Ocean Power Technologies, Inc.
For the period ended Jul 31, 2026. Filed Sep 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2026 · Filed Sep 14, 2026
OPTT$0.43+14.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-01-31; filed 2026-03-17.
0001493152-26-010556
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-31; filed 2026-09-14.
0001493152-26-042579
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 91 current paragraphs.
52 unchanged; 16 reworded; 23 added; 27 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
We serve a global customer base, including the U.S. and allied defense agencies, offshore energy operators, and commercial interests. The common thread across these markets is the growing need for a persistent, autonomous, and sustainable offshore presence, a need we are uniquely positioned to fulfill.
Current report
The Company holds numerous patents 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. In addition, the Company maintains an office at the Association for Uncrewed Vehicle Systems International (AUVSI) headquarters in Washington, D.C., which serves to strengthen our strategic position in the fast-growing uncrewed systems market.
Current report
OPT is committed to enabling a smarter, safer ocean economy through innovation in ocean intelligence and power. As we look forward, our strategic priorities include expanding our customer and geographic base, accelerating technology adoption, enhancing recurring revenue, and driving margin growth through platform scalability and supply chain efficiencies.
Current report
The Company has incurred recurring operating losses and negative cash flows from operations and expects to continue to incur losses and use cash in operations for the foreseeable future. Based on the Company’s current operating plan, existing cash resources and anticipated cash flows from operations are not expected to be sufficient to fund planned operations and satisfy the Company’s contractual obligations for at least twelve months from the date the accompanying unaudited condensed consolidated financial statements are issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Current report
The report of the Company’s independent registered public accounting firm on the Company’s consolidated financial statements for the fiscal year ended April 30, 2026 included an explanatory paragraph regarding substantial doubt about the Company’s ability to continue as a going concern. The inclusion of this explanatory paragraph did not represent a modification of the auditor’s opinion on those consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty.
Current report
Subsequent to July 31, 2026, the Company did not file its Annual Report on Form 10-K for the fiscal year ended April 30, 2026 within the extension period provided by Rule 12b-25 under the Securities Exchange Act of 1934. The failure to timely file the Form 10-K constituted an event of default under the Notes (as defined below). As of the date of this Quarterly Report on Form 10-Q, the Company has not obtained a written waiver of the event of default. Although the holders of the Notes have not indicated that they intend to exercise remedies available to them under the Notes, there can be no assurance that they will not do so. Any enforcement action could have a material adverse effect on the Company’s liquidity, financial condition and ability to continue as a going concern.
Current report
Management’s plans to address the Company’s liquidity requirements include seeking additional capital through public or private equity or debt financings, pursuing strategic or commercial arrangements, increasing revenue and collections, reducing or delaying expenditures, and seeking to restructure or otherwise modify the Company’s outstanding debt obligations. The Company’s ability to obtain additional financing is subject to numerous risks and uncertainties, including market conditions, the Company’s operating performance, the trading price of its common stock, limitations arising from its outstanding indebtedness, and its ability to satisfy applicable securities-law and stock-exchange requirements. Additional financing may not be available when required or may be available only on terms that are unfavorable to the Company and its stockholders, including financing arrangements that result in substantial dilution to existing stockholders.
Current report
Management’s plans have not alleviated the substantial doubt about the Company’s ability to continue as a going concern because those plans are not currently considered probable of being effectively implemented within the applicable assessment period. There can be no assurance that the Company will be successful in implementing any of these plans.
Current report
In April 2026, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors pursuant to which the Company issued and sold senior convertible notes (the “Notes”) in an aggregate principal amount of $10.0 million, along with a 13% premium on the principal amount. The conversion rate related to this agreement is $12.00 per share. Proceeds from these Notes were used to pay off the remaining balances associated with the May and October 2025 convertible notes, respectively. Beginning on the closing date, the Notes are subject to quarterly cash amortization payments through maturity and monthly interest payment calculated on a 4.5% annual rate for the outstanding principal amount at the end of the previous month. Between the premium and annual interest rate, the effective interest rate on this Note is approximately 20%. The agreement also contains a make-whole interest whereby in connection with any conversion, redemption, or other repayment would result in an additional interest amount as if the principal remained outstanding through the maturity date. The Notes rank senior to the Company’s other unsecured indebtedness, subject to certain exceptions, and contain customary affirmative and negative covenants, including restrictions on indebtedness, liens, restricted payments, asset transfers, changes in business, and affiliate transactions, including a covenant requirement $2.0 million minimum cash balance to be maintained. The Notes also contain customary events of default. The conversion of these notes into equity may occur at times and under pricing mechanisms that could lead to a substantial number of shares being issued, potentially at prices below prevailing market prices.
