Quarterly ResultMay 12, 2026, 05:01 PM
Ocean Thermal Energy Q1 Net Income $62M from Derivative Gain; Going Concern Doubt
AI Summary
Ocean Thermal Energy reported a net income of $62.01 million for the first quarter of 2026, a significant improvement from a net loss of $1.40 million in the prior year. This income was primarily due to a non-cash gain of $63.25 million from the change in fair value of derivative liabilities. However, the company's operational loss increased to $(487,672), and it continues to face substantial financial challenges, including a working capital deficiency and stockholders' deficit of approximately $51 million each, and a going concern doubt. The company is also in default on $18.3 million in loans.
Key Highlights
- Reported net income of $62.01 million for Q1 2026, compared to a net loss of $1.40 million in Q1 2025.
- Net income was primarily driven by a $63.25 million non-cash gain from the change in fair value of derivative liability.
- Revenue increased to $403,517 in Q1 2026 from $173,037 in Q1 2025, due to a U.S. Army contract.
- Gross profit shifted to a loss of $(259,467) in Q1 2026 from a profit of $44,274 in Q1 2025.
- Loss from operations increased to $(487,672) in Q1 2026 from $(246,804) in Q1 2025.
- Cash balance decreased to $166,220 at March 31, 2026, from $403,667 at December 31, 2025.
- Working capital deficiency was approximately $51 million and stockholders' deficit was approximately $51 million as of March 31, 2026.
- Used $237,177 in cash from operating activities in Q1 2026, an increase from $161,907 in Q1 2025.
- Company is in default on $18.3 million in combined principal and interest on numerous loans.