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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All the subsidiaries of the Vessel-owning companies
are engaged in the marine transportation of liquid cargoes through the ownership and operation of tanker vessels, as listed below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Vessel-owning</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>company</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Incorporation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>date</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Vessel</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>DWT</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Year</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>built</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Acquisition</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>date</b></p></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 20%"><font style="font-size: 10pt">Secondone</font></td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: center"><font style="font-size: 10pt">05/23/2007</font></td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: center"><font style="font-size: 10pt"><i>Northsea Alpha</i></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">8,615</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: center"><font style="font-size: 10pt">2010</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: center"><font style="font-size: 10pt">05/28/2010</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Thirdone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">05/23/2007</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Northsea Beta</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">8,647</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2010</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">05/25/2010</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Fourthone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">05/30/2007</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Pyxis Malou</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">50,667</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2009</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">02/16/2009</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Sixthone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">01/15/2010</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Pyxis Delta*</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">46,616</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2006</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">03/04/2010</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Seventhone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">05/31/2011</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Pyxis Theta</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,795</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2013</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">09/16/2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Eighthone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">02/08/2013</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Pyxis Epsilon</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">50,295</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2015</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">01/14/2015</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">* Pyxis Delta, which was owned by Sixthone Corp. (“Sixthone”),
was sold to an unaffiliated third party on January 13, 2020</p>
1441000
1620000
545000
1000
-1000
-19000
-27000
4306000
4306000
-1139000
-2489000
972000
0.001
0.001
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents the Company’s
revenue disaggregated by revenue source, net of commissions, for the years ended December 31, 2018, 2019 and 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31, </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2020</b></p></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 48%"><font style="font-size: 10pt">Revenues derived from spot charters, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">16,990</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">8,067</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">7,022</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Revenues derived from time charters, net</font></td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">11,467</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">19,686</font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">14,689</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Revenues, net</b></font></td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>28,457</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>27,753</b></font></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>21,711</b></font></td></tr>
</table>
57000
407000
23000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a reconciliation
of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheets that are presented
in the accompanying consolidated statement of cash flows for the years ended December 31, 2018, 2019 and 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td>
<td> </td>
<td colspan="3" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, 2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Cash and cash equivalents</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">545</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1,441</font></td>
<td colspan="2"> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1,620</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Restricted cash, current portion</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">255</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">535</font></td>
<td colspan="2"> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Restricted cash, net of current portion</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,404</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,200</font></td>
<td colspan="2" style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2,417</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total cash and cash equivalents and restricted cash</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,204</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>5,176</b></font></td>
<td colspan="2" style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,037</b></font></td></tr>
</table>
6849000
No
No
Yes
Non-accelerated Filer
false
false
47000
4313000
4313000
58919000
54260000
3690000
3690000
10020000
4050000
13469000
24000000
3290000
3290000
8730000
14950000
24000000
26906000
20500000
8730000
17000000
16000000
24000000
24000000
9241000
3410000
257000
155000
49678000
50850000
445000
519000
24560000
13500000
21300000
2100000
Each of Secondone's and Thirdone's outstanding loan balance at December 31, 2020, amounting to $3,290, is repayable in 9 remaining quarterly installments of $100 each amounting to $900 in the aggregate, the first falling due in February 2021, and the last installment accompanied by a balloon payment of $2,390 falling due in February 2023.
The outstanding balance of the Fourthone loan of $8,730 is repayable in 9 quarterly installments amounting to $3,330, the first falling due in February 2021, and the last installment accompanied by a balloon payment of $5,400 falling due in February 2023. The first installment, amounting to $330, is followed by four amounting to $360 each and four amounting to $390 each.
The new five year loan has quarterly amortization of $0.3 million with $11 million due at maturity. The loan is priced at Libor + 3.35%.
1450000
500000
1.15
1.25
1.25
0.75
0.71
0.04
0.0818
0.0769
0.0600
3410000
3530000
35970000
1200000
10150000
4050000
14950000
-739000
-187000
-4172000
12630000
-99000
-517000
-13030000
-2203000
5661000
182297
214828
-1000
-19000
-27000
180000
-209000
-306000
-571000
1895000
-1316000
1068000
588000
435000
15250000
44500000
19909000
43640000
4503000
265000
908000
4432000
4283000
5163000
2021-02
2021-02
2021-01
2023-02
2023-02
2025-07
5400000
9250000
-689000
422000
993000
3330000
If payable, the amount due is calculated as the lesser of (a) 15% of the amount of the loan borrowed under the facility agreement and (b) 15% of the difference between (i) the charter-free fair market value of the vessel plus any dry dock reserve account balance and (ii) any outstanding loan amount at the time of the repayment or maturity of the facility.
1.50
1.55
3290000
1000
274000
1000
274000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenues for the years ended December 31, 2018,
2019 and 2020, deriving from significant charterers individually accounting for 10% or more of revenues (in percentages of total
revenues), were as follows:</p>
<p style="font: 10pt/50% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Charterer</b></font></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 42%; text-align: center"><font style="font-size: 10pt">A</font></td>
<td style="width: 2%"> </td>
<td style="width: 2%"> </td>
<td style="width: 17%; text-align: right"><font style="font-size: 10pt">23%</font></td>
<td style="width: 2%"> </td>
<td style="width: 18%; text-align: right"><font style="font-size: 10pt">71%</font></td>
<td style="width: 2%"> </td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">58%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-size: 10pt">B</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15%</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: center"><font style="font-size: 10pt">C</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">16%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td> </td>
<td style="border-top: Black 1.5pt double; border-bottom: Black 1.5pt double"> </td>
<td style="border-top: Black 1.5pt double; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 10pt"><b>38%</b></font></td>
<td style="border-top: Black 1.5pt double; border-bottom: Black 1.5pt double"> </td>
<td style="border-top: Black 1.5pt double; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 10pt"><b>71%</b></font></td>
<td style="border-top: Black 1.5pt double; border-bottom: Black 1.5pt double"> </td>
<td style="border-top: Black 1.5pt double; border-bottom: Black 1.5pt double; text-align: right"><font style="font-size: 10pt"><b>74%</b></font></td></tr>
</table>
21711000
28457000
27753000
21962881
13190000
95262
260495
226000
113000
113000
226000
5176000
4037000
6693000
4204000
174000
56000
-542000
-99000
-470000
1.00
2308000
2308000
Yes
true
false
false
2020
226000
113000
1415000
726000
35000
57000
169000
113000
Equal to the lower of $400 and excess cash computed through a cash sweep mechanism, plus a balloon payment due at maturity
P5Y
900000
0.0465
0.110
1243000
663000
743000
672000
500000
1000
663000
663000
The total net proceeds from the sale of the vessel were approximately $13.2 million, of which, $5.7 million was used for the prepayment of Pyxis Delta and Pyxis Theta loan facility and $7.5 million for the repayment of the Company's liabilities to its related party (Maritime) and for the repayment of obligations to its trade creditors.
1243000
672000
7000
-6982000
-8214000
-8330000
332106
-18525
18525
13197000
13197000
4571000
69000
260000
25000
2390000
15250000
11293000
0.0335
7300000
300000
No change shall be made directly or indirectly in the ownership, beneficial ownership, control or management of Seventhone or of the Company or any share therein or the Pyxis Theta, as a result of which less than 100% of the shares and voting rights in Seventhone or less than 40% of the shares and voting rights in the Company remain in the ultimate legal and beneficial owners disclosed at the negotiation of this loan agreement.
5
600000
0.796
0.473
2007-05-23
2007-05-23
2007-05-30
2010-01-15
2011-05-31
2013-02-08
Northsea Alpha
Northsea Beta
Pyxis Malou
Pyxis Theta
Pyxis Epsilon
8615
8647
50667
46616
51795
50295
2010
2010
2009
2006
2013
2015
2010-05-28
2010-05-25
2009-02-16
2010-03-04
2013-09-16
2015-01-14
0.300
P25Y
0.750
0.986
0.78
0.930
1
2895000
3735000
2417000
3659000
2282000
2282000
21711000
8067000
16990000
19686000
11467000
28457000
27753000
7022000
14689000
0.74
0.38
0.71
0.58
0.00
0.16
0.23
0.15
0.00
0.71
0.00
0.00
5176000
4037000
4204000
0.325
0.450
0.0125
P5Y
P5Y
2015-03-23
1632000
1618000
1628000
In the event of a change of control of the Company during the management period or within 12 months after the early termination of the Head Management Agreement, then the Company will pay to Maritime an amount equal to 2.5 times the then annual Administration Fees. Pursuant to the amendment of this agreement on March 18, 2020, in the event of such change of control and termination, the Company shall also pay to Maritime an amount equal to 12 months of the then daily Ship-management Fees.
Effective January 1, 2019 and 2020, the Ship-management Fees and the Administration Fees were increased by 0.62%, and, 0.26% respectively, in line with the average inflation rate of Greece for 2018 and 2019. For 2020, the average rate in Greece was a deflation of 1.24% and as a result no adjustment shall be made to the Ship-management Fees and the Administration Fees effective January 1, 2021, which will remain, for the particular calendar year, as per the previous year.
2500000
0.0275
0.090
2020-03-31
2017-01-15
395000
213000
452000
225000
226000
170000
226000
57000
57000
276000
354000
351000
2545000
2692000
2703000
685000
625000
625000
625000
685000
685000
486000
569000
174000
56000
-2756000
134310000
108523000
109208000
12989000
26318000
21016000
25434000
-26412000
10622000
-15790000
1068000
588000
435000
-156000
100000000
2300000
3675000
5233222
1735040
1.40
182297
214828
-9000
-9000
1000
-1000
-71000
-71000
-82000
10000000
0.035
2022-07-18
4037000
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On July 2, 2020, NASDAQ had notified the Company of its noncompliance with the minimum bid price of $1.00 over the previous 30 consecutive business days as required by the Listing Rules of the NASDAQ Stock Market. On December 29, 2020, the Company received written notification granting the Company a 180-day extension, or until June 28, 2021, to regain compliance with the minimum bid price requirement. Subsequently, from January 28, 2021 to February 16, 2021, the Company's closing bid price for its common shares were $1.00 per share or greater and, On February 17, 2021, NASDAQ informed the Company that it had regained compliance with the exchange's minimum closing bid price rule (NASDAQ Listing Rule 5550(a)(2)).
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"><b>1. Basis of Presentation
and General Information</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">PYXIS TANKERS INC. (“Pyxis”) is a corporation
incorporated in the Republic of the Marshall Islands on March 23, 2015. As of December 31, 2020, Pyxis owns 100% ownership interest in
the following five vessel-owning companies:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 24px; text-align: justify"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">SECONDONE CORPORATION LTD, established under the laws of the Republic of Malta (“Secondone”);</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">THIRDONE CORPORATION LTD, established under the laws of the Republic of Malta (“Thirdone”);</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">FOURTHONE CORPORATION LTD, established under the laws of the Republic of Malta (“Fourthone”);</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">SEVENTHONE CORP., established under the laws of the Republic of the Marshall Islands (“Seventhone”); and</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">EIGHTHONE CORP., established under the laws of the Republic of the Marshall Islands (“Eighthone,” and collectively with Secondone, Thirdone, Fourthone, and Seventhone, the “Vessel-owning companies”).</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We also currently own 100% ownership interest in the
following non-vessel owning companies:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 24px; text-align: justify"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">SIXTHONE CORP., established under the laws of the Republic of the Marshall Islands (“Sixthone”);</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">MARITIME TECHNOLOGIES CORP., established under the laws of Delaware;</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All the subsidiaries of the Vessel-owning companies
are engaged in the marine transportation of liquid cargoes through the ownership and operation of tanker vessels, as listed below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Vessel-owning</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>company</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Incorporation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>date</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Vessel</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>DWT</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Year</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>built</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Acquisition</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>date</b></p></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 20%"><font style="font-size: 10pt">Secondone</font></td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: center"><font style="font-size: 10pt">05/23/2007</font></td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: center"><font style="font-size: 10pt"><i>Northsea Alpha</i></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"><font style="font-size: 10pt">8,615</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: center"><font style="font-size: 10pt">2010</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 15%; text-align: center"><font style="font-size: 10pt">05/28/2010</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Thirdone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">05/23/2007</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Northsea Beta</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">8,647</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2010</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">05/25/2010</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Fourthone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">05/30/2007</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Pyxis Malou</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">50,667</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2009</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">02/16/2009</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Sixthone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">01/15/2010</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Pyxis Delta*</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">46,616</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2006</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">03/04/2010</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Seventhone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">05/31/2011</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Pyxis Theta</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,795</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2013</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">09/16/2013</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Eighthone</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">02/08/2013</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><i>Pyxis Epsilon</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">50,295</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">2015</font></td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">01/14/2015</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">* Pyxis Delta, which was owned by Sixthone Corp. (“Sixthone”),
was sold to an unaffiliated third party on January 13, 2020</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Secondone, Thirdone and Fourthone were initially established
under the laws of the Republic of the Marshall Islands, under the names SECONDONE CORP., THIRDONE CORP. and FOURTHONE CORP., respectively.
In March and April 2018, these vessel-owning companies completed their re-domiciliation under the jurisdiction of the Republic of Malta
and were renamed as mentioned above. For further information, please refer to Note 7.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”)
and include the accounts of Pyxis and its wholly-owned subsidiaries (collectively the “Company”), as of December 31, 2019
and 2020 and for the years ended December 31, 2018, 2019 and 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All of the Company’s vessels are double-hulled
and are engaged in the transportation of refined petroleum products and other liquid bulk items, such as organic chemicals and vegetable
oils. The vessels <i>Northsea Alpha</i> and <i>Northsea Beta</i> are smaller tanker sister ships and <i>Pyxis Malou</i>, <i>Pyxis Theta</i>
and <i>Pyxis Epsilon</i>, are medium-range tankers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to the consummation of the transactions discussed
below, Mr. Valentios (“Eddie”) Valentis was the sole ultimate stockholder of Pyxis and the Vessel-owning companies, holding
all of their issued and outstanding share capital through Maritime Investors Corp. (“Maritime Investors”). Maritime Investors
owned directly 100% of Pyxis, Secondone and Thirdone, and owned indirectly (through the intermediate holding company PYXIS HOLDINGS INC.
(“Holdings”)) 100% of Fourthone, Sixthone, Seventhone and Eighthone.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 25, 2015, Pyxis caused MARITIME TECHNOLOGIES
CORP., a Delaware corporation (“Merger Sub”), to be formed as its wholly-owned subsidiary and to be a party to the agreement
and plan of merger discussed below.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 23, 2015, Pyxis and Merger Sub entered into
an agreement and plan of merger (the “Agreement and Plan of Merger”) (further amended on September 22, 2015) with among others,
LOOKSMART LTD. (“LS”), a digital advertising solutions company listed on NASDAQ. Merger Sub served as the entity into which
LS was merged in accordance with the Agreement and Plan of Merger (the “Merger”). Upon execution of the Agreement and Plan
of Merger, Pyxis paid LS a cash consideration of $600.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Prior to the Merger, on October 26, 2015, Holdings
and Maritime Investors transferred all of their shares in the Vessel-owning companies to Pyxis as a contribution in kind, at no consideration.