Current report
As of July 31, 2026, backlog was $19.1 million, compared to $15.0 million at July 31, 2025. The backlog represents the value of unfulfilled, purchase orders and agreements with commercial and governmental customers. If any of our contracts were to be terminated, our backlog would be reduced by the expected value of the remaining terms of such contract.
Current report
Backlog figures do not necessarily reflect future revenue, as orders may be adjusted, delayed, or canceled, and our recognition of associated revenue is subject to the terms of the underlying agreements. The size of our backlog may also fluctuate materially based on the timing of new awards, contract renewals, or the conclusion of long-term engagements. Consequently, while we view backlog as a useful performance indicator, it should not be relied upon as a predictor of future results.
Current report
We measure the warrant liability associated with the June 2026 equity issuance (described below) at fair value using a Black-Scholes option-pricing model. The valuation requires the use of assumptions and judgments, including the market price of our common stock, expected stock-price volatility, the risk-free interest rate, the expected remaining term of the warrants and the expected dividend yield. Certain of these assumptions, particularly expected volatility, are not directly observable and may change significantly between reporting periods.
Current report
Changes in these assumptions, individually or in combination, could materially affect the estimated fair value of the warrant liability and the amount of the related noncash gain or loss recognized in our results of operations. An increase in the market price or expected volatility of our common stock generally would increase the warrant liability and result in a noncash loss, while a decrease in those assumptions generally would reduce the warrant liability and result in a noncash gain. See Note 13,Common Stock and Warrant Issuance, and Note 12,Fair Value Measurements, to our condensed consolidated financial statements for additional information.
Current report
We currently focus our sales efforts in key global markets in North America, South America, Europe and Asia. In fiscal 2026, we made significant progress in diversifying our customer and geographic base. Our strategic efforts to expand into defense, energy, and environmental monitoring markets in Europe, the Middle East, and Africa (EMEA) resulted in a substantial increase in EMEA-sourced revenue. This geographic expansion reflects the increasing global relevance of our autonomous maritime systems, particularly among government and industrial customers. It also demonstrates the early success of our international channel development initiatives, which we intend to further scale in fiscal 2026 through targeted partnerships, regional deployments, and export-driven offerings.
Current report
Revenues for the three months ended July 31, 2026 increased approximately $0.5 million related primarily to ongoing buoy operations during the current year.
Current report
Product development
Current report
Product development expenses increased by $2.6 million to $2.7 million for the three months ended July 31, 2026, compared with $0.1 million for the corresponding prior-year period. The increase was primarily attributable to a charge related to the July 2026 acquisition of in-process research and development assets from Columbia Power Technologies, Inc. The acquired technology had not reached technological feasibility and had no alternative future use and, accordingly, the acquisition-date cost was expensed. Approximately $2.0 of the charge related to common stock issued as consideration and was noncash.
Current report
Interest expense
Current report
The warrants issued in the June 2026 registered direct offering are accounted for as derivative liabilities and are measured at fair value at each reporting date. For the three months ended July 31, 2026, we recognized a noncash gain of approximately $4.9 million from the change in fair value of the warrant liability. There was no comparable amount during the corresponding period of the prior year. The change in fair value during the period was primarily attributable to changes in the market price of our common stock and other valuation assumptions. Because the warrant liability is remeasured each reporting period, changes in our stock price and the other valuation assumptions may result in significant noncash gains or losses in future periods. These fair-value adjustments affect our reported results of operations but do not affect our cash flows from operating activities.
