Ocean Power Technologies, Inc.

Good morning, and welcome to the Ocean Power Technologies first quarter fiscal year 2022 conference call. A webcast of this call is also available on the company's website at www.oceanpowertechnologies.com. As a reminder, this conference call is being recorded and will be available for replay after its completion. Today, Phil Stratman, President and Chief Executive Officer, and Matthew Schaefer are Senior Vice President, Chief Financial Officer, and Treasurer are on the call. Following prepared remarks, we will open the call for questions. On September 13, 2021, OPT issued its earnings press release and filed its quarterly report on Form 10-Q for the quarter ended July 31, 2021, with the Securities and Exchange Commission. All OPT public filings are available on the SEC website at sec.gov or in the investor relations of the OPT website. Please note that management's prepared remarks may contain forward-looking statements that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases and are based on assumptions made by management regarding future circumstances over which the company may have little or no control and involve risks and uncertainties and other factors that may cause actual results to differ materially from any future results expressed or implied by such forward-looking statements. For further discussion on these risks and uncertainties, please refer to our most recent Form 10-K and subsequent filings with the SEC. We disclaim any obligation or intent to update the forward-looking statements in order to reflect events or circumstances discussed in this call. Now I am pleased to introduce Dr. Philip Stratman. Please go ahead, sir.

Thank you, and good morning. Today, I will review OPT's business operations and provide an update on activities and developments during the first quarter of fiscal year 2022 and up to today. Then Matt will review our financials before we open the line for questions. I'm proud to say OPT is making excellent progress as we continue to move toward our future as an ocean data and power services and solutions provider. As central as our PowerBubi technologies are to our solutions, We're keenly aware that these products alone will not fully satisfy most customers. OPT must provide more than just autonomous low-to-zero carbon power platforms on their own. We are working to provide meaningful solutions that help solve the complex challenges operators are facing at sea, from the needs of offshore energy developers and providers to defence and security organisations and more. To this end, we are working with experienced software and robotics developers at Fathom 5 and Green Sea to create a leading-edge proprietary cloud-based maritime domain awareness platform that features both expandable sensor and analytic capabilities as well as military-grade cybersecurity. As part of the development process, we are reading the initial versions of the solution for an at-sea trial off the coast of New Jersey. We've received the necessary permits for the locations where we expect to deploy PB3 and hybrid PowerBUIs with the equipment that make up our maritime domain awareness solution packages. This will allow us to optimize the platform's performance and provide prospective customers with opportunities to see the system at work. In addition to our focus on services, we will continue to develop PowerBUI products through a Small Business Innovation Research Award The U.S. Department of Energy's investment in our next generation of wave energy conversion devices drives the innovation necessary to tackle the challenges facing the operators in the marine environment. Moving our mass on spring wave energy conversion, or MOSWEC, system forward is integral to our competitive strategy. We are seeing the benefits of last fiscal year's acquisition of 3DEN Technologies as our strategic consulting services area is experiencing steady growth. An expanding client base is providing a steady stream of diverse consulting projects for our Houston-based team and we're cultivating additional interest in these services. OPT has been at the forefront of ocean energy development and we are continuing to innovate as we anticipate the needs of the ever-evolving markets we serve and seek to serve. We'll best accomplish that goal by pairing our in-house knowledge and expertise with the best available strategic parties and additional inorganic growth, if and when it makes sense. With that, let me turn the call over to Matt to discuss the financials.

Thank you, Philip, and good morning, everyone. Revenue for the first quarter of fiscal year 2022 was $300,000 compared to $200,000 in the first quarter of fiscal year 2021, primarily as a result of the revenue from strategic consulting services from the 3Dent acquisition. The net loss for the first quarter of fiscal year 2022 was $3.1 million compared to $3.4 million for the first quarter of fiscal year 2021. This decrease was mainly attributable to $900,000 gain on the extinguishment of the company's PPP loan after the SBA granted its forgiveness during the quarter and an income tax benefit of $1 million received during the quarter. These gains were partially offset by increases in the quarter for product development and administrative costs. Turning now to the balance sheet, total cash, cash equivalents, and restricted cash was $78.3 million as of July 31, 2021. Net cash used in operating activities was $5.3 million for the first quarter of fiscal 2022, representing an increase of $2.6 million in over the first quarter of fiscal year 2021, mainly as a result of higher project and employee-related costs and the settlement of litigation during the quarter. With that, I'll turn it back to Philip.