 31, 2025     483,342     $ 2.59       6.6   Exercisable as of January 31, 2025     425,440     $ 2.85       6.4
Schedule of Non-vested Restricted Stock Activity	A summary of unvested RSU’s under the Stock Incentive Plans is as follows:  Schedule of Non-vested Restricted Stock Activity     Number of Shares     Weighted Average Price per Share   Unvested at April 30, 2024     5,124,529     $ 0.38   Granted/Adjusted     21,079,453     $ 0.99   Vested and issued     (2,964,280 )   $     Cancelled/forfeited     (778,069 )   $ 0.30   Unvested at January 31, 2025     22,461,633     $ 0.90

v3.25.1

Background, Basis of Presentation and Liquidity (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024	Apr. 30, 2024
Accounting Policies [Abstract]
Net loss	$ 6,720	$ 6,509	$ 15,085	$ 20,761
Cash used in operations			14,628	$ 24,711
Current cash, cash equivalents, and restricted cash	$ 10,180		$ 10,180		$ 3,305

v3.25.1

Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024
Accounting Policies [Abstract]
Cash and cash equivalents	$ 10,026	$ 3,151
Restricted cash- long term	154	154
Cash, cash equivalents, restricted cash and restricted cash equivalents	$ 10,180	$ 3,305

v3.25.1

Schedule of Property and Equipment Estimated Depreciable Life (Details)	Jan. 31, 2025
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated depreciable life (Years)	5 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated depreciable life (Years)	7 years
Computer Equipment & Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated depreciable life (Years)	3 years
Office Furniture & Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated depreciable life (Years)	3 years
Office Furniture & Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated depreciable life (Years)	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration]	Useful Life, Lease Term [Member]
Leased Power Buoys Assets [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated depreciable life (Years)	10 years
Leased WAM-V Assets [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated depreciable life (Years)	10 years

v3.25.1

Schedule of Revenue Recognized Under ASC 606 and ASC 842 (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024
Product Information [Line Items]
Revenue	$ 825	$ 1,792	$ 4,545	$ 3,953
North and South America [Member]
Product Information [Line Items]
Revenue	326	1,729	3,046	3,775
EMEA [Member]
Product Information [Line Items]
Revenue	499	63	1,497	178
Asia and Australia [Member]
Product Information [Line Items]
Revenue			2
Region [Member]
Product Information [Line Items]
Revenue	825	1,792	4,545	3,953
WAM-V [Member]
Product Information [Line Items]
Revenue	654	1,472	4,202	2,521
Buoy [Member]
Product Information [Line Items]
Revenue	171	320	343	950
Service [Member]
Product Information [Line Items]
Revenue				482
Product [Member]
Product Information [Line Items]
Revenue	825	1,792	4,545	3,953
Accounting Standards Update 2014-09 [Member] | North and South America [Member]
Product Information [Line Items]
Revenue	326	1,391	3,046	3,025
Accounting Standards Update 2014-09 [Member] | EMEA [Member]
Product Information [Line Items]
Revenue	425	14	1,291	32
Accounting Standards Update 2014-09 [Member] | Asia and Australia [Member]
Product Information [Line Items]
Revenue			2
Accounting Standards Update 2014-09 [Member] | Region [Member]
Product Information [Line Items]
Revenue	751	1,405	4,339	3,057
Accounting Standards Update 2014-09 [Member] | WAM-V [Member]
Product Information [Line Items]
Revenue	580	1,085	3,996	1,625
Accounting Standards Update 2014-09 [Member] | Buoy [Member]
Product Information [Line Items]
Revenue	171	320	343	950
Accounting Standards Update 2014-09 [Member] | Service [Member]
Product Information [Line Items]
Revenue				482
Accounting Standards Update 2014-09 [Member] | Product [Member]
Product Information [Line Items]
Revenue	751	1,405	4,339	3,057
Accounting Standards Update 2016-02 [Member] | North and South America [Member]
Product Information [Line Items]
Revenue		338		750
Accounting Standards Update 2016-02 [Member] | EMEA [Member]
Product Information [Line Items]
Revenue	74	49	206	146
Accounting Standards Update 2016-02 [Member] | Asia and Australia [Member]
Product Information [Line Items]
Revenue
Accounting Standards Update 2016-02 [Member] | Region [Member]
Product Information [Line Items]
Revenue	74	387	206	896
Accounting Standards Update 2016-02 [Member] | WAM-V [Member]
Product Information [Line Items]
Revenue	74	387	206	896
Accounting Standards Update 2016-02 [Member] | Buoy [Member]
Product Information [Line Items]
Revenue
Accounting Standards Update 2016-02 [Member] | Service [Member]
Product Information [Line Items]
Revenue
Accounting Standards Update 2016-02 [Member] | Product [Member]
Product Information [Line Items]
Revenue	$ 74	$ 387	$ 206	$ 896

