Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jan. 31, 2016 | Feb. 29, 2016 | |
Entity Registrant Name | Ocean Power Technologies, Inc. | |
Entity Central Index Key | 1,378,140 | |
Trading Symbol | optt | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 1,936,801 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jan. 31, 2016 | Apr. 30, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 9,413,258 | $ 17,335,734 |
Certificate of Deposit and US Treasury obligations | 50,000 | 75,000 |
Restricted cash | 377,101 | 438,561 |
Accounts receivable | 14,534 | 103,470 |
Unbilled receivables | 37,465 | 81,658 |
Other current assets | 214,828 | 186,641 |
Total current assets | 10,107,186 | 18,221,064 |
Property and equipment, net | $ 206,580 | 263,898 |
Restricted cash | 50,000 | |
Other noncurrent assets | $ 295,912 | 335,924 |
Total assets | 10,609,678 | 18,870,886 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 451,446 | 352,827 |
Accrued expenses | 2,718,518 | 2,507,119 |
Current portion of long-term debt | 75,000 | 100,000 |
Total current liabilities | $ 3,244,964 | 2,959,946 |
Long-term debt | 50,000 | |
Deferred credits | $ 600,000 | 600,000 |
Total liabilities | $ 3,844,964 | $ 3,609,946 |
Commitments and contingencies (note 9) | ||
Ocean Power Technologies, Inc. stockholders’ equity: | ||
Preferred stock, $0.001 par value; authorized 5,000,000 shares, none issued or outstanding | ||
Common stock, $0.001 par value; 50,000,000 shares authorized as of January 31, 2016, and 105,000,000 shares authorized as of April 30, 2015; issued 1,924,234 and 1,838,720 shares, respectively | $ 1,924 | $ 1,839 |
Treasury stock, at cost; 5,705 and 3,866 shares, respectively | (135,938) | (132,016) |
Additional paid-in capital | 180,951,755 | 180,803,339 |
Retained Earnings (Accumulated Deficit) | (173,901,826) | (164,755,055) |
Accumulated other comprehensive loss | (151,201) | (229,915) |
Total Ocean Power Technologies, Inc. stockholders’ equity | 6,764,714 | 15,688,192 |
Noncontrolling interest in Ocean Power Technologies (Australasia) Pty. Ltd. | 0 | (427,252) |
Total equity | 6,764,714 | 15,260,940 |
Total liabilities and stockholders’ equity | $ 10,609,678 | $ 18,870,886 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jan. 31, 2016 | Apr. 30, 2015 |
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 105,000,000 |
Common stock, shares issued (in shares) | 1,924,234 | 1,838,720 |
Treasury stock (in shares) | 5,705 | 3,866 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Revenues | $ 5,203 | $ 328,511 | $ 605,281 | $ 3,616,827 |
Cost of revenues | $ 5,203 | 379,106 | $ 605,281 | 4,344,346 |
Gross loss | (50,595) | (727,519) | ||
Operating expenses: | ||||
Product development costs | $ 1,752,001 | 1,082,628 | $ 5,412,445 | 2,227,060 |
Selling, general and administrative costs | 1,690,420 | 1,956,702 | 5,419,358 | 7,788,552 |
Total operating expenses | 3,442,421 | 3,039,330 | 10,831,803 | 10,015,612 |
Operating loss | (3,442,421) | (3,089,925) | (10,831,803) | (10,743,131) |
Interest income (expense), net | 1,128 | $ 6,793 | 9,963 | (48,403) |
Other income (expense), net | (3,114) | 239,813 | 185,000 | |
Foreign exchange loss | (188,424) | $ (246,002) | (194,266) | (467,909) |
Loss before income taxes | (3,632,831) | (3,329,134) | (10,776,293) | (11,074,443) |
Income tax benefit | 1,674,862 | 1,137,872 | 1,674,862 | 1,137,872 |
Net loss | $ (1,957,969) | (2,191,262) | (9,101,431) | (9,936,571) |
Less: Net (profit) loss attributable to the noncontrolling interest in Ocean Power Technologies (Australasia) Pty Ltd. | 5,291 | (45,340) | 98,154 | |
Net loss attributable to Ocean Power Technologies, Inc. | $ (1,957,969) | $ (2,185,971) | $ (9,146,771) | $ (9,838,417) |
Basic and diluted net loss per share (in dollars per share) | $ (1.05) | $ (1.25) | $ (5.07) | $ (5.63) |
Weighted average shares used to compute basic and diluted net loss per share (in shares) | 1,865,464 | 1,750,827 | 1,803,559 | 1,748,484 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Net loss | $ (1,957,969) | $ (2,191,262) | $ (9,101,431) | $ (9,936,571) |
Foreign currency translation adjustment | 151,496 | 64,414 | 106,038 | 130,426 |
Total comprehensive loss | $ (1,806,473) | (2,126,848) | (8,995,393) | (9,806,145) |
Comprehensive (income) loss attributable to the noncontrolling interest in Ocean Power Technologies (Australasia) Pty Ltd. | (44,564) | (72,664) | 25,490 | |
Comprehensive loss attributable to Ocean Power Technologies, Inc. | $ (1,806,473) | $ (2,171,412) | $ (9,068,057) | $ (9,780,655) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - 9 months ended Jan. 31, 2016 - USD ($) | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Apr. 30, 2015 | 18,387,769 | (38,658) | |||||
Balance at Apr. 30, 2015 | $ 18,388 | $ (132,016) | $ 180,786,790 | $ (164,755,055) | $ (229,915) | $ (427,252) | $ 15,260,940 |
Reverse stock split (in shares) | (16,549,049) | 34,792 | |||||
Reverse stock split | $ (16,549) | $ 16,549 | |||||
Net loss | $ (9,146,771) | $ 45,340 | $ (9,101,431) | ||||
Other comprehensive income (loss) | $ 78,714 | $ 27,324 | 106,038 | ||||
Stock based compensation | $ 127,243 | 127,243 | |||||
Sale of Common Stock,net (in shares) | 96,524 | ||||||
Sale of Common Stock,net | $ 97 | 204,826 | 204,923 | ||||
Issuance (forfeiture) of restricted stock, net (in shares) | (11,010) | ||||||
Issuance (forfeiture) of restricted stock, net | $ (12) | $ 170,935 | $ 170,923 | ||||
Acquisition of treasury stock (in shares) | (1,839) | (1,839) | |||||
Acquisition of treasury stock | $ (3,922) | $ (3,922) | |||||
Additional investment in subsidiary | $ (354,588) | $ 354,588 | |||||
Balance (in shares) at Jan. 31, 2016 | 1,924,234 | (5,705) | |||||
Balance at Jan. 31, 2016 | $ 1,924 | $ (135,938) | $ 180,951,755 | $ (173,901,826) | $ (151,201) | $ 6,764,714 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (9,101,431) | $ (9,936,571) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Foreign exchange loss | 194,266 | 467,909 |
Depreciation and amortization | $ 83,874 | 727,188 |
Loss on disposals of property, plant and equipment | 3,771 | |
Compensation expense related to stock option grants & restricted stock | $ 298,169 | 238,657 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 88,936 | 289,740 |
Unbilled receivables | 44,193 | (151,855) |
Other current assets | (29,704) | 229,910 |
Other noncurrent assets | 26,560 | (134,126) |
Accounts payable | 97,743 | (348,795) |
Accrued expenses | $ 221,373 | (435,950) |
Return of advanced payment to ARENA | (4,709,055) | |
Unearned revenues | (992,447) | |
Net cash used in operating activities | $ (8,076,021) | (14,751,624) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (13,796,959) | |
Maturities of marketable securities | $ 25,000 | 28,240,840 |
Restricted cash | 111,460 | 6,787,329 |
Purchases of equipment | (23,524) | (54,466) |
Net cash provided by investing activities | 112,936 | 21,176,744 |
Cash flows from financing activities: | ||
Proceeds from the sale of common stock,net of issuance costs | 204,923 | 650 |
Repayment of debt | (75,000) | (75,000) |
Acquisition of treasury stock | (3,922) | (1,309) |
Net cash provided by (used in) financing activities | 126,001 | (75,659) |
Effect of exchange rate changes on cash and cash equivalents | (85,392) | (339,214) |
Net change in cash and cash equivalents | (7,922,476) | 6,010,247 |
Cash and cash equivalents, beginning of period | 17,335,734 | 13,858,659 |
Cash and cash equivalents, end of period | 9,413,258 | 19,868,906 |
Supplemental disclosure of noncash investing and financing activities: | ||
Capitalized purchases of equipment financed through accounts payable and accrued expenses | $ 3,039 | $ 1,110 |
Note 1 - Background, Basis of P
Note 1 - Background, Basis of Presentation and Liquidity | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | (1) Background, Basis of Presentation and Liquidity a) Background Ocean Power Technologies, Inc. (the “Company”) was incorporated in 1984 in New Jersey, commenced business operations in 1994 and re-incorporated in Delaware in 2007. The Company is developing and is seeking to commercialize proprietary systems that generate electricity by harnessing the renewable energy of ocean waves. The Company markets its PowerBuoys in the United States and internationally. Since fiscal 2002, government agencies have accounted for a significant portion of the Company’s revenues. These revenues were largely for the support of product development efforts. The Company’s goal is to develop a commercially viable product and to generate revenues from the sale of products and maintenance services, as compared to revenue to support its product development efforts. As the Company continues to advance its proprietary technologies, it expects to continue to have a net decrease in cash from operating activities unless and until it achieves positive cash flow from the planned commercialization of products and services. b) Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles 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, 2015 filed with the Securities and Exchange Commission (“SEC”) and elsewhere in this Form 10-Q. c) Liquidity The Company has incurred net losses and negative operating cash flows since inception. As of January 31, 2016, the Company had an accumulated deficit of $173.9 million. As of January 31, 2016, the Company’s cash and cash equivalents and marketable securities balance was approximately $9.5 million. Based upon the Company’s cash and cash equivalents and marketable securities balance as of January 31, 2016, the Company believes that it will be able to finance its capital requirements and operations into the quarter ending October 31, 2016. In addition, as of January 31, 2016, the Company’s restricted cash balance was approximately $0.4 million. The Company will require additional equity and/or debt financing to continue its operations as a going concern. If the Company is unable to raise additional funds when needed, its ability to operate and grow its business could be impaired. The Company cannot assure that it will be able to secure additional funding when needed or at all, or, if secured, that such funding on favorable terms. The Company continues to make investments in ongoing product development efforts in anticipation of future growth. The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, risks from lack of available financing and insufficient capital, performance of PowerBuoys, its inability to market and commercialize its PowerBuoys, technology development, scalability of technology and production, dependence on skills of key personnel, concentration of customers and suppliers, deployment risks and laws, regulations and permitting. In order to continue to implement its business strategy, the Company requires additional equity and/or debt financing. The Company does not currently have any committed sources of debt or equity financing, and the Company cannot assure that additional equity and/or debt financing will be available to the Company as needed on