Odyssey Marine Exploration Reports $6.2M Net Income Turnaround, Faces Revenue Decline

Odyssey Marine Exploration, Inc. reported a net income of $6.2 million for the fiscal year ending December 31, 2024, a significant turnaround from a net loss of $3.9 million in the previous year. Total revenue for the year was approximately $769,000, a slight decrease of 4% from $804,000 in 2023. The company attributed the revenue decline primarily to fluctuations in marine research and project administration services, which are its main revenue sources. Operating expenses increased by 14.7% to $12.8 million, driven largely by a rise in marketing, general, and administrative costs, which rose by 41.3% to $9.7 million.

In terms of strategic developments, Odyssey entered into a Securities Purchase Agreement on December 23, 2024, selling 7.4 million shares of common stock at $0.55 per share, raising approximately $4.1 million. This agreement also allows investors the option to purchase an additional 7.2 million shares at $1.10 per share by April 30, 2025. Additionally, the company formed a joint venture with Capital Latinoamericano, S.A. de C.V. to develop a strategic fertilizer production project in Mexico, leveraging its existing phosphate resource validation work.

Operationally, Odyssey's employee count remained stable at 11 full-time employees as of December 31, 2024. The company continues to focus on its subsea mineral exploration projects, including the ExO Phosphate Project in Mexico, which has faced regulatory challenges but is expected to provide significant benefits to local agriculture. The company also holds interests in several other projects, including CIC Limited and Ocean Minerals, LLC, which are in various stages of development.

Looking ahead, Odyssey's management expressed cautious optimism, noting that the company is actively working to generate new cash inflows through monetization of its equity stakes in seabed mineral companies and other financing activities. However, the company also acknowledged ongoing challenges, including a working capital deficit of $16.7 million and total liabilities exceeding total assets by $79 million, raising substantial doubt about its ability to continue as a going concern. The company plans to address these issues through strategic financing and operational adjustments in the coming year.