Core Viewpoint - Eurodry Ltd. is conducting a conference call to discuss its financial results for the first quarter of 2025, highlighting the company's performance and future expectations [5]. Group 1: Company Overview - Eurodry Ltd. is represented by key executives including Aristides J. Pittas, Chairman and CEO, and Tasos Aslidis, CFO, during the earnings call [5]. - The conference call is part of the company's effort to communicate its financial results for the three-month period ending March 31, 2025 [5]. Group 2: Financial Results Discussion - The call aims to provide insights into the financial performance of Eurodry Ltd. for Q1 2025, with a focus on key metrics and operational highlights [5].

EuroDry Ltd. Q1 2025 Earnings Report [First Quarter 2025 Financial Highlights](index=4&type=section&id=First%20Quarter%202025%20Financial%20Highlights) The company reported a challenging quarter with a net loss of $3.7 million and negative Adjusted EBITDA, driven by lower charter rates Q1 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Total Net Revenues | $9.2 million | | Net Loss (attributable to controlling shareholders) | $3.7 million | | Loss per Share (basic and diluted) | $1.35 | | Adjusted Net Loss (attributable to controlling shareholders) | $5.7 million | | Adjusted Loss per Share (basic and diluted) | $2.07 | | Adjusted EBITDA | $(1.0) million | | Average Vessels Owned & Operated | 12.8 | | Average Time Charter Equivalent (TCE) Rate | $7,167 per day | - Under its share repurchase plan of up to $10 million, the company has repurchased 334,674 shares for approximately **$5.3 million** to date[14](index=14&type=chunk) [Management Commentary](index=5&type=section&id=Management%20Commentary) Management attributes poor results to low charter markets and maintains a cautious outlook while keeping vessels on short-term charters - CEO Aristides Pittas noted the company faced very low charter markets, resulting in a poor financial quarter amid ongoing geopolitical uncertainty[15](index=15&type=chunk) - The company's strategy is to employ vessels on short-term trip charters to capitalize on any potential market recovery[16](index=16&type=chunk) - Net revenues for Q1 2025 were down **36.2%** compared to Q1 2024, mainly due to a **42.5%** decrease in average TCE rates[17](index=17&type=chunk) - As of March 31, 2025, the company had outstanding debt of **$105.2 million** against approximately **$11.3 million** in cash[19](index=19&type=chunk) [First Quarter 2025 Financial Results](index=5&type=section&id=First%20Quarter%202025%20Financial%20Results) Net revenues fell 36.2% to $9.2 million, widening the net loss to $3.7 million despite a gain from a vessel sale Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Net Revenues | $9.2M | $14.4M | -36.2% | | Average TCE Rate | $7,167/day | $12,455/day | -42.5% | | Vessel Operating Expenses | $6.6M | $6.2M | +6.5% | | Net Loss (Controlling Shareholders) | $(3.7)M | $(1.8)M | +105.6% | | Loss Per Share | $(1.35) | $(0.65) | +107.7% | | Adjusted Loss Per Share | $(2.07) | $(1.18) | +75.4% | - The company sold the M/V Tasos for demolition for approximately **$5 million**, resulting in a gain on sale of **$2.1 million** in Q1 2025[24](index=24&type=chunk) - Interest and other financing costs decreased to **$1.8 million** from $2.1 million in Q1 2024, primarily due to lower benchmark rates on loans[25](index=25&type=chunk) [Fleet Status](index=7&type=section&id=Fleet%20Status) The company's fleet of 12 vessels experienced lower utilization and significantly reduced TCE rates, with two newbuilds scheduled for 2027 [Fleet Profile](index=7&type=section&id=Fleet%20Profile) The fleet consists of 12 diverse drybulk carriers, with two Ultramax newbuilds set to expand capacity by 2027 - The current fleet comprises **12 vessels**: 4 Panamax, 5 Ultramax, 2 Kamsarmax, and 1 Supramax, with a total cargo capacity of **843,402 dwt**[31](index=31&type=chunk)[61](index=61&type=chunk) - **Two Ultramax vessels** (63,500 dwt each) are under construction and scheduled for delivery in **Q2 and Q3 2027**[31](index=31&type=chunk)[61](index=61&type=chunk) [Summary Fleet Data](index=8&type=section&id=Summary%20Fleet%20Data) Q1 2025 operational data shows a sharp decline in the average daily TCE rate alongside a slight