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Paragon Technologies Asks Board of Ocean Power Technologies to Explain How they Intend to Fund the Company’s Operations after July 31, 2024
Paragon Technologies Asks Board of Ocean Power Technologies to Explain How they Intend to Fund the Company’s Operations after July 31, 2024.
About this update from Paragon Technologies, Inc.
[{"type":"text","content":"EASTON, PA / ACCESSWIRE / August 2, 2023 / Paragon Technologies, Inc. ("Paragon") (OTC:PGNT), which owns approximately 4.0% of the outstanding shares of Ocean Power Technologies ("OPT" or the "Company")(OPTT) calls on the Board of Ocean Power Technologies to clearly and immediately explain to shareholders how the Company will fund its operations for the next fiscal year.On July 28, 2023 OPT filed is 10-K Annual Report with the Securities and Exchange Commission. In that filing OPT states:"As of April 30, 2023, the cash, cash equivalents, restricted cash, and short-term investments balance was $34.9 million…. Management believes the Company's current cash, cash equivalents, and short-term investments are sufficient to fund its planned expenditures through at least July 31, 2024."OPT also states,"the cash flows from customer revenues have not been sufficient to fund our operations and provide the capital resources for our business. For the two-year period ended April 30, 2023 our aggregate revenues were $4.5 million, our aggregate net losses were $45.2 million and our aggregate net cash used in operating activities was $43.0 million."On July 13, 2023, OPT hosted its Full Year 2023 earnings conference call. On that call, OPT Chief Financial Officer Bob Powers stated that:"We expect our OpEx [for Fiscal Year 2024 ending April 30, 2024] to be materially in line with our level of OpEx for Fiscal 2023."The facts based on statements and filings by OPT are:As of April 30, 2023, OPT had $34.9 million in cash and ST investments.For the Fiscal Year ended April 30, 2023, OPT consumed $28.3 million in OpEx.OPT expects Fiscal 2024 OpEx to be in line with Fiscal 2023 OpExOPT expects to run out of cash around July 31, 2024.We believe the above facts and statements to be a clear admission that OPT's management believes that OPT will not have sufficient cash to fund its business operations after July 31, 2024. And if the Company cannot fund operations beyond July 31, 2024 any shareholder value that exists today will likely be substantially gone.As the Company's largest shareholder and on behalf of all shareholders, Paragon calls on OPT's Board, CEO, and CFO to provide shareholders with a clear plan that answer the following questions:How does OPT expect to fund its business operatio...