☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Nevada | 84-1018684 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Title of each class) | (Trading symbol) | (Name of each exchange on which registered) | ||
Common Stock, $.0001 par value | OMEX | NASDAQ Capital Market | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
Page | ||||||||||
Item 2. | ||||||||||
Item 9A. | ||||||||||
Item 15. | ||||||||||
Year | Area (Hectares) | Annual Rent, MxN Pesos, owed semesterly | ||
2022 | 80,050.5 | 30,236,658 | ||
2023 | 80,050.5 | The above is based on 188.86 MxN per hectare per semester. 2023 will be a similar rate but increase by some inflationary factor e.g. increase the rate per hectare by about 5% | ||
2024 | 80,050.5 | The above is based on 188.86 MxN per hectare per semester. 2024 will be a similar rate but increase by some inflationary factor e.g. increase the rate per hectare by about 5% |
Year | Area (Hectares) | Annual Rent, Mx Pesos, owed semesterly | ||
2022 | 14,300 | 3,069,352 | ||
2023 | 14,300 | Will be based on 107.32 MxN per hectare per semester, with an increase in this rate from inflation | ||
2024 | 14,300 | Will be based on 188.86 MxN per hectare per semester, with an increase in this rate from inflation |
Year | Area (Hectares) | Annual Rent, Mx Pesos, owed semesterly | ||
2022 | 20,425 | 4,384,022 | ||
2023 | 20,425 | Will be based on 107.32 MxN per hectare per semester, with an increase in this rate from inflation | ||
2024 | 20,425 | Will be based on 188.86 MxN per hectare per semester, with an increase in this rate from inflation |
Phosphorite Resources | Ore (in millions of tonnes) | Average P 2 O5 % | Average Overburden Thickness (meters) | Average Phosphorite (meters) | Area (km 2 ) | Area of Drill Hole Influence (max m 2 ) | ||||||||||||||||||
Measured phosphorite | 114.9 | 18.2 | % | 1.03 | 2.73 | 30.08 | 500 by 500 | |||||||||||||||||
Indicated phosphorite | 243.6 | 18.4 | % | 1.13 | 2.19 | 62.07 | 500 by 2,000 | |||||||||||||||||
Total measured and indicated | 358.4 | 18.3 | % | 1.10 | 2.77 | 92.15 | ||||||||||||||||||
Inferred phosphorite | 229.9 | 17.8 | % | 1.20 | 2.84 | 58.63 | >500 by 2,000 | |||||||||||||||||
Total deposit | 588.3 | 18.1 | % | 1.14 | 2.80 | 150.80 |
Price | ||||||||
High | Low | |||||||
Quarter Ended | ||||||||
March 31, 2020 | $ | 4.95 | $ | 2.10 | ||||
June 30, 2020 | $ | 5.31 | $ | 3.17 | ||||
September 30, 2020 | $ | 8.49 | $ | 3.84 | ||||
December 31, 2020 | $ | 8.15 | $ | 6.12 | ||||
Quarter Ended | ||||||||
March 31, 2021 | $ | 8.69 | $ | 6.35 | ||||
June 30, 2021 | $ | 7.40 | $ | 5.72 | ||||
September 30, 2021 | $ | 7.94 | $ | 5.11 | ||||
December 31, 2021 | $ | 7.00 | $ | 4.93 |
Increase/(Decrease) | 2021 vs. 2020 | |||||||||||||||
(Dollars in millions) | 2021 | 2020 | $ | % | ||||||||||||
Total revenue | $ | 0.9 | $ | 2.0 | $ | (1.1 | ) | 54.8 | % | |||||||
Operations and research | 9.6 | 10.9 | (1.4 | ) | 12.6 | % | ||||||||||
Marketing, general and administrative | 6.3 | 3.7 | 2.6 | 68.6 | % | |||||||||||
Total operating expenses | $ | 15.9 | $ | 14.7 | $ | 1.2 | 8.2 | % | ||||||||
Total other income (expense) | $ | (1.2 | ) | $ | (8.5 | ) | $ | (7.3 | ) | 86.1 | % | |||||
Income tax benefit (provision) | $ | 0.0 | $ | 0.0 | $ | 0.0 | 0.0 | % | ||||||||
Non-controlling interest | $ | 6.2 | $ | 6.3 | $ | (0.1 | ) | 1.7 | % | |||||||
Net income (loss) | $ | (10.0 | ) | $ | (14.8 | ) | $ | (4.9 | ) | 32.8 | % |
(Dollars in thousands) | 2021 | 2020 | ||||||
Summary of Cash Flows: | ||||||||
