• |
changes in shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand;
|
• |
changes in seaborne and other transportation patterns;
|
• |
changes in the supply of or demand for dry bulk commodities, including dry bulk commodities carried by sea, generally or in particular regions;
|
• |
changes in the number of newbuildings under construction in the dry bulk shipping industry;
|
• |
changes in the useful lives and the value of our vessels and the related impact on our compliance with loan covenants;
|
• |
the aging of our fleet and increases in operating costs;
|
• |
changes in our ability to complete future, pending or recent acquisitions or dispositions;
|
• |
our ability to achieve successful utilization of our expanded fleet;
|
• |
changes to our financial condition and liquidity, including our ability to pay amounts that we owe and obtain additional financing to fund capital expenditures, acquisitions and other general corporate activities;
|
• |
risks related to our business strategy, areas of possible expansion or expected capital spending or operating expenses;
|
• |
changes in the availability of crew, number of off-hire days, classification survey requirements and insurance costs for the vessels in our fleet;
|
• |
changes in our ability to leverage the relationships and reputation in the dry bulk shipping industry of V.Ships Greece Ltd., or V.Ships Greece, our technical manager, Global Seaways S.A., our crew manager, and
Fidelity Marine Inc., or Fidelity, our commercial manager;
|
• |
changes in our relationships with our contract counterparties, including the failure of any of our contract counterparties to comply with their agreements with us;
|
• |
loss of our customers, charters or vessels;
|
• |
damage to our vessels;
|
• |
potential liability from future litigation and incidents involving our vessels;
|
• |
our future operating or financial results;
|
• |
acts of terrorism, other hostilities, pandemics or other calamities;
|
• |
risks associated with the worldwide coronavirus, or COVID-19, including its effects on demand for dry bulk products, crew changes and the transportation thereof;
|
• |
changes in global and regional economic and political conditions, including without limitation, increased inflationary pressures and increases in the interest rates set by central banks;
|
• |
general domestic and international political conditions or events, including “trade wars”, the war between Russia and Ukraine and related sanctions or the armed conflict in the Gaza strip;
|
• |
changes in governmental rules and regulations or actions taken by regulatory authorities, particularly with respect to the dry bulk shipping industry;
|
• |
our ability to continue as a going concern; and
|
• |
other factors listed from time to time in registration statements, reports or other materials that we have filed with or furnished to the U.S. Securities and Exchange Commission, including our most recent annual
report on Form 20-F.
|
• |
number of vessels owned and operated;
|
• |
voyage charter rates;
|
• |
time charter trip rates;
|
• |
period time charter rates;
|
• |
the nature and duration of our voyage and time charters;
|
• |
vessel repositioning;
|
• |
vessel operating expenses and voyage costs;
|
• |
maintenance and upgrade work;
|
• |
the age, condition and specifications of our vessels;
|
• |
issuance of our common shares and other securities;
|
• |
amount of debt obligations; and
|
• |
financing costs related to debt obligations.
|
Nine months ended
September 30,
|
Change
|
|||||||||||||||
2023
|
2022
|
Amount
|
%
|
|||||||||||||
Revenues:
|
||||||||||||||||
Vessel revenue, net
|
68,135
|
95,476
|
(27,341
|
)
|
(29
|
)%
|
||||||||||
Fees from related parties
|
2,671
|
1,017
|
1,654
|
163
|
%
|
|||||||||||
Revenue, net
|
70,806
|
96,493
|
(25,687
|
)
|
(27
|
)%
|
||||||||||
Expenses:
|
||||||||||||||||
Voyage expenses
|
(2,078
|
)
|
(3,513
|
)
|
1,435
|
(41
|
)%
|
|||||||||
Vessel operating expenses
|
(31,371
|
)
|
(32,642
|
)
|
1,271
|
(4
|
)%
|
|||||||||
Management fees
|
(535
|
)
|
(1,077
|
)
|
542
