Page
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F-2
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F-3
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F-4
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F-5
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F-6
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December 31,
|
June 30,
|
||||||||||
ASSETS
|
Note
|
2022
|
2023
|
|||||||||
CURRENT ASSETS:
|
||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||||||
|
3
|
|
|
|||||||||
Accounts receivable trade, net
|
|
|
||||||||||
Inventories
|
|
|
||||||||||
Assets held for sale |
5 | |||||||||||
Prepaid expenses and other assets
|
|
|
||||||||||
Total current assets
|
|
|
||||||||||
|
||||||||||||
NON-CURRENT ASSETS:
|
||||||||||||
Vessels, net
|
3,5
|
|
|
|||||||||
Advances for vessel acquisition |
5 |
|||||||||||
Restricted cash
|
6
|
|
|
|||||||||
|
3
|
|
|
|||||||||
Prepaid expenses and other assets, non-current
|
|
|
||||||||||
Deferred charges, net
|
4
|
|
|
|||||||||
Total non-current assets
|
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
||||||||
|
||||||||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
|
||||||||||||
CURRENT LIABILITIES:
|
||||||||||||
Current portion of long-term debt, net
|
6
|
|
|
|||||||||
Accounts payable
|
|
|
||||||||||
Deferred revenue
|
|
|
||||||||||
Accrued liabilities
|
|
|
||||||||||
Total current liabilities
|
|
|
||||||||||
|
||||||||||||
NON-CURRENT LIABILITIES:
|
||||||||||||
Long-term debt, net
|
6
|
|
|
|||||||||
Total non-current liabilities
|
|
|
||||||||||
|
||||||||||||
Commitments and contingencies
|
10
|
|||||||||||
|
||||||||||||
MEZZANINE EQUITY:
|
||||||||||||
|
8
|
|
|
|||||||||
Total mezzanine equity
|
|
|
||||||||||
|
||||||||||||
SHAREHOLDERS’ EQUITY:
|
||||||||||||
Former Net Parent Company investment
|
|
|
||||||||||
Common shares, $
|
7
|
|
|
|||||||||
Preferred shares, $
|
7
|
|
|
|||||||||
Additional paid-in capital
|
|
|
||||||||||
(Accumulated deficit)/Retained Earnings
|
(
|
)
|
|
|||||||||
Total shareholders’ equity
|
|
|
||||||||||
Total liabilities, mezzanine equity and shareholders’ equity
|
$
|
|
$
|
|
|
Six months Ended
June 30,
|
Six months Ended
June 30,
|
||||||||||
|
Note
|
2022
|
2023
|
|||||||||
REVENUES:
|
||||||||||||
Time charter revenues
|
12
|
$
|
|
$
|
|
|||||||
Voyage charter revenues
|
12
|
|
|
|||||||||
Pool revenues
|
12
|
|
|
|||||||||
Total vessel revenues
|
|
|
||||||||||
|
||||||||||||
EXPENSES:
|
||||||||||||
Voyage expenses (including $
|
3,13
|
(
|
)
|
(
|
)
|
|||||||
Vessel operating expenses
|
13
|
(
|
)
|
(
|
)
|
|||||||
Management fees to related parties
|
3
|
(
|
)
|
(
|
)
|
|||||||
Recovery of provision for doubtful accounts
|
|
|
||||||||||
Depreciation and amortization
|
4,5
|
(
|
)
|
(
|
)
|
|||||||
(including $
|
3
|
(
|
)
|
(
|
)
|
|||||||
Gain on sale of vessels |
3,5 |
|||||||||||
Total expenses
|
$
|
(
|
)
|
$
|
|
|||||||
|
||||||||||||
Operating income
|
$
|
|
$
|
|
||||||||
|
||||||||||||
OTHER (EXPENSES)/INCOME:
|
||||||||||||
Interest and finance costs
|
14
|
(
|
)
|
(
|
)
|
|||||||
Interest income
|
|
|
||||||||||
Foreign exchange losses
|
(
|
)
|
(
|
)
|
||||||||
Total other (expenses)/ income, net
|
$
|
(
|
)
|
$
|
|
|||||||
|
||||||||||||
Net income, before taxes
|
$
|
|
$
|
|
||||||||
Income taxes
|
(
|
)
|
(
|
)
|
||||||||
Net income and comprehensive income
|
$
|
|
$
|
|
||||||||
