Icon Energy Corp.(ICON) - 2025 Q2 - Quarterly Report

Financial Performance - Revenue for the six-month period ended June 30, 2025, was $3,547,000, up 30.5% from $2,719,000 in the same period of 2024[5] - Net loss attributable to common shareholders for the six-month period ended June 30, 2025, was $4,966,000, compared to a net income of $912,000 in the same period of 2024[5] - The Company reported a net loss of $3,694,000 for the six-month period ended June 30, 2025, compared to a net income of $987,000 for the same period in 2024[61] - Dividends on Series A Preferred Shares amounted to $1,272,000 for the six-month period ended June 30, 2025, compared to $75,000 for the same period in 2024[61] Assets and Liabilities - Total assets increased to $58,668,000 as of June 30, 2025, compared to $28,795,000 as of December 31, 2024, representing a growth of 103%[4] - Cash and cash equivalents increased to $3,789,000 as of June 30, 2025, from $946,000 as of December 31, 2024, marking a rise of 300%[4] - Total current liabilities rose to $4,383,000 as of June 30, 2025, compared to $3,331,000 as of December 31, 2024, an increase of 31.6%[4] - The total long-term debt increased to $36,183 as of June 30, 2025, up from $15,931 on December 31, 2024, primarily due to the finance lease liability[36] Shareholder Equity - The total shareholders' equity increased to $20,464,000 as of June 30, 2025, from $11,746,000 as of December 31, 2024, reflecting a growth of 74%[4] - The accumulated dividends on the Series A Preferred Shares amounted to $nil as of June 30, 2025, compared to $977 as of December 31, 2024[29] - The Company issued 2,249 Series A Preferred Shares as a dividend in kind on June 30, 2025, valued at $2,249,000[59] Operational Developments - Icon Energy Corp. acquired Maui Shipping Co. on June 11, 2024, enhancing its operational capacity in the shipping sector[12] - The fleet includes three vessels with charter expirations ranging from October 2025 to June 2026, indicating ongoing operational commitments[12] - For the six-month period ended June 30, 2025, 99% of the Company's revenue was derived from a single charterer, compared to 100% for the same period in 2024[17] Management and Agreements - The management agreement with Pavimar became effective on January 18, 2024, providing vessel commercial and technical management services[22] - The management fees for services provided by Pavimar for the six-month periods ended June 30, 2025, and 2024, were $7 and $nil, respectively[27] - Total charges by Pavimar for the six-month period ended June 30, 2025, included technical management fees of $298, commercial management commissions of $45, and sale and purchase commissions of $317[25] Financing Activities - The Company raised approximately $12,000,000 from a public offering on January 24, 2025, selling 229,007 units at $52.40 per unit[51] - The Company completed its initial public offering on July 15, 2024, selling 31,250 common shares at $160.00 per share, generating gross proceeds of approximately $5,000,000[48] - The Company executed a reverse stock split on April 1, 2025, converting 87,410,311 outstanding common shares into 2,185,230 shares[57] Compliance and Taxation - The Company is in compliance with all applicable financial covenants related to its loan agreement as of June 30, 2025[36] - The Company is incorporated in the Republic of Marshall Islands and is not subject to income taxes there[65] - The Company intends to claim exemption from U.S. federal income tax under Section 883 of the Internal Revenue Code for the 2024 and 2025 taxable years[67] - The Company believes it will satisfy the 50% Ownership Test for the 2024 and 2025 taxable years[67] Other Financial Information - The estimated fair value of Class A Warrants was recognized at $46,269, with a loss of $34,278 recorded in the interim consolidated statement of loss[64] - The net effect of fair value measurements during the six-month period ended June 30, 2025, was a loss of $537[64] - The protection and indemnity insurance coverage for pollution is $1,000,000 per vessel per incident, with no current claims or contingent liabilities reported[34] - There are no subsequent events that require disclosure as of the date the financial statements were issued[68]