acceptable terms, or at all. Historically, the Company has raised capital through securities sales in the public capital markets. If sufficient additional financing is not obtained when needed, the Company may be required to further curtail or limit operations, product development costs, and/or selling, general and administrative activities in order to reduce its cash expenditures. This could cause the Company to be unable to execute its business plan, take advantage of future opportunities and may cause it to scale back, delay or eliminate some or all of its product development activities and/or reduce the scope of its operations. In January 2013, the Company filed a shelf registration statement on Form S-3 (the “2013 Form S-3” or the “2013 Form S-3 Shelf”). The 2013 Form S-3 Shelf was declared effective by the SEC in February 2013. Under the 2013 Form S-3 Shelf in June 2013, the Company established an At the Market Offering Facility (the “ATM Facility”) with Ascendiant Capital Markets, LLC (“Ascendiant”) via an At the Market Offering Agreement (the “ATM Agreement”). Under the ATM Agreement, the Company offered and sold shares of its common stock, par value $0.001 per share (the “Common Stock”) from time to time through Ascendiant, acting as sales agent, in ordinary brokerage transactions at prevailing market prices. Under the ATM Facility, during fiscal 2014, the Company issued 330,633 shares of its Common Stock at an average price to the public of $30.20 per share, receiving net proceeds from the ATM Facility of approximately $9,698,000. Also in fiscal 2014, the Company entered into an Underwriting Agreement with Roth Capital Partners, LLC on April 4, 2014, (the “Underwriting Agreement”) with respect to the issuance and sale in an underwritten public offering of an aggregate of 380,000 shares of its Common Stock at a price of $31.00 per share (the “Public Offering”) under the 2013 Form S-3. The Underwriting Agreement contained customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations, and a 90-day lock-up period that limited transactions in its Common Stock by the Company. Net proceeds from the Public Offering, which was completed in early April 2014, were approximately $10,828,000. During fiscal 2015, we did not sell any securities under or receive any proceeds from the sale of securities under the 2013 Form S-3 Shelf. In October 2015, the Company entered into an At the Market Offering Agreement (the “Offering Agreement”) with Rodman & Renshaw, a unit of H. C. Wainwright & Co., LLC (the “Manager”) under which the Company may offer and sell shares of its Common Stock, having an aggregate offering price of up to $2,906,836 from time to time through or to the Manager, acting as sales agent and/or principal, in reliance on and subject to the limitations of General Instruction I.B.6 of Form S-3 and other applicable laws and regulations (the “2015 ATM Offering”). Under the Offering Agreement, during the quarter ended January 31, 2016, we sold 95,024 shares of Common Stock at an average price of $2.13 per share, for net proceeds to the Company of approximately $199,000 and we paid the Manager a sales commission of approximately $3,000 related to those shares. The Company has no obligation to sell shares of Common Stock under the Offering Agreement and may at any time upon notice terminate the Offering Agreement. Form S-3 limits the aggregate market value of securities that the Company is permitted to offer in any 12-month period under its 2013 Form S-3 Shelf, whether under the ATM Agreement, the Underwriting Agreement or otherwise, to one-third of its public float. In 2014, the Company fully utilized its available transaction capacity to sell securities using the 2013 Form S-3 Shelf in the ATM offering. However, the Company regained the ability to utilize the 2013 Form S-3 Shelf as we entered fiscal 2016. Under the SEC’s regulations, the securities registered under its 2013 Form S-3 Shelf may only be offered and sold if not more than three years have elapsed from the initial effective date of the Form S-3, except that if a new shelf registration statement is filed then the Company is permitted to continue to offer and sell securities under the Form S-3 until the earlier of the effective date of the new shelf registration statement or 180 days after the third anniversary of the initial effective date. On February 12, 2016, the Company filed a new Form S-3 shelf registration statement (the “2016 Form S-3” or the “2016 Form S-3 Shelf”) to register the offering and sale of up to $15 million in securities. The 2016 Form S-3 registration statement has not yet been declared effective by the SEC. Subject to compliance with applicable laws and regulations, the Company may continue to offer and sell shares of its Common Stock in the 2015 ATM offering with the Manager under the Offering Agreement until the earlier of August 10, 2016 or the date on which the SEC declares effective the 2016 Form S-3. Under the terms of the Offering Agreement with the Manager, the Company may offer and sell up to $2,906,836 of its Common Stock in the 2015 ATM Offering. However, pursuant to General Instruction I.B.6 of Form S-3, at the time of filing the 2016 Form S-3, the Company was able to offer and sell only $1,597,102 of its common stock under the 2016 Form S-3, and, as of the date of that filing, the Company had already offered and sold $251,603 in value of its common stock under the Offering Agreement. Thus, under the 2016 Form S-3, the Company is seeking to register the offering and sale of up to $1,345,499 in value of its Common Stock for sale in the 2015 ATM Offering pursuant to the Offering Agreement, which securities are included in the $15 million of securities the Company is seeking to register for offer and sale on the 2016 Form S-3. The sale of additional equity or convertible securities could result in dilution to the Company’s stockholders. If additional funds are raised through the issuance of debt securities or preferred stock, these securities could have rights senior to those associated with the Company’s Common Stock and could contain covenants that would restrict its operations. Financing may not be available in amounts or on terms acceptable to it, or at all. If the Company is unable to obtain financing when required, it may be required to reduce the scope of its operations, current projects, planned product development and marketing efforts, and/or selling, general and administrative activities which could materially and adversely affect the Company’s future opportunities, financial condition and operating results. (d) Reverse Stock Split At the annual meeting of stockholders on October 22, 2015, the Company’s stockholders approved a proposal to amend the Certificate of Incorporation of the Company to effect a reverse split of its Common Stock, at a ratio to be determined by the Company’s Board of Directors within a specific range and a reduction in the authorized number of shares of its Common Stock. On October 27, 2015, the Company filed a Certificate of Amendment to its Certificate of Incorporation to effect a one-for-10 reverse stock split of its Common Stock and to decrease the number of authorized shares of its Common Stock to 50,000,000 shares (the “Reverse Stock Split”). As a result of the Reverse Stock Split, as of the effective date of the Reverse Stock Split, every 10 shares of issued and outstanding Common Stock were combined into one issued and outstanding share of Common Stock, without any change in the par value per share. No fractional shares were issued in connection with the All share and per share data included in this report has been retroactively restated to reflect the Reverse Stock Split. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (2) Summary of Significant Accounting Policies (a) Consolidation The accompanying consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Participation of stockholders other than the Company in the net assets and in the earnings or losses of a consolidated subsidiary is reflected as a non-controlling interest in the Company's Consolidated Balance Sheets and Statements of Operations, which adjusts the Company's consolidated results of operations to reflect only the Company's share of the earnings or losses of the consolidated subsidiary. As of January 31, 2016, there were no non-controlling interests. In September 2015, the Company re-purchased the non-controlling interest (consisting of 11.8%) of the Company's Australian subsidiary, Ocean Power Technologies (Australasia) Pty. Ltd. (“OPTA”) for nominal consideration and now has 100% ownership of OPTA. OPTA owns 100% of Victorian Wave Partners Pty. Ltd. (“VWP”), which is also organized under the laws of Australia. The Company also periodically evaluates its relationships with other entities to identify whether they are variable interest entities, and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements. As of January 31, 2016, there were no such entities. (b) Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the legal costs associated with shareholder litigation and SEC subpoena; recoverability of the carrying amount of property and equipment; valuation allowances for receivables and deferred income tax assets; estimated costs to complete projects; and percentage of completion of customer contracts for purposes of revenue recognition. Actual results may differ from those estimates. (c) Revenue Recognition The Company’s contracts are either cost-plus or fixed-price contracts. Under cost-plus contracts, customers are billed for actual expenses incurred plus an agreed-upon fee. Currently, 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. 