increase in operating expenses Fleet Operational Data (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average number of vessels | 12.8 | 13.0 | | Available days for fleet | 1,155.0 | 1,130.5 | | Voyage days for fleet | 1,125.3 | 1,109.1 | | Fleet utilization | 97.4% | 98.1% | | **Average Daily Results** | | | | Time charter equivalent rate (TCE) | $7,167 | $12,455 | | Vessel operating expenses (ex-drydock) | $6,590 | $6,183 | | Drydocking expenses | $59 | $1,493 | [Financial Statements](index=11&type=section&id=Financial%20Statements) The financial statements reflect a revenue decline, a wider net loss, and negative cash from operations for the quarter [Consolidated Condensed Statements of Operations](index=11&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The statement of operations shows a net revenue of $9.2 million and a net loss of $4.0 million for Q1 2025 Q1 Statement of Operations Highlights (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Revenues | $9.21 | $14.42 | | Total Operating Expenses, net | $11.36 | $14.84 | | Operating Loss | $(2.15) | $(0.41) | | Net Loss | $(4.01) | $(1.91) | | Net Loss (Controlling Shareholders) | $(3.70) | $(1.78) | [Consolidated Condensed Balance Sheets](index=12&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) The balance sheet shows total assets of $211.0 million and total shareholders' equity of $101.8 million as of March 31, 2025 Balance Sheet Summary (in millions) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $17.8 | $23.3 | | Vessels, net | $182.3 | $185.5 | | **Total Assets** | **$211.0** | **$219.7** | | Total Current Liabilities | $17.5 | $18.8 | | Long-term Bank Loans | $91.6 | $95.4 | | **Total Liabilities** | **$109.1** | **$114.1** | | **Total Shareholders' Equity** | **$101.8** | **$105.6** | [Consolidated Condensed Statements of Cash Flows](index=13&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) The cash flow statement reveals a $2.3 million use of cash in operations, offset by proceeds from a vessel sale Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $(2.32) | $2.97 | | Net Cash from Investing Activities | $4.76 | $(0.31) | | Net Cash from Financing Activities | $(3.02) | $(4.05) | | **Net Decrease in Cash** | **$(0.58)** | **$(1.39)** | | Cash at End of Period | $11.33 | $12.71 | [Reconciliation of Non-GAAP Financial Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Reconciliations show a negative Adjusted EBITDA of $1.0 million and an adjusted net loss of $5.7 million for the quarter [Adjusted EBITDA Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA was $(1.0) million in Q1 2025, a significant decline from $2.1 million in the prior-year period Reconciliation to Adjusted EBITDA (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | $(4.01) | $(1.91) | | (+) Interest & other financing costs, net | $1.77 | $2.04 | | (+) Vessel depreciation | $3.22 | $3.44 | | (+/-) Unrealized/Realized derivative (gains)/losses | $(0.09) | $1.49 | | (+/-) Net gain on sale of vessel | $(2.08) | - | | **Adjusted EBITDA** | **$(1.02)** | **$2.07** | [Adjusted Net Loss Reconciliation](index=15&type=section&id=Adjusted%20Net%20Loss%20Reconciliation) Adjusted net loss attributable to controlling shareholders widened to $5.7 million, or $2.07 per share, in Q1 2025 Reconciliation to Adjusted Net Loss (in millions, except per share data) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to controlling shareholders | $(3.70) | $(1.78) | | (+/-) Unrealized (gain)/loss on derivatives | $0.13 | $(1.44) | | (+/-) Net gain on sale of vessel | $(2.08) | - | | **Adjusted net loss attributable to controlling shareholders** | **$(5.66)** | **$(3.22)** | | **Adjusted loss per share** | **$(2.07)** | **$(1.18)** | [Company Overview](index=16&type=section&id=Company%20Overview) EuroDry operates a fleet of 12 drybulk vessels with plans for expansion and is managed by the affiliated Eurobulk Ltd - EuroDry was formed in January 2018 and spun-off from Euroseas Ltd in May 2018, trading on NASDAQ under the ticker **EDRY**[59](index=59&type=chunk) - The company's operations are managed by Eurobulk Ltd, an affiliated ship management company[60](index=60&type=chunk) - The current fleet consists of **12 vessels** with a total capacity of **843,402 dwt** and will expand to **14 vessels** with **970,402 dwt** capacity after newbuild deliveries in 2027[61](index=61&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total net revenues of $9.2 million, a 26.2% decrease from $14.4 million in Q1 2024, attributed to lower time charter rates and a reduced number of vessels operated [27] - The net loss attributable to controlling shareholders was $3.7 million, compared to a loss of $1.8 million in the same period last year [27] - Adjusted EBITDA for Q1 2025 was a negative $1 million, down from $2.1 million in Q1 2024 [28] - Basic and diluted loss per share attributable to controlling shareholders was $1.35, compared to $0.65 in Q1 2024 [28] Business Line Data and Key Metrics Changes - The fleet consists of 12 vessels with an average age of 13.6 years and a total capacity of approximately 843,000 deadweight tons [9] - Fixed rate coverage for the remainder of the year is approximately 22%, excluding five vessels operating under index-linked charters [10] Market Data and Key Metrics Changes - The dry bulk market has softened in Q1 2025, with average spot rates for Panamax vessels below $8,000 per day and one-year time charter rates around $12,000 per day [10] - By the end of March 2025, spot rates dropped by as much as 28% in the Panamax segment, while one-year time charter rates decreased by 12% [11] - The IMF revised its global GDP growth forecast for 2025 down to 2.8% from 3.3%, reflecting increased downside risks [12] Company Strategy and Development Direction - The company intends to modernize its fleet by selling older vessels and replacing them with younger ones, with plans to take delivery of two newbuilds in 2027 [43] - The company is cautious about the dry bulk sector outlook, monitoring market conditions closely to optimize fleet modernization [26] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the continued weakness in freight markets due to weaker demand and uncertain macroeconomic conditions [11] - The company remains cautious about the dry bulk sector, anticipating a softer market for the remainder of 2025 compared to 2024 [21] Other Important Information - The company has repurchased 334,000 shares totaling $5.3 million as part of a $10 million share repurchase program initiated in August 2022 [6] - The average daily operating expenses increased to $7,304 per vessel per day in Q1 2025, compared to $6,867 in Q1 2024 [30] Q&A Session Summary Question: Will vessel operating expenses continue at the current level? - Management indicated that it is premature to determine future operating expenses based on Q1 results, but they expect to meet their budget, which is 2% higher than last year [38][39] Question: What is the forecast for scheduled off-hire days? - Management expects one drydocking this year and anticipates about 1.5 days of off-hire per quarter [41][42] Question: How is the fleet being managed regarding acquisitions and sales? - The strategy involves selling older vessels and replacing them with younger ones, depending on market conditions [43] Question: Are there opportunities to scrap older vessels? - Currently, there are no immediate candidates for scrapping, but management noted a slight pickup in scrap activity in the market [47][48] Question: What is the status of newbuild payments? - There may be a 10% installment payment due towards the end of the year, with further payments scheduled for 2026 [60] Question: Why was there no stock buyback in Q1? - Limited liquidity and expectations of market improvement were cited as reasons for not executing buybacks in Q1 [61]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total net revenues of $9.2 million, a 26.2% decrease from $14.4 million in Q1 2024, attributed to lower time charter rates and a reduced number of vessels operated [6][28] - The net loss attributable to controlling shareholders was $3.7 million, compared to a loss of $1.8 million in the same period last year, resulting in a loss per share of $1.35 [6][28] - Adjusted EBITDA for Q1 2025 was negative $1 million, down from $2.1 million in Q1 2024 [6][28] Business Line Data and Key Metrics Changes - The fleet currently consists of 12 vessels with an average age of 13.6 years and a total capacity of approximately 843,000 deadweight tons [9] - Fixed rate coverage for the