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Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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Equity Bottom-Up

Odyssey Marine Exploration  / Equity Bottom-Up

<ul><li>Catching up with financial filings. Last Friday, OMEX released its delayed 10-K report for 2023, bringing it back in compliance with SEC filing requirements, and followed it up with Monday’s release of its 10-Q report for 1Q24.</li><li>The delayed filings were necessitated by the decision to restate certain balance sheet items, such as OMEX’s litigation financing, which has been reclassified as a derivative liability under GAAP, as well as other balance sheet adjustments that had no adverse effect on its business or financial position.</li><li><p>Cash balance improves and should suffice through 3Q24. OMEX finished 2023 with $4MM in cash, a $2.6MM improvement from 2022, as it strengthened its balance sheet by settling previous debt and warrant obligations and issuance of new debt with attached warrants. </p></li></ul>

Catching up with financial filings. Last Friday, OMEX released its delayed 10-K report for 2023, bringing it back in compliance with SEC filing requirements, and followed it up with Monday’s release of its 10-Q report for 1Q24.The delayed filings were necessitated by the decision to restate certain balance sheet items, such as OMEX’s litigation financing, which has been reclassified as a derivative liability under GAAP, as well as other balance sheet adjustments that had no adverse effect on its business or financial position.Cash balance improves and should suffice through 3Q24. OMEX finished 2023 with $4MM in cash, a $2.6MM improvement from 2022, as it strengthened its balance sheet by settling previous debt and warrant obligations and issuance of new debt with attached warrants. 

Odyssey Marine Exploration, Inc. - Critical Year Ahead