Since there was no change in ultimate ownership or control of the business of the Vessel-owning companies, the transaction constituted
a reorganization of companies under common control and was accounted for in a manner similar to a pooling of interests. Accordingly, upon
the transfer of the assets and liabilities of the Vessel-owning companies, the financial statements of the Company were presented using
combined historical carrying amounts of the assets and liabilities of the Vessel-owning companies.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 28, 2015, in accordance with the terms
of the Agreement and Plan of Merger, LS, after having divested of its business and all of its assets and liabilities, merged with and
into the Merger Sub, with Merger Sub surviving the Merger and continuing to be a wholly-owned subsidiary of Pyxis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 28, 2015, the Merger was consummated and
the Company’s shares commenced their listing on the NASDAQ Capital Markets thereafter.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pyxis was both the legal and accounting acquirer of
LS. The acquisition by Pyxis of LS was not an acquisition of an operating company as the business, assets and liabilities of LS were spun-off
prior to the Merger. As such, for accounting purposes, the Merger between Merger Sub and LS was accounted for as a capital transaction
rather than as a business combination.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">PYXIS MARITIME CORP. (“Maritime”), a corporation
established under the laws of the Republic of the Marshall Islands, which is beneficially owned by Mr. Valentis, provides certain ship
management services to the Vessel-owning companies (Note 3).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">With effect from the delivery of each vessel, the
crewing and technical management of the vessels were contracted to INTERNATIONAL TANKER MANAGEMENT LTD. (“ITM”) with permission
from Maritime. ITM is an unrelated third party technical manager, represented by its branch based in Dubai, UAE. Each ship-management
agreement with ITM is in force until it is terminated by either party. The ship-management agreements can be cancelled either by the Company
or ITM for any reason at any time upon three months’ advance notice.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Impact of COVID-19 on the Company’s Business</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The spread of the COVID-19 virus, which has been declared
a pandemic by the World Health Organization, in 2020 has caused substantial disruptions in the global economy and the shipping industry,
as well as significant volatility in the financial markets, the severity and duration of which remains uncertain.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The impact of the COVID-19 pandemic continues to unfold
and may continue to have negative effect on the Company’s business, financial performance and the results of its operations, including
due to decreased demand for global seaborne refined petroleum products trade and related charter rates, the extent of which will depend
largely on future developments. In light of COVID-19, the Company, as of December 31, 2020, evaluated whether there are conditions or
events that cause substantial doubt about its ability to continue as a going concern. The Company reviewed its revenue concentration risk,
the recoverability of its accounts receivable (i.e. credit risk) and tested its assets for potential impairment. As a result of this evaluation
it has been determined that the only material impact of COVID-19 to the Company has been lower charter activity which has affected the
entire industry and resulted in lower profitability and greater losses as well as in higher dry-docking costs. However, many of the Company’s
estimates and assumptions, especially charter rates, require increased judgment and 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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, Mr. Valentis beneficially
owned approximately 79.6% of the Company’s common stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>2. Significant Accounting Policies:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(a) Principles of Consolidation:</i></b> The
accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. The consolidated financial statements
include the accounts of Pyxis and its wholly-owned subsidiaries (the Vessel-owning companies and Merger Sub). All intercompany balances
and transactions have been eliminated upon consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pyxis, as the holding company, determines whether
it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable
interest entity. Under Accounting Standards Codification (“ASC”) 810 “Consolidation” a voting interest entity
is an entity in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides
the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make financial and operating
decisions. Pyxis consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%), of
the voting interest. Variable interest entities (“VIE”) are entities as defined under ASC 810-10, that in general either do
not have equity investors with voting rights or that have equity investors that do not provide sufficient financial resources for the
entity to support its activities. A controlling financial interest in a VIE is present when a company absorbs a majority of an entity’s
expected losses, receives a majority of an entity’s expected residual returns, or both. The company with a controlling financial
interest, known as the primary beneficiary, is required to consolidate the VIE. Pyxis evaluates all arrangements that may include a variable
interest in an entity to determine if it may be the primary beneficiary, and would be required to include assets, liabilities and operations
of a VIE in its consolidated financial statements. As of December 31, 2020, no such interest existed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(b) Use of Estimates:</i></b> The preparation
of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(c) Comprehensive Income / (Loss): </i></b>The
Company follows the provisions of ASC 220 “Comprehensive Income”, which requires separate presentation of certain transactions
which are recorded directly as components of equity. The Company had no transactions which affect comprehensive loss during the years
ended December 31, 2018, 2019 and 2020 and, accordingly, comprehensive loss was equal to net loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(d) Foreign Currency Translation: </i></b>The
functional currency of the Company is the U.S. dollar as the Company’s vessels operate in international shipping markets and, therefore,
primarily transact business in U.S. dollars. The Company’s accounting records are maintained in U.S. dollars. Transactions involving
other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the time of the transactions. At
the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. dollars
at the exchange rates in effect at the balance sheet date. Resulting gains or losses are included in Vessel operating expenses in the
accompanying consolidated statements of comprehensive loss. All amounts in the financial statements are presented in thousand U.S. dollars
rounded to the nearest thousand.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(e) Commitments and Contingencies: </i></b>Provisions
are recognized when: the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation
can be made. Provisions are reviewed at each balance sheet date. Disclosure of a contingency is made if there is at least a reasonable
possibility that a change in the Company’s estimate of its probable liability could occur in the near future.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(f) Insurance Claims Receivable:</i></b> The
Company records insurance claim recoveries for insured losses incurred on damage to fixed assets and for insured crew medical expenses.
Insurance claim recoveries are recorded, net of any deductible amounts, at the time the Company’s fixed assets suffer insured damages
or when crew medical expenses are incurred, recovery is probable under the related insurance policies and the claim is not subject to
litigation. The Company assessed the adoption of ASC 326 regarding the collectability of insurance claims recoveries and concluded that
there is no material impact in the Company’s financial statements as of the date of the adoption of ASC 326 on January 1, 2020 and
as of December 31, 2020 and thus no provision for credit losses was recorded as of those dates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(g) Concentration of Credit Risk:</i></b> Financial
instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash
equivalents and trade accounts receivable. The Company places its cash and cash equivalents, consisting mostly of deposits, with qualified
financial institutions with high creditworthiness. The Company performs periodic evaluations of the relative creditworthiness of those
financial institutions that are considered in the Company’s investment strategy. The Company limits its credit risk with accounts
receivable by performing ongoing credit evaluations of its customers’ financial condition and generally does not require collateral
for its accounts receivable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(h) Cash and Cash Equivalents and Restricted
Cash:</i></b> The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity
of three months or less to be cash equivalents. Restricted cash is associated with pledged retention accounts in connection with the loan
repayments and minimum liquidity requirements under the loan agreements discussed in Note 7 and is presented separately in the accompanying
consolidated balance sheets. The Company assessed the adoption of ASC 326 for cash equivalents and restricted cash and concluded that
there is no impact in the Company’s financial statements as of the date of the adoption of ASC 326 on January 1, 2020 and as of
December 31, 2020 and thus no provision for credit losses was recorded as of those dates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(i) Income Taxation:</i></b> Under the laws
of the Republic of the Marshall Islands, the country of incorporation of certain of the Company’s vessel-owning companies, and/or
the vessels’ registration, the vessel-owning companies are not liable for any income tax on their income derived from shipping operations.
Instead, a tax is levied depending on the countries where the vessels trade based on their tonnage, which is included in Vessel operating
expenses in the accompanying consolidated statements of comprehensive loss. The vessel-owning companies with vessels that have called
on the United States during the relevant year of operation are obliged to file tax returns with the Internal Revenue Service. The applicable
tax is 50% of 4% of U.S. related gross transportation income unless an exemption applies. The Company believes that based on current legislation
the relevant vessel-owning companies are entitled to an exemption because they satisfy the relevant requirements, namely that (i) the
related vessel-owning companies are incorporated in a jurisdiction granting an equivalent exemption to U.S. corporations and (ii) over
50% of the ultimate stockholders of the vessel-owning companies are residents of a country granting an equivalent exemption to U.S. persons.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the laws of the Republic of Malta, the country
of incorporation of certain of the Company’s vessel-owning companies, and/or the vessels’ registration, these vessel-owning
companies are not liable for any income tax on their income derived from shipping operations. The Republic of Malta is a country that
has an income tax treaty with the United States. Accordingly, income earned by vessel-owning companies organized under the laws of the
Republic of Malta may qualify for a treaty-based exemption. Specifically, Article 8 (Shipping and Air Transport) of the treaty sets out
the relevant rule to the effect that profits of an enterprise of a Contracting State from the operation of ships in international traffic
shall be taxable only in that State.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(j) Inventories:</i></b> Inventories consist
of lubricants and bunkers (where applicable) on board the vessels, which are stated at the lower of cost and net realizable value. Cost
is determined by the first-in, first-out (“FIFO”) method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(k) Trade Accounts Receivable,
Net:</i></b> Under spot charters, the Company normally issues its invoices to charterers at the completion of the voyage. Invoices
are due upon issuance of the invoice. Since the Company satisfies its performance obligation over the time of the spot charter, the
Company recognizes its unconditional right to consideration in trade accounts receivable, net of a provision for doubtful accounts,
if any. Trade accounts receivable from spot charters as of December 31, 2019 and 2020, amounted to $743 and $672, respectively. The
allowance for doubtful accounts at December 31, 2019 was zero. The allowance for expected credit losses at December 31, 2020 was $9
(Note 2(aa)). Under time charter contracts, the Company normally issues invoices on a monthly basis 30 days in advance of providing
its services. Trade accounts receivable from time charters as of December 31, 2019 and 2020, amounted to $500 and $1,
respectively. Hire collected in advance includes cash received in advance of performance under the contract prior to the balance
sheet date and is realized when the associated revenue is recognized under the contract in periods after such date. The hire
collected in advance as of December 31, 2019 and 2020 was $1,415 and $ 706 respectively and concerns hire received in advance from
time charters.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(l) Vessels, Net:</i></b> Vessels are stated
at cost, which consists of the contract price and any material expenses incurred in connection with the acquisition (initial repairs,
improvements, delivery expenses and other expenditures to prepare the vessel for her initial voyage, as well as professional fees directly
associated with the vessel acquisition). Subsequent expenditures for major improvements are also capitalized when they appreciably extend
the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise, these amounts are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The cost of each of the Company’s vessels is
depreciated from the date of acquisition on a straight-line basis over the vessels’ remaining estimated economic useful life, after
considering the estimated residual value. A vessel’s residual value is equal to the product of its lightweight tonnage and estimated
scrap rate of $0.300 per ton. The Company estimates the useful life of the Company’s vessels to be 25 years from the date of initial
delivery from the shipyard. In the event that future regulations place limitations over the ability of a vessel to trade on a worldwide
basis, its remaining useful life will be adjusted at the date such regulations are adopted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(m) Impairment of Long Lived Assets:</i></b>
The Company reviews its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount
plus the unamortized dry-dock and survey balances of these assets may not be recoverable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In developing estimates of future undiscounted cash
flows, the Company makes assumptions and estimates about the vessels’ future performance, relating to time charter equivalent rates
by vessel type, vessels’ operating expenses, management fees, vessels’ capital expenditures, vessels’ residual value,
fleet utilization and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future undiscounted
cash flows are based on historical trends as well as future expectations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To the extent impairment indicators are present, the
projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed days and
an estimated daily time charter rate for the unfixed days (based on the most recent seven year historical average rates over the remaining
estimated useful life of the vessels), expected outflows for vessels’ operating expenses, planned dry-docking and special survey
expenditures, management fees expenditures which are adjusted every year, pursuant to the Company’s existing group management agreement,
and fleet utilization of 75.0% to 98.6% (depending on the type of the vessel) for the first year and 78% to 93.0%, including scheduled
off-hire days for planned dry-dockings and vessel surveys, based on historical experience. The residual value used in the impairment test
is estimated to be approximately $0.3 per lightweight ton in accordance with the vessels’ depreciation policy.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Should the carrying value plus the unamortized dry-dock
and survey balance of the vessel exceed its estimated future undiscounted net operating cash flows, impairment is measured based on the
excess of the carrying amount over the fair market value of the asset. The Company determines the fair value of its vessels based on management
estimates and assumptions and by making use of available market data and taking into consideration third party valuations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The review of the carrying amounts plus the unamortized
dry-dock and survey balances in connection with the estimated recoverable amount for certain of the Company’s as of December 31,
2018 indicated an impairment charge of $2,282. No impairment charge for the Company’s vessels was recorded as of December 31, 2019
and 2020 respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(n) Long-lived Assets Classified as Held for
Sale:</i></b> The Company classifies long-lived assets and disposal groups as being held-for-sale in accordance with ASC 360, “Property,
Plant and Equipment”, when: (i) management, having the authority to approve the action, commits to a plan to sell the asset; (ii)
the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such
assets; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated;
(iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one
year; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (vi) actions
required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be
withdrawn. Long-lived assets classified as held-for-sale are measured at the lower of their carrying amount or fair value less costs to
sell. According to ASC 360-10-35, the fair value less costs to sell of the long-lived asset (disposal group) should be assessed at each
reporting period it remains classified as held-for-sale. Subsequent changes in the long-lived asset’s fair value less costs to sell
(increase or decrease) would be reported as an adjustment to its carrying amount, not exceeding the carrying amount of the long-lived
asset at the time it was initially classified as held-for-sale. These long-lived assets are not depreciated once they meet the criteria
to be classified as held-for-sale and are classified in current assets on the consolidated balance sheet (Notes 5 and 6).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(o) Financial Derivative Instruments: </i></b>The
Company enters into interest rate derivatives to manage its exposure to fluctuations of interest rate risk associated with its borrowings.
All derivatives are recognized in the consolidated financial statements at their fair value. The fair value of the interest rate derivatives
is based on a discounted cash flow analysis. When such derivatives do not qualify for hedge accounting, the Company recognizes their fair
value changes in current period earnings. When the derivatives qualify for hedge accounting, the Company recognizes the effective portion
of the gain or loss on the hedging instrument directly in other comprehensive income / (loss), while the ineffective portion, if any,
is recognized immediately in current period earnings. The Company, at the inception of the transaction, documents the relationship between
the hedged item and the hedging instrument, as well as its risk management objective and the strategy of undertaking various hedging transactions.
The Company also assesses at hedge inception whether the hedging instruments are highly effective in offsetting changes in the cash flows
of the hedged items.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company discontinues cash flow hedge accounting
if the hedging instrument expires and it no longer meets the criteria for hedge accounting or its designation is revoked by the Company.
At that time, any cumulative gain or loss on the hedging instrument recognized in equity is kept in equity until the forecasted transaction
occurs. When the forecasted transaction occurs, any cumulative gain or loss on the hedging instrument is recognized in the consolidated
statement of comprehensive loss. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in
equity is transferred to the current period’s consolidated statement of comprehensive loss as financial income or expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(p) Accounting for Special Survey and Dry-docking
Costs:</i></b> The Company follows the deferral method of accounting for special survey and dry-docking costs, whereby actual costs incurred
at the yard and parts used in the dry-docking or special survey, are deferred and are amortized on a straight-line basis over the period
through the date the next survey is scheduled to become due. Costs deferred are limited to actual costs incurred at the shipyard and costs
incurred in the dry-docking or special survey. If a dry-dock or a survey is performed prior to the scheduled date, any remaining unamortized
balances of the previous dry-dock and survey are immediately written-off. Unamortized dry-dock and survey balances of vessels that are
sold are written-off and included in the calculation of the resulting gain or loss in the period of the vessel’s sale.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Furthermore, unamortized dry-docking and special survey
balances of vessels that are classified as Assets held-for-sale and are not recoverable as of the date of such classification are immediately
written-off and included in the resulting loss on vessel held-for-sale.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(q) Financing Costs:</i></b> Costs associated
with new loans or refinancing of existing loans, including fees paid to lenders or required to be paid to third parties on the lender’s
behalf for obtaining new loans or refinancing existing loans, are recorded as a direct deduction from the carrying amount of the debt
liability. Such costs are deferred and amortized to Interest and finance costs in the consolidated statements of comprehensive loss during
the life of the related debt using the effective interest method. Unamortized costs relating to loans repaid or refinanced, meeting the
criteria of debt extinguishment, are expensed in the period the repayment or refinancing is made. Commitment fees relating to undrawn
loan principal are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(r) Fair Value Measurements:</i></b> The Company
follows the provisions of Accounting Standard Update (“ASU”) 2015-07 “Fair Value Measurements and Disclosures”,
Topic 820, which defines and provides guidance as to the measurement of fair value. This standard creates a hierarchy of measurement and
indicates that, when possible, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets
and the lowest priority (Level 3) to unobservable data, for example, the reporting entity’s own data. Under the standard, fair value
measurements are separately disclosed by level within the fair value hierarchy (Note 10).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(s) Segment Reporting:</i></b> The Company reports
financial information and evaluates its operations by charter revenues and not by the length of ship employment for its customers, i.e.,
spot or time charters. The Company does not use discrete financial information to evaluate the operating results for each such type of
charter. Although revenue can be identified for these types of charters, management cannot and does not identify expenses, profitability
or other financial information for these charters. Furthermore, when the Company charters a vessel to a charterer, the charterer is free
to trade the vessel worldwide (subject to certain agreed exclusions) and, as a result, the disclosure of geographic information is impracticable.
As a result, management, reviews operating results solely by revenue per day and operating results of the fleet and thus the Company has
determined that it operates under one reportable segment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(t) Income/(Loss) per Share:</i></b> Basic income/(loss)
per share is computed by dividing the net income/(loss) attributable to common shareholders by the weighted average number of common shares
outstanding during the period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The computation of diluted income/(loss) per share
reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted at
the beginning of the periods presented, or issuance date, if later. The treasury stock method is used to compute the dilutive effect of
warrants and, shares issued under the equity incentive plan and the promissory note. The if-converted method is used to compute the dilutive
effect of shares which could be issued upon conversion of the Series A Convertible Preferred Shares into common shares. Potential common
shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the
calculation of diluted earnings per share. As the Company reported losses for the years ended December 31, 2018, 2019 and 2020, the effect
of any incremental shares would be antidilutive and thus excluded from the computation of loss per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(u) Going Concern: </i></b>The Company performs
cash flow projections on a regular basis to evaluate whether it will be in a position to cover its liquidity needs for the next 12-month
period and in compliance with the financial and security collateral cover ratio covenants under its existing debt agreements. In developing
estimates of future cash flows, the Company makes assumptions about the vessels’ future performance, with significant assumptions
relating to time charter equivalent rates by vessel type, vessels’ operating expenses, vessels’ capital expenditures, fleet
utilization, the Company’s management fees and general and administrative expenses, and cash flow requirements for debt servicing.
