Ocean Power Technologies, Inc. announced that it received approximately $1.5 million under the State of New Jersey's Business Tax Certificate Transfer Program.
New Jersey's Business Tax Certificate Transfer Program enables companies to raise cash to finance their growth and operations and is administered by the New Jersey Economic Development Authority (NJEDA) and the New Jersey Department of the Treasury's Division of Taxation. Under the Program, New Jersey-based technology or biotechnology companies with fewer than 225 U.S. employees may be eligible to sell NJ state net tax operating losses (NOL's) and research and development tax credits to unaffiliated corporations, for at least 80% of their value, up to a maximum lifetime benefit of $15 million per business. The State of New Jersey was the originator of the Program and the first state to implement and fund it. Ocean Power Technologies would generate the $1.5 million by selling NOL's to utility operator Public Service Enterprise Group Inc. (PEG - Analyst Report).
Ocean Power Technologies is a leading renewable energy company specializing in cost effective, advanced, and environmentally sound offshore wave power technology. It harnesses ocean waves to generate reliable and clean electricity in an environmentally-friendly way. Wave energy has the potential to produce around 2,000 terawatt hours of electricity in a year, or sufficient power to meet 10% of the world's current energy needs.
The electrical power generated by company's proprietory technology is key to meeting the energy needs of the future. Ocean Power’s PowerBuoy system harnesses the natural energy in ocean waves, and is based on the integration of patented technologies in hydrodynamics, electronics, energy conversion and computer control systems. PowerBuoy is a smart system capable of responding to differing wave conditions. The result is a leading edge, ocean-tested, proprietary system which generates reliable, clean, and environmentally-beneficial electricity. Ocean Power developed the PowerBuoy system in collaboration with Lockheed Martin Corporation (LMT - Analyst Report).
The company is expected to release its fourth quarter and full year results on Mar 5, 2013. The Zacks Consensus Estimates for the fourth quarter and full year 2012 are currently at 32 cents loss per share and $1.38 loss per share, respectively. Earlier, on Oct 31, 2012, the company declared that it has an order backlog of $5.2 million.
The company competes with EnergySolutions, Inc. (ES - Analyst Report).