Ocean Power Technologies was incorporated under the laws of the State of New Jersey in April 1984 and began commercial operations in 1994. The Company develops and is seeking to commercialize proprietary systems that generate electricity by harnessing the renewable energy of ocean waves. Its PowerBuoy systems use proprietary technologies to convert the mechanical energy created by the rising and falling of ocean waves into electricity. It currently offers and continues to develop two PowerBuoy product lines, which consist of its utility PowerBuoy system and its autonomous PowerBuoy system. It also offers its customers operations and maintenance services for its PowerBuoy systems. In addition, it shall continue to develop and expect to market its undersea substation pod product and undersea power connection infrastructure services to other companies in the marine energy sector. The Company's utility PowerBuoy system is capable of supplying electricity to a local or regional electric power grid and its autonomous PowerBuoy system is designed to generate power for use independent of the power grid in remote locations. The Company engages in two types of manufacturing activities: the manufacturing of the high value-added components, or 'smart part' power take-off modules, for systems control, power generation and power conversion for each PowerBuoy system, and the contracting to outside companies for the fabrication of the buoy-like structure, anchoring and mooring, and cabling. It competes with power generation equipment suppliers in all segments of the electric power industry, including wave energy, other forms of renewable energy and traditional fossil fuel. The electric power industry is subject to extensive regulation, which varies by jurisdiction.