|
(50
|
)%
|
|||||||||
General and administrative expenses
|
(16,785
|
)
|
(13,044
|
)
|
(3,741
|
)
|
29
|
%
|
||||||||
Depreciation and amortization
|
(21,290
|
)
|
(20,796
|
)
|
(494
|
)
|
2
|
%
|
||||||||
Loss on forward freight agreements, net
|
(148
|
)
|
(407
|
)
|
259
|
(64
|
)%
|
|||||||||
Gain on sale of vessels, net
|
8,094
|
-
|
8,094
|
-
|
||||||||||||
Operating income
|
6,693
|
25,014
|
(18,321
|
)
|
(73
|
)%
|
||||||||||
Other expenses:
|
||||||||||||||||
Interest and finance costs
|
(15,528
|
)
|
(10,282
|
)
|
(5,246
|
)
|
51
|
%
|
||||||||
Loss on extinguishment of debt
|
(540
|
)
|
(1,285
|
)
|
745
|
(58
|
)%
|
|||||||||
Interest and other income
|
958
|
336
|
622
|
185
|
%
|
|||||||||||
Gain on spin-off
|
-
|
2,800
|
(2,800
|
)
|
(100
|
)%
|
||||||||||
Other, net
|
(130
|
)
|
163
|
(293
|
)
|
(180
|
)%
|
|||||||||
Total other expenses, net:
|
(15,240
|
)
|
(8,268
|
)
|
(6,972
|
)
|
84
|
%
|
||||||||
Net (loss) / income
|
(8,547
|
)
|
16,746
|
(25,293
|
)
|
(151
|
)%
|
|||||||||
Dividends to non-vested participating securities
|
(114
|
)
|
-
|
(114
|
)
|
-
|
||||||||||
Net (loss) / income attributable to common shareholders
|
(8,661
|
)
|
16,746
|
(25,407
|
)
|
(152
|
)%
|
|||||||||
Net (loss) / income per common share, basic
|
(0.48
|
)
|
0.96
|
|||||||||||||
Net (loss) / income per common share, diluted
|
(0.48
|
)
|
0.94
|
|||||||||||||
Weighted average number of common shares outstanding, basic
|
18,177,002
|
17,353,902
|
||||||||||||||
Weighted average number of common shares outstanding, diluted
|
18,177,002
|
17,842,518
|
Nine months ended
September 30,
|
||||||||
Fleet Data:
|
2023
|
2022
|
||||||
Ownership days
|
4,467
|
4,650
|
||||||
Available days(1)
|
4,467
|
4,413
|
||||||
Operating days(2)
|
4,423
|
4,380
|
||||||
Fleet utilization
|
99.0
|
%
|
94.2
|
%
|
||||
Average Daily Results:
|
||||||||
TCE rate(3)
|
$
|
14,935
|
$
|
20,996
|
||||
Daily Vessel Operating Expenses(4)
|
$
|
6,942
|
$
|
6,875
|
(1) |
During the nine months ended September 30, 2023, we incurred nil off-hire days for scheduled dry-dockings. During the nine months ended September 30, 2022, we incurred 237 off-hire days for scheduled dry-dockings.
|
(2) |
During the nine months ended September 30, 2023, we incurred 44 off-hire days due to other unforeseen circumstances. During the nine months ended September 30, 2022, we incurred 33 off-hire days due to other
unforeseen circumstances.
|
(3) |
We include TCE rate (a measure of the average daily revenue performance), which is not a recognized measure under U.S. GAAP, because we believe it provides additional meaningful information in conjunction with net
revenues from vessels, the most directly comparable U.S. GAAP measure, and because it assists our management in making decisions regarding the deployment and use of our vessels and because we believe that it provides useful information to
investors regarding our financial performance. Our calculation of TCE rate may not be comparable to that reported by other companies. The following table reconciles our net revenues from vessels to TCE rate.
|
Nine months ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
(In thousands of US Dollars, except operating days and TCE rate)
|
||||||||
Vessel revenue, net
|
$
|
68,135
|
$
|
95,476
|
||||
Voyage expenses
|
$
|
(2,078
|
)
|
$
|
(3,513
|
)
|
||
Time charter equivalent revenues
|
$
|
66,057
|
$
|
91,963
|
||||
Operating days
|
4,423
|
4,380
|
||||||
Daily time charter equivalent rate
|
$
|
14,935
|
$
|
20,996
|
(4) |
We include Daily Vessel Operating Expenses, which is not a recognized measure under U.S. GAAP, as we believe it provides additional meaningful information and assists management in making decisions regarding the
deployment and use of our vessels and because we believe that it provides useful information to investors regarding our financial performance. Our calculation of Daily Vessel Operating Expenses may not be comparable to that reported by
other companies. The following table reconciles our vessel operating expenses to Daily Vessel Operating Expenses.
