☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
CASTOR MARITIME INC. | ||
(Exact name of Registrant as specified in its charter) | ||
(Translation of | ||
Republic of the Marshall Islands | ||
(Jurisdiction of incorporation or organization) | ||
223 Christodoulou Chatzipavlou Street | ||
Hawaii Royal Gardens | ||
3036 Limassol, Cyprus | ||
(Address of principal executive offices) | ||
Petros Panagiotidis, Chairman, Chief Executive Officer and Chief Financial Officer 223 Christodoulou Chatzipavlou Street, Hawaii Royal Gardens, 3036 Limassol, Phone number: + 357 25 357 767 Fax Number: +357 25 357 796 | ||
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Shares, $0.001 par value, including associated Share Purchase Rights under the Shareholder Protection Rights Agreement | CTRM | Nasdaq Capital Market | ||
☐ Yes | ☒ No |
☒ Yes | ☐ No |
☒ Yes | ☐ No |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Emerging Growth Company ☒ |
☒ | U.S. GAAP |
☐ | International Financial Reporting Standards as issued by the International Accounting Standards Board |
☐ | Other |
☐ | Item 17 |
☐ | Item 18 |
☐ Yes | ☒ No |
☐ Yes | ☐ No |
PAGE | ||
1 | ||
ITEM 1. | ||
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ITEM 2. | 1 | |
ITEM 3. | 1 | |
ITEM 4. | ||
ITEM 4A. | 55 | |
ITEM 5. | 55 | |
ITEM 6. | ||
ITEM 7. | ||
ITEM 8. | ||
ITEM 9. | ||
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ITEM 12. | ||
101 | ||
ITEM 13. | ||
ITEM 14. | ||
ITEM 15. | ||
ITEM 16. | 102 | |
ITEM 16A. | ||
ITEM 16B. | ||
ITEM 16C. | ||
ITEM 16D. | ||
ITEM 16E. | ||
ITEM 16F. | ||
ITEM 16G. | ||
ITEM 16H. | ||
ITEM 16I. | 104 | |
ITEM | ||
105 | ||
ITEM 17. | 105 | |
ITEM 18. | 105 | |
ITEM 19. | 105 |
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
In U.S. dollars, except for share data | Period from December 13, 2016 to September 30, 2017 | Year ended September 30, 2018 | Three-months ended December 31, 2018 | Year ended December 31, 2019 | Year ended December 31, 2020 | |||||||||||||||
SELECTED STATEMENT OF OPERATIONS DATA | ||||||||||||||||||||
Vessel revenues, net | 2,018,061 | 3,960,822 | 1,111,075 | 5,967,772 | 12,487,692 | |||||||||||||||
Voyage expenses – including related parties | (80,853 | ) | (37,373 | ) | (19,556 | ) | (261,179 | ) | (584,705 | ) | ||||||||||
Vessel operating expenses | (1,194,995 | ) | (1,727,770 | ) | (432,544 | ) | (2,802,991 | ) | (7,447,439 | ) | ||||||||||
General and administrative expenses | ||||||||||||||||||||
- Company administration expenses (including related party) | (58,467 | ) | (109,233 | ) | (22,954 | ) | (378,777 | ) | (1,130,953 | ) | ||||||||||
- Public registration costs | (35,973 | ) | (350,167 | ) | (161,116 | ) | (132,091 | ) | - | |||||||||||
Depreciation & amortization | (182,346 | ) | (637,611 | ) | (177,378 | ) | (897,171 | ) | (1,904,963 | ) | ||||||||||
Provision for doubtful debt | - | - | - | - | (37,103 | ) | ||||||||||||||
Management fees, related parties | (55,500 | ) | (111,480 | ) | (29,440 | ) | (212,300 | ) | (930,500 | ) | ||||||||||
Operating Income | $ | 409,927 | $ | 987,188 | $ | 268,087 | $ | 1,283,263 | $ | 452,029 | ||||||||||
Interest and finance costs – including related party | (532 | ) | (3,393 | ) | (519 | ) | (222,163 | ) | (2,189,577 | ) | ||||||||||
Interest income | - | 4,243 | 7,985 | 31,589 | 34,976 | |||||||||||||||
Gain on derivative financial instruments | 475,530 | - | - | - | - | |||||||||||||||
Foreign exchange (losses)/gains | (7,021 | ) | (8,539 | ) | 89 | (4,540 | ) | (29,321 | ) | |||||||||||
Other, net | 740 | 1,439 | 800 | - | - | |||||||||||||||
Total other income/(expenses), net | 468,717 | (6,250 | ) | 8,355 | (195,114 | ) | (2,183,922 | ) | ||||||||||||
US Source Income Taxes | - | - | - | - | (21,640 | ) | ||||||||||||||
Net income/(loss) | $ | 878,644 | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||||
EARNINGS/(LOSS) PER COMMON SHARE, basic & diluted | $ | 0.35 | $ | (0.28 | ) | $ | (0.30 | ) | $ | 0.31 | $ | (0.03 | ) | |||||||
Weighted average number of common shares outstanding, basic and diluted | 2,400,000 | 2,400,000 | 2,400,000 | 2,662,383 | 67,735,195 | |||||||||||||||
CASH FLOW DATA: | ||||||||||||||||||||
Net Cash Provided by/ (Used in) Operating Activities | $ | 770,749 | $ | 902,706 | $ | 148,106 | $ | 2,311,962 | $ | (2,343,809 | ) | |||||||||
Net Cash Used in Investing Activities | (7,549,281 | ) | - | - | (17,227,436 | ) | (35,472,173 | ) | ||||||||||||
Net Cash Provided by Financing Activities | 7,615,000 | - | - | 18,087,133 | 42,183,946 | |||||||||||||||
SELECTED BALANCE SHEET DATA (as of period/year): | September 30, 2017 | September 30, 2018 | December 31, 2018 | December 31, 2019 | December 31, 2020 | |||||||||||||||
Total current assets | $ | 1,350,983 | $ | 2,110,000 | $ | 2,847,417 | $ | 6,220,897 | $ | 13,564,154 | ||||||||||
Vessel(s), net | 7,366,935 | 7,070,404 | 6,995,350 | 23,700,029 | 58,045,628 | |||||||||||||||
Total assets | 8,717,918 | 9,623,798 | 10,183,837 | 30,420,926 | 74,371,355 | |||||||||||||||
Total current liabilities | 224,274 | 149,216 | 432,813 | 2,982,750 | 10,903,907 | |||||||||||||||
Total long-term debt, including current portion and related party debt, net of unamortized deferred financing fees | - | - | - | 15,757,060 | 18,185,866 | |||||||||||||||
Common stock | 2,400 | 2,400 | 2,400 | 3,318 | 131,212 | |||||||||||||||
Total shareholders' equity | 8,493,644 | 9,474,582 | 9,751,024 | 13,204,011 | 52,383,619 | |||||||||||||||
Shares issued and outstanding | 2,400,000 | 2,400,000 | 2,400,000 | 3,318,112 | 131,212,376 | |||||||||||||||
A. | [RESERVED] |
FLEET PERFORMANCE DATA: | Period from December 13, 2016 to September 30, 2017 | Year ended September 30, 2018 | Three-months ended December 31, 2018 | Year ended December 31, 2019 | Year ended December 31, 2020 | |||||||||||||||
Number of vessels at the end of the year | 1 | 1 | 1 | 3 | 6 | |||||||||||||||
Available days (1) | 216 | 336 | 92 | 545 | 1,219 | |||||||||||||||
Ownership days (2) | 222 | 365 | 92 | 556 | 1,405 | |||||||||||||||
Fleet utilization (3) | 97 | % | 92 | % | 100 | % | 98 | % | 87 | % | ||||||||||
OTHER OPERATIONAL METRICS: | ||||||||||||||||||||
Daily time charter equivalent (or TCE) (4) | $ | 8,969 | $ | 11,677 | $ | 11,864 | $ | 10,471 | $ | 9,765 | ||||||||||
EBITDA (4) | $ | 1,061,522 | $ | 1,617,699 | $ | 446,354 | $ | 2,175,894 | $ | 2,327,671 |
(In U.S. dollars, except for Available days) | For the period ended September 30, 2017 | Year ended September 30, 2018 | Three Months Ended December 31, 2018 | Year ended December 31, 2019 | Year ended December 31, 2020 | |||||||||||||||
Vessel revenues, net | $ | 2,018,061 | $ | 3,960,822 | $ | 1,111,075 | $ | 5,967,772 | $ | 12,487,692 | ||||||||||
Voyage expenses | (80,853 | ) | (37,373 | ) | (19,556 | ) | (261,179 | ) | (584,705 | ) | ||||||||||
Time charter equivalent revenues | 1,937,208 | 3,923,449 | 1,091,519 | 5,706, 593 | 11,902,987 | |||||||||||||||
Available days | 216 | 336 | 92 | 545 | 1,219 | |||||||||||||||
Time charter equivalent (TCE) rate | $ | 8,969 | $ | 11,677 | $ | 11,864 | $ | 10,471 | $ | 9,765 |
Reconciliation of Net Income/(Loss) to EBITDA | ||||||||||||||||||||
Period ended September 30, | Year ended September 30, | Three Months Ended December 31, | Year ended December 31, | Year ended December 31, 2020 | ||||||||||||||||
(In U.S. Dollars) | 2017 | 2018 | 2018 | 2019 | 2020 | |||||||||||||||
Net Income/(Loss) | $ | 878,644 | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||||
Depreciation and amortization | 182,346 | 637,611 | 177,378 | 897,171 | 1,904,963 | |||||||||||||||
Interest and finance costs, net | 532 | (850 | ) | (7,466 | ) | 190,574 | 2,154,601 | |||||||||||||
US Source Income Taxes | - | - | - | - | 21,640 | |||||||||||||||
EBITDA | $ | 1,061,522 | $ | 1,617,699 | $ | 446,354 | $ | 2,175,894 | $ | 2,327,671 |
B. |
C. |
D. |
• | A decline in the market values of our vessels could limit the amount of funds that we can borrow, cause us to breach certain financial covenants in our current or future credit facilities and/or result in impairment charges or losses on sale. |
• | We have limited the fields in which we focus our operations and this may have an adverse effect on our business, financial condition and/or operating results. |
• | We may be unable to achieve some or all of the benefits that we expect to achieve from the spin-off of our tanker business. |
(i) | maintaining a certain minimum level of cash on pledged deposit accounts with the borrowers; |
(ii) | maintaining a certain minimum value ratio at the borrowers’ level, which is the ratio of the aggregate market value of the mortgaged vessels plus the value of any additional security and value of the pledged deposit and/or the value of dry dock reserve accounts to the aggregate principal amounts due under the facilities; |
(iii) | maintaining a dry dock reserve at the borrowers’ level; |
(iv) | not having a ratio of net debt to assets adjusted for the market value of the vessels above a certain level; |
(v) | maintaining a certain level of minimum free cash at Castor Maritime; and |
(vi) | maintaining a trailing 12 months EBITDA to net interest expense ratio at and above a certain level. |
ITEM 4. | INFORMATION ON THE COMPANY |
A. |
• | the contribution to Toro of our eight tanker-owning subsidiaries (each owning one tanker vessel) and an additional subsidiary formerly owning the M/T Wonder Arcturus (which was sold pursuant to a memorandum of agreement entered into on May 9, 2022 and delivered to its new owner on July 15, 2022); |
○ | all issued and outstanding shares of Toro common stock, par value $0.001 per share; |
○ | 140,000 shares of Toro’s 1.00% Series A Fixed Rate Cumulative Perpetual Convertible Preferred Shares of Toro, with a cumulative preferred distribution accruing initially at a rate of 1.00% per annum on the stated amount of $1,000 per share, all of which would be retained by us after the Spin-Off; and |
○ | the issuance of 40,000 Series B Preferred Shares of Toro, each carrying 100,000 votes on all matters on which our shareholders are entitled to vote but no economic rights, to Pelagos, a company controlled by our and Toro’s Chairman and Chief Executive Officer, against payment of their nominal value of $0.001 per Series B Preferred Share. |
B. | BUSINESS OVERVIEW |
Vessel Name | Capacity (dwt) | Year Built | Country of Construction | Type of Employment | Gross Charter Rate ($/day | Estimated Redelivery Date | |
Earliest | Latest | ||||||
M/V Magic Orion | 180,200 | 2006 | Japan | TC (1) period | 101% of BCI5TC (2) | Jan-24 | Apr-24 |
M/V Magic Venus | 83,416 | 2010 | Japan | TC period | $25,000 (3) | Apr-24 | Jul-24 |
M/V Magic Thunder | 83,375 | 2011 | Japan | TC period | $14,000 (4) | Sep-23 | Dec-23 |
M/V Magic Argo | 82,338 | 2009 | Japan | TC period | 103% of BPI5TC | Apr-24 | Jul-24 |
M/V Magic Perseus | 82,158 | 2013 | Japan | TC period | 100% of BPI5TC | Sep-23 | Dec-23 |
M/V Magic Starlight | 81,048 | 2015 | China | TC period | 98% of BPI5TC | Nov-23 | Feb-24 |
M/V Magic Twilight | 80,283 | 2010 | Korea | TC trip | $4,300 + $100,000 ballast bonus | Mar-23 | Mar-23 |
M/V Magic Nebula | 80,281 | 2010 | Korea | TC period | 93% of BPI5TC | May-23 | Aug -23 |
M/V Magic Nova | 78,833 | 2010 | Japan | TC period | 101% of BPI4TC (5) | Sep-23 | Dec-23 |
M/V Magic Mars | 76,822 | 2014 | Korea | TC period | 102% of BPI74 | Oct-23 | Jan-24 |
M/V Magic Phoenix | 76,636 | 2008 | Japan | TC period | 102% BPI4TC | Aug-23 | Nov-23 |
M/V Magic Horizon | 76,619 | 2010 | Japan | TC period | $14,000 (6) | Jun-23 | Sep-23 |
M/V Magic Moon | 76,602 | 2005 | Japan | TC period | 95% of BPI4TC | Apr-23 | Jul-23 |
M/V Magic P | 76,453 | 2004 | Japan | TC period | $13,100 (7) | Oct-23 | Jan-24 |
M/V Magic Sun | 75,311 | 2001 | Korea | TC trip | $9,000 | Apr-23 | Apr-23 |
M/V Magic Vela | 75,003 | 2011 | China | TC period | 87.5% of BPI5TC (8) | Apr-23 | Jul-23 |
M/V Magic Eclipse | 74,940 | 2011 | Japan | TC period | $22,000 (9) | Apr-24 | Jun-24 |
M/V Magic Pluto | 74,940 | 2013 | Japan | TC period | 100% of BPI4TC | Dec-23 | Mar-24 |
M/V Magic Callisto | 74,930 | 2012 | Japan | TC period | $14,000 (10) | Jul-23 | Oct-23 |
M/V Magic Rainbow | 73,593 | 2007 | China | Unfixed | N/A | N/A | N/A |
(1) | TC stands for time charter. |
(2) | The benchmark vessel used in the calculation of the average of the Baltic Capesize Index (“BCI”) 5TC routes (“BCI5TC”) is a non-scrubber fitted 180,000mt dwt vessel (Capesize) with specific age, speed – consumption, and design characteristics. |
(3) | The vessel’s daily gross charter rate is equal to 100% of the Baltic Panamax Index 5TC routes (“BPI5TC”). In accordance with the prevailing charter party, on April 28, 2022 the owners converted the index-linked rate to fixed from May 1, 2022 until March 31, 2023, at a rate of $25,000 per day. Upon completion of this period, the rate will be converted back to index‑linked. The benchmark vessel used in the calculation of the average of the BPI5TC routes is a non-scrubber fitted 82,000mt dwt vessel (Kamsarmax) with specific age, speed – consumption, and design characteristics. |
(4) | The vessel’s daily gross charter rate is equal to 97% of BPI5TC. In accordance with the prevailing charter party, on January 1, 2023 the owners converted the index-linked rate to fixed from February 1, 2023 until June 30, 2023, at a rate of $14,000 per day. Upon completion of this period, the rate will be converted back to index‑linked. |