The assumptions used to develop estimates of future cash flows are based on historical trends as well as future expectations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, the Company had a working
capital deficit of $2,895, defined as current assets minus current liabilities. The Company considered such deficit in conjunction with
the future market prospects and potential future financings. As of the filing date of these consolidated financial statements, the Company
believes that it will be in a position to cover its liquidity needs for the next 12-month period through the recent Private Placement
of Equity, the contemplated debt refinancing of the Entrust Loan (Note 13) and cash generated from the vessels’ operations and
possible asset sales. The Company believes that will be in compliance with the financial and security collateral cover ratio covenants
under its existing debt agreements for the next 12-month period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(v) Revenues, net:</i></b> The Company generates
its revenues from charterers. The vessels are chartered using either spot charters, where a contract is made in the spot market for the
use of a vessel for a specific voyage for a specified charter rate, or time charters, where a contract is entered into for the use of
a vessel for a specific period of time and a specified daily charter hire rate.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents the Company’s revenue
disaggregated by revenue source, net of commissions, for the years ended December 31, 2018, 2019 and 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2020</b></p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt">Revenues derived from spot charters, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">16,990</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">8,067</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">7,022</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Revenues derived from time charters, net</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">11,467</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">19,686</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">14,689</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Revenues, net</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>28,457</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>27,753</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>21,711</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue from customers (ASC 606):</i></b> As
of January 1, 2018, the Company adopted Accounting Standard Update (“ASU”) 2014-09 “<i>Revenue from Contracts with Customers
(Topic 606)</i>”. The core principle is that a company should recognize revenue when promised goods or services are transferred
to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The Company
analyzed its contracts with charterers at the adoption date and has determined that its spot charters fall under the provisions of ASC
606, while its time charter agreements are lease agreements that fall under the provisions of ASC 842 and that contain certain non-lease
components. The Company elected to adopt ASC 606 by applying the modified retrospective transition method, recognizing the cumulative
effect of adopting this guidance as an adjustment to the 2018 opening balance of accumulated deficit. As of December 31, 2017, there were
no vessels employed under spot charters and as a result, the Company has not included any adjustments to the 2018 opening balance of accumulated
deficit and prior periods were not retrospectively adjusted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company assessed its contracts with charterers
for spot charters and concluded that there is one single performance obligation for its spot charter, which is to provide the charterer
with a transportation service within a specified time period. In addition, the Company has concluded that a spot charter meets the criteria
to recognize revenue over time as the charterer simultaneously receives and consumes the benefits of the Company’s performance.
The adoption of this standard resulted in a change whereby the Company’s method of revenue recognition changed from discharge-to-discharge
(assuming a new charter has been agreed before the completion of the previous spot charter) to load-to-discharge. This resulted in no
revenue being recognized from discharge of the prior spot charter to loading of the current spot charter and all revenue being recognized
from loading of the current spot charter to discharge of the current spot charter. This change results in revenue being recognized later
in the voyage, which may cause additional volatility in revenues and earnings between periods. Demurrage income represents payments by
a charterer to a vessel owner when loading or discharging time exceeds the stipulated time in the spot charter. The Company has determined
that demurrage represents a variable consideration and estimates demurrage at contract inception. Demurrage income estimated, net of address
commission, is recognized over the time of the charter as the performance obligation is satisfied.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under a spot charter, the Company incurs and pays
for certain voyage expenses, primarily consisting of brokerage commissions, port and canal costs and bunker consumption, during the spot
charter (load-to-discharge) and during the ballast voyage (date of previous discharge to loading, assuming a new charter has been agreed
before the completion of the previous spot charter). Before the adoption of ASC 606, all voyage expenses were expensed as incurred, except
for brokerage commissions. Brokerage commissions are deferred and amortized over the related voyage period in a charter to the extent
revenue has been deferred since commissions are earned as the Company’s revenues are earned. Under ASC 606 and after the implementation
of ASC 340-40 <i>“Other assets and deferred costs”</i> for contract costs, incremental costs of obtaining a contract with
a customer and contract fulfillment costs, should be capitalized and amortized as the performance obligation is satisfied, if certain
criteria are met. The Company assessed the new guidance and concluded that voyage costs during the ballast voyage represented costs to
fulfil a contract which give rise to an asset and should be capitalized and amortized over the spot charter, consistent with the recognition
of voyage revenues from spot charter from load-to-discharge, while voyage costs incurred during the spot charter should be expensed as
incurred. With respect to incremental costs, the Company has selected to adopt the practical expedient in the guidance and any costs to
obtain a contract will be expensed as incurred, for the Company’s spot charters that do not exceed one year. Vessel operating expenses
are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, pursuant to this standard and the new
Leases standard (discussed below), as of January 1, 2018, the Company elected to present Revenues net of address commissions. Address
commissions represent a discount provided directly to the charterers based on a fixed percentage of the agreed upon charter. Since address
commissions represent a discount (sales incentive) on services rendered by the Company and no identifiable benefit is received in exchange
for the consideration provided to the charterer, these commissions are presented as a reduction of revenue in the accompanying consolidated
statements of comprehensive loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not disclose the value of unsatisfied
performance obligations for contracts with an original expected length of one year or less, in accordance with the optional exception
in ASC 606.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Leases: </i></b>The Company elected to
early adopt the new lease standard “Leases” ASC 842 as of September 30, 2018 with adoption reflected as of January 1, 2018. The
Company adopted the standard by using the modified retrospective method and selected the additional optional transition method.
Also, the Company elected to apply a package of practical expedients under ASC 842, which allowed the Company, not to reassess (i)
whether any existing contracts, on the date of adoption, contained a lease, (ii) lease classification of existing leases classified
as operating leases in accordance with ASC 840 and (iii) initial direct costs for any existing leases. In this respect no <font style="background-color: white">cumulative-effect
adjustment was recognized </font>to the 2018 opening balance of accumulated deficit<font style="background-color: white">. </font>The
Company assessed its new time charter contracts at the adoption date under the new guidance and concluded that these contracts
contain a lease with the related executory costs (insurance), as well as non-lease components to provide other services related to
the operation of the vessel, with the most substantial service being the crew cost to operate the vessel. The Company concluded that
the criteria for not separating the lease and non-lease components of its time charter contracts are met, since (i) the time pattern
of recognizing revenues for crew and other services for the operation of the vessels, is similar to the time pattern of recognizing
rental income, (ii) <font style="background-color: white">the lease component of the time charter contracts, if accounted for
separately, would be classified as an operating lease, and </font>(iii) the predominant component in its time charter agreements is
the lease component. After the lease commencement date, the Company evaluates lease modifications, if any, that could result in a
change in the accounting for leases. For a lease modification, an evaluation is performed to determine if it should be treated as
either a separate lease or a change in the accounting of an existing lease. Brokerage and address commissions on time charter
revenues are deferred and amortized over the related voyage period, to the extent revenue has been deferred, since commissions are
earned as revenues earned, and are presented in voyage expenses and as a reduction to voyage revenues (see above), respectively.
Vessel operating expenses are expensed as incurred. By taking the practical expedients, existing time charters at January 1, 2018,
continued to be accounted for under ASC 840 while new time charters commencing in 2018 and onwards are accounted for under ASC 842.
The adoption of ASC 842 had no effect on the Company’s consolidated financial position and results of operations for the year
ended December 31, 2018 and 2019. <font style="background-color: white">Upon adoption of ASC 842, the Company made an accounting
policy election to not recognize contract fulfillment costs for time charters under ASC 340-40. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenues for the years ended December 31, 2018, 2019
and 2020, deriving from significant charterers individually accounting for 10% or more of revenues (in percentages of total revenues),
were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Charterer</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 43%; text-align: center"><font style="font-size: 10pt">A</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">23</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">71</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">58</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center"><font style="font-size: 10pt">B</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: center"><font style="font-size: 10pt">C</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">16</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: center"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>38</b></font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>%</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>71</b></font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>%</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>74</b></font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>%</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(w) Restricted Cash: </i></b>As of January 1,
2018, the Company adopted the ASU 2016-18 “<i>Statement of Cash Flows (Topic 230): Restricted Cash</i>”, which requires that
the statement of cash flows explain the change in the total of cash and cash equivalents and restricted cash. Restricted cash of $3,659,
$3,735 and $2,417 as at December 31, 2018, 2019 and 2020, respectively, has been aggregated with cash and cash equivalents in both the
beginning-of-year and end-of-year line items of the consolidated statements of cash flows for each of the periods presented. The implementation
of this update has no impact on the Company’s consolidated balance sheet and consolidated statement of comprehensive loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a reconciliation of cash
and cash equivalents and restricted cash reported within the accompanying consolidated balance sheets that are presented in the accompanying
consolidated statement of cash flows for the years ended December 31, 2018, 2019 and 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 43%"><font style="font-size: 10pt">Cash and cash equivalents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">545</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">1,441</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">1,620</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Restricted cash, current portion</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">255</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">535</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Restricted cash, net of current portion</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,404</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,200</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2,417</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total cash and cash equivalents and restricted cash</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,204</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>5,176</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,037</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(x) Business combinations:</i></b> As of January
1, 2018, the Company adopted the ASU No. 2017-01, “Business Combinations” (Topic 805) which clarifies the definition of a
business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisition
(or disposals) of assets or businesses. Under current implementation guidance, the existence of an integrated set of acquired activities
(inputs and processes that generate outputs) constitutes an acquisition of business. This ASU provides a screen to determine when a set
of assets and activities does not constitute a business. The implementation of this update had no effect on the Company’s consolidated
financial position and results of operations for the year ended December 31, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(y) Debt Modifications and Extinguishments:</i></b>
The Company follows the provisions of ASC 470-50, Modifications and Extinguishments, to account for all modifications or extinguishments
of debt instruments, except debt that is extinguished through a troubled debt restructuring or a conversion of debt to equity securities
of the debtor pursuant to conversion privileges provided in terms of the debt at issuance. This standard also provides guidance on whether
an exchange of debt instruments with the same creditor constitutes an extinguishment and whether a modification of a debt instrument should
be accounted for in the same manner as an extinguishment. In circumstances where an exchange of debt instruments or a modification of
a debt instrument does not result in extinguishment accounting, this standard provides guidance on the appropriate accounting treatment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 8, 2020, Seventhone entered into a $15,250
secured loan agreement with the new lender, for the purpose of refinancing the outstanding indebtedness of $11,293 under the previous
loan facility, which was fully settled on the same day. The Company considered the guidance under ASC 470-50 “Debt Modifications
and Extinguishments” and concluded that the transaction should be accounted for as debt extinguishment (Note 7).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(z) Distinguishing Liabilities from Equity:</i></b>
The Company follows the provisions of ASC 480 “Distinguishing liabilities from equity” to determine the classification of
certain freestanding financial instruments as either liabilities or equity. The Company in its assessment for the accounting of the Series
A Convertible Preferred Shares and detachable warrants issued in connection with the October 13, 2020 public offering has taken into consideration
ASC 480 “Distinguishing liabilities from equity” and determined that the Series A Convertible Preferred Shares and detachable
warrants should be classified as equity instead of liability (Note 8). The Company further analyzed key features of the Series A Convertible
Preferred Shares and detachable warrants to determine whether these are more akin to equity or to debt and concluded that the Series A
Convertible Preferred Shares and detachable warrants are equity-like. In its assessment, the Company identified certain embedded features,
examined whether these fall under the definition of a derivative according to ASC 815 applicable guidance or whether certain of these
features affected the classification. Derivative accounting was deemed inappropriate and thus no bifurcation of these features was performed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(aa) New Accounting Pronouncements – Adopted</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Expected credit losses:</b> In June 2016, the FASB
issued ASU No. 2016-13—Financial Instruments—Credit Losses (Topic 326) —Measurement of Credit Losses on Financial Instruments.
ASU No. 2016-13 amended guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities.
In May 2019, the FASB issued ASU 2019-05, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial
Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments”, the amendments of which
provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured
at Amortized Cost, with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments—Overall,
applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The amendments clarify that receivables
arising from operating leases are outside of the scope of Subtopic 326-20. Accordingly, any impairment of receivables arising from operating
leases i.e. time charters, should be accounted for in accordance with Topic 842, Leases, and not in accordance with Topic 326. Impairment
of receivables arising from voyage charters, which are accounted for in accordance with Topic 606, Revenues from Contracts with Customers,
are within the scope of Subtopic 326 and must therefore be assessed for expected credit losses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of January 1, 2020, the Company adopted ASU 2016-13—Financial
Instruments—Credit Losses (Topic 326). The accounting standard amends the current financial instrument impairment model by requiring
entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments,
including trade receivables. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected credit losses
which will result in more timely recognition of such losses. The Company adopted the accounting standard using the prospective transition
approach as of January 1, 2020, which resulted in a cumulative adjustment of $(9), in the opening balance of accumulated deficit for the
fiscal year of 2020. The Company maintains an allowance for credit losses for expected uncollectable accounts receivable, which is recorded
as an offset to trade accounts receivable and changes in such, if any, are classified as Bad debt provisions in the Consolidated Statements
of Comprehensive Loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The adoption of ASC 326 primarily impacted trade receivables
recorded on Consolidated Balance Sheet. The Company assessed collectability by reviewing accounts receivable on a collective basis where
similar characteristics exist and on an individual basis when the Company identifies specific customers with known disputes or collectability
issues. In determining the amount of the allowance for credit losses, the Company considered historical collectability based on past due
status. The Company also considered customer-specific information, current market conditions and reasonable and supportable forecasts
of future economic conditions to inform adjustments to historical loss data.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">As of January 1, 2020 and December 31, 2020, the Company concluded on an
expected credit loss rate of 0.05% on the total outstanding receivables arising from voyage charters and 2.4% on outstanding receivables
from demurrages. Management monitors its trade receivables on a daily and on a charter-by charterer basis in order to determine if adjustments
are necessary in the expected credit loss rate. No additional allowance was warranted for the year ended December 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Fair Value measurement:</b> On January 1, 2020,
the Company adopted ASU 2018-13, “Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure
Requirements for Fair Value Measurement”, which improves the effectiveness of fair value measurement disclosures. In particular,
the amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based
on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements,
including the consideration of costs and benefits. The amendments in the Update apply to all entities that are required under existing
GAAP to make disclosures about recurring and non-recurring fair value measurements. The amendments on changes in unrealized gains and
losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative
description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in
the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective
date. The adoption of this new accounting guidance did not have a material effect on the Company’s consolidated financial statements
and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Variable Interest Entities:</b> On January 1, 2020,
the Company adopted ASU 2018-17, “Consolidation (Topic 810) – Targeted Improvements to Related Party Guidance for Variable
Interest Entities”, which improves the accounting for the following areas: (i) applying the variable interest entity (VIE) guidance
to private companies under common control and (ii) considering indirect interests held through related parties under common control for
determining whether fees paid to decision makers and service providers are variable interests, thereby improving general purpose financial
reporting. The Company applied the amendments in this Update retrospectively, as required. The adoption of this new accounting guidance
did not have a material effect on the Company’s consolidated financial statements and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(ab) New Accounting Pronouncements – Not
Yet Adopted:</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2020, the FASB issued ASU 2020-04, Reference
Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients
and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. ASU 2020-04
applies to contracts that reference LIBOR or another reference rate expected to be terminated because of reference rate reform. In January
2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848). The amendments in this Update clarify that certain optional expedients
and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate
for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in this Update
to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing
guidance to derivative instruments affected by the discounting transition. The amendments in this Update apply to all entities that elect
to apply the optional guidance in Topic 848. ASU 2020-04 and ASU 2021-10 can be adopted as of March 12, 2020 through December 31, 2022.
As of December 31, 2020, the Company has not yet elected any optional expedients provided in the standard. The Company will apply the
accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition
period. The Company does not expect the standard to have a material impact on our consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2020, the FASB issued ASU No. 2020-06, Debt
- Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The ASU reduces the number of accounting
models for convertible debt instruments by eliminating the cash conversion model. As compared with current U.S. GAAP, more convertible
debt instruments will be reported as a single liability instrument and the interest rate of more convertible debt instruments will be
closer to the coupon interest rate. The ASU also aligns the consistency of diluted Earnings Per Share (“EPS”) calculations
for convertible instruments by requiring that (1) an entity use the if-converted method and (2) share settlement be included in the diluted
EPS calculation for both convertible instruments and equity contracts when those contracts include an option of cash settlement or share
settlement. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years.
Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those
fiscal years. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company
is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(a) Principles of Consolidation:</i></b> The
accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP. The consolidated financial statements
include the accounts of Pyxis and its wholly-owned subsidiaries (the Vessel-owning companies and Merger Sub). All intercompany balances
and transactions have been eliminated upon consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pyxis, as the holding company, determines whether
it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable
interest entity. Under Accounting Standards Codification (“ASC”) 810 “Consolidation” a voting interest entity
is an entity in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides
the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make financial and operating
decisions. Pyxis consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%), of
the voting interest. Variable interest entities (“VIE”) are entities as defined under ASC 810-10, that in general either do
not have equity investors with voting rights or that have equity investors that do not provide sufficient financial resources for the
entity to support its activities. A controlling financial interest in a VIE is present when a company absorbs a majority of an entity’s
expected losses, receives a majority of an entity’s expected residual returns, or both. The company with a controlling financial
interest, known as the primary beneficiary, is required to consolidate the VIE. Pyxis evaluates all arrangements that may include a variable
interest in an entity to determine if it may be the primary beneficiary, and would be required to include assets, liabilities and operations
of a VIE in its consolidated financial statements. As of December 31, 2020, no such interest existed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(b) Use of Estimates:</i></b> The preparation
of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(c) Comprehensive Income / (Loss): </i></b>The
Company follows the provisions of ASC 220 “Comprehensive Income”, which requires separate presentation of certain transactions
which are recorded directly as components of equity. The Company had no transactions which affect comprehensive loss during the years
ended December 31, 2018, 2019 and 2020 and, accordingly, comprehensive loss was equal to net loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(d) Foreign Currency Translation: </i></b>The
functional currency of the Company is the U.S. dollar as the Company’s vessels operate in international shipping markets and, therefore,
primarily transact business in U.S. dollars. The Company’s accounting records are maintained in U.S. dollars. Transactions involving
other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the time of the transactions. At
the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. dollars
at the exchange rates in effect at the balance sheet date. Resulting gains or losses are included in Vessel operating expenses in the
accompanying consolidated statements of comprehensive loss. All amounts in the financial statements are presented in thousand U.S. dollars
rounded to the nearest thousand.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(e) Commitments and Contingencies: </i></b>Provisions
are recognized when: the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation
can be made. Provisions are reviewed at each balance sheet date. Disclosure of a contingency is made if there is at least a reasonable
possibility that a change in the Company’s estimate of its probable liability could occur in the near future.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(f) Insurance Claims Receivable:</i></b> The
Company records insurance claim recoveries for insured losses incurred on damage to fixed assets and for insured crew medical expenses.
