Globus Maritime Limited
Annual Report 2021

Plain-text annual report

As filed with the Securities and Exchange Commission on April 11, 2022 UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF1934OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report ________________ For the transition period from ___________ to ___________ Commission file number 001-34985 Globus Maritime Limited(Exact name of Registrant as Specified in its Charter) Not Applicable(Translation of Registrant’s name into English) Republic of the Marshall Islands(Jurisdiction of Incorporation or Organization) 128 Vouliagmenis Ave., 3rd Floor, 166 74 Glyfada, Attica, Greece(Address of Principal Executive Offices) Athanasios Feidakis128 Vouliagmenis Avenue, 3rd Floor166 74 Glyfada, Attica, GreeceTel: +30 210 960 8300Facsimile: +30 210 960 8359(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act. Title of each classTrading SymbolName of each exchange on which registered Common Shares, par value $0.004 per shareGLBSNasdaq Capital Market Securities registered or to be registered pursuant to Section 12(g) of the Act. None(Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None(Title of Class) Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report. As of December 31, 2021, there were 20,582,301 of the registrant’s common shares outstanding and 10,300 Series B preferred shares outstanding. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes x No If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934. ¨ Yes x No Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 fromtheir obligations under those Sections. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past90 days. x Yes ¨ No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes ¨ No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and largeaccelerated filer” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ¨Accelerated filer xNon-accelerated filer ¨ Emerging Growth Company ¨ If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to usethe extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨ † The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting StandardsCodification after April 5, 2012. Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control overfinancial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its auditreport. x Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filling: U.S. GAAP ¨International Financial Reporting Standards as issuedby the International Accounting Standards Board xOther ¨ If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. N/A ¨ Item 17 ¨ Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No (APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of1934 subsequent to the distribution of securities under a plan confirmed by a court. N/A ¨ Yes ¨ No TABLE OF CONTENTS CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS3PART I5Item 1. Identity of Directors, Senior Management and Advisers5Item 2. Offer Statistics and Expected Timetable5Item 3. Key Information5Item 4. Information on the Company43Item 4A. Unresolved Staff Comments65Item 5. Operating and Financial Review and Prospects65Item 6. Directors, Senior Management and Employees93Item 7. Major Shareholders and Related Party Transactions98Item 8. Financial Information102Item 9. The Offer and Listing103Item 10. Additional Information103Item 11. Quantitative and Qualitative Disclosures About Market Risk125Item 12. Description of Securities Other than Equity Securities126PART II126Item 13. Defaults, Dividend Arrearages and Delinquencies126Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds126Item 15. Controls and Procedures127Item 16A. Audit Committee Financial Expert128Item 16B. Code of Ethics128Item 16C. Principal Accountant Fees and Services128Item 16D. Exemptions from the Listing Standards for Audit Committees129Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers129Item 16F. Change in Registrant’s Certifying Accountant129Item 16G. Corporate Governance129Item 16H. Mining Safety Disclosure130Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections130PART III130Item 17. Financial Statements130Item 18. Financial Statements130Item 19. Exhibits130 2  Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This annual report on Form 20-F contains forward-looking statements and information within the meaning of U.S. securities laws, and Globus Maritime Limiteddesires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement inconnection with this safe harbor legislation. The “Company,” “Globus,” “Globus Maritime,” “we,” “our” and “us” refer to Globus Maritime Limited and its subsidiaries, unless the context otherwise requires. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations,beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts or that are not present facts or conditions. Forward-lookingstatements and information can generally be identified by the use of forward-looking terminology or words, such as “anticipate,” “approximately,” “believe,”“continue,” “estimate,” “expect,” “forecast,” “intend,” “may,” “ongoing,” “pending,” “perceive,” “plan,” “potential,” “predict,” “project,” “seeks,” “should,” “views”or similar words or phrases or variations thereon, or the negatives of those words or phrases, or statements that events, conditions or results “can,” “will,” “may,”“must,” “would,” “could” or “should” occur or be achieved and similar expressions in connection with any discussion, expectation or projection of future operatingor financial performance, costs, regulations, events or trends. The absence of these words does not necessarily mean that a statement is not forward-looking. Forward-looking statements and information are based on management’s current expectations and assumptions, which are inherently subject to uncertainties, risks and changesin circumstances that are difficult to predict. Without limiting the generality of the foregoing, all statements in this annual report on Form 20-F concerning or relating to estimated and projected earnings,margins, costs, expenses, expenditures, cash flows, growth rates, future financial results and liquidity are forward-looking statements. In addition, we, through oursenior management, from time to time may make forward-looking public statements concerning our expected future operations and performance and otherdevelopments. Such forward-looking statements are necessarily estimates reflecting our best judgment based upon current information and involve a number of risksand uncertainties. Other factors may affect the accuracy of these forward-looking statements and our actual results may differ materially from the results anticipatedin these forward-looking statements. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimatedby us may include, but are not limited to, those factors and conditions described under “Item 3.D. Risk Factors” as well as general conditions in the economy, drybulk industry and capital markets and effects of COVID-19 and world conflicts. We undertake no obligation to revise any forward-looking statement to reflectcircumstances or events after the date of this annual report on Form 20-F or to reflect the occurrence of unanticipated events or new information, other than anyobligation to disclose material information under applicable securities laws. Forward-looking statements appear in a number of places in this annual report on Form20-F including, without limitation, in the sections entitled “Item 5. Operating and Financial Review and Prospects,” “Item 4.A. History and Development of theCompany” and “Item 8.A. Consolidated Statements and Other Financial Information—Dividend Policy.” Terms Used in this Annual Report on Form 20-F References to our common shares are references to Globus Maritime Limited’s registered common shares, par value $0.004 per share, or, as applicable, the ordinaryshares of Globus Maritime Limited prior to our redomiciliation into the Marshall Islands on November 24, 2010. References to our Class B shares are references to Globus Maritime Limited’s registered Class B shares, par value $0.001 per share, none of which are currentlyoutstanding. We refer to both our common shares and Class B shares as our shares. References to our shareholders are references to the holders of our commonshares and Class B shares. References to our Series A Preferred Shares are references to our shares of Series A preferred stock, par value $0.001 per share, none ofwhich were outstanding on December 31, 2020 and 2021 as well as on the date of this annual report on Form 20-F. On July 29, 2010, we effected a 1-4 reverse split of our common shares. On October 20, 2016, we effected a 1-4 reverse stock split which reduced the number ofoutstanding common shares from 10,510,741 to 2,627,674 shares (adjustments were made based on fractional shares). On October 15, 2018, the Company effected a1-10 reverse stock split which reduced the number of outstanding common shares from 32,065,077 to 3,206,495 shares (adjustments were made based on fractionalshares). On October 21, 2020, the Company effected a 1-100 reverse stock split which reduced number of outstanding common shares from 175,675,651 to 1,756,720shares (adjustments were made based on fractional shares). Unless otherwise noted, all historical 3  Table of Contents share numbers and per share amounts in this annual report on Form 20-F have been adjusted to give effect to these reverse splits.Unless otherwise indicated, all references to “dollars” and “$” in this annual report on Form 20-F are to, and amounts are presented in, U.S. dollars. References to ourships, our vessels or out fleet relates to the ships that we own, unless context otherwise requires. Rounding Certain financial information has been rounded, and, as a result, certain totals shown in this annual report on Form 20-F may not equal the arithmetic sum of thefigures that should otherwise aggregate to those totals. 4  Table of Contents PART I Item 1. Identity of Directors, Senior Management and Advisers Not Applicable. Item 2. Offer Statistics and Expected Timetable Not Applicable. Item 3. Key Information A.[Reserved]B. Capitalization and Indebtedness Not Applicable. C. Reasons for the Offer and Use of Proceeds Not Applicable. D. Risk Factors This annual report on Form 20-F contains forward-looking statements and information within the meaning of U.S. securities laws that involve risks anduncertainties. Our actual results may differ materially from the results discussed in the forward-looking statements and information. Factors that may cause such adifference include those discussed below and elsewhere in this annual report on Form 20-F. Some of the following risks relate principally to the industry in which we operate and our business in general. Other risks relate principally to the securities marketand ownership of our common shares. The occurrence of any of the events described in this section could significantly and negatively affect our business, financialcondition, operating results, and ability to pay dividends or the trading price of our common shares, and you may lose all or part of your investment. Summary of Risk Factors Below is a summary of the principal factors that make an investment in our common stock speculative or risky. This summary does not address all of the risks that weface. Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, can be found below under the headings “Risks relatingto Our Industry” and “Company Specific Risk Factors” and should be carefully considered, together with other information in this Annual Report on Form 20-F andour other filings with the Securities and Exchange Commission (the “SEC”), before making an investment decision regarding our common stock. ·The international dry bulk shipping industry is cyclical and volatile.·The dry bulk vessel charter market remains significantly below its high in 2008.·The international shipping industry and dry bulk market are highly competitive. 5  Table of Contents ·Disruptions in global financial markets from terrorist attacks, regional armed conflicts, general political unrest, the emergence of a pandemic or epidemiccrisis and the resulting governmental action could have a material adverse impact on our results of operations, financial condition and cash flows.·The current state of the global financial markets and current economic conditions may adversely impact the dry bulk shipping industry.·We depend on short-term or spot charters in volatile shipping markets.·An over-supply of dry bulk carrier capacity may depress charter rates.·The market values of our vessels have fluctuated, and have from time to time triggered certain financial covenants under our existing and potentially futureloan and credit facilities.·Our industry is subject to complex laws and regulations.·Climate change and greenhouse gas restrictions may be imposed.·We are dependent on our charterers and other counterparties fulfilling their obligations under agreements with us, and their inability or unwillingness tohonor these obligations could significantly reduce our revenues and cash flow.·Capital expenditures and other costs necessary to operate and maintain our vessels may increase.·Seasonal fluctuations in industry demand could affect us.·Our insurance may not be adequate to cover our losses that may result from our operations.·Our vessels are exposed to operational risks.·We may be subject to funding calls by our protection and indemnity clubs, and our clubs may not have enough resources to cover claims made against them.·We may be subject to increased inspection procedures, tighter import and export controls and new security regulations.·Rising fuel prices may adversely affect our profits.·Increases in crew costs may adversely affect our profits.·Maritime claimants could arrest our vessels.·Governments could requisition our vessels during a period of war or emergency.·Compliance with safety and other vessel requirements imposed by classification societies may be costly.·A further economic slowdown or changes in the economic, regulatory and political environment in the Asia Pacific region could reduce dry bulk tradedemand.·Pandemics such as the coronavirus (COVID-19) make it very difficult for us to operate in the short-term and have unpredictable long-term consequences,all of which could decrease the supply of and demand for the raw materials we transport, the rates that we are paid to carry our cargo, and our financialoutlook.·We conduct a substantial amount of business in China. 6  Table of Contents ·Sulphur regulations to reduce air pollution from ships may require retrofitting of vessels and may cause us to incur significant costs.·Environmental, social and governance matters may impact our business and reputation.·Our stock price has been volatile and no assurance can be made that it will not substantially depreciate.·We may issue additional common shares or other equity securities without shareholder approval, which would dilute our existing shareholders’ ownershipinterests and may depress the market price of our common shares.·Future issuances or sales, or the potential for future issuances or sales, of our common shares may cause the trading price of our securities to decline andcould impair our ability to raise capital through subsequent equity offerings.·The market price of our common shares may be volatile, which could result in substantial losses for investors who purchase our shares; and the volatility inthe stock prices of other companies may contribute to volatility in our stock price. ·A possible “short squeeze” due to a sudden increase in demand of our common shares that largely exceeds supply may lead to further price volatility in ourcommon shares.·We may not be able to attract and retain key management personnel and other employees in the shipping industry.·Our loan agreement contains, and we expect that future loan agreements and financing arrangements will contain, restrictive covenants that may limit ourliquidity and corporate activities, which could limit our operational flexibility and have an adverse effect on our financial condition and results ofoperations. In addition, because of the presence of cross-default provisions in our loan agreement and the expectation that such will exist in any future loanagreements and financing arrangements, a default by us under one loan could lead to defaults under multiple loans.·We cannot assure you that we will be able to refinance our existing indebtedness or obtain additional financing.·Our common shares could be delisted from Nasdaq, which could affect their market price and liquidity.·We may be unable to successfully employ our vessels on long-term time charters or take advantage of favorable opportunities involving short-term or spotmarket charter rates.·As we expand our business, we may have difficulty improving our operating and financial systems and recruiting suitable employees and crew for ourvessels.·The smuggling of drugs or other contraband onto our vessels may lead to governmental claims against us.·Labor interruptions could disrupt our business. 7  Table of Contents ·Our charterers may renegotiate or default on their charters.·The aging of our fleet may result in increased operating costs in the future.·We may have difficulty managing our planned growth properly.·Legislative or regulatory changes in Greece may adversely affect our results from operations.·We rely on our information systems to conduct our business.·We expect that a limited number of financial institutions will hold our cash including financial institutions that may be located in Greece.·Purchasing and operating secondhand vessels may result in increased operating costs and reduced fleet utilization.·Our ability to declare and pay dividends to holders of our common shares will depend on a number of factors and will always be subject to the discretion ofour board of directors.·We are a holding company, and we will depend on the ability of our subsidiaries to distribute funds to us in order to satisfy our financial obligations or tomake dividend payments.·Management may be unable to provide reports as to the effectiveness of our internal control over financial reporting or, when applicable, our independentregistered public accounting firm may be unable to provide us with unqualified attestation reports as to the effectiveness of our internal control overfinancial reporting when required.·Unless we set aside reserves or are able to raise or borrow funds for vessel replacement, at the end of a vessel’s useful life our revenues will decline.·We depend upon a few significant customers for a large part of our revenues.·Provisions of our articles of incorporation and bylaws may have anti-takeover effects, which could depress the trading price of our common shares.·We generate revenues from the trading of our vessels in U.S. dollars but incur a portion of our expenses in other currencies.·Increases in interest rates may cause the market price of our shares to decline.·If volatility in the London InterBank Offered Rate, or LIBOR, occurs, or when LIBOR is replaced as the reference rate under our debt obligations, it couldaffect our profitability, earnings and cash flow.·The public market may not continue to be active and liquid enough for our shareholders to resell our common shares in the future.·We may have to pay tax on U.S. source shipping income.·U.S. tax authorities could treat us as a “passive foreign investment company,” which could result in adverse U.S. federal income tax consequences to U.S.shareholders.·We could face penalties under European Union, United States or other economic sanctions.·Our vessels may call on ports subject to economic sanctions or embargoes. 8  Table of Contents ·We are subject to Marshall Islands corporate law, which is not well-developed.·As a Marshall Islands corporation with principal executive offices in Greece, and also having subsidiaries in the Marshall Islands and other offshorejurisdictions such as Malta, our operations may be subject to economic substance requirements.·It may be difficult to serve us with legal process or enforce judgments against us, our directors or our management.·The international nature of our operations may make the outcome of any bankruptcy proceedings difficult to predict.·A cyber-attack could materially disrupt our business. Risks relating to Our Industry The international dry bulk shipping industry is cyclical and volatile. The international seaborne transportation industry is cyclical and has high volatility in charter rates, vessel values and profitability. Fluctuations in charter rates resultfrom changes in the supply and demand for vessel capacity and changes in the supply and demand for energy resources, commodities, semi-finished and finishedconsumer and industrial products internationally carried at sea. Since the early part of 2009, rates have been volatile and low, relative to previous years. In 2019although the rates reduced again at the beginning, they reached a peak during the third quarter, followed by a decreasing trend again. In the beginning of 2020, therates continued to drop and came close to the all-time low, but substantially rebounded in 2020 and continued to increase in 2021, reaching in October 2021 thehighest point since 2008. Currently all our vessels are chartered on short-term time charters or on the spot market, and we are exposed therefore to changes in spotmarket and short-term charter rates for dry bulk vessels and such changes affect our earnings and the value of our dry bulk vessels at any given time. The supply ofand demand for shipping capacity strongly influences freight rates. The factors affecting the supply and demand for vessels are outside of our control, and the nature,timing and degree of changes in industry conditions are unpredictable. Factors that influence demand for vessel capacity include: •port and canal congestion charges; •general dry bulk shipping market conditions, including fluctuations in charter hire rates and vessel values and demand for and production of dry bulkproducts; •global and regional economic and political conditions, including exchange rates, trade deals, conflicts and wars (including the Ukraine conflict), and therate and geographic distributions of economic growth; •environmental and other regulatory developments; •the distance dry bulk cargoes are to be moved by sea; •changes in seaborne and other transportation patterns; and •natural disasters and/or world pandemics such as COVID-19. Factors that influence the supply of vessel capacity include: •the size of the newbuilding orderbook; •the price of steel and vessel equipment; •technological advances in vessel design and capacity; 9  Table of Contents •the number of newbuild deliveries, which among other factors relates to the ability of shipyards to deliver newbuilds by contracted delivery dates andthe ability of purchasers to finance such newbuilds; •the scrapping rate of older vessels; •port and canal congestion; •the number of vessels that are in or out of service, including due to vessel casualties; and •changes in environmental and other regulations that may limit the useful lives of vessels. In addition to the prevailing and anticipated freight rates, factors that affect the rate of newbuilding, scrapping and laying-up include newbuilding prices, secondhandvessel values in relation to scrap prices, costs of bunkers and other operating costs, costs associated with classification society surveys, normal maintenance costs,insurance coverage costs, the efficiency and age profile of the existing dry bulk fleet in the market, and government and industry regulation of maritimetransportation practices, particularly environmental protection laws and regulations. These factors influencing the supply of and demand for shipping capacity areoutside of our control, and we may not be able to correctly assess the nature, timing and degree of changes in industry conditions. We anticipate that the future demand for our dry bulk vessels and charter rates will be dependent upon continued economic growth in the world’s economies, seasonaland regional changes in demand and changes to the capacity of the global dry bulk vessel fleet and the sources and supply of dry bulk cargo to be transported by sea.Adverse economic, political, social or other developments could negatively impact charter rates and therefore have a material adverse effect on our business, resultsof operations and ability to pay dividends. We may also decide that it makes economic sense to lay up one or more vessels. While our vessels are laid up, we will paylay-up costs, but those vessels will not be able to earn any hire. The dry bulk vessel charter market remains significantly below its high in 2008. The revenues, earnings and profitability of companies in our industry are affected by the charter rates that can be obtained in the market, which is volatile and hasexperienced significant declines since its highs in 2008. The Baltic Dry Index, or the BDI, which is published daily by the Baltic Exchange Limited, or the BalticExchange, a London-based membership organization that provides daily shipping market information to the global investing community, is an average of selectedship brokers’ assessments of time charter rates paid by a customer to hire a dry bulk vessel to transport dry bulk cargoes by sea. The BDI has long been viewed as themain benchmark to monitor the movements of the dry bulk vessel charter market and the performance of the entire dry bulk shipping market. The BDI declined froma high of 11,793 in May 2008 to a low of 663 in December 2008, which represents a decline of 94% within a single calendar year. Since 2009, the BDI has remainedfairly depressed compared to historical numbers. The BDI reached a new all-time low of 290 on February 10, 2016. The BDI remained significantly depressed from2008-2018. In 2020, the BDI ranged from a low of 393 on May 14, 2020 to a high of 2,097 on October 6, 2020. In 2021, the BDI rose to a high of 5,650 on October7, 2021 and had a low of 1,303 on February 10, 2021. During calendar year 2022 to date, the BDI has ranged from a high of 2,727 (on March 14, 2022) to a low of1,296 (on January 26, 2022). The decline and volatility in charter rates in the dry bulk market also affects the value of our dry bulk vessels, which follows the trends of dry bulk charter rates, andearnings on our charters, and similarly affects our cash flows, liquidity and compliance with the covenants contained in our loan arrangements. The international shipping industry and dry bulk market are highly competitive. The shipping industry and dry bulk market are capital intensive and highly fragmented with many charterers, owners and operators of vessels and are characterizedby intense competition. Competition arises primarily from other vessel owners, some of whom have substantially greater resources than we do. The trend towardsconsolidation in the industry is creating an increasing number of global enterprises capable of competing in multiple markets, which may result in a greatercompetitive threat to us. Our competitors may be better positioned to devote greater resources to the development, promotion and employment of their businessesthan we are. Competition for the transportation of cargo by sea is intense and depends on customer relationships, operating expertise, professional reputation, price,location, size, age, environmental, social, and governance criteria, condition and the acceptability of the vessel and its operators to the charterers. 10  Table of Contents Competition may increase in some or all of our principal markets, including with the entry of new competitors, who may operate larger fleets through consolidationsor acquisitions and may be able to sustain lower charter rates and offer higher quality vessels than we are able to offer. We may not be able to continue to competesuccessfully or effectively with our competitors and our competitive position may be eroded in the future, which could have an adverse effect on our fleet utilizationand, accordingly, business, financial condition, results of operations and ability to pay dividends. Disruptions in global financial markets from terrorist attacks, regional armed conflicts, general political unrest, the emergence of a pandemic or epidemic crisisand the resulting governmental action could have a material adverse impact on our results of operations, financial condition and cash flows. Terrorist attacks in certain parts of the world and the continuing response of the United States and other countries to these attacks, as well as the threat of futureterrorist attacks, continue to cause uncertainty and volatility in the world financial markets and may affect our business, results of operations and financial condition.The continuing refugee crisis in the European Union, the continuing war in Syria and the presence of terrorist organizations in the Middle East, conflicts, wars andturmoil in Yemen, Iraq, Afghanistan, Iran, and Ukraine, political tension, continuing concerns relating geopolitical events such as the withdrawal of the U.K. from theEuropean Union, or Brexit, concerns regarding the emergence of COVID19, and its spread throughout Asia, Europe, North America and other parts of the world, andother viral outbreaks or conflicts in the Asia Pacific Region such as in the South China Sea, mainland China and North Korea have led to increased volatility inglobal credit and equity markets. These uncertainties could also adversely affect our ability to obtain additional financing on terms acceptable to us or at all. In thepast, political conflicts have also resulted in attacks on vessels, mining of waterways and other efforts to disrupt international shipping, particularly in the ArabianGulf region. These types of attacks have also affected vessels trading in regions such as the Black Sea, South China Sea and the Gulf of Aden off the coast ofSomalia. The IMO’s extraordinary council session held on March 10-11, 2022 addressed the impacts on shipping and seafarers, as a result of the conflict in the BlackSea and the Sea of Azov. The IMO called for the need to preserve the integrity of maritime supply chains and the safety and welfare of seafarers and any spillovereffects of the military action on global shipping, logistics and supply chains, in particular the impacts on the delivery of commodities and food to developing nationsand the impacts on energy supplies. Any of these occurrences could have a material adverse impact on our operating results, revenues and costs. In Europe, large sovereign debts and fiscal deficits, low growth prospects and high unemployment rates in a number of countries have contributed to the rise ofEuroskeptic parties, which would like their countries to leave the Euro. Brexit further increases the risk of additional trade protectionism. Brexit, or similar events inother jurisdictions, could continue to impact global markets, including foreign exchange and securities markets; any resulting changes in currency exchange rates,tariffs, treaties and other regulatory matters could in turn adversely impact our business, cash flows and operations. The conflict between Russia and Ukraine, which commenced in February 2022, has disrupted supply chains and caused instability and significant volatility in theglobal economy. Much uncertainty remains regarding the global impact of the conflict in Ukraine, and it is possible that such instability, uncertainty and resultingvolatility could significantly increase our costs and adversely affect our business, including our ability to secure charters and financing on attractive terms, and as aresult, adversely affect our business, financial condition, results of operation and cash flows. 11  Table of Contents As a result of the conflict between Russia and Ukraine, Switzerland, the United States, the European Union, the United Kingdom and others have announcedunprecedented levels of sanctions and other measures against Russia and certain Russian entities and nationals. Such sanctions against Russia may adversely affectour business, financial condition, results of operation and cash flows. For example, apart from the immediate commercial disruptions caused in the conflict zone,escalating tensions and fears of potential shortages in the supply of Russian crude have caused the price of oil to trade above $100 per barrel in March 2022. Theongoing conflict could result in the imposition of further economic sanctions against Russia, with uncertain impacts on the dry bulk market and the world economy.While we do not have any Ukrainian or Russian crew, and our vessels currently do not sail in the Black Sea, it is possible that the conflict in Ukraine, including anyincreased shipping costs, disruptions of global shipping routes, any impact on the global supply chain and any impact on current or potential customers caused by theevents in Russia and Ukraine, could adversely affect our operations or financial performance. Due to the recent nature of these activities, the full impact on ourbusiness is not yet known. Further, as a result of Greece’s sovereign debt levels (which remain high by historical standards) and the influx of refugees from Syria and other areas, the operationsof our Manager located in Greece may be subjected to new regulations and potential shift in government policies that may require us to incur new or additionalcompliance or other administrative costs and may require the payment of new taxes or other fees. We also face the risk that strikes, work stoppages, civil unrest andviolence within Greece could disrupt the shoreside operations of our Manager located in Greece. To date, we are fortunate that these risks have not materialized in our operations. In addition, global financial markets and economic conditions have been severely disrupted and volatile in recent years and remain subject to significantvulnerabilities, such as the deterioration of fiscal balances and the rapid accumulation of public debt, continued deleveraging in the banking sector and a limitedsupply of credit. Credit markets as well as the debt and equity capital markets were exceedingly distressed during 2008 and 2009 and have been volatile since thattime. The resulting uncertainty and volatility in the global financial markets may accordingly affect our business, results of operations and financial condition. Theseuncertainties, as well as future hostilities or other political instability in regions where our vessels trade, could also affect trade volumes and patterns and adverselyaffect our operations, and otherwise have a material adverse effect on our business, results of operations and financial condition, as well as our cash flows and cashavailable for distributions to our shareholders. Specifically, these issues, along with the re-pricing of credit risk and the difficulties currently experienced by financial institutions, have made, and will likelycontinue to make it difficult to obtain financing. As a result of the disruptions in the credit markets and higher capital requirements, many lenders have increasedmargins on lending rates, enacted tighter lending standards, required more restrictive terms (including higher collateral ratios for advances, shorter maturities andsmaller loan amounts), or have refused to refinance existing debt at all. Furthermore, certain banks that have historically been significant lenders to the shippingindustry have reduced or ceased lending activities in the shipping industry. Additional tightening of capital requirements and the resulting policies adopted bylenders, could further reduce lending activities. We may experience difficulties obtaining financing commitments or be unable to fully draw on the capacity under ourcommitted term loans in the future if our lenders are unwilling to extend financing to us or unable to meet their funding obligations due to their own liquidity, capitalor solvency issues. We cannot be certain that financing will be available on acceptable terms or at all. If financing is not available when needed, or is available onlyon unfavorable terms, we may be unable to meet our future obligations as they come due. Our failure to obtain such funds could have a material adverse effect on ourbusiness, results of operations and financial condition, as well as our cash flows, including cash available for distributions to our shareholders. In the absence ofavailable financing, we also may be unable to take advantage of business opportunities or respond to competitive pressures. 12  Table of Contents The current state of the global financial markets and current economic conditions may adversely impact the dry bulk shipping industry. Global financial markets and economic conditions have been, and continue to be, volatile. Recently, operating businesses in the global economy have facedtightening credit, weakening demand for goods and services, deteriorating international liquidity conditions, and declining markets. There has been a general declinein the willingness by banks and other financial institutions to extend credit, particularly in the shipping industry, due to the historically volatile asset values of vessels.As the shipping industry is highly dependent on the availability of credit to finance and expand operations, it has been negatively affected by this decline. Also, as a result of concerns about the stability of financial markets generally and the solvency of counterparties specifically, the cost of obtaining money from thecredit markets has increased as many lenders have increased interest rates, enacted tighter lending standards, refused to refinance existing debt at all or on termssimilar to current debt and reduced, and in some cases ceased, to provide funding to borrowers. Due to these factors, we cannot be certain that financing will beavailable if needed and to the extent required, on acceptable terms. If financing is not available when needed, or is available only on unfavorable terms, we may beunable to meet our obligations as they come due or we may be unable to enhance our existing business, complete additional vessel acquisitions or otherwise takeadvantage of business opportunities as they arise. If the current global economic environment persists or worsens, we may be negatively affected in the following ways: ·we may not be able to employ our vessels at charter rates as favorable to us as historical rates or operate our vessels profitably; and ·the market value of our vessels could decrease, which may cause us to recognize losses if any of our vessels are sold. In addition, lower demand for dry bulk cargoes as well as diminished trade credit available for the delivery of such cargoes previously led to decreased demand fordry bulk carriers, creating downward pressure on charter rates and vessel values, and this could happen again in the future. The relatively weak global economicconditions have and may continue to have a number of adverse consequences for dry bulk and other shipping sectors, including, among other things: ·low charter rates, particularly for vessels employed on short-term time charters or in the spot market; ·decreases in the market value of dry bulk vessels and limited secondhand market for the sale of vessels; ·limited financing for vessels; ·widespread loan covenant defaults; and ·declaration of bankruptcy by certain vessel operators, vessel owners, shipyards and charterers. The occurrence of any of the foregoing could have a material adverse effect on our business, results of operations, cash flows and financial condition. We may alsodecide that it makes economic sense to lay up one or more vessels. While our vessels are laid up, we will pay lay-up costs, but those vessels will not be able to earnany hire. We depend on short-term or spot charters in volatile shipping markets. We currently charter all nine vessels we own on the short-term charter market. The short-term or spot charter market is highly competitive and short-term or spotcharter rates may fluctuate significantly based upon available charters and the supply of and demand for seaborne shipping capacity. While our focus on the short-term or spot market may enable us to benefit if industry conditions strengthen, we must consistently procure short-term or spot charter business. Conversely, suchdependence makes us vulnerable to declining market rates for short-term or spot charters and to the off-hire periods including ballast passages. Rates within the short-term or spot charter market are subject to volatile fluctuations while longer-term time charters provide income at pre-determined rates over more extended periods oftime. There can be no assurance that we will be successful in keeping our vessels fully employed in these short-term markets or that future short-term or spot rateswill be sufficient to enable the vessels to be operated profitably. At current short-term or spot charter rates, we don’t believe that we will be operating profitably. Asignificant decrease in charter rates would affect value and further adversely affect our profitability, cash flows and ability to pay dividends. We cannot giveassurances that future available short-term or spot charters will enable us to operate our vessels profitably. We may also decide that it makes economic sense to lay up one or more vessels. While our vessels are laid up, we will pay lay-up costs, but those vessels will not beable to earn any hire. 13  Table of Contents An over-supply of dry bulk carrier capacity may depress charter rates. An oversupply of dry bulk vessel capacity, particularly during a period of economic recession, may result in a reduction of charter hire rates. If we cannot enter intocharters on acceptable terms, we may have to secure charters on the short-term or spot market, where charter rates are more volatile and revenues are, therefore, lesspredictable, or we may not be able to charter our vessels at all. In addition, a material increase in the net supply of dry bulk vessel capacity without correspondinggrowth in dry bulk vessel demand could have a material adverse effect on our fleet utilization (including ballast days) and our charter rates generally, and could,accordingly, materially adversely affect our business, financial condition, results of operations and ability to pay dividends. Clarkson’s projects that the supply of drybulk vessels, as measured in cargo-carrying capacity, will increase 4.7% from 2021-2023. An uptick in charter rates generally discourages scrapping older vessels,but recent regulatory actions have increased the economic incentive to scrap certain older vessels. Accordingly, it remains to be seen in 2022 whether the number ofworldwide dry bulk carrying capacity, net of scrapped vessels, will increase. We may also decide that it makes economic sense to lay up one or more vessels. While our vessels are laid up, we will pay lay-up costs, but those vessels will not beable to earn any hire. The market values of our vessels have fluctuated, and have from time to time triggered certain financial covenants under our existing and potentially future loanand credit facilities. The market value of dry bulk vessels has generally experienced high volatility. The market prices for secondhand and newbuilding dry bulk vessels in the recent pasthave declined from historically high levels to low levels within a short period of time. In particular, as of March 31, 2020, the Company concluded that therecoverable amounts of the vessels were lower than their carrying amounts and recognized an impairment loss of approximately $4.6 million. However, the marketvalue of our vessels increased in 2021 and we did not recognize any impairment loss on our vessels in 2021. The market value of our vessels may increase anddecrease depending on a number of factors including: Øprevailing level of charter rates; Øage of vessels; Øthe environmental friendliness of our vessels; Øgeneral economic and market conditions affecting the shipping industry, including relating to COVID-19 and the Ukraine conflict and related sanctions; Øcompetition from other shipping companies; Øconfigurations, sizes and ages of vessels; Øsupply and demand for vessels; Øother modes of transportation; Øcost of newbuildings; Øgovernmental or other regulations; and Øtechnological advances. Our loan agreement with CIT Bank N.A., which we refer to as our CIT Loan Facility, is secured by mortgages on six of our vessels, and requires us to maintainspecified collateral coverage ratios and to satisfy financial covenants, including requirements based on the market value of our vessels and our liquidity. Our previousloan facilities had similar requirements, and we expect any future loan agreements to have similar collateral requirements and provisions. Since the middle of 2008through part of 2021, the prevailing conditions in the dry bulk charter market coupled with the general difficulty in obtaining financing for vessel purchases led to adecline in the market values of our vessels, which have increased since that time. However, we cannot predict when and if vessel values will again start to decline. As of December 31, 2021, we satisfied the covenants included in our CIT Loan Facility. For a more detailed discussion see Item 5.B Liquidity and Capital Resources—Indebtedness and Note 11 in the Consolidated Financial Statements included herewith. 14  Table of Contents Further declines of market values of our vessels may affect our ability to comply with various covenants and could also limit the amount of funds we are permitted toborrow under our current or future loan arrangements. If we breach the financial and other covenants under the CIT Loan Facility, our lenders could accelerate ourindebtedness and foreclose on vessels in our fleet, which would significantly impair our ability to continue to conduct our business. If our indebtedness wereaccelerated in full or in part, it would be very difficult in the current financing environment for us to refinance our debt or obtain additional financing and we couldlose our vessels if our lenders foreclose upon their liens, which would adversely affect our business, financial condition, ability to continue our business and paydividends. For a more detailed discussion on our loan covenants and cross-default provisions, see “Item 5.B Liquidity and Capital Resources—Indebtedness.” If we sell any vessel at a time when vessel prices have fallen and before we have recorded an impairment adjustment to our consolidated financial statements, the saleprice may be agreed at a value lower than the vessel’s depreciated book value as in our consolidated financial statements at that time, resulting in a loss and arespective reduction in earnings. If the market values of our vessels decrease, such decrease and its effects could have a material adverse effect on our business,financial condition, results of operations and ability to pay dividends. If a determination is made that a vessel’s future useful life is limited or its future earnings capacity is reduced, it could result in an impairment of its value on ourconsolidated financial statements that would result in a charge against our earnings and the reduction of our stockholders’ equity. These impairment costs could bevery substantial. Our industry is subject to complex laws and regulations. Our operations are subject to numerous laws and regulations in the form of international conventions and treaties, national, state and local laws and national andinternational regulations in force in the jurisdictions in which our vessels operate or are registered, which can significantly affect the ownership and operation of ourvessels. These requirements include but are not limited to: U.S. Oil Pollution Act 1990, as amended, which we refer to as OPA; International Convention for theSafety of Life at Sea, 1974, as amended, which we refer to as SOLAS; International Convention on Load Lines, 1966; International Convention for the Prevention ofPollution from Ships, 1973, as amended by the 1978 Protocol, which we refer to as MARPOL; International Convention on Civil Liability for Bunker Oil PollutionDamage, 2001, which we refer to as the Bunker Convention; International Convention on Liability and Compensation for Damage in Connection with the Carriage ofHazardous and Noxious Substances by Sea, 1996, as superseded by the 2010 Protocol, which we refer to as the HNS Convention; International Convention on CivilLiability for Oil Pollution Damage of 1969, as amended by the 1992 Protocol and further amended in 2000, which we refer to as the CLC; International Conventionon the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971, as amended, which we refer to as the Fund Convention; and MarineTransportation Security Act of 2002, which we refer to as the MTSA. Government regulation of vessels, particularly in the area of environmental requirements, can be expected to become more stringent in the future and could require usto incur significant capital expenditures on our vessels to keep them in compliance, or even to scrap or sell certain vessels altogether. Compliance with such laws,regulations and standards, where applicable, may require installation of costly equipment or operational changes and increased management costs and may affect theresale value or useful lives of our vessels. We may also incur additional costs in order to comply with other existing and future regulatory obligations, including, butnot limited to, costs relating to air emissions, the management of ballast water, recycling of vessels, maintenance and inspection, elimination of tin-based paint,development and implementation of safety and emergency procedures and insurance coverage or other financial assurance of our ability to address pollutionincidents. For instance, the International Maritime Organization (“IMO”) global 0.5% sulphur cap on marine fuels came into force on January 1, 2020, as stipulatedin 2008 amendments to Annex VI to the International Convention for the Prevention of Pollution from ships (“MARPOL”). Our vessels require pricier low-sulphurfuel, which may reduce the amount charterers are willing to pay to charter our vessels. These and other costs could have a material adverse effect on our business,results of operations, cash flows and financial condition and our ability to pay dividends. These requirements can also affect the resale prices or useful lives of our vessels or require reductions in capacity, vessel modifications or operational changes orrestrictions. Failure to comply with these requirements could lead to decreased availability of or more costly insurance coverage for environmental matters or resultin the denial of access to certain jurisdictional waters or ports, or detention in certain ports. Under local, national and foreign laws, as well as international treaties andconventions, we could incur material liabilities, including cleanup obligations and claims for impairment of the environment, personal injury and property damages inthe event that there is a release of petroleum or other hazardous materials from our vessels or otherwise in connection with our operations. Violations of, or liabilitiesunder, environmental regulations can result in substantial penalties, fines and other sanctions, including, in certain instances, seizure or detention of our vessels.Events of this nature would have a material adverse effect on our business, financial condition and results of operations. 15  Table of Contents The operation of our vessels is affected by the requirements set forth in the International Management Code for the Safe Operation of Ships and for PollutionPrevention, or ISM Code. The ISM Code requires the party with operational control of the vessel to develop, implement and maintain an extensive “SafetyManagement System” that includes, among other things, the adoption of a safety and environmental protection policy setting forth instructions and procedures forsafe vessel operation and protection of the environment and describing procedures for dealing with emergencies. Further details in relation to the ISM Code are setout below in the section headed “Environmental and Other Regulations”. The failure of a shipowner or bareboat charterer to comply with the ISM Code may subjectit to increased liability, and, if the implementing legislation so provides, to criminal sanctions, may invalidate or result in the loss of existing insurance or decreaseavailable insurance coverage for the affected vessels and may result in a denial of access to, or detention in, certain ports. In addition, if we fail to maintain ISM Codecertification for our vessels, we may also breach covenants in our CIT Loan Facility that require that our vessels be ISM-Code certified. If we breach such covenantsdue to failure to maintain ISM Code certification and are unable to remedy the relevant breach, our lender could accelerate our indebtedness and foreclose on thevessels in our fleet securing the CIT Loan Facility. As of the date of this annual report on Form 20-F, each of our vessels is ISM Code-certified. Climate change and greenhouse gas restrictions may be imposed.Due to concern over the risk of climate change, a number of countries and the IMO have adopted, or are considering the adoption of, regulatory frameworks toreduce greenhouse gas emissions. These regulatory measures may include, among others, adoption of cap and trade regimes, carbon taxes, increased efficiencystandards and incentives or mandates for renewable energy. For instance, the IMO imposed a global 0.5% sulphur cap on marine fuels which came into force onJanuary 1, 2020. Our vessels do not have scrubbers—air filters that remove sulphur, once burned, from the exhaust emitted by lower-cost, high-sulphur fuel, whichthereby allow ships to burn lower-cost, high-sulphur fuel despite the IMO’s cap on sulphur in marine fuels—and now require pricier low-sulphur fuel, which mayreduce the amount charterers are willing to pay to charter our vessels. In addition, charterers may focus on how environmentally friendly our vessels are, generally,and our rates may be adjusted downwards accordingly. We discuss this further in this annual report on Form 20-F. See “Business Overview—Environmental and Other Regulations—Regulations to Prevent Pollution fromShips”. In addition, although the emissions of greenhouse gases from international shipping currently are not subject to the Kyoto Protocol to the United Nations FrameworkConvention on Climate Change (this task was delegated under the Kyoto Protocol to the IMO for action), which required adopting countries to implement nationalprograms to reduce emissions of certain gases, a new treaty may be adopted in the future that includes restrictions on shipping emissions. Compliance with changesin laws, regulations and obligations relating to climate change could increase our costs related to operating and maintaining our vessels and require us to install newemission controls, acquire allowances or pay taxes related to our greenhouse gas emissions, or administer and manage a greenhouse gas emissions program. Revenuegeneration and strategic growth opportunities may also be adversely affected.We are dependent on our charterers and other counterparties fulfilling their obligations under agreements with us, and their inability or unwillingness to honorthese obligations could significantly reduce our revenues and cash flow.Payments to us by our charterers under time charters are and will be our sole source of operating cash flow. Weaknesses in demand for shipping services, increasedoperating costs due to changes in environmental or other regulations and the oversupply of large vessels as well as the oversupply of smaller size vessels due to acascading effect would place certain of our customers under financial pressure. Any declines in demand could result in worsening financial challenges to ourcustomers and may increase the likelihood of one or more of our customers being unable or unwilling to pay us contracted charter rates or going bankrupt. If we lose a time charter because the charterer is unable to pay us or for any other reason, we may be unable to re-deploy the related vessel on similarly favorableterms or at all. Also, we will not receive any revenues from such a vessel while it is un-chartered, but we will be required to pay expenses necessary to maintain andinsure the vessel and service any indebtedness on it. 16  Table of Contents The combination of any surplus of dry bulk vessel capacity, the expected entry into service of new technologically advanced ships, and the expected increase in thesize of the world dry bulk fleet over the next few years may make it difficult to secure substitute employment for any of our vessels if our counterparties fail toperform their obligations under the currently arranged time charters, and any new charter arrangements we are able to secure may be at lower rates. Furthermore, thesurplus of dry bulk vessels available at lower charter rates could negatively affect our charterers’ willingness to perform their obligations under our time charters,particularly if the charter rates in such time charters are significantly above the prevailing market rates. Accordingly, we may have to grant concessions to ourcharterers in the form of lower charter rates for the remaining duration of the relevant charter or part thereof, or to agree to re-charter vessels coming off charter atreduced rates compared to the charter then ended. Because we enter into short-term and medium-term time charters from time-to-time, we may need to re-chartervessels coming off charter more frequently than some of our competitors, which may have a material adverse effect on business, results of operations and financialcondition, as well as our cash flows, including cash available for distributions to our shareholders. The loss of any of our charterers, time charters or vessels, or a decline in payments under our time charters, could have a material adverse effect on our business,results of operations and financial condition, as well as our cash flows, including cash available for distributions to our shareholders. In addition to charter parties, we may, among other things, enter into contracts for the sale or purchase of secondhand dry bulk vessels or, in the future, shipbuildingcontracts for newbuildings, provide performance guarantees relating to shipbuilding contracts to sale and purchase contracts or to charters, enter into credit facilitiesor other financing arrangements, accept commitment letters from banks, or enter into insurance contracts and interest or exchange rate swaps or enter into jointventures. Such agreements expose us to counterparty credit risk. The ability and willingness of each of our counterparties to perform its obligations under a contractwith us will depend upon a number of factors that are beyond our control and may include, among other things, general economic conditions, the state of the capitalmarkets, the condition of the ocean-going dry bulk shipping industry and charter hire rates. Should a counterparty fail to honor its obligations under agreements withus, we could sustain significant losses, which in turn could have a material adverse effect on our business, results of operations and financial condition, as well as ourcash flows, including cash available for distributions to our shareholders. Capital expenditures and other costs necessary to operate and maintain our vessels may increase. Changes in safety or other equipment standards, as well as compliance with standards imposed by maritime self-regulatory organizations and customer requirementsor competition, may require us to make additional expenditures. In order to satisfy these requirements, we may, from time to time, be required to take our vessels outof service for extended periods of time, with corresponding losses of revenues. In the future, market conditions may not justify these expenditures or enable us tooperate some or all of our vessels profitably during the remainder of their economic lives. Seasonal fluctuations in industry demand could affect us. We operate our vessels in markets that have historically exhibited seasonal variations in demand and, as a result, in charter rates. This seasonality may result inquarter-to-quarter volatility in our results of operations, which could affect the amount of dividends, if any, that we pay to our shareholders. The market for marinedry bulk transportation services is typically stronger in the fall and winter months in anticipation of increased consumption of coal and other raw materials in thenorthern hemisphere during the winter months. In addition, unpredictable weather patterns in these months tend to disrupt vessel scheduling and supplies of certaincommodities. This seasonality could have a material adverse effect on our business, financial condition and results of operations. We may also decide that it makes economic sense to lay up one or more vessels. While our vessels are laid up, we will pay lay-up costs, but those vessels will not beable to earn any hire. Our insurance may not be adequate to cover our losses that may result from our operations. We carry insurance to protect us against most of the accident-related risks involved in the conduct of our business, including marine hull and machinery insurance,war risk insurance, protection and indemnity insurance, which includes pollution risks, crew insurance and war risk insurance. However, we may not be adequatelyinsured to cover losses from our operational risks, which could have a material adverse effect on us. Additionally, our insurers may refuse to pay particular claimsand our insurance may be voidable by the insurers if we take, or fail to take, certain action, such as failing to maintain certification of our vessels with applicablemaritime regulatory organizations. Any significant uninsured or underinsured loss or liability could have a material adverse effect on our business, results ofoperations, cash flows and financial condition and our ability to pay dividends. It may also result in protracted legal litigation. In addition, we may not be able toobtain adequate insurance coverage at reasonable rates in the future during adverse insurance market conditions. We maintain, for each of our vessels, pollutionliability coverage insurance for $1.0 billion per event. If damages from a catastrophic spill exceed our insurance coverage, it would have a materially adverse effecton our business, results of operations and financial condition and our ability to pay dividends to our shareholders. 17  Table of Contents Moreover, insurers have over the last few years increased premiums and reduced or restricted coverage for losses caused by terrorist acts generally. In addition, we do not currently carry and may not carry loss-of-hire insurance, which covers the loss of revenue during extended vessel off-hire periods, such asthose that occur during an unscheduled drydocking due to damage to the vessel from accidents. Accordingly, any loss of a vessel or extended vessel off-hire, due toan accident or otherwise, could have a material adverse effect on our business, results of operations, financial condition and our ability to pay dividends. Our vessels are exposed to operational risks. The operation of any vessel includes risks such as weather conditions, mechanical failure, collision, fire, contact with floating objects, cargo or property loss ordamage and business interruption due to political circumstances in countries, piracy, terrorist attacks, armed hostilities and labor strikes. Such occurrences couldresult in death or injury to persons, loss, damage or destruction of property or environmental damage, delays in the delivery of cargo, loss of revenues from ortermination of charter contracts, governmental fines, penalties or restrictions on conducting business, higher insurance rates and damage to our reputation andcustomer relationships generally. In the past, political conflicts have also resulted in attacks on vessels, mining of waterways and other efforts to disrupt international shipping, particularly in theArabian Gulf region. Acts of terrorism and piracy have also affected vessels trading in regions such as the South China Sea, the Gulf of Aden and parts of the IndianOcean and West Africa. Continuing conflicts and recent developments in the Middle East and North Africa, including Egypt, Syria, Iran, Iraq and Libya, the recentconflict in Ukraine, and the presence of United States and other armed forces in the Middle East and Asia could produce armed conflict or be the target of terroristattacks, and lead to civil disturbance and uncertainty in financial markets. If these attacks and other disruptions result in areas where our vessels are deployed beingcharacterized by insurers as “war risk” zones or Joint War Committee “war, strikes, terrorism and related perils” listed areas, premiums payable for such coveragecould increase significantly and such insurance coverage may be more difficult or impossible to obtain. In addition, we face the risk of a marine disaster, which couldinclude an oil spill and other environmental damage. Although our vessels carry a relatively small amount of oil used for fuel (“bunkers”), a spill of oil from one ofour vessels or losses as a result of fire or explosion could be catastrophic under certain circumstances. The operation of certain vessel types, such as dry bulk vessels, also carry certain unique risks. With a dry bulk vessel, the cargo itself and its interaction with thevessel can be a risk factor. By their nature, dry bulk cargoes are often heavy, dense, easily shifted and react badly to water exposure. In addition, dry bulk vessels areoften subjected to battering during unloading operations with grabs, jackhammers (to pry encrusted cargoes out of the hold) and small bulldozers. This may causedamage to the vessel. Vessels damaged due to treatment during unloading procedures may be more susceptible to breach while at sea. Hull breaches in dry bulkvessels may lead to the flooding of the vessels holds. If a dry bulk vessel suffers flooding in its forward holds, the bulk cargo may become so dense and waterloggedthat its pressure may buckle the vessels bulkheads leading to the loss of a vessel. If we are unable to adequately maintain our vessels we may be unable to preventthese events. Any of these circumstances or events could negatively impact our business, financial condition, results of operations and ability to pay dividends. Inaddition, the loss of any of our vessels could harm our reputation as a safe and reliable vessel owner and operator. We may not be adequately insured against all risks, and our insurers may not pay particular claims. With respect to war risks insurance, which we usually obtain forcertain of our vessels making port calls in designated war zone areas, such insurance may not be obtained prior to one of our vessels entering into an actual war zone,which could result in that vessel not being insured. Even if our insurance coverage is adequate to cover our losses, we may not be able to timely obtain a replacementvessel in the event of a loss. Under the terms of the CIT Loan Facility, we will be subject to restrictions on the use of any proceeds we may receive from claims underour insurance policies. Furthermore, in the future, we may not be able to maintain or obtain adequate insurance coverage at reasonable rates for our fleet. We mayalso be subject to calls, or premiums, in amounts based not only on our own claim records but also the claim records of all other members of the protection andindemnity associations through which we receive indemnity insurance coverage for tort liability. Our insurance policies also contain deductibles, limitations andexclusions which may increase our costs in the event of a claim or decrease any recovery in the event of a loss. If the damages from a catastrophic oil spill or othermarine disaster exceeded our insurance coverage, the payment of those damages could have a material adverse effect on our business and could possibly result in ourinsolvency. 18  Table of Contents In general, we do not carry loss of hire insurance. Occasionally, we may decide to carry loss of hire insurance when our vessels are trading in areas where a history ofpiracy has been reported. Loss of hire insurance covers the loss of revenue during extended vessel off-hire periods, such as those that could occur during anunscheduled drydocking, unscheduled repairs due to damage to the vessel, or as a result of acts of piracy. Accordingly, any loss of a vessel or any extended period ofvessel off- hire, due to an incident, accident or otherwise, could have a material adverse effect on our business, financial condition and results of operations. We may also decide that it makes economic sense to lay up one or more vessels. While our vessels are laid up, we will pay lay-up costs, but those vessels will not beable to earn any hire. We may be subject to funding calls by our protection and indemnity clubs, and our clubs may not have enough resources to cover claims made against them. We are indemnified for legal liabilities incurred while operating our vessels through membership of protection and indemnity, or P&I, associations, otherwise knownas P&I clubs. P&I clubs are mutual insurance clubs whose members must contribute to cover losses sustained by other club members. The objective of a P&I club isto provide mutual insurance based on the aggregate tonnage of a member’s vessels entered into the club. Claims are paid through the aggregate premiums of allmembers of the club, although members remain subject to calls for additional funds if the aggregate premiums are insufficient to cover claims submitted to the club.Claims submitted to the club may include those incurred by members of the club, as well as claims submitted by other P&I clubs with which our club has entered intointerclub agreements. We cannot assure you that the P&I club to which we belong will remain viable or that we will not become subject to additional funding calls,which could adversely affect us. We may be subject to increased inspection procedures, tighter import and export controls and new security regulations. International shipping is subject to various security and customs inspection and related procedures in countries of origin and destination and trans-shipment points.Inspection procedures can result in the seizure of the cargo and contents of our vessels, delays in the loading, offloading or delivery and the levying of customsduties, fines or other penalties against us. It is possible that changes to inspection procedures could impose additional financial and legal obligations on us.Furthermore, changes to inspection procedures could also impose additional costs and obligations on our customers and may, in certain cases, render the shipment ofcertain types of cargo impractical. Any such changes or developments may have a material adverse effect on our business, financial condition, results of operationsand our ability to pay dividends. Rising fuel prices may adversely affect our profits. Fuel is a significant, if not the largest, expense if vessels are under voyage charter or if consumed during ballast days. Moreover, the cost of fuel will affect the profitwe can earn on the short-term or spot market. Upon redelivery of vessels at the end of a time charter, we may be obliged to repurchase the fuel on board at prevailingmarket prices, which could be materially higher than fuel prices at the inception of the time charter period. As a result, an increase in the price of fuel may adverselyaffect our profitability. The price and supply of fuel is unpredictable and fluctuates based on events outside our control, including geopolitical events, supply anddemand for oil and gas, actions by the Organization of the Petroleum Exporting Countries and other oil and gas producers, war and unrest in oil producing countriesand regions, regional production patterns and environmental concerns. Further, fuel may become much more expensive in the future, which may reduce theprofitability and competitiveness of our business versus other forms of transportation, such as truck or rail. A global 0.5% sulphur cap on marine fuels came into force on January 1, 2020. Because we do not have scrubbers on our vessels, our vessels require pricier low-sulphur fuel, which may reduce the amount charterers are willing to pay to charter our vessels. This could have a material adverse effect on our business, results ofoperations, cash flows and financial condition and our ability to pay dividends. 19  Table of Contents Increases in crew costs may adversely affect our profits. Crew costs are a significant expense for us under our charters. There is a limited supply of well-qualified crew. We generally bear crewing costs under our charters.Increases in crew costs may adversely affect our profitability. In addition, labor disputes or unrest, including work stoppages, strikes and/or work disruptions orincreases imposed by collective bargaining agreements covering the majority of our officers on board our vessels could result in higher personnel costs andsignificantly affect our financial performance. Furthermore, while we do not have any Ukrainian or Russian crew and the Company's vessels currently do not sail inthe Black Sea, the extent to which this will impact the Company’s future results of operations and financial condition will depend on future developments, which arehighly uncertain and cannot be predicted. Changes in labor laws and regulations, collective bargaining negotiations and labor disputes, and potential shortage of crewdue to the conflict between Russia and Ukraine, could increase our crew costs and have a material adverse effect on our business, results of operations, cash flows,financial condition and ability to pay dividends. Maritime claimants could arrest our vessels. Crew members, suppliers of goods and services to a vessel, shippers of cargo and other parties may be entitled to a maritime lien against a vessel, or other assets ofthe relevant vessel-owning company, for unsatisfied debts, claims or damages even if we are not at fault, for example, if we pay a supplier for bunkers whosubcontracts the supply and does not pay such subcontractor. In many jurisdictions, a claimant may seek to obtain security for its claim by arresting a vessel throughforeclosure proceedings. The arrest or attachment of one or more of our vessels, could cause us to default on a charter, breach covenants in the CIT Loan Facility,interrupt our cash flow and require us to pay large sums of money to have the arrest or attachment lifted. Please see “Item 5.B. Liquidity and Capital Resources—Indebtedness” for further information. In addition, in some jurisdictions, such as South Africa, under the “sister ship” theory of liability, a claimant may arrest both the vessel which is subject to theclaimant’s maritime lien and any “associated” vessel, which is any vessel owned or controlled by the same owner. Claimants could attempt to assert “sister ship”liability against one vessel in our fleet for claims relating to another of our vessels. Governments could requisition our vessels during a period of war or emergency. A government could requisition one or more of our vessels for title or for hire. Requisition for title occurs when a government takes control of a vessel and becomesthe owner. Requisition for hire occurs when a government takes control of a vessel and effectively becomes the charterer at dictated charter rates. Generally,requisitions occur during a period of war or emergency, although governments may elect to requisition vessels in other circumstances. Even if we would be entitled tocompensation in the event of a requisition of one or more of our vessels, the amount and timing of payment would be uncertain. Government requisition of one ormore of our vessels may negatively impact our business, financial condition, results of operations and ability to pay dividends. Compliance with safety and other vessel requirements imposed by classification societies may be costly. The hull and machinery of every commercial vessel must be certified as safe and seaworthy in accordance with applicable rules and regulations, and accordinglyvessels must undergo regular surveys. All of the vessels that we operate or manage are classed by one of the major classification societies, including Nippon KaijiKyokai (Class NK), DNV GL, Lloyds and Bureau Veritas. Vessels must undergo annual surveys, immediate surveys and special surveys. In lieu of a special survey, avessel’s machinery may be on a continuous survey cycle, under which the machinery would be surveyed over a five-year period. Our vessels are on special surveycycles for hull inspection and continuous survey cycles for machinery inspection. Every vessel is also required to be drydocked every two to three years forinspection of its underwater parts. If any vessel does not maintain its class and/or fails any annual, intermediate or special survey, certain covenants in the CIT LoanFacility or future credit arrangements may be triggered, including as a result of the vessel being unable to trade between ports and being unemployable. Such anoccurrence could have a material adverse impact on our business, financial condition, results of operations and ability to pay dividends. Please see “Item 5.B.Liquidity and Capital Resources—Indebtedness” for further information. 20  Table of Contents A further economic slowdown or changes in the economic, regulatory and political environment in the Asia Pacific region could reduce dry bulk trade demand. A significant number of the port calls made by our vessels involve the transportation of dry bulk products to ports in the Asia Pacific region. As a result, continuedeconomic slowdown in the region or changes in the regulatory environment, and particularly in China or Japan, could have an adverse effect on our business, resultsof operations, cash flows and financial condition. Before the global economic financial crisis that began in 2008, China had one of the world’s fastest growingeconomies as measured by gross domestic product, or GDP, which had a significant impact on shipping demand. The growth rate of China’s GDP continues toremain lower than originally anticipated. In addition, China previously imposed measures to restrain lending, which may further contribute to a slowdown in itseconomic growth. China and other countries in the Asia Pacific region may continue to experience slowed or even negative economic growth in the future. Many of the economic and political reforms adopted by the Chinese government are unprecedented or experimental and may be subject to revision, change orabolition based upon the outcome of such experiments. If the Chinese government does not continue to pursue a policy of economic reform, the level of imports ofexports of dry bulk products to and from China could be adversely affected by changes to these economic reforms by the Chinese government, as well as by changesin political, economic and social conditions or other relevant policies of the Chinese government, such as changes in laws, regulations or restrictions on importingcommodities into the country. Notwithstanding economic reform, the Chinese government may adopt policies that favor domestic shipping companies and mayhinder our ability to compete with them effectively. Moreover, a significant or protracted slowdown in the economies of the United States, the European Union orvarious Asian countries or changes in the regulatory environment may adversely affect economic growth in China and elsewhere. Our business, results of operations,cash flows and financial condition could be materially and adversely affected by an economic downturn or changes in the regulatory environment in any of thesecountries. Pandemics such as the coronavirus (COVID-19) make it very difficult for us to operate in the short-term and have unpredictable long-term consequences, all ofwhich could decrease the supply of and demand for the raw materials we transport, the rates that we are paid to carry our cargo, and our financial outlook. Our business may be adversely affected by the continued outbreak of the COVID-19 virus (and variants that may emerge), which has introduced uncertainty into ouroperational and financial activities and has negatively impacted, and may continue to impact negatively, global economic activity. Average charter rates for dry bulkvessels, as measured by the Baltic Dry Index, have improved significantly since the second quarter of 2020; however, the underlying reasons for this improvement,such as tight supply lines, increased demand for bulk commodities on the back of firmly rebounding industrial activity, increased demand for containerized cargo dueto increased consumption mainly from developed countries, and newbuild construction being put on hold due to the pandemic, could reverse, which could negativelyimpact our business. As the situation is continuously evolving with further waves of infections across many countries worldwide, the development and distribution ofmultiple vaccines, and the emergence of new variants of the COVID-19 virus that may undermine such vaccines, it is difficult to predict the ultimate duration,severity and long-term impact of the pandemic on the industry and us at this time. Furthermore, it is difficult to predict what impact the abatement or continuation ofthe pandemic may have on our business. The duration of scheduled repairs could exceed our estimates, causing our vessels to remain off-hire for longer periods thanplanned or to miss scheduled employment. We may face increased costs operating our vessels due to travel restrictions and quarantine requirements. Possible delaysdue to quarantine of our vessels caused by COVID-19 infection of our crew or other COVID-19-related disruptions may lead to the termination of charters leavingour vessels without employment. It is also possible that the companies that charter our vessels may be materially impacted by the effects of the COVID-19 virusoutbreak and therefore may default on their charters or seek to restructure the terms of their charters (which are legally binding). We have thus far been affected by COVID-19 as follows: ·Our vessels have been subject to quarantine checks upon arriving at certain ports. This has functionally reduced the amount of cargo that we (and ourcompetitors) are able to move because some countries have imposed quarantine checks on arriving vessels, which have caused delays in loading anddelivery of cargoes. ·Due to quarantine restrictions placed on persons and additional procedures using commercial aviation and other forms of public transportation, ourcrew has had difficulty embarking and disembarking on our ships. This has not thus far functionally affected our ability to crew our vessels. We expect that pandemics generally, including the current novel coronavirus pandemic, could affect our business in the following ways, among others: (1)Pandemics generally reduce the demand for goods worldwide without a commensurate corresponding change in the number of vessels worldwide,thereby increasing competition for cargo and decreasing the market price for transporting dry bulk products. 21  Table of Contents (2)Countries could impose quarantine checks and hygiene measures on arriving vessels, which functionally reduce the amount of cargo that we andour competitors are able to move by causing delays in loading and delivery of cargo. (3)The process of buying, selling, and maintaining vessels is made more onerous and time-intensive. For instance, delays may be caused at shipyardsfor newbuildings, drydocks and other works, in vessel inspections and related certifications by class societies, customers or government agencies,as well as delays and shortages or a lack of access to required spare parts and lack of berths or shortages in labor, which may in turn delay anyrepairs to, scheduled or unscheduled maintenance or modifications, or drydocking of, our vessels. (4)We have seen a decrease in productivity, generally, as people—including our office employees and crews, as well as our counterparties—get sickand take time off from work. We are particularly vulnerable to our crew members getting sick, as if even one of our crew members gets sick, localauthorities could require us to detain and quarantine the ship and its crew for an unspecified amount of time, disinfect and fumigate the vessels, ortake similar precautions, which would add costs, decrease our utilization, and substantially disrupt our cargo operations. If a vessel’s entire crewfell seriously ill, we may have substantial difficulty operating its vessel and may necessitate extraordinary external aid. (5)International transportation of personnel could be limited or otherwise disrupted. In particular, our crews generally work on a rotation basis, relyinglargely on international air transport for crew changes plan fulfillment. Any such disruptions could impact the cost of rotating our crew, andpossibly impact our ability to maintain a full crew synthesis onboard all our vessels at any given time. It may also be difficult for our in-housetechnical teams to travel to shipyards to observe vessel maintenance, and we may need to hire local experts, which local experts may vary in skilland are difficult to supervise remotely, to conduct work we ordinarily address in-house. (6)Governments impose new regulations, directives or practices, which we may be obligated to implement at our own expense. (7)Any or all of the foregoing could lead our charterers to try to invoke force majeure clauses. As of the date hereof, however, none of our charterershave invoked a force majeure clause citing the pandemic. (8)Credit tightening or declines in global financial markets, including to the prices of our publicly traded securities and the securities of our peers,could make it more difficult for us to access capital, including to finance our existing debt obligations. Any of these public health threats and related consequences could adversely affect our financial results. It is too early to assess the full long-term impact of the ongoing novel coronavirus pandemic on global markets, and particularly on the shipping industry. We conduct a substantial amount of business in China. The Chinese legal system is based on written statutes and their legal interpretation by the Standing Committee of the National People’s Congress. Prior courtdecisions may be cited for reference but have limited precedential value. Since 1979, the Chinese government has been developing a comprehensive system ofcommercial laws, and considerable progress has been made in introducing laws and regulations dealing with economic matters such as foreign investment, corporateorganization and governance, commerce, taxation and trade. However, because these laws and regulations are relatively new, there is a general lack of internalguidelines or authoritative interpretive guidance and because of the limited number of published cases and their non-binding nature interpretation and enforcement ofthese laws and regulations involve uncertainties. We conduct a substantial portion of our business in China or with Chinese counter-parties. For example, we enterinto charters with Chinese customers, which charters may be subject to new regulations in China. We may, therefore, be required to incur new or additionalcompliance or other administrative costs, and pay new taxes or other fees to the Chinese government. Although the charters we enter into with Chinese counterpartiesare not governed by Chinese law, we may have difficulties enforcing a judgment rendered by an arbitration tribunal or by an English or U.S. court (or other non-Chinese court) in China. 22  Table of Contents In addition, China enacted a tax for non-resident international transportation enterprises engaged in the provision of services to passengers or cargo, among otheritems, in and out of China using their own, chartered or leased vessels, including any stevedore, warehousing and other services connected with the transportation.The law and relevant regulations broaden the range of international transportation companies which may find themselves liable for Chinese enterprise income tax onprofits generated from international transportation services passing through Chinese ports. This tax or similar regulations by China may reduce our operating resultsand may also result in an increase in the cost of goods exported from China and the risks associated with exporting goods from China, as well as a decrease in thequantity of goods to be shipped from or through China, which would have an adverse impact on our charterers’ business, operating results and financial condition andcould thereby affect their ability to make timely charter hire payments to us and to renew and increase the number of their time charters with us. Changes in laws andregulations, including with regards to tax matters, and their implementation by local authorities could affect our vessels that are either chartered to Chinese customersor that call to Chinese ports and could have a material adverse effect on our business, results of operations and financial condition and our ability to pay dividends. The Chinese economy differs from the economies of western countries in such respects as structure, government involvement, level of development, growth rate,capital reinvestment, allocation of resources, bank regulation, currency and monetary policy, rate of inflation and balance of payments position. Although state-owned enterprises still account for a substantial portion of the Chinese industrial output, in general, the Chinese government is reducing the level of direct control thatit exercises over the economy. There is an increasing level of freedom and autonomy in areas such as allocation of resources, production, pricing and managementand a gradual shift in emphasis to a “market economy” and enterprise reform, although it still acts with greater control than a truly free-market economy. Many of theChinese government’s reforms are unprecedented or experimental and may be subject to revision, change or abolition based upon the outcome of such experiments.The level of imports to and exports from China could be adversely affected by the failure to continue market reforms or changes to existing pro-export economicpolicies. The level of imports to and exports from China may also be adversely affected by changes in political, economic and social conditions (including a slowingof economic growth), the coronavirus, or other relevant policies of the Chinese government, such as changes in laws, regulations or export and import restrictions,internal political instability, changes in currency policies, changes in trade policies and territorial or trade disputes. A decrease in the level of imports to and exportsfrom China could adversely affect our business, operating results and financial condition. Sulphur regulations to reduce air pollution from ships may require retrofitting of vessels and may cause us to incur significant costs. January 1, 2020 was the implementation date for vessels to comply with the IMO’s low sulphur fuel oil requirement, which cuts sulphur levels from 3.5% to 0.5%.The interpretation of “fuel oil used on board” includes use in main engine, auxiliary engines and boilers. Shipowners may comply with this regulation by (i) using0.5% sulphur fuels on board, which costs more than higher Sulphur fuel; (ii) installing scrubbers for cleaning of the exhaust gas (which we have not done to any ofour vessels); or (iii) by retrofitting vessels to be powered by liquefied natural gas (which we have not done to any of our vessels), which may not be a viable optiondue to the lack of supply network and high costs involved in this process. Costs of compliance with these regulatory changes may be significant and may have amaterial adverse effect on our future performance, results of operations, cash flows and financial position. It is unclear how the new emissions standard will affect theemployment of our vessels, given that the cost of fuel is borne by our charterers when our vessels are on time charter employment. In particular, it is not known whatthe price differential between high sulphur content fuel and the more expensive low sulphur fuel will be or if low sulphur fuel will be available in the quantitiesneeded at the areas where the vessels are trading. Over time, however, it is possible that ships not retrofitted to comply with the new emissions standard may becomeless competitive (compared with ships equipped with exhaust gas scrubbers that can utilize less expensive high sulphur fuel), may have difficulty findingemployment, may command lower charter hire and/or may need to be scrapped. Environmental, social and governance matters may impact our business and reputation. In addition to the importance of their financial performance, companies are increasingly being judged by their performance on a variety of environmental, social andgovernance matters, or ESG, which are considered to contribute to the long-term sustainability of companies’ performance. A variety of organizations measure the performance of companies on such ESG topics, and the results of these assessments are widely publicized. In addition,investment in funds that specialize in companies that perform well in such assessments are increasingly popular, and major institutional investors have publiclyemphasized the importance of such ESG measures to their investment decisions. Topics taken into account in such assessments include, among others, the company’sefforts and impacts on climate change and human rights, ethics and compliance with law, and the role of the company’s board of directors in supervising varioussustainability issues. 