What changed in Ocean Power Technologies, Inc.'s 10-K — 2024 vs 2025

ITEM 1. BUSINESS Overview Ocean Power Technologies, Inc. (“OPT,” “we,” “our,” or “the Company”) is a Maritime Domain Awareness (MDA) company specializing in innovative intelligent maritime solutions. These solutions include a variety of “as a service” systems, including Data as a Service (DaaS), Robotics as a Service (RaaS), and Power as a Service (PaaS).

These systems consist of a variety of platforms including the PowerBuoy®, our persistent sensor and power solution, the WAM-V® (Wave Adaptive Modular Vessel), our autonomous unmanned surface vehicle, and Merrows™, our user interface and command and control (C2) system that integrates multiple sensor feeds using software and hardware and enables artificial intelligence and machine learning (AI/ML) integration.

We design, manufacture, deploy, and operate these systems for defense, security, subsea infrastructure, offshore oil and gas, offshore energy, marine research, and communication markets. We operate primarily through a combination of direct sales and leases, strategic partnerships, and long-term service agreements.

Our business model emphasizes capital-light deployments, recurring revenue from leases, service and maintenance contracts, and high-margin technology sales and leases. We serve a global customer base, including the U.S. and allied defense agencies, offshore energy operators, and other commercial interests.

The common thread across these markets is the growing need for a persistent, autonomous, and sustainable offshore presence, a need we are well positioned to fulfill.

The Company holds numerous patents, including our recently awarded System and Method for Vehicle Charging which protects OPT’s breakthrough system for an autonomous, floating marine charging solution, and leverages decades of research including control systems, energy storage, and marine integration.

Our headquarters and assembly operations are located in New Jersey, and we maintain an additional manufacturing and robotics development facility in Richmond, CA. OPT is committed to enabling a smarter, safer ocean economy through innovation in ocean intelligence and power.

Our Solutions Maritime Domain Awareness Solution (“MDAS”) Maritime Domain Awareness refers to the effective understanding of anything associated with the maritime domain that could impact safety, security, economy, or the environment. The “ maritime domain” includes all areas and things on, under, related to, adjacent to, or bordering navigable waters, including the seafloor and airspace above.

Our MDAS provides a customizable, integrated surveillance solution designed for persistent, roaming, and real-time ocean monitoring. The system combines high-definition radar, optical and thermal imaging, and vessel Automatic Identification System (AIS) modules with edge processing, secure communications, and cloud-based analytics.

Our customers use and can apply our MDAS for: ● National Security (U.S. and allies ): Monitoring territorial waters, preventing smuggling, piracy, and terrorism. ● Commercial Operations : Securing shipping lanes, port infrastructure, offshore energy assets, data gathering for permitting and more. ● Environmental Protection : Detecting pollution, illegal fishing, marine mammal activity, and more. 1 MDAS hardware can be deployed on OPT platforms, including PowerBuoy® systems and WAM-V® autonomous vessels, and networked via satellite, Wi-Fi, and cellular links.

Our architecture enables multi-platform surveillance, with command-and-control functionality enhanced through proprietary software and third-party system integrations. These networks can incorporate external data sources such as satellite imagery, drones, weather, and bathymetry to form a comprehensive operational picture.

Our MDAS is also designed to provide persistent situational awareness beneath the ocean surface, an area inaccessible to conventional technologies such as radar or the AIS. This capability plays a critical role in supporting national security objectives, enabling autonomous maritime operations, and protecting marine resources and infrastructure.

Key system components include: Sensing and Detection ● Passive Acoustics: Identifies underwater sound signatures from sources such as submarines, divers, and marine life. ● Active Sonar: Emits and receives sound pulses to locate and track underwater objects and terrain. ● Magnetometers: Detects metallic anomalies, including submersibles and naval mines. ● Seismic and Pressure Sensors: Monitors vibrations and pressure changes indicative of movement or underwater disturbances.

Communications and Networking ● Acoustic Modems: Enable underwater data transmission between sensors and platforms over medium ranges. ● RF and Satellite Relay: Transmit compressed data from surface nodes to command centers via satellite or terrestrial links. ● Edge Processing: Utilizes onboard AI and machine learning to analyze data locally, prioritize key findings, and reduce transmission loads.