Current report
On June 8, 2026, we completed a registered direct offering in which we issued 833,334 shares of common stock together with warrants to purchase up to 833,334 additional shares of common stock. The combined purchase price was $12.00 for each share of common stock and accompanying warrant. We received gross proceeds of $10.0 million and net proceeds of approximately $9.3 million after placement-agent fees and other offering expenses. We used a portion of the net proceeds to repay principal and other amounts due under our convertible notes payable. The remaining proceeds have been, and are expected to be, used for working capital and other general corporate purposes.
Current report
The offering increased our liquidity during the quarter; however, the net proceeds do not eliminate our need to obtain additional capital to fund our operations and satisfy our obligations. We expect to continue evaluating potential sources of capital, which may include additional public or private equity offerings, debt financings, strategic transactions or other financing arrangements. Our ability to obtain additional financing is subject to market conditions and other factors beyond our control, and there can be no assurance that financing will be available when needed or on acceptable terms. If we are unable to manage this, we may have to consider other options, such as selling assets, raising additional debt or equity capital, filing bankruptcy, or ceasing operations.
Current report
The warrants become exercisable on December 8, 2026, at an initial exercise price of $12.00 per share. If all warrants were exercised for cash at the initial exercise price, we would receive additional gross proceeds of $10.0 million. However the decision to exercise the warrants is within the control of the holders. Accordingly, we cannot predict whether or when the warrants will be exercised, and potential proceeds from their exercise should not be considered a committed source of liquidity. We have not assumed the receipt of any warrant exercise proceeds in our assessment of available liquidity.
Current report
Net cash provided by financing activities for the three months ended July 31, 2026 included approximately $9.0 million of net proceeds from the offering.
Removed paragraphs (27)
Previous report
During the quarter and as described in more detail below, we issued an additional $6.5 million of convertible notes to institutional investors, and increased our backlog from comparable prior year period.
Previous report
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The accompanying consolidated financial statements have been prepared on a basis which assumes the Company is a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from any uncertainty related to the Company’s ability to continue as a going concern. Such adjustments could be material.
Previous report
At-the-Market Offering Program
Previous report
On August 8, 2025, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with Ladenburg Thalmann & Co. Inc. under which we may offer and sell, from time to time, shares of our common stock having an aggregate gross sales price of up to $40.0 million. We intend to use any net proceeds for general corporate purposes, including sales and marketing, product development, working capital, capital expenditures, repayment or refinancing of indebtedness, repurchases or redemptions of securities, and potential acquisitions.
Previous report
This facility replaced our prior ATM program, which was terminated effective August 8, 2025.
Previous report
In May 2025, we issued $10.0 million aggregate principal amount of convertible notes with a 24-month maturity, receiving net proceeds of $9.7 million. The notes are convertible into shares of our common stock under specified terms, and conversion could result in dilution to existing shareholders. On October 7, 2025, the Company issued and sold to the investors $6.5 million of additional notes. There are $8.5 million of additional notes available under the purchase agreement with the investors.
Previous report
As of January 31, 2026, backlog was $19.9 million, compared to $7.5 million at January 31, 2025. Backlog represents unfulfilled purchase orders and agreements with commercial and governmental customers. The Company expects to convert all current backlog within the next 12 to 36 months. The amount and timing of backlog conversion to revenue is subject to change.
Previous report
Revenues for the three months ended January 31, 2026 and 2025 were approximately $0.5 million and $0.8 million, respectively. The year-over-year decline in revenue was largely driven by timing impacts associated with the U.S. federal government shutdown. These disruptions shifted a number of OPT deliverables and development activities into subsequent quarters, which reduced our revenue.
Previous report
Cost of revenues for the three months ended January 31, 2026 and 2025 increased to $1.3 million from $0.6 million, respectively. The year-over-year increase is related primarily to full recognition of losses associated with contracts in strategically important markets. The expenses associated with these projects are now substantially complete, although they will continue to generate revenue over the next several months. Importantly, our core programs and commercial pipeline continue to demonstrate improving margin quality and operating leverage.
Previous report
Interest (expense)/income
Previous report
Other expense, net
Previous report
Other expense, net for the three months ended January 31, 2026 and 2025 was $96,000 and (13,000), respectively. This change is due to insurance proceeds in the current year, whereas the prior year expense was related to realized foreign exchange loss.