23  Table of Contents We actively manage a broad range of such ESG matters, taking into consideration their expected impact on the sustainability of our business over time, and thepotential impact of our business on society and the environment. However, in light of investors’ increased focus on ESG matters, there can be no certainty that wewill manage such issues successfully, or that we will successfully meet society’s expectations as to our proper role. Any failure or perceived failure by us in thisregard could have a material adverse effect on our reputation and on our business, share price, financial condition, or results of operations, including the sustainabilityof our business over time. On December 31, 2018, EU-flagged vessels became subject to Regulation (EU) No. 1257/2013 of the European Parliament and of the Council of 20 November 2013on ship recycling (the “EU Ship Recycling Regulation” or “ESRR”) and exempt from the Regulation (EC) No. 1013/2006 of the European Parliament and of theCouncil of 14 June 2006 on shipments of waste (the “European Waste Shipment Regulation” or “EWSR”), which had previously governed their disposal andrecycling. The EWSR continues to be applicable to Non-European Union Member State-flagged (“non-EU-flagged”) vessels. Under the ESRR, commercial EU-flagged vessels of 500 gross tonnage and above may be recycled only at shipyards included on the European List of AuthorisedShip Recycling Facilities (the “European List”). The European List presently includes eight facilities in Turkey, but no facilities in the major ship recycling countriesin Asia. The combined capacity of the European List facilities may prove insufficient to absorb the total recycling volume of EU-flagged vessels. This circumstance,taken in tandem with the possible decrease in cash sales, may result in longer wait times for divestment of recyclable vessels as well as downward pressure on thepurchase prices offered by European List shipyards. We currently have one vessel flagged in Malta and in the future may have additional vessels flagged in EUjurisdictions. In addition, the EWSR requires that non-EU-flagged ships departing from European Union ports be recycled only in Organisation for Economic Cooperation andDevelopment (OECD) member countries. In March 2018, the Rotterdam District Court ruled that the sale of four recyclable vessels by third-party Dutch ship ownerSeatrade to cash buyers, who then reflagged and resold the vessels to non-OECD country recycling yards, were effectively indirect sales to non-OECD country yards,in violation of the EWSR. If European Union Member State courts widely adopt this analysis, it may negatively impact revenue from the residual values of ourvessels and we may be subject to a heightened risk of non-compliance, due diligence obligations and costs in instances where we sell older ships to cash buyers. Company Specific Risk Factors Our stock price has been volatile and no assurance can be made that it will not substantially depreciate.Our stock price has been volatile recently. The closing price of our common shares within 2021 has ranged from a peak of $7.46 on February 16, 2021 to a low of$1.98 on December 16, 2021, representing a decrease of 73.5%. We can offer no comfort or assurance that our stock price will stop being volatile or not substantiallydepreciate. Our stock further declined in 2022 and was $1.66 on January 27, 2022. We may continue to incur rapid and substantial increases or decreases in our stock price in the foreseeable future that may not coincide in timing with thedisclosure of news or developments by or affecting us. Accordingly, the market price of our common shares may decline or fluctuate rapidly, regardless of anydevelopments in our business. Overall, there are various factors, many of which are beyond our control, that could negatively affect the market price of our commonshares or result in fluctuations in the price or trading volume of our common shares, which include but are not limited to:• investor reaction to our business strategy;• the sentiment of the significant number of retail investors whom we believe to hold our common shares, in part due to direct access by retail investors tobroadly available trading platforms, and whose investment thesis may be influenced by views expressed on financial trading and other social media sites and onlineforums;• the amount and status of short interest in our common shares, access to margin debt, trading in options and other derivatives on our common shares andany related hedging and other trading factors;• our continued compliance with the listing standards of the Nasdaq Capital Market; 24  Table of Contents • regulatory or legal developments in the United States and other countries, especially changes in laws or regulations applicable to our industry;• variations in our financial results or those of companies that are perceived to be similar to us;• our ability or inability to raise additional capital and the terms on which we raise it;• our dividend strategy;• our continued compliance with our debt covenants;• variations in the value of our fleet;• declines in the market prices of stocks generally;• trading volume of our common shares;• sales of our common shares by us or our shareholders;• speculation in the press or investment community about our Company or industry;• general economic, industry and market conditions; and• other events or factors, including those resulting from such events, or the prospect of such events, including war, terrorism and other international conflicts,public health issues including health epidemics or pandemics, including the ongoing COVID-19 pandemic, and natural disasters such as fire, hurricanes, earthquakes,tornados or other adverse weather and climate conditions, whether occurring in the United States or elsewhere, could disrupt our operations or result in political oreconomic instability.In addition, some companies that have experienced volatility in the market price of their common shares have been subject to securities class-action litigation. Ifinstituted against us, such litigation could result in substantial costs and diversion of management’s attention and resources, which could materially and adverselyaffect our business, financial condition, operating results and growth prospects. There can be no guarantee that the price of our common shares will remain at itscurrent level or that future sales of our common shares will not be at prices lower than those sold to investors. We may issue additional common shares or other equity securities without shareholder approval, which would dilute our existing shareholders’ ownershipinterests and may depress the market price of our common shares. We may issue additional common shares or other equity securities of equal or senior rank in the future without shareholder approval in connection with, among otherthings, future vessel acquisitions, the repayment of outstanding indebtedness, and the conversion of convertible financial instruments. Our issuance of additional common shares or other equity securities of equal or senior rank in these situations would have the following effects: •our existing shareholders’ proportionate ownership interest in us would decrease;•the proportionate amount of cash available for dividends payable on our common shares could decrease;•the relative voting strength of each previously outstanding common share could be diminished; and•the market price of our common shares could decline. In addition, we may be obligated to issue, upon exercise or conversion of outstanding agreements and warrants pursuant to the terms thereof: •388,700 common shares issuable upon the exercise of outstanding Class A Warrants (at an exercise price of $35.00 per share) which expire in June 2025; 25  Table of Contents •458,500 common shares issuable upon exercise of outstanding June PP Warrants (at an exercise price of $18.00 per share) issued in a private placement thatclosed on June 30, 2020 and expire in December 2025;•833,333 common shares issuable upon exercise of outstanding July PP Warrants (at an exercise price of at $18.00 per share) issued in a private placement thatclosed on July 21, 2020 and expire in January 2026;•1,270,587 common shares issuable upon exercise of the December 2020 Warrants (at an exercise price of $6.25 per share) which expire in June 2026;•1,950,000 common shares issuable upon the exercise of the January 2021 Warrants (at an exercise price of $6.25 per share) which expire in July 2026; and•4,800,000 common shares issuable upon the exercise of the February 2021 Warrants (at an exercise price of $6.25 per share) which expire in August 2026.•10,000,000 common shares issuable upon the exercise of the June 2021 Warrants (at an exercise price of $5.00 per share) which expire in December 2026. In addition:·We historically issued, on a quarterly basis, common shares to certain of our directors, although we have changed our compensation arrangements withdirectors to pay only cash. ·We have issued an aggregate of 10,300 of our Series B preferred shares, par value $0.001 per share, to Goldenmare Limited, which shares have 25,000 votesper share, subject to maximum voting rights of 49.99%. Our issuance of additional common shares upon the exercise of such warrants and agreements would cause the proportionate ownership interest in us of our existingshareholders, other than the exercising warrant or agreement holder, to decrease; the relative voting strength of each previously outstanding common share held byour existing shareholders to decrease; and, depending on our share price when and if these warrants or notes are exercised, may result in dilution to our shareholders.Because we are a foreign private issuer, we are not bound by Nasdaq rules that require shareholder approval for issuances of our securities. We therefore can issuesecurities in such amounts and at such times as we feel appropriate, all without shareholder approval. See “Item 16G. Corporate Governance.” Future issuances or sales, or the potential for future issuances or sales, of our common shares may cause the trading price of our securities to decline and couldimpair our ability to raise capital through subsequent equity offerings. We have issued a significant number of our common shares and may do so in the future. Shares to be issued pursuant to the exercise of our outstanding warrantscould cause the market price of our common shares to decline, and could have an adverse effect on our earnings per share. In addition, future sales of our commonshares or other securities in the public or private markets, or the perception that these sales may occur, could cause the market price of our common shares to decline,and could materially impair our ability to raise capital through the sale of additional securities. The market price of our common shares could decline due to sales, or the announcements of proposed sales, of a large number of common shares in the market,including sales of common shares by our large shareholders, or the perception that these sales could occur. These sales or the perception that these sales could occurcould also depress the market price of our common shares and impair our ability to raise capital through the sale of additional equity securities or make it moredifficult or impossible for us to sell equity securities in the future at a time and price that we deem appropriate. We cannot predict the effect that future sales ofcommon shares or other equity-related securities would have on the market price of our common shares. The market price of our common shares may be volatile, which could result in substantial losses for investors who purchase our shares; and the volatility in thestock prices of other companies may contribute to volatility in our stock price. Our common shares have experienced price and volume fluctuations and may continue to experience volatility in the future. The closing price of our common shareswithin 2021 ranged from a peak of $7.46 on February 16, 2021 to a low of $1.98 on December 16, 2021, representing a decrease of 73.5%. You may not be able tosell your shares quickly or at the latest market price if trading in our stock is not active or the volume is low. Some of the factors that may cause the market price ofour common shares to fluctuate include: 26  Table of Contents ● the trading of our ships, and whether one or more ships are not trading or otherwise offhire;● regulatory or legal developments in the United States and other countries;● the recruitment or departure of key personnel;● the level of expenses related to our business or to comply with changing laws, including in relation to environmental laws;● actual or anticipated changes in estimates as to financial results or recommendations by securities analysts;● announcement or expectation of additional financing efforts;● sales of our securities by us, our insiders, or other shareholders, and the exercise of our warrants and other convertible securities and instruments;● variations in our financial results or those of companies that are perceived to be similar to us;● changes in estimates or recommendations by securities analysts, if any, that cover our stock;● market conditions in the shipping industry and drybulk sector; and● general economic, industry, and market conditions.On December 31, 2021, the closing price of our common shares on the Nasdaq Capital Market was $2.10 per share, as compared to $2.06, which was the closingprice on April 5, 2022. In addition, there has been volatility for our intra-day common share price. For example, the high and low intra-day prices on February 16,2021 were $7.85 and $6.11, respectively, and the high and low intra-day prices on January 29, 2021 were $6.89 and $5.22, respectively. As a result, there is apotential for rapid and substantial decreases in the price of our common shares, including decreases unrelated to our operating performance or prospects. In recent years, the stock market in general, Nasdaq, and the markets for shipping companies, has experienced significant price and volume fluctuations anddepressions that have often been unrelated or disproportionate to changes in the operating performance of the companies whose stock is experiencing those price andvolume fluctuations. Broad market and industry factors may seriously affect the market price of our common shares, regardless of our actual operatingperformance. Following periods of such volatility in the market price of a company’s securities, securities class action litigation has often been brought against thatcompany. Because of the potential volatility of our stock price, we may become the target of securities litigation in the future. Securities litigation could result insubstantial costs and divert management’s attention and resources from our business. A possible “short squeeze” due to a sudden increase in demand of our common shares that largely exceeds supply may lead to further price volatility in ourcommon shares. Investors may purchase our common shares to hedge existing exposure in our common shares or to speculate on the price of our common shares. Speculation on theprice of our common shares may involve long and short exposures. To the extent aggregate short exposure exceeds the number of common shares available forpurchase in the open market, investors with short exposure may have to pay a premium to repurchase our common shares for delivery to lenders of our commonshares. Those repurchases may in turn, dramatically increase the price of our common shares until investors with short exposure are able to purchase additionalcommon shares to cover their short position. This is often referred to as a “short squeeze.” A short squeeze could lead to volatile price movements in common sharesthat are not directly correlated to the performance or prospects of our company and once investors purchase the common shares necessary to cover their short positionthe price of our common shares may decline. 27  Table of Contents We may not be able to attract and retain key management personnel and other employees in the shipping industry. Our success will depend to a significant extent upon the abilities and efforts of our management team consisting of our Chief Executive Officer, including our abilityto retain our management team and the ability of our management to recruit and hire suitable employees. The loss of our Chief Executive Officer or other keyemployees could adversely affect our business prospects and financial condition. Difficulty in hiring and retaining personnel could adversely affect our results ofoperations. Our loan agreement contains, and we expect that future loan agreements and financing arrangements will contain, restrictive covenants that may limit ourliquidity and corporate activities, which could limit our operational flexibility and have an adverse effect on our financial condition and results of operations. Inaddition, because of the presence of cross-default provisions in our loan agreement and the expectation that such will exist in any future loan agreements andfinancing arrangements, a default by us under one loan could lead to defaults under multiple loans. Our CIT Loan Facility contains, and we expect that future loan agreements and financing arrangements will contain, customary covenants and event of defaultclauses, financial covenants, restrictive covenants and performance requirements, which may affect operational and financial flexibility. Such restrictions couldaffect, and in many respects limit or prohibit, among other things, our ability to pay dividends, incur additional indebtedness, create liens, sell assets, change our chiefexecutive officer or chairman or ship manager, or engage in mergers or acquisitions. These restrictions could limit our ability to plan for or react to market conditionsor meet extraordinary capital needs or otherwise restrict corporate activities. There can be no assurance that such restrictions will not adversely affect our ability tofinance our future operations or capital needs. As a result of these restrictions, we may need to seek permission from our lenders and other financing counterparties in order to engage in some corporate actions.Our lenders’ and other financing counterparties’ interests may be different from ours and we may not be able to obtain their permission when needed. This mayprevent us from taking actions that we believe are in our best interests, which may adversely impact our revenues, results of operations and financial condition. If we fail to meet our payment and other obligations, including our financial covenants and any security coverage requirements, could lead to defaults under ourfinancing arrangements. Likewise, a decrease in vessel values or adverse market conditions could cause us to breach our financial covenants or security requirements(the market values of dry bulk vessels have generally experienced high volatility). In the event of a default that we cannot remedy, our lenders and other financingcounterparties could then accelerate their indebtedness and foreclose on the respective vessels in our fleet. The loss of any of our vessels could have a materialadverse effect on our business, results of operations and financial condition. There can be no assurance that we will obtain waivers and deferrals from our lenders in the future, if needed, as we have obtained in the past. We are currently incompliance with all applicable financial covenants under our CIT Loan Facility. For more information regarding our current loan facilities, see please see “Item 5.Operating and Financial Review and Prospects – B. Liquidity and Capital Resources”. Because of the presence of cross-default provisions in our CIT Loan Facility and, we expect, any future loan agreements, a default by us under a loan and the refusalof any one lender to grant or extend a waiver could result in the acceleration of our indebtedness under our other loans. A cross-default provision means that if wedefault on one loan, we would then default on our other loans containing a cross-default provision. We cannot assure you that we will be able to refinance our existing indebtedness or obtain additional financing. We may finance future fleet expansion with additional secured indebtedness. In May 2021, the Company reached an agreement with CIT Bank N.A. for a loanfacility of up to $34.25 million bearing interest at LIBOR plus a margin of 3.75% per annum. The proceeds of this financing were used to repay the outstandingbalance of a loan agreement with EnTrust, which we refer to as the EnTrust Loan Facility. Our ability to obtain bank financing or to access the capital markets for future offerings may be limited by our financial condition at the time of any such financing oroffering, including the actual or perceived credit quality of our charterers and the market value of our fleet, as well as by adverse market conditions resulting from,among other things, general economic conditions, weakness in the financial markets and contingencies and uncertainties that are beyond our control. Significantcontraction, de-leveraging and reduced liquidity in credit markets worldwide is reducing the availability and increasing the cost of credit. 28  Table of Contents If we are not able to obtain new debt financing on terms acceptable to us or refinance our existing debt, we will have to dedicate a portion of our cash flow fromoperations to pay the principal and interest of this indebtedness. If we are not able to satisfy these obligations, we may have to undertake alternative financing plans.In addition, debt service payments under the CIT Loan Facility or alternative financing may limit funds otherwise available for working capital, capital expenditures,the payment of dividends and other purposes. Our inability to obtain additional or replacement financing at anticipated costs or at all may materially affect our resultsof operation, our ability to implement our business strategy, our payment of dividends and our ability to continue as a going concern. Our common shares could be delisted from Nasdaq, which could affect their market price and liquidity. We are required to meet certain qualitative and financial tests (including a minimum bid price for our common shares of $1.00 per share, at least 500,000 publiclyheld shares, at least 300 public holders, a market value of publicly held securities of $1 million and net income from continuing operations of $500,000), as well asother corporate governance standards, to maintain the listing of our common shares on the Nasdaq Capital Market. It is possible that we could fail to satisfy one ormore of these requirements. There can be no assurance that we will be able to maintain compliance with the minimum bid price, shareholders’ equity, number ofpublicly held shares, net income requirements or other listing standards in the future. We may receive notices from Nasdaq that we have failed to meet itsrequirements, and proceedings to delist our stock could be commenced. In such event, Nasdaq rules permit us to appeal any delisting determination to a NasdaqHearings Panel. If we are unable to maintain or regain compliance in a timely manner and our common shares are delisted, it could be more difficult to buy or sell ourcommon shares and obtain accurate quotations, and the price of our shares could suffer a material decline. Delisting may also impair our ability to raise capital.Delisting of our shares may breach our CIT Loan Facility, which contains cross default provisions, and the purchase agreement pursuant to which we sold some ofour outstanding warrants. There could also be adverse tax consequences—please read “Item 10.E Taxation – United States Tax Considerations - United States FederalIncome Taxation of United States Holders – Distributions” for further information. On March 6, 2020, the Company received written notification from The Nasdaq Stock Market dated March 2, 2020, indicating that because the closing bid price ofour common stock for the last 30 consecutive business days was below $1.00 per share, we no longer meet the minimum bid price continued listing requirement forthe Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5450(a)(1). Pursuant to Nasdaq Listing Rules, the applicable grace period to regain compliance is 180days, or until August 31, 2020. The Company intended to monitor the closing bid price of its common stock from the date it received the letter through August 31,2020, but citing extraordinary market conditions, Nasdaq filed an immediately effective rule change with the SEC which, with effect from April 16, 2020, tolled thelisting process. Consequently, the Company’s compliance period had effectively been extended until November 12, 2020. On October 21, 2020, we effected a 1-for-100 reverse stock split and on November 5, 2020, we received notification from Nasdaq that we had regained compliance with the minimum bid price. The 1-for-100reverse stock split, reduced number of outstanding common shares from 175,675,651 to 1,756,720 shares (adjustments were made based on fractional shares). Unlessotherwise noted, all historical share numbers, per share amounts, including common share, preferred shares and warrants, have been adjusted to give effect to thisreverse split.There can be no assurance that we will be able to maintain compliance with the minimum bid price, shareholders’ equity, number of publicly held shares or otherlisting standards in the future. We may receive notices from Nasdaq that we have failed to meet its requirements, and proceedings to delist our stock could becommenced. If we are unable to maintain or regain compliance in a timely manner and our common shares are delisted, it could be more difficult to buy or sell ourcommon shares and obtain accurate quotations, and the price of our shares could suffer a material decline. The Company agreed, in its securities purchase agreementsrelating to share and warrant issuances in 2020 and 2021, to use commercially reasonable efforts to maintain the listing or quotation of the common shares onNasdaq, and to take all action reasonably necessary to continue the listing and trading of our common shares on Nasdaq. We may be unable to successfully employ our vessels on long-term time charters or take advantage of favorable opportunities involving short-term or spot marketcharter rates. Our long-term strategy to maximize the value of our fleet is to employ our vessels on a mix of all types of charter contracts, including in the short-term or spot marketand on bareboat charters and time charters. We believe this strategy provides the cash flow stability, reduced exposure to market downturns and high utilization ratesof the charter market, while at the same time enabling us to benefit from periods of increasing short-term or spot market rates. But our short-term strategy at anygiven point in time is dictated by a multitude of factors and the chartering opportunities before us. 29  Table of Contents We may, for example, seek to employ a greater portion of our fleet on the short-term or spot market or on time charters with longer durations, should we believe it tobe in our best interests. We generally prefer spot or short-term contracts in order to be versatile, to be able to move quickly to capture a market upswing, and to bemore selective with the cargos we carry. Long term charters, however, provide desirable cash flow stability, albeit at the cost of missing upswings in cargo rates.Accordingly, our mix between short-term or spot charters and longer-term charters changes from time-to-time. When our ships are not all on the short-term or spotmarket, we generally seek to stagger the expiration dates of our charters to reduce exposure to volatility in the shipping cycle when our vessels come off of charter.We also continually monitor developments in the dry bulk shipping industry and, subject to market demand, will adjust the number of vessels on charters and thecharter periods for our vessels according to market conditions. We and our Manager have developed relationships with a number of international charterers, vessel brokers, financial institutions, insurers and shipbuilders. We havealso developed a network of relationships with vessel brokers who help facilitate vessel charters and acquisitions. Although time charters with durations of one to five years may provide relatively steady streams of revenue, if our vessels were committed to such charters they maynot be available for re-chartering or for short-term or spot market voyages when such employment would allow us to realize the benefits of comparably morefavorable charter rates. In addition, in the future, we may not be able to enter into new time charters on favorable terms. The dry bulk market is volatile. Whilecharter rates are presently generally above our operating expenses, in the past charter rates have declined below operating costs of vessels. If we are required to enterinto a charter when charter rates are low, employ our vessels on the short-term or spot market during periods when charter rates have fallen or we are unable to takeadvantage of short-term opportunities on the spot or charter market, our earnings and profitability could be adversely affected. We cannot assure you that futurecharter rates will enable us to cover our costs, operate our vessels profitably or to pay dividends, or all of them. We may also decide that it makes economic sense to lay up one or more vessels. While our vessels are laid up, we will pay lay-up costs, but those vessels will not beable to earn any hire. As we expand our business, we may have difficulty improving our operating and financial systems and recruiting suitable employees and crew for our vessels. Our current operating and financial systems may not be adequate if we expand the size of our fleet, and our attempts to improve those systems may be ineffective. Inaddition, as we seek to expand our internal technical management capabilities and our fleet, we or our crewing agents may need to recruit suitable additional seafarersand shore based administrative and management personnel. We cannot guarantee that we or our crewing agents will be able to hire suitable employees or a sufficientnumber of employees if and as we expand our fleet. If we or our crewing agent encounter business or financial difficulties, we may not be able to adequately staff ourvessels. If we are unable to develop and maintain effective financial and operating systems or to recruit suitable employees as we expand our fleet, our financialperformance may be adversely affected and, among other things, the amount of cash available for distribution as dividends to our shareholders may be reduced oreliminated. Recently, the limited supply of and increased demand for well-qualified crew, due to the increase in the size of the global shipping fleet, has created upward pressureon crewing costs, which we generally bear under our time and spot charters. Increases in crew costs may adversely affect our profitability, results of operations, cashflows, financial condition and ability to pay dividends. The smuggling of drugs or other contraband onto our vessels may lead to governmental claims against us. We expect that our vessels will call at ports where smugglers may attempt to hide drugs and other contraband on vessels, with or without the knowledge of crewmembers. To the extent that our vessels are found with contraband, whether inside or attached to the hull of our vessel, and whether with or without the knowledge ofany of our crew, we may face governmental or other regulatory claims that could have an adverse effect on our business, results of operations, cash flows, financialcondition and ability to pay dividends. Labor interruptions could disrupt our business. Our vessels are manned by masters, officers and crews (totaling 194 as of December 31, 2021). Seafarers manning the vessels in our fleet are covered by industry-wide collective bargaining agreements that set basic standards. Any labor interruptions or employment disagreements with our crew members could disrupt ouroperations and could have a material adverse effect on our business, results of operations, cash flows, financial condition and ability to pay dividends. We cannotassure you that collective bargaining agreements will prevent labor interruptions. 30  Table of Contents Our charterers may renegotiate or default on their charters. Our charters provide the charterer the right to terminate the charter on the occurrence of stated events or the existence of specified conditions. In addition, the abilityand willingness of each of our charterers to perform its obligations under its charter with us will depend on a number of factors that are beyond our control. Thesefactors may include general economic conditions, the condition of the dry bulk shipping industry and the overall financial condition of the counterparties. The costsand delays associated with the default of a charterer of a vessel may be considerable and may adversely affect our business, results of operations, cash flows,financial condition and ability to pay dividends. In the recent depressed dry bulk market conditions, there have been numerous reports of charterers renegotiating their charters or defaulting on their obligationsunder their charters. If a current or future charterer defaults on a charter, we will seek the remedies available to us, which may include arbitration or litigation toenforce the contract, although such efforts may not be successful and for short term charters may cost more to enforce than the potential recovery. We cannot predictwhether our charterers will, upon the expiration of their charters, re-charter our vessels on favorable terms or at all. If our charterers decide not to re-charter ourvessels, we may not be able to re-charter them on terms similar to the terms of our current charters or at all. If we receive lower charter rates under replacementcharters or are unable to re-charter all of our vessels, this may adversely affect our business, results of operations, cash flows, financial condition and ability to paydividends. The aging of our fleet may result in increased operating costs in the future. In general, the cost of maintaining a vessel in good operating condition increases with the age of the vessel. As of December 31, 2021 and 2020, the weightedaverage age of the vessels in our fleet was 10.2 and 11.2 years, respectively. Our oldest vessel was built in 2005, and our youngest vessel was built in 2018. As ourfleet ages, we will incur increased costs to operate and maintain the vessels. Older vessels are typically less fuel efficient and cost more to maintain than morerecently constructed vessels due to improvements in engine technology. Cargo insurance rates, paid by charterers, increase with the age of a vessel, making oldervessels less desirable to charterers. Governmental regulations, safety or other equipment standards related to the age of vessels may require expenditures foralterations or the addition of new equipment, to our vessels and may restrict the type of activities in which our vessels may engage. We cannot assure you that, as ourvessels age, further market conditions will justify those expenditures or enable us to operate our vessels profitably during the remainder of their useful lives. We mayalso decide that it makes economic sense to lay up one or more vessels. While our vessels are laid up, we will pay lay-up costs, but those vessels will not be able toearn any hire. We may have difficulty managing our planned growth properly. Our recent vessel acquisitions have imposed additional responsibilities on our management and staff, as will any further acquisition of vessels, which may require usto add more personnel and find new customers. Attracting qualified staff and customers are difficult tasks, and we might struggle to do so on attractive terms. We intend to continue to stabilize and then to try to grow our business through disciplined acquisitions of vessels that meet our selection criteria and newly builtvessels if we can negotiate attractive purchase prices. Our future growth will primarily depend on: Ølocating and acquiring suitable vessels; Øidentifying and consummating acquisitions; Øenhancing our customer base; Ømanaging our expansion; and Øobtaining required financing on acceptable terms. 31  Table of Contents A delay in the delivery to us of any such vessel, or the failure of the shipyard to deliver a vessel at all, could cause us to breach our obligations under a related charterand could adversely affect our earnings. In addition, the delivery of any of these vessels with substantial defects could have similar consequences. A shipyard couldfail to deliver a new-building on time or at all because of: Øwork stoppages or other hostilities or political or economic disturbances that disrupt the operations of the shipyard; Øquality or engineering problems; Øbankruptcy or other financial crisis of the shipyard; Øa backlog of orders at the shipyard; Øweather interference or catastrophic events, such as major earthquakes or fires; Øour requests for changes to the original vessel specifications or disputes with the shipyard; Øshortages of or delays in the receipt of necessary construction materials, such as steel; or Øshortages of or delays in the receipt of necessary equipment, such as main engines, electricity generators and propellers. In addition, if we enter a newbuilding or secondhand contract in the future, we may seek to terminate the contract due to market conditions, financing limitations orother reasons. The outcome of contract termination negotiations may require us to forego deposits on construction or purchase and pay additional cancellation fees. Inaddition, where we have already arranged a future charter with respect to the terminated new-building contract, we would need to provide an acceptable substitutevessel to the charterer to avoid breaching our charter agreement. During periods in which charter rates are high, vessel values generally are high as well, and it may be difficult to consummate vessel acquisitions or enter into new-building contracts at favorable prices. During periods when charter rates are low, such as the current market, we may be unable to fund the acquisition of new-buildings, whether through lending or cash on hand. For these reasons, we may be unable to execute our growth plans or avoid significant expenses and losses inconnection with our future growth efforts. Growing any business by acquisition presents numerous risks, such as undisclosed liabilities and obligations, the possibility that indemnification agreements will beunenforceable or insufficient to cover potential losses and difficulties associated with imposing common standards, controls, procedures and policies, obtainingadditional qualified personnel, managing relationships with customers and integrating newly acquired assets and operations into existing infrastructure. We cannotgive any assurance that we will be successful in executing our growth plans or that we will not incur significant expenses and losses in connection with our futuregrowth. To the extent we scrap or sell vessels, we may decide to terminate the employment of some of our staff. Legislative or regulatory changes in Greece may adversely affect our results from operations. Globus Shipmanagement Corp., our ship management subsidiary, who we refer to as our Manager, is regulated under Greek Law 89/67, and conducts its operationsand those on our behalf primarily in Greece. Greece has been implementing new legislative measures to address financial difficulties, several of which as a responsefrom oversight by the International Monetary Fund and by European regulatory bodies such as the European Central Bank. Such legislative actions may impose newregulations on our operations in Greece that will require us to incur new or additional compliance or other administrative costs and may require that our Manager orwe pay to the Greek government new taxes or other fees. Any such taxes, fees or costs we incur could be in amounts that are significantly greater than those in thepast and could adversely affect our results from operations. For example, in 2013, tax law 4110/2013 amended the long-standing provisions of art. 26 of law 27/1975 by imposing a fixed annual tonnage tax on vessels flying aforeign (i.e., non-Greek) flag which are managed by a Law 89 company, establishing an identical tonnage tax regime as the one already in force for vessels flying theGreek flag. This tax varies depending on the size of the vessel, calculated in gross registered tonnage, as well as on the age of each vessel. Payment of this tonnagetax completely satisfies all income tax obligations of both the shipowning company and of all its shareholders up to the ultimate beneficial owners. Any tax payableto the state of the flag of each vessel as a result of its registration with a foreign flag registry (including the Marshall Islands) is subtracted from the amount oftonnage tax due to the Greek tax authorities. 32  Table of Contents The tax residents of Greece who receive dividends from such shipowning or their holding companies are taxed at 10% on the dividends which they receive and whichthey import into Greece, not being liable to any other taxation for these, which include those dividends which either remain with the holding company or are paid tothe individual Greek tax resident abroad. We rely on our information systems to conduct our business. The efficient operation of our business is dependent on computer hardware and software systems. Information systems are vulnerable to security breaches bycomputer hackers, cyber terrorists, and garden variety computer viruses. We rely on what we believe to be industry accepted security measures and technology tosecurely maintain confidential and proprietary information maintained on our information systems. However, these measures and technology may not adequatelyprevent security breaches. In addition, the unavailability of the information systems or the failure of these systems to perform as anticipated for any reason coulddisrupt our business and could result in decreased performance and increased operating costs, causing our business and results of operations to suffer. Any significantinterruption or failure of our information systems or any significant breach of security could adversely affect our business and results of operations. We expect that a limited number of financial institutions will hold our cash including financial institutions that may be located in Greece. We expect that a limited number of financial institutions will hold all of our cash, including some institutions located in Greece. Our bank accounts are with banks inSwitzerland, U.S.A. and Greece. Of the financial institutions located in Greece, none are subsidiaries of international banks. Depending on our cash balance in anyour accounts at any given point in time, our balances may not be covered by government-backed deposit insurance programs in the event of default by these financialinstitutions. The occurrence of such a default could have a material adverse effect on our business, financial condition, results of operations and cash flows, and wemay lose part or all of our cash that we deposit with such banks. Purchasing and operating secondhand vessels may result in increased operating costs and reduced fleet utilization. While we have the right to inspect previously owned vessels prior to our purchase of them, such an inspection does not provide us with the same knowledge abouttheir condition that we would have if these vessels had been built for and operated exclusively by us. A secondhand vessel may have conditions or defects that we arenot aware of when we buy the vessel and which may require us to incur costly repairs to the vessel. These repairs may require us to put a vessel into drydocking,which would increase cash outflows and related expenses, while reducing our fleet utilization. Furthermore, we usually do not receive the benefit of warranties onsecondhand vessels. Our ability to declare and pay dividends to holders of our common shares will depend on a number of factors and will always be subject to the discretion of ourboard of directors. If we are not in compliance with our loan covenants and received a notice of default and were unable to cure it under the terms of our loan covenants, we may beforbidden from issuing dividends. There can be no assurance that dividends will be paid to holders of our shares in any anticipated amounts and frequency at all. Wemay incur other expenses or liabilities that would reduce or eliminate the cash available for distribution as dividends, including as a result of the risks described inthis section of this annual report on Form 20-F. For instance, the CIT Loan Facility presently prohibits our declaration and payment of dividends under some circumstances. Under the CIT Loan Facility GlobusMaritime Limited is prohibited from making dividends (other than up to $500,000 annually on or in respect of its preferred shares) in cash or redeem or repurchaseits shares unless there is no event of default under the CIT Loan Facility, the net loan to value ratio is less than 60% before the making of the dividend and GlobusMaritime Limited is in compliance with the debt service coverage ratio, and Globus Maritime Limited must prepay the CIT Loan Facility in an equal amount of thedividend. Please read “Item 5.B. Liquidity and Capital Resources—Indebtedness” for further information. 33  Table of Contents We may also enter into new financing or other agreements that may restrict our ability to pay dividends even without an event of default, or make it less desirable forus to do so. In addition, we may pay dividends to the holders of our preferred shares prior to the holders of our common shares, depending on the terms of thepreferred shares. If we pay a dividend, the terms of our outstanding warrants provide that the exercise price shall be decreased by the amount of cash and/or the fair market value ofany securities or other assets paid on each common share in respect of such dividend in order that subsequent thereto upon exercise of the warrants the holder of thewarrants may obtain the equivalent benefit of such dividend. The declaration and payment of dividends to holders of our shares will be subject at all times to the discretion of our board of directors, and will be paid equally on aper-share basis between our common shares and our Class B shares, to the extent any are issued and outstanding. We can provide no assurance that dividends will bepaid in the future. There may be a high degree of variability from period to period in the amount of cash, if any, that is available for the payment of dividends based upon, among otherthings: Øthe rates we obtain from our charters as well as the rates obtained upon the expiration of our existing charters; Øthe level of our operating costs; Øthe number of unscheduled off-hire days and the timing of, and number of days required for, scheduled drydocking of our vessels; Øvessel acquisitions and related financings; Ørestrictions in our current and future debt arrangements; Øour ability to obtain debt and equity financing on acceptable terms as contemplated by our growth strategy; Øprevailing global and regional economic and political conditions; Øthe effect of governmental regulations and maritime self-regulatory organization standards on the conduct of our business; Øour overall financial condition; Øour cash requirements and availability; Øthe amount of cash reserves established by our board of directors; and Ørestrictions under Marshall Islands law. Marshall Islands law generally prohibits the payment of dividends other than from surplus or certain net profits, or while a company is insolvent or would berendered insolvent by the payment of such a dividend. We may not have sufficient funds, surplus, or net profits to make distributions. We may incur expenses or liabilities or be subject to other circumstances in the future that reduce or eliminate the amount of cash that we have available fordistribution as dividends, if any. Our growth strategy contemplates that we will finance the acquisition of our new-buildings or selective acquisitions of vesselsthrough a combination of our operating cash flow and debt financing through our subsidiaries or equity financing. If financing is not available to us on acceptableterms, our board of directors may decide to finance or refinance acquisitions with a greater percentage of cash from operations to the extent available, which wouldreduce or even eliminate the amount of cash available for the payment of dividends. We may also enter into other agreements that will restrict our ability to paydividends or make it less desirable for us to do so. The amount of cash we generate from our operations may differ materially from our net income or loss for the period, which will be affected by non-cash items. Wemay incur other expenses or liabilities that could reduce or eliminate the cash available for distribution as dividends. As a result of these and the other factorsmentioned above, we may pay dividends during periods when we record losses and may not pay dividends during periods when we record net income, if we paydividends at all. 34  Table of Contents We are a holding company, and we will depend on the ability of our subsidiaries to distribute funds to us in order to satisfy our financial obligations or to makedividend payments. We are a holding company and our subsidiaries, which are all directly and wholly owned by us, will conduct all of our operations and own all of our operating assets.We have no significant assets other than the equity interests in our wholly owned subsidiaries. As a result, our ability to make dividend payments depends on oursubsidiaries and their ability to distribute funds to us. If we are unable to obtain funds from our subsidiaries, our board of directors may exercise its discretion not todeclare or pay dividends. In addition, our subsidiaries are subject to limitations on the payment of dividends under Marshall Islands or Maltese law. Management may be unable to provide reports as to the effectiveness of our internal control over financial reporting or, when applicable, our independentregistered public accounting firm may be unable to provide us with unqualified attestation reports as to the effectiveness of our internal control over financialreporting when required. Under Section 404 of the Sarbanes-Oxley Act of 2002, which we refer to as Sarbanes-Oxley, we are required to include in each of our annual reports on Form 20-F areport containing our management’s assessment of the effectiveness of our internal control over financial reporting and in this annual report on Form 20-F a relatedattestation of our independent registered public accounting firm. In addition, management may not conclude that our internal control over financial reporting iseffective if a material weakness exists in our internal control over financial reporting. If in such annual reports on Form 20-F our management cannot provide a reportas to the effectiveness of our internal control over financial reporting or, when applicable, our independent registered public accounting firm is unable to provide uswith an unqualified attestation report as to the effectiveness of our internal control over financial reporting as required by Section 404, investors could loseconfidence in the reliability of our consolidated financial statements, which could result in a decrease in the value of our common shares. Unless we set aside reserves or are able to raise or borrow funds for vessel replacement, at the end of a vessel’s useful life our revenues will decline. As of December 31, 2021 and December 31, 2020, the vessels in our current fleet had a weighted average age of 10.2 and 11.2 years, respectively. Our oldest vesselwas built in 2005, and our youngest vessel was built in 2018. Unless we maintain reserves or are able to raise or borrow or raise funds for vessel replacement, we willbe unable to replace the vessels in our fleet upon the expiration of their remaining useful lives, which we expect to be 25 years from the date of their construction.Our cash flows and income are dependent on the revenues earned by the chartering of our vessels to customers. If we are unable to replace the vessels in our fleetupon the expiration of their useful lives, our business, results of operations, financial condition and ability to pay dividends will be materially adversely affected. Anyreserves set aside for vessel replacement may not be available for dividends. We depend upon a few significant customers for a large part of our revenues. We may derive a significant part of our revenue from a small number of customers. During the years ended December 31, 2021, 2020 and 2019, we derivedsubstantially all of our revenues from approximately 23, 29 and 22 customers, respectively, and approximately 47%, 31% and 50%, respectively, of our revenuesduring those years were derived from four customers. If one or more of our major customers defaults under a charter with us and we are not able to find areplacement charter, or if such a customer exercises certain rights to terminate the charter, we could suffer a loss of revenues that could materially adversely affect ourbusiness, financial condition, results of operations and cash available for distribution as dividends to our shareholders. 35  Table of Contents We could lose a customer or the benefits of a time charter if, among other things: Øthe customer fails to make charter payments because of its financial inability, disagreements with us or otherwise; Øthe customer terminates the charter because of our non-performance, including failure to deliver the vessel within a fixed period of time, the vessel is lostor damaged beyond repair, serious deficiencies in the vessel, prolonged periods of off-hire or our default under the charter; or Øthe customer terminates the charter because the vessel has been subject to seizure for more than 30 days. If we lose a key customer, we may be unable to obtain charters on comparable terms with charterers of comparable standing or we may have increased exposure tothe volatile short-term or spot market, which is highly competitive and subject to significant price fluctuations. We would not receive any revenues from such a vesselwhile it remained unchartered, but we may be required to pay expenses necessary to maintain the vessel in proper operating condition, insure it and service anyindebtedness secured by such vessel. The loss of any of our customers, time charters or vessels or a decline in payments under our charters could have a materialadverse effect on our business, results of operations and financial condition and our ability to pay dividends. Provisions of our articles of incorporation and bylaws may have anti-takeover effects, which could depress the trading price of our common shares. Several provisions of our articles of incorporation and bylaws, which are summarized below, may have anti-takeover effects. These provisions are intended to avoidcostly takeover battles, lessen our vulnerability to a hostile change of control and enhance the ability of our board of directors to maximize shareholder value inconnection with any unsolicited offer to acquire our company. However, these anti-takeover provisions could also discourage, delay or prevent the merger oracquisition of our company by means of a tender offer, a proxy contest or otherwise that a shareholder may consider in its best interest and the removal of incumbentofficers and directors, which could affect the desirability of our shares and, consequently, our share price. Multi Class Stock. Our multi-class stock structure, which consists of common shares, Class B common shares, and preferred shares, can provide holders of our Class B common sharesor preferred shares a significant degree of control over all matters requiring shareholder approval, including the election of directors and significant corporatetransactions, such as a merger or other sale of our company or its assets, because our different classes of shares can have different numbers of votes. For instance, while our common shares have one vote on matters before the shareholders, each of our 10,300 outstanding Series B preferred shares has 25,000 voteson matters before the shareholders; provided however, that no holder of Series B preferred shares may exercise voting rights pursuant to any Series B preferred sharesthat would result in the total number of votes a holder is entitled to vote on any matter submitted to a vote of shareholders of the Company to exceed 49.99% of thetotal number of votes eligible to be cast on such matter. No Class B common shares are presently outstanding, but if and when we issue any, each Class B commonshare will have 20 votes on matters before the shareholders. At present, and until a substantial number of additional securities are issued, our holder of Series B preferred shares exerts substantial control of the Company’s votesand is able to exert substantial control over our management and all matters requiring shareholder approval, including electing directors and significant corporatetransactions, such as a merger. Such holder’s interest could differ from other shareholders’ interests. Blank Check Preferred Shares. Under the terms of our articles of incorporation, our board of directors has authority, without any further vote or action by our shareholders, to issue up to 100 million“blank check” preferred shares, almost all of which currently remain available for issuance. Our board could authorize the issuance of preferred shares with voting orconversion rights that could dilute the voting power or rights of the holders of common shares, in addition to preferred shares that are already outstanding. Theissuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have theeffect of delaying, deferring or preventing a change in control of us or the removal of our management and may harm the market price of our common shares. Classified Board of Directors. Our articles of incorporation provide for the division of our board of directors into three classes of directors, with each class as nearly equal in number as possible,serving staggered, three-year terms beginning upon the expiration of the initial term for each class. Approximately one-third of our board of directors is elected eachyear. This classified board provision could discourage a third party from making a tender offer for our shares or attempting to obtain control of us. It could also delayshareholders who do not agree with the policies of our board of directors from removing a majority of our board of directors for up to two years. 36  Table of Contents Election of Directors. Our articles of incorporation do not provide for cumulative voting in the election of directors. Our bylaws require parties, other than the chairman of the board ofdirectors, board of directors and shareholders holding 30% or more of the voting power of the aggregate number of our shares issued and outstanding and entitled tovote, to provide advance written notice of nominations for the election of directors. These provisions may discourage, delay or prevent the removal of incumbentofficers and directors. Advance Notice Requirements for Shareholder Proposals and Director Nominations. Our bylaws provide that shareholders, other than shareholders holding 30% or more of the voting power of the aggregate number of our shares issued andoutstanding and entitled to vote, seeking to nominate candidates for election as directors or to bring business before an annual meeting of shareholders must providetimely notice of their proposal in writing to the corporate secretary. Generally, to be timely, a shareholder’s notice must be received at our principal executive offices not less than 150 days or more than 180 days prior to the firstanniversary date of the immediately preceding annual meeting of shareholders. Our bylaws also specify requirements as to the form and content of a shareholder’snotice. These provisions may impede a shareholder’s ability to bring matters before an annual meeting of shareholders or make nominations for directors at an annualmeeting of shareholders. Calling of Special Meetings of Shareholders Our bylaws provide that special meetings of our shareholders may be called only by the chairman of our board of directors, by resolution of our board of directors orby holders of 30% or more of the voting power of the aggregate number of our shares issued and outstanding and entitled to vote at such meeting. Action by Written Consent in Lieu of a Meeting Our articles permit any action which may or is required by the BCA to be taken at a meeting of the shareholders to be authorized by consents in writing signed by theholders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which allshares entitled to vote thereon were present and voted. Presently and until and unless we issue a significant number of securities, Goldenmare Limited, a companyaffiliated with our Chief Executive Officer, holds Series B preferred shares controlling a significant portion of the voting power of our outstanding capital stock.Goldenmare could, together with shareholders possessing a relatively small number of shares, act by written consent in lieu of a meeting and authorize majortransactions on behalf of the Company, all without calling a meeting of shareholders. Business Combinations Our articles prohibit us from engaging in a business combination with an interested shareholder for a period of three years following the date of the transaction inwhich the person became an interested shareholder, subject to certain exceptions. Please see “Item 10B.—Memorandum and Articles of Association—Anti-TakeoverEffects of Certain Provisions of our Articles of Incorporation and Bylaws—Business Combinations.” We generate revenues from the trading of our vessels in U.S. dollars but incur a portion of our expenses in other currencies. We generate substantially all of our revenues from the trading of our vessels in U.S. dollars, but during the years ended December 31, 2021, 2020 and 2019 weincurred approximately 31%, 25% and 27%, respectively, of our vessel operating expenses, and certain administrative expenses, in currencies other than the U.S.dollar. This difference could lead to fluctuations in net profit due to changes in the value of the U.S. dollar relative to the other currencies. Expenses incurred inforeign currencies against which the U.S. dollar falls in value can increase, decreasing our revenues. We have not hedged our currency exposure, and, as a result, ourresults of operations and financial condition, denominated in U.S. dollars, and our ability to pay dividends could suffer. 37  Table of Contents Increases in interest rates may cause the market price of our shares to decline. An increase in interest rates may cause a corresponding decline in demand for equity investments in general. Any such increase in interest rates or reduction indemand for our shares resulting from other relatively more attractive investment opportunities may cause the trading price of our shares to decline. If LIBOR (or itssuccessor) increases, then our payments pursuant to certain existing loans will increase. See “Item 11. Quantitative and Qualitative Disclosures About Market Risk.” If volatility in the London InterBank Offered Rate, or LIBOR, occurs, or when LIBOR is replaced as the reference rate under our debt obligations, it could affectour profitability, earnings and cash flow LIBOR may be volatile, with the spread between LIBOR and the prime lending rate widening significantly at times. These conditions are the result of disruptions inthe international markets. Because the interest rates borne by the CIT Loan Facility fluctuates with changes in LIBOR, it would affect the amount of interest payableon those debts, which, in turn, could have an adverse effect on our profitability, earnings and cash flow. On July 27, 2017, the UK Financial Conduct Authority (“FCA”) announced that it would phase-out LIBOR by the end of 2021. On November 30, 2020, ICEBenchmark Administration (“IBA”), the administrator of LIBOR, with the support of the United States Federal Reserve and the United Kingdom’s FinancialConduct Authority, announced plans to consult on ceasing publication of U.S. Dollar LIBOR on December 31, 2021 for only the one-week and two-month U.S.Dollar LIBOR tenors, and on June 30, 2023 for all other U.S. Dollar LIBOR tenors. This announcement coincided with an announcement by the International Swapsand Derivatives Association (“ISDA”) that the IBA announcement was not a triggering event which would set the spread to be used in its derivative contracts as partof the risk-free rate determination process. As a result, lenders have insisted on fallback provisions that entitle the lenders, in their discretion, to replace publishedLIBOR as the basis for the interest calculation with successor benchmark rates, such as their cost-of-funds rate. Various alternative reference rates are beingconsidered in the financial community. The Secured Overnight Financing Rate has been proposed by the Alternative Reference Rate Committee, a committeeconvened by the U.S. Federal Reserve that includes major market participants and on which regulators participate, as an alternative rate to replace U.S. dollarLIBOR. However, it is not possible at this time to know the ultimate impact a phase-out of LIBOR may have, or how any such changes or alternative methods forcalculating benchmark interest rates would be applied to any particular agreement containing terms based on LIBOR, which generally have alternative calculationprovisions. If, however, these are implicated, the interest payable on these particular agreements could be subject to volatility and the underlying lending costs couldincrease, which would have an adverse effect on the borrowers’ profitability, earnings and cash flow. The public market may not continue to be active and liquid enough for our shareholders to resell our common shares in the future. The price of our common shares may be volatile and may fluctuate due to factors such as: Øactual or anticipated fluctuations in our quarterly and annual results and those of other public companies in our industry; Ømergers and strategic alliances in the dry bulk shipping industry; Ømarket conditions in the dry bulk shipping industry; Øchanges in government regulation; Øshortfalls in our operating results from levels forecast by securities analysts; Øannouncements concerning us or our competitors; and Øthe general state of the securities market. 38  Table of Contents The dry bulk shipping industry has been highly unpredictable and volatile. The market for our common shares may be equally volatile. We may have to pay tax on U.S. source shipping income. Under the U.S. Internal Revenue Code of 1986, as amended, or the Code, 50% of the gross shipping income of a vessel-owning or chartering corporation that isattributable to transportation that begins or ends, but that does not both begin and end, in the United States is characterized as U.S. source shipping income and suchincome is subject to a 4% U.S. federal income tax without allowance for deductions, unless that corporation qualifies for exemption from tax under section 883 of theCode and the U.S. Treasury regulations promulgated thereunder, which we refer to as the Section 883 Exemption, or through the application of a comprehensiveincome tax treaty between the United States and the corporation’s country of residence. The eligibility of Globus Maritime and our subsidiaries to qualify for theSection 883 Exemption is determined each taxable year and is dependent on certain circumstances related to the ownership of our shares and on interpretations ofexisting U.S. Treasury regulations, each of which could change. We can therefore give no assurance that we will in fact be eligible to qualify for the Section 883Exemption for all taxable years. In addition, changes to the Code, the U.S. Treasury regulations or the interpretation thereof by the U.S. Internal Revenue Service, orIRS, or the courts could adversely affect the ability of Globus Maritime and our subsidiaries to take advantage of the Section 883 Exemption. If we are not entitled to the Section 883 Exemption or an exemption under a tax treaty for any taxable year in which any company in the group earns U.S. sourceshipping income, any company earning such U.S. source shipping income, would be subject to a 4% U.S. federal income tax on the gross amount of the U.S. sourceshipping income for the year (or an effective rate of 2% on shipping income attributable to the transportation of freight to or from the United States). The impositionof this taxation could have a negative effect on our business and revenues and would result in decreased earnings available for distribution to our shareholders. For a more complete discussion, please read the section entitled “Item 10.E. Taxation— United States Tax Considerations— United States Federal Income Taxationof the Company.” U.S. tax authorities could treat us as a “passive foreign investment company,” which could result in adverse U.S. federal income tax consequences to U.S.shareholders. A foreign corporation will be treated as a “passive foreign investment company,” or PFIC, for U.S. federal income tax purposes if either at least 75% of its grossincome for any taxable year consists of certain types of “passive income” or at least 50% of the average value of the corporation’s assets produce or are held for theproduction of those types of “passive income.” For purposes of these tests, “passive income” includes dividends, interest and gains from the sale or exchange ofinvestment property, and rents and royalties other than rents and royalties that are received from unrelated parties in connection with the active conduct of a trade orbusiness. For purposes of these tests, income derived from the performance of services does not constitute “passive income.” U.S. shareholders of a PFIC are subject to a disadvantageous U.S. federal income tax regime with respect to the income derived by the PFIC, the distributions theyreceive from the PFIC, and the gain, if any, they derive from the sale or other disposition of their shares in the PFIC, unless those shareholders make an electionavailable under the Code (which election could itself have adverse consequences for such shareholders). In particular, U.S. shareholders who are individuals wouldnot be eligible for the preferential tax rate on qualified dividends. Please read “Item 10.E. Taxation—United States Tax Considerations—United States FederalIncome Taxation of United States Holders” for a more comprehensive discussion of the U.S. federal income tax consequences to U.S. shareholders if we are treatedas a PFIC. Based on our current operations and anticipated future operations, we believe we should not be treated as a PFIC. In this regard, we intend to treat gross income wederive or are deemed to derive from our time chartering activities as services income, rather than rental income. Accordingly, we believe that our income from ourtime chartering activities should not constitute “passive income,” and that the assets we own and operate in connection with the production of that income do notconstitute assets that produce or are held for the production of “passive income.” There are legal uncertainties involved in this determination because there is no direct legal authority under the PFIC rules addressing our current and projected futureoperations. Moreover, a case decided in 2009 by the U.S. Court of Appeals for the Fifth Circuit held that, contrary to the position of the IRS in that case, and forpurposes of a different set of rules under the Code, income received under a time charter of vessels should be treated as rental income rather than services income. Ifthe reasoning of this case were extended to the PFIC context, the gross income we derive or are deemed to derive from our time chartering activities would be treatedas rental income, and we would be a PFIC unless an active leasing exception applies. Although the IRS has announced that it will not follow the reasoning of thiscase, and that it intends to treat the income from standard industry time charters as services income, no assurance can be given that a U.S. court will not follow theaforementioned case. Moreover, no assurance can be given that we would not constitute a PFIC for any future taxable year if there were to be changes in our assets,income or operations. If the IRS were to find that we are or have been a PFIC for any taxable year, our U.S. shareholders will face adverse U.S. tax consequences and information reportingobligations, as more fully described under “Item 10.E. Taxation—United States Tax Considerations—United States Federal Income Taxation of United StatesHolders.” 39  Table of Contents We could face penalties under European Union, United States or other economic sanctions. Our business could be adversely impacted if we are found to have violated economic sanctions under the applicable laws of the European Union, the United States oranother applicable jurisdiction against countries such as Iran, Syria, North Korea and Cuba . U.S. economic sanctions, for example, prohibit a wide scope of conduct,target numerous countries and individuals, are frequently updated or changed and have vague application in many situations. Many economic sanctions relate to our business, including prohibitions on certain kinds of trade with countries, such as exportation or re-exportation of commodities,or prohibitions against certain transactions with designated nationals who may be operating under aliases or through non-designated companies. The imposition ofUkrainian-related economic sanctions on Russian persons, first imposed in March 2014 and further in 2022, is an example of economic sanctions with a potentiallywidespread and unpredictable impact on shipping. Certain of our charterers or other parties with whom we have entered into contracts regarding our vessels may beaffiliated with persons or entities that are the subject of sanctions imposed by the U.S. government, the European Union and/or other international bodies relating tothe annexation of Crimea by Russia in 2014 and the current conflict in Ukraine. If we determine that such sanctions require us to terminate existing contracts or if weare found to be in violation of such applicable sanctions, our results of operations may be adversely affected or we may suffer reputational harm. Additionally, the U.S. Iran Threat Reduction Act (which was signed into law in 2012) amended the Exchange Act to require issuers that file annual or quarterlyreports under Section 13(a) of the Exchange Act to include disclosure in their annual and quarterly reports as to whether the issuer or its affiliates have knowinglyengaged in certain activities prohibited by sanctions against Iran or transactions or dealings with certain identified persons. We are subject to this disclosurerequirement. There can be no assurance that we will be in compliance with all applicable sanctions and embargo laws and regulations in the future, particularly as the scope ofcertain laws may be unclear and may be subject to changing interpretations. Any such violation could result in fines or other penalties and could severely impact ourability to access U.S. capital markets and conduct our business, and could result in some investors deciding, or being required, to divest their interest, or not to invest,in us. Even inadvertent violations of economic sanctions can result in the imposition of material fines and restrictions and could adversely affect our business,financial condition and results of operations, our reputation, and the market price of our common shares. Our vessels may call on ports subject to economic sanctions or embargoes. From time to time on charterers’ instructions, our vessels may call on ports located in countries subject to sanctions and embargoes imposed by the United Statesgovernment and countries identified by the U.S. government as state sponsors of terrorism, such as Iran, Sudan, North Korea, and Syria. The U.S. sanctions andembargo laws and regulations vary in their application, as they do not all apply to the same covered persons or proscribe the same activities, and such sanctions andembargo laws and regulations may be amended or strengthened over time. On May 1, 2012, then-President Obama signed Executive Order 13608 which prohibitsforeign persons from violating or attempting to violate, or causing a violation of any sanctions in effect against Iran or facilitating any deceptive transactions for or onbehalf of any person subject to U.S. sanctions. Any persons found to be in violation of Executive Order 13608 will be deemed a foreign sanctions evader and will bebanned from all contacts with the United States, including conducting business in U.S. dollars. On July 14, 2015, the P5+1 (the United States, United Kingdom, Germany, France, Russia and China) and the EU announced that they reached a landmark agreementwith Iran titled the Joint Comprehensive Plan of Action, or the JCPOA, which was intended to restrict significantly Iran’s ability to develop and produce nuclearweapons while simultaneously easing sanctions directed at non-U.S. persons for conduct involving Iran, but taking place outside of U.S. jurisdiction and notinvolving U.S. persons. On January 16, 2016, the United States joined the EU and the United Nations in lifting a significant number of sanctions on Iran following anannouncement by the International Atomic Energy Agency, or the IAEA, that Iran had satisfied its obligations under the JCPOA. However, in 2018, then-PresidentTrump withdrew the United States from the JCPOA, resulting in the complete reimposition of U.S. sanctions. As of now, the EU and other parties to the JCPOA havenot withdrawn, and the EU and United Nations sanctions that were lifted have not been reimposed, while the U.S. under President Biden has not re-entered theJCPOA or lifted any of the U.S. sanctions on Iran imposed by former President Trump. 40  Table of Contents Although we believe that we have been in compliance with all applicable sanctions and embargo laws and regulations, and intend to maintain such compliance, therecan be no assurance that we will be in compliance in the future as such regulations and sanctions may be amended over time. Any such violation could result in fines,penalties or other sanctions that could severely impact our ability to access U.S. capital markets and conduct our business, and could result in some investorsdeciding, or being required, to divest their interest, or not to invest, in us. In addition, certain institutional investors may have investment policies or restrictions thatprevent them from holding securities of companies that have contracts with countries identified by the U.S. government as state sponsors of terrorism. Thedetermination by these investors not to invest in, or to divest from, our common shares may adversely affect the price at which our common shares trade. Moreover,our charterers may violate applicable sanctions and embargo laws and regulations as a result of actions that do not involve us or our vessels, and those violationscould in turn negatively affect our reputation. In addition, our reputation and the market for our securities may be adversely affected if we engage in certain otheractivities, such as entering into charters with individuals or entities in countries subject to U.S. sanctions and embargo laws that are not controlled by the governmentsof those countries, or engaging in operations associated with those countries pursuant to contracts with third parties that are unrelated to those countries or entitiescontrolled by their governments. Investor perception of the value of our common shares may be adversely affected by the consequences of war, the effects ofterrorism, civil unrest and governmental actions in these and surrounding countries. We are subject to Marshall Islands corporate law, which is not well-developed. Our corporate affairs are governed by our articles of incorporation, our bylaws and by the Marshall Islands Business Corporations Act, or the BCA. The provisions ofthe BCA resemble provisions of the corporation laws of a number of states in the United States. However, there have been few judicial cases in the Marshall Islandsinterpreting the BCA. The rights and fiduciary responsibilities of directors under the laws of the Marshall Islands are not as clearly established as the rights andfiduciary responsibilities of directors under statutes or judicial precedent in existence in certain United States jurisdictions. The rights of shareholders of corporationsincorporated in or redomiciled into the Marshall Islands may differ from the rights of shareholders of corporations incorporated in the United States. While the BCAprovides that it is to be applied and construed to make the laws of the Marshall Islands, for non-resident entities such as us, with respect of the subject matter of theBCA, uniform with the laws of the State of Delaware and other states with substantially similar legislative provisions (and adopts their case law to the extent it doesnot conflict with the BCA), there have been few court cases interpreting the BCA in the Marshall Islands and we cannot predict whether Marshall Islands courtswould reach the same conclusions as United States courts. Thus, you may have more difficulty in protecting your interests in the face of actions by our management,directors or controlling shareholders than would shareholders of a corporation incorporated in a United States jurisdiction that has developed a more substantial bodyof case law in the corporate law area. As a Marshall Islands corporation with principal executive offices in Greece, and also having subsidiaries in the Marshall Islands and other offshorejurisdictions such as Malta, our operations may be subject to economic substance requirements. On March 12, 2019, the Council of the European Union published a list of “non-cooperative jurisdictions” for tax purposes in which the Republic of the MarshallIslands, among others, was placed by the E.U. on this list for failing to implement certain commitments previously made to the E.U. by the agreed deadline.However, it was announced by the Council of the European Union on October 10, 2019 that the Marshall Islands had been removed from that list. E.U. memberstates have agreed upon a set of measures, which they can choose to apply against the listed countries, including increased monitoring and audits, withholding taxesand non-deductibility of costs. The European Commission has stated it will continue to support member states' efforts to develop a more coordinated approach tosanctions for the listed countries in 2019. E.U. legislation prohibits certain E.U. funds from being channeled or transited through entities in non-cooperativejurisdictions. We are a Marshall Islands corporation with principal executive offices in Greece. Our management company is also a Marshall Islands entity and one of oursubsidiaries is organized in Malta. The Marshall Islands has enacted economic substance regulations with which we may be obligated to comply. Those regulationsrequire certain entities that carry out particular activities to comply with an economic substance test whereby the entity must show that it (i) is directed and managedin the Marshall Islands in relation to that relevant activity, (ii) carries out core income-generating activity in relation to that relevant activity in the Marshall Islands(although it is being understood and acknowledged by the regulators that income-generated activities for shipping companies will generally occur in internationalwaters) and (iii) having regard to the level of relevant activity carried out in the Marshall Islands has (a) an adequate amount of expenditures in the Marshall Islands,(b) adequate physical presence in the Marshall Islands and (c) an adequate number of qualified employees in the Marshall Islands. 41  Table of Contents If we fail to comply with our obligations under this legislation or any similar law applicable to us in any other jurisdictions, we could be subject to financial penaltiesand spontaneous disclosure of information to foreign tax officials, or could be struck from the register of companies, in related jurisdictions. Any of the foregoingcould be disruptive to our business and could have a material adverse effect on our business, financial conditions and operating results. We do not know: if the E.U. will once again add the Marshall Islands or Malta to the list of non-cooperative jurisdictions; how quickly the E.U. would react to anychanges in legislation of the Marshall Islands or Malta; or how E.U. banks or other counterparties will react while we or any of our subsidiaries remain as entitiesorganized and existing under the laws of listed countries. The effect of the E.U. list of non-cooperative jurisdictions, and any noncompliance by us with anylegislation adopted by applicable countries to achieve removal from the list, including economic substance regulations, could have a material adverse effect on ourbusiness, financial conditions and operating results. It may be difficult to serve us with legal process or enforce judgments against us, our directors or our management. Our business is operated primarily from our offices in Greece. In addition, a majority of our directors and officers are non-residents of the United States, and all ofour assets and a substantial portion of the assets of these non-residents are located outside the United States. As a result, it may be difficult or impossible for you tobring an action against us or against these individuals in the United States if you believe that your rights have been infringed under securities laws or otherwise. Youmay also have difficulty enforcing, both within and outside of the United States, judgments you may obtain in the United States courts against us or these persons inany action, including actions based upon the civil liability provisions of United States federal or state securities laws. There is also substantial doubt that the courts ofthe Marshall Islands or Greece would enter judgments in original actions brought in those courts predicated on United States federal or state securities laws. The international nature of our operations may make the outcome of any bankruptcy proceedings difficult to predict. We redomiciled into the Marshall Islands and our subsidiaries are incorporated under the laws of the Marshall Islands or Malta, we have limited operations in theUnited States and we maintain limited assets, if any, in the United States. Consequently, in the event of any bankruptcy, insolvency, liquidation, dissolution,reorganization or similar proceeding involving us or any of our subsidiaries, bankruptcy laws other than those of the United States could apply. The Marshall Islandsdoes not have a bankruptcy statute or general statutory mechanism for insolvency proceedings. If we become adebtor under U.S. bankruptcy law, bankruptcy courts in the United States may seek to assert jurisdiction over all of our assets, wherever located, including propertysituated in other countries. There can be no assurance, however, that we would become a debtor in the United States, or that a U.S. bankruptcy court would accept, orbe entitled to accept, jurisdiction over such a bankruptcy case, or that courts in other countries that have jurisdiction over us and our operations would recognize aU.S. bankruptcy court’s jurisdiction if any other bankruptcy court would determine it had jurisdiction. These factors may delay or prevent us from enteringbankruptcy in the United States and may affect the ability of our shareholders to receive any recovery following our bankruptcy. A cyber-attack could materially disrupt our business. We rely on information technology systems and networks in our operations and administration of our business. Information systems are vulnerable to securitybreaches by computer hackers and cyber terrorists. We rely on industry accepted security measures and technology to securely maintain confidential and proprietaryinformation maintained on our information systems. However, these measures and technology may not adequately prevent security breaches. Our business operationscould be targeted by individuals or groups seeking to sabotage or disrupt our information technology systems and networks, or to steal data. A successful cyber-attackcould materially disrupt our operations, including the safety of our operations, or lead to unauthorized release of information or alteration of information in oursystems. Any such attack or other breach of our information technology systems could have a material adverse effect on our business and results of operations. Inaddition, the unavailability of the information systems or the failure of these systems to perform as anticipated for any reason could disrupt our business and couldresult in decreased performance and increased operating costs, causing our business and results of operations to suffer. Any significant interruption or failure of ourinformation systems or any significant breach of security could adversely affect our business and results of operations. Most recently, the escalation in conflictbetween Russia and Ukraine has been accompanied by cyber-attacks against the Ukrainian government and other countries in the region. It is possible that theseattacks could have collateral effects on additional critical infrastructure and financial institutions globally, which could adversely affect our operations. It is difficultto assess the likelihood of such threat and any potential impact at this time. 42  Table of Contents Item 4. Information on the Company A. History and Development of the Company We originally incorporated as Globus Maritime Limited on July 26, 2006 pursuant to the Companies (Jersey) Law 1991 (as amended), and began operations inSeptember 2006. Following the conclusion of our initial public offering on June 1, 2007, our common shares were listed on the London Stock Exchange’s AlternativeInvestment Market, or AIM, under the ticker “GLBS.L.” On July 29, 2010, we effected a 1-4 reverse stock split, with our issued share capital resulting in 7,240,852common shares of $0.004 each. (These figures do not reflect the 1-4 reverse stock split which occurred in October 2016, the 1-10 reverse stock split which occurredin October 2018 or the 1-100 reverse stock split which occurred in October 2020.)On November 24, 2010, we redomiciled into the Marshall Islands pursuant to the BCA and a resale registration statement for our common shares was declaredeffective by the SEC. Once the resale registration statement was declared effective by the SEC, our common shares began trading on the Nasdaq Global Market underthe ticker “GLBS.” Our common shares were suspended from trading on the AIM on November 24, 2010 and were delisted from the AIM on November 26, 2010.On April 11, 2016, our common shares began trading on the Nasdaq Capital Market instead of the Nasdaq Global Market.On October 20, 2016, we effected a 1-4 reverse stock split which reduced the number of outstanding common shares from 10,510,741 to 2,627,674 shares(adjustments were made based on fractional shares). (These figures do not reflect the 1-10 reverse stock split which occurred in October 2018 or the 1-100 reversestock split which occurred in October 2020.)On October 15, 2018, we effected a 1-10 reverse stock split which reduced the number of outstanding common shares from 32,065,077 to 3,206,495 shares(adjustments were made based on fractional shares). (These figures do not reflect the 1-100 reverse stock split which occurred in October 2020.)In November 2018, we entered into a credit facility for up to $15 million with Firment Shipping Inc., a related party to us, for the purpose of financing our generalworking capital needs, which facility was amended and restated on May 8, 2020. The Firment Shipping Credit Facility was unsecured and remained available until itsfinal maturity date at October 31, 2021, as amended. We had the right to drawdown any amount up to $15 million or prepay any amount in multiples of $100,000.Any prepaid amount could have been re-borrowed. Interest on drawn and outstanding amounts was charged at 3.5% per annum until December 31, 2020, andthereafter at 7% per annum. No commitment fee was charged on the amounts remaining available and undrawn. Interest was payable the last day of a period of threemonths after the drawdown date, after this period in case of failure to pay any sum due a default interest of 2% per annum above the regular interest was charged.We had also the right, in our sole option, to convert in whole or in part the outstanding unpaid principal amount and accrued but unpaid interest under this Agreementinto common shares. The conversion price would have equaled the higher of (i) the average of the daily dollar volume-weighted average sale price for the commonstock on the Principal Market on any trading day during the period beginning at 9.30 a.m. New York City time and ending at 4.00 p.m. over the Pricing Periodmultiplied by 80%, where the “Pricing Period” equals the ten consecutive trading days immediately preceding the date on which the conversion notice was executedor (ii) $280.00. On July 27, 2020, the Company repaid the total outstanding principal and interest of the Firment Shipping Credit Facility of approximately $863,000.This facility expired on its terms on October 31, 2021. On March 13, 2019, the Company signed a securities purchase agreement with a private investor and on March 13, 2019 issued, for gross proceeds of $5 million, asenior convertible note (the “Convertible Note”) that was convertible into shares of the Company’s common stock, par value $0.004 per share. If not converted orredeemed beforehand pursuant to the terms of the Convertible Note, the Convertible Note was scheduled to mature on March 13, 2020, the first anniversary of itsissue, but its holder waived the Convertible Note’s maturity until March 13, 2021. The Convertible Note was issued in a transaction exempt from registration underthe Securities Act. The Convertible Note provided for interest to accrue at 10% annually, to be paid at maturity unless the Convertible Note was converted orredeemed pursuant to its terms beforehand. The interest could have been paid in common shares of the Company, if certain conditions described within theConvertible Note were met. The outstanding balance of the Convertible Note not previously converted into shares was fully repaid in June 2020. 43  Table of Contents On June 22, 2020, we completed a public offering of 34,285,714 units of the Company. Each unit consisted of one common share and one Class A Warrant topurchase one common share (a “Class A Warrant”), for $35 per unit. At the time of the closing, the underwriters exercised and closed a part of their over-allotmentoption, and purchased an additional 5,139,286 common shares and Class A Warrants to purchase 5,139,286 common shares. Upon the 1-100 reverse split whichoccurred in October 2020, the number of outstanding warrants was not adjusted, but the number of shares issuable upon exercise thereof and the price per share wasproportionately adjusted to reflect the split. The figures above do not reflect the 1-100 reverse stock split which occurred in October 2020. The exercise price of the Class A Warrants is $35 per whole share at any time after their original issuance up to the date that is five years after their original issuance.If a registration statement registering the issuance of the common shares underlying the warrants under the Securities Act is not effective or available, the holder may,in its sole discretion, elect to exercise the warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of commonshares determined according to the formula set forth in the warrant. We may be required to pay certain amounts as liquidated damages as specified in the warrants inthe event we do not deliver common shares upon exercise of the warrants within the time periods specified in the warrants. On June 30, 2020, we issued 458,500 of our common shares in a registered direct offering and 458,500 of June Private Placement (“PP”) Warrants in a concurrentprivate placement for a purchase price of $27 per common share and June PP Warrant. The exercise price of each June PP Warrant was initially $30 per share but inJuly 2020 was reduced to $18 per share. On July 21, 2020, we issued 833,333 of our common shares in a registered direct offering and 833,333 of July PP Warrants to purchase common shares in aconcurrent private placement for a purchase price of $18 per common share and July PP Warrant. The exercise price of each July PP Warrant is $18 per share. On December 9, 2020, we issued (a) 1,256,765 common shares, (b) pre-funded warrants to purchase 155,000 common shares, and (c) warrants (the “December 2020Warrants”) to purchase 1,270,587 common shares. The pre-funded warrants have all been exercised. No December 2020 Warrants have been exercised as of the datehereof, and may be exercised at any time prior to 5:00 PM New York time on June 9, 2026. The exercise price of the December 2020 Warrants was reduced from$8.50 per share to $6.25 per share on January 29, 2021. On January 29, 2021, we issued (a) 2,155,000 common shares, (b) pre-funded warrants to purchase 445,000 common shares, and (c) warrants (the “January 2021Warrants”) to purchase 1,950,000 common shares at an exercise price of $6.25 per share, which may be exercised at any time prior to 5:00 PM New York time onJuly 29, 2026. The pre-funded warrants were all exercised prior to the date of this annual report. No January 2021 Warrants have been exercised as of the date hereof. On February 17, 2021, we issued (a) 3,850,000 common shares, (b) pre-funded warrants to purchase 950,000 common shares, and (c) warrants (the “February 2021Warrants”) to purchase 4,800,000 common shares at an exercise price of $6.25 per share, which may be exercised at any time prior to 5:00 PM New York time onAugust 17, 2026. The pre-funded warrants have all been exercised. No February 2021 Warrants have been exercised as of the date hereof. On June 25, 2021, we issued (a) 8,900,000 common shares, (b) pre-funded warrants to purchase 1,100,000 common shares, and (c) warrants (the “June 2021Warrants”) to purchase 10,000,000 common shares at an exercise price of $5.00 per share, which may be exercised at any time prior to 5:00 PM New York time onDecember 25, 2026. The pre-funded warrants have all been exercised. No June 2021 Warrants have been exercised as the date hereof. Each of the June PP Warrants, July PP Warrants, December 2020 Warrants, January 2021 Warrants, February 2021 Warrants and June 2021 Warrants is exercisablefor a period of five and one-half years commencing on the date of issuance. The warrants are exercisable at the option of each holder, in whole or in part bydelivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased upon such exercise.If a registration statement registering the resale of the common shares underlying the private placement warrants under the Securities Act is not effective or availableat any time after the six month anniversary of the date of issuance of the private placement warrants, the holder may, in its sole discretion, elect to exercise the privateplacement warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of common shares determined according tothe formula set forth in the warrant. If a registration statement covering the issuance of the shares under the Securities Act is not effective or available at any timeafter the issuance of the December 2020 Warrants, January 2021 Warrants, February 2021 Warrants and June 2021 Warrants, the holder may, in its sole discretion,elect to exercise the such warrants through a cashless exercise, in which case the holder would receive upon such exercise the net number of common sharesdetermined according to the formula set forth in the warrant. If we do not issue the shares in a timely fashion, each warrant contains certain liquidated damagesprovisions. 