Ocean Power Techs reports 11.2% backlog increase, prepares for buoy orders amid rising demand signals and strategic initiatives.

Discussions that were paused have resumed with clear direction and we're seeing concrete steps from multiple agencies to expand maritime domain awareness and autonomous operations. In addition to participating in the Rapid Capabilities Office Launch in Washington D.C. we are tracking new initiatives such as the US Coast Guard's Raptor effort, which further signals the government's intent to deploy scalable uncrewed systems and long duration sensing solutions. These efforts align directly with the capabilities of our platforms. We're also seeing growing interest in buoy based persistent surveillance. While we will speak to specific awards once finalized, we are preparing for anticipated buoy orders and our operational planning reflects this expectation. The combination of long duration power solutions and our ASV platform positions us well for progress requiring continuous maritime presence internationally, we continue to advance customer engagement. We conducted demonstrations in Latin America and the UAE with both defence and commercial customers. These demonstrations validated system performance in real world operating environments and have opened additional avenues for follow on work. Our international presence has become an increasingly important contributor to pipeline quality and customer diversification. Operationally, we maintained steady WAMV deliveries, advanced PowerBuoy readiness for national security and border related missions and supported customer driven trials and integration activities. To ensure we can meet rising demand and execute larger programs, we reorganized our delivery and internal R and D teams. The intent is to strengthen coordination, improve platform readiness and ensure scalability as opportunities grow in size and complexity. Taken together, the progress across backlog, pipeline expansion, government engagement and international demonstrations reflect the business building capability and customer confidence. Our focus remains consistent, deliver reliable systems, support our customers missions and position the company for the opportunities we see developing across our core markets. With that, I'll turn it over to Bob to discuss Backlog in more detail and review the quarter's financial results.

Thanks Philip. I'll begin with Backlog, which provides the clearest view of future revenue. As Philip mentioned, backlog on October 31st was approximately $15 million, an increase of 11.2 million from the same period last year. This reflects conversion of opportunities across defense, government security, offshore energy and commercial applications. Our pipeline ended the quarter at 137.5 million, up 53.2 million. Year over year, the pipeline includes larger and more strategic opportunities including multi vehicle ASV programs, integrated buoy and ASV surveillance solutions and autonomy enabled missions. These indicators reinforce the momentum we are seeing in customer engagements. We also delivered eight WAMVs during the quarter, supporting demonstrations, customer milestones and ongoing user trials. Production throughput remains stable and we are prepared to meet scaling requirements as additional programs move forward. Revenue for the three months ended October 31, 2025 was 0.4 million compared to 2.4 million in the prior period. Month period revenue was 1.6 million compared to 3.7 million a year ago. As noted in the press release, the primary driver of this year over year change was a timing shutdown which delayed several deliverables into subsequent periods. Gross profit for both the three and six month periods was a loss of 1.4 million compared to gross profit of 0.8 million and 1.2 million for the respective prior year periods. These results include full recognition of losses on certain strategic startup contracts in accordance with US GAAP. The related project costs are substantially complete and these programs will continue generating revenue going forward. Operating expenses were 8.8 million for the quarter and 15.8 million year to date compared to 4.7 million and 9.6 million in the prior year periods. The increases primarily reflect higher non cash stock based compensation excluding stock based compensation. Operating expenses increased approximately 34% for the quarter and 17% year to date, driven by targeted investments to support growth and execution. Net losses were 10.8 million for the quarter and 18.2 million year to date compared to net losses of 3.9 million and 8.4 million in the respective prior year periods. Combined cash, cash equivalents and short term investments were 11.7 million as of October 31 compared to 6.7 million at the beginning of the fiscal year. Net cash used on operating activities for the six month period was approximately 13 million compared to 10.9 million in the prior year. With that, I'll turn the call back over to Philip for closing remarks and Q and A.

Thanks Bob. To summarize, we continue to see strengthening demand signals across our core markets. Backlog and pipeline remain at significantly higher levels than last year. Government engagement has regained momentum, supported by new initiatives across multiple agencies. International demonstrations are expanding our footprint and validating performance in the field and operationally. We have aligned our teams and resources to support the opportunities developing ahead of us. Our focus remains on execution, reliability and supporting customer missions with systems that perform consistently in real world environments. Thank you.

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Thanks.

Thank you.

Good morning. I wanted to dig a little deeper into the pipeline. Obviously, very impressive number. Can you talk a little bit about how many customers, how many orders or some type of magnitude there?? Also, what from which product lines, if there's any concentration there. And then just secondly, you talked about building up the headcount. Can you just give us a little. More explanation on where the headcount has grown. Grown and how that helps support the pipeline? Thanks. Yeah.

Good morning, Michael. Thanks for the question to your first point on pipeline at a. High level. It is a continuing diversification that we've seen before. The change we have seen, probably unsurprising to you and many other observers in the space, is the continuation of growth in terms of demand signals and efforts we're working on finalizing when it comes to the United States government, particularly in the areas of homeland security and. The Department of War. So those are ongoing discussions and they've really accelerated in recent months and weeks. And in particularly what Bob alluded to, efforts that we've got ongoing in terms of converting backlog to revenues. Those discussions have really started picking up steam again since the government has reopened. In terms of the product lines, it is a very balanced mix. If you're looking at it in terms of just the pure dollar values, it is fairly evenly split between buoys and vehicles. I think the key thing to note is that the usual point of entry nowadays is not because of a buoy or a vehicle. It is usually because of a demand and requirement for intelligence, surveillance and reconnaissance services, mine countermeasures, unexploded ordnance detection or.