|
Nine months ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
(In thousands of US Dollars, except ownership days and Daily Vessel Operating Expenses)
|
||||||||
Vessel operating expenses
|
$
|
31,371
|
$
|
32,642
|
||||
Less: Pre-delivery expenses
|
(362
|
)
|
(671
|
)
|
||||
Vessel operating expenses before pre-delivery expenses
|
$
|
31,009
|
$
|
31,971
|
||||
Ownership days
|
4,467
|
4,650
|
||||||
Daily Vessel Operating Expenses
|
$
|
6,942
|
$
|
6,875
|
Nine months ended
September 30,
|
||||||||
(In thousands of US Dollars)
|
2023
|
2022
|
||||||
Net (loss) / income
|
$
|
(8,547
|
)
|
$
|
16,746
|
|||
Interest and finance cost, net
|
15,185
|
10,099
|
||||||
Depreciation and amortization
|
21,290
|
20,796
|
||||||
Taxes
|
-
|
(28
|
)
|
|||||
EBITDA(1)
|
$
|
27,928
|
$
|
47,613
|
||||
Stock based compensation
|
8,601
|
6,762
|
||||||
Loss on extinguishment of debt
|
540
|
1,285
|
||||||
Loss on forward freight agreements, net
|
148
|
407
|
||||||
Gain on sale of vessels, net
|
(8,094
|
)
|
-
|
|||||
Gain on spin-off
|
-
|
(2,800
|
)
|
|||||
Adjusted EBITDA(1)
|
$
|
29,123
|
$
|
53,267
|
Nine months ended
September 30,
|
||||||||
2023
|
2022
|
|||||||
Cash Flow Data:
|
||||||||
Net cash provided by operating activities
|
$
|
11,050
|
$
|
29,040
|
||||
Net cash provided by / (used in) investing activities
|
$
|
21,413
|
$
|
(47,303
|
)
|
|||
Net cash used in financing activities
|
$
|
(42,895
|
)
|
$
|
(1,797
|
)
|
Page
|
|
F-2
|
|
F-4
|
|
F-5
|
|
F-6
|
|
F-7
|
September 30, 2023
|
December 31, 2022
|
|||||||||||
ASSETS
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
4
|
16,495
|
26,027
|
|||||||||
Restricted cash
|
4, 7
|
50
|
1,650
|
|||||||||
Accounts receivable trade, net
|
12
|
305
|
720
|
|||||||||
Inventories
|
5
|
1,451
|
1,995
|
|||||||||
Prepaid expenses
|
1,412
|
1,096
|
||||||||||
Due from related parties
|
3
|
1,839
|
829
|
|||||||||
Assets held for sale
|
-
|
28,252
|
||||||||||
Other current assets
|
499
|
1,075
|
||||||||||
Total current assets
|
22,051
|
61,644
|
||||||||||
Fixed assets:
|
||||||||||||
Vessels, net
|
6
|
416,543
|
434,133
|
|||||||||
Other fixed assets, net
|
464
|
412
|
||||||||||
Total fixed assets
|
417,007
|
434,545
|
||||||||||
Other non-current assets:
|
||||||||||||
Deposits assets, non-current
|
-
|
1,325
|
||||||||||
Deferred charges and other investments, non-current
|
7,177
|
10,759
|
||||||||||
Restricted cash, non-current
|
4, 7
|
5,500
|
4,800
|
|||||||||
Prepaid expense other, non-current
|
10
|
3,500
|
-
|
|||||||||
Operating lease, right of use asset
|
10
|
414
|
499
|
|||||||||
Other non-current assets
|
28
|
28
|
||||||||||
TOTAL ASSETS
|
455,677
|
513,600
|
||||||||||
LIABILITIES AND STOCKHOLDERS EQUITY
|
||||||||||||
Current liabilities:
|
||||||||||||
Current portion of long-term debt and other financial liabilities, net of deferred finance costs and debt discounts of $1,078 and $1,856, respectively
|
7
|
33,259
|
35,051
|
|||||||||
Debt related to assets held for sale, net of deferred finance costs of $NIL and $110, respectively
|
-
|
12,990
|
||||||||||
Current portion of convertible notes, net of deferred finance costs and debt discounts of $89 and $332, respectively
|
8
|
3,076
|
10,833
|
|||||||||
Liability from contract with related party
|
6
|
-
|
12,688
|
|||||||||
Trade accounts and other payables
|
5,352
|
7,826
|
||||||||||
Accrued liabilities
|
6,616
|
8,374
|
||||||||||
Operating lease liability
|
10
|
102
|
108
|
|||||||||
Deferred revenue
|
12
|
1,659
|
2,232
|
|||||||||
Other current liabilities
|
11, 16
|
491
|
4,548
|
|||||||||