44  Table of Contents Each of the warrants described above, other than the Class A Warrants, were issued pursuant to a securities purchase agreement and a placement agency agreement. From June 22, 2020 through to date, we issued 5,550 common shares pursuant to exercises of outstanding Class A Warrants. As of the date of this annual report, noJune PP Warrants, July PP Warrants, December 2020 Warrants, January 2021 Warrants, February 2021 Warrants or June 2021 Warrants have been exercised. On October 21, 2020, we effected a 1-100 reverse stock split which reduced the number of shares outstanding from 175,675,651 to 1,756,720 (adjustments weremade based on fractional shares). Unless otherwise noted, all historical share numbers, per share amounts, including common share, preferred shares and warrants,have been adjusted to give effect to this reverse split. On June 12, 2020, we entered into a stock purchase agreement and issued 50 of our newly designated Series B preferred shares, par value $0.001 per share, toGoldenmare Limited, a company controlled by our Chief Executive Officer, Athanasios Feidakis, in return for $150,000, which amount was settled by reducing, on adollar for dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. In July 2020, we issued an additional 250 of our Series B preferred shares to Goldenmare Limited in return for $150,000. The $150,000 was paid by reducing, on adollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. In addition, we increased the maximumvoting rights under the Series B preferred shares from 49.0% to 49.99%. In March 2021, we issued an additional 10,000 of our Series B preferred shares to Goldenmare Limited in return for $130,000, which was settled by reducing, on adollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. Each Series B preferred share entitles the holder thereof to 25,000 votes per share on all matters submitted to a vote of the shareholders of the Company, providedhowever, that no holder of Series B preferred shares may exercise voting rights pursuant to Series B preferred shares that would result in the aggregate voting powerof any beneficial owner of such shares and its affiliates (whether pursuant to ownership of Series B preferred shares, common shares or otherwise) to exceed 49.99%of the total number of votes eligible to be cast on any matter submitted to a vote of shareholders of the Company. To the fullest extent permitted by law, the holders ofSeries B preferred shares shall have no special voting or consent rights and shall vote together as one class with the holders of the common shares on all matters putbefore the shareholders. The Series B preferred shares are not convertible into common shares or any other security. They are not redeemable and have no dividendrights. Upon any liquidation, dissolution or winding up of the Company, the Series B preferred shares are entitled to receive a payment with priority over the commonshareholders equal to the par value of $0.001 per share. The Series B preferred shareholder has no other rights to distributions upon any liquidation, dissolution orwinding up of the Company. All issued and outstanding Series B preferred shares must be held of record by one holder, and the Series B preferred shares shallnot be transferred without the prior approval of our Board of Directors. Finally, in the event the Company (i) declares any dividend on its common shares, payable incommon shares, (ii) subdivides the outstanding common shares or (iii) combines the outstanding common shares into a smaller number of shares, there shall be aproportional adjustment to the number of outstanding Series B preferred shares. 45  Table of Contents Each issuance of Series B preferred shares to Goldenmare Limited was approved by an independent committee of the Board of Directors of the Company, which (ineach instance) received a fairness opinion from an independent financial advisor that the transaction was for a fair value. In March 2021, the Company prepaid $6.0 million of the Entrust loan facility, which represented all amounts that would otherwise come due during calendar year2021. As a result, after this pre-payment we had an aggregate debt outstanding of $31 million, gross of unamortized debt costs, from the Entrust Loan Facility. On May 10, 2021, the Company reached an agreement with CIT Bank N.A. for a loan facility of $34.25 million bearing interest at LIBOR plus a margin of 3.75%per annum. This loan facility is referred to as the CIT loan facility. The proceeds of this financing were used to repay the outstanding balance of the EnTrust LoanFacility. As of December 31, 2021, our issued and outstanding capital stock consisted of 20,582,301 common shares and 10,300 Series B preferred shares. Our executive office is located at the office of Globus Shipmanagement Corp., which we refer to as our Manager, at 128 Vouliagmenis Avenue, 3rd Floor, 166 74Glyfada, Attica, Greece. Our telephone number is +30 210 960 8300. Our registered agent in the Marshall Islands is The Trust Company of the Marshall Islands, Inc.and our registered address in the Marshall Islands is Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960. We maintain ourwebsite at www.globusmaritime.gr. Information that is available on or accessed through our website does not constitute part of, and is not incorporated by referenceinto, this annual report on Form 20-F. The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding usand other issuers that file electronically with the SEC at http://www.sec.gov. In October 2020, we purchased a 2015-built Kamsarmax dry bulk carrier for $18.4 million. The vessel was delivered on October 29, 2020 and was named GalaxyGlobe. Galaxy Globe was built at the Hudong-Zhonghua Shipyard in China and has a carrying capacity of 81,167 dwt.On June 9, 2021, we took delivery of the m/v “Diamond Globe”, a 2018-built Kamsarmax dry bulk carrier, through its subsidiary, Argo Maritime Limited, for apurchase price of $27 million financed with available cash. The m/v “Diamond Globe” was built at Jiangsu New Yangzi Shipbuilding Co., Ltd and has a carryingcapacity of 82,027 dwt. On July 20, 2021, we took delivery of the m/v “Power Globe”, a 2011-built Kamsarmax dry bulk carrier, through its subsidiary, Talisman Maritime Limited, for apurchase price of $16.2 million financed with available cash. The m/v “Power Globe” was built at Universal Shipbuilding Corporation in Japan and has a carryingcapacity of 80,655 dwt. On November 29, 2021, we took delivery of the m/v “Orion Globe”, a 2015-built Kamsarmax dry bulk carrier, through its subsidiary, Salaminia Maritime Limited,for a purchase price of $28.4 million financed with available cash. The m/v “Orion Globe” was built at Tsuneishi Zosen in Japan and has a carrying capacity of81,837 dwt. Our fleet is currently comprised of a total of nine dry bulk vessels consisting of four Kamsarmaxes, one Panamax and four Supramaxes. The weighted average age ofthe vessels we owned as of December 31, 2021 was 10.2 years, and their carrying capacity was 626,257 dwt. B. Business Overview We are an integrated dry bulk shipping company, providing marine transportation services on a worldwide basis. We own, operate and manage a fleet of dry bulkvessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally. We intend to grow our fleet through timely andselective acquisitions of modern vessels in a manner that we believe will provide an attractive return on equity and will be accretive to our earnings and cash flowbased on anticipated market rates at the time of purchase. There is no guarantee however, that we will be able to find suitable vessels to purchase or that such vesselswill provide an attractive return on equity or be accretive to our earnings and cash flow. 46  Table of Contents Our operations are managed by our Glyfada, Greece-based wholly owned subsidiary, Globus Shipmanagement Corp., which we refer to as our Manager, whichprovides in-house commercial and technical management for our vessels and provided consulting services for an affiliated ship-management company. Our Managerhas entered into a ship management agreement with each of our wholly owned vessel-owning subsidiaries to provide services that include managing day-to-dayvessel operations, such as supervising the crewing, supplying, maintaining of vessels and other services. The following table presents information concerning the vessels we own: Vessel Year Built Flag Direct Owner Shipyard Vessel Type Delivery Date CarryingCapacity(dwt)m/v RiverGlobe 2007 MarshallIslands Devocean Maritime Ltd. YangzhouDayang Supramax December 2007 53,627m/v SkyGlobe 2009 MarshallIslands Domina Maritime Ltd. Taizhou Kouan Supramax May 2010 56,855m/v StarGlobe 2010 MarshallIslands Dulac Maritime S.A. Taizhou Kouan Supramax May 2010 56,867m/v MoonGlobe 2005 MarshallIslands Artful Shipholding S.A. Hudong-Zhonghua Panamax June 2011 74,432 m/v SunGlobe 2007 Malta Longevity MaritimeLimited Tsuneishi Cebu Supramax September 2011 58,790m/v GalaxyGlobe 2015 MarshallIslands Serena MaritimeLimited Hudong-Zhonghua Kamsarmax October 2020 81,167 m/vDiamondGlobe 2018 MarshallIslands Argo Maritime Limited Jiangsu NewYangziShipbuildingCo. Kamsarmax June 2021 82,027m/v PowerGlobe 2011 MarshallIslands Talisman MaritimeLimited UniversalShipbuildingCorporation Kamsarmax July 2021 80,655 m/v OrionGlobe 2015 MarshallIslands Salaminia MaritimeLimited Tsuneishi Zosen Kamsarmax November 2021 81,837 Total: 626,257 We own each of our vessels through separate, wholly owned subsidiaries, eight of which are incorporated in the Marshall Islands, and one of which is incorporated inMalta. All of our Supramax vessels are geared. Geared vessels can operate in ports with minimal shore-side infrastructure. Due to the ability to switch betweenvarious dry bulk cargo types and to service a wider variety of ports, the day rates for geared vessels tend to have a premium. Employment of our Vessels Our long-term strategy to maximize the value of our fleet is to employ our vessels on a mix of all types of charter contracts, including in the short-term or spot marketand on bareboat charters and time charters. We believe this strategy provides the cash flow stability, reduced exposure to market downturns and high utilization ratesof the charter market, while at the same time enabling us to benefit from periods of increasing short-term or spot market rates. But our short-term strategy at anygiven point in time is dictated by a multitude of factors and the chartering opportunities before us. We may, for example, seek to employ a greater portion of our fleeton the short-term or spot market or on time charters with longer durations, should we believe it to be in our best interests. We generally prefer spot or short-termcontracts in order to be versatile, to be able to move quickly to capture a market upswing, and to be more selective with the cargos we carry. Long term charters,however, provide desirable cash flow stability, albeit at the cost of missing upswings in cargo rates. Accordingly, our mix between short-term or spot charters andlonger-term charters changes from time-to-time. When our ships are not all on the short-term or spot market, we generally seek to stagger the expiration dates of ourcharters to reduce exposure to volatility in the shipping cycle when our vessels come off of charter. We also continually monitor developments in the dry bulkshipping industry and, subject to market demand, will adjust the number of vessels on charters and the charter periods for our vessels according to market conditions. 47  Table of Contents We and our Manager have developed relationships with a number of international charterers, vessel brokers, financial institutions, insurers and shipbuilders. We havealso developed a network of relationships with vessel brokers who help facilitate vessel charters and acquisitions. On the date of the filing of this annual report on 20-F, all of our vessels were employed on time charters. Each of our vessels travels across the world and not on any particular route. The charterers of our vessels, whether time, bareboat or on the spot market, select thelocations to which our vessels travel. Time Charter A time charter is a contract for the use of a vessel for a fixed period of time at a specified daily rate. Under a time charter, the vessel owner provides crewing,insuring, repairing and maintenance and other services related to the vessel’s operation, the cost of which is included in the daily rate, and the customer is responsiblefor substantially all of the vessel voyage costs, including the cost of bunkers (fuel oil) and canal and port charges. The owner also pays commissions typically rangingfrom 0% to 6.25% of the total daily charter hire rate of each charter to unaffiliated ship brokers and to in-house brokers associated with the charterer, depending onthe number of brokers involved with arranging the charter. Basic Hire Rate and Term “Basic hire rate” refers to the basic payment from the customer for the use of the vessel. The hire rate is generally payable semi-monthly or 15 days, in advance, inU.S. dollars as specified in the charter. Off-hire When the vessel is “off-hire,” the charterer generally is not required to pay the basic hire rate, and we are responsible for all costs. Prolonged off-hire may lead tovessel substitution or termination of the time charter. A vessel generally will be deemed off-hire if there is a loss of time due to, among other things, operationaldeficiencies; drydocking for examination or painting the bottom; equipment breakdowns; damages to the hull; or similar problems. Ship Management and Maintenance We are responsible for the technical management of the vessel and for maintaining the vessel, periodic drydocking, cleaning and painting and performing workrequired by regulations. Globus Shipmanagement provides the technical, commercial and day-to-day operational management of our vessels. Technical managementincludes crewing, maintenance, repair and drydockings. During the 2021 year, we paid Globus Shipmanagement $700 per vessel per day. All fees payable to GlobusShipmanagement for vessels that we own are eliminated upon consolidation of our accounts. Termination We are generally entitled to suspend performance under the time charter if the customer defaults in its payment obligations. Either party may terminate the charter inthe event of war in specified countries. Commissions During the year ended December 31, 2021, we paid commissions ranging from 5% to 6.25% relevant to each time charter agreement then in effect. Bareboat Charter A bareboat charter is a contract pursuant to which the vessel owner provides the vessel to the charterer for a fixed period of time at a specified daily rate, and thecharterer provides for all of the vessel’s operating expenses. The charterer undertakes to maintain the vessel in a good state of repair and efficient operating conditionand drydock the vessel during this period as per the classification society requirements. 48  Table of Contents Redelivery Upon the expiration of a bareboat charter, typically the charterer must redeliver the vessel in as good structure, state, condition and class as that in which the vesselwas delivered. Ship Management and Maintenance Under a bareboat charter, the charterer is responsible for all of the vessel’s operating expenses, including crewing, insuring, maintaining and repairing the vessel, anydrydocking costs, and the stores, lube oils and communication expenses. Under a bareboat charter, the charterer is also responsible for the voyage costs, and generallyassumes all risk of operation. The charterer covers the costs associated with the vessel’s special surveys and related drydocking falling within the charter period. Commissions Commissions on bareboat charters typically range from 0% to 3.75%. Our Customers We seek to charter our vessels to customers who we perceive as creditworthy thereby minimizing the risk of default by our charterers. We also try to select charterersdepending on the type of product they want to carry and the geographical areas in which they tend to trade. Our assessment of a charterer’s financial condition and reliability is an important factor in negotiating employment for our vessels. We generally charter our vesselsto operators, trading houses (including commodities traders), shipping companies and producers and government-owned entities and generally avoid chartering ourvessels to companies we believe to be speculative or undercapitalized entities. Since our operations began in September 2006, our customers have included HyundaiGlovis Co. Ltd., Dampskibsselskabet NORDEN A/S, ED & F Man Shipping Limited, Transgrain and Far Eastern Silo and Shipping (Panama) S.A. In addition,during the periods when some of our vessels were trading on the spot market, they have been chartered to charterers such as Cargill International SA, OldendorffGmbH & Co KG, Western Bulk Pte. Ltd., Ausca Shipping HK Limited and others, thus expanding our customer base. Competition Our business fluctuates in line with the main patterns of trade of the major dry bulk cargoes and varies according to changes in the supply and demand for theseitems. We operate in markets that are highly competitive and based primarily on supply and demand. We compete for charters on the basis of price, vessel location,size, age and condition of the vessel, as well as on our reputation as an owner and operator. We compete with other owners of dry bulk vessels in the Panamax,Supramax and Kamsarmax dry bulk vessels, but we also compete with owners for the purchase and sale of vessels of all sizes. Those competitors may be bettercapitalized or have more liquidity than we do. In this period of significantly depressed pricing and over capacity, better liquidity may be a major competitiveadvantage, and we believe that some of our competitors may be better capitalized than we are. Ownership of dry bulk vessels is highly fragmented. It is likely that we will face substantial competition for long-term charter business from a number of experiencedcompanies. Many of these competitors will have larger dry bulk vessel fleets and greater financial resources than us, which may make them more competitive. It isalso likely that we will face increased numbers of competitors entering into our transportation sectors, including in the dry bulk sector. Many of these competitorshave strong reputations and extensive resources and experience. Increased competition may cause greater price competition, especially for long-term charters. Webelieve that no single competitor has a dominant position in the markets in which we compete. 49  Table of Contents The process for obtaining longer term time charters generally involves a lengthy and intensive screening and vetting process and the submission of competitive bids.In addition to the quality and suitability of the vessel, longer term shipping contracts may be awarded based upon a variety of other factors relating to the vesseloperator, including: Øenvironmental, health and safety record; Øcompliance with regulatory industry standards; Øreputation for customer service, technical and operating expertise; Øshipping experience and quality of vessel operations, including cost-effectiveness; Øquality, experience and technical capability of crews; Øthe ability to finance vessels at competitive rates and overall financial stability; Øenvironmental, social, and governance criteria; Ørelationships with shipyards and the ability to obtain suitable berths; Øconstruction management experience, including the ability to procure on-time delivery of new vessels according to customer specifications; Øwillingness to accept operational risks pursuant to the charter, such as allowing termination of the charter for force majeure events; and Øcompetitiveness of the bid in terms of overall price. As a result of these factors, we may be unable to expand our relationships with existing customers or obtain new customers for long-term time charters on a profitablebasis, if at all. However, even if we are successful in employing our vessels under longer term charters, our vessels will not be available for trading on the short-termor spot market during an upturn in the market cycle, when short-term or spot trading may be more profitable. If we cannot successfully employ our vessels inprofitable charters, our results of operations and operating cash flow could be materially adversely affected. The Dry Bulk Shipping Industry The world dry bulk fleet is generally divided into six major categories, based on a vessel’s cargo carrying capacity. These categories consist of: Handysize,Handymax/Supramax, Panamax, Kamsarmax, Capesize and Very Large Ore Carrier. Ø Handysize. Handysize vessels have a carrying capacity of up to 39,999 dwt. These vessels are primarily involved in carrying minor bulk cargoes.Increasingly, vessels of this type operate on regional trading routes, and may serve as trans-shipment feeders for larger vessels. Handysize vessels are well suited forsmall ports with length and draft restrictions. Their cargo gear enables them to service ports lacking the infrastructure for cargo loading and unloading. Ø Handymax/Supramax. Handymax vessels have a carrying capacity of between 40,000 and 59,999 dwt. These vessels operate on a large number ofgeographically dispersed global trade routes, carrying primarily iron ore, coal, grains and minor bulks. Within the Handymax category there is also a sub-sectorknown as Supramax. Supramax bulk vessels are vessels between 50,000 to 59,999 dwt, normally offering cargo loading and unloading flexibility with on-boardcranes, while at the same time possessing the cargo carrying capability approaching conventional Panamax bulk vessels. Hence, the earnings potential of a Supramaxdry bulk vessel, when compared to a conventional Handymax vessel of 45,000 dwt, is greater. Ø Panamax. Panamax vessels have a carrying capacity of between 60,000 and 79,999 dwt. These vessels carry coal, grains, and, to a lesser extent, minorbulks, including steel products, forest products and fertilizers. The term “Panamax” refers to vessels that were able to pass through the Panama Canal before thePanama Canal was expanded in June 2016 (to allow vessels of up to 120,000 dwt, a size sometimes referred to as New Panamax). Panamax vessels are more versatilethan larger vessels. Ø Kamsarmax. Kamsarmax vessels typically have a carrying capacity of between 80,000 and 109,999 dwt. These vessels tend to be shallower and have alarger beam than a standard Panamax vessel with a higher cubic capacity. They have been designed specifically for loading high cubic cargoes from draught restrictedports. The term Kamsarmax stems from Port Kamsar in Guinea, where large quantities of bauxite are exported from a port with only 13.5 meter draught and a 229meter length overall restriction, but no beam restriction. Ø Capesize. Capesize vessels have carrying capacities of between 110,000 and 199,999 dwt. Only the largest ports around the world possess the infrastructureto accommodate vessels of this size. Capesize vessels are mainly used to transport iron ore or coal and, to a lesser extent, grains, primarily on long-haul routes. Ø VLOC. Very large ore carriers are in excess of 200,000 dwt. VLOCs are built to exploit economies of scale on long-haul iron ore routes. 50  Table of Contents The supply of dry bulk shipping capacity, measured by the amount of suitable vessel tonnage available to carry cargo, is determined by the size of the existingworldwide dry bulk fleet, the number of new vessels on order, the scrapping of older vessels and the number of vessels out of active service (i.e., laid up or otherwisenot available for hire). In addition to prevailing and anticipated freight rates, factors that affect the rate of newbuilding, scrapping and laying-up include newbuildingprices, secondhand vessel values in relation to scrap prices, costs of bunkers and other voyage expenses, costs associated with classification society surveys, normalmaintenance and insurance coverage, the efficiency and age profile of the existing fleets in the market and government and industry regulation of marinetransportation practices. The supply of dry bulk vessels is not only a result of the number of vessels in service, but also the operating efficiency of the fleet. Dry bulktrade is influenced by the underlying demand for the dry bulk commodities which, in turn, is influenced by the level of worldwide economic activity. Generally,growth in gross domestic product and industrial production correlate with peaks in demand for marine dry bulk transportation services. Dry bulk vessels are one of the most versatile elements of the global shipping fleet in terms of employment alternatives. They seldom operate on round trip voyageswith high ballasting times. Rather, they often participate in triangular or multi-leg voyages. Charter Rates In the time charter market, rates vary depending on the length of the charter period and vessel specific factors such as age, speed, size and fuel consumption. In thevoyage charter market, rates are influenced by cargo size, commodity, port dues and canal transit fees, as well as delivery and redelivery regions. In general, a largercargo size is quoted at a lower rate per ton than a smaller cargo size. Routes with costly ports or canals generally command higher rates. Voyages loading from a portwhere vessels usually discharge cargo, or discharging from a port where vessels usually load cargo, are generally quoted at lower rates. This is because such voyagesgenerally increase vessel efficiency by reducing the unloaded portion (or ballast leg) that is included in the calculation of the return charter to a loading area. Within the dry bulk shipping industry, the freight rate indices issued by the Baltic Exchange in London are the references most likely to be monitored. Thesereferences are based on actual charter hire rates under charters entered into by market participants as well as daily assessments provided to the Baltic Exchange by apanel of major shipbrokers. The Baltic Exchange, an independent organization comprised of shipbrokers, shipping companies and other shipping players, providesdaily independent shipping market information and has created freight rate indices reflecting the average freight rates (that incorporate actual business concluded aswell as daily assessments provided to the exchange by a panel of independent shipbrokers) for the major bulk vessel trading routes. These indices include the BalticPanamax Index, the index with the longest history and, more recently, the Baltic Capesize Index. Charter (or hire) rates paid for dry bulk vessels are generally a function of the underlying balance between vessel supply and demand. Over the past 25 years, drybulk cargo charter rates have passed through cyclical phases and changes in vessel supply and demand have created a pattern of rate “peaks” and “troughs.”Generally, spot/voyage charter rates will be more volatile than time charter rates, as they reflect short term movements in demand and market sentiment. The BDIremained significantly depressed from 2008-2018. In 2019 the BDI was volatile and ranged from 595 on February 11, 2019 to as high as 2,518 on September 3, 2019.In 2020, the BDI ranged from a low of 393 on May 14, 2020 to a high of 2,097 on October 6, 2020. In 2021, the BDI rose to a high of 5,650 on October 7, 2021 andhad a low of 1,303 on February 10, 2021. During calendar year 2022 to date, the BDI has ranged from a high of 2,727 (on March 14, 2022) to a low of 1,296 (onJanuary 26, 2022). Vessel Prices New-building vessel prices generally fell as part of the sudden and steep decline in freight rates after August 2008, and continued to gradually decline, but started toincrease in 2021 (although not at the 2008 levels). In broad terms, the secondhand market is affected by both the newbuilding prices as well as the overall freight expectations and sentiment observed at any given time.As with newbuild prices, secondhand vessel values have continued to gradually decline since August 2008 until 2021, when they started to increase. 51  Table of Contents Seasonality Our fleet consists of dry bulk vessels that operate in markets that have historically exhibited seasonal variations in demand and, as a result, in charter rates. The drybulk sector is typically stronger in the fall and winter months in anticipation of increased consumption of coal and other raw materials in the northern hemisphereduring the winter months. Such seasonality will affect the rates we obtain on the vessels in our fleet that operate on the short-term or spot market. Permits and Authorizations We are required by various governmental and quasi-governmental agencies to obtain certain permits, licenses and certificates with respect to our vessels. The kindsof permits, licenses and certificates required depend upon several factors, including the commodity transported, the waters in which the vessel operates, thenationality of the vessel’s crew and the age of a vessel. We have been able to obtain all permits, licenses and certificates currently required to permit our vessels tooperate. Additional laws and regulations, environmental or otherwise, may be adopted which could limit our ability to do business or increase our cost of doingbusiness. Disclosure of Activities pursuant to Section 13(r) of the U.S. Securities Exchange Act of 1934 Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the Exchange Act. Section 13(r) requires an issuer to disclosewhether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran. Disclosure is required even where the activities,transactions or dealings are conducted in compliance with applicable law. Provided in this section is information concerning the activities of us and our affiliates thatoccurred in 2021 and which we believe may be required to be disclosed pursuant to Section 13(r) of the Exchange Act.In 2021, our vessels did not call on any port call in Iran. Our charter party agreements for our vessels restrict the charterers from calling in Iran in violation of U.S. sanctions, or carrying any cargo to Iran which is subject toU.S. sanctions. However, there can be no assurance that our vessels will not, from time to time in the future on charterer's instructions, perform voyages which wouldrequire disclosure pursuant to Exchange Act Section 13(r). January 16, 2016 was “implementation day” under the Joint Comprehensive Plan of Action (“JCPOA”) among the P5+1 (China, France, Germany, Russia, the UnitedKingdom, and the United States), the E.U., and Iran to ensure that Iran’s nuclear program will be exclusively peaceful, and the United States and the E.U. liftednuclear-related sanctions on Iran. However, in 2018, President Trump withdrew the United States from the JCPOA, resulting in the complete reimposition of U.S.sanctions. As of now, the EU and other parties to the JCPOA have not withdrawn, and the EU and United Nations sanctions that were lifted have not been reimposed.We intend to continue to charter our vessels to charterers and sub-charterers, including, as the case may be, Iran-related parties, who may make, or may sub-let thevessels to sub-charterers who may make, port calls toIran, so long as the activities continue to be permissible and not sanctionable under applicable U.S. and E.U. and other applicable laws (including U.S. “secondarysanctions”). Inspection by Classification Societies Every oceangoing vessel must be “classed” by a classification society. The classification society certifies that the vessel is “in class,” signifying that the vessel hasbeen built and maintained in accordance with the rules of the classification society and complies with applicable rules and regulations of the vessel’s country ofregistry and the international conventions of which that country is a member. In addition, where surveys are required by international conventions and correspondinglaws and ordinances of a flag state, the classification society will undertake them on application or by official order, acting on behalf of the authorities concerned. The classification society also undertakes on request other surveys and checks that are required by regulations and requirements of the flag state. These surveys aresubject to agreements made in each individual case and/or to the regulations of the country concerned. For maintenance of the class certification, regular andextraordinary surveys of hull, machinery, including the electrical plant, and any special equipment classed are required to be performed as follows: 52  Table of Contents ØAnnual Surveys. For seagoing vessels, annual surveys are conducted for the hull and the machinery, including the electrical plant and where applicable forspecial equipment classed, at intervals of 12 months from the date of commencement of the class period indicated in the certificate. ØIntermediate Surveys. Extended annual surveys are referred to as intermediate surveys and typically are conducted two and one-half years aftercommissioning and each class renewal. Intermediate surveys may be carried out on the occasion of the second or third annual survey. ØClass Renewal Surveys. Class renewal surveys, also known as special surveys, are carried out for the vessel’s hull, machinery, including the electrical plant,and for any special equipment classed, at the intervals indicated by the character of classification for the hull. At the special survey the vessel is thoroughlyexamined, including audio-gauging to determine the thickness of the steel structures. Should the thickness be found to be less than class requirements, theclassification society would prescribe steel renewals. The classification society may grant a one-year grace period for completion of the special survey.Substantial amounts of money may have to be spent for steel renewals to pass a special survey if the vessel experiences excessive wear and tear. In lieu ofthe special survey every four or five years, depending on whether a grace period was granted, a shipowner has the option of arranging with theclassification society for the vessel’s hull or machinery to be on a continuous survey cycle, in which every part of the vessel would be surveyed within afive-year cycle. At an owner’s application, the surveys required for class renewal may be split according to an agreed schedule to extend over the entireperiod of class. This process is referred to as continuous class renewal. All areas subject to survey as defined by the classification society are required to be surveyed at least once per class period, unless shorter intervals between surveysare prescribed elsewhere. The period between two subsequent surveys of each area must not exceed five years. Most insurance underwriters make it a condition for insurance coverage that a vessel be certified as “in class” by a classification society that is a member of theInternational Association of Classification Societies. All the vessels that we own and operate are certified as being “in class” by Nippon Kaiji Kyokai (Class NK),DNV GL, Lloyds or Bureau Veritas. Typically, all new and secondhand vessels that we purchase must be certified “in class” prior to their delivery under our standardpurchase contracts and memoranda of agreement. Under our standard purchase contracts, unless negotiated otherwise, if the vessel is not certified on the date ofclosing, we would have no obligation to take delivery of the vessel. Although we may not have an obligation to accept any vessel that is not certified on the date ofclosing, we may determine nonetheless to purchase the vessel, should we determine it to be in our best interests. If we do so, we may be unable to charter such vesselafter we purchase it until it obtains such certification, which could increase our costs and affect the earnings we anticipate from the employment of the vessel. Vessels are drydocked during intermediate and special surveys for repairs of their underwater parts. If “in water survey” notation is assigned, the vessel owner has theoption of carrying out an underwater inspection of the vessel in lieu of drydocking, subject to certain conditions. In the event that an “in water survey” notation isassigned and other requirements as stipulated by class rules permit, dry docking required as part of an Intermediate Survey may be carried out “in lieu” therebyachieving a higher utilization for the relevant vessel. As per rules each vessel must dry dock twice within a 5 year cycle. One drydock must coincide with the specialsurvey while the time distance between two dry docks must not exceed 36 months.We budget 20 days per drydocking per vessel. Actual length will vary based on the condition of each vessel, shipyard schedules and other factors. 53  Table of Contents The following table lists the dates by which we expect to carry out the next drydockings and special surveys for the vessels in our fleet: Vessel NameDrydockingSpecial SurveyClassification Societym/v River GlobeDecember 2022December 2022Class NKm/v Sky GlobeJanuary 2023November 2024Class NKm/v Star GlobeAugust 2023May 2025DNV GLm/v Moon GlobeDecember 2023November 2025Class NKm/v Sun GlobeAugust 2022August 2022Bureau Veritasm/v Galaxy GlobeOctober 2023October 2025Class NKm/v Power GlobeOctober 2024June 2026Class NKm/v Orion GlobeApril 2023March 2025Class NKm/v Diamond GlobeMay 2023May 2023Lloyds Following an incident or a scheduled survey, if any defects are found, the classification surveyor will issue a “recommendation” or “condition of class” which mustbe rectified by the vessel owner within the prescribed time limits. Risk Management and Insurance General The operation of any cargo vessel embraces a wide variety of risks, including the following: Ømechanical failure or damage, for example by reason of the seizure of a main engine crankshaft; Øcargo loss, for example arising from hull damage; Øpersonal injury, for example arising from collision or piracy; Ølosses due to piracy, terrorist or war-like action between countries; Øenvironmental damage, for example arising from marine disasters such as oil spills and other environmental mishaps; Øphysical damage to the vessel, for example by reason of collision; Ødamage to other property, for example by reason of cargo damage or oil pollution; and Øbusiness interruption, for example arising from strikes and political or regulatory change. The value of such losses or damages may vary from modest sums, for example for a small cargo shortage damage claim, to catastrophic liabilities, for examplearising out of a marine disaster, such as a serious oil or chemical spill, which may be virtually unlimited. While we maintain the traditional range of marine andliability insurance coverage for our fleet (hull and machinery insurance, war risks insurance and protection and indemnity coverage) in amounts and to extents thatwe believe are prudent to cover normal risks in our operations, we cannot insure against all risks, and we cannot be assured that all covered risks are adequatelyinsured against. Furthermore, there can be no guarantee that any specific claim will be paid by the insurer or that it will always be possible to obtain insurancecoverage at reasonable rates. Any uninsured or under-insured loss could harm our business and financial condition. Hull and Machinery and War Risks The principal coverages for marine risks (covering loss or damage to the vessels, rather than liabilities to third parties) are hull and machinery insurance and war riskinsurance. These address the risks of the actual or constructive total loss of a vessel and accidental damage to a vessel’s hull and machinery, for example fromrunning aground or colliding with another ship. These insurances provide coverage which is limited to an agreed “insured value” which, as a matter of policy, isnever less than the particular vessel’s fair market value. Reimbursement of loss under such coverage is subject to policy deductibles that vary according to the vesseland the nature of the coverage. Hull and machinery deductibles may, for example, be between $75,000 and $150,000 per incident whereas the war risks insurance hasa more modest incident deductible of, for example, $30,000. 54  Table of Contents Protection and Indemnity Insurance Protection and indemnity insurance is a form of mutual indemnity insurance provided by mutual marine protection and indemnity associations, or “P&I Clubs,”formed by vessel owners to provide protection from large financial loss to one club member by contribution towards that loss by all members. Each of the vessels that we operate is entered in the Gard P&I (Bermuda) Ltd. which we refer to as the Club, for third party liability marine insurance coverage. TheClub is a mutual insurance vehicle. As a member of the Club, we are insured, subject to agreed deductibles and our terms of entry, for our legal liabilities andexpenses arising out of our interest in an entered ship, out of events occurring during the period of entry of the ship in the Club and in connection with the operationof the ship, against specified risks. These risks include liabilities arising from death of crew and passengers, loss or damage to cargo, collisions, property damage, oilpollution and wreck removal. The Club benefits from its membership in the International Group of P&I Clubs, or the International Group, for its main reinsurance program, and maintains aseparate complementary insurance program for additional risks. The Club’s policy year commences each February. The mutual calls are levied by way of Estimated Total Premiums, or ETP, and the amount of the final installmentof the ETP varies in accordance with the actual total premium ultimately required by the Club for a particular policy year. Members have a liability to paysupplementary calls which may be levied by the Club if the ETP is insufficient to cover the Club’s outgoings in a policy year. Cover per claim is generally limited to an unspecified sum, being the amount available from reinsurance plus the maximum amount collectable from members of theInternational Group by way of overspill calls. Certain exceptions apply, including a $1.0 billion limit on claims in respect of oil pollution, a $3.0 billion limit oncover for passenger and crew claims and a sub-limit of $2.0 billion for passenger claims. To the extent that we experience either a supplementary or an overspill call, our policy is to expense such amounts. To the extent that the Club depends on funds paidin calls from other members in our industry, if there were an industry-wide slow-down, other members might not be able to meet the call and we might not receive apayout in the event we made a claim on a policy. Uninsured Risks Not all risks are insured and not all risks are insurable. The principal insurable risks which nevertheless remain uninsured across our fleet are “loss of hire” and“strikes.” We generally do not insure these risks because we regard the costs as disproportionate. These insurances provide, subject to a deductible, a limitedindemnity for hire that is not receivable by the shipowner for reasons set forth in the policy. For example, loss of hire risk may be covered on a 14/90/90 basis, with a14 days deductible, 90 days cover per incident and a 90-day overall limit per vessel per year. Should a vessel on time charter, where the vessel is paid a fixed hire dayby day, suffer a serious mechanical breakdown, the daily hire will no longer be payable by the charterer. The purpose of the loss of hire insurance is to secure the lossof hire during such periods. Environmental and Other Regulations Sources of Applicable Rules and Standards Shipping is one of the world’s most heavily regulated industries, and it is subject to many industry standards. Government regulation significantly affects theownership and operation of vessels. These regulations consist mainly of rules and standards established by international conventions, but they also include national,state and local laws and regulations in force in jurisdictions where vessels may operate or are registered, and which may be more stringent than international rules andstandards. This is the case particularly in the United States and, increasingly, in Europe. A variety of governmental and private entities subject vessels to both scheduled and unscheduled inspections. These entities include local port authorities (the U.S.Coast Guard, harbor masters or equivalent entities), classification societies, flag state administration (country vessel of registry), and charterers, particularly terminaloperators. Certain of these entities require vessel owners to obtain permits, licenses and certificates for the operation of their vessels. Failure to maintain necessarypermits or approvals could require a vessel owner to incur substantial costs or temporarily suspend operation of one or more of its vessels. 55  Table of Contents Heightened levels of environmental and quality concerns among insurance underwriters, regulators and charterers continue to lead to greater inspection and safetyrequirements on all vessels and may accelerate the scrapping of older vessels throughout the industry. Increasing environmental concerns have created a demand forvessels that conform to stricter environmental standards. Vessel owners are required to maintain operating standards for all vessels that will emphasize operationalsafety, quality maintenance, continuous training of officers and crews and compliance with U.S. and international regulations. Because laws and regulations arefrequently changed and may impose increasingly stricter requirements, we cannot predict the ultimate cost of complying with these requirements, or the impact ofthese requirements on the resale value or useful lives of our vessels. In addition, a future serious marine incident that causes significant adverse environmental impactcould result in additional legislation or regulation that could negatively affect our profitability. The following is a non-exhaustive overview of certain material conventions, laws and regulations that affect our business and the operation of our vessels. It is not acomprehensive summary of all the conventions, laws and regulations to which we are subject. The IMO is a United Nations agency setting standards and creating a regulatory framework for the shipping industry and has negotiated and adopted a number ofinternational conventions. These fall into two main categories, consisting firstly of those concerned generally with vessel safety and security standards, and secondlyof those specifically concerned with measures to prevent pollution from vessels. Ship Safety Regulation A primary international safety convention is the Safety of Life at Sea Convention of 1974, as amended, or SOLAS, including the regulations and codes of practicethat form part of its regime. Much of SOLAS is not directly concerned with preventing pollution, but some of its safety provisions are intended to prevent pollutionas well as promote safety of life and preservation of property. These regulations have been and continue to be regularly amended as new and higher safety standardsare introduced with which we are required to comply. An amendment of SOLAS introduced in 1993 the International Management Code for the Safe Operation of Ships and for Pollution Prevention, or ISM Code, whichhas been mandatory since July 1998. The purpose of the ISM Code is to provide an international standard for the safe management and operation of vessels and forpollution prevention. Under the ISM Code, the party with operational control of a vessel is required to develop, implement and maintain an extensive safetymanagement system that includes, among other things, the adoption of a safety and environmental protection policy setting forth instructions and procedures foroperating its vessels safely and protecting the environment and describing procedures for responding to emergencies. The ISM Code requires that vessel operatorsobtain a Safety Management Certificate for each vessel they operate. This certificate issued after verification that the vessel’s operator and its shipboard managementoperate in accordance with the approved safety management system and evidences that the vessel complies with the requirements of the ISM Code. No vessel canobtain a Safety Management Certificate unless its operator has been awarded a document of compliance, issued by the respective flag state for the vessel, under theISM Code. Another amendment of SOLAS, made after the terrorist attacks in the United States on September 11, 2001, introduced special measures to enhance maritimesecurity, including the International Ship and Port Facility Security Code, or ISPS Code, which sets out measures for the enhancement of security of vessels and portfacilities. The vessels that we operate maintain ISM and ISPS certifications for safety and security of operations. Regulations to Prevent Pollution from Ships In the second main category of international regulation which deals with prevention of pollution, the primary convention is the International Convention for thePrevention of Pollution from Ships 1973 as amended by the 1978 Protocol, or MARPOL, which imposes environmental standards on the shipping industry set out inits Annexes I-VI. These contain regulations for the prevention of pollution by oil (Annex I), by noxious liquid substances in bulk (Annex II), by harmful substancesinpackaged forms within the scope of the International Maritime Dangerous Goods Code (Annex III), by sewage (Annex IV), by garbage (Annex V) and by airemissions (Annex VI). These regulations have been and continue to be regularly amended and supplemented as new and higher standards of pollution prevention are introduced with whichwe are required to comply. 56  Table of Contents For example, MARPOL Annex VI sets limits on Sulphur Oxides (SOx) and Nitrogen Oxides (NOx) and particulate matter emissions from vessel exhausts andprohibits deliberate emissions of ozone depleting substances. It also regulates the emission of volatile organic compounds (VOC) from cargo tankers and certain gascarriers, as well as shipboard incineration of specific substances. Annex VI also includes a global cap on the sulphur content of fuel oil with a lower cap on thesulphur content applicable inside special areas, the “Emission Control Areas” or ECAs. Already established ECAs include the Baltic Sea, the North Sea, includingthe English Channel, the North American area and the US Caribbean Sea area. The global cap on the sulphur content of fuel oil was reduced to 0.5% as of January 1,2020, regardless of whether a ship is operating outside a designated ECA. From January 1, 2015 the cap on the sulphur content of fuel oil for vessels operating inECAs has been 0.1%. Additional amendments to Annex VI revising, among other terms, the definition of “Sulphur content of fuel oil” and “low-flashpoint fuel”, andpertaining to the sampling and testing of onboard fuel oil, will become effective in 2022. Annex VI also provides for progressive reductions in NOx emissions from marine diesel engines installed in vessels. Limiting NOx emissions is set on a three tierreduction, the final tier (“Tier III”) applying to engines installed on vessels constructed on or after January 1, 2016 and which operate in the North American ECA orthe US Caribbean Sea ECA. The Tier III requirements would also apply to engines of vessels operating in other ECAs as may be designated in the future by theIMO’s Marine Environment Protection Committee (or MEPC) for Tier III NOx control. In October 2016, the MEPC approved the designation of the North Sea andthe Baltic Sea as ECAs for NOx emissions. These two new NOx ECAs and the related amendments to Annex VI were adopted by IMO’s MEPC in 2017 and the twonew ECAs and the related amendments (with some exceptions) entered into effect on January 1, 2019. The Tier III requirements do not apply to engines installed onvessels constructed prior to January 1, 2021, if they are of less than 500 gross tons, of 24 meters or over in length, and have been designed and used solely forrecreational purposes. We anticipate incurring costs at each stage of implementation on all these areas. Currently we are compliant in all our vessels. Additionally,amendments to Annex II, which strengthen discharge requirements for cargo residues and tank washings in specified sea areas (including North West Europeanwaters, Baltic Sea area, Western European waters and Norwegian Sea), came into effect in January 2021, Greenhouse Gas Emissions In February 2005, the Kyoto Protocol to the United Nations Framework Convention on Climate Change entered into force. Pursuant to the Kyoto Protocol, adoptingcountries are required to implement national programs to reduce emissions of certain gases, generally referred to as greenhouse gases, which are suspected ofcontributing to global warming. Currently, the greenhouse gas emissions from international shipping do not come under the Kyoto Protocol (this task having beendelegated to the IMO). In December 2009, more than 27 nations, including the United States, entered into the Copenhagen Accord. The Copenhagen Accord is non-binding, but is intended to pave the way for a comprehensive, international treaty on climate change. On December 12, 2015 the Paris Agreement was adopted by195 countries. The Paris Agreement deals with greenhouse gas emission reduction measures and targets from 2020 in order to limit the global temperature increasesabove pre-industrial levels to well below 2˚ Celsius. Although shipping was ultimately not included in the Paris Agreement, it is expected that the adoption of theParis Agreement may lead to regulatory changes in relation to curbing greenhouse gas emissions from shipping. The Paris Agreement has been ratified by a largenumber of countries and entered into force on November 4, 2016. The United States rejoined the Paris Agreement in February 2021. In July 2011 the IMO adopted regulations imposing technical and operational measures for the reduction of greenhouse gas emissions. These new regulations formeda new chapter in Annex VI of MARPOL and became effective on January 1, 2013. The new technical and operational measures include the “Energy EfficiencyDesign Index,” which is mandatory for newbuilding vessels, and the “Ship Energy Efficiency Management Plan,” which is mandatory for all vessels. In October2016 the MEPC adopted updated guidelines for the calculation of the Energy-Efficiency Design Index. In addition, the IMO is evaluating various mandatorymeasures to reduce greenhouse gas emissions from international shipping, which may include market-based instruments or a carbon tax. In October 2016, the IMOadopted a mandatory data collection system under which vessels of 5,000 gross tonnage and above are to collect fuel consumption data and to report the aggregateddata to their flag state at the end of each calendar year. The new requirements entered into force on March 1, 2018. In April 2018, the MEPC adopted an initialstrategy on the reduction of greenhouse gas emissions from ships, which envisages a reduction in total greenhouse gas emissions from international shipping by atleast 50% by 2050 compared to 2008. IMO’s MEPC 76 adopted amendments to Annex VI that will require ships to reduce their greenhouse gas emissions; theRevised MARPOL Annex VI will enter into force on November 1, 2022, and includes requirements for ships to calculate their Energy Efficiency ExistingShip Index following technical means to improve their energy efficiency and to establish their annual operational carbon intensity indicator and rating. MEPC 76 alsoadopted guidelines to support implementation of the amendments. 57  Table of Contents The EU adopted Regulation (EU) 2015/757 on the monitoring, reporting and verification of carbon dioxide emissions from vessels (or the MRV Regulation), whichwas published in the Official Journal on May 19, 2015 and entered into force on July 1, 2015 (as amended by Regulation (EU) 2016/2071). The MRV Regulationapplies to all vessels over 5,000 gross tonnage (except for a few types, such as, amongst others, warships and fish catching or fish processing vessels), irrespective offlag, in respect of carbon dioxide emissions released during intra-EU voyages and EU incoming and outgoing voyages. The first reporting period commenced onJanuary 1, 2018. The monitoring, reporting and verification system adopted by the MRV Regulation was the precursor to a market-based mechanism to be adopted inthe future (see below). Furthermore, the 70th MEPC meeting in October 2016 adopted a mandatory data collection system (DCS) which requires ships above 5 000 gross tonnes to reportconsumption data for fuel oil, hours under way and distance travelled. Unlike the EU MRV (see below), the IMO DCS covers any maritime activity carried out byships, including dredging, pipeline laying, ice-breaking, fish-catching and off-shore installations. The system, adopted by resolution MEPC.278(70), entered intoforce on 1 March 2018. Reporting commenced with the year 2019. The Ship Energy Efficiency Management Plans of all ships covered by the IMO DCS mustinclude a description of the methodology for data collection and reporting. After each calendar year, the aggregated data are reported to the flag state. If the data havebeen reported in accordance with the requirements, the flag state issues a statement of compliance to the ship. Flag states subsequently transfer this data to an IMOship fuel oil consumption database, which is part of the Global Integrated Shipping Information System (GISIS) platform. IMO will then produce annual reports,summarising the data collected. Thus, currently, data related to the GHG emissions of ships above 5 000 gross tonnes calling at ports in the European Economic Area(EEA) must be reported in two separate, but largely overlapping, systems: the EU MRV – which applies since 2018 – and the IMO DCS – which applies since 2019.The proposed revision of Regulation (EU) 2015/757 adopted on 4 February 2019 aims to align and facilitate the simultaneous implementation of the two systemshowever it is still not clear when the proposal will be adopted.In the United States, the U.S. Environmental Protection Agency, or EPA, issued an “endangerment finding” regarding greenhouse gases under the Clean Air Act.While this finding in itself does not impose any requirements on our industry, it authorizes the EPA to regulate directly greenhouse gas emissions through a rule-making process. Any passage of new climate control legislation or other regulatory initiatives by the IMO, EU, the United States or other countries or states wherewe operate that restrict emissions of greenhouse gases could have a significant financial and operational impact on our business through increased compliance costsor additional operational restrictions that we cannot predict with certainty at this time. Anti-Fouling Requirements In 2001, the IMO adopted the International Convention on the Control of Harmful Anti-fouling Systems on Ships, or the Anti-fouling Convention. The Anti-foulingConvention, which entered into force in September 2008, prohibits and/or restricts the use of organotin compound coatings to prevent the attachment of mollusks andother sea life to the hulls of vessels. Vessels of over 400 gross tons engaged in international voyages must obtain an International Anti-Fouling System Certificate andundergo a survey before the vessel is put into service or before the Anti-fouling System Certificate is issued for the first time and when the anti-fouling systems arealtered or replaced. In 2023, amendments to the Anti-fouling Convention will come into effect and will include controls on the biocide cybutryne; ships shall notapply or re-apply anti-fouling systems containing this substance from January 1, 2023. Other International Regulations to Prevent Pollution In addition to MARPOL, other more specialized international instruments have been adopted to prevent different types of pollution or environmental harm fromvessels. In February 2004, the IMO adopted an International Convention for the Control and Management of Ships’ Ballast Water and Sediments, or the BWM Convention.The BWM Convention, which entered into force on September 8, 2017, aims to prevent the spread of harmful aquatic organisms from one region to another, byestablishing standards and procedures for the management and control of vessels’ ballast water and sediments. The BWM Convention’s implementing regulationsrequire vessels to conduct ballast water management in accordance with the standards set out in the convention, which include performance of ballast water exchangein accordance with the requirements set out in the relevant regulation and the gradual phasing in of a ballast water performance standard which requires ballast watertreatment and the installation of ballast water treatment systems on board the vessels. Under the BWM Convention, vessels are required to implement a Ballast Waterand Sediments Management Plan, carry a Ballast Water Record Book and an International Ballast Water Management Certificate. Pursuant to the BWM Conventionamendments that entered into force in October 2019, ballast water management systems (“BWMSs”) installed on or after October 28, 2020 shall be approved inaccordance with BWMS Code, while BWMSs installed before October 23, 2020 must be approved taking into account guidelines developed by the IMO or theBWMS Code. Ships sailing in U.S. waters are required to employ a type-approved BWMS which is compliant with USCG regulations. The U.S. Coast Guard hasapproved a number of BWMS. Amendments to the BWM Convention concerning commissioning testing of BWMS will become effective in 2022. 58  Table of Contents The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships adopted by the IMO in 2009, or the Recycling Convention,deals with issues relating to ship recycling and aims to address the occupational health and safety, as well as environmental risks relating to ship recycling. It containsregulations regarding the design, construction, operation, maintenance and recycling of vessels, as well as regarding their survey and certification to verifycompliance with the requirements of the Recycling Convention. The Recycling Convention, amongst other things, prohibits and/or restricts the installation or use ofhazardous materials on vessels and requires vessels to have on board an inventory of hazardous materials specific to each vessel. It also requires ship recyclingfacilities to develop a ship-recycling plan for each vessel prior to its recycling. Parties to the Recycling Convention are to ensure that ship-recycling facilities aredesigned, constructed and operated in a safe and environmentally sound manner and that they are authorized by competent authorities after verification of compliancewith the requirements of the Recycling Convention. The Recycling Convention (which is not effective yet) is to enter into force 24 months after a specified minimumnumber of states with a combined gross tonnage and maximum annual recycling volume during the preceding 10 years have ratified it. A MARPOL regulation and the International Convention on Oil Pollution Preparedness, Response and Co-operation, 1990 also require owners and operators ofvessels to adopt Shipboard Oil Pollution Emergency Plans. Another MARPOL regulation sets out similar requirements for the adoption of shipboard marine pollutionemergency plans for noxious liquid substances with respect to vessels carrying such substances in bulk. Periodic training and drills for response personnel and forvessels and their crews are required. European Union Regulations European regulations in the maritime sector are in general based on international law most of which were promulgated by the IMO and then adopted by the MemberStates. However, since the Erika incident in 1999, when the Erika broke in two off the coast of France while carrying heavy fuel oil, the European Union (or EU) hasbecome increasingly active in the field of regulation of maritime safety and protection of the environment. It has been the driving force behind a number ofamendments of MARPOL (including, for example, changes to accelerate the timetable for the phase-out of single hull tankers, and prohibiting the carriage in suchtankers of heavy grades of oil), and if dissatisfied either with the extent of such amendments or with the timetable for their introduction it has been prepared tolegislate on a unilateral basis. In some instances where it has done so, international regulations have subsequently been amended to the same level of stringency asthat introduced in the EU, but the risk is well established that EU regulations (and other jurisdictions) may from time to time impose burdens and costs on shipownersand operators which are additional to those involved in complying with international rules and standards. In some areas of regulation the EU has introduced new laws without attempting to procure a corresponding amendment of international law. Notably, it adopted in2005 a directive on ship-source pollution (which was amended in 2009), imposing criminal sanctions for discharges of oil and other noxious substances from vesselssailing in its waters, irrespective of their flag not only where such pollution is caused by intent or recklessness (which would be an offense under MARPOL), but alsowhere it is caused by “serious negligence.” The directive could therefore result in criminal liability being incurred in circumstances where it would not be incurredunder international law. Experience has shown that in the emotive atmosphere often associated with pollution incidents, retributive attitudes towards vessel interestshave found expression in negligence being alleged by prosecutors and found by courts on grounds which the international maritime community has found hard tounderstand. Moreover, there is skepticism that the notion of “serious negligence” is likely to prove any narrower in practice than ordinary negligence. Criminalliability for a pollution incident could not only result in us incurring substantial penalties or fines but may also, in some jurisdictions, facilitate civil liability claimsfor greater compensation than would otherwise have been payable. The EU has also adopted legislation (Directive 2009/16/EC on Port State Control, as subsequently amended) which requires the Member States to refuse access totheir ports to certain sub-standard vessels according to various factors, such as the vessel’s condition, flag and number of previous detentions within certain precedingperiods; creates obligations on the part of EU member port states to inspect minimum percentages of vessels using their ports annually; and provides for increasedsurveillance of vessels posing a high risk to maritime safety or the marine environment. If deficiencies are found that are clearly hazardous to safety, health or theenvironment, the state is required to detain the vessel or stop loading or unloadinguntil the deficiencies are addressed. Member states are also required to implement their own separate systems of proportionate penalties for breaches of thesestandards. Commission Regulation (EU) No 802/2010, which was adopted by the European Commission in September 2010, as part of the implementation of the Port StateControl Directive and came into force on January 1, 2011, as subsequently amended by Regulation 1205/2012 of December 14, 2012, introduced a ranking system(published on a public website and updated daily) displaying shipping companies operating in the EU with the worst safety records. 59  Table of Contents The ranking is judged upon the results of the technical inspections carried out on the vessels owned by a particular shipping company. Those shipping companies thathave the most positive safety records are rewarded by being subjected to fewer inspections, whilst those with the most safety shortcomings or technical failingsrecorded upon inspection are to be subjected to a greater frequency of official inspections of their vessels. By Directive 2009/15/EC of April 23, 2009 (on common rules and standards for ship inspection and survey organizations and for the relevant activities of maritimeadministrations) as amended by Directive 2014/111/EU of December 17, 2014, the European Union has established measures to be followed by the Member Statesfor the exercise of authority and control over classification societies, including the ability to seek to suspend or revoke the authority of classification societies that arenegligent in their duties. The EU has also adopted legislation requiring the use of low sulphur fuel. Under Council Directive 1999/32/EC as subsequently amended, from January 1, 2015,vessels have been required to burn fuel with a sulphur content not exceeding 0.1% while within EU member states’ territorial seas, exclusive economic zones andpollution control zones falling within sulphur oxide (SOx) Emission Control Areas (or SECAs), such as the Baltic Sea and the North Sea, including the EnglishChannel. Further sea areas may be designated as SECAs in the future by the IMO in accordance with MARPOL Annex VI. Directive 1999/32/EC was repealed andcodified by 2016/802/EU to align with the revised Annex VI. Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 ( amended by Regulation (EU) 2016/2071 with respect to methods ofcalculating, inter alia, emission and consumption) governs the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and,subject to some exclusions, requires companies with ships over 5,000 gross tonnage to monitor and report carbon dioxide emissions annually, which may cause us toincur additional expenses. As of January 2019, large ships calling at EU ports have been required to collect and publish data on carbon dioxide emissions and otherinformation. The system entered into force on 1 March 2018. July 2020 saw the European Parliament’s Committee on Environment, Public Health and Food Safety vote in favor of the inclusion of vessels of 5000 gross tons andabove in the EU Emissions Trading System (in addition to voting for a revision to the monitoring, reporting and verification of CO2 emissions). In September 2020,the European Parliament adopted the proposal from the European Commission to amend the regulation on monitoring carbon dioxide emissions from maritimetransport. On 14th July 2021, the European Commission published a package of draft proposals as part of its ‘Fit for 55’ environmental legislative agenda and as part of thewider EU Green Deal growth strategy. The Proposals are not yet in final form and may be subject to amendment. There are two key initiatives relevant to maritimearising from the Proposals: (a) a bespoke emissions trading scheme for maritime (Maritime ETS) which is due to commence in 2023 and which is to apply to all shipsabove a gross tonnage of 5000; and (b) a FuelEU draft regulation which seeks to require all ships above a gross tonnage of 5000 to carry on board a ‘FuelEUcertificate of compliance’ from 30 June 2025 as evidence of compliance with the limits on the greenhouse gas intensity of the energy used on-board by a ship andwith the requirements on the use of on-shore power supply (OPS) at berth. More specifically, Maritime ETS is to apply gradually over the period from 2023-2025.The cap under the ETS would be set by taking into account EU MRV system emissions data for the years 2018 and 2019, adjusted, from year 2021 and is to capture100% of the emissions from intra-EU maritime voyages; 100% of emissions from ships at berth in EU ports; and 50% of emissions from voyages which start or endat EU ports (but the other destination is outside the EU). More recent proposed amendments signal that 100% of non-EU emissions may be caught if the IMO doesnot introduce a global market-based measure by 2028. Furthermore, the proposals envisage that all maritime allowances would be auctioned and there will be no freeallocation. Both proposals are currently being negotiated and final drafts are expected in the summer of 2022. Concerned at the lack of progress in satisfying the conditions needed to bring the Hong Kong Convention into force, the EU published its own Ship RecyclingRegulation 1257/2013 (SRR) in 2013, with a view to facilitating early ratification of the Hong Kong Convention both within the EU and in other countries outsidethe EU. As the Hong Kong Convention has yet to come into force, the 2013 regulations are vital to responsible ship recycling in the EU. The SRR Regulation appliesto vessels flying the flag of a Member State and certain of its provisions apply to vessels flying the flag of a third country calling at a port or anchorage of a MemberState. For example, when calling at a port or anchorage of a Member State, the vessels flying the flag of a third country will be required, amongst other things, tohave on board an inventory of hazardous materials which complies with the requirements of the Regulation and to be able to submit to the relevant authorities of thatMember State a copy of a statement of compliance issued by the relevant authorities of the country of their flag and verifying the inventory. Pursuant to theRegulation, the EU Commission publishes from time to time a European List of approved ship recycling facilities meeting the requirements of the Regulation. 60  Table of Contents On November 11, 2020 the EU Commission published an implementing decision which included an updated version of the European List. Furthermore, the SRRrequires that, from 31 December 2020, all existing ships sailing under the flag of EU member states and non-EU flagged ships calling at an EU port or anchoragemust carry on-board an Inventory of Hazardous Materials (IHM) with a certificate or statement of compliance, as appropriate. For EU-flagged vessels, a certificate(either an Inventory Certificate or Ready for Recycling Certificate) will be necessary, while non-EU flagged vessels will need a Statement of Compliance. Compliance Enforcement The flag state, as defined by the United Nations Convention on the Law of the Sea, has overall responsibility for the implementation and enforcement of internationalmaritime regulations for all vessels granted the right to fly its flag. The “Shipping Industry Guidelines on Flag State Performance” issued by the InternationalChamber of Shipping in cooperation with other international shipping associations evaluates flag states based on factors such as port state control record, ratificationof major international maritime treaties, use of recognized organizations conducting survey work on their behalf which comply with the IMO guidelines, age of fleet,compliance with reporting requirements and participation at IMO meetings. The vessels that we operate are flagged in the Marshall Islands and Malta. MarshallIslands- and Malta-flagged vessels have historically received a good assessment in the shipping industry. Noncompliance with the ISM Code or other IMO regulations may subject the shipowner or bareboat charterer to increased liability and, if the implementinglegislation so provides, to criminal sanctions, may lead to decreases in available insurance coverage for affected vessels or may invalidate or result in the loss ofexisting insurance cover and may result in the denial of access to, or detention in, some ports. The U.S. Coast Guard and European Union authorities have, forexample, indicated that vessels not in compliance with the ISM Code will be prohibited from trading in U.S. and European Union ports, respectively. As of the dateof this annual report on Form 20-F, each of our vessels is ISM Code certified. However, there can be no assurance that such certificate will be maintained. The IMO, the EU and other regulatory authorities continue to review and introduce new regulations. It is impossible to predict what additional regulations, if any,may be passed by the IMO, the EU and/or other regulatory authorities and what effect, if any, such regulations may have on our operations. United States Environmental Regulations and Laws Governing Civil Liability for Pollution Environmental legislation in the United States merits particular mention as it is in many respects more onerous than international laws, representing a high-watermark of regulation with which shipowners and operators must comply, and of liability likely to be incurred in the event of non-compliance or an incident causingpollution. U.S. federal legislation, including notably the OPA, establishes an extensive regulatory and liability regime for the protection and cleanup of the environment fromoil spills, including bunker oil spills from dry bulk vessels as well as cargo or bunker oil spills from tankers. The OPA affects all owners and operators whose vesselstrade in the United States, its territories and possessions or whose vessels operate in United States waters, which includes the United States’ territorial sea and its 200nautical mile exclusive economic zone. Under OPA, vessel owners, operators and bareboat charterers are “responsible parties” and are jointly, severally and strictlyliable without regard to fault (unless the spill results solely from the act or omission of a third party, an act of God or an act of war) for all containment and clean-upcosts and other damages arising from discharges or substantial threats of discharges of oil from their vessels. The OPA expressly allows the individual states of theUnited States to impose their own liability regimes for the discharge of petroleum products. In addition to potential liability under the OPA as the relevant federallegislation, vessel owners may in some instances incur liability on an even more stringent basis under state law in the particular state where the spillage occurred. The OPA requires the owner or operator of any non-tank vessel of 400 gross tons or more that carries oil of any kind as a fuel for main propulsion, including bunkers,to prepare and submit a response plan for each vessel. The vessel response plans must include detailed information on actions to be taken by vessel personnel toprevent or mitigate any discharge or substantial threat of such a discharge of oil from the vessel. The OPA limits the liability of responsible parties to the greater of $1,200 per gross ton or $997,100 per non-tank vessel (subject to possible adjustment for inflation).However, these limits of liability do not apply if an incident was proximately caused by violation of applicable United States federal safety, construction or operatingregulations or by a responsible party’s gross negligence or willful misconduct, or if the responsible party fails or refuses to report the incident or to cooperate andassist in connection with oil removal activities. 61  Table of Contents In addition, the Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, which applies to the discharge of hazardous substances(other than oil) whether on land or at sea, contains a similar liability regime and provides for cleanup, removal and natural resource damages. Liability underCERCLA is limited to the greater of $300 per gross ton or $0.5 million for vessels not carrying hazardous substances as cargo or residue (or the greater of $300 pergross ton or $5.0 million for vessels carrying hazardous substances) unless the incident is caused by gross negligence, willful misconduct or a violation of certainregulations, in which case liability is unlimited. We maintain, for each of our vessels, protection and indemnity coverage against pollution liability risks in the amount of $1.0 billion per event. This insurancecoverage is subject to exclusions, deductibles and other terms and conditions. If any liabilities or expenses fall within an exclusion from coverage, or if damages froma catastrophic incident exceed the $1.0 billion limitation of coverage per event, our cash flow, profitability and financial position could be adversely impacted. We believe our insurance and protection and indemnity coverage as described above meets the requirements of the OPA. The OPA requires owners and operators of all vessels over 300 gross tons, even those that do not carry petroleum or hazardous substances as cargo, to establish andmaintain with the U.S. Coast Guard evidence of financial responsibility sufficient to meet their potential liabilities under the OPA. Under the regulations, vesselowners and operators may evidence their financial responsibility by showing proof of insurance, surety bond, self-insurance or guaranty. Under the OPA, an owner or operator of a fleet of vessels is required only to demonstrate evidence of financial responsibility in an amount sufficient to cover thevessel in the fleet having the greatest limited liability under the OPA. The U.S. Coast Guard’s regulations concerning certificates of financial responsibility provide, in accordance with the OPA, that claimants may bring suit directlyagainst an insurer or guarantor that furnishes the guaranty that supports the certificates of financial responsibility. In the event that such insurer or guarantor is sueddirectly, it is prohibited from asserting any contractual defense that it may have had against the responsible party and is limited to asserting those defenses availableto the responsible party and the defense that the incident was caused by the willful misconduct of the responsible party. The OPA specifically permits individual states to impose their own liability regimes with regard to oil pollution incidents occurring within their boundaries, and somestates have enacted legislation providing for unlimited liability for oil spills. In some cases, states that have enacted such legislation have not yet issued implementingregulations defining vessels owners’ responsibilities under these laws. We intend to comply with all applicable state regulations in the ports where our vessels call. The United States Clean Water Act, or CWA, prohibits the discharge of oil or hazardous substances in U.S. navigable waters and imposes strict liability in the form ofpenalties for unauthorized discharges. The CWA also imposes substantial liability for the costs of removal, remediation and damages and complements the remediesavailable under CERCLA. The EPA enacted rules governing the regulation of ballast water discharges and other discharges incidental to the normal operation of vessels within U.S. waters.Under the rules, commercial vessels 79 feet in length or longer (other than commercial fishing vessels), or Regulated Vessels, are required to obtain a CWA permitregulating and authorizing such normal discharges. This permit, which the EPA had designated as the Vessel General Permit for Discharges Incidental to the NormalOperation of Vessels, or VGP, incorporated the then current U.S. Coast Guard requirements for ballast water management as well as supplemental ballast waterrequirements, including limits applicable to specific discharge streams, such as deck runoff, bilge water and gray water. The VGP was set to be effective to December18, 2018. The Vessel Incidental Discharge Act (or VIDA) was signed into law on December 4, 2018, and establishes a new framework for the regulation of vesselincidental discharges under the CWA. On October 26, 2020, the EPA published a Notice of Proposed Rulemaking for Vessel Incidental Discharge National Standardsof Performance under VIDA, and in November 2020, held virtual public meetings. The new regulations would require the installation of new equipment. UnderVIDA, all provisions of the 2013 Vessel General Permitremain in force and effect as currently written until the EPA publishes standards and the corresponding U.S. Coast Guard regulations are published. Vessels that are constructed after December 1, 2013 are subject to the ballast water numeric effluent limitations. Several U.S. states, including California, have addedspecific requirements to the VGP and, in some cases, may require vessels to install ballast water treatment technology to meet biological performance standards. 62  Table of Contents Security Regulations Since the terrorist attacks of September 11, 2001, there have been a variety of initiatives intended to enhance vessel security. In November 2002, the MTSA cameinto effect. To implement certain portions of the MTSA, in July 2003, the U.S. Coast Guard issued regulations requiring the implementation of certain securityrequirements aboard vessels operating in waters subject to the jurisdiction of the United States. Similarly, in December 2002, amendments to SOLAS created a newchapter of the convention dealing specifically with maritime security. The chapter imposes various detailed security obligations on vessels and port authorities, mostof which are contained in the newly created ISPS Code. Among the various requirements are: Øon-board installation of automatic information systems to enhance vessel-to-vessel and vessel-to-shore communications Øon-board installation of ship security alert systems; Øthe development of vessel security plans; and Øcompliance with flag state security certification requirements. The U.S. Coast Guard regulations, intended to be aligned with international maritime security standards, exempt non-U.S. vessels from MTSA vessel securitymeasures, provided such vessels have on board a valid International Ship Security Certificate that attests to the vessel’s compliance with SOLAS securityrequirements and the ISPS Code. The vessels in our fleet that we operate have on board valid International Ship Security Certificates and, therefore, will comply withthe requirements of the MTSA. International Laws Governing Civil Liability to Pay Compensation or Damages Although the United States is not a party to the International Convention on Civil Liability for Oil Pollution Damage of 1969, as amended by the 1992 Protocol andfurther amended in 2000, or the CLC (which has been adopted by the IMO and sets out a liability regime in relation to oil pollution damage), many countries areparties and have ratified either the original CLC or its 1992 Protocol. Under the CLC, a vessel’s registered owner is strictly liable for pollution damage caused in theterritorial waters or, under the 1992 Protocol, in the exclusive economic zone or equivalent area, of a contracting state by discharge of persistent oil, subject to certaindefenses and subject to the right to limit liability. The original CLC applies to vessels carrying oil as cargo and not in ballast, whereas the CLC as amended by the1992 Protocol applies to tanker vessels and combination carriers (i.e., vessels which sometimes carry oil in bulk and sometimes other cargoes) but only when thelatter carry oil in bulk as cargo and during any voyage following such carriage (to the extent they have oil residues on board). Vessels trading with states that areparties to these conventions must provide evidence of insurance covering the liability of the owner. In jurisdictions where the CLC has not been adopted, variouslegislative schemes or common law govern, and liability is imposed either on the basis of fault or in a manner similar to that of the convention. We believe that ourprotection and indemnity insurance will cover the liability under the regime adopted by the IMO. The CLC is supplemented by the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1971, asamended (or the Fund Convention). The purpose of the Fund Convention was the creation of a supplementary compensation fund (the International Oil PollutionCompensation Fund, or IOPC Fund) which provides additional compensation to victims of a pollution incident who are unable to obtain adequate or anycompensation under the CLC. In 2001, the IMO adopted the International Convention on Civil Liability for Bunker Oil Pollution Damage, or the Bunker Convention, which covers liability andcompensation for pollution damage caused in the territorial waters or the exclusive economic zone or equivalent area of ratifying states by discharges of “bunker oil.”The Bunker Convention defines “bunker oil” as “any hydrocarbon mineral oil, including lubricating oil, used or intended to be used for the operation or propulsion ofthe ship, and any residues of such oil.” The Bunker Convention imposes strict liability (subject to certain defenses) on theshipowner (which term includes the registered owner, bareboat charterer, manager and operator of the vessel). It also requires registered owners of vessels over acertain size to maintain insurance for pollution damage in an amount equal to the limits of liability under the applicable national or international limitation regime(but not exceeding the amount calculated in accordance with the Convention on Limitation of Liability for Maritime Claims of 1976, as amended by the 1996Protocol to it, or the 1976 Convention). The Bunker Convention entered into force in November 2008. In other jurisdictions, liability for spills or releases of oil fromvessels’ bunkers continues to be determined by the national or other domestic laws in the jurisdiction where the events or damages occur. 63  Table of Contents The IMO’s International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea1996, as superseded by the 2010 Protocol, or the HNS Convention, sets out a liability regime for loss or damage caused by hazardous or noxious substances carriedon board a vessel. These substances are listed in the convention itself or defined by reference to lists of substances included in various IMO conventions and codes.The HNS Convention covers loss or damage by contamination to the environment, costs of preventive measures and further damage caused by such measures, loss ordamage to property outside the ship and loss of life or personal injury caused by such substances on board or outside the ship. It imposes strict liability (subject tocertain defenses) on the registered owner of the vessel and provides for limitation of liability and compulsory insurance. The owner’s right to limit liability is lost if itis proved that the damage resulted from the owner’s personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge thatsuch damage would probably result. The HNS Convention has not entered into force yet. Outside the United States, national laws generally provide for the owner to bear strict liability for pollution, subject to a right to limit liability under applicablenational or international regimes for limitation of liability. The most widely applicable international regime limiting maritime pollution liability is the 1976Convention. However, claims for oil pollution damage within the meaning of the CLC or any Protocol or amendment to it are expressly excepted from the limitationregime set out in the 1976 Convention. Rights to limit liability under the 1976 Convention are forfeited where it is proved that the loss resulted from the shipowner’spersonal act or omissions, committed with the intent to cause such loss, or recklessly and with knowledge that such loss would probably result. Some states haveratified the 1996 Protocol to the 1976 Convention, which provides for liability limits substantially higher than those set forth in the original 1976 Convention to applyin such states. Finally, some jurisdictions are not a party to either the 1976 Convention or the 1996 Protocol, and some are parties to other earlier limitation of liabilityconventions and, therefore, shipowners’ rights to limit liability for maritime pollution in such jurisdictions may be different or uncertain. The Maritime Labour Convention The International Labour Organization’s Maritime Labour Convention was adopted in 2006 (“MLC 2006”). The basic aims of the MLC 2006 are to ensurecomprehensive worldwide protection of the rights of seafarers and to establish a level playing field for countries and ship owners committed to providing decentworking and living conditions for seafarers, protecting them from unfair competition on the part of substandard ships. The Convention was ratified on August 20,2012, and all our vessels have been certified, as required. The MLC 2006 requirements have not had a material effect on our operations. C. Organizational Structure Globus Maritime Limited is a holding company. As of the date of this annual report, Globus wholly owns eleven operational subsidiaries, ten of which are MarshallIslands corporations and one of which is incorporated in Malta. Nine of our operational subsidiaries each own one vessel, and one of our operational subsidiaries isour Manager and does not own a vessel, and our Manager provides the technical and day-to-day commercial management of our fleet and our financial reporting. OurManager provides consultancy services to an affiliated ship-management company. Our Manager maintains ship management agreements with each of our vessel-owning subsidiaries. D. Property, Plants and Equipment In 2016 our Manager entered into a rental agreement for 350 square meters of office space for our operations within a building owned by Cyberonica S.A., a relatedparty to us at a monthly rate of €10,360 with a lease period ending January 2, 2025. However, in August 2021, our Manager entered into a new rental agreement for902 square metres of office space for its operations within a building owned by Cyberonica S.A. (a company controlled by our chairman of the board at a monthlyrate of €26,000 with a lease period ending August 2024, and the 2016 rental agreement was terminated. The Company does not presently own any real estate. As ofDecember 31, 2021, we did not owe to Cyberonica any amount of back rent. For information about our vessels and how we account for them, see “Item 5. Operating and Financial Review and Prospects. A. Operating Results – Results ofOperations – Critical Accounting Policies – Impairment of Long-Lived Assets.” Other than our vessels, we do not have any material property. Six of our vessels aresubject to priority mortgages, which secure our obligations under the CIT Loan Facility. For more information on our vessels, please see “Item 4.B. Information onthe Company—Business Overview.” For further details regarding our credit facilities, please see “Item 5. Operating and Financial Review and Prospects — B. Liquidity and Capital Resources —Indebtedness.” We have no manufacturing capacity, nor do we produce any products. We believe that our existing credit facility is adequate to meet our needs for the foreseeable future. 64  Table of Contents Item 4A. Unresolved Staff Comments None. Item 5. Operating and Financial Review and Prospects The following discussion should be read in conjunction with our consolidated financial statements and the accompanying notes thereto included elsewhere in thisannual report on Form 20-F. We believe that the following discussion contains forward-looking statements that involve risks and uncertainties. Actual results or planof operations could differ materially from those anticipated by forward-looking information due to factors discussed under “Item 3.D. Risk Factors” and elsewherein this annual report on Form 20-F. Please see the section “Cautionary Note Regarding Forward-Looking Statements” at the beginning of this annual report onForm 20-F. The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand ourresults of operations and financial condition. The MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financialstatements and notes thereto included in “Item 18 – Financial Statements.” The MD&A generally discusses 2021 and 2020 items and year-to-year comparisons between 2021 and 2020. Discussions of 2019 items and year-to-yearcomparisons between 2020 and 2019 that are not included in this Form 20-F can be found in “Management’s Discussion and Analysis of Financial Condition andResults of Operations” in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2020 filed with the SEC. A. Operating Results Overview and History We are an integrated dry bulk shipping company, which began operations in September 2006, providing marine transportation services on a worldwide basis. Weown, operate and manage a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally.Following the conclusion of our initial public offering on June 1, 2007, our common shares were listed on the AIM under the ticker “GLBS.L.” On November 24,2010, we redomiciled into the Marshall Islands pursuant to the BCA and a resale registration statement for our common shares was declared effective by the SEC.Once the resale registration statement was declared effective by the SEC, our common shares began trading on the Nasdaq Global Market under the ticker “GLBS.”We delisted our common shares from the AIM on November 26, 2010. On April 11, 2016 our common shares began trading on the Nasdaq Capital Market and ceased trading on the Nasdaq Global Market, without a change in our ticker. On July 29, 2010, we effected a 1-4 reverse stock split, with our issued share capital resulting in 7,240,852 common shares of $0.004 each. On October 20, 2016, weeffected a 1-4 reverse stock split which reduced the number of outstanding common shares from 10,510,741 to 2,627,674 shares (adjustments were made based onfractional shares). (These figures do not reflect the 1-10 reverse stock split which occurred in October 2018 or the 1-100 reverse stock split occurred in October2020.) On October 15, 2018, we effected a 1-10 reverse stock split which reduced the number of outstanding common shares from 32,065,077 to 3,206,495 shares(adjustments were made based on fractional shares). (These figures do not reflect the 1-100 reverse stock split occurred in October 2020.)In November 2018, we entered into a credit facility for up to $15 million with Firment Shipping Inc., a related party to us, for the purpose of financing our generalworking capital needs, which facility was amended and restated on May 8, 2020. The Firment Shipping Credit Facility was unsecured and remained available until itsfinal maturity date at October 31, 2021, as amended. We have the right to drawdown any amount up to $15 million or prepay any amount in multiples of $100,000.Any prepaid amount cannot be re-borrowed. Interest on drawn and outstanding amounts is charged at 3.5% per annum until December 31, 2020, and thereafter at 7%per annum. No commitment fee is charged on the amounts remaining available and undrawn. Interest is payable the last day of a period of three months after thedrawdown date, after this period in case of failure to pay any sum due a default interest of 2% per annum above the regular interest is charged. 