(5) | The benchmark vessel used in the calculation of the average of the BPI4TC routes is a non-scrubber fitted 74,000mt dwt vessel (Panamax) with specific age, speed – consumption, and design characteristics. |
(6) | The vessel’s daily gross charter rate is equal to 103% of BPI4TC. In accordance with the prevailing charter party, on October 18, 2022 the owners converted the index-linked rate to fixed from November 1, 2022 until March 31, 2023, at a rate of $14,000 per day and, further, on February 27, 2023, converted the index-linked rate to fixed from April 1, 2023 to June 30, 2023 at a rate of $15,300 per day. Upon completion of this period, the rate will be converted back to index‑linked. |
(7) | The vessel’s daily gross charter rate is equal to 96% of BPI4TC. In accordance with the prevailing charter party, on January 16, 2023 the owners converted the index-linked rate to fixed from February 1, 2023 until September 30, 2023, at a rate of $13,100 per day. Upon completion of this period, the rate will be converted back to index‑linked. |
(8) | After redelivery from the current charter, estimated to take place between April and July 2023 in accordance with the prevailing charterparty terms, the vessel has been fixed for a period of minimum 12 to maximum 15 months, at a daily gross charter rate equal to 95% of BPI4TC. |
(9) | The vessel’s daily gross charter rate is equal to 99% of BPI4TC. In accordance with the prevailing charter party, on June 15, 2022 the owners converted the index-linked rate to fixed from July 1, 2022 until March 31, 2023, at a rate of $22,000 per day. Upon completion of this period, the rate will be converted back to index‑linked. |
(10) | The vessel’s daily gross charter rate is equal to 101% of BPI4TC. In accordance with the prevailing charter party, on October 18, 2022 the owners converted the index-linked rate to fixed from November 1, 2022 until March 31, 2023, at a rate of $14,000 per day and, further, on February 27, 2023, converted the index-linked rate to fixed from April 1, 2023 to June 30, 2023 at a rate of $15,000 per day. Upon completion of this period, the rate will be converted back to index‑linked. |
Vessel Name | Capacity (dwt) | Year Built | Country of Construction | Type of employment | Gross Charter Rate ($/day) | Estimated Earliest Charter Expiration | Estimated Latest Charter Expiration | ||||||||||
Containership Segment | |||||||||||||||||
M/V Ariana A | 38,117 | 2005 | Germany | TC period | $ | 23,250 | Apr-23 | Jul-23 | |||||||||
M/V Gabriela A | 38,121 | 2005 | Germany | TC period | $ | 26,350 | Feb-24 | May-24 |
Vessel Name | Capacity (dwt) | Year Built | Country of Construction | Type of employment | Gross Charter Rate ($/day) | Estimated Earliest Charter Expiration | Estimated Latest Charter Expiration | ||||||||||||||||
Aframax/LR2 Segment(1) | |||||||||||||||||||||||
M/T Wonder Polaris | 115,351 | 2005 | S. Korea | Tanker Pool(2) | N/A | N/A | N/A | ||||||||||||||||
M/T Wonder Sirius | 115,341 | 2005 | S. Korea | TC Period(3) | $ | 40,000 | November 2023 | June 2024 | |||||||||||||||
M/T Wonder Bellatrix | 115,341 | 2006 | S. Korea | Tanker Pool(2) | N/A | N/A | N/A | ||||||||||||||||
M/T Wonder Musica | 106,290 | 2004 | S. Korea | Tanker Pool(2) | N/A | N/A | N/A | ||||||||||||||||
M/T Wonder Avior | 106,162 | 2004 | S. Korea | Tanker Pool(2) | N/A | N/A | N/A | ||||||||||||||||
M/T Wonder Vega | 106,062 | 2005 | S. Korea | Tanker Pool(2) | N/A | N/A | N/A |
(1) | On May 9, 2022, we |
(2) | The vessel is currently participating in the V8 Plus Pool, a pool operating Aframax tankers aged fifteen (15) years or more that is managed by V8 Plus Management Pte Ltd., a company in which Petros Panagiotidis has a minority equity interest. |
(3) | In February 2023, the agreement relating to the M/T Wonder Sirius’s participation in the V8 Plus Pool was terminated and the vessel commenced a period time charter.” |
Vessel Name | Capacity (dwt) | Year Built | Country of Construction | Type of employment | Gross Charter Rate ($/day) | Estimated Earliest Charter Expiration | Estimated Latest Charter Expiration |
Handysize Segment | |||||||
M/T Wonder Mimosa | 36,718 | 2006 | S. Korea | Tanker Pool(1) | N/A | N/A | N/A |
M/T Wonder Formosa | 36,660 | 2006 | S. Korea | Tanker Pool(1) | N/A | N/A | N/A |
(1) | The vessel is currently participating in an unaffiliated tanker pool specializing in the employment of Handysize tanker vessels |
Dry Bulk Carriers | |||||||||||||||
Vessel Name | Vessel Type | DWT | Year Built | Country of Construction | Purchase Price (in million) | Delivery Date | |||||||||
2020 Acquisitions | |||||||||||||||
Magic Rainbow | Panamax | 73,593 | 2007 | China | $ | 7.85 | 08/08/2020 | ||||||||
Magic Horizon | Panamax | 76,619 | 2010 | Japan | $ | 12.75 | 10/09/2020 | ||||||||
Magic Nova | Panamax | 78,833 | 2010 | Japan | $ | 13.86 | 10/15/2020 | ||||||||
2021 Acquisitions | |||||||||||||||
Magic Orion | Capesize | 180,200 | 2006 | Japan | $ | 17.50 | 03/17/2021 | ||||||||
Magic Venus | Kamsarmax | 83,416 | 2010 | Japan | $ | 15.85 | 03/02/2021 | ||||||||
Magic Argo | Kamsarmax | 82,338 | 2009 | Japan | $ | 14.50 | 03/18/2021 | ||||||||
Magic Twilight | Kamsarmax | 80,283 | 2010 | S. Korea | $ | 14.80 | 04/09/2021 | ||||||||
Magic Nebula | Kamsarmax | 80,281 | 2010 | S. Korea | $ | 15.45 | 05/20/2021 | ||||||||
Magic Thunder | Kamsarmax | 83,375 | 2011 | Japan | $ | 16.85 | 04/13/2021 | ||||||||
Magic Eclipse | Panamax | 74,940 | 2011 | Japan | $ | 18.48 | 06/07/2021 | ||||||||
Magic Starlight | Kamsarmax | 81,048 | 2015 | China | $ | 23.50 | 05/23/2021 | ||||||||
Magic Vela | Panamax | 75,003 | 2011 | China | $ | 14.50 | 05/12/2021 | ||||||||
Magic Perseus | Kamsarmax | 82,158 | 2013 | Japan | $ | 21.00 | 08/09/2021 | ||||||||
Magic Pluto | Panamax | 74,940 | 2013 | Japan | $ | 19.06 | 08/06/2021 | ||||||||
Magic Mars | Panamax | 76,822 | 2014 | S. Korea | $ | 20.40 | 09/20/2021 | ||||||||
Magic Phoenix | Panamax | 76,636 | 2008 | Japan | $ | 18.75 | 10/26/2021 | ||||||||
2022 Acquisitions | |||||||||||||||
Magic Callisto | Panamax | 74,930 | 2012 | Japan | $ | 23.55 | 01/04/2022 |
Containerships | |||||||||||||||
2022 Acquisitions | |||||||||||||||
Ariana A | 2,700 TEU capacity Containership | 38,117 | 2005 | Germany | $ | 25.00 | 11/23/22 | ||||||||
Gabriela A | 2,700 TEU capacity Containership | 38,121 | 2005 | Germany | $ | 25.75 | 11/30/22 |
Aframax/LR2 Tankers* | |||||||||||||||
2021 Acquisitions | |||||||||||||||
Wonder Polaris | Aframax LR2 | 115,351 | 2005 | S. Korea | $ | 13.60 | 03/11/21 | ||||||||
Wonder Sirius | Aframax LR2 | 115,341 | 2005 | S. Korea | $ | 13.60 | 03/22/21 | ||||||||
Wonder Vega | Aframax | 106,062 | 2005 | S. Korea | $ | 14.80 | 05/21/21 | ||||||||
Wonder Avior | Aframax LR2 | 106,162 | 2004 | S. Korea | $ | 12.00 | 05/27/21 | ||||||||
Wonder Arcturus(1) | Aframax LR2 | 106,149 | 2002 | S. Korea | $ | 10.00 | 05/31/21 | ||||||||
Wonder Musica | Aframax LR2 | 106,290 | 2004 | S. Korea | $ | 12.00 | 06/15/21 | ||||||||
Wonder Bellatrix | Aframax LR2 | 115,341 | 2006 | S. Korea | $ | 18.15 | 12/23/21 |
(1) | The Wonder Arcturus was sold on May 9, 2022, and delivered to an unaffiliated third-party on July 15, 2022. |
Handysize Tankers* | |||||||||||||||
2021 Acquisitions | |||||||||||||||
Wonder Mimosa | Handysize | 36,718 | 2006 | S. Korea | $ | 7.25 | 05/31/21 | ||||||||
Wonder Formosa | Handysize | 36,660 | 2006 | S. Korea | $ | 8.00 | 06/22/21 |
Vessel Name | Year Built | Type of Charter | Capacity (dwt) | Delivered to Castor | Gross Charter Rate ($/day) | Estimated Earliest Charter Expiration | Estimated Latest Charter Expiration |
Dry bulk vessels | |||||||
Panamax | |||||||
Magic P | 2004 | Period Time Charter | 76,453 | February 2017 | $12,750 | August 2021 | November 2021 |
Magic Sun | 2001 | Period Time Charter | 75,311 | September 2019 | $10,200 | August 2021 | October 2021 |
Magic Moon | 2005 | Period Time Charter | 76,602 | October 2019 | $10,500 | July 2021 | September 2021 |
Magic Rainbow | 2007 | Trip Time Charter | 73,593 | August 2020 | $18,500 | April 2021 | April 2021 |
Magic Horizon | 2010 | Period Time Charter | 76,619 | October 2020 | $11,000 | August 2021 | December 2021 |
Magic Nova | 2010 | Period Time Charter | 78,833 | October 2020 | $10,400 | April 2021 | August 2021 |
Kamsarmax | |||||||
Magic Venus | 2010 | Period Time Charter | 83,416 | March 2021 | $18,500 | August 2021 | October 2021 |
Magic Argo | 2009 | Trip Time Charter | 82,338 | March 2021 | $25,100 | June 2021 | June 2021 |
Capesize | |||||||
Magic Orion | 2006 | Trip Time Charter | 180,200 | March 2021 | $21,000 | April 2021 | April 2021 |
Tanker vessels | |||||||
Aframax/LR2 | |||||||
Wonder Polaris | 2005 | Period Time Charter | 115,341 | March 2021 | $15,000 + profit sharing | February 2022 | February 2023 |
Wonder Sirius | 2005 | Period Time Charter | 115,340 | March 2021 | $15,000 + profit sharing | February 2022 | February 2023 |
C. |
D. |
ITEM 4A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. |
- | The levels of demand and supply of seaborne cargoes and vessel tonnage in the |
- | The cyclical nature of the shipping industry in general and its impact on charter rates and vessel |
- |
The |
- | The |
- | Economic, regulatory, political and governmental conditions that affect the shipping industry and our operating segments, including international conflict or war (or threatened war), such as the |
- | The employment and |
- | The ability to successfully employ our vessels at economically attractive rates and our strategic decisions regarding the employment mix of our |
- | Management of the operational, financial, general and administrative elements involved in the conduct of our |
- | The number of charterers and pool operators who use our services and the performance of their obligations under their agreements, including their ability to make |
- | The ability to |
- | The vetting approvals of our head manager and/or sub-managers for the management of our vessels; |
- | Dry-docking and special survey costs and duration, both expected and unexpected; |
- | The level of any distribution on all classes of our shares; |
- | Our borrowing levels and the finance costs related to our outstanding debt as well as our compliance with our debt covenants; and |
- | Management of our financial resources, including banking relationships and of the relationships with our various |
- | Major outbreaks of diseases (such as COVID-19) and governmental responses thereto. |
For the year ended | ||||||||
December 31, 2019 | December 31, 2020 | |||||||
Operational Metrics | ||||||||
Available days | 545 | 1,219 | ||||||
Ownership days | 556 | 1,405 | ||||||
Fleet utilization | 98 | % | 87 | % | ||||
Daily time charter equivalent (or TCE) | $ | 10,471 | $ | 9,765 | ||||
Daily vessel operating expenses | $ | 5,041 | $ | 5,301 | ||||
Daily management fees | $ | 382 | $ | 662 | ||||
Daily general and administrative expenses | $ | 681 | $ | 805 | ||||
EBITDA (1) | $ | 2,175,894 | $ | 2,327,671 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Total vessel revenues | $ | 132,049,710 | $ | 262,101,998 | ||||
Voyage expenses - including commissions from related party | (12,950,783 | ) | (33,040,690 | ) | ||||
TCE revenues | $ | 119,098,927 | $ | 229,061,308 | ||||
Available Days | 6,657 | 10,212 | ||||||
Daily TCE Rate | $ | 17,891 | $ | 22,431 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Total vessel revenues | $ | 102,785,442 | $ | 148,930,997 | ||||
Voyage expenses - including commissions from related party | (1,891,265 | ) | (3,649,943 | ) | ||||
TCE revenues | $ | 100,894,177 | $ | 145,281,054 | ||||
Available Days | 4,843 | 7,105 | ||||||
Daily TCE Rate | $ | 20,833 | $ | 20,448 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Total vessel revenues | $ | 26,559,413 | $ | 96,248,215 | ||||
Voyage expenses - including commissions from related party | (11,003,925 | ) | (29,100,348 | ) | ||||
TCE revenues | $ | 15,555,488 | $ | 67,147,867 | ||||
Available Days | 1,446 | 2,307 | ||||||
Daily TCE Rate | $ | 10,758 | $ | 29,106 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Total vessel revenues | $ | 2,704,855 | $ | 15,637,653 | ||||
Voyage expenses - including commissions from related party | (55,593 | ) | (219,066 | ) | ||||
TCE revenues | $ | 2,649,262 | $ | 15,418,587 | ||||
Available Days | 368 | 730 | ||||||
Daily TCE Rate | $ | 7,199 | $ | 21,121 |
Period Ended December 31, | ||||
2022 | ||||
Total vessel revenues | $ | 1,285,133 | ||
Voyage expenses - including commissions from related party | (71,333 | ) | ||
TCE revenues | $ | 1,213,800 | ||
Available Days | 70 | |||
Daily TCE Rate | $ | 17,340 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Daily vessel operating expenses | $ | 5,759 | $ | 6,007 | ||||
Ownership Days | 6,807 | 10,482 | ||||||
Available Days | 6,657 | 10,212 | ||||||
Operating Days | 6,562 | 10,153 | ||||||
Fleet Utilization | 99 | % | 99 | % | ||||
Daily TCE Rate | $ | 17,891 | $ | 22,431 | ||||
EBITDA | $ | 69,910,529 | $ | 152,765,204 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Daily vessel operating expenses | $ | 5,418 | $ | 5,577 | ||||
Ownership Days | 4,954 | 7,297 | ||||||
Available Days | 4,843 | 7,105 | ||||||
Operating Days | 4,766 | 7,056 | ||||||
Fleet Utilization | 98 | % | 99 | % | ||||
Daily TCE Rate | $ | 20,833 | $ | 20,448 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Daily vessel operating expenses | $ | 6,761 | $ | 7,290 | ||||
Ownership Days | 1,446 | 2,385 | ||||||
Available Days | 1,446 | 2,307 | ||||||
