Ocean Power Technologies is changing its independent auditor and has signed a letter of intent for a proposed collaboration with Stratum Holdings to demonstrate offshore renewable-powered data center assets. The company said it dismissed Baker Tilly to reduce audit fees and other costs, and appointed Carr, Riggs & Ingram to audit its fiscal year ending April 30, 2027.
Auditor change
- The audit committee dismissed Baker Tilly effective October 26, 2026, and appointed Carr, Riggs & Ingram, or CRI, on the same date.
- Baker Tilly had become the company’s auditor after its predecessor, Moss Adams, merged with Baker Tilly in June 2025.
- Ocean Power said the decision to change auditors was made to save on audit fees and costs, among other factors.
- The company reported no disagreements with Baker Tilly over accounting, financial-statement disclosures, or audit scope and procedures during fiscal 2025 and 2026 or the period through October 26, 2026.
- Baker Tilly’s audit opinions on the company’s financial statements for fiscal 2025 and 2026 were not qualified or adverse. Its report for fiscal 2026 did, however, include an explanatory paragraph raising substantial doubt about Ocean Power’s ability to continue as a going concern.
- The company’s previously reported material weaknesses in internal controls remain relevant:
- Controls were not effective for identifying, evaluating, valuing, and accounting for complex or unusual transactions, including revenue-recognition and convertible-debt matters.
- Controls over inventory-system data and reports were not adequate to ensure complete and accurate information for inventory valuation.
- Baker Tilly agreed with the company’s statements about the auditor transition.
Proposed Stratum collaboration
- Ocean Power announced that it had signed a letter of intent with Stratum Holdings for a proposed strategic collaboration to demonstrate offshore data center assets powered by renewable energy.
- The announcement describes the initiative as proposed; the information provided does not specify financial terms, a timetable, or further details about the planned demonstration.
What changes for investors
The auditor appointment is a change in the firm responsible for the next fiscal year’s audit, not a resolution of the company’s previously identified control weaknesses. Baker Tilly’s going-concern warning also remains part of its fiscal 2026 audit report; the auditor switch does not change that prior assessment. The Stratum announcement establishes an intended collaboration, but the terms and scope of any project are not specified here.