Odyssey Marine Exploration(US:OMEX)2024-11-13 21:00Revenue Performance - Total revenue for Q3 2024 was $213,901, an increase of 21.6% compared to $175,876 in Q3 2023[29] - Total revenue for the three months ended September 30, 2024 was $0.21 million, an increase of $38,000 (21.6%) compared to $0.18 million for the same period in 2023[199][200] - Total revenue for the nine months ended September 30, 2024 was $0.6 million, a decrease of $4,000 compared to the same period in 2023[210] - Marine services revenue for the nine months ended September 30, 2024, was $590,248, down 6.1% from $628,907 in the same period of 2023[29] - For the three and nine months ended September 30, 2024, two customers accounted for 100% of total revenue, consistent with the previous year where one customer accounted for 100% of total revenue[154] Operating Expenses - Total operating expenses for Q3 2024 were $3,082,064, a 17.1% increase from $2,631,298 in Q3 2023[29] - Total operating expenses increased by $451,000 (17.1%) to $3.08 million for the three months ended September 30, 2024, compared to $2.63 million in 2023[199] - Marketing, general and administrative expenses for the three months ended September 30, 2024 were $1.73 million, an increase of $169,000 (10.8%) compared to $1.56 million in 2023[199][202] - Operations and research expenses increased by $282,000 (26.4%) to $1.35 million for the three months ended September 30, 2024, compared to $1.07 million in 2023[199][203] Net Income - The net income attributable to Odyssey Marine Exploration, Inc. for Q3 2024 was $18,688,236, compared to a net loss of $3,813,285 in Q3 2023[29] - Net income for the three months ended September 30, 2024 was $18.7 million, a significant increase of $22.5 million compared to a net loss of $3.8 million in 2023, reflecting a 590.1% change[199] - Net income for the nine months ended September 30, 2024, was $13,427,676, compared to $6,772,418 for the same period in 2023, representing a significant increase[35] Assets and Liabilities - Total assets decreased to $21,758,228 as of September 30, 2024, from $22,752,297 as of December 31, 2023[25] - Total liabilities decreased to $98,480,151 as of September 30, 2024, from $108,658,831 as of December 31, 2023[25] - Cash and cash equivalents decreased to $2,859,267 as of September 30, 2024, from $4,021,720 as of December 31, 2023[25] - The total loans payable as of September 30, 2024, amounted to $24,269,981, a decrease from $27,378,905 as of December 31, 2023[102] Cash Flow - The company experienced a net cash provided by operating activities of $2,411,075 for the nine months ended September 30, 2024, compared to a net cash used of $(8,741,824) in the same period of 2023[35] - Cash at the end of the period was $2,859,267, a decrease from $4,021,720 at the beginning of the period[35] Shareholder Equity - Basic net income per share for Q3 2024 was $0.90, compared to a loss of $0.19 per share in Q3 2023[29] - Basic earnings per share (EPS) for the three months ended September 30, 2024, was $0.90, while the diluted EPS was $0.13, compared to a basic EPS of $(0.19) and diluted EPS of $(0.19) for the same period in 2023[54] Financial Instruments and Derivatives - The fair value of warrants classified as liabilities decreased by $7,754,438 during the reporting period[33] - The company reported a change in derivatives liability fair value of $(18,471,872) for the nine months ended September 30, 2024[35] - The fair value of the 2022 Warrants decreased to $2.2 million as of September 30, 2024, with a decrease of $10.8 million for the three months ended September 30, 2024[144] Debt and Financing - The aggregate outstanding amount of the Oceanica-ExO Notes, including accrued interest, was approximately $119.3 million as of September 30, 2024, up from $105.0 million as of December 31, 2023[70] - The Company obtained an Economic Injury Disaster Loan (EIDL Loan) of $150,000, with principal balance remaining at $150,000 as of September 30, 2024[116] - The Company owes a vendor $0.5 million as an interest-bearing trade payable at a rate of 12.0% per annum, with no payment demanded despite the agreement maturing in August 2018[117] Investments - As of September 30, 2024, the investment in unconsolidated entities totaled $9,924,954, an increase from $9,001,646 as of December 31, 2023[77] - Odyssey purchased 733,497 membership interest units of Ocean Minerals, LLC for a total purchase price of $15.0 million, representing approximately 15.0% of the issued and outstanding membership interest[80] - The total purchase price for the OML Purchase Agreement was $15.0 million, with the initial closing consideration transferred being $10.3 million[88] Legal and Regulatory Matters - The company received an arbitral award of $37.1 million from Mexico for breaching obligations under NAFTA, which is considered a gain contingency[140] - The company has not recorded any related gain from the arbitration award as of September 30, 2024, pending analysis of collectability[140] Future Outlook - The company plans to generate new cash inflows through monetization of receivables and equity stakes in seabed mineral companies[42] - The exploration program for the Lihir Gold Project is ongoing, with a focus on validating and quantifying precious and base metal content, supported by a permit extension issued in November 2023[193] - The Company was notified by Nasdaq that it did not meet the minimum $35.0 million market value requirement for 30 consecutive business days, with a compliance period ending April 28, 2025[164]