Operating Days | 1,428 | 2,298 | ||||||
Fleet Utilization | 99 | % | 100 | % | ||||
Daily TCE Rate | $ | 10,758 | $ | 29,106 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Daily vessel operating expenses | $ | 6,352 | $ | 5,921 | ||||
Ownership Days | 407 | 730 | ||||||
Available Days | 368 | 730 | ||||||
Operating Days | 368 | 730 | ||||||
Fleet Utilization | 100 | % | 100 | % | ||||
Daily TCE Rate | $ | 7,199 | $ | 21,121 |
Period Ended December 31, | ||||
2022 | ||||
Daily vessel operating expenses | $ | 8,024 | ||
Ownership Days | 70 | |||
Available Days | 70 | |||
Operating Days | 69 | |||
Fleet Utilization | 99 | % | ||
Daily TCE Rate | $ | 17,340 |
Year Ended December 31, | ||||||||
2021 | 2022 | |||||||
Net Income | $ | 52,270,487 | $ | 118,560,690 | ||||
Depreciation and amortization | 14,362,828 | 25,829,713 | ||||||
Interest and finance costs, net (including related party interest costs) (1) | 2,779,875 | 7,025,951 | ||||||
Income taxes | 497,339 | 1,348,850 | ||||||
EBITDA | $ | 69,910,529 | $ | 152,765,204 |
(1) | Includes interest and finance costs and interest income, if any. |
(In U.S. Dollars, except for share and per share data) | Year ended December 31, 2019 | Year ended December 31, 2020 | Change -amount | Change-% | ||||||||||||
Vessel revenues (net of charterers' commissions) | 5,967,772 | 12,487,692 | 6,519,920 | 109.3 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions from related parties) | (261,179 | ) | (584,705 | ) | 323,526 | 123.9 | % | |||||||||
Vessel operating expenses | (2,802,991 | ) | (7,447,439 | ) | 4,644,448 | 165.7 | % | |||||||||
Management fees to related parties | (212,300 | ) | (930,500 | ) | 718,200 | 338.3 | % | |||||||||
General and administrative expenses | ||||||||||||||||
• Company administration expenses (including administrations costs from related party) | (378,777 | ) | (1,130,953 | ) | 752,176 | 198.6 | % | |||||||||
• Public registration costs | (132,091 | ) | — | (132,091 | ) | (100 | )% | |||||||||
Provision for doubtful debt | — | (37,103 | ) | 37,103 | 100 | % | ||||||||||
Depreciation and amortization | (897,171 | ) | (1,904,963 | ) | 1,007,792 | 112.3 | % | |||||||||
Operating income | 1,283,263 | 452,029 | (831,234 | ) | (64.8 | )% | ||||||||||
Interest and finance costs, net (including interest costs from related party) | (190,574 | ) | (2,154,601 | ) | 1,964,027 | 1,030.6 | % | |||||||||
Total Other Income / (expenses), net | (195,114 | ) | (2,183,922 | ) | 1,988,808 | 1,019.3 | % | |||||||||
US Source Income Taxes | — | (21,640 | ) | — | 100 | % | ||||||||||
Net income/ (loss) and comprehensive income/ (loss) | 1,088,149 | (1,753,533 | ) | (2,841,682 | ) | (261.1 | )% | |||||||||
Earnings/ (Loss) per common share, basic and diluted | 0.31 | (0.03 | ) | |||||||||||||
Weighted average number of common shares, basic and diluted | 2,662,383 | 67,735,195 |
Year ended December 31, 2021 | Year ended December 31, 2022 | Change- amount | Change % | |||||||||||||
Total vessel revenues | 132,049,710 | 262,101,998 | 130,052,288 | 98.5 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions to related party) | (12,950,783 | ) | (33,040,690 | ) | 20,089,907 | 155.1 | % | |||||||||
Vessel operating expenses | (39,203,471 | ) | (62,967,844 | ) | 23,764,373 | 60.6 | % | |||||||||
Management fees to related parties | (6,744,750 | ) | (9,395,900 | ) | 2,651,150 | 39.3 | % | |||||||||
Depreciation and amortization | (14,362,828 | ) | (25,829,713 | ) | 11,466,885 | 79.8 | % | |||||||||
Provision for doubtful accounts | (2,483 | ) | (266,732 | ) | 264,249 | 10,642.3 | % | |||||||||
General and administrative expenses (including related party) | (3,266,310 | ) | (7,043,937 | ) | 3,777,627 | 115.7 | % | |||||||||
Gain on sale of vessel | — | 3,222,631 | 3,222,631 | 100.0 | % | |||||||||||
Operating income | 55,519,085 | 126,779,813 | 71,260,728 | 128.4 | % | |||||||||||
Interest and finance costs, net (including interest costs from related party) | (2,779,875 | ) | (7,025,951 | ) | 4,246,076 | 152.7 | % | |||||||||
Total other expenses, net | (2,751,259 | ) | (6,870,273 | ) | 4,119,014 | 149.7 | % | |||||||||
Income taxes | (497,339 | ) | (1,348,850 | ) | 851,511 | 171.2 | % | |||||||||
Net income and comprehensive income | 52,270,487 | 118,560,690 | 66,290,203 | 126.8 | % | |||||||||||
Earnings per common share, basic | 0.48 | 1.25 | ||||||||||||||
Earnings per common share, diluted | 0.47 | 1.25 | ||||||||||||||
Weighted average number of common shares, basic | 83,923,435 | 94,610,088 | ||||||||||||||
Weighted average number of common shares, diluted | 85,332,728 | 94,610,088 |
Year ended December 31, 2021 | Year ended December 31, 2022 | Change-amount | Change % | |||||||||||||
Total vessel revenues | 102,785,442 | 148,930,997 | 46,145,555 | 44.9 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions to related party) | (1,891,265 | ) | (3,649,943 | ) | 1,758,678 | 93.0 | % | |||||||||
Vessel operating expenses | (26,841,600 | ) | (40,697,898 | ) | 13,856,298 | 51.6 | % | |||||||||
Management fees to related parties | (4,890,900 | ) | (6,481,000 | ) | 1,590,100 | 32.5 | % | |||||||||
Depreciation and amortization | (10,528,711 | ) | (18,039,966 | ) | 7,511,255 | 71.3 | % | |||||||||
Provision for doubtful accounts | (2,483 | ) | — | (2,483 | ) | (100.0 | )% | |||||||||
Segment operating income | 58,630,483 | 80,062,190 | 21,431,707 | 36.6 | % |
Period ended December 31, 2021 | Year ended December 31, 2022 | Change -amount | Change % | |||||||||||||
Total vessel revenues | 26,559,413 | 96,248,215 | 69,688,802 | 262.4 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions to related party) | (11,003,925 | ) | (29,100,348 | ) | 18,096,423 | 164.5 | % | |||||||||
Vessel operating expenses | (9,776,724 | ) | (17,386,009 | ) | 7,609,285 | 77.8 | % | |||||||||
Management fees to related parties | (1,433,950 | ) | (2,167,000 | ) | 733,050 | 51.1 | % | |||||||||
Depreciation and amortization | (3,087,764 | ) | (5,889,352 | ) | 2,801,588 | 90.7 | % | |||||||||
Provision for doubtful accounts | — | (266,732 | ) | 266,732 | 100.0 | % | ||||||||||
Gain on sale of vessel | — | 3,222,631 | 3,222,631 | 100.0 | % | |||||||||||
Segment operating income | 1,257,050 | 44,661,405 | 43,404,355 | 3,452.9 | % |
Period ended December 31, 2021 | Year ended December 31, 2022 | Change -amount | Change % | |||||||||||||
Total vessel revenues | 2,704,855 | 15,637,653 | 12,932,798 | 478.1 | % | |||||||||||
Expenses: | ||||||||||||||||
Voyage expenses (including commissions to related party) | (55,593 | ) | (219,066 | ) | 163,473 | 294.1 | % | |||||||||
Vessel operating expenses | (2,585,147 | ) | (4,322,281 | ) | 1,737,134 | 67.2 | % | |||||||||
Management fees to related parties | (419,900 | ) | (666,500 | ) | 246,600 | 58.7 | % | |||||||||
Depreciation and amortization | (746,353 | ) | (1,405,124 | ) | 658,771 | 88.3 | % | |||||||||
Segment operating (loss)/income | (1,102,138 | ) | 9,024,682 | 10,126,820 | 918.8 | % |
| Period ended December 31, 2022 | |||
Total vessel revenues | $ | 1,285,133 | ||
Expenses: | ||||
Voyage expenses (including commissions to related party) | (71,333 | ) | ||
Vessel operating expenses | (561,656 | ) | ||
Management fees to related parties | (81,400 | ) | ||
Depreciation and amortization | (495,271 | ) | ||
Segment operating income | $ | 75,473 |
B. |
For the year ended | ||||||||
(In US Dollars) | December 31, 2019 | December 31, 2020 | ||||||
Net cash provided by/ (used in) operating activities | 2,311,962 | (2,343,809 | ) | |||||
Net cash used in investing activities | (17,227,436 | ) | (35,472,173 | ) | ||||
Net cash provided by financing activities | 18,087,133 | 42,183,946 |
(in U.S Dollars) | For the year ended | |||||||
December 31, 2021 | December 31, 2022 | |||||||
Net cash provided by operating activities | 60,775,327 | 123,753,052 | ||||||
Net cash used in investing activities | (348,640,707 | ) | (63,737,095 | ) | ||||
Net cash provided by financing activities | 321,824,945 | 48,904,995 |
C. |
D. |
Payments due by period | ||||||||||||||||||||
Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-term debt | $ | 18,450,000 | $ | 7,200,000 | $ | 4,400,000 | $ | 6,850,000 | $ | - | ||||||||||
Interest on long-term debt (1) | 1,539,058 | 557,163 | 744,892 | 237,003 | - | |||||||||||||||
Administration fees - Castor Ships (2) | 5,600,000 | 1,200,000 | 2,400,000 | 2,000,000 | - | |||||||||||||||
Management fees- Pavimar & Castor Ships (2) | 8,690,400 | 1,861,500 | 3,723,000 | 3,105,900 | - | |||||||||||||||
Capital expenditures related to BWMS purchases (3) | 849,122 | 495,871 | 353,251 | - | - | |||||||||||||||
Total | $ | 35,128,580 | $ | 11,314,534 | $ | 11,621,143 | $ | 12,192,903 | $ | - |
E. | CRITICAL ACCOUNTING ESTIMATES |
Vessels | Date acquired | Carrying value as of December 31, 2020 (in millions of United States dollars) | Carrying value as of December 31, 2019 (in millions of United States dollars) | ||||||
Magic P | 21/02/2017 | $ | 6.8 | $ | 6.7 | ||||
Magic Sun | 05/09/2019 | $ | 6.9 | * | $ | 6.8 | |||
Magic Moon | 20/10/2019 | $ | 9.6 | * | $ | 10.2 | |||
Magic Rainbow | 08/08/2020 | $ | 8.0 | $ | - | ||||
Magic Horizon | 09/10/2020 | $ | 12.9 | $ | - | ||||
Magic Nova | 15/10/2020 | $ | 13.8 | $ | - | ||||
Total | $ | 58.0 | $ | 23.7 |
Vessels | Date acquired | Carrying value as of December 31, 2022 (in millions of United States dollars) | |||
M/V Magic P | 02/21/2017 | $ | 6.6 | ||
M/V Magic Sun | 09/05/2019 | $ | 5.9 | ||
M/V Magic Moon | 10/20/2019 | $ | 9.0 | ||
M/V Magic Rainbow | 08/08/2020 | $ | 8.3 | ||
M/V Magic Horizon | 10/09/2020 | $ | 11.6 | ||
M/V Magic Nova | 10/15/2020 | $ | 12.4 | ||
M/V Magic Venus | 03/02/2021 | $ | 14.7 | ||
M/T Wonder Polaris | 03/11/2021 | $ | 12.4 | ||
M/V Magic Orion | 03/17/2021 | $ | 16.3 | ||
M/V Magic Argo | 03/18/2021 | $ | 13.3 | ||
M/T Wonder Sirius | 03/22/2021 | $ | 12.4 | ||
M/V Magic Twilight | 04/09/2021 | $ | 13.8 | ||
M/V Magic Thunder | 04/13/2021 | $ | 15.7 | ||
M/V Magic Vela | 05/12/2021 | $ | 14.1 | ||
M/V Magic Nebula | 05/20/2021 | $ | 14.6 | ||
M/T Wonder Vega | 05/21/2021 | $ | 13.4 | ||
M/V Magic Starlight | 05/23/2021 | $ | 22.0 | ||
M/T Wonder Avior | 05/27/2021 | $ | 10.9 | ||
M/T Wonder Mimosa | 05/31/2021 | $ | 8.0 | ||
M/V Magic Eclipse | 06/07/2021 | $ | 17.2 | ||
M/T Wonder Musica | 06/15/2021 | $ | 10.8 | ||
M/T Wonder Formosa | 06/22/2021 | $ | 7.7 | ||
M/V Magic Pluto | 08/06/2021 | $ | 20.3 | ||
M/V Magic Perseus | 08/09/2021 | $ | 20.6 | ||
M/V Magic Mars | 09/20/2021 | $ | 19.6 | ||
M/V Magic Phoenix | 10/26/2021 | $ | 17.6 | * | |
M/T Wonder Bellatrix | 12/23/2021 | $ | 16.9 | ||
M/V Magic Callisto | 01/04/2022 | $ | 22.4 | * | |
M/V Ariana A | 11/23/2022 | $ | 23.9 | * | |
M/V Gabriela A | 11/30/2022 | $ | 23.5 | * | |
Total | $ | 435.9 |
• | our secondhand vessels are depreciated from the date of their acquisition through their remaining estimated useful life. We estimate the full useful life of vessels to be 25 years from the date of initial delivery from the shipyard; |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
A. |
Name | Age | Position | |||
Petros Panagiotidis | 32 | Chairman, Chief Executive Officer, Chief Financial Officer, President, Treasurer and Class C Director | |||
Dionysios Makris | 42 | Secretary and Class B Director | |||
Georgios Daskalakis | 33 | Class A Director |
B. |
C. |
D. |
E. |
F. | DISCLOSURE OF A REGISTRANT’S ACTION TO RECOVER ERRONEOUSLY AWARDED COMPENSATION |
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. |
Name of Beneficial Owner | No. of Common Shares | Percentage | ||||||
All executive officers and directors as a group (1) (2) | - | - | % |
(1) | Neither any member of our Board of Directors or executive officer individually, nor all of them taken as a group, |
(2) | Petros Panagiotidis |
B. |
C. | Interests of Experts and Counsel |
ITEM 8. | FINANCIAL INFORMATION |
A. |
B. |
ITEM 9. | THE OFFER AND LISTING |
A. |
B. |
C. |
D. |
E. |
F. |
ITEM 10. | ADDITIONAL INFORMATION |
A. |
B. |
• | Conversion. The Series B Preferred Shares are not convertible into common shares. |
• | Distributions. In the event that we declare a dividend of the stock of a subsidiary which we control, the holder(s) of the Series B Preferred Shares are entitled to receive preferred shares of such subsidiary. Such preferred shares will have at least substantially identical rights and preferences to our Series B Preferred Shares and be issued in an equivalent number to our Series B Preferred Shares. The Series B Preferred Shares have no other dividend or distribution rights. |
• | Voting. Each Series B Preferred Share has the voting power of 100,000 common shares and counts for 100,000 votes for purposes of determining quorum at a meeting of shareholders, subject to adjustment to maintain a substantially identical voting interest in Castor following the (i) creation or issuance of a new series of shares of the Company carrying more than one vote per share to be issued to any person other than holders of the Series B Preferred Shares, except for the creation (but not the issuance) of Series C Participating Preferred Shares substantially in the form approved by the Board and included as an exhibit to this registration statement, without the prior affirmative vote of a majority of votes cast by the holders of the Series B Preferred Shares or (ii) issuance or approval of common shares pursuant to and in accordance with the Shareholder Protection Rights Agreement. The Series B Preferred Shares vote together with common shares as a single class, except that the Series B Preferred Shares vote separately as a class on amendments to the Articles of Incorporation that would materially alter or change the powers, preference or special rights of the Series B Preferred Shares. |
• | Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Company, the Series B Preferred Shares shall have the same liquidation rights as and pari passu with the common shares up to their par value of $0.001 per share and, thereafter, the Series B Preferred Shares have no right to participate further in the liquidation, dissolution or winding up of the Company. |
C. |
D. |
E. |
F. |
G. |
H. |
I. |
J. | ANNUAL REPORT TO SECURITY HOLDERS |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. | CONTROLS AND PROCEDURES |
A. |
B. |
C. |
D. |
ITEM 16. | RESERVED |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the year ended | ||||||||
In U.S. dollars | December 31, 2019 | December 31, 2020 | ||||||
Audit Fees | 140,385 | 188,750 |
For the year ended | ||||||||
In U.S. dollars | December 31, 2021 | December 31, 2022 | ||||||
Audit Fees | $ | 367,000 | $ | 482,000 |
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PERSONS. |
ITEM 16F. | CHANGE IN REGISTRANT`S CERTIFYING |
ITEM 16G. | CORPORATE GOVERNANCE |
• | Independence of Directors. The Nasdaq requires that a U.S. listed company maintain a majority of independent directors. While our Board is currently comprised of three directors a majority of whom are independent, we cannot assure you that in the future we will have a majority of independent directors. |
• | Executive Sessions. The Nasdaq requires that non-management directors meet regularly in executive sessions without management. The Nasdaq also requires that all independent directors meet in an executive session at least once a year. As permitted under Marshall Islands law and our bylaws, our non-management directors do not regularly hold executive sessions without management. |
• | Nominating/Corporate Governance Committee. The Nasdaq requires that a listed U.S. company have a nominating/corporate governance committee of independent directors and a committee charter specifying the purpose, duties and evaluation procedures of the committee. As permitted under Marshall Islands law and our bylaws, we do not currently have a nominating or corporate governance committee. |
• | Compensation Committee. The Nasdaq requires U.S. listed companies to have a compensation committee composed entirely of independent directors and a committee charter addressing the purpose, responsibility, rights and performance evaluation of the committee. As permitted under Marshall Islands law, we do not currently have a compensation committee. To the extent we establish such committee in the future, it may not consist of independent directors, entirely or at all. |
• | Audit Committee. The Nasdaq requires, among other things, that a listed U.S. company have an audit committee with a minimum of three members, all of whom are independent. As permitted by Nasdaq Rule 5615(a)(3), we follow home country practice regarding audit committee composition and therefore our audit committee consists of two independent members of our Board, Mr. Georgios Daskalakis and Mr. Dionysios Makris. Although the members of our audit committee are independent, we are not required to ensure their independence under Nasdaq Rule 5605(c)(2)(A) subject to compliance with Rules 10A-3(b)(1) and 10A-3(c) under the Securities Exchange Act of 1934. |
• | Shareholder Approval Requirements. The Nasdaq requires that a listed U.S. company obtain prior shareholder approval for certain issuances of authorized stock or the approval of, and material revisions to, equity compensation plans. As permitted under Marshall Islands law and our bylaws, we do not seek shareholder approval prior to issuances of authorized stock or the approval of and material revisions to equity compensation plans. |
• | Corporate Governance Guidelines. The Nasdaq requires U.S. companies to adopt and disclose corporate governance guidelines. The guidelines must address, among other things: director qualification standards, director responsibilities, director access to management and independent advisers, director compensation, director orientation and continuing education, management succession and an annual performance evaluation of the Board. We are not required to adopt such guidelines under Marshall Islands law and we have not adopted such guidelines. |
ITEM 16H. | MINE SAFETY DISCLOSURE |
ITEM 16I. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 16J. | INSIDER TRADING POLICIES |
ITEM 17. | FINANCIAL STATEMENTS |
ITEM 18. | FINANCIAL STATEMENTS |
ITEM 19. | EXHIBITS |
Articles of Incorporation of the Company incorporated by reference to Exhibit 3.1 to the Company’s registration statement on Form F-4 filed with the | |||
Articles of Amendment to the Articles of Incorporation of the Company, as amended, filed with the Registry of the Marshall Islands on May 27, 2021 incorporated by reference to Exhibit 99.1 to Amendment No. 2 to Form 8-A filed with the SEC on May 28, 2021. | |||
Bylaws of the Company incorporated by reference to Exhibit 3.2 to the | |||
Form of Common Share Certificate incorporated by reference to Exhibit | |||
Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. | |||
Form of Class A |
Form of | |||
Stockholder Rights Agreement dated as of November 20, 2017 by and between the Company and American Stock Transfer & Trust Company, LLC, as rights agent, incorporated by reference to Exhibit 10.2 to the | |||
Amended and Restated Statement of Designation | |||
2022. | |||
Amended and Restated Statement of | |||
$4.5 Million Secured Loan Agreement, dated January 23, 2020, by and among Chailease International Financial Services Co., Ltd., as lender, Bistro Maritime Co., as borrower, and the Company and Pavimar S.A., as guarantors, incorporated by reference to Exhibit 10.1 of the | |||
$ | |||
$40.75 Million Term Loan Facility, dated | |||
$23.15 Million Term Loan Facility, dated November 22, 2021, by and among Chailease International Financial Services Co., Ltd., as lender, and Bagheera Shipping Co. and Garfield Shipping Co., as borrowers, incorporated by reference to Exhibit 4.19 of the Company’s annual report on Form 20-F filed with the SEC on March 31, 2022. | |||
$55.0 Million Term Loan Facility, dated January 12, 2022, by and among Deutsche Bank AG, as lender, and Mulan Shipping Co., Johnny Bravo Shipping Co., Songoku Shipping Co., Asterix Shipping Co. and Stewie Shipping Co., as borrowers, incorporated by reference to Exhibit 4.20 of the Company’s annual report on Form 20-F filed with the SEC on March 31, 2022. | |||
$22.5 Million Term Loan Facility, dated November 22, 2022, by and among Chailease International Financial Services Co., Ltd., as lender, Jerry Shipping Co. and Tom Shipping Co., as borrowers and Castor Maritime, as guarantor. | |||
Warrant Agency Agreement, among the Company and American Stock Transfer & Trust Company, LLC, dated June 26, 2020, incorporated by reference to Exhibit 4.1 of the Company’s report on Form 6-K furnished with the | |||
Securities Purchase Agreement by and between the Company and the purchasers identified on the signature pages thereto, dated July 12, 2020, incorporated by reference to Exhibit 4.2 of the | |||
Securities Purchase Agreement by and between the Company and the purchasers identified on the signature pages thereto, dated April 5, 2021, incorporated by reference to Exhibit 4.2 of | |||
Master Management Agreement, dated September 1, 2020, by and among the Company, its shipowning subsidiaries and Castor Ships S.A., incorporated by reference to Exhibit 99.3 of the Company’s report on Form 6-K furnished with the SEC on September 11, 2020. | |||
Amended and Restated Master Management Agreement, dated July 28, 2022, by and among Castor Maritime Inc., its shipowning subsidiaries and Castor Ships S.A.. | |||
Addendum No.1 to the Amended and Restated Master Management Agreement, dated November 18, 2022, by and among Castor Maritime Inc., its shipowning subsidiaries, its ex-shipowning subsidiary and Castor Ships S.A.. |
Contribution and Spin Off Distribution Agreement entered into by and between Castor Maritime Inc. and Toro Corp., dated March 7, 2023. | |||
List of Subsidiaries. | |||
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer and Chief Financial Officer. | |||
Certification of the Chief Executive Officer | |||
Consent of Independent Registered Public Accounting | |||
101.INS | Inline XBRL Instance Document | ||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||
101.CAL | Inline XBRL Taxonomy Extension Schema Calculation Linkbase Document | ||
101.DEF | Inline XBRL Taxonomy Extension Schema Definition Linkbase Document | ||
101.LAB | Inline XBRL Taxonomy Extension Schema Label Linkbase Document | ||
101.PRE | Inline XBRL Taxonomy Extension Schema Presentation Linkbase Document | ||
104 | Cover Page Interactive Data File (Inline XBRL) |
CASTOR MARITIME INC. | ||
/s/ Petros Panagiotidis | March | |
Name: Petros Panagiotidis | ||
Title: Chairman, Chief Executive Officer and Chief Financial Officer |
Page | |||
Report of Independent Registered Public Accounting Firm (PCAOB ID 1163) | F-2 | ||
F-3 | |||
F-4 | |||
F-5 | |||
F-6 | |||
F-7 |
CASTOR MARITIME INC. | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
December 31, 2019 and 2020 | ||||||||||||
(Expressed in U.S. Dollars – except for share data) | ||||||||||||
ASSETS | December 31, | December 31, | ||||||||||
CURRENT ASSETS: | Note | 2019 | 2020 | |||||||||
Cash and cash equivalents | $ | 4,558,939 | $ | 8,926,903 | ||||||||
Accounts receivable trade, net | 216,485 | 1,302,218 | ||||||||||
Due from related party | 3 | 759,386 | 1,559,132 | |||||||||
Inventories | 143,534 | 714,818 | ||||||||||
Prepaid expenses and other assets | 375,255 | 1,061,083 | ||||||||||
Deferred charges, net | 167,298 | — | ||||||||||
Total current assets | 6,220,897 | 13,564,154 | ||||||||||
NON-CURRENT ASSETS: | ||||||||||||
Vessels, net | 5 | 23,700,029 | 58,045,628 | |||||||||
Restricted cash | 6 | 500,000 | 500,000 | |||||||||
Prepaid expenses and other assets, non-current | 6 | — | 200,000 | |||||||||
Deferred charges, net | 4 | — | 2,061,573 | |||||||||
Total non-current assets | 24,200,029 | 60,807,201 | ||||||||||
Total assets | $ | 30,420,926 | $ | 74,371,355 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Current portion of long-term debt, net | 6 | 1,522,895 | 2,102,037 | |||||||||
Current portion of long-term debt, related party | 3, 6 | — | 5,000,000 | |||||||||
Accounts payable | 410,592 | 2,078,695 | ||||||||||
Due to related party, current | 3 | — | 1,941 | |||||||||
Deferred revenue, net | 493,015 | 108,125 | ||||||||||
Accrued liabilities (including $100,000 and $405,000 accrued interest to related party for years ended December 31,2019 and 2020, respectively) | 3 | 556,248 | 1,613,109 | |||||||||
Total current liabilities | 2,982,750 | 10,903,907 | ||||||||||
Commitments and contingencies | 9 | |||||||||||
NON-CURRENT LIABILITIES: | ||||||||||||
Long-term debt, net | 6 | 9,234,165 | 11,083,829 | |||||||||
Long-term debt, related party | 3, 6 | 5,000,000 | — | |||||||||
Total non-current liabilities | 14,234,165 | 11,083,829 | ||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||||
Common shares, $0.001 par value; 1,950,000,000 shares authorized; 3,318,112 shares issued and outstanding as of December 31, 2019 and 131,212,376 issued and outstanding as of December 31, 2020 | 7 | 3,318 | 131,212 | |||||||||
Preferred shares, $0.001 par value: 50,000,000 shares authorized: | 7 | |||||||||||
Series A Preferred Shares- 9.75% cumulative redeemable perpetual preferred shares (liquidation preference of $30 per share), 480,000 shares issued and outstanding as of December 31, 2019 and 2020, respectively | 7 | 480 | 480 | |||||||||
Series B Preferred Shares – 12,000 shares issued and outstanding as of December 31, 2019 and 2020, respectively | 7 | 12 | 12 | |||||||||
Additional paid-in capital | 12,763,403 | 53,568,650 | ||||||||||
Retained earnings/ (Accumulated deficit) | 436,798 | (1,316,735 | ) | |||||||||
Total shareholders' equity | 13,204,011 | 52,383,619 | ||||||||||
Total liabilities and shareholders' equity | $ | 30,420,926 | $ | 74,371,355 |
Year Ended September 30, | Three Months Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||||
Note | 2018 | 2018 | 2019 | 2020 | ||||||||||||||||
REVENUES: | ||||||||||||||||||||
Vessel revenues (net of commissions to charterers of $153,406, $43,125 ,$302,556 and $629,015 respectively) | $ | 3,960,822 | $ | 1,111,075 | $ | 5,967,772 | $ | 12,487,692 | ||||||||||||
Total revenues | 3,960,822 | 1,111,075 | 5,967,772 | 12,487,692 | ||||||||||||||||
EXPENSES: | ||||||||||||||||||||
Voyage expenses (including $40,471 and $29,769 to related parties for the years ended December 31, 2019 and 2020, respectively) | 3,12 | (37,373 | ) | (19,556 | ) | (261,179 | ) | (584,705 | ) | |||||||||||
Vessel operating expenses | 12 | (1,727,770 | ) | (432,544 | ) | (2,802,991 | ) | (7,447,439 | ) | |||||||||||
Management fees to related parties | 3 | (111,480 | ) | (29,440 | ) | (212,300 | ) | (930,500 | ) | |||||||||||
Depreciation and amortization | 4,5 | (637,611 | ) | (177,378 | ) | (897,171 | ) | (1,904,963 | ) | |||||||||||
Provision for doubtful accounts | 2 | — | — | — | (37,103 | ) | ||||||||||||||
General and administrative expenses | 13 | |||||||||||||||||||
