Ocean Thermal Energy Narrows Loss, Still Faces Going Concern Doubts
Ticker: CPWR · Form: 10-Q · Filed: Dec 18, 2025 · CIK: 827099
Sentiment: bearish
Topics: Ocean Thermal Energy, Renewable Energy, Going Concern, Net Loss, Working Capital Deficiency, Derivative Liability, Clean Technology
TL;DR
**CPWR is still a speculative bet, showing some revenue but drowning in debt and relying on future funding to survive.**
AI Summary
Ocean Thermal Energy Corporation (CPWR) reported a net loss of $1,402,729 for the three months ended March 31, 2025, a significant improvement from the $11,485,723 net loss in the same period of 2024. The company generated revenue of $173,037 in Q1 2025, compared to no revenue in Q1 2024, with a gross profit of $44,274. Operating expenses decreased to $291,078 from $408,364 year-over-year, primarily due to lower professional fees and salaries. Despite the improved net loss, CPWR continues to face substantial financial challenges, including a working capital deficiency of approximately $46 million and a stockholders' deficiency of approximately $46 million as of March 31, 2025. Cash used in operating activities was $161,907, and cash on hand decreased to $4,465 from $16,142 at December 31, 2024. The company raised $95,500 from common stock subscriptions and $55,000 from convertible note units during the quarter, but its ability to continue as a going concern remains dependent on increasing sales and securing external funding, including grant applications from the U.S. Department of Energy.
Why It Matters
CPWR's ability to generate its first revenue of $173,037 in Q1 2025 is a positive signal for investors, indicating progress in commercializing its ocean thermal energy technology, but the persistent $46 million working capital and stockholders' deficiencies highlight severe financial instability. For employees, the company's going concern risk creates job uncertainty, while customers might question the long-term viability of projects. In the broader renewable energy market, CPWR's struggles underscore the capital-intensive nature and inherent risks of developing novel clean technologies, potentially impacting investor appetite for similar early-stage ventures. Competitively, larger, more established renewable energy firms face fewer financial hurdles, making CPWR's path to market penetration exceptionally challenging.
Risk Assessment
Risk Level: high — The company explicitly states a "substantial doubt about our ability to continue as a going concern" due to a net loss of $1,402,729, $161,907 cash used in operating activities, a $46 million working capital deficiency, and a $46 million stockholders' deficiency as of March 31, 2025. Cash on hand is critically low at $4,465.
Analyst Insight
Investors should exercise extreme caution and consider CPWR a highly speculative investment. Monitor closely for significant external funding announcements, particularly from the U.S. Department of Energy, and substantial increases in revenue and cash flow from operations before considering any investment. Without a clear path to profitability and solvency, the risk of capital loss is very high.
Key Numbers
- $1.4M — Net Loss (Reduced from $11.5M in Q1 2024, indicating improved financial performance.)
- $173K — Revenue (First reported revenue in Q1 2025, up from $0 in Q1 2024, signaling initial commercial activity.)
- $46M — Working Capital Deficiency (As of March 31, 2025, highlighting severe liquidity issues.)
- $46M — Stockholders' Deficiency (As of March 31, 2025, indicating negative equity and significant financial risk.)
- $4,465 — Cash at End of Period (Critically low cash balance as of March 31, 2025, down from $16,142 at Dec 31, 2024.)
- $161,907 — Net Cash Used in Operating Activities (For Q1 2025, demonstrating ongoing cash burn from operations.)
- 190,995,457 — Weighted Average Common Shares Outstanding (For Q1 2025, indicating a large share count.)
- $55,000 — Proceeds from Convertible Notes (Raised in Q1 2025, providing some short-term financing.)
- $95,500 — Common Stock Subscribed (Proceeds received in Q1 2025 from new investors.)
- $9,977,299 — Derivative Liability (Increased from $9,423,915 at Dec 31, 2024, reflecting valuation changes of embedded conversion features.)
