INDEX TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These unaudited interim consolidated financial statements have been prepared on the same basis and should be read in conjunction with the financial statements for the year ended December 31, 2024, included in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 15, 2025 (the “2024 Annual Report”) and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. Operating results for the six-month period ended June 30, 2025, are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2025.

The consolidated balance sheet as of December 31, 2024, has been derived from the audited consolidated financial statements of the Company as of that date, considering the reverse stock split mentioned above, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements.

Following the acquisition of a tanker vessel in September 2024, the Company has determined that it operates under two reportable segments, one relating to its operations of its dry bulk carrier vessels (dry bulk segment) and one to the operations of its tanker vessel (tanker segment). The accounting policies that apply to the reportable segments are the same as those used in the preparation of the Company’s consolidated financial statements (Note 11).

The Company is a global provider of shipping transportation services, specializing in the ownership and operation of dry bulk vessels and product tankers. Each of the vessels is owned through a separate wholly owned subsidiary. As of June 30, 2025, the Company was the sole owner of all outstanding shares of the following subsidiaries:

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Cypres Enterprises Corp. (“Cypres”), a company incorporated in the Republic of Panama on September 7, 2000, owner of the 2004 built Panamax dry bulk carrier Protefs (Note 5),

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Darien Compania Armadora S.A. (“Darien”), a company incorporated in the Republic of Panama on December 22, 1993, owner of the 2005 built Panamax dry bulk carrier Calipso,

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Marfort Navigation Company Limited (“Marfort”), a company incorporated in the Republic of Cyprus on August 10, 2007, owner of the 2005 built Capesize dry bulk carrier Salt Lake City (Note 5),

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Darrit Shipping Company Inc. (“Darrit”), a company incorporated in the Republic of the Marshall Islands on June 2, 2022, which as of June 30, 2025, had no operations,

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Fiji Shipping Company Inc. (“Fiji”), a company incorporated in the Republic of the Marshall Islands on January 27, 2023, owner of the 2005 built Panamax dry bulk carrier Melia, and

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Batiki Shipping Company Inc. (“Batiki”), a company incorporated in the Republic of the Marshall lslands on July 10, 2024, owner of the 2009 built MR2 tanker vessel Zeze Start.

The financial reporting implications of those conflicts cannot be reasonably estimated at this time, although they could materially affect the Company’s business, results of operations and financial condition in the future. As a result, certain of the Company’s estimates and assumptions carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company’s estimates may change in future periods. The overall impact on the Company’s business, and the efficacy of any measures the Company takes in response to the challenges presented by these geopolitical events, will depend on how those events will further develop, the duration and extent of the restrictive measures that are associated with such events and their impact on global economy and trade, which is still uncertain.

The current United States administration has recently indicated the United States may seek to implement more protective trade measures, including in the shipping sector. Among other things, for example, the United States Office of the United States Trade Representative (“USTR”) issued an April 17, 2025 notice of action (the “Notice of Action”), as may be amended from time to time, under which the USTR determined to impose service fees on (i) Chinese vessel operators and vessel owners of China, as further set forth in Annex I to the Notice of Action; (ii) vessel operators of Chinese-built vessels, as set forth in Annex II to the Notice of Action; and (iii) vessel operators of foreign-built vehicle carriers, as set forth in Annex III to the Notice of Action. The USTR service fees are scheduled to take effect on October 14, 2025.  It remains uncertain whether and to what extent further modifications may be proposed as part of the USTR’s actions, and the effect that the USTR’s actions would have on the Company or its industry generally.

2. Significant Accounting Policies – Recent Accounting Pronouncements

 

A discussion of the Company’s significant accounting policies and the recent accounting pronouncements can be found in the audited consolidated financial statements for the year ended December 31, 2024, as filed with the SEC as part of the 2024 Annual Report. There have been no material changes to these policies or pronouncements in the six-month period ended June 30, 2025, except as discussed below.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”. The amendments in this Update affect entities that apply the practical expedient when estimating expected credit losses on current accounts receivable and/or current contract assets arising from transactions under Topic 606, including those assets acquired in a transaction accounted for under Topic 805, Business Combinations. In developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments are expected to provide decision-useful information to investors and other financial statement users while reducing the time and effort necessary to analyze and estimate credit losses for current accounts receivable and current contract assets. An entity that elects the practical expedient, should apply the amendments in this Update prospectively. The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The Company is currently assessing the impact this standard will have on its consolidated financial statements and related disclosures.

