PYXIS TKRS.EQ.WARRT(PXSAW) - 2025 Q2 - Quarterly Report

Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes the company's financial condition, operational results, and future outlook, encompassing forward-looking statements and key financial data Forward-Looking Statements This section details the nature of forward-looking statements, covering future results, economic conditions, business strategy, and market trends, and lists factors that could cause actual results to differ materially - Statements are predictive, refer to future events, and include words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'estimates,' 'seeks,' 'targets,' 'continue,' 'contemplate,' 'possible,' 'likely,' 'might,' 'will,' 'would,' 'could,' 'projects,' 'forecasts,' 'predicts,' 'potential', 'may,' 'should' and similar expressions[3] - Forward-looking statements cover future operating or financial results, global and regional economic and political conditions (including piracy), pending vessel acquisitions, business strategy, expected capital spending or operating expenses (including dry-docking and insurance costs), competition in the product tanker and dry bulk industries, shipping market trends (including charter rates and factors affecting supply and demand, particularly effects of the war in Ukraine or the Red Sea conflict), financial condition and liquidity, ability to obtain financing, ability to enter into fixed-rate charters, ability to earn income in the spot market, and expectations of vessel availability, construction time, and useful lives[3] - Factors that might cause future results to differ include changes in governmental taxation, rules and regulations, U.S. presidential and congressional election results, economic and competitive conditions, central bank policies, borrowing availability, operating expenses (bunker fuel, crewing, dry docking, G&A, insurance), capital expenditures, planned acquisitions/divestitures, vessel breakdowns, potential claims or liability from litigation, cybersecurity breaches, disruption of world trade due to protectionism, tariffs, piracy, terrorism, political events, public health threats, international hostilities (Ukraine War, Middle East conflicts), changes in interest and foreign exchange rates, severe weather disruptions (Panama Canal drought), non-compliance with anti-corruption acts, ESG scrutiny, and dependence on key employees and third-party managers[4][5][10] Overview PYXIS TANKERS INC. owns four tanker companies and 60% of two consolidated dry-bulk joint ventures, operating a fleet of three MR2 tankers and three dry-bulk carriers - PYXIS TANKERS INC. was incorporated in the Republic of the Marshall Islands on March 23, 2015[7] - As of June 30, 2025, the Company owns 100% interest in four vessel-owning companies (Seventhone, Tenthone, Eleventhone, Drytwo) and 60% ownership in two dry-bulk joint ventures: DRYKON MARITIME Corp. (owns 'Konkar Ormi') and ACCUSHIP MARITIME Ltd. (owns 'Konkar Venture')[7][8][11] - The dry-bulk joint ventures for 'Konkar Ormi' and 'Konkar Venture' are consolidated in the Company's financial statements under ASC 810 guidelines due to control over Drykon and Accuship, resulting in reported non-controlling interest[9] Fleet Composition (as of June 30, 2025) | Vessel-owning Company | Vessel Name | DWT | Year Built | Acquisition Date | | :-------------------- | :---------- | :-- | :--------- | :--------------- | | Seventhone | Pyxis Theta | 51,795 | 2013 | 16-Sep-2013 | | Tenthone | Pyxis Karteria | 46,652 | 2013 | 15-Jul-2021 | | Eleventhone | Pyxis Lamda | 50,145 | 2017 | 20-Dec-2021 | | Dryone | Konkar Ormi | 63,520 | 2016 | 14-Sep-2023 | | Drytwo | Konkar Asteri | 82,013 | 2015 | 15-Feb-2024 | | Drythree | Konkar Venture | 82,099 | 2015 | 28-Jun-2024 | - PYXIS MARITIME CORP. (beneficially owned by the CEO/Chairman) provides ship management services to tanker vessel-owning companies, and Konkar Shipping Agencies, S.A. (also beneficially owned by the CEO/Chairman) provides ship management services to dry-bulk vessel-owning companies, both for a fixed daily fee; INTERNATIONAL TANKER MANAGEMENT LTD. (an unrelated third party) handles crewing and technical management for tankers[13][14][15] Results of Operations - Revenue and Expense Overview Revenues are generated from chartering vessels, influenced by fleet size, voyage days, and daily charter hire rates, with key expenses including voyage, operating, and administrative costs - Revenues are generated by chartering vessels for the transportation of petroleum products, other liquid bulk items, and dry-bulk commodities, primarily influenced by the number of vessels, voyage days employed, and daily charter hire rates[17] - Time charters provide more predictable cash flows but can yield lower profit margins, with the charterer paying voyage expenses and the owner paying vessel operating expenses; spot charters involve the owner being responsible for all expenses (capital, voyage, operating) and are paid on a per-ton basis[18][19] - Key expense categories include voyage related costs and commissions (port, canal, bunker, brokerage), vessel operating expenses (crew, insurance, repairs, maintenance), general and administrative expenses (annual fee to Maritime, public company costs), management fees (to Maritime, Konkar Agencies, ITM), depreciation (straight-line over 25 years), special survey and dry-docking costs (capitalized and amortized), and interest and finance costs (SOFR-based debt, interest income)[20][21][22][24][25][26][27] Selected Consolidated Financial Data This section presents key consolidated financial data for the six months ended June 30, 2024 and 2025, and balance sheet data as of December 31, 2024, and June 30, 2025 Interim Condensed Consolidated Statements of Comprehensive Income/(Loss) Data (in thousands of U.S. dollars) | Metric | Six months ended June 30, 2024 | Six months ended June 30, 2025 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Revenues, net | $25,715 | $18,756 | | Voyage related costs and commissions | $(3,315) | $(1,571) | | Vessel operating expenses | $(6,116) | $(6,965) | | General and administrative expenses | $(1,546) | $(4,573) | | Management fees, related parties | $(498) | $(686) | | Management fees, other | $(244) | $(251) | | Amortization of special survey costs | $(194) | $(264) | | Depreciation | $(3,095) | $(3,752) | | Operating income | $10,707 | $694 | | Interest and finance costs | $(3,073) | $(2,944) | | Interest income | $1,261 | $857 | | Net income/(loss) | $8,895 | $(1,393) | | Loss/(Gain) attributable to non-controlling interests | $(53) | $156 | | Net income/(loss) attributable to Pyxis Tankers Inc. | $8,842 | $(1,237) | | Dividend Series A Convertible Preferred Stock | $(383) | — | | Net income/(loss) attributable to common shareholders | $8,459 | $(1,237) | | Income/(loss) per common share, basic | $0.81 | $(0.12) | | Income/(loss) per common share, diluted | $0.73 | $(0.12) | Interim Condensed Consolidated Balance Sheets Data (in thousands of U.S. dollars) | Metric | December 31, 2024 | June 30, 2025 | | :---------------------------------- | :---------------- | :------------ | | Total current assets | $46,123 | $46,085 | | Total other non-current assets | $2,564 | $3,780 | | Total fixed assets, net | $140,194 | $136,728 | | Total assets | $188,881 | $186,593 | | Total current liabilities | $12,254 | $15,277 | | Total non-current liabilities | $76,963 | $73,173 | | Total stockholders' equity | $99,664 | $98,143 | | Total liabilities and stockholders' equity | $188,881 | $186,593 | Interim