Dividend on Series A Preferred Shares
|
3,11
|
|
(
|
)
|
||||||||
Deemed dividend on Series A Preferred Shares
|
8
|
|
(
|
)
|
||||||||
Net income attributable to common shareholders
|
$
|
|
$
|
|
||||||||
Earnings per common share, basic
|
11
|
|
|
|||||||||
Earnings per common share, diluted
|
11
|
|
|
|||||||||
Weighted average number of common shares, Basic
|
11
|
|
|
|||||||||
Weighted average number of common shares, Diluted
|
11
|
|
|
|
Mezzanine equity
|
|||||||||||||||||||||||||||||||||||||||
|
# of
Series B
Preferred
Shares
|
Par
Value of
Preferred
Series B shares
|
# of
Common
shares
|
Par
Value of
Common
Shares
|
Additional
Paid-in
capital
|
Former
Parent
Company
Investment
|
(Accumulated
deficit)/
Retained
Earnings
|
Total
Shareholders’
Equity
|
# of
Series A Preferred
Shares
|
Mezzanine
Equity
|
||||||||||||||||||||||||||||||
Balance, December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Net income and comprehensive income
|
—
|
|
—
|
|
|
|
|
|
—
|
—
|
||||||||||||||||||||||||||||||
Net decrease in former Parent Company Investment
|
—
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
—
|
—
|
||||||||||||||||||||||||||||
Balance, June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||||||||||||||
Net income and comprehensive income
|
—
|
|
—
|
|
|
|
|
|
—
|
—
|
||||||||||||||||||||||||||||||
Net increase in Former Parent Company investment
|
—
|
|
—
|
|
|
|
|
|
—
|
—
|
||||||||||||||||||||||||||||||
Capitalization at spin off, including Issuance of capital and preferred stock, net of costs (Note 8)
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
||||||||||||||||||||||||||||
Issuance of common shares pursuant to private placement
|
— | — | ||||||||||||||||||||||||||||||||||||||
Dividend on Series A preferred shares
|
—
|
|
—
|
—
|
|
|
(
|
)
|
(
|
)
|
—
|
—
|
||||||||||||||||||||||||||||
Deemed dividend on Series A preferred shares (Note 8)
|
—
|
|
—
|
—
|
|
|
(
|
)
|
(
|
)
|
—
|
|
||||||||||||||||||||||||||||
Balance, June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||
|
Note
|
2022
|
2023
|
|||||||||
Cash Flows (used in)/provided by Operating Activities:
|
||||||||||||
Net income
|
$
|
|
$
|
|
||||||||
Adjustments to reconcile net income to net cash (used in)/provided by Operating activities:
|
||||||||||||
Depreciation and amortization
|
4,5
|
|
|
|||||||||
Amortization of deferred finance charges
|
14
|
|
|
|||||||||
Gain on sale of vessels |
5 | ( |
) | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable trade, net
|
(
|
)
|
|
|||||||||
Inventories
|
(
|
)
|
(
|
)
|
||||||||
Due from/to related parties
|
|
(
|
)
|
|||||||||
Prepaid expenses and other assets
|
(
|
)
|
|
|||||||||
Other deferred charges
|
(
|
)
|
|
|||||||||
Accounts payable
|
|
|
||||||||||
Accrued liabilities
|
|
|
||||||||||
Deferred revenue
|
(
|
)
|
|
|||||||||
Dry-dock costs paid
|
(
|
)
|
(
|
)
|
||||||||
Net Cash provided by Operating Activities
|
|
|
||||||||||
|
||||||||||||
Cash flow (used in)/provided by Investing Activities:
|
||||||||||||
Vessel acquisitions and other vessel improvements
|
5
|
(
|
)
|
(
|
)
|
|||||||
Advances for vessel acquisition
|
( |
) | ||||||||||
Net proceeds from sale of vessel
|
||||||||||||
Net cash (used in)/provided by Investing Activities
|
(
|
)
|
|
|||||||||
|
||||||||||||
Cash flows (used in)/provided by Financing Activities:
|
||||||||||||
Net (decrease)/ increase in Former Parent Company Investment