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. Generally, the Company recognizes revenue using the percentage-of-completion method based on the ratio of costs incurred to total estimated costs at completion. In certain circumstances, revenue under contracts that have specified milestones or other performance criteria may be recognized only when the customer acknowledges that such criteria have been satisfied. In addition, recognition of revenue (and the related costs) may be deferred for fixed-price contracts until contract completion if the Company is unable to reasonably estimate the total costs of the project prior to completion. These contracts are subject to interpretation, and management may make a judgment as to the amount of revenue earned and recorded. Because the Company has a small number of contracts, revisions to the percentage-of-completion determination, management interpretation or delays in meeting performance and contractual criteria or in completing projects may have a significant effect on revenue for the periods involved. Upon anticipating a loss on a contract, the Company recognizes the full amount of the anticipated loss in the current period. Under cost plus and firm fixed price contracts, a profit or loss on a project is recognized depending on whether actual costs are more or less than the agreed upon amount. Under cost sharing contracts, an amount corresponding to the revenue is recorded in cost of revenues, resulting in gross profit on these contracts of zero. The Company’s share of the costs is recorded as product development expense. Unbilled receivables represent expenditures on contracts, plus applicable profit margin, not yet billed. Unbilled receivables are normally Some of the Company’s projects are under cost-sharing contracts. (d) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company invests excess cash in an overnight U.S. government securities repurchase bank account and a money market account. In accordance with the terms of the repurchase agreement, the Company does not take possession of the related securities. The agreement contains provisions to ensure that the market value of the underlying assets remains sufficient to protect the Company in the event of default by the bank by requiring that the underlying securities have a total market value of at least 100% of the bank’s total obligations under the agreement. January 31, 2016 April 30, 2015 Checking and money market accounts $ 4,697,646 $ 4,614,400 Overnight repurchase account 4,715,612 12,721,334 $ 9,413,258 $ 17,335,734 (e) Marketable Securities Marketable securities with original maturities longer than three months but that mature in less than one year from the balance sheet date are classified as current assets. Marketable securities that the Company has the intent and ability to hold to maturity are classified as investments held-to-maturity and are reported at amortized cost. The difference between the acquisition cost and face values of held-to-maturity investments is amortized over the remaining term of the investments and added to or subtracted from the acquisition cost and interest income. As of January 31, 2016 and April 30, 2015, all of the Company’s investments were classified as held-to-maturity. (f) Restricted Cash and Credit Facility A portion of the Company’s cash is restricted under the terms of two security agreements. One agreement is between Ocean Power Technologies, Inc. and Barclays Bank. Under this agreement, the cash is on deposit at Barclays Bank and serves as security for letters of credit and bank guarantees that are expected to be issued by Barclays Bank on behalf of OPT LTD, one of the Company's subsidiaries, under a credit facility established by Barclays Bank for OPT LTD. The credit facility carries a fee of 1% per annum of the amount of any such obligations issued by Barclays Bank. The credit facility does not have an expiration date, but is cancelable at the discretion of the bank. As of January 31, 2016, there was €278,828 ($301,915) in letters of credit outstanding under this agreement. The second agreement is between Ocean Power Technologies, Inc. and the New Jersey Board of Public Utilities (NJBPU). The Company received a $500,000 recoverable grant award from the NJBPU of which $75,000 is outstanding at January 31, 2016. Under this arrangement, the Company annually assigns to the NJBPU a certificate of deposit in an amount equal to the outstanding grant balance. See Note 6. In addition, the Company previously had a letter of credit outstanding for the benefit of the Oregon Department of State Lands for the removal of certain of the Company’s anchoring and mooring equipment from the seabed off the coast of Oregon. During fiscal 2015, the Company completed the removal activity and reduced the letters of credit from $1,200,000 to $0. Restricted cash includes the following: January 31, 2016 April 30, 2015 Current: NJBPU agreement $ 75,000 $ 100,000 Barclay's Bank Agreement 302,101 338,561 $ 377,101 $ 438,561 January 31, 2016 April 30, 2015 Long Term: NJBPU agreement $ ― $ 50,000 $ ― $ 50,000 (g) Foreign Exchange Gains and Losses The Company has invested in certain certificates of deposit and has maintained cash accounts that are denominated in British pounds sterling, Euros and Australian dollars. These amounts are included in cash, cash equivalents, restricted cash and marketable securities on the accompanying consolidated balance sheets. Such positions may result in realized and unrealized foreign exchange gains or losses from exchange rate fluctuations, which gains and losses are included in foreign exchange loss in the accompanying consolidated statements of operations. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Foreign exchange loss $ (188,424 ) $ (246,002 ) $ (194,266 ) $ (467,909 ) Foreign currency denominated certificates of deposit and cash accounts: January 31, 2016 April 30, 2015 Restricted $ 302,101 $ 338,561 Unrestricted 1,037,590 1,100,371 $ 1,339,691 $ 1,438,932 (h) Property and Equipment 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 seven 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. (i) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash balances, overnight repurchase accounts, bank certificates of deposit and trade receivables. The Company invests its excess cash in highly liquid investments (typically, short-term bank deposits, Treasury bills, Treasury notes and money market funds) and does not believe that it is exposed to any significant risks related to its cash accounts, money market funds or certificates of deposit. The table below shows the percentage of the Company's revenues derived from customers whose revenues accounted for at least 10% of the Company's consolidated revenues for at least one of the periods indicated: Three months ended January 31, Nine months ended January 31, Customer 2016 2015 2016 2015 US Department of Energy 100 % 25 % 33 % 37 % European Union (WavePort project) ― ― 67 % 26 % Mitsui Engineering & Shipbuilding ― 75 % ― 37 % 100 % 100 % 100 % 100 % The loss of, or a significant reduction in revenues from, any of the current customers could significantly impact the Company's financial position or results of operations. The Company does not require its customers to maintain collateral. (j) 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 outstanding during the period. Due to the Company's net losses, potentially dilutive securities, consisting of outstanding stock options and non-vested restricted stock, were excluded from the diluted loss per share calculation due to their anti-dilutive effect. In computing diluted net loss per share, options to purchase shares of Common Stock and non-vested restricted stock issued to employees and non-employee directors, totaling 154,537 for the three and nine months ended January 31, 2016, and 193,701 for the three and nine months ended January 31, 2015, were excluded from the computations as the effect would be anti-dilutive due to the Company's losses. (k) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued a new revenue recognition standard entitled “Revenue from Contracts with Customers.” In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, In November 2015, the FASB issued ASU 2015-17, Income Taxes (ASC 740): Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases |
Note 3 - Marketable Securities
Note 3 - Marketable Securities | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | (3) Marketable Securities Marketable securities with initial maturities longer than three months but that mature within one year from the balance sheet date are classified as current assets and are summarized as follows: January 31, 2016 April 30, 2015 Certificate of Deposit and US Treasury obligations $ 50,000 $ 75,000 |
Note 4 - Balance Sheet Detail
Note 4 - Balance Sheet Detail | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | (4) Balance Sheet Detail January 31, 2016 April 30, 2015 Accrued expenses Project costs $ 1,121,267 $ 867,771 Contract loss reserve 198,819 198,819 Employee incentive payments 245,569 529,274 Accrued salary and benefits 498,465 468,366 Legal and accounting fees 384,618 274,656 Other 269,780 168,233 $ 2,718,518 $ 2,507,119 |
Note 5 - Related Party Transact
Note 5 - Related Party Transactions | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | (5) Related Party Transactions Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Related party consulting expense $ - $ 168,500 $ 52,667 $ 434,188 In April 2014, the Company entered into an Executive Transition Agreement with George W. Taylor, who was formerly employed by the Company as Executive Vice Chairman and served on the Company’s Board of Directors prior to that date. Under this agreement, Dr. Taylor received 15 months of consulting fees at a monthly rate of $20,000 (this period terminated on July 18, 2015). For the three and nine months ended January 31, 2016, the Company recorded $0 and $52,667 in expense relating to this agreement. For the three and nine months ended January 31, 2015, the Company recorded $60,000 and $180,000, respectively in expense relating to this agreement. In June 2014, the Company entered into an agreement with David L. Keller, a non-executive director of the Company, under which Mr. Keller served as our Interim Chief Executive Officer effective as of the June 9, 2014 termination of our former Chief Executive Officer, Charles F. Dunleavy, through January 20, 2015. Under this agreement, Mr. Keller received a consulting fee of $1,500 per day of services provided to the Company. Effective January 20, 2015, Mr. George H. Kirby was appointed our President, Chief Executive Officer and a Director of the Company and Mr. Keller resigned as Interim CEO. Mr. Keller continued to serve as a non-executive director of the Company until October 22, 2015. For the three and nine months ended January 31, 2016, the Company recorded $0 in expense relating to Mr. Keller’s agreement. For the three and nine months ended January 31, 2015, the Company recorded $108,500 and $254,188, respectively in expense relating to this agreement. |
Note 6 - Debt
Note 6 - Debt | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (6) Debt The Company was awarded a recoverable grant totaling $500,000 between April 2009 and June 2010 from the NJBPU under the Renewable Energy Business Venture Assistance Program. Under the terms of this agreement, the amount to be repaid is a fixed monthly amount of principal only, repayable over a five-year period beginning in November 2011. The terms also required the Company to assign to the NJBPU a certificate of deposit in an amount equal to the outstanding grant balance. See Note 2(f). January 31, 2015 April 30, 2015 Total debt $ 75,000 $ 150,000 Current portion of long-term debt (75,000 ) (100,000 ) Long-term debt $ ― $ 50,000 |
Note 7 - Deferred Credits Payab