Insurance claim recoveries are recorded, net of any deductible amounts, at the time the Company’s fixed assets suffer insured damages
or when crew medical expenses are incurred, recovery is probable under the related insurance policies and the claim is not subject to
litigation. The Company assessed the adoption of ASC 326 regarding the collectability of insurance claims recoveries and concluded that
there is no material impact in the Company’s financial statements as of the date of the adoption of ASC 326 on January 1, 2020 and
as of December 31, 2020 and thus no provision for credit losses was recorded as of those dates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(g) Concentration of Credit Risk:</i></b> Financial
instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash
equivalents and trade accounts receivable. The Company places its cash and cash equivalents, consisting mostly of deposits, with qualified
financial institutions with high creditworthiness. The Company performs periodic evaluations of the relative creditworthiness of those
financial institutions that are considered in the Company’s investment strategy. The Company limits its credit risk with accounts
receivable by performing ongoing credit evaluations of its customers’ financial condition and generally does not require collateral
for its accounts receivable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(h) Cash and Cash Equivalents and Restricted
Cash:</i></b> The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity
of three months or less to be cash equivalents. Restricted cash is associated with pledged retention accounts in connection with the loan
repayments and minimum liquidity requirements under the loan agreements discussed in Note 7 and is presented separately in the accompanying
consolidated balance sheets. The Company assessed the adoption of ASC 326 for cash equivalents and restricted cash and concluded that
there is no impact in the Company’s financial statements as of the date of the adoption of ASC 326 on January 1, 2020 and as of
December 31, 2020 and thus no provision for credit losses was recorded as of those dates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(i) Income Taxation:</i></b> Under the laws
of the Republic of the Marshall Islands, the country of incorporation of certain of the Company’s vessel-owning companies, and/or
the vessels’ registration, the vessel-owning companies are not liable for any income tax on their income derived from shipping operations.
Instead, a tax is levied depending on the countries where the vessels trade based on their tonnage, which is included in Vessel operating
expenses in the accompanying consolidated statements of comprehensive loss. The vessel-owning companies with vessels that have called
on the United States during the relevant year of operation are obliged to file tax returns with the Internal Revenue Service. The applicable
tax is 50% of 4% of U.S. related gross transportation income unless an exemption applies. The Company believes that based on current legislation
the relevant vessel-owning companies are entitled to an exemption because they satisfy the relevant requirements, namely that (i) the
related vessel-owning companies are incorporated in a jurisdiction granting an equivalent exemption to U.S. corporations and (ii) over
50% of the ultimate stockholders of the vessel-owning companies are residents of a country granting an equivalent exemption to U.S. persons.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the laws of the Republic of Malta, the country
of incorporation of certain of the Company’s vessel-owning companies, and/or the vessels’ registration, these vessel-owning
companies are not liable for any income tax on their income derived from shipping operations. The Republic of Malta is a country that
has an income tax treaty with the United States. Accordingly, income earned by vessel-owning companies organized under the laws of the
Republic of Malta may qualify for a treaty-based exemption. Specifically, Article 8 (Shipping and Air Transport) of the treaty sets out
the relevant rule to the effect that profits of an enterprise of a Contracting State from the operation of ships in international traffic
shall be taxable only in that State.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(j) Inventories:</i></b> Inventories consist
of lubricants and bunkers (where applicable) on board the vessels, which are stated at the lower of cost and net realizable value. Cost
is determined by the first-in, first-out (“FIFO”) method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(k) Trade Accounts Receivable, Net:</i></b>
Under spot charters, the Company normally issues its invoices to charterers at the completion of the voyage. Invoices are due upon issuance
of the invoice. Since the Company satisfies its performance obligation over the time of the spot charter, the Company recognizes its unconditional
right to consideration in trade accounts receivable, net of a provision for doubtful accounts, if any. Trade accounts receivable from
spot charters as of December 31, 2019 and 2020, amounted to $743 and $672, respectively. The allowance for doubtful accounts at December
31, 2019 was zero. The allowance for expected credit losses at December 31, 2020 was $9 (Note 2(aa)). Under time charter contracts, the
Company normally issues invoices on a monthly basis 30 days in advance of providing its services. Trade accounts receivable from time
charters as of December 31, 2019 and 2020, amounted to $500 and $1, respectively. Hire collected in advance includes cash received in
advance of performance under the contract prior to the balance sheet date and is realized when the associated revenue is recognized under
the contract in periods after such date. The hire collected in advance as of December 31, 2019 and 2020 was $1,415 and $ 706 respectively
and concerns hire received in advance from time charters.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(l) Vessels, Net:</i></b> Vessels are stated
at cost, which consists of the contract price and any material expenses incurred in connection with the acquisition (initial repairs,
improvements, delivery expenses and other expenditures to prepare the vessel for her initial voyage, as well as professional fees directly
associated with the vessel acquisition). Subsequent expenditures for major improvements are also capitalized when they appreciably extend
the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise, these amounts are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The cost of each of the Company’s vessels is
depreciated from the date of acquisition on a straight-line basis over the vessels’ remaining estimated economic useful life, after
considering the estimated residual value. A vessel’s residual value is equal to the product of its lightweight tonnage and estimated
scrap rate of $0.300 per ton. The Company estimates the useful life of the Company’s vessels to be 25 years from the date of initial
delivery from the shipyard. In the event that that future regulations place limitations over the ability of a vessel to trade on a worldwide
basis, its remaining useful life will be adjusted at the date such regulations are adopted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(m) Impairment of Long Lived Assets:</i></b>
The Company reviews its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount
plus the unamortized dry-dock and survey balances of these assets may not be recoverable.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In developing estimates of future undiscounted cash
flows, the Company makes assumptions and estimates about the vessels’ future performance, relating to time charter equivalent rates
by vessel type, vessels’ operating expenses, management fees, vessels’ capital expenditures, vessels’ residual value,
fleet utilization and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future undiscounted
cash flows are based on historical trends as well as future expectations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To the extent impairment indicators are present, the
projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed days and
an estimated daily time charter rate for the unfixed days (based on the most recent seven year historical average rates over the remaining
estimated useful life of the vessels), expected outflows for vessels’ operating expenses, planned dry-docking and special survey
expenditures, management fees expenditures which are adjusted every year, pursuant to the Company’s existing group management agreement,
and fleet utilization of 75.0% to 98.6% (depending on the type of the vessel) for the first year and 78% to 93.0%, including scheduled
off-hire days for planned dry-dockings and vessel surveys, based on historical experience. The residual value used in the impairment test
is estimated to be approximately $0.3 per lightweight ton in accordance with the vessels’ depreciation policy.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Should the carrying value plus the unamortized dry-dock
and survey balance of the vessel exceed its estimated future undiscounted net operating cash flows, impairment is measured based on the
excess of the carrying amount over the fair market value of the asset. The Company determines the fair value of its vessels based on management
estimates and assumptions and by making use of available market data and taking into consideration third party valuations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The review of the carrying amounts plus the unamortized
dry-dock and survey balances in connection with the estimated recoverable amount for certain of the Company’s as of December 31,
2018 indicated an impairment charge of $2,282. No impairment charge for the Company’s vessels was recorded as of December 31, 2019
and 2020 respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(n) Long-lived Assets Classified as Held for
Sale:</i></b> The Company classifies long-lived assets and disposal groups as being held-for-sale in accordance with ASC 360, “Property,
Plant and Equipment”, when: (i) management, having the authority to approve the action, commits to a plan to sell the asset; (ii)
the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such
assets; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated;
(iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one
year; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (vi) actions
required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be
withdrawn. Long-lived assets classified as held-for-sale are measured at the lower of their carrying amount or fair value less costs to
sell. According to ASC 360-10-35, the fair value less costs to sell of the long-lived asset (disposal group) should be assessed at each
reporting period it remains classified as held-for-sale. Subsequent changes in the long-lived asset’s fair value less costs to sell
(increase or decrease) would be reported as an adjustment to its carrying amount, not exceeding the carrying amount of the long-lived
asset at the time it was initially classified as held-for-sale. These long-lived assets are not depreciated once they meet the criteria
to be classified as held-for-sale and are classified in current assets on the consolidated balance sheet (Notes 5 and 6).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(o) Financial Derivative Instruments: </i></b>The
Company enters into interest rate derivatives to manage its exposure to fluctuations of interest rate risk associated with its borrowings.
All derivatives are recognized in the consolidated financial statements at their fair value. The fair value of the interest rate derivatives
is based on a discounted cash flow analysis. When such derivatives do not qualify for hedge accounting, the Company recognizes their fair
value changes in current period earnings. When the derivatives qualify for hedge accounting, the Company recognizes the effective portion
of the gain or loss on the hedging instrument directly in other comprehensive income / (loss), while the ineffective portion, if any,
is recognized immediately in current period earnings. The Company, at the inception of the transaction, documents the relationship between
the hedged item and the hedging instrument, as well as its risk management objective and the strategy of undertaking various hedging transactions.
The Company also assesses at hedge inception whether the hedging instruments are highly effective in offsetting changes in the cash flows
of the hedged items.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company discontinues cash flow hedge accounting
if the hedging instrument expires and it no longer meets the criteria for hedge accounting or its designation is revoked by the Company.
At that time, any cumulative gain or loss on the hedging instrument recognized in equity is kept in equity until the forecasted transaction
occurs. When the forecasted transaction occurs, any cumulative gain or loss on the hedging instrument is recognized in the consolidated
statement of comprehensive loss. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in
equity is transferred to the current period’s consolidated statement of comprehensive loss as financial income or expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(p) Accounting for Special Survey and Dry-docking
Costs:</i></b> The Company follows the deferral method of accounting for special survey and dry-docking costs, whereby actual costs incurred
at the yard and parts used in the dry-docking or special survey, are deferred and are amortized on a straight-line basis over the period
through the date the next survey is scheduled to become due. Costs deferred are limited to actual costs incurred at the shipyard and costs
incurred in the dry-docking or special survey. If a dry-dock or a survey is performed prior to the scheduled date, any remaining unamortized
balances of the previous dry-dock and survey are immediately written-off. Unamortized dry-dock and survey balances of vessels that are
sold are written-off and included in the calculation of the resulting gain or loss in the period of the vessel’s sale.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Furthermore, unamortized dry-docking and special survey
balances of vessels that are classified as Assets held-for-sale and are not recoverable as of the date of such classification are immediately
written-off and included in the resulting loss on vessel held-for-sale.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(r) Fair Value Measurements:</i></b> The Company
follows the provisions of Accounting Standard Update (“ASU”) 2015-07 “Fair Value Measurements and Disclosures”,
Topic 820, which defines and provides guidance as to the measurement of fair value. This standard creates a hierarchy of measurement and
indicates that, when possible, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets
and the lowest priority (Level 3) to unobservable data, for example, the reporting entity’s own data. Under the standard, fair value
measurements are separately disclosed by level within the fair value hierarchy (Note 10).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(s) Segment Reporting:</i></b> The Company reports
financial information and evaluates its operations by charter revenues and not by the length of ship employment for its customers, i.e.,
spot or time charters. The Company does not use discrete financial information to evaluate the operating results for each such type of
charter. Although revenue can be identified for these types of charters, management cannot and does not identify expenses, profitability
or other financial information for these charters. Furthermore, when the Company charters a vessel to a charterer, the charterer is free
to trade the vessel worldwide (subject to certain agreed exclusions) and, as a result, the disclosure of geographic information is impracticable.
As a result, management, reviews operating results solely by revenue per day and operating results of the fleet and thus the Company has
determined that it operates under one reportable segment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(t) Income/(Loss) per Share:</i></b> Basic income/(loss)
per share is computed by dividing the net income/(loss) attributable to common shareholders by the weighted average number of common shares
outstanding during the period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The computation of diluted income/(loss) per share
reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted at
the beginning of the periods presented, or issuance date, if later. The treasury stock method is used to compute the dilutive effect of
warrants and, shares issued under the equity incentive plan and the promissory note. The if-converted method is used to compute the dilutive
effect of shares which could be issued upon conversion of the Series A Convertible Preferred Shares into common shares. Potential common
shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the
calculation of diluted earnings per share. As the Company reported losses for the years ended December 31, 2018, 2019 and 2020, the effect
of any incremental shares would be antidilutive and thus excluded from the computation of loss per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(u) Going Concern: </i></b>The Company performs
cash flow projections on a regular basis to evaluate whether it will be in a position to cover its liquidity needs for the next 12-month
period and in compliance with the financial and security collateral cover ratio covenants under its existing debt agreements. In developing
estimates of future cash flows, the Company makes assumptions about the vessels’ future performance, with significant assumptions
relating to time charter equivalent rates by vessel type, vessels’ operating expenses, vessels’ capital expenditures, fleet
utilization, the Company’s management fees and general and administrative expenses, and cash flow requirements for debt servicing.
The assumptions used to develop estimates of future cash flows are based on historical trends as well as future expectations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, the Company had a working
capital deficit of $2,895, defined as current assets minus current liabilities. The Company considered such deficit in conjunction with
the future market prospects and potential future financings. As of the filing date of these consolidated financial statements, the Company
believes that it will be in a position to cover its liquidity needs for the next 12-month period through the recent Private Placement
of Equity, the contemplated debt refinancing of the Entrust Loan (Note 13) cash generated from the vessels’ operations and possible
asset sales. The Company believes that will be in compliance with the financial and security collateral cover ratio covenants under its
existing debt agreements for the next 12-month period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(v) Revenues, net:</i></b> The Company generates
its revenues from charterers. The vessels are chartered using either spot charters, where a contract is made in the spot market for the
use of a vessel for a specific voyage for a specified charter rate, or time charters, where a contract is entered into for the use of
a vessel for a specific period of time and a specified daily charter hire rate.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents the Company’s revenue
disaggregated by revenue source, net of commissions, for the years ended December 31, 2018, 2019 and 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2020</b></p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt">Revenues derived from spot charters, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">16,990</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">8,067</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">7,022</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Revenues derived from time charters, net</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">11,467</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">19,686</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">14,689</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Revenues, net</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>28,457</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>27,753</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>21,711</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue from customers (ASC 606):</i></b> As
of January 1, 2018, the Company adopted Accounting Standard Update (“ASU”) 2014-09 “<i>Revenue from Contracts with Customers
(Topic 606)</i>”. The core principle is that a company should recognize revenue when promised goods or services are transferred
to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The Company
analyzed its contracts with charterers at the adoption date and has determined that its spot charters fall under the provisions of ASC
606, while its time charter agreements are lease agreements that fall under the provisions of ASC 842 and that contain certain non-lease
components. The Company elected to adopt ASC 606 by applying the modified retrospective transition method, recognizing the cumulative
effect of adopting this guidance as an adjustment to the 2018 opening balance of accumulated deficit. As of December 31, 2017, there were
no vessels employed under spot charters and as a result, the Company has not included any adjustments to the 2018 opening balance of accumulated
deficit and prior periods were not retrospectively adjusted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company assessed its contracts with charterers
for spot charters and concluded that there is one single performance obligation for its spot charter, which is to provide the charterer
with a transportation service within a specified time period. In addition, the Company has concluded that a spot charter meets the criteria
to recognize revenue over time as the charterer simultaneously receives and consumes the benefits of the Company’s performance.
The adoption of this standard resulted in a change whereby the Company’s method of revenue recognition changed from discharge-to-discharge
(assuming a new charter has been agreed before the completion of the previous spot charter) to load-to-discharge. This resulted in no
revenue being recognized from discharge of the prior spot charter to loading of the current spot charter and all revenue being recognized
from loading of the current spot charter to discharge of the current spot charter. This change results in revenue being recognized later
in the voyage, which may cause additional volatility in revenues and earnings between periods. Demurrage income represents payments by
a charterer to a vessel owner when loading or discharging time exceeds the stipulated time in the spot charter. The Company has determined
that demurrage represents a variable consideration and estimates demurrage at contract inception. Demurrage income estimated, net of address
commission, is recognized over the time of the charter as the performance obligation is satisfied.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under a spot charter, the Company incurs and pays
for certain voyage expenses, primarily consisting of brokerage commissions, port and canal costs and bunker consumption, during the spot
charter (load-to-discharge) and during the ballast voyage (date of previous discharge to loading, assuming a new charter has been agreed
before the completion of the previous spot charter). Before the adoption of ASC 606, all voyage expenses were expensed as incurred, except
for brokerage commissions. Brokerage commissions are deferred and amortized over the related voyage period in a charter to the extent
revenue has been deferred since commissions are earned as the Company’s revenues are earned. Under ASC 606 and after the implementation
of ASC 340-40 <i>“Other assets and deferred costs”</i> for contract costs, incremental costs of obtaining a contract with
a customer and contract fulfillment costs, should be capitalized and amortized as the performance obligation is satisfied, if certain
criteria are met. The Company assessed the new guidance and concluded that voyage costs during the ballast voyage represented costs to
fulfil a contract which give rise to an asset and should be capitalized and amortized over the spot charter, consistent with the recognition
of voyage revenues from spot charter from load-to-discharge, while voyage costs incurred during the spot charter should be expensed as
incurred. With respect to incremental costs, the Company has selected to adopt the practical expedient in the guidance and any costs to
obtain a contract will be expensed as incurred, for the Company’s spot charters that do not exceed one year. Vessel operating expenses
are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, pursuant to this standard and the new
Leases standard (discussed below), as of January 1, 2018, the Company elected to present Revenues net of address commissions. Address
commissions represent a discount provided directly to the charterers based on a fixed percentage of the agreed upon charter. Since address
commissions represent a discount (sales incentive) on services rendered by the Company and no identifiable benefit is received in exchange
for the consideration provided to the charterer, these commissions are presented as a reduction of revenue in the accompanying consolidated
statements of comprehensive loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not disclose the value of unsatisfied
performance obligations for contracts with an original expected length of one year or less, in accordance with the optional exception
in ASC 606.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Leases: </i></b>The Company elected to
early adopt the new lease standard “Leases” ASC 842 as of September 30, 2018 with adoption reflected as of January 1, 2018. The
Company adopted the standard by using the modified retrospective method and selected the additional optional transition method.
