Good morning, ladies and gentlemen, and welcome to the Fiscal Second Quarter 2019 Ocean Power Technologies Conference Call. My name is Matt and as a reminder, this conference call is being recorded. I would now like to turn the conference to your host Mr. Michael Porter, Investor Relations for Ocean Power Technologies. Thank you. You may begin.

Thank you, operator. Good morning and thank you for joining us for the Ocean Power Technologies conference call and webcast. On the call with me today are George Kirby, President and Chief Executive Officer; and Matthew Shafer, Chief Financial Officer and Treasurer. Following our prepared remarks, we will open the call for questions. This call is being webcast on the Company’s website at www.oceanpowertechnologies.com. It will also be available for replay after the call. On December 10, 2018, OPT issued its earnings press release, and filed its quarterly report on Form 10-Q for the second quarter of 2019 with the SEC. All of our public filings can be viewed on the SEC website at sec.gov or you may go to the OPT Website, oceanpowertechnologies.com. Now let me now reference the Safe Harbor Provisions of the U.S. Securities Laws for forward-looking statements. This conference call may contain forward-looking statements that are within the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases such as may, will, aim, will, likely, result, believe, expect, will, continue, anticipate, estimate, intend, plan, contemplate, seeks to, future, objective, goal, project, should, will, pursue and similar expressions of various variations of such expression. These forward-looking statements are based on assumptions made by management regarding future circumstances over which the Company may have little or no control and revolve -- involve risk, uncertainties and other factors that may cause actual results to be materially different for many future results, expressed or implied by such forward-looking statements. Some of these factors include among other following, future financial performance, expected cash flow, ability to reduce cost and improve operating efficiencies. Revenue growth and increased sales volumes, access to key markets, competition, ability to enter into relationships with partners and third parties, delivery and deployment of the PowerBuoy, increasing the power output of the PowerBuoy, hiring new key employees, expected cost of PowerBuoys, product and building customer relationships. Please refer to our most recent Form 10-Q and 10-K and subsequent filings with the SEC for a further discussion of these risks and uncertainty. We disclaim any obligation or intent to update the forward-looking statements in order to reflect events or circumstances discussed in this call. Now, I am pleased to introduce Mr. George Kirby, President and CEO of Ocean Power Technologies. Good morning, George.

Thank you, Michael, good morning and good morning everyone. I’m going to briefly discuss industry developments first, that will be followed with an update on the progress we’re making on our commercialization plan as well as a little background on our ground breaking new products. Then Matt Shafer, our Chief Financial Officer will be up for review of our financials. Then we’ll open the floor for questions. We’re continuing to see signs of increasing demand for our PowerBuoy solutions. The last few months have seen more demand from firms involved in offshore oil and gas exploration as they’re becoming more aware of our technology. From our perspective, the recent lower oil prices incentivize operators to reduce cost and make our operations more efficient which in turn leads to interest in our solutions as a path to savings. Moreover, the offshore oil and gas sector is becoming increasingly aware that all of their operation should have a minimal carbon footprint. Taken together, this creates an environment where our solutions can fulfill a vital need both financially and operationally. Evidence of this can be seen in the recent OPT contracts to supply PowerBuoy across a range of applications within offshore oil and gas. Last quarter, we shipped our PB3 PowerBuoy to be deployed in the Adriatic Sea, fulfilling a key milestone with our partner Eni. Likewise, we recently finalized the design work and customization for our PB3 PowerBuoy to be shipped to Premier Oil in the New Year for an upcoming deployment in the Central North Sea. The values of these contracts together could well exceed $3 million. As noted in last quarter’s call, OPT signed an agreement with Enel Green Power, a subsidiary of Enel Group which is a multinational energy company and a leading globally integrated electricity and gas operator.…

Thank you, George, and good morning everyone. The Company recorded revenue for the second quarter of $141,000 compared to revenue of $94,000 for the second quarter of last year. The increase in revenues this year was due to the start of contracts with Premier Oil, Eni and Enel Green Power during this quarter. The net loss for the second quarter of fiscal 2019 was $3.9 million compared to a net loss of $2.6 million for the second quarter of fiscal 2018. The increase was largely attributable to the increase in our cost of revenues due to higher upfront spending and material costs on new projects as well as higher spending on new product development and personnel costs as we continue to scale the business towards fulfilling our current and future potential customer contracts. Revenue for the first six months of fiscal 2019 was $172,000 compared to revenue of $289,000 for the first six months of fiscal 2018. The net loss for the first six months of fiscal 2019 was $7.1 million compared to a net loss of $5.2 million for the same period in fiscal 2018. Turning now to the balance sheet. As of October 31, 2018, total cash, cash equivalence, marketable securities and restricted cash were $4.6 million down from $12.3 million on April 30, 2018. Net cash used in operating activities during the six months ended October 31, 2018, was $7.6 million compared to $6.7 million during the prior year period. Note, on August 13th, we were pleased to announce that we have entered into a common stock purchase agreement with Aspire Capital, this agreement provides that Aspire is committed to purchase up to an aggregate of $10 million of our common stock over the 30 month term of the agreement. Additional details about transactions are available in our August 27th, filings with the SEC. We are encouraged and excited by this partnership with Aspire Capital. This agreement gives us greater flexibility and access to additional funding when we chose to use it. With that, I’ll turn it back to George.

Thanks, Matt. Before we move onto Q&A, I want to conclude by stating unequivocally that today OPT is in the best position it has ever been. We have a deeply committed team of professionals, tirelessly and aggressively pursuing and closing as many proposals as possible. Throughout the first 20 years of this company existence, there was smart money invested in this company because of our technology, now we’re monetizing that technology. We aren’t a science project anymore. We’re proving that we can sell and that we can deliver to our customers. Our entire organization is excited to be where we are right now, but we’re not close to being satisfied. We have high expectations as a company growing to be the industry leader in Ocean Energy Solutions. With that, operator, we’re now ready to take questions.