Note 7 - Deferred Credits Payable | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Customer Advances and Deposits Disclosure [Text Block] | (7) Deferred Credits Payable During the year ended April 30, 2001, in connection with the sale of Common Stock to an investor, the Company received $600,000 from the investor in exchange for an option to purchase up to 500,000 metric tons of carbon emissions credits generated by the Company during the years 2008 through 2012, at a 30% discount from the then-prevailing market rate. If the Company received emission credits under applicable laws and failed to sell to the investor the credits up to the full amount of emission credits covered by the option, the investor was entitled to liquidated damages equal to 30% of the aggregate market value of the shortfall in emission credits (subject to a limit on the market price of emission credits). Under the terms of the agreement, if the Company did not become entitled under applicable laws to the full amount of emission credits covered by the option by December 31, 2012, the Company was obligated to return the option fee of $600,000, less the aggregate discount on any emission credits sold to the investor prior to such date. In December 2012, the Company and the investor agreed to extend the period for the sale of emission credits until December 31, 2017. As of January 31, 2016, the Company has not generated any emissions credits eligible for purchase under the agreement. The $600,000 has been classified as a noncurrent liability as of January 31, 2016. |
Note 8 - Stock-Based Compensati
Note 8 - Stock-Based Compensation | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (8) Stock-Based Compensation The aggregate stock-based compensation expense related to all stock-based transactions recorded in the consolidated statements of operations was approximately $298,000 and $239,000 for the nine months ended January 31, 2016 and 2015, respectively. The nine months ended January 31, 2015, reflected lower stock-based compensation costs primarily because of the termination for cause of Charles F. Dunleavy, Chief Executive Officer, on June 9, 2014. In accordance with the Company’s 2001 Stock Plan and the 2006 Stock Incentive Plan, all vested and unvested equity compensation grants were forfeited by Mr. Dunleavy because of his termination for cause by the Company. (a) Stock Options Valuation Assumptions for Options Granted During the Nine Months Ended January 31, 2016 and 2015 The fair value of each stock option granted, for both service-based and performance-based vesting requirements, during the nine months ended January 31, 2016, was estimated at the date of grant using the Black-Scholes option pricing model, assuming no dividends and using the weighted average valuation assumptions noted in the following table. The risk-free rate is based on the US Treasury yield curve in effect at the time of grant. 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. 107, Share-Based Payment. Nine Months Ended January 31, 2016 2015 Risk-free interest rate 1.6 % 1.6 % Expected dividend yield 0.0 % 0.0 % Expected life (in years) 5.5 5.5 Expected volatility 85.74 % 85.49 % The above assumptions were used to determine the weighted average per share fair value of $4.05 and $7.20 for stock options granted during the nine months ended January 31, 2016 and 2015, respectively. A summary of stock options under our stock incentive plans is as follows: Shares Weighted Weighted Outstanding as of April 30, 2015 108,376 $ 43.20 5.7 Forfeited (12,363 ) 48.16 Exercised — — Granted 5,138 5.80 Outstanding as of January 31, 2016 101,151 40.69 4.5 Exercisable as of January 31, 2016 86,725 45.58 4.0 As of January 31, 2016, the total intrinsic value of outstanding and exercisable options was $0. As of January 31, 2016, approximately 14,000 additional options are expected to vest in the future, which options had no intrinsic value and a weighted average remaining contractual term of 8.0 years. There was approximately $127,000 and $130,000 of total recognized compensation cost related to stock options for the nine months ended January 31, 2016 and 2015, respectively. As of January 31, 2016, there was approximately $62,000 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 1.8 years. The Company normally issues new shares to satisfy option exercises under these plans. Stock options outstanding, as of January 31, 2016, included 10,078 stock options subject to performance-based vesting requirements. (b) Restricted Stock Compensation expense for unvested restricted stock is generally recorded based on the market value of the restricted stock on the date of grant and recognized ratably over the associated service and performance period. Of the 44,191 unvested shares of restricted stock, there are different vesting criteria and compensation expense methods. There are 32,191 unvested restricted shares that vest based on service criteria. The compensation expense is recorded based on the market value on the date of grant and is recognized ratably over the associated service period. As of January 31, 2016, there are 12,000 unvested restricted shares where the achievement of vesting requirement for performance-based grants is tied to the Company’s total shareholder return (TSR) relative to the total shareholder return of three alternative energy Exchange Traded Funds as measured over a specific performance period. No vesting of the relevant shares will occur in instances where the Company’s TSR for the relevant period is below 80% of the designated funds’ group. However, additional opportunities to vest some or all of a portion of the shares in a subsequent period may occur. Compensation expense for these awards with market-based vesting is calculated based on the estimated fair value as of the grant date utilizing a Monte Carlo simulation model and is recognized over the service period on a straight-line basis. In January 2016, the Board of Directors authorized a modification to certain outstanding restricted stock grants, which converted certain grants with performance based vesting criteria and the achievement of vesting requirement for performance-based grants to service based grants. The modification of the restricted stock grants did not have a material impact on the Company’s statement of operations for the three months ended January 31, 2015. A summary of non-vested restricted stock under our stock incentive plans is as follows: Number Weighted Issued and unvested at April 30, 2015 84,062 $ 7.30 Granted 3,300 2.17 Forfeited (12,130 ) 8.86 Vested (31,041 ) 7.14 Issued and unvested at January 31, 2016 44,191 $ 6.60 There was approximately $171,000 and $109,000 of total recognized compensation cost related to restricted stock for the nine months ended January 31, 2016 and 2015, respectively. As of January 31, 2016, there was approximately $138,000 of total unrecognized compensation cost related to unvested restricted stock granted under our plans. This cost is expected to be recognized over a weighted average period of 1.2 years. (c) Treasury Stock During the nine months ended January 31, 2016 and 2015, 1,839 and 80 shares, respectively, of common stock were purchased by the Company from employees to pay taxes related to the vesting of restricted stock. |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (9) Commitments and Contingencies (a) Litigation Shareholder Litigation : The Company and its former Chief Executive Officer Charles Dunleavy are defendants in consolidated securities class action lawsuits, and pending in the United States District Court for the District of New Jersey captioned In Re: Ocean Power Technologies, Inc. Securities Litigation, Civil Action No. 14-3799 (FLW) (LHG). The consolidated actions are Roby v. Ocean Power Technologies, Inc., et al., Case No. 3:14-cv-03799-FLW-LHG (filed June 13, 2014); Chew, et al. v. Ocean Power Technologies, Inc. et. al., Case No 3:14-cv-03815 (filed June 13, 2014); Konstantinidis v. Ocean Power Technologies, Inc., et al., Case No. 3:14-cv-04015 (filed June 23, 2014); and Turner v. Ocean Power Technologies, Inc., et al., Case No. 3:14-cv-04592 (filed July 22, 2014). On March 17, 2015, the court entered an order appointing Five More Special Situation Fund Ltd. as the lead plaintiff. On October 9, 2015, the lead plaintiff filed a third amended class action complaint which alleges claims for violations of sections 12(a) (2) and 15 of the Securities Act of 1933 and for violations of §10(b) and §20(a) of the Securities Exchange Act of 1934 arising out of public statements relating to the Company’s technology and a now terminated agreement between Victorian Wave Partners Pty. Ltd. (VWP) and the Australian Renewable Energy Agency (ARENA) for the development of a wave power station (the "VWP Project"). The third amended class action complaint seeks unspecified monetary damages and other relief. On November 5, 2015, defendants filed a motion to dismiss the third amended class action complaint. The lead plaintiff filed a brief in opposition to the motion on December 7, 2015, and defendants filed a reply in support of the motion on December 21, 2015. The Court has not yet ruled on the motion. On July 10, 2014, the Company received a demand letter ("Demand Letter") from an attorney claiming to represent a shareholder demanding that the Company's Board of Directors establish an independent committee to investigate and remedy alleged breaches of fiduciary duties by the Board of Directors and management relating to the VWP Project. The Company invited the attorney to participate in the Section 220 The Company also received a letter, dated August 19, 2014, (the "Section 220 Demand") from another attorney claiming to represent a shareholder demanding, pursuant to 8 Del. C. §220, to inspect certain books and records of the Company relating to the VWP Project and the termination of Charles Dunleavy as the Company's Chief Executive Officer. The Company has received two additional Section 220 Demands relating to the same subject matter from attorneys claiming to represent two different shareholders. The Company has responded in writing to the three Section 220 Demands and on February 6, 2015 produced documents to each of the attorneys pursuant to confidentiality agreements. The Company and certain of its current and former directors and officers are defendants in a derivative lawsuit filed on March 18, 2015 in the United States District Court for the District of New Jersey captioned Labare v. Dunleavy, et. al., Case No. 3:15-cv-01980-FLW-LHG. The derivative complaint alleges claims for breach of fiduciary duty, abuse of control, gross mismanagement and unjust enrichment relating to the now terminated agreement between VWP and ARENA referred to above. The derivative complaint seeks unspecified monetary damages and other relief. On May 18, 2015, the plaintiff and all the defendants agreed to stay the derivative lawsuit pending action in the consolidated class action securities litigation discussed above (namely, a court order denying any motions to dismiss the commencement of discovery, a joint request to lift the stay, or further order of the court). On July 10, 2015, a second derivative lawsuit, captioned Rywolt v. Dunleavy , et al., Rywolt Rywolt Labare Rywolt Labare Rywolt The Company and its current directors are defendants in a lawsuit filed by an alleged shareholder in the Superior Court of New Jersey, Mercer County Chancery Division on January 25, 2016, captioned Stern v. Ocean Power Technologies, Inc., et al. . Employment Litigation : On June 10, 2014, the Company announced that it had