Net cash (used) by operating activities | $ | (5,303 | ) | $ | (9,287 | ) | ||
Net cash provided by investing activities | 323 | — | ||||||
Net cash provided by financing activities | 1,092 | 15,237 | ||||||
Net increase (decrease) in cash and cash equivalents | $ | (3,888 | ) | $ | 5,950 | |||
Beginning cash and cash equivalents | 6,163 | 213 | ||||||
Ending cash and cash equivalents | $ | 2,275 | $ | 6,163 | ||||
Increase/(Decrease) | 2020 vs. 2019 | |||||||||||||||
(Dollars in millions) | 2020 | 2019 | $ | % | ||||||||||||
Total revenue | $ | 2.0 | $ | 3.1 | $ | (1.0 | ) | 33.7 | % | |||||||
Operations and research | 10.9 | 7.9 | 3.0 | 37.8 | % | |||||||||||
Marketing, general and administrative | 3.6 | 5.5 | (1.7 | ) | 31.7 | % | ||||||||||
Total operating expenses | $ | 14.7 | $ | 13.4 | $ | 1.3 | 9.3 | % |
Increase/(Decrease) | 2020 vs. 2019 | |||||||||||||||
(Dollars in millions) | 2020 | 2019 | $ | % | ||||||||||||
Total other income (expense) | $ | (8.5 | ) | $ | (5.2 | ) | $ | 3.3 | 64.1 | % | ||||||
Income tax benefit (provision) | $ | 0.0 | $ | 0.0 | $ | 0.0 | 0.0 | % | ||||||||
Non-controlling interest | $ | 6.3 | $ | 5.1 | $ | 1.2 | 24.1 | % | ||||||||
Net income (loss) | $ | (14.8 | ) | $ | (10.4 | ) | $ | 4.4 | 41.9 | % |
(Dollars in thousands) | 2020 | 2019 | ||||||
Summary of Cash Flows: | ||||||||
Net cash (used) by operating activities | $ | (9,287 | ) | $ | (5,444 | ) | ||
Net cash provided by investing activities | — | (16 | ) | |||||
Net cash provided by financing activities | 15,237 | 2,876 | ||||||
Net increase (decrease) in cash and cash equivalents | $ | 5,950 | $ | (2,584 | ) | |||
Beginning cash and cash equivalents | 213 | 2,797 | ||||||
Ending cash and cash equivalents | $ | 6,163 | $ | 213 | ||||
Series | No. of Shares | Price per Share | ||||||
Series AA-1 | 8,427,004 | $ | 12.00 | |||||
Series AA-2 | 7,223,145 | $ | 6.00 |
Date | No. Series AA-1 Shares | Total Purchase Price | ||||||
March 1, 2016 | 1,806,989 | $ | 21,683,868 | |||||
September 1, 2016 | 1,806,989 | $ | 21,683,868 | |||||
March 1, 2017 | 1,517,871 | $ | 18,214,446 | |||||
March 1, 2018 | 378,488 | $ | 4,541,856 |
1. | (a) Consolidated Financial Statements |
(b) | Consolidated Financial Statement Schedules | |||||
2. | Exhibits | |||
December 31, 2021 | December 31, 2020 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 2,274,751 | $ | 6,163,205 | ||||
Accounts receivable and other, net | 268,867 | 160,257 | ||||||
Other current assets | 776,630 | 587,394 | ||||||
Total current assets | 3,320,248 | 6,910,856 | ||||||
PROPERTY AND EQUIPMENT | ||||||||
Equipment and office fixtures | 5,602,915 | 7,295,717 | ||||||
Right to use – operating lease, net | 461,109 | 607,039 | ||||||
Accumulated depreciation | (5,584,881 | ) | (7,287,999 | ) | ||||
Total property and equipment | 479,143 | 614,757 | ||||||
NON-CURRENT ASSETS | ||||||||
Investment in unconsolidated entity | 3,253,950 | 2,370,794 | ||||||
Exploration license | 1,821,251 | 1,821,251 | ||||||
Other non-current assets | 34,295 | 41,806 | ||||||
Total non-current assets | 5,109,496 | 4,233,851 | ||||||
Total assets | $ | 8,908,887 | $ | 11,759,464 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT) | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 1,817,445 | $ | 1,463,669 | ||||
Accrued expenses | 27,844,107 | 21,174,005 | ||||||
Operating lease obligation | 163,171 | 142,080 | ||||||
Loans payable | 22,784,010 | 31,104,239 | ||||||
Total current liabilities | 52,608,733 | 53,883,993 | ||||||
LONG-TERM LIABILITIES | ||||||||
Loans payable | 18,472,997 | 11,489,029 | ||||||