|
(
|
)
|
|
|||||||||
Issuance of Series B Preferred shares
|
7
|
|
|
|||||||||
Issuance of common shares pursuant to private placement |
||||||||||||
Payment of Dividend Preferred Shares A |
( |
) | ||||||||||
Repayment of long-term debt
|
6
|
(
|
)
|
(
|
)
|
|||||||
Payments related to Spin-Off
|
3
|
|
(
|
)
|
||||||||
Net cash (used in)/provided by Financing Activities
|
(
|
)
|
|
|||||||||
|
||||||||||||
Net (decrease)/ increase in cash, cash equivalents, and restricted cash
|
(
|
)
|
|
|||||||||
Cash, cash equivalents and restricted cash at the beginning of the period
|
|
|
||||||||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
|
|
|||||||||
|
||||||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||||||
Restricted cash, non-current
|
|
|
||||||||||
Cash, cash equivalents, and restricted Cash
|
|
|
1. |
Basis of Presentation and General information
|
1. |
Basis of Presentation and General information: (continued)
|
Company
|
Country of
incorporation
|
Date of
incorporation
|
Vessel Name
|
DWT
|
Year
Built
|
Delivery date
to Vessel
owning company
|
|||||||
1
|
Gamora Shipping Co. (“Gamora”)
|
|
|
|
|
|
|
||||||
2
|
Starlord Shipping Co. (“Starlord”)
|
|
|
|
|
|
|
||||||
3
|
Hawkeye Shipping Co. (“Hawkeye”)
|
|
|
|
|
|
|
||||||
4
|
Vision Shipping Co. (“Vision”)
|
|
|
|
|
|
|
||||||
5
|
Colossus Shipping Co. (“Colossus”)
|
|
|
|
|
|
|
||||||
6
|
Xavier Shipping Co. (“Xavier”)
|
|
|
|
|
|
|
||||||
7 |
Zatanna Shipping Co. (“Zatanna”)
|
||||||||||||
8 |
Starfire Shipping Co. (“Starfire”)
|
|
1
|
Toro RBX Corp. (“Toro RBX”) (1)
|
2
|
Elektra Shipping Co. (“Elektra”) (2)
|
3 |
Rocket Shipping Co. (“Rocket”) (3) |
4 |
Drax Shipping Co. (“Drax”) (4) |
(1) |
Incorporated under the laws of the
|
(2) |
Incorporated under the laws of the
|
(3) |
Incorporated under the laws of the
|
(4) |
Incorporated under the laws of the
|
1. |
Basis of Presentation and General information: (continued)
|
1
|
Cyborg Shipping Co. (“Cyborg”) (1)
|
2
|
Nightwing Shipping Co. (“Nightwing”) (2)
|
(1) |
Incorporated under the laws of the
|
(2) |
Incorporated under the laws of the
|
2. |
Significant Accounting Policies and Recent Accounting Pronouncements:
|
2. |
Significant Accounting Policies and Recent Accounting
Pronouncements: (continued)
|
3. |
Transactions with Related Parties:
|
|
Six months ended
June 30,
|
Six months ended
June 30,
|
||||||
|
2022
|
2023
|
||||||
Management fees-related parties
|
||||||||
Management fees – Pavimar (b)
|
$
|
|
$
|
|
||||
Management fees – Castor Ships (a)
|
|
|
||||||
|
||||||||
Included in Voyage expenses
|
||||||||
Charter hire commissions – Castor Ships (a)
|
$
|
|
$
|
|
||||
|
||||||||
Included in General and administrative expenses
|
||||||||
Administration fees – Castor Ships (a)
|
$
|
|
$
|
|
||||
Included in Gain on sale of vessels | ||||||||
Sale & purchase commission – Castor Ships (a) | $ | $ | ||||||
Included in Vessels’ cost | ||||||||
Sale & purchase commission – Castor Ships (a) | $ | $ |
3.
|
Transactions with Related Parties: (continued)
|
December 31,
2022
|
June 30,
2023
|
|||||||
Assets:
|
||||||||
Due from Castor Ships (a) – current |
$ | $ | ||||||
Due from Castor Ships (a) – non-current
|
|
|
||||||
Liabilities:
|
||||||||
Due to Former Parent Company (d) – current
|
$
|
|
$
|
|
(a)
|
Castor Ships:
|
3.
|
Transactions with Related Parties: (continued)
|
(b) |
Pavimar:
|
3.