- Company administration expenses (including $400,000 to related party for the year ended December 31, 2020) | (109,233 | ) | (22,954 | ) | (378,777 | ) | (1,130,953 | ) | ||||||||||||
- Public registration costs | (350,167 | ) | (161,116 | ) | (132,091 | ) | — | |||||||||||||
Total expenses | (2,973,634 | ) | (842,988 | ) | (4,684,509 | ) | (12,035,663 | ) | ||||||||||||
Operating income | 987,188 | 268,087 | 1,283,263 | 452,029 | ||||||||||||||||
OTHER INCOME/ (EXPENSES): | ||||||||||||||||||||
Interest and finance costs (including $162,500 and $305,000 to related party for years ended December 31, 2019 and 2020, respectively) | 3,6, 14 | (3,393 | ) | (519 | ) | (222,163 | ) | (2,189,577 | ) | |||||||||||
Interest income | 4,243 | 7,985 | 31,589 | 34,976 | ||||||||||||||||
Foreign exchange (losses)/ gains | (8,539 | ) | 89 | (4,540 | ) | (29,321 | ) | |||||||||||||
Other, net | 1,439 | 800 | — | — | ||||||||||||||||
Total other income/ (expenses), net | (6,250 | ) | 8,355 | (195,114 | ) | (2,183,922 | ) | |||||||||||||
Net income/(loss) and comprehensive income/(loss), before taxes | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,731,893 | ) | |||||||||||
US Source Income Taxes | 10 | — | — | — | (21,640 | ) | ||||||||||||||
Net income/(loss) and comprehensive income/(loss) | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||||||
(Loss)/ Earnings per common share, basic and diluted | 11 | $ | (0.28 | ) | $ | (0.30 | ) | $ | 0.31 | $ | (0.03 | ) | ||||||||
Weighted average number of common shares, basic and diluted | 2,400,000 | 2,400,000 | 2,662,383 | 67,735,195 |
ASSETS | December 31, | December 31, | ||||||||||
CURRENT ASSETS: | Note | 2021 | 2022 | |||||||||
Cash and cash equivalents | $ | 37,173,736 | $ | 142,373,151 | ||||||||
Restricted Cash | 7 | 2,382,732 | 1,684,269 | |||||||||
Accounts receivable trade, net | 8,224,357 | 13,322,984 | ||||||||||
Due from related parties | 3 | — | 2,995,682 | |||||||||
Inventories | 4,436,879 | 2,833,258 | ||||||||||
Prepaid expenses and other assets | 2,591,150 | 2,980,784 | ||||||||||
Deferred charges, net | 12 | 191,234 | 51,138 | |||||||||
Total current assets | 55,000,088 | 166,241,266 | ||||||||||
NON-CURRENT ASSETS: | ||||||||||||
Vessels, net | 3, 6 | 393,965,929 | 435,894,644 | |||||||||
Advances for vessel acquisition | 6 | 2,368,165 | — | |||||||||
Restricted cash | 7 | 3,830,000 | 8,250,000 | |||||||||
Due from related parties | 3 | 810,437 | 5,222,572 | |||||||||
Prepaid expenses and other assets | 2,075,999 | 6,825,999 | ||||||||||
Deferred charges, net | 4 | 4,862,824 | 7,978,961 | |||||||||
Fair value of acquired time charters | 5 | — | 2,507,506 | |||||||||
Total non-current assets | 407,913,354 | 466,679,682 | ||||||||||
Total assets | $ | 462,913,442 | $ | 632,920,948 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Current portion of long-term debt, net | 7 | 16,091,723 | 31,777,117 | |||||||||
Accounts payable | 5,042,575 | 9,237,447 | ||||||||||
Due to related parties | 3 | 4,507,569 | — | |||||||||
Deferred revenue | 3,927,833 | 2,583,880 | ||||||||||
Accrued liabilities | 4,459,696 | 7,763,325 | ||||||||||
Total current liabilities | 34,029,396 | 51,361,769 | ||||||||||
NON-CURRENT LIABILITIES: | ||||||||||||
Long-term debt, net | 7 | 85,949,676 | 120,064,119 | |||||||||
Total non-current liabilities | 85,949,676 | 120,064,119 | ||||||||||
Commitments and contingencies | 10 | |||||||||||
SHAREHOLDERS’ EQUITY: | ||||||||||||
Common shares, $0.001 par value; 1,950,000,000 shares authorized; 94,610,088 issued and outstanding as of December 31,2021, and December 31, 2022 | 8 | 94,610 | 94,610 | |||||||||
Preferred shares, $0.001 par value: 50,000,000 shares authorized; Series B Preferred Shares – 12,000 shares issued and outstanding as of December 31, 2021, and December 31, 2022 | 8 | 12 | 12 | |||||||||
Additional paid-in capital | 303,658,153 | 303,658,153 | ||||||||||
Retained earnings | 39,181,595 | 157,742,285 | ||||||||||
Total shareholders’ equity | 342,934,370 | 461,495,060 | ||||||||||
Total liabilities and shareholders’ equity | $ | 462,913,442 | $ | 632,920,948 |
Number of shares issued | ||||||||||||||||||||||||||||
Common shares | Preferred A shares | Preferred B shares | Par Value of Shares issued | Additional Paid-in capital | Retained earnings/ (Accumulated deficit) | Total Shareholders' Equity | ||||||||||||||||||||||
Balance, September 30, 2017 | 2,400,000 | 480,000 | 12,000 | $ | 2,892 | $ | 7,612,108 | $ | 878,644 | $ | 8,493,644 | |||||||||||||||||
- Net income | — | — | — | — | — | 980,938 | 980,938 | |||||||||||||||||||||
Balance, September 30, 2018 | 2,400,000 | 480,000 | 12,000 | $ | 2,892 | $ | 7,612,108 | $ | 1,859,582 | $ | 9,474,582 | |||||||||||||||||
- Net income | — | — | — | — | — | 276,442 | 276,442 | |||||||||||||||||||||
Balance, December 31, 2018 | 2,400,000 | 480,000 | 12,000 | 2,892 | 7,612,108 | 2,136,024 | 9,751,024 | |||||||||||||||||||||
- Issuance of common stock, net of commissions and issuance costs, pursuant to the ATM Program (Note 7) | 618,112 | — | — | 618 | 2,319,083 | — | 2,319,701 | |||||||||||||||||||||
- Issuance of common stock related to Series A Preferred Stock dividends (Note 7) | 300,000 | — | — | 300 | 967,500 | (967,800 | ) | — | ||||||||||||||||||||
- Series A Preferred Stock dividend waived accounted as deemed contribution (Note 7) | — | — | — | — | 3,379,589 | — | 3,379,589 | |||||||||||||||||||||
- Series A Preferred Stock dividend waived (Note 7) | — | — | — | — | (1,560,014 | ) | (1,819,575 | ) | (3,379,589 | ) | ||||||||||||||||||
- Gain on extinguishment of preferred stock pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses (Note 7) | — | — | — | — | 112,637 | — | 112,637 | |||||||||||||||||||||
- Preferred shareholders’ deemed dividend pursuant to the Series A Preferred Stock Amendment Agreement (Note 7) | — | — | — | — | (130,000 | ) | — | (130,000 | ) | |||||||||||||||||||
- Shareholder’s deemed contribution pursuant to the $7.5 Million Bridge Loan | — | — | — | — | 62,500 | — | 62,500 | |||||||||||||||||||||
- Net income | — | — | — | — | — | 1,088,149 | 1,088,149 | |||||||||||||||||||||
Balance, December 31, 2019 | 3,318,112 | 480,000 | 12,000 | 3,810 | 12,763,403 | 436,798 | 13,204,011 | |||||||||||||||||||||
- Issuance of common stock pursuant to the $5.0 Million Convertible Debentures (Notes 6,7) | 8,042,078 | — | — | 8,042 | 5,049,731 | — | 5,057,773 | |||||||||||||||||||||
- Issuance of common stock pursuant to the June Equity Offering, net of issuance costs (Note 7) | 59,082,686 | — | — | 59,083 | 18,539,169 | — | 18,598,252 | |||||||||||||||||||||
- Issuance of common stock pursuant to the July Equity Offering, net of issuance costs (Note 7) | 57,750,000 | — | — | 57,750 | 15,630,104 | — | 15,687,854 | |||||||||||||||||||||
- Issuance of common stock pursuant to the exercise of Class A Warrants (Note 7) | 3,019,500 | — | — | 3,019 | 1,053,806 | — | 1,056,825 | |||||||||||||||||||||
- Beneficial conversion feature pursuant to the issuance of the $5.0 Million Convertible Debentures (Note 6) | — | — | — | — | 532,437 | — | 532,437 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (1,753,533 | ) | (1,753,533 | ) | |||||||||||||||||||
Balance, December 31, 2020 | 131,212,376 | 480,000 | 12,000 | 131,704 | 53,568,650 | (1,316,735 | ) | 52,383,619 |
Note | Year Ended September 30, | Three Months Ended December 31, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||||||
Cash Flows provided by/(used in) Operating Activities: | ||||||||||||||||||||
Net income/(loss) | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) Operating activities: | ||||||||||||||||||||
Depreciation and amortization of deferred dry-docking costs | 4,5 | 637,611 | 177,378 | 897,171 | 1,904,963 | |||||||||||||||
Amortization and write-off of deferred finance charges | 14 | — | — | 6,628 | 599,087 | |||||||||||||||
Amortization of other deferred charges | — | — | 31,066 | 112,508 | ||||||||||||||||
Deferred revenue amortization | — | — | (119,006 | ) | (430,994 | ) | ||||||||||||||
Convertible debentures’ interest settled in common stock | 6,14 | — | — | — | 57,773 | |||||||||||||||
Amortization and write-off of convertible notes beneficial conversion feature | 6,14 | — | — | — | 532,437 | |||||||||||||||
Provision for doubtful accounts | 2 | — | — | — | 37,103 | |||||||||||||||
Shareholders' deemed interest contribution | — | — | 62,500 | — | ||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable trade | 340,152 | (668,520 | ) | 454,488 | (1,122,836 | ) | ||||||||||||||
Inventories | (14,111 | ) | 3,167 | (86,004 | ) | (571,284 | ) | |||||||||||||
Due from/to related parties | (166,815 | ) | 86,645 | (582,952 | ) | (797,805 | ) | |||||||||||||
Prepaid expenses and other assets | (15,537 | ) | (10,603 | ) | (320,055 | ) | (885,828 | ) | ||||||||||||
Dry-dock costs paid | (784,474 | ) | — | — | (1,308,419 | ) | ||||||||||||||
Other deferred charges | — | — | (198,364 | ) | 26,494 | |||||||||||||||
Accounts payable | (71,621 | ) | 210,888 | 129,201 | 584,527 | |||||||||||||||
Accrued liabilities | (3,437 | ) | 25,001 | 384,827 | 625,894 | |||||||||||||||
Deferred revenue | — | 47,708 | 564,313 | 46,104 | ||||||||||||||||
Net Cash provided by/(used in) Operating Activities | 902,706 | 148,106 | 2,311,962 | (2,343,809 | ) | |||||||||||||||
Cash flow used in Investing Activities: | ||||||||||||||||||||
Vessel acquisitions and other vessel improvements | 5 | — | — | (17,227,436 | ) | (35,472,173 | ) | |||||||||||||
Net cash used in Investing Activities | — | — | (17,227,436 | ) | (35,472,173 | ) | ||||||||||||||
Cash flows provided by Financing Activities: | ||||||||||||||||||||
Gross proceeds from issuance of common stock and warrants | 7 | — | — | 2,625,590 | 39,053,325 | |||||||||||||||
Common stock issuance expenses paid | — | — | (305,889 | ) | (3,710,394 | ) | ||||||||||||||
Proceeds from long-term debt and convertible debentures | 6 | — | — | 11,000,000 | 9,500,000 | |||||||||||||||
Repayment of long-term debt | 6 | — | — | — | (2,050,000 | ) | ||||||||||||||
Proceeds from related party debt | 6 | — | — | 12,500,000 | — | |||||||||||||||
Repayment of related party debt | 6 | — | — | (7,500,000 | ) | — | ||||||||||||||
Payment of deferred financing costs | — | — | (232,568 | ) | (608,985 | ) | ||||||||||||||
Net cash provided by Financing Activities | — | — | 18,087,133 | 42,183,946 | ||||||||||||||||
Net increase in cash, cash equivalents, and restricted cash | 902,706 | 148,106 | 3,171,659 | 4,367,964 | ||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year/period | 836,468 | 1,739,174 | 1,887,280 | 5,058,939 | ||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the year/period | $ | 1,739,174 | $ | 1,887,280 | $ | 5,058,939 | $ | 9,426,903 | ||||||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,739,174 | $ | 1,887,280 | $ | 4,558,939 | $ | 8,926,903 | ||||||||||||
Restricted cash | — | — | 500,000 | 500,000 | ||||||||||||||||
Cash, cash equivalents, and restricted cash | $ | 1,739,174 | $ | 1,887,280 | $ | 5,058,939 | 9,426,903 | |||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||||||||||
Cash paid for interest | — | — | — | 654,555 | ||||||||||||||||
Shares issued in connection with the settlement of the $5.0 Million Convertible Debentures | — | — | — | 5,057,773 | ||||||||||||||||
Shares issued in connection with the Series A Preferred Shares Settlement Agreement | — | — | 967,800 | — | ||||||||||||||||
Series A Preferred Stock dividend waived accounted as deemed contribution | — | — | 3,379,589 | — | ||||||||||||||||
Preferred shareholders’ deemed contribution pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses | — | — | 112,637 | — | ||||||||||||||||
Shareholder’s deemed contribution pursuant to the $7.5 Million Bridge Loan | — | — | 62,500 | — | ||||||||||||||||
Unpaid vessel acquisition and other vessel improvement costs (included in Accounts payable and Accrued liabilities) | — | — | 33,344 | 657,204 | ||||||||||||||||
Unpaid deferred financing costs (included in Accounts payable) | — | — | 17,000 | — | ||||||||||||||||
Unpaid deferred dry-dock costs (included in Accounts payable and Accrued liabilities) | — | — | — | 907,685 |
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||
Note | 2020 | 2021 | 2022 | |||||||||||||
REVENUES: | ||||||||||||||||
Time charter revenues | 5,12 | 12,487,692 | 111,900,699 | 163,872,159 | ||||||||||||
Voyage charter revenues | 12 | — | 15,002,012 | 51,805,097 | ||||||||||||
Pool revenues | 12 | $ | — | $ | 5,146,999 | $ | 46,424,742 | |||||||||
Total vessel revenues | 12,487,692 | 132,049,710 | 262,101,998 | |||||||||||||
EXPENSES: | ||||||||||||||||
Voyage expenses (including $29,769, $1,671,145 and $3,381,564 to related party for the years ended December 31, 2020, 2021 and 2022, respectively) | 3,13 | (584,705 | ) | (12,950,783 | ) | (33,040,690 | ) | |||||||||
Vessel operating expenses | 13 | (7,447,439 | ) | (39,203,471 | ) | (62,967,844 | ) | |||||||||
Management fees to related parties | 3 | (930,500 | ) | (6,744,750 | ) | (9,395,900 | ) | |||||||||
Depreciation and amortization | 4,6 | (1,904,963 | ) | (14,362,828 | ) | (25,829,713 | ) | |||||||||
Provision for doubtful accounts | 2 | (37,103 | ) | (2,483 | ) | (266,732 | ) | |||||||||
General and administrative expenses (including $400,000, $1,200,000, and $2,100,000 to related party for the years ended December 31, 2020, 2021 and 2022, respectively) | 14 | (1,130,953 | ) | (3,266,310 | ) | (7,043,937 | ) | |||||||||