Also, the Company elected to apply a package of practical expedients under ASC 842, which allowed the Company, not to reassess (i)
whether any existing contracts, on the date of adoption, contained a lease, (ii) lease classification of existing leases classified
as operating leases in accordance with ASC 840 and (iii) initial direct costs for any existing leases. In this respect no <font style="background-color: white">cumulative-effect
adjustment was recognized </font>to the 2018 opening balance of accumulated deficit<font style="background-color: white">. </font>The
Company assessed its new time charter contracts at the adoption date under the new guidance and concluded that these contracts
contain a lease with the related executory costs (insurance), as well as non-lease components to provide other services related to
the operation of the vessel, with the most substantial service being the crew cost to operate the vessel. The Company concluded that
the criteria for not separating the lease and non-lease components of its time charter contracts are met, since (i) the time pattern
of recognizing revenues for crew and other services for the operation of the vessels, is similar to the time pattern of recognizing
rental income, (ii) <font style="background-color: white">the lease component of the time charter contracts, if accounted for
separately, would be classified as an operating lease, and </font>(iii) the predominant component in its time charter agreements is
the lease component. After the lease commencement date, the Company evaluates lease modifications, if any, that could result in a
change in the accounting for leases. For a lease modification, an evaluation is performed to determine if it should be treated as
either a separate lease or a change in the accounting of an existing lease. Brokerage and address commissions on time charter
revenues are deferred and amortized over the related voyage period, to the extent revenue has been deferred, since commissions are
earned as revenues earned, and are presented in voyage expenses and as a reduction to voyage revenues (see above), respectively.
Vessel operating expenses are expensed as incurred. By taking the practical expedients, existing time charters at January 1, 2018,
continued to be accounted for under ASC 840 while new time charters commencing in 2018 and onwards are accounted for under ASC 842.
The adoption of ASC 842 had no effect on the Company’s consolidated financial position and results of operations for the year
ended December 31, 2018 and 2019. <font style="background-color: white">Upon adoption of ASC 842, the Company made an accounting
policy election to not recognize contract fulfillment costs for time charters under ASC 340-40. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenues for the years ended December 31, 2018, 2019
and 2020, deriving from significant charterers individually accounting for 10% or more of revenues (in percentages of total revenues),
were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Charterer</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 43%; text-align: center"><font style="font-size: 10pt">A</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">23</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">71</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">58</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center"><font style="font-size: 10pt">B</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: center"><font style="font-size: 10pt">C</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">16</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: center"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>38</b></font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>%</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>71</b></font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>%</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>74</b></font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>%</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(w) Restricted Cash: </i></b>As of January 1,
2018, the Company adopted the ASU 2016-18 “<i>Statement of Cash Flows (Topic 230): Restricted Cash</i>”, which requires that
the statement of cash flows explain the change in the total of cash and cash equivalents and restricted cash. Restricted cash of $3,659,
$3,735 and $2,417 as at December 31, 2018, 2019 and 2020, respectively, has been aggregated with cash and cash equivalents in both the
beginning-of-year and end-of-year line items of the consolidated statements of cash flows for each of the periods presented. The implementation
of this update has no impact on the Company’s consolidated balance sheet and consolidated statement of comprehensive loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a reconciliation of cash
and cash equivalents and restricted cash reported within the accompanying consolidated balance sheets that are presented in the accompanying
consolidated statement of cash flows for the years ended December 31, 2018, 2019 and 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2018</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2019</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 43%"><font style="font-size: 10pt">Cash and cash equivalents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">545</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">1,441</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 16%; text-align: right"><font style="font-size: 10pt">1,620</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Restricted cash, current portion</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">255</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">535</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Restricted cash, net of current portion</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,404</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">3,200</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2,417</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total cash and cash equivalents and restricted cash</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,204</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>5,176</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,037</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(x) Business combinations:</i></b> As of January
1, 2018, the Company adopted the ASU No. 2017-01, “Business Combinations” (Topic 805) which clarifies the definition of a
business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisition
(or disposals) of assets or businesses. Under current implementation guidance, the existence of an integrated set of acquired activities
(inputs and processes that generate outputs) constitutes an acquisition of business. This ASU provides a screen to determine when a set
of assets and activities does not constitute a business. The implementation of this update had no effect on the Company’s consolidated
financial position and results of operations for the year ended December 31, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(aa) New Accounting Pronouncements – Adopted</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Expected credit losses:</b> In June 2016, the FASB
issued ASU No. 2016-13—Financial Instruments—Credit Losses (Topic 326) —Measurement of Credit Losses on Financial Instruments.
ASU No. 2016-13 amended guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities.
In May 2019, the FASB issued ASU 2019-05, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial
Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments”, the amendments of which
provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured
at Amortized Cost, with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments—Overall,
applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The amendments clarify that receivables
arising from operating leases are outside of the scope of Subtopic 326-20. Accordingly, any impairment of receivables arising from operating
leases i.e. time charters, should be accounted for in accordance with Topic 842, Leases, and not in accordance with Topic 326. Impairment
of receivables arising from voyage charters, which are accounted for in accordance with Topic 606, Revenues from Contracts with Customers,
are within the scope of Subtopic 326 and must therefore be assessed for expected credit losses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of January 1, 2020, the Company adopted ASU 2016-13—Financial
Instruments—Credit Losses (Topic 326). The accounting standard amends the current financial instrument impairment model by requiring
entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments,
including trade receivables. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected credit losses
which will result in more timely recognition of such losses. The Company adopted the accounting standard using the prospective transition
approach as of January 1, 2020, which resulted in a cumulative adjustment of $(9), in the opening balance of accumulated deficit for the
fiscal year of 2020. The Company maintains an allowance for credit losses for expected uncollectable accounts receivable, which is recorded
as an offset to trade accounts receivable and changes in such, if any, are classified as Bad debt provisions in the Consolidated Statements
of Comprehensive Loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The adoption of ASC 326 primarily impacted trade receivables
recorded on Consolidated Balance Sheet. The Company assessed collectability by reviewing accounts receivable on a collective basis where
similar characteristics exist and on an individual basis when the Company identifies specific customers with known disputes or collectability
issues. In determining the amount of the allowance for credit losses, the Company considered historical collectability based on past due
status. The Company also considered customer-specific information, current market conditions and reasonable and supportable forecasts
of future economic conditions to inform adjustments to historical loss data.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">As of January 1, 2020 and December 31, 2020, the Company concluded on an
expected credit loss rate of 0.05% on the total outstanding receivables arising from voyage charters and 2.4% on outstanding receivables
from demurrages. Management monitors its trade receivables on a daily and on a charter-by charterer basis in order to determine if adjustments
are necessary in the expected credit loss rate. No additional allowance was warranted for the year ended December 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Fair Value measurement:</b> On January 1, 2020,
the Company adopted ASU 2018-13, “Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure
Requirements for Fair Value Measurement”, which improves the effectiveness of fair value measurement disclosures. In particular,
the amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based
on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements,
including the consideration of costs and benefits. The amendments in the Update apply to all entities that are required under existing
GAAP to make disclosures about recurring and non-recurring fair value measurements. The amendments on changes in unrealized gains and
losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative
description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in
the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective
date. The adoption of this new accounting guidance did not have a material effect on the Company’s consolidated financial statements
and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Variable Interest Entities:</b> On January 1, 2020,
the Company adopted ASU 2018-17, “Consolidation (Topic 810) – Targeted Improvements to Related Party Guidance for Variable
Interest Entities”, which improves the accounting for the following areas: (i) applying the variable interest entity (VIE) guidance
to private companies under common control and (ii) considering indirect interests held through related parties under common control for
determining whether fees paid to decision makers and service providers are variable interests, thereby improving general purpose financial
reporting. The Company applied the amendments in this Update retrospectively, as required. The adoption of this new accounting guidance
did not have a material effect on the Company’s consolidated financial statements and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(ab) New Accounting Pronouncements – Not
Yet Adopted:</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2020, the FASB issued ASU 2020-04, Reference
Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients
and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. ASU 2020-04
applies to contracts that reference LIBOR or another reference rate expected to be terminated because of reference rate reform. In January
2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848). The amendments in this Update clarify that certain optional expedients
and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate
for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in this Update
to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing
guidance to derivative instruments affected by the discounting transition. The amendments in this Update apply to all entities that elect
to apply the optional guidance in Topic 848. ASU 2020-04 and ASU 2021-10 can be adopted as of March 12, 2020 through December 31, 2022.
As of December 31, 2020, the Company has not yet elected any optional expedients provided in the standard. The Company will apply the
accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition
period. The Company does not expect the standard to have a material impact on our consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2020, the FASB issued ASU No. 2020-06, Debt
- Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The ASU reduces the number of accounting
models for convertible debt instruments by eliminating the cash conversion model. As compared with current U.S. GAAP, more convertible
debt instruments will be reported as a single liability instrument and the interest rate of more convertible debt instruments will be
closer to the coupon interest rate. The ASU also aligns the consistency of diluted Earnings Per Share (“EPS”) calculations
for convertible instruments by requiring that (1) an entity use the if-converted method and (2) share settlement be included in the diluted
EPS calculation for both convertible instruments and equity contracts when those contracts include an option of cash settlement or share
settlement. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years.
Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those
fiscal years. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company
is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"><b>3. Transactions
with Related Parties<i>:</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company uses the services of Maritime, a ship
management company with its principal office in Greece and an office in the U.S.A. Maritime is engaged under separate management agreements
directly by the Company’s respective subsidiaries to provide a wide range of shipping services, including but not limited to, chartering,
sale and purchase, insurance, operations and dry-docking and construction supervision, all provided at a fixed daily fee per vessel. For
the ship management services, Maritime charges a fee payable by each subsidiary of $0.325 per day per vessel while the vessel is in operation
including any pool arrangements and $0.450 per day per vessel while the vessel is under construction, as well as an additional daily fee
(which is dependent on the seniority of the personnel) to cover the cost of engineers employed to conduct the supervision of the newbuilding
(collectively the “Ship-management Fees”). In addition, Maritime charges the Company a commission rate of 1.25% on all charter
hire agreements arranged by Maritime.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The management agreements for the vessels had an initial
term of five years. For the Northsea Alpha and Northsea Beta the base term expired on December 31, 2015, for Pyxis Theta it expired on
December 31, 2017 and for the Pyxis Epsilon and the Pyxis Malou it expired on December 31, 2018. Following their initial expiration dates,
the management agreements were automatically renewed for consecutive five year periods, or until terminated by either party on three months’
notice.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Head Management Agreement (the “Head Management
Agreement”) with Maritime commenced on March 23, 2015 and continued through March 23, 2020. Following the initial expiration date,
the Head Management Agreement was automatically renewed for a five-year period (unless terminated by either party on 90 days’ notice).
Maritime provides administrative services to the Company, which include, among other, the provision of the services of the Company’s
Chief Executive Officer, Chief Financial Officer, General Counsel and Corporate Secretary, Chief Operating Officer, one or more internal
auditor(s) and a secretary, as well as the use of office space in Maritime’s premises. Under the Head Management Agreement, the
Company pays Maritime a fixed fee of $1,600 annually (the “Administration Fees”). In the event of a change of control of the
Company during the management period or within 12 months after the early termination of the Head Management Agreement, then the Company
will pay to Maritime an amount equal to 2.5 times the then annual Administration Fees. Pursuant to the amendment of this agreement on
March 18, 2020, in the event of such change of control and termination, the Company shall also pay to Maritime an amount equal to 12 months
of the then daily Ship-management Fees.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Ship-management Fees and the Administration Fees
are adjusted annually according to the official inflation rate in Greece or such other country where Maritime was headquartered during
the preceding year. On August 9, 2016, the Company amended the Head Management Agreement with Maritime to provide that in the event that
the official inflation rate for any calendar year is deflationary, no adjustment shall be made to the Ship-management Fees and the Administration
Fees, which will remain, for the particular calendar year, as per the previous calendar year. Effective January 1, 2019 and 2020, the
Ship-management Fees and the Administration Fees were increased by 0.62%, and, 0.26% respectively, in line with the average inflation
rate of Greece for 2018 and 2019. For 2020, the average rate in Greece was a deflation of 1.24% and as a result no adjustment shall be
made to the Ship-management Fees and the Administration Fees effective January 1, 2021, which will remain, for the particular calendar
year, as per the previous year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following amounts were charged by Maritime pursuant
to the head management and ship-management agreements with the Company, and are included in the accompanying consolidated statements of
comprehensive loss:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Year Ended December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Included in Voyage related costs and commissions</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 49%"><font style="font-size: 10pt">Charter hire commissions</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">354</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">351</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">276</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Included in Management fees, related parties</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Ship-management Fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">720</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">724</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">637</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Included in General and administrative expenses</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Administration Fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,618</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,628</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,632</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,692</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,703</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,545</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 28, 2015 the Company issued a promissory
note in favor of Maritime Investors in the amount of $2.5 million, with an interest rate payable of 2.75% and maturity of January 15,
2017. Certain amendments were made increasing the principal balance to $5.0 million, extending the maturity date to March 31, 2020 and
the interest rate to 4.5%. On May 14, 2019, the Company entered into a second amendment to the Amended & Restated Promissory Note
which (i) extended the repayment of the outstanding principal, in whole or in part, until the earlier of a) one year after the repayment
of the credit facility of Eighthone with Entrust Global (the “Credit Facility”) on September 2023 (see Note 7), b) January
15, 2024 and c) repayment of any Paid-In-Kind (“PIK”) interest and principal deficiency amount under the Credit Facility,
and (ii) increased the interest rate to 9.0% per annum of which 4.5% shall be paid in cash and 4.5% shall be paid in common shares of
the Company calculated on the volume weighted average closing share price for the 10 day period immediately prior to each quarter end.
