Odyssey Marine Exploration(US:OMEX)2024-08-08 20:04Financial Performance - Total revenue for Q2 2024 was $215,565, an increase of 24.9% compared to $172,575 in Q2 2023[24]. - Marine services revenue increased to $179,821 in Q2 2024 from $166,832 in Q2 2023, reflecting a growth of 7.1%[24]. - The net loss attributable to Odyssey Marine Exploration, Inc. for Q2 2024 was $(1,527,103), compared to a net loss of $(4,931,609) in Q2 2023, showing an improvement of 69%[24]. - The company reported a loss from operations of $(3,016,002) in Q2 2024, compared to $(2,847,589) in Q2 2023[24]. - As of June 30, 2024, the company reported a net loss of $3.73 million, compared to a net loss of $7.25 million for the same period in 2023[25]. - The company generated net cash provided by operating activities of $3.97 million for the six months ended June 30, 2024, contrasting with a cash outflow of $7.57 million for the same period in 2023[28]. - The Company reported a basic net loss of $1,527,103 for the three months ended June 30, 2024, compared to a loss of $4,931,609 for the same period in 2023, indicating a significant improvement[44]. - Net loss for Q2 2024 was $1.53 million, a decrease of $3.41 million (69.0%) from a net loss of $4.93 million in Q2 2023[140]. - Net income for the six months ended June 30, 2024 was $1.97 million, a decrease of $15.41 million (88.7%) from $17.38 million in the same period of 2023[147]. Assets and Liabilities - Total assets increased to $26,282,002 as of June 30, 2024, up from $22,752,297 as of December 31, 2023, marking a growth of 15%[22]. - Current liabilities rose to $37,790,254 as of June 30, 2024, compared to $31,465,728 at the end of 2023, an increase of 20.1%[22]. - Total liabilities increased to $120,199,491 as of June 30, 2024, up from $108,658,831 at the end of 2023, reflecting an increase of 10.5%[22]. - The company has a total stockholders' deficit of $(93,917,489) as of June 30, 2024, compared to $(85,906,534) at the end of 2023[22]. - The total consolidated book value of assets was approximately $26.3 million at June 30, 2024, with a working capital deficit of $29.7 million[34]. - The total loans payable as of June 30, 2024, amounted to $27,916,977, with a net total of $25,938,628 after accounting for unamortized deferred fees and discounts[78]. - The total fair valued liabilities increased to $82,975,903 as of June 30, 2024, from $74,247,485 at December 31, 2023[99]. Cash Flow and Liquidity - The cash balance at the end of the period was $7.58 million, compared to $1.83 million at the end of June 2023, indicating a significant increase in liquidity[28]. - Cash at the end of the period on June 30, 2024, was $7.6 million, an increase of $3.6 million from $4.0 million at December 31, 2023[158]. - Cash flows used in investing activities for the six months ended June 30, 2024, were minimal at $(84,000), compared to $144,000 in 2023[156]. - Cash flows used in financing activities for the six months ended June 30, 2024, were $0.3 million, primarily for debt obligation payments, compared to $7.8 million provided in 2023[157]. Expenses - Operating expenses for Q2 2024 were $3,231,567, up from $3,020,164 in Q2 2023, representing an increase of 7%[24]. - Marketing, general and administrative expenses for Q2 2024 were $2.2 million, an increase of $0.4 million (21.9%) from $1.8 million in Q2 2023[142]. - Total operating expenses for Q2 2024 were $3.2 million, an increase of $0.2 million (7.0%) compared to $3.0 million in Q2 2023[140]. - Share-based compensation for the six months ended June 30, 2024, amounted to $1.56 million, compared to $0.37 million in the same period of 2023[28]. - Share-based compensation expense for the three months ended June 30, 2024, was $0.1 million, compared to $0.3 million for the same period in 2023, while for the six months, it was $1.6 million versus $0.4 million[111]. Investments and Acquisitions - The total purchase price for the 733,497 membership interest units of Ocean Minerals, LLC was $15.0 million, representing approximately 15.0% of the issued and outstanding membership interest[62]. - The initial closing consideration transferred for the OML Purchase Agreement was $10.3 million, including cash and shares of ORI[67]. - The company has the option to purchase up to an additional 1,466,993 OML Interest Units at $20.45 per unit within eighteen months from the Initial Closing Date[67]. - The company assessed its investment in CIC Limited for impairment annually, recording a loss if deemed other than temporary[61]. Risk and Compliance - The fair market value of the company's assets may differ from their net carrying book value, raising concerns about its ability to continue as a going concern[34]. - Management identified material weaknesses in internal control over financial reporting, which are currently being remediated[183]. - The company has engaged an Interim Controller and accounting advisory consultants to strengthen internal controls and financial reporting[184]. - The company is pursuing a claim under NAFTA against Mexico for over $2 billion due to wrongful denial of environmental permits for the ExO Phosphate Project, which has been challenged in court[125]. Shareholder Information - FourWorld Capital Management LLC beneficially owns approximately 20.0% of the company's Common Stock as of July 31, 2024[55]. - Two Seas Capital LP owns approximately 9.99% of the company's Common Stock after accounting for the beneficial ownership limitation applicable to warrants[55]. - Greywolf Distressed Opportunities Master Fund, L.P. beneficially owns approximately 9.2% of the company's Common Stock as of July 31, 2024[55].