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Deferred Income and Revenue Participation Rights
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Deferred Income and Revenue Participation Rights
NOTE K – DEFERRED INCOME AND REVENUE PARTICIPATION RIGHTS
The Company’s participating revenue rights and deferred revenue consisted of the following for the respective year end:
 
 
  
December 31,

2021
 
  
December 31,

2020
 
“
Seattle
” project
    $ —        62,500  
Galt Resources, LLC (HMS
Victory
)
      —        3,756,250  
    
 
 
     
 
 
  
Total revenue participation rights
    $ —      $ 3,818,750  
    
 
 
     
 
 
  
“
Seattle
” project
In a private placement that closed in September 2000, we sold “units” consisting of “
Republic”
Revenue Participation Certificates and Common Stock. Each $50,000 “unit” entitled the holder to 1% of the gross revenue generated by the now named “
Seattle
” project (formerly referred to as the “
Republic
” project), and 100,000 shares of Common Stock. Gross revenue is defined as all cash proceeds payable to us as a result of the “
Seattle
” project, excluding funds received by us to finance the project.
The participation rights balance was to be amortized under the units of revenue method once management was able to reasonably estimate potential revenue for this project. The RPCs for the “
Seattle
”
project do not have a termination date; therefore, these liabilities were to be carried on the books until revenue is recognized from the project or we permanently abandon the project, which was confirmed by management in June 2021. Therefore, the amount was written off and is included in Other income (expense) in our Consolidated Statements of Operations.
Galt Resources, LLC
In February 2011, we entered into a project syndication deal with Galt Resources LLC (“Galt”) for which they invested $7,512,500 representing rights to future revenues of any one project Galt selected prior to December 31, 2011. If the project is successful and generates sufficient proceeds, Galt will recoup their investment plus three times the investment. Galt’s investment return will be paid out of project proceeds. Galt will receive 50% of project proceeds until this amount is recouped. Thereafter, they will share in additional net proceeds of the project at the rate of 1% for every million invested. Subsequent to the original syndication deal, we reached an agreement permitting Galt to bifurcate their selection between two projects, the SS
Gairsoppa
and HMS
Victory
with the residual 1% on additional net proceeds assigned to the HMS
Victory
project only. The bifurcation resulted in $3,756,250 being allocated to each of the two projects. Therefore, Galt was entitled to receive 7.5125% of net proceeds from the HMS
Victory
project after they recoup their investment of $3,756,250 plus three times the investment. Galt has been paid in full for their share of the
Gairsoppa
project investment. There are no future payments remaining due to Galt for the
Gairsoppa
project. Based on the timing of the proceeds earmarked for Galt, the relative corresponding amount of Galt’s revenue participation right of $3,756,250 was amortized into revenue in 2012 based upon the percent of Galt-related proceeds from the sale of silver as a percentage of total proceeds that Galt earned under the revenue participation agreement ($15.0 million). There was no expiration date on the Galt deal for the HMS
Victory
project. If the archaeological excavation of the shipwreck is performed and insufficient proceeds obtained, then the deferred income balance would be recognized as other income. If the archaeological excavation of the shipwreck was performed and sufficient proceeds obtained, then the deferred income balance would be recognized as revenue. This project syndication agreement was mutually terminated in June 2021. Therefore, the carrying amount was written off to Other income (expense) in our Consolidated Statements of Operations.