ATHENS, GREECE, August 10, 2023 - IMPERIAL PETROLEUM INC. (NASDAQ: IMPP, the “Company”), a ship-owning company providing petroleum products, crude oil and dry bulk seaborne transportation services, announced today its unaudited financial and operating results for the second quarter and six months ended June 30, 2023.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

 

  • Fleet operational utilization of 75.4% in Q2 23’ with 28 days of technical off hire and 129 days of vessel repositioning.
  • 5% of fleet calendar days equivalent to 734 days in Q2 23’ were dedicated to spot activity.
  • Revenues of $59.0 million in Q2 23’ - up $47.7 million or 422.1% from Q2 22’.
  • Net income of $16.8 million in Q2 23’ up by $16.7 million compared to Q2 22’.
  • Adjusted Net income[1] of $26.6 million in Q2 23’ up by $26.5 million compared to Q2 22’ or 26,500%.
  • Adjusted EBITDA1 of $30.8 million in Q2 23’ up by $27.8 million or 926.7% from Q2 22’.
  • Cash and cash equivalents including time deposits of $98.6 million as of June 30, 2023 – a strong cash balance in spite of utilizing within Q2 23’ an amount of $45.9 million for the repayment of all outstanding loans.
  • As of June 30, 2023 Imperial Petroleum has zero debt on its balance sheet.
  • In the 1H 23’ the Company generated a Net Income of $52.6 million corresponding to a basic EPS of $3.17.
  • In the 1H 23’ the Company generated an Adjusted Net Income of $62.6 million corresponding to an Adjusted basic EPS1 of $3.79.
  • Spin off of two of our four Handysize drybulk carriers to a separate listed entity called C3is Inc. on June 21, 2023.
  • Imperial Petroleum retains an interest in C3is Inc. through ownership of 600,000 Series A Convertible Preferred Shares of C3is Inc.
  • In July 2023, the Company sold its Aframax tanker to C3is Inc. for a consideration of $43 million.

Second Quarter 2023 Results:

  • Revenues for the three months ended June 30, 2023 amounted to $59.0 million, an increase of $47.7 million, or 422.1%, compared to revenues of $11.3 million for the three months ended June 30, 2022, primarily due to the increase of our average fleet by approximately six vessels leading to an increase in fleet calendar days by 97.8% (530 days) and an increase of tanker market rates leading to a rise in fleet daily revenue by approximately $35,500.
  • Voyage expenses and vessels’ operating expenses fo r the three months ended June 30, 2023 were $19.3 million and $7.0 million, respectively, compared to $4.4 million and $3.3 million, respectively, for the three months ended June 30, 2022. The $14.9 million increase in voyage expenses is mainly due to the increase in the spot days of our fleet by 541 days (280.3%) and to our fleet- wide daily port expenses by approximately $3,750 due to a higher number of spot voyages. The $3.7 million increase in vessels’ operating expenses was primarily due to the increase in the average number of our vessels.
  • Drydocking costs for the three months ended June 30, 2023 and 2022 was $0.7 million and nil, respectively. This increase is due to the fact that during the three months ended June 30, 2023 one of our Handysize drybulk carriers the Eco Glorieuse underwent drydocking.
  • General and administrative costs for the three months ended June 30, 2023 and 2022 were $1.5 million and $0.4 million, respectively. This increase is mainly attributed to a $0.8 million increase in stock-based compensation costs along with an increase in reporting costs related to our spin off project.
  • Depreciation for the three months ended June 30, 2023 and 2022 was $4.6 million and $2.7 million, respectively. The change is attributable to the increase in the average number of our vessels.
  • Interest and finance costs for the three months ended June 30, 2023 and 2022 were $0.5 million and $0.2 million, respectively. During the three months ended June 30, 2023 the Company repaid all of its outstanding debt. The $0.5 million charges for the three months ended June 30, 2023 relate mainly to the full amortization of loan related charges following the repayment of the Company’s outstanding debt.
  • Interest income for the three months ended June 30, 2023 and 2022 was $0.9 million and $0.04 million, respectively. The increase is attributed to our time deposits during the period at favourable time deposit rates.
  • Impairment loss for the three months period ended June 30, 2023 stood at $9.0 million, and related to the spin-off of two of four drybulk carriers to C3is Inc. The decline of drybulk vessels’ fair values compared to one year ago when these vessels were acquired resulted in the incurrence of impairment loss.
  • As a result of the above, for the three months ended June 30, 2023, the Company reported net income of $16.8 million, compared to net income of $0.1 million for the three months ended June 30, 2022. Dividends paid on Series A Preferred Shares amounted to $0.4 million for the three months ended June 30, 2023. The weighted average number of shares of common stock outstanding, basic, for the three months ended June 30, 2023 was 16.8 million. Earnings per share, basic and diluted, for the three months ended June 30, 2023 amounted to $0.91 and $0.73, respectively, compared to a loss per share, basic and diluted, of $0.44 and $0.44, respectively for the three months ended June 30, 2022.
  • Adjusted net income was $26.6 million corresponding to an Adjusted EPS, basic of $1.46 for the three months ended June 30, 2023 compared to an Adjusted net income of $0.1 million corresponding to an Adjusted loss per share, basic, of $0.44 for the same period of last year.
  • EBITDA for the three months ended June 30, 2023 amounted to $21.0 million, while Adjusted EBITDA for the three months ended June 30, 2023 amounted to $30.8 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 11.8 vessels were owned by the Company during the three months ended June 30, 2023 compared to 6.0 vessels for the same period of 2022.