terminated Charles Dunleavy as its Chief Executive Officer and as an employee of the Company for cause, effective June 9, 2014, and that Mr. Dunleavy had also been removed from his position as Chairman of the Board of Directors. On June 17, 2014, Mr. Dunleavy wrote to the Company stating that he had retained counsel to represent him in connection with an alleged wrongful termination of his employment. On July 28, 2014, Mr. Dunleavy resigned from the Board and the boards of directors of the Company's subsidiaries. The Company and Mr. Dunleavy have agreed to suspend his alleged employment claims pending resolution of the shareholder litigation. We have not established any provision for losses relating to these claims and pending litigation. Due to the stages of these proceedings, and considering the inherent uncertainty of these claims and litigation, at this time we are not able to predict or reasonably estimate whether we have any possible loss exposure or the ultimate outcome of these claims. (b) Regulatory Matters: SEC Subpoena On February 4, 2015, the Company received a subpoena from the Securities and Exchange Commission (“SEC”) requesting information related to the VWP Project. The Company has provided information to the SEC in response to that subpoena. The SEC investigation is ongoing and the Company continues to cooperate with the SEC in its investigation. We are unable to predict what action, if any, might be taken by the SEC or its staff as a result of this investigation or what impact, if any, the cost of responding to the SEC’s investigation or its ultimate outcome might have on our financial position, results of operations or liquidity. We have not established any provision for losses relating to this matter. Spain IVA (sales tax) In June 2012, the Company received notice that the Spanish tax authorities are inquiring into its 2010 IVA (value-added tax) filing for which the Company benefitted from the offset of approximately $250,000 of input tax. The Company believes that the inquiry will find that the tax credit was properly claimed and, therefore, no liability has been recorded. The Company issued two letters of credit in the amount of €278,828 ($301,915) at the request of the Spanish tax authorities. This is a customary request during the inquiry period. In November 2014, March 2015 and September 2015, the Company received partial refunds of the amount under dispute and continues to expect that this matter will be resolved in the Company’s favor. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (10) Income Taxes During the three and nine months ended January 31, 2016, the Company recorded an income tax benefit of $1,674,862, representing the proceeds from the sale of $19,705,000 of New Jersey net operating loss carryforwards and research and development tax credits. During the three and nine months ended January 31, 2015, the Company recorded an income tax benefit of $1,137,872, representing the proceeds from the sale of $14,004,000 of New Jersey net operating loss carryforwards and research and development tax credits. Other than as a result of the sale of New Jersey net operating loss carryforwards, the Company did not recognize any consolidated income tax benefit (expense) for the three and nine month periods ended January 31, 2016 and 2015. The Company has recorded a valuation allowance to reduce its net deferred tax asset to an amount that is more likely than not to be realized in future years. Accordingly, the benefit of the net operating loss that would have been recognized was offset by changes in the valuation allowance. During the three and nine months ended January 31, 2016, the Company had no material changes in uncertain tax positions. |
Note 11 - Operating Segments an
Note 11 - Operating Segments and Geographic Information | 9 Months Ended |
Jan. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (11) Operating Segments and Geographic Information The Company's business consists of one segment as this represents management's view of the Company's operations. The Company operates on a worldwide basis with one operating company in the US and operating subsidiaries in the UK and in Australia. Revenues and expenses are generally attributed to the operating unit that bills the customers. Geographic information is as follows: North America Europe Asia and Australia Total Three months ended January 31, 2016 Revenues from external customers $ 5,203 $ — $ — $ 5,203 Operating loss (3,359,582 ) (62,450 ) (20,389 ) (3,442,421 ) Three months ended January 31, 2015 Revenues from external customers $ 328,511 $ — $ — $ 328,511 Operating loss (2,784,095 ) (258,636 ) (47,194 ) (3,089,925 ) Nine months ended January 31, 2016 Revenues from external customers $ 605,281 $ — $ — $ 605,281 Operating loss (10,456,460 ) (228,432 ) (146,911 ) (10,831,803 ) Nine months ended January 31, 2015 Revenues from external customers $ 3,616,827 $ — $ — $ 3,616,827 Operating loss (8,981,672 ) (993,308 ) (768,151 ) (10,743,131 ) January 31, 2016 Long-lived assets $ 206,580 $ — $ — $ 206,580 Total assets 9,786,752 438,283 384,643 10,609,678 April 30, 2015 Long-lived assets $ 262,985 $ 913 $ — $ 263,898 Total assets 17,899,273 597,796 373,817 18,870,886 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | b) Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles 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, 2015 filed with the Securities and Exchange Commission (“SEC”) and elsewhere in this Form 10-Q. |
Liquidity Disclosure [Policy Text Block] | c) Liquidity The Company has incurred net losses and negative operating cash flows since inception. As of January 31, 2016, the Company had an accumulated deficit of $173.9 million. As of January 31, 2016, the Company’s cash and cash equivalents and marketable securities balance was approximately $9.5 million. Based upon the Company’s cash and cash equivalents and marketable securities balance as of January 31, 2016, the Company believes that it will be able to finance its capital requirements and operations into the quarter ending October 31, 2016. In addition, as of January 31, 2016, the Company’s restricted cash balance was approximately $0.4 million. The Company will require additional equity and/or debt financing to continue its operations as a going concern. If the Company is unable to raise additional funds when needed, its ability to operate and grow its business could be impaired. The Company cannot assure that it will be able to secure additional funding when needed or at all, or, if secured, that such funding on favorable terms. The Company continues to make investments in ongoing product development efforts in anticipation of future growth. The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, risks from lack of available financing and insufficient capital, performance of PowerBuoys, its inability to market and commercialize its PowerBuoys, technology development, scalability of technology and production, dependence on skills of key personnel, concentration of customers and suppliers, deployment risks and laws, regulations and permitting. In order to continue to implement its business strategy, the Company requires additional equity and/or debt financing. The Company does not currently have any committed sources of debt or equity financing, and the Company cannot assure you that additional equity and/or debt financing will be available to the Company as needed on acceptable terms, or at all. Historically, the Company has raised capital through securities sales in the public capital markets. If sufficient additional financing is not obtained when needed, the Company may be required to further curtail or limit operations, product development costs, and/or selling, general and administrative activities in order to reduce its cash expenditures to a sustainable level. This could cause the Company to be unable to execute its business plan, take advantage of future opportunities and may cause it to scale back, delay or eliminate some or all of its product development activities and/or reduce the scope of its operations. In January 2013, the Company filed a shelf registration statement on Form S-3 (the “2013 Form S-3” or the “2013 Form S-3 Shelf”). The 2013 Form S-3 Shelf was declared effective by the SEC in February 2013. Under the 2013 Form S-3 Shelf in June 2013, the Company established an At the Market Offering Facility (the “ATM Facility”) with Ascendiant Capital Markets, LLC (“Ascendiant”) via an At the Market Offering Agreement (the “ATM Agreement”). Under the ATM Agreement, the Company offered and sold shares of its common stock, par value $0.001 per share (the “Common Stock”) from time to time through Ascendiant, acting as sales agent, in ordinary brokerage transactions at prevailing market prices. Under the ATM Facility, during fiscal 2014, the Company issued 330,633 shares of its Common Stock at an average price to the public of $30.20 per share, receiving net proceeds from the ATM Facility of approximately $9,698,000. Also in fiscal 2014, the Company entered into an Underwriting Agreement with Roth Capital Partners, LLC on April 4, 2014, (the “Underwriting Agreement”) with respect to the issuance and sale in an underwritten public offering of an aggregate of 380,000 shares of its Common Stock at a price of $31.00 per share (the “Public Offering”) under the 2013 Form S-3. The Underwriting Agreement contained customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations, and a 90-day lock-up period that limited transactions in its Common Stock by the Company. Net proceeds from the Public Offering, which was completed in early April 2014, were approximately $10,828,000. During fiscal 2015, we did not sell any securities under or receive any proceeds from the sale of securities under the 2013 Form S-3 Shelf. In October 2015, the Company entered into an At the Market Offering Agreement (the “Offering Agreement”) with Rodman & Renshaw, a unit of H. C. Wainwright & Co., LLC (the “Manager”) under which the Company may offer and sell shares of its Common Stock, having an aggregate offering price of up to $2,906,836 from time to time through or to the Manager, acting as sales agent and/or principal, in reliance on and subject to the limitations of General Instruction I.B.6 of Form S-3 and other applicable laws and regulations (the “2015 ATM Offering”). Under the Offering Agreement, during the quarter ended January 31, 2016, we sold 95,024 shares of Common Stock under the Offering Agreement at an average price of $2.13 per share, for net proceeds to the Company of approximately $199,000 and we paid the Manager a sales commission of approximately $3,000 related to those shares. The Company has no obligation to sell shares of Common Stock under the Offering Agreement and may at any time upon notice terminate the Offering Agreement. Form S-3 limits the aggregate market value of securities that the Company is permitted to offer in any 12-month period under its 2013 Form S-3 Shelf, whether under the ATM Agreement, the Underwriting Agreement or otherwise, to