Icon Energy Corp.(ICON) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenue for the nine-month period ended September 30, 2025, was $7,722,000, representing a 115.9% increase compared to $3,582,000 in the same period of 2024[5] - Operating profit decreased to $72,000 in 2025 from $567,000 in 2024, indicating a decline of 87.3%[5] - Net loss attributable to common shareholders for the nine-month period was $5,740,000, compared to a net income of $36,000 in 2024[5] - Cash flows from operating activities provided $1,173,000 in 2025, compared to $588,000 in 2024, indicating a 99.7% increase[9] Assets and Liabilities - Total assets increased to $58,013,000 as of September 30, 2025, up from $28,795,000 at the end of 2024, marking a growth of 101%[4] - Total liabilities increased significantly to $37,371,000 in 2025 from $17,049,000 in 2024, reflecting a rise of 119%[4] - Shareholders' equity improved to $20,642,000 as of September 30, 2025, compared to $11,746,000 at the end of 2024, a growth of 75.5%[4] - The total long-term debt as of September 30, 2025, is $35,225, an increase from $15,931 as of December 31, 2024[38] Financial Costs - The company incurred $3,238,000 in interest and finance costs for the nine-month period, a substantial increase from $61,000 in 2024[5] - The weighted average interest rate on the borrowed portion of the term loan facility was 8.3% during the nine-month period ended September 30, 2025[40] Shareholder Information - Dividends paid on Series A Preferred Shares during the nine-month period ended September 30, 2025, amounted to $2,249, paid in kind by issuing 2,249 Series A Preferred Shares[30] - The accumulated dividends on Series A Preferred Shares as of September 30, 2025, amounted to $853, not reflected in the consolidated balance sheets as they had not been declared[30] - For the nine-month period ended September 30, 2025, dividends accrued on Series A Preferred Shares totaled $2,124 at an average applicable dividend rate of 17.27%[46] - On June 30, 2025, the Company issued 2,249 Series A Preferred Shares as payment-in-kind for accrued dividends, totaling $2,249[46] Operational Commitments - The company’s fleet includes three vessels, with the earliest charter expiring in November 2025 and the latest in June 2026, indicating ongoing operational commitments[12] - The minimum contracted revenue expected to be recognized on non-cancellable time charters of the vessels is estimated at $6,100 for the years 2025 and 2026[36] Acquisitions and Offerings - Icon completed the acquisition of Maui Shipping Co. on June 11, 2024, in exchange for 15,000 Series A Preferred Shares, 1,500,000 Series B Preferred Shares, and 5,000 common shares[13] - The initial public offering of Icon's common shares was completed on July 15, 2024, with trading commencing on the Nasdaq Capital Market under the symbol "ICON"[14] - The Company completed its initial public offering on July 15, 2024, selling 31,250 common shares at an offering price of $160.00 per share, generating gross proceeds of approximately $5,000[50] - In the January 2025 public offering, the Company sold 229,007 units at an offering price of $52.4 per unit, resulting in gross proceeds of approximately $12,000[53] Compliance and Regulatory Matters - The Company received a notification from Nasdaq on March 7, 2025, regarding non-compliance with the Minimum Bid Price Requirement, which was rectified after a Reverse Stock Split on April 1, 2025[57] - On April 1, 2025, the company executed a Reverse Stock Split, reducing outstanding common shares from 87,410,311 to 2,185,230, with no impact on market capitalization or shareholder ownership percentage[59] Financial Instruments and Accounting - The Company follows ASC 480 for distinguishing liabilities from equity, impacting the classification of certain financial instruments[16] - The Company’s financial instruments classified as liabilities are remeasured at fair value at each balance sheet date, with any resulting gains or losses recorded in the consolidated statements of (loss)/income[16] - The Company’s right of use assets under finance leases are amortized over the useful life of the underlying asset, impacting depreciation expense[21] - The company recognized a loss of $537 from fair value measurements of Class A Warrants during the nine-month period ended September 30, 2025[71] Other Financial Information - The outstanding balances with Pavimar as of September 30, 2025, were $380, compared to $173 as of December 31, 2024[25] - The outstanding balance due to Pavimar as of September 30, 2025, was $4, compared to $nil as of December 31, 2024[27] - Pavimar provides services to the Company for a fee of $12 per annum, with related fees for the nine-month periods ended September 30, 2025 and 2024 amounting to $11 and $9, respectively[27] - The revenue generated from the right of use asset under finance lease during the nine-month period ended September 30, 2025, was $1,692[42] - The Company has declared its intention to exercise the purchase option for the vessel under the finance lease agreement, subject to certain conditions[32] - Subsequent to the reporting period, the company issued 1,219,521 common shares under the SEPA for net proceeds of $1,397, increasing total outstanding common shares to 3,450,000[75]