3. Transactions with Related Parties

A discussion of the Company’s pre-existing transactions with related parties that did not present any change in the six-month period ended June 30, 2025, can be found in Note 3 of the Company’s consolidated financial statements for the year ended December 31, 2024, included in the 2024 Annual Report.

Management fees charged by DWM for the six-month periods ended June 30, 2025, and 2024, amounted to $480, and $709, respectively. Of the management fees charged by DWM for the six-month period ended June 30, 2025, and 2024, $445 and $555, respectively, are included in “Management fees” and $35 and $154, respectively, are included in “Voyage expenses”, in the accompanying unaudited interim consolidated statements of comprehensive loss. Technical supervision fees and expenses charged by DWM for the six months ended June 30, 2025, amounted to $6 which are included in “Vessel operating expenses” in the accompanying unaudited interim consolidated statement of comprehensive loss. As of June 30, 2025, and December 31, 2024, amounts of $nil and $21, respectively, were due to DWM, included in “Due to related parties” in the accompanying consolidated balance sheets.

Travel expenses charged by Altair for the six months ended June 30, 2025, and 2024, amounted to $26 and $23, respectively, and are mainly included in “Vessel operating expenses” and “Deferred charges, net” in the accompanying unaudited interim consolidated financial statements.

5. Vessels, net

The Company has an open balance from a dispute with one charterer for revenues recognized during 2022, which as of June 30, 2025, and December 31, 2024, amounted to $116 and is included in “Prepaid expenses” and other assets, net, in the accompanying consolidated balance sheets. In May 2024, in connection with its previously outstanding balance as of December 31, 2023 regarding another dispute with one of its charterers amounting to $120, the Company reached an amicable settlement in the amount of $111 and recorded, as a result, in six months ended June 30, 2024, an additional loss of $9 which is included in “Other operating loss/(income)” in the accompanying 2024 unaudited interim consolidated statement of comprehensive loss. No additional loss contingency or allowance was recorded in the six-month period ended June 30, 2025.

7. Capital Stock and Changes in Capital Accounts

As of June 30, 2025, and December 31, 2024, the Company’s authorized preferred stock consisted of 100,000,000 shares of preferred stock, par value $0.01 per share, designated as Series A Participating Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock. As of June 30, 2025, and December 31, 2024, there were no Series A Participating Preferred Stock issued and outstanding.

(i)	Series B Preferred Stock

As of June 30, 2025, the Company had outstanding 500,000 Series B Preferred Stock, with par value $0.01 per share, issued to Diana Shipping Inc. The Series B Preferred Stock votes with the common shares of the Company, and each share of Series B Preferred Stock entitles the holder thereof to 2,000 votes on all matters on which the Company’s stockholders are entitled to vote of up to 34% of the total number of votes entitled to be cast for all matters for which the Company’s stockholders are entitled to vote on, but with no economic rights. To the extent the aggregate voting power of any holder of Series B Preferred Stock, together with any affiliate of such holder, would exceed 49% of the total number of votes that may be cast on any matter submitted to a vote of the Company’s stockholders, the number of votes of the Series B Preferred Stock shall be automatically reduced so that such holder’s aggregate voting power, together with any affiliate of such holder, is not more than 49%. Furthermore, the Series B Preferred Stock has no dividend, distribution or liquidation rights and cannot be transferred without the consent of the Company except to the holder’s affiliates or successors.

During the six-month period ended June 30, 2025, the Company declared cash dividends on its Series C preferred stock of $446, of which $202 were paid in the same period (Note 13 (a)). Also, during the six-month period ended June 30, 2025, the Company paid cash dividends on its Series C preferred stock of $177 which were declared in late 2024.

During the six-month period ended June 30, 2024, the Company declared cash dividends on its Series C preferred stock of $327, of which $150 were paid in the same period. Also, during the six-month period ended June 30, 2024, the Company paid cash dividends on its Series C preferred stock of $110 which were declared in late 2023.