one-third of its public float. In 2014, the Company fully utilized its available transaction capacity to sell securities using the 2013 Form S-3 Shelf in the ATM offering. However, the Company regained the ability to utilize the 2013 Form S-3 Shelf as we entered fiscal 2016. Under the SEC’s regulations, the securities registered under its 2013 Form S-3 Shelf may only be offered and sold if not more than three years have elapsed from the initial effective date of the Form S-3, except that if a new shelf registration statement is filed then the Company is permitted to continue to offer and sell securities under the Form S-3 until the earlier of the effective date of the new shelf registration statement or 180 days after the third anniversary of the initial effective date. On February 12, 2016, the Company filed a new Form S-3 shelf registration statement (the “2016 Form S-3” or the “2016 Form S-3 Shelf”) to register the offering and sale of up to $15 million in securities. The 2016 Form S-3 registration statement has not yet been declared effective by the SEC. Subject to compliance with applicable laws and regulations, the Company may continue to offer and sell shares of its Common Stock in the 2015 ATM offering with the Manager under the Offering Agreement until the earlier of August 10, 2016 or the date on which the SEC declares effective the 2016 Form S-3. Under the terms of the Offering Agreement with the Manager, the Company may offer and sell up to $2,906,836 of its Common Stock in the 2015 ATM Offering. However, pursuant to General Instruction I.B.6 of Form S-3, at the time of filing the 2016 Form S-3, the Company was able to offer and sell only $1,597,102 of its common stock under the 2016 Form S-3, and, as of the date of that filing, the Company had already offered and sold $251,603 in value of its common stock under the Offering Agreement. Thus, under the 2016 Form S-3, the Company is seeking to register the offering and sale of up to $1,345,499 in value of its Common Stock for sale in the 2015 ATM Offering pursuant to the Offering Agreement, which securities are included in the $15 million of securities the Company is seeking to register for offer and sale on the 2016 Form S-3. The sale of additional equity or convertible securities could result in dilution to the Company’s stockholders. If additional funds are raised through the issuance of debt securities or preferred stock, these securities could have rights senior to those associated with the Company’s Common Stock and could contain covenants that would restrict its operations. Financing may not be available in amounts or on terms acceptable to it, or at all. If the Company is unable to obtain financing when required, it may be required to reduce the scope of its operations, current projects, planned product development and marketing efforts, and/or selling, general and administrative activities which could materially and adversely affect the Company’s future opportunities, financial condition and operating results. |
Common Stock Disclosure [Policy Text Block] | (d) Reverse Stock Split At the annual meeting of stockholders on October 22, 2015, the Company’s stockholders approved a proposal to amend the Certificate of Incorporation of the Company to effect a reverse split of its Common Stock, at a ratio to be determined by the Company’s Board of Directors within a specific range and a reduction in the authorized number of shares of its Common Stock. On October 27, 2015, the Company filed a Certificate of Amendment to its Certificate of Incorporation to effect a one-for-10 reverse stock split of its Common Stock and to decrease the number of authorized shares of its Common Stock to 50,000,000 shares (the “Reverse Stock Split”). As a result of the Reverse Stock Split, as of the effective date of the Reverse Stock Split, every 10 shares of issued and outstanding Common Stock were combined into one issued and outstanding share of Common Stock, without any change in the par value per share. No fractional shares were issued in connection with the All share and per share data included in this report has been retroactively restated to reflect the Reverse Stock Split. |
Consolidation, Policy [Policy Text Block] | (a) Consolidation The accompanying consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Participation of stockholders other than the Company in the net assets and in the earnings or losses of a consolidated subsidiary is reflected as a non-controlling interest in the Company's Consolidated Balance Sheets and Statements of Operations, which adjusts the Company's consolidated results of operations to reflect only the Company's share of the earnings or losses of the consolidated subsidiary. As of January 31, 2016, there were no non-controlling interests. In September 2015, the Company re-purchased the non-controlling interest (consisting of 11.8%) of the Company's Australian subsidiary, Ocean Power Technologies (Australasia) Pty. Ltd. (“OPTA”) for nominal consideration and now has 100% ownership of OPTA. OPTA owns 100% of Victorian Wave Partners Pty. Ltd. (“VWP”), which is also organized under the laws of Australia. The Company also periodically evaluates its relationships with other entities to identify whether they are variable interest entities, and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements. As of January 31, 2016, there were no such entities. |
Use of Estimates, Policy [Policy Text Block] | (b) Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the legal costs associated with shareholder litigation and SEC subpoena; recoverability of the carrying amount of property and equipment; valuation allowances for receivables and deferred income tax assets; estimated costs to complete projects; and percentage of completion of customer contracts for purposes of revenue recognition. Actual results may differ from those estimates. |
Revenue Recognition, Policy [Policy Text Block] | (c) Revenue Recognition The Company’s contracts are either cost-plus or fixed-price contracts. Under cost-plus contracts, customers are billed for actual expenses incurred plus an agreed-upon fee. Currently, 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. 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. Generally, the Company recognizes revenue using the percentage-of-completion method based on the ratio of costs incurred to total estimated costs at completion. In certain circumstances, revenue under contracts that have specified milestones or other performance criteria may be recognized only when the customer acknowledges that such criteria have been satisfied. In addition, recognition of revenue (and the related costs) may be deferred for fixed-price contracts until contract completion if the Company is unable to reasonably estimate the total costs of the project prior to completion. These contracts are subject to interpretation, and management may make a judgment as to the amount of revenue earned and recorded. Because the Company has a small number of contracts, revisions to the percentage-of-completion determination, management interpretation or delays in meeting performance and contractual criteria or in completing projects may have a significant effect on revenue for the periods involved. Upon anticipating a loss on a contract, the Company recognizes the full amount of the anticipated loss in the current period. Under cost plus and firm fixed price contracts, a profit or loss on a project is recognized depending on whether actual costs are more or less than the agreed upon amount. Under cost sharing contracts, an amount corresponding to the revenue is recorded in cost of revenues, resulting in gross profit on these contracts of zero. The Company’s share of the costs is recorded as product development expense. Unbilled receivables represent expenditures on contracts, plus applicable profit margin, not yet billed. Unbilled receivables are normally Some of the Company’s projects are under cost-sharing contracts. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (d) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company invests excess cash in an overnight U.S. government securities repurchase bank account and a money market account. In accordance with the terms of the repurchase agreement, the Company does not take possession of the related securities. The agreement contains provisions to ensure that the market value of the underlying assets remains sufficient to protect the Company in the event of default by the bank by requiring that the underlying securities have a total market value of at least 100% of the bank’s total obligations under the agreement. January 31, 2016 April 30, 2015 Checking and money market accounts $ 4,697,646 $ 4,614,400 Overnight repurchase account 4,715,612 12,721,334 $ 9,413,258 $ 17,335,734 |
Marketable Securities, Policy [Policy Text Block] | (e) Marketable Securities Marketable securities with original maturities longer than three months but that mature in less than one year from the balance sheet date are classified as current assets. Marketable securities that the Company has the intent and ability to hold to maturity are classified as investments held-to-maturity and are reported at amortized cost. The difference between the acquisition cost and face values of held-to-maturity investments is amortized over the remaining term of the investments and added to or subtracted from the acquisition cost and interest income. As of January 31, 2016 and April 30, 2015, all of the Company’s investments were classified as held-to-maturity. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | (f) Restricted Cash and Credit Facility A portion of the Company’s cash is restricted under the terms of two security agreements. One agreement is between Ocean Power Technologies, Inc. and Barclays Bank. Under this agreement, the cash is on deposit at Barclays Bank and serves as security for letters of credit and bank guarantees that are expected to be issued by Barclays Bank on behalf of OPT LTD, one of the Company's subsidiaries, under a credit facility established by Barclays Bank for OPT LTD. The credit facility carries a fee of 1% per annum of the amount of any such obligations issued by Barclays Bank. The credit facility does not have an expiration date, but is cancelable at the discretion of the bank. As of January 31, 2016, there was €278,828 ($301,915) in letters of credit outstanding under this agreement. The second agreement is between Ocean Power Technologies, Inc. and the New Jersey Board of Public Utilities (NJBPU). The Company received a $500,000 recoverable grant award from the NJBPU of which $75,000 is outstanding at January 31, 2016. Under this arrangement, the Company annually assigns to the NJBPU a certificate of deposit in an amount equal to the outstanding grant balance. See Note 6. In addition, the Company previously had a letter of credit outstanding for the benefit of the Oregon Department of State Lands for the removal of certain of the Company’s anchoring and mooring equipment from the seabed off the coast of Oregon. During fiscal 2015, the Company completed the removal activity and reduced the letters of credit from $1,200,000 to $0. Restricted cash includes the following: January 31, 2016 April 30, 2015 Current: NJBPU agreement $ 75,000 $ 100,000 Barclay's Bank Agreement 302,101 338,561 $ 377,101 $ 438,561 January 31, 2016 April 30, 2015 Long Term: NJBPU agreement $ ? $ 50,000 $ ? $ 50,000 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (g) Foreign Exchange Gains and Losses The Company has invested in certain certificates of deposit and has maintained cash accounts that are denominated in British pounds sterling, Euros and Australian dollars. These amounts are included in cash, cash equivalents, restricted cash and marketable securities on the accompanying consolidated balance sheets. Such positions may result in realized and unrealized foreign exchange gains or losses from exchange rate fluctuations, which gains and losses are included in foreign exchange loss in the accompanying consolidated statements of operations. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Foreign exchange loss $ (188,424 ) $ (246,002 ) $ (194,266 ) $ (467,909 ) Foreign currency denominated certificates of deposit and cash accounts: January 31, 2016 April 30, 2015 Restricted $ 302,101 $ 338,561 Unrestricted 1,037,590 1,100,371 $ 1,339,691 $ 1,438,932 |