Gain on sale of vessel | 6 | — | — | 3,222,631 | ||||||||||||
Total expenses | (12,035,663 | ) | (76,530,625 | ) | (135,322,185 | ) | ||||||||||
Operating income | 452,029 | 55,519,085 | 126,779,813 | |||||||||||||
OTHER INCOME/ (EXPENSES): | ||||||||||||||||
Interest and finance costs (including $305,000, $204,167 and $0 to related party for the years ended December 31, 2020, 2021 and 2022, respectively) | 3,7,15 | (2,189,577 | ) | (2,854,998 | ) | (8,584,054 | ) | |||||||||
Interest income | 34,976 | 75,123 | 1,558,103 | |||||||||||||
Foreign exchange (losses)/ gains | (29,321 | ) | 28,616 | 103,700 | ||||||||||||
Dividend on equity securities | — | — | 24,528 | |||||||||||||
Gain on sale of equity securities | — | — | 27,450 | |||||||||||||
Total other expenses, net | (2,183,922 | ) | (2,751,259 | ) | (6,870,273 | ) | ||||||||||
Net (loss)/income and comprehensive (loss)/income, before taxes | $ | (1,731,893 | ) | $ | 52,767,826 | $ | 119,909,540 | |||||||||
Income Taxes | 16 | (21,640 | ) | (497,339 | ) | (1,348,850 | ) | |||||||||
Net (loss)/income and comprehensive (loss)/income | $ | (1,753,533 | ) | $ | 52,270,487 | $ | 118,560,690 | |||||||||
Deemed dividend on Series A preferred shares | 8,11 | — | (11,772,157 | ) | — | |||||||||||
Net (loss)/income and comprehensive (loss)/income attributable to common shareholders | (1,753,533 | ) | 40,498,330 | 118,560,690 | ||||||||||||
(Loss)/Earnings per common share, basic | 11 | (0.26 | ) | 0.48 | 1.25 | |||||||||||
(Loss)/Earnings per common share, diluted | 11 | $ | (0.26 | ) | $ | 0.47 | $ | 1.25 | ||||||||
Weighted average number of common shares, basic | 6,773,519 | 83,923,435 | 94,610,088 | |||||||||||||
Weighted average number of common shares, diluted | 6,773,519 | 85,332,728 | 94,610,088 |
Number of shares issued | ||||||||||||||||||||||||||||
Common shares | Preferred A shares | Preferred B shares | Par Value of Shares issued | Additional Paid-in capital | Retained earnings/ (Accumulated deficit) | Total Shareholders’ Equity | ||||||||||||||||||||||
Balance, December 31, 2019 | 331,811 | 480,000 | 12,000 | 824 | 12,766,389 | 436,798 | 13,204,011 | |||||||||||||||||||||
- Issuance of common stock pursuant to the $5.0 Million Convertible Debentures (Note 7) | 804,208 | — | — | 804 | 5,056,969 | — | 5,057,773 | |||||||||||||||||||||
- Issuance of common stock pursuant to the 2020 June Equity Offering, net of issuance costs (Note 8) | 5,908,269 | — | — | 5,908 | 18,592,344 | — | 18,598,252 | |||||||||||||||||||||
- Issuance of common stock pursuant to the 2020 July Equity Offering, net of issuance costs (Note 8) | 5,775,000 | — | — | 5,775 | 15,682,079 | — | 15,687,854 | |||||||||||||||||||||
- Issuance of common stock pursuant to the exercise of Class A Warrants (Note 8) | 301,950 | — | — | 302 | 1,056,523 | — | 1,056,825 | |||||||||||||||||||||
- Beneficial conversion feature pursuant to the issuance of the $5.0 Million Convertible Debentures (Note 7) | — | — | — | — | 532,437 | — | 532,437 | |||||||||||||||||||||
Net loss and comprehensive loss | — | — | — | — | — | (1,753,533 | ) | (1,753,533 | ) | |||||||||||||||||||
Balance, December 31, 2020 | 13,121,238 | 480,000 | 12,000 | 13,613 | 53,686,741 | (1,316,735 | ) | 52,383,619 | ||||||||||||||||||||
- Issuance of common stock pursuant to the registered direct offerings (Note 8) | 42,405,770 | — | — | 42,406 | 156,824,134 | — | 156,866,540 | |||||||||||||||||||||
- Issuance of common stock pursuant to warrant exercises (Note 8) | 34,428,840 | — | — | 34,429 | 83,386,517 | — | 83,420,946 | |||||||||||||||||||||
- Issuance of common stock pursuant to the ATM Program (Note 8) | 4,654,240 | — | — | 4,654 | 12,388,124 | — | 12,392,778 | |||||||||||||||||||||
- Redemption of Series A Preferred Shares (Note 8) | (480,000 | ) | (480 | ) | (2,627,363 | ) | (11,772,157 | ) | (14,400,000 | ) | ||||||||||||||||||
Net income and comprehensive income | — | — | — | — | — | 52,270,487 | 52,270,487 | |||||||||||||||||||||
Balance, December 31, 2021 | 94,610,088 | — | 12,000 | 94,622 | 303,658,153 | 39,181,595 | 342,934,370 | |||||||||||||||||||||
- Net income and comprehensive income | — | — | — | — | — | 118,560,690 | 118,560,690 | |||||||||||||||||||||
Balance, December 31, 2022 | 94,610,088 | — | 12,000 | 94,622 | 303,658,153 | 157,742,285 | 461,495,060 |
Note | Year ended December 31, | |||||||||||||||
2020 | 2021 | 2022 | ||||||||||||||
Cash Flows (used in)/provided by Operating Activities: | ||||||||||||||||
Net (loss)/income | $ | (1,753,533 | ) | $ | 52,270,487 | $ | 118,560,690 | |||||||||
Adjustments to reconcile net(loss)/income to net cash (used in)/provided by Operating activities: | ||||||||||||||||
Depreciation and amortization | 4,6 | 1,904,963 | 14,362,828 | 25,829,713 | ||||||||||||
Amortization and write-off of deferred finance charges | 15 | 599,087 | 414,629 | 850,244 | ||||||||||||
Amortization of other deferred charges | 112,508 | — | — | |||||||||||||
Deferred revenue amortization | (430,994 | ) | — | — | ||||||||||||
Amortization of fair value of acquired charters | 5 | — | (1,940,000 | ) | 409,538 | |||||||||||
Interest settled in common stock | 7,15 | 57,773 | — | — | ||||||||||||
Amortization and write-off of convertible notes beneficial conversion feature | 7,15 | 532,437 | — | — | ||||||||||||
Provision for doubtful accounts | 2 | 37,103 | 2,483 | 266,732 | ||||||||||||
Gain on sale of vessel | 6 | — | — | (3,222,631 | ) | |||||||||||
Gain on sale of equity securities | — | — | (27,450 | ) | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable trade, net | (1,122,836 | ) | (6,924,622 | ) | (5,365,359 | ) | ||||||||||
Inventories | (571,284 | ) | (3,722,061 | ) | 1,603,621 | |||||||||||
Due from/to related parties | (797,805 | ) | 5,254,323 | (11,915,386 | ) | |||||||||||
Prepaid expenses and other assets | (885,828 | ) | (3,406,066 | ) | (4,515,365 | ) | ||||||||||
Other deferred charges | 26,494 | (191,234 | ) | 140,096 | ||||||||||||
Accounts payable | 584,527 | 3,070,287 | 4,649,549 | |||||||||||||
Accrued liabilities | 625,894 | 1,495,032 | 2,920,210 | |||||||||||||
Deferred revenue | 46,104 | 3,819,708 | (1,343,953 | ) | ||||||||||||
Dry-dock costs paid | (1,308,419 | ) | (3,730,467 | ) | (5,087,197 | ) | ||||||||||
Net Cash (used in)/provided by Operating Activities | (2,343,809 | ) | 60,775,327 | 123,753,052 | ||||||||||||
Cash flow used in Investing Activities: | ||||||||||||||||
Vessel acquisitions (including time charters attached) and other vessel improvements | 6 | (35,472,173 | ) | (346,273,252 | ) | (76,405,829 | ) | |||||||||
Advances for vessel acquisition | 6 | — | (2,367,455 | ) | — | |||||||||||
Net proceeds from sale of vessel | 6 | — | — | 12,641,284 | ||||||||||||
Purchase of equity securities | — | — | (60,750 | ) | ||||||||||||
Proceeds from sale of equity securities | — | — | 88,200 | |||||||||||||
Net cash used in Investing Activities | (35,472,173 | ) | (348,640,707 | ) | (63,737,095 | ) | ||||||||||
Cash flows provided by Financing Activities: | ||||||||||||||||
Gross proceeds from issuance of common stock and warrants | 8 | 39,053,325 | 265,307,807 | — | ||||||||||||
Common stock issuance expenses | (3,710,394 | ) | (12,527,747 | ) | (65,797 | ) | ||||||||||
Proceeds from long-term debt and convertible debentures | 7 | 9,500,000 | 97,190,000 | 77,500,000 | ||||||||||||
Redemption of Series A Preferred Shares | 8 | — | (14,400,000 | ) | — | |||||||||||
Repayment of long-term debt | 7 | (2,050,000 | ) | (6,878,500 | ) | (27,543,000 | ) | |||||||||
Repayment of related party debt | 3 | — | (5,000,000 | ) | — | |||||||||||
Payment of deferred financing costs | (608,985 | ) | (1,866,615 | ) | (986,208 | ) | ||||||||||
Net cash provided by Financing Activities | 42,183,946 | 321,824,945 | 48,904,995 | |||||||||||||
Net increase in cash, cash equivalents, and restricted cash | 4,367,964 | 33,959,565 | 108,920,952 | |||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | 5,058,939 | 9,426,903 | 43,386,468 | |||||||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 9,426,903 | $ | 43,386,468 | $ | 152,307,420 | ||||||||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||||||||||||||
Cash and cash equivalents | $ | 8,926,903 | $ | 37,173,736 | $ | 142,373,151 | ||||||||||
Restricted cash, current | — | 2,382,732 | 1,684,269 | |||||||||||||
Restricted cash, non-current | 500,000 | 3,830,000 | 8,250,000 | |||||||||||||
Cash, cash equivalents, and restricted cash | $ | 9,426,903 | $ | 43,386,468 | $ | 152,307,420 | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||||||
Cash paid for interest | 654,555 | 2,271,525 | 6,360,170 | |||||||||||||
Shares issued in connection with the settlement of the $5.0 Million Convertible Debentures | 5,057,773 | — | — | |||||||||||||
Unpaid capital raising costs (included in Accounts payable and Accrued Liabilities) | — | 99,797 | 34,000 | |||||||||||||
Unpaid vessel acquisition and other vessel improvement costs (included in Accounts payable and Accrued liabilities) | 657,204 | 1,592,001 | 204,763 | |||||||||||||
Unpaid advances for vessel acquisitions (included in Accounts payable and Accrued Liabilities) | — | 710 | — | |||||||||||||
Unpaid deferred dry-dock costs (included in Accounts payable and Accrued liabilities) | 907,685 | 1,113,547 | 1,850,568 | |||||||||||||
Unpaid deferred financing costs | — | 3,980 | 25,178 |
1. | Basis of Presentation and General |
Company | Country of incorporation | Vessel Name | DWT | Year Built | Delivery date to Castor |
Spetses Shipping Co. (“Spetses”) | Marshall Islands | Magic P | 76,453 | 2004 | February 2017 |
Bistro Maritime Co. (“Bistro”) | Marshall Islands | Magic Sun | 75,311 | 2001 | September 2019 |
Pikachu Shipping Co. (“Pikachu”) | Marshall Islands | Magic Moon | 76,602 | 2005 | October 2019 |
Bagheera Shipping Co. (“Bagheera”) | Marshall Islands | Magic Rainbow | 73,593 | 2007 | August 2020 |
Pocahontas Shipping Co. (“Pocahontas”) | Marshall Islands | Magic Horizon | 76,619 | 2010 | October 2020 |
Jumaru Shipping Co. (“Jumaru”) | Marshall Islands | Magic Nova | 78,833 | 2010 | October 2020 |
1. | Basis of Presentation and General information (continued): |
Company | Country of incorporation | Vessel Name | DWT | Year Built | Delivery date to Castor | |||||
1 | Spetses Shipping Co. (“Spetses”) | Marshall Islands | M/V Magic P | 76,453 | 2004 | February 2017 | ||||
2 | Bistro Maritime Co. (“Bistro”) | Marshall Islands | M/V Magic Sun | 75,311 | 2001 | September 2019 | ||||
3 | Pikachu Shipping Co. (“Pikachu”) | Marshall Islands | M/V Magic Moon | 76,602 | 2005 | October 2019 | ||||
4 | Bagheera Shipping Co. (“Bagheera”) | Marshall Islands | M/V Magic Rainbow | 73,593 | 2007 | August 2020 | ||||
5 | Pocahontas Shipping Co. (“Pocahontas”) | Marshall Islands | M/V Magic Horizon | 76,619 | 2010 | October 2020 | ||||
6 | Jumaru Shipping Co. (“Jumaru”) | Marshall Islands | M/V Magic Nova | 78,833 | 2010 | October 2020 | ||||
7 | Super Mario Shipping Co. (“Super Mario”) | Marshall Islands | M/V Magic Venus | 83,416 | 2010 | March 2021 | ||||
8 | Pumba Shipping Co. (“Pumba”) | Marshall Islands | M/V Magic Orion | 180,200 | 2006 | March 2021 | ||||
9 | Kabamaru Shipping Co. (“Kabamaru”) | Marshall Islands | M/V Magic Argo | 82,338 | 2009 | March 2021 | ||||
10 | Luffy Shipping Co. (“Luffy”) | Marshall Islands | M/V Magic Twilight | 80,283 | 2010 | April 2021 | ||||
11 | Liono Shipping Co. (“Liono”) | Marshall Islands | M/V Magic Thunder | 83,375 | 2011 | April 2021 | ||||
12 | Stewie Shipping Co. (“Stewie”) | Marshall Islands | M/V Magic Vela | 75,003 | 2011 | May 2021 | ||||
13 | Snoopy Shipping Co. (“Snoopy”) | Marshall Islands | M/V Magic Nebula | 80,281 | 2010 | May 2021 |
14 | Mulan Shipping Co. (“Mulan”) | Marshall Islands | M/V Magic Starlight | 81,048 | 2015 | May 2021 | ||||
15 | Cinderella Shipping Co. (“Cinderella”) | Marshall Islands | M/V Magic Eclipse | 74,940 | 2011 | June 2021 | ||||
16 | Rocket Shipping Co. (“Rocket”) (1) | Marshall Islands | M/T Wonder Polaris | 115,351 | 2005 | March 2021 | ||||
17 | Gamora Shipping Co. (“Gamora”) (1) | Marshall Islands | M/T Wonder Sirius | 115,341 | 2005 | March 2021 | ||||
18 | Starlord Shipping Co. (“Starlord”) (1) | Marshall Islands | M/T Wonder Vega | 106,062 | 2005 | May 2021 | ||||
19 | Hawkeye Shipping Co. (“Hawkeye”) (1) | Marshall Islands | M/T Wonder Avior | 106,162 | 2004 | May 2021 | ||||
20 | Mickey Shipping Co. (“Mickey”) | Marshall Islands | M/V Magic Callisto | 74,930 | 2012 | January 2022 | ||||
21 | Vision Shipping Co. (“Vision”) (1) | Marshall Islands | M/T Wonder Mimosa | 36,718 | 2006 | May 2021 | ||||
22 | Colossus Shipping Co. (“Colossus”) (1) | Marshall Islands | M/T Wonder Musica | 106,290 | 2004 | June 2021 | ||||
23 | Xavier Shipping Co. (“Xavier”) (1) | Marshall Islands | M/T Wonder Formosa | 36,660 | 2006 | June 2021 | ||||
24 | Songoku Shipping Co. (“Songoku”) | Marshall Islands | M/V Magic Pluto | 74,940 | 2013 | August 2021 | ||||
25 | Asterix Shipping Co. (“Asterix”) | Marshall Islands | M/V Magic Perseus | 82,158 | 2013 | August 2021 | ||||
26 | Johnny Bravo Shipping Co. (“Johnny Bravo”) | Marshall Islands | M/V Magic Mars | 76,822 | 2014 | September 2021 | ||||
27 | Garfield Shipping Co. (“Garfield”) | Marshall Islands | M/V Magic Phoenix | 76,636 | 2008 | October 2021 | ||||
28 | Drax Shipping Co. (“Drax”) (1) | Marshall Islands | M/T Wonder Bellatrix | 115,341 | 2006 | December 2021 | ||||
29 | Jerry Shipping Co. (“Jerry S”) | Marshall Islands | M/V Ariana A | 38,117 | 2005 | November 2022 | ||||