Great. Thank you. At this time, we will be conducting a question-and-answer session. [Operator Instructions] Our first question is from Peter Ruggiere from Dawson James. Please go ahead.

So, question, I’m looking at the slide that you just had on, you guys are deployed this said early November on the Adriatic Sea. Is that true? Or is it on the way there?

What we said was we had shipped the buoy. We are under a very strict confidentiality agreement with Eni, which precludes us from talking about their operations until they give us their written approval. So, we really can’t talk about anything more having to do with that deployment.

Did you ship one to Premier Oil yet? It says, December 2018 to ship it.

No, actually, we were able to do even more value added engineering and customization to this buoy. This is going to be a showcase buoy for Premier Oil and really for all the decommissioning applications. So, we just got done with all that design work and customization, and we’re looking to ship that in 2019 for a 2019 deployment with Premier Oil.

All right. Here’s a couple of questions where you guys have probably about 2.8 million in cash right now? That’s three months and this Aspire Capital that 10 million, I mean, you can draw this down. How much have you drawn down from the 10 million so far?

Well, first of all, backing up, Matt. What is our exact announced cash balance?

Yes. So, Peter, thanks for the question. Our cash as of the end of the reporting period, October 31st, was $4.6 million, and we’re continuing to hold that our historical burn rate that we’ve talked about with you in the past. So, we’re expecting to have that cash on hand to get us into the quarter ended of April 2019.

With respect to the second part of your question, we’ve drawn down a very limited number of shares. It’s actually disclosed in our 10-Q that we filed last evening with the SEC so far.

Now here’s another, have you guys received a letter about a reverse split from NASDAQ yet?

Yes. Peter, we talked about that a few times now. That letter was received back in August and it gives us 180 days to be able to correct until we have another discussion with NASDAQ about it.

Okay. So puts us into January, right?

January/February timeframe.

We've been with you guys for over two years now. I mean the technology is great. It’s been around for 25 years. I just -- the only thing that upsets me is the stock price. And I don’t, I mean, why isn’t someone just given like maybe like invested like a big chunk in to you guys with all this potential?

Well, look, I don’t think there’s -- I think it’s safe to say that we’re at least as dissatisfied with the share price as our shareholders are. I really can’t comment too deeply about your question. But I can say this. Now that we are commercialized and further commercializing as more demands materializes into actual orders, we become attractive and we will be able to have discussions more and more of those types of discussions with a wider birth of potential partners. So, as we deliver more contracts, opportunities will grow, we believe any way. That’s why we are 100% focused on trying to build a pipeline and get as many contracts in that pipeline and get them closed as quickly as possible.

In the next six months with Premier, Eni and Enel, what type of revenue do you see possibly happening?

Well, we said that the potential revenue for Eni and Premier Oil combined is over $3 million. We’ve also talked about the fact that we have over $10 million of outstanding proposals right now. And these are proposals that, I would say the majority of them we’re hoping to close before the end of the fiscal year, if they close, if we win them. There are some that could trickle into fiscal year ’20. And then there’s also revenue generating opportunities from additional value that we can bring to customers throughout the course of the contract. Things like change orders or additional customization, maybe a longer term maintenance agreement or additional monitoring and surveillance. There is always opportunities in working with our customers to deliver more value to them and to materialize more revenues on our side. So that's how we're looking at revenue generation right now.

On the Eni and Premier, or these other the 3 million you're speaking of, is that over three months, six months, a year period of time?

That's over the -- yes, that's a good question, Peter. That's over the course of their contracts. As you can -- we actually 8-K the contracts, there were some pricing areas that we redacted simply because that's competitive information that we're launching into these markets with, so we want to maintain as much of an edge as we possibly can. But I will tell you that both contracts have the ability to actually buy our PowerBuoy throughout the course of the contracts which is a very favorable term, and it also points to credibility and confidence right out of the gate with what it is that we're trying to do with our product with these customers.

And how many buoys are built right now?

We are working on numbers 3, 4, I'm sorry, 4, 5 and 6. So, we're actually building three buoys right now in our new facility in Monroe Township. And I will point out that these buoys are not being built on spec. That's really all that I can tell you about that right now.

[Operator Instructions] And if there are no further questions, I'd like to turn the floor back to management for any closing comments.

Great, thank you. I'd like to mention a few points since there we only had questions from Peter. I know that many investors either join the call or listen in, maybe they choose not to ask questions, but there certainly is a lot to talk about. And there's -- I'm sure, there's a lot of questions out there. So, I'll provide some more points and see if I can answer any of those unanswered questions. Just to give a brief update on where we are with current customers, I really already talked about that potential customers or operations. Many of you may have seen on our social media that two weeks ago, we hosted the Korean agency for Defense Development. They came to visit us by their request. They are looking at a possible powering of sonar arrays for the Korean Navy. So that was a very interesting first meeting with them. Tomorrow, we will be hosting a team from AT&T to discuss potential communications networks, powered by our PB3 PowerBuoy and other opportunities. It's really just an opportunity for this team, commercial and technical team coming into our facility to see our PowerBuoys being built, to see our operations, to really deep dive into our company, and for us to mutually explore potential opportunities for the future. I talked a little bit about our pipeline. The biggest thing that we can do right now for our company health as well as for our investors is to build a robust pipeline, the more real opportunities that we can develop in our pipeline and push towards the proposal phase, the more healthy we will be. And the reason why is, these are very long lead time conversions for opportunities, it takes a long time to evaluate these proposals that we’re putting…

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.