Property, Plant and Equipment, Policy [Policy Text Block] | (h) Property and Equipment 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 seven 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. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | (i) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash balances, overnight repurchase accounts, bank certificates of deposit and trade receivables. The Company invests its excess cash in highly liquid investments (typically, short-term bank deposits, Treasury bills, Treasury notes and money market funds) and does not believe that it is exposed to any significant risks related to its cash accounts, money market funds or certificates of deposit. The table below shows the percentage of the Company's revenues derived from customers whose revenues accounted for at least 10% of the Company's consolidated revenues for at least one of the periods indicated: Three months ended January 31, Nine months ended January 31, Customer 2016 2015 2016 2015 US Department of Energy 100 % 25 % 33 % 37 % European Union (WavePort project) ? ? 67 % 26 % Mitsui Engineering & Shipbuilding ? 75 % ? 37 % 100 % 100 % 100 % 100 % The loss of, or a significant reduction in revenues from, any of the current customers could significantly impact the Company's financial position or results of operations. The Company does not require its customers to maintain collateral. |
Earnings Per Share, Policy [Policy Text Block] | (j) 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 outstanding during the period. Due to the Company's net losses, potentially dilutive securities, consisting of outstanding stock options and non-vested restricted stock, were excluded from the diluted loss per share calculation due to their anti-dilutive effect. In computing diluted net loss per share, options to purchase shares of Common Stock and non-vested restricted stock issued to employees and non-employee directors, totaling 154,537 for the three and nine months ended January 31, 2016, and 193,701 for the three and nine months ended January 31, 2015, were excluded from the computations as the effect would be anti-dilutive due to the Company's losses. |
New Accounting Pronouncements, Policy [Policy Text Block] | (k) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued a new revenue recognition standard entitled “Revenue from Contracts with Customers.” In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, In November 2015, the FASB issued ASU 2015-17, Income Taxes (ASC 740): Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases |
Note 2 - Summary of Significa20
Note 2 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Cash and Cash Equivalents [Table Text Block] | January 31, 2016 April 30, 2015 Checking and money market accounts $ 4,697,646 $ 4,614,400 Overnight repurchase account 4,715,612 12,721,334 $ 9,413,258 $ 17,335,734 |
Schedule of Restricted Cash and Cash Equivalents [Table Text Block] | January 31, 2016 April 30, 2015 Current: NJBPU agreement $ 75,000 $ 100,000 Barclay's Bank Agreement 302,101 338,561 $ 377,101 $ 438,561 January 31, 2016 April 30, 2015 Long Term: NJBPU agreement $ ― $ 50,000 $ ― $ 50,000 |
Schedule of Foreign Exchange Gain Loss [Table Text Block] | Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Foreign exchange loss $ (188,424 ) $ (246,002 ) $ (194,266 ) $ (467,909 ) |
Schedule of Foreign Currency Denominated Certificates of Deposit and Cash Accounts [Table Text Block] | January 31, 2016 April 30, 2015 Restricted $ 302,101 $ 338,561 Unrestricted 1,037,590 1,100,371 $ 1,339,691 $ 1,438,932 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three months ended January 31, Nine months ended January 31, Customer 2016 2015 2016 2015 US Department of Energy 100 % 25 % 33 % 37 % European Union (WavePort project) ― ― 67 % 26 % Mitsui Engineering & Shipbuilding ― 75 % ― 37 % 100 % 100 % 100 % 100 % |
Note 3 - Marketable Securities
Note 3 - Marketable Securities (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Current [Member] | |
Notes Tables | |
Marketable Securities [Table Text Block] | January 31, 2016 April 30, 2015 Certificate of Deposit and US Treasury obligations $ 50,000 $ 75,000 |
Note 4 - Balance Sheet Detail (
Note 4 - Balance Sheet Detail (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | January 31, 2016 April 30, 2015 Accrued expenses Project costs $ 1,121,267 $ 867,771 Contract loss reserve 198,819 198,819 Employee incentive payments 245,569 529,274 Accrued salary and benefits 498,465 468,366 Legal and accounting fees 384,618 274,656 Other 269,780 168,233 $ 2,718,518 $ 2,507,119 |
Note 5 - Related Party Transa23
Note 5 - Related Party Transactions (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Related party consulting expense $ - $ 168,500 $ 52,667 $ 434,188 |
Note 6 - Debt (Tables)
Note 6 - Debt (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | January 31, 2015 April 30, 2015 Total debt $ 75,000 $ 150,000 Current portion of long-term debt (75,000 ) (100,000 ) Long-term debt $ ― $ 50,000 |
Note 8 - Stock-Based Compensa25
Note 8 - Stock-Based Compensation (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine Months Ended January 31, 2016 2015 Risk-free interest rate 1.6 % 1.6 % Expected dividend yield 0.0 % 0.0 % Expected life (in years) 5.5 5.5 Expected volatility 85.74 % 85.49 % |
Schedule of Share-based Compensation, Activity [Table Text Block] | Shares Weighted Weighted Outstanding as of April 30, 2015 108,376 $ 43.20 5.7 Forfeited (12,363 ) 48.16 Exercised — — Granted 5,138 5.80 Outstanding as of January 31, 2016 101,151 40.69 4.5 Exercisable as of January 31, 2016 86,725 45.58 4.0 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Number Weighted Issued and unvested at April 30, 2015 84,062 $ 7.30 Granted 3,300 2.17 Forfeited (12,130 ) 8.86 Vested (31,041 ) 7.14 Issued and unvested at January 31, 2016 44,191 $ 6.60 |
Note 11 - Operating Segments 26
Note 11 - Operating Segments and Geographic Information (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Notes Tables | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | North America Europe Asia and Australia Total Three months ended January 31, 2016 Revenues from external customers $ 5,203 $ — $ — $ 5,203 Operating loss (3,359,582 ) (62,450 ) (20,389 ) (3,442,421 ) Three months ended January 31, 2015 Revenues from external customers $ 328,511 $ — $ — $ 328,511 Operating loss (2,784,095 ) (258,636 ) (47,194 ) (3,089,925 ) Nine months ended January 31, 2016 Revenues from external customers $ 605,281 $ — $ — $ 605,281 Operating loss (10,456,460 ) (228,432 ) (146,911 ) (10,831,803 ) Nine months ended January 31, 2015 Revenues from external customers $ 3,616,827 $ — $ — $ 3,616,827 Operating loss (8,981,672 ) (993,308 ) (768,151 ) (10,743,131 ) January 31, 2016 Long-lived assets $ 206,580 $ — $ — $ 206,580 Total assets 9,786,752 438,283 384,643 10,609,678 April 30, 2015 Long-lived assets $ 262,985 $ 913 $ — $ 263,898 Total assets 17,899,273 597,796 373,817 18,870,886 |
Note 1 - Background, Basis of27
Note 1 - Background, Basis of Presentation and Liquidity (Details Textual) | Feb. 12, 2016USD ($) | Oct. 27, 2015shares | Jan. 31, 2016USD ($)$ / sharesshares | Jan. 31, 2016USD ($)$ / sharesshares | Jan. 31, 2016USD ($)$ / sharesshares | Jan. 31, 2015USD ($) | Apr. 30, 2015USD ($)$ / sharesshares | Apr. 30, 2014USD ($)$ / sharesshares | Feb. 13, 2016USD ($) | Oct. 31, 2015USD ($) | Jan. 31, 2013$ / shares |
Proceeds from S-3 Shelf for Period [Member] | |||||||||||
Proceeds from Issuance of Common Stock | $ 0 | ||||||||||
ATM Facility [Member] | |||||||||||
Proceeds from Issuance of Common Stock | $ 9,698,000 | ||||||||||
Stock Issued During Period, Shares, New Issues | shares | 330,633 | ||||||||||
Share Price | $ / shares | $ 30.20 | ||||||||||
Underwriting Agreement [Member] | |||||||||||
Proceeds from Issuance of Common Stock | $ 10,828,000 | ||||||||||
Stock Issued During Period, Shares, New Issues | shares | 380,000 | ||||||||||
Share Price | $ / shares | $ 31 | ||||||||||
Offering Agreement [Member] | Subsequent Event [Member] | |||||||||||
Aggregate Offering Price, Common Stock, Maximum | $ 1,345,499 | ||||||||||
Shelf Registration Amount Of Securities To Offer And Sale | $ 15,000,000 | ||||||||||
Offering Agreement [Member] | |||||||||||
Proceeds from Issuance of Common Stock | $ 199,000 | $ 251,603 | |||||||||
Stock Issued During Period, Shares, New Issues | shares | 95,024 | ||||||||||
Share Price | $ / shares | $ 2.13 | $ 2.13 | $ 2.13 | ||||||||
Aggregate Offering Price, Common Stock, Maximum | $ 2,906,836 | ||||||||||
Payments of Stock Issuance Costs | $ 3,000 | ||||||||||
Form S-3 Shelf [Member] | Subsequent Event [Member] | |||||||||||
Proceeds from Issuance of Common Stock | $ 1,597,102 | ||||||||||
Reverse Stock Split [Member] | |||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 10 | ||||||||||
Proceeds from Issuance of Common Stock | $ 204,923 | $ 650 | |||||||||
Retained Earnings (Accumulated Deficit) | (173,901,826) | $ (173,901,826) | (173,901,826) | $ (164,755,055) | |||||||
Cash and Cash Equivalents Marketable Securities and Restricted Cash | 9,500,000 | 9,500,000 | 9,500,000 | ||||||||
Restricted Cash and Cash Equivalents | $ 400,000 | $ 400,000 | $ 400,000 | ||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common Stock, Shares Authorized | shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 105,000,000 |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2016EUR (€)shares | Jan. 31, 2015shares | Jan. 31, 2016EUR (€)shares | Jan. 31, 2015shares | Jan. 31, 2016USD ($) | Sep. 30, 2015 | Apr. 30, 2015USD ($) | |
Barclays Bank [Member] | |||||||
Line of Credit Facility, Commitment Fee Percentage | 1.00% | ||||||
