Odyssey Marine Exploration(US:OMEX)2022-11-14 23:13Financial Performance - Total revenues for Q3 2022 increased by 82% to $358,000 compared to $197,000 in Q3 2021[109] - Total revenues for the nine months ended September 30, 2022 increased by $377 million, or 56%, to $1,048 million compared to $671 million for the same period in 2021[118] - Net loss for Q3 2022 was $5,455,000, a 33.5% increase from the net loss of $4,085,000 in Q3 2021[109] - The company recorded a net loss of $18.4 million for the nine months ended September 30, 2022, an increase in loss of $8.3 million, or 83.1%, compared to a net loss of $10.0 million for the same period in 2021[118] Operating Expenses - Total operating expenses rose by 21.1% to $4,078,000 in Q3 2022 from $3,368,000 in Q3 2021[109] - Marketing, general and administrative expenses rose by $1.7 million, or 35.9%, to $6.4 million for the nine months ended September 30, 2022, compared to $4.7 million for the same period in 2021[120] - Operations and research expenses increased by $1.3 million, or 18.8%, to $8.2 million for the nine months ended September 30, 2022, compared to $6.9 million for the same period in 2021[121] - Total other income and expense resulted in a net expense of $10.5 million for the nine months ended September 30, 2022, an increase of $6.8 million, or 187.6%, compared to $3.6 million for the same period in 2021[122] Cash Flow and Debt - Net cash used in operating activities for the nine months ended September 30, 2022 was $6.0 million, an increase of approximately $1.9 million compared to $4.1 million for the same period in 2021[125] - Cash and cash equivalents at September 30, 2022 were $6.8 million, an increase of $4.5 million from $2.3 million at December 31, 2021[128] - Financial debt increased to $44.6 million at September 30, 2022, compared to $41.3 million at December 31, 2021[130] - The carrying value of the debt as of September 30, 2022, was $24,204,704, compared to $18,323,097 on December 31, 2021, representing an increase of approximately 32.3%[133] - The total face value of the debt obligation at September 30, 2022, was $24,821,967, compared to $19,266,818 at the end of 2021, showing an increase of about 29.5%[133] - The consolidated non-restricted cash balance at September 30, 2022, was $6.8 million, with a working capital deficit of $53.1 million[144] Legal and Regulatory Matters - Odyssey is seeking over $2 billion in compensation from Mexico due to repeated unlawful denials of environmental permits for the ExO project[91] - The company has secured funding of up to $10 million for litigation costs related to the NAFTA case[94] Project Developments - The ExO Phosphate Project is expected to provide significant benefits to Mexico's agricultural development and is located within a 50-year mining concession[86][87] - The Lihir Gold Project has an 85.6% interest in Bismarck Mining Corporation, which holds the exploration license for gold targets in Papua New Guinea[95] - The South American Phosphate Project will be a joint venture where Odyssey holds a 75% interest, covering 366 square kilometers of seabed[104][106] - The CIC Consortium, which includes Odyssey, received a five-year exploration license from the Cook Islands, with operations commencing in 2022[102][103] - The exploration program for the Lihir Gold Project aims to validate and quantify precious and base metal content, with offshore surveys completed in early 2022[98][99] Financing Activities - The company raised $10.9 million from financing activities during the nine months ended September 30, 2022, compared to $1.5 million for the same period in 2021[127] - The company generated net proceeds of $14.7 million from the sale of 4,939,515 shares of common stock and warrants, after offering expenses of $1.8 million[141] Interest Expense - For the three months ended September 30, 2022, interest expense from debt discount amortization was $76,133, compared to $63,689 for the same period in 2021, reflecting a year-over-year increase of approximately 19.3%[133] - For the nine months ended September 30, 2022, interest expense from debt discount amortization totaled $216,286, up from $174,420 in 2021, indicating a growth of about 24%[133] - The company recognized $300,000 of interest expense for the nine months ended September 30, 2022, related to the Note Agreement with 37North[138] Concerns and Risks - The company has experienced several years of net losses and may continue to do so, raising concerns about its ability to continue as a going concern[140] - The company does not engage in off-balance sheet financing arrangements and has no interest in limited purpose entities[149]