MONROE TOWNSHIP, NJ – Ocean Power Technologies, Inc. (NYSE American:OPTT), a company specializing in electric services, has announced a change in its independent registered public accounting firm. The Audit Committee of the company's Board of Directors decided to dismiss EisnerAmper LLP effective August 19, 2024, primarily to reduce audit fees and costs.
The company's financial statements for the fiscal years ending April 30, 2024, and April 30, 2023, audited by EisnerAmper, did not contain any adverse opinion or disclaimer of opinion.
However, the audit report for the fiscal year ended April 30, 2024, included an explanatory paragraph regarding the company's ability to continue as a going concern due to recurring net losses and net cash flow used in operations.
There were no disagreements or reportable events between the company and EisnerAmper during the two most recent fiscal years or the interim period up to August 19, 2024. EisnerAmper has provided a letter to the Securities and Exchange Commission (SEC), filed as Exhibit 16.1 with this report, confirming their agreement with the statements made by the company.
Following the dismissal, the Audit Committee appointed Moss Adams LLP as the new independent registered public accounting firm for the fiscal year ending April 30, 2025. Prior to their appointment, Ocean Power Technologies had not consulted Moss Adams on any accounting principles or auditing matters.
In other recent news, Ocean Power Technologies, Inc. has reported a substantial increase in revenue for the fiscal year 2024, with a 102% rise to $5.5 million. Despite a net loss of $27.5 million for the fiscal year, the company has made significant technological advancements and formed key strategic alliances.
The company has also outlined a path to profitability, expecting to reach this milestone in the second half of calendar year 2025. Operating expenses were notably high, due in part to extraordinary expenses related to shareholder activities.
Analysts noted that the company's revenue growth was driven by strong WAM-V sales and an increase in orders and pipeline. In terms of future expectations, the company's pipeline stands at $85 million, with contract orders for 2025 projected at $12.5 million.
InvestingPro Insights
In light of Ocean Power Technologies' recent decision to change its independent registered public accounting firm, a review of the company's financial health and stock performance offers additional context for investors. According to InvestingPro data, Ocean Power Technologies holds a market cap of approximately $18.08 million, with a substantial revenue growth of 102.23% in the last twelve months as of Q4 2024. This impressive growth is further accentuated by a gross profit margin of 51.15% in the same period, underscoring the company's ability to generate income relative to its revenue.
However, the company is not without its challenges. Ocean Power Technologies has been flagged for its high cash burn rate, which is a critical factor for investors to consider, especially in light of the explanatory paragraph in the recent audit report concerning the company's ability to continue as a going concern. The InvestingPro Tips also highlight that the stock has experienced high price volatility, with significant price declines over various periods, including a 40.27% drop in the last month and a 56.82% drop over the past year, reflecting potential risks for investors.
For those considering an investment in Ocean Power Technologies, it's worth noting that the company does not pay dividends to shareholders, which can be a deciding factor for income-focused investors. Additionally, further analysis and tips are available for those seeking more detailed insights; there are 12 more InvestingPro Tips listed on the platform for Ocean Power Technologies, which can be found at https://www.investing.com/pro/OPTT.
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