Total current liabilities
|
50,555
|
94,650
|
||||||||||
Non-current liabilities:
|
||||||||||||
Long-term debt and other financial liabilities, net of current portion and deferred finance costs and debt discounts of $1,780 and $1,871, respectively
|
7
|
186,962
|
196,825
|
|||||||||
Operating lease liability, non-current
|
10
|
312
|
391
|
|||||||||
Deferred revenue, non-current
|
12
|
-
|
35
|
|||||||||
Total liabilities
|
237,829
|
291,901
|
||||||||||
Commitments and contingencies
|
10
|
|||||||||||
STOCKHOLDERS EQUITY
|
||||||||||||
Preferred stock, $0.0001 par value; 25,000,000 shares authorized; 20,000 and 20,000 shares issued and outstanding as at September 30, 2023 and December 31, 2022, respectively
|
-
|
-
|
||||||||||
Common stock, $0.0001 par value; 500,000,000 authorized shares as at September 30, 2023 and December 31, 2022; 19,648,956 and 18,191,614 shares issued and outstanding as at
September 30, 2023 and December 31, 2022, respectively
|
2
|
2
|
||||||||||
Additional paid-in capital
|
11
|
589,870
|
583,691
|
|||||||||
Accumulated deficit
|
(372,024
|
)
|
(361,994
|
)
|
||||||||
Total Stockholders’ equity
|
217,848
|
221,699
|
||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
|
455,677
|
513,600
|
2023
|
2022
|
|||||||||||
Vessel revenue, net
|
12
|
68,135
|
95,476
|
|||||||||
Fees from related parties
|
3
|
2,671
|
1,017
|
|||||||||
Revenue, net
|
70,806
|
96,493
|
||||||||||
Expenses:
|
||||||||||||
Voyage expenses
|
|
(2,078
|
)
|
(3,513
|
)
|
|||||||
Vessel operating expenses
|
(31,371
|
)
|
(32,642
|
)
|
||||||||
Management fees
|
(535
|
)
|
(1,077
|
)
|
||||||||
General and administration expenses
|
(16,785
|
)
|
(13,044
|
)
|
||||||||
Amortization of deferred dry-docking costs
|
(3,158
|
)
|
(3,483
|
)
|
||||||||
Depreciation
|
(18,132
|
)
|
(17,313
|
)
|
||||||||
Gain on sale of vessels, net
|
6
|
8,094
|
-
|
|||||||||
Gain on forward freight agreements, net
|
(148
|
)
|
(407
|
)
|
||||||||
Operating income
|
6,693
|
25,014
|
||||||||||
Other income / (expenses), net:
|
||||||||||||
Interest and finance costs
|
13
|
(15,528
|
)
|
(10,282
|
)
|
|||||||
Loss on extinguishment of debt
|
7
|
(540
|
)
|
(1,285
|
)
|
|||||||
Gain on spin-off of United Maritime Corporation
|
-
|
2,800
|
||||||||||
Interest and other income
|
958
|
336
|
||||||||||
Foreign currency exchange (losses)/ gain, net
|
(130
|
)
|
135
|
|||||||||
Total other expenses, net
|
(15,240
|
)
|
(8,296
|
)
|
||||||||
Net (loss) / income before taxes
|
(8,547
|
)
|
16,718
|
|||||||||
Income taxes
|
-
|
28
|
||||||||||
Net (loss) / income
|
(8,547
|
)
|
16,746
|
|||||||||
Dividends to non-vested participating securities
|
14
|
(114
|
)
|
-
|
||||||||
Net (loss) / income attributable to common shareholders
|
(8,661
|
)
|
16,746
|
|||||||||
Net (loss) / income per common share, basic
|
14
|
(0.48
|
)
|
0.96
|
||||||||
Net (loss) / income per common share, diluted
|
14
|
(0.48
|
)
|
0.94
|
||||||||
Weighted average common shares outstanding, basic
|
14
|
18,177,002
|
17,353,902
|
|||||||||
Weighted average common shares outstanding, diluted
|
14
|
18,177,002
|
17,842,518
|
Preferred stock Series B
|
Common stock
|
Additional
paid-in
|
Accumulated
|
Total
stockholders’
|
|||||||||||||||||||||
# of Shares
|
Par Value
|
# of Shares
|
Par Value
|
capital
|
deficit
|
equity
|
|||||||||||||||||||
Balance, December 31, 2021
|
20,000
|
- |
17,298,614
|
2
|
597,723
|
(353,249
|
)
|
244,476
|
|||||||||||||||||
Issuance of common stock (including the exercise of warrants)
|
-
|
- |
10,000
|
-
|
70
|
-
|
70
|
||||||||||||||||||
Stock based compensation