Previous report
The change in the fair value of derivatives for the three months ended January 31, 2026 and 2025 was $1.6 million and zero respectively. The increase is a result of the fair value of the current years derivative in association with the convertible debt issued in May and October of 2025.
Previous report
Loss on extinguishment of debt
Previous report
The loss on extinguishment of debt of $0.8 million for the period ended January 31, 2025 relates to convertible notes issued in December 2024 that were converted to common stock in December 2024. There was no similar loss in the comparable current year period.
Previous report
Revenues
Previous report
Revenues for the nine months ended January 31, 2026 and 2025 were approximately $2.1 million and $4.5 million, respectively. The year-over-year decrease is primarily related to the timing of deliveries on current year projects versus the prior year contracts of WAM-Vs.
Previous report
Cost of revenues
Previous report
Operating expenses
Previous report
Operating expenses for the nine months ended January 31, 2026 and 2025 were $24.2 million and $15.7 million, respectively. The increase of approximately $8.5 million was primarily the result of the significant increases in share-based compensation of $6.5 million, increases in employee-related expenses of $1.5 million, an increase in product development costs of $0.5 million, and increases in general and administrative fees of $0.5 million, offset partially by decreases in professional fees of $0.5 million.
Previous report
Interest (expense)/income
Previous report
Interest (expense)/income for the nine months ended January 31, 2026 and 2025 was ($1.6) million and $13,000, respectively, with the change primarily related to interest expenses associated with the May and October 2025 convertible notes.
Previous report
Other (expense) income, net
Previous report
Other (expense) income, net for the nine months ended January 31, 2026 and 2025 was $(32,000) and 4,000, respectively, with the change primarily related to a litigation settlement of $195,000, offset by insurance proceeds of $163,000 in the current year.
Previous report
The change in the fair value of derivatives for the nine months ended January 31, 2026 and 2025 was $1.6 million and zero respectively. The increase is a result of the fair value of the current years derivative in association with the convertible debt issued in May and October of 2025.
Previous report
Loss on extinguishment of debt
Previous report
The loss on extinguishment of debt of $0.8 million as of January 31, 2025 relates to convertible notes issued in December 2024 that were converted to common stock in December 2024.
Reworded paragraphs (16)
Previous wording
There have been no material changes to the Company’s business description from that disclosed in our Annual Report on Form 10-K for the year ended April 30, 2025, filed with the SEC on July 24, 2025, and our Quarterly Report on Form 10-Q for the quarter ended July 31, 2025, filed with the SEC on September 15, 2025, except as noted below.
Current wording
There have been no material changes to the Company’s business description from that disclosed in our Annual Report on Form 10-K for the year ended April 30, 2026, filed with the SEC on August 19, 2026.
Previous wording
During the nine months ended January 31, 2026, the Company incurred a net loss of approximately $29.6 million and used cash in operations of approximately $19.9 million. The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect the Company’s future operating results and could cause actual results to vary materially from expectations include, but are not limited to, performance of its products, its ability to market and commercialize its products and new products that it may develop, access to capital, technology development, scalability of technology and production, ability to attract and retain key personnel, concentration of customers and suppliers, pending or threatened litigation and deployment risks and integration of acquisitions.
Current wording
During the three months ended July 31, 2026, the Company incurred a net loss of approximately $10.5 million and used cash in operations of approximately $10.2 million. The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect the Company’s future operating results and could cause actual results to vary materially from expectations include, but are not limited to, performance of its products, its ability to market and commercialize its products and new products that it may develop, access to capital, technology development, scalability of technology and production, ability to attract and retain key personnel, concentration of customers and suppliers, pending or threatened litigation and deployment risks and integration of acquisitions.
Previous wording
There have been no material changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the year ended April 30, 2025.
Current wording
There have been no material changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the year ended April 30, 2026 other than noted below.
Previous wording
In July 2025, the FASB issued Accounting Standards Update 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. ASU 2025-05 is effective for fiscal years beginning after March 17, 2026, and interim reporting periods in those years. Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply the amendments prospectively. We are currently evaluating the potential impact of adopting ASU 2025-05 on our consolidated financial statements and disclosures.
