Castor Maritime (CTRM) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenues for the six months ended June 30, 2023, decreased to $49.75 million from $79.53 million in the same period of 2022, representing a decline of approximately 37.5%[3] - Operating income for the six months ended June 30, 2023, was $10.78 million, down from $43.49 million in 2022, reflecting a decrease of about 75.2%[3] - Net income from continuing operations for the six months ended June 30, 2023, was $1.68 million, a significant drop from $40.43 million in 2022, indicating a decline of approximately 95.8%[3] - Net income for the six months ended June 30, 2023, was $19,016,085, compared to $47,729,784 in the same period of 2022[96] - The company reported a net income from continuing operations of $1.74 million for the six months ended June 30, 2023, compared to $40.61 million in the same period of 2022[105] Assets and Liabilities - Total assets decreased from $632.92 million as of December 31, 2022, to $568.31 million as of June 30, 2023, a reduction of about 10.2%[2] - Cash and cash equivalents fell sharply from $100.59 million at the end of 2022 to $28.57 million by June 30, 2023, a decline of approximately 71.6%[2] - Total current liabilities decreased from $51.36 million to $40.05 million, a reduction of about 22.1%[2] - Shareholders' equity decreased from $461.50 million as of December 31, 2022, to $443.25 million as of June 30, 2023, a decline of approximately 3.9%[2] - As of June 30, 2023, the total long-term debt was $116,064,418, down from $138,771,762 as of December 31, 2022, representing a reduction of approximately 16.5%[59] Cash Flow and Investments - Cash flows provided by operating activities from continuing operations decreased to $8,545,797 in the first half of 2023, down from $51,244,248 in the same period of 2022, representing a decline of about 83.34%[7] - The company reported a net cash used in investing activities from continuing operations of $60,289,840 for the six months ended June 30, 2023, compared to $23,043,438 in the same period of 2022, indicating a significant increase in investment outflows[7] - The company received gross proceeds of $785,804 from the issuance of common shares during the first half of 2023[7] - The Company acquired equity securities worth $72,211,450 during the six-month period ended June 30, 2023, with a balance of $66,847,660 at the end of the period[74] Vessel Operations - The company owned a diversified fleet of 21 vessels with a combined carrying capacity of 1.6 million dwt as of June 30, 2023[15] - Total vessel revenues decreased from $79,529,412 in 2022 to $49,747,081 in 2023, primarily from time charter revenues[97] - The total vessel revenues for the dry bulk segment decreased to $42.98 million in 2023 from $79.53 million in 2022, indicating a significant decline in performance[105] - The company recognized a net gain of $3.1 million from the sale of the M/V Magic Rainbow, sold for a gross price of $12.6 million in Q2 2023[55] Discontinued Operations - The net cash provided by operating activities from discontinued operations increased to $20,409,041 for the six months ended June 30, 2023, compared to $1,580,903 in the same period of 2022, marking a substantial increase[7] - For the six months ended June 30, 2023, the total vessel revenues from discontinued operations amounted to $23,369,274, compared to $42,609,567 for the same period in 2022, reflecting a decrease of approximately 45%[28] - The net income and comprehensive income from discontinued operations for the period January 1 through March 7, 2023, was $17,339,332, compared to $7,297,290 for the six months ended June 30, 2022, indicating a significant increase[28] Management and Fees - Management fees to related parties for the six months ended June 30, 2023, increased to $1,270,425 from $905,000 in the same period of 2022, representing a rise of approximately 40%[29] - The Company pays a flat quarterly management fee of $0.75 million to Castor Ships, along with a commission of 1.25% on all gross income from vessel operations and a commission of 1% on each sale and purchase transaction[32] Compliance and Regulations - The company is currently under a compliance review by Nasdaq for not meeting the minimum bid price requirement of $1.00 per share, with a cure period until October 17, 2023[77] - The company was in compliance with all financial covenants prescribed in its debt agreements as of June 30, 2023[69]