Odyssey Marine Exploration, Inc. Financial Report Summary and Analysis

Overview

Odyssey Marine Exploration, Inc. is a deep-sea mineral exploration company with several ongoing projects and investments in the seabed mining industry. The company has faced challenges in obtaining permits for its projects, leading to legal disputes with regulatory authorities. However, Odyssey has also made progress in developing partnerships and securing funding to advance its exploration and development efforts.

Financial Performance

Three Months Ended March 31, 2025 vs. Three Months Ended March 31, 2024

Revenue

• Total revenue decreased by 33.5% from $203,000 to $135,000, primarily due to fluctuations in the services provided to related party companies.

Operating Expenses

• Marketing, general and administrative expenses decreased by 55.7% from $4.0 million to $1.8 million, mainly due to reductions in professional services and non-cash share-based compensation.
• Operations and research expenses decreased by 35.4% from $886,000 to $572,000, primarily due to a decrease in licenses and permits, offset by an increase in other professional fees.

Other Income and Expense

• Total other income/expense decreased by 67.9% from $5.6 million to $1.8 million, primarily due to a $4.6 million decrease in the change in fair value of derivative liabilities, partially offset by decreases in interest expense and loss on equity method investments.

Net Income/Loss

• Net loss attributable to Odyssey Marine Exploration, Inc. decreased by 35.9% from $3.5 million to $2.2 million.

Liquidity and Capital Resources

• As of March 31, 2025, Odyssey had $2.5 million in cash and cash equivalents, a decrease of $2.3 million from December 31, 2024.
• The company’s total consolidated loans payable, net of unamortized debt discount and fees, was $23.8 million as of March 31, 2025, an increase from $22.9 million as of December 31, 2024.
• Odyssey has experienced several years of net losses and may continue to do so. The company’s ability to generate positive cash flows is dependent on successful financing, development of its mineral exploration interests, and generating income from exploration charters.
• The company has taken steps to address its going concern issues, including amending its debt agreements, securing additional financing, and exploring joint venture opportunities.

Key Projects and Investments

CIC Project

• Odyssey is a member of a consortium supporting the development of CIC Limited’s deep-sea mineral exploration project in the Cook Islands.
• Odyssey has earned and holds approximately 14.2% of CIC’s current outstanding equity units, with the ability to earn up to 20% by July 2025.

Ocean Minerals, LLC (OML) Project

• Odyssey acquired an approximately 13% interest in OML, a deepwater critical minerals exploration and development company.
• Odyssey contributed a remotely operated vehicle (ROV) to OML and has ongoing obligations related to the ROV lease.

Lihir Gold Project

• Odyssey, through its 85.6% owned subsidiary Bismarck Mining Corporation, holds an exploration license for a subsea gold project in Papua New Guinea.
• Odyssey has an ongoing exploration program to validate and quantify the precious and base metal content of the prospective resource.

Outlook and Risks

• Odyssey’s ability to continue as a going concern is dependent on its success in securing additional financing, developing and monetizing its mineral exploration interests, and generating income from exploration charters.
• The company faces regulatory and legal challenges in obtaining permits for its projects, which could impact its future development and operations.
• Successful execution of Odyssey’s exploration and development plans, as well as its ability to generate new cash inflows, will be critical to the company’s long-term viability.

Overall, Odyssey Marine Exploration is navigating a challenging financial and regulatory environment as it continues to pursue deep-sea mineral exploration and development opportunities. The company’s future success will depend on its ability to secure necessary funding, overcome permitting hurdles, and capitalize on the potential of its various projects.