Operating lease obligation | 315,795 | 478,966 | ||||||
Deferred income and revenue participation rights | — | 3,818,750 | ||||||
Total long-term liabilities | 18,788,792 | 15,786,745 | ||||||
Total liabilities | 71,397,525 | 69,670,738 | ||||||
Commitments and contingencies (NOTE O) | 0 | 0 | ||||||
STOCKHOLDERS’ EQUITY/(DEFICIT) | ||||||||
Preferred stock - $.0001 par value; 24,984,166 shares authorized; 0ne outstanding | 0 | 0 | ||||||
Common stock – $.0001 par value; 75,000,000 shares authorized; 14,309,315 and 12,591,084 issued and outstanding | 1,431 | 1,259 | ||||||
Additional paid-in capital | 249,055,600 | 237,505,357 | ||||||
Accumulated (deficit) | (275,090,857 | ) | (265,134,463 | ) | ||||
Total stockholders’ equity/(deficit) before non-controlling interest | (26,033,826 | ) | (27,627,847 | ) | ||||
Non-controlling interest | (36,454,812 | ) | (30,283,427 | ) | ||||
Total stockholders’ equity/(deficit) | (62,488,638 | ) | (57,911,274 | ) | ||||
Total liabilities and stockholders’ equity/(deficit) | $ | 8,908,887 | $ | 11,759,464 | ||||
12 Month Period Ended December 31, 2021 | 12 Month Period Ended December 31, 2020 | 12 Month Period Ended December 31, 2019 | ||||||||||
REVENUE | ||||||||||||
Marine services | 883,790 | 1,087,669 | 1,984,316 | |||||||||
Other services | $ | 37,448 | $ | 950,663 | $ | 1,088,671 | ||||||
Total revenue | 921,238 | 2,038,332 | 3,072,987 | |||||||||
OPERATING EXPENSES | ||||||||||||
Operations and research | 9,550,619 | 10,923,819 | 7,927,831 | |||||||||
Marketing, general and administrative | 6,321,798 | 3,749,912 | 5,491,849 | |||||||||
Total operating expenses | 15,872,417 | 14,673,731 | 13,419,680 | |||||||||
LOSS FROM OPERATIONS | (14,951,179 | ) | (12,635,399 | ) | (10,346,693 | ) | ||||||
OTHER INCOME OR (EXPENSE) | ||||||||||||
Interest income | 4,036 | 5,121 | 151 | |||||||||
Interest expense | (10,829,464 | ) | (6,915,535 | ) | (5,360,192 | ) | ||||||
Gain (loss) on debt extinguishment | 374,835 | (777,484 | ) | (290,024 | ) | |||||||
Gain on debt settlement, net | 5,212,902 | 0 | 0 | |||||||||
Change in derivative liabilities fair value | — | (732,958 | ) | (322,485 | ) | |||||||
Other | 4,061,090 | (36,214 | ) | 819,517 | ||||||||
Total other income or (expense) | (1,176,601 | ) | (8,457,070 | ) | (5,153,033 | ) | ||||||
LOSS BEFORE INCOME TAXES | (16,127,780 | ) | (21,092,469 | ) | (15,499,726 | ) | ||||||
Income tax benefit (provision) | 0 | — | — | |||||||||
NET (LOSS) BEFORE NON-CONTROLLING INTEREST | (16,127,780 | ) | (21,092,469 | ) | (15,499,726 | ) | ||||||
Non-controlling interest | 6,171,385 | 6,280,313 | 5,059,765 | |||||||||
NET (LOSS) | $ | (9,956,395 | ) | $ | (14,812,156 | ) | $ | (10,439,961 | ) | |||
LOSS PER SHARE | ||||||||||||
Basic and diluted | $ | (0.75 | ) | $ | (1.41 | ) | $ | (1.12 | ) | |||
Weighted average number of common shares outstanding | ||||||||||||
Basic and diluted | 13,296,687 | 10,538,114 | 9,346,213 |
12 Month Period Ended December 31, 2021 | 12 Month Period Ended December 31, 2020 | 12 Month Period Ended December 31, 2019 | ||||||||||
Preferred Stock – Shares | ||||||||||||
At beginning of year | 0 | 0 | 0 | |||||||||
Preferred stock converted to common | 0 | 0 | 0 | |||||||||
At end of year | 0 | 0 | 0 | |||||||||
Common Stock – Shares | ||||||||||||
At beginning of year | 12,591,084 | 9,478,009 | 9,222,199 | |||||||||
Common stock issued for cash | 0 | 2,553,315 | 0 | |||||||||
Common stock issued for conversion and settlement of convertible debt and accounts payable | 695,412 | 380,223 | 0 | |||||||||