Current wording
In July 2025, the FASB issued Accounting Standards Update 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05”). ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods in those years. Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply the amendments prospectively. The Company adopted ASU 2025-05 on May 1, 2026 and the adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.
Previous wording
We currently focus our sales efforts in key global markets in North America, South America, Europe and Asia. The following table shows the percentage of our revenues by geographical location of our customers for the three and three months ended January 31, 2026 and 2025.
Current wording
The following table shows the percentage of our revenues by geographical location of our customers for the three months ended July 31, 2026 and 2025.
Previous wording
Our cost of revenue consists primarily of subcontracts, incurred materials, labor and manufacturing overhead expenses, such as engineering expenses, equipment depreciation, maintenance, and facility related expenses, and includes the cost of equipment to customize the PowerBuoy®, WAM-V® and our other products supplied by third-party suppliers. Cost of revenue also includes PowerBuoy® and other product system delivery and deployment expenses and may include losses recorded at the time a loss is forecasted to be incurred on a contract.
Current wording
Our cost of revenue consists primarily of subcontracts, materials incurred, labor and manufacturing overhead expenses, such as engineering expenses, equipment depreciation, maintenance, and facility related expenses, and includes the cost of equipment to customize the PowerBuoy®, WAM-V® and our other products supplied by third-party suppliers. Cost of revenue also includes PowerBuoy® and other product system delivery and deployment expenses and may include losses recorded at the time a loss is forecasted to be incurred on a contract.
Previous wording
Cost of revenues for the nine months ended January 31, 2026 and 2025 increased to $4.3 million from $3.1 million, respectively. The year-over-year increase is related primarily to full recognition of one-time losses associated with contracts in strategically important markets. The expenses associated with these projects are now substantially complete, although they will continue to generate revenue over the next several months. Importantly, our core programs and commercial pipeline continue to demonstrate improving margin quality and operating leverage.
Current wording
Cost of revenues for the three months ended July 31, 2026 increased approximately $3.3 million and is related primarily to the recognition of one-time losses associated with contracts in strategically important markets, including $0.3 million related to revenue and cost of goods sold at no margin to the Company for change orders on existing contract. The expenses and revenues associated with these projects will continue over the next several months.
Previous wording
Operating expenses for the three months ended January 31, 2026 and 2025 were $8.4 million and $6.1 million, respectively. The increase of approximately $2.3 million was primarily the result of the significant increases in share-based compensation of $1.8 million and increases in employee related expenses of $0.5 million compared to prior year.
Current wording
Operating expenses for the three months ended July 31, 2026 increased approximately $5.2 million and was primarily the result of the significant increases in product development of $2.6 million, one-time non-cash losses on abandonment of assets and warrant acquisition expense of $1.4 million, and increases in employee-related expenses of $0.8 million.
Previous wording
Interest (expense)/income for the three months ended January 31, 2026 and 2025 was $(726,000) and $6,000, respectively, with the change primarily related to interest expenses associated with the May and October 2025 convertible notes.
Current wording
Interest expense for the three months ended July 31, 2026 and 2025 was $373,000 and $310,000, respectively, with the change primarily related to interest expenses associated with the May and October 2025 convertible notes and the April 2026 convertible note.
Previous wording
Our cash requirements relate primarily to working capital needed to operate and grow our business including funding operating expenses. We have experienced and continue to experience negative cash flows from operations and net losses. The Company incurred net losses of $29.6 million and $15.1 million for the nine months ended January 31, 2026 and 2025, respectively. Refer to “Liquidity Outlook” below for additional information.
Current wording
Our cash requirements relate primarily to working capital needed to operate and grow our business including funding operating expenses. We have experienced and continue to experience negative cash flows from operations and net losses. The Company incurred net losses of $10.5 million and $7.4 million for the three months ended July 31, 2026 and 2025, respectively. Refer to “Liquidity Outlook” below for additional information.
