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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | NOTE G – COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company may be subject to a variety of claims and suits that arise from time to time in the ordinary course of business. We are not a party to any litigation as a defendant where a loss contingency is required to be reflected in our condensed consolidated financial statements. Contingency We owe consultants contingent success fees of up to $700,000 upon the approval and issuance of the Environmental Impact Assessment (“EIA”) for our Mexican subsidiary. The EIA has not been approved as of the date of this report. Going Concern Consideration We have experienced several years of net losses and may continue to do so. Our ability to generate net income or positive cash flows for the following twelve months is dependent upon financings, our success in developing and monetizing our interests in mineral exploration entities, generating income from exploration charters, collecting on amounts owed to us, or completing the MINOSA/Penelope equity financing transaction. Our 2022 business plan requires us to generate new cash inflows to effectively allow us to perform our planned projects. We continually plan to generate new cash inflows through the monetization of our receivables and equity stakes in seabed mineral companies, financings, syndications or other partnership opportunities. If cash inflow ever becomes insufficient to meet our desired projected business plan requirements, we would be required to follow a contingency business plan that is based on curtailed expenses and fewer cash requirements. On June 10, 2022, we sold an aggregate of 4,939,515 shares of our common stock and warrants to purchase up to 4,939,515 shares of our common stock. The net proceeds received from this sale, after offering expenses of $1.8 million, were $14.7 million (See NOTE I). These proceeds, coupled with other anticipated cash inflows, are expected to provide operating funds through 2022. On March 11, 2015, we entered into a Stock Purchase Agreement with Minera del Norte S.A. de c.v. (“MINOSA”) and Penelope Mining LLC (“Penelope”), an affiliate of MINOSA, pursuant to which (a) MINOSA agreed to extend short-term, debt financing to Odyssey of up to $14.75 million, and (b) Penelope agreed to invest up to $101 million over three years in convertible preferred stock of Odyssey. The equity financing is subject to the satisfaction of certain conditions, including the approval of our stockholders which occurred on June 9, 2015, and MINOSA and Penelope are currently under no obligation to make the preferred share equity investments. Our consolidated non-restricted cash balance at September 30, 2022 was $6.8 million. We have a working capital deficit at September 30, 2022 of ($53.1) million. The total consolidated book value of our assets was approximately $14.3 million at September 30, 2022, which includes cash of $6.8 million. Even though we executed the above-noted financing arrangement with Penelope, Penelope must purchase the shares for us to be able to complete the equity component of the transaction. The Penelope equity transaction is heavily dependent on the outcome of our subsidiary’s application approval process for an EIA to commercially develop a mineralized phosphate deposit off the coast of Mexico. The factors noted above raise doubt about our ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern. Lease commitment At September 30, 2022, the right of usage (“ROU”) asset and lease obligation for our corporate office operating lease were, $249,371 and $262,023, respectively. The remaining lease payment obligations are as follows:
Year ending December 31, |  | Annual payment obligation |
2022 |  | $ | 38,648 |
2023 |  |  | 156,524 |
2024 |  |  | 92,884 |
|  | $ | 288,056 |
At September 30, 2022, the ROU asset and lease obligation for our marine operations operating lease were, $92,462 and $97,048, respectively. The remaining lease payment obligations are as follows:
Year ending December 31, |  | Annual payment obligation |
2022 |  | $ | 13,246 |
2023 |  |  | 53,382 |
2024 |  |  | 40,930 |
|  | $ | 107,558 |
We recognized approximately $54,600 and $41,000 in rent expense associated with these leases for the three months ended September 30, 2022 and 2021, respectively, and approximately $163,600 and $122,000 in rent expense for the nine months ended September 30, 2022 and 2021, respectively.

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