Common stock issued to settle outstanding indebtedness | 984,848 | 0 | 0 | |||||||||
Common stock issued for asset acquisition | 0 | 0 | 249,584 | |||||||||
Common stock issued for exercise of warrant | 0 | 56,228 | 0 | |||||||||
Common stock issued for services | 37,971 | 123,309 | 6,226 | |||||||||
At end of year | 14,309,315 | 12,591,084 | 9,478,009 | |||||||||
Preferred Stock | ||||||||||||
At beginning of year | $ | 0 | $ | — | $ | 0 | ||||||
Preferred stock converted to common | 0 — | 0— | 0— | |||||||||
At end of year | $ | 0 | $ | 0 | $ | 0 | ||||||
Common Stock | ||||||||||||
At beginning of year | $ | 1,259 | $ | 948 | $ | 922 | ||||||
Common stock issued for cash | 0 | 255 | 0 | |||||||||
Common stock issued for conversion and settlement of convertible debt and accounts payable | 70 | 38 | 0 | |||||||||
Common stock issued to settle outstanding indebtedness | 98 | 0 | 0 | |||||||||
Common stock issued for asset acquisition | 0 | 0 | 25 | |||||||||
Common stock issued for exercise of warrant | 0 | 6 | 0 | |||||||||
Common stock issued for services | 4 | 12 | 1 | |||||||||
At end of year | $ | 1,431 | $ | 1,259 | $ | 948 | ||||||
Additional Paid-in Capital | ||||||||||||
At beginning of year | $ | 237,505,357 | $ | 221,027,057 | $ | 217,993,953 | ||||||
Common stock issued for conversion and settlement of convertible debt and accounts payable | 2,774,209 | 2,449,284 | 0 | |||||||||
Common stock issued to settle outstanding indebtedness | 6,499,902 | 0 | 0 | |||||||||
Beneficial conversion feature on convertible obligation | 232,175 | 0 | 0 | |||||||||
Share-based compensation | 1,330,078 | 471,121 | 756,599 | |||||||||
Fair value of warrants attached convertible debt | 0 | 4,095,780 | 0 | |||||||||
Asset acquisition | 0 | 0 | 1,407,627 | |||||||||
Debt modification | 0 | 418,987 | 868,878 | |||||||||
Common stock issued for cash, net | 0 | 8,243,128 | 0 | |||||||||
Subsidiary equity issued for cash | 713,879 | 800,000 | 0 | |||||||||
At end of year | $ | 249,055,600 | $ | 237,505,357 | $ | 221,027,057 | ||||||
Accumulated Deficit | ||||||||||||
At beginning of year | $ | (265,134,462 | ) | $ | (250,322,306 | ) | $ | (239,882,345 | ) | |||
Net (loss) | (9,956,395 | ) | (14,812,156 | ) | (10,439,961 | ) | ||||||
At end of year | $ | (275,090,857 | ) | $ | (265,134,462 | ) | $ | (250,322,306 | ) | |||
Non-controlling Interest | ||||||||||||
At beginning of year | $ | (30,283,427 | ) | $ | (24,003,114 | ) | $ | (19,309,066 | ) | |||
Asset acquisition | 0 | 0 | 365,717 | |||||||||
Net (loss) | (6,171,385 | ) | (6,280,313 | ) | (5,059,765 | ) | ||||||
At end of year | (36,454,812 | ) | (30,283,427 | ) | (24,003,114 | ) | ||||||
Total stockholders’ equity/(deficit) | $ | (62,488,638 | ) | $ | (57,911,274 | ) | $ | (53,297,416 | ) | |||
12 Month Period Ended December 31, 2021 | 12 Month Period Ended December 31, 2020 | 12 Month Period Ended December 31, 2019 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net (loss) before non-controlling interest | $ | (16,127,780 | ) | $ | (21,092,469 | ) | $ | (15,499,726 | ) | |||
Adjustments to reconcile net loss to net cash (used) in operating activities: | ||||||||||||
Note payable interest accretion | 45,171 | (150,322 | ) | 845,892 | ||||||||
Accrued non-cash interest related to convertible debt | 0 | 121,398 | 0 | |||||||||
Share-based compensation | 1,230,082 | 192,532 | 55,200 | |||||||||
Depreciation and amortization | 8,821 | 9,322 | 116,434 | |||||||||
(Gain) loss on debt extinguishment | (374,835 | ) | 777,484 | 290,024 | ||||||||
