RedactedNarrative: On the listed date and time, the three persons listed in this report were aboard the listed vessel offshore of Panama City Beach for the purpose of diving and spearfishing. The subjects were taking a break from diving. A large wave crashed into the stern of the vessel and broke the partition that separated the interior of the vessel from the outboard motor deck. Upon doing so, water rushed into the cabin of the vessel which was open. At least one more wave did the same forcing more water into the cabin area of the vessel. The vessel began to list as the sump pumps were not able to expel the water. The occupants cut the anchor line and the operator attempted to start the vessel but was unable to do so because the vessel's electric battery source was underwater. The occupants notified emergency personnel as the vessel continued to take on water and began to sink. The vessel resultantly capsized and turned upside down. Occupants including one dog cleared the vessel. The occupants were later gathered from the water by USCG and the vessel was towed into MWR Marina by a SeaTow Vessel. No injuries or fatalities were reported. Vessel related property damage estimated at $20,000.