65  Table of Contents We have also the right, in our sole option, to convert in whole or in part the outstanding unpaid principal amount and accrued but unpaid interest under thisAgreement into common shares. The conversion price shall equal the higher of (i) the average of the daily dollar volume-weighted average sale price for the commonstock on the Principal Market on any trading day during the period beginning at 9.30 a.m. New York City time and ending at 4.00 p.m. over the Pricing Periodmultiplied by 80%, where the “Pricing Period” equals the ten consecutive trading days immediately preceding the date on which the conversion notice was executedor (ii) $280.00. The outstanding amount under the Firment Shipping Credit Facility was fully repaid on July 27, 2020. This facility expired on its terms on October31, 2021. On April 23, 2019, the Company converted the outstanding principal amount of $3.1 million plus the accrued interest of approximately $0.1 million with aconversion price of $2.80 per share and issued 1,132,191 new common shares on behalf of Firment Shipping Inc. in accordance with the provisions of the FirmentShipping Credit Facility. This conversion resulted in a gain of approximately $0.1 million. As of December 31, 2020, $14.2 million was available to be drawn underthe Firment Shipping Credit Facility. (These figures do not reflect the 1-100 reverse stock split occurred in October 2020.) In December 2018, through our wholly owned subsidiaries, Artful Shipholding S.A. (“Artful”) and Longevity Maritime Limited (“Longevity”), we entered into aloan agreement with Macquarie Bank International Limited, which we refer to as our Macquarie Loan Agreement, for an amount up to $13.5 million and used fundsborrowed thereunder to refinance part of the repayment of the then existing loan agreement with DVB, which we refer to as the DVB Loan Agreement, for the m/vMoon Globe and m/v Sun Globe. Globus guaranteed this loan. On March 13, 2019, the Company signed a securities purchase agreement with a private investor and on March 13, 2019 issued, for gross proceeds of $5 million, asenior convertible note (the “Convertible Note”) that was convertible into shares of the Company’s common stock, par value $0.004 per share. If not converted orredeemed beforehand pursuant to the terms of the Convertible Note, the Convertible Note was scheduled to mature on March 13, 2020, the first anniversary of itsissue, but its holder waived the Convertible Note’s maturity until March 13, 2021. The waiver also provided that the floor price by which the Convertible Note maybe converted adjusts for share splits, share dividends, share combinations, and similar transactions. The Convertible Note was issued in a transaction exempt fromregistration under the Securities Act of 1933, as amended (the “Securities Act”). On May 8, 2020, the holder of our Convertible Note waived (the “May 8, 2020 Waiver”) its right to participate in (a) public offerings which close before August 31,2020, and (b) issuances of shares and other securities (including common shares, Class B common shares, and new or existing series of preferred shares) to directors,officers, their respective affiliates, and to affiliates of the Company. The holder of our Convertible Note also consented to the amendment and restatement of theFirment Shipping Credit Facility and waived (a) without the Company having admitted fault, certain potential prior technical breaches of the Convertible Note; (b)the holder’s right to require the redemption of the Convertible Note upon a change of control (as such term is used within the Convertible Note), but only if suchchange of control results from certain underwritten offering or issuances of our securities to directors, officers, their respective affiliates, and to affiliates of theCompany; (c) temporarily reduced, until August 31, 2020, the amount the noteholder will receive upon a redemption of the Convertible Note at the Company’soption, such that the Convertible Note could have been redeemed at the Company’s option by paying the greater of (i) the aggregate amounts then outstandingpursuant to the Convertible Note (rather than 120% of such amounts) and (ii) the product of (x) the number of shares issuable upon a conversion of the ConvertibleNote (with respect to the amount being redeemed at the time) multiplied by (y) the greatest closing sale price of the Company’s common shares on any trading daybetween the date immediately preceding the first such redemption at the Company’s option and the trading day immediately prior to the final Company paymentunder the Convertible Note. All of the foregoing was subject to the Company’s redemption of all or part of the Convertible Note in cash with an amount equal to thelesser of (a) the aggregate amounts then outstanding pursuant to the Convertible Note and (b) 25% of the net proceeds of any public offering of its securities thatclose before August 31, 2020. The outstanding balance of the Convertible Note not previously converted into shares was fully repaid in June 2020. The Convertible Note provided for interest to accrue at 10% annually and paid at maturity, unless the Convertible Note was converted or redeemed pursuant to itsterms beforehand. The interest could have been paid in common shares of the Company, if certain conditions described within the Convertible Note were met. Thefollowing summaries of the conversion and redemption provisions of the Convertible Note are qualified in their entirety to the terms of the Convertible Note itself: 66  Table of Contents · The Convertible Note could have been converted, in whole or in part, into the Company’s common stock at any time by its holder, in which case allprincipal, interest, and other amounts owed pursuant to the Convertible Note would have converted at a price per share which would have differed basedupon the performance of the Company’s stock price. The price per share for conversion purposes was the lowest of (a) the Conversion Price of $450 and (b)the highest of (i) $100 (the “Floor Price”) and (ii) 87.5% of the average of the high and low bid price from any day chosen by the holder during the ten (10)consecutive trading day period ending on and including the trading day immediately prior to the applicable conversion date (the “Alternate ConversionPrice”) regardless of the subsequent stock price. The Floor Price adjusted for share splits, share dividends, share combinations, and similar transactions. ·The Convertible Note could have been redeemed, in whole or in part, by request of its holder upon: oan Event of Default (as defined within the Convertible Note), in exchange for the higher of (a) 120% of all amounts owed under the ConvertibleNote, and (b) the value of the stock to which the Convertible Note could be converted (as calculated within Section 4(b) of the Convertible Note); oa Change in Control (as defined within the Convertible Note) of the Company, in exchange for the higher of (a) 120% of all amounts owed underthe Convertible Note and (b) the value of the stock to which the Convertible Note could have been converted (as calculated within Section 5(c) ofthe Convertible Note), unless such Change in Control occurred as described in the May 8, 2020 Waiver described above; or oany time after an uninterrupted ten Trading Day period in which the common shares traded below the Floor Price, in exchange for 100% of allamounts owed under the Convertible Note. ·The Convertible Note could have been redeemed, in whole or in part, at any time by the Company. If we elected to redeem the Convertible Note, and suchredemption did not occur as set forth within the May 8, 2020 Waiver, we would have been obligated to pay the holder the greater of (a) 120% of all amountsowed under the Convertible Note and (b) the value of the stock to which the Convertible Note could be converted (as calculated within Section 8(a) of theConvertible Note). If we elected to redeem the Convertible Note, we (as a procedural matter) would have first provided the holder notice, which could haveallowed the holder to convert prior to payment by us of the redemption amount. ·If any portion of the Convertible Note was not redeemed or converted prior to its maturity date, on the maturity date, we would have been required to pay alloutstanding principal in cash and may have elected whether to pay the interest (and any other amounts owed) in cash or shares of our common stock. Ifinterest was paid in common stock, the Alternate Conversion Price per share would have applied. The Convertible Note also forbade us from undertaking certain major transactions (referred to within the Convertible Note as “Fundamental Transactions” or a“Change of Control”) if we do not either (a) redeem the note at 120% of all amounts owed under the Convertible Note beforehand or (b) we or our successor does notreaffirm its obligations under the Convertible Note. The Convertible Note included anti-dilution protections to its holder. The Convertible Note initially contained a Floor Price of $225 and allowed the Company, withthe holder’s consent, to reduce the Floor Price or the then current conversion price, as to any amount and for any period of time deemed appropriate by theCompany’s board of directors, but to a price no less than $1.00 per share, which subsequently was so reduced to $100. Although it was originally agreed that the floorprice would not adjust upon share splits, share dividends, share combinations, and similar transactions, we and the holder subsequently agreed that the floor pricewould adjust proportionately under these circumstances. Under the terms of the Convertible Note, the Company could not have issued shares to the extent such issuance would cause the Holder, together with its affiliatesand attribution parties, to beneficially own a number of common shares which would exceed 4.99% (which may be increased upon no less than 61 days’ notice, butnot to exceed 9.99%) of our then outstanding common shares immediately following such issuance, excluding for purposes of such determination common sharesissuable upon subsequent conversion of principal or interest on the Convertible Note. This provision did not limit a Holder from acquiring up to 4.99% of ourcommon shares, selling all of their common shares, and immediately thereafter re-acquiring up to 4.99% of our common shares. The Convertible Note further entitledits holder to any options, convertible securities or rights to purchase shares, warrants, securities or other property if the Company should issue such pro rata to all orsubstantially all of the record holders of any class of common shares, in each instance as though the Convertible Note had converted in full at the AlternateConversion Price and as though the aforementioned limitation on conversion and issuance did not exist. The Company also signed a registration rights agreement with the private investor pursuant to which we agreed to register for resale the shares that could be issuedpursuant to the Convertible Note, and subsequently filed a registration statement registering the resale of the maximum number of common shares issuable pursuantto the Convertible Note, including payment of interest on the notes through its maturity date, determined as if the Convertible Note (including interest) was convertedin full at the lowest price at which the note may convert pursuant to its terms. The registration rights agreement contained liquidated damages if we were unable toregister for resale the shares into which the convertible note may convert, and maintain such registration. 67  Table of Contents On June 22, 2020, we completed a public offering of 34,285,714 units of the Company. Each unit consisted of one common share and one Class A Warrant topurchase one common share (a “Class A Warrant”), for $35 per unit. At the time of the closing, the underwriters exercised and closed a part of their over-allotmentoption, and purchased an additional 5,139,286 common shares and Class A Warrants to purchase 5,139,286 common shares. Upon the 1-100 reverse split whichoccurred in October 2020, the number of outstanding warrants was not adjusted, but the number of shares issuable upon exercise thereof and the price per share wasproportionately adjusted to reflect the reverse split. The figures above do not reflect the reverse split. The exercise price of the Class A Warrants is $35 per whole share at any time after their original issuance up to the date that is five years after their original issuance.If a registration statement registering the issuance of the common shares underlying the warrants under the Securities Act is not effective or available, the holder may,in its sole discretion, elect to exercise the warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of commonshares determined according to the formula set forth in the warrant. We may be required to pay certain amounts as liquidated damages as specified in the warrants inthe event it does not deliver common shares upon exercise of the warrants within the time periods specified in the warrants. On June 30, 2020, we issued 458,500 of our common shares in a registered direct offering and 458,500 of our June PP Warrants in a concurrent private placement fora purchase price of $27 per common share and June PP Warrant. No June PP Warrants have been exercised as of the date hereof, and may be exercised at any timeprior to 5:00 PM New York time on December 30, 2025. The exercise price of each June PP Warrant was originally $30 per share, but in July 2020 was reduced to$18 per share. On July 21, 2020, we issued 833,333 of our common shares in a registered direct offering and 833,333 of our July PP Warrants to purchase common shares in aconcurrent private placement for a purchase price of $18 per common share and July PP Warrant. No July PP Warrants have been exercised as of the date hereof, andmay be exercised at any time prior to 5:00 PM New York time on January 21, 2026. The exercise price of each July PP Warrant is $18 per share. On December 9, 2020, we issued (a) 1,256,765 common shares, (b) pre-funded warrants to purchase 155,000 common shares, and (c) warrants (the “December 2020Warrants”) to purchase 1,270,587 common shares. The pre-funded warrants have all been exercised. No December 2020 Warrants have been exercised as of the datehereof, and may be exercised at any time prior to 5:00 PM New York time on June 9, 2026. The exercise price of the December 2020 Warrants was reduced from$8.50 per share to $6.25 per share on January 29, 2021. On January 29, 2021, we issued (a) 2,155,000 common shares, (b) pre-funded warrants to purchase 445,000 common shares, and (c) warrants (the “January 2021Warrants”) to purchase 1,950,000 common shares at an exercise price of $6.25 per share, which may be exercised at any time prior to 5:00 PM New York time onJuly 29, 2026. The pre-funded warrants were all exercised. No January 2021 Warrants have been exercised as of the date hereof. On February 17, 2021, we issued (a) 3,850,000 common shares, (b) pre-funded warrants to purchase 950,000 common shares, and (c) warrants (the “February 2021Warrants”) to purchase 4,800,000 common shares at an exercise price of $6.25 per share, which may be exercised at any time prior to 5:00 PM New York time onAugust 17, 2026. The pre-funded warrants have all been exercised. No February 2021 Warrants have been exercised as of the date hereof. On June 25, 2021, we issued (a) 8,900,000 common shares, (b) pre-funded warrants to purchase 1,100,000 common shares, and (c) warrants (the “June 2021Warrants”) to purchase 10,000,000 common shares at an exercise price of $5.00 per share, which may be exercised at any time prior to 5:00 PM New York time onDecember 25, 2026. The pre-funded warrants have all been exercised. No June 2021 Warrants have been exercised as the date hereof. Each of the June PP Warrants, July PP Warrants, December 2020 Warrants, January 2021 Warrants, February 2021 Warrants and June 2021 Warrants is exercisablefor a period of five and one-half years commencing on the date of issuance. The warrants are exercisable at the option of each holder, in whole or in part bydelivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased upon such exercise.If a registration statement registering the resale of the common shares underlying the private placement warrants under the Securities Act is not effective or availableat any time after the six month anniversary of the date of issuance of the private placement warrants, the holder may, in its sole discretion, elect to exercise the privateplacement warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of common shares determined according tothe formula set forth in the warrant. If a registration statement covering the issuance of the shares under the Securities Act is not effective or available at any timeafter the issuance of the December 2020 Warrants, January 2021 Warrants, February 2021 Warrants and June 2021 Warrants, the holder may, in its sole discretion,elect to exercise the such warrants through a cashless exercise, in which case the holder would receive upon such exercise the net number of common sharesdetermined according to the formula set forth in the warrant. If we do not issue the shares in a timely fashion, each warrant contains certain liquidated damagesprovisions. 68  Table of Contents From June 22, 2020 through to date, we issued 5,550 common shares pursuant to exercises of outstanding Class A Warrants. As of the date of this annual report, noJune PP Warrants, July PP Warrants, December 2020 Warrants, January 2021 Warrants, February 2021 Warrants or June 2021 Warrants have been exercised. On October 21, 2020, we effected a 1-100 reverse stock split which reduced the number of shares outstanding from 175,675,651 to 1,756,720 (adjustments weremade based on fractional shares). Unless otherwise noted, all historical share numbers, per share amounts, including common share, preferred shares and warrants,have been adjusted to give effect to this reverse split. As of December 31, 2021, our issued and outstanding capital stock consisted of 20,582,301 common shares and 10,300 Series Preferred Shares. On June 12, 2020, we entered into a stock purchase agreement and issued 50 of our newly-designated Series B preferred shares, par value $0.001 per share, toGoldenmare Limited, a company controlled by our Chief Executive Officer, Athanasios Feidakis, in return for $150,000, which amount was settled by reducing, on adollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to the consultancy agreement. In July 2020, we issued an additional 250 of our Series B preferred shares to Goldenmare Limited in return for $150,000. The $150,000 was paid by reducing, on adollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. In addition, we increased the maximumvoting rights under the Series B preferred shares from 49.0% to 49.99%. In March 2021, we issued an additional 10,000 of our Series B preferred shares to Goldenmare Limited in return for $130,000, which was settled by reducing, on adollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. Each Series B preferred share entitles the holder thereof to 25,000 votes per share on all matters submitted to a vote of the shareholders of the Company, providedhowever, that no holder of Series B preferred shares may exercise voting rights pursuant to Series B preferred shares that would result in the aggregate voting powerof any beneficial owner of such shares and its affiliates (whether pursuant to ownership of Series B preferred shares, common shares or otherwise) to exceed 49.99%of the total number of votes eligible to be cast on any matter submitted to a vote of shareholders of the Company. To the fullest extent permitted by law, the holders ofSeries B preferred shares shall have no special voting or consent rights and shall vote together as one class with the holders of the common shares on all matters putbefore the shareholders. The Series B preferred shares are not convertible into common shares or any other security. They are not redeemable and have no dividendrights. Upon any liquidation, dissolution or winding up of the Company, the Series B preferred shares are entitled to receive a payment with priority over the commonshareholders equal to the par value of $0.001 per share. The Series B preferred shareholder has no other rights to distributions upon any liquidation, dissolution orwinding up of the Company. All issued and outstanding Series B preferred shares must be held of record by one holder, and the Series B preferred shares shall not betransferred without the prior approval of our Board of Directors. Finally, in the event the Company (i) declares any dividend on its common shares, payable incommon shares, (ii) subdivides the outstanding common shares or (iii) combines the outstanding common shares into a smaller number of shares, there shall be aproportional adjustment to the number of outstanding Series B preferred shares. Each issuance of the Series B preferred shares to Goldenmare Limited was approved by an independent committee of the Board of Directors of the Company, which(in each instance) received a fairness opinion from an independent financial advisor that the transaction was for a fair value. In May 2021, we entered into an agreement with CIT Bank N.A. for a loan facility of $34.25 million bearing interest at LIBOR plus a margin of 3.75% per annum.The proceeds of this financing were used to repay the outstanding balance of the EnTrust Loan Facility. We intend to stabilize and then try to grow our fleet through timely and selective acquisitions of modern vessels in a manner that we believe will provide an attractivereturn on equity and will be accretive to our earnings and cash flow based on anticipated market rates at the time of purchase. There is no guarantee however, that wewill be able to find suitable vessels to purchase or that such vessels will provide an attractive return on equity or be accretive to our earnings and cash flow. 69  Table of Contents Our strategy is to generally employ our vessels on a mix of all types of charter contracts, including bareboat charters, time charters and spot charters. We may, fromtime to time, enter into charters with longer durations depending on our assessment of market conditions. We seek to manage our fleet in a manner that allows us to maintain profitability across the shipping cycle and thus maximize returns for our shareholders. Toaccomplish this objective we have historically deployed our vessels primarily on a mix of bareboat and time charters (with terms of between one month and fiveyears). According to our assessment of market conditions, we have historically adjusted the mix of these charters to take advantage of the relatively stable cash flowand high utilization rates associated with time charters or to profit from attractive spot charter rates during periods of strong charter market conditions. The average number of vessels in our fleet for the year ended December 31, 2021 was 7.1, for the year ended December 31, 2020 was 5.2 and for the year endedDecember 31, 2019 was 5.0. Our operations are managed by our Glyfada, Greece-based wholly owned subsidiary, Globus Shipmanagement Corp., our Manager, who provides in-housecommercial and technical management services to our vessels and consultancy services to an affiliated ship-management company. Our Manager enters into a shipmanagement agreement with each of our wholly owned vessel-owning subsidiaries to provide such services and also entered into a consultancy agreement with anaffiliated ship-management company. COVID-19 In March 2020, the World Health Organization (the “WHO”) declared the outbreak of a novel coronavirus strain, or COVID-19, to be a pandemic. TheCOVID-19 pandemic is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices.Over the course of the pandemic, governments have implemented measures in an effort to contain the virus, including social distancing, travel restrictions, borderclosures, limitations on public gatherings, working from home, supply chain logistical changes, and closure of non-essential businesses. This led to a significantslowdown in overall economic activity levels globally and a decline in demand for certain of the raw materials that our vessels transport. Drybulk shipping rates, and therefore our voyage revenues, depend to a significant degree on global economic activity levels and specifically, economicactivity in China. As the world’s second largest economy, China is the largest importer of drybulk commodities globally, which drives demand for iron ore, coal andother cargoes we carry. In particular, starting in the first quarter of 2020, the COVID-19 pandemic resulted in reduced industrial activity in China on which ourbusiness is substantially dependent, with temporary closures of factories and other facilities. The pandemic resulted in a contraction in China’s GDP during the firstquarter of 2020, with the most significant impact occurring in January and February. Since March 2020, China’s economy has substantially improved, as variouseconomic indicators such as fixed asset investment and industrial production rose as compared to the previous months of the year, which led to a return to GDPgrowth for the balance of 2020 and into 2021. Demand for the commodities that we carry continued to increase through 2021, which positively impacted the rate ourvessels earned. Economic activity levels in regions outside of China declined significantly beginning in the first quarter of 2020 and continuing into the secondquarter of the year due to various forms of nationwide shutdowns being imposed to prevent the spread of COVID-19. Over time, several economies around the worldgradually eased measures taken earlier in 2020 resulting in improved activity levels from earlier year lows and leading to a demand rebound for 2021. Althoughrebounding economies around the world have had a positive impact on our revenues in 2021, our vessel operating expenses continued to be affected by higher thananticipated costs related to COVID-19 disruptions. The impact of COVID-19 on both our revenues and operating expenses remains highly dependent on thetrajectory of COVID-19, potential variants, as well as vaccine distribution and efficacy, which remains uncertain. While China-led global economic activity levels have improved, the outlook for China and the rest of the world remains uncertain and is highly dependenton the path of COVID-19 and measures taken by governments around the world in response to it. Drybulk commodities that are closely tied to global GDP growthand energy demand, experienced reduced trade flows in 2020 due to lower end user demand resulting from a decline in global economic activity. As countriesworldwide gradually reopened their respective economies in mid-2020, trade flows and demand for raw materials increased. Drybulk spot freight rates reboundedfrom the 2020 lows towards the end of the second quarter and remained firm in the second half of 2020. In 2021, spot rates for Kamsarmax, Panamax, and Supramaxvessels reached levels not seen since 2010. While vaccinations are rising in developed countries, developing countries vaccination rates have lagged. Globalvaccination rates, vaccine effectiveness together with the onset of variants, could impact the sustainability of this recovery in addition to drybulk specific seasonalitydescribed in further detail below. 70  Table of Contents As our vessels trade commodities globally, we have taken measures to safeguard our crew and work toward preventing the spread of COVID-19. Crewmembers have received gloves, face masks, hand sanitizer, goggles and handheld thermometers. Genco requires its vessel crews to wear masks when in contact withother individuals who board the vessel. We continue to monitor the Centers for Disease Control and Prevention (the “CDC”) and the WHO guidelines and are alsolimiting access of shore personnel boarding our vessels. Specifically, no shore personnel with fever or respiratory symptoms are allowed on board, and those that areallowed on board are restricted to designated areas that are thoroughly cleaned after their use. Face masks are also provided to shore personnel prior to boarding avessel. Precautionary materials are posted in common areas to supplement safety training while personal hygiene best practices are strongly encouraged on board. We have implemented protocols with regard to crew rotations to keep our crew members safe and healthy which includes polymerase chain reaction (PCR)antibody testing as well as a 10-day quarantine period prior to boarding a vessel. Genco is enacting crew changes where permitted by regulations of the ports and ofthe country of origin of the mariners, in addition to strict protocols that safeguard our crews against COVID-19 exposure. Crew rotations have been challenging dueto port and travel restrictions globally, as well as promoting the health and safety of both on and off signing crew members. The COVID-19 pandemic and measures to contain its spread thus have negatively impacted and could continue to impact regional and global economies andtrade patterns in markets in which we operate, the way we operate our business, and the businesses of our charterers and suppliers. These impacts may continue orbecome more severe. Although we have successfully completed many crew changes over the course of the pandemic to date, additional crew changes could remainchallenging due to COVID-19 related factors. The extent to which the COVID-19 pandemic impacts our business going forward will depend on numerous evolvingfactors we cannot reliably predict, including the duration and scope of the pandemic; governmental, business, and individuals’ actions in response to the pandemic;and the impact on economic activity, including the possibility of recession or financial market instability. Conflicts The conflict between Russia and Ukraine, which commenced in February 2022, has disrupted supply chains and caused instability and significant volatility in theglobal economy. Much uncertainty remains regarding the global impact of the conflict in Ukraine, and it is possible that such instability, uncertainty and resultingvolatility could significantly increase our costs and adversely affect our business, including our ability to secure charters and financing on attractive terms, and as aresult, adversely affect our business, financial condition, results of operation and cash flows. As a result of the conflict between Russia and Ukraine, Switzerland, the United States, the European Union, the United Kingdom and others have announcedunprecedented levels of sanctions and other measures against Russia and certain Russian entities and nationals. Such sanctions against Russia may adversely affectour business, financial condition, results of operation and cash flows. For example, apart from the immediate commercial disruptions caused in the conflict zone,escalating tensions and fears of potential shortages in the supply of Russian crude have caused the price of oil to trade above $100 per barrel in March 2022. Theongoing conflict could result in the imposition of further economic sanctions against Russia, with uncertain impacts on the dry bulk market and the world economy.While we do not have any Ukrainian or Russian crew and our vessels currently do not sail in the Black Sea, it is possible that the conflict in Ukraine, including anyincreased shipping costs, disruptions of global shipping routes, any impact on the global supply chain and any impact on current or potential customers caused by theevents in Russia and Ukraine, could adversely affect our operations or financial performance. Due to the recent nature of these activities, the full impact on ourbusiness is not yet known. IMO 2020 Compliance On October 27, 2016, the Marine Environment Protection Committee (“MEPC”) of the International Maritime Organization (“IMO”) announced theratification of regulations mandating reduction in sulfur emissions from 3.5% currently to 0.5% as of the beginning of 2020 rather than pushing the deadline back to2025. Accordingly, ships now have to reduce sulfur emissions, for which the principal solutions are the use of exhaust gas cleaning systems (“scrubbers”) or buyingfuel with low sulfur content. If a vessel is not retrofitted with a scrubber, it will need to use low sulfur fuel, which is currently more expensive than standard marinefuel containing 3.5% sulfur content. This increased demand for low sulfur fuel resulted in an increase in prices for such fuel during the beginning of 2020. Followinga decrease during the second quarter of 2020, fuel prices began to increase again during the third quarter of 2020 and continue to increase due to such demand. 71  Table of Contents None of our vessels currently have scrubbers. We will continue to evaluate all options to comply with IMO regulations. Our fuel costs and fuel inventoriesmay increase as a result of these sulfur emission regulations. Low sulfur fuel is more expensive than standard marine fuel containing 3.5% sulfur content and maybecome more expensive or difficult to obtain as a result of increased demand. If the cost differential between low sulfur fuel and high sulfur fuel is significantlyhigher than anticipated, or if low sulfur fuel is not available at ports on certain trading routes, it may not be feasible or competitive to operate vessels on certaintrading routes without installing scrubbers or without incurring deviation time to obtain compliant fuel. Lack of Historical Operating Data for Vessels Before their Acquisition Consistent with shipping industry practice, we were not and have not been able obtain the historical operating data for the secondhand vessels we purchase, in partbecause that information is not material to our decision to acquire such vessels, nor do we believe such information would be helpful to potential investors in ourcommon shares in assessing our business or profitability. We purchased our vessels under a standardized agreement commonly used in shipping practice, which,among other things, provides us with the right to inspect the vessel and the vessel’s classification society records. The standard agreement does not provide us theright to inspect, or receive copies of, the historical operating data of the vessel. Accordingly, such information was not available to us. Prior to the delivery of apurchased vessel, the seller typically removes from the vessel all records, including past financial records and accounts related to the vessel. Typically, the technicalmanagement agreement between a seller’s technical manager and the seller is automatically terminated and the vessel’s trading certificates are revoked by its flagstate following a change in ownership. In addition, and consistent with shipping industry practice, we treat the acquisition of vessels from unaffiliated third parties as the acquisition of an asset rather than abusiness. We believe that, under the applicable provisions of Rule 11-01(d) of Regulation S-X under the Securities Act, the acquisition of our vessels does notconstitute the acquisition of a “business” for which historical or pro forma financial information would be provided pursuant to Rules 3-05 and 11-01 of RegulationS-X. Although vessels are generally acquired free of charter, we may in the future acquire some vessels with charters. Where a vessel has been under a voyage charter, thevessel is usually delivered to the buyer free of charter. It is rare in the shipping industry for the last charterer of the vessel in the hands of the seller to continue as thefirst charterer of the vessel in the hands of the buyer. In most cases, when a vessel is under time charter and the buyer wishes to assume that charter, the vessel cannotbe acquired without the charterer’s consent and the buyer entering into a separate direct agreement, called a novation agreement, with the charterer to assume thecharter. The purchase of a vessel itself does not transfer the charter because it is a separate service agreement between the vessel owner and the charterer. If the Company acquires a vessel subject to a time charter, it amortizes the amount of the component that is attributable to favorable or unfavorable terms relative tomarket terms and is included in the cost of that vessel, over the remaining term of the lease. The amortization is included in line “amortization of fair value of timecharter attached to vessels” in the income statement component of the consolidated statement of comprehensive income/(loss). If we purchase a vessel and assume or renegotiate a related time charter, we must take the following steps before the vessel will be ready to commence operations: Øobtain the charterer’s consent to us as the new owner; Øobtain the charterer’s consent to a new technical manager; Øin some cases, obtain the charterer’s consent to a new flag for the vessel; Øarrange for a new crew for the vessel, and where the vessel is on charter, in some cases, the crew must be approved by the charterer; Øreplace all hired equipment on board, such as gas cylinders and communication equipment; Ønegotiate and enter into new insurance contracts for the vessel through our own insurance brokers; 72  Table of Contents Øregister the vessel under a flag state and perform the related inspections in order to obtain new trading certificates from the flag state; Øimplement a new planned maintenance program for the vessel; and Øensure that the new technical manager obtains new certificates for compliance with the safety and vessel security regulations of the flag state. The following discussion is intended to help you understand how acquisitions of vessels affect our business and results of operations. Our business is comprised of the following main elements: Øemployment and operation of our dry bulk vessels and management of a vessel owned by a third party; and Ømanagement of the financial, general and administrative elements involved in the conduct of our business and ownership of our dry bulk vessels. The employment and operation of our vessels and the vessel we manage require the following main components: Øvessel maintenance and repair; Øcrew selection and training; Øvessel spares and stores supply; Øcontingency response planning; Øonboard safety procedures auditing; Øaccounting; Øvessel insurance arrangement; Øvessel chartering; Øvessel security training and security response plans (ISPS); Øobtaining ISM certification and audit for each vessel within the six months of taking over a vessel; Øvessel hire management; Øvessel surveying; and Øvessel performance monitoring. The management of financial, general and administrative elements involved in the conduct of our business and ownership of our vessels requires the following maincomponents: Ømanagement of our financial resources, including banking relationships, i.e., administration of bank loans and bank accounts; Ømanagement of our accounting system and records and financial reporting; Øadministration of the legal and regulatory requirements affecting our business and assets; and Ømanagement of the relationships with our service providers and customers. 73  Table of Contents The principal factors that affect our profitability, cash flows and shareholders’ return on investment include: Ørates and periods of hire; Ølevels of vessel operating expenses, including repairs and drydocking; Øpurchase and sale of vessels; Ømanagement fees for any third party ships that we manage; Ødepreciation expenses; Øfinancing costs; and Øfluctuations in foreign exchange rates. Revenue Overview We generate revenues by charging our customers for the use of our vessels to transport their dry bulk commodities. Under a time charter, the charterer pays us a fixeddaily charter hire rate and bears all voyage expenses, including the cost of bunkers (fuel oil) and port and canal charges. We remain responsible for paying thechartered vessel’s operating expenses, including the cost of crewing, insuring, repairing and maintaining the vessel, the costs of spares and consumable stores,tonnage taxes and other miscellaneous expenses. Under a bareboat charter, the charterer pays us a fixed daily charter hire rate and bears all voyage expenses, as wellas the vessel’s operating expenses. Spot charters can be spot voyage charters or spot time charters. Spot voyage charters involve the carriage of a specific amount and type of cargo on a load-port todischarge-port basis, subject to various cargo handling terms, and the vessel owner is paid on a per-ton basis. Under a spot voyage charter, the vessel owner isresponsible for the payment of all expenses including capital costs, voyage expenses, such as port, canal and bunker costs. A spot time charter is a contract to chartera vessel for an agreed period of time at a set daily rate. Under spot time charters, the charterer pays the voyage expenses. Voyage revenues and management & consulting fee income Our voyage revenues are driven primarily by the number of vessels in our fleet, the number of days during which our vessels operate and the amount of daily hirerates that our vessels earn under charters or on the spot market, which, in turn, are affected by a number of factors, including: Øthe duration of our charters; Øthe number of days our vessels are hired to operate on the short-term or spot market; Øour decisions relating to vessel acquisitions and disposals; Øthe amount of time that we spend positioning our vessels for employment; Øthe amount of time that our vessels spend in drydocking undergoing repairs; Ømaintenance and upgrade work; Øthe age, condition and specifications of our vessels; Ølevels of supply and demand in the dry bulk shipping industry; and Øother factors affecting short-term or spot market charter rates for dry bulk vessels. 74  Table of Contents In 2021, our voyage revenues increased when compared to 2020, mainly due to higher daily time charter and spot rates earned on average from our vessels on a yearover year basis. In 2020, our voyage revenues decreased when compared to 2019, mainly due to lower daily time charter and spot rates earned on average from ourvessels on a year over year basis. Employment of our Vessels As of the date of this annual report on Form 20-F, we employed our vessels as follows: Øm/v River Globe – on a time charter that began in April 2022 and is expected to expire end of April 2022, at a gross rate of $24,000 per day. Øm/v Sky Globe – on a time charter that began in April 2022 and is expected to expire in May 2022, at a gross rate of $30,000 per day. Øm/v Star Globe – on a time charter that began in March 2022 and is expected to expire in April 2022, at a gross rate of $34,000 per day. Øm/v Moon Globe – on a time charter that began in April 2022 and is expected to expire in June 2022, at a gross rate of $22,250 per day, and we were paid abonus of $1,225,000 upon commencement of the charter. Øm/v Sun Globe – on a time charter that began in January 2022 and is expected to expire in June 2022, at a gross rate of $23,500 per day. Øm/v Galaxy Globe – on a time charter that began in January 2022 and is expected to expire in October 2022, at a gross rate of $ 104.5% of the average BPI-82 5TC INDEX as quoted by the Baltic Exchange per day. Øm/v Diamond Globe – on a time charter that began in February 2022 and is expected to expire in May 2022, at a gross rate of $23,500 per day. Øm/v Power Globe – on a time charter that began in March 2022 and is expected to expire in May 2022, at a gross rate of $24,000 per day. Øm/v Orion Globe – on a time charter that began in March 2022 and is expected to expire in November 2022, at a gross rate of $ 100% of the INDEXP5TC/BPI82 TC average per day. Our charter agreements subject us to counterparty risk. In depressed market conditions, charterers may seek to renegotiate the terms of their existing charter parties oravoid their obligations under those contracts. Should counterparties to one or more of our charters fail to honor their obligations under their agreements with us, wecould sustain significant losses which could have a material adverse effect on our business, financial condition, results of operations, cash flows and ability to paydividends. Voyage Expenses We charter our vessels primarily through time charters under which the charterer is responsible for most voyage expenses, such as the cost of bunkers (fuel oil), portexpenses, agents’ fees, canal dues, extra war risks insurance and any other expenses related to the cargo. Whenever we employ our vessels on a voyage basis (such as trips for the purpose of geographically repositioning a vessel or trip(s) after the end of one time charterand up to the beginning of the next charter), we incur voyage expenses that include port expenses and canal charges and bunker (fuel oil) expenses. If we charter our vessels on bareboat charters, the charterer will pay for most of the voyage expenses and operating expenses. As is common in the shipping industry, we have historically paid commissions ranging from 1.25% to 2.50% of the total daily charter hire rate of each charter tounaffiliated ship brokers and in-house brokers associated with the charterers, depending on the number of brokers involved with arranging the charter. 75  Table of Contents For the year ended December 31, 2021, commissions amounted to $0.6 million. For the years ended December 31, 2020 and 2019, respectively, commissionsamounted to $0.2 million. We believe that the amounts and the structures of our commissions are consistent with industry practices. These commissions are directly related to our revenues. We therefore expect that the amount of total commissions will increase if the size of our fleet grows as aresult of additional vessel acquisitions and employment of those vessels or if charter rates increase. Vessel Operating Expenses Vessel operating expenses include costs for crewing, insurance, repairs and maintenance, lubricants, spare parts and consumable stores, statutory and classificationtonnage taxes and other miscellaneous expenses. We calculate daily vessel operating expenses by dividing vessel operating expenses by ownership days for therelevant time period excluding bareboat charter days. Our vessel operating expenses have historically fluctuated as a result of changes in the size of our fleet. In addition, a portion of our vessel operating expenses is incurrencies other than the U.S. dollar, such as costs related to repairs, spare parts and consumables. These expenses may increase or decrease as a result of fluctuationof the U.S. dollar against these currencies. We expect that crewing costs will increase in the future due to the shortage in the supply of qualified sea-going personnel. In addition, we expect that maintenancecosts will increase as our vessels age. Other factors that may affect the shipping industry in general, such as the cost of insurance, may also cause our expenses toincrease. To the extent that we purchase additional vessels, we expect our vessel operating expenses to increase accordingly. Other factors beyond our control, someof which may affect the shipping industry in general, including, for instance, developments relating to market prices for crewing, lubes, and insurance, may alsocause these expenses to increase. The impact of COVID-19 could result in potential shortages or a lack of access to required spare parts for the operation of ourvessels, potential delays in any unscheduled repairs, deviations for crew changes or increased costs to successfully execute a crew change, which could lead tobusiness disruptions and delays. We expect that crew costs for the crew that we utilize on our vessels will increase going forward due to expected higher wages, aswell as the impact of COVID-19 restrictions. We also expect higher costs during 2022 in relation to crew, spares and parts primarily due to industry-wide inflationarypressures and higher regulatory-related costs. Depreciation The cost of each of the Company’s vessels is depreciated on a straight-line basis over each vessel’s remaining useful economic life, after considering the estimatedresidual value of each vessel, beginning when the vessel is ready for its intended use. Management estimates that the useful life of new vessels is 25 years, which isconsistent with industry practice. The residual value of a vessel is the product of its lightweight tonnage and estimated scrap value per lightweight ton. The residualvalues and useful lives are reviewed at each reporting date and adjusted prospectively, if appropriate. For the years 2020 and 2019, we maintained the scrap rate at thesame level of $300/ton. During the fourth quarter of 2021, we adjusted the scrap rate from $300/ton to $380/ton due to the increased scrap rates worldwide. Thisresulted to a decrease of approximately $145,000 of the depreciation charge included in the consolidated statement of comprehensive income/(loss) for 2021. We do not expect these assumptions to change significantly in the near future. We expect that these charges will increase if we acquire additional vessels. Depreciation of Drydocking Costs Approximately every 2.5 years, our vessels are required to be taken out of service and removed from water (known as “drydocking”) for major repairs andmaintenance that cannot be performed while the vessels are operating. The costs associated with the drydockings are capitalized and depreciated on a straight-linebasis over the period between drydockings, to a maximum of 2.5 years. At the date of acquisition of a vessel, we estimate the component of the cost that correspondsto the economic benefit to be derived until the first scheduled drydocking of the vessel under our ownership and this component is depreciated on a straight-line basisover the remaining period through the estimated drydocking date. We expect that drydocking costs will increase as our vessels age and if we acquire additionalvessels. 76  Table of Contents Amortization of Fair Value of Time Charter Attached to Vessels If the Company acquires a vessel subject to a time charter, it amortizes the amount of the component that is attributable to favorable or unfavorable terms relative tomarket terms and is included in the cost of that vessel, over the remaining term of the lease. The amortization is included in line “amortization of fair value of timecharter attached to vessels” in the income statement component of the consolidated statement of comprehensive income/(loss). Administrative Expenses Our administrative expenses include payroll expenses, traveling, promotional and other expenses associated with us being a public company, which include thepreparation of disclosure documents, legal and accounting costs, director and officer liability insurance costs and costs related to compliance. We expect that ouradministrative expenses will increase as we enlarge our fleet. Administrative Expenses Payable to Related Parties Our administrative expenses payable to related parties include cash remuneration of our executive officers and directors. Share Based Payments We operate an equity-settled, share based compensation plan. The value of the service received in exchange of the grant of shares is recognized as an expense. Thetotal amount to be expensed over the vesting period, if any, is determined by reference to the fair value of the share awards at the grant date. The relevant expense isrecognized in the income statement component of the consolidated statement of comprehensive income/(loss), with a corresponding impact in equity. Impairment Loss and Reversal of Previously Recognized Impairment Losses We assess at each reporting date whether there is an indication that a vessel that we own may be impaired. The vessel’s recoverable amount is estimated when eventsor changes in circumstances indicate the carrying value may not be recoverable. If such indication exists and where the carrying value exceeds the estimatedrecoverable amounts, the vessel is written down to its recoverable amount. The recoverable amount is the greater of fair value less costs to sell and value-in-use. Inassessing value-in-use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the timevalue of money and the risks specific to the vessel. Impairment losses are recognized in the consolidated statement of comprehensive income/(loss). A previouslyrecognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairmentloss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carryingamount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in theconsolidated statement of comprehensive income/(loss). After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revisedcarrying amount, less any residual value, on a systematic basis over its remaining useful life. As of December 31, 2020 and 2019, the Company concluded that therecoverable amounts of the vessels were lower than their carrying amounts and recognized an impairment loss of approximately $4.6 and $29.9 million, respectively.As of December 31, 2021, no impairment indicators were identified for the Company’s vessels as the vessels’ recoverable amounts exceeded their carrying amounts. We also assess at each reporting date whether there is any indication that an impairment loss recognized in prior periods for a vessel may no longer exist or may havedecreased. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amountsince the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amountcannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Suchreversal is recognised in the consolidated statement of comprehensive income/(loss). After such a reversal, the depreciation charge is adjusted in future periods toallocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. As of December 31, 2021, no indicators forreversal of impairment were present and no reversal of previously recognized impairment losses is required for the financial year ended December 31, 2021. 77  Table of Contents Gain/(Loss) on Sale of Vessels Gain or loss on the sale of vessels is the residual value remaining after deducting from the vessels’ sale proceeds, the carrying value of the vessels at the respectivedate of delivery to their new owners and the total expenses associated with the sale. Other (Expenses)/Income, Net We include other operating expenses or income that is not classified otherwise. It mainly consists of provisions for insurance claims deductibles and refunds frominsurance claims. Interest Income from Bank Balances & Bank Deposits We earn interest on the funds we have deposited with certain banks as well as from short-term certificates of deposit. Interest Expense and Finance Costs We incur interest expense and financing costs in connection with the indebtedness under our credit arrangements. We also incurred financing costs in connection withestablishing those arrangements, which is included in our finance costs and amortization and write-off of deferred finance charges. As of December 31, 2021, 2020and 2019, we had $31.75 million, $37 million and $41.1 million of indebtedness outstanding under our then existing credit arrangements, respectively. We incurredinterest expense and financing costs relating to our outstanding debt as well as our available but undrawn credit facilities, if any. We will incur additional interestexpense in the future on our outstanding borrowings and under future borrowings to finance future acquisitions. Please see “Item 5.B. Liquidity and CapitalResources—Indebtedness” for further information. Gain/ (Loss) on Derivative Financial Instruments Derivative financial instruments, including embedded derivative financial instruments, are initially recognized at fair value on the date a derivative contract is enteredinto and are subsequently remeasured at fair value. Changes in the fair value of these derivative instruments are recognized immediately in the income statementcomponent of the consolidated statement of comprehensive income/(loss). Foreign Exchange Gains/ (Losses), Net We generate substantially all of our revenues from the trading of our vessels in U.S. dollars but incur a portion of our expenses in currencies other than the U.S.dollar. We convert U.S. dollars into foreign currencies to pay for our non-U.S. dollar expenses, which we then hold on deposit until the date of each transaction.Fluctuations in foreign exchange rates create foreign exchange gains or losses when we mark-to-market these non-U.S. dollar deposits. Because a portion of ourexpenses is payable in currencies other than the U.S. dollar, our expenses may from time to time increase relative to our revenues as a result of fluctuations inexchange rates, which could affect the amount of net income that we report in future periods. 78  Table of Contents Factors Affecting Our Results of Operations We believe that the important measures for analyzing trends in our results of operations consist of the following: ØOwnership days. We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us.Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we recordduring a period. ØAvailable days. We define available days as the number of our ownership days less the aggregate number of days that our vessels are off-hire due toscheduled repairs or repairs under guarantee, vessel upgrades or special surveys. The shipping industry uses available days to measure the number of daysin a period during which vessels should be capable of generating revenues. ØOperating days. Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to anyreason, including unforeseen circumstances but excluding days during which vessels are seeking employment. The shipping industry uses operating days tomeasure the aggregate number of days in a period during which vessels generate revenues. ØFleet utilization. We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during theperiod. The shipping industry uses fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing theamount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades and special surveys. ØAverage number of vessels. We measure average number of vessels by the sum of the number of days each vessel was part of our fleet during a relevantperiod divided by the number of calendar days in such period. ØTCE rates. We define TCE rates as our revenue less net revenue from our bareboat charters less voyage expenses during a period divided by the number ofour available days during the period excluding bareboat charter days, which is consistent with industry standards. TCE is a non-GAAP measure. TCE rateis a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earningsgenerated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts whilecharter hire rates for vessels on time charters generally are expressed in such amounts. The following table reflects our ownership days, available days, operating days, average number of vessels and fleet utilization for the periods indicated. Year Ended December 31, 2021 2020 2019 2018 2017Ownership days2,594 1,894 1,825 1,825 1,825Available days2,531 1,778 1,788 1,755 1,787Operating days2,477 1,733 1,756 1,723 1,745Fleet utilization97.9% 97.5% 98.2% 98.2% 97.6%Average number of vessels7.1 5.2 5.0 5.0 5.0Daily time charter equivalent (TCE) rate*$  16,627 $   5,210 $   7,564 $   9,213 $   6,993 *Amounts subject to rounding. We utilize TCE because we believe it is a meaningful measure to compare period-to-period changes in our performance despite changes in the mix of charter types(i.e., voyage charters, spot charters and time charters) under which our vessels may be employed between the periods. Our management also utilizes TCE to assistthem in making decisions regarding employment of our vessels. We believe that our method of calculating TCE is consistent with industry standards and isdetermined by dividing revenue after deducting voyage expenses, and net revenue from our bareboat charters, by available days for the relevant period excludingbareboat charter days. Voyage expenses primarily consist of brokerage commissions and port, canal and fuel costs that are unique to a particular voyage, which wouldotherwise be paid by the charter under a time charter contract. 79  Table of Contents The following table reflects the Voyage Revenues to Daily Time Charter Equivalent (“TCE”) Reconciliation for the periods presented. Year Ended December 31, (Expressed in Thousands of U.S. Dollars,except number of days and daily TCE rates) 2021 2020 2019 2018 2017 Voyage revenues 43,211 11,753 15,623 17,354 13,852Less: Voyage expenses 1,128 2,490 2,098 1,188 1,352Net revenue 42,083 9,263 13,525 16,166 12,500Available days net of bareboat charter days 2,531 1,778 1,788 1,755 1,787Daily TCE rate* 16,627 5,210 7,564 9,213 6,993 *Amounts subject to rounding. Results of Operations The following is a discussion of our operating results for the year ended December 31, 2021 compared to the year ended December 31, 2020 and for the year endedDecember 31, 2020 compared to the year ended December 31, 2019. Variances are calculated on the numbers presented in the discussion over operating results. Year ended December 31, 2021 compared to the year ended December 31, 2020 As of December 31, 2021 and 2020, our fleet consisted of nine (four Supramaxes, four Kamsarmaxes and one Panamax) with an aggregate carrying capacity of626,257 dwt and six (four Supramaxes, one Kamsarmax and one Panamax) with an aggregate carrying capacity of 381,738 dwt, respectively. During the years endedDecember 31, 2021 and 2020 we had an average of 7.1 and 5.2 dry bulk vessels in our fleet, respectively. For the year ended December 31, 2021, we had an operating income of $17.9 million, while for the year ended December 31, 2020, we had an operating loss of $11.4million. Voyage revenues. Voyage revenues increased by $31.4 million, or 266%, to $43.2 million in 2021, compared to $11.8 million in 2020. The increase is primarilyattributable to the increase in average TCE rates. In 2021, we had total operating days of 2,477 and fleet utilization of 97.9%, compared to 1,733 operating days and afleet utilization of 97.5% in 2020. The foregoing fleet utilization percentage are based upon the available days of each vessel, being the number of our ownershipdays less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys. We alsohad 2,593 and 1,894 ownership days in 2021 and 2020, respectively, which increase is primarily due to our acquisition of additional vessels. Voyage expenses. Voyage expenses decreased by $1.4 million, or 56%, to $1.1 million in 2021, compared to $2.5 million in 2020. This decrease is attributed to thehigher employment of our vessels in 2021 compared to 2020 where due to the outbreak of COVID-19 virus there were considerably longer periods that our vesselswere travelling seeking employment. Vessel operating expenses. Vessel operating expenses increased by $5.2 million, or 61%, to $13.8 million in 2021, compared to $8.6 million in 2020. The breakdownof our operating expenses for the year 2021 was as follows: Crew expenses 55% Repairs and spares 18% Insurance 8% Stores 12% Lubricants 4% Other 3% The increase is mainly attributed to the increase of the fleet from 5.2 vessels on average for 2020 to 7.1 vessels on average for 2021. The increase is also partlyattributed to the increase of the daily operating expenses of the vessels. Daily vessel operating expenses were $5,325 in 2021 compared to $4,531 in 2020,representing an increase of 18%, which is mainly attributed to crew matters such as more frequent repatriations, rotations that come with increased travelling, testingand quarantine compliance costs, that could not be performed during 2020 as most countries were on lockdown due to COVID-19. 80  Table of Contents Depreciation. Depreciation charge during the year ended December 31, 2021 reached $3.9 million compared to $2.4 million during 2020. This is mainly attributed tothe increase of the fleet from 5.2 vessels on average for 2020 to 7.1 vessels on average for 2021. During the fourth quarter of 2021, we adjusted the scrap rate from$300/ton to $380/ton due to the increased scrap rates worldwide. This resulted to a decrease of $145,000 to the depreciation charge included in the consolidatedstatement of comprehensive income/(loss) for 2021. Depreciation of dry-docking costs. Depreciation of dry-docking costs increased by $1.5 million, or 115%, to $2.8 million in 2021, compared to $1.3 million in 2020.This is due to the increase of the fleet and the increased cost of dry-dockings that two of our vessels underwent in 2021 and subsequently resulted to a higherdepreciation charge. Administrative expenses. Administrative expenses increased by $0.7 million or 37% to $2.6 million in 2021 from $1.9 million in 2020 mainly due to the increase ofpersonnel expenses by approximately $360,000 from approximately $1.0 million in 2020 to approximately $1.4 million in 2021 and audit fees by approximately$72,000, from approximately $143,000 in 2020 to approximately $215,000 in 2021. Administrative expenses payable to related parties. Administrative expenses payable to related parties decreased by $0.5 million, or 26%, to $1.4 million in 2021compared to $1.9 million in 2020. This is mainly attributed to the one-time cash bonus of $1.5 million to the consultant pursuant to the consultancy agreement in2020. In addition, in December 2021, the Company agreed to pay a one-time cash bonus of $1.5 million to Goldenmare Limited pursuant to the consultancyagreement, half of which is to be paid immediately and the other half during 2022, if at the time of the payment Mr. Athanasios Feidakis remains CEO and theconsultant has not terminated its consultancy agreement. Share-based payments. Share-based payments for 2021 and 2020 amounted to $40,000. Impairment Loss. As of December 31, 2021, the Company performed an assessment on whether there were indicators that a vessel(s) may be impaired, and noimpairment indicators were identified for the Company’s vessels. During the first quarter of 2020, the Company concluded that the recoverable amounts of thevessels were lower than their respective carrying amounts and recognized an impairment loss of $4.6 million. No further impairment was recorded during theremaining quarters of 2020. Interest expense and finance costs. Interest expense and finance costs decreased by $0.9 million, or 21%, to $3.3 million in 2021, compared to $4.2 million in 2020.This decrease is mainly attributed to the lower margin we achieved through the new loan agreement with CIT Bank in May 2021, which was used to refinance theEnTrust Loan Facility. Our weighted average interest rate for 2021 was 5.69% compared to 9.44% during 2020. Total borrowings outstanding as of December 31,2021 amounted to $31.75 million compared to $37 million as of December 31, 2020. Our sole current credit facility is denominated in U.S. dollars. Gain / (Loss) on derivative financial instruments. Following the new loan facility with CIT Bank N.A., we entered into an Interest Rate Swap agreement on May 10,2021 and recognized a loss of $162,000 in the consolidated statement of comprehensive income/(loss). For the year ended December 31, 2021, the Companyrecognized a gain of approximately $181,000, approximately $325,000 gain is according to the Interest Rate Swap valuation minus approximately $144,000 was theinterest for the Interest Rate Swap during the year ended December 31,2021, and is included in the consolidated statement of comprehensive income/(loss). For theyear ended December 31, 2020 the loss on the derivative financial instruments is mainly attributed to the conversions and the repayment of the Convertible Note.Further to the conversion clause included into the Convertible Note during the first half of 2020 a total amount of approximately $1.2 million, principal and accruedinterest, was converted to common shares with the conversion price of $100 per share and a total number of approximately 11,678 new shares issued in name of theholder of the Convertible Note. These conversions resulted to a loss of approximately $0.3 million recognized in the consolidated statement of comprehensiveincome/(loss). Furthermore, with the repayment of the Convertible Note on June 25, 2020, we recognized a loss of $1.3 million in the consolidated statement ofcomprehensive income/(loss). 81  Table of Contents Year ended December 31, 2020 compared to the year ended December 31, 2019 As of December 31, 2020 and 2019, our fleet consisted of six (four Supramaxes, one Kamsarmax and one Panamax) with an aggregate carrying capacity of 381,738dwt and five dry bulk vessels (four Supramaxes and one Panamax) with an aggregate carrying capacity of 300,571 dwt, respectively. During the years endedDecember 31, 2020 and 2019 we had an average of 5.2 and 5.0 dry bulk vessels in our fleet, respectively. During the year ended December 31, 2020, we had an operating loss of $11.4 million, while during the year ended December 31, 2019, we had an operating loss of$33.6 million. Voyage revenues. Voyage revenues decreased by $3.8 million, or 24%, to $11.8 million in 2020, compared to $15.6 million in 2019. The decrease is primarilyattributable to a decrease in average TCE rates. In 2020, we had total operating days of 1,733 and fleet utilization of 97.5%, compared to 1,756 operating days and afleet utilization of 98.2% in 2019. The foregoing fleet utilization percentage are based upon the available days of each vessel, being the number of our ownershipdays less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys. We alsohad 1,894 and 1,825 ownership days in 2020 and 2019, respectively. Voyage expenses. Voyage expenses increased by $0.4 million, or 19%, to $2.5 million in 2020, compared to $2.1 million in 2019. This increase is attributed to themore expensive low sulphur fuel we needed to procure for our vessels in order to comply with the IMO’s low sulphur fuel oil requirement, which cuts sulphur levelsfrom 3.5% to 0.5% and became effective as of January 1, 2020. Another factor that contributed to the increase was the considerably longer periods that our vesselswere travelling seeking employment due to the decrease of demand, which is attributed to the outbreak of COVID-19 virus. Vessel operating expenses. Vessel operating expenses decreased by $0.3 million, or 3%, to $8.6 million in 2020, compared to $8.9 million in 2019. The breakdown ofour operating expenses for the year 2020 was as follows: Crew expenses57% Repairs and spares18% Insurance 8% Stores 9% Lubricants 5% Other 3% The decrease is mainly attributed to the decrease of the daily operating expenses of the vessels. Daily vessel operating expenses were $4,531 in 2020 compared to$4,867 in 2019, representing a decrease of 7%. The decrease is partly attributed to the decrease of crew traveling expenses as due to COVID-19 there are restrictionson travelling in many jurisdictions and it is increasingly hard, if not restrictive, for our crews to be relieved by new crew members. Depreciation. Depreciation charge during the year ended December 31, 2020 reached $2.4 million compared to $4.7 million during 2019. This is mainly attributed tothe impairment loss of $4.6 million and $29.9 million we recognized in the first quarter of 2020 and in December 2019, respectively, as the recoverable amounts ofthe vessels were lower than their respective carrying amounts. Depreciation of dry-docking costs. Depreciation of dry-docking costs decreased by $0.4 million, or 24%, to $1.3 million in 2020, compared to $1.7 million in 2019.This is due to the increased cost of dry-dockings that three of our vessels underwent in 2018 and subsequently resulted to a higher depreciation charge in 2019. Administrative expenses. Administrative expenses increased by $0.3 million or 19% to $1.9 million in 2020 from $1.6 million in 2019 mainly due to the increase ofDirectors and Officers insurance premium by approximately $93,000 from approximately $77,000 in 2019 to approximately $170,000 in 2020 and audit fees byapproximately $45,000, from approximately $98,000 in 2019 to approximately $143,000 in 2020. Administrative expenses payable to related parties. Administrative expenses payable to related parties increased by $1.5 million, or 375%, to $1.9 million in 2020compared to $0.4 million in 2019. This is mainly attributed to the agreement in December 2020 to increase the consultancy fees of Goldenmare Limited, an affiliatedentity of our CEO, from €200,000 to €400,000 per annum and additionally a one-time cash bonus of $1.5 million to the consultant pursuant to the consultancyagreement. Share-based payments. Share-based payments for 2020 and 2019 amounted to $40,000. 82  Table of Contents Impairment Loss. During the first quarter of 2020, the Company concluded that the recoverable amounts of the vessels were lower than their respective carryingamounts and recognized an impairment loss of $4.6 million. No further impairment was recorded during the remaining quarters of 2020. As of December 31, 2019,the Company concluded that the recoverable amounts of the vessels were lower than their carrying amounts and recognized an impairment loss of $29.9 million. Interest expense and finance costs. Interest expense and finance costs decreased by $0.5 million, or 11%, to $4.2 million in 2020, compared to $4.7 million in 2019.This decrease is mainly attributed to the prepayment fees and the write off of unamortized loan fees for the early termination of Macquarie Loan Agreement during2019. Our weighted average interest rate for 2020 was 9.44% compared to 8.66% during 2019. Total borrowings outstanding as of December 31, 2020 amounted to$37 million compared to $41.1 million as of December 31, 2019. All of our credit and loan facilities in effect in 2019 and 2020 were denominated in U.S. dollars. Gain / (Loss) on derivative financial instruments. For the year ended December 31, 2020 the loss on the derivative financial instruments is mainly attributed to theconversions and the repayment of the Convertible Note. Further to the conversion clause included into the Convertible Note during the first half of 2020 a totalamount of approximately $1.2 million, principal and accrued interest, was converted to common shares with the conversion price of $100 per share and a totalnumber of approximately 11,677 new shares issued in name of the holder of the Convertible Note. These conversions resulted to a loss of approximately $0.3 millionrecognized in the consolidated statement of comprehensive income/(loss). Furthermore, with the repayment of the Convertible Note on June 25, 2020, we recognizeda loss of $1.3 million in the consolidated statement of comprehensive income/(loss). For the year ended December 31, 2019, the gain on the derivative financialinstruments is mainly attributed to the valuation of the Convertible Note. Inflation Inflation has only a moderate effect on our expenses given current economic conditions. In the event that significant global inflationary pressures appear, thesepressures would increase our operating, voyage, administrative and financing costs. Critical Accounting Policies The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared inaccordance with IFRS as issued by the IASB. The preparation of those consolidated financial statements requires us to make estimates and judgments that affect thereported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities at the date of our consolidated financialstatements. Actual results may differ from these estimates under different assumptions and conditions. Critical accounting policies are those that reflect significant judgments of uncertainties and potentially result in material different results under different assumptionsand conditions. We have described below what we believe are our most critical accounting policies, because they generally involve a comparatively higher degree ofjudgment in their application. For a description of all our significant accounting policies, see Note 2 to our consolidated financial statements included in this annualreport on Form 20-F. Impairment and reversal of previously recognized impairment of Long-Lived Assets: We assess at each reporting date whether there is an indication that a vessel maybe impaired or previously recognized impairment losses shall be reversed. Impairment losses or reversal of previously recognized impairment losses are recognizedin the consolidated statement of comprehensive income/(loss). The vessel’s recoverable amount is estimated when events or changes in circumstances indicate the carrying value may not be recoverable or when there is anindication that an impairment loss recognized in prior periods for a vessel may no longer exist or may have decreased. If such indication exists and where the carrying value exceeds the estimated recoverable amounts, the vessel is written down to its recoverable amount. Therecoverable amount is the greater of fair value less costs to sell and value-in-use. In assessing value-in-use, the estimated future cash flows are discounted to theirpresent value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the vessel. This assessment is made atthe individual vessel level as separately identifiable cash flow information for each vessel is available. We determine the fair value of our assets based onmanagement estimates and assumptions and by making use of available market data and taking into consideration third party valuations. 83  Table of Contents Discounted future cash flows for each vessel are usually determined and compared to the vessel’s carrying value. For the discount factor in 2020, we applied theWeighted Average Cost of Capital rate that was calculated to be 4.06% as at December 31, 2020. The projected net discounted future cash flows for the first yearwere determined by considering an estimate daily time charter equivalent based on the most recent blended (for modern and older vessels) FFA (i.e., Forward FreightAgreements) time charter rate for the remaining year of 2020 for each type of vessel. For the remaining useful life of the vessels, we used the historical ten-yearblended average one-year time charter rates substituting for the year 2016 that was considered as extreme value, with the year 2010. Expected outflows for scheduledvessels maintenance were taken into consideration as well as vessel operating expenses assuming an average annual increase rate of approximately 1% based on thehistorical trend deriving from actual results for the Company’s vessels since their delivery under Company’s technical management. The average time charter ratesused were in line with the overall chartering strategy, especially in periods/years of depressed charter rates; reflecting the full operating history of vessels of the sametype and particulars with the Company’s operating fleet (Supramax, Panamax and Kamsarmax vessels with a deadweight tonnage of more than 50,000, 70,000 and80,000, respectively) and they covered at least one full business cycle. Effective fleet utilization was assumed at 87% and 90% (including ballast days) for theSupramaxes and the Panamaxes/Kamsarmaxes, respectively, taking into account the period(s) each vessel is expected to undergo her scheduled maintenance(drydocking and special surveys), as well as an estimate of the period(s) needed for finding suitable employment and off-hire for reasons other than scheduledmaintenance, assumptions in line with the Company’s expectations for future fleet utilization under the current fleet deployment strategy. In addition, in terms of our estimates for the charter rates for the unfixed period, at the beginning of 2021 we consider that the FFA for the remaining year of 2021,which is applied in our model for the first year which is not fixed, approximates historical low levels and fully reflects the conceivable downside scenario. As at March 31, 2020, we concluded that the recoverable amounts of the vessels were lower than their carrying amounts and recognized an impairment loss of $4.6million. As at December 31, 2020, we concluded that the recoverable amounts of the vessels were higher than their carrying amounts and concluded that noadditional impairment loss should be recognized. As at December 31, 2021, we performed an assessment on whether there were indicators that a vessel(s) may beimpaired and no impairment indicators were identified for the Company’s vessels. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the lastimpairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed thecarrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal isrecognized in the consolidated statement of comprehensive income/(loss). After such a reversal, the depreciation charge is adjusted in future periods to allocate theasset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. Such reversal indicators are: ØObservable indications that the vessel’s value has increased significantly, and such increased value will be sustained for the remaining of itseconomic useful life.ØSignificant favorable changes in the technological, economic or legal environment that are expected to positively affect the revenue generatingability of the vessel for the remaining of its economic useful life.ØMarket interest rates of return on investments have decreased during the period, which will result in sustainable increased profitability. For the year ended December 31, 2021, we have assessed current market trends as well as the historical market data, historical market volatility and variousqualitative factors and concluded that no indicators for reversal of impairment were present as of December 31, 2021 and no reversal of previously recognizedimpairment losses was required. The carrying value of each of our vessels does not necessarily represent its fair market value or the amount that could be obtained if the vessel were sold. Ourestimates of the market values assume that the vessels are in good and seaworthy condition without need for repair and, if inspected, would be certified as being inclass without any recommendations of any kind. Because vessel values are highly volatile, these estimates may not be indicative of either current or future prices thatwe could achieve if we were to sell any of the vessels. We would not record impairment for any of the vessels for which the fair market value is below its carryingvalue unless and until we either determine to sell the vessel for a loss or determine that the vessel’s carrying amount is not recoverable. Although we believe that the assumptions used to evaluate impairment are reasonable and appropriate, these assumptions are highly subjective and we are not able toestimate the variability between the assumptions used and actual results that is reasonably likely to result in the future. 84  Table of Contents As of December 31, 2021 and 2020 we owned and operated a fleet of nine vessels and six vessels, respectively, with an aggregate carrying value of $130.7 and $62.4million, respectively. A vessel-by-vessel carrying value summary as of December 31, 2021 and 2020 follows: Dry bulk VesselsDwtYear BuiltMonth and Yearof AcquisitionPurchase Price(in millions ofU.S. Dollars)Carrying Value as of December31, 2021 (inmillions of U.S.Dollars)Carrying Value as of December31, 2020 (inmillions of U.S.Dollars)m/v River Globe53,6272007December 200757.5 7.47.0m/v Sky Globe56,8552009May 201032.8 7.07.7m/v Star Globe56,8672010May 201032.8 8.9 9.4*m/v Sun Globe58,7902007September 201130.3 8.39.1m/v Moon Globe74,4322005June 201131.4 9.9 10.8*m/v Galaxy Globe81,1672015October 202018.417.418.4m/v Diamond Globe82,0272018June 202127.026.3-m/v Power Globe80,6552011July 202116.217.2-m/v Orion Globe81,8372015November 202128.428.3- 130.762.4 * Indicates vessels which we believe, as of December 31, 2021 and 2020, may have fair values below their carrying values. As of December 31, 2020, we believe thatthe aggregate carrying value of these two vessels exceeded their market value by $2.7 million. As of December 31, 2021 the market value of each of our vesselsexceeded its carrying value. Vessels, net: Vessels are stated at cost, less accumulated depreciation (including depreciation of drydocking costs and component attributable to favorable orunfavorable lease terms relative to market terms) and accumulated impairment losses. Vessel cost consists of the contract price for the vessel and any materialexpenses incurred upon acquisition (initial repairs, improvements and delivery expenses, interest and on-site supervision costs incurred during the constructionperiods). Any seller’s credit, which is the amounts received from the seller of the vessels until date of delivery, is deducted from the cost of the vessel. Subsequentexpenditures for conversions and major improvements are also capitalized when the recognition criteria are met. Otherwise, these amounts are charged to expenses asincurred. Vessels Depreciation: The cost of each of the Company’s vessels is depreciated on a straight-line basis over each vessel’s remaining useful economic life, afterconsidering the estimated residual value of each vessel, beginning when the vessel is ready for its intended use. Management estimates that the useful life of newvessels is 25 years, which is consistent with industry practice. The residual value of a vessel is the product of its lightweight tonnage and estimated scrap value perlightweight ton. The residual values and useful lives are reviewed at each reporting date and adjusted prospectively, if appropriate. Depreciation is based on the costof the vessel less its estimated residual value. Secondhand vessels are depreciated from the date of their acquisition through their remaining estimated useful lives. Adecrease in the useful life of avessel or in its residual value would have the effect of increasing the annual depreciation charge. When regulations place limitations over the ability of a vessel totrade on a worldwide basis, its useful life is adjusted to end at the date such regulations become effective. For the years ended December 31, 2020 and 2019 wemaintained the same scrap rate of $300/ton. During the fourth quarter of 2021, the Company adjusted the scrap rate from $300/ton to $380/ton due to the increasedscrap rates worldwide. This resulted to a decrease of approximately $145,000 of the depreciation charge included in the consolidated statement of comprehensiveincome/(loss) for 2021. Drydocking costs: Approximately every 2.5 years, our vessels are required to be taken out of service and removed from water (known as “drydocking”) for majorrepairs and maintenance that cannot be performed while the vessels are operating. The costs associated with the drydockings are capitalized and depreciated on astraight-line basis over the period between drydockings, to a maximum of 2.5 years. At the date of acquisition of a vessel, management estimates the component ofthe cost that corresponds to the economic benefit to be derived until the first scheduled drydocking of the vessel under our ownership and this component isdepreciated on a straight-line basis over the remaining period through the estimated drydocking date. Costs capitalized are limited to actual costs incurred, such asshipyard rent, paints and related works and surveyor fees in relation to obtaining the class certification. If a drydocking is performed prior to the scheduled date, theremaining unamortized balances of previous drydockings are immediately written off. Unamortized balances of vessels that are sold are written off and included inthe calculation of the resulting gain or loss in the period of the vessel’s sale. Trade accounts receivables, net: The amount shown as trade receivables at each financial position date includes estimated recoveries from charterers for hire, freightand demurrage billings, net of an allowance for doubtful accounts. Trade accounts receivable without a significant financing component are initially measured at theirtransaction price and subsequently measured at amortized cost less impairment losses, which are recognized in the consolidated statement of comprehensiveincome/(loss). At each financial position date, all potentially uncollectible accounts are assessed individually for the purpose of determining the appropriateallowance for doubtful accounts. 85  Table of Contents Derivative financial instruments: Derivative financial instruments, including embedded derivative financial instruments, are initially recognized at fair value on thedate a derivative contract is entered into and are subsequently remeasured at fair value. The fair value of these instruments at each reporting date is derived orcorroborated by observable market data or estimated based on inputs from unobservable data. Depending on the type of derivative financial instrument, inputsinclude quoted prices for similar assets, liabilities (risk adjusted) and market-corroborated inputs, such as market comparables, interest rates, risk free rates, yieldcurves, dividend yields, volatility of quoted market prices and other items that allow value to be determined. Changes in the fair value of these derivative instrumentsare recognized immediately in the income statement component of the consolidated statement of comprehensive income/(loss). B. Liquidity and Capital Resources Our primary sources of liquidity are cash flow from operations, cash on hand, equity offerings and credit facility borrowings. We currently use our funds primarilyfor the acquisition of vessels generally, fleet renewal and repairs, drydocking for our vessels, payment of dividends (if any), debt repayments and satisfying workingcapital requirements as may be needed to support our business. Our ability to continue to meet our liquidity needs is subject to and will be affected by cash utilized inoperations, the economic or business environment in which we operate, shipping industry conditions, the financial condition of our customers, vendors and serviceproviders, our ability to comply with the financial and other covenants of our indebtedness, and other factors. We believe, given our current cash holdings, if drybulk shipping rates do not decline significantly from current levels, our capital resources, including cashanticipated to be generated within the year, are sufficient to fund our operations for at least the next twelve months. Such resources include unrestricted cash and cashequivalents of $45.2 million as of December 31, 2021, which compares to a minimum liquidity requirement under our CIT Loan Facility of approximately $5.2million as of the date of this report. Given the anticipated capital expenditures related to drydockings during 2022 and 2023, respectively, we anticipate to continue tohave significant cash expenditures. Refer to “—Capital Expenditures” below for further details. However, if market conditions were to worsen significantly due to thecurrent COVID-19 pandemic or other causes, then our cash resources may decline to a level that may put at risk our ability to pay our lender and other creditors. InMay 2021, we entered into an agreement with CIT Bank N.A. for a loan facility of up to $34.25 million bearing interest at LIBOR plus a margin of 3.75% per annum.The proceeds of this financing were used to repay the outstanding balance of the EnTrust Loan Facility. There mandatory debt repayments in 2022 under the CITLoan Facility are $5 million, and we have already paid $1.25 million of such amount. As of December 31, 2021, our CIT Loan Facility contained covenants that require (1) a minimum loan to value ratio of 75% for the first 18 months of the CIT LoanFacility and thereafter 70% and (2) a maximum leverage ratio of 0.75:1.00. If the values of our vessels were to decline as a result of COVID-19 or otherwise, we maynot satisfy these requirements. If we do not satisfy these requirement, we will need to post additional collateral or prepay outstanding loans to bring us back intocompliance, or we will need to seek waivers, which may not be available or may be subject to conditions. In the future, we may require capital to fund acquisitions or to improve or support our ongoing operations and debt structure, particularly in light of economicconditions resulting from the ongoing COVID-19 pandemic, the Russian/Ukraine conflict, and general conditions in the dry bulk market. We may from time to timeseek to raise additional capital through equity or debt offerings, selling vessels or other assets, pursuing strategic opportunities, or otherwise. We may also from timeto time seek to incur additional debt financing from private or public sector sources, refinance our indebtedness or obtain waivers or modifications to our creditagreements to obtain more favorable terms, enhance flexibility in conducting our business, or otherwise. We may also seek to manage our interest rate exposurethrough hedging transactions. We may seek to accomplish any of these independently or in conjunction with one or more of these actions. However, if marketconditions are unfavorable, we may be unable to accomplish any of the foregoing on acceptable terms or at all. 86  Table of Contents As of December 31, 2021, we were in compliance with all financial covenants under the CIT Loan Facility. As of December 31, 2021, we had $5.2 million in “restricted cash”. As of December 31, 2021, we had an aggregate debt outstanding of $31.3 million, from the CITLoan Facility. Please see “–Cash Flows” below to see our cash position at December 31, 2021. Please see “Item 5.B. Liquidity and Capital Resources—Indebtedness” for further information about our loan agreements and credit facilities. Our primary uses of funds have been vessel operating expenses, general and administrative expenses, expenditures incurred in connection with ensuring that ourvessels comply with international and regulatory standards, financing expenses and repayments of bank loans. We do not have any binding commitments fornewbuilding contracts, although we may enter into them in the future. Working capital, which is current assets, minus current liabilities, amounted to $37.8 million as of December 31, 2021 and to $9.2 million as of December 31, 2020.If we are unable to satisfy our liquidity requirements, we may not be able to continue as a going concern. Six of our vessels are pledged as collateral to the banks, andtherefore if we were to sell one or more of those vessels, the net proceeds of such sale would be used first to repay the outstanding debt to which the vesselcollateralized, and the remainder, if any, would be for our use, subject to the terms of our remaining loan and credit arrangements. Cash Flows Cash and cash equivalents were $45.2 million in unrestricted bank deposits as of December 31, 2021, $19 million in unrestricted bank deposits as of December 31,2020 and $2.4 million in unrestricted bank deposits as of December 31, 2019. Restricted cash that consist of cash pledged as collateral was $5.2 million at the end of 2021, $2.1 million at the end of 2020 and $2.4 million at the end of 2019. Weconsider highly liquid investments such as bank time deposits with an original maturity of three months or less to be cash equivalents. Net Cash Generated From / (Used In) Operating Activities Net cash generated from operating activities in 2021 amounted to $20.8 million compared to net cash used in operating activities of $6.2 million in 2020. Theincrease is primarily attributable to an increase in the general shipping rates and average TCE rates achieved by the vessels in our fleet in 2021. Net cash used in operating activities in 2020 amounted to $6.2 million compared to net cash generated from operating activities of $0.2 million in 2019. The decreaseis primarily attributable to a decrease in the general shipping rates and average TCE rates achieved by the vessels in our fleet in 2020. Net Cash Used In Investing Activities Net cash used in investing activities was $72 million during the year ended December 31, 2021, which was mainly attributable to the purchase of Power Globe,Diamond Globe and Orion Globe in 2021. Net cash used in investing activities was $18.5 million during the year ended December 31, 2020, which was mainly attributable to the purchase of Galaxy Globe inOctober 2020. Net cash used in investing activities was approximately $20,000 during the year ended December 31, 2019, which was mainly attributable to the purchase of newequipment for the vessels. Net Cash Generated From Financing Activities Net cash generated from financing activities during the year ended December 31, 2021 amounted to $77.4 million and consisted of $89.6 million proceeds drawnfrom the issuance of share capital plus $34.3 million proceeds from our new loan agreement reduced by $0.6 million payment of financing costs for CIT LoanFacility, $0.4 million of transaction costs that we paid for the issuance of new common shares,, $2.6 million of interest paid, $39.5 million of indebtedness that weprepaid under our former loan facility, a $3.1 million increase of pledged bank deposits and a $0.2 million repayment of lease liability. 