(Gain) on sale of equipment | (342,125 | ) | 0 | 0 | ||||||||
Beneficial conversion feature on convertible debt, interest expense | 232,175 | 0 | 0 | |||||||||
Director fees settled with equity instruments | 0 | 0 | 701,396 | |||||||||
Change in derivatives liabilities fair value | 0 | 732,958 | 322,485 | |||||||||
Debt modification inducement | 0 | 0 | 868,878 | |||||||||
Right of use asset amortization | 145,930 | 132,764 | 53,233 | |||||||||
Financing fees amortization | 133,993 | 52,213 | 0 | |||||||||
Investment in unconsolidated entity | (883,156 | ) | (870,794 | ) | (747,333 | ) | ||||||
(Gain) on debt settlement, net | (5,212,902 | ) | 0 | 0 | ||||||||
Deferred revenue | (3,818,750 | ) | 0 | (825,000 | ) | |||||||
(Increase) decrease in: | ||||||||||||
Accounts receivable | (108,610 | ) | 261,336 | 367,828 | ||||||||
Other assets | (181,725 | ) | 399,082 | 355,126 | ||||||||
Increase (decrease) in: | ||||||||||||
Accounts payable | 6,292,180 | 4,563,544 | 3,690,481 | |||||||||
Accrued expenses and other | 13,658,052 | 5,583,783 | 3,960,783 | |||||||||
NET CASH (USED) IN OPERATING ACTIVITIES | (5,303,479 | ) | (9,287,169 | ) | (5,444,299 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Proceeds from sale of equipment | 342,125 | 0 | 0 | |||||||||
Purchase of property and equipment | (19,137 | ) | 0 | (15,492 | ) | |||||||
NET CASH PROVIDED BY INVESTING ACTIVITIES | 322,988 | 0 | (15,492 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from issuance of loans payable | 1,375,511 | 3,620,977 | 3,271,181 | |||||||||
Debt termination fee | (500,000 | ) | — | — | ||||||||
Proceeds from sale of common stock | 0 | 11,315,000 | 0 | |||||||||
Offering costs paid on sale of common stock | 0 | (89,642 | ) | 0 | ||||||||
Proceeds from sale of equity of subsidiary | 713,879 | 800,000 | 0 | |||||||||
Payment of operating lease liability | (142,080 | ) | (123,152 | ) | (48,838 | ) | ||||||
Repayment of loan and debt obligations | (355,273 | ) | (286,198 | ) | (346,130 | ) | ||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 1,092,037 | 15,236,985 | 2,876,213 | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3,888,454 | ) | 5,949,816 | (2,583,578 | ) | |||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 6,163,205 | 213,389 | 2,796,967 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 2,274,751 | $ | 6,163,205 | $ | 213,389 | ||||||
SUPPLEMENTARY INFORMATION: | ||||||||||||
Interest paid | $ | 0 | $ | 1,275,269 | $ | 1,544,663 | ||||||
Income taxes paid | $ | 0 | $ | 0 | $ | 0 | ||||||
Director fees paid with equity | $ | 100,000 | $ | 278,602 | $ | 0 | ||||||
Accounts payable settled with equity | $ | 0 | $ | 50,000 | $ | 0 | ||||||
Gain on debt forgiveness | $ | 370,400 | $ | — | $ | — | ||||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: |
2021 | 2020 | 2019 | ||||||||||
Average market price during the period | $ | 6.50 | $ | 5.06 | $ | 4.93 | ||||||
In the money potential common shares from options excluded | 22,493 | 22,493 | 22,493 | |||||||||
In the money potential common shares from warrants excluded | 2,781,314 | 2,585,179 | 120,000 |
Per share | 2021 | 2020 | 2019 | |||||||||
Out of the money options excluded: | ||||||||||||
$12.48 | 136,833 | 136,833 | 136,833 | |||||||||
$12.84 | 4,167 | 4,167 | 4,167 | |||||||||
$26.40 | 75,158 | 75,158 | 75,158 | |||||||||
Out-of-the-money | ||||||||||||
$5.76 | 0 | 196,135 | 196,135 | |||||||||
$7.16 | 700,000 | 700,000 | 700,000 | |||||||||
Total excluded | 916,158 | 1,112,293 | 1,112,293 | |||||||||