|
-
|
- |
883,000
|
-
|
6,762
|
-
|
6,762
|
||||||||||||||||||
Dividends ($1.00 per share)
|
-
|
- |
-
|
-
|
-
|
(17,924
|
)
|
(17,924
|
)
|
||||||||||||||||
Cumulative adjustment due to adoption of ASU 2020-06
|
-
|
- |
-
|
-
|
(21,165
|
)
|
10,216
|
(10,949
|
)
|
||||||||||||||||
United Maritime Corporation spin-off
|
-
|
- |
-
|
-
|
-
|
(13,728
|
)
|
(13,728
|
)
|
||||||||||||||||
Net income
|
-
|
- |
-
|
-
|
-
|
16,746
|
16,746
|
||||||||||||||||||
Balance, September 30, 2022
|
20,000
|
18,191,614
|
2
|
583,390
|
(357,939
|
)
|
225,453
|
Preferred stock Series B
|
Common stock
|
Additional
paid-in
|
Accumulated
|
Total
stockholders’
|
||||||||||||||||||||||
# of Shares
|
Par Value
|
# of Shares
|
Par Value
|
capital
|
deficit
|
equity
|
||||||||||||||||||||
Balance, December 31, 2022
|
20,000
|
-
|
18,191,614
|
2
|
583,691
|
(361,994
|
)
|
221,699
|
||||||||||||||||||
Stock based compensation (Note 15)
|
-
|
-
|
1,823,800
|
-
|
8,601
|
-
|
8,601
|
|||||||||||||||||||
Dividends ($0.075 per share) (Note 11)
|
-
|
-
|
-
|
-
|
-
|
(1,483
|
)
|
(1,483
|
)
|
|||||||||||||||||
Warrants buyback (Note 11)
|
-
|
-
|
-
|
-
|
(816
|
)
|
-
|
(816
|
)
|
|||||||||||||||||
Share buyback (Note 11)
|
-
|
-
|
(362,161
|
)
|
-
|
(1,583
|
)
|
-
|
(1,583
|
)
|
||||||||||||||||
Redemption of fractional shares due to reverse stock split
|
-
|
-
|
(4,297
|
)
|
-
|
(23
|
)
|
-
|
(23
|
)
|
||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(8,547
|
)
|
(8,547
|
)
|
|||||||||||||||||
Balance, September 30, 2023
|
20,000
|
-
|
19,648,956
|
2
|
589,870
|
(372,024
|
)
|
217,848
|
2023
|
2022
|
|||||||
Net cash provided by operating activities
|
11,050
|
29,040
|
||||||
Cash flows from investing activities:
|
||||||||
Proceeds from sale of vessels
|
23,910
|
-
|
||||||
Finance lease prepayment
|
(3,500
|
)
|
-
|
|||||
Vessels acquisitions and improvements
|
(146
|
)
|
(38,565
|
)
|
||||
Other fixed assets, net
|
(176
|
)
|
(99
|
)
|
||||
Investment in Series C preferred shares
|
-
|
(10,139
|
)
|
|||||
Term deposits
|
-
|
1,500
|
||||||
Deposits assets, non-current
|
1,325
|
-
|
||||||
Net cash provided by/ (used in) investing activities
|
21,413
|
(47,303
|
)
|
|||||
Cash flows from financing activities:
|
||||||||
Net proceeds from issuance of common stock and warrants
|
-
|
70
|
||||||
Payments for repurchase of common stock
|
(1,583
|
)
|
-
|
|||||
Payments for repurchase of warrants
|
(808
|
)
|
-
|
|||||
Dividends paid
|
(5,539
|
)
|
(13,376
|
)
|
||||
Proceeds from long term debt and other financial liabilities
|
53,750
|
80,300
|
||||||
Repayments of long term debt and other financial liabilities
|
(79,374
|
)
|
(57,769
|
)
|
||||
Repayments of convertible notes
|
(8,000
|
)
|
(10,000
|
)
|
||||
Payments of fractional shares due to reverse stock split
|
(23
|
)
|
-
|
|||||
Payments of financing and stock issuance costs
|
(1,318
|
)
|
(1,022
|
)
|
||||
Net cash used in financing activities
|
(42,895
|
)
|
(1,797
|
)
|
||||
Net decrease in cash and cash equivalents and restricted cash
|
(10,432
|
)
|
(20,060
|
)
|
||||
Cash and cash equivalents and restricted cash at beginning of period
|
32,477
|
45,626
|
||||||
Cash and cash equivalents and restricted cash at end of period
|
22,045
|
25,566
|
||||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
||||||||
Cash paid during the period for:
|
||||||||
Interest paid
|
13,652
|
8,283
|
||||||
Noncash investing activities:
|
||||||||
Vessels acquisitions and improvements
|
-
|
2,765
|
||||||
Noncash financing activities:
|
||||||||
Dividends declared but not paid
|
491
|
4,548
|
1.