Previous wording
During the nine months ended January 31, 2026, net cash used in operating activities was $19.9 million, an increase of of $5.3 million compared to net cash used in operating activities during the nine months ended January 31, 2025 of $14.6 million. This primarily reflects an increase in net loss of $13.8 million, account receivable, and inventory on hand, partially offset an increase in accounts payable, contract liabilities, and equity compensation in the current year versus the prior year.
Current wording
During the three months ended July 31, 2026, net cash used in operating activities was $10.2 million, an increase of $4.6 million compared to net cash used in operating activities during the three months ended July 31, 2025 of $5.6 million. This primarily reflects an increase in net loss of $3.1 million, contract assets, contract liabilities, and inventory on hand, partially offset an increase in accounts payable in the current year versus the prior year.
Previous wording
Net cash used in investing activities during the nine months ended January 31, 2026 was $1.8 million, compared to $0.4 million during the nine months ended January 31, 2025, a change of $1.4 million. The net cash used in investing activities during the nine months ended January 31, 2026 was due to the purchase of property, plant and equipment.
Current wording
Net cash used in investing activities during the three months ended July 31, 2026 was $0.1 million, compared to $1.5 million during the three months ended July 31, 2025, a change of $1.3 million. The net cash used in investing activities during the three months ended July 31, 2026 was due to the purchase of property, plant and equipment.
Previous wording
Net cash provided by financing activities during the nine months ended January 31, 2026 and January 31, 2025 was $22.0 million and $21.9 million, respectively. The current year activity was driven by the proceeds raised related to the issuance of the May and October 2025 convertible notes of $17.6 million and ATM proceeds of $5.2 million, and the prior year activity was related primarily to ATM proceeds of $16.8 million, $3.2 million in proceeds related to convertible debt issued in December 2024, and proceeds from other capital rases of $2.5 million discussed above under “Liquidity”.
Current wording
Net cash provided by financing activities during the three months ended July 31, 2026 and July 31, 2025 was $9.0 million and $10.2 million, respectively. The current year activity was driven by the proceeds raised related to the June common stock and warrant offering of $10.0 million and ATM proceeds of $1.4 million, and the prior year activity was related primarily to ATM proceeds of $0.3 million, and $9.9 million in proceeds related to convertible debt issued in May 2025 discussed above under “Liquidity”.
Previous wording
There was no material effect of exchange rates on cash and cash equivalents during either the three or nine months ended January 31, 2026 and January 31, 2025.
Current wording
There was no material effect of exchange rates on cash and cash equivalents during either the three months ended July 31, 2026 and July 31, 2025.
Previous wording
Since our inception, the cash flows from customer revenues have not been sufficient to fund our operations and provide the capital resources for our business. As of January 31, 2026, our year-to-date revenues were $2.1 million, our year-to-date net losses were $29.6 million, and our year-to-date net cash used in operating activities was $19.9 million.
Current wording
Since our inception, the cash flows from customer revenues have not been sufficient to fund our operations and provide the capital resources for our business. As of July 31, 2026, our year-to-date revenues were $1.7 million, our year-to-date net losses were $10.5 million, and our year-to-date net cash used in operating activities was $10.2 million.
Previous wording
Our business is capital intensive, and through January 31, 2026, we have been funding our business principally through sales of our securities. As of January 31, 2026, our cash and cash equivalents and long-term restricted cash balance was $7.2 million and we expect to fund our business with this amount and, to a lesser extent, with our cash flow generated from operations. Management believes the Company’s current cash and cash equivalents, and short term investments, may not be sufficient to fund its planned expenditures through March 2027.
Current wording
Our business is capital intensive, and through July 31, 2026, we have been funding our business principally through sales of our securities. As of July 31, 2026, our cash and cash equivalents and long-term restricted cash balance was $7.5 million and we expect to fund our business with this amount and, to a lesser extent, with our cash flow generated from operations. Management believes the Company’s current cash and cash equivalents, and short term investments, may not be sufficient to fund its planned expenditures through September 2027.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Nine months ended January 31, 2026 compared to the nine months ended January 31, 2025
Previous report — wording carried elsewhere
The following table contains selected statement of operations information, which serves as the basis of the discussion of our results of operations for the nine months ended January 31, 2026 and 2025.
Previous report — wording carried elsewhere
Change in fair value of derivatives