remainder of the year is approximately 22%, excluding vessels under index-linked charters [11] Market Data and Key Metrics Changes - The dry bulk market has softened in Q1 2025, with average spot rates for Panamax vessels below $8,000 per day and one-year time charter rates around $12,000 per day [12] - The Baltic Panamax Index and Baltic Dry Index saw notable contractions, declining approximately 27% year-on-year [12] - The IMF revised global GDP growth forecasts for 2025 down to 2.8% from 3.3%, reflecting increased risks from tariffs and geopolitical tensions [13][14] Company Strategy and Development Direction - The company aims to modernize its fleet by selling older vessels and replacing them with younger ones, with plans to take delivery of two new vessels in 2027 [7][44] - The strategy includes opportunistic share repurchases to reflect confidence in long-term value [7] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the dry bulk sector outlook, citing geopolitical instability and a slowdown in key markets as contributing factors [18][22] - The company anticipates a softer market for the remainder of 2025, particularly in China, where dry bulk import volumes are not expected to replicate previous growth [22] Other Important Information - The company has repurchased 334,000 shares totaling $5.3 million as part of a $10 million share repurchase program initiated in August 2022 [7] - As of March 31, 2025, the company's outstanding debt was $105.2 million, with a projected cash flow breakeven level of approximately $11,935 per vessel per day [32][34] Q&A Session Summary Question: Will vessel operating expenses continue at the current level? - Management indicated that operating expenses were slightly over budget in Q1 but it is premature to predict future spending based on one quarter [39][40] Question: What is the forecast for scheduled off-hire days? - Management expects only one dry docking this year and anticipates minimal commercial off-hire days [41][43] Question: How is the fleet being managed regarding acquisitions and sales? - The company plans to sell older vessels and replace them with younger ones, depending on market conditions [44] Question: Are there opportunities to scrap older vessels? - Currently, there are no immediate candidates for scrapping, but management noted a slight increase in scrap activity in the market [48][49] Question: Have trade patterns changed due to tariffs? - Management noted no significant changes in trade patterns or loading/unloading times due to tariffs [52][55] Question: What is the status of the newbuild program? - The company expects to make a payment towards the end of the year for newbuilds, with further payments scheduled for 2026 [58][60] Question: Why was there no stock buyback in Q1? - Limited liquidity and expectations of market improvement were cited as reasons for not executing buybacks in Q1 [61]

Company Performance - EuroDry reported a quarterly loss of $2.07 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.84, and compared to a loss of $1.18 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $9.21 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.94%, but this was a decrease from year-ago revenues of $14.43 million [2] - EuroDry has not surpassed consensus EPS estimates over the last four quarters, indicating ongoing challenges in meeting market expectations [2] Stock Outlook - EuroDry shares have lost approximately 21.8% since the beginning of the year, contrasting with the S&P 500's gain of 1.5%, highlighting underperformance relative to the broader market [3] - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $14.4 million, while for the current fiscal year, the estimate is -$0.43 on revenues of $53.95 million [7] - The estimate revisions trend for EuroDry is mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Transportation - Shipping industry, to which EuroDry belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating a challenging environment for companies in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact EuroDry's stock performance [5]