|
Basis of Presentation and General Information:
|
a.
|
Subsidiaries in Consolidation:
|
Company
|
Country of
Incorporation
|
Vessel name
|
Date of Delivery
|
Date of
Sale/Disposal
|
||||
Seanergy Management Corp. (1)(2)
|
Marshall Islands
|
N/A
|
N/A
|
N/A
|
||||
Seanergy Shipmanagement Corp. (1)(2)
|
Marshall Islands
|
N/A
|
N/A
|
N/A
|
||||
Emperor Holding Ltd. (1)
|
Marshall Islands
|
N/A
|
N/A
|
N/A
|
||||
Pembroke Chartering Services Limited (1)(3)(4)
|
Malta
|
N/A
|
N/A
|
N/A
|
||||
Sea Genius Shipping Co. (1)
|
Marshall Islands
|
Geniuship
|
October 13, 2015
|
N/A
|
||||
Premier Marine Co. (1)
|
Marshall Islands
|
Premiership
|
September 11, 2015
|
N/A
|
||||
Squire Ocean Navigation Co. (1)
|
Liberia
|
Squireship
|
November 10, 2015
|
N/A
|
||||
Lord Ocean Navigation Co. (1)(5)
|
Liberia
|
Lordship
|
November 30, 2016
|
April 28, 2023
|
||||
Champion Marine Co. (1)
|
Marshall Islands
|
Championship
|
November 7, 2018
|
N/A
|
||||
Fellow Shipping Co. (1)
|
Marshall Islands
|
Fellowship
|
November 22, 2018
|
N/A
|
||||
Friend Ocean Navigation Co. (1)
|
Liberia
|
Friendship
|
July 27, 2021
|
N/A
|
||||
World Shipping Co. (1)
|
Marshall Islands
|
Worldship
|
August 30, 2021
|
N/A
|
||||
Duke Shipping Co. (1)
|
Marshall Islands
|
Dukeship
|
November 26, 2021
|
N/A
|
||||
Partner Marine Co. (1)(5)
|
Marshall Islands
|
Partnership
|
March 9, 2022
|
N/A
|
||||
Honor Shipping Co. (1)
|
Marshall Islands
|
Honorship
|
June 27, 2022
|
N/A
|
||||
Paros Ocean Navigation Co. (1)
|
Liberia
|
Paroship
|
December 27, 2022
|
N/A
|
||||
Knight Ocean Navigation Co. (1)(5)
|
Liberia
|
Knightship
|
December 13, 2016
|
April 6, 2023
|
||||
Flag Marine Co. (1)(5)
|
Marshall Islands
|
Flagship
|
May 6, 2021
|
May 11, 2021
|
||||
Hellas Ocean Navigation Co. (1)(5)
|
Liberia
|
Hellasship
|
May 6, 2021
|
June 28, 2021
|
||||
Patriot Shipping Co. (1)(5)
|
Marshall Islands
|
Patriotship
|
June 1, 2021
|
June 28, 2021
|
||||
Good Ocean Navigation Co. (1)(Note 6)
|
Liberia
|
Goodship
|
August 7, 2020
|
February 10, 2023
|
||||
Traders Shipping Co. (1)(Note 6)
|
Marshall Islands
|
Tradership
|
June 9, 2021
|
February 28, 2023
|
||||
Gladiator Shipping Co. (1)(4)
|
Marshall Islands
|
Gladiatorship
|
September 29, 2015
|
October 11, 2018
|
||||
Leader Shipping Co. (1)(4)
|
Marshall Islands
|
Leadership
|
March 19, 2015
|
September 30, 2021
|
||||
Partner Shipping Co. Limited (1)(4)
|
Malta
|
Partnership
|
May 31, 2017
|
March 9, 2022
|
||||
Martinique International Corp. (1)(4)
|
British Virgin Islands
|
Bremen Max
|
September 11, 2008
|
March 7, 2014
|
||||
Harbour Business International Corp. (1)(4)
|
British Virgin Islands
|
Hamburg Max
|
September 25, 2008
|
March 10, 2014
|
||||
Titan Ocean Navigation Co. (1)
|
Liberia
|
Note 16
|
Note 16
|
N/A
|
(1)
|
Subsidiaries wholly owned
|
(2)
|
Management companies
|
(3)
|
Chartering services company
|
(4)
|
Dormant companies
|
(5)
|
Bareboat charterers
|
2.
