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Sale-leaseback Financing Obligations | 9 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
Sale-leaseback Financing Obligations | NOTE 14 – SALE-LEASEBACK FINANCING OBLIGATIONS During the year ended December 31, 2023, the Company’s subsidiaries sold marine equipment to third-party buyers for an aggregate of $4.5 million. Simultaneously with each sale, the subsidiaries entered into lease agreements with each buyer of the respective marine equipment (the sale of the property and simultaneous leaseback is referred to as a “sale-leaseback”). The Company accounted for the sale-leaseback transactions as financing transactions with the purchasers of the property in accordance with ASC Topic 842 as the lease agreements were determined to be finance leases. The Company concluded the lease agreements both met the qualifications to be classified as finance leases due to the obligation to repurchase the equipment. ORI was one of Odyssey’s subsidiaries that entered into one of the sale-leaseback financing obligations noted above. As noted in Note 6, Investment in Unconsolidated Entity, Odyssey transferred all of its shares in ORI to OML as part of the Investment in OML. Pursuant to the OML Purchase Agreement, Odyssey is obligated to pay all amounts owed for rent and the repurchase of the marine equipment under the sale-leaseback agreement. As of September 30, 2024 and December 31, 2023, the carrying values of the financing liabilities were $4.2 million and $4.1 million. The monthly lease payments are split between a reduction of principal and interest expense using the effective interest rate method. Remaining future cash payments related to the financing liability, for the remainder of 2024 and thereafter are as follows:
Year Ending December 31, | Annual payment obligation |
2024 | $ | 135,000 |
2025 |  | 540,000 |
2026 |  | 540,000 |
2027 |  | 4,710,000 |
Thereafter |  | — |
|  |  |  | $ | 5,925,000 |

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- Definition The entire disclosure for sale leaseback transaction. Includes, but is not limited to, terms and conditions of transaction and gain (loss) from transaction. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 840 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/840-40/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-40/tableOfContent + Details
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