87  Table of Contents Net cash generated from financing activities during the year ended December 31, 2020 amounted to $41.5 million and consisted of $49.3 million proceeds drawnfrom the issuance of share capital plus $0.2 million from issuance of warrants, reduced by $1.1 million of transaction costs that we paid for the issuance of newcommon shares, $4.2 million of interest paid, $3 million of indebtedness that we repaid under our existing credit and loan facilities, a $0.4 million decrease ofpledged bank deposits and a $0.2 million repayment of lease liability. Net cash generated from financing activities during the year ended December 31, 2019 amounted to $2.1 million and consisted of $1.7 million in proceeds drawnfrom the Firment Shipping Credit Facility entered into for financing general working capital needs, $37 million drawn from EnTrust Loan Facility and $5 millionproceeds from the Convertible Note, reduced by $13.5 million of indebtedness that we repaid on the Macquarie Loan Agreement and $22.2 million of indebtednessthat we repaid on the Hamburg Commercial Loan Facility, a $1.1 million increase of pledged bank deposits, a $0.9 million payment of financing costs for EnTrustLoan Facility, a $30,000 repayment of lease liability and $3.9 million of interest paid. Indebtedness We operate in a capital-intensive industry which requires significant amounts of investment, and we fund a portion of this investment through long-term bank debt. As of December 31, 2021, 2020 and 2019, we and our vessel-owning subsidiaries had outstanding borrowings under the DVB Loan Agreement, the HamburgCommercial Loan Agreement, the Firment Shipping Credit Facility, the Macquarie Loan Agreement, the Convertible Note, the EnTrust Loan Facility and the CITLoan Facility of an aggregate of $31.75 million, $37 million and $41.1 million, respectively. Hamburg Commercial Loan Agreement In February 2015, through our wholly owned subsidiaries, Devocean Maritime Ltd. Domina Maritime Ltd. and Dulac Maritime S.A., we entered into the HamburgCommercial Loan Agreement for an amount up to $30.0 million with Hamburg Commercial Bank Ag (formerly known as HSH Nordbank AG) and used fundsborrowed thereunder with the purpose to part refinance our then existing credit facility with Credit Suisse. On March 3, 2015, $29.4 million was drawn. As at June27, 2019, the balances of all tranches of $20.8 million were fully repaid using the proceedings from the EnTrust Loan Facility. Firment Shipping Credit Facility In November 2018, we entered into a credit facility for up to $15 million with Firment Shipping Inc., a related party to us, for the purpose of financing our generalworking capital needs, which facility was amended and restated on May 8, 2020. The Firment Shipping Credit Facility was unsecured and remained available until itsfinal maturity date at October 31, 2021, as amended. We had the right to drawdown any amount up to $15 million or prepay any amount in multiples of $100,000.Any prepaid amount could have been re-borrowed. Interest on drawn and outstanding amounts was charged at 3.5% per annum until December 31, 2020, andthereafter at 7% per annum. No commitment fee was charged on the amounts remaining available and undrawn. Interest was payable the last day of a period of threemonths after the drawdown date, after this period in case of failure to pay any sum due a default interest of 2% per annum above the regular interest was charged. Wehad also the right, in our sole option, to convert in whole or in part the outstanding unpaid principal amount and accrued but unpaid interest under this Agreementinto common shares. The conversion price would have equaled the higher of (i) the average of the daily dollar volume-weighted average sale price for the commonstock on the Principal Market on any trading day during the period beginning at 9.30 a.m. New York City time and ending at 4.00 p.m. over the Pricing Periodmultiplied by 80%, where the “Pricing Period” equals the ten consecutive trading days immediately preceding the date on which the conversion notice was executedor (ii) $280.00. The Firment Shipping Credit Facility required that Athanasios Feidakis remain our Chief Executive Officer and that FirmentShipping Inc. maintain at least a 40% shareholding in us, other than due to actions taken by Firment Shipping Inc., such as sales of shares. The Company obtainedwaivers from Firment Shipping Inc. waiving this obligation in connection with the public offering on June 22, 2020, the registered direct offerings on June 30, 2020,July 21, 2020, December 7, 2020, January 29, 2021, February 17, 2021 and June 29, 2021, and the issuances of the Series B preferred shares. On July 27, 2020, the Company repaid the total outstanding principal and interest of the Firment Shipping Credit Facility amounting to approximately $863,000. OnOctober 31, 2021, the Firment Shipping Credit Facility expired in accordance with its terms. 88  Table of Contents Macquarie Loan Agreement In December 2018, through our wholly owned subsidiaries, Artful Shipholding S.A. (“Artful”) and Longevity Maritime Limited (“Longevity”), we entered into theMacquarie Loan Agreement for an amount up to $13.5 million with Macquarie Bank International Limited and used funds borrowed thereunder to refinance part ofthe repayment of the existing DVB Loan Agreement for the m/v Moon Globe and m/v Sun Globe. Globus acted as guarantor for this loan. In December 2018, $6million (Artful Advance) and $7.5 million (Longevity Advance) were drawn down for the purpose of partly refinancing the existing DVB Loan Agreement for m/vMoon Globe and m/v Sun Globe, respectively. As at June 28, 2019, the balance of all tranches of $13 million was fully repaid using the proceedings from the EnTrustLoan Facility. Convertible Note On March 13, 2019, we signed a securities purchase agreement with a private investor and on the same date issued, for gross proceeds of $5 million, a seniorconvertible note (the “Convertible Note”) that was convertible into shares of the Company’scommon stock, par value $0.004 per share. If not converted or redeemed beforehand pursuant to the terms of the Convertible Note, the Convertible Note wasscheduled to mature on March 13, 2020, the first anniversary of its issue, but its holder waived the Convertible Note’s maturity until March 13, 2021. TheConvertible Note was issued in a transaction exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The Company signed a registration rights agreement with the private investor pursuant to which we agreed to register for resale the shares that could be issuedpursuant to the Convertible Note, and subsequently filed a registration statement registering the resale of the maximum number of common shares issuable pursuantto the Convertible Note, including payment of interest on the notes through its maturity date, determined as if the Convertible Note (including interest) was convertedin full at the lowest price at which the note may convert pursuant to its terms. The registration rights agreement contained liquidated damages if we were unable toregister for resale the shares into which the convertible note may convert, and maintain such registration. As of December 31, 2019, the amount outstanding with respect to the Convertible Note was $3,308,750. On June 25, 2020, the Company repaid the total outstandingprincipal and interest of the Convertible Note amounting to approximately $2.5 million. EnTrust Loan Facility On June 24, 2019, the Company drew down $37 million and fully prepaid the existing loan facilities with Hamburg Commercial Bank AG (formerly known as HSHNordbank AG) and Macquarie Bank International Limited. The loan facility was in the names of Devocean Maritime Ltd., Domina Maritime Ltd, Dulac MaritimeS.A., Artful Shipholding S.A. and Longevity Maritime Limited as the borrowers and is guaranteed by Globus. The loan facility bears interest at LIBOR plus a marginof 8.50% (or 10.5% default interest) for interest periods of three months. This loan facility was referred to as EnTrust loan facility. In March 2021, the Company prepaid $6.0 million of the Entrust loan facility, which represented all amounts that would otherwise come due during calendar year2021 and on May 10, 2021, the Company fully prepaid the balance of the EnTrust Loan facility. CIT Loan Facility In May 2021, Globus Maritime Limited entered into a term loan facility with CIT Bank, N.A., relating to the refinancing of our ships, the River Globe, Sky Globe,Star Globe, Moon Globe, Sun Globe, and Galaxy Globe. The borrowers under the CIT Loan Facility are Devocean Maritime Ltd., Domina Maritime Ltd, DulacMaritime S.A., Artful Shipholding S.A., Longevity Maritime Limited and Serena Maritime Limited and the CIT Loan Facility is guaranteed by Globus MaritimeLimited. The loan agreement was for the lesser of $34,250 and 52.5% of the aggregate market value of our ships. We drew an aggregate of $34,250 at closing and used asignificant portion of the proceeds to fully repay the amounts outstanding under our loan agreement with EnTrust. We also entered into a swap agreement withrespect to LIBOR. We paid CIT Bank an upfront fee in the amount of 1.25% of the total commitment of the loan. 89  Table of Contents The CIT Loan Facility consists of six tranches, which shall be repaid in 20 consecutive quarterly instalments with each instalment in an aggregate amount of$1,250,000 as well as a balloon payment in an aggregate amount of $9,250,000 due together with the 20th and final instalment due in August 2026. The CIT Loan Facility bears interest at LIBOR plus 3.75% (or 5.75% default interest). Following any permanent or indefinite cessation of any tenor for LIBOR usedfor purposes of the CIT Loan (or earlier based on market conditions as notified by CIT Bank), LIBOR shall be replaced with SOFR as the benchmark rate, subject tocertain exceptions. The CIT Loan Facility may be prepaid. If the prepayment occurs on or before May 10, 2022, the prepayment fee is 2% of the amount prepaid, subject to certainexceptions. If the prepayment occurs on or before May 10, 2023 but after May 10, 2022, the prepayment fee is 1% of the amount prepaid, subject to certainexceptions. We cannot reborrow any amount of the CIT Loan that is prepaid or repaid. The CIT Loan Facility is secured by: • First preferred mortgage over m/v River Globe, m/v Sky Globe, m/v Star Globe, m/v Moon Globe, m/v Sun Globe and m/v Galaxy Globe. • Guarantee from Globus Maritime Limited and joint liability of the six vessel owning companies (each of which is a borrower under the CIT Loan Facility). • Shares pledges respecting each borrower. • Pledges of bank accounts, a pledge of each borrower’s rights under any interest rate hedging agreement in respect of the CIT Loan Facility, a general assignmentover each ship's earnings, insurances and any requisition compensation in relation to that ship, and an assignment of the rights of Globus with respect to anyindebtedness owed to it by the borrowers. We are not permitted, without the written consent of CIT, to enter into a charter the duration of which exceeds or is capable of exceeding, by virtue of any optionalextensions, 12 months. The CIT Loan Facility contains various covenants requiring the vessels owning companies and/or Globus Maritime Limited to, among other things, ensure that: -The borrowers, must maintain a minimum liquidity at all times of not less than $500,000 for each mortgaged ship. -For the first 18 months of the utilization of the loan, a minimum loan to value ratio of 75% and thereafter 70%. -Each borrower must maintain in its earnings account $150,000 in respect of each ship then subject to a mortgage. -Globus Maritime Limited must maintain cash in an amount of not less than $150,000 for each ship that it owns that is not subject to a mortgage as part of theCIT Loan. -Globus Maritime Limited must have a maximum leverage ratio of 0.75:1.00. -If Globus Maritime Limited pays a dividend, subject to certain exceptions, then the debt service coverage ratio (i.e., aggregate EBITDA of Globus MaritimeLimited for any period to the debt service for such period) after such dividend and for the remain of the CIT Loan Facility shall be at least 1.15:1.00. Each borrower must create a reserve fund in the reserve account to meet the anticipated dry docking and special survey fees and expenses for the relevant ship ownedby it and (for certain ships) the installation of ballast water treatment system on the ship owned by it by maintaining in the reserve account a minimum credit balancethat may not be withdrawn (other than for the purpose of covering the documented and incurred costs and expenses for the next special survey of that ship). Amountsmust be paid into this reserve account quarterly, such that $1,200,000 is set aside by each borrower for its ship’s special survey, except for Serena Maritime Limited,who is required to set aside quarterly payments that aggregate to $900,000. No borrower shall incur or permit to be outstanding any financial indebtedness except “Permitted Financial Indebtedness.” “Permitted Financial Indebtedness” means: (a) any financial indebtedness incurred under the finance documents; (b) the indebtedness under the EnTrust loan, which has been repaid; 90  Table of Contents (c) any financial indebtedness (including permitted inter-company loans) that is subordinated to all financial indebtedness incurred under the finance documentspursuant to a subordination agreement or, in the case of any permitted inter-company loans pursuant to the CIT Loan Facility or otherwise and which is, in the case ofany such financial indebtedness of a borrower (other than financial indebtedness arising out of any permitted inter-company loan), the subject of subordinated debtsecurity; and (d) in relation to a ship, any trade debt on arm's length commercial terms reasonably incurred in the ordinary course of owning, operating, trading, chartering,maintaining and repairing that ship, which, (i) until 90 days from May 10, 2021 does not exceed $500,000 (or the equivalent in any other currency) in aggregate inrespect of that ship and remains unpaid; and (b) on and from the date falling after 90 days from May 10, 2021 is (x) up to $50,000 (or the equivalent in any othercurrency) in aggregate in respect of that ship and does not remain unpaid for more than 90 days of (A) its due date or (B) in the case where the borrower owning thatship has not received the relevant invoice, the date on which that borrower becomes aware that the invoice is due and remains outstanding; and (y) is more than$50,000 and does not exceed $500,000 (or the equivalent in any other currency) in aggregate in respect of that ship and does not remain unpaid for more than 30 daysof (A) its due date or (B) in the case where the borrower owning that ship has not received the relevant invoice, the date on which that borrower becomes aware thatthe invoice is due and remains outstanding. Globus Maritime Limited is prohibited from making dividends (other than up to $500,000 annually on or in respect of its preferred share) in cash or redeem orrepurchase its shares unless there is no event of default under the CIT Loan Facility, the net loan to value ratio is less than 60% before the making of the dividend andGlobus Maritime Limited is in compliance with the debt service coverage ratio, and Globus Maritime Limited must prepay the CIT Loan Facility in an equal amountof the dividend. The CIT Loan Facility also prohibits certain changes of control, including, among other things, the delisting of Globus from the Nasdaq or another internationallyrecognized stock exchange, or the acquisition by any person or group of persons (acting in concert) of a majority of the shareholder voting rights or the ability toappoint a majority of board members or to give directions with respect to the operating and financial policies of Globus Maritime Limited with which the directorsare obliged to comply, other than those persons disclosed to CIT Bank on or around the date of the CIT Loan Facility and their affiliates and immediate familymembers. As at December 31, 2021, the Company was in compliance with the covenants of the CIT Loan Facility. We believe that the CIT Loan Facility is adequate to meetour needs for the foreseeable future based on our current vessel ownership. Financial Instruments The major trading currency of our business is the U.S. dollar. Movements in the U.S. dollar relative to other currencies can potentially impact our operating andadministrative expenses and therefore our operating results. We believe that we have a low risk approach to treasury management. Cash balances are invested in term deposit accounts, with their maturity dates projected tocoincide with our liquidity requirements. Credit risk is diluted by placing cash on deposit with a variety of institutions in Europe, including a small number of banksin Greece, which are selected based on their credit ratings. We have policies to limit the amount of credit exposure to any particular financial institution. As of December 31, 2021, 2020 and 2019, we did not use any financial instruments designated in our consolidated financial statements as those with hedgingpurposes. Capital Expenditures We make capital expenditures from time to time in connection with our vessel acquisitions or vessel improvements. On June 9, 2021, we took delivery of the m/v “Diamond Globe”, a 2018-built Kamsarmax dry bulk carrier, through its subsidiary, Argo Maritime Limited, for apurchase price of $27 million financed with available cash. The m/v “Diamond Globe” was built at Jiangsu New Yangzi Shipbuilding Co., Ltd and has a carryingcapacity of 82,027 dwt. 91  Table of Contents On July 20, 2021, we took delivery of the m/v “Power Globe”, a 2011-built Kamsarmax dry bulk carrier, through its subsidiary, Talisman Maritime Limited, for apurchase price of $16.2 million financed with available cash. The m/v “Power Globe” was built at Universal Shipbuilding Corporation in Japan and has a carryingcapacity of 80,655 dwt. On November 29, 2021, we took delivery of the m/v “Orion Globe”, a 2015-built Kamsarmax dry bulk carrier, through its subsidiary, Salaminia Maritime Limited,for a purchase price of $28.4 million financed with available cash. The m/v “Orion Globe” was built at Tsuneishi Zosen in Japan and has a carrying capacity of81,837 dwt. We have no binding agreements to purchase any additional vessels but may do so in the future. We expect that any purchases of vessels will be paid for with cashfrom operations, with funds from new credit facilities from banks with whom we currently transact business, with loans from banks with whom we do not have abanking relationship but will provide us funds at terms acceptable to us, with funds from equity or debt issuances or any combination thereof. We incur additional capital expenditures when our vessels undergo surveys. This process of recertification may require us to reposition these vessels from a dischargeport to shipyard facilities, which will reduce our operating days during the period. The loss of earnings associated with the decrease in operating days, together withthe capital needs for repairs and upgrades, is expected to result in increased cash flow needs. We expect to fund these expenditures with cash on hand. C. Research and Development, Patents and Licenses, etc. We incur, from time to time, expenditures relating to inspections for acquiring new vessels that meet our standards. Such expenditures are insignificant and they areexpensed as they incur. D. Trend Information Our results of operations depend primarily on the charter rates earned by our vessels. Over the course of 2021, the BDI registered a low of 1,303 on February 10,2021 and a high of 5,650 on October 7, 2021.Since the start of the financial crisis in 2008 the performance of the BDI has been characterized by high volatility, as the growth in the size of the dry bulk fleetoutpaced growth in vessel demand for an extended period of time.Specifically, in the period from 2010 to 2020, the size of the fleet in terms of deadweight tons grew by an annual average of about 6.0% while the correspondinggrowth in demand for dry bulk carriers grew by 3.1%, resulting in a drop of about 61% in the value of the BDI over the period. In 2021, the total size of the dry bulkfleet rose by about 3.6%, compared to demand growth of 4.1%, which resulted in a 176% increase in the BDI. Clarkson’s projects that the supply of dry bulk vessels,as measured in cargo-carrying capacity, will increase 4.7% from 2021-2023.Charter (or hire) rates paid for dry bulk vessels are generally a function of the underlying balance between vessel supply and demand. Over the past 25 years, drybulk cargo charter rates have passed through cyclical phases and changes in vessel supply and demand have created a pattern of rate “peaks” and “troughs.”Generally, short-term or spot/voyage charter rates will be more volatile than time charter rates, as they reflect short term movements in demand and market sentiment.The BDI remained significantly depressed from 2008-2018. In 2019 the BDI was volatile and ranged from 595 on February 11, 2019 to as high as 2,518 onSeptember 3, 2019. In 2020, the BDI ranged from a low of 393 on May 14, 2020 to a high of 2,097 on October 6, 2020. In 2021, the BDI rose to a high of 5,650 onOctober 7, 2021 and had a low of 1,303 on February 10, 2021. During calendar year 2022 to date, the BDI has ranged from a high of 2,727 (on March 14, 2022) to alow of 1,296 (on January 26, 2022). In the beginning of 2022, the forecast for World GDP was expected to increase by 4.4% for the year 2022 and 3.8% for the year 2023, yet many analysts now predicta negative effect on 0.2%- 1% due to the hostilities between Russia and Ukraine. The black sea region is an important area for dry bulk shipping, as major grain cargoes are loaded and transported in the black sea for worldwide discharging. Ashostilities continue to escalate, we are aware that these grain volumes may be sourced elsewhere. This means increased ton miles for the dry bulk fleets as thesecommodities will need to be sourced possibly from the USG or ECSA areas, and travel to the far east. As a result, the coal trade flows may be significantly affectedespecially in the event that countries and regions decide to move away from Russian sourced energy commodities; these then will have to be sourced from elsewhere- potentially through faraway overseas routes. There is no doubt that if the hostilities continue there will be significant volatility and increased uncertainty with ahuge impact on the dry bulk market, and it remains to be seen whether that impact will be negative. 92  Table of Contents The dry bulk orderbook stands at 63.4 million dwt, or 6.7% as percentage of the world’s total dry bulk fleet. Specifically, it is 6.7% for the Capesize segment, 8.3% orthe Panamax (Kamsarmax) segment and 6% for the Handymax segment. The fleet orderbook comprises deliveries of 25.2 million dwt, or 2.7%, for 2022 and 26.9million dwt, or 2.8%, for 2023. Please read “Item 4.B. Information on the Company—Business Overview,” Item 5.A. Operating and Financial Review and Prospects—Operating Results” and “Item5.A. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources.” E. Critical Accounting Estimates Because we apply in our primary financial statements IFRS as issued by the IASB, we are not required to discuss information about our critical accounting estimateshere. Item 6. Directors, Senior Management and Employees A. Directors and Senior Management The following table sets forth information regarding our executive officer, our directors and our secretary. Our articles of incorporation provide for a board ofdirectors serving staggered, three-year terms, other than any members of our board of directors that may serve at the option of the holders of preferred shares, if anyare issued with relevant appointment powers. The term of our Class I directors expires at our annual general meeting of shareholders in 2023, the term of our Class IIdirectors expires at our annual general meeting of shareholders in 2024, and the term of our Class III directors expires at our annual general meeting of shareholdersin 2022. Officers are appointed from time to time by our board of directors and hold office until a successor is appointed or their employment is terminated. Thebusiness address of each of the directors and officers is c/o Globus Shipmanagement Corp., 128 Vouliagmenis Avenue, 3rd Floor, 166 74 Glyfada, Attica, Greece. Name Position Age Georgios Feidakis Director, Chairman of the Boardof Directors 71 Ioannis Kazantzidis Director 71 Jeffrey O. Parry Director 62 Athanasios Feidakis Director, President, ChiefExecutive Officer, ChiefFinancial Officer 35 Olga Lambrianidou Secretary 66 Georgios (“George”) Feidakis, a Class III director, is our founder and has served as our non-executive chairman of the board of directors since inception. Mr.George Feidakis is also the major shareholder and Chairman of F.G. Europe S.A., a company Mr. George Feidakis has been involved with since 1994, and acts as adirector and executive for several of its subsidiaries. FG Europe is active in four lines of business and distributes well-known brands in Greece, the Balkans, Turkey,Italy and UK. FG Europe is also active in the air-conditioning and white/brown electric goods market in Greece and ten other countries in Europe as well as in theproduction of renewal energy. Mr. George Feidakis is also the director and chief executive officer of R.F. Energy S.A., a company that plans, develops and controlsthe operation of energy projects, and acts as a director and executive for several of its subsidiaries. As of January 31, 2017, Mr. Feidakis is the majority shareholderof Eolos Shipmanagement SA. Mr. Feidakis is also a principal shareholder of Cyberonica S.A., a family-owned business and our landlord since inception. Athanasios (“Thanos”) Feidakis,* a Class I director was appointed to our board of directors in July 2013. In December 2015, Mr. Athanasios Feidakis was alsoappointed our President, CEO and CFO. From October 2011 through June 2013, Mr. Athanasios Feidakis worked for our operations and chartering department as anoperator. Prior to that and from September 2010 to May 2011, Mr. Athanasios Feidakis worked for ACM, a shipbroking firm, as an S&P broker, and from October2007 to April 2008, he worked for Clarksons, a shipbroking firm, as a chartering trainee on the dry cargo commodities chartering and on the sale and purchase ofvessels. From April 2011 to April 2016, Mr. Athanasios Feidakis was a director of F.G. Europe S.A., a company controlled by his family, specializing in thedistribution of well-known brands in Greece, the Balkans, Turkey, Italy and UK. From December 2008 to December 2015, Mr. Athanasios Feidakis was the Presidentof Cyberonica S.A., a family-owned company specializing in real estate development. Mr. Athanasios Feidakis holds a B.Sc. in Business Studies and a M.Sc. inShipping Trade and Finance from the Cass Business School (City University London) and an MBA from London School of Economics. In addition, Mr. AthanasiosFeidakis has professional qualifications in dry cargo chartering and operations from the Institute of Chartered Shipbrokers. 93  Table of Contents Jeffrey O. Parry, a Class II director, has served as our director since July 2010. Mr. Parry is currently the president of Mystic Marine Advisors LLC, a Connecticutbased firm providing strategic advice and execution for turnaround and emerging companies and their stakeholders which he founded in 1998. As of April 2021, Mr.Parry is a member of the board of advisors of Elevai Labs, Inc. a California based skin care company. Mr. Parry was chairman of the board of directors of TBSShipping Limited from April 2012 until March 2018. From July 2008 to October 2009, he was president and chief executive officer of Nasdaq-listed Aries MaritimeTransport Limited. Mr. Parry holds a B.A. from Brown University and an MBA from Columbia University. Ioannis Kazantzidis, a Class I director, was appointed to our board in November 2016 to fill a vacancy in our board of directors. Mr. Kazantzidis has been theprincipal of Porto Trans Shipping LLC, a shipping and logistics company based in the United Arab Emirates, since 2007. Between 1987 to 2007, Mr. Kazantzidis waswith HSBC Group, where he served in managerial positions participating in the development and implementation of financial systems in multiple locations. Mr.Kazantzidis has since 2009 been a Director of Saeed Mohammed Heavy Equipment Trading LLC, a general trading company, based in Jebel Ali, UAE. Mr.Kazantzidis has served as the Chairman of Nazaki Corporation, a private investment company based in the British Virgin Islands, since 1988. Mr. Kazantzidis hasserved, from 2015 to 2018, as the Chairman of W.M.Mendis Hotel Pvt Ltd in the Republic of Sri Lanka. From 1989 to 2015, he was the Chairman of FishermansWharf Pvt Ltd, and a director of Dow Corning Lanka Pvt Ltd from 2000 to 2013 and Propasax Pvt Ltd from 2010 to 2015. Olga Lambrianidou, our secretary, has been a corporate consultant to the Company since November 2010, and was appointed as secretary to the Company inDecember 2012. Prior to joining Globus, Ms. Lambrianidou was the Corporate Secretary and Investor Relations Officer of NewLead Holdings Ltd., formerly knownas Aries Maritime Limited from 2008 to 2010, and of DryShips Inc., a dry bulk publicly trading shipping company from 2006 to 2008. Ms. Lambrianidou wasCorporate Secretary, Investor Relations Officer and Human Resources Manager with OSG Ship Management (GR) Ltd., formerly known as Stelmar Shipping Ltd.from 2000 to 2006. Prior to 2000, Ms. Lambrianidou worked in the banking and insurance fields in the United States. She holds a BBA Degree in Marketing/EnglishLiterature from Pace University and an MBA Degree in Banking/Finance from the Lubin School of Business of Pace University in New York. *Athanasios Feidakis is the son of our Chairman, George Feidakis. Other than the aforementioned, there are no other family relationships between any of ourdirectors or senior management. There are no arrangements or understandings with major shareholders, customers, suppliers or others, pursuant to which any personreferred to above was selected as a director or member of senior management. See, however, the covenants of our CIT Loan Facility. The Company is not aware of any agreements or arrangements between any director and any person or entity other than the Company relating to the Compensation orother payments in connection with such director’s candidacy or service as a director of the Company. B. Compensation In August 2016, the Company entered into a consultancy agreement with Goldenmare Limited, an affiliated company of our CEO, Mr. Athanasios Feidakis, for thepurpose of providing consulting services to the Company in connection with the Company’s international shipping and capital raising activities, including but notlimited to assisting and advising the Company’s CEO. The annual fees for the services provided previously amounted to €200,000. Goldenmare Limited is eligible toreceive bonus compensation (whether in the form of cash and/or equity and/or quasi-equity awards) for the services provided and such bonus shall be determined bythe Remuneration Committee or the Board of the Company. If the Company terminates the agreement without cause, or either party terminates after a change ofcontrol of the Company, then we will pay the consultant double the annual consulting fees plus the average annual bonus (including the value of equity awards)granted to the consultant throughout the term of the consultancy agreement. In December 2020, we agreed to increase the consultancy fees of Goldenmare Limitedfrom €200,000 to €400,000 per annum and additionally pay a one-time cash bonus of $1.5 million pursuant to the consultancy agreement, all of which bonus waspaid in 2021. In addition, in December 2021, we agreed to pay a one-time cash bonus of $1.5 million to Goldenmare Limited pursuant to the consultancy agreement,half of which is to be paid immediately and the other half during 2022, if at the time of the payment Mr. Athanasios Feidakis remains chief executive officer and theconsultant has not terminated its consultancy agreement. At the time of the filing of the annual report on Form 20-F, none of the bonus approved in 2022 has beenpaid. Each of our other directors has a contract relating to his appointment as a director. 94  Table of Contents In 2021, the aggregate remuneration that should have been paid for our executive officer or a consultant affiliated with our executive officer amounted toapproximately $1.2 million, but we paid approximately $231,000 and owed approximately $985,000 as of December 31, 2021. In 2022, we paid approximately$10,000 of the owed amount. The aggregate remuneration that should have been paid for our executive officer or a consultant affiliated with our executive officer in2020 was approximately $1.8 million (and we paid $200,000 in 2020 and $1.6 million in 2021) and was approximately $224,000 in 2019. The aggregate compensation, including bonuses, actually paid to members of our senior management (namely, only our Chief Executive Officer) or a consultant forwhich an executive officer is an affiliate (including amounts that were owed from previous years) was approximately $1.9 million in 2021, $650,000 in 2020, and$49,000 in 2019. Our senior management received no common shares in 2021, 2020 and 2019. In addition, we owed our senior management or a consultant affiliatedwith our senior management, $985,000, $1.7 million and $557,000 on December 31, 2021, 2020 and 2019, respectively. We currently owe our senior management ora consultant affiliated with our senior management an aggregate of $975,000. The aggregate compensation other than share based compensation actually paid to our non-executive directors in 2021 was $120,000, in 2020 was approximately$311,250 and in 2019 was $30,000. In addition, in 2021, 2020 and 2019, non-executive directors (excluding our non-executive Chairman, Mr. George Feidakis)received an aggregate of 12,178 common shares, 2,812 common shares and 180 common shares, respectively. As of December 31, 2021, we had not yet paid ournon-executive directors the cash amounts that we agreed to pay them for their prior service; such amount in the aggregate was $105,000 for 2021, which amount waspaid in 2022. In addition, in 2022 we agreed to change how we compensate our non-executive directors. In the aggregate, the annual service fee for each of ourdirectors (based on their current roles and committee seats) is $80,000 based on the annual service fees, committee fees, and other similar fees. Our Greek employees are bound by Greek labor law, which provides certain payments to these employees upon their dismissal or retirement. We accrued as ofDecember 31, 2021 a non-current liability of approximately $114,000 for such payments. We do not have a retirement plan for our officers or directors. C. Board Practices Our board of directors and executive officer oversee and supervise our operations. Each director holds office until his successor is elected or appointed, unless his office is earlier vacated in accordance with the articles of incorporation or with theprovisions of the BCA. In addition to cash compensation, we historically paid each of Mr. Kazantzidis and Mr. Parry $20,000 in common shares annually, however,in 2022 we changed our policies and each of our directors receives cash payments as further detailed in “Item 6.B. Directors, Senior Management and Employees—Compensation.” The members of our senior management are appointed to serve at the discretion of our board of directors. Our board of directors and committees ofour board of directors schedule regular meetings over the course of the year. Under the Nasdaq rules, we believe that Mr. Ioannis Kazantzidis and Mr. Parry areindependent. We have an Audit Committee, a Remuneration Committee and a Nomination Committee. The Audit Committee is comprised of Ioannis Kazantzidis and Jeffrey O. Parry. It is responsible for ensuring that our financial performance is properly reported onand monitored, for reviewing internal control systems and the auditors’ reports relating to our accounts and for reviewing and approving all related party transactions.Our board of directors has determined that Ioannis Kazantzidis is our audit committee financial expert. Each Audit Committee member has experience in reading andunderstanding financial statements, including statements of financial position, statements of comprehensive income and statements of cash flows. The Remuneration Committee is comprised of Jeffrey O. Parry, Athanasios Feidakis, and Ioannis Kazantzidis. It is responsible for determining, subject to approvalfrom our board of directors, the remuneration guidelines to apply to our executive officer, secretary and other members of the executive management as our board ofdirectors designates the Remuneration Committee to consider. It is also responsible for suggesting the total individual remuneration packages of each directorincluding, where appropriate, bonuses, incentive payments and share options. The Remuneration Committee is responsible for declaring dividends on our Series APreferred Shares, if any. The Remuneration Committee will also liaise with the Nomination Committee to ensure that the remuneration of newly appointed executivesfalls within our overall remuneration policies. While Athanasios Feidakis is not an independent director, we believe that, as our Chief Executive Officer, he has asubstantial vested interest in our success and his particular input will significantly aid and assist us. 95  Table of Contents The Nomination Committee is comprised of George Feidakis, Ioannis Kazantzidis and Jeffrey O. Parry. It is responsible for reviewing the structure, size andcomposition of our board of directors and identifying and nominating candidates to fill board positions as necessary. For information about the term of each director, see “Item 6. Directors, Senior Management and Employees - A. Directors and Senior Management”. D. Employees As of December 31, 2021, we had 20 full-time employees and two consultants that we hired directly. All of our employees are located in Greece and are engaged inthe service and management of our fleet. None of our employees are covered by collective bargaining agreements, although certain crew members (which are not ouremployees but hired through crewing agents) are parties to collective bargaining agreements. We do not employ a significant number of temporary employees. E. Share Ownership With respect to the total number of common shares owned by our executive officer and our directors, individually and as a group, please read “Item 7. MajorShareholders and Related Party Transactions.” Incentive program We maintain an equity incentive program, because we believe that equity awards are important to align our employees’ interests with those of our shareholders. Ourequity incentive program is administered by our Remuneration Committee or, in certain circumstances, our board of directors. The Remuneration Committeegenerally measures our performance in terms of total shareholder return, which is calculated based on changes in our share price and our dividends paid over acalendar year, which we refer to as TSR. Our board of directors believe that these awards keep our employees focused on our growth, as well as dividend growth and its impact on our share price, over anextended time period. The 2012 Equity Incentive Plan of Globus Maritime Limited, or the “EIP,” provides for the award of stock options, stock appreciation rights, restricted stock,restricted stock units and unrestricted stock, for directors, officers and employees (including any prospective officer or employee) of our Company and oursubsidiaries and affiliates and consultants and service providers (including individuals who are employed by or provide services to any entity that is itself such aconsultant or service provider) to our Company and our subsidiaries and affiliates, with the goal of providing such persons the incentive to enter into and remain inthe service of the Company or its affiliates, acquire a proprietary interest in the success of the Company, maximize their performance and enhance the long-termperformance of the Company. The EIP was amended August 12, 2016 to clarify that the full board of directors may act as plan administrator. Administration. The EIP is administered by the Remuneration Committee of our board of directors, or such other committee of the board of directors designated bythe board of directors (which could be the board of directors itself). We refer to the body administering the EIP as the “Administrator.” The EIP allows theAdministrator to delegate its rights to the extent consistent with applicable law and our organizational documents. The Administrator has the authority to, amongother things, designate the persons to receive awards under the EIP; determine the types of awards granted to a participant under the EIP; determine the number ofshares to be covered by, or with respect to which payments, rights or other matters are to be calculated with respect to, awards; determine the terms and conditions ofany awards; determine whether, and to what extent, and under what circumstances, awards may be settled or exercised in cash, shares, other securities, other awardsor other property, or cancelled, forfeited or suspended, and the methods by which awards may be settled, exercised, cancelled, forfeited or suspended; determinewhether, to what extent, and under what circumstances cash, shares, other securities, other awards, other property and other amounts payable with respect to an awardshall be deferred, either automatically or at the election of the holder thereof or the Administrator; construe, interpret and implement the EIP and any AwardAgreement; prescribe, amend, rescind or waive rules and regulations relating to the EIP, including rules governing its operation, and appoint such agents as it shalldeem appropriate for the proper administration of the EIP; make all determinations necessary or advisable in administering the EIP; correct any defect, supply anyomission and reconcile any inconsistency in the EIP or any Award Agreement; and make any other determination and take any other action that the Administratordeems necessary or desirable for the administration of the EIP. The board of directors has the right to alter or amend the EIP. 96  Table of Contents Number of Shares. Subject to adjustment in the event of any distribution, recapitalization, split, merger, consolidation or similar corporate event, 100,000 of ourcommon shares are available for delivery pursuant to awards granted under the EIP. Awards may not be paid in cash. Shares subject to an award under the EIP thatare cancelled, forfeited, exchanged, settled incash or otherwise terminated, including withheld to satisfy exercise prices or tax withholding obligations, are available for delivery pursuant to other awards. Sharesissued pursuant to the EIP may be authorized but unissued common shares or treasury shares. Award Agreements. Each award granted under the EIP shall be evidenced by a written certificate, which we refer to as an Award Agreement, which shall containsuch provisions as the Administrator may deem necessary or desirable and which may, but need not, require execution or acknowledgment by a grantee. Each Awardshall be subject to all of the terms and provisions of the EIP and the applicable Award Agreement. Stock Options. A stock option is a right to purchase shares at a specified price during a specified time period. The EIP permits the grant of options covering ourcommon shares. The Administrator may make grants under the EIP to participants containing such terms as the Administrator shall determine. No option shall betreated as an “incentive stock option” for purposes of the Code. Stock options granted will become exercisable over a period determined by the Administrator. EachAward Agreement with respect to an option shall set forth the exercise price of such Award and, unless otherwise specifically provided in the Award Agreement, theexercise price of an option shall equal the fair market value of a common share on the date of grant; provided that in no event may such exercise price be less than thegreater of the fair market value of a common share on the date of grant and the par value of a common share. Restricted Shares. A restricted share grant is an award of common shares that vests over a period of time and is subject to forfeiture until it has vested. TheAdministrator may determine to make grants of restricted shares under the EIP to participants containing such terms as the Administrator shall determine. TheAdministrator will determine the period over which restricted shares granted to participants will vest and the voting provisions. The Administrator, in its discretion,may base its determination upon the achievement of specified financial objectives. Stock Appreciation Rights. A stock appreciation right is the right, subject to the terms of the EIP and the applicable Award Agreement, to receive from the Companyan amount equal to (i) the excess of the fair market value of a common share on the date of exercise of the stock appreciation right over the exercise price of the stockappreciation right, multiplied by (ii) the number of shares with respect to which the stock appreciation right is exercised. Each Award Agreement with respect to astock appreciation right shall set forth the exercise price of such Award and, unless otherwise specifically provided in the Award Agreement, the exercise price of astock appreciation right shall equal the fair market value of a common share on the date of grant; provided that in no event may such exercise price be less than thegreater of (A) the fair market value of a common share on the date of grant and (B) the par value of a common share. Payment upon exercise of a stock appreciationright shall be in cash or in common shares (valued at their fair market value on the date of exercise of the stock appreciation right) or any combination of both, all asthe Administrator shall determine. Upon the exercise of a stock appreciation right granted in connection with an option, the number of shares subject to the optionshall be reduced by the number of shares with respect to which the stock appreciation right is exercised. Upon the exercise of an option in connection with which astock appreciation right has been granted, the number of shares subject to the stock appreciation right shall be reduced by the number of shares with respect to whichthe option is exercised. Restricted Stock Unit. A restricted stock unit is a notional share that entitles the grantee to receive a common share upon the vesting of the restricted stock unit or, inthe discretion of the Administrator, cash equivalent to the value of a common share. The Administrator may determine to make grants of restricted stock units underthe EIP to participants containing such terms as the Administrator shall determine. The Administrator will determine the period over which restricted stock unitsgranted to participants will vest. Unrestricted Stock. The Administrator may grant (or sell at a purchase price at least equal to par value) common shares free of restrictions under the EIP to availableparticipants and in such amounts and subject to such forfeiture provisions as the Administrator shall determine. Common shares may be thus granted or sold inrespect of past services or other valid consideration. Tax Withholding. At our discretion, and subject to conditions that the Administrator may impose, a participant may elect that his minimum statutory tax withholdingwith respect to an award may be satisfied by withholding from any payment related to an award or by the withholding of shares issuable pursuant to the award basedon the fair market value of the shares. 97  Table of Contents Award Adjustments. If the Administrator determines that any dividend or other distribution (whether in the form of cash, Company shares, other securities or otherproperty), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Companyshares or other securities of the Company, issuance of warrants or other rights to purchase Company shares or other securities of the Company, or other similarcorporate transaction or event affects the Company shares such that an adjustment is determined by the Administrator to beappropriate or desirable, then the Administrator shall, in such manner as it may deem equitable or desirable, adjust any or all of the number of shares or othersecurities of the Company (or number and kind of other securities or property) with respect to which Awards may be granted under the EIP. The Administrator isauthorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including theevents described above in the first sentence of this paragraph, the occurrence of a Change in Control (as defined in the EIP) affecting the Company, any affiliate, orthe financial statements of the Company or any affiliate, or of changes in applicable rules, rulings, regulations or other requirements of any governmental body orsecurities exchange, accounting principles or law, whenever the Administrator determines that such adjustments are appropriate or desirable, including providing foradjustment to (1) the number of shares or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards or towhich outstanding Awards relate and (2) the exercise price with respect to any Award and a substitution or assumption of Awards, accelerating the exercisability orvesting of, or lapse of restrictions on, Awards, or accelerating the termination of Awards by providing for a period of time for exercise prior to the occurrence of suchevent, or, if deemed appropriate or desirable, providing for a cash payment to the holder of an outstanding Award in consideration for the cancellation of such Award(it being understood that, in such event, any option or stock appreciation right having a per share exercise price equal to, or in excess of, the fair market value of ashare subject to such option or stock appreciation right may be cancelled and terminated without any payment or consideration therefor). Change in Control. Upon a “change of control” (as defined in the EIP), and unless the Administrator decides otherwise: ·Any Award then outstanding shall become fully vested and any restriction and forfeiture provisions thereon imposed pursuant to the EIP and the AwardAgreement shall lapse and any Award in the form of an option or stock appreciation right shall be immediately exercisable. ·To the extent permitted by law and not otherwise limited by the terms of the EIP, the Administrator may amend any Award Agreement in such manner as itdeems appropriate. ·An award recipient who is terminated or dismissed from their position for any reason other than “for cause” within one year of the change in control may,for a limited time, exercise any outstanding option or stock appreciation right, but only to the extent that the grantee was entitled to exercise the Award onthe date of his or her termination of employment or consultancy/service relationship or dismissal from the board of directors. Termination of Employment or Service. The consequences of the termination of a grantee’s employment, consulting arrangement, or membership on the board ofdirectors will be determined by the Administrator in the terms of the relevant Award Agreement. Generally, the Administrator may modify these consequences. TheAdministrator can impose any forfeiture or vesting provisions in any Award Agreement. 2021, 2020, 2019 Grants No awards were granted pursuant to the equity incentive plan during the years ended December 31, 2021, 2020 and 2019, but we issued shares directly to ourdirectors, which was not part of the equity incentive program. Item 7. Major Shareholders and Related Party Transactions A. Major Shareholders The following table sets forth information concerning ownership of our common shares as of April 11, 2022 by persons who beneficially own more than 5.0% of ouroutstanding common shares, each person who is a director of our company, the executive officer named in this annual report on Form 20-F and our directors andexecutive officer as a group. Beneficial ownership of shares is determined under rules of the SEC and generally includes any shares over which a person exercises sole or shared voting orinvestment power. Except as indicated in the footnotes to this table and subject to community property laws where applicable, the persons named in the table havesole voting and investment power with respect to all shares shown as beneficially owned by them. 98  Table of Contents The numbers of shares and percentages of beneficial ownership are based on 20,582,301 common shares outstanding on April 11, 2022. All common shares ownedby the shareholders listed in the table below have the same voting rights as the other of our outstanding common shares. The address for our directors and executive officer is: c/o Globus Shipmanagement Corp., 128 Vouliagmenis Avenue, 3rd Floor, 166 74 Glyfada, Attica, Greece. With respect to the persons who beneficially own more than 5.0% of our outstanding common shares, we have prepared the following table based on informationfiled with the SEC, and we have not sought to verify such information, and have assumed that such information remains current. Ownership and percentageownership are determined in accordance with the rules and regulations of the SEC regarding beneficial ownership and include voting or investment power withrespect to common shares. This information does not necessarily indicate beneficial ownership for any other purpose. In computing the number of common sharesbeneficially owned by a beneficial holder and the percentage ownership of that beneficial holder, common shares underlying warrants held by that beneficial holderthat are exercisable as of April 11, 2022, or exercisable within 60 days after April 11, 2022, are deemed outstanding. Such common shares, however, are not deemedoutstanding for the purposes of computing the percentage ownership of any other person. The number of common shares owned and percentages in the table belowdo give effect to any beneficial ownership blockers contained in any warrants that we have issued. The beneficial ownership information set forth in the table below is based on beneficial ownership reports furnished to the SEC or information regarding thebeneficial ownership of our common shares delivered to us: Name and address of beneficial owner Number ofcommon sharesbeneficiallyowned as ofApril 11, 2022 Percentage ofcommon sharesbeneficiallyowned as ofApril 11, 20225% Beneficial Owners Armistice Capital, LLC (1) 1,200,000 5.8%Intracoastal Capital LLC (2) 1,959,250 8.7%Lind Global Macro Fund, LP (3) 2,241,200 9.8%Hudson Bay Master Fund Ltd. (4) 2,283,475 9.99%Executive Officer and Directors George Feidakis (5) 761,530 3.7%Ioannis Kazantzidis 7,639 *%Jeffrey O. Parry 7,619 *%Athanasios Feidakis (6) 118 *%Our executive officer and all directors as a group 776,906 3.8*%(6) *Less than 1.0% of the outstanding shares. (1) Armistice Capital, LLC is the investment manager of Armistice Capital Master Fund Ltd. (the “Armistice Master Fund”), the direct holder of the common shares,and pursuant to an Investment Management Agreement, Armistice Capital, LLC exercises voting and investment power over the securities of Globus held by theArmistice Master Fund and thus may be deemed to beneficially own the securities of Globus held by the Armistice Master Fund. Mr. Steven Boyd, as the managingmember of Armistice Capital, LLC, may be deemed to beneficially own the securities of Globus held by the Master Fund. The Master Fund specifically disclaimsbeneficial ownership of the securities of Globus directly held by it by virtue of its inability to vote or dispose of such securities as a result of its InvestmentManagement Agreement with Armistice Capital, LLC. The address of the principal business office for Armistice Capital, LLC and Mr. Boyd is 510 Madison Avenue,7th Floor, New York, New York 10022. (2) Mitchell P. Kopin and Daniel B. Asher have filed a Schedule 13G with the SEC as beneficial owners of the shares beneficially held Intracoastal Capital LLC. Allof the 1,959,250 beneficially owned shares held by Intracoastal Capital LLC referenced in the relevant Schedule 13G are in the form of warrants that we have issued.The principal business office of Mr. Kopin and Intracoastal Capital LLC is 245 Palm Trail, Delray Beach, Florida 33483. The principal business office of Mr. Asheris 111 W. Jackson Boulevard, Suite 2000, Chicago, Illinois 60604. (3) The reporting persons’ ownership consists of 166,362 common shares and warrants to purchase 2,074,838 common shares. Lind Global Partners LLC, thegeneral partner of Lind Global Macro Fund, LP, may be deemed to have sole voting and dispositive power with respect to the shares held by Lind Global MacroFund, LP. Jeff Easton, the managing member of Lind Global Partners LLC, may be deemed to have sole voting and dispositive power with respect to the shares heldby Lind Global Macro Fund, LP. The address of the principal business office for Lind Global Partners LLC, Lind Global Macro Fund, LP and Mr. Easton is 444Madison Ave, Floor 41, New York, NY 10022. 99  Table of Contents (4) Hudson Bay Capital Management LP, the investment manager of Hudson Bay Master Fund Ltd., and has voting and investment power over these securities.Sander Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson Bay Capital Management LP. Sander Gerberdisclaims beneficial ownership over these securities. All of the 2,283,475 beneficially owned shares held by Hudson Bay Master Fund Ltd referenced in the relevantSchedule 13G are issuable upon exercise of warrants. The address of the business office of each of the such persons is 777 Third Avenue, 30th Floor, New York, NY10017. (5) Mr. George Feidakis beneficially owns 761,530 common shares through Firment Shipping Inc., a Marshall Islands corporation for which he exercises sole votingand investment power. Mr. George Feidakis and Firment Shipping Inc., disclaim beneficial ownership over such common shares except to the extent of theirpecuniary interests in such shares. When we filed our annual report for the year ended 2020, 2019 and 2018, Mr. George Feidakis beneficially owned less than 1%, 22.1% and 44.3% of our commonshares, respectively. Mr. George Feidakis beneficially owns 3.7% as of the date of the filing of this annual report on Form 20-F. (6) Athanasios Feidakis controls Goldenmare Limited, which owns 10,300 Series B preferred shares. Each Series B preferred share entitles the holder thereof to25,000 votes per share on all matters submitted to a vote of the shareholders of the Company, provided however, that no holder of Series B preferred shares mayexercise voting rights pursuant to Series B preferred shares that would result in the aggregate voting power of any beneficial owner of such shares and its affiliates(whether pursuant to ownership of Series B preferred shares, common shares or otherwise) to exceed 49.99%. For a further description of the Series B preferredshares, see “Item 10. Additional Information – B. Memorandum and Articles of Association – Preferred Shares”. To the best of our knowledge, except as disclosed in the table above (including the Series B preferred shares referenced above), we are not owned or controlled,directly or indirectly, by another corporation or by any foreign government. To the best of our knowledge, there are no agreements in place that could result in achange of control of us. In the normal course of business, there have been institutional investors that buy and sell our shares. It is possible that significant changes in the percentageownership of these investors will occur. B. Related Party Transactions Lease On August 5, 2021, the Company entered into a rental agreement for 902 square meters of office space for its operations within a building leased by Cyberonica S.A.(an affiliate of our chairman) at a monthly rate of €26,000 with a lease period ending August 4, 2024. The previous rental agreement with Cyberonica was terminated,which agreement had been in place since 2016 and provided for a monthly rate of €10,360. During the years ended December 31, 2021, 2020 and 2019 fiscal years,the rent charged amounted to $242,000, $141,000 and $139,000, respectively, to Cyberonica S.A for the rental of office space for our operations. As of December 31,2021, we did not owe any amount in back rent to Cyberonica S.A. Employment of Relative of Mr. George Feidakis As of July 1, 2013, Mr. Athanasios Feidakis became a non-executive director of the Company. Mr. Athanasios Feidakis was previously an employee of the Companyand his employment agreement was terminated when he became a non-executive director. Mr. Athanasios Feidakis was appointed as President, Chief ExecutiveOfficer and Chief Financial Officer as of December 28, 2015 and remains in these positions. He is the son of our chairman of the board of directors, Mr. GeorgeFeidakis. 100  Table of Contents Firment Shipping Credit Facility In November 2018, we entered into a credit facility for up to $15 million with Firment Shipping Inc., a related party to us, for the purpose of financing our generalworking capital needs, which facility was amended and restated on May 8, 2020. The Firment Shipping Credit Facility was unsecured and remained available until itsfinal maturity date of October 31, 2021, as amended, and now has terminated in accordance with its terms. We had the right to drawdown any amount up to $15million or prepay any amount in multiples of $100,000. Any prepaid amount could have been re-borrowed. Interest on drawn and outstanding amounts was chargedat 3.5% per annum until December 31, 2020, and thereafter at 7% per annum. No commitment fee was charged on the amounts remaining available and undrawn.Interest was payable the last day of a period of three months after the drawdown date, after this period in case of failure to pay any sum due a default interest of 2%per annum above the regular interest was charged. We had also the right, in our sole option, to convert in whole or in part the outstanding unpaid principal amountand accrued but unpaid interest under this Agreement into common shares. The conversion price would have equaled the higher of (i) the average of the daily dollarvolume-weighted average sale price for the common stock on the Principal Market on any trading day during the period beginning at 9.30 a.m. New York City timeand ending at 4.00 p.m. over the Pricing Period multiplied by 80%, where the “Pricing Period” equals the ten consecutive trading days immediately preceding thedate on which the conversion notice was executed or (ii) $280.00. On July 27, 2020, the Company repaid the total outstanding principal and interest of the FirmentShipping Credit Facility of approximately $863,000. Business Opportunities Agreement In November 2010, we entered into a business opportunities arrangement with Mr. George Feidakis. Under this agreement, Mr. George Feidakis was required todisclose to us any business opportunities relating to dry bulk shipping that may arise during his service to us as a member of our board of directors that couldreasonably be expected to be a business opportunity that we may pursue. Mr. George Feidakis agreed to disclose all such opportunities, and the material factsattendant thereto, to our board of directors for our consideration and if our board of directors fails to adopt a resolution regarding an opportunity within sevenbusiness days of disclosure, we will be deemed to have declined to pursue the opportunity, in which event Mr. George Feidakis will be free to pursue it. Mr. GeorgeFeidakis is also prohibited for six months after the termination of the agreement to solicit any of our or our subsidiaries’ senior employees or officers. Mr. GeorgeFeidakis’ obligations under the business opportunities agreement terminated in 2019 because he no longer beneficially owned at least 30% of the combined votingpower of all our outstanding equity. Registration Rights Agreement In November 2016, we entered into a registration rights agreement with Firment Trading Limited, pursuant to which we granted to them and their affiliates (includingMr. George Feidakis and certain of their transferees), the right, under certain circumstances and subject to certain restrictions to require us to register under theSecurities Act our common shares held by them. Under the registration rights agreement, these persons have the right to request us to register the sale of shares heldby them on their behalf and may require us to make available shelf registration statements permitting sales of shares into the market from time to time over anextended period. In addition, these persons have the ability to exercise certain piggyback registration rights in connection with registered offerings requested byshareholders or initiated by us. Consulting Agreements On August 18, 2016, the Company entered into a consultancy agreement with Goldenmare Limited, an affiliated company of our CEO, for the purpose of providingconsulting services to the Company in connection with the Company’s international shipping and capital raising activities, including but not limited to assisting andadvising the Company’s CEO. The annual fees for the services provided amounted to €200,000. The consultant is eligible to receive bonus compensation (whether inthe form of cash and/or equity and/or quasi-equity awards) for the services provided and such bonus shall be determined by the Remuneration Committee or theBoard of the Company. If the Company terminates the agreement without cause, or either party terminates after a change of control of the Company, then we willpay the consultant double the annual consultancy fee plus the average annual bonus (including the value of equity awards) granted to the consultant throughout theterm of the consultancy agreement. In December 2020, we agreed to increase the consultancy fees of Goldenmare Limited from €200,000 to €400,000 per annum andadditionally pay a one-time cash bonus of $1.5 million pursuant to the consultancy agreement, which has been paid in full in 2021. In addition, in December 2021,we agreed to pay a one-time cash bonus of $1.5 million to Goldenmare Limited pursuant to the consultancy agreement, half of which is to be paid immediately andthe other half during 2022, if at the time of the payment Mr. Athanasios Feidakis remains chief executive officer and the consultant has not terminated its consultancyagreement.. At the time of the filing of the annual report on Form 20-F, none of the bonus approved has been paid. Each of our other directors has a contract relatingto his appointment as a director. 101  Table of Contents On July 15, 2021 we entered into a consultancy agreement with Eolos Shipmanagement S.A. for the purpose of providing consultancy services to EolosShipmanagement S.A. For these services our Manager receives a daily fee of $1,000. Our chairman of the board is the majority shareholder of EolosShipmanagement. Series B Preferred Shares In June 2020, we entered into a stock purchase agreement and issued 50 of our newly-designated Series B preferred shares, par value $0.001 per share, toGoldenmare Limited, a company controlled by our Chief Executive Officer, Athanasios Feidakis, in return for $150,000, which amount was settled by reducing, on adollar for dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. In July 2020, we entered into another stockpurchase agreement and issued an additional 250 of our Series B preferred shares to Goldenmare Limited in return for $150,000. The $150,000 was paid by reducing,on a dollar for dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. In addition, we increased themaximum voting rights under the Series B preferred shares from 49.0% to 49.99%. In March 2021, we entered into another stock purchase agreement and issued anadditional 10,000 of our Series B preferred shares to Goldenmare Limited in return for $130,000, which was settled by reducing, on a dollar for dollar basis, theamount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. For a description of the Series B preferred shares, see “Item 10.Additional Information – B. Memorandum and Articles of Association – Preferred Shares”. C. Interests of Experts and Counsel Not Applicable. Item 8. Financial Information A. Consolidated Statements and Other Financial Information See Item 18. Legal Proceedings We have not been involved in any legal proceedings which may have, or have had, a significant effect on our business, financial position, results of operations orliquidity, nor are we aware of any other proceedings that are pending or threatened which may have a significant effect on our business, financial position, results ofoperations or liquidity. From time to time, we may be subject to legal proceedings and claims in the ordinary course of business, principally personal injury andproperty casualty claims. We expect that these claims would be covered by insurance, subject to customary deductibles. Those claims, even if lacking merit, couldresult in the expenditure of significant financial and managerial resources. Our Dividend Policy and Restrictions on Dividends The declaration, timing and amount of any dividend is subject to the discretion of our board of directors and will be dependent upon our earnings, financial condition,market prospects, capital expenditure requirements, investment opportunities, restrictions in our loan agreements, the provisions of the Marshall Islands law affectingthe payment of dividends to shareholders, overall market conditions, reserves established by our board of directors, increased or unanticipated expenses, additionalborrowings and future issuances of securities, and other factors deemed relevant by our board of directors from time-to-time. We have not paid any dividends on our common shares since 2012. Our dividend policy was historically, but is no longer, to pay to holders of our shares a variablequarterly dividend in excess of 50% of the net income of the previous quarter subject to any reserves our board of directors may from time to time determine arerequired. 102  Table of Contents Our board of directors may review and amend our dividend policy from time to time in light of our plans for future growth and other factors. Our Remuneration Committee will also determine by unanimous resolution, in its sole discretion, when and to the extent dividends are paid to the holders of ourSeries A Preferred Shares, to the extent any are outstanding. We are a holding company, with no material assets other than the shares of our subsidiaries. Therefore, our ability to pay dividends depends on the earnings and cashflow of those subsidiaries and their ability to pay dividends to us. Marshall Islands law generally prohibits the payment of dividends other than from surplus (retained earnings and the excess of consideration received from the saleof shares above the par value of the shares) or while a corporation is insolvent or would be rendered insolvent by the payment of such dividend. Historical dividend payments should not provide any promise or indication of future dividend payments. If we pay a dividend, the terms of our outstanding warrants provide that the exercise price shall be decreased by the amount of cash and/or the fair market value ofany securities or other assets paid on each common share in respect of such dividendin order that subsequent thereto upon exercise of the warrants the holder of the warrants may obtain the equivalent benefit of such dividend. No dividends were declared or paid on our common shares during the years ended December 31, 2021, 2020, and 2019. No Series A Preferred Shares were outstanding as of December 31, 2021, 2020, and 2019. Our CIT Loan Facility imposes certain restrictions to us with respect to dividend payments. Please see “Item 5.B. Liquidity and Capital Resources—Indebtedness.” B. Significant Changes Not Applicable. Item 9. The Offer and Listing Our common shares trade on the Nasdaq Capital Market under the ticker “GLBS.” All of our shares are in registered form. Our articles of incorporation do not permit the issuance of bearer shares. Item 10. Additional Information A. Share Capital Not Applicable. B. Memorandum and Articles of Association Purpose Our objects and purposes, as provided in Section 1.3 of our articles of incorporation, are to engage in any lawful act or activity for which corporations may now orhereafter be organized under the BCA. 103  Table of Contents Authorized Capitalization The authorized number of shares of Globus consists of (1) 500,000,000 common shares, par value $0.004 per share, (2) 100,000,000 Class B common shares, parvalue $0.001 per share, which we refer to as the Class B shares, and (3) 100,000,000 preferred shares, par value $0.001 per share, which we refer to as the preferredshares No Class B shares have yet been issued. Our articles of incorporation require us at all times to reserve and keep available, out of our authorized but unissuedcommon shares, such number of common shares as would become issuable upon the conversion of all Class B shares then outstanding. Two series of preferred shares have been designated. No Series A preferred shares and 10,300 Series B preferred shares are presently outstanding. There is nolimitation on the right to own securities or the rights of non-resident shareholders to hold or exercise voting rights on our securities under Marshall Islands law or ourarticles of incorporation or bylaws. All of our shares are in registered form. Our articles of incorporation do not permit the issuance of bearer shares. We do not holdany of our shares in treasury. We have financed our operations through funds raised in public and private placements of common shares and through debt. We also issued shares to our directors,officers and employees. Common Shares, Class B Shares, and Series B Preferred Shares Generally, Marshall Islands law provides that the holders of a class of stock of a Marshall Islands corporation are entitled to a separate class vote on any proposedamendment to the relevant articles of incorporation that would change the aggregate number of authorized shares or the par value of that class of shares or alter orchange the powers, preferences or special rights of that class so as to affect the class adversely. Except as described below, holders of our common shares and Class Bshares have equivalent economic rights. Holders of our common shares are entitled to one vote per share, holders of our Class B shares are entitled to 20 votes pershare, and the holder of our Series B preferred shares is entitled to 25,000 votes per share (subject to the limitation described in “Preferred Shares” below). Eachholder of Class B shares (not including the Company and the Company’s subsidiaries) may convert, at its option, any or all of the Class B shares held by such holderinto an equal number of common shares. Except as otherwise provided by the BCA, holders of our common shares, Class B shares, and Series B preferred shares will vote together as a single class on allmatters submitted to a vote of shareholders, including the election of directors. The rights, preferences and privileges of holders of our shares are subject to the rights of the holders of our Series B preferred shares and any preferred shares whichwe may issue in the future. Holders of our common shares do not have conversion, redemption or pre-emptive rights to subscribe to any of our securities. Preferred Shares Our articles of incorporation authorize our board of directors to establish and issue up to 100 million preferred shares and to determine, with respect to any series ofpreferred shares, the rights and preferences of that series, including: ¨the designation of the series; ¨the number of preferred shares in the series; ¨the preferences and relative participating option or other special rights, if any, and any qualifications, limitations or restrictions of such series; and ¨the voting rights, if any, of the holders of the series. In April 2012 we issued an aggregate of 3,347 (number not adjusted for any reverse stock splits) Series A Preferred Shares to two persons who were then executiveofficers, but as of the date hereof no Series A Preferred Shares are outstanding. The holders of our Series A Preferred Shares were entitled to receive, if funds werelegally available, dividends payable in cash in an amount per share to be determined by unanimous resolution of our Remuneration Committee, in its sole discretion.Our board of directors or Remuneration Committee determined whether funds were legally available under the BCA for such dividend. Any accrued but unpaiddividends did not bear interest. Except as may be provided in the BCA, holders of our Series A Preferred Shares did not have any voting rights. Upon our liquidation,dissolution or winding up, the holders of our Series A Preferred Shares were entitled to a preference in the amount of the declared and unpaid dividends, if any, as ofthe date of liquidation, dissolution or winding up. Our Series A Preferred Shares were not convertible into any of our other capital stock. 104  Table of Contents The Series A Preferred Shares were redeemable at the written request of the Remuneration Committee, at par value plus all declared and unpaid dividends as of thedate of redemption plus any additional consideration determined by a unanimous resolution of the Remuneration Committee. We redeemed and cancelled 780 SeriesA Preferred Shares in January 2013 and the remaining 2,567 were redeemed and cancelled in July 2016. (These figures do not reflect any of our reverse stock splitswhich occurred afterwards.) In June 2020, we issued 50 newly-designated Series B preferred shares, par value $0.001 per share, to Goldenmare Limited, a company controlled by our ChiefExecutive Officer, Athanasios Feidakis, in return for $150,000. In July 2020, we issued an additional 250 Series B preferred shares to Goldenmare Limited in returnfor another $150,000. In March 2021, we issued an additional 10,000 Series B preferred shares to Goldenmare Limited in return for $130,000. The purchase pricewas paid, in each instance, by reducing, on a dollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancyagreement. In addition, in July 2020 we increased the maximum voting rights under the Series B preferred shares from 49.0% to 49.99%. The issuances of the Series B preferred shares to Goldenmare Limited were each approved by an independent committee of the Board of Directors of the Company,which in each case received a fairness opinion from an independent financial advisor that the transaction was for a fair value. The Series B preferred shares have the following characteristics: Voting. To the fullest extent permitted by law, each Series B preferred share entitles the holder hereof to 25,000 votes per share on all matters submitted to avote of the shareholders of the Company, provided however, that no holder of Series B preferred shares may exercise voting rights pursuant to Series B preferredshares that would result in the aggregate voting power of any beneficial owner of such shares and its affiliates (whether pursuant to ownership of Series B preferredshares, common shares or otherwise) to exceed 49.99% of the total number of votes eligible to be cast on any matter submitted to a vote of shareholders of theCompany. To the fullest extent permitted by law, the holders of Series B preferred shares shall have no special voting or consent rights and shall vote together as oneclass with the holders of the common shares on all matters put before the shareholders. Conversion. The Series B preferred shares are not convertible into common shares or any other security. Redemption. The Series B preferred shares are not redeemable. Dividends. The Series B preferred shares have no dividend rights. Liquidation Preference. Upon any liquidation, dissolution or winding up of the Company, the Series B preferred shares are entitled to receive a paymentwith priority over the common shareholders equal to the par value of $0.001 per share. The Series B preferred shareholder has no other rights to distributions uponany liquidation, dissolution or winding up of the Company. Transferability. All issued and outstanding Series B preferred shares must be held of record by one holder, and the Series B preferred shares shall not betransferred without the prior approval of our Board of Directors. Proportional Adjustment. In the event the Company (i) declares any dividend on its common shares, payable in common shares, (ii) subdivides theoutstanding common shares or (iii) combines the outstanding common shares into a smaller number of shares, there shall be a proportional adjustment to the numberof outstanding Series B preferred shares. Liquidation In the event of our dissolution, liquidation or winding up, whether voluntary or involuntary, after payment in full of the amounts, if any, required to be paid to ourcreditors, the payment of the par value of $0.001 per share to the holder of our Series B preferred shares, and the holders of preferred shares, our remaining assets andfunds shall be distributed pro rata to the holders of our common shares and Class B shares, and the holders of common shares and the holders of Class B shares shallbe entitled to receive the same amount per share in respect thereof. Other than their receipt of the par value of $0.001 per Series B preferred share, the holder of ourSeries B preferred shares do not participate in distributions upon liquidation. 105  Table of Contents Dividends Declaration and payment of any dividend is subject to the discretion of our board of directors. The timing and amount of dividend payments to holders of our shareswill depend on a series of factors and risks described under “Risk Factors” in our annual report on Form 20-F and in prospectuses we may file from time to time, andincludes risks relating to earnings, financial condition, cash requirements and availability, restrictions in our current and future loan arrangements, the provisions ofthe Marshall Islands law affecting the payment of dividends and other factors. The BCA generally prohibits the payment of dividends other than from surplus orwhile we are insolvent or if we would be rendered insolvent upon paying the dividend. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common shares and Class B shares will be entitled toshare equally (pro rata based on the number of shares held) in any dividends that our board of directors may declare from time to time out of funds legally availablefor dividends. Series B preferred shares do not participate in dividends. Conversion Our common shares are not convertible into any other shares of our capital stock. Each of our Class B shares is convertible at any time at the election of the holderthereof into one of our common shares. We may reissue or resell any Class B shares that shall have been converted into common shares. Neither the Common Sharesnor the Class B Shares may be reclassified, subdivided or combined unless such reclassification, subdivision or combination occurs simultaneously and in the sameproportion for each such class of Common Stock. Directors Our directors are elected by the vote of the plurality of the votes cast by shareholders entitled to vote in the election. Our articles of incorporation provide that ourboard of directors must consist of at least three members. Shareholders may change the number of directors only by the affirmative vote of holders of a majority ofthe total voting power of our outstanding capital stock (subject to the rights of any holders of preferred shares). The board of directors may change the number ofdirectors by a majority vote of the entire board of directors. No contract or transaction between us and one or more of our directors or officers will be void or voidable solely for the following reason, or solely because thedirector or officer is present at or participates in the meeting of our board of directors or committee thereof which authorizes the contract or transaction, or solelybecause his or her or their votes are counted for such purpose, if (1) the material facts as to such director’s interest in such contract or transaction and as to any suchcommon directorship, officership or financial interest are disclosed in good faith or known to the board of directors or committee, and the board of directors orcommittee approves such contract or transaction by a vote sufficient for such purpose without counting the vote of such interested director, or, if the votes of thedisinterested directors are insufficient to constitute an act of the board, by unanimous vote of the disinterested directors; or (2) the material facts as to such director’sinterest in such contract or transaction and as to any such common directorship, officership or financial interest are disclosed in good faith or known to theshareholders entitled to vote thereon, and such contract or transaction is approved by vote of such shareholders. Our board of directors has the authority to fix the compensation of directors for their services. Classified Board of Directors Our articles of incorporation provide for a board of directors serving staggered, three-year terms. Approximately one-third of our board of directors will be electedeach year. Removal of Directors; VacanciesOur articles of incorporation provide that directors may be removed with or without cause upon the affirmative vote of holders of a majority of the total voting powerof our outstanding capital stock cast at a meeting of the shareholders. Our articles of incorporation also permit the removal of directors for cause upon the affirmativevote of 66-2/3% of the members of the board of directors then in office. Our bylaws require parties to provide advance written notice of nominations for the electionof directors other than the board of directors and shareholders holding 30% or more of the voting power of the aggregate number of our shares issued and outstandingand entitled to vote. No Cumulative Voting Our articles of incorporation prohibit cumulative voting. 106  Table of Contents Shareholder Meetings Under our bylaws, annual shareholder meetings will be held at a time and place selected by our board of directors. The meetings may be held in or outside of theMarshall Islands. Special meetings may be called by the chairman of our board of directors, by resolution of our board of directors or by holders of 30% or more ofthe voting power of the aggregate number of our shares issued and outstanding and entitled to vote at such meeting. Our board of directors may set a record datebetween 15 and 60 days before the date of any meeting to determine the shareholders that will be eligible to receive notice and vote at the meeting. Dissenters’ Right of Appraisal and Payment Under the BCA, our shareholders may have the right to dissent from various corporate actions, including certain amendments to our articles of incorporation andcertain mergers or consolidations or the sale or exchange of all or substantially all of our assets not made in the usual course of our business, and receive payment ofthe fair value of their shares, subject to exceptions. The right of a dissenting shareholder to receive payment of the fair value of his shares is not available for theshares of any class or series of stock, which shares at the record date fixed to determine the shareholders entitled to receive notice of and vote at the meeting ofshareholders to act upon the agreement of merger or consolidation or any sale or exchange of all or substantially all of the property and assets of the corporation notmade in the usual course of its business, were either (1) listed on a securities exchange or admitted for trading on an interdealer quotation system or (2) held of recordby more than 2,000 holders. In the event of any further amendment of our articles of incorporation, a shareholder also has the right to dissent and receive payment forhis or her shares if the amendment alters certain rights in respect of those shares. The dissenting shareholder must follow the procedures set forth in the BCA toreceive payment. In the event that we and any dissenting shareholder fail to agree on a price for the shares, the BCA procedures involve, among other things, theinstitution of proceedings in the high court of the Republic of the Marshall Islands or in any appropriate court in any jurisdiction in which our shares are primarilytraded on a local or national securities exchange to fix the value of the shares. Shareholders’ Derivative Actions Under the BCA, any of our shareholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that theshareholder bringing the action is a holder of common shares or a beneficial interest therein both at the time the derivative action is commenced and at the time of thetransaction to which the action relates or that the shares devolved upon the shareholder by operation of law, among other requirements set forth in the BCA. Amendment to our Articles of Incorporation Except as otherwise provided by law, any provision in our articles of incorporation requiring a vote of shareholders may only be amended by such a vote. Further,certain sections may only be amended by affirmative vote of the holders of at least a majority of the voting power of the voting shares. Anti-Takeover Effects of Certain Provisions of our Articles of Incorporation and Bylaws Several provisions of our articles of incorporation and bylaws, which are summarized below, may have anti-takeover effects. These provisions are intended to avoidcostly takeover battles, lessen our vulnerability to a hostile change of control and enhance the ability of our board of directors to maximize shareholder value inconnection with any unsolicited offer to acquire our company. However, these anti-takeover provisions could also discourage, delay or prevent the merger oracquisition of our company by means of a tender offer, a proxy contest or otherwise that a shareholder may consider in its best interest and the removal of incumbentofficers and directors, which could affect the desirability of our shares and, consequently, our share price. Multi Class Stock. Our multi-class stock structure, which consists of common shares, Class B common shares, and preferred shares, can provideholders of our Class B common shares or preferred shares a significant degree of control over all matters requiring shareholder approval, including the election ofdirectors and significant corporate transactions, such as a merger or other sale of our company or its assets, because our different classes of shares can have differentnumbers of votes. For instance, while our common shares have one vote on matters before the shareholders, each of our 10,300 outstanding Series B preferred shares has25,000 votes on matters before the shareholders; provided however, that no holder of Series B preferred shares may exercise voting rights pursuant to any Series Bpreferred shares that would result in the total number of votes a holder is entitled to vote on any matter submitted to a vote of shareholders of the Company to exceed49.99% of the total number of votes eligible to be cast on such matter. No Class B common shares are presently outstanding, but if and when we issue any, each ClassB common share will have 20 votes on matters before the shareholders. 107  Table of Contents At present, and until a substantial number of additional securities are issued, our holder of Series B preferred shares exerts substantial control of theCompany’s votes and is able to exert substantial control over our management and all matters requiring shareholder approval, including electing directors andsignificant corporate transactions, such as a merger. Such holder’s interest could differ from yours. Blank Check Preferred Shares. Under the terms of our articles of incorporation, our board of directors has authority, without any further vote or action byour shareholders, to issue up to 100 million “blank check” preferred shares, almost all of which currently remain available for issuance. Our board could authorize theissuance of preferred shares with voting or conversion rights that could dilute the voting power or rights of the holders of common shares, in addition to preferredshares that are already outstanding. The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporatepurposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of us or the removal of our management and may harmthe market price of our common shares. Classified Board of Directors. Our articles of incorporation provide for the division of our board of directors into three classes of directors, with each classas nearly equal in number as possible, serving staggered, three-year termsbeginning upon the expiration of the initial term for each class. Approximately one-third of our board of directors is elected each year. This classified board provisioncould discourage a third party from making a tender offer for our shares or attempting to obtain control of us. It could also delay shareholders who do not agree withthe policies of our board of directors from removing a majority of our board of directors for up to two years. Election of Directors. Our articles of incorporation do not provide for cumulative voting in the election of directors. Our bylaws require parties, other thanthe chairman of the board of directors, board of directors and shareholders holding 30% or more of the voting power of the aggregate number of our shares issued andoutstanding and entitled to vote, to provide advance written notice of nominations for the election of directors. These provisions may discourage, delay or prevent theremoval of incumbent officers and directors. Advance Notice Requirements for Shareholder Proposals and Director Nominations. Our bylaws provide that shareholders, other than shareholders holding30% or more of the voting power of the aggregate number of our shares issued and outstanding and entitled to vote, seeking to nominate candidates for election asdirectors or to bring business before an annual meeting of shareholders must provide timely notice of their proposal in writing to the corporate secretary. Generally, tobe timely, a shareholder’s notice must be received at our principal executive offices not less than 150 days or more than 180 days prior to the first anniversary date ofthe immediately preceding annual meeting of shareholders. Our bylaws also specify requirements as to the form and content of a shareholder’s notice. Theseprovisions may impede a shareholder’s ability to bring matters before an annual meeting of shareholders or make nominations for directors at an annual meeting ofshareholders. Calling of Special Meetings of Shareholders. Our bylaws provide that special meetings of our shareholders may be called only by the chairman of ourboard of directors, by resolution of our board of directors or by holders of 30% or more of the voting power of the aggregate number of our shares issued andoutstanding and entitled to vote at such meeting. Action by Written Consent in Lieu of a Meeting. Our articles permit any action which may or is required by the BCA to be taken at a meeting of theshareholders to be authorized by consents in writing signed by the holders of outstanding shares having not less than the minimum number of votes that would benecessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Presently and until and unless we issue asignificant number of securities, Goldenmare Limited, a company affiliated with our Chief Executive Officer, holds Series B preferred shares controlling 49.99% ofthe voting power of our outstanding capital stock. Goldenmare could, together with shareholders possessing a relatively small number of shares, act by writtenconsent in lieu of a meeting and authorize major transactions on behalf of the Company, all without calling a meeting of shareholders. 