Data Fusion and Analysis ● Multi-Domain Correlation: Integrates inputs from undersea, surface, and aerial platforms to generate a unified operational picture. Command, Control, and Decision Support ● Automated Alerts: Flags high-priority events, such as unauthorized intrusions, suspicious underwater activity, or infrastructure tampering.

Representative Applications ● Defense and Security ○ Submarine and Unmanned Underwater Vehicle (UUV) detection in contested maritime zones. ○ Monitoring of strategic chokepoints and exclusive economic zones (EEZs). ○ Protection of undersea cables and energy infrastructure from sabotage. ● Critical Infrastructure Protection ○ Security for offshore oil and gas platforms, wind farms, desalination plants, and seaports. ● Environmental and Regulatory Compliance ○ Marine life monitoring and conservation support. ○ Detection of illegal fishing, dredging, or resource extraction. ● Commercial Operations ○ Enhanced situational awareness for offshore energy installations. ○ Navigation and mission support for autonomous subsea vehicles.

Our MDAS solution is a cornerstone of our broader DaaS strategy and reflects our leadership in scalable, autonomous maritime intelligence infrastructure. Data as a Service (“DaaS”) Our Data as a Service offering enables persistent, near real-time collection and transmission of maritime domain awareness and environmental intelligence data.

Our DaaS platform leverages autonomous uncrewed surface vehicles (USVs), including the WAM-V® platform, and PowerBuoy® systems, both of which integrate a range of environmental and security-focused sensors. 2 The DaaS offering is used to support operational needs in several high-impact domains, including: ● Maritime Border and Coastal Security: Monitoring unauthorized vessel activity, trafficking, and maritime incursions. ● Offshore Asset Surveillance: Enhancing situational awareness around oil platforms, wind farms, and port infrastructure. ● Illegal, Unreported, and Unregulated (IUU) Fishing: Enabling remote detection and interdiction support. ● Aquaculture and Environmental Monitoring: Gathering data to support aquaculture health, pollution tracking, and marine ecosystem compliance. ● Permitting and Infrastructure Inspection: Supporting regulatory approvals through data-enabled insights on site conditions.

Our WAM-V® USV platform supports modular payload integration and is engineered for operational stability in variable marine conditions. It has been deployed in a range of commercial and governmental missions, including high-resolution sonar surveys, subsea infrastructure assessments, berth clearance, dredging operations, and offshore renewable energy site characterization. We have completed multiple DaaS deployments with both government agencies and commercial customers.

These engagements have provided validation of our systems’ performance, interoperability, and mission relevance. Robotics as a Service (“RaaS”) Our Robotics as a Service offering provides customers with subscription-based access to our WAM-V® (Wave Adaptive Modular Vessel) autonomous surface vehicles. Under this model, customers lease WAM-V® units pursuant to time-bound agreements or based on a defined number of usage days.

These agreements frequently include minimum usage thresholds and bundled operational support services. Oftentimes these agreements also include OPT providing the training and operations for the vehicle. As an AUVSI Trusted Operator, (AUVSI is the world’s largest nonprofit organization dedicated to advancing the use of autonomous systems and robotics across air, land, and sea domains).

OPT’s RaaS “pilots” are well suited to deliver value for our customers. Through the RaaS model, OPT retains ownership of the deployed assets and is responsible for all system maintenance, repairs, and upgrades.

This arrangement offers customers a lower upfront capital expenditure compared to outright equipment purchase, while enabling scalable access to autonomous capabilities that can be aligned with peak mission windows or surge requirements. Our RaaS contracts have been utilized by both government and commercial customers for applications including port security, maritime surveying, infrastructure inspection, and environmental monitoring.

This model has allowed customers to accelerate access to autonomous maritime solutions while preserving operational flexibility. We believe that our RaaS model supports our strategic goals of increasing recurring revenue, improving asset utilization, broaden our customer base and expanding customer lifetime value.

As RaaS involves OPT-owned systems deployed in customer-controlled environments, we evaluate associated risks related to asset recoverability, service delivery logistics, and liability exposure.