Six Months 2023 Results:

  • Revenues for the six months ended June 30, 2023 amounted to $124.5 million, an increase of $108.0 million, or 654.5%, compared to revenues of $16.5 million for the six months ended June 30, 2022, primarily due to the increase in the average number of our vessels and improved market conditions resulting in higher rates particularly in the spot tanker market.
  • Voyage expenses and vessels’ operating expenses for the six months ended June 30, 2023 were $36.1 million and $13.9 million, respectively, compared to $4.9 million and $5.1 million, respectively, for the six months ended June 30, 2022. The $31.2 million increase in voyage expenses is mainly due to the increase in the spot days of our fleet by 1,009 days (458.6%). The $8.8 million increase in vessels’ operating expenses was primarily due to the increase in the average number of vessels in our fleet by approximately six vessels.
  • Drydocking costs for the six months ended June 30, 2023 and 2022 were $1.3 million and nil, respectively. This increase is due to the fact that during the six months ended June 30, 2023 two of our Handysize drybulk carriers underwent drydocking.
  • General and administrative costs for the six months ended June 30, 2023 and 2022 were $2.5 million and $0.5 million, respectively. This rise is mainly attributed to $1.1 million of stock-based compensation expense along with a rise in reporting costs related to our spin off project.
  • Depreciation for the six months ended June 30, 2023 was $8.7 million, a $3.8 million increase from $4.9 million for the same period of last year, due to the increase in the average number of our vessels.
  • Interest and finance costs for the six months ended June 30, 2023 and 2022 were $1.8 million and $0.5 million, respectively. The $1.8 million of costs for the six months ended June 30, 2023 relate mainly to $1.3 million of interest charges incurred up to the full repayment of all outstanding loans concluded in April 2023 along with the full amortization of $0.5 million of loan related charges following the repayment of the Company’s outstanding debt.
  • Interest income for the six months ended June 30, 2023 and 2022 was $2.1 million and $0.04 million, respectively. The increase is attributed to our time deposits during the period at favourable time deposit rates.
  • Impairment loss for the six months period ended June 30, 2023 stood at $9.0 million, and related to the spin-off of two of four drybulk carriers to C3is Inc. The decline of drybulk vessels’ fair values compared to one year ago when these vessels were acquired resulted in the incurrence of impairment loss.
  • As a result of the above, the Company reported net income for the six months ended June 30, 2023 of $52.6 million, compared to a net income of $0.3 million for the six months ended June 30, 2022. The weighted average number of shares outstanding, basic, for the six months ended June 30, 2023 was 15.9 million. Earnings per share, basic and diluted, for the six months ended June 30, 2023 amounted to $3.17 and $2.78, respectively compared to a loss per share, basic and diluted, of $0.81 and $0.81 for the six months ended June 30, 2022.
  • Adjusted Net Income was $62.6 million corresponding to an Adjusted EPS, basic of $3.79 for the six months ended June 30, 2023 compared to adjusted net income of $0.3 million, or $0.81 loss per share, basic, for the same period of last year.
  • EBITDA for the six months ended June 30, 2023 amounted to $60.9 million while Adjusted EBITDA for the six months ended June 30, 2023 amounted to $71.0 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 10.9 vessels were owned by the Company during the six months ended June 30, 2023 compared to 5.0 vessels for the same period of 2022.
  • As of June 30, 2023, cash and cash equivalents including time deposits amounted to $98.6 million and total debt amounted to nil. During the six months ended June 30, 2023 debt repayments amounted to $70.4 million.

