Odyssey Marine Exploration(US:OMEX)2022-05-16 20:07Financial Performance - Total revenues for Q1 2022 remained unchanged at $0.3 million compared to Q1 2021[110] - Marketing, general and administrative expenses increased by 48.5% to $1.9 million in Q1 2022 from $1.3 million in Q1 2021[110] - Operations and research expenses surged by 181.3% to $5.1 million in Q1 2022 from $1.8 million in Q1 2021[110] - Total operating expenses rose by 125.8% to $7.0 million in Q1 2022 compared to $3.1 million in Q1 2021[110] - Net loss increased by 121.2% to $8.2 million in Q1 2022 from a loss of $3.7 million in Q1 2021[110] - Total revenue for the current quarter was $0.3 million, consistent with the same period last year[111] - Operating expenses increased by $0.6 million to $1.9 million for the three-month period ended March 31, 2022, compared to $1.3 million in the prior year[113] - Operations and research expenses rose by $3.3 million from 2021 to 2022, primarily due to a $3.0 million increase in litigation financed costs related to NAFTA litigation[114] - Total other income and expense was a net expense of $3.4 million in 2022, up from $2.3 million in 2021, reflecting a $0.6 million increase in interest expense[115] - Net cash used in operating activities for the first three months of 2022 was $2.1 million, an increase of approximately $0.7 million compared to $1.4 million in the same period of 2021[119] - Cash flows provided by financing activities for the first three months of 2022 were $2.0 million, compared to $0.5 million in the same period of 2021[121] Financial Position - Financial debt of the company was $44.5 million at March 31, 2022, up from $42.2 million at December 31, 2021[123] - The non-controlling interest adjustment in Q1 2022 was $1.9 million, compared to $1.4 million in Q1 2021[117] - As of March 31, 2022, the consolidated non-restricted cash balance was $2.1 million, with a working capital deficit of $58.5 million[136] - The total consolidated book value of assets was approximately $9.0 million, which includes cash of $2.1 million[136] Going Concern and Future Outlook - The company has experienced several years of net losses and may continue to do so, with future cash flows dependent on financings and monetizing interests in mineral exploration[132] - The company plans to generate new cash inflows through the monetization of receivables and equity stakes in seabed mineral companies[133] - The ability to continue as a going concern is in doubt due to reliance on the outcome of an environmental permit application and ongoing litigation[136] Regulatory and Accounting Matters - The company has not engaged in off-balance sheet financing arrangements and does not have interests in limited purpose entities[141] - There is no material market risk exposure, and the company has not entered into market risk sensitive instruments[142] - The company currently has no debt obligations with variable interest rates[143] - The adoption of ASU No. 2020-06 was effective as of January 1, 2022, impacting the accounting for convertible instruments and disclosure requirements[138] - The New Final Rule adopted by the SEC requires compliance for fiscal years beginning on or after January 1, 2021[139] - Recent accounting pronouncements are not believed to have a material effect on the company's financial statements[140] Project Developments - The ExO Phosphate Project is located 70-90 meters deep in Mexico's Exclusive Economic Zone and contains high-grade phosphate rock[84] - Odyssey holds a 56.29% interest in Oceanica, which owns 99.99% of ExO, the company licensed for the phosphate project[85] - The Lihir Gold Project has an 85.6% interest in Bismarck Mining Corporation, which holds the exploration license for gold in Papua New Guinea[94] - Odyssey has secured a five-year exploration license for the CIC Project in the Cook Islands, with a potential 16.0% interest in CIC[101][102] - A joint venture with BlueSea Group will allow Odyssey to manage the South American Phosphate Project, covering 366 square kilometers of seabed[105][107]