The Series D Preferred Stock, with liquidation preference $1,000 per share, has no voting rights except (1) in respect of amendments to the articles of incorporation which would adversely alter the preferences, powers or rights of the Series D Preferred Stock or (2) in the event that the Company proposes to issue any parity stock if the cumulative dividends payable on outstanding Series D Preferred Stock are in arrears or any senior stock. Also, holders of Series D Preferred Stock, rank equal to Series C Preferred Stock, prior to (i) the holders of common shares, (ii) if issued, any Series A Participating Preferred Stock, and any Series B Preferred Stock and (iii) any other class or series of capital stock established after their original issuance date with respect to dividends, distributions and payments upon liquidation. The Series D Preferred Stock has a cumulative preferred dividend accruing from the date of original issuance which is payable on the 15th day of January, April, July and October of each year at the dividend rate of 7.0% per annum, and is convertible into common shares at the holders’ option at any time after the original issuance date, at a conversion price equal to the 10-trading day trailing VWAP of the common shares. The Series D Preferred Stock is also optionally redeemable at the holder’s option in case of fundamental change or in case of certain corporate events as defined in the statement of designation of the Series D Preferred Stock. Holders of the Series D Preferred Stock, however, are prohibited from converting the Series D Preferred Stock into common shares to the extent that, as a result of such conversion, holders (together with their affiliates) would beneficially own more than 49% of the total outstanding common shares of the Company.

During the period from January 1, 2025, to June 30, 2025, holders of the Company’s Series D preferred stock unaffiliated with the Company, exercised their right to redeem 126 Series D Preferred Stock to common stock, resulting in the issuance of 4,249 shares of common stock of the Company and a deemed dividend of $219 to Series D preferred holders, being the excess value of the shares of common stock of (determined through Level 1 inputs of the fair value hierarchy (quoted market price on the date of the redemption of the Series D Preferred Stock for issuance of common stock)) as compared to the carrying value of the Series D Preferred Stock redeemed.

Following the conclusion of the above transactions, as of June 30, 2025, the Company had 22,957 shares of Series D Preferred Stock issued and outstanding.

As of June 30, 2025, the Series D Preferred Stock remained outside the scope of ASC 480, classified as permanent equity, while all features requiring bifurcation under ASC 815 had de minimis value upon reassessment as of June 30, 2025.

During the six-month period ended June 30, 2025, the Company declared and paid cash dividends of $17.5 per share on its Series D preferred stock aggregating the amount of $808 and $808, respectively.

(iv)	Equity Incentive Plan

8. Loss per Common Share

All of the Company’s issued and outstanding common stock (including any restricted shares issued under the Company’s amended and restated equity incentive plan) have equal rights to vote and participate in dividends, subject to forfeiture provisions as set forth in the respective stock award agreements, as applicable. Furthermore, the Class A warrants are entitled to receive dividends, if and when declared, which are not refundable, and therefore are considered participating securities for basic earnings per share calculation purposes. The Class A warrants do not participate in losses. For the six months ended June 30, 2025, the Company declared aggregate cash dividends on its Series C preferred stock of $446. With regards to the Series D preferred stock, during the six months ended June 30, 2025, the Company declared and paid aggregate cash dividends of $808 and $808, respectively, which excludes any amounts accrued in prior periods, as applicable. Also, during the six-month period ended June 30, 2025, Series D preferred stockholders redeemed 126 shares of Series D preferred stock, for which the Company recorded deemed dividends amounting to $219. For the six months ended June 30, 2024, the Company declared aggregate cash dividends on its Series C preferred stock of $327. With regards to the Series D preferred stock, during the six months ended June 30, 2024, the Company declared and paid aggregate cash dividends of $481 and $481, respectively, which excludes any amounts accrued in prior periods, as applicable. Also, during the six-month period ended June 30, 2024, Series D preferred stockholders redeemed nine shares of Series D preferred stock, for which the Company recorded deemed dividends amounting to $2. No dividends were declared on the Company’s common stock and its Class A warrants during the six-month periods ended June 30, 2025, and 2024.