Fleet Employment Table

 

As of August 10, 2023, the profile and deployment of our fleet is the following:

 

 

                                                         

Name

  

Year
Built

 

  

Country
Built

 

  

Vessel Size
(dwt)

 

  

Vessel
Type

 

  

Employment
Status

 

  

Daily Charter
Rate

 

  

Expiration of
Charter(1)

 

Tankers

  

     

  

     

  

     

  

     

  

     

  

     

  

     

Magic Wand

  

 

2008

 

  

 

Korea

 

  

 

47,000

 

  

 

MR product tanker

 

  

 

Spot

                 

Clean Thrasher

  

 

2008

 

  

 

Korea

 

  

 

47,000

 

  

 

MR product tanker

 

  

 

Spot

 

  

     

  

     

Clean Sanctuary (ex. Falcon Maryam)

  

 

2009

 

  

 

Korea

 

  

 

46,000

 

  

 

MR product tanker

 

  

 

Spot

 

  

     

  

     

Clean Nirvana

  

 

2008

 

  

 

Korea

 

  

 

50,000

 

  

 

MR product tanker

 

  

 

Spot

 

  

     

  

     

Clean Justice

  

 

2011

 

  

 

Japan

 

  

 

47,000

 

  

 

MR product tanker

 

  

 

Spot

 

  

     

  

     

Suez Enchanted

  

 

2007

 

  

 

Korea

 

  

 

160,000

 

  

 

Suezmax tanker

 

  

 

Spot

 

  

     

  

     

Suez Protopia

  

 

2008

 

  

 

Korea

 

  

 

160,000

 

  

 

Suezmax tanker

 

  

 

Spot

 

  

     

  

     

Drybulk Carriers

  

     

  

     

  

     

  

     

  

     

  

     

  

     

Eco Wildfire

  

 

2013

 

  

 

Japan

 

  

 

33,000

 

  

 

Handysize drybulk

 

  

 

Spot

 

  

     

  

     

Glorieuse

  

 

2012

 

  

 

Japan

 

  

 

38,000

 

  

 

Handysize drybulk

 

  

 

Time Charter

 

  

 

     $13,500

 

  

 

October 2023

 

Fleet Total

  

     

  

     

  

 

628,000 dwt

 

  

     

  

     

  

     

  

     

 

(1)

Earliest date charters could expire.

 

CEO Harry Vafias Commented

Within the first six months of 2023 our company managed to generate an adjusted net income of $62.6 million corresponding to a Basic Earnings Per Share of $3.79 which is well above our current share price. Compared to the first six months of 2022 our increase in net income was in the order of 20,500%. Our strong performance is unquestionable but so is the fact that we are significantly undervalued. We have a fleet   valued at about $225 million, zero debt and about $100 million in cash. The outlook for the tanker market remains favourable whereas there might be opportunities in the dry bulk sector as dry ship values are dropping. We will continue to capture this favourable momentum generating strong results while growing our Company further.

 

Conference Call details:

 

On August 10, 2023 at 11:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

 

 

Online Registration:

 

Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

https://register.vevent.com/register/BI77731313e63f47b6b978bda7d8b7ca62

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the IMPERIAL PETROLEUM INC. website (www.ImperialPetro.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

 

      

About IMPERIAL PETROLEUM INC.         