108  Table of Contents Business Combinations Although the BCA does not contain specific provisions regarding “business combinations” between corporations incorporated under or redomiciled pursuantto the laws of the Marshall Islands and “interested shareholders,” our articles of incorporation prohibit us from engaging in a business combination with an interestedshareholder for a period of three years following the date of the transaction in which the person became an interested shareholder, unless, in addition to any otherapproval that may be required by applicable law: ¨prior to the date of the transaction that resulted in the shareholder becoming an interested shareholder, our board of directors approved either thebusiness combination or the transaction that resulted in the shareholder becoming an interested shareholder; ¨upon consummation of the transaction that resulted in the shareholder becoming an interested shareholder, the interested shareholder owned at least85.0% of our voting shares outstanding at the time the transaction commenced, excluding for purposes of determining the number of sharesoutstanding those shares owned by (1) persons who are directors and officers and (2) employee stock plans in which employee participants do nothave the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or ¨at or after the date of the transaction that resulted in the shareholder becoming an interested shareholder, the business combination is approved by ourboard of directors and authorized at an annual or special meeting of shareholders, and not by written consent, by the affirmative vote of at least 66-2/3% of the voting power of the voting shares that are not owned by the interested shareholder. Among other transactions, a “business combination” includes any merger or consolidation of us or any directly or indirectly majority-owned subsidiary ofours with (1) the interested shareholder or any of its affiliates or (2) with any corporation, partnership, unincorporated association or other entity if the merger orconsolidation is caused by the interested shareholder. Generally, an “interested shareholder” is any person or entity (other than us and any direct or indirect majority-owned subsidiary of ours) that: ¨owns 15.0% or more of our outstanding voting shares; ¨is an affiliate or associate of ours and was the owner of 15.0% or more of our outstanding voting shares at any time within the three-year periodimmediately prior to the date on which it is sought to be determined whether such person is an interested shareholder; or ¨is an affiliate or associate of any person listed in the first two bullets, except that any person who owns 15.0% or more of our outstanding votingshares, as a result of action taken solely by us will not be an interested shareholder unless such person acquires additional voting shares, except as aresult of further action by us and not caused, directly or indirectly, by such person. Additionally, the restrictions regarding business combinations do not apply to persons that became interested shareholders prior to the effectiveness of ourarticles of incorporation. Limitations on Liability and Indemnification of Directors and Officers The BCA authorizes corporations to limit or eliminate the personal liability of directors to corporations and their shareholders for monetary damages for breaches ofcertain directors’ fiduciary duties. Our articles of incorporation include a provision that eliminates the personal liability of directors for monetary damages for breachof fiduciary duty as a director to the fullest extent permitted by law (i.e., other than breach of duty of loyalty, acts not taken in good faith or which involve intentionalmisconduct or a knowing violation of law or transactions for which the director derived an improper personal benefit) and provides that we must indemnify ourdirectors and officers to the fullest extent authorized by law. We are also expressly authorized to advance certain expenses to our directors and officers and expect tocarry directors’ and officers’ insurance providing indemnification for our directors and officers for some liabilities. We believe that these indemnification provisionsand the directors’ and officers’ insurance are useful to attract and retain qualified directors and executive officers. The limitation of liability and indemnification provisions in our articles of incorporation may discourage shareholders from bringing a lawsuit against our directorsfor breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, eventhough such an action, if successful, may otherwise benefit us and our shareholders. In addition, an investor in our common shares may be adversely affected to theextent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. 109  Table of Contents There is no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought. The following summary of certain terms and provisions of the Class A Warrants is not complete and is subject to, and qualified in its entirety by the provisions of theform of Class A Warrant, which is incorporated by reference as an exhibit to this annual report. oExercisability. The Class A Warrants are exercisable at any time after their original issuance up to the date that is five years after their original issuance. Each ofthe Class A Warrants is exercisable, in whole or in part by delivering to us a duly executed exercise notice and, at any time a registration statement registering theissuance of the common shares underlying the Class A Warrants under the Securities Act is effective and available for the issuance of such shares, by payment infull in immediately available funds for the number of common shares purchased upon such exercise. If a registration statement registering the issuance of thecommon shares underlying the Class A Warrants under the Securities Act is not effective or available, the holder may, in its sole discretion, elect to exercise theClass A Warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of common shares determined accordingto the formula set forth in the Class A Warrant. We may be required to pay certain amounts as liquidated damages as specified in the Class A Warrants in theevent we do not deliver common shares upon exercise of the Class A Warrants within the time periods specified in the Class A Warrants. No fractional commonshares will be issued in connection with the exercise of a Class A Warrant. oExercise Limitation. A holder does not have the right to exercise any portion of a Class A Warrant if the holder (together with its affiliates) would beneficiallyown in excess of 4.99% (or, upon election by a holder prior to the issuance of any Class A Warrants, 9.99%) of the number of shares of our common sharesoutstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of such Class A Warrants.However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99%, upon at least 61 days’ prior notice from theholder to us with respect to any increase in such percentage. oExercise Price. The exercise price per whole common share purchasable upon exercise of the Class A Warrants is $35.00 per share. The exercise price of theClass A Warrants and number of common shares issuable on exercise of the Class A Warrants are subject to adjustment in the event of certain stock dividendsand distributions, stock splits, stock combinations, reclassifications or similar events affecting our common shares. The holders of Class A Warrants have theright to participate on an as-exercised basis in certain rights offerings to our common shareholders. The exercise price of the Class A Warrants may also bereduced to any amount and for any period of time at the sole discretion of our board of directors. The exercise price of the Class A Warrants is subject toadjustment in the event of dividends and certain distributions as specified in the Class A Warrant. oTransferability. Subject to applicable laws, the Class A Warrants may be offered for sale, sold, transferred or assigned without our consent. oExchange Listing. We do not intend to apply for the listing of the Class A Warrants on any stock exchange. Without an active trading market, the liquidity of theClass A Warrants will be limited.oWarrant Agent. The Class A Warrants are issued in registered form under a warrant agreement among Computershare Inc., Computershare Trust Company, N.A.,as warrant agent, and us. The Class A Warrants were initially be represented only by one or more global warrants deposited with the warrant agent, as custodianon behalf of The Depository Trust Company (DTC) and registered in the name of Cede & Co., a nominee of DTC, or as otherwise directed by DTC. oRights as a Shareholder. Except as otherwise provided in the Class A Warrants or by virtue of such holder’s ownership of our common shares, the holder of aClass A Warrant does not have the rights or privileges of a holder of our common shares, including any voting rights, until the holder exercises the Class AWarrant. 110  Table of Contents oFundamental Transactions. In the event of a fundamental transaction, as described in the Class A Warrants and generally including, with certain exceptions, anyreorganization, recapitalization or reclassification of our common shares, the sale, transfer or other disposition of all or substantially all of our properties orassets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding common shares, or any person or groupbecoming the beneficial owner of 50% of the voting power represented by our outstanding common shares, the holders of the Class A Warrants will be entitled toreceive upon exercise of the Class A Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercisedthe Class A Warrants immediately prior to such fundamental transaction. In addition, we or the successor entity, at the request of Class A Warrant holders, will beobligated to purchase any unexercised portion of the Class A Warrants in accordance with the terms of such Class A Warrants. oGoverning Law. The Class A Warrants and the warrant agreement are governed by New York law.The following summary of certain terms and provisions of the PP Warrants issued on June 30, 2020 and July 21, 2020 is not complete and is subject to, and qualifiedin its entirety by the provisions of the form PP Warrants, which are incorporated by reference as an exhibit to this annual report. oExercisability. Each PP Warrant has a term of 5.5 years from its date of issuance. The PP Warrants are exercisable, at the option of each holder, in whole or inpart by delivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased uponsuch exercise. If a registration statement registering the resale of the Common Shares underlying the PP Warrants under the Securities Act of 1933 is noteffective or available at any time after the six month anniversary of the date of issuance of the PP Warrants, the holder may, in its sole discretion, elect to exercisethe PP Warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of common shares determined accordingto the formula set forth in the PP Warrant. If we do not issue the shares in a timely fashion, the PP Warrant contains certain damages provisions. No fractionalcommon shares will be issued in connection with the exercise of a PP Warrant. oExercise Limitation. A holder does not have the right to exercise any portion of the PP Warrant if the holder (together with its affiliates) would beneficially ownin excess of 4.99% (or, upon election of the holder, 9.99%) of the number of our Common Shares outstanding immediately after giving effect to the exercise, assuch percentage of beneficial ownership is determined in accordance with the terms of the PP Warrants. However, any holder may increase or decrease suchpercentage, but not in excess of 9.99%, provided that any increase will not be effective until the 61st day after such election. oExercise Price. The exercise price per whole common share purchasable upon exercise of the PP Warrants is $18.00 per share. The exercise price of the PPWarrants is subject to appropriate adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications orsimilar events affecting our common shares and also upon any distributions of assets, including cash, stock or other property to our shareholders. The holders ofPP Warrants have the right to participate on an as-exercised basis in certain rights offerings to our common shareholders. The exercise price may also be reducedto any amount and for any period of time deemed appropriate at the sole discretion of our board of directors. oExchange Listing. There is no established trading market for the PP Warrants and we do not expect a market to develop. In addition, we do not intend to applyfor the listing of the PP Warrants on any national securities exchange or other trading market. oFundamental Transactions. If a fundamental transaction occurs, then the successor entity will succeed to, and be substituted for us, and may exercise every rightand power that we may exercise and will assume all of our obligations under the PP Warrants with the same effect as if such successor entity had been named inthe PP Warrant itself. If holders of our common shares are given a choice as to the securities, cash or property to be received in a fundamental transaction, thenthe holder shall be given the same choice as to the consideration it receives upon any exercise of the PP Warrant following such fundamental transaction. Inaddition, we or the successor entity, at the request of PP Warrant holders, will be obligated to purchase any unexercised portion of the PP Warrants in accordancewith the terms of such PP Warrants. 111  Table of Contents oRights as a Shareholder. Except as otherwise provided in the PP Warrants or by virtue of such holder’s ownership of our common shares, the holder of Warrantswill not have the rights or privileges of a holder of our common shares, including any voting rights, until the holder exercises the PP Warrants. oTransferability. Subject to applicable laws, the PP Warrants may be offered for sale, sold, transferred or assigned without our consent. oGoverning Law. The PP Warrants are governed by New York law. The following summary of certain terms and provisions of the December 2020 Warrants, and is not complete and is subject to, and qualified in its entirety by theprovisions of the form of December 2020 Warrant, which is incorporated by reference as an exhibit to this annual report. ·Exercisability. The December 2020 Warrant have a term of 5.5 years. The December 2020 Warrants are exercisable, at the option of each holder, in whole or inpart by delivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased uponsuch exercise If a registration statement registering the issuance of the common shares underlying the December 2020 Warrants under the Securities Act of 1933is not effective or available, the holder may, in its sole discretion, elect to exercise the December 2020 Warrant through a cashless exercise, in which case theholder would receive upon such exercise the net number of common shares determined according to the formula set forth in the December 2020 Warrant. If wedo not issue the shares in a timely fashion, the December 2020 Warrant contains certain damages provisions. No fractional common shares will be issued inconnection with the exercise of a December 2020 Warrant. ·Exercise Limitation. A holder does not have the right to exercise any portion of the December 2020 Warrant if the holder (together with its affiliates) wouldbeneficially own in excess of 4.99% (or, upon election of the holder, 9.99%) of the number of our Common Shares outstanding immediately after giving effect tothe exercise, as such percentage of beneficial ownership is determined in accordance with the terms of the December 2020 Warrants. However, any holder mayincrease or decrease such percentage, but not in excess of 9.99%, provided that any increase will not be effective until the 61st day after such election. ·Exercise Price. The exercise price per whole common share purchasable upon exercise of the December 2020 Warrants is $6.25 per share (having been reducedfrom the original exercise price of $8.50 per share). The exercise price of the December 2020 Warrants and number of common shares issuable upon exercise ofthe December 2020 Warrants is subject to appropriate adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations,reclassifications or similar events affecting our common shares. The exercise price of the December 2020 Warrants is also subject to adjustment upon anydistributions of assets, including cash, stock or other property to our shareholders. The holders of December 2020 Warrants have the right to participate on an as-exercised basis in certain rights offerings to our common shareholders. The exercise price may also be reduced to any amount and for any period of time deemedappropriate at the sole discretion of our board of directors. ·Exchange Listing. There is no established trading market for the December 2020 Warrants and we do not expect a market to develop. In addition, we do notintend to apply for the listing of the December 2020 Warrants on any national securities exchange or other trading market. ·Fundamental Transactions. If a fundamental transaction occurs, then the successor entity will succeed to, and be substituted for us, and may exercise every rightand power that we may exercise and will assume all of our obligations under the December 2020 Warrants with the same effect as if such successor entity hadbeen named in the December 2020 Warrant itself. If holders of our common shares are given a choice as to the securities, cash or property to be received in afundamental transaction, then the holder shall be given the same choice as to the consideration it receives upon any exercise of the December 2020 Warrantfollowing such fundamental transaction. In addition, we or the successor entity, at the request of December 2020 Warrant holders, will be obligated to purchaseany unexercised portion of the December 2020 Warrants in accordance with the terms of such December 2020 Warrants. ·Rights as a Shareholder. Except as otherwise provided in the December 2020 Warrants or by virtue of such holder’s ownership of our common shares, the holderof December 2020 Warrants will not have the rights or privileges of a holder of our common shares, including any voting rights, until the holder exercises theDecember 2020 Warrants. 112  Table of Contents ·Transferability. Subject to applicable laws, the December 2020 Warrants may be offered for sale, sold, transferred or assigned without our consent. ·Governing Law. The December 2020 Warrants are governed by New York law. The following summary of certain terms and provisions of the January 2021 Warrants, and is not complete and is subject to, and qualified in its entirety by theprovisions of the form of January 2021 Warrant, which is incorporated by reference as an exhibit to this annual report. oExercisability. The January 2021 Warrants have a term of 5.5 years. The January 2021 Warrants are exercisable, at the option of each holder, in whole or in partby delivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased upon suchexercise. If a registration statement registering the issuance of the common shares underlying the January 2021 Warrants under the Securities Act of 1933 is noteffective or available, the holder may, in its sole discretion, elect to exercise the January 2021 Warrants through a cashless exercise, in which case the holderwould receive upon such exercise the net number of common shares determined according to the formula set forth in the January 2021 Warrants. If we do notissue the shares in a timely fashion, the January 2021 Warrants contain certain damages provisions. No fractional common shares will be issued in connectionwith the exercise of a January 2021 Warrant.oExercise Limitation. A holder does not have the right to exercise any portion of the January 2021 Warrants if the holder (together with its affiliates) wouldbeneficially own in excess of 4.99% (or, upon election of the holder, 9.99%) of the number of our Common Shares outstanding immediately after giving effect tothe exercise, as such percentage of beneficial ownership is determined in accordance with the terms of the January 2021 Warrants. However, any holder mayincrease or decrease such percentage, but not in excess of 9.99%, provided that any increase will not be effective until the 61st day after such election.oExercise Price. The exercise price per whole common share purchasable upon exercise of the January 2021 Warrants is $6.25 per share. The exercise price of theJanuary 2021 Warrants and number of common shares issuable upon exercise of the January 2021 Warrants is subject to appropriate adjustment in the event ofcertain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting our common shares. The exercise price ofthe January 2021 Warrants is also subject to adjustment upon any distributions of assets, including cash, stock or other property to our shareholders. The holdersof January 2021 Warrants have the right to participate on an as-exercised basis in certain rights offerings to our common shareholders. The exercise price mayalso be reduced to any amount and for any period of time deemed appropriate at the sole discretion of our board of directors. oExchange Listing. There is no established trading market for the January 2021 Warrants and we do not expect a market to develop. In addition, we do not intendto apply for the listing of the January 2021 Warrants on any national securities exchange or other trading market.oFundamental Transactions. If a fundamental transaction occurs, then the successor entity will succeed to, and be substituted for us, and may exercise every rightand power that we may exercise and will assume all of our obligations under the January 2021 Warrants with the same effect as if such successor entity had beennamed in the January 2021 Warrant itself. If holders of our common shares are given a choice as to the securities, cash or property to be received in afundamental transaction, then the holder shall be given the same choice as to the consideration it receives upon any exercise of the January 2021 Warrantsfollowing such fundamental transaction. In addition, we or the successor entity, at the request of January 2021 Warrant holders, will be obligated to purchase anyunexercised portion of the January 2021 Warrants in accordance with the terms of such January 2021 Warrants. oRights as a Shareholder. Except as otherwise provided in the January 2021 Warrants or by virtue of such holder’s ownership of our common shares, the holder ofJanuary 2021 Warrants will not have the rights or privileges of a holder of our common shares, including any voting rights, until the holder exercises the January2021 Warrants. 113  Table of Contents oTransferability. Subject to applicable laws, the January 2021 Warrants may be offered for sale, sold, transferred or assigned without our consent. oGoverning Law. The January 2021 Warrants are governed by New York law. The following summary of certain terms and provisions of the February 2021 Warrants, and is not complete and is subject to, and qualified in its entirety by theprovisions of the form of warrant, which is incorporated by reference as an exhibit to this annual report: oExercisability. The February 2021 Warrants have a term of 5.5 years. The February 2021 Warrants are exercisable, at the option of each holder, in whole or inpart by delivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased uponsuch exercise. If a registration statement registering the issuance of the common shares underlying the February 2021 Warrants under the Securities Act of 1933is not effective or available, the holder may, in its sole discretion, elect to exercise the February 2021 Warrants through a cashless exercise, in which case theholder would receive upon such exercise the net number of common shares determined according to the formula set forth in the February 2021 Warrants. If wedo not issue the shares in a timely fashion, the February 2021 Warrants contain certain damages provisions. No fractional common shares will be issued inconnection with the exercise of a February 2021 Warrant.oExercise Limitation. A holder does not have the right to exercise any portion of the February 2021 Warrants if the holder (together with its affiliates) wouldbeneficially own in excess of 4.99% (or, upon election of the holder, 9.99%) of the number of our Common Shares outstanding immediately after giving effect tothe exercise, as such percentage of beneficial ownership is determined in accordance with the terms of the February 2021 Warrants. However, any holder mayincrease or decrease such percentage, but not in excess of 9.99%, provided that any increase will not be effective until the 61st day after such election. oExercise Price. The exercise price per whole common share purchasable upon exercise of the February 2021 Warrants is $6.25 per share. The exercise price ofthe February 2021 Warrants and number of common shares issuable upon exercise of the February 2021 Warrants is subject to appropriate adjustment in theevent of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting our common shares. The exerciseprice of the February 2021 Warrants is also subject to adjustment upon any distributions of assets, including cash, stock or other property to ourshareholders. The holders of February 2021 Warrants have the right to participate on an as-exercised basis in certain rights offerings to our commonshareholders. The exercise price may also be reduced to any amount and for any period of time deemed appropriate at the sole discretion of our board ofdirectors.oExchange Listing. There is no established trading market for the February 2021 Warrants and we do not expect a market to develop. In addition, we do not intendto apply for the listing of the February 2021 Warrants on any national securities exchange or other trading market. oFundamental Transactions. If a fundamental transaction occurs, then the successor entity will succeed to, and be substituted for us, and may exercise every rightand power that we may exercise and will assume all of our obligations under the February 2021 Warrants with the same effect as if such successor entity hadbeen named in the February 2021 Warrant itself. If holders of our common shares are given a choice as to the securities, cash or property to be received in afundamental transaction, then the holder shall be given the same choice as to the consideration it receives upon any exercise of the February 2021 Warrantsfollowing such fundamental transaction. In addition, we or the successor entity, at the request of February 2021 Warrant holders, will be obligated to purchaseany unexercised portion of the February 2021 Warrants in accordance with the terms of such February 2021 Warrants.oRights as a Shareholder. Except as otherwise provided in the February 2021 Warrants or by virtue of such holder’s ownership of our common shares, the holderof February 2021 Warrants will not have the rights or privileges of a holder of our common shares, including any voting rights, until the holder exercises theFebruary 2021 Warrants. 114  Table of Contents oTransferability. Subject to applicable laws, the February 2021 Warrants may be offered for sale, sold, transferred or assigned without our consent. oGoverning Law. The February 2021 Warrants are governed by New York law. The following summary of certain terms and provisions of the June 2021 Warrants, and is not complete and is subject to, and qualified in its entirety by the provisionsof the form of warrant, which is incorporated by reference as an exhibit to this annual report: oExercisability. The June 2021 Warrants have a term of 5.5 years. The June 2021 Warrants are exercisable, at the option of each holder, in whole or in part bydelivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased upon suchexercise. If a registration statement registering the issuance of the common shares underlying the June 2021 Warrants under the Securities Act of 1933 is noteffective or available, the holder may, in its sole discretion, elect to exercise the June 2021 Warrants through a cashless exercise, in which case the holder wouldreceive upon such exercise the net number of common shares determined according to the formula set forth in the June 2021 Warrants. If we do not issue theshares in a timely fashion, the June 2021 Warrants contain certain damages provisions. No fractional common shares will be issued in connection with theexercise of a June 2021 Warrant.oExercise Limitation. A holder does not have the right to exercise any portion of the June 2021 Warrants if the holder (together with its affiliates) wouldbeneficially own in excess of 4.99% (or, upon election of the holder, 9.99%) of the number of our Common Shares outstanding immediately after giving effect tothe exercise, as such percentage of beneficial ownership is determined in accordance with the terms of the June 2021 Warrants. However, any holder mayincrease or decrease such percentage, but not in excess of 9.99%, provided that any increase will not be effective until the 61st day after such election. oExercise Price. The exercise price per whole common share purchasable upon exercise of the June 2021 Warrants is $6.25 per share. The exercise price of theJune 2021 Warrants and number of common shares issuable upon exercise of the June 2021 Warrants is subject to appropriate adjustment in the event of certainstock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting our common shares. The exercise price of the June2021 Warrants is also subject to adjustment upon any distributions of assets, including cash, stock or other property to our shareholders. The holders of June2021 Warrants have the right to participate on an as-exercised basis in certain rights offerings to our common shareholders. The exercise price may also bereduced to any amount and for any period of time deemed appropriate at the sole discretion of our board of directors.oExchange Listing. There is no established trading market for the June 2021 Warrants and we do not expect a market to develop. In addition, we do not intend toapply for the listing of the June 2021 Warrants on any national securities exchange or other trading market. oFundamental Transactions. If a fundamental transaction occurs, then the successor entity will succeed to, and be substituted for us, and may exercise every rightand power that we may exercise and will assume all of our obligations under the June 2021 Warrants with the same effect as if such successor entity had beennamed in the June 2021 Warrant itself. If holders of our common shares are given a choice as to the securities, cash or property to be received in a fundamentaltransaction, then the holder shall be given the same choice as to the consideration it receives upon any exercise of the June 2021 Warrants following suchfundamental transaction. In addition, we or the successor entity, at the request of June 2021 Warrant holders, will be obligated to purchase any unexercisedportion of the June 2021 Warrants in accordance with the terms of such June 2021 Warrants.oRights as a Shareholder. Except as otherwise provided in the June 2021 Warrants or by virtue of such holder’s ownership of our common shares, the holder ofJune 2021 Warrants will not have the rights or privileges of a holder of our common shares, including any voting rights, until the holder exercises the June 2021Warrants. 115  Table of Contents oTransferability. Subject to applicable laws, the June 2021 Warrants may be offered for sale, sold, transferred or assigned without our consent. oGoverning Law. The June 2021 Warrants are governed by New York law. C. Material Contracts Attached as exhibits to this annual report are the contracts we consider to be both material and outside the ordinary course of business and are to be performed inwhole or in part after the filing of this annual report. We refer you to “Item 7.B. Related Party Transactions” for a discussion of our agreements with companiesrelated to us. We also refer you to “Item 4. Information on the Company,” “Item 5.B. Liquidity and Capital Resources—Indebtedness,” “Item 6.E. Share Ownership—Incentives Program” and “Item 10.B—Memorandum and Articles of Association” for a description of other material contracts. Other than as discussed in this annual report, we have no material contracts, other than contracts entered into in the ordinary course of business, to which theCompany or any member of the group is a party. D. Exchange Controls We are not aware, under Marshall Islands law, of any restrictions on the export or import of capital, including foreign exchange controls or restrictions that affect theremittance of dividends, interest or other payments to holders of our common shares that are neither residents nor citizens of the Marshall Islands. E. Taxation Marshall Islands Tax Considerations The following is applicable only to persons who are not citizens of and do not reside in, maintain offices in or carry on business or conduct transactions or operationsin the Marshall Islands. Because we (including our subsidiaries) do not, and assuming that we continue not to, and assuming our future subsidiaries will not, carry on business or conducttransactions or operations in the Marshall Islands, and because we anticipate that all documentation related to any offerings of our securities will be executed outsideof the Marshall Islands, under current Marshall Islands law our shareholders will not be subject to Marshall Islands taxation or withholding tax on our distributions.In addition, our shareholders will not be subject to Marshall Islands stamp, capital gains or other taxes on the purchase, ownership or disposition of our commonshares, and our shareholders will not be required by the Marshall Islands to file a tax return related to our common shares. Malta Tax Considerations One of our subsidiaries is incorporated in Malta, which imposes taxes on us that are immaterial to our operations. Greek Tax Considerations In January 2013, a tax law 4110/2013 amended the long-standing provisions of art. 26 of law 27/1975 by imposing a fixed annual tonnage tax on vessels flying aforeign (i.e., non-Greek) flag which are managed by a Law 89 company, establishing an identical tonnage tax regime as the one already in force for vessels flying theGreek flag. This tax varies depending on the size of the vessel, calculated in gross registered tonnage, as well as on the age of each vessel. Payment of this tonnagetax completely satisfies all income tax obligations of both the shipowning company and of all its shareholders up to the ultimate beneficial owners. Any tax payableto the state of the flag of each vessel as a result of its registration with a foreign flag registry (including the Marshall Islands) is subtracted from the amount oftonnage tax due to the Greek tax authorities. 116  Table of Contents The tax residents of Greece who receive dividends from such shipowning or their holding companies, (pursuant to a very recent agreement between the Union ofGreek Shipowners and the Greek State, which is expected to come in force shortly) are taxed at 10% on the dividends which they receive and which they import intoGreece, not being liable to any other taxation for these, which include those dividends which either remain with the holding company or are paid to the individualGreek tax resident abroad. United States Tax Considerations This discussion of United States federal income taxes is based upon provisions of the Code, existing final, temporary and proposed regulations thereunder and currentadministrative rulings and court decisions, all as in effect on the effective date of this annual report on Form 20-F and all of which are subject to change, possiblywith retroactive effect. Changes in these authorities may cause the tax consequences to vary substantially from the consequences described below. No rulings have been or are expected to be sought from the IRS with respect to any of the United States federal income tax consequences discussed below, and no assurance can begiven that the IRS will not take contrary positions. Further, the following summary does not deal with all United States federal income tax consequences applicable to any given holder of our common shares, nor doesit address the United States federal income tax considerations applicable to categories of investors subject to special taxing rules, such as expatriates, banks, realestate investment trusts, regulated investment companies, insurance companies, tax-exempt organizations, dealers or traders in securities or currencies, partnerships,S corporations, estates and trusts, investors that hold their common shares as part of a hedge, straddle or an integrated or conversion transaction, investors whose“functional currency” is not the United States dollar or investors that own, directly or indirectly, 10% or more of our stock by vote or value. Furthermore, thediscussion does not address alternative minimum tax consequences or estate or gift tax consequences, or any state tax consequences, and is limited to shareholdersthat will holdtheir common shares as “capital assets” within the meaning of Section 1221 of the Code. Each shareholder is encouraged to consult, and discuss with his or her owntax advisor the United States federal, state, local and non-United States tax consequences particular to him or her of the acquisition, ownership or disposition ofcommon shares. Further, it is the responsibility of each shareholder to file all state, local and non-U.S., as well as U.S. federal, tax returns that may be required of it. United States Federal Income Taxation of the Company Taxation of Operating Income Unless exempt from United States federal income taxation under the rules described below in “—The Section 883 Exemption,” a foreign corporation that earns onlytransportation income is generally subject to United States federal income taxation under one of two alternative tax regimes: (1) the 4% gross basis tax or (2) the netbasis tax and branch profits tax. The Company is a Marshall Islands corporation and its subsidiaries are incorporated in the Marshall Islands or Malta. There is nocomprehensive income tax treaty between the Marshall Islands and the United States, so the Company and its Marshall Islands subsidiaries cannot claim anexemption from this tax under a treaty. The 4% Gross Basis Tax The United States imposes a 4% United States federal income tax (without allowance of any deductions) on a foreign corporation’s United States source grosstransportation income to the extent such income is not treated as effectively connected with the conduct of a United States trade or business. For this purpose,transportation income includes income from the use, hiring or leasing of a vessel, or the performance of services directly related to the use of a vessel (and thusincludes time charter, spot charter and bareboat charter income). The United States source portion of transportation income is 50% of the income attributable tovoyages that begin or end, but not both begin and end, in the United States. As a result of this sourcing rule the effective tax rate is 2% of the gross incomeattributable to U.S. voyages. Generally, no amount of the income from voyages that begin and end outside the United States is treated as United States source, andconsequently none of the transportation income attributable to such voyages is subject to this 4% tax. (Although the entire amount of transportation income fromvoyages that begin and end in the United States would be United States source, neither the Company nor any of its subsidiaries expects to have any transportationincome from voyages that both begin and end in the United States.) 117  Table of Contents The Net Basis Tax and Branch Profits Tax The Company and each of its subsidiaries do not expect to engage in any activities in the United States (other than port calls of its vessels) or otherwise have a fixedplace of business in the United States. Consequently, the Company and its subsidiaries are not expected to be subject to the net basis or branch profits taxes.Nonetheless, if this situation were to change or if the Company or a subsidiary of the Company were to be treated as engaged in a United States trade or business, allor a portion of the Company’s or such subsidiary’s taxable income, including gain from the sale of vessels, could be treated as effectively connected with the conductof this United States trade or business, or effectively connected income. Any effectively connected income, net of allowable deductions, would be subject to UnitedStates federal corporate income tax. In addition, an additional 30% branch profits tax would be imposed on the Company or such subsidiary at such time as theCompany’s or such subsidiary’s after-tax effectively connected income is deemed to have been repatriated to the Company’s or subsidiary’s offshore office. The 4% gross basis tax described above is inapplicable to income that is treated as effectively connected income. A non-United States corporation’s United Statessource transportation income would be considered to be effectively connectedincome only if the non-United States corporation has or is treated as having a fixed place of business in the United States involved in the earning of the transportationincome and substantially all of its United States source transportation income is attributable to regularly scheduled transportation (such as a published schedule withrepeated sailings at regular intervals between the same points for voyages that begin or end in the United States), or in the case of leasing income (such as bareboatcharter income) is attributable to such fixed place of business. The Company and its vessel-owning subsidiaries believe that their vessels will not operate to and fromthe United States on a regularly scheduled basis. Based on the intended mode of shipping operations and other activities, the Company and its vessel-owningsubsidiaries do not expect to have any effectively connected income. The Section 883 Exemption Both the 4% gross basis tax and the net basis and branch profits taxes described above are inapplicable to transportation income that qualifies for the Section 883Exemption. To qualify for the Section 883 Exemption a foreign corporation must, among other things: Øbe organized in a jurisdiction outside the United States that grants an equivalent exemption from tax to corporations organized in the United States (an“Equivalent Exemption”); Øsatisfy one of the following three ownership tests (discussed in more detail below): (1) the more than 50% ownership test, or 50% Ownership Test, (2)the controlled foreign corporation test, or CFC Test, or (3) the “Publicly Traded Test”; and Ømeet certain substantiation, reporting and other requirements (which include the filing of United States income tax returns). The Company is a Marshall Islands corporation, and each of the vessels in its fleet is owned by a separate wholly owned subsidiary organized in the Marshall Islandsor Malta. The U.S. Department of the Treasury recognizes the Marshall Islands and Malta as jurisdictions which grant an Equivalent Exemption; therefore, theCompany and each of its vessel-owning subsidiaries meet the first requirement for the Section 883 Exemption. The 50% Ownership Test In order to satisfy the 50% Ownership Test, a non-United States corporation must be able to substantiate that more than 50% of the value of its shares is owned, for atleast half of the number of days in the non-United States corporation’s taxable year, directly or indirectly, by “qualified shareholders.” For this purpose, qualifiedshareholders are: (1) individuals who are residents (as defined in the Treasury regulations promulgated under Section 883 of the Code, or Section 883 Regulations) ofcountries, other than the United States, that grant an Equivalent Exemption, (2) non-United States corporations that meet the Publicly Traded Test of the Section 883Regulations and are organized in countries that grant an Equivalent Exemption, or (3) certain foreign governments, non-profit organizations, and certain beneficiariesof foreign pension funds. In order for a shareholder to be a qualified shareholder, there generally cannot be any bearer shares in the chain of ownership between theshareholder and the taxpayer claiming the exemption (unless such bearer shares are maintained in a dematerialized or immobilized book-entry system as permittedunder the Section 883 Regulations). 118  Table of Contents A corporation claiming the Section 883 Exemption based on the 50% Ownership Test must obtain all the facts necessary to satisfy the IRS that the 50% OwnershipTest has been satisfied (as detailed in the Section 883 Regulations). The Company does not believe that it satisfied the 50% Ownership Test for the taxable year endedDecember 31, 2021, and has no basis to expect that it will satisfy the 50% Ownership Test in the near future. The CFC Test The CFC Test requires that a non-United States corporation be treated as a controlled foreign corporation, or a CFC, for United States federal income tax purposes formore than half of the days in the taxable year. A CFC is a foreign corporation, more than 50% of the vote or value of which is owned by significant U.S. shareholders(meaning U.S. persons who own at least 10% of the vote or value of the foreign corporation). In addition, more than 50% of the value of the shares of the CFC mustbe owned by qualifying U.S. persons for more than half of the days during the taxable year concurrent with the period of time that the company qualifies as a CFC.For this purpose, a qualifying U.S. person is defined as a U.S. citizen or resident alien, a domestic corporation or domestic tax-exempt trust, in each case, if such U.S.person provides the company claiming the exemption with an ownership statement. The Company does not believe that the requirements of the CFC Test will be metin the near future with respect to the Company or any of its subsidiaries. The Publicly Traded Test The Publicly Traded Test requires that one or more classes of equity representing more than 50% of the voting power and value in a non-United States corporation be“primarily and regularly traded” on an established securities market either in the United States or in a foreign country that grants an Equivalent Exemption. TheSection 883 Regulations provide, in relevant part, that the shares of a non-United States corporation will be considered to be “primarily traded” on an establishedsecurities market in a country if the number of shares of each class of shares that are traded during any taxable year on all established securities markets in thatcountry exceeds the number of shares in each such class that are traded during that yearon established securities markets in any other single country. The Section 883 Regulations also generally provide that shares will be considered to be “regularlytraded” on an established securities market if one or more classes of shares in the corporation representing in the aggregate more than 50% of the total combinedvoting power and value of all classes of shares of the corporation are listed on an established securities market. Also, with respect to each class relied upon to meetthis requirement (1) such class of shares must be traded on the market, other than in minimal quantities, on at least 60 days during the taxable year or one-sixth of thedays in a short taxable year, and (2) the aggregate number of shares of such class of shares traded on such market during the taxable year is at least 10% of theaverage number of shares of such class of shares outstanding during such year or as adjusted for a short taxable year. These two tests are deemed to be satisfied ifsuch class of shares is traded on an established market in the United States and such shares are regularly quoted by dealers making a market in such shares. Notwithstanding the foregoing, the Section 883 Regulations provide, in relevant part, that a class of shares will not be considered to be “regularly traded” on anestablished securities market for any taxable year in which 50% or more of the vote and value of the outstanding shares of such class are owned, actually orconstructively under specified share attribution rules, on more than half the days during the taxable year by persons who each own 5% or more of the vote and valueof such class of outstanding shares, to which we refer as the 5 Percent Override Rule. For purposes of being able to determine the persons who actually or constructively own 5% or more of the vote and value of the Company’s common shares, or 5%Shareholders, the Section 883 Regulations permit a company whose stock is traded on an established securities market in the United States to rely on those personsthat are identified on Schedule 13G and Schedule 13D filings with the SEC, as owning 5% or more of the company’s common shares. In the event the 5 Percent Override Rule is triggered, the Section 883 Regulations provide that such rule will not apply if the Company can establish that within thegroup of 5% Shareholders, there are sufficient qualified shareholders within the meaning of Section 883 and the Section 883 Regulations to preclude non-qualifiedshareholders in such group from owning 50% or more of the total value of the Company’s common shares for more than half the number of days during the taxableyear. The Company believes that it satisfied the Publicly Traded Test for the taxable year ended December 31, 2021, based on information reported in Schedule 13G andSchedule 13D filings with the SEC. The Company cannot currently predict whether it will satisfy the Publicly Traded Test for the current taxable year. The stock inthe Company’s vessel-owning subsidiaries is not publicly traded, but if the Company were to meet the Publicly Traded Test described above, the Company alsogenerally would be a qualified shareholder for purposes of applying the 50% Ownership Test as to any subsidiary claiming the Section 883 Exemption. 119  Table of Contents A corporation’s qualification for the Section 883 Exemption is determined for each taxable year. If the Company and/or its subsidiaries were not to qualify for theSection 883 Exemption in any year in which the Company’s vessels traded to or from the United States, the United States income taxes that become payable wouldhave a negative effect on the business of the Company and its subsidiaries, and would result in decreased earnings available for distribution to the Company’sshareholders United States Taxation of Gain on Sale of Vessels If the Company’s subsidiaries qualify for the Section 883 Exemption, then gain from the sale of any vessel would be exempt from tax under Section 883. If, however,the gain is not exempt from tax under Section 883, the Company will not be subject to United States federal income taxation with respect to such gain provided thatthe income from the vessel has never constituted effectively connected income and that the sale is considered to occur outside of the United States under UnitedStates federal income tax principles. In general, a sale of a vessel will be considered to occur outside of the United States for this purpose if title to the vessel, andrisk of loss with respect to the vessel, pass to the buyer outside of the United States. Tothe extent possible, the Company will attempt to structure any sale of a vessel so that it is considered to occur outside of the United States. United States Federal Income Taxation of United States Holders As used herein, “United States Holder” means a beneficial owner of the Company’s common shares that is an individual citizen or resident of the United States forUnited States federal income tax purposes, a corporation or other entity taxable as a corporation created or organized in or under the laws of the United States or anystate thereof (including the District ofColumbia), an estate the income of which is subject to United States federal income taxation regardless of its source or a trust where a court within the United Statesis able to exercise primary supervision over the administration of the trust and one or more United States persons (as defined in the Code) have the authority tocontrol all substantial decisions of the trust (or a trust that has made a valid election under U.S. Department of the Treasury regulations to be treated as a domestictrust). A “Non-United States Holder” generally means any owner (or beneficial owner) of common shares that is not a United States Holder, other than a partnership.If a partnership holds common shares, the tax treatment of a partner will generally depend upon the status of the partner and upon the activities of the partnership.Partners of partnerships holding common shares should consult their own tax advisors regarding the tax consequences of an investment in the common shares(including their status as United States Holders or Non-United States Holders). Distributions Subject to the discussion of PFICs below, any distributions made by the Company with respect to the common shares to a United States Holder will generallyconstitute dividends, which may be taxable as ordinary income or qualified dividend income as described in more detail below, to the extent of the Company’scurrent or accumulated earnings and profits as determined under United States federal income tax principles. Distributions in excess of the Company’s earnings andprofits will be treated as a nontaxable return of capital to the extent of the United States Holder’s tax basis in its common shares and, thereafter, as capital gain. Dividends paid in respect of the Company’s common shares may qualify for the preferential rate attributable to qualified dividend income if: (1) the common sharesare readily tradable on an established securities market in the United States; (2) the Company is not a PFIC for the taxable year during which the dividend is paid orin the immediately preceding taxable year; (3) the United States Holder has owned the common shares for more than 60 days in the 121-day period beginning 60days before the date on which the common shares become ex-dividend and (4) the United States Holder is not under an obligation to make related payments withrespect to positions in substantially similar or related property. The first requirement currently is and has been met, as our common shares are listed on the NasdaqCapital Market. The Nasdaq Capital Market is a tier of the Nasdaq Stock Market, which is an established securities market. Further, there is no minimal tradingrequirement for shares to be “readily tradable,” so as long as our common shares remain listed on the Nasdaq Capital Market or any other established securitiesmarket in the United States, the first requirement will be satisfied. However, if our common shares are delisted and are not tradable on an established securitiesmarket in the United States (as described in “Item 3.D. Risk Factors—Company Specific Risk Factors—Our common shares may be delisted from Nasdaq, whichcould affect their market price and liquidity”), the first requirement would not be satisfied, and dividends paid in respect of our common shares would not qualify forthe preferential rate attributable to qualified dividend income. The second requirement is expected to be met as more fully described below under “—Consequencesof Possible PFIC Classification.” Satisfaction of the final two requirements will depend on the particular circumstances of each United States Holder. Consequently,if any of these requirements are not met, the dividends paid to individual United States Holders in respect of the Company’s common shares would not be treated asqualified dividend income and would be taxed as ordinary income at ordinary rates. 120  Table of Contents Amounts taxable as dividends generally will be treated as income from sources outside the United States and will, depending on your circumstances, be “passive” or“general” income which, in either case, is treated separately from other types of income for purposes of computing the foreign tax credit allowable to you. However,if (1) the Company is 50% or more owned, by vote or value, by United States persons and (2) at least 10% of the Company’s earnings and profits are attributable tosources within the United States, then for foreign tax credit purposes, a portion of our dividends would be treated as derived from sources within the United States.Under such circumstances, with respect to any dividend paid for any taxable year, the United States source ratio of the Company’s dividends for foreign tax creditpurposes would be equal to the portion of the Company’s earnings and profits from sources within the United States for such taxable year, divided by the totalamount of the Company’s earnings and profits for such taxable year. Consequences of Possible PFIC Classification A non-United States entity treated as a corporation for United States federal income tax purposes will be a PFIC in any taxable year in which, after taking intoaccount the income and assets of the corporation and certain subsidiaries pursuant to a “look through” rule, either: (1) 75% or more of its gross income is “passive”income or (2) 50% or more of the average value of its assets is attributable to assets that produce passive income or are held for the production of passive income. If acorporation is a PFIC in any taxable year that a person holds shares in the corporation (and was not a qualified electing fund with respect to such year, as discussedbelow), the shares held by such person will be treated as shares in a PFIC for all future years (absent an election which, if made, may require the electing person topay taxes in the year of the election). A United States Holder of shares in a PFIC would be required to file an annual information return on IRS Form 8621 containinginformation regarding the PFIC as required by U.S. Department of the Treasury regulations. While there are legal uncertainties involved in this determination, including as a result of adverse case law described herein, based upon the Company’s and itssubsidiaries’ expected operations as described herein and based upon the current and expected future activities and operations of the Company and its subsidiaries,the income of the Company and such subsidiaries from time charters should not constitute “passive income” for purposes of applying the PFIC rules, and the assetsthat the Company owns for the production of this time charter income should not constitute passive assets for purposes of applying the PFIC rules. Although there is no legal authority directly on point, this view is based principally on the position that the gross income that the Company and its subsidiaries derivefrom time charters constitutes services income rather than passive rental income. The Fifth Circuit Court of Appeals decided in Tidewater Inc. v. United States, 565F.3d 299 (5th Cir., 2009) that a typical time charter is a lease, and not a contract for the provision of transportation services. In that case, the court was considering atax issue that turned on whether the taxpayer was a lessor where a vessel was under a time charter, and the court did not address the definition of passive income orthe PFIC rules; however, the reasoning of the case could have implications as to how the income from a time charter would be classified under such rules. If thereasoning of the Tidewater case is applied to the Company’s situation and the Company’s or its subsidiaries’ time charters are treated as leases, the Company’s or itssubsidiaries’ time charter income could be classified as rental income and the Company would be a PFIC unless more than 25% of the income of the Company(taking into account the subsidiary look through rule) is from spot charters plus other active income or an active leasing exception applies. The IRS has announcedthat it will not follow the reasoning of the Tidewater case and would have treated the income from the time charters at issue in that case as services income, includingfor other purposes of the Code. The Company intends to take the position that all of its time, voyage and spot chartering activities will generate active servicesincome and not passive leasing income, but in the absence of direct legal authority specifically relating to the Code provisions governing PFICs, the IRS or a courtcould disagree with this position. Although the matter is not free from doubt as described herein, based on the current operations and activities of the Company andits subsidiaries and on the relative values of the vessels in the Company’s fleet and the charter income in respect of the vessels, Globus Maritime Limited should notbe treated as a PFIC during the taxable year ended December 31, 2021. Based on the Company’s intention and expectation that the Company’s subsidiaries’ income from spot, time and voyage chartering activities plus other activeoperating income will be greater than 25% of the Company’s total gross income at all relevant times and that the gross value of the vessels subject to such time,voyage or spot charters will exceed the gross value of all the passive assets the Company owns at all relevant times, Globus Maritime Limited does not expect that itwill constitute a PFIC with respect to a taxable year in the near future. 121  Table of Contents The Company will try to manage its vessels and its business so as to avoid being classified as a PFIC for a future taxable year; however there can be no assurance thatthe nature of the Company’s assets, income and operations will remain the same in the future (notwithstanding the Company’s current expectations). Additionally, noassurance can be given that the IRS or a court of law will accept the Company’s position that the time charters that the Company’s subsidiaries have entered into orany other time charter that the Company or a subsidiary may enter into will give rise to active income rather than passive income for purposes of the PFIC rules, orthat future changes of law will not adversely affect this position. The Company has not obtained a ruling from the IRS on its time charters or its PFIC status and doesnot intend to seek one. Any contest with the IRS may materially and adversely impact the market for the common shares and the prices at which they trade. Inaddition, the costs of any contest on the issue with the IRS will result in a reduction in cash available for distribution and thus will be borne indirectly by theCompany’s shareholders. If Globus Maritime Limited were to be classified as a PFIC in any year, each United States Holder of the Company’s shares will be subject (in that year and allsubsequent years) to special rules with respect to: (1) any “excess distribution” (generally defined as any distribution received by a shareholder in a taxable year thatis greater than 125% of the average annual distributions received by the shareholder in the three preceding taxable years or, if shorter, the shareholder’s holdingperiod for the shares), and (2) any gain realized upon the sale or other disposition of the common shares. Under these rules: Øthe excess distribution or gain will be allocated ratably over the United States Holder’s holding period; Øthe amount allocated to the current taxable year and any year prior to the first year in which the Company was a PFIC will be taxed as ordinary incomein the current year; and Øthe amount allocated to each of the other taxable years in the United States Holder’s holding period will be subject to United States federal income taxat the highest rate in effect for the applicable class of taxpayer for that year, and an interest charge will be added as though the amount of the taxescomputed with respect to these other taxable years were overdue. In order to avoid the application of the PFIC rules, United States Holders may make a qualified electing fund, or a QEF, election provided in Section 1295 of theCode in respect of their common shares. Even if a United States Holder makes a QEF election for a taxable year of the Company, if the Company was a PFIC for aprior taxable year during which such holder held the common shares and for which such holder did not make a timely QEF election, the United States Holder wouldalso be subject to the more adverse rules described above. Additionally, to the extent any of the Company’s subsidiaries is a PFIC, an election by a United StatesHolder to treat Globus Maritime Limited as a QEF would not be effective with respect to such holder’s deemed ownership of the stock of such subsidiary and aseparate QEF election with respect to such subsidiary is required. In lieu of the PFIC rules discussed above, a United States Holder that makes a timely, valid QEFelection will, in very general terms, be required to include its pro rata share of the Company’s ordinary income and net capital gains, unreduced by any prior yearlosses, in income for each taxable year (as ordinary income and long-term capital gain, respectively) and to pay tax thereon, even if no actual distributions arereceived for that year in respect of the common shares and even if the amount of that income is not the same as the amount of actual distributions paid on thecommon shares during the year. If the Company later distributes the income or gain on which the United States Holder has already paid taxes under the QEF rules,the amounts so distributed will not again be subject to tax in the hands of the United States Holder. A United States Holder’s tax basis in any common shares as towhich a QEF election has been validly made will be increased by the amount included in such United States Holder’s income as a result of the QEF election anddecreased by the amount of nontaxable distributions received by the United States Holder. On the disposition of a common share, a United States Holder making theQEF election generally will recognize capital gain or loss equal to the difference, if any, between the amount realized upon such disposition and its adjusted tax basisin the common share. In general, a QEF election should be made by filing a Form 8621 with the United States Holder’s federal income tax return on or before the duedate for filing such United States Holder’s federal income tax return for the first taxable year for which the Company is a PFIC or, if later, the first taxable year forwhich the United States Holder held common shares. In this regard, a QEF election is effective only if certain required information is made available by the PFIC.Subsequent to the date that the Company first determines that it is a PFIC, the Company will use commercially reasonable efforts to provide any United States Holderof common shares, upon request, with the information necessary for such United States Holder to make the QEF election. In addition to the QEF election, Section 1296 of the Code permits United States Holders to make a “mark-to-market” election with respect to marketable shares in aPFIC, generally meaning shares regularly traded on a qualified exchange or market and certain other shares considered marketable under U.S. Department of theTreasury regulations. For this purpose, a class of shares is regularly traded on a qualified exchange or market for any calendar year during which such class of sharesis traded, other than in de minimis quantities, on at least 15 days during each calendar quarter of the year. Our common shares are regularly traded on the NasdaqCapital Market, which is an established securities market. However, if our common shares were to be delisted, (as described in “Item 3.D. Risk Factors—CompanySpecific Risk Factors—Our common shares may be delisted from Nasdaq, which could affect their market price and liquidity”), then the mark-to-market electiongenerally would be 122  Table of Contents unavailable to United States Holders. If a United States Holder makes a mark-to-market election in respect of its common shares, such United States Holder generallywould, in each taxable year: (1) include as ordinary income the excess, if any, of the fair market value of the common shares at the end of the taxable year over suchUnited States Holder’s adjusted tax basis in the common shares, and (2) be permitted an ordinary loss in respect of the excess, if any, of such United States Holder’sadjusted tax basis in the common shares over their fair market value at the end of the taxable year, but only to the extent of the net amount previously included inincome as a result of the mark-to-market election (with the United States Holder’s basis in the common shares being increased and decreased, respectively, by theamount of such ordinary income or ordinary loss). The consequences of this election may be less favorable than those of a QEF election for United States Holdersthat are sensitive to the distinction between ordinary income and capital gain. United States Holders are urged to consult their tax advisors as to the consequences of making a mark-to-market or QEF election, as well as other United Statesfederal income tax consequences of holding shares in a PFIC. As previously indicated, if the Company were to be classified as a PFIC for a taxable year in which the Company pays a dividend or the immediately precedingtaxable year, dividends paid by the Company would not constitute “qualified dividend income” and, hence, would not be eligible for the reduced rate of United Statesfederal income tax. Sale, Exchange or Other Disposition of Common Shares A United States Holder generally will recognize taxable gain or loss upon a sale, exchange or other disposition of common shares in an amount equal to thedifference between the amount realized by the United States Holder from such sale, exchange or other disposition and the United States Holder’s tax basis in suchcommon shares. Assuming the Company does not constitute a PFIC for any taxable year, this gain or loss will generally be treated as long-term capital gain or loss ifthe United States Holder’s holding period is greater than one year at the time of the sale, exchange or other disposition. Long term capitalgains recognized by a United States Holder other than a corporation are generally taxed at preferential rates. A United States Holder’s ability to deduct capital lossesis subject to limitations. Net Investment Income Tax A United States Holder that is an individual or estate, or a trust that does not fall into a special class of trusts that is exempt from such tax, is subject to a 3.8% tax onthe lesser of (1) such United States Holder’s “net investment income” (or undistributed “net investment income” in the case of estates and trusts) for the relevanttaxable year and (2) the excess of such United States Holder’s modified adjusted gross income for the taxable year over a certain threshold (which in the case ofindividuals will be between $125,000 and $250,000, depending on the individual’s circumstances). A United States Holder’s net investment income will generallyinclude its gross dividend income and its net gains from the disposition of the common shares, unless such dividends or net gains are derived in the ordinary course ofthe conduct of a trade or business (other than a trade or business that consists of certain passive or trading activities). Net investment income generally will notinclude a United States Holder’s pro rata share of the Company’s income and gain if we are a PFIC and that United States Holder makes a QEF election, as describedabove in “—United States Federal Income Taxation of United States Holders—Consequences of Possible PFIC Classification”. However, a United States Holder mayelect to treat inclusions of income and gain from a QEF election as net investment income. Failure to make this election could result in a mismatch between a UnitedStates Holder’s ordinary income and net investment income. If you are a United States Holder that is an individual, estate or trust, you are urged to consult your taxadvisor regarding the applicability of the net investment income tax to your income and gains in respect of your investment in the common shares. United States Federal Income Taxation of Non-United States Holders A Non-United States Holder will generally not be subject to United States federal income tax on dividends paid in respect of the common shares or on gainsrecognized in connection with the sale or other disposition of the common shares provided that the Non-United States Holder makes certain tax representationsregarding the identity of the beneficial owner of the common shares, that such dividends or gains are not effectively connected with the Non-United States Holder’sconduct of a United States trade or business and that, with respect to gain recognized in connection with the sale or other disposition of the common shares by a non-resident alien individual, such individual is not present in the United States for 183 days or more in the taxable year of the sale or other disposition and otherconditions are met. If the Non-United States Holder is engaged in a United States trade or business for United States federal income tax purposes, the income fromthe common shares, including dividends and gain from the sale, exchange or other disposition of the common stock, that is effectively connected with the conduct ofthat trade or business will generally be subject to regular United States federal income tax in the same manner as discussed above relating to the taxation of UnitedStates Holders. 123  Table of Contents Backup Withholding and Information Reporting Information reporting to the IRS may be required with respect to payments on the common shares and with respect to proceeds from the sale of the common shares.With respect to Non-United States Holders, copies of such information returns may be made available to the tax authorities in the country in which the Non-UnitedStates Holder resides under the provisions of any applicable income tax treaty or exchange of information agreement. A “backup” withholding tax may also apply tothose payments if: Øa holder of the common shares fails to provide certain identifying information (such as the holder’s taxpayer identification number or an attestation tothe status of the holder as a Non-United States Holder); Øsuch holder is notified by the IRS that he or she has failed to report all interest or dividends required to be shown on his or her federal income taxreturns; or Øin certain circumstances, such holder has failed to comply with applicable certification requirements. Backup withholding is not an additional tax and may be refunded (or credited against the holder’s United States federal income tax liability, if any), provided thatcertain required information is furnished to the IRS in a timely manner. Non-United States Holders may be required to establish their exemption from information reporting and backup withholding by certifying their status on IRS FormW-8BEN, W-8BEN-E, W-8ECI or W-8IMY, as applicable. Individual United States Holders who hold certain specified foreign assets with values in excess of certain dollar thresholds are required to report such assets on IRSForm 8938 with their U.S. federal income tax return, subject to certain exceptions (including an exception for foreign assets held in accounts maintained by financialinstitutions). Stock in a foreign corporation, including our common shares, is a specified foreign asset for this purpose. Penalties apply for failure to properlycomplete and file Form 8938. You should consult your tax advisor regarding the filing of this form. United States Holders of common shares may be required to fileadditional forms with the IRS under the applicable reporting provisions of the Code. You should consult your tax advisor regarding the filing of any such forms. We encourage each United States Holder and Non-United States Holder to consult with his, her or its own tax advisor as to the particular tax consequencesto him, her or it of holding and disposing of the Company’s common shares, including the applicability of any federal, state, local or foreign tax laws andany proposed changes in applicable law. F. Dividends and Paying Agents Not Applicable. G. Statement by Experts Not Applicable. H. Documents on Display We file reports and other information with the SEC. These materials, including this annual report on Form 20-F and the accompanying exhibits, may be inspected andcopied at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549, or from the SEC’s website, http://www.sec.gov. Youmay obtain information on the operation of the public reference room by calling 1 (800) SEC-0330 and you may obtain copies at prescribed rates. I. Subsidiary Information Not Applicable. 124  Table of Contents Item 11. Quantitative and Qualitative Disclosures About Market Risk Interest Rates We are exposed to market risks associated with changes in interest rates relating to our loan arrangements. As of December 31, 2021 we had a $31.75 millionprincipal balance outstanding under the CIT Loan Facility with CIT Bank N.A. and as of December 31, 2020 we had a $37 million principal balance outstandingunder the EnTrust Loan Facility with EnTrust Global’s Blue Ocean Fund. Interest costs incurred under our loan arrangements are included in our consolidated statement of comprehensive income /(loss). In 2021, the weighted average interest rate for our then-outstanding facilities in total was 5.69% and the respective interest rates on our loan agreements ranged from3.88% to 8.75%, including margins. We will continue to have debt outstanding, which could impact our results of operations and financial condition. Although we may in the future prefer to generatefunds through equity offerings on terms acceptable to us rather than through the use of debt arrangements, we may not be able to do so. We expect to manage anyexposure in interest rates through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The following table sets forth the sensitivity of our existing loan as of December 31, 2021 as to a 1.0% (100 basis points) increase in LIBOR, during the next twoyears, and reflects the additional interest expense that will be incurred. Year Amount2022 $  0.3 million2023 $  0.3 million2024 $  0.2 million2025 $  0.2 million2026 $  0.1 million Currency and Exchange Rates We generate revenues from the trading of our vessels in U.S. dollars but historically incur certain amounts of our operating expenses in currencies other than the U.S.dollar. For cash management, or treasury, purposes, we convert U.S. dollars into foreign currencies which we then hold on deposit until the date of each transaction.Fluctuations in foreign exchange rates create foreign exchange gains or losses when we mark-to-market these non-U.S. dollar deposits. For accounting purposes, expenses incurred in Euro and other foreign currencies are converted into U.S. dollars at the exchange rate prevailing on the date of eachtransaction. Because a portion of our expenses are incurred in currencies other than the U.S. dollar, our expenses may from time to time increase relative to ourrevenues as a result of fluctuations in exchange rates, which could affect the amount of net income that we report in future periods. While we historically have notmitigated the risk associated with exchange rate fluctuations through the use of financial derivatives, we may determine to employ such instruments from time to timein the future in order to minimize this risk. Our use of financial derivatives would involve certain risks, including the risk that losses on a hedged position couldexceed the nominal amount invested in the instrument and the risk that the counterparty to the derivative transaction may be unable or unwilling to satisfy itscontractual obligations, which could have an adverse effect on our results. Commodity Risk Exposure The price and supply of fuel is unpredictable and fluctuates as a result of events outside our control, including geo-political developments, supply and demand for oiland gas, actions by members of the Organization of Petroleum Exporting Countries and other oil and gas producers, war and unrest in oil producing countries andregions, regional production patterns and environmental concerns and regulations. Because we do not intend to hedge our fuel costs, an increase in the price of fuelbeyond our expectations may adversely affect our profitability, cash flows and ability to pay dividends. When our customers pay fuel costs, which they generally dowhen our vessels are on bareboat or time charters, we expect that our customers factor the fuel efficiency of our vessels into the rates they are willing to pay tocharter our ships. 125  Table of Contents Inflation We do not expect inflation to be a significant risk to us in the current and foreseeable economic environment. In the event that inflation becomes a significant factorin the global economy, inflationary pressures would result in increased operating, voyage and finance costs. Item 12. Description of Securities Other than Equity Securities Not Applicable. PART II Item 13. Defaults, Dividend Arrearages and Delinquencies Not Applicable. Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds The superior voting rights of our Series B preferred shares limits the ability of our common shareholders to control or influence corporate matters, and the interests ofthe holder of such shares could conflict with the interests of our other shareholders.While our common shares have one vote per share, each of our 10,300 Series B preferred shares presently outstanding has 25,000 votes per share; however, thevoting power of the Series B preferred shares is limited such that no holder of Series B preferred shares may exercise voting rights pursuant to any Series B preferredshares that would result in the total number of votes a holder is entitled to vote on any matter submitted to a vote of shareholders of the Company to exceed 49.99%of the total number of votes eligible to be cast on such matter. The Series B preferred shares, however, have no dividend rights or distribution rights, other than theright upon dissolution to receive a priority payment equal to the par value per of $0.001 per share.As of the date of this annual report and until such time that we issue a significant number of securities, Goldenmare Limited, a company affiliated with our ChiefExecutive Officer, can therefore control 49.99% of the voting power of our outstanding capital stock. Until such time that we issue a significant number of securities,Goldenmare Limited will have substantial control and influence over our management and affairs and over matters requiring shareholder approval, including theelection of directors and significant corporate transactions, even though Goldenmare Limited owns significantly less than 50% of the Company economically.The superior voting rights of our Series B preferred shares limit our common shareholders’ ability to influence corporate matters. The interests of the holder of theSeries B preferred shares may conflict with the interests of our common shareholders, and as a result, we may take actions that our common shareholders do not viewas beneficial. Any such conflicts of interest could adversely affect our business, financial condition and results of operations, and the trading price of our commonshares. More specifically, the following is a summary of the characteristics of the Series B preferred shares: Voting. To the fullest extent permitted by law, each Series B preferred share entitles the holder hereof to 25,000 votes per share on all matters submitted to a vote ofthe shareholders of the Company, provided however, that no holder of Series B preferred shares may exercise voting rights pursuant to Series B preferred shares thatwould result in the aggregate voting power of any beneficial owner of such shares and its affiliates (whether pursuant to ownership of Series B preferred shares,common shares or otherwise) to exceed 49.99% of the total number of votes eligible to be cast on any matter submitted to a vote of shareholders of the Company. Tothe fullest extent permitted by law, the holders of Series B preferred shares shall have no special voting or consent rights and shall vote together as one class with theholders of the common shares on all matters put before the shareholders. 126  Table of Contents Conversion. The Series B preferred shares are not convertible into common shares or any other security. Redemption. The Series B preferred shares are not redeemable. Dividends. The Series B preferred shares have no dividend rights. Liquidation Preference. Upon any liquidation, dissolution or winding up of the Company, the Series B preferred shares are entitled to receive a payment withpriority over the common shareholders equal to the par value of $0.001 per share. The Series B preferred shareholder has no other rights to distributions upon anyliquidation, dissolution or winding up of the Company. Transferability. All issued and outstanding Series B preferred shares must be held of record by one holder, and the Series B preferred shares shall not be transferredwithout the prior approval of our Board of Directors. Proportional Adjustment. In the event the Company (i) declares any dividend on its common shares, payable in common shares, (ii) subdivides the outstandingcommon shares or (iii) combines the outstanding common shares into a smaller number of shares, there shall be a proportional adjustment to the number ofoutstanding Series B preferred shares. Item 15. Controls and Procedures (a) Disclosure Controls and Procedures Management, including our chief executive officer and chief financial officer, has conducted an evaluation of the effectiveness of our disclosure controls andprocedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act) as of theend of the period covered by this annual report on Form 20-F. Disclosure controls and procedures are defined under SEC rules as controls and other procedures thatare designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Securities Exchange Act of 1934 isrecorded, processed, summarized and reported within required time periods. Disclosure controls and procedures include controls and procedures designed to ensurethat information is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or personsperforming similar functions, as appropriate to allow timely decisions regarding required disclosures. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumventionor overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving theircontrol objectives. Based upon that evaluation, our chief executive officer and chief financial officer has concluded that our disclosure controls and procedures are effective as of theevaluation date. (b) Management’s Annual Report on Internal Control over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of theExchange Act. The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s chief executive officer andchief financial officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s consolidated financialstatements for external reporting purposes in accordance with IFRS as issued by the IASB. A company’s internal control over financial reporting includes thosepolicies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of theassets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordancewith IFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that couldhave a material effect on the financial statements. 127  Table of Contents Management has conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the framework established inInternal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission of 2013. Based on this assessment,management has determined that the Company’s internal control over financial reporting as of December 31, 2021 was effective. Ernst & Young (Hellas) Certified Auditors Accountants S.A., our independent registered public accounting firm, has audited the financial statements included hereinand our internal control over financial reporting and has issued an attestation report on the effectiveness of our internal control over financial reporting as ofDecember 31, 2021. (c) Attestation Report of the Registered Public Accounting Firm The attestation report on the Company’s internal control over financial reporting issued by the registered public accounting firm that audited the Company’sconsolidated financial statements, Ernst Young (Hellas) Certified Auditors Accountants S.A., appears on page F-4 of the financial statements filed as part of thisannual report. (d) Changes in Internal Control over Financial Reporting None. Inherent Limitations on Effectiveness of Controls Our management, including our chief executive officer and our chief financial officer, do not expect that our disclosure controls or our internal control over financialreporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute,assurance that the control system’s objectives will be met. Further, because of the inherent limitations in all control systems, no evaluation of controls can provideabsolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have beendetected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error ormistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls.The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design willsucceed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks.Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Item 16A. Audit Committee Financial Expert Our board of directors has determined that Ioannis Kazantzidis is our audit committee financial expert and he is considered to be “independent” according to the SECand Nasdaq rules. Item 16B. Code of Ethics We have adopted a code of ethics that applies to our directors, officers, employees and agents. Our code of ethics is posted on our website,http://www.globusmaritime.gr/files/ethics_Mar2022.pdf, and certain of our policies can be found here: http://www.globusmaritime.gr/bod.html?submenu=corpgov,and is available upon written request by our shareholders at no cost to Globus Shipmanagement Corp., 128 Vouliagmenis Avenue, 3rd Floor, 166 74 Glyfada, Attica,Greece. We intend to satisfy any disclosure requirements regarding any amendment to, or waiver from, a provision of this code of ethics by posting such informationon our website. Item 16C. Principal Accountant Fees and Services Ernst & Young (Hellas) Certified Auditors Accountants S.A., an independent registered public accounting firm, has audited our annual financial statements acting asour independent auditor for the fiscal years ended December 31, 2021 and 2020. 128  Table of Contents This table below sets forth the total (actual) amounts billed and accrued for Ernst & Young (Hellas) Certified Auditors Accountants S.A. services and breaks downthe amounts by category of services: 2021 2020Audit Fees$ 327,100 $ 363,600Audit-Related Fees – –Tax Fees$     6,850 $ 5,000All Other Fees– –Total$  333,950 $ 368,600 Audit fees for the years ended December 31, 2021 and 2020 were paid in Euros, and we assume an exchange rate of 0.85€/$ and 0.88€/$ for 2021 and 2020,respectively. Audit fees represent compensation for professional services rendered for the audit of the consolidated financial statements and for the review of the quarterlyfinancial information as well as services in connection with the registration statements and related consents and comfort letters and any other audit services requiredfor SEC or other regulatory filings. Furthermore, we have engaged Ernst & Young LLP to provide us with professional services pertaining to U.S. tax compliance preparation for the respective years. The Audit Committee is responsible for the appointment, replacement, compensation, evaluation and oversight of the work of the independent auditors. As part ofthis responsibility, the Audit Committee pre-approves the audit and non-audit services performed by the independent auditors in order to assure that they do notimpair the auditor’s independence from the Company. The Audit Committee has adopted a policy which sets forth the procedures and the conditions pursuant towhich services proposed to be performed by the independent auditors may be pre-approved. Item 16D. Exemptions from the Listing Standards for Audit Committees Our audit committee is comprised of two independent members of our board of directors. Otherwise, our Audit Committee conforms to each other requirementapplicable to audit committees as required by the applicable corporate governance standards of Nasdaq. Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers Not applicable. Item 16F. Change in Registrant’s Certifying Accountant None. Item 16G. Corporate Governance In lieu of obtaining an independent review of related party transactions for conflicts of interests, consistent with Marshall Islands law requirements, a related partytransaction will be permitted if: (i) the material facts as to such director’s interest in such contract or transaction and as to any such common directorship, officershipor financial interest are disclosed in good faith or known to the board or committee, and the board or committee approves such contract or transaction by a votesufficient for such purpose without counting the vote of such interested director, or, if the votes of the disinterested directors are insufficient to constitute an act of theboard, by unanimous vote of the disinterested directors; or (ii) if the material facts as to such director’s interest in such contract or transaction and as to any suchcommon directorship, officership or financial interest are disclosed in good faith or known to the shareholders entitled to vote thereon, and such contract ortransaction is approved by vote of such shareholders. Article VI of our articles of incorporation further limit our ability to enter into business transactions withinterested shareholders. 129  Table of Contents As a foreign private issuer, we are not required to solicit proxies or provide proxy statements to Nasdaq pursuant to Nasdaq corporate governance rules or MarshallIslands law. Consistent with Marshall Islands law, we will notify our shareholders of meetings between 15 and 60 days before the meeting. This notification willcontain, among other things, information regarding business to be transacted at the meeting. In addition, our bylaws provide that certain shareholders must give usadvance notice to properly introduce any business at a meeting of the shareholders. Our bylaws also provide that shareholders may designate in writing a proxy to acton their behalf. While a number of the Nasdaq’s corporate governance standards do not apply to us as a foreign private issuer, we intend to comply with a number of those rules. Thepractices that we will follow in lieu of Nasdaq’s corporate governance rules are as follows: Øin lieu of a nomination committee and remuneration committee comprised entirely of independent directors, our nomination and remuneration committeesare and will be comprised of a majority of independent directors. Each of these committees will be comprised of a minimum of two individuals; Øin lieu of holding regularly scheduled meetings of the board of directors at which only independent directors are present, we will not be holding suchregularly scheduled meetings; Øin lieu of a board of directors that is comprised by a majority of independent directors, our board of directors is not comprised of a majority of independentdirectors; Øin lieu of an audit committee comprised of three independent directors, our audit committee has two members; Øin lieu of having a remuneration committee with the authorities and responsibilities set forth in the Nasdaq rules, our remuneration committee is not requiredto have such authorities and responsibilities; and Øin lieu of obtaining shareholder approval prior to the issuance of securities (including adoption of or any amendment to any equity incentive plan), we willcomply with provisions of the BCA, which allows the board of directors to approve all share issuances. Item 16H. Mining Safety Disclosure Not Applicable. Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent InspectionsNot Applicable. PART III Item 17. Financial Statements See Item 18. Item 18. Financial Statements The following consolidated financial statements beginning on page F-1 are filed as a part of this annual report on Form 20-F. Item 19. Exhibits 1.1Amended and Restated Articles of Incorporation of Globus Maritime Limited dated October 22, 2020 (incorporated by reference to Exhibit 99.1 to GlobusMaritime Limited’s Annual Report on Form 6-K (Reg. No. 001-34985) furnished on October 22, 2020) 130  Table of Contents 1.2Amended and Restated Bylaws of Globus Maritime Limited (incorporated by reference to Exhibit 99.1 to Globus Maritime Limited’s Current Report on Form6-K (Reg. No. 001-34985) filed on August 2, 2019) 1.3Certificate of Designation for Series A Preferred Stock of Globus Maritime Limited dated April 24, 2012 (incorporated by reference to Exhibit 1.3 to GlobusMaritime Limited’s Annual Report on Form 20-F (Reg. No. 001-34985) filed on April 27, 2012) 1.4Amended and Restated Statement of Designation of Rights, Preferences, and Privileges of Series B Preferred Stock of Globus Maritime Limited dated July 27,2020 (incorporated by reference to Exhibit 99.2 to Globus Maritime Limited’s Report on Form 6-K (Reg. No. 001-34985) furnished on July 27, 2020) 2.1*Description of Rights of Each Class of Securities Registered under Section 12 of the Exchange Act 2.2Specimen Common Share Certificate (incorporated herein by reference to Exhibit 4.1 to Globus Maritime Limited’s Report on Form 6-K (Reg. No. 001-34985) furnished on July 31, 2020) 4.1Registration Rights Agreement between Globus Maritime Limited and Firment Trading Limited dated November 23, 2016 (incorporated by reference toExhibit 99.1 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) filed on November 27, 2016) 4.2Globus Maritime Limited 2012 Equity Incentive Plan amended August 12, 2016 and April 9, 2017 (incorporated by reference to Exhibit 4.7 to GlobusMaritime Limited’s Annual Report on Form 20-F (Reg. No. 001-34985) filed on April 11, 2017) 4.3*Private Sublease Agreement dated August 5, 2021 between Globus Maritime Limited and Cyberonica S.A. 4.4Warrant Agency Agreement dated June 22, 2020 among the Company, Computershare Inc., and Computershare Trust Company, N.A. as warrant agent(incorporated by reference to Exhibit 4.1 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on June 22, 2020) 4.5Form of Class A Warrant dated June 22, 2020 (incorporated by reference to Exhibit 4.2 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No.001-34985) furnished on June 22, 2020) 131  Table of Contents 4.6Form of Securities Purchase Agreement dated June 26, 2020 between the Company and the purchasers identified on the signature pages thereto (incorporatedby reference to Exhibit 4.2 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on June 29, 2020) 4.7Form of Common Share Purchase Warrant to be issued to the purchasers under the Securities Purchase Agreement (incorporated by reference to Exhibit 4.3 toGlobus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on June 29, 2020) 4.8Form of Securities Purchase Agreement dated July 17, 2020 between the Company and the purchasers identified on the signature pages thereto (incorporatedby reference to Exhibit 4.2 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on July 17, 2020) 4.9Form of Common Share Purchase Warrant to be issued to the purchasers under the Securities Purchase Agreement (incorporated by reference to Exhibit 4.3 toGlobus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on July 17, 2020) 4.10Form of Securities Purchase Agreement dated December 7, 2020 between the Company and the purchasers identified on the signature pages thereto(incorporated by reference to Exhibit 4.2 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on December 9, 2020) 4.11Form of Common Share Purchase Warrant to be issued to the purchasers under the Securities Purchase Agreement (incorporated by reference to Exhibit 4.3 toGlobus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on December 9, 2020) 4.12Form of Securities Purchase Agreement dated January 27, 2021 between the Company and the purchasers identified on the signature pages thereto(incorporated by reference to Exhibit 4.2 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on January 28, 2021) 4.13Form of Common Share Purchase Warrant to be issued to the purchasers under the Securities Purchase Agreement (incorporated by reference to Exhibit 4.3 toGlobus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on January 28, 2021) 4.14Form of Securities Purchase Agreement dated February 12, 2021 between the Company and the purchasers identified on the signature pages thereto(incorporated by reference to Exhibit 4.2 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on February 16, 2021) 4.15Form of Common Share Purchase Warrant to be issued to the purchasers under the Securities Purchase Agreement (incorporated by reference to Exhibit 4.3 toGlobus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on February 16, 2021) 4.16Form of Securities Purchase Agreement dated June 25, 2021 between the Company and the purchasers identified on the signature pages thereto (incorporatedby reference to Exhibit 4.2 to Globus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on June 28, 2021) 4.17Form of Common Share Purchase Warrant to be issued to the purchasers under the Securities Purchase Agreement (incorporated by reference to Exhibit 4.3 toGlobus Maritime Limited’s Current Report on Form 6-K (Reg. No. 001-34985) furnished on June 28, 2021) 132  Table of Contents 4.18Facility Agreement among CIT Bank, N.A. and Globus Maritime Limited dated May 7, 2021 (incorporated by reference to Exhibit 99.2 to Globus MaritimeLimited’s Report on Form 6-K (Reg. No. 001-34985) filed on May 14, 2021) 8.1*Subsidiaries of Globus Maritime Limited 12.1*Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002 of the President and Chief Executive Officer 12.2*Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002 of the Chief Financial Officer 13.1*Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the President and Chief ExecutiveOfficer 13.2*Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Financial Officer 15.1*Consent of Independent Registered Public Accounting Firm Ernst & Young (Hellas) Certified Auditors Accountants S.A. 101*The following materials from the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2021, formatted in eXtensible BusinessReporting Language (XBRL): (i) Consolidated Balance Sheets as of December 31, 2021 and 2020; (ii) Consolidated Statements of Operations for the yearsended December 31, 2019, 2020 and 2021; (iii) Consolidated Statements of Comprehensive Income/(Loss) for the years ended December 31, 2019, 2020 and2021; (iv) Consolidated Statements of Stockholders' Equity for the years ended December 31, 2019, 2020 and 2021; (v) Consolidated Statements of CashFlows for the years ended December 31, 2019, 2020 and 2021; and (vi) the Notes to Consolidated Financial Statements. * Filed herewith. 133  Table of Contents SIGNATURES The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to signthis annual report on its behalf. GLOBUS MARITIMELIMITED By:/s/ Athanasios Feidakis Name: Athanasios Feidakis Title: President, ChiefExecutive OfficerandChief Financial Officer Date: April 11, 2022 134  Table of Contents GLOBUS MARITIME LIMITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 135  Table of Contents INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB Firm ID #1457)F-2Report of Independent Registered Public Accounting FirmF-3Consolidated Statement of Comprehensive Income/(Loss)F-4Consolidated Statement of Financial PositionF-5Consolidated Statement of Changes in EquityF-6Consolidated Statement of Cash FlowsF-7Notes to the Consolidated Financial StatementsF-8 toF-43 F-1  Table of Contents Report of Independent Registered Public Accounting FirmTo the Shareholders and the Board of Directors of Globus Maritime LimitedOpinion on the Financial StatementsWe have audited the accompanying consolidated statements of financial position of Globus Maritime Limited (the “Company”) as of December 31, 2021 and 2020,the related consolidated statements of comprehensive income / (loss), changes in equity and cash flows for each of the three years in the period ended December 31,2021, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, inall material respects, the financial position of the Company at December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the threeyears in the period ended December 31, 2021, in conformity with International Financial Reporting Standards (“IFRS”) as issued by the International AccountingStandards Board (“IASB”).We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internalcontrol over financial reporting as of December 31, 2021, based on criteria established in Internal Control-Integrated Framework issued by the Committee ofSponsoring Organizations of the Treadway Commission (2013 framework) and our report dated April 11, 2022 expressed an unqualified opinion thereon.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statementsbased on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance withthe U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risksof material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures includedexamining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principlesused and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide areasonable basis for our opinion.Critical Audit MatterThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated orrequired to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2)involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on theconsolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the criticalaudit matter or on the accounts or disclosures to which it relates. Indicators for the reversal of impairment losses related to vesselsDescription of the matterAt December 31, 2021, the carrying value of the Company’s vessels was $130,724 thousand and impairment losses of $4,615 thousandand $29,902 thousand were recognized during the years ended December 31, 2020 and 2019 respectively. As discussed in Notes 2.13and 5 to the consolidated financial statements, the Company assesses whether there are any indicators that an impairment lossrecognized in prior periods for a vessel may have decreased or may no longer exist and, considers that a previously recognizedimpairment loss is reversed only if there has been a change in the estimates used to determine the vessel’s recoverable amount sincethe last impairment loss was recognized, in accordance with IAS 36 Impairment of Assets (“IAS 36”). At each reporting date, the Company analyzes potential indicators for the reversal of impairment ("reversal indicators"), such assignificant sustained recovery of charter rates and vessel fair values. The Company's evaluation of the existence of reversal indicatorsconsiders both internal and external data and changes in the extent and manner in which vessels are expected to be used. If suchindicators exist, the recoverable amount of the vessel is estimated to determine the extent of the impairment reversal (if any). Auditing the assessment of reversal indicators was complex given the judgement and estimation uncertainty in determining whetherthe recovery of charter rates and vessel fair values is sustainable mainly due to the forward-looking nature of the information and themarket volatility of vessel fair values and charter rates. F-2  Table of Contents How we addressed thematter in our auditWe obtained an understanding of the Company’s process over the evaluation of indicators for the reversal of previously recognizedimpairment losses related to vessels, evaluated the design, and tested the operating effectiveness of the controls over the Company’sdetermination of potential reversal indicators. We analyzed management’s assessment of indicators for the reversal of impairment losses of vessels against the accounting guidancein IAS 36. To assess management’s assumptions for sustainable recovery of vessel fair values, we compared the trend of vessel fairvalues to historical market information derived from external information sources for the industry, historical and forward-lookingthird-party information including industry analysts’ reports and other industry data. To assess management’s assumptions forsustainable recovery of charter rates, we compared the trend of charter rates to historical market information derived from externalinformation sources for the industry and historical and forward-looking third-party information including industry analysts’ reports. We considered whether the information used by management was consistent with evidence obtained in other areas of the audit.Further, we assessed the adequacy of the Company’s disclosures in Notes 2.13 and 5. /s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A. We have served as the Company’s auditor since 2007. Athens, GreeceApril 11, 2022 F-3  Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Globus Maritime Limited Opinion on Internal Control Over Financial Reporting We have audited Globus Maritime Limited’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion,Globus Maritime Limited (“the Company”) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based onthe COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements offinancial position of the Company as of December 31, 2021 and 2020, the related consolidated statements of comprehensive income / (loss), changes in equity andcash flows for each of the three years in the period ended December 31, 2021, and the related notes and our report dated April 11, 2022 expressed an unqualifiedopinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internalcontrol over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is toexpress an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB andare required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of theSecurities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in thecircumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financialreporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactionsand dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate. /s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A. Athens, Greece April 11, 2022 F-4  Table of Contents GLOBUS MARITIME LIMITEDCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)For the years ended December 31, 2021, 2020 and 2019(Expressed in thousands of U.S. Dollars, except share and per share) Notes 2021 2020 2019REVENUE: Voyage revenues 2.22 43,211 11,753 15,623Management & consulting fee income4 170 — — Total Revenues 43,381 11,753 15,623 EXPENSES & OTHER OPERATING INCOME: Voyage expenses13 (1,128) (2,490) (2,098)Vessel operating expenses13 (13,808) (8,581) (8,882)Depreciation5 (3,910) (2,398) (4,721)Depreciation of dry-docking costs5 (2,751) (1,335) (1,704)Administrative expenses14 (2,610) (1,891) (1,583)Administrative expenses payable to related parties4 (1,361) (1,915) (371)Share-based payments4,12 (40) (40) (40)Impairment loss5 — (4,615) (29,902)Other income, net 171 89 29Operating income/(loss) 17,944 (11,423) (33,649) Interest income 8 16 47Interest expense and finance costs15 (3,262) (4,155) (4,703)Gain/(loss) on derivative financial instruments11 181 (1,647) 1,950Foreign exchange gains/(losses), net 79 (163) 4 (2,994) (5,949) (2,702) TOTAL INCOME/(LOSS) FOR THE YEAR 14,950 (17,372) (36,351)Other Comprehensive Income — — — TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR 14,950 (17,372) (36,351) Earnings/(Loss) per share (U.S.$): - Basic and Diluted income/(loss) per share for the year10 1.01 (18.11) (873.36) The accompanying notes form an integral part of these consolidated financial statements. F-5  Table of Contents GLOBUS MARITIME LIMITEDCONSOLIDATED STATEMENTS OF FINANCIAL POSITIONAs at December 31, 2021 and 2020(Expressed in thousands of U.S. Dollars) ASSETSNotes 2021 2020 NON-CURRENT ASSETS Vessels, net5 130,724 62,350Office furniture and equipment 97 100Right of use asset2,4 888 450Restricted cash3 3,576 1,250Fair value of derivative financial instruments 417 —Other non-current assets 10 10Total non-current assets 135,712 64,160CURRENT ASSETS Trade accounts receivable 1,003 153Inventories6 852 1,248Prepayments and other assets 1,224 1,027Restricted cash3 1,648 816Cash and cash equivalents3 45,213 19,037Total current assets 49,940 22,281TOTAL ASSETS 185,652 86,441 EQUITY AND LIABILITIES EQUITY Issued share capital9 82 12Share premium9 284,406 195,102Accumulated deficit (138,070) (153,020)Total equity 146,418 42,094NON-CURRENT LIABILITIES Long-term borrowings, net of current portion4, 11 26,438 30,887Provision for staff retirement indemnities 114 31Lease liabilities2, 18 556 367Total non-current liabilities 27,108 31,285CURRENT LIABILITIES Current portion of long-term borrowings11 4,865 5,665Trade accounts payable4, 7 1,100 4,758Accrued liabilities and other payables8 3,676 2,159Current portion of lease liabilities2, 18 349 195Fair value of derivative financial instruments11 92 — Deferred revenue 2.4 2,044 285Total current liabilities 12,126 13,062TOTAL LIABILITIES 39,234 44,347TOTAL EQUITY AND LIABILITIES 185,652 86,441 The accompanying notes form an integral part of these consolidated financial statements. F-6  Table of Contents GLOBUS MARITIME LIMITEDCONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFor the years ended December 31, 2021, 2020 and 2019(Expressed in thousands of U.S. Dollars) Issued ShareCapital SharePremium (AccumulatedDeficit) Total EquityAs at January 1, 2019 – 140,347 (99,297) 41,050Loss for the year – – (36,351) (36,351)Other comprehensive income – – – –Total comprehensive loss – – (36,351) (36,351)Share-based payments (note 12) – 40 – 40Issuance of common stock due to conversion (note 11) – 5,140 – 5,140As at December 31, 2019 – 145,527 (135,648) 9,879Loss for the year – – (17,372) (17,372)Other comprehensive income – – – –Total comprehensive loss – – (17,372) (17,372)Share-based payments (note 12) – 40 – 40Issuance of common stock due to conversion (note 11) – 815 – 815Issuance of new common shares (Note 9) 12 49,305 – 49,317Issuance of new common shares due to exercise of Warrants (Note 9) – 194 – 194Issuance of Class B preferred shares (Note 4) – 300 – 300Transaction costs on issue of new common shares (Note 9) – (1,079) – (1,079)As at December 31, 2020 12 195,102 (153,020) 42,094Income for the year – – 14,950 14,950Other comprehensive income – – – –Total comprehensive income – – 14,950 14,950Share-based payments (note 12) – 40 – 40Issuance of new common shares (Note 9) 60 89,520 – 89,580Issuance of new common shares due to exercise of Warrants (Note 9) 10 15 – 25Issuance of Class B preferred shares (Note 4) – 130 – 130Transaction costs on issue of new common shares (Note 9) – (401) – (401)As at December 31, 2021 82 284,406 (138,070) 146,418 The accompanying notes form an integral part of these consolidated financial statements. F-7  Table of Contents GLOBUS MARITIME LIMITEDCONSOLIDATED STATEMENTS OF CASH FLOWSFor the years ended December 31, 2021, 2020 and 2019(Expressed in thousands of U.S. Dollars) Notes 2021 2020 2019Operating activities Income / (Loss) for the year 14,950 (17,372) (36,351)Adjustments for: Depreciation5 3,910 2,398 4,721Depreciation of deferred dry-docking costs5 2,751 1,335 1,704Payment of deferred dry-docking costs (3,664) (2,663) (861)Provision for staff retirement indemnities 83 5 (61)Impairment loss5 — 4,615 29,902(Gain)/Loss on derivative financial instruments11 (181) 1,647 (1,950)Interest expense and finance costs15 3,262 4,155 4,703Interest income (8) (16) (47)Foreign exchange gains, net (87) 121 (11)Share based payment12 40 40 40(Increase)/decrease in: Trade accounts receivable (850) 87 337Inventories 396 297 (895)Prepayments and other assets (197) (874) 18Increase/(decrease) in: Trade accounts payable (1,917) 89 (1,013)Accrued liabilities and other payables 503 (392) 63Deferred revenue 1,759 285 (86)Net cash generated from / (used in) operating activities 20,750 (6,243) 213Cash flows from investing activities: Vessels acquisition5 (71,600) (18,474) — Purchase of vessel equipment (332) (54) (54)Purchases of office furniture and equipment (36) (30) (13)Interest received 8 16 47Net cash used in investing activities (71,960) (18,542) (20)Cash flows from financing activities: Proceeds from loans4, 11 34,250 — 43,700Repayment of long-term debt11 (3,993) — (1,830)Prepayment of long-term debt11 (35,507) (3,040) (33,833)Proceeds from issuance of share capital9 89,580 49,317 — Proceeds from exercise of Warrants 25 194 — Transaction costs on issuance of new common shares9 (401) (1,079) — (Increase)/decrease in restricted cash3 (3,158) 369 (1,085)Payment of financing costs (545) — (880)Payment of lease liability - principal (241) (159) (30)Interest paid (2,624) (4,146) (3,915)Net cash generated from financing activities 77,386 41,456 2,127Net increase in cash and cash equivalents 26,176 16,671 2,320Cash and cash equivalents at the beginning of the year3 19,037 2,366 46Cash and cash equivalents at the end of the year3 45,213 19,037 2,366 The accompanying notes form an integral part of these consolidated financial statements. F-8  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 1.       Basis of presentation and general information The accompanying consolidated financial statements include the financial statements of Globus Maritime Limited (“Globus”) and its wholly owned subsidiaries(collectively the “Company”). Globus was formed on July 26, 2006, under the laws of Jersey. On June 1, 2007, Globus concluded its initial public offering in theUnited Kingdom and its shares were admitted for trading on the Alternative Investment Market (“AIM”). On November 24, 2010, Globus was redomiciled to theMarshall Islands and its shares were admitted for trading in the United States (NASDAQ Global Market) under the Securities Act of 1933, as amended. OnNovember 26, 2010, Globus’ shares were effectively delisted from AIM. The address of the registered office of Globus is: Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960. The principal business of the Company is the ownership and operation of a fleet of dry bulk motor vessels (“m/v”), providing maritime services for thetransportation of dry cargo products on a worldwide basis. The Company conducts its operations through its vessel owning subsidiaries. The operations of the vessels are managed by Globus Shipmanagement Corp. (the “Manager”), a wholly owned Marshall Islands corporation. The Manager hasan office in Greece, located at 128 Vouliagmenis Avenue, 166 74 Glyfada, Greece and provides the commercial, technical, cash management and accountingservices necessary for the operation of the fleet in exchange for a management fee. The management fee is eliminated on consolidation. The consolidatedfinancial statements include the financial statements of Globus and its subsidiaries listed below, all wholly owned by Globus as at December 31, 2021: Company Country of Incorporation Vessel Delivery Date Vessel Owned Globus Shipmanagement Corp. Marshall Islands - Management Co.Devocean Maritime Ltd. Marshall Islands December 18, 2007 m/v River GlobeDomina Maritime Ltd. Marshall Islands May 19, 2010 m/v Sky GlobeDulac Maritime S.A. Marshall Islands May 25, 2010 m/v Star GlobeArtful Shipholding S.A. Marshall Islands June 22, 2011 m/v Moon GlobeLongevity Maritime Limited Malta September 15, 2011 m/v Sun GlobeSerena Maritime Limited Marshall Islands October 29, 2020 m/v Galaxy GlobeTalisman Maritime Limited Marshall Islands July 20, 2021 m/v Power GlobeArgo Maritime Limited Marshall Islands June 9, 2021 m/v Diamond GlobeCalypso Shipholding S.A. Marshall Islands – –Daxos Maritime Limited Marshall Islands – –Olympia Shipholding S.A. Marshall Islands – –Paralus Shipholding S.A. Marshall Islands – –Salaminia Maritime Limited Marshall Islands November 29, 2021 m/v Orion Globe The consolidated financial statements as at December 31, 2021 and 2020 and for the three years in the period ended December 31, 2021, were approved forissuance by the Board of Directors on April 6, 2022. F-9  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2. Basis of Preparation and Significant Accounting Policies 2.1     Basis of Preparation: The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instrumentswhich are measured at fair value. The consolidated financial statements are presented in U.S. dollars and all values are rounded to the nearest thousand ($ 000s)except when otherwise indicated. Going concern basis of accounting: The Company performs on a regular basis an assessment to evaluate its ability to continue as a going concern. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, butis not limited to, twelve months from the end of the reporting period. The degree of consideration depends on the facts in each case and depends on theCompany’s profitability and ready access to financial resources, In certain cases, management may need to consider a wide range of factors relating to currentand expected profitability, debt repayment schedules, compliance with the financial and security collateral cover ratio covenants under its existing debtagreements and potential sources of replacement financing before it can satisfy itself that the going concern basis is appropriate. The Company may need todevelop detailed cash flow projections as part of its assessment in such cases. In developing estimates of future cash flows, the Company makes assumptionsabout the vessels’ future performance, with the significant assumptions relating to time charter equivalent rates, vessels’ operating expenses, vessels’ capitalexpenditures, fleet utilization, Company’s general and administrative expenses and cash flow requirements for debt servicing. The assumptions used to developestimates of future cash flows are based on historical trends as well as future expectations. On January 29, 2021, February 17, 2021 and June 25, 2021 the Company completed additional follow-on equity offerings that provided the Company withfurther liquidity (refer to Note 9). As at December 31, 2021, the Company reported a working capital surplus of $37.8 million and was in compliance with itsdebt covenants. The above conditions indicate that the Company is expected to be able to operate as a going concern and these consolidated financial statements were preparedunder this assumption. Impact of COVID-19 on the Company’s Business 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 theglobal economy and the shipping industry, as well as significant volatility in the financial markets, the severity and duration of which remains uncertain. The impact of the COVID-19 pandemic continues to unfold and may continue to have a negative effect on the Company’s business, financial performance andthe results of its operations. As a result, many of the Company’s estimates and assumptions required increased judgment and carry a higher degree of variabilityand volatility. As events continue to evolve and additional information becomes available, the Company’s estimates may change in future periods. Besidesreducing demand for cargo, coronavirus may functionally limit the amount of cargo that the Company and its competitors are able to move because countriesworldwide have imposed quarantine checks on arriving vessels, which have caused delays in loading and delivery of cargoes. The Company has evaluated the impact of the current economic situation on the recoverability of the carrying amount of its vessels. During the first quarter of2020, the Company concluded that events and circumstances triggered the existence of potential impairment of its vessels. These indicators included volatility inthe charter market as well as the potential impact the current marketplace may have on the future operations. As a result, the Company performed an impairmentassessment of the Company’s vessels by comparing the discounted projected net operating cash flows for each vessel to its carrying values. For the first quarterof 2020, the Company concluded that the recoverable amounts of the vessels were lower than their carrying amounts and an impairment loss of $4,615 wasrecorded (Note 5). The Company has re-assessed impairment indicators as at December 31, 2021 and concluded that no further impairment of its vessels shouldbe recorded or previously recognized impairment should be reversed. F-10  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) Statement of Compliance: These consolidated financial statements of the Company have been prepared in accordance with International Financial ReportingStandards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Basis of Consolidation: The consolidated financial statements comprise the financial statements of Globus and its subsidiaries listed in Note 1. The financialstatements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All inter-company balances and transactions have been eliminated upon consolidation. Subsidiaries are fully consolidated from the date on which control istransferred to the Company and cease to be consolidated from the date on which control is transferred out of the Company. 2.2    Standards amendments and interpretations: The accounting policies adopted are consistent with those of previous financial year except for the following amended IFRS which have been adopted by theCompany as at January 1, 2021: IFRS 16 Leases-Cοvid 19 Related Rent Concessions (Amendment) The amendment applies, retrospectively, to annual reporting periods beginning on or after 1 June 2020. Earlier application is permitted, including in financialstatements not yet authorized for issue at May 28, 2020. IASB amended the standard to provide relief to lessees from applying IFRS 16 guidance on leasemodification accounting for rent concessions arising as a direct consequence of the covid-19 pandemic. The amendment provides a practical expedient for thelessee to account for any change in lease payments resulting from the covid-19 related rent concession the same way it would account for the change under IFRS16, if the change was not a lease modification, only if all of the following conditions are met: ØThe change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediatelypreceding the change.ØAny reduction in lease payments affects only payments originally due on or before June 30, 2021.ØThere is no substantive change to other terms and conditions of the lease. The amendment had no impact on the consolidated financial statements of the Company. Interest Rate Benchmark Reform – Phase 2 – IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments) In August 2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, completing itswork in response to IBOR reform. The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate(IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). In particular, the amendments provide for a practical expedient when accounting forchanges in the basis for determining the contractual cash flows of financial assets and liabilities, to require the effective interest rate to be adjusted, equivalent toa movement in a market rate of interest. Also, the amendments introduce reliefs from discontinuing hedge relationships including a temporary relief from havingto meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component. There are also amendments to IFRS 7Financial Instruments: Disclosures to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity’s financialinstruments and risk management strategy. While application is retrospective, an entity is not required to restate prior periods. Management has assessed thatthese amendments had no impact on the Company’s financial position or performance. Attributing Benefit to Periods of Service (IAS 19 Employee Benefits) – IFRS Interpretation Committee (IFRS IC or IFRIC) Agenda Decision issuedMay 2021 The International Financial Reporting Standards Interpretations Committee issued a final agenda decision in May 2021, under the title "Attributing Benefits toPeriods of Service" (IAS 19), which includes explanatory material regarding the attribution of benefits in periods of service regarding a specific defined benefitplan analogous to that defined in Article 8 of Greek Law 3198/1955 regarding provision of compensation due to retirement (the "Labor Law Defined BenefitPlan"). This explanatory information differentiates the way in which the basic principles and regulations of IAS 19 have been applied in Greece in the previousyears, and therefore, according to what is defined in the “IASB Due Process Handbook (par 8.6)”, entities that prepare their financial statements in accordancewith IFRS are required to amend their Accounting Policy accordingly. Based on the above, the aforementioned decision is implemented in accordance withparagraphs 19-22 of IAS 8 as a change in accounting policy. The agenda decision had no impact on the consolidated financial statements of the Company. F-11  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) Standards issued but not yet effective and not early adopted: Amendment in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assetsbetween an Investor and its Associate or Joint Venture The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution ofassets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transactioninvolves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute abusiness, even if these assets are housed in a subsidiary. In December 2015 the IASB postponed the effective date of this amendment indefinitely pending theoutcome of its research project on the equity method of accounting. Management has assessed that this amendment will have no impact on the Company’sfinancial position or performance. IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Amendments) The amendments were initially effective for annual reporting periods beginning on or after January 1, 2022 with earlier application permitted. However, inresponse to the covid-19 pandemic, the Board has deferred the effective date by one year, i.e. 1 January 2023, to provide companies with more time to implementany classification changes resulting from the amendments. The amendments aim to promote consistency in applying the requirements by helping companiesdetermine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current or non-current. The amendments affect the presentation of liabilities in the statement of financial position and do not change existing requirements around measurementor timing of recognition of any asset, liability, income or expenses, nor the information that entities disclose about those items. Also, the amendments clarify theclassification requirements for debt which may be settled by the company issuing own equity instruments.In November 2021, the Board issued an exposure draft (ED), which clarifies how to treat liabilities that are subject to covenants to be complied with, at a datesubsequent to the reporting period. In particular, the Board proposes narrow scope amendments to IAS 1 which effectively reverse the 2020 amendmentsrequiring entities to classify as current, liabilities subject to covenants that must only be complied with within the next twelve months after the reporting period,if those covenants are not met at the end of the reporting period. Instead, the proposals would require entities to present separately all non-current liabilitiessubject to covenants to be complied with only within twelve months after the reporting period. Furthermore, if entities do not comply with such future covenantsat the end of the reporting period, additional disclosures will be required. The proposals will become effective for annual reporting periods beginning on or afterJanuary 1, 2024 and will need to be applied retrospectively in accordance with IAS 8, while early adoption is permitted. The Board has also proposed to delaythe effective date of the 2020 amendments accordingly, such that entities will not be required to change current practice before the proposed amendments comeinto effect. Management has assessed that these amendments will have no impact on the Company’s financial position or performance. IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets as well asAnnual Improvements 2018-2020 (Amendments) The amendments are effective for annual periods beginning on or after January 1, 2022, with earlier application permitted. The IASB has issued narrow-scopeamendments to the IFRS Standards as follows: ØIFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing theaccounting requirements for business combinations.ØIAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant and equipment amountsreceived from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceedsand related cost in profit or loss.ØIAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in determining the cost offulfilling a contract for the purpose of assessing whether a contract is onerous.ØAnnual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. Management has assessed that these amendments will have no impact on the Company’s financial position or performance. IFRS 16 Leases -Cοvid 19 Related Rent Concessions beyond June 30, 2021 (Amendment)The Amendment applies to annual reporting periods beginning on or after April 1, 2021, with earlier application permitted, including in financial statements notyet authorized for issue at the date the amendment is issued. In March 2021, the Board amended the conditions of the practical expedient in IFRS 16 thatprovides relief to lessees from applying the IFRS 16 guidance on lease modifications to rent concessions arising as a direct consequence of the covid-19pandemic. Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease payments affects only paymentsoriginally due on or before June 30, 2022, provided the other conditions for applying the practical expedient are met. Management has assessed will have noimpact on the Company’s financial position or performance. F-12  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (Amendments) The Amendments are effective for annual periods beginning on or after January 1, 2023 with earlier application permitted. The amendments provide guidance onthe application of materiality judgements to accounting policy disclosures. In particular, the amendments to IAS 1 replace the requirement to disclose‘significant’ accounting policies with a requirement to disclose ‘material’ accounting policies. Also, guidance and illustrative examples are added in the PracticeStatement to assist in the application of the materiality concept when making judgements about accounting policy disclosures. Management has assessed thatthese amendments will have no impact on the Company’s financial position or performance. IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (Amendments) The amendments become effective for annual reporting periods beginning on or after January 1, 2023 with earlier application permitted and apply to changes inaccounting policies and changes in accounting estimates that occur on or after the start of that period. The amendments introduce a new definition of accountingestimates, defined as monetary amounts in financial statements that are subject to measurement uncertainty. Also, the amendments clarify what changes inaccounting estimates are and how these differ from changes in accounting policies and corrections of errors. Management has assessed that these amendmentswill have no impact on the Company’s financial position or performance. IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments) The amendments are effective for annual periods beginning on or after January 1, 2023 with earlier application permitted. In May 2021, the Board issuedamendments to IAS 12, which narrow the scope of the initial recognition exception under IAS 12 and specify how companies should account for deferred tax ontransactions such as leases and decommissioning obligations. Under the amendments, the initial recognition exception does not apply to transactions that, oninitial recognition, give rise to equal taxable and deductible temporary differences. It only applies if the recognition of a lease asset and lease liability (ordecommissioning liability and decommissioning asset component) give rise to taxable and deductible temporary differences that are not equal. Management hasassessed that these amendments will have no impact on the Company’s financial position or performance. 2.3    Significant accounting policies, judgments, estimates and assumptions: The preparation of consolidated financial statements in conformity with IFRSrequires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the consolidated financial statements and the amounts of revenues and expenses recognised during the reporting period. However,uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset orliability affected in the future. Judgments: In the process of applying the Company’s accounting policies, management has made the following judgments that had a significant effect on theamounts recognised in the consolidated financial statements. ØProvision for expected credit losses: The Company measures allowance for all trade accounts receivable under the simplified model using the lifetimeexpected credit loss (“ECL”) approach. When estimating ECLs, the Company considers reasonable and supportable information that is available withoutundue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. Provisions for expected creditlosses as at December 31, 2021 and 2020, were $8 and nil, respectively. Estimates and assumptions: The key assumptions concerning the future and other key sources of estimation uncertainty at the financial position date, that havea significant risk of causing a significant adjustment to the carrying amount of assets and liabilities within the next financial year, are discussed below. TheCompany based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances andassumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Suchchanges are reflected in the assumptions when they occur. ØCarrying amount of vessels, net: Vessels are stated at cost, less accumulated depreciation (including depreciation of dry-docking costs and the amortizationof the component attributable to favourable or unfavourable lease terms relative to market terms) and accumulated impairment losses. The estimates andassumptions that have the most significant effect on the vessels carrying amount are estimations in relation to useful lives of vessels, their residual valueand estimated dry docking dates. The key assumptions used are further explained in notes 2.9 to 2.13. ØImpairment of Non-Financial Assets and Reversal of previously recognized impairment losses: The Company’s impairment test for non-financial assets isbased on the assets’ recoverable amount, where the recoverable amount is the greater of fair value less costs to sell and value in use. The Company engagedindependent valuation specialists to determine the fair value of non-financial assets as at December 31, 2021 and 2020. The value in use calculation isbased on a discounted cash flow model. The value in use calculation is most sensitive to the discount rate used for the discounted cash flow model as wellas the expected net cash flows. See notes 2.13 and 5. The Company assesses also at each reporting date whether there is any indication that an impairmentloss recognized in prior periods for a vessel may no longer exist or may have decreased. F-13  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) 2.4          Accounting for revenue and related expenses: The Company generates its revenues from charterers for the charter hire of its vessels. Vessels arechartered using time charters and bareboat, where a contract is entered into for the use of a vessel for a specific period of time and a specified daily charter hirerate. If a time charter agreement exists and collection of the related revenue is reasonably assured, revenue is recognised on a straight-line basis over the periodof the time charter. Such revenues are treated in accordance with IFRS 16 and the Company is required to disclose lease and non-lease components of leaserevenue. Associated voyage expenses are recognised on a pro-rata basis over the duration of the period of the time charter. Deferred revenue relates to cashreceived prior to the financial position date and is related to revenue earned after such date. Interest income: interest income is recognised as interest on an accrual basis. Voyage expenses: Voyage expenses primarily consisting of port, canal and bunker expenses that are unique to a particular charter under time charterarrangements are paid by the charterer. Furthermore, voyage expenses include brokerage commission on revenue which is paid by the Company. Voyageexpenses are accounted for on an accrual basis. Under a bareboat charter, the charterer assumes responsibility for all voyage expenses and risk of operation. Vessel operating expenses: Vessel operating costs include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs.Under bareboat charter arrangements, these expenses are paid by the charterer and by the Company under time charter and voyage charter arrangements. Vesseloperating expenses are accounted for on an accrual basis. Under a bareboat charter, the charterer assumes responsibility for all vessel operating expenses and riskof operation. 2.5       Foreign currency translation: The functional currency of Globus and its subsidiaries is the U.S. dollar, which is also the presentation currency of theCompany, since the Company’s vessels operate in international shipping markets, whereby the U.S. dollar is the currency used for transactions. Transactionsinvolving other currencies during the period are converted into U.S. dollars using the exchange rates in effect at the time of the transactions. At the financialposition dates, monetary assets and liabilities, which are denominated in currencies other than the U.S. dollar, are translated into the functional currency using theperiod-end exchange rate. Gains or losses resulting from foreign currency transactions are included in foreign exchange gains/(losses), net in the consolidatedstatement of comprehensive income/(loss). 2.6       Cash and cash equivalents: The Company considers highly liquid investments such as time deposits and certificates of deposit with original maturity ofthree months or less to be cash and cash equivalents. 2.7       Trade accounts receivable, net: The amount shown as trade accounts receivable at each financial position date includes estimated recoveries fromcharterers for hire, net of an allowance for doubtful accounts. Trade accounts receivable without a significant financing component are initially measured at theirtransaction price and subsequently measured at amortized cost less impairment losses, which are recognized in the consolidated statement of comprehensiveincome/(loss). At each financial position date, all potentially uncollectible accounts are assessed individually for the purpose of determining the appropriateprovision for expected credit losses. The provision for expected credit losses at December 31, 2021 was $8 (2020: nil). 2.8       Inventories: Inventories consist of lubricants, bunkers and gas cylinders and are stated at the lower of cost and net realisable value. The cost is determinedby the first-in, first-out method. 2.9       Vessels, net: Vessels are stated at cost, less accumulated depreciation (including depreciation of dry-docking costs and amortization of componentsattributable to favourable or unfavourable lease terms relative to market terms) and accumulated impairment losses. Vessel cost consists of the contract price forthe vessel and any material expenses incurred upon acquisition (initial repairs, improvements and delivery expenses, interest, commissions paid and on-sitesupervision costs incurred during the construction periods). Subsequent expenditures for conversions and major improvements are also capitalised when therecognition criteria are met. Otherwise these amounts are charged to expenses as incurred. F-14  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) 2.10       Dry-docking costs: Vessels are required to be dry-docked for major repairs and maintenance that cannot be performed while the vessels are operating.Dry-dockings occur approximately every 2.5 years. The costs associated with the dry-dockings are capitalised and depreciated on a straight-line basis over theperiod between dry-dockings, to a maximum of 2.5 years. At the date of acquisition of a vessel, management estimates the component of the cost thatcorresponds to the economic benefit to be derived until the first scheduled dry-docking of the vessel under the ownership of the Company and this component isdepreciated on a straight-line basis over the remaining period through the estimated dry-docking date. 2.11       Depreciation: The cost of each of the Company’s vessels is depreciated on a straight-line basis over each vessel’s remaining useful economic life, afterconsidering the estimated residual value of each vessel, beginning when the vessel is ready for its intended use. Management estimates that the useful life of newvessels is 25 years, which is consistent with industry practice. The residual value of a vessel is the product of its lightweight tonnage and estimated scrap valueper lightweight ton. The residual values and useful lives are reviewed at each reporting date and adjusted prospectively. During 2019 and 2020 the Companymaintained the same scrap rate at $300/ton. During the fourth quarter of 2021, the Company adjusted the scrap rate from $300/ton to $380/ton due to theincreased scrap rates worldwide. This resulted to a decrease of $145 to the depreciation charge included in the consolidated statement of comprehensiveincome/(loss) for 2021. 2.12       Amortization of lease component: When the Company acquires a vessel subject to an operating lease; it amortizes the amount reflected in the cost ofthat vessel that is attributable to favourable or unfavourable lease terms relevant to market terms, over the remaining term of the lease. The amortization isincluded in the line “amortization of fair value of time charter attached to vessels” in the income statement component of the consolidated statement ofcomprehensive income/(loss). 2.13      Impairment of Long-Lived Assets and Reversal of previously recognized impairment losses: The Company assesses at each reporting date whetherthere is an indication that a vessel may be impaired. The vessel’s recoverable amount is estimated when events or changes in circumstances indicate the carryingvalue may not be recoverable. If such indication exists and where the carrying value exceeds the estimated recoverable amounts, the vessel is written down to itsrecoverable amount. The recoverable amount is the greater of fair value less costs to sell and value-in-use. In assessing value-in-use, the estimated future cashflows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to thevessel. Impairment losses are recognised in the consolidated statement of comprehensive income/(loss). The Company assesses also at each reporting datewhether there is any indication that an impairment loss recognized in prior periods for a vessel may no longer exist or may have decreased. A previouslyrecognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the lastimpairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceedthe carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal isrecognised in the consolidated statement of comprehensive income/(loss). After such a reversal, the depreciation charge is adjusted in future periods to allocatethe asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life (refer to note 5). 2.14       Long-term debt: Long-term debt is initially recognised at the fair value of the consideration received net of financing costs directly attributable to theborrowing. After initial recognition, long-term debt is subsequently measured at amortized cost using the effective interest rate method. Amortized cost iscalculated by taking into account any financing costs and any discount or premium on settlement. Gains and losses are recognised in the income statementcomponent of the consolidated statement of comprehensive income/(loss) when the liabilities are derecognised or impaired, as well as through the amortizationprocess. 2.15       Financing costs: Fees incurred for obtaining new loans or refinancing existing loans are deferred and amortized over the life of the related debt, usingthe effective interest rate method. Any unamortized balance of costs relating to loans repaid or refinanced is expensed in the period the repayment or refinancingis made. For the year ended December 31, 2021, the Company deferred financing costs of $545, which relate to the costs incurred for the loan agreement withCIT Bank N.A. (This loan facility is referred to as the CIT Loan Facility, see Note 11 for more details). For the year ended December 31, 2020, the Company didnot incur any financing costs. For the year ended December 31, 2019, the Company deferred financing costs of $880, which relate to the costs incurred for theloan agreement with EnTrust Global’s Blue Ocean Fund (see Note 11 for more details). 2.16       Borrowing costs: Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowingcosts are expensed to the income statement component of the consolidated statement of comprehensive income/(loss) as incurred under “interest expense andfinance costs” except borrowing costs that relate to a qualifying asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get readyfor its intended use. Borrowing costs that relate to qualifying assets are capitalised. F-15  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) 2.17       Operating segment: The Company reports financial information and evaluates its operations by charter revenues and not by other factors such as lengthof ship employment for its customers i.e., spot or time charters or type of vessel. The Company does not use discrete financial information to evaluate theoperating results for each such type of charter. Although revenue can be identified for these types of charters, management cannot and does not identifyexpenses, profitability or other financial information for these charters. As a result, management, including the chief operating decision maker, reviews operatingresults solely by revenue per day and operating results of the fleet and thus the Company has determined that it operates as one operating segment. Furthermore,when the Company charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographical informationis impracticable. 2.18       Provisions and contingencies: Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it isprobable that an outflow of resources embodying economic benefits will be required to settle the obligation and, a reliable estimate of the amount of theobligation can be made. Provisions are reviewed at each financial position date and adjusted to reflect the present value of the expenditure expected to berequired to settle the obligation. Contingent liabilities are not recognized in the consolidated financial statements but are disclosed unless the possibility of anoutflow of resources embodying economic benefits is remote, in which case there is no disclosure. Contingent assets are not recognized in the consolidatedfinancial statements but are disclosed when an inflow of economic benefits is probable. 2.19       Pension and retirement benefit obligations: The crew on board the vessels owned by the ship-owning companies, wholly owned subsidiaries ofGlobus, is employed under short-term contracts (usually up to nine months) and, accordingly, the Company is not liable for any pension or post-retirementbenefits payable to the crew. Provision for employees’ severance compensation: The Greek employees of the Company are bound by the Greek Labour law. Accordingly, compensation ispayable to such employees upon dismissal or retirement. The amount of compensation is based on the number of years of service and the amount ofremuneration at the date of dismissal or retirement. If the employee remains in the employment of the Company until normal retirement age, they are entitled toretirement compensation which is equal to 40% of the compensation amount that would be payable if they were dismissed at that time. The number of employeesthat will remain with the Company until retirement age is not known. The Company has provided for the employees’ retirement compensation liability whichamounted to $114 as at December 31, 2021 (2020: $31), calculated by using the Projected Unit Credit Method and disclosed under non-current liabilities in theconsolidated statement of financial position. 2.20       Offsetting of financial assets and liabilities: Financial assets and liabilities are offset and the net amount is presented in the consolidated financialposition only when the Company has a legally enforceable right to set off the recognised amounts and intend either to settle such asset and liability on a net basisor to realize the asset and settle the liability simultaneously. 2.21       Financial assets and liabilities: i. Classification and measurement of financial assets and financial liabilities Under IFRS 9, on initial recognition, a financial asset is classified as measured at: amortized cost; fair value through other comprehensive income (FVOCI) -debt investment; FVOCI - equity investment; or fair value through profit or loss (FVTPL). The classification of financial assets under IFRS 9 is generally basedon the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: ·it is held within a business model whose objective is to hold assets to collect contractual cash flows; and·its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: ·it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and·its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. F-16  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. On initial recognition, the Company mayirrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates orsignificantly reduces an accounting mismatch that would otherwise arise. A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measuredat fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition. ii. Impairment of financial assets IFRS 9 replaced the “incurred loss” model in IAS 39 with an “expected credit loss” (ECL) model. The impairment model applies to financial assets measured atamortized cost, contract assets and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, credit losses are recognized earlierthan under IAS 39. The financial assets at amortized cost consist of trade accounts receivable and cash and cash equivalents. Under IFRS 9, loss allowances are measured on either of the following bases: ·12-month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date; and·lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Companyconsiders reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitativeinformation and analyses, based on the Company's historical experience and informed credit assessment and including forward-looking information. The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 180 days past due. The Company considers a financial asset to be in default when: ·the counterparty is unlikely to pay its contractual obligations to the Company in full, without recourse by the Company to actions such as realising security(if any is held); or·the financial asset is more than 1 year past due. The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between cashflows due to the entity in accordance with the contract and cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate ofthe financial asset. Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. iii. Derecognition of financial assets A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where:·the rights to receive cash flows from the asset have expired;·the Company retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third partyunder a “pass-through” arrangement; or·the Company has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the assets,or (b) has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset. Where the Company has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewardsof the asset nor transferred control of the asset, the asset is recognised to the extent of the Company’s continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and themaximum amount of consideration that the Company could be required to repay. F-17  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) iv. Derecognition of Financial liabilities: A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability aresubstantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability and, thedifference in the respective carrying amounts is recognised in profit or loss. 2.22       Leases: IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. thecustomer (“lessee”) and the supplier (“lessor”). The new standard requires lessees to recognize most leases on their financial statements. Lessees will have asingle accounting model for all leases, with certain exemptions. Lessor accounting is substantially unchanged. The Company has initially adopted IFRS 16 on January 1, 2019 using the modified retrospective approach. On transition, the Company has elected to apply thepractical expedients available for leases with a remaining lease term of less than one year and leases of low value assets. Leases – where the Company is the lessee: The Company applies a single recognition and measurement approach for all leases, except for short term leasesand leases of low value assets. The Company recognizes lease liabilities to make payments and right of use assets representing the right of use of the underlyingasset. The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-useassets are measured at cost, less any accumulated depreciation and impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred and lease payments made at or before the commencement date lessany lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of theassets. If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation iscalculated using the estimated useful life of the asset. At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term.The lease payments include fixed payments (including any in-substance fixed payments) less any lease incentives receivable, variable lease payments thatdepend on an index or a rate, and any amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of apurchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Companyexercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred toproduce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, theCompany uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After thecommencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, thecarrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to futurepayments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase theunderlying asset. At transition, the Company identified the rental agreement with Cyberonica S.A., to give rise to a right of use asset and a corresponding liability estimated toapproximately $674 as at January 1, 2019, calculated as the present value of minimum future lease payments. The discount rate used is the incremental cost ofborrowing, amounting to 8%. In addition, the nature and recognition of expenses related to those leases changed as IFRS 16 replaced the straight-line operatinglease expense with a depreciation charge for right-of-use assets and interest expense on lease liabilities. The depreciation charge for right-of-use assets for the years ended December 31, 2021, 2020 and 2019 was approximately $206, $112 and $112, respectively,and the interest expense on lease liabilities for the years ended December 31, 2021, 2020 and 2019 was approximately $52, $44 and $51, respectively. As atDecember 31, 2021, 2020 and 2019, the net carrying in amount of the right of use asset was $888, $450 and $562, respectively. F-18  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) Leases – where an entity is the lessor: Leases of vessels where the entity does not transfer substantially all the risks and benefits of ownership of the vessel areclassified as operating leases. Lease income on operating leases is recognised on a straight-line basis over the lease term. Contingent rents are recognised asrevenue in the period in which they are earned. For time charters that qualify as leases, the Company is required to disclose lease and non-lease components of lease revenue. The revenue earned under timecharters is not negotiated its two separate components, but as a whole. For purposes of determining the standalone selling price of the vessel lease and technicalmanagement service components of the Company’s time charters, the Company concluded that the residual approach would be the most appropriate method touse given that vessel lease rates are highly variable depending on shipping market conditions, the duration of such charters and the age of the vessel. TheCompany believes that the standalone transaction price attributable to the technical management service component, including crewing services, is more readilydeterminable than the price of the lease component and, accordingly, the price of the service component is estimated using data provided by its technicaldepartment, which includes crew expenses, maintenance and consumable costs and was approximately $14,066 for the year ended December 31, 2021. The leasecomponent that is disclosed then is calculated as the difference between total revenue and the non-lease component revenue and was approximately $29,145 forthe year ended December 31, 2021. 2.23       Insurance: The Company recognizes insurance claim recoveries for insured losses incurred on damage to vessels. Insurance claim recoveries arerecorded, net of any deductible amounts, at the time the Company’s vessels suffer insured damages. They include the recoveries from the insurance companiesfor the claims, provided there is evidence the amounts are virtually certain to be received. 2.24       Share based compensation: Globus operates equity-settled, share-based compensation plans. The value of the service received in exchange of the grant ofshares is recognized as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the share awards at thegrant date. The relevant expense is recognized in the income statement component of the consolidated statement of comprehensive income/(loss), with acorresponding impact in equity. 2.25       Share capital and Warrants: Common shares and preferred shares are classified as equity. Incremental costs directly attributable to the issue of new sharesare recognised in equity as a deduction from the proceeds. The Company’s warrants meet the classification criteria as per IAS 32 and, accordingly, are classified inequity. 2.26       Dividends: Dividends to shareholders are recognised in the period in which the dividends are declared and appropriately authorised and are accountedfor as dividends payable until paid. 2.27       Fair value measurement: The Company measures financial instruments, such as, derivatives and non-financial assets at fair value at each reportingdate. In addition, fair values of financial instruments measured at amortised cost are disclosed in note 21. Fair value is the price that would be received to sell anasset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on thepresumption that the transaction to sell the asset or transfer the liability takes place either, a) in the principal market for the asset or the liability or b) in theabsence of a principal market, in the most advantageous market for the asset or liability both being accessible by the Company. The fair value of an asset or aliability is measured using the assumptions that the market participants would use when pricing the asset or liability, assuming that the market participants act intheir best economic interest. A fair value measurement of a non-financial asset takes into account the market participant’s ability to generate economic benefitsby using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company usesvaluation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevantobservable inputs and minimising the use of unobservable inputs. The Company uses the following hierarchy for determining and disclosing the fair value of assets and liabilities by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. For assets and liabilities that are recognised in the consolidated financial statements on a recurring basis, the Company determines whether transfers haveoccurred between levels in the hierarchy by reassessing categorization at the end of each reporting period. The Company engaged independent valuation specialists to determine the fair value of non-financial assets. F-19  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 2.       Basis of Preparation and Significant Accounting Policies (continued) 2.28       Current versus non-current classification: The Company presents assets and liabilities in the consolidated statement of financial position based oncurrent/non-current classification. An asset as current when it is: ·Expected to be realised or intended to be sold or consumed in a normal operating cycle·Held primarily for the purpose of trading·Expected to be realised within twelve months after the reporting period·Cash or cash equivalent All other assets are classified as non-current. A liability is current: ·It is expected to be settled in a normal operating cycle·It is held primarily for the purpose of trading·It is due to be settled within twelve months after the reporting period·There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current. 2.29       Embedded Derivatives: An embedded derivative is a component of a hybrid contract that also includes a non-derivative host, with the effect that someof the cash flows of the combined instrument vary in a way similar to a stand-alone derivative. An embedded derivative is separated from the host contract if,and only if (IFRS 9.4.3.3):(a) the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host;(b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and(c) the hybrid contract is not measured at fair value with changes in fair value recognised in profit or loss (i.e. a derivative that is embedded in a financial liabilityat fair value through profit or loss is not separated). 2.30       Restricted Cash: Restricted cash represents pledged cash deposits or minimum liquidity required to be maintained under the Company's borrowingarrangements. In the event that the obligation to maintain such deposits is expected to be terminated within the next twelve months, these deposits are classifiedas current assets. Otherwise they are classified as non-current assets. 2.31       Interest Rate Swap: The Company enters into interest rate swap agreements to manage its exposure to fluctuations of interest rate risk associated withits borrowings. Interest Rate Swaps are measured at fair value. The Company uses valuation techniques that are appropriate in the circumstances and for whichsufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Thevaluation technique used for the Interest Rate Swaps is the discounted cash flow (see also note 21). The Company has not designated these interest rate swaps forhedge accounting. The fair value of the Interest Rate Swaps is classified under “Fair value of derivative financial instruments” either under assets or liabilities in the consolidatedstatement of financial position. In the event that the respective asset or liability is expected to be materialized within the next twelve months, it is classified ascurrent asset or liability. Otherwise, the respective asset or liability is classified as non-current asset or liability.The change in fair value deriving from the valuation of the Interest Rate Swap at the end of each reporting period is classified under “Gain/ (Loss) on derivativefinancial instruments” in the consolidated statement of comprehensive income/(loss). Realized gains or losses resulting from interest rate swaps are recognized inprofit or loss under “Gain / (Loss) on derivative financial instruments” in the consolidated statement of comprehensive income/(loss). 2.32       Management & consulting fee income: The Company enters into consultancy agreements with other companies for the purpose of providingconsultancy services. For these services the Company receives a fee. The total income from these fees is classified in the income statement component of theconsolidated statement of comprehensive income/(loss) under management & consulting fee income. F-20  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 3. Cash and cash equivalents and Restricted cash For the purpose of the consolidated statement of financial position, cash and cash equivalents comprise the following: December 31, 2021 2020Cash on hand25 13Cash at banks45,188 19,024Total45,213 19,037 Cash held in banks earns interest at floating rates based on daily bank deposit rates. The fair value of cash and cash equivalents as at December 31, 2021 and 2020, was $45,213 and $19,037, respectively. In addition, as at December 31, 2020,the Company had available undrawn amount of $14,200 under the facility with Firment. The facility with Firment expired on October 31, 2021 (note 11). As at December 31, 2021 and 2020, the Company had pledged an amount of $5,224 and $2,066, respectively, in order to fulfil collateral requirements. Thefair value of the restricted cash as at December 31, 2021 was $5,224, $3,576 included in non-current assets and $1,648 included in current assets. The fairvalue of the restricted cash as at December 31, 2020 was $2,066, $1,250 included in non-current assets and $816 included in current assets as at December 31,2020. The cash and cash equivalents are held with reputable bank and financial institution counterparties with high ratings. 4.      Transactions with Related Parties The following are the major transactions which the Company has entered into with related parties during the years ended December 31, 2021, 2020 and 2019: In August 2006, Globus entered into a rental agreement for 350 square metres of office space for its operations within a building owned by Cyberonica S.A.(an affiliate of Globus’s chairman). In 2016 the Company renewed the rental agreement at a monthly rate of Euro 10,360 (absolute amount) ($11.9) with alease period ending January 2, 2025. On August 5, 2021, the Company entered into a new rental agreement for 902 square metres of office space for itsoperations within a building leased by Cyberonica S.A. (an affiliate of Globus’s chairman) at a monthly rate of Euro 26,000 (absolute amount) with a leaseperiod ending August 4, 2024. The previous rental agreement was terminated. The Company does not presently own any real estate. During the years endedDecember 31, 2021, 2020 and 2019, the rent charged amounted to $242, $141 and $139, respectively. As at January 1, 2019, following the adoption of IFRS 16, the Company identified the rental agreement with Cyberonica S.A. to give rise to a right of useasset and a corresponding liability estimated to approximately $674 (please refer to note 2.22). Under IFRS 16 the new contract comprises of two parts, amodification of the old lease and a new lease for the extra space of 552 square meters, compared to the 350 square meters included in the previous rentalagreement. The modification of the previous rental agreement resulted to in $39 credit adjustment classified in the income statement component of theconsolidated statement of comprehensive income/(loss) under interest and finance costs. The right of use asset and a corresponding liability of the modifiedpart of the rental agreement was estimated to approximately $380. For the additional 552 square meters that the Company are now leasing, the Companyidentified under IFRS 16 that the rental agreement with Cyberonica S.A. gives rise to a right of use asset and a corresponding liability estimated toapproximately $632. The depreciation charge for right-of-use asset for the years ended December 31, 2021, 2020 and 2019, was approximately $206, $112and $112, respectively, and was recognised in the income statement component of the consolidated statement of comprehensive income/(loss) underdepreciation. The interest expense on lease liabilities for the years ended December 31, 2021, 2020 and 2019, was approximately $52, $44 and $51,respectively, and recognised under interest expense and finance costs, respectively in the income statement component of the consolidated statement ofcomprehensive income/(loss). The total cash outflows for leases for the years ended December 31, 2021, 2020 and 2019, were approximately $314, $229 and$47, respectively, and were recognised in the consolidated statement of cash flows under the Payment of lease liability – principal and Interest Paid. As at December 28, 2015, Athanasios Feidakis assumed the position of Chief Executive Officer (“CEO”) and Chief Financial Officer. On August 18, 2016,the Company entered into a consultancy agreement with an affiliated company (Goldenmare Limited) of its CEO, Mr. Athanasios Feidakis, for the purpose ofproviding consulting services to the Company in connection with the Company’s international shipping and capital raising activities, including but not limitedto assisting and advising the Company’s CEO at an annual fee of Euro 200,000 (absolute amount) (approx. $224). On December 3, 2020, the Company agreedto increase the consultancy fees of Goldenmare Limited, from Euro 200,000 to Euro 400,000 (absolute amount) per annum and additionally pay a one-timecash bonus of $1.5 million to the CEO pursuant to his consultancy agreement, which has been paid. Specifically, in February 2021, the Company paid to theCEO of Goldenmare Limited (Mr. Athanasios Feidakis) the amount of $1,000 and in September 2021 the remaining amount of $500. In addition, in December2021, the Company agreed to pay a one-time cash bonus of $1.5 million to Goldenmare Limited pursuant to the consultancy agreement, half of which is to bepaid immediately and the other half during 2022, if at the time of the payment Mr. Athanasios Feidakis remains CEO and the consultant has not terminated itsconsultancy agreement. At the time of the filing of these Consolidated Financial Statements, none of the bonus approved in 2022 has been paid. The relatedexpense for the years ended December 31, 2021, 2020 and 2019, amounted to approx. $1,216, $1,772 and $224, respectively. F-21  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 4.       Transactions with Related Parties (continued) On June 12, 2020, the Company entered into a stock purchase agreement and issued 50 newly designated Series B Preferred Shares, par value $0.001 pershare, to Goldenmare Limited, an affiliated company of its CEO, Athanasios Feidakis, in return for $150, which amount was settled by reducing, on a dollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. On July 27, 2020, the Company issued anadditional 250 of its Series B preferred shares to Goldenmare Limited in return for $150. The $150 was settled by reducing, on a dollar-for-dollar basis, theamount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. The issuance of the Series B preferred shares to GoldenmareLimited was approved by an independent committee of the Company’s Board of Directors, which received fairness opinions from an independent financialadvisor. On March 2, 2021, the Company entered into a stock purchase agreement and issued 10,000 Series B Preferred Shares, par value $0.001 per share, toGoldenmare Limited in return for $130, which amount was settled by reducing, on a dollar-for-dollar basis, the amount payable as executive compensation bythe Company to Goldenmare Limited pursuant to a consultancy agreement. The issuance of the Series B preferred shares to Goldenmare Limited wasapproved by an independent committee of the Company’s Board of Directors. As at December 31, 2021, and 2020, Goldenmare Limited owned 10,300 and 300, respectively, of the Company’s Series B preferred shares. Each Series Bpreferred share has 25,000 votes, provided that no holder of Series B preferred shares may exercise voting rights pursuant to Series B preferred shares thatwould result in the aggregate voting power of the beneficial owner of any such holder of Series B preferred shares, together with its affiliates, exceeding49.99% of the total number of votes eligible to be cast on any matter submitted to a vote of shareholders. Except as otherwise provided by applicable law,holders of the Company’s Series B preferred shares and the Company’s common shares vote together as a single class on all matters submitted to a vote ofshareholders, including the election of directors. Athanasios Feidakis has substantial control and influence over the Company’s management and affairs andover matters requiring shareholder approval, including the election of directors and significant corporate transactions, through his ability to direct the vote ofsuch Series B preferred shares. As at December 31, 2020 and 2021, Mr. George Feidakis beneficially owned 0.4% and 3.7%, respectively of Globus’ shares. Mr. George Feidakis (father ofMr. Athanasios Feidakis) is also the chairman of the Board of Directors of Globus. In November 2018, Globus entered into a credit facility for up to $15,000 with Firment Shipping Inc., an affiliate of the Company’s chairman, for the purposeof financing its general working capital needs (“Firment Shipping Credit Facility”). The Firment Shipping Credit Facility was unsecured and remainedavailable until its final maturity date at October 31, 2021, as amended. The Company had the right to draw-down any amount up to $15,000 or prepay anyamount in multiples of $100. Any prepaid amount could be re-borrowed in accordance with the terms of the facility. Interest on drawn and outstandingamounts was charged at 7% per annum and no commitment fee was charged on the amounts remaining available and undrawn. Interest was payable the lastday of a period of three months after the Draw-down Date, after this period in case of failure to pay any sum due, a default interest of 2% per annum above theregular interest was charged. Globus also had the right, in its sole option, to convert in whole or in part the outstanding unpaid principal amount and accruedbut unpaid interest under the Firment Shipping Credit Facility into common stock. The conversion price should equal the higher of (i) the average of the dailydollar volume-weighted average sale price for the common stock on the principal market on any trading day during the period beginning at 9.30 a.m. NewYork City time and ending at 4.00 p.m. (“VWAP”) over the pricing period multiplied by 80%, where the “Pricing Period” equals the ten consecutive tradingdays immediately preceding the date on which the conversion notice was executed or, (ii) Two Hundred Eighty US Dollars ($280.00). On April 23, 2019, the Company converted to share capital, as per the conversion clause included in the Firment Shipping Credit Facility the outstandingprincipal amount of $3,100 plus the accrued interest of $70 at a conversion price of $280 per share and issued 11,322 new common shares to Firment ShippingInc. This conversion resulted to a gain of approximately $117, which was classified under “gain on derivative financial instruments” in the income statementcomponent of the consolidated statement of comprehensive income/(loss). For the year ended December 31, 2020, the Company recognized a loss on this derivative financial instrument amounting to $189 and for the year endedDecember 31, 2019, a gain on this derivative financial instrument amounting to $135, which were classified under “gain/(loss) on derivative financialinstruments” in the income statements component of the consolidated statement of comprehensive income/(loss). On May 8, 2020 the Company entered into an Amended and Restated Agreement with Firment Shipping Inc. and converted the existing Revolving CreditFacility to a Term Credit Facility, increased the available undrawn amount to $14.2 million and extended the maturity date to October 31, 2021. As atDecember 31, 2020, there was an amount of $14,200 available to be drawn under the Firment Shipping Credit Facility. F-22  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 4.       Transactions with Related Parties (continued) On July 27, 2020, the Company repaid the total outstanding principal and interest of the Firment Shipping Credit Facility amounting to $863. Furthermore, theCompany recognized a gain on this derivative financial instrument amounting to $220, which was classified under “gain/(loss) on derivative financialinstruments” in the income statement component of the consolidated statement of comprehensive income/(loss). The facility with Firment Shipping Inc.expired on October 31, 2021. As at December 31, 2020, the amount drawn and outstanding with respect to the Firment Shipping Credit Facility was $nil. For the year ended December 31,2020 and 2019, Globus recognised interest expense of $26 and $96, respectively classified in the income statement component of the consolidated statementsof comprehensive income/(loss) under interest expense and finance costs. The Firment Shipping Credit Facility required that Athanasios Feidakis remain the Company’s Chief Executive Officer and that Firment Shipping Inc.maintained at least a 40% shareholding in Globus, other than due to actions taken by Firment Shipping Inc., such as sales of shares. The Company receivedwaivers from Firment Shipping Inc. in relation to the equity offerings completed during the year ended December 31, 2020 (Note 11). As at December 31, 2020, the Company was in compliance with the loan covenants of the Firment Shipping Credit Facility. On July 15, 2021 Globus entered into a consultancy agreement with Eolos Shipmanagement S.A. for the purpose of providing consultancy services to EolosShipmanagement S.A. For these services the Company receives a daily fee of $1,000 (absolute amount). The chairman of the board of Globus is the majorityshareholder of Eolos Shipmanagement. Compensation of Key Management Personnel of the Company: Compensation to Globus non-executive directors is analysed as follows: For the year ended December 31, 2021 2020 2019Directors’ remuneration145 143 147Share-based payments (Note 12)40 40 40Total185 183 187 As at December 31, 2021, and 2020, $105 and $80 of the compensation to non-executive directors was remaining due and unpaid, respectively. Amountspayable to non-executive directors are classified as trade accounts payable in the consolidated statements of financial position. Compensation to the Company’s executive director is analysed as follows: For the year ended December 31, 2021 2020 2019Short-term employee benefits1,216 1,772 224Total1,216 1,772 224 As at December 31, 2021, and 2020, $985 and $1,739 of the compensation to the executive director was remaining due and unpaid, respectively. F-23  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 5. Vessels, net The amounts in the consolidated statement of financial position are analysed as follows: Vessels cost Vesselsaccumulateddepreciation Dry dockingcosts Accumulateddepreciation ofdry-dockingcosts Net BookValueBalance at January 1, 2019179,427 (97,280) 6,978 (5,375) 83,750Additions/ Dry Docking Component54 —  622 —  676Impairment loss(29,902) —  —  —  (29,902)Depreciation expense—  (4,578) —  (1,704) (6,282)Balance at December 31, 2019149,579 (101,858) 7,600 (7,079) 48,242Additions/ Dry Docking Component18,028 —  4,283 —  22,311Impairment loss(4,615) —  —  —  (4,615)Depreciation expense—  (2,253) —  (1,335) (3,588)Balance at December 31, 2020162,992 (104,111) 11,883 (8,414) 62,350Additions/ Dry Docking Component70,746 —  4,044 —  74,790Depreciation expense—  (3,665) —  (2,751) (6,416)Balance at December 31, 2021233,738 (107,776) 15,927 (11,165) 130,724 On October 29, 2020, the Company took delivery of the m/v “Galaxy Globe”, a 2015-built Kamsarmax dry bulk carrier, through its subsidiary, SerenaMaritime Limited, for a purchase price of $18.4 million, free of charter party, financed with available cash. The m/v “Galaxy Globe” was built at the Hudong-Zhonghua Shipyard in China and has a carrying capacity of 81,167 dwt. Following this acquisition, the fleet of Globus comprises of six dry bulk carriers witha total carrying capacity of 381,738 dwt. Upon the acquisition of the vessel, a total amount of $500 was recorded as dry-docking component and is beingamortized until the vessel’s next scheduled survey to be performed in July 2023. On February 18, 2021, the Company entered into a memorandum of agreement with an unrelated third party, for the acquisition of the m/v “Nord Venus”, a2011-built Kamsarmax dry bulk carrier, for a purchase price of $16.2 million. No initial dry-docking component has been recognized as the vesselunderwent dry-docking subsequent to her delivery. The m/v “Nord Venus” was built at the Universal Shipbuilding Corporation in Japan and has a carryingcapacity of 80,655 dwt. On July 20, 2021, the Company took delivery of the m/v “Nord Venus” that was renamed to “Power Globe”. On March 19, 2021, the Company entered into a memorandum of agreement with an unrelated third party, for the acquisition of the m/v “Yangze 11”, a2018-built Kamsarmax dry bulk carrier, for a purchase price of $27 million, the vessel cost amounted to $26.4 million, and the initial dry-dockingcomponent amounted to $0.6 million. The m/v “Yangze 11” was built at Jiangsu New Yangzi Shipbuilding Co., Ltd and has a carrying capacity of 82,027dwt. On June 9, 2021, the Company took delivery of the m/v “Yangze 11” that was renamed to “Diamond Globe”. On September 22, 2021, the Company entered into a memorandum of agreement with an unrelated third party, for the acquisition of the m/v “Peak Liberty”, a2015-built Kamsarmax dry bulk carrier, for a purchase price of $28.4 million, the vessel cost amounted to $27.9 million, and the initial dry-dockingcomponent amounted to $0.5 million. The m/v “Peak Liberty” was built at Tsuneishi Zosen in Japan and has a carrying capacity of 81,837 dwt. On November29, 2021, the Company took delivery of the m/v “Peak Liberty” that was renamed to “Orion Globe”. For the purpose of the consolidated statement of comprehensive income/(loss), depreciation, as stated in the income statement component, comprises thefollowing: For the year ended December 31, 2021 2020 2019Vessels depreciation3,665 2,253 4,578Depreciation on office furniture and equipment39 33 31Depreciation of right of use asset206 112 112Total3,910 2,398 4,721 The Company’s vessels, except the m/v Power, Diamond and Orion Globe, have been pledged as collateral to secure the bank loans discussed in note 11. F-24  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 5. Vessels, net (continued) Impairment of non-financial assets: The Company performed an impairment exercise as at March 31, 2020 on whether there were indicators that a vessel(s)may be impaired and concluded that impairment indicators existed for all vessels. As at December 31, 2020, the Company performed an assessment onwhether there were indicators that a vessel(s) may be impaired and impairment indicators were identified for two of the Company’s vessels. As impairmentindicators were identified during 2020, discounted future cash flows for each vessel with impairment indicators were determined and compared to the vessel’scarrying value. For the discount factor, the Company applied the Weighted Average Cost of Capital rate that was calculated to be 4.06% as at December 31,2020. The projected net discounted future cash flows for the first year were determined by considering an estimated daily time charter equivalent based on themost recent blended (for modern and older vessels) FFA (i.e. Forward Freight Agreements) time charter rate for the fiscal year 2021 for each type of vessel.For the remaining useful life of the vessels, the Company used the historical ten-year blended average one-year time charter rates substituting for the year2016 that was considered as extreme values, with the year 2010. Expected outflows for scheduled vessels maintenance were taken into consideration as wellas vessel operating expenses assuming an average annual increase rate of 1% based on the historical trend derived from actual results for the Company’svessels since their delivery under the Company’s technical management. The average time charter rates used were in line with the overall chartering strategy,especially in periods/years of depressed charter rates; reflecting the full operating history of vessels of the same type and particulars with the Company’soperating fleet (Supramax and Panamax vessels with a deadweight (“dwt”) of over 50,000 and 70,000, respectively) and they covered at least one full businesscycle. Effective fleet utilization was assumed at 87% and 90% (including ballast days) for the Supramaxes and the Panamaxes, respectively taking intoaccount the period(s) each vessel is expected to undergo her scheduled maintenance (dry-docking and special surveys), as well as an estimate of the period(s)needed for finding suitable employment and off-hire for reasons other than scheduled maintenance, assumptions in line with the Company’s expectations forfuture fleet utilization under the current fleet deployment strategy. As at March 31, 2020, the Company concluded that the recoverable amounts of the vessels were lower than their carrying amounts and recognized animpairment loss of $4,615. As at December 31, 2020, the Company concluded that no additional impairment loss should be recognized. As at December 31,2019, the Company concluded that the recoverable amounts of the vessels were lower than their carrying amounts and recognized an impairment loss of$29,902. As at December 31, 2021, the Company performed an assessment on whether there were indicators that a vessel(s) may be impaired and no impairmentindicators were identified for the Company’s vessels. The impairment loss for the years ended December 31, 2020 and 2019, analysed by vessel is as follows: VesselFor the year ended December31, 2020 2019m/v River Globe(332) (6,920)m/v Sky Globe(1,231) (8,074)m/v Star Globe(460) (7,197)m/v Sun Globe(2,013) (4,797)m/v Moon Globe(579) (2,914)Impairment loss(4,615) (29,902) Reversal of previously recognized impairment: The Company also assesses whether there is any indication that a previously recognized impairment loss fora vessel no longer exists or may have decreased. If an indication of possible reversal is identified, the Company estimates the recoverable amount of that asset.Such reversal indicators are: ØObservable indications that the vessel’s value has increased significantly and will be sustained.ØSignificant favourable changes in the technological, economic or legal environment incurred or are expected to be incurred and positively affectvessel’s value or increase its revenue generating ability.ØMarket interest rates of return on investments have decreased during the period, which will result in decrease of the discount rate. The Company has assessed current market trends as well as the historical market data, historical market volatility and various qualitative factors andconcluded that no indicators for reversal of impairment were present as of December 31, 2021 and no reversal of previously recognized impairment losses isrequired for the financial year ended December 31, 2021. F-25  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 6.       Inventories Inventories in the consolidated statement of financial position are analysed as follows: December 31, 2021 2020Lubricants765 319Gas cylinders87 75Bunkers— 854Total852 1,248 7.      Trade accounts payableTrade accounts payable in the consolidated statement of financial position as at December 31, 2021 and 2020, amounted to $1,100 and $4,758, respectively.Trade accounts payable are non-interest bearing. 8.      Accrued liabilities and other payables Accrued liabilities and other payables in the consolidated statement of financial position are analysed as follows: December 31, 2021 2020Accrued interest179 —Accrued Interest Swap Loss30 —Accrued audit fees82 63Other accruals3,262 1,953Insurance deductibles64 96Other payables59 47Total3,676 2,159 Interest on long-term debt is normally settled quarterly throughout the year and other payables are non-interest bearing. 9. Share Capital and Share Premium The authorised share capital of Globus consisted of the following: December 31, 2021 2020 2019Authorised share capital: 500,000,000 Common shares of par value $0.004 each2,000 2,000 2,000100,000,000 Class B Common shares of par value $0.001 each100 100 100100,000,000 Preferred shares of par value $0.001 each100 100 100Total authorised share capital2,200 2,200 2,200 Holders of the Company’s common shares and Class B shares have equivalent economic rights, but holders of Company’s common shares are entitled to onevote per share and holders of the Company’s Class B shares are entitled to twenty votes per share. Each holder of Class B shares may convert, at its option,any or all of the Class B shares held by such holder into an equal number of common shares. F-26  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 9.       Share Capital and Share Premium (continued) Common Shares issued and fully paidNumber ofshares USDAs at January 1, 201932,057 —Issued during the year for share-based compensation (note 12)180 —Issuance of common stock due to conversion of loan19,998 —As at December 31, 201952,235 —Issued during the year for share-based compensation (note 12)2,812 —Issuance of common stock due to conversion of loan11,678 —Issuance of new common stocks2,942,848 12Issuance of common stock due to exercise of pre-funded warrants25,000 —Issuance of common stock due to exercise of warrants5,550 —As at December 31, 20203,040,123 12Issued during the year for share-based compensation (note 12)12,178 —Issuance of new common stocks14,905,000 60Issuance of common stock due to exercise of pre-funded warrants2,625,000 10As at December 31, 202120,582,301 82 During the years ended December 31, 2021, 2020 and 2019, Globus issued 12,178, 2,812 and 180 common shares, respectively (par value $0.004 per share) asshare-based payments. As at December 31, 2021, 2020 and 2019, no Class B shares were outstanding. On June 12, 2020, the Company entered into a stock purchase agreement and issued 50 of newly designated Series B Preferred Shares, par value $0.001 pershare, to Goldenmare Limited, a company controlled by the Chief Executive Officer, Athanasios Feidakis, in return for $150, which amount was settled byreducing, on a dollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. On July 27, 2020, theCompany issued an additional 250 of its Series B preferred shares to Goldenmare Limited in return for $150. The $150 was settled by reducing, on a dollar-for-dollar basis, the amount payable by the Company to Goldenmare Limited pursuant to a consultancy agreement. The issuance of the Series B preferredshares to Goldenmare Limited was approved by an independent committee of the Company’s Board of Directors, which received fairness opinions from anindependent financial advisor. On March 2, 2021, the Company entered into a stock purchase agreement and issued 10,000 Series B Preferred Shares, par value $0.001 per share, toGoldenmare Limited, a company controlled by the Company’s Chief Executive Officer, Athanasios Feidakis, in return for $130, which amount was settled byreducing, on a dollar-for-dollar basis, the amount payable as executive compensation by the Company to Goldenmare Limited pursuant to a consultancyagreement. The issuance of the Series B preferred shares to Goldenmare Limited was approved by an independent committee of the Company’s Board ofDirectors, which received fairness opinions from an independent financial advisor. On April 23, 2019, the outstanding principal amount of $3,100 plus the accrued interest of $70 outstanding under the Firment Shipping Inc. Credit Facilitywas converted to share capital at a conversion price of $280 per share and, accordingly, the Company issued 11,322 new common shares, par value $0.004 pershare, to Firment Shipping Inc. During the year ended December 31, 2019, an amount of approximately $1,789, principal and accrued interest, under the senior convertible note (note 11) wasconverted to share capital and the Company issued 8,676 new common shares, par value $0.004 per share, to the holder of the senior convertible note. During the year ended December 31, 2020 and further to the conversion clause included into the Convertible Note (Note 11) an amount of approximately$1,168, principal and accrued interest, was converted to share capital at a conversion price of $100 per share and a total number of 11,678 new shares, parvalue $0.004 per share, were issued in name of the holder of the Convertible Note. F-27  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 9.       