|
Significant Accounting Policies:
|
3.
|
Transactions with Related Parties:
|
4.
|
Cash and Cash Equivalents and Restricted Cash:
|
September
30,
2023
|
December 31,
2022
|
|||||||
Cash and cash equivalents
|
16,495
|
26,027
|
||||||
Restricted cash
|
50
|
1,650
|
||||||
Restricted cash, non-current
|
5,500
|
4,800
|
||||||
Total
|
22,045
|
32,477
|
5.
|
Inventories:
|
September 30,
2023
|
December 31,
2022
|
|||||||
Bunkers
|
-
|
392
|
||||||
Lubricants
|
1,451
|
1,603
|
||||||
Total
|
1,451
|
1,995
|
6.
|
Vessels, Net:
|
September 30,
2023
|
December 31,
2022
|
|||||||
Cost:
|
||||||||
Beginning balance
|
511,516
|
488,049
|
||||||
- Additions
|
419
|
71,224
|
||||||
- Vessels contributed to United Maritime Corporation
|
-
|
(17,948
|
)
|
|||||
- Transfer to “Assets held for Sale”
|
-
|
(29,809
|
)
|
|||||
Ending balance
|
511,935
|
511,516
|
||||||
Accumulated depreciation:
|
||||||||
Beginning balance
|
(77,383
|
)
|
(61,987
|
)
|
||||
- Depreciation for the period
|
(18,009
|
)
|
(23,294
|
)
|
||||
- Vessels contributed to United Maritime Corporation
|
-
|
5,046
|
||||||
- Transfer to “Assets held for Sale”
|
-
|
2,852
|
||||||
Ending balance
|
(95,392
|
)
|
(77,383
|
)
|
||||
Net book value
|
416,543
|
434,133
|
7. |
Long-Term Debt and Other Financial Liabilities:
|
September 30,
2023
|
December 31,
2022
|
|||||||
Long-term debt and other financial liabilities
|
223,079
|
235,603
|
||||||
Less: Deferred financing costs
|
(2,858
|
)
|
(3,727
|
)
|
||||
Total
|
220,221
|
231,876
|
||||||
Less – current portion
|
(33,259
|
)
|
(35,051
|
)
|
||||
Long-term portion
|
186,962
|
196,825
|
||||||
Debt related to assets held for sale
|
-
|
13,100
|
||||||
Less: Deferred financing costs
|
-
|
(110
|
)
|
|||||
Total
|
-
|
12,990
|
||||||
Total debt net of deferred financing costs and debt discounts
|
220,221
|
244,866
|
• |
a minimum borrower’s liquidity;
|
• |
a minimum guarantor’s liquidity;
|
• |
a security coverage requirement; and
|
• |
a leverage ratio.
|
Twelve month periods ending September 30,
|
Amount
|
|||
2024
|
34,337
|
|||
2025
|
45,414
|
|||
2026
|
62,295
|
|||
2027
|
58,003
|
|||
Thereafter
|
23,030
|
|||
Total
|
223,079
|
8. |
Convertible Notes:
|
September 30,
2023
|
December 31,
2022
|
|||||||
Convertible notes
|
3,165
|
11,165
|
||||||
Less: Deferred financing costs
|
(3
|
)
|
(9
|
)
|
||||
Less: Change in fair value of conversion option
|
(86
|
)
|
(323
|
)
|
||||
Total
|
3,076
|
10,833
|
||||||
Less - current portion
|
(3,076
|
)
|
(10,833
|
)
|
||||
Long-term portion
|
-
|
-
|
9.