Imperial Petroleum Inc. is a ship-owning - company providing petroleum products, crude oil and drybulk seaborne transportation services. The Company owns a total of nine vessels; five M.R. product tankers, two Suezmax tankers and two Handysize dry bulk carriers with a total capacity of 628,000 deadweight tons (dwt). Imperial Petroleum Inc.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP”, respectively.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although IMPERIAL PETROLEUM INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the impact of any lingering impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in IMPERIAL PETROLEUM INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, performance of counterparty to our vessel sale agreement, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange Commission.

 

 

Fleet List and Fleet Deployment                                          

For information on our fleet and further information:

Visit our website at www.ImperialPetro.com

 

Company Contact:

Fenia Sakellaris

IMPERIAL PETROLEUM INC.
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet Data:

The following key indicators highlight the Company’s operating performance during the periods ended June 30, 2022 and June 30, 2023.

 FLEET DATA

Q2 2022

Q2 2023

6M 2022

6M 2023

Average number of vessels (1)

6.0

11.8

5.0

10.9

Period end number of owned vessels in fleet

8

10

8

10

Total calendar days for fleet (2)

542

1,072

906

1,981

Total voyage days for fleet (3)

539

1,044

903

1,947

Fleet utilization (4)

99.4%

97.4%

99.7%

98.3%

Total charter days for fleet (5)

346

310

683

718

Total spot market days for fleet (6)

193

734

220

1,229

Fleet operational utilization (7)

82.5%

75.4%

89.1%

79.8%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

 

 

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income before impairment loss and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, and share based compensation.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries.  In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

(Expressed in United States Dollars,
except number of shares)

Second Quarter Ended June 30th,

Six Months Period Ended June 30th,

 

2022

2023

2022

2023

Net Income - Adjusted Net Income

       

Net income

85,719

16,826,485

304,101

52,550,587

Plus impairment loss

--

8,996,023

--

8,996,023

Plus share based compensation

--

789,648

--

1,091,189

Adjusted Net Income

85,719

26,612,156

304,101

62,637,799

         

Net income - EBITDA

       

Net income

85,719

16,826,485

304,101

52,550,587

Plus interest and finance costs

243,901

459,166

452,915

1,810,769

Less interest income

(44,140)

(851,930)

(44,140)

(2,131,146)

Plus depreciation

2,734,165

4,601,209

4,902,831

8,690,061

EBITDA

3,019,645

21,034,930

5,615,707

60,920,271

         

Net income - Adjusted  EBITDA

       

Net income

85,719

16,826,485

304,101

52,550,587

Plus impairment loss

--

8,996,023

--

8,996,023

Plus share based compensation

--

789,648

--

1,091,189

Plus interest and finance costs

243,901

459,166

452,915

1,810,769

Less interest income

(44,140)

(851,930)

(44,140)

(2,131,146)

Plus depreciation

2,734,165

4,601,209

4,902,831

8,690,061

Adjusted EBITDA

3,019,645

30,820,601

5,615,707

71,007,483

         

EPS - Adjusted EPS

       

Net income

85,719

16,826,485

304,101

52,550,587

Adjusted net income

85,719

26,612,156

304,101

62,637,799

Weighted average number of shares, basic

7,503,881

16,816,597

4,359,423

15,940,369

EPS - Basic

(0.44)

0.91

(0.81)

3.17

Adjusted EPS - Basic

(0.44)

1.46

(0.81)

3.79

 

Imperial Petroleum Inc.