2021 | 2020 | 2019 | ||||||||||
Excluded unvested restricted stock awards | 476,341 | 249,391 | 41,667 |
12 Month Period Ended December 31, 2021 | 12 Month Period Ended December 31, 2020 | 12 Month Period Ended December 31, 2019 | ||||||||||
Net loss | $ | (9,956,395 | ) | $ | (14,812,156 | ) | $ | (10,439,961 | ) | |||
Numerator, basic and diluted net loss available to stockholders | $ | (9,656,395 | ) | $ | (14,812,156 | ) | $ | (10,439,961 | ) | |||
Denominator: | ||||||||||||
Shares used in computation – basic: | ||||||||||||
Weighted average common shares outstanding | 13,296,687 | 10,538,114 | 9,346,213 | |||||||||
Shares used in computation – diluted: | ||||||||||||
Weighted average common shares outstanding | 13,296,687 | 10,538,114 | 9,346,213 | |||||||||
Net loss per share – basic and diluted | $ | (0.75 | ) | $ | (1.41 | ) | $ | (1.12 | ) | |||
December 31, 2021 | December 31, 2020 | |||||||
Related party | 268,867 | 160,220 | ||||||
Other | 0 | 37 | ||||||
Accounts receivable, net | $ | 268,867 | $ | 160,257 | ||||
December 31, 2021 | December 31, 2020 | |||||||
Prepaid expenses | $ | 732,562 | $ | 582,319 | ||||
Deposits | 44,068 | 5,075 | ||||||
Total other current assets | $ | 776,630 | $ | 587,394 | ||||
December 31, 2021 | December 31, 2020 | |||||||
Computers and peripherals | 535,807 | 612,286 | ||||||
Furniture and office equipment | 1,009,238 | 1,267,281 | ||||||
Marine equipment | 4,057,870 | 5,416,150 | ||||||
Right to use asset, net | 461,109 | 607,039 | ||||||
6,064,024 | 7,902,756 | |||||||
Less: Accumulated depreciation | (5,584,881 | ) | (7,287,999 | ) | ||||
Property and equipment, net | $ | 479,143 | $ | 614,757 | ||||
Fair value of 249,584 common shares issued | $ | 1,407,653 | ||
Direct transaction costs | 46,113 | |||
Total consideration paid | $ | 1,453,766 | ||
Intangible asset-exploration license rights | $ | 1,821,251 | ||
Current assets | 1,748 | |||
Current liabilities | (3,516 | ) | ||
Less: Non-controlling interest | (365,717 | ) | ||
Total net assets acquired | $ | 1,453,766 | ||
December 31, 2021 | December 31, 2020 | |||||||
Note 1 – Monaco 2014 | 0 | $ | 2,800,000 | |||||
Note 2 – Monaco 2016 | 0 | 1,175,000 | ||||||
Note 3 – MINOSA 1 | 14,750,001 | 14,750,001 | ||||||
Note 4 – Epsilon | 0 | 1,000,000 | ||||||
Note 5 – SMOM | 0 | 3,500,000 | ||||||
Note 6 – MINOSA 2 | 5,050,000 | 5,050,000 | ||||||
Note 7 – Monaco 2018 | 0 | 1,099,367 | ||||||
Note 8 – Promissory note | 0 | 1,245,862 | ||||||
Note 9 – Litigation financing | 18,323,097 | 10,968,729 | ||||||
Note 10 – Payroll Protection Program | 0 | 370,400 | ||||||
Note 11 – EIDL | 149,900 | 149,900 | ||||||
Note 12 – Vendor note payable | 484,009 | 484,009 | ||||||
Note 13 – Monaco | 2,500,000 | — | ||||||
$ | 41,257,007 | $ | 42,593,268 | |||||
Tranche 1 | Tranche 2 | Tranche 3 | Tranche 4 | Tranche 5 | Total | |||||||||||||||||||
Promissory Note | $ | 1,932,759 | $ | 5,826,341 | $ | 2,924,172 | $ | 1,960,089 | $ | 1,723,492 | $ | 14,366,853 | ||||||||||||
Deferred Income (Oceanica Call Option) | 67,241 | 173,659 | 75,828 | 39,911 | 26,509 | 383,148 | ||||||||||||||||||
Proceeds | $ | 2,000,000 | $ | 6,000,000 | $ | 3,000,000 | $ | 2,000,000 | $ | 1,750,001 | $ | 14,750,001 | ||||||||||||
Tranche 3 | Tranche 4 | Tranche 5 | ||||||||||
Promissory Note | $ | 981,796 | $ | 939,935 | $ | 1,000,000 | ||||||
Beneficial Conversion Feature (“BCF”)* | 18,204 | 60,065 | — | |||||||||
Proceeds | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 | ||||||
2021 | 2020 | |||||||