|
Transactions with Related Parties: (continued)
|
(c) |
Pool Agreement:
|
(d) |
Former Parent Company:
|
4. |
Deferred Charges, net:
|
|
Dry-docking costs
|
|||
Balance December 31, 2022
|
$
|
|
||
Additions
|
|
|||
Amortization
|
(
|
)
|
||
Transfer to Assets held for sale (Note 5(c)) | ( |
) | ||
Balance June 30, 2023
|
$
|
|
5. |
Vessels, net/Advances for vessel acquisition/Assets held for sale:
|
|
Vessel Cost
|
Accumulated
depreciation
|
Net Book Value
|
|||||||||
Balance December 31, 2022
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Acquisitions, improvements, and other vessel costs
|
|
—
|
|
|||||||||
Vessel disposals
|
(
|
)
|
|
(
|
)
|
|||||||
Transfer to Assets held for sale (c)
|
(
|
)
|
|
(
|
)
|
|||||||
Period depreciation
|
—
|
(
|
)
|
(
|
)
|
|||||||
Balance June 30, 2023
|
$
|
|
$
|
(
|
)
|
$
|
|
5. |
Vessels, net/Advances for vessel acquisition/Assets held for sale: (continued)
|
Advances for vessel acquisition
|
||||
Balance December 31, 2022
|
$
|
|
||
Advances for vessel acquisition and other vessel pre-delivery costs
|
|
|||
Balance June 30, 2023
|
|
6. |
Long-Term Debt:
|
Loan facilities
|
Borrowers
|
As of December 31,
2022
|
As of June 30,
2023
|
|||||||
$
|
|
|
|
|||||||
Total long-term debt
|
$
|
|
$
|
|
||||||
Less: Deferred financing costs
|
(
|
)
|
(
|
)
|
||||||
Total long-term debt, net of deferred finance costs
|
|
|
||||||||
Presented:
|
||||||||||
Current portion of long-term debt
|
$
|
|
$
|
|
||||||
Less: Current portion of deferred finance costs
|
(
|
)
|
(
|
)
|
||||||
Current portion of long-term debt, net of deferred finance costs
|
$
|
|
$
|
|
||||||
|
||||||||||
Non-Current portion of long-term debt
|
|
|
|
|||||||
Less: Non-Current portion of deferred finance costs
|
|
(
|
)
|
(
|
)
|
|||||
Non-Current portion of long-term debt, net of deferred finance costs
|
|
$
|
|
$
|
|
Twelve-month period ending June 30,
|
Amount
|
|||
2024
|
$
|
|
||
2025
|
|
|||
Total long-term debt
|
$
|
|
7. |
Equity Capital Structure:
|
8.
|
Mezzanine equity:
|
8.
|
Mezzanine equity: (continued)
|
9. |
Financial Instruments and Fair Value Disclosures:
|
|
•
|
Cash and cash equivalents, accounts receivable trade, net, amounts due from/to related party/(ies) and accounts payable: The carrying
values reported in the unaudited condensed consolidated balance sheets for those financial instruments are reasonable estimates of their fair values due to their short-term maturity nature. Cash and cash equivalents are considered
Level 1 items as they represent liquid assets with short term maturities. The carrying value approximates the fair market value for interest bearing cash classified as restricted cash, non-current and is considered Level 1 item of
the fair value hierarchy.
|
|
•
|
Long-term debt: The secured credit facility discussed in Note 6, has a recorded value which is a reasonable estimate of its
fair value due to its variable interest rate and is thus considered Level 2 item in accordance with the fair value hierarchy as SOFR rates are observable at commonly quoted intervals for the full terms of the loans.
|
10. |
Commitments and Contingencies:
|
Twelve-month period ending June 30,
|
Amount
|
|||
2024
|
$
|
|
||
Total
|
$
|
|
|
11.