Key Players & Entities
- Ocean Thermal Energy Corporation (company) — registrant
- U.S. Securities and Exchange Commission (regulator) — filing oversight
- U.S. Department of Energy (regulator) — potential grant funding source
- $1,402,729 (dollar_amount) — net loss for Q1 2025
- $11,485,723 (dollar_amount) — net loss for Q1 2024
- $173,037 (dollar_amount) — revenue for Q1 2025
- $46 million (dollar_amount) — working capital deficiency as of March 31, 2025
- $46 million (dollar_amount) — stockholders' deficiency as of March 31, 2025
- $4,465 (dollar_amount) — cash at end of Q1 2025
- $161,907 (dollar_amount) — net cash used in operating activities for Q1 2025
FAQ
What was Ocean Thermal Energy Corp's (CPWR) net loss for the first quarter of 2025?
Ocean Thermal Energy Corp (CPWR) reported a net loss of $1,402,729 for the three months ended March 31, 2025. This represents a significant improvement compared to the net loss of $11,485,723 reported for the same period in 2024.
Did Ocean Thermal Energy Corp (CPWR) generate any revenue in Q1 2025?
Yes, Ocean Thermal Energy Corp (CPWR) generated revenue of $173,037 for the three months ended March 31, 2025. This is a notable change from the prior year, where the company reported no revenue for the three months ended March 31, 2024.
What is the primary risk factor for Ocean Thermal Energy Corp (CPWR) according to the 10-Q filing?
The primary risk factor for Ocean Thermal Energy Corp (CPWR) is its ability to continue as a going concern. The filing explicitly states "substantial doubt about our ability to continue as a going concern" due to a net loss of $1,402,729, $161,907 cash used in operating activities, and a $46 million working capital deficiency as of March 31, 2025.
How much cash did Ocean Thermal Energy Corp (CPWR) have at the end of Q1 2025?
As of March 31, 2025, Ocean Thermal Energy Corp (CPWR) had a cash balance of $4,465. This is a decrease from $16,142 at the beginning of the period on December 31, 2024.
What is Ocean Thermal Energy Corp's (CPWR) business focus?
Ocean Thermal Energy Corp (CPWR) is focused on designing ocean thermal energy conversion power plants, seawater air conditioning (SWAC), and lake water air conditioning (LSC) plants. Their technology aims to provide clean drinking water, food, and sustainable energy by extracting energy from ocean temperature differentials.
What was the change in Ocean Thermal Energy Corp's (CPWR) derivative liability in Q1 2025?
The derivative liability for Ocean Thermal Energy Corp (CPWR) increased by $498,404 during the three months ended March 31, 2025, reaching $9,977,299. This change reflects the revaluation of embedded conversion features within convertible debt instruments.
How many shares of common stock did Ocean Thermal Energy Corp (CPWR) have outstanding as of December 16, 2025?
As of December 16, 2025, Ocean Thermal Energy Corp (CPWR) had 190,012,124 outstanding shares of common stock, with a par value of $0.001.
What is Ocean Thermal Energy Corp (CPWR) doing to address its going concern issues?
Ocean Thermal Energy Corp (CPWR) is attempting to address its going concern issues by increasing sales and obtaining external funding for its projects. Specifically, the company is applying for grant funding from the U.S. Department of Energy, focusing on desalinated water, ammonia, and hydrogen production from OTEC facilities.
How much did Ocean Thermal Energy Corp (CPWR) raise from common stock subscriptions in Q1 2025?
During the three months ended March 31, 2025, Ocean Thermal Energy Corp (CPWR) received aggregate proceeds of $95,500 from investors who agreed to purchase 4,775,000 shares of common stock.
What were the total liabilities for Ocean Thermal Energy Corp (CPWR) as of March 31, 2025?
As of March 31, 2025, Ocean Thermal Energy Corp (CPWR) reported total liabilities of $46,407,798. This includes current liabilities of $46,378,068 and convertible notes payable due after one year of $29,730.