Based on these assessments, we implement appropriate contractual protections, insurance coverage, and operational safeguards to mitigate such risks and ensure continuity of service and asset security Power as a Service (“PaaS”) Our Power as a Service offering provides customers with subscription-based access to our PowerBuoy® systems.

Under this model, customers lease PowerBuoy® platforms pursuant to time-bound agreements, enabling flexible deployment without the need for upfront capital investment. These leases are structured to accommodate both steady-state operations and surge requirements, offering a scalable energy solution for offshore missions. 3 The PowerBuoy® delivers autonomous, renewable energy via OPT-managed infrastructure.

This reduces the need for traditional power delivery methods such as subsea cabling, fuel-based generators, or periodic manual battery replacement. Our modular PowerBuoy® configurations can include solar-only systems, wave energy converters, and optional wind turbine integrations to support varying power loads across different marine environments. The PaaS offering is available for defense, offshore energy, and environmental monitoring applications.

The PaaS model aligns with our broader strategy to offer end-to-end maritime infrastructure services, complementing our DaaS and RaaS offerings. This integrated approach is designed to support recurring revenue growth, enhance customer retention, and differentiate OPT from competitors that focus exclusively on hardware or one-time equipment sales.

While we believe this model strengthens our customer relationships and operational resilience, there can be no assurance of continued customer uptake or contract renewals.

We also evaluate ongoing risks associated with offshore service delivery, environmental exposure, and asset maintenance and implement mitigation strategies including enhanced monitoring protocols, environmental hardening of equipment, and service-level agreements with local partners Autonomous Vehicles (“WAM-V ® ”) Our Autonomous Vehicles business centers around our patented WAM-V® (Wave Adaptive Modular Vessel) platform—a class of modular USVs engineered to support autonomous maritime operations in inshore, nearshore, and offshore environments.

The WAM-V® platform is designed to enable scalable, real-time data acquisition and payload customization based on mission requirements. WAM-V® vessels are manufactured in three standard sizes—8, 16, and 22 feet—and are built on a modular framework. This design allows interoperability across propulsion types (electric and/or liquid-fuel) and supports rapid integration of third-party sensors and mission systems.

These features make the platform suitable for a wide range of operational use cases, including underwater. survey, scientific research, port security, subsea infrastructure inspection, and defense surveillance. WAM-V® platforms have been deployed across the Middle East, Europe, Asia, Oceania, and the Americas.

These deployments are conducted through both direct sales and our RaaS offering, which provides subscription-based access to WAM-V® units and associated operational support as described above. Our Autonomous Vehicles segment complements our strategic focus on persistent maritime awareness and autonomy.

In particular, WAM-V® systems are increasingly integrated with our Merrows™ MDA suite, enabling mobile MDA operations to consolidate surface, subsea, and environmental data in real time. This integration expands our service capabilities and supports recurring revenue growth from both government and commercial customers.

We expect continued demand for WAM-V® platforms driven by factors including increased investment in autonomous marine systems, cost advantages over crewed vessels, global regulatory mandates for maritime monitoring, and defense modernization initiatives. However, actual adoption rates may be affected by procurement cycles, governemental budgetary constraints, and competitive offerings.

PowerBuoy® Our PowerBuoy® is a renewable energy-powered autonomous offshore platform designed to deliver continuous electrical power and real-time data connectivity in remote maritime environments. The PowerBuoy® converts any combination of wave motion, solar, and wind into energy and includes onboard energy storage to maintain system availability during low-sea-state, cloudy, or still conditions.

The platform enables persistent operations without reliance on liquid fuel-based power systems or crewed support vessels. PowerBuoy® deployments reduce operational costs and carbon emissions by replacing diesel generators and minimizing vessel-based maintenance. The system is designed for compact deployment, rapid installation, and long-duration missions, with remote diagnostics and limited on-site service requirements.

Depending on the mission profile, a single PowerBuoy® unit can operate autonomously for several months or longer. PowerBuoy® platforms support a variety of payloads, including surveillance cameras, acoustic and environmental sensors, weather stations, radar, AIS, and communication nodes.