The new interest rate was effective from April 1, 2019. After the repayment restrictions have been lifted per the Credit Facility, the
Company, at its option, may continue to pay interest on the Amended & Restated Promissory Note in the afore-mentioned combination
of cash and shares or pay all interest costs in cash. The Company considered the guidance under ASC 470-50 “Debt Modifications and
Extinguishments” and concluded that the transaction should be accounted for as debt extinguishment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">With respect to the portion of interest that will
be settled in common shares, the Company considered the guidance in ASC 480 that requires obligations that can be settled in shares with
a fixed monetary value at settlement (e.g., share-settled debt) and followed the guidance in ASC 835-30 to accrue the liability to the
redemption amount using the interest method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest charged on the Amended & Restated Promissory
Note for the years ended December 31, 2018, 2019 and 2020, amounted to $213, $395 and $452, respectively, and is included in Interest
and finance costs, net (Note 12) in the accompanying consolidated statements of comprehensive loss. Of the total interest charged on the
Amended & Restated Promissory Note during the year ended December 31, 2019, $225 was paid in cash and the remaining amount of $170
was settled in common shares. Of the amount settled in common shares, $113 was settled in common shares during 2019 and the remaining
amount of $57 were settled in January 2020. Of the total interest charged on the Amended & Restated Promissory Note during the year
ended December 31, 2020, $226 was payable in cash and the remaining amount of $226 was settled in common shares. Of the amount settled
in common shares, $169 was settled in common shares during 2020 and the remaining amount of $57 was settled in January 2021.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amount of $5,000 is separately reflected in the
accompanying consolidated balance sheets under non-current liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and 2020, there was a balance
due to Maritime of $6,849 and due from Maritime of $2,308, respectively. Relevant balances are reflected in Due to related parties and
Due from related parties, respectively, in the accompanying consolidated balance sheets. The balance with Maritime is interest free and
with no specific repayment terms.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following amounts were charged by Maritime pursuant
to the head management and ship-management agreements with the Company, and are included in the accompanying consolidated statements of
comprehensive loss:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Year Ended December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Included in Voyage related costs and commissions</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 49%"><font style="font-size: 10pt">Charter hire commissions</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">354</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">351</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">276</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Included in Management fees, related parties</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Ship-management Fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">720</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">724</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">637</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Included in General and administrative expenses</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Administration Fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,618</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,628</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,632</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,692</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,703</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,545</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>4. Inventories:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.4pt; text-align: justify; text-indent: -24.4pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts in the accompanying consolidated balance
sheets are analyzed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31,<br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt">Lubricants</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">403</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">348</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Bunkers</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">98</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">333</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>501</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>681</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts in the accompanying consolidated balance
sheets are analyzed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31,<br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt">Lubricants</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">403</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">348</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Bunkers</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">98</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">333</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>501</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>681</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"><b>5. Vessels, net:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.4pt; text-align: justify; text-indent: -24.4pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts in the accompanying consolidated balance
sheets are analyzed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Vessel</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Accumulated</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Net Book</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Cost</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Depreciation</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt"><b>Balance January 1, 2019</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt"><b>134,310</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt"><b>(26,318</b></font></td>
<td style="width: 1%"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt"><b>107,992</b></font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Depreciation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(5,320</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(5,320</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">625</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">625</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Reclassification of vessel as held-for-sale</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(26,412</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,622</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(15,790</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Balance December 31, 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>108,523</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>(21,016</b></font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>87,507</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Depreciation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,418</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,418</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Additions</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">685</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">685</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Balance December 31, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>109,208</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>(25,434</b></font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>83,774</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2018, the Company reviewed the
carrying amount in connection with the estimated recoverable amount for each of its vessels. This review indicated that such carrying
amount was not fully recoverable for the Company’s vessels <i>Northsea Alpha</i> and <i>Northsea Beta</i>. Consequently, the carrying
value of these vessels plus unamortized dry-dock and survey balances amounting to $12,989 was written down resulting in a total impairment
charge of $2,282 that was charged against Vessels, net, based on level 2 inputs of the fair value hierarchy, as discussed in Notes 2 and
10. No impairment charge was deemed necessary for the years ended December 31, 2019 and 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All of the Company’s vessels have been pledged
as collateral to secure the bank loans discussed in Note 7.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 13, 2019, the Company decided to
make arrangements to sell Pyxis Delta and the Company concluded that all the criteria required by the relevant accounting standard,
ASC 360-10-45-9, for the classification of the vessel Pyxis Delta as “held for sale” were met. On December 11, 2019, the
Company entered into an agreement with a third-party to sell the vessel. As at December 31, 2019, the amount of $13,190 was
separately reflected in Vessel held-for-sale on the consolidated balance sheet, representing the estimated fair market value of the
vessel based on the vessel’s sale price, net of costs to sell. The difference between the estimated fair value less costs to
sell the vessel and the vessel’s carrying value (including the unamortized balance of its associated dry-docking cost),
amounting to $2,756, was written-off and included in the consolidated statement of comprehensive loss for the year ended December
31, 2019 and classified as Loss on vessel held-for-sale. The total net proceeds from the sale of the vessel were approximately $13.2
million, of which, $5.7 million was used for the prepayment of the Pyxis Delta and Pyxis Theta loan facility and $7.5 million for
the repayment of the Company’s liabilities to its related party (Maritime) and for the repayment of obligations to its trade
creditors.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019, additions of $625 relate
to the ballast water treatment system installation of Pyxis Malou, of which, $569 was paid in 2019 and the balance of $56 during the first
quarter of 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, additions amounted to $685
of which $665 relates to the ballast water treatment system installation of Pyxis Epsilon, of which, $486 was paid in 2020 and $174 is
accrued and remains unpaid.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts in the accompanying consolidated balance
sheets are analyzed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Vessel</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Accumulated</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Net Book</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Cost</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Depreciation</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Value</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt"><b>Balance January 1, 2019</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt"><b>134,310</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt"><b>(26,318</b></font></td>
<td style="width: 1%"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt"><b>107,992</b></font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Depreciation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(5,320</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(5,320</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">625</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">625</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Reclassification of vessel as held-for-sale</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(26,412</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,622</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(15,790</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Balance December 31, 2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>108,523</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>(21,016</b></font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>87,507</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Depreciation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,418</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,418</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Additions</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">685</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">685</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Balance December 31, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>109,208</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>(25,434</b></font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>83,774</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>6. Deferred charges, net:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.4pt; text-align: justify; text-indent: -24.4pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt">The movement in the
deferred charges, net in the accompanying consolidated balance sheets are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Dry docking costs</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%"><font style="font-size: 10pt"><b>Balance, January 1, 2018</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 10pt"><b>285</b></font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">588</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(133</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Balance, December 31, 2018</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"><b>740</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">435</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Amortization</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(240</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Transfer to vessel held-for-sale</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(156</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Balance, December 31, 2019</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"><b>779</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,068</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(253</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Balance, December 31, 2020</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>1,594</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amortization of the dry-docking costs is separately
reflected in the accompanying consolidated statements of comprehensive loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt">The movement in the
deferred charges, net in the accompanying consolidated balance sheets are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Dry docking costs</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%"><font style="font-size: 10pt"><b>Balance, January 1, 2018</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 10pt"><b>285</b></font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">588</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(133</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Balance, December 31, 2018</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"><b>740</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">435</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Amortization</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(240</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Transfer to vessel held-for-sale</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(156</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><b>Balance, December 31, 2019</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt"><b>779</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,068</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Amortization</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(253</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Balance, December 31, 2020</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>1,594</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>7. Long-term Debt:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts shown in the accompanying consolidated
balance sheets at December 31, 2019 and 2020, are analyzed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Vessel (Borrower)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31,<br />
2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31,<br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt"><i>(a) Northsea Alpha (Secondone)</i></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">3,690</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">3,290</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><i>(a) Northsea Beta (Thirdone)</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,690</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,290</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><i>(b) Pyxis Malou (Fourthone)</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,020</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">8,730</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><i>(c) Pyxis Delta (Sixthone)</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,050</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><i>(c) Pyxis Theta (Seventhone)</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">13,469</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">14,950</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><i>(d) Pyxis Epsilon (Eighthone)</i></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">24,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">24,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>58,919</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>54,260</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Current portion</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>9,241</b></font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>3,410</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Less: Current portion of deferred financing costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(257</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(155</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Current portion of long-term debt, net of deferred financing costs, current</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>8,984</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>3,255</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Long-term portion</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>49,678</b></font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>50,850</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Less: Non-current portion of deferred financing costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(445</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(519</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Long-term debt, net of current portion and deferred financing costs, non-current</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>49,233</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>50,331</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font-size: 10pt">(a)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">On September 26, 2007, Secondone and Thirdone jointly entered into a loan agreement with a financial institution for an amount of up to $24,560, in order to partly finance the acquisition cost of the vessels <i>Northsea Alpha </i>and <i>Northsea Beta</i>.</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt">(b)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Based on a loan agreement concluded on December 12, 2008, Fourthone borrowed $41,600 in February 2009 in order to partly finance the acquisition cost of the <i>Pyxis Malou</i>.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 28, 2018, the Company refinanced the then
existing indebtedness of $26,906 under the Secondone, Thirdone and Fourthone loan agreements with a new 5-year secured loan of $20,500
and cash of $2,100. The remaining balance of $4,306 was written-off by the previous lender at closing, which was recorded as gain from
debt extinguishment in the 2018 consolidated statement of comprehensive loss.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each of Secondone’s and Thirdone’s outstanding
loan balance at December 31, 2020, amounting to $3,290, is repayable in 9 remaining quarterly installments of $100 each amounting to $900
in the aggregate, the first falling due in February 2021, and the last installment accompanied by a balloon payment of $2,390 falling
due in February 2023.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, the outstanding balance of
the Fourthone loan of $8,730 is repayable in 9 quarterly installments amounting to $3,330, the first falling due in February 2021, and
the last installment accompanied by a balloon payment of $5,400 falling due in February 2023. The first installment, amounting to $330,
is followed by four amounting to $360 each and four amounting to $390 each.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The loan bears interest at LIBOR plus a margin of
4.65% per annum.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a condition subsequent to the execution of this
loan agreement, the borrowers, Secondone, Thirdone and Fourthone, were required to re-domicile to the jurisdiction of the Republic of
Malta. In March and April 2018, these vessel-owning companies completed their re-domiciliation and were renamed to SECONDONE CORPORATION
LTD., THIRDONE CORPORATION LTD. and FOURTHONE CORPORATION LTD., respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Standard loan covenants include, among others, a minimum
liquidity and an MSC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The facility also imposes certain customary covenants
and restrictions with respect to, among other things, the borrowers’ ability to incur additional indebtedness, create liens, change
its share capital, engage in mergers, or sell the vessel and a minimum collateral value to outstanding loan principal.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Covenants:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The Company undertakes to maintain minimum deposits with the bank of $1,450 at all times.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">MSC is to be at least 150% until February 2022 and at least 155% thereafter.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The borrowers, Secondone, Thirdone and Fourthone are 100% legally and beneficially (directly) owned by the Company. No change of ownership of the borrowers and change of control of the Company without lender’s prior written consent, where control means: (i) the power (whether by way of ownership of shares, partnership units, proxy, contract, agency or otherwise) to: (a) cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the Company; or (b) appoint or remove all, or the majority, of the directors or other equivalent officers of the Company; or (c) give directions with respect to the operating and financial policies of the Company with which the directors or other equivalent officers of the Company are obliged to comply; and/or (ii) the holding beneficially of more than 50% of the issued shares of the Company (excluding any part of that issued shares that carries no right to participate beyond a specified amount in a distribution of either profits or capital).</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-align: justify; text-indent: -0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 24px; text-align: center"><font style="font-size: 10pt">(c)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">On October 12, 2012, Sixthone and Seventhone concluded as joint and several borrowers a loan agreement with a financial institution in order to partly finance the acquisition and construction cost of the <i>Pyxis Delta</i> and the <i>Pyxis Theta</i>, respectively. In February 2013, Sixthone drew down an amount of $13,500, while in September 2013, Seventhone drew down an amount of $21,300 (“Tranche A” and “Tranche B”, respectively). On September 29, 2016, the Company agreed with the lender of Sixthone to extend the maturity of Tranche A from May 2017 to September 2018, under the same amortization schedule and applicable margin. In addition, on June 6, 2017, the lender of Sixthone and Seventhone agreed to further extend the maturity of its respective loans from September 2018 to September 2022 under the same applicable margin, but with an extended amortization schedule.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 13, 2019, the Company decided to make
arrangements to sell Pyxis Delta, and the Company concluded that all the criteria required by the relevant accounting standard, ASC 360-10-45-9,
for the classification of the vessel Pyxis Delta as “held for sale” were met. As at December 31, 2019, upon classification
of Pyxis Delta as vessel held-for-sale, the total outstanding balance of Tranche A of $4,050 was classified in the consolidated balance
sheet under the line item “Current portion of long-term debt, net of deferred financing costs”. According to the loan agreement,
the early prepayment of the outstanding balance of Tranche A obliged the Company to make a prepayment of $1,624 for Tranche B so that
the required security cover ratio of the facility remained the same as the ratio applied immediately prior to the sale. As of December
31, 2019, the amount of $1,624 of Tranche B, that was due to be prepaid upon the early prepayment of Tranche A, was also classified in
the consolidated balance sheet under the line item “Current portion of long-term debt, net of deferred financing costs”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 13, 2020, pursuant to the sale agreement
that the Company entered into in late 2019, Pyxis Delta was delivered to her buyers. The total net proceeds from the sale of the vessel
were $13,197, $5,674 out of which was used to prepay the loan facility secured by the <i>Pyxis Delta</i> and the <i>Pyxis Theta</i> and
$7,523 for the repayment of the Company’s liabilities to Maritime and obligations to its trade creditors. On July 8, 2020, Seventhone
entered into a $15,250 secured loan agreement with the new lender, for the purpose of refinancing the outstanding indebtedness of $11,293
under the previous loan facility, which was fully settled on the same day. The new loan bears interest at LIBOR plus a margin of 3.35%
per annum. As of December 31, 2020, the outstanding balance of the Seventhone loan of $14,950 is repayable in 19 consecutive quarterly
installments of $300 each, the first falling due in January 2021, and the last installment accompanied by a balloon payment of $9,250
falling due in July 2025. Standard collateral interests and customary covenants are incorporated in this facility.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Standard loan covenants include, among others, a minimum
liquidity and a minimum required Security Cover Ratio (“MSC”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The facility imposes certain customary covenants and
restrictions with respect to, among other things, the borrower’s ability to distribute dividends, incur additional indebtedness,
create liens, change its share capital, engage in mergers, or sell the vessel and a minimum collateral value to outstanding loan principal.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Covenants:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.4pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The Company undertakes to maintain minimum deposit with the bank of $500 at all times.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The ratio of the Company’s total liabilities to total assets is not to exceed 75%. This requirement is only applicable in order to assess whether the Vessel-owning company is entitled to distribute dividends to Pyxis. As of December 31, 2020, the requirement was met as such ratio was 71%, or 4% lower than the required threshold.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">MSC is to be at least 125% of the respective outstanding loan balance.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">No change shall be made directly or indirectly in the ownership, beneficial ownership, control or management of Seventhone or of the Company or any share therein or the Pyxis Theta, as a result of which less than 100% of the shares and voting rights in Seventhone or less than 40% of the shares and voting rights in the Company remain in the ultimate legal and beneficial owners disclosed at the negotiation of this loan agreement.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-align: justify; text-indent: -0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 24px; text-align: center"><font style="font-size: 10pt">(d)</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">On September 27, 2018, Eighthone entered into a new $24,000 loan agreement, for the purpose of refinancing the outstanding indebtedness of $16,000 under the previous loan facility and for general corporate purposes. The new facility matures in September 2023 and is secured by a first priority mortgage over the vessel, general assignment covering earnings, insurances and requisition compensation, an account pledge agreement and a share pledge agreement concerning the respective vessel-owning subsidiary and technical and commercial managers’ undertakings.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The new loan facility bears an interest rate of 11%
of which 1.0% can be paid as PIK interest per annum for the first two years, and 11.0% per annum thereafter and incurs fees due upfront
and upon early prepayment or final repayment of outstanding principal.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The principal obligation amortizes in 10 quarterly
installments starting in March 29, 2021, equal to the lower of $400 and excess cash computed through a cash sweep mechanism, plus a balloon
payment due at maturity. As of December 31, 2020, the outstanding balance of Eighthone loan was $24,000. Management cannot currently assess
with any certainty that any amount under the cash sweep will be made prior to loan maturity.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The facility also imposes certain customary covenants
and restrictions with respect to, among other things, the borrower’s ability to distribute dividends, incur additional indebtedness,
create liens, change its share capital, engage in mergers, or sell the vessel and a minimum collateral value to outstanding loan principal.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Covenants:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">As of December 31, 2019, the Company had to maintain minimum deposits with the bank (“Liquidity Account”) of $750 at all times. Based on the first supplemental letter dated 9, July 2020, the Company undertook to maintain the credit balance of the Liquidity Account not falling at any time below $375 and to credit on each Quarter End Date (such first Quarter End Date being the December 31, 2020) an amount equal to $1 per day to the Liquidity Account calculated on and from October 1, 2020, until such time that the amount standing to the credit of the Liquidity Account is no less than the Minimum Liquidity Amount of $750. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">Following the Second Supplemental Letter signed on September 25, 2020, MSC was to be at least 115% of the respective outstanding loan balance until December 31, 2020 (inclusive) and at least 125% thereafter.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font-size: 10pt">●</font></td>
<td style="text-align: justify"><font style="font-size: 10pt">The Company ceases to own directly the entire share capital of Eighthone; or Mr. Valentis (either directly and/or indirectly through companies beneficially owned by him/or trusts of foundations of which he is a beneficiary) ceases to own at least 25 per cent. of the share capital of the Company; or Mr. Valentis ceases to be the Chairman of the Company.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 60.5pt; text-align: justify; text-indent: -0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the facility, a deferred fee may be payable
on the occurrence of certain events including, among others, the sale of the vessel or on repayment or maturity of the loan. If payable,
the amount due is calculated as the lesser of (a) 15% of the amount of the loan borrowed under the facility agreement and (b) 15% of the
difference between (i) the charter-free fair market value of the vessel plus any dry dock reserve account balance and (ii) any outstanding
loan amount at the time of the repayment or maturity of the facility. In the event that the deferred fee and the prepayment fee become
simultaneously payable, only the higher of the prepayment fee or the deferred fee will be payable. Management has assessed this deferred
fee as a contingent liability under ASC 450 and concluded that such loss contingency should not be accrued as of December 31, 2020 by
a charge in the consolidated statements of comprehensive loss, since information available as of December 31, 2020 did not indicate that
was probable that the liability had been incurred as of the balance sheet date at December 31, 2020 and could not be reliably estimated.