Unaudited Consolidated Statements of Income

(Expressed in United States Dollars, except for number of shares)

         

Quarters Ended June 30,

 

Six Month Periods Ended June 30,

         

2022

 

2023

 

2022

 

2023

               

 

Revenues

                   
 

Revenues

   

11,348,271

 

59,044,221

 

16,464,649

 

124,465,322

                       

Expenses

                   
 

Voyage expenses

   

4,263,884

 

18,522,418

 

4,721,312

 

34,600,245

 

Voyage expenses - related party

 

141,591

 

736,269

 

203,462

 

1,546,799

 

Vessels' operating expenses

 

3,290,751

 

6,885,309

 

5,034,767

 

13,761,185

 

Vessels' operating expenses - related party

22,500

 

89,333

 

37,500

 

154,333

 

Drydocking costs

   

  --

 

696,934

 

  --

 

1,318,310

 

Management fees

   

209,815

 

473,880

 

341,625

 

871,640

 

General and administrative expenses

 

412,669

 

1,487,436

 

527,985

 

2,466,405

 

Depreciation

   

2,734,165

 

4,601,209

 

4,902,831

 

8,690,061

 

Impairment loss

   

  --

 

8,996,023

 

  --

 

8,996,023

Total expenses

   

11,075,375

 

42,448,811

 

15,769,482

 

72,405,001

 

       

 

 

 

 

 

 

 

Income from operations

 

272,896

 

16,555,410

 

695,167

 

52,060,321

                       

Other (expenses)/income

               

 

Interest and finance costs

 

(243,901)

 

(459,166)

 

(452,915)

 

(1,810,769)

 

Interest income

   

44,140

 

851,930

 

44,140

 

2,131,146

 

Dividend income from related party

   

  --

 

20,833

 

  --

 

20,833

 

Foreign exchange gain/(loss)

 

12,584

 

(142,522)

 

17,709

 

149,056

Other (expenses)/income, net

   

(187,177)

 

271,075

 

(391,066)

 

490,266

                       

Net Income

   

85,719

 

16,826,485

 

304,101

 

52,550,587

                 

 

 

 

(Loss)/Earnings per share[2]

   

 

 

 

 

 

 

 

- Basic

     

(0.44)

 

0.91

 

(0.81)

 

3.17

- Diluted

     

(0.44)

 

0.73

 

(0.81)

 

2.78

                       

Weighted average number of shares2

             

-Basic

     

7,503,881

 

16,816,597

 

4,359,423

 

15,940,369

-Diluted

     

7,503,881

 

21,366,486

 

4,359,423

 

18,304,134

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Imperial Petroleum Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

         

December 31,

 

June 30,

         

2022

 

2023

               

Assets

           

Current assets

         
 

Cash and cash equivalents

 

50,901,092

 

36,713,632

 

Time deposits

   

68,000,000

 

61,912,900

 

Restricted cash

   

1,005,827

 

  --

 

Receivables from related party

 

146,708

 

--

 

Trade and other receivables

 

7,898,103

 

10,381,724

 

Other current assets

   

240,002

 

376,132

 

Inventories

   

5,507,423

 

7,444,975

 

Advances and prepayments

 

172,908

 

353,209

Total current assets

   

133,872,063

 

117,182,572

               

Non current assets

         
 

Operating lease right-of-use asset

 

  --

 

31,349

 

Vessels, net

   

226,351,081

 

216,771,929

 

Restricted cash

   

5,600,000

 

 --

 

Investment in related party

 

  --

 

12,656,833

Total non current assets

   

231,951,081

 

229,460,111

Total assets

     

365,823,144

 

346,642,683

               

Liabilities and Stockholders' Equity

       

Current liabilities

         

 

Trade accounts payable

 

8,115,462

 

8,121,803

 

Payable to related parties

 

3,016,438

 

491,456

 

Accrued liabilities

   

1,982,306

 

2,645,608

 

Operating lease liabilities

 

  --

 

31,349

 

Deferred income

   

1,089,959

 

172,953

 

Current portion of long-term debt

 

10,176,538

 

  --

Total current liabilities

   

24,380,703

 

11,463,169

               

Non current liabilities

         
 

Long-term debt

   

59,787,923

 

  --

Total non current liabilities

 

59,787,923

 

  --

Total liabilities

   

84,168,626

 

11,463,169

               

Commitments and contingencies

       
               

Mezzanine equity

         

 

Preferred stock, Series C

  --

 

10,000,000

Total mezzanine equity

 