Financial Performance - EuroDry's net revenues for Q1 2025 were $9.2 million, a decrease of 36.2% compared to $14.42 million in Q1 2024[9, 39] - The company reported a net loss attributable to controlling shareholders of $3.7 million, or ($1.35)/share in Q1 2025[9] - Adjusted net loss was ($5.7 million), or ($2.07)/share in Q1 2025[9, 39] - Adjusted EBITDA was ($1.0 million) in Q1 2025, a decrease of 148.9% compared to $2.07 million in Q1 2024[9, 39] Fleet and Operations - EuroDry's current fleet consists of 12 vessels with a total carrying capacity of 843k DWT and an average age of approximately 13.6 years[13] - The company has repurchased 334,674 shares of its common stock for $5.3 million under a repurchase plan of up to $10 million[10] - Fixed rate coverage for the remainder of 2025 is about 21.9% through charters[14] - Time Charter Equivalent (TCE) rate decreased to $7,167/day/vessel in Q1 2025 from $12,455/day/vessel in Q1 2024[41] Market Overview and Outlook - The orderbook is at approximately 10.51% of the fleet, remaining among the lowest levels in history[24, 26] - The company estimates that new supply of ships will be limited to about 1.8% in 2026, while demand growth is estimated at about 0.6%[33]

Core Viewpoint - EuroDry Ltd. reported a challenging first quarter of 2025, with significant declines in revenues and profitability due to low charter rates and market volatility, particularly influenced by external economic factors and geopolitical tensions [4][6][9]. Financial Performance - Total net revenues for Q1 2025 were $9.2 million, a decrease of 36.2% compared to $14.4 million in Q1 2024 [6][9]. - The average time charter equivalent rate dropped by 42.5% to $7,167 per day in Q1 2025 from $12,455 per day in Q1 2024 [6][9]. - Adjusted EBITDA for Q1 2025 was $(1.0) million, down from $2.1 million in Q1 2024 [8][17]. - The net loss attributable to controlling shareholders was $3.7 million, or $1.35 loss per share, compared to a net loss of $1.8 million, or $0.65 loss per share, in the same period of 2024 [16][18]. Operational Insights - The company operated an average of 12.8 vessels in Q1 2025, compared to 13.0 vessels in Q1 2024 [9][23]. - Vessel operating expenses increased to $6.6 million in Q1 2025 from $6.2 million in Q1 2024, primarily due to higher costs for spare parts and maintenance [7][10]. - The fleet utilization rate was 97.4% in Q1 2025, slightly down from 98.1% in Q1 2024 [24]. Strategic Decisions - The company opted not to lock vessels into longer duration charters at unprofitable levels, instead pursuing short-term trip charters to capitalize on potential market recoveries [5]. - EuroDry sold the M/V Tasos for approximately $5 million, resulting in a gain on sale of $2.1 million [13]. Market Conditions - The charter market was described as the lowest since the early COVID pandemic, with a slight rebound in April and May that was insufficient to restore profitability [4]. - The demand side of the supply/demand equation remains volatile, influenced by the steel industry's weakness and economic growth uncertainties in China, as well as ongoing geopolitical conflicts [4]. Fleet Profile - EuroDry's fleet consists of 12 vessels with a total cargo capacity of 843,402 dwt, including 4 Panamax, 5 Ultramax, and 2 Kamsarmax drybulk carriers [57]. - Two Ultramax vessels are under construction, expected to be delivered in 2027, which will increase the fleet to 14 vessels with a total capacity of 970,402 dwt [21][57].

Core Viewpoint - EuroDry Ltd. is set to release its financial results for the first quarter ended March 31, 2025, on June 5, 2025, before the market opens in New York [1]. Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast scheduled for June 5, 2025, at 10:00 a.m. Eastern Time [2]. - Participants can join the call by dialing in 10 minutes prior to the scheduled time using specific numbers provided [3]. - An audio webcast of the conference call will be available live and archived on the company's website [5]. Group 2: Company Overview - EuroDry Ltd. was established on January 8, 2018, to consolidate the drybulk fleet of Euroseas Ltd. into a separate public company and trades on NASDAQ under the ticker EDRY [7]. - The company operates in the dry cargo and drybulk shipping market, managing a fleet of 12 vessels with a total cargo capacity of 843,402 dwt [7]. - After the delivery of two Ultramax vessels in 2027, the fleet will expand to 14 vessels with a total carrying capacity of 970,402 dwt [7].