Compensation and incentives | $ | 1,655,761 | $ | 1,136,754 | ||||
Professional services | 1,475,522 | 243,995 | ||||||
Deposit | 450,000 | 450,000 | ||||||
Interest | 21,875,753 | 18,002,386 | ||||||
Accrued insurance obligations | 621,770 | 355,814 | ||||||
Other operating | 1,765,301 | 985,056 | ||||||
Total accrued expenses | $ | 27,844,107 | $ | 21,174,005 | ||||
December 31, 2021 | December 31, 2020 | |||||||
“ Seattle ” project | $ | 0 | 62,500 | |||||
Galt Resources, LLC (HMS Victory ) | 0 | 3,756,250 | ||||||
Total revenue participation rights | $ | 0 | $ | 3,818,750 | ||||
Convertible Preferred Stock | Shares | Price Per Share | Total Investment | |||||||||
Series AA-1 | 8,427,004 | $ | 12.00 | $ | 101,124,048 | |||||||
Series AA-2 | 7,223,145 | $ | 6.00 | 43,338,870 | ||||||||
15,650,149 | $ | 144,462,918 | ||||||||||
Number of Shares | Weighted Average Exercise Price | |||||||
Outstanding at December 31, 2018 | 238,651 | $ | 15.95 | |||||
Granted | 0 | $ | 0 | |||||
Exercised | 0 | $ | 0 | |||||
Cancelled | 0 | $ | 0 | |||||
Outstanding at December 31, 2019 | 238,651 | $ | 15.95 | |||||
Granted | 0 | $ | 0 | |||||
Exercised | 0 | $ | 0 | |||||
Cancelled | 0 | $ | 0 | |||||
Outstanding at December 31, 2020 | 238,651 | $ | 15.95 | |||||
Granted | 0 | $ | 0 | |||||
Exercised | 0 | $ | 0 | |||||
Cancelled | 0 | $ | 0 | |||||
Outstanding at December 31, 2021 | 238,651 | $ | 15.95 | |||||
Options exercisable at December 31, 2019 | 238,651 | $ | 15.95 | |||||
Options exercisable at December 31, 2020 | 238,651 | $ | 15.95 | |||||
Options exercisable at December 31, 2021 | 238,651 | $ | 15.95 | |||||
Stock Options Outstanding | ||||||||||||
Range of Exercise Prices | Number of Shares Outstanding | Weighted Average Remaining Contractual Life in Years | Weighted Average Exercise Price | |||||||||
$26.40 - $26.40 | 75,158 | 2.00 | $ | 26.40 | ||||||||
$12.48 - $12.84 | 141,000 | 3.00 | $ | 12.48 | ||||||||
$2.02 - $3.59 | 22,493 | 4.65 | $ | 2.74 | ||||||||
238,651 | 2.84 | $ | 15.95 | |||||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2020 | 249,391 | $ | 5.18 | |||||
Granted | 254,559 | $ | 7.05 | |||||
Vested | (227,241 | ) | $ | 5.62 | ||||
Cancelled | 0 | $ | 0 | |||||
Unvested at December 31, 2021 | 276,709 | $ | 6.54 | |||||
Common Stock Warrants | Exercise Price | Termination Date | ||||||
196,135 | $ | 5.76 | 07/08/2024 | |||||
700,000 | $ | 7.16 | 11/02/2023 | |||||
551,378 | $ | 3.99 | ** | |||||
131,816 | $ | 4.67 | 08/14/2023 | |||||
1,901,985 | $ | 4.75 | 02/25/2024 | |||||
3,481,314 | ||||||||
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Current | ||||||||||||
Federal | $ | 0 | $ | 0 | $ | 0 | ||||||
State | 0 | 0 | 0 | |||||||||
$ | 0 | $ | 0 | $ | 0 | |||||||
Deferred | ||||||||||||
Federal | $ | 0 | $ | 0 | $ | 0 | ||||||
State | 0 | 0 | 0 | |||||||||
$ | 0 | $ | 0 | $ | 0 | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Deferred tax assets: | ||||||||
Net operating loss and tax credit carryforwards | $ | 72,201,754 | $ | 66,867,637 | ||||
Capital loss carryforward | 5,514 | 5,683 | ||||||
Accrued expenses | 363,149 | 253,374 | ||||||
Start-up costs | 5,664 | 5,837 | ||||||
Excess of book over tax depreciation | 259,667 | 394,649 | ||||||
Stock option and restricted stock award expense | 1,429,488 | 1,464,210 | ||||||
Debt Extinguishment | 58,161 | 59,934 | ||||||
Less: valuation allowance | (74,138,667 | ) | (68,859,984 | ) | ||||
$ | 184,730 | $ | 191,340 | |||||
Deferred tax liability: | ||||||||
Property and equipment basis | $ | 10,434 | $ | 48,545 | ||||