A prepayment fee of $0.2 million was paid following the refinancing of the facility on March 30, 2021 (Note 13).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each loan is secured by a first priority mortgage
over the respective vessel and a first priority assignment of the vessel’s insurances and earnings. Each loan agreement contains
customary ship finance covenants including restrictions as to changes in management and ownership of the vessel and in dividend distributions
when certain financial ratios are not met.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, the Company was in compliance
with all of its financial and MSC covenants with respect to its loan agreements. In addition, as of December 31, 2020, there was no amount
available to be drawn down by the Company under its existing loan agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The annual principal payments required to be made
after December 31, 2020, are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 10pt"><b>To December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 82%; text-align: justify"><font style="font-size: 10pt">2021</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">3,410</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,530</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">35,970</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,200</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 10pt">2025 and thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,150</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: justify"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>54,260</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total interest expense on long-term debt and promissory
note for the years ended December 31, 2018, 2019 and 2020, amounted to $4,048, $5,517 and $4,636 respectively, and is included in Interest
and finance costs, net (Note 12) in the accompanying consolidated statements of comprehensive loss. The Company’s weighted average
interest rate (including the margin) for the years ended December 31, 2018, 2019 and 2020, was 6.00%, 8.18% and 7.69% per annum, including
the promissory note discussed in Note 3, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts shown in the accompanying consolidated
balance sheets at December 31, 2019 and 2020, are analyzed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Vessel (Borrower)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31,<br />
2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31,<br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt"><i>(a) Northsea Alpha (Secondone)</i></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">3,690</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">3,290</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><i>(a) Northsea Beta (Thirdone)</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,690</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,290</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><i>(b) Pyxis Malou (Fourthone)</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,020</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">8,730</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt"><i>(c) Pyxis Delta (Sixthone)</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4,050</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><i>(c) Pyxis Theta (Seventhone)</i></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">13,469</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">14,950</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><i>(d) Pyxis Epsilon (Eighthone)</i></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">24,000</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">24,000</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>58,919</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>54,260</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Current portion</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>9,241</b></font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>3,410</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Less: Current portion of deferred financing costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(257</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(155</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Current portion of long-term debt, net of deferred financing costs, current</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>8,984</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>3,255</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Long-term portion</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>49,678</b></font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>50,850</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Less: Non-current portion of deferred financing costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(445</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(519</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Long-term debt, net of current portion and deferred financing costs, non-current</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>49,233</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>50,331</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The annual principal payments required to be made
after December 31, 2020, are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 10pt"><b>To December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 82%; text-align: justify"><font style="font-size: 10pt">2021</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">3,410</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">3,530</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">35,970</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,200</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 10pt">2025 and thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">10,150</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: justify"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>54,260</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>8. Equity Capital Structure and Equity Incentive
Plan:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s authorized common and preferred
stock consists of 450,000,000 common shares, 50,000,000 preferred shares of which 1,000,000 are authorized as Series A Convertible Preferred
Shares. The Company had nil and 181,475 Series A Convertible Preferred Shares issued and outstanding as at December 31, 2019 and 2020,
respectively with a par value of USD 0.001 per share. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts shown in the accompanying consolidated
balance sheets as Additional paid-in capital represent contributions made by the stockholders at various dates to finance vessel acquisitions
in excess of the amounts of bank loans obtained, advances for working capital purposes, net of subsequent distributions primarily from
re-imbursement of certain payments to shipyards in respect to the construction of new-built vessels, the non-cash portion of the interest
payable in shares under the Amended & Restated Promissory Note, net proceeds from the issuance of common stock and the net proceeds
of $4.3 million from the Company’s offering of 200,000 units referred below. There was no paid-in capital re-imbursement for the
years ended December 31, 2019 and 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 2, 2018, the Company filed with the SEC
a registration statement on Form F-3, under which it may sell from time to time common stock, preferred stock, debt securities, warrants,
purchase contracts and units, each as described therein, in any combination, in one or more offerings up to an aggregate dollar amount
of $100,000. In addition, the selling stockholders referred to in the registration statement may sell in one of more offerings up to 5,233,222
shares of the Company’s common stock from time to time as described therein. The registration statement was declared effective by
the SEC on February 12, 2018. On March 30, 2018, the Company filed a prospectus supplement to the Shelf Registration Statement related
to an At-The-Market Program (“ATM Program”) under which it may, from time to time, issue and sell shares of its common stock
up to an aggregate offering of $2,300 through a sales agent as either agent or principal. No shares were sold under this initial ATM Program,
but on November 19, 2018, the prospectus supplement was amended to increase the offering to $3,675. As of December 31, 2018, and 2019,
the Company issued and sold 182,297 and 214,828 common shares, respectively, under the ATM Program. As of December 31, 2020, no shares
have been sold under the ATM Program.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 13, 2020, the Company announced the closing
of its offering of 200,000 Units at an offering price of $25.00 per Unit (the “Offering”). Each Unit was immediately separable
into one 7.75% Series A Convertible Preferred Shares and eight (8) detachable Warrants, each warrant exercisable for one common share,
for a total of up to 1,600,000 common shares of the Company. Each Warrant will entitle the holder to purchase one common share at an initial
exercise price of $1.40 per share at any time prior to October 13, 2025 or, in case of absence of an effective registration statement,
to exchange those cashless based on a formula. Any Warrants that remain unexercised on October 13, 2025 shall be automatically exercised
by way of a cashless exercise on that date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 13, 2020, the Company had granted the underwriter
a 45-day option to purchase up to 30,000 additional Series A Convertible Preferred Shares and/or 240,000 additional Warrants. The purchase
price to be paid by the Underwriters per optional preferred share was $23.051 and the purchase price per optional Warrant was $0.00925.
On the same day, the underwriter partially exercised its overallotment option for 135,040 Warrants for gross proceeds of $1. The Company
considered that the overallotment option was a freestanding financial instrument but did not meet the derivative definition criteria and
did not require bifurcation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Warrants are also subject to customary adjustment
provisions, such as for stock dividends, subdivisions and combinations and certain fundamental transactions such as those in which the
Company directly or indirectly, in one or more related transactions effect any merger or consolidation of the Company with or into another
entity, or the Company effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions. The Company determined that the Warrants are indexed to its own stock and
meet all the conditions for equity classification. As of December 31, 2020, 1,735,040 Warrants remained outstanding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Series A Convertible Preferred Shares and Warrants
are listed on the Nasdaq Capital Market under the symbols “PXSAP” and “PXSAW”, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each Series A Convertible Preferred Share is convertible
into common shares at an initial conversion price of $1.40 per common share, or 17.86 common shares, at any time at the option of the
holder, subject to certain customary adjustments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If the trading price of Pyxis Tankers’ common
stock equals or exceeds $2.38 per share for at least 20 days in any 30 consecutive trading day period ending 5 days prior to notice, the
Company can call, in whole or in part, for mandatory conversion of the Series A Convertible Preferred Shares. The holders, however, will
be prohibited from converting the Series A Convertible Preferred Shares into common shares to the extent that, as a result of such conversion,
the holder would own more than 9.99% of the total number common shares then issued and outstanding, unless a 61-day notice is delivered
to the Company. The conversion price is subject to customary anti-dilution and other adjustments relating to the issuance of common shares
as a dividend or the subdivision, combination, or reclassification of common shares into a greater or lesser number of common shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Beginning on October 13, 2023, the Company may, at
its option, redeem the Series A Convertible Preferred Shares, in whole or in part, by paying $25.00 per share, plus any accrued and unpaid
dividends to the date of redemption.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If the Company liquidates, dissolves or winds up,
holders of the Series A Convertible Preferred Shares will have the right to receive $25.00 per share, plus all accumulated, accrued and
unpaid dividends (whether or not earned or declared) to and including the date of payment, before any payments are made to the holders
of the Company’s common shares or to the holders of equity securities the terms of which provide that such equity securities will
rank junior to the Series A Convertible Preferred Shares. The rights of holders of Series A Convertible Preferred Shares to receive their
liquidation preference also will be subject to the proportionate rights of any other class or series of our capital stock ranking in parity
with the Series A Convertible Preferred Shares as to liquidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Series A Convertible Preferred Shares are not
redeemable for a period of three years from issuance, except upon change of control. In the case of a change of control that is pre-approved
by the Company’s Board of Directors, holders of Series A Convertible Preferred Shares have the option to (i) demand that the Company
redeem the Series A Convertible Preferred Shares at (a) $26.63 per Series A Convertible Preferred Share from the date of issuance until
October 13, 2021, (b) $25.81 per Series A Convertible Preferred Share from October 13, 2021 until October 13, 2022 and (c) $25.00 after
October 13, 2022, or (ii) continue to hold the Series A Convertible Preferred Shares. Upon a change of control, the holders also have
the option to convert some or all of the Series A Convertible Preferred Shares, together with any accrued or unpaid dividends, into shares
of common stock at the conversion rate. Change of Control means that (i) Mr. Valentios Valentis and his affiliates cease to own at least
20% of the voting securities of the Company, or (ii) a person or group acquires at least 50% voting control of the Company, and in the
case of each of either (i) or (ii), neither the Company nor any surviving entity has its common stock listed on a recognized U.S. exchange.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Series A Convertible Preferred Shares did not
generate a beneficial conversion feature (BCF) upon issuance as the fair value of the Company’s common shares was lower than the
conversion price. The Series A Convertible Preferred Shares did not meet the criteria for mandatorily redeemable financial instruments.
Additionally, the Company determined that the nature of the Series A Convertible Preferred Shares was more akin to an equity instrument
and that the economic characteristics and risks of the embedded conversion options were clearly and closely related to the Series A Convertible
Preferred Shares. As such, the conversion options were not required to be bifurcated from the equity host under ASC 815, Derivatives and
Hedging. The Company also determined that the redemption call option did meet the definition of a derivative but is eligible for exception
from derivative accounting and thus no bifurcation of the feature was performed.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Series A Convertible Preferred Shares will not
vote with the common shares, however, if dividends on the Series A Convertible Preferred Shares are in arrears for eighteen (18) or more
consecutive or non-consecutive monthly dividends, the holders of the Series A Convertible Preferred Shares, voting as a single class,
shall be entitled to vote for the election of one additional director to serve on the Board of Directors until the next annual meeting
of shareholders following the date on which all dividends that are owed and are in arrears have been paid. In addition, unless the Company
has received the affirmative vote or consent of the holders of at least 66.67% of the then outstanding Series A Convertible Preferred
Shares, voting as a single class, the Company may not create or issue any class or series of capital stock ranking senior to the Series
A Convertible Preferred Shares with respect to dividends or distributions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dividends on the Series A Convertible Preferred Shares
are cumulative from and including the date of original issuance in the amount of $1.9375 per share each year, which is equivalent to 7.75%
of the $25.00 liquidation preference per share. Dividends on the Series A Convertible Preferred Shares are paid monthly in arrears starting
November 20, 2020, to the extent declared by the board of directors of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 20, 2020, the Company paid a cash dividend
of $0.1991 per share on each Series A Convertible Preferred Share for the first period in November 2020. On December 21, 2020, the Company
paid a cash dividend of $0.1615 per share on each Series A Convertible Preferred Share for the month of December 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company also agreed to issue and sell to
designees of the underwriter as compensation, two separate types of Underwriter’s Warrants for an aggregate purchase price of $100
(absolute amount). The warrants were issued pursuant to an Underwriting Agreement dated October 8, 2020. The first type of the Underwriter’s
Warrants is a warrant for the purchase of an aggregate of 2,000 Series A Convertible Preferred Shares at an exercise price of $24.92 and
the second type is a warrant for the purchase of an aggregate of 16,000 Warrants at an exercise price of $0.01, at any time on or after
April 6, 2021 and prior to October 8, 2025 (the “Termination Date”). On exercise, each Underwriter Warrant allows the holder
to purchase one Series A Convertible Preferred Share or one Warrant of the Company or, in case of absence of an effective registration
statement, to exchange those cashless based on a formula set in the Underwriting Agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify">Any Underwriter’s Warrants that remain
unexercised on the Termination Date shall be automatically exercised by way of a cashless exercise on that date. The Underwriter’s
Warrants are also subject to customary adjustment provisions similar to the detachable Warrants discussed above.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/106% Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has accounted for Underwriter’s
Warrants in accordance with ASC 718-Compensation-Stock Compensation, classified within stockholders’ equity. As of December 31,
2020, 2,000 Underwriter’s Warrants to purchase 2,000 Series A Convertible Preferred Shares and 16,000 Underwriter’s warrant
to purchase 16,000 Warrants remained outstanding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company received gross proceeds of $5.0 million
from the Offering, prior to deducting underwriting discounts and offering expenses. The net proceeds from the Offering of approximately
$4.3 million were used for general corporate purposes, including working capital and the repayment of debt.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2018, following the issuance and
sale of 182,297 shares of common stock under the ATM Program, the Company’s outstanding common shares increased from 20,877,893
to 21,060,190. As of December 31, 2019, following the issuance and sale of additional 214,828 common shares under the ATM Program the
Company raised $354 at an average (gross) price of $1.65/share. Furthermore, during the same period, the Company issued 95,262 of common
shares to settle the interest charged on the Amended & Restated Promissory Note, discussed in Note 3. As a result of the above transactions
the Company’s outstanding common shares increased from 21,060,190 to 21,370,280 as at December 31, 2019. During the year ended December
31, 2020, the Company issued additional 260,495 of common shares to settle the interest charged on the Amended & Restated Promissory
Note, discussed in Note 3. Furthermore, during the same year 18,525 Series A Convertible Preferred Shares were converted to 332,106 common
stock. The Company’s common stock issued and outstanding increased from 21,370,280 to 21,962,881 as at December 31, 2020 and, as
of the same date, the Company’s outstanding Series A Convertible Preferred Stock decreased from 200,000 to 181,475 while no Warrants
of any type were exercised.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>9. Loss per Common Share:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>For the years ended December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt">Net loss available to common stockholders</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(8,214</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(8,330</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(6,982</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Weighted average number of common shares, basic and diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,894,202</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">21,161,164</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">21,548,126</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Loss per common share, basic and diluted</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>(0.39</b></font></td>
<td><font style="font-size: 10pt"><b>)</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>(0.39</b></font></td>
<td><font style="font-size: 10pt"><b>)</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>(0.32</b></font></td>
<td><font style="font-size: 10pt"><b>)</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2020, securities that could potentially
dilute basic loss per share in the future that were not included in the computation of diluted loss per share, because to do so would
have anti-dilutive effect, were any incremental shares of the unexercised warrants, calculated with the treasury stock method, as well
as shares assumed to be converted with respect to the Series A Convertible Preferred Shares calculated with the if-converted method. At
December 31, 2018 and 2019, there were no securities that could potentially dilute basic loss per share.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>For the years ended December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt">Net loss available to common stockholders</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(8,214</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(8,330</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(6,982</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Weighted average number of common shares, basic and diluted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">20,894,202</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">21,161,164</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">21,548,126</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><b>Loss per common share, basic and diluted</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>(0.39</b></font></td>
<td><font style="font-size: 10pt"><b>)</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>(0.39</b></font></td>
<td><font style="font-size: 10pt"><b>)</b></font></td>
<td> </td>
<td><font style="font-size: 10pt"><b>$</b></font></td>
<td style="text-align: right"><font style="font-size: 10pt"><b>(0.32</b></font></td>
<td><font style="font-size: 10pt"><b>)</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>10. Risk Management and Fair Value Measurements:
</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The principal financial assets of the Company consist
of cash and cash equivalents, trade accounts receivable due from charterers and amounts due from related parties. The principal financial
liabilities of the Company consist of long-term bank loans, trade accounts payable and a promissory note.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Interest rate risk</i>: </b>The Company’s
interest rates are calculated at LIBOR plus a margin, as discussed in Note 7 and hence the Company is exposed to movements in LIBOR. In
order to hedge its variable interest rate exposure, on January 19, 2018, the Company, via one of its vessel-ownings subsidiaries, entered
into an interest rate cap agreement with one of its lenders for a notional amount of $10,000 and a cap rate of 3.5%. The interest rate
cap will terminate on July 18, 2022.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Credit risk</i>: </b>Credit risk is minimized
since trade accounts receivable from charterers are presented net of the expected credit losses. The Company places its cash & cash
equivalents, primarily with high credit qualified financial institutions. The Company performs periodic evaluations of the relative credit
standing of those financial institutions that are considered in the Company’s investment strategy. On the balance sheet date there
were no significant concentrations on credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial
asset on the balance sheet.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Currency risk</i>: </b>The Company’s transactions
are denominated primarily in U.S. dollars; therefore, overall currency exchange risk is limited. Balances in foreign currency other than
U.S. dollars are not considered significant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Fair value: </i></b>The Management has determined
that the fair values of the assets and liabilities as of December 31, 2020, are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Carrying</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Value</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Value</b></p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt">Cash and cash equivalents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">4,037</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">4,037</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Trade accounts receivable, net</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">663</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">663</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Trade accounts payable</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,642</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,642</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Long-term debt with variable interest rates, net</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30,260</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30,260</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Long-term loans and promissory note with non-variable interest rates, net *</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">29,000</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">33,864</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">* As at December 31, 2020, Carrying Value of Eighthone
Loan and Amended & Restated Promissory Note is $24,000 and $5,000, respectively. Theoretical Fair Value of Eighthone Loan and Amended
& Restated Promissory Note is $28,121 and $5,743, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Assets measured at fair value on a recurring basis:
Interest rate cap</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s interest rate cap does not qualify
for hedge accounting. The Company adjusts its interest rate cap contract to fair market value at the end of every period and records the
resulting gain or loss during the period in the consolidated statements of comprehensive loss. Information on the classification, the
derivative fair value and the loss from financial derivative instrument included in the consolidated financial statements is shown below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Consolidated Balance Sheets – Location</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt">Financial derivative instrument – Other non-current assets</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">1</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="width: 1%"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Consolidated Statements of Comprehensive Loss - Location</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt">Financial derivative instrument – Fair value at the beginning of the period</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(28</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(1</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Financial derivative instrument – Fair value as at period end</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Loss from financial derivative instrument</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>(27</b></font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>(1</b></font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>)</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Assets measured at fair value on a recurring basis:
Interest rate cap</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the Company’s interest rate
cap agreement is determined based on market-based LIBOR rates. LIBOR rates are observable at commonly quoted intervals for the full term
of the cap and therefore, are considered Level 2 items in accordance with the fair value hierarchy.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Assets measured at fair value on a non-recurring
basis: Long lived assets held and used and Held for sale</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2018, the Company reviewed the
carrying amount in connection with the estimated recoverable amount for each of its vessels. This review indicated that such carrying
amount was not fully recoverable for the Company’s vessels <i>Northsea Alpha</i> and <i>Northsea Beta</i>. Consequently, the carrying
value of these vessels was written-down to their respective fair values as presented in the table below.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Vessel</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Significant Other<br />
Observable Inputs <br />
(Level 2)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Vessel Impairment<br />
Charge (charged against<br />
Vessels, net)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%; text-align: justify"><font style="font-size: 10pt"><i>Northsea Alpha</i></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">6,125</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">1,142</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 10pt"><i>Northsea Beta</i></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">6,125</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1,140</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: justify"><font style="font-size: 10pt"><b>TOTAL</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>12,250</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,282</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value is based on level 2 inputs of the fair
value hierarchy and reflects the Company’s best estimate of the value of each vessel on a time charter free basis and is supported
by a vessel valuation of an independent shipbroker which is mainly based on recent sales and purchase transactions of similar vessels.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company performs an impairment exercise whenever
there are indicators of impairment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognized the total Vessel impairment
charge of $2,282 which is included in the accompanying consolidated statements of comprehensive loss for the year ended December 31, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No impairment loss was recognized for the years ended
December 31, 2019 and 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 13, 2019, the Company decided to make
arrangements to sell Pyxis Delta, and the Company concluded that all the criteria required by the relevant accounting standard, ASC 360-10-45-9,
for the classification of the vessel as “held for sale”, were met. Long lived assets classified as held-for-sale are measured
at the lower of their carrying amount or fair value less costs to sell. As at December 31, 2019, the Company has classified Pyxis Delta
under Vessel held-for-sale on the consolidated balance sheet, at a value of $13,190 representing the estimated fair market value of the
vessel, net of costs to sell, based on the gross selling price of the agreement signed with a third party to sell the vessel, on December
11, 2019. (Level 2 inputs of the fair value hierarchy).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and 2020, the Company did
not have any other assets or liabilities measured at fair value on a non-recurring basis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Management has determined that the fair values
of the assets and liabilities as of December 31, 2020, are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Carrying</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Value</b></p></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Value</b></p></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt">Cash and cash equivalents</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">4,037</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">4,037</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Trade accounts receivable, net</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">663</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">663</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Trade accounts payable</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,642</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">3,642</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Long-term debt with variable interest rates, net</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30,260</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30,260</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Long-term loans and promissory note with non-variable interest rates, net *</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">29,000</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">33,864</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">* As at December 31, 2020, Carrying Value of Eighthone
Loan and Amended & Restated Promissory Note is $24,000 and $5,000, respectively. Theoretical Fair Value of Eighthone Loan and Amended
& Restated Promissory Note is $28,121 and $5,743, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Information on the classification, the derivative
fair value and the loss from financial derivative instrument included in the consolidated financial statements is shown below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Consolidated Balance Sheets – Location</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt">Financial derivative instrument – Other non-current assets</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">1</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="width: 1%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Consolidated Statements of Comprehensive Loss - Location</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>December 31, <br />
2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%"><font style="font-size: 10pt">Financial derivative instrument – Fair value at the beginning of the period</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(28</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">(1</font></td>
<td style="width: 1%"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Financial derivative instrument – Fair value as at period end</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">—</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>Loss from financial derivative instrument</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>(27</b></font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt"><b>(1</b></font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt"><b>)</b></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2018, the Company reviewed the
carrying amount in connection with the estimated recoverable amount for each of its vessels. This review indicated that such carrying
amount was not fully recoverable for the Company’s vessels <i>Northsea Alpha</i> and <i>Northsea Beta</i>. Consequently, the carrying
value of these vessels was written-down to their respective fair values as presented in the table below.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Vessel</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Significant Other<br />
Observable Inputs <br />
(Level 2)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Vessel Impairment<br />
Charge (charged against<br />
Vessels, net)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 66%; text-align: justify"><font style="font-size: 10pt"><i>Northsea Alpha</i></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">6,125</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">1,142</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 10pt"><i>Northsea Beta</i></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">6,125</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1,140</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: justify"><font style="font-size: 10pt"><b>TOTAL</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>12,250</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>2,282</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"><b>11. Commitments
and Contingencies:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Minimum contractual charter revenues: </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company employs certain of its vessels under lease
agreements. Time charters typically may provide for variable lease payments, charterers’ options to extend the lease terms at higher
rates and termination clauses. The Company’s contracted time charters as of December 31, 2020, range from one to three months, with
varying extension periods at the charterers’ option and do not provide for variable lease payments. Our time charters contain customary
termination clauses which protect either the Company or the charterers from material adverse situations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Future minimum contractual charter revenues, gross
of 1.25% address commission and 1.25% brokerage commissions to Maritime and of any other brokerage commissions to third parties, based
on the vessels’ committed, non-cancelable, long-term time charter contracts as of December 31, 2020, are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: justify"><font style="font-size: 10pt"><b>Year ending December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 82%; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 10pt">2021</font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">4,358</font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: justify"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,358</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Other</i></b>: Various claims, suits and complaints,
including those involving government regulations and environmental liability, arise in the ordinary course of the shipping business. In
addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations
of the Company’s vessels. Currently, management is not aware of any such claims not covered by insurance or contingent liabilities,
which should be disclosed, or for which a provision has not been established in the accompanying consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accrues for the cost of environmental
and other liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable exposure.
