Business
Paragon Asks Ocean Power CEO Stratmann to Provide Shareholder Transparency to Recent Announcements - Believes Ocean Power Will Report Significant Losses in Upcoming Quarterly Earnings Release
Paragon Asks Ocean Power CEO Stratmann to Provide Shareholder Transparency to Recent Announcements - Believes Ocean Power Will Report Significant Losses in Upcoming Quarterly Earnings Release.
About this update from Paragon Technologies, Inc.
[{"type":"text","content":"EASTON, PA / ACCESSWIRE / February 15, 2024 / Paragon Technologies, Inc. ("Paragon"), a diversified holding company, owning approximately 4.8% of the outstanding shares of Ocean Power Technologies, Inc. (NYSE American:OPTT), ("Company") ("OPT"), calls on Ocean Power's CEO Phillip Stratmann to immediately provide shareholders with appropriate transparency regarding OPT's recent order and funding announcements and how they impact the Company's bottom line in light of the Company's unsustainable expenses.Having failed on two separate occasions to achieve enough shareholder support for a quorum and thus delaying its annual meeting, we believe OPT is providing shareholders with incomplete and biased information regarding its recent contract and funding awards in an attempt to influence shareholders. To date, an embarrassingly small percentage of OPT's shareholders has voted in support of the current OPT board and management.Despite continued and worsening financial losses under this management team, this week OPT promotes a new order contract order and a "funding" award for its suite of projects. As the Company's largest shareholder and on behalf of all the individual investors who have suffered continued losses owning OPT stock, shareholders would like to know how these orders are going to affect the financial condition of the Company.Over the past three plus years, OPT has consistently celebrated negligible revenue increases while completely failing to acknowledge that expenses are growing faster than sales:FY Ended April 30, 2021 2022 2023 Q1/Q2 - 2024 Sales $ 1.2M $ 1.8M $ 2.7M $ 2.2M Expenses $ 12.5M $ 21.5M $ 28.3M $ 16.1M Net Loss ($14.8M) ($18.9M) ($26.3M) ($14.3M) The financial results speak for themselves: OPT expenses skyrocket in exchange for modest growth in revenue dollars. And rather than focus on OPT's real problem of its unsustainable expenses, growing losses and consistent decline in stock price, OPT instead continues to take victory laps.We invite CEO Stratmann to talk less about vague "funding" initiatives and instead outline and justify how OPT is going to be viable enough to achieve the "profitability in 2025" that he has repeatedly confirmed.Spending nearly $30 million to generate nearly $3 million in sales is not something that should be celebrated. B...