Filing Stats: 4,496 words · 18 min read · ~15 pages · Grade level 17.1 · Accepted 2025-12-18 14:54:23
Key Financial Figures
- $0.001 — nding shares of common stock, par value $0.001. TABLE OF CONTENTS Description Pag
- $46 million — ockholders' deficiency of approximately $46 million as of March 31, 2025. These factors rai
- $5,000 — convertible note units. Each unit costs $5,000 and consists of one convertible promiss
- $0.01 — 's common stock at an exercise price of $0.01 per share . The Notes bear interest at
- $0.10 — n the Maturity Date at the lower of (a) $0.10 per share, or (b) 90% of the Market Pri
Filing Documents
- cpwr_10q.htm (10-Q) — 419KB
- cpwr_ex311.htm (EX-31.1) — 13KB
- cpwr_ex312.htm (EX-31.2) — 13KB
- cpwr_ex321.htm (EX-32.1) — 5KB
- cpwr_ex322.htm (EX-32.2) — 6KB
- 0001654954-25-014109.txt ( ) — 2351KB
- cpwr-20250331.xsd (EX-101.SCH) — 27KB
- cpwr-20250331_lab.xml (EX-101.LAB) — 160KB
- cpwr-20250331_cal.xml (EX-101.CAL) — 34KB
- cpwr-20250331_pre.xml (EX-101.PRE) — 136KB
- cpwr-20250331_def.xml (EX-101.DEF) — 75KB
- cpwr_10q_htm.xml (XML) — 212KB
-FINANCIAL INFORMATION
PART I-FINANCIAL INFORMATION Item 1
Financial Statements (unaudited)
Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Changes in Stockholders' Deficit 5 Condensed Consolidated Statements of Cash Flows 6 Notes to the Condensed Consolidated Financial Statements 7 Item 2
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Item 3
Quantitative and Qualitative Disclosures about Market Risk
Quantitative and Qualitative Disclosures about Market Risk 13 Item 4
Controls and Procedures
Controls and Procedures 13
-OTHER INFORMATION
PART II-OTHER INFORMATION Item 1
Legal Proceedings
Legal Proceedings 14 Item 1A
Risk Factors
Risk Factors 14 Item 2 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 14 Item 3 Defaults upon Senior Securities 14 Item 6 Exhibits 17 Signature 18 2 Table of Contents
- FINANCIAL INFORMATION
PART I - FINANCIAL INFORMATION
FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2025 December 31, 2024 ASSETS Current Assets Cash $ 4,465 $ 16,142 Accounts receivable 539,200 - Prepaid expenses 5,000 5,000 Total Current Assets 548,665 21,142 Total Assets $ 548,665 $ 21,142 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities Accounts payable and accrued expense $ 27,385,022 $ 26,473,157 Contract liabilities 366,163 - Notes payable - related party 2,304,170 2,304,170 Convertible notes payable - related party, net 117,500 117,500 Notes payable 3,633,131 3,638,131 Convertible note payable, net 2,534,665 2,539,665 Advances payable - related party, net 60,118 60,388 Derivative liability 9,977,299 9,423,915 Total Current Liabilities 46,378,068 44,556,926 Convertible notes payable due after one year, net 29,730 16,120 Total Liabilities 46,407,798 44,573,046 Commitments and contingencies (See Note 7) - - Stockholders' deficit Preferred Stock, Series B, $ 0.001 par value; 1,250,000 shares authorized, 518,750 shares issued and outstanding as of March 31, 2025 and December 31, 2024 519 519 Preferred Stock, Series C, $ 0.001 par value; 2,700,000 shares authorized, 2,300,000 shares issued and outstanding as of March 31, 2025 and December 31, 2024 2,300 2,300 Preferred Stock, Series D, $ 0.001 par value; 1,400 shares authorized, 1,400 shares issued and outstanding as of March 31, 2025 and December 31, 2024 1 1 Common stock, $ 0.001 par value; 200,000,000 shares authorized, 190,995,457 shares issued and outstanding as of March 31, 2025 and December 31, 2024 190,013 190,013 Common stock subscribed 95,500 - Additional paid-in capital 62,521,759 62,521,759 Accumulated deficit ( 108,669,225 ) ( 107,266,496 ) Total Stockholders' Deficit ( 45,859,133 ) ( 44,551,904 ) Total Li
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes to our financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors discussed elsewhere in this report. Certain information included herein contains statements that may be considered forward-looking statements such as statements relating to our anticipated revenues, gross margins and operating results, estimates used in the preparation of our financial statements, future performance and operations, plans for future expansion, capital spending, sources of liquidity, and financing sources. Forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include those relating to our liquidity requirements; the continued growth of o