Ocean Thermal Energy Corporation Reports $3.0 Million Revenue for Fiscal Year 2025

Ocean Thermal Energy Corporation (OTEC) reported a significant increase in revenue for the fiscal year ending December 31, 2025, generating $3.0 million compared to no revenue in the previous year. This revenue spike is attributed to a contract with the U.S. Department of Defense for engineering and design services related to an Ocean Thermal Energy Conversion (OTEC) unit at Kwajalein Atoll. The company incurred direct costs of $2.4 million associated with this contract, marking a substantial operational shift as it transitions from research and development to revenue-generating activities.

In terms of expenses, OTEC reported a notable decrease in salaries and compensation, which fell by 79% to $197,424, primarily due to cost-cutting measures and the reallocation of costs to contract expenses. General and administrative expenses also decreased by 38% to $71,694, reflecting ongoing efforts to streamline operations. However, interest expenses rose by 15% to $2.9 million, driven by increased debt and higher interest rates on defaulted notes. The company also experienced a significant increase in the fair value of its derivative liabilities, which rose by approximately $66 million, reflecting changes in the market value of its common stock.

OTEC's operational strategy includes expanding its project pipeline into additional Indo-Pacific markets, such as Guam and Diego Garcia, while also exploring opportunities in the Caribbean and Southeast Asia. The company is currently executing a $3.5 million contract with the U.S. Army and is actively seeking to secure further contracts to enhance its revenue base. Despite these developments, OTEC continues to face challenges, including a negative working capital of $113.3 million and a stockholders' deficit of $113.4 million as of December 31, 2025.

The company has acknowledged the need for substantial additional capital to fund its operations and project development, as it currently lacks sufficient cash to sustain operations for the next 12 months. OTEC's management is exploring various external funding options, including potential debt and equity financing, to support its growth and operational objectives. The company has also indicated plans for a potential uplisting to a more established exchange, although there is no assurance that such funding will be secured or that the uplisting will be successful.

Looking ahead, OTEC's management remains focused on executing its strategic plans while navigating the complexities of project development in emerging markets. The company recognizes the risks associated with its financial condition and the need for ongoing capital to achieve its long-term goals. As it continues to develop its proprietary technologies for renewable energy generation, OTEC aims to position itself as a leader in the sustainable energy sector, particularly in regions where energy independence and environmental sustainability are critical.