|
Earnings Per Common Share:
|
Six months ended
June 30,
|
Six months ended
June 30,
|
|||||||
2022
|
2023
|
|||||||
Net income and comprehensive income
|
$
|
|
$
|
|
||||
Dividend on Series A Preferred Shares
|
|
(
|
)
|
|||||
Deemed dividend on Series A Preferred
Shares
|
|
(
|
)
|
|||||
Net income attributable to common
shareholders
|
$
|
|
$
|
|
||||
|
||||||||
Weighted average number of common shares
outstanding, basic
|
|
|
||||||
Effect of dilutive shares
|
|
|
||||||
Weighted average number of common shares
outstanding, diluted
|
|
|
||||||
Earnings per common share, basic
|
$
|
|
$
|
|
||||
Earnings per common share, diluted
|
$
|
|
$
|
|
12. |
Vessel Revenues:
|
|
Six months ended
June 30,
|
Six months ended
June 30,
|
||||||
2022
|
2023
|
|||||||
Time charter revenues
|
|
|
||||||
Voyage charter revenues
|
|
|
||||||
Pool revenues
|
|
|
||||||
Total Vessel Revenues
|
$
|
|
$
|
|
13. |
Vessel Operating and Voyage Expenses:
|
|
Six months ended
June 30,
|
Six months ended
June 30,
|
||||||
Voyage expenses
|
2022
|
2023
|
||||||
Brokerage commissions
|
|
|
||||||
Brokerage commissions- related party
|
|
|
||||||
Port & other expenses
|
|
|
||||||
Bunkers consumption
|
|
|
||||||
Gain on bunkers
|
(
|
)
|
(
|
)
|
||||
Total Voyage expenses
|
$
|
|
$
|
|
|
Six months ended
June 30,
|
Six months ended
June 30,
|
||||||
Vessel Operating Expenses
|
2022
|
2023
|
||||||
Crew & crew related costs
|
|
|
||||||
Repairs & maintenance, spares, stores, classification, chemicals & gases, paints, victualling
|
|
|
||||||
Lubricants
|
|
|
||||||
Insurance
|
|
|
||||||
Tonnage taxes
|
|
|
||||||
Other
|
|
|
||||||
Total Vessel operating expenses
|
$
|
|
$
|
|
14. |
Interest and Finance Costs:
|
Six months ended
June 30,
|
Six months ended
June 30,
|
|||||||
2022
|
2023
|
|||||||
Interest on long-term debt
|
$
|
|
$
|
|
||||
Amortization of deferred finance charges
|
|
|
||||||
Other finance charges
|
|
|
||||||
Total
|
$
|
|
$
|
|
15. |
Segment Information:
|
15.
|
Segment Information: (continued)
|
Six months ended June 30, 2022 | Six months ended June 30, 2023 | |||||||||||||||||||||||||||
|
Aframax/LR2
tanker segment
|
Handysize
tanker
segment
|
Total
|
Aframax/LR2
tanker segment
|
Handysize
tanker
segment
|
LPG carrier
segment
|
Total
|
|||||||||||||||||||||
- Time charter revenues
|
$
|
|
$
|
|
$
|
|
$ |
|
$
|
|
$ |
|
||||||||||||||||
- Voyage charter revenues
|
|
|
|
|
|
|
||||||||||||||||||||||
- Pool revenues
|
|
|
|
|
|
|
||||||||||||||||||||||
Total vessel revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||||||
Voyage expenses (including charges from related parties)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
( |
) |
(
|
)
|
||||||||||||||
Vessel operating expenses
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
( |
) |
(
|
)
|
||||||||||||||
Management fees to related parties
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
( |
) |
(
|
)
|
||||||||||||||
Recovery of Provision for doubtful accounts
|
|
|
|
|
|
|
||||||||||||||||||||||
Depreciation and Amortization
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
( |
) |
(
|
)
|
||||||||||||||
Gain on sale of vessels |
||||||||||||||||||||||||||||
Segments operating income/(loss)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
( |
) |
$
|
|
|||||||||||||
Interest and finance costs
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Interest income
|
|
|
||||||||||||||||||||||||||
Foreign exchange losses | ( |
) | ( |
) | ||||||||||||||||||||||||
Less: Unallocated corporate general and administrative expenses (including related parties)
|
( |
) | ( |
) | ||||||||||||||||||||||||
Net income and comprehensive income, before taxes
|
$ | $ |
As of December 31,
2022
|
As of June 30,
2023
|
|||||||
Aframax/LR2 tanker segment
|
$
|
|
$
|
|
||||
Handysize tanker segment
|
|
|
||||||
LPG carrier segment |
||||||||
Cash and cash equivalents(1)
|
(
|
)
|
|
|||||
Prepaid expenses and other assets(1)
|
|
(
|
)
|
|||||
Total assets
|
$
|
|
$
|
|
(1) |
|
16. |
Subsequent Events:
|