Odyssey Marine Exploration Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Odyssey generated revenue of $213,901, a 21.6% increase from $175,876 in the same period of 2023. However, for the nine months, total revenue slightly decreased to $632,530 from $637,190 year-over-year. The company reported total operating expenses of $3,082,064 for the third quarter, up from $2,631,298 in 2023, leading to a loss from operations of $(2,868,163), compared to $(2,455,422) in the prior year. For the nine-month period, the loss from operations increased to $(10,601,295) from $(8,114,925).

A notable development was the substantial increase in total other income, which reached $19,103,598 for the third quarter, compared to a loss of $(3,597,436) in 2023. This shift contributed to a net income of $18,688,236 for the quarter, a significant turnaround from a net loss of $(3,813,285) in the same period last year. For the nine months, net income rose to $20,659,157, up from $13,562,793 in 2023.

The company’s cash and cash equivalents decreased to $2,859,267 as of September 30, 2024, down from $4,021,720 at the end of 2023. Total assets also declined to $21,758,228 from $22,752,297. Total liabilities decreased to $98,480,151 from $108,658,831, with a notable reduction in long-term liabilities from $77,193,103 to $67,528,738.

Strategically, Odyssey received approximately $9.8 million from a residual economic interest in a salvaged shipwreck, which bolstered its operating funds. The company also reported a working capital deficit of $27.7 million and raised substantial doubt about its ability to continue as a going concern.

In terms of equity interests, Odyssey holds approximately 15.3% in CIC Limited and 7.0% in Ocean Minerals, LLC. The company entered into a Unit Purchase Agreement with Ocean Minerals in June 2023, but this agreement was terminated in October 2024, although Odyssey retains ownership of initial units acquired.

The company has faced challenges, including a material weakness in internal controls over financial reporting, prompting management to engage an Interim Controller and accounting advisory consultants to enhance its financial reporting processes. Despite these challenges, Odyssey's recent financial performance indicates a potential recovery trajectory, driven by strategic asset monetization and operational adjustments.