|
Financial Instruments:
|
(a)
|
Significant Risks and Uncertainties, including Business and Credit Concentration
|
(b)
|
Fair Value of Financial Instruments
|
a. |
Cash and cash equivalents, restricted cash, accounts receivable trade, other current assets and trade accounts and other payables: the carrying amounts approximate fair value because of the short maturity of these
instruments. The carrying value approximates the fair market value for interest bearing cash classified as restricted cash, non-current.
|
b. |
Long-term debt and other financial liabilities: The carrying value of long-term debt and other financial liabilities with variable interest rates (obtained through Level 2 inputs of the fair value hierarchy)
approximates the fair market value as the long-term debt and other financial liabilities bear interest at floating interest rate. The fair market value of fixed interest long-term debt, with carrying value of $15,745, is estimated at
$14,817 using the prevailing market rates as of the period end. The fair value of the fixed interest long-term debt has been obtained through Level 2 inputs of the fair value hierarchy.
|
10. |
Commitments and Contingencies:
|
Twelve month periods ending September 30,
|
Amount
|
|||
2024
|
95,491
|
|||
2025
|
18,711
|
|||
2026
|
9,116
|
|||
Total
|
123,318
|
Twelve month periods ending September 30,
|
Amount
|
|||
2024
|
127
|
|||
2025
|
127
|
|||
2026
|
127
|
|||
2027
|
127
|
|||
Thereafter
|
64
|
|||
Total
|
572
|
|||
Less: imputed interest
|
(158
|
)
|
||
Present value of lease liabilities
|
414
|
|||
Lease liabilities, current
|
102
|
|||
Lease liabilities, non-current
|
312
|
|||
Present value of lease liabilities
|
414
|
11. |
Capital Structure:
|
(a) |
Common Stock
|
i) |
NASDAQ Notification
|
ii) |
Dividends
|
iii) |
Buybacks
|
(b) |
Warrants
|
Warrant
|
Shares to be issued
upon exercise of
remaining warrants
|
|||
Class D
|
27,304
|
|||
Class E
|
449,459
|
|||
Total
|
476,763
|
12. |
Vessel Revenue:
|
September 30,
|
||||||||
2023
|
2022
|
|||||||
Vessel revenues from time charters, net of commissions
|
68,135
|
95,476
|
||||||
Total
|
68,135
|
95,476
|
Customer
|
2023
|
2022
|
||||||
A
|
27
|
%
|
22
|
%
|
||||
B
|
26
|
%
|
16
|
%
|
||||
C
|
17
|
%
|
19
|
%
|
||||
D
|
14
|
%
|
16
|
%
|
||||
Total
|
84
|
%
|
73
|
%
|
13. |
Interest and Finance Costs:
|
September 30,
|
||||||||
2023
|
2022
|
|||||||
Interest on long-term debt and other financial liabilities
|
13,384
|
7,686
|
||||||
Convertible notes interest expense
|
134
|
537
|
||||||
Amortization of deferred finance costs and debt discounts
|
1,778
|
1,696
|
||||||
Amortization of deferred finance costs and debt discounts (shares issued to third party - non-cash)
|
83
|
220
|
||||||
Other
|
149
|
143
|
||||||
Total
|
15,528
|
10,282
|
14. |
(Loss) / Earnings per Share:
|
September 30,
|
||||||||
2023
|
2022
|
|||||||
Net (loss) / income
|
$
|
(8,547
|
)
|
$
|
16,746
|
|||
Less: Dividends to non-vested participating securities
|
(114
|
)
|
-
|
|||||
Net (loss) / income attributable to common shareholders, basic
|
$
|
(8,661
|
)
|
$
|
16,746
|
|||
Net (loss) / income attributable to common shareholders, diluted
|
$
|
(8,661
|
)
|
$
|
16,746
|
|||
Weighted average common shares outstanding, basic
|
18,177,002
|
17,353,902
|
||||||
Effect of dilutive securities:
|
||||||||
Warrants
|
-
|
205,209
|
||||||
Non-vested participating securities
|
-
|
283,407
|
||||||
Weighted average common shares outstanding, diluted
|
18,177,002
|
17,842,518
|
||||||
Net (loss) / income per share attributable to common shareholders, basic
|
$
|
(0.48
|
)
|
$
|
0.96
|
|||
Net (loss) / income per share attributable to common shareholders, diluted
|
$
|
(0.48
|
)
|
$
|
0.94
|
15. |
Equity Incentive Plan:
|
16. |
Subsequent Events
|