Odyssey Marine Exploration(US:OMEX)2025-11-12 11:31Project Developments - The Company entered into a joint venture agreement for the Phosagmex Project in Mexico, focusing on developing a strategic fertilizer production project based on high-quality subsea phosphate resources [188]. - The Phosagmex Project contains a rich deposit of phosphate sands located 70-90 meters deep, which can be extracted on a commercially viable basis [189]. - The exploration license for the Lihir Gold Project covers a subsea area with prospective gold targets, with an 85.6% interest held in Bismarck Mining Corporation, Ltd [207]. - In 2023, the Company conducted geological sampling and ROV dives in the Lihir license area, increasing confidence in the presence of enriched mineral targets [213]. - The Company is advancing work on the Ocean Minerals, LLC Project, which has validated vast polymetallic nodule resources and is developing recovery systems for commercial operations [204]. - The Company plans to submit an application for an environmental permit for the Phosagmex Project once mining concessions are reinstated [193]. - The Company has faced legal challenges regarding the environmental permit for the Phosagmex Project, with previous applications unlawfully rejected by SEMARNAT [195]. - The company submitted an Unsolicited Request for Lease Sale of Marine Mineral Exploration and Development Rights to BOEM on November 6, 2025 [219]. - The proposed lease area off the Mid-Atlantic coast is highly prospective for heavy mineral sands critical to U.S. national defense and domestic manufacturing [220]. - A collaboration agreement with Great Lakes Dredge & Dock Corporation is expected to enhance the company's capability to advance its projects if the lease is granted [222]. Financial Performance - Total revenue for Q3 2025 was approximately $61,000, a decrease of 71.5% compared to $214,000 in Q3 2024 [229]. - Total revenue for the nine months ended September 30, 2025 was $331,000, a decrease of 47.7% from $633,000 in the same period of 2024 [238]. - Net loss attributable to Odyssey Marine Exploration, Inc. for Q3 2025 was $13.1 million, compared to a net income of $18.7 million in Q3 2024, representing a change of 170.0% [229]. - Total operating expenses for Q3 2025 were $2.2 million, a decrease of 28.9% from $3.1 million in Q3 2024 [229]. - Total other expenses for Q3 2025 were $11.4 million, compared to income of $19.1 million in Q3 2024, resulting in a net expense increase of $30.5 million [235]. - The consolidated cash balance at September 30, 2025 was $5.8 million, with a working capital deficit of $10.2 million [227]. - The company has experienced several years of net losses and may continue to do so, with future income dependent on financing and successful monetization of mineral exploration interests [223]. - For the nine months ended September 30, 2025, the net cash used in operating activities was $6.0 million, compared to cash provided of $2.4 million for the same period in 2024 [248]. - The company reported a net loss before non-controlling interest of $31.1 million for the nine months ended September 30, 2025 [249]. - Cash flows provided by financing activities for the nine months ended September 30, 2025 were $7.2 million, primarily from $7.7 million in proceeds from the issuance of common stock [253]. - As of September 30, 2025, the company had cash and cash equivalents of $5.8 million, an increase of $1.0 million from the December 31, 2024 balance of $4.8 million [255]. - The total loans payable decreased from $24.96 million at December 31, 2024 to $11.00 million at September 30, 2025 [256]. - The company incurred $1.1 million of interest expense from the amortization of the debt discount for the nine months ended September 30, 2025, down from $1.7 million for the same period in 2024 [266]. - The carrying value of the debt was $2.7 million as of September 30, 2025, down from $11.6 million at December 31, 2024 [267]. - The company had a net increase in cash of $1.0 million for the nine months ended September 30, 2025, compared to a decrease of $1.2 million for the same period in 2024 [247]. - The non-controlling interest adjustment for the nine months ended September 30, 2025 was $5.4 million, down from $7.2 million for the same period in 2024 [246]. - In Q3 2025, holders of the March 2023 AR Notes converted $11.3 million of indebtedness into 9,900,464 shares of Common Stock [272]. - In Q3 2025, holders of the December 2023 AR Notes converted $4.2 million of indebtedness into 3,617,194 shares of Common Stock [281]. - The fair value of the March 2023 Warrants increased to $3.7 million as of September 30, 2025, compared to $1.9 million at December 31, 2024 [264]. - The fair value of the December 2023 Warrants increased by $1.2 million for the three months ended September 30, 2025, and decreased by $2.7 million for the same period in 2024 [275]. - The total face value of the debt obligation was $3.0 million as of September 30, 2025, compared to $6.6 million as of December 31, 2024 [279]. - The current interest rate of the December 2023 Notes was 11.0% [278]. - The estimated fair value of the concession rights contributed to Phosagmex was $1.9 million as of August 29, 2025 [283]. - Interest expense from the amortization of the debt discount for the nine months ended September 30, 2025, was $0.3 million, compared to $1.2 million for the same period in 2024 [277]. - The fair value of the December 2023 Warrants at September 30, 2025, was $2.8 million, up from $0.8 million at December 31, 2024 [275]. - The carrying value of the debt was $2.7 million as of September 30, 2025, down from $6.0 million as of December 31, 2024 [278].