 

  --

 

10,000,000

               

Stockholders' equity

         
 

Capital stock

   

129,724

 

170,874

 

Preferred Stock, Series A

 

7,959

 

7,959

 

Preferred Stock, Series B

 

160

 

160

 

Additional paid-in capital

 

252,912,550

 

244,901,303

 

Retained earnings

   

28,604,125

 

80,099,218

Total stockholders' equity

 

 

281,654,518

 

325,179,514

Total liabilities, mezzanine equity and stockholders' equity

 

365,823,144

 

346,642,683

 

 

 

 

 

 

 

 

Imperial Petroleum Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars

         

Six Month Periods Ended June 30,

         

2022

 

2023

           

Cash flows from operating activities

       
 

Net income for the period

   

304,101

 

52,550,587

               

Adjustments to reconcile net income to net cash

     

  provided by operating activities:

       
 

Depreciation

   

4,902,831

 

8,690,061

 

Amortization of deferred finance charges

29,470

 

474,039

 

Amortization of operating lease right-of-use asset

  --

 

31,349

 

Share based compensation

 

  --

 

1,091,189

 

Impairment loss

   

  --

 

8,996,023

 

Dividend income from related party

   

  --

 

(20,833)

               

Changes in operating assets and liabilities:

     
 

(Increase)/decrease in

         
 

Trade and other receivables

 

(2,172,381)

 

(3,360,823)

 

Other current assets

   

(581,331)

 

(136,130)

 

Inventories

   

(4,676,485)

 

(2,062,365)

 

Changes in operating lease liabilities

 

  --

 

(31,349)

 

Advances and prepayments

 

(393,340)

 

(373,262)

 

Increase/(decrease) in

         
 

Trade accounts payable

 

4,288,624

 

500,001

 

Balances with related parties

 

(745,505)

 

(2,752,024)

 

Accrued liabilities

   

606,679

 

1,020,949

 

Deferred income

   

(291,822)

 

(801,066)

Net cash provided by operating activities

 

1,270,841

 

63, 816,346

               

Cash flows from investing activities

       
 

Acquisition and improvement of vessels

(79,022,533)

 

(26,284,405)

 

Increase in bank time deposits

 

  --

 

(61,912,900)

 

Maturity of bank time deposits

 

  --

 

68,000,000

Net cash used in investing activities

 

(79,022,533)

 

(20,197,305)

               

Cash flows from financing activities

       
 

Proceeds from equity offerings

 

167,572,515

 

12,095,253

 

Stock issuance costs

   

(10,767,944)

 

(198,587)

 

Dividends paid on preferred shares

 

(870,492)

 

(870,494)

 

Loan repayments

   

(2,402,000)

 

(70,438,500)

 

Cash retained by C3is Inc. at spin-off

 

  --

 

(5,000,000)

Net cash provided by/(used in) financing activities

 

153,532,079

 

(64,412,328)

               

Net increase/(decrease) in cash, cash equivalents and restricted cash

75,780,387

 

(20,793,287)

Cash, cash equivalents and restricted cash at beginning of year

6,341,059

 

57,506,919

Cash, cash equivalents and restricted cash at end of period

82,121,446

 

36,713,632

Cash breakdown 

       
 

Cash and cash equivalents

 

79,135,753

 

36,713,632

 

Restricted cash, current

 

485,693

 

  --

 

Restricted cash, non current

 

2,500,000

 

  --

Total cash, cash equivalents and restricted cash shown in the statements of cash flows

82,121,446

 

36,713,632

 

Supplemental Cash Flow Information 

       

Interest paid

 

305,349

 

1,735,054

Non-cash investing activity -  Vessels’ improvements included in liabilities

 

51,580

 

322,527

Non-cash financing activity – Dividends declared on Preferred Shares Series C included in Balances with related parties

 

-

 

185,000

Distribution of net assets of C3is Inc. to shareholders and warrantholders

 

-

 

20,957,952

                 

 

 

[1] EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

[2] Adjusted retroactively to reflect the 1-for-15 reverse stock split effected on April 28, 2023.