30 | Tom Shipping Co. (“Tom S”) | Marshall Islands | M/V Gabriela A | 38,121 | 2005 | November 2022 |
(1) | Contributed to Toro on the Distribution Date in connection with the Spin-Off (Note 18). |
Company | Country of incorporation | ||
1 | Tom Maritime Ltd. (“Tom M”) | Malta | |
2 | Jerry Maritime Ltd. (“Jerry M”) | Malta | |
3 | Toro Corp. (2) | Marshall Islands | |
4 | Containco Shipping Inc. | Marshall Islands |
(2) | Incorporated on July 29, 2022. At the Distribution Date, Toro served as the holding company to which the equity interests of the Aframax/LR2 and Handysize tanker subsidiaries and Elektra were contributed (see Note 18). |
1. | Basis of Presentation and General information (continued): |
1 | Castor Maritime SCR Corp. (“Castor SCR”) (3) | |
2 | Toro RBX Corp. (“Toro RBX”) (4) | |
3 | Elektra Shipping Co. (“Elektra”) (1)(5) |
(3) | Incorporated under the laws of the Marshall Islands on September 16, 2021, this entity serves as the Company’s subsidiaries’ cash manager of the Company’s subsidiaries with effect from November 1, 2021. |
(4) | Incorporated under the laws of the Marshall Islands on October 3, 2022, to serve, with effect from the Distribution Date, as the cash manager of Toro’s subsidiaries. |
(5) | Elektra Shipping Co., incorporated under the laws of the Marshall Islands, no longer owns any vessel following the sale of the M/T Wonder Arcturus on May 9, 2022, and delivery of such vessel to an unaffiliated third-party on July 15, 2022 (see also Note 6(a)). |
Charterer | Charterer | Year Ended September 30, 2018 | Three Months Ended December 31, 2018 | Year Ended December 31, 2019 | Year Ended December 31, 2020 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | Year Ended December 31, 2022 | |||||||||||||||||||||||
A | A | 24 | % | 100 | % | 63 | % | 34 | % | 34 | % | 20 | % | 18 | % | ||||||||||||||||
B | B | 52 | % | — | % | — | % | — | % | — | % | 12 | % | 15 | % | ||||||||||||||||
C | C | 17 | % | — | % | — | % | — | % | — | % | — | % | 10 | % | ||||||||||||||||
D | D | — | % | — | % | 13 | % | — | % | — | 11 | % | — | % | |||||||||||||||||
E | — | % | — | % | 12 | % | 24 | % | 24 | % | — | — | % | ||||||||||||||||||
F | — | % | — | % | 12 | % | — | % | |||||||||||||||||||||||
Total | Total | 93 | % | 100 | % | 100 | % | 58 | % | 58 | % | 43 | % | 43 | % |
2. | Significant Accounting Policies and Recent Accounting Pronouncements: |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Expressed in U.S. Dollars – except for share data unless otherwise stated) |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
2. | Significant Accounting Policies and Recent Accounting Pronouncements (continued): |
3. | Transactions with Related Parties: |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||
Management fees-related parties | ||||||||||||||||
Management fees – Pavimar (a) | $ | 111,480 | $ | 29,440 | $ | 212,300 | $ | 768,000 | ||||||||
Management fees – Castor Ships (d) | — | — | — | 162,500 | ||||||||||||
Included in Voyage expenses | ||||||||||||||||
Charter hire commissions (b),(d) | $ | — | $ | — | $ | 40,471 | $ | 29,769 | ||||||||
Included in Interest and finance costs | ||||||||||||||||
Interest expenses (c) – Thalassa | $ | — | $ | — | $ | 162,500 | $ | 305,000 | ||||||||
Included in General and administrative expenses | ||||||||||||||||
Administration fees – Castor Ships (d) | $ | — | $ | — | $ | — | $ | 400,000 | ||||||||
Included in Vessels’ cost | ||||||||||||||||
Sale & purchase commission – Castor Ships (d) | $ | — | $ | — | $ | — | $ | 138,600 |
December 31, 2019 | December 31, 2020 | |||||||
Assets: | ||||||||
Working capital advances granted to Pavimar (a) | $ | 759,386 | $ | 1,559,132 | ||||
Liabilities: | ||||||||
Related party debt (c) – Thalassa | $ | 5,000,000 | $ | 5,000,000 | ||||
Accrued loan interest (c) – Thalassa | 100,000 | 405,000 | ||||||
Voyage Commissions due to Castor Ships (d) | — | 1,941 |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2020 | 2021 | 2022 | ||||||||||
Management fees-related parties | ||||||||||||
Management fees – Castor Ships (a) | $ | 162,500 | $ | 1,983,750 | $ | 4,038,500 | ||||||
Management fees – Pavimar (b) | 768,000 | 4,761,000 | 5,357,400 | |||||||||
Included in Voyage expenses | ||||||||||||
Charter hire commissions – Castor Ships (a) | $ | 29,769 | $ | 1,671,145 | $ | 3,381,564 | ||||||
Included in Interest and finance costs | ||||||||||||
Interest expenses – Thalassa (c) | $ | 305,000 | $ | 204,167 | $ | — | ||||||
Included in General and administrative expenses | ||||||||||||
Administration fees – Castor Ships (a) | $ | 400,000 | $ | 1,200,000 | $ | 2,100,000 | ||||||
Included in Gain on sale of vessel | ||||||||||||
Sale & purchase commission – Castor Ships (a) | $ | — | $ | — | $ | 131,500 |
3. | Transactions with Related Parties (continued): |
December 31, 2021 | December 31, 2022 | |||||||
Assets: | ||||||||
Due from Castor Ships (a) – current | $ | — | $ | 330,706 | ||||
Due from Castor Ships (a) – non-current | — | 5,222,572 | ||||||
Due from Pavimar (b) – current | — | 2,664,976 | ||||||
Due from Pavimar (b) – non-current | 810,437 | — | ||||||
Liabilities: | ||||||||
Voyage commissions, management fees and other expenses due to Castor Ships (a) – current | $ | 597,684 | $ | — | ||||
Due to Pavimar (b) – current | 3,909,885 | — |
3. | Transactions with Related Parties (continued): |
3. | Transactions with Related Parties (continued): |
3. | Transactions with Related Parties (continued): |
4. | Deferred |
Dry-docking costs | Dry-docking costs | |||||||
Balance September 30, 2018 | $ | 443,394 | ||||||
Amortization | (102,324 | ) | ||||||
Balance December 31, 2018 | $ | 341,070 | ||||||
Amortization | (341,070 | ) | ||||||
Balance December 31, 2019 | $ | — | $ | — | ||||
Additions | 2,216,102 | 2,216,102 | ||||||
Amortization | (154,529 | ) | (154,529 | ) | ||||
Balance December 31, 2020 | $ | 2,061,573 | $ | 2,061,573 | ||||
Additions | 3,936,331 | |||||||
Amortization | (1,135,080 | ) | ||||||
Balance December 31, 2021 | $ | 4,862,824 | ||||||
Additions | 6,448,488 | |||||||
Less: Insurance claim recognized | (624,270 | ) | ||||||
Amortization and write-offs | (2,708,081 | ) | ||||||
Balance December 31, 2022 | $ | 7,978,961 |
5. | Fair Value of Acquired Time Charters: |
5. | Fair Value of Acquired Time Charters (continued): |
Vessels, |
Vessel Cost | Accumulated depreciation | Net Book Value | ||||||||||
Balance December 31, 2019 | 24,810,061 | (1,110,032 | ) | 23,700,029 | ||||||||
— Acquisitions, improvements, and other vessel costs | 36,096,033 | — | 36,096,033 | |||||||||
— Period depreciation | — | (1,750,434 | ) | (1,750,434 | ) | |||||||
Balance December 31, 2020 | 60,906,094 | (2,860,466 | ) | 58,045,628 | ||||||||
— Acquisitions, improvements, and other vessel costs | 299,460,599 | — | 299,460,599 | |||||||||
— Transfers from Advances for vessel acquisitions (b) | 49,687,450 | — | 49,687,450 | |||||||||
— Period depreciation | — | (13,227,748 | ) | (13,227,748 | ) | |||||||
Balance December 31, 2021 | 410,054,143 | (16,088,214 | ) | 393,965,929 | ||||||||
— Acquisitions, improvements, and other vessel costs | 72,100,835 | — | 72,100,835 | |||||||||
— Transfers from Advances for vessel acquisitions (b) | 2,368,165 | — | 2,368,165 | |||||||||
— Vessel disposal | (10,018,583 | ) | 599,930 | (9,418,653 | ) | |||||||
— Period depreciation | — | (23,121,632 | ) | (23,121,632 | ) | |||||||
Balance December 31, 2022 | 474,504,560 | (38,609,916 | ) | 435,894,644 |
6. | Vessels, net/ Advances for Vessel Acquisitions (continued): |
Vessel Name | Vessel Type | DWT | Year Built | Country of Construction | Purchase Price (in million) | Delivery Date |
2021 Acquisitions | ||||||
M/V Magic Venus | Kamsarmax | 83,416 | 2010 | Japan | $15.85 | 03/02/2021 |
M/T Wonder Polaris | Aframax LR2 | 115,351 | 2005 | S. Korea | $13.60 | 03/11/2021 |
M/V Magic Orion | Capesize | 180,200 | 2006 | Japan | $17.50 | 03/17/2021 |
M/V Magic Argo | Kamsarmax | 82,338 | 2009 | Japan | $14.50 | 03/18/2021 |
M/T Wonder Sirius | Aframax LR2 | 115,341 | 2005 | S. Korea | $13.60 | 03/22/2021 |
M/V Magic Twilight | Kamsarmax | 80,283 | 2010 | S. Korea | $14.80 | 04/09/2021 |
M/V Magic Thunder | Kamsarmax | 83,375 | 2011 | Japan | $16.85 | 04/13/2021 |
M/V Magic Vela | Panamax | 75,003 | 2011 | China | $14.50 | 05/12/2021 |
M/V Magic Nebula | Kamsarmax | 80,281 | 2010 | S. Korea | $15.45 | 05/20/2021 |
M/T Wonder Vega | Aframax | 106,062 | 2005 | S. Korea | $14.80 | 05/21/2021 |
M/V Magic Starlight | Kamsarmax | 81,048 | 2015 | China | $23.50 | 05/23/2021 |
M/T Wonder Avior | Aframax LR2 | 106,162 | 2004 | S. Korea | $12.00 | 05/27/2021 |
M/T Wonder Arcturus | Aframax LR2 | 106,149 | 2002 | S. Korea | $10.00 | 05/31/2021 |
M/T Wonder Mimosa | Handysize | 36,718 | 2006 | S. Korea | $7.25 | 05/31/2021 |
M/V Magic Eclipse | Panamax | 74,940 | 2011 | Japan | $18.48 | 06/07/2021 |
M/T Wonder Musica | Aframax LR2 | 106,290 | 2004 | S. Korea | $12.00 | 06/15/2021 |
M/T Wonder Formosa | Handysize | 36,660 | 2006 | S. Korea | $8.00 | 06/22/2021 |
M/V Magic Pluto | Panamax | 74,940 | 2013 | Japan | $19.06 | 08/06/2021 |
M/V Magic Perseus | Kamsarmax | 82,158 | 2013 | Japan | $21.00 | 08/09/2021 |
M/V Magic Mars | Panamax | 76,822 | 2014 | S. Korea | $20.40 | 09/20/2021 |
M/V Magic Phoenix | Panamax | 76,636 | 2008 | Japan | $18.75 | 10/26/2021 |
M/T Wonder Bellatrix | Aframax LR2 | 115,341 | 2006 | S. Korea | $18.15 | 12/23/2021 |
2022 Acquisitions | ||||||
M/V Magic Callisto | Panamax | 74,930 | 2012 | Japan | $23.55 | 01/04/2022 |
M/V Ariana A | Containership | 38,117 | 2005 | Germany | $25.00 | 11/23/2022 |
M/V Gabriela A | Containership | 38,121 | 2005 | Germany | $25.75 | 11/30/2022 |
6. | Vessels, net/ Advances forVessel Acquisitions (continued): |
(b) | Advances for vessel acquisitions: |
Vessel Cost | Accumulated depreciation | Net Book Value | ||||||||||
Balance September 30, 2018 | $ | 7,549,281 | $ | (478,877 | ) | $ | 7,070,404 | |||||
—Period depreciation | — | (75,054 | ) | (75,054 | ) | |||||||
Balance December 31, 2018 | $ | 7,549,281 | $ | (553,931 | ) | $ | 6,995,350 | |||||
— Acquisitions | 17,260,780 | — | 17,260,780 | |||||||||
—Yearly depreciation | — | (556,101 | ) | (556,101 | ) | |||||||
Balance December 31, 2019 | $ | 24,810,061 | $ | (1,110,032 | ) | $ | 23,700,029 | |||||
— Acquisitions and other improvements to fleet vessels | 36,096,033 | — | 36,096,033 | |||||||||
—Yearly depreciation | — | (1,750,434 | ) | (1,750,434 | ) | |||||||
Balance December 31, 2020 | 60,906,094 | (2,860,466 | ) | 58,045,628 |
Vessel Cost | ||||
Balance December 31, 2020 | $ | — | ||
— Advances for vessel acquisitions and other vessel pre-delivery costs | 52,055,615 | |||
—Transfer to Vessels, net (a) | (49,687,450 | ) | ||
Balance December 31, 2021 | $ | 2,368,165 | ||
—Transfer to Vessels, net (a) | (2,368,165 | ) | ||
Balance December 31, 2022 | $ | — |
Long-Term Debt: |
Year Ended | |||||||||
Loan facilities | Borrowers- Issuers | December 31, 2019 | December 31, 2020 | ||||||
$11.0 Million Alpha Bank Facility (a) | Spetses- Pikachu | $ | 11,000,000 | $ | 9,400,000 | ||||
$4.5 Million Chailease Financial Services Facility (b) | Bistro | — | 4,050,000 | ||||||
Total long-term debt | $ | 11,000,000 | $ | 13,450,000 | |||||
Less: Deferred financing costs | (242,940 | ) | (264,134 | ) | |||||
Total long-term debt, net of deferred finance costs | $ | 10,757,060 | 13,185,866 | ||||||
Presented: | |||||||||
Current portion of long-term debt | $ | 1,600,000 | $ | 2,200,000 | |||||
Less: Current portion of deferred finance costs | (77,105 | ) | (97,963 | ) | |||||
Current portion of long-term debt, net of deferred finance costs | $ | 1,522,895 | $ | 2,102,037 | |||||
Non-Current portion of long-term debt | 9,400,000 | 11,250,000 | |||||||
Less: Non-Current portion of deferred finance costs | (165,835 | ) | (166,171 | ) | |||||
Non-Current portion of long-term debt, net of deferred finance costs | $ | 9,234,165 | $ | 11,083,829 | |||||
Debt instruments from related party | |||||||||
$5.0 Million Term Loan Facility (Note 3(c)) | Castor | 5,000,000 | 5,000,000 | ||||||
Total long-term debt from related party | $ | 5,000,000 | $ | 5,000,000 |
Year Ended | |||||||||
Loan facilities | Borrowers | December 31, 2021 | December 31, 2022 | ||||||
$11.0 Million Term Loan Facility (a) | Spetses- Pikachu | $ | 7,800,000 | $ | 6,200,000 | ||||
$4.5 Million Term Loan Facility (b) | Bistro | 3,450,000 | 2,850,000 | ||||||
$15.29 Million Term Loan Facility (c) | Pocahontas- Jumaru | 13,877,000 | 11,993,000 | ||||||
$18.0 Million Term Loan Facility (d) | Rocket- Gamora | 16,300,000 | 13,250,000 | ||||||
$40.75 Million Term Loan Facility (e) | Liono-Snoopy-Cinderella-Luffy | 39,596,000 | 34,980,000 | ||||||
$23.15 Million Term Loan Facility (f) | Bagheera-Garfield | 22,738,500 | 17,800,500 | ||||||
$55.00 Million Term Loan Facility (g) | Mulan- Johnny Bravo-Songoku-Asterix-Stewie | — | 44,395,000 | ||||||
$22.5 Million Term Loan Facility (h) | Tom-Jerry | — | 22,250,000 | ||||||
Total long-term debt | $ | 103,761,500 | $ | 153,718,500 | |||||
Less: Deferred financing costs | (1,720,101 | ) | (1,877,264 | ) | |||||
Total long-term debt, net of deferred finance costs | $ | 102,041,399 | 151,841,236 | ||||||
Presented: | |||||||||
Current portion of long-term debt | $ | 16,688,000 | $ | 32,548,400 | |||||
Less: Current portion of deferred finance costs | (596,277 | ) | (771,283 | ) | |||||
Current portion of long-term debt, net of deferred finance costs | $ | 16,091,723 | $ | 31,777,117 | |||||