As of December 31, 2020 and as of the date of the issuance of the FS, management is not aware of any other claims or contingent liabilities,
which should be disclosed or for which a provision should be established in the accompanying consolidated financial statements. The Company
is covered for liabilities associated with the individual vessels’ actions to the maximum limits as provided by Protection and Indemnity
(P&I) Clubs, members of the International Group of P&I Clubs.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: justify"><font style="font-size: 10pt"><b>Year ending December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 82%; padding-bottom: 1.5pt; text-align: justify"><font style="font-size: 10pt">2021</font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: right"><font style="font-size: 10pt">4,358</font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: justify"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,358</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts in the accompanying consolidated statements
of comprehensive loss are analyzed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>For the years ended December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt">Interest on long-term debt (Note 7)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">3,835</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">5,122</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">4,184</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Interest on promissory note (Note 3)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">213</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">395</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">452</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Long-term debt prepayment fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">56</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Amortization and write-off of financing costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">386</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">258</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">328</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,490</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>5,775</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,964</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>13. Subsequent Events:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Issuance of shares:</i></b> On January 4, 2021
and April 2, 2021, following the second amendment to the Amended & Restated Promissory Note dated May 14, 2019, the Company issued
64,446 and 47,827 of common shares, respectively, at the volume weighted average closing share price for the 10-day period immediately
prior to the quarter end, as discussed in Note 3.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Pyxis Regains Compliance with NASDAQ’s
Minimum Closing Bid Price Rule: </i></b>On July 2, 2020, NASDAQ had notified the Company of its noncompliance with the minimum bid price
of $1.00 over the previous 30 consecutive business days as required by the Listing Rules of the NASDAQ Stock Market. On December 29, 2020,
the Company received written notification granting the Company a 180-day extension, or until June 28, 2021, to regain compliance with
the minimum bid price requirement. Subsequently, from January 28, 2021 to February 16, 2021, the Company’s closing bid price for
its common shares was $1.00 per share or greater and, on February 17, 2021, NASDAQ informed the Company that it had regained compliance
with the exchange’s minimum closing bid price rule (NASDAQ Listing Rule 5550(a)(2)).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Closing of $25.0 Million Private Placement of
Common Stock: </i></b>On February 24, 2021 the Company announced that it had closed its definitive securities purchase agreements with
a group of investors, which resulted in gross proceeds to Pyxis Tankers of $25.0 million, before deducting placement offering expenses.
Pyxis Tankers issued 14,285,715 shares of common stock at a price of $1.75 per share. The Company will use the net proceeds from the offering
for general corporate purposes, which may include the repayment of outstanding indebtedness and potential vessel acquisitions. The securities
offered and sold by Pyxis Tankers in the private placement were subsequently registered under the Securities Act of 1933, as amended (the
“Securities Act”), under a resale registration statement filed with the Securities and Exchange Commission (the “SEC”)
and became effective on March 11, 2021. Any resale of Pyxis Tankers’ shares under such resale registration statement will be made
only by means of a prospectus.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Series A Convertible Preferred Shares Conversions
& Warrant Exercises:</i></b> During the period through April 6, 2021, 58,814 of Series A Convertible Preferred Shares were converted
into 1,052,529 registered common shares of the Company and 144,500 Warrants were exercised for 144,500 registered common shares. The Company
received $0.2 million on Warrant exercise.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of April 6, 2021, we had a total of 37,225,792
common shares issued and outstanding of which Mr. Valentis beneficially owned 47.3%.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Series A Convertible Preferred Shares Dividend
Payments:</i></b> On January 20, 2021, February 22, 2021 and March 22, 2021, the Company paid cash dividends of $0.1615 per Series A Convertible
Preferred Share for each month which aggregated to $83.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Amendment to Eighthone Loan: </i></b>On March
4, 2021, Eighthone Corp., the owner of the Pyxis Epsilon, entered into a Third Amendment with Wilmington Trust, as Agent, to modify two
loan covenants. The Minimum Liquidity amount shall remain at $0.5 million through 2021 and increase to $0.75 million thereafter until
maturity. The Minimum Security Cover shall remain at 115% of the outstanding loan (currently $24 million) through 2021 and increase to
125% thereafter. All other terms and conditions shall remain in full force and effect.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Refinancing of Eighthone Loan:</i></b> On March
29, 2021, the Company entered into a new secured loan agreement for the refinancing of the existing Eighthone loan. The $17 million provided
by the new secured loan combined with $7.3 million of available cash were used to prepay the outstanding indebtedness of the previous
loan in full and fund closing fees and expenses. The new five year loan has quarterly amortization of $0.3 million with $11 million due
at maturity. The loan is priced at Libor plus 3.35%. All other terms and conditions were standard for a bank loan of this type.</p>
113000
169000
25000000
7523000
5674000
2023-09
Based on the first supplemental letter dated 9, July 2020, the Company undertook to maintain the credit balance of the Liquidity Account not falling at any time below $375 and to credit on each Quarter End Date (such first Quarter End Date being the December 31, 2020) an amount equal to $1 per day to the Liquidity Account calculated on and from October 1, 2020, until such time that the amount standing to the credit of the Liquidity Account is no less than the Minimum Liquidity Amount of $750.
The Company entered into a second amendment to the Amended & Restated Promissory Note which (i) extended the repayment of the outstanding principal, in whole or in part, until the earlier of a) one year after the repayment of the credit facility of Eighthone with Entrust Global (the "Credit Facility") on September 2023 (see Note 7), b) January 15, 2024 and c) repayment of any Paid-In-Kind ("PIK") interest and principal deficiency amount under the Credit Facility
0.045
0.045
December 31, 2015. Following their initial expiration dates, the management agreements were automatically renewed for consecutive five year periods, or until terminated by either party on three months’ notice.
December 31, 2015. Following their initial expiration dates, the management agreements were automatically renewed for consecutive five year periods, or until terminated by either party on three months’ notice.
December 31, 2017. Following their initial expiration dates, the management agreements were automatically renewed for consecutive five year periods, or until terminated by either party on three months’ notice.
December 31, 2018. Following their initial expiration dates, the management agreements were automatically renewed for consecutive five year periods, or until terminated by either party on three months’ notice.
December 31, 2018. Following their initial expiration dates, the management agreements were automatically renewed for consecutive five year periods, or until terminated by either party on three months’ notice.
5743000
28121000
181475
0
181475
0
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(y) Debt Modifications and Extinguishments:</i></b>
The Company follows the provisions of ASC 470-50, Modifications and Extinguishments, to account for all modifications or extinguishments
of debt instruments, except debt that is extinguished through a troubled debt restructuring or a conversion of debt to equity securities
of the debtor pursuant to conversion privileges provided in terms of the debt at issuance. This standard also provides guidance on whether
an exchange of debt instruments with the same creditor constitutes an extinguishment and whether a modification of a debt instrument should
be accounted for in the same manner as an extinguishment. In circumstances where an exchange of debt instruments or a modification of
a debt instrument does not result in extinguishment accounting, this standard provides guidance on the appropriate accounting treatment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">On July 8, 2020, Seventhone entered into a $15,250 secured loan agreement
with the new lender, for the purpose of refinancing the outstanding indebtedness of $11,293 under the previous loan facility, which was
fully settled on the same day. The Company considered the guidance under ASC 470-50 “Debt Modifications and Extinguishments”
and concluded that the transaction should be accounted for as debt extinguishment (Note 7).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(q) Financing Costs:</i></b> Costs associated
with new loans or refinancing of existing loans, including fees paid to lenders or required to be paid to third parties on the lender’s
behalf for obtaining new loans or refinancing existing loans, are recorded as a direct deduction from the carrying amount of the debt
liability. Such costs are deferred and amortized to Interest and finance costs in the consolidated statements of comprehensive loss during
the life of the related debt using the effective interest method. Unamortized costs relating to loans repaid or refinanced, meeting the
criteria of debt extinguishment, are expensed in the period the repayment or refinancing is made. Commitment fees relating to undrawn
loan principal are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(z) Distinguishing Liabilities from Equity:</i></b>
The Company follows the provisions of ASC 480 “Distinguishing liabilities from equity” to determine the classification of
certain freestanding financial instruments as either liabilities or equity. The Company in its assessment for the accounting of the Series
A Convertible Preferred Shares and detachable warrants issued in connection with the October 13, 2020 public offering has taken into consideration
ASC 480 “Distinguishing liabilities from equity” and determined that the Series A Convertible Preferred Shares and detachable
warrants should be classified as equity instead of liability (Note 8). The Company further analyzed key features of the Series A Convertible
Preferred Shares and detachable warrants to determine whether these are more akin to equity or to debt and concluded that the Series A
Convertible Preferred Shares and detachable warrants are equity-like. In its assessment, the Company identified certain embedded features,
examined whether these fall under the definition of a derivative according to ASC 815 applicable guidance or whether certain of these
features affected the classification. Derivative accounting was deemed inappropriate and thus no bifurcation of these features was performed.</p>
83000
at any time prior to October 13, 2025 or, in case of absence of an effective registration statement, to exchange those cashless based on a formula.
100
at any time on or after April 6, 2021 and prior to October 8, 2025
2000
24.92
16000
0.01
135040
0.00925
240000
up to 30,000
0.0775
8
up to 1,600,000
354000
Each Series A Convertible Preferred Share is convertible into common shares at an initial conversion price of $1.40 per common share, or 17.86 common shares, at any time at the option of the holder, subject to certain customary adjustments.
23.051
0001640043
FY
4050000
64446
47827
200000
9000
5000000
5000000
4964000
4490000
5775000
144500
The Minimum Liquidity amount shall remain at $0.5 million through 2021 and increase to $0.75 million thereafter until maturity. The Minimum Security Cover shall remain at 115% of the outstanding loan (currently $24 million) through 2021 and increase to 125% thereafter. All other terms and conditions shall remain in full force and effect.
0.1615
0.1615
0.1615
11000000
58,814 of Series A Convertible Preferred Shares were converted into 1,052,529 registered common shares
14285715
200000
25.00
1000
5000000
1.40
If the trading price of Pyxis Tankers' common stock equals or exceeds $2.38 per share for at least 20 days in any 30 consecutive trading day period ending 5 days prior to notice, the Company can call for mandatory conversion of the Series A Convertible Preferred Shares.
In the case of a change of control that is pre-approved by the Company's Board of Directors, holders of Series A Convertible Preferred Shares have the option to (i) demand that the Company redeem the Series A Convertible Preferred Shares at (a) $26.63 per Series A Convertible Preferred Share from the date of issuance until October 13, 2021, (b) $25.81 per Series A Convertible Preferred Share from October 13, 2021 until October 13, 2022 and (c) $25.00 after October 13, 2022, or (ii) continue to hold the Series A Convertible Preferred Shares. Upon a change of control, the holders also have the option to convert some or all of the Series A Convertible Preferred Shares, together with any accrued or unpaid dividends, into shares of common stock at the conversion rate. Change of Control means that (i) Mr. Valentios Valentis and his affiliates cease to own at least 20% of the voting securities of the Company, or (ii) a person or group acquires at least 50% voting control of the Company, and in the case of each of either (i) or (ii), neither the Company nor any surviving entity has its common stock listed on a recognized U.S. exchange.
1.9375
The Company concluded on an expected credit loss rate of 0.05% on the total outstanding receivables arising from voyage charters and 2.4% on outstanding receivables from demurrages.
500000
4048000
5517000
4636000
47000
47000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>12. Interest and Finance Costs, net:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accrues for the cost of environmental
and other liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable exposure.
As of December 31, 2020 and as of the date of the issuance of these consolidated financial statements, management is not aware of any
other claims or contingent liabilities, which should be disclosed or for which a provision should be established in the accompanying consolidated
financial statements. The Company is covered for liabilities associated with the individual vessels’ actions to the maximum limits
as provided by Protection and Indemnity (P&I) Clubs, members of the International Group of P&I Clubs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify; text-indent: -24.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amounts in the accompanying consolidated statements
of comprehensive loss are analyzed as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>For the years ended December 31,</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2018</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt">Interest on long-term debt (Note 7)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">3,835</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">5,122</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">4,184</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Interest on promissory note (Note 3)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">213</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">395</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">452</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Long-term debt prepayment fees</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">56</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Amortization and write-off of financing costs</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">386</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">258</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">328</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,490</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>5,775</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt"><b>$</b></font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt"><b>4,964</b></font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
0.1991
0.1615
Pyxis Delta, which was owned by Sixthone Corp. ("Sixthone"), was sold to an unaffiliated third party on January 13, 2020
As at December 31, 2020, Carrying Value of Eighthone Loan and Amended & Restated Promissory Note is $24,000 and $5,000, respectively. Theoretical Fair Value of Eighthone Loan and Amended & Restated Promissory Note is $28,121 and $5,743, respectively.