Financial Risks and Debt Management - As of December 31, 2024, the notional amount of one interest rate swap related to the fleet was $10.0 million, indicating potential exposure to fluctuations in interest rates [112]. - The company has total bank debt of $108.2 million as of December 31, 2024, with a repayment schedule requiring $12.1 million in 2025, $13.3 million in 2026, $20.0 million in 2027, and $62.8 million until 2030 [140]. - The existing loan agreements impose restrictive covenants that may limit the company's liquidity and corporate activities [138]. - The company may not be able to obtain additional debt financing due to the creditworthiness of its charterers and market conditions [142]. - The company has incurred secured debt to finance its fleet and expects to incur additional secured debt for newbuilding vessels [140]. - Changes in the fair value of derivative contracts that do not qualify for hedge accounting could affect net income and earnings per share attributable to controlling shareholders [112]. Corporate Governance and Shareholder Rights - Approximately 48% of the outstanding shares are owned by three major shareholders, giving them significant voting power and influence over corporate decisions [126]. - The company’s corporate governance practices are exempt from certain Nasdaq standards, which may limit shareholder protections compared to companies fully subject to these requirements [127]. - Shareholders may have fewer rights and protections under the corporate law of the Republic of the Marshall Islands compared to typical U.S. state law [215]. - Public shareholders may face more difficulty in protecting their interests against management actions compared to shareholders in U.S. incorporated companies [215]. - A notice of any shareholder meeting must be given at least 15 days in advance under Marshall Islands law, compared to 10 days in Delaware [215]. - Actions required to be taken by a meeting of shareholders may only be taken without a meeting if consent is in writing and signed by all shareholders entitled to vote under Marshall Islands law [215]. - The rights and fiduciary responsibilities of directors under Marshall Islands law are not as clearly established as in certain U.S. jurisdictions [215]. Operational and Market Risks - The company faces substantial competition from experienced companies with greater financial resources, which may impact its ability to secure profitable charters and vessel acquisitions [130]. - The operation of drybulk carriers presents unique risks, including potential damage during unloading that could negatively impact financial performance and ability to pay dividends [115]. - The company may face challenges in maintaining profitable employment for aging vessels, particularly during periods of decreased demand in the charter market [129]. - Labor interruptions could disrupt operations, potentially having a material adverse effect on the company's financial condition and ability to pay dividends [148]. - Technological innovation may reduce charter income and affect vessel demand and value, with competition from more efficient vessels potentially leading to significant decreases in charter hire payments and resale values [156]. - Developments in technology could disrupt global trade flows and supply chains, potentially decreasing shipping activity if fewer intermediate and raw inputs are traded [158]. - A decrease in spot voyage charter rates may incentivize charterers to default on their contracts, leading to significant losses for the company if charterers renegotiate or fail to meet obligations [159]. - The company may not have adequate insurance to cover all risks, which could adversely affect financial condition and results of operations if significant claims arise [160]. - Membership in P&I Associations may subject the company to additional funding calls based on the claims of other members, potentially resulting in significant expenses [161]. Growth and Acquisition Strategy - The company intends to grow through selective acquisitions of high-quality secondhand vessels, but risks include potential difficulties in managing growth and realizing expected benefits [120]. - The company may face difficulties in managing planned growth through acquisitions, which could negatively impact cash flows and liquidity [144]. Taxation and Regulatory Risks - The company may face adverse effects if it is determined to be a "passive foreign investment company" (PFIC) for U.S. tax purposes [189]. - The company believes it does not qualify as a PFIC, treating its time chartering income as services income rather than passive income [190]. - The company may be subject to a 4% United States federal income tax on 50% of its gross shipping income attributable to transportation that begins or ends in the United States, unless it qualifies for exemption under Section 883 of the Code [197]. - If the company does not qualify for the tax exemption under Section 883, it would face an effective 2% United States federal income tax on its U.S.-source shipping income, negatively impacting earnings available for distribution to shareholders [199]. Market Performance and Stock Volatility - The reported closing sale price of the company's common stock was $24.58 per share on June 24, 2024, $20.36 per share on October 1, 2024, and $11.05 per share on December 17, 2024, indicating significant volatility [205]. - The trading volume for the company's common stock has been low, which may cause it to trade at lower prices and make it difficult for shareholders to sell their shares [204]. - The market price of the company's common stock has been volatile, with fluctuations occurring without discernible announcements or developments [205]. - The international drybulk shipping industry has been highly unpredictable, and the company's stock price may be affected by extreme volatility in the stock markets and shipping industry [206]. Geopolitical and Economic Factors - The ongoing conflict in Ukraine and associated sanctions may adversely impact the company's business and operations, with potential for further economic sanctions against Russia [170]. - Trade tariffs and economic sanctions could limit trading activities and depress shipping demand, significantly affecting the company's financial condition [173]. - The company expects to operate primarily outside the United States, exposing it to political and governmental instability [180].

