10-K: Odyssey Health Inc. Reports Full Year 2024 Results, Highlights Asset Sale and Ongoing Development

Odyssey Health Inc. reports its full year 2024 results, including a significant gain from the sale of assets to Oragenics, while continuing to develop its medical device technologies.

Summary

• Odyssey Health Inc., a publicly held holding company focused on acquiring and developing medical products, released its annual report for the fiscal year ended July 31, 2024.
• The company is developing technologies such as the CardioMap heart monitoring device and the Save a Life choking rescue device, neither of which have received regulatory clearance for commercial sale.
• A significant event was the sale of assets related to brain-related illnesses to Oragenics, Inc. for $1 million in cash, 8 million shares of convertible Series F preferred stock, and the assumption of $325,672 in accounts payable, resulting in a gain of $16,400,687.
• The total value of consideration received was $16,449,054.
• The company's net loss attributable to common stockholders for the year was $905,771, compared to a net loss of $5,919,421 in the previous year.
• As of July 31, 2024, the company had a working capital deficit of $5,862,952 and an accumulated deficit of $61,003,146.
• The company's independent auditor has raised substantial doubt about its ability to continue as a going concern.
• The company has suspended development programs for the CardioMap and Save-a-Life devices due to funding constraints and market conditions.

Sentiment

Score: 3

Explanation: The document presents a mixed picture, with a significant gain from asset sales offset by substantial losses, a going concern warning, and suspended development programs. The overall sentiment is negative due to the company's financial instability and operational challenges.

Positives

• The sale of assets to Oragenics generated a significant gain of $16,400,687.
• The company's net loss decreased substantially compared to the previous year.
• The company received $1 million in cash from the Oragenics transaction.
• The company has exclusive, royalty-free rights to a patent related to the CardioMap technology.

Negatives

• The company has a significant working capital deficit of $5,862,952.
• The company has an accumulated deficit of $61,003,146.
• The company's independent auditor has raised substantial doubt about its ability to continue as a going concern.
• The company has suspended development programs for the CardioMap and Save-a-Life devices due to funding constraints.
• The company has not generated any revenue or profit from operations since its inception.
• The company's disclosure controls and procedures were not effective as of July 31, 2024, due to material weaknesses in internal control over financial reporting.

Risks

• The company has a limited operating history and a history of losses, making it difficult to evaluate its prospects for success.
• There is substantial doubt about the company's ability to continue as a going concern.
• The company needs to raise additional funds, and such funds may not be available on acceptable terms.
• The company's product candidates are still in development and require regulatory clearance or approvals, which may not be obtained.
• The company faces significant competition in an environment of rapid technological change.
• The company relies on third parties for the manufacture and distribution of its products.
• The company may be subject to litigation, including product liability claims.
• The company may be unable to adequately protect its proprietary and intellectual property rights.
• The company's common stock is subject to being removed from the OTC Marketplace.
• The company's common stock is deemed to be a penny stock, which may make it more difficult for investors to sell their shares.

Future Outlook

The company intends to pursue distribution or license agreements, develop products for additional proprietary uses, develop and acquire new products, and seek partners to assist in the further development of its drug device combination products. The company anticipates growth from these areas once products are approved by the appropriate regulatory agencies.

Management Comments

• Management anticipates company growth from distribution or license agreements, identifying and developing products for additional proprietary uses, the development and acquisition of new products, and seeking partners to assist in the further development of drug device combination products.
• Management believes that the CardioMap device has potential value in any medical practice and could be an ideal device, allowing insurance companies to potentially cut costs through early diagnostic and preventative care.

Industry Context

The company operates in the medical device and pharmaceutical industries, which are characterized by rapid technological change, intense competition, and stringent regulatory requirements. The company's focus on developing innovative medical technologies aligns with the broader trend towards preventative medicine and cost-effective healthcare solutions. However, the company faces competition from larger, more established companies with greater resources.

Comparison to Industry Standards

• The company's financial results, particularly the net loss and working capital deficit, are concerning when compared to industry standards for medical device and pharmaceutical companies.
• Many companies in these sectors, especially those in the development stage, often experience losses, but the magnitude of Odyssey's deficit and the auditor's going concern warning are significant red flags.
• Compared to companies like Bioject Medical Technologies, where Mr. Redmond previously worked, which grew from a small cap to a $400 million market cap, Odyssey has not yet demonstrated similar growth or market traction.
• The company's reliance on third-party manufacturers and distributors is common in the industry, but it also introduces risks related to supply chain and quality control.
• The company's development programs for CardioMap and Save-a-Life are similar to other early-stage medical device companies, but the suspension of these programs due to funding constraints is a negative indicator.

Legal Proceedings

• The company was a party to a lawsuit in Superior Court, Kent County in the State of Rhode Island, which was dismissed on July 24, 2024.

Related Party Transactions

• The company has outstanding promissory notes with officers and directors.
• The company has accrued salary and bonus amounts due to its officers.

Stakeholder Impact

• Shareholders face significant risks due to the company's financial instability and the potential for dilution from future capital raises.
• Employees may be affected by the company's financial challenges and the suspension of development programs.
• Customers and suppliers may be impacted by the company's ability to continue operations and bring products to market.
• Creditors face the risk of non-payment due to the company's financial difficulties.

Next Steps

• The company intends to enter into distribution agreements with companies who have sales professionals with experience selling through a variety of sales methods once any of its products in development are approved by the appropriate regulatory agency.
• The company intends to pursue development of CardioMap technology for use in other areas of the human body, such as the brain, liver and kidney when funding allows.
• The company intends to utilize its proprietary nasal delivery system to deliver other drugs to the brain to treat brain related medical issues when funding allows.
• The company intends to pursue the development and acquisition of other product candidates and market any new products, if cleared or approved, as capital resources permit.
• The company intends to seek partners to assist with the further development and clinical trials of its technologies.

Key Dates

Keywords

medical devices, pharmaceuticals, drug development, intellectual property, regulatory approvals, cardiovascular, neurology, choking rescue, asset sale, Oragenics, capital raise, clinical trials