v3.25.1

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024	Apr. 30, 2024	Jan. 31, 2023	Aug. 31, 2020
Product Information [Line Items]
Cash, cash equivalents and restricted cash	$ 10,180,000		$ 10,180,000		$ 3,305,000
Allowance for credit losses	100,000		100,000
Share-based compensation expense	800,000	$ 100,000	1,331,000	$ 803,000
Revenues	825,000	1,792,000	4,545,000	3,953,000
Revenue remaining performance obligation	7,500,000	3,300,000	$ 7,500,000	$ 3,300,000
Antidilutive securities excluded from computation of diluted net loss per share			20,835,027	6,094,714
Product development expense	$ 1,300,000	$ 1,500,000	$ 2,600,000	$ 5,500,000
Patents [Member]
Product Information [Line Items]
Intangible asset estimated lives	20 years		20 years
Trade Names [Member]
Product Information [Line Items]
Intangible asset estimated lives	12 years		12 years
Customer Relationships [Member]
Product Information [Line Items]
Intangible asset estimated lives	10 years		10 years
Transferred at Point in Time [Member]
Product Information [Line Items]
Revenues	$ 400,000		$ 4,000,000.0
Transferred over Time [Member]
Product Information [Line Items]
Revenues	$ 400,000		$ 500,000
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four Customers [Member]
Product Information [Line Items]
Concentration risk percentage			73.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Five Customers [Member]
Product Information [Line Items]
Concentration risk percentage				36.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customers [Member]
Product Information [Line Items]
Concentration risk percentage	95.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member]
Product Information [Line Items]
Concentration risk percentage		85.00%
Santander Bank [Member]
Product Information [Line Items]
Deposits	$ 154,000		$ 154,000
Letters of credit issued amount							$ 645,000
Letters of credit outstanding amount		$ 65,000		$ 65,000		$ 258,000	$ 323,000

v3.25.1

Schedule of Accounts Receivable, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024	Apr. 30, 2023
Accounts Receivable Contract Assets And Contract Liabilities
Accounts receivable	$ 1,626	$ 796	$ 745
Contract assets	478	18	152
Contract liabilities		$ 302	$ 1,378

v3.25.1

Schedule of Significant Changes in Contract Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024
Accounts Receivable Contract Assets And Contract Liabilities
Transferred to receivables from contract assets recognized	$ (600)	$ (1,469)
Revenue recognized and not billed	1,060	1,598
Net change in contract assets	$ 460	$ 129

v3.25.1

Schedule of Significant Changes in Contract Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024
Accounts Receivable Contract Assets And Contract Liabilities
Revenue recognized	$ (1,830)	$ (1,312)
Payments collected for which revenue has not been recognized	1,528	802
Net change in contract liabilities	$ (302)	$ (510)

v3.25.1

Schedule of Inventory (Details) - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024
Inventory Disclosure [Abstract]
Raw Materials	$ 3,254	$ 4,298
Work in Process	695	397
Finished Products		136
Inventory, net	$ 3,949	$ 4,831

v3.25.1

Schedule of Other Current Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 195	$ 202
Prepaid software & licenses	236	224
Prepaid sales & marketing	28	124
Prepaid project costs	35	578
Prepaid inventory materials	47	414
Prepaid expenses- other	211	205
Total other current assets	$ 752	$ 1,747

v3.25.1

Schedule of Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 6,173	$ 5,416
Less: accumulated depreciation	(2,584)	(1,973)
Property and equipment, net	3,589	3,443
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,569	1,530
Computer Equipment & Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	790	790
Office Furniture & Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	425	422
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	683	683
Leased WAM-V's [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,912	1,547
Leased Buoys [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 794	$ 444

v3.25.1

Property and Equipment, net (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 155,000	$ 114,000	$ 610,000	$ 286,000

v3.25.1

Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Patents	$ 2,729	$ 2,729
Trademarks	2,769	2,769
Intangible assets, gross	5,498	5,498
Accumulated amortization	(1,975)	(1,876)
Intangible assets, net	$ 3,523	$ 3,622

v3.25.1

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 33,000	$ 34,000	$ 99,000	$ 114,000