Long-term Line of Credit | € 278,828 | € 278,828 | $ 301,915 | ||||
New Jersey Board of Public Utilities 1 [Member] | |||||||
Long-term Line of Credit | 75,000 | ||||||
Restricted Cash and Cash Equivalents | 500,000 | ||||||
Oregon Department of State Lands [Member] | Line of Credit [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | $ 0 | |||||
Minimum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||
Maximum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||
OPTA [Member] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 11.80% | ||||||
Ownership Percentage | 100.00% | ||||||
Victorian Wave Partners Pty. Ltd. [Member] | OPTA [Member] | |||||||
Ownership Percentage | 100.00% | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 154,537 | 193,701 | 154,537 | 193,701 | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 0.00% | 0.00% | 0.00% | ||||
Restricted Cash and Cash Equivalents | $ 400,000 |
Note 2 - Cash and Cash Equivale
Note 2 - Cash and Cash Equivalents (Details) - USD ($) | Jan. 31, 2016 | Apr. 30, 2015 |
Checking and Savings Accounts [Member] | ||
Cash and cash equivalents | $ 4,697,646 | $ 4,614,400 |
Overnight Repurchase Account [Member] | ||
Cash and cash equivalents | 4,715,612 | 12,721,334 |
Cash and cash equivalents | $ 9,413,258 | $ 17,335,734 |
Note 2 - Cash Restricted Under
Note 2 - Cash Restricted Under Security Agreements (Details) - USD ($) | Jan. 31, 2016 | Apr. 30, 2015 |
NJBPU Agreement [Member] | ||
Restricted cash, current | $ 75,000 | $ 100,000 |
Restricted cash, noncurrent | 50,000 | |
Barclays Bank Agreement [Member] | ||
Restricted cash, current | $ 302,101 | 338,561 |
Restricted cash, current | $ 377,101 | 438,561 |
Restricted cash, noncurrent | $ 50,000 |
Note 2 - Foreign Exchange Gain
Note 2 - Foreign Exchange Gain (Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Foreign exchange loss | $ (188,424) | $ (246,002) | $ (194,266) | $ (467,909) |
Note 2 - Foreign Currency Denom
Note 2 - Foreign Currency Denominated Certificates of Deposit and Cash Accounts (Details) - USD ($) | Jan. 31, 2016 | Apr. 30, 2015 |
Restricted [Member] | ||
Foreign currency denominated certificates of deposit and cash accounts | $ 302,101 | $ 338,561 |
Unrestricted [Member] | ||
Foreign currency denominated certificates of deposit and cash accounts | 1,037,590 | 1,100,371 |
Foreign currency denominated certificates of deposit and cash accounts | $ 1,339,691 | $ 1,438,932 |
Note 2 - Revenues by Major Cust
Note 2 - Revenues by Major Customers (Details) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
US Department of Energy [Member] | ||||
Revenues, percentage | 100.00% | 25.00% | 33.00% | 37.00% |
European Union Waver Port Project [Member] | ||||
Revenues, percentage | 67.00% | 26.00% | ||
Mitsui Engineering and Ship Building [Member] | ||||
Revenues, percentage | 75.00% | 37.00% | ||
Revenues, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Note 3 - Marketable Securitie34
Note 3 - Marketable Securities That Mature Within One Year (Details) - USD ($) | Jan. 31, 2016 | Apr. 30, 2015 |
US Treasury Obligations [Member] | ||
Certificate of Deposit and US Treasury obligations | $ 50,000 | $ 75,000 |
Certificate of Deposit and US Treasury obligations | $ 50,000 | $ 75,000 |
Note 4 - Balance Sheet Details
Note 4 - Balance Sheet Details (Details) - USD ($) | Jan. 31, 2016 | Apr. 30, 2015 |
Accrued expenses | ||
Project costs | $ 1,121,267 | $ 867,771 |
Contract loss reserve | 198,819 | 198,819 |
Employee incentive payments | 245,569 | 529,274 |
Accrued salary and benefits | 498,465 | 468,366 |
Legal and accounting fees | 384,618 | 274,656 |
Other | 269,780 | 168,233 |
Accrued expenses total | $ 2,718,518 | $ 2,507,119 |
Note 5 - Related Party Transa36
Note 5 - Related Party Transactions (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | |
Interim Chief Executive Officer [Member] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | $ 108,500 | $ 0 | $ 254,188 | ||
Related Party Transaction Daily Consulting Fee | $ 1,500 | |||||
Former Executive Vice Chairman [Member] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | $ 60,000 | $ 52,667 | $ 180,000 | ||
Related Party Transaction Term of Agreement | 15 years | |||||
Related Party Transaction Monthly Consulting Fee | $ 20,000 |
Note 5 - Related Party Transa37
Note 5 - Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Related party consulting expense | $ 168,500 | $ 52,667 | $ 434,188 |
Note 6 - Debt (Details Textual)
Note 6 - Debt (Details Textual) - USD ($) | 1 Months Ended | ||
Nov. 30, 2011 | Jan. 31, 2016 | Apr. 30, 2015 | |
Corporation [Member] | |||
Long-term Debt | $ 500,000 | ||
New Jersey Board of Public Utilities 1 [Member] | |||
Long-term Debt Payment Terms | 5 years | ||
Long-term Debt | $ 75,000 | $ 150,000 |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details) - USD ($) | Jan. 31, 2016 | Apr. 30, 2015 |
Long-term Debt | $ 75,000 | $ 150,000 |
Current portion of long-term debt | $ (75,000) | (100,000) |
Long-term debt | $ 50,000 |
Note 7 - Deferred Credits Pay40
Note 7 - Deferred Credits Payable (Details Textual) | Jan. 31, 2016USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2001USD ($)TRate |
Customer Advances and Deposits | $ | $ 600,000 | ||
Deferred Credits Payable Option Details | T | 500,000 | ||
Deferred Credits Payable Market Discount Rate | Rate | 30.00% | ||
Deferred Credits Payable Market Liquidated Damages Rate | Rate | 30.00% | ||
Customer Advances or Deposits, Noncurrent | $ | $ 600,000 | $ 600,000 |
Note 8 - Stock-Based Compensa41
Note 8 - Stock-Based Compensation (Details Textual) - USD ($) | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Apr. 30, 2015 | |
Employee Stock Option [Member] | |||
Allocated Share-based Compensation Expense | $ 127,000 | $ 130,000 | |
Restricted Stock [Member] | Including Non-employee Compensation [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 138,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 73 days | ||
Restricted Stock [Member] | |||
Allocated Share-based Compensation Expense | $ 171,000 | 109,000 | |
Including Non-employee Compensation [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 62,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 292 days | ||
Associated Service Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 32,191 | ||
Performance based vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 12,000 | ||
Performance based vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 10,078 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | ||
Allocated Share-based Compensation Expense | $ 298,000 | $ 239,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.05 | $ 7.20 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 14,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 8 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 101,151 | 108,376 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 44,191 | ||
Treasury Stock, Shares, Acquired | 1,839 | 80 |
Note 8 - Weighted Average Fair
Note 8 - Weighted Average Fair Value Assumptions for Stock-Based Compensation (Details) | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Risk-free interest rate | 1.60% | 1.60% |
Expected dividend yield | 0.00% | 0.00% |
Expected life (in years) | 5 years 182 days | 5 years 182 days |
Expected volatility | 85.74% | 85.49% |
Note 8 - Stock-Based Compensa43
Note 8 - Stock-Based Compensation - Stock Options Under the Plans (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Jan. 31, 2016 | Apr. 30, 2015 | |
Balance, shares underlying options (in shares) | 101,151 | 108,376 |
Balance, weighted average exercise price (in dollars per share) | $ 40.69 | $ 43.20 |
Balance, weighted average remaining contractual term | 4 years 182 days | 5 years 255 days |
Forfeited (in shares) | (12,363) | |
Forfeited. (in dollars per share) | $ 48.16 | |
Exercised (in shares) | ||
Exercised. (in dollars per share) | ||
Granted (in shares) | 5,138 | |
Granted. (in dollars per share) | $ 5.80 | |
Exerciser, shares underlying options (in shares) | 86,725 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 45.58 | |
Exercisable, weighted average remaining contractual term | 4 years |
Note 8 - Non-vested Restricted
Note 8 - Non-vested Restricted Stock Under the Plans (Details) | 9 Months Ended |
Jan. 31, 2016$ / sharesshares | |
Non-vested Restricted Stock [Member] | |
Balance, issued and unvested (in shares) | shares | 84,062 |
Balance, issued and unvested (in dollars per share) | $ / shares | $ 7.30 |
Granted (in shares) | shares | 3,300 |
Granted (in dollars per share) | $ / shares | $ 2.17 |
Forfeited (in shares) | shares | (12,130) |
Forfeited (in dollars per share) | $ / shares | $ 8.86 |
Vested (in shares) | shares | (31,041) |
Vested (in dollars per share) | $ / shares | $ 7.14 |
Balance, issued and unvested (in shares) | shares | 44,191 |
Balance, issued and unvested (in dollars per share) | $ / shares | $ 6.60 |
Note 9 - Commitments and Cont45
Note 9 - Commitments and Contingencies (Details Textual) | 1 Months Ended | |||
Jun. 30, 2012USD ($) | Jan. 25, 2016 | Jun. 30, 2012EUR (€) | Jun. 30, 2012USD ($) | |
Stern Lawsuit [Member] | ||||
Affirmative Vote Percentage By Stockholders | 75.00% | |||
Spanish Tax Authorities [Member] | ||||
Input Tax | $ 250,000 | |||
Letters of Credit Outstanding, Amount | € 278,828 | $ 301,915 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
New Jersey Division of Taxation [Member] | ||||
Proceed from Sale of Loss Carryforwards and Tax Credits | $ 19,705,000 | $ 14,004,000 | ||
Unrecognized Tax Benefits | $ 0 | $ 0 | 0 | 0 |
Unrecognized Tax Benefits, Period Increase (Decrease) | 0 | 0 | ||
Income Tax Expense (Benefit) | $ (1,674,862) | $ (1,137,872) | $ (1,674,862) | $ (1,137,872) |
Note 11 - Operating Segments 47
Note 11 - Operating Segments and Geographic Information (Details Textual) | 9 Months Ended |
Jan. 31, 2016 | |
Number of Operating Segments | 1 |
Note 11 - Geographic Segment In
Note 11 - Geographic Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Apr. 30, 2015 | |
North America [Member] | |||||
Revenues from external customers | $ 5,203 | $ 328,511 | $ 605,281 | $ 3,616,827 | |
Operating loss | (3,359,582) | $ (2,784,095) | (10,456,460) | $ (8,981,672) | |
Long-lived assets | 206,580 | 206,580 | $ 262,985 | ||
Total assets | $ 9,786,752 | $ 9,786,752 | 17,899,273 | ||
Europe [Member] | |||||
Revenues from external customers | |||||
Operating loss | $ (62,450) | $ (258,636) | $ (228,432) | $ (993,308) | |
Long-lived assets | 913 | ||||
Total assets | $ 438,283 | $ 438,283 | $ 597,796 | ||
Asia and Australia [Member] | |||||
Revenues from external customers | |||||
Operating loss | $ (20,389) | $ (47,194) | $ (146,911) | $ (768,151) | |
Long-lived assets | |||||
Total assets | $ 384,643 | $ 384,643 | $ 373,817 | ||
Revenues from external customers | 5,203 | 328,511 | 605,281 | 3,616,827 | |
Operating loss | (3,442,421) | $ (3,089,925) | (10,831,803) | $ (10,743,131) | |
Long-lived assets | 206,580 | 206,580 | 263,898 | ||
Total assets | $ 10,609,678 | $ 10,609,678 | $ 18,870,886 |