Ocean Power Technologies (OPTT) presents a deeply negative liquidation posture as of January 31, 2026. Applying standard recovery haircuts, haircutted assets total approximately $19-21M against total liabilities at face value of $21.1M, yielding negative to marginally positive gross liquidation proceeds before wind-down costs — consistent with the MFFAIS CLV of negative $13.8M. The primary asset base consists of: cash/equivalents of $7.1M (100% recovery), accounts receivable gross $6.7M with a $560K allowance (net $6.1M; at 90-95% haircut ~$5.5-5.8M), inventory $5.2M (at 60% ~$3.1M), PP&E net $5.8M (at 50-70% ~$2.9-4.1M), and intangibles of $3.4M net plus goodwill $8.5M (both zero under liquidation lens). The intangible and goodwill stack ($12M combined book value) contributes nothing to recovery and represents the largest source of the book-to-liquidation value gap. The liability stack of $21.1M includes $19.7M current liabilities, led by contract liabilities (deferred revenue) of $5.4M — a dollar-for-dollar obligation under liquidation — convertible notes payable current of $6.2M, accrued liabilities of $3.0M (up sharply from $1.3M at April 30, 2025, driven by employee incentive and salary accruals), and operating lease obligations of $2.3M with undiscounted cash commitments of $2.5M through 2029. The $6.2M convertible note balance represents a new senior obligation introduced this fiscal year ($10M May 2025 issuance plus $6.5M October 2025 issuance, partially converted to equity during the period; ~$9.7M principal converted YTD). The derivative liability of $2.2M (Level 3, related to convertible note conversion features, new this period vs. zero at April 30, 2025) sits in current liabilities and extinguishes at face value on liquidation. Going concern language is explicit: management states current cash may not fund planned expenditures through March 2027, and substantial doubt language is present. Cash burned approximately $19.9M in operations over nine months, ending at $7.1M. Backlog of $19.9M is discussed in MD&A but is not separately XBRL-tagged; it does not constitute a balance-sheet asset under GAAP or liquidation analysis. The accumulated deficit stands at $358.7M.
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