Ocean Power Technologies, Inc. has extended its Tax Benefits Preservation Plan through the close of business on June 29, 2029, to safeguard the availability and potential value of its federal net operating loss carryforwards (NOLs). The Board of Directors unanimously approved the amendment and restatement of the plan, which was previously set to expire on June 29, 2026. This strategic move aims to mitigate the risk of an ownership change that could substantially limit the company's ability to utilize its NOLs and other tax attributes.

The Tax Benefits Preservation Plan is designed to reduce the likelihood of an ownership change under Section 382 of the Internal Revenue Code by deterring any single investor or group from acquiring beneficial ownership of 4.99% or more of the company's outstanding common stock. While the plan cannot ultimately prevent such an ownership change, it serves as a mechanism to protect the company's tax assets.

Originally ratified by stockholders at the 2023 Annual Meeting, the amendment and restatement of the plan will be submitted for ratification at the 2026 Annual Meeting of Stockholders. The specific date for the 2026 meeting has not yet been announced.

Key Details of the Amendment

The extension underscores the company's commitment to preserving its tax benefits, which are critical for offsetting future taxable income. By maintaining the Tax Benefits Preservation Plan, Ocean Power Technologies aims to ensure continued financial flexibility and protection of its shareholder value.

Ocean Power Technologies (OPT) has successfully deployed a PowerBuoy system off the coast of New Jersey in support of Rutgers, The State University of New Jersey. The company also received a purchase order from Stevens Institute of Technology for a WAM-V unmanned surface vehicle. These developments highlight OPT's continued focus on converting awarded projects into operational systems and revenue within the academic research market.

The Rutgers project, supported by the New Jersey Economic Development Authority, is now fully installed and operational. The PowerBuoy replaces a legacy ocean monitoring system that relied on fixed seabed cables, providing continuous offshore power and communications without permanent infrastructure. This system will support ongoing ocean research, environmental monitoring, and the integration of surface and subsea sensors.

The order from Stevens Institute of Technology represents an additional engagement within the academic research market, characterized by multi-phase programs, recurring funding cycles, and follow-on deployment opportunities. The maritime drone will support advanced marine research and development initiatives and is currently in production.

Philipp Stratmann, Chief Executive Officer of OPT, commented on the developments. "The Rutgers deployment reflects our continued focus on converting awarded projects into operational systems and revenue," Stratmann stated. He added that the new order from Stevens demonstrates the repeatability of OPT's offerings within the advanced autonomy and sensor community. Stratmann noted that the company is building a growing base of customers requiring ongoing deployments, upgrades, and support.

System Advantages

Unlike traditional subsea cable systems that require complex installation and are difficult to modify, the PowerBuoy can be deployed quickly, relocated as needed, and upgraded over time. This flexibility supports both initial deployments and follow-on work, including system expansion, sensor integration, and long-term service.

Project Overview