v3.25.1

Goodwill (Details Narrative) - USD ($)	9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Apr. 30, 2024	Nov. 30, 2021
Goodwill	$ 8,537,000		$ 8,537,000
Impairment of goodwill	$ 0	$ 0
Marine Advanced Robotics, Inc. [Member]
Goodwill				$ 8,500,000

v3.25.1

Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024
Leases
Operating lease cost	$ 260	$ 162	$ 782	$ 478
Short-term lease cost	8	20	24	60
Total lease cost	$ 268	$ 182	$ 806	$ 538

v3.25.1

Schedule of Right-of use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024
Leases
Operating right-of-use assets, net	$ 1,772	$ 2,405
Right-of-use liabilities- current	1,115	774
Right-of-use liabilities- long term	950	$ 1,798
Total lease liabilities	$ 2,065
Weighted average remaining lease term- operating leases	2 years 3 months 3 days
Weighted average discount rate- operating leases	8.40%

v3.25.1

Schedule of Future Minimum Lease Payments Under Operating Lease (Details) $ in Thousands	Jan. 31, 2025 USD ($)
Leases
Remainder of fiscal year 2025	$ 308
2026	1,847
2027	329
2028	333
2029	28
thereafter
Total future minimum lease payments	2,845
Less imputed interest	(780)
Total	$ 2,065

v3.25.1

Leases (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024	Apr. 30, 2024
Leases
Operating lease remaining term	2 years		2 years		2 years
Operating lease limitations on use			This lease commenced in April of 2023 and will expire in June of 2028.
Operating lease expense	$ 314,000	$ 193,000	$ 679,000	$ 564,000

v3.25.1

Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Jan. 31, 2025	Apr. 30, 2024
Payables and Accruals [Abstract]
Employee incentive payments	$ 1,022	$ 1,271
Accrued salary and benefits	995	369
Professional fees	10
Other	213	147
Accrued expenses total	$ 2,240	$ 1,787

v3.25.1

Warrants (Details Narrative) - $ / shares	Apr. 30, 2024	Apr. 30, 2019
Subsidiary, Sale of Stock [Line Items]
Warrants to purchase common stock exercised	732,500
Underwritten Public Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants to purchase common stock exercised		4,927,680
Exercise price of warrants		$ 3.85
Warrants and rights outstanding, term		5 years

v3.25.1

Schedule of Stock Option Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Jan. 31, 2025	Apr. 30, 2024
Share-Based Payment Arrangement [Abstract]
Shares Underlying Options Outstanding, beginning	734,543
Weighted Average Exercise Price, Beginning balance	$ 2.12
Weighted Average Remaining Contractual Term (In Years), Ending	6 years 7 months 6 days	7 years 7 months 6 days
Shares underlying Options Outstanding, Granted
Weighted Average Exercise Price, Granted
Shares Underlying Options ,Exercised
Weighted Average Exercise Price, Exercised
Shares Underlying Options, Cancelled/forfeited	(251,201)
Weighted Average Exercise Price, Cancelled/forfeited	$ 1.20
Shares Underlying Options, ending	483,342	734,543
Weighted average exercise price, ending balance	$ 2.59	$ 2.12
Shares Underlying Options, Exercisable at Ending	425,440
Weighted Average Exercise Price, Exercisable at ending	$ 2.85
Weighted Average Remaining Contractual Term (In Years), Exercisable at Ending	6 years 4 months 24 days

v3.25.1

Schedule of Non-vested Restricted Stock Activity (Details) - Non-vested Restricted Stock [Member]	9 Months Ended
	Jan. 31, 2025 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares, Unvested, Beginning	5,124,529
Weighted Average Price per Share, Unvested, Beginning | $ / shares	$ 0.38
Number of Shares, Unvested, Granted/Adjusted	21,079,453
Weighted Average Price per Share, Granted/Adjusted | $ / shares	$ 0.99
Number of Shares, Unvested, Vested and issued	(2,964,280)
Number of Shares, Cancelled/forfeited	(778,069)
Weighted Average Price per Share, Cancelled/forfeited | $ / shares	$ 0.30
Number of Shares, Unvested, Ending	22,461,633
Weighted Average Price per Share, Unvested, Ending | $ / shares	$ 0.90