For the six months ended June 30, 2025, and 2024, the calculation of basic loss per share does not treat the non-vested shares (considered non-participating securities) as outstanding until the time/service-based vesting restrictions have lapsed. The dilutive effect, if any, of the Company’s share-based compensation arrangements (following assumed conversion of the Series C preferred stock to common under the “if converted method”) and the Class A and Class B warrants is computed using the treasury stock method, which assumes that the “proceeds” upon exercise of these awards or warrants are used to purchase common shares at the average market price for the period. The dilutive effect, if any, from the conversion of outstanding Series C and Series D preferred stock is calculated with the “if converted” method, to the extent that such conversion would not result in beneficial ownership by the preferred stockholders of more than 49% of the total outstanding common shares of the Company, in accordance with the terms of the respective agreements governing the Series C and Series D preferred stock. The dilutive effect, if any, from the conversion of outstanding Series E Preferred Stock is calculated with the “if converted” method, to the extent the contingencies triggering such conversion are satisfied by the end of the reporting period. Incremental shares are the number of shares assumed issued under the i) treasury stock method and the ii) “if converted” method weighted for the periods the non-vested shares, warrants and convertible preferred stock were outstanding. During the six months ended June 30, 2025 and 2024, no incremental shares were calculated from the application of the treasury stock method on i) the Class A and Class B warrants and ii) the share-based compensation arrangements (following assumed conversion of the Series C Preferred Stock to common under the “if converted” method) and the “if converted” method for the Series C and Series D preferred stock, because to do so would be anti-dilutive. In addition, for the six months ended June 30, 2025, and 2024, the Company has not applied the if converted method to the Series E Preferred Stock, since none of the contingencies triggering such conversion were met as of June 30, 2025 and 2024, respectively.

12. Financial Instruments and Fair Value Disclosures

Concentration of credit risk: Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash equivalents, trade accounts receivable and amounts due from related parties. The ability and willingness of each of the Company’s counterparties to perform their obligations under a contract depend upon several factors that are beyond the Company’s control and may include, among other things, general economic conditions, the state of the capital markets, the condition of the shipping industry and charter hire rates. The Company’s credit risk with financial institutions is limited as it has temporary cash investments, consisting mostly of deposits, placed with qualified financial institutions and performs periodic evaluations of the relative credit standing of those financial institutions. The Company limits its credit risk with accounts receivable and related parties by performing ongoing credit evaluations of these counterparties’ financial condition and by receiving payments of hire in advance. The Company, generally, does not require collateral for its accounts receivable and does not have any agreements to mitigate credit risk.

For the six-month periods ended June 30, 2025 and 2024, charterers that individually accounted for 10% or more of the Company’s revenues, were as follows:

Cash and cash equivalents, accounts receivable trade, net, insurance claims, amounts due from related party/(ies) and accounts payable, trade and other: The carrying values reported in the accompanying consolidated balance sheets for those financial instruments are reasonable estimates of their fair values due to their short-term maturity nature. The carrying value of these instruments is separately reflected in the accompanying consolidated balance sheets.

On July 15, 2025, the Company paid a quarterly cash dividend of $17.5 per share, or $402 in the aggregate, on its then outstanding 22,957 Series D Preferred Stock to Series D Preferred Stockholders of record date July 14, 2025, for the period from April 15, 2025, to July 14, 2025, inclusive.

On July 22, 2025, the Company closed a public offering of 10,975,600 units at a price of $1.64 per unit, twenty five units consisting of one common share (following the effect of the reverse stock split discussed in (c) below), par value $0.01 per share, of the Company and one Class C Warrant to purchase one common share.

The Class C Warrants were immediately exercisable, subject to certain beneficial ownership provisions, and are exercisable until the three year anniversary of the date of issuance at an exercise price equal to 225% of the public offering price. The common shares and accompanying Class C Warrants were issued separately. In addition, the Underwriter was granted a 45-day option to purchase up to 65,854 additional common shares at the offering price of $40.75 per share and/or up to 1,646,340 Class C Warrants (the “Over-allotment option”), which was partially exercised on July 22, 2025. 439,024 common shares were issued as of closing on July 22, 2025. Gross proceeds to the Company, before deducting placement agent’s fees and other offering expenses, were approximately $18,000.

The Class C Warrants also contain certain (i) provisions adjusting the exercise price and number of underlying common shares and (ii) mechanisms pursuant to which the holders can exercise each Class C Warrant for no additional cash consideration. Based on the combination of these features, up to September 4, 2025, substantially all of the Class C Warrants (including those issued under the partial exercise of the Over-allotment option) have been exercised via such cashless mechanism and the Company issued an additional 5,952,630 common shares. The remaining Class C Warrants can be exercised for up to 267 common shares.

Effective August 25, 2025, the Company effected a one-for-twenty five reverse stock split on its issued and outstanding common stock. The Company’s common stock began trading on a split-adjusted basis on the NASDAQ Capital Market at the opening of trading on August 25, 2025. The one-for-twenty five ratio was approved by the Company’s Board on August 6, 2025. As a result of this reverse stock split, on August 25, 2025, the number of the Company’s issued and outstanding common shares was reduced from 167,402,561 to 6,696,039 with no change in the number of the Company’s authorized shares or the par value of the Company’s common stock.

F-18

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