Non-Current portion of long-term debt | 87,073,500 | 121,170,100 | |||||||
Less: Non-Current portion of deferred finance costs | (1,123,824 | ) | (1,105,981 | ) | |||||
Non-Current portion of long-term debt, net of deferred finance costs | $ | 85,949,676 | $ | 120,064,119 |
7. | Long-Term Debt (continued): |
a. | $11.0 Million |
b. | $4.5 Million |
c. | $ |
7. | Long-Term Debt (continued): |
d. | $18.0 Million Term Loan Facility |
e. | $40.75 Million Term Loan Facility |
7. | Long-Term Debt (continued): |
f. | $23.15 Million Term Loan Facility |
g. | $55.0 Million Term Loan Facility |
7. | Long-Term Debt (continued): |
h. | $22.5 Million Term Loan Facility |
Year ending December 31, | Amount | |||
2021 | $ | 7,200,000 | ||
2022 | 2,200,000 | |||
2023 | 2,200,000 | |||
2024 | 5,200,000 | |||
2025 | 1,650,000 | |||
Total long-term debt (including related party debt) | $ | 18,450,000 |
Year ending December 31, | Amount | |||
2023 | $ | 32,548,400 | ||
2024 | 27,204,400 | |||
2025 | 33,915,400 | |||
2026 | 40,140,300 | |||
2027 | 19,910,000 | |||
Total long-term debt | $ | 153,718,500 |
Equity Capital Structure: |
(a) | Common Shares: |
8. | Equity Capital Structure (continued): |
Series | Description | Initial Issuance Date | Total Shares Outstanding | Liquidation Preference per Share (in dollars) | Par Value | Dividend Rate | Carrying Value December 31, 2019 and 2020 |
Series A | 9.75% Cumulative Perpetual Redeemable | 09/22/17 | 480,000 | $30 (1) | $480 | Effective January 1, 2022- 9.75% per annum of a value of $25 per share | $2,627,843 |
Series B | n/a | 09/22/17 | 12,000 | - | $12 | n/a | $12 |
Total | 492,000 | $492 | $2,627,855 |
Equity Capital Structure (continued): |
Equity Capital Structure (continued): |
(b) | Preferred Shares: |
8. | Equity Capital Structure (continued): |
Financial Instruments and Fair Value Disclosures: |
◾ | Cash and cash equivalents, restricted cash, |
◾ | Long-term debt:The |
Commitments and |
(a) | Commitments under Contracts for |
(b) | Commitments under long-term lease contracts |
Twelve-month period ending December 31, | Amount | |||
2023 | $ | 81,496,819 | ||
2024 | 2,142,100 | |||
Total | $ | 83,638,919 |
11. | (Loss)/Earnings Per Common Share: |
(Loss)/Earnings Per Common Share (continued): |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2020 | 2021 | 2022 | ||||||||||
Net (loss)/income and comprehensive (loss)/income | $ | (1,753,533 | ) | $ | 52,270,487 | $ | 118,560,690 | |||||
Less: Deemed dividend on Series A Preferred Shares | — | (11,772,157 | ) | — | ||||||||
Net (loss)/income and comprehensive (loss)/income available to common shareholders | (1,753,533 | ) | 40,498,330 | 118,560,690 | ||||||||
Weighted average number of common shares outstanding, basic | 6,773,519 | 83,923,435 | 94,610,088 | |||||||||
(Loss)/Earnings per common share, basic | (0.26 | ) | 0.48 | 1.25 | ||||||||
Plus: Dilutive effect of warrants | — | 1,409,293 | — | |||||||||
Weighted average number of common shares outstanding, diluted | 6,773,519 | 85,332,728 | 94,610,088 | |||||||||
(Loss)/Earnings per common share, diluted | $ | (0.26 | ) | $ | 0.47 | $ | 1.25 |
12. | Total Vessel Revenues: |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2020 | 2021 | 2022 | ||||||||||
Time charter revenues | 12,487,692 | 111,900,699 | 163,872,159 | |||||||||
Voyage charter revenues | — | 15,002,012 | 51,805,097 | |||||||||
Pool revenues | — | 5,146,999 | 46,424,742 | |||||||||
Total Vessel revenues | $ | 12,487,692 | $ | 132,049,710 | $ | 262,101,998 |
12. | Total Vessel Revenues (continued): |
13. | Vessel Operating Expenses and Voyage Expenses: |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
Vessel Operating Expenses | 2020 | 2021 | 2022 | |||||||||
Crew & crew related costs | 3,753,578 | 21,532,311 | 33,882,972 | |||||||||
Repairs & maintenance, spares, stores, classification, chemicals & gases, paints, victualling | 2,314,260 | 9,828,139 | 16,182,372 | |||||||||
Lubricants | 429,967 | 2,375,901 | 3,534,957 | |||||||||
Insurances | 507,885 | 3,126,169 | 4,721,191 | |||||||||
Tonnage taxes | 131,674 | 592,701 | 1,228,678 | |||||||||
Other | 310,075 | 1,748,250 | 3,417,674 | |||||||||
Total Vessel operating expenses | $ | 7,447,439 | $ | 39,203,471 | $ | 62,967,844 |
13. | Vessel Operating Expenses and Voyage Expenses (continued): |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
Voyage expenses | 2020 | 2021 | 2022 | |||||||||
Brokerage commissions | 158,538 | 1,733,639 | 3,504,453 | |||||||||
Brokerage commissions- related party | 29,769 | 1,671,145 | 3,381,564 | |||||||||
Port & other expenses | 173,645 | 4,520,584 | 6,652,844 | |||||||||
Bunkers consumption | 321,252 | 7,742,450 | 23,143,236 | |||||||||
Gain on bunkers | (98,499 | ) | (2,717,035 | ) | (3,641,407 | ) | ||||||
Total Voyage expenses | $ | 584,705 | $ | 12,950,783 | $ | 33,040,690 |
14. | General and Administrative Expenses: |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2020 | 2021 | 2022 | ||||||||||
Chief Executive and Chief Financial Officer and directors’ compensation | $ | 29,000 | $ | 48,000 | $ | 72,000 | ||||||
Professional fees and other expenses | 701,953 | 2,018,310 | 4,871,937 | |||||||||
Administration fees-related party (Note 3(a)) | 400,000 | 1,200,000 | 2,100,000 | |||||||||
Total | $ | 1,130,953 | $ | 3,266,310 | $ | 7,043,937 |
15. | Interest and Finance Costs: |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||
2020 | 2021 | 2022 | ||||||||||
Interest on long-term debt | $ | 668,152 | $ | 2,028,676 | $ | 7,535,258 | ||||||
Interest on long-term debt – related party (Note 3 (c)) | 305,000 | 204,167 | — | |||||||||
Interest on convertible debt – non cash | 57,773 | — | — | |||||||||
Amortization and write-off of deferred finance charges | 599,087 | 414,629 | 850,244 | |||||||||
Amortization and write-off of convertible notes beneficial conversion features | 532,437 | — | — | |||||||||
Other finance charges | 27,128 | 207,526 | 198,552 | |||||||||
Total | $ | 2,189,577 | $ | 2,854,998 | $ | 8,584,054 |
16. | Income Taxes: |
17. | Segment Information: |
17. | Segment Information (continued): |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||
Net income/(loss) and comprehensive income/(loss) | $ | 980,938 | $ | 276,442 | $ | 1,088,149 | $ | (1,753,533 | ) | |||||||
Less: Cumulative dividends on Series A Preferred Shares | (1,646,775 | ) | (992,745 | ) | (372,022 | ) | — | |||||||||
Plus: Gain on extinguishment of preferred stock pursuant to the Series A Preferred Stock Amendment Agreement, net of expenses | — | — | 112,637 | — | ||||||||||||
Net income/ (loss) and comprehensive income/ (loss) available to common shareholders | (665,837 | ) | (716,303 | ) | 828,764 | (1,753,533 | ) | |||||||||
Weighted average number of common shares outstanding, basic and diluted | 2,400,000 | 2,400,000 | 2,662,383 | 67,735,195 | ||||||||||||
(Loss)/Earnings per common share, basic and diluted | $ | (0.28 | ) | $ | (0.30 | ) | $ | 0.31 | $ | (0.03 | ) |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
Vessel Operating Expenses | 2018 | 2018 | 2019 | 2020 | ||||||||||||
Crew & crew related costs | 983,985 | 239,610 | 1,396,477 | 3,753,578 | ||||||||||||
Repairs & maintenance, spares, stores, classification, chemicals & gases, paints, victualling | 415,306 | 124,354 | 868,915 | 2,314,260 | ||||||||||||
Lubricants | 95,835 | 19,750 | 153,969 | 429,967 | ||||||||||||
Insurances | 133,090 | 31,869 | 189,781 | 507,885 | ||||||||||||
Tonnage taxes | 40,345 | 8,583 | 50,553 | 131,674 | ||||||||||||
Other | 59,209 | 8,378 | 143,296 | 310,075 | ||||||||||||
Total Vessel operating expenses | $ | 1,727,770 | $ | 432,544 | $ | 2,802,991 | $ | 7,447,439 |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
Voyage expenses | 2018 | 2018 | 2019 | 2020 | ||||||||||||
Brokerage commissions | 90,194 | 14,375 | 87,179 | 188,307 | ||||||||||||
Port & other expenses | 57,042 | 5,181 | 46,100 | 173,645 | ||||||||||||
(Gain)/loss on bunkers | (109,863 | ) | — | 127,900 | 222,753 | |||||||||||
Total voyage expenses | $ | 37,373 | $ | 19,556 | $ | 261,179 | $ | 584,705 |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||
Audit fees | $ | 91,700 | $ | 20,000 | $ | 119,535 | $ | 129,420 | ||||||||
Chief Executive and Chief Financial Officer and directors’ compensation | 12,000 | 3,000 | 12,000 | 29,000 | ||||||||||||
Other professional fees | 5,533 | (46 | ) | 247,242 | 572,533 | |||||||||||
Administration fees-related party | - | - | - | 400,000 | ||||||||||||
Total | $ | 109,233 | $ | 22,954 | $ | 378,777 | $ | 1,130,953 |
Year ended December 31, | Year ended December 31, | Year ended December 31, | ||||||||||||||||||||||||||||||||||||||
2020 | 2021 | 2022 | ||||||||||||||||||||||||||||||||||||||
Dry bulk segment | Dry bulk segment | Aframax/LR2 tanker segment | Handysize tanker segment | Total | Dry bulk segment | Aframax/LR2 tanker segment | Handysize tanker segment | Container ship segment | Total | |||||||||||||||||||||||||||||||
- Time charter revenues | $ | 12,487,692 | $ | 102,785,442 | $ | 9,115,257 | $ | — | $ | 111,900,699 | $ | 148,930,997 | $ | 13,656,029 | $ | — | $ | 1,285,133 | $ | 163,872,159 | ||||||||||||||||||||
- Voyage charter revenues | — | — | 15,002,012 | — | 15,002,012 | — | 51,805,097 | — | — | 51,805,097 | ||||||||||||||||||||||||||||||
- Pool revenues | — | — | 2,442,144 | 2,704,855 | 5,146,999 | — | 30,787,089 | 15,637,653 | — | 46,424,742 | ||||||||||||||||||||||||||||||
Total vessel revenues | $ | 12,487,692 | $ | 102,785,442 | $ | 26,559,413 | $ | 2,704,855 | $ | 132,049,710 | $ | 148,930,997 | $ | 96,248,215 | $ | 15,637,653 | $ | 1,285,133 | $ | 262,101,998 | ||||||||||||||||||||
Voyage expenses (including charges from related party) | (584,705 | ) | (1,891,265 | ) | (11,003,925 | ) | (55,593 | ) | (12,950,783 | ) | (3,649,943 | ) | (29,100,348 | ) | (219,066 | ) | (71,333 | ) | (33,040,690 | ) | ||||||||||||||||||||
Vessel operating expenses | (7,447,439 | ) | (26,841,600 | ) | (9,776,724 | ) | (2,585,147 | ) | (39,203,471 | ) | (40,697,898 | ) | (17,386,009 | ) | (4,322,281 | ) | (561,656 | ) | (62,967,844 | ) | ||||||||||||||||||||
Management fees to related parties | (930,500 | ) | (4,890,900 | ) | (1,433,950 | ) | (419,900 | ) | (6,744,750 | ) | (6,481,000 | ) | (2,167,000 | ) | (666,500 | ) | (81,400 | ) | (9,395,900 | ) | ||||||||||||||||||||
Depreciation and amortization | (1,904,963 | ) | (10,528,711 | ) | (3,087,764 | ) | (746,353 | ) | (14,362,828 | ) | (18,039,966 | ) | (5,889,352 | ) | (1,405,124 | ) | (495,271 | ) | (25,829,713 | ) | ||||||||||||||||||||
Provision for doubtful accounts | (37,103 | ) | (2,483 | ) | — | — | (2,483 | ) | — | (266,732 | ) | — | — | (266,732 | ) | |||||||||||||||||||||||||
Gain on sale of vessel | — | — | — | — | — | — | 3,222,631 | — | — | 3,222,631 | ||||||||||||||||||||||||||||||
Segments operating income/(loss) | $ | 1,582,982 | $ | 58,630,483 | $ | 1,257,050 | $ | (1,102,138 | ) | $ | 58,785,395 | $ | 80,062,190 | $ | 44,661,405 | $ | 9,024,682 | $ | 75,473 | $ | 133,823,750 | |||||||||||||||||||
Interest and finance costs | (810,317 | ) | (2,631,318 | ) | (8,545,149 | ) | ||||||||||||||||||||||||||||||||||
Interest income | 9,387 | 11,651 | 1,485,368 | |||||||||||||||||||||||||||||||||||||
Foreign exchange (losses)/gains | (28,455 | ) | 31,325 | 99,134 | ||||||||||||||||||||||||||||||||||||
Less: Unallocated corporate general and administrative expenses | (1,130,953 | ) | (3,266,310 | ) | (7,043,937 | ) | ||||||||||||||||||||||||||||||||||
Less: Corporate Interest and finance costs | (1,379,260 | ) | (223,680 | ) | (38,905 | ) | ||||||||||||||||||||||||||||||||||
Less: Corporate Interest income | 25,589 | 63,472 | 72,735 | |||||||||||||||||||||||||||||||||||||
Less: Corporate exchange (losses)/ gains | (866 | ) | (2,709 | ) | 4,566 | |||||||||||||||||||||||||||||||||||
Dividend on equity securities | — | — | 24,528 | |||||||||||||||||||||||||||||||||||||
Profit from equity securities | — | — | 27,450 | |||||||||||||||||||||||||||||||||||||
Net (loss)/income and comprehensive (loss)/income, before taxes | $ | (1,731,893 | ) | $ | 52,767,826 | $ | 119,909,540 |
Year Ended December 31, 2021 | Year Ended December 31, 2022 | |||||||
Dry bulk segment | $ | 314,407,704 | $ | 339,599,683 | ||||
Aframax tanker segment | 104,953,507 | 134,093,678 | ||||||
Handysize tanker segment | 19,093,379 | 23,385,458 | ||||||
Containership segment | — | 52,850,927 | ||||||
Cash and cash equivalents (1) | 23,950,795 | 82,336,406 | ||||||
Prepaid expenses and other assets (1) | 508,057 | 654,796 | ||||||
Total consolidated assets | $ | 462,913,442 | $ | 632,920,948 |
(1) | Refers to assets of other, non-vessel owning, entities included in the consolidated financial statements. |
18. | Subsequent Events: |
Year ended September 30, | Three months ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||
2018 | 2018 | 2019 | 2020 | |||||||||||||
Interest on long-term debt | $ | - | $ | - | $ | 47,585 | $ | 668,152 | ||||||||
Interest on long-term debt – related party (Note 3 (c)) | - | - | 162,500 | 305,000 | ||||||||||||
Interest on convertible debt – non cash (Note 6) | - | - | - | 57,773 | ||||||||||||
Amortization and write-off of deferred finance charges | - | - | 6,628 | 599,087 | ||||||||||||
Amortization and write-off of convertible notes beneficial conversion features | - | - | - | 532,437 | ||||||||||||
Other finance charges | 3,393 | 519 | 5,450 | 27,128 | ||||||||||||
Total | $ | 3,393 | $ | 519 | $ | 222,163 | $ | 2,189,577 |