v3.25.1

Share-Based Compensation (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 09, 2022	Jan. 31, 2025	Jan. 31, 2025	Jan. 31, 2024	Jan. 31, 2025	Jan. 31, 2024	Apr. 30, 2023	Jan. 18, 2018	Dec. 31, 2015
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Intrinsic value of exercisable options		$ 0	$ 0		$ 0
Options unvested		58,000	58,000		58,000
Unvested options intrinsic value		$ 0	$ 0		$ 0
Weighted average remaining contractual term					8 years
Share-based payment arrangement, expense			12,000	$ (49,000)	$ 38,000	$ 50,000
Unrecognized compensation cost related to non-vested stock		35,000	35,000		$ 35,000
Share-based compensation of weighted-average period					1 year
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options unvested							66,667
Share-based payment arrangement, expense					$ 0	43,000
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based payment arrangement, expense			768,000	$ 179,000	$ 1,293,000	$ 710,000
Share-based compensation of weighted-average period					1 year 8 months 12 days
Number of restricted shares, granted					21,903,000	183,000
Unrecognized compensation cost		$ 17,480,000	$ 17,480,000		$ 17,480,000
2015 Omnibus Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement shares authorized		27,282,036	27,282,036		27,282,036				1,332,036
Share-based compensation arrangement shares authorized increase		20,000,000
2018 Inducement Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement shares authorized	275,000
Share-based compensation arrangement shares authorized increase	250,000
Reserved for future issuance								25,000

v3.25.1

Fair Value Measurements (Details Narrative)	9 Months Ended
	Jan. 31, 2025 USD ($) shares
Fair Value Disclosures [Abstract]
Cash payments	$ 150,000
Stock issued during period, shares | shares	2,864,808
Stock issued during period, value	$ 500,000

v3.25.1

Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands								1 Months Ended	2 Months Ended	9 Months Ended
	Jan. 31, 2025	Dec. 31, 2024	Dec. 20, 2024	Sep. 30, 2024	Sep. 13, 2024	Aug. 30, 2024	Mar. 21, 2024	Dec. 31, 2024	Mar. 16, 2025	Jan. 31, 2025	Jan. 31, 2024	Apr. 30, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common stock, par value	$ 0.001									$ 0.001		$ 0.001
Net proceeds from common stock										$ 16,880	$ 29
2023 ATM Facility [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate offering price		$ 60,000		$ 2,900		$ 16,000	$ 7,000
Proceeds from issuance	$ 16,900
2023 ATM Facility [Member] | Subsequent Event [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from issuance									$ 900
First RDO Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate offering price					$ 3,500
Common stock, par value					$ 0.001
Net proceeds from common stock					$ 1,500
Common stock, issuance description					The First RDO Shares were issued at a price per share equal to 80% of the lowest traded price of the Common Stock ten days prior to the closing date for the purchase of the shares.
Second RDO Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate offering price					$ 2,500
Net proceeds from common stock					$ 1,500
Common stock, issuance description					The Second RDO Shares were issued at a price per share equal to 80% of the lowest traded price of the Common Stock five days prior to the closing date for the purchase of the shares.
Securities Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Beneficial owner description			No Note may be converted to the extent that such conversion would cause the then holder of such Note to become the beneficial owner of more than 4.99%, or, at the option of such holder, 9.99% of the then outstanding common stock, after giving effect to such conversion (the “Beneficial Ownership Cap”).
Securities Purchase Agreement [Member] | Senior Convertible Notes [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Original principal amount			$ 54,000
Securities Purchase Agreement [Member] | Initial Note [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net proceeds from common stock			3,600
Original principal amount			$ 4,000
Original issue discount			9.50%
Fees and expenses amount			$ 400
Interest rate			12.50%
Increase in interest rate			17.50%
Premium percentage			15.00%
Derivative liability			$ 400
Convertible debt into common shares								15,442,429
Conversion price		$ 0.26						$ 0.26
Securities Purchase Agreement [Member] | Additional Notes [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Original principal amount			$ 50,000

v3.25.1

Commitments and Contingencies (Details Narrative) - Tax Authority, Spain [Member]	Jan. 25, 2021 EUR (€)	Apr. 30, 2022 USD ($)	Apr. 30, 2022 EUR (€)
Operating Loss Carryforwards [Line Items]
Income tax penalties		$ 331,000	€ 279,870
Payment of tax on damages	€ 279,870

v3.25.1

Income Taxes (Details Narrative) - USD ($) $ in Millions	1 Months Ended
	Sep. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Acquisition outstanding common stock ownership percentage		4.99%
Preliminary award received	$ 1.1

v3.25.1

Operating Segments and Geographic Information (Details Narrative)	9 Months Ended
	Jan. 31, 2025 Segment
Segment Reporting [Abstract]
Number of reportable segments	1

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