Financial Data and Key Metrics Changes - For Q4 2024, total net revenues were $14.5 million, an 8.7% decrease from $15.9 million in Q4 2023 [46] - The net loss attributable to controlling shareholders was $3.3 million, or $1.20 loss per share, compared to earnings of $0.13 per share in Q4 2023 [8][48] - Adjusted EBITDA for Q4 2024 was $4.8 million, down from $6.6 million in the same quarter last year [47] - For the full year 2024, total net revenues increased by 28.6% to $61.1 million from $47.6 million in 2023 [49] Business Line Data and Key Metrics Changes - The average time charter equivalent rate for vessels in Q4 2024 was $12,200 per vessel per day, down from $14,570 in Q4 2023 [52] - The commercial utilization rate for Q4 2024 was 100%, consistent with Q4 2023 [52] - Total operating expenses per vessel per day decreased to $7,087 in Q4 2024 from $7,640 in Q4 2023 [53] Market Data and Key Metrics Changes - Panamax rates declined, with the average one-year time charter rate dropping from $12,700 per day to $11,250 by the end of December 2024 [22] - The Baltic Panamax Index and Baltic Dry Index saw declines of 30% and 28% respectively during Q4 2024 [24] - Spot rates for Panamax vessels fell from $9,250 per day to $7,700 per day by the end of Q4 2024 [24] Company Strategy and Development Direction - The company signed a contract for two new Kamsarmax bulk carriers, scheduled for delivery in 2027, to enhance fleet capacity [12] - The fleet will consist of 12 vessels after the sale of the oldest vessel, with an average age reduction from 14.5 years to 13.6 years [18] - The company aims to maintain flexibility in chartering by primarily using short-term charters until market rates improve [21] Management's Comments on Operating Environment and Future Outlook - The management expressed caution regarding the dry bulk sector outlook due to macroeconomic risks and geopolitical tensions [30] - The IMF projects a slight improvement in global GDP growth to 3.3% in 2025, but advanced economies, particularly in Europe, face downgrades [26] - The company remains optimistic about potential charter rate recovery due to historically low order book levels in the dry bulk sector [40] Other Important Information - The company has repurchased 334,000 shares for a total of $5.3 million as part of its share repurchase program [10] - The average margin of debt as of December 31, 2024, was around 2.08% over LIBOR, with an effective cost of senior debt at approximately 6.3% [57] Q&A Session Summary Question: Was the $2.8 million impairment related to the vessel Tassos? - No, the impairment was related to another vessel, Santa Cruz, not Tassos [66] Question: Can you discuss the newbuild negotiations and shipyard experience? - The company has not built at the selected shipyard before but conducted extensive research and received positive feedback from other owners [68][70] Question: At what point would you begin locking in one-year charters? - The company is waiting for time charters to reach $15,000 to $16,000 per day before considering locking in [79] Question: What are the expectations for vessel expenses in 2025? - A preliminary budget indicates a conservative 3% increase in operating expenses over 2024 [84] Question: How will the newbuild payments be structured? - Payments include $14.4 million in 2026 and $7.2 million in 2027, with the final 60% due upon delivery [93] Question: What is the current state of the S&P market for acquisitions? - Prices for ten-year-old ships have dropped by about 15%, and the company is looking for further declines before considering acquisitions [99] Question: How current is the NAV mentioned? - The NAV reflects a valuation that has already accounted for a 15% drop in asset values [102]