Prepaid expenses | 174,296 | 142,795 | ||||||
$ | 184,730 | $ | 191,340 | |||||
Net deferred tax asset | $ | 0 | $ | 0 | ||||
December 31, 2021 | $ | 74,138,667 | ||
December 31, 2020 | 68,859,984 | |||
Change in valuation allowance | $ | 5,278,683 | ||
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Expected (benefit) | $ | (3,386,834 | ) | $ | (4,429,419 | ) | $ | (3,254,942 | ) | |||
Effects of: | ||||||||||||
State income taxes net of federal benefits | (570,116 | ) | (940,302 | ) | (156,858 | ) | ||||||
Nondeductible expense | (56,839 | ) | 150,238 | 262,776 | ||||||||
Subpart F Income | 735,229 | 345,006 | — | |||||||||
Debt Extinguishment | 0 | 91,266 | — | |||||||||
Funder | 0 | 2,482,252 | — | |||||||||
Change in valuation allowance | 6,229,371 | 4,815,784 | 5,170,161 | |||||||||
Foreign Rate Differential | (2,950,811 | ) | (2,514,825 | ) | (2,021,137 | ) | ||||||
$ | 0 | $ | 0 | $ | 0 | |||||||
Year ending December 31, | Annual payment obligation | |||
2022 | 151,965 | |||
2023 | 156,524 | |||
2024 | 92,884 | |||
$ | 401,373 | |||
Year ending December 31, | Annual payment obligation | |||
2022 | 51,827 | |||
2023 | 53,382 | |||
2024 | 40,930 | |||
$ | 146,139 | |||
Fiscal Year Ended December 31, 2021 | ||||||||||||||||
Quarter Ending | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
Revenue - net | $ | 291,676 | $ | 182,334 | $ | 197,051 | $ | 250,177 | ||||||||
Gross profit | 291,676 | 182,334 | 197,051 | 250,177 | ||||||||||||
Net income (loss) | (3,720,218 | ) | (2,227,499 | ) | (4,085,297 | ) | 76,619 | |||||||||
Basic and diluted net income per share | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.31 | ) | $ | 0.02 |
Fiscal Year Ended December 31, 2020 | ||||||||||||||||
Quarter Ending | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
Revenue - net | $ | 1,005,511 | $ | 519,969 | $ | 211,538 | $ | 301,314 | ||||||||
Gross profit | 1,005,511 | 519,969 | 211,538 | 301,314 | ||||||||||||
Net income (loss) | (2,897,976 | ) | (4,098,623 | ) | (5,448,046 | ) | (2,367,511 | ) | ||||||||
Basic and diluted net income per share | $ | (0.30 | ) | $ | (0.43 | ) | $ | (0.51 | ) | $ | (0.17 | ) |
Balance at Beginning of Year | Charged (Credited) to Expenses | Charged (Credited) to Other Accounts | Deductions | Balance at End of Year | ||||||||||||||||
Inventory reserve | ||||||||||||||||||||
2019 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
2020 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
2021 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Accounts receivable reserve | ||||||||||||||||||||
2019 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
2020 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
2021 | 0 | 0 | 0 | 0 | 0 |
ODYSSEY MARINE EXPLORATION, INC. | ||||||||
Dated: August 11, 2022 | ||||||||
By: | / | |||||||
Chief |
Exhibit Number | Description | |
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
3.5 | ||
3.6 | ||
3.7 | ||
4.1 | ||
4.2 | ||
4.3 | ||
10.1* | ||
10.2* | ||
10.3* | ||
10.4 | ||
10.5 | ||
10.6 | ||
10.7 | ||
10.8 | ||
10.9 | ||
10.10 | ||
10.11 | ||
10.12 | ||
10.13 | ||
10.14 |
10.15 | ||
10.16 | ||
10.17 | ||
10.18 | ||
10.19 | ||
10.20 | ||
10.21 | ||
10.22 | ||
10.23 | ||
10.24 | ||
10.25 | ||
10.26 | ||
10.27 | ||
10.28 | ||
21.1 | ||
23.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
96.1 | ||
101.1 | Inline XBRL Interactive Data File (incorporated by reference to Exhibit 101.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained within Exhibit 101) |
* | Management contract or compensatory plan. |