Ocean Power Technologies, Inc. (NYSEAMERICAN:OPTT) stock rose 0.72% (As on September 14, 11:38:13 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY 24 has reported the revenues of $1.3 million, compared to $0.7 million in Q123. This growth was driven by sales of WAM-V autonomous vehicles, revenue from the previously announced contract with the Department of Energy (“DOE”) and strategic consulting services. Net loss was $7.0 million for the Q124, as compared to a net loss of $5.9 million for the Q123. Combined cash, unrestricted cash, cash equivalents and short-term investments as of July 31, 2023 was $26.7 million, compared to $51.9 million at July 31, 2022. Bank debt remained at $0 as of July 31, 2023. Net cash used in operating activities for the quarter ended Q124 was $8.0 million, compared to $5.1 million for the same period in the prior year. This reflects the net loss noted above, payment of the earnout related to our autonomous vehicles business as a result of this business exceeding our expectations, investment in inventory to satisfy growing backlog, and payment of employment bonuses that were accrued during fiscal year 2023.

Moreover, Gross profit for Q124 was $0.7 million, as compared to a gross profit of $0.2 million in Q123. The gross margin rate was 52.1% and 27.2%, for the quarters ended Q124 and Q123, respectively. The improvement in gross margin has been driven by the MAR business, primarily through an increase in the higher margin WAM-V leasing business, and the strategic consulting services. Operating expenses were $8.1 million in Q124, down 7.8% sequentially from the previous quarter, however, up from $6.3 million in Q123, due to incremental investments in people and systems to support the growth in revenue, pipeline, and contracts.

On the other hand, on September 1, 2023 we were awarded a 3-year Indefinite Delivery, Indefinite Quantity (IDIQ) contract with a total contract value up to $10 million (not included in the pipeline figure noted above) from the National Oceanic and Atmospheric Administration (NOAA). This project will support Living Marine Resource Surveys and Research through the observation and collection of data to understand the abundance, distribution, and health of marine life and habitats which will be developed and deployed for mapping, monitoring, management and research missions. OPT will provide personnel, material, supplies, equipment, transportation, and facilities in support of this goal.