Share Capital and Share Premium (continued) On June 22, 2020, the Company issued 342,857 of its common shares, par value $0.004 per share, in an underwritten public offering at a price of $35 perunit. Each unit consisted of one common share and one Class A warrant to purchase one common share and immediately separated upon issuance. Inaddition, the Company granted to the underwriter a 45-day option to purchase up to an additional 51,429 common shares, par value $0.004 per share, (orpre-funded warrants in lieu thereof) and Class A warrants to purchase up to 51,429 common shares, at the public offering price less discounts andcommissions. The underwriter exercised its option and purchased 51,393 common shares, par value $0.004 per share and Class A warrants to purchase51,393 common shares. Each Class A warrant is immediately exercisable for one common share at an exercise price of $35 per share and expires five yearsfrom issuance. Total proceeds amounted to $12,695 before issuance expenses. As at December 31, 2021 and 2020, the Company had issued 5,550 common shares, par value $0.004 per share, pursuant to exercise of outstanding Class AWarrants, resulting to cash proceeds of $194, and had 388,700 Class A Warrants outstanding to purchase an aggregate of 388,700 common shares, par value$0.004 per share. On June 30, 2020, the Company issued 458,500 of its common shares, par value $0.004 per share, in a registered direct offering and warrants (“PPWarrants”) to purchase 458,500 common shares in a concurrent private placement for a purchase price of $27 per common share and PP Warrant. Thewarrants were exercisable upon issuance and had an exercise price of $30 per share, subsequently reduced to $18 per share. Total proceeds amounted to$11,513 before issuance expenses. On July 21, 2020, the Company issued 833,333 of its common shares, par value $0.004 per share, in a registered direct offering and PP Warrants to purchase833,333 common shares in a concurrent private placement for a purchase price of $18 per common share and PP Warrant. The exercise price of each PPWarrant was $18 per share. Concurrently with this offering the exercise price of the PP Warrants issued on June 30, 2020, were reduced to $18 per share.Total proceeds amounted to $13,950 before issuance expenses. The PP Warrants are exercisable for a period of five and one-half years commencing on the date of issuance. The warrants will be exercisable, at the optionof each holder, in whole or in part by delivering to the Company a duly executed exercise notice with payment in full in immediately available funds for thenumber of common shares purchased upon such exercise. If a registration statement registering the resale of the common shares underlying the privateplacement warrants under the Securities Act is not effective or available at any time after the six month anniversary of the date of issuance of the privateplacement warrants, the holder may, in its sole discretion, elect to exercise the private placement warrant through a cashless exercise, in which case theholder would receive upon such exercise the net number of common shares determined according to the formula set forth in the warrant. If the Companydoes not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions. As at December 31, 2021 and 2020, no PP Warrants had been exercised and the Company had 1,291,833 PP Warrants outstanding to purchase an aggregateof 1,291,833 common shares. On December 10, 2020, the Company entered into a securities purchase agreement with certain unaffiliated institutional investors to issue in a registereddirect offering to issue (a) 1,256,765 of its common shares, par value $0.004 per share, (b) pre-funded warrants to purchase 155,000 common shares, parvalue $0.004 per share, (“December 2020 Pre-Funded Warrants”), and (c) warrants (“December 2020 Warrants”) to purchase 1,270,587 common shares withan exercise price of $8.50 per share. On December 9, 2020, the Company issued 1,256,765 of its common shares, par value $0.004 per share, pursuant to thisagreement. Total proceeds amounted to $11,159 before issuance expenses. The December 2020 Pre-Funded Warrants are exercisable at any time after their original issuance until exercised in full. The Pre-Funded Warrants will beexercisable, at the option of each holder, in whole or in part by delivering to the Company a duly executed exercise notice with payment in full inimmediately available funds for the number of common shares purchased upon such exercise. The exercise price for the December 2020 Pre-FundedWarrants is $0.01 per share. The December 2020 Pre-Funded Warrants are exercisable at any time after their original issuance until exercised in full. As at December 31, 2020, 25,000 December 2020 Pre-Funded Warrants had been exercised, resulting to net proceeds of $0.25 and the Company had130,000 December 2020 Pre-Funded Warrants outstanding to purchase an aggregate of 130,000 common shares. On January 13, 2021, the remaining130,000 December 2020 Pre-Funded Warrants were exercised, resulting to net proceeds of $1.3 and the issuance of 130,000 common shares. F-28  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 9.       Share Capital and Share Premium (continued) The December 2020 Warrants are exercisable for a period of five and one-half years commencing on the date of issuance. The warrants will be exercisable,at the option of each holder, in whole or in part by delivering to the Company a duly executed exercise notice with payment in full in immediately availablefunds for the number of common shares purchased upon such exercise. If a registration statement registering the issuance of the common shares underlyingthe warrants under the Securities Act is not effective, the holder may, in its sole discretion, elect to exercise the warrant through a cashless exercise, in whichcase the holder would receive upon such exercise the net number of common shares determined according to the formula set forth in the warrant. If theCompany does not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions. As at December 31, 2021 and 2020, no December 2020 Warrants had been exercised and the Company had December 2020 Warrants outstanding topurchase an aggregate of 1,270,587 common shares. Total transaction costs for the issuance of common shares in relation to the offerings in 2020 amounted to $1,079. On January 29, 2021, the Company entered into a securities purchase agreement with certain unaffiliated institutional investors to issue (a) 2,155,000 commonshares, par value $0.004 per share, (b) pre-funded warrants to purchase 445,000 common shares, par value $0.004 per share and (c) warrants (the “January2021 Warrants”) to purchase 1,950,000 common shares, par value $0.004 per share, at an exercise price of $6.25 per share. Total proceeds, net of commissionretained by the placement agent, amounted to $15,108, before issuance expenses of $120. All 445,000 pre-funded warrants were exercised subsequently withtotal proceeds of $5. The January 2021 Warrants are exercisable for a period of five and one-half years commencing on the date of issuance. The warrants will be exercisable, at theoption of each holder, in whole or in part by delivering to the Company a duly executed exercise notice with payment in full in immediately available fundsfor the number of common shares purchased upon such exercise. If a registration statement registering the issuance of the common shares underlying thewarrants under the Securities Act is not effective, the holder may, in its sole discretion, elect to exercise the warrant through a cashless exercise, in which casethe holder would receive upon such exercise the net number of common shares determined according to the formula set forth in the warrant. If the Companydoes not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions. As at December 31, 2021, no January 2021 Warrants had been exercised and the Company had January 2021 Warrants outstanding to purchase an aggregateof 1,950,000 common shares. On February 17, 2021, the Company entered into a securities purchase agreement with certain unaffiliated institutional investors to issue (a) 3,850,000common shares par value $0.004 per share, (b) pre-funded warrants to purchase 950,000 common shares, par value $0.004 par value, and (c) warrants (the“February 2021 Warrants”) to purchase 4,800,000 common shares, par value $0.004 per share, at an exercise price of $6.25 per share. Total proceeds, net ofcommission retained by the placement agent, amounted to $27,891, before issuance expenses of $152. All 950,000 pre-funded warrants were exercisedsubsequently with total proceeds of $10. The February 2021 Warrants are exercisable for a period of five and one-half years commencing on the date of issuance. The warrants will be exercisable, atthe option of each holder, in whole or in part by delivering to the Company a duly executed exercise notice with payment in full in immediately availablefunds for the number of common shares purchased upon such exercise. If a registration statement registering the issuance of the common shares underlyingthe warrants under the Securities Act is not effective, the holder may, in its sole discretion, elect to exercise the warrant through a cashless exercise, in whichcase the holder would receive upon such exercise the net number of common shares determined according to the formula set forth in the warrant. If theCompany does not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions. As at December 31, 2021, no February 2021 Warrants had been exercised and the Company had February 2021 Warrants outstanding to purchase anaggregate of 4,800,000 common shares. On June 29, 2021, the Company entered into a securities purchase agreement with certain unaffiliated institutional investors to issue (a) 8,900,000 commonshares par value $0.004 per share, (b) pre-funded warrants to purchase 1,100,000 common shares, par value $0.004 par value, and (c) warrants (the “June2021 Warrants”) to purchase 10,000,000 common shares, par value $0.004 per share, at an exercise price of $5.00 per share. Total proceeds, net ofcommission retained by the placement agent, amounted to $46,581, before issuance expenses of approximately $129. As at September 30, 2021, 1,100,000pre-funded warrants were exercised and the total proceeds amounted to $11. F-29  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 9.       Share Capital and Share Premium (continued) The June 2021 Warrants are exercisable for a period of five and one-half years commencing on the date of issuance. The warrants will be exercisable, at theoption of each holder, in whole or in part by delivering to the Company a duly executed exercise notice with payment in full in immediately available fundsfor the number of common shares purchased upon such exercise. If a registration statement registering the issuance of the common shares underlying thewarrants under the Securities Act is not effective, the holder may, in its sole discretion, elect to exercise the warrant through a cashless exercise, in whichcase the holder would receive upon such exercise the net number of common shares determined according to the formula set forth in the warrant. If theCompany does not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions. As at December 31, 2021, no June 2021 Warrants had been exercised and the Company had June 2021 Warrants outstanding to purchase an aggregate of10,000,000 common shares. Total transaction costs for the issuance of common shares in relation to the offerings in 2021 amounted to $401. The Company’s warrants were classified as equity in accordance with the provisions of IAS 32.meet the classification criteria as per IAS 32 and, accordingly, are classified inequity. Share premium includes the contribution of Globus’ shareholders to the acquisition of the Company’s vessels. Additionally, share premium includes theeffects of the Globus initial and follow-on public offerings, the effects of the settlement of the related party loans (note 4) with the issuance of the Company’scommon shares and the effects of the share-based payments described in note 12. Accordingly, at December 31, 2021, 2020 and 2019, Globus share premiumamounted to $284,406, $195,102 and $145,527, respectively. 10.      Earnings/(Loss) per Share Basic earnings / (loss) per share (“EPS” / “LPS”) is calculated by dividing the net income /(loss) for the year attributable to Globus shareholders by theweighted average number of shares issued, paid and outstanding. Diluted earnings / (loss) per share is calculated by dividing the net income / (loss) attributable to common equity holders of the parent by the weighted averageshares outstanding during the year plus the weighted average number of common shares that would be issued on the conversion of all the dilutive potentialcommon shares into common shares. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumedpurchased) are included in the denominator of the diluted earnings/(losses) per share computation unless such inclusion would be anti-dilutive. As for the year ended December 31, 2021, the securities that could potentially dilute basic EPS in the future are any incremental shares of unexercisedwarrants (Note 9). As the warrants were out-of-the money during the period ended December 31, 2021, these were not included in the computation of dilutedEPS, because to do so would have anti-dilutive effect.As the Company reported losses for the years ended December 31, 2020 and 2019, the effect of any incremental shares would be antidilutive and thusexcluded from the computation of the LPS. The following reflects the net income/(loss) per common share: For the year ended December 31, 2021 2020 2019Income/(Loss) attributable to common equity holders14,950 (17,372) (36,351)Weighted average number of shares – basic and diluted14,809,536 959,157 41,622Net income/(loss) per common share – basic and diluted1.01 (18.11) (873.36) F-30  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 11.       Long-Term Debt, net Long-term debt in the consolidated statement of financial position is analysed as follows: Borrower Principal DeferredFinance costs Amortised cost(a) Devocean Maritime LTD., Domina Maritime LTD., Dulac Maritime S.A., Artful Shipholding S.A.,Longevity Maritime Limited and Serena Maritime Limited 31,750 (447) 31,303 Total at December 31, 2021 31,750 (447) 31,303Less: Current Portion (5,000) 135 (4,865)Long-Term Portion 26,750 (312) 26,438 Total at December 31, 2020 37,000 (448) 36,552Less: Current Portion (5,970) 305 (5,665)Long-Term Portion 31,030 (143) 30,887 (a)In June 2019, Globus through its wholly owned subsidiaries, Devocean Maritime Ltd.(the “Borrower A”), Domina Maritime Ltd. (the “Borrower B”), DulacMaritime S.A. (the “Borrower C”), Artful Shipholding S.A. (the “Borrower D”) and Longevity Maritime Limited (the “Borrower E”), vessel owning companiesof m/v River Globe, m/v Sky Globe, m/v Star Globe, m/v Moon Globe and m/v Sun Globe, respectively, entered a new term loan facility for up to $37,000 withEnTrust Global’s Blue Ocean Fund for the purpose of refinancing the existing indebtedness secured on the ships and for general corporate purposes. The loanfacility was in the names of Devocean Maritime Ltd., Domina Maritime Ltd, Dulac Maritime S.A., Artful Shipholding S.A. and Longevity Maritime Limited asthe borrowers and is guaranteed by Globus. The loan facility bears interest at LIBOR plus a margin of 8.50% (or 10.5% default interest) for interest periods ofthree months. This loan facility was referred to as EnTrust loan facility.As at December 31, 2020, the Company was in compliance with the covenants of the EnTrust Loan Agreement.In March 2021, the Company prepaid $6.0 million of the Entrust loan facility, which represented all amounts that would otherwise come due during calendar year2021 and on May 10, 2021, the Company fully prepaid the balance of the EnTrust Loan facility.(b)In November 2018, Globus Maritime Limited entered into a credit facility for up to $15,000 with Firment Shipping Inc., an affiliate of the Company’s chairman,for the purpose of financing its general working capital needs. The Firment Shipping Credit Facility was unsecured and remained available until its final maturitydate on October 31, 2021, as amended. The Company had the right to draw-down any amount of up to $15,000 or prepay any amount in multiples of $100. Anyprepaid amount could be re-borrowed in accordance with the terms of the facility. Interest on drawn and outstanding amounts was charged at 3.5% per annumuntil December 31, 2020, and thereafter at 7% per annum and no commitment fee was charged on the amounts remaining available and undrawn. Interest waspayable the last day of a period of three months after the draw-down date, after this period in case of failure to pay any sum due, a default interest of 2% perannum above the regular interest was charged. Globus also had the right, in its sole option, to convert in whole or in part the outstanding unpaid principal amount and accrued but unpaid interest underthe Firment Shipping Credit Facility into common stock. The conversion price would equal the higher of (i) the average of the daily dollar volume-weighted average sale price for the common stock on the principal market on any trading day during the period beginning at 9.30 a.m. New York City timeand ending at 4.00 p.m. (“VWAP”) over the pricing period multiplied by 80%, where the “Pricing Period” equaled the ten consecutive trading daysimmediately preceding the date on which the conversion notice was executed or (ii) Two hundred eighty US Dollars ($280). As per the conversion clause included in the Firment Shipping Credit Facility, the Company had recognized this agreement as a hybrid financial instrumentwhich included an embedded derivative. This embedded derivative component was separated from the non-derivative host. The derivative component wasshown separately from the non-derivative host in the consolidated statement of financial position at fair value. The changes in the fair value of the derivativefinancial instrument were recognized in the income statement component of the consolidated statement of comprehensive income/(loss). For the year endedDecember 31, 2020, the amount drawn and outstanding with respect to Firment Shipping Credit Facility was nil. On April 23, 2019, the Company converted to share capital, as per the conversion clause included in the Firment Shipping Credit Facility the outstandingprincipal amount of $3,100 plus the accrued interest of $70 at a conversion price of $280 per share and issued 11,322 new common shares, par value $0.004 pershare, on behalf of Firment Shipping Inc. This conversion resulted to a gain of approximately $117, which was classified under “gain/(loss) on derivativefinancial instruments” in the income statement component of the consolidated statement of comprehensive income/(loss). F-31  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 11.       Long-Term Debt, net (continued) On July 27, 2020, the Company repaid the total outstanding principal and interest of the Firment Shipping Credit Facility amounting to $863. The Companyrecognized a gain on this derivative financial instrument amounting to $220, which was classified under “gain/(loss) on derivative financial instruments” in theincome statement component of the consolidated statement of comprehensive income/(loss). As at December 31, 2020, there was an amount of $14,200, available to be drawn under the Firment Shipping Credit Facility, as amended and restated on May8, 2020. The Amended and Restated Agreement converted the existing Revolving Credit Facility to a Term Credit Facility and extended the maturity date toOctober 31, 2021. The facility with Firment Shipping Inc. expired on October 31, 2021. The Firment Shipping Credit Facility required that Athanasios Feidakis remained Chief Executive Officer and that Firment Shipping maintained at least a 40%shareholding in Globus, other than due to actions taken by Firment Shipping, such as sales of shares. In connection with the public offering on June 22, 2020and the registered direct offering on June 30, 2020, July 21, 2020, December 7, 2020, January 27, 2021, February 12, 2021 and June 25, 2021 (collectively, the“Filings”), the Company obtained waivers from Firment Shipping Inc. The waivers consented to the Company making the Filings and waived the requirementto maintain at least a 40% shareholding in Globus as a result of the issuance of common shares and warrants. As at December 31, 2020, the Company was in compliance with the loan covenants of the Firment Shipping Credit Facility. (c)On March 13, 2019, the Company signed a securities purchase agreement with a private investor and on the same date issued, in a transaction exempt fromregistration under the Securities Act of 1933, as amended (the “Securities Act”), for gross proceeds of $5 million, a senior convertible note (the “ConvertibleNote”) that is convertible into shares of the Company’s common stock, par value $0.004 per share. The Convertible Note provided for interest to accrue at 10%annually, which interest would originally be paid on the first anniversary of the Convertible Note’s issuance unless the Convertible Note was converted orredeemed pursuant to its terms beforehand. The interest could be paid in common shares of the Company, if certain conditions described within the ConvertibleNote were met. With respect to the Convertible Note, the Company also signed a registration rights agreement with the private investor pursuant to which it agreed to registerfor resale the shares that could be issued pursuant to the Convertible Note. The registration rights agreement contained liquidated damages if the Company wasunable to register for resale the shares into which the Convertible Note could be converted and maintain such registration. On March 13, 2020, Company and the holder of the Convertible Note entered into a waiver regarding the Convertible Note (the “Waiver”). The Waiver waivedthe Company’s obligation to repay the Convertible Note on the existing maturity date of March 13, 2020 and did not require the Company to repay theConvertible Note until March 13, 2021. As per the conversion clause included in the Convertible Note, the Company had recognized this agreement as a hybrid financial instrument which included anembedded derivative. This embedded derivative component was separated from the non-derivative host. The derivative component was shown separately fromthe non-derivative host in the consolidated statement of financial position at fair value. The changes in the fair value of the derivative financial instrument wererecognized in the income statement component of the consolidated statement of comprehensive income/(loss). The initial amount drawn with respect to theConvertible Note was $5,000. The non-derivative host and the derivative component that was initially recognized amounted to $1,783 and $3,217, respectively. For the year ended December 31, 2019, the Company recognized a gain on this derivative financial instrument amounting to $1,815, which was classified under“gain/(loss) on derivative financial instruments” in the income statement component of the consolidated statement of comprehensive income/(loss). Further to the conversion clause included into the Convertible Note for the year ended December 31, 2020, a total amount of approximately $1,168, principaland accrued interest, was converted to share capital at the conversion price of $100 per share and a total number of 11,678 new shares, par value $0.004 pershare, were issued in name of the holder of the Convertible Note. The Company recognized a loss on this derivative financial instrument amounting to $1,343,which was classified under “gain/(loss) on derivative financial instruments” in the income statement component of the consolidated statement of comprehensiveincome/(loss). F-32  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 11.       Long-Term Debt, net (continued) On May 8, 2020, the holder of the Convertible Note waived certain rights and temporarily reduced, until August 31, 2020, the amount the noteholder wouldreceive upon a redemption of the Convertible Note at the Company’s option, such that the Convertible Note could have been redeemed at the Company’s optionby paying the greater of (i) the aggregate amounts then outstanding pursuant to the Convertible Note (rather than 120% of such amounts) and (ii) the product of(x) the number of shares issuable upon a conversion of the Convertible Note (with respect to the amount being redeemed at the time) multiplied by (y) thegreatest closing sale price of the Company’s common shares on any trading day between the date immediately preceding the first such redemption at theCompany’s option and the trading day immediately prior to the final Company payment under the Convertible Note. The foregoing was subject to theCompany’s redemption of all or part of the Convertible Note in cash with an amount equal to the lesser of (a) the aggregate amounts then outstanding pursuantto the Convertible Note and (b) 25% of the net proceeds of any public offering of its securities that close before August 31, 2020. On June 25, 2020, the Company repaid the total outstanding principal and interest of the Convertible Note amounting to $2,528. The Company recognized aloss on this derivative financial instrument amounting to $1,343, which was classified under “gain/(loss) on derivative financial instruments” in the incomestatement component of the consolidated statement of comprehensive income/(loss). (d)In May 2021, Globus Maritime Limited entered into a term loan facility with CIT Bank, N.A., relating to the refinancing of the Company’s ships, the River Globe,Sky Globe, Star Globe, Moon Globe, Sun Globe, and Galaxy Globe. The borrowers under the CIT Loan Facility are Devocean Maritime Ltd., Domina MaritimeLtd, Dulac Maritime S.A., Artful Shipholding S.A., Longevity Maritime Limited and Serena Maritime Limited and the CIT Loan Facility is guaranteed by GlobusMaritime Limited. The loan agreement was for the lesser of $34,250 and 52.5% of the aggregate market value of our ships. The Company drew an aggregate of $34,250 at closingand used a significant portion of the proceeds to fully repay the amounts outstanding under the loan agreement with EnTrust. The Company also entered into aswap agreement with respect to LIBOR. The Company paid CIT Bank an upfront fee in the amount of 1.25% of the total commitment of the loan. The CIT Loan Facility consists of six tranches, which shall be repaid in 20 consecutive quarterly instalments with each instalment in an aggregate amount of$1.25 million as well as a balloon payment in an aggregate amount of $9.25 million due together with the 20th and final instalment due in August 2026. The CIT Loan Facility bears interest at LIBOR plus 3.75% (or 5.75% default interest). Following any permanent or indefinite cessation of any tenor for LIBORused for purposes of the CIT Loan (or earlier based on market conditions as notified by CIT Bank), LIBOR shall be replaced with SOFR as the benchmark rate,subject to certain exceptions. The CIT Loan Facility may be prepaid. If the prepayment occurs on or before May 10, 2022, the prepayment fee is 2% of the amount prepaid, subject to certainexceptions. If the prepayment occurs on or before May 10, 2023 but after May 10, 2022, the prepayment fee is 1% of the amount prepaid, subject to certainexceptions. The Company cannot reborrow any amount of the CIT Loan that is prepaid or repaid. The CIT Loan Facility is secured by: •First preferred mortgage over m/v River Globe, m/v Sky Globe, m/v Star Globe, m/v Moon Globe, m/v Sun Globe and m/v Galaxy Globe.•Guarantee from Globus Maritime Limited and joint liability of the six vessel owning companies (each of which is a borrower under the CIT LoanFacility).•Shares pledges respecting each borrower.•Pledges of bank accounts, a pledge of each borrower’s rights under any interest rate hedging agreement in respect of the CIT Loan Facility, a generalassignment over each ship's earnings, insurances and any requisition compensation in relation to that ship, and an assignment of the rights of Globuswith respect to any indebtedness owed to it by the borrowers. We are not permitted, without the written consent of CIT, to enter into a charter the duration of which exceeds or is capable of exceeding, by virtue of anyoptional extensions, 12 months. The CIT Loan Facility contains various covenants requiring the vessels owning companies and/or Globus Maritime Limited to, among other things, ensure that: F-33  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 11.       Long-Term Debt, net (continued) -The borrowers, must maintain a minimum liquidity at all times of not less than $500 for each mortgaged ship. -For the first 18 months of the utilization of the loan, a minimum loan to value ratio of 75% and thereafter 70%. -Each borrower must maintain in its earnings account $150 in respect of each ship then subject to a mortgage. -Globus Maritime Limited must maintain cash in an amount of not less than $150 for each ship that it owns that is not subject to a mortgage as part of theCIT Loan. -Globus Maritime Limited must have a maximum leverage ratio of 0.75:1.00. -If Globus Maritime Limited pays a dividend, subject to certain exceptions, then the debt service coverage ratio (i.e., aggregate EBITDA of Globus MaritimeLimited for any period to the debt service for such period) after such dividend and for the remain of the CIT Loan Facility shall be at least 1.15:1.00. Each borrower must create a reserve fund in the reserve account to meet the anticipated dry docking and special survey fees and expenses for the relevant shipowned by it and (for certain ships) the installation of ballast water treatment system on the ship owned by it by maintaining in the reserve account a minimumcredit balance that may not be withdrawn (other than for the purpose of covering the documented and incurred costs and expenses for the next special survey ofthat ship). Amounts must be paid into this reserve account quarterly, such that $1.2 million is set aside by each borrower for its ship’s special survey, except forSerena Maritime Limited, who is required to set aside quarterly payments that aggregate to $900. No borrower shall incur or permit to be outstanding any financial indebtedness except “Permitted Financial Indebtedness.” “Permitted Financial Indebtedness” means: (a) any financial indebtedness incurred under the finance documents; (b) the indebtedness under the EnTrust loan, which has been repaid; (c) any financial indebtedness (including permitted inter-company loans) that is subordinated to all financial indebtedness incurred under the finance documentspursuant to a subordination agreement or, in the case of any permitted inter-company loans pursuant to the CIT Loan Facility or otherwise and which is, in thecase of any such financial indebtedness of a borrower (other than financial indebtedness arising out of any permitted inter-company loan), the subject ofsubordinated debt security; and (d) in relation to a ship, any trade debt on arm's length commercial terms reasonably incurred in the ordinary course of owning, operating, trading, chartering,maintaining and repairing that ship, which, (i) until 90 days from May 10, 2021 does not exceed $500 (or the equivalent in any other currency) in aggregate inrespect of that ship and remains unpaid; and (ii) on and from the date falling after 90 days from May 10, 2021 is (x) up to $50 (or the equivalent in any othercurrency) in aggregate in respect of that ship and does not remain unpaid for more than 90 days of (A) its due date or (B) in the case where the borrower owningthat ship has not received the relevant invoice, the date on which that borrower becomes aware that the invoice is due and remains outstanding; and (y) is morethan $50 and does not exceed $500 (or the equivalent in any other currency) in aggregate in respect of that ship and does not remain unpaid for more than 30days of (A) its due date or (B) in the case where the borrower owning that ship has not received the relevant invoice, the date on which that borrower becomesaware that the invoice is due and remains outstanding. Globus Maritime Limited is prohibited from making dividends (other than up to $500 annually on or in respect of its preferred share) in cash or redeem orrepurchase its shares unless there is no event of default under the CIT Loan Facility, the net loan to value ratio is less than 60% before the making of thedividend and Globus Maritime Limited is in compliance with the debt service coverage ratio, and Globus Maritime Limited must prepay the CIT Loan Facilityin an equal amount of the dividend. The CIT Loan Facility also prohibits certain changes of control, including, among other things, the delisting of Globus from the Nasdaq or anotherinternationally recognized stock exchange, or the acquisition by any person or group of persons (acting in concert) of a majority of the shareholder voting rightsor the ability to appoint a majority of board members or to give directions with respect to the operating and financial policies of Globus Maritime Limited withwhich the directors are obliged to comply, other than those persons disclosed to CIT Bank on or around the date of the CIT Loan Facility and their affiliates andimmediate family members. The Company was in compliance with the covenants of the CIT Loan Facility as at December 31, 2021. F-34  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 11.       Long-Term Debt, net (continued) The contractual annual loan principal payments per lender to be made subsequent to December 31, 2021, were as follows:December 31, CIT Bank N.A.2022 5,0002023 5,0002024 5,0002025 5,0002026 and thereafter 11,750Total 31,750 The contractual annual loan principal payments per lender to be made subsequent to December 31, 2020, were as follows: December 31, EnTrust2021 5,9702022 31,0302023 and thereafter —Total 37,000 The weighted average interest rate for the years ended December 31, 2021 and 2020, was 5.69% and 9.44%, respectively. 12.       Share Based Payment Share-based payments are quarterly restrictive shares issued to the Company’s Non-executive directors for their services and in accordance with appointmentletters. Share based payment comprise the following: Year 2021Number ofcommon shares Number ofpreferredshares Sharepremium Retainedearnings Non-executive directors’ payment12,178 —  40 — Balance at December 31, 202112,178 —  40 —  Year 2020Number ofcommon shares Number ofpreferredshares Sharepremium Retainedearnings Non-executive directors’ payment2,812 —  40 — Balance at December 31, 20202,812 —  40 —  Year 2019Number ofcommon shares Number ofpreferredshares Sharepremium Retainedearnings Non-executive directors’ payment180 —  40 — Balance at December 31, 2019180 —  40 —  F-35  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 13.       Voyage Expenses and Vessel Operating Expenses Voyage expenses and vessel operating expenses in the consolidated statements of comprehensive income/(loss) consisted of the following:    Voyage expenses consisted of: For the year ended December 31, 2021 2020 2019Commissions626 160 224Bunkers expenses— 2,117 1,634Other voyage expenses502 213 240Total1,128 2,490 2,098       Vessel operating expenses consisted of:Voyage Expenses and Vessel Operating Expenses - Vessel operating expenses For the year ended December 31, 2021 2020 2019Crew wages and related costs7,570 4,865 4,670Insurance1,067 661 664Spares, repairs and maintenance2,414 1,574 1,884Lubricants555 434 517Stores1,712 787 820Other490 260 327Total13,808 8,581 8,882 14.       Administrative Expenses The amount shown in the consolidated statements of comprehensive income/(loss) is analysed as follows: For the year ended December 31, 2021 2020 2019Personnel expenses1,455 1,013 1,006Audit fees215 143 98Consulting fees329 243 191Communication16 12 7Stationery6 3 2Greek tax authorities (note 19)185 130 116Other404 347 163Total2,610 1,891 1,583 15.       Interest Expense and Finance Costs The amounts in the consolidated statements of comprehensive income/(loss) are analysed as follows: For the year ended December 31, 2021 2020 2019Interest payable on long-term borrowings1,958 3,721 3,603Bank charges59 69 28Amortization of debt discount547 293 383Operating lease liability interest52 44 51Other finance expenses646 28 638Total3,262 4,155 4,703 Other finance expenses for 2021 include approximately $0.6 million that were the loan prepayment fee and expenses relating to the prepayment of EnTrustloan facility. F-36  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 16.       Dividends No dividends were declared or paid on common shares during the years ended December 31, 2021, 2020 and 2019. 17. Contingencies Various claims, suits and complaints, including those involving government regulations, arise in the ordinary course of the shipping business. In addition,losses may arise from disputes with charterers, environmental claims, agents, and insurers and from claims with suppliers relating to the operations of theCompany’s vessels. Currently, management is not aware of any such claims or contingent liabilities, which are material for disclosure. 18. Commitments The Company enters into time charter arrangements on its vessels. As at December 31, 2021, the non-cancellable arrangements had remaining terms betweennil days to two and a half months, assuming redelivery at the earliest possible date. As at December 31, 2020, the non-cancellable arrangements had remainingterms between nine days to eight months, assuming redelivery at the earliest possible date. Future net minimum lease revenues receivable under non-cancellable operating leases as at December 31, 2021 and 2021, were as follows (vessel off-hires and dry-docking days that could occur but are not currentlyknown are not taken into consideration and early delivery of the vessels by the charterers is not accounted for): 20212020Within one year6,0823,078Total6,0823,078 These amounts include consideration for other elements of the arrangement apart from the right to use the vessel such as maintenance and crewing and itsrelated costs. At December 31, 2021, 2020 and 2019, the Company was a party to a lease agreement as lessee (note 4). On August 5, 2021, the Company entered into a newrental agreement for 902 square metres of office space for its operations within a building leased by Cyberonica S.A. (an affiliate of Globus’s chairman) at amonthly rate of Euro 26,000 (absolute amount) with a lease period ending August 4, 2024. The previous rental agreement was terminated. The depreciation charge for right-of-use assets for the years ended December 31, 2021 and 2020, was approximately $206 and $112, respectively, andrecognised under depreciation in the income statement component of the consolidated statements of comprehensive income/(loss). The interest expense onlease liability for the years ended December 31, 2021 and 2020, was approximately $52 and $44, respectively, and recognised under interest expense andfinance costs in the income statement component of the consolidated statements of comprehensive income/(loss). At December 31, 2021 and 2020, the current lease liability amounted to $349 and $195, respectively. The non-current lease liability amounted to $556 and$367, respectively. As at December 31, 2021, 2020 and 2019, the net carrying in amount of the right of use asset was $888, $450 and $562, respectively.These are included in the accompanying consolidated statements of financial position. The total cash outflows for leases for the years ended December 31,2021, 2020 and 2019, were approximately $314, $229 and $47, respectively, and were recognised in the consolidated statement of cash flows under thePayment of lease liability – principal and Interest Paid. F-37  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 19.       Income Tax Under the laws of the countries of the vessel owning companies’ incorporation and / or vessels’ registration, vessel owning companies are not subject to tax oninternational shipping income; however, they are subject to registration and tonnage taxes, which are included in vessel operating expenses in theaccompanying consolidated statements of loss. Greek Authorities Tax                        In January 2013, the tax Law 4110/2013 amended the provisions of art. 26 of Law 27/1975 by imposing a fixed annual tonnage tax on vessels flying aforeign (i.e., non-Greek) flag which are managed by a Law 89/67 company, establishing an identical tonnage tax regime as the one already in force for vesselsflying the Greek flag. This tax varies depending on the size of the vessel, calculated in gross registered tonnage, as well as on the age of each vessel. Paymentof this tonnage tax satisfies all income tax obligations of both the ship-owning company and of all its shareholders up to the ultimate beneficial owners. Anytax payable to the state of the flag of each vessel as a result of its registration with a foreign flag registry (including the Marshall Islands) is subtracted fromthe amount of tonnage tax due to the Greek tax authorities. As at December 31, 2021, 2020 and 2019, the tax expense under the law amounted to $185, $130and $116, respectively and is included in administrative expenses in the consolidated statements of comprehensive income/(loss). U.S. Federal Income Tax Globus is a foreign corporation with wholly owned subsidiaries that are foreign corporations, which derive income from the international operation of a shipor ships that may earn United States (“U.S”) source shipping income for U.S. federal income tax purposes. Globus believes that under § 883 of the Internal Revenue Code, it’s income and the income of its ship-owning subsidiaries, to the extent derived from theinternational operation of a ship or ships, were exempt from U.S. federal income tax in 2021. The following is a summary, discussing the application of the U.S. federal income tax laws to the Company relating to income derived from the internationaloperation of a ship or ships. The discussion and its conclusion are based upon existing U.S. federal income tax law, including the Internal Revenue Code (the“Code”) and final U.S. Treasury Regulations (the “Regs”) as currently in effect, all of which are subject to change, possibly with retroactive effect. In general, under § 883, certain non-U.S. corporations are not subject to U.S. federal income tax on their U.S. source income derived from the internationaloperation of a ship or ships (“gross transportation income”). Absent § 883 or a tax treaty exemption, such income generally would be subject to a 4% grossbasis tax, or in certain cases, to a net income tax plus a 30% branch profits tax. For this purpose, U.S. source gross transportation income includes 50% of the shipping income that is attributable to transportation that begins or ends (butthat does not both begin and end) in the United States. Shipping income attributable to transportation exclusively between non-U.S. ports is generally not subject to any U.S. Federal income tax. “Shipping income”generally means income that is derived from: (a) the use of vessels;(b) the hiring or leasing of vessels for use on a time, operating or bareboat charter basis;(c) the participation in a pool, partnership, strategic alliance, joint operating agreement or other joint venture it directly or indirectly owns orparticipates in that generates such income; or(d) the performance of services directly related to those uses. The Regs provide that a foreign corporation will qualify for the benefits of § 883 if, in relevant part, the foreign country in which the foreign corporation isorganized grants an equivalent exemption to corporations organized in the U.S. and the foreign corporation meets either the qualified shareholder test or thepublicly traded test described below. F-38  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 19.       Income Tax (continued) Qualified Shareholder Test A foreign corporation having more than 50 percent of the value of its outstanding shares owned, directly or indirectly by application of specific attributionrules, for at least half of the number of days in the foreign corporation's taxable year by one or more qualified shareholders will meet the qualified shareholdertest. In part, an individual who is a shareholder will be considered a qualified shareholder if he or she is a resident of a qualified foreign country (which meansfor this purpose that he or she is fully liable to tax in such country, and maintains a tax home in such country for 183 days or more in the taxable year, orcertain other rules apply) and does not own his or her interest in the foreign corporation through bearer shares (except for bearer shares held in adematerialized or immobilized book entry system), either directly or indirectly by application of the attribution rules. In addition, in order to meet the qualifiedshareholder test, a foreign corporation will need to obtain certifications from its qualified shareholders (including from intermediary entities) substantiatingtheir stock ownership. Publicly Traded Test The Publicly Traded Test requires that one or more classes of equity representing more than 50% of the voting power and value in a non-United Statescorporation be “primarily and regularly traded” on an established securities market either in the United States or in a foreign country that grants an equivalentexemption. Among others, § 883 provides, in relevant part, that the shares of a non-United States corporation will be considered to be “primarily traded” on anestablished securities market in a country if the number of shares of each class of shares that are traded during any taxable year on all established securitiesmarkets in that country exceeds the number of shares in each such class that are traded during that year on established securities markets in any other singlecountry. Notwithstanding the foregoing, § 883 provides, in relevant part, that a class of shares will not be considered to be “regularly traded” on an establishedsecurities market for any taxable year in which 50% or more of the vote and value of the outstanding shares of such class are owned, actually or constructivelyunder specified share attribution rules, on more than half the days during the taxable year by persons who each own 5% or more of the vote and value of suchclass of outstanding shares which is referred as the 5 Percent Override Rule. In the event that the 5 Percent Override Rule is triggered, § 883 provides that such rule will not apply if the Company can establish that within the group of5% shareholders, there are sufficient qualified shareholders within the meaning of § 883 to preclude non-qualified shareholders in such group from owning50% or more of the total value of the Company’s common shares for more than half the number of days during the taxable year. For the years ended December 31, 2021 and 2019, Globus and its wholly owned subsidiaries deriving income from the operation of international ships wereorganized in foreign countries that grant equivalent exemptions to corporations organized in the U.S. Globus’s common shares, representing more than 50% ofthe voting power and value in Globus, were primarily and regularly traded on the Nasdaq Capital Market, which is an established securities market. AlthoughGlobus’s ship-owning and operating subsidiaries were not publicly traded, they should have qualified for the qualified shareholder test by virtue of theirownership by Globus. Accordingly, all of Globus’ and its ship-owning or operating subsidiaries that relied on § 883 for exempting U.S. source income fromthe international operation of ships should not have been subject to U.S. federal income tax for the years ended December 31, 2021 and 2019. It was not clearwhether Globus was able to rely on the § 883 exemption for the year ended December, 2020. Nevertheless, because Globus and its subsidiaries earned no U.S.source gross transportation income (because none of Globus’s vessels made a voyage to or from the United States in 2020) neither the U.S. 4% gross basis taxnor the net income tax should be owed for 2020. Under the laws of the Republic of Malta, the country of incorporation of one of the Company’s vessel-owning company’s, this vessel-owning company is notliable for any income tax on its income derived from shipping operations. The Republic of Malta is a country that has an income tax treaty with the UnitedStates. Accordingly, income earned by vessel-owning companies organized under the laws of the Republic of Malta may qualify for a treaty-based exemption.Specifically, under 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 Statefrom the operation of ships in international traffic shall be taxable only in that State. F-39  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 20.      Financial risk management objectives and policies The Company’s financial liabilities are long-term borrowings, trade and other payables and the financial derivative instrument. The main purpose of thesefinancial liabilities is to assist the Company in the financing of its operations and the acquisition of vessels. The Company has various financial assets such astrade accounts receivable, financial derivative instrument and cash and short-term deposits including restricted cash, which arise directly from its operations.The main risks arising from the Company’s financial instruments are cash flow interest rate risk, credit risk, liquidity risk and foreign currency risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. TheCompany’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.As at December 31, 2021 and 2020, the Company had no long-term borrowings at a fixed interest rate. Interest rate risk table The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the Company’s loss. Increase/(Decrease)in basis points Effect onincome / (loss)2021 $ Libor+15 (52) -20 692020 $ Libor+15 (57) -20 75 Foreign currency risk The following table demonstrates the sensitivity to a reasonably possible change in the Euro exchange rate, with all other variables held constant, to theCompany’s loss due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all othercurrencies as at December 31, 2021 and 2020, was not material. Change in rate Effect onincome / (loss) 2021+10% (478) -10% 478 2020+10% (258) -10% 258 Credit risk The Company operates only with recognised, creditworthy third parties including major charterers, commodity traders and government owned entities.Receivable balances are monitored on an ongoing basis with the result that the Company’s exposure to impairment on trade accounts receivable is notsignificant. The maximum exposure is the carrying value of trade accounts receivable as indicated in the consolidated statement of financial position. Withrespect to the credit risk arising from other financial assets of the Company such as cash and cash equivalents, the Company’s exposure to credit risk arisesfrom default of the counter parties, which are recognised financial institutions. The Company performs annual evaluations of the relative credit standing ofthese counter parties. The exposure of these financial instruments is equal to their carrying amount as indicated in the consolidated statement of financialposition. F-40  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 20.       Financial risk management objectives and policies (continued) Concentration of credit risk table: The following table provides information with respect to charterers who individually, accounted for approximately more than 10% of the Company’s revenuefor the years ended December 31, 2021, 2020 and 2019: 2021 % 2020 % 2019 %A 7,726 18% — — — —B 4,571 11% — — — —C — — 751 6% 3,476 22%Other 30,914 71% 11,002 94% 12,147 78%Total 43,211 100% 11,753 100% 15,623 100% Liquidity risk The Company mitigates liquidity risk by managing cash generated by its operations, applying cash collection targets appropriately. The vessels are normallychartered under time-charter, bareboat and spot agreements where, as per the industry practice, the charterer pays for the transportation service 15 days inadvance, supporting the management of cash generation. Vessel acquisitions are carefully controlled, with authorisation limits operating up to board level andcash payback periods applied as part of the investment appraisal process. In this way, the Company maintains a good credit rating to facilitate fund raising. Inits funding strategy, the Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans. Excess cashused in managing liquidity is only invested in financial instruments exposed to insignificant risk of changes in market value or are being placed on interestbearing deposits with maturities fixed usually for no more than 3 months. The Company monitors its risk relating to the shortage of funds by considering thematurity of its financial liabilities and its projected cash flows from operations. The table below summarises the maturity profile of the Company’s financial liabilities (including interest) at December 31, 2021 and 2020 based oncontractual undiscounted cash flows.Year ended December 31, 2021 Less than 3months 3 to 12 months 1 to 5 years More than 5years TotalLong-term debt 1,566 4,614 29,325 — 35,505Lease liabilities 92 275 585 — 952Accrued liabilities and other payables 3,676 — — — 3,676Trade accounts payables 1,100 — — — 1,100Current portion of fair value of derivative financial instruments 23 69 — — 92Total 6,457 4,958 29,910 — 41,325 Year ended December 31, 2020 Less than 3months 3 to 12 months 1 to 5 years More than 5years TotalLong-term debt 2,302 6,752 32,362 — 41,416Lease liabilities 106 106 426 — 638Accrued liabilities and other payables 2,159 — — — 2,159Trade accounts payables 4,758 — — — 4,758Total 9,325 6,858 32,788 — 48,971 Capital management The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to supportits business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economicconditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issuenew shares as well as managing the outstanding level of debt. Lenders may impose capital structure or solvency ratios (refer to note 11). No changes weremade in the objectives, policies or processes during the years ended December 31, 2021 and 2020. F-41  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 21.       Fair values Carrying amounts and fair values The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy (asdefined in note 2.27). It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount isa reasonable approximation of fair value, such as cash and cash equivalents, restricted cash, trade receivables and trade payables. Carryingamount Fair valueDecember 31, 2021 Level 1 Level 2 Level 3 Total Financialassets Financial assets measured at fair value Derivative financial instruments 417 —  417 —  417 417 Financialliabilities Financial liabilities measured at fair value Derivative financial instruments 92 —  92 —  92 92 Financial liabilities not measured at fair value Long-term borrowings 31,750 —  32,155 —  32,155 31,750 Carryingamount Fair valueDecember 31, 2020 Level 1 Level 2 Level 3 Total Financialliabilities Financial liabilities not measured at fair value Long-term borrowings 37,000 —  37,961 —  37,961 37,000 Measurement of fair values Valuation techniques and significant unobservable inputsThe following tables show the valuation techniques used in measuring Level 1, Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.Financial instruments measured at fair value Type Valuation Techniques Significant unobservable inputs Derivative financial instruments: Interest Rate Swap Discounted cash flow Discount rate Financial instruments not measured at fair value Asset and liabilities not measured at fair value Type Valuation Techniques Significant unobservable inputs Long-term borrowings Discounted cash flow Discount rate Transfers between Level 1, 2 and 3There were no transfers between these levels in 2020 and 2021. F-42  Table of Contents GLOBUS MARITIME LIMITEDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(Amounts presented in thousands of U.S. Dollars - except for share, per share and warrants data, unless otherwise stated) 22.       Events after the reporting date The conflict between Russia and Ukraine, which commenced in February 2022, has disrupted supply chains and caused instability and significant volatility inthe global economy. Much uncertainty remains regarding the global impact of the conflict in Ukraine, and it is possible that such instability, uncertainty andresulting volatility could significantly increase the costs of the Company and adversely affect its business, including the ability to secure charters andfinancing on attractive terms, and as a result, adversely affect the Company’s business, financial condition, results of operation and cash flows. Currentlythere is no effect on the Company’s operations. F-43  Table of Contents  Exhibit 2.1 Description of Rights of Each Class of Securities Registered under Section 12 of the Exchange ActAs of December 31, 2021 Globus Maritime Limited (the “Company,” “Globus,” “we,” “us” or “our”) had the following securities registered pursuant toSection 12 of the Act: Title of each class Trading symbols Name of each exchange on whichregisteredShares of common stock, par value $0.004 per share GLBS Nasdaq Capital MarketFor which Capitalized terms used but not defined herein have the meanings given to them in our annual report on Form 20-F for the fiscal year endedDecember 31, 2021 (the “Annual report”). The following is a description that includes, among other things, the material terms of our articles of incorporation and bylaws. The description does not purport tobe complete and is subject to, and qualified in its entirety by reference to, all the provisions of the articles of incorporation and bylaws. Because the following is onlya summary, it does not contain all information that you may find important. AUTHORIZED CAPITAL Globus Maritime Limited is authorized to issue (1) 500,000,000 common shares, par value $0.004 per share, (2) 100,000,000 Class B common shares, par value$0.001 per share, which we refer to as the Class B shares, and (3) 100,000,000 preferred shares, par value $0.001 per share, which we refer to as the preferred shares.No Class B shares have yet been issued. Our articles of incorporation require us at all times to reserve and keep available, out of our authorized but unissued commonshares, such number of common shares as would become issuable upon the conversion of all Class B shares then outstanding. Two series of preferred shares have been designated. There is no limitation on the right to own securities or the rights of non-resident shareholders to hold or exercise voting rights on our securities under MarshallIslands law or our articles of incorporation or bylaws. All of our shares are in registered form. Our articles of incorporation do not permit the issuance of bearer shares. We do not hold any of our shares in treasury. We have financed our operations through funds raised in public and private placements of common shares and through debt. We also issued shares to our officers andemployees. PURPOSE Our objects and purposes, as provided in Section 1.3 of our articles of incorporation, are to engage in any lawful act or activity for which corporations may now orhereafter be organized under the BCA. COMMON SHARES, CLASS B SHARES, AND SERIES B PREFERRED SHARES Generally, Marshall Islands law provides that the holders of a class of stock of a Marshall Islands corporation are entitled to a separate class vote on any proposedamendment to the relevant articles of incorporation that would change the aggregate number of authorized shares or the par value of that class of shares or alter orchange the powers, preferences or special rights of that class so as to affect the class adversely. Except as described below, holders of our common shares and Class Bshares have equivalent economic rights. Holders of our common shares are entitled to one vote per share while holders of our Class B shares are entitled to 20 votesper share and the holder of our Series B preferred shares is entitled to 25,000 votes per share (subject to the limitation described in “Preferred Shares” 1  below). Each holder of Class B shares (not including the Company and the Company’s subsidiaries) may convert, at its option, any or all of the Class B shares heldby such holder into an equal number of common shares. Except as otherwise provided by the BCA, holders of our common shares, Class B shares, and Series B preferred shares will vote together as a single class on allmatters submitted to a vote of shareholders, including the election of directors. The rights, preferences and privileges of holders of our shares are subject to the rights of the holders of our Series B preferred shares and any preferred shares whichwe may issue in the future.Holders of our common shares do not have conversion, redemption or pre-emptive rights to subscribe to any of our securities. Common shares that have been entered into the DTC book-entry system will be registered in the name of Cede & Co., as nominee for DTC and transfers of beneficialownership of shares held through DTC will be effected by electronic transfer made by DTC participants. Transfers of shares held outside of DTC or another direct registration system maintained by Computershare, our transfer agent, and not represented by certificates areeffected by a stock transfer instrument. Transfer of registered certificates is effected by presenting and surrendering the certificates to us or our transfer agent. A valid transfer requires the registeredcertificates to be properly endorsed for transfer as provided for in the certificates and accompanied by proper instruments of transfer. Our articles of incorporation, bylaws and the BCA do not contain transfer restrictions on our common shares. PREFERRED SHARES Our articles of incorporation authorize our board of directors to establish and issue up to 100 million preferred shares and to determine, with respect to anyseries of preferred shares, the rights and preferences of that series, including: ¨the designation of the series; ¨the number of preferred shares in the series; ¨the preferences and relative participating option or other special rights, if any, and any qualifications, limitations or restrictions of such series; and ¨the voting rights, if any, of the holders of the series. In April 2012 we issued an aggregate of 3,347 (number not adjusted for any reverse stock splits) Series A Preferred Shares to two persons who were thenexecutive officers, but as of the date hereof no Series A Preferred Shares are outstanding. The holders of our Series A Preferred Shares were entitled to receive, iffunds were legally available, dividends payable in cash in an amount per share to be determined by unanimous resolution of our Remuneration Committee, in its solediscretion. Our board of directors or Remuneration Committee determined whether funds were legally available under the BCA for such dividend. Any accrued butunpaid dividends did not bear interest. Except as may be provided in the BCA, holders of our Series A Preferred Shares did not have any voting rights. Upon ourliquidation, dissolution or winding up, the holders of our Series A Preferred Shares were entitled to a preference in the amount of the declared and unpaid dividends,if any, as of the date of liquidation, dissolution or winding up. Our Series A Preferred Shares were not convertible into any of our other capital stock. The Series APreferred Shares were redeemable at the written request of the Remuneration Committee, at par value plus all declared and unpaid dividends as of the date ofredemption plus any additional consideration determined by a unanimous resolution of the Remuneration Committee. We redeemed and cancelled 780 Series APreferred Shares in January 2013 and the remaining 2,567 were redeemed and cancelled in July 2016. (These figures do not reflect any of our reverse stock splitswhich occurred afterwards.) 2  In June 2020, we issued 50 newly-designated Series B Preferred Shares, par value $0.001 per share, to Goldenmare Limited, a company controlled by ourChief Executive Officer, Athanasios Feidakis. We issued an additional 250 Series B preferred shares to Goldenmare Limited in July 2020 and an additional 10,000Series B preferred shares to Goldenmare Limited in March 2021. The Series B preferred shares currently have the following characteristics: Voting. To the fullest extent permitted by law, each Series B preferred share entitles the holder hereof to 25,000 votes per share on all matters submitted to avote of the shareholders of the Company, provided however, that no holder of Series B preferred shares may exercise voting rights pursuant to Series B preferredshares that would result in the aggregate voting power of any beneficial owner of such shares and its affiliates (whether pursuant to ownership of Series B preferredshares, common shares or otherwise) to exceed 49.99% of the total number of votes eligible to be cast on any matter submitted to a vote of shareholders of theCompany. To the fullest extent permitted by law, the holders of Series B preferred shares shall have no special voting or consent rights and shall vote together as oneclass with the holders of the common shares on all matters put before the shareholders. Conversion. The Series B preferred shares are not convertible into common shares or any other security. Redemption. The Series B preferred shares are not redeemable. Dividends. The Series B preferred shares have no dividend rights. Liquidation Preference. Upon any liquidation, dissolution or winding up of the Company, the Series B preferred shares are entitled to receive a paymentwith priority over the common shareholders equal to the par value of $0.001 per share. The Series B preferred shareholder has no other rights to distributions uponany liquidation, dissolution or winding up of the Company. Transferability. All issued and outstanding Series B preferred shares must be held of record by one holder, and the Series B preferred shares shall not betransferred without the prior approval of our Board of Directors. Proportional Adjustment. In the event the Company (i) declares any dividend on its common shares, payable in common shares, (ii) subdivides theoutstanding common shares or (iii) combines the outstanding common shares into a smaller number of shares, there shall be a proportional adjustment to the numberof outstanding Series B preferred shares. LIQUIDATION In the event of our dissolution, liquidation or winding up, whether voluntary or involuntary, after payment in full of the amounts, if any, required to be paid to ourcreditors, the payment of the par value of $0.001 per share to the holder of our Series B Preferred Shares, and the holders of preferred shares, our remaining assetsand funds shall be distributed pro rata to the holders of our common shares and Class B shares, and the holders of common shares and the holders of Class B sharesshall be entitled to receive the same amount per share in respect thereof. Other than their receipt of the par value of $0.001 per Series B preferred share, the holder ofour Series B Preferred Shares do not participate in distributions upon liquidation. DIVIDENDS Declaration and payment of any dividend is subject to the discretion of our board of directors. The timing and amount of dividend payments to holders of our shareswill depend on a series of factors and risks described under “Risk Factors” in our annual report on Form 20-F and in prospectuses we may file from time to time, andincludes risks relating to earnings, financial condition, cash requirements and availability, restrictions in our current and future loan arrangements, the provisions ofthe Marshall Islands law affecting the payment of dividends and other factors. The BCA generally prohibits the payment of dividends other than from surplus orwhile we are insolvent or if we would be rendered insolvent upon paying the dividend. 3  Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common shares and Class B shares will be entitled toshare equally (pro rata based on the number of shares held) in any dividends that our board of directors may declare from time to time out of funds legally availablefor dividends. Series B preferred shares do not participate in dividends. CONVERSION Our common shares are not convertible into any other shares of our capital stock. Each of our Class B shares is convertible at any time at the election of the holderthereof into one of our common shares. We may reissue or resell any Class B shares that shall have been converted into common shares. Neither the Common Sharesnor the Class B Shares may be reclassified, subdivided or combined unless such reclassification, subdivision or combination occurs simultaneously and in the sameproportion for each such class of Common Stock. DIRECTORS Our directors are elected by the vote of the plurality of the votes cast by shareholders entitled to vote in the election. Our articles of incorporation provide that ourboard of directors must consist of at least three members. Shareholders may change the number of directors only by the affirmative vote of holders of a majority ofthe total voting power of our outstanding capital stock (subject to the rights of any holders of preferred shares). The board of directors may change the number ofdirectors by a majority vote of the entire board of directors. No contract or transaction between us and one or more of our directors or officers will be void or voidable solely for the following reason, or solely because thedirector or officer is present at or participates in the meeting of our board of directors or committee thereof which authorizes the contract or transaction, or solelybecause his or her or their votes are counted for such purpose, if (1) the material facts as to such director’s interest in such contract or transaction and as to any suchcommon directorship, officership or financial interest are disclosed in good faith or known to the board of directors or committee, and the board of directors orcommittee approves such contract or transaction by a vote sufficient for such purpose without counting the vote of such interested director, or, if the votes of thedisinterested directors are insufficient to constitute an act of the board, by unanimous vote of the disinterested directors; or (2) the material facts as to such director’sinterest in such contract or transaction and as to any such common directorship, officership or financial interest are disclosed in good faith or known to theshareholders entitled to vote thereon, and such contract or transaction is approved by vote of such shareholders. Our board of directors has the authority to fix the compensation of directors for their services. CLASSIFIED BOARD OF DIRECTORS Our articles of incorporation provide for a board of directors serving staggered, three-year terms. Approximately one-third of our board of directors are elected eachyear. REMOVAL OF DIRECTORS; VACANCIES Our articles of incorporation provide that directors may be removed with or without cause upon the affirmative vote of holders of a majority of the total voting powerof our outstanding capital stock cast at a meeting of the shareholders. Our articles of incorporation also permit the removal of directors for cause upon the affirmativevote of 66-2/3% of the members of the board of directors then in office. Our bylaws require parties to provide advance written notice of nominations for the electionof directors other than the board of directors and shareholders holding 30% or more of the voting power of the aggregate number of our shares issued and outstandingand entitled to vote. NO CUMULATIVE VOTING Our articles of incorporation prohibit cumulative voting. 4  SHAREHOLDER MEETINGS Under our bylaws, annual shareholder meetings will be held at a time and place selected by our board of directors. The meetings may be held in or outside of theMarshall Islands. Special meetings may be called by the chairman of our board of directors, by resolution of our board of directors or by holders of 30% or more ofthe voting power of the aggregate number of our shares issued and outstanding and entitled to vote at such meeting. Our board of directors may set a record datebetween 15 and 60 days before the date of any meeting to determine the shareholders that will be eligible to receive notice and vote at the meeting. DISSENTERS’ RIGHTS OF APPRAISAL AND PAYMENT Under the BCA, our shareholders may have the right to dissent from various corporate actions, including certain amendments to our articles of incorporation andcertain mergers or consolidations or the sale or exchange of all or substantially all of our assets not made in the usual course of our business, and receive payment ofthe fair value of their shares, subject to exceptions. The right of a dissenting shareholder to receive payment of the fair value of his shares is not available for theshares of any class or series of stock, which shares at the record date fixed to determine the shareholders entitled to receive notice of and vote at the meeting ofshareholders to act upon the agreement of merger or consolidation or any sale or exchange of all or substantially all of the property and assets of the corporation notmade in the usual course of its business, were either (1) listed on a securities exchange or admitted for trading on an interdealer quotation system or (2) held of recordby more than 2,000 holders. In the event of any further amendment of our articles of incorporation, a shareholder also has the right to dissent and receive payment forhis or her shares if the amendment alters certain rights in respect of those shares. The dissenting shareholder must follow the procedures set forth in the BCA toreceive payment. In the event that we and any dissenting shareholder fail to agree on a price for the shares, the BCA procedures involve, among other things, theinstitution of proceedings in the high court of the Republic of the Marshall Islands or in any appropriate court in any jurisdiction in which our shares are primarilytraded on a local or national securities exchange to fix the value of the shares. SHAREHOLDERS’ DERIVATIVE ACTIONS Under the BCA, any of our shareholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that theshareholder bringing the action is a holder of common shares or a beneficial interest therein both at the time the derivative action is commenced and at the time of thetransaction to which the action relates or that the shares devolved upon the shareholder by operation of law, among other requirements set forth in the BCA. AMENDMENT OF OUR ARTICLES OF INCORPORATION Except as otherwise provided by law, any provision in our articles of incorporation requiring a vote of shareholders may only be amended by such a vote. Further,certain sections may only be amended by affirmative vote of the holders of at least a majority of the voting power of the voting shares. ANTI-TAKEOVER EFFECTS OF CERTAIN PROVISIONS OF OUR ARTICLES OF INCORPORATION AND BYLAWS Several provisions of our articles of incorporation and bylaws, which are summarized below, may have anti-takeover effects. These provisions are intendedto avoid costly takeover battles, lessen our vulnerability to a hostile change of control and enhance the ability of our board of directors to maximize shareholder valuein connection with any unsolicited offer to acquire our company. However, these anti-takeover provisions could also discourage, delay or prevent the merger oracquisition of our company by means of a tender offer, a proxy contest or otherwise that a shareholder may consider in its best interest and the removal of incumbentofficers and directors, which could affect the desirability of our shares and, consequently, our share price. 5  Multi Class Stock. Our multi-class stock structure, which consists of common shares, Class B common shares, and preferred shares, can provide holders ofour Class B common shares or preferred shares a significant degree of control over all matters requiring shareholder approval, including the election of directors andsignificant corporate transactions, such as a merger or other sale of our company or its assets, because our different classes of shares can have different numbers ofvotes. For instance, while our common shares have one vote on matters before the shareholders, each of our 10,300 outstanding Series B preferred shares has25,000 votes on matters before the shareholders; provided however, that no holder of Series B preferred shares may exercise voting rights pursuant to any Series Bpreferred shares that would result in the total number of votes a holder is entitled to vote on any matter submitted to a vote of shareholders of the Company to exceed49.99% of the total number of votes eligible to be cast on such matter. No Class B common shares are presently outstanding, but if and when we issue any, each ClassB common share will have 20 votes on matters before the shareholders. At present, and until a substantial number of additional securities are issued, our holder of Series B preferred shares exerts substantial control of theCompany’s votes and is able to exert substantial control over our management and all matters requiring shareholder approval, including electing directors andsignificant corporate transactions, such as a merger. Such holder’s interest could differ from yours. Blank Check Preferred Shares. Under the terms of our articles of incorporation, our board of directors has authority, without any further vote or action byour shareholders, to issue up to 100 million “blank check” preferred shares, almost all of which currently remain available for issuance. Our board could authorize theissuance of preferred shares with voting or conversion rights that could dilute the voting power or rights of the holders of common shares, in addition to preferredshares that are already outstanding. The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporatepurposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of us or the removal of our management and may harmthe market price of our common shares. Classified Board of Directors. Our articles of incorporation provide for the division of our board of directors into three classes of directors, with each classas nearly equal in number as possible, serving staggered, three-year terms beginning upon the expiration of the initial term for each class. Approximately one-third ofour board of directors is elected each year. This classified board provision could discourage a third party from making a tender offer for our shares or attempting toobtain control of us. It could also delay shareholders who do not agree with the policies of our board of directors from removing a majority of our board of directorsfor up to two years. Election of Directors. Our articles of incorporation do not provide for cumulative voting in the election of directors. Our bylaws require parties, other thanthe chairman of the board of directors, board of directors and shareholders holding 30% or more of the voting power of the aggregate number of our shares issued andoutstanding and entitled to vote, to provide advance written notice of nominations for the election of directors. These provisions may discourage, delay or prevent theremoval of incumbent officers and directors. Advance Notice Requirements for Shareholder Proposals and Director Nominations. Our bylaws provide that shareholders, other than shareholders holding30% or more of the voting power of the aggregate number of our shares issued and outstanding and entitled to vote, seeking to nominate candidates for election asdirectors or to bring business before an annual meeting of shareholders must provide timely notice of their proposal in writing to the corporate secretary. Generally, to be timely, a shareholder’s notice must be received at our principal executive offices not less than 150 days or more than 180 days prior to thefirst anniversary date of the immediately preceding annual meeting of shareholders. Our bylaws also specify requirements as to the form and content of ashareholder’s notice. These provisions may impede a shareholder’s ability to bring matters before an annual meeting of shareholders or make nominations fordirectors at an annual meeting of shareholders. Calling of Special Meetings of Shareholders. Our bylaws provide that special meetings of our shareholders may be called only by the chairman of ourboard of directors, by resolution of our board of directors or by holders of 30% or more of the voting power of the aggregate number of our shares issued andoutstanding and entitled to vote at such meeting. 6  Action by Written Consent in Lieu of a Meeting. Our articles permit any action which may or is required by the BCA to be taken at a meeting of theshareholders to be authorized by consents in writing signed by the holders of outstanding shares having not less than the minimum number of votes that would benecessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Presently and until and unless we issue asignificant number of securities, Goldenmare Limited, a company affiliated with our Chief Executive Officer, holds Series B Preferred Shares controlling 49.99% ofthe voting power of our outstanding capital stock. Goldenmare could, together with shareholders possessing a relatively small number of shares, act by writtenconsent in lieu of a meeting and authorize major transactions on behalf of the Company, all without calling a meeting of shareholders. Business Combinations Although the BCA does not contain specific provisions regarding “business combinations” between corporations incorporated under or redomiciled pursuantto the laws of the Marshall Islands and “interested shareholders,” our articles of incorporation prohibit us from engaging in a business combination with an interestedshareholder for a period of three years following the date of the transaction in which the person became an interested shareholder, unless, in addition to any otherapproval that may be required by applicable law: ¨prior to the date of the transaction that resulted in the shareholder becoming an interested shareholder, our board of directors approved either thebusiness combination or the transaction that resulted in the shareholder becoming an interested shareholder; ¨upon consummation of the transaction that resulted in the shareholder becoming an interested shareholder, the interested shareholder owned at least85.0% of our voting shares outstanding at the time the transaction commenced, excluding for purposes of determining the number of sharesoutstanding those shares owned by (1) persons who are directors and officers and (2) employee stock plans in which employee participants do nothave the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or ¨at or after the date of the transaction that resulted in the shareholder becoming an interested shareholder, the business combination is approved by ourboard of directors and authorized at an annual or special meeting of shareholders, and not by written consent, by the affirmative vote of at least 66-2/3% of the voting power of the voting shares that are not owned by the interested shareholder. Among other transactions, a “business combination” includes any merger or consolidation of us or any directly or indirectly majority-owned subsidiary ofours with (1) the interested shareholder or any of its affiliates or (2) with any corporation, partnership, unincorporated association or other entity if the merger orconsolidation is caused by the interested shareholder. Generally, an “interested shareholder” is any person or entity (other than us and any direct or indirect majority-owned subsidiary of ours) that: ¨owns 15.0% or more of our outstanding voting shares; ¨is an affiliate or associate of ours and was the owner of 15.0% or more of our outstanding voting shares at any time within the three-year periodimmediately prior to the date on which it is sought to be determined whether such person is an interested shareholder; or ¨is an affiliate or associate of any person listed in the first two bullets, except that any person who owns 15.0% or more of our outstanding votingshares, as a result of action taken solely by us will not be an interested shareholder unless such person acquires additional voting shares, except as aresult of further action by us and not caused, directly or indirectly, by such person. Additionally, the restrictions regarding business combinations do not apply to persons that became interested shareholders prior to the effectiveness of our articles ofincorporation. 7  LIMITATIONS ON LIABILITY AND INDEMNIFICATION OF DIRECTORS AND OFFICERS The BCA authorizes corporations to limit or eliminate the personal liability of directors to corporations and their shareholders for monetary damages for breaches ofcertain directors’ fiduciary duties. Our articles of incorporation include a provision that eliminates the personal liability of directors for monetary damages for breachof fiduciary duty as a director to the fullest extent permitted by law (i.e., other than breach of duty of loyalty, acts not taken in good faith or which involve intentionalmisconduct or a knowing violation of law or transactions for which the director derived an improper personal benefit) and provides that we must indemnify ourdirectors and officers to the fullest extent authorized by law. We are also expressly authorized to advance certain expenses to our directors and officers and expect tocarry directors’ and officers’ insurance providing indemnification for our directors and officers for some liabilities. We believe that these indemnification provisionsand the directors’ and officers’ insurance are useful to attract and retain qualified directors and executive officers. The limitation of liability and indemnification provisions in our articles of incorporation may discourage shareholders from bringing a lawsuit against our directorsfor breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, eventhough such an action, if successful, may otherwise benefit us and our shareholders. In addition, an investor in our common shares may be adversely affected to theextent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. There is no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought. TRANSFER AGENT AND REGISTRAR Computershare, Inc. is the transfer agent and registrar for our common shares. MARSHALL ISLANDS COMPANY CONSIDERATIONS Our corporate affairs are governed by our articles of incorporation and bylaws and by the BCA. The provisions of the BCA resemble provisions of thecorporation laws of a number of states in the United States. While the BCA also provides that, for non-resident entities like us, it is to be interpreted according to thelaws of the State of Delaware and other states with substantially similar legislative provisions, there have been few, court cases interpreting the BCA in the Republicof the Marshall Islands and we cannot predict whether Marshall Islands courts would reach the same conclusions as courts in the United States. Thus, you may havemore difficulty in protecting your interests in the face of actions by the management, directors or controlling shareholders than would shareholders of a corporationincorporated in a United States jurisdiction which has developed a substantial body of case law. The following table provides a comparison between the statutoryprovisions of the BCA and the Delaware General Corporation Law relating to shareholders’ rights.Marshall IslandsDelawareShareholder Meetings Held at a time and place as designated in the bylaws.May be held at such time or place as designated in the certificate ofincorporation or the bylaws, or if not so designated, as determined by the boardof directors.Special meetings of the shareholders may be called by the board of directors orby such person or persons as may be authorized by the articles of incorporationor by the bylaws.Special meetings of the shareholders may be called by the board of directors orby such person or persons as may be authorized by the certificate ofincorporation or by the bylaws. 8  Marshall IslandsDelawareMay be held within or without the Marshall Islands.May be held within or without Delaware.Notice:Whenever shareholders are required to take any action at a meeting, writtennotice of the meeting shall be given which shall state the place, date and hourof the meeting and, unless it is an annual meeting, indicate that it is beingissued by or at the direction of the person calling the meeting. A copy of the notice of any meeting shall be given personally or sent by mail orelectronically not less than 15 nor more than 60 days before the meeting.Notice:Whenever shareholders are required to take any action at a meeting, a writtennotice of the meeting shall be given which shall state the place, if any, date andhour of the meeting, and the means of remote communication, if any. Written notice shall be given not less than 10 nor more than 60 days before themeeting.Shareholders’ Voting Rights Unless otherwise provided in the articles of incorporation, any action requiredby the BCA to be taken at a meeting of shareholders may be taken without ameeting if a consent or consents in writing, setting forth the action so taken,shall be signed by all the shareholders entitled to vote with respect to the subjectmatter thereof, or if the articles of incorporation so provide, by the holders ofoutstanding shares having not less than the minimum number of votes thatwould be necessary to authorize or take such action at a meeting at which allshares entitled to vote thereon were present and voted.Any action required to be taken at a meeting of shareholders may be takenwithout a meeting if a consent for such action is in writing and is signed byshareholders having not less than the minimum number of votes that would benecessary to authorize or take such action at a meeting at which all sharesentitled to vote thereon were present and voted.Any shareholder authorized to vote may authorize another person to act for himby proxy.Any person authorized to vote may authorize another person or persons to actfor him by proxy.Unless otherwise provided in the articles of incorporation or the bylaws, amajority of shares entitled to vote constitutes a quorum. In no event shall aquorum consist of fewer than one-third of the shares entitled to vote at ameeting.For stock corporations, the certificate of incorporation or bylaws may specifythe number of shares required to constitute a quorum but in no event shall aquorum consist of less than one-third of shares entitled to vote at a meeting. Inthe absence of such specifications, a majority of shares entitled to vote shallconstitute a quorum.When a quorum is once present to organize a meeting, it is not broken by thesubsequent withdrawal of any shareholders.When a quorum is once present to organize a meeting, it is not broken by thesubsequent withdrawal of any shareholders.The articles of incorporation may provide for cumulative voting in the electionof directors.The certificate of incorporation may provide for cumulative voting in theelection of directors.Merger or Consolidation 9  Marshall IslandsDelawareAny two or more domestic corporations may merge into a single corporation ifapproved by the boards of the participating corporations and if authorized by amajority vote of the holders of outstanding shares at a shareholder meeting ofeach constituent corporation.Any two or more corporations existing under the laws of the state may mergeinto a single corporation pursuant to a board resolution and upon the majorityvote by shareholders of each constituent corporation at an annual or specialmeeting.Any sale, lease, exchange or other disposition of all or substantially all theassets of a corporation, if not made in the corporation’s usual or regular courseof business, once approved by the board, shall be authorized by the affirmativevote of two-thirds of the shares of those entitled to vote at a shareholdermeeting.Every corporation may at any meeting of the board sell, lease or exchange all orsubstantially all of its property and assets as its board deems expedient and forthe best interests of the corporation when so authorized by a resolution adoptedby the holders of a majority of the outstanding stock of the corporation entitledto vote.Any domestic corporation owning at least 90% of the outstanding shares of eachclass of another domestic corporation may merge such other corporation intoitself without the authorization of the shareholders of any corporation.Any corporation owning at least 90% of the outstanding shares of each class ofanother corporation may merge the other corporation into itself and assume allof its obligations without the vote or consent of shareholders; however, in casethe parent corporation is not the surviving corporation, the proposed mergershall be approved by a majority of the outstanding stock of the parentcorporation entitled to vote at a duly called shareholder meeting.Any mortgage, pledge of or creation of a security interest in all or any part ofthe corporate property may be authorized without the vote or consent of theshareholders, unless otherwise provided for in the articles of incorporation.Any mortgage or pledge of a corporation’s property and assets may beauthorized without the vote or consent of shareholders, except to the extent thatthe certificate of incorporation otherwise provides.Directors The board of directors must consist of at least one member.The board of directors must consist of at least one member.The number of board members may be changed by an amendment to thebylaws, by the shareholders, or by action of the board under the specificprovisions of a bylaw.The number of board members shall be fixed by, or in a manner provided by,the bylaws, unless the certificate of incorporation fixes the number of directors,in which case a change in the number shall be made only by an amendment tothe certificate of incorporation.If the board is authorized to change the number of directors, it can only do so bya majority of the entire board and so long as no decrease in the number shallshorten the term of any incumbent director.If the number of directors is fixed by the certificate of incorporation, a changein the number shall be made only by an amendment of the certificate. 10  Marshall IslandsDelawareRemoval:Removal:Any or all of the directors may be removed for cause by vote of theshareholders. The articles of incorporation or the specific provisions of a bylawmay provide for such removal by action of the board, except in the case of anydirector elected by cumulative voting, or by the holders of the shares of anyclass or series when so entitled by the provisions of the articles of incorporation.Any or all of the directors may be removed, with or without cause, by theholders of a majority of the shares entitled to vote unless the certificate ofincorporation otherwise provides.If the articles of incorporation or the bylaws so provide, any or all of thedirectors may be removed without cause by vote of the shareholders.In the case of a classified board, shareholders may effect removal of any or alldirectors only for cause.Dissenters’ Rights of Appraisal Shareholders have a right to dissent from any plan of merger, consolidation orsale or exchange of all or substantially all assets not made in the usual andregular course of business, and receive payment of the fair value of their shares.However, the right of a dissenting shareholder under the BCA to receivepayment of the fair value of his shares is not available for the shares of any classor series of stock, which shares or depository receipts in respect thereof, at therecord date fixed to determine the shareholders entitled to receive notice of andvote at the meeting of shareholders to act upon the agreement of merger orconsolidation or any sale or exchange of all or substantially all of the propertyand assets of the corporation not made in the usual course of its business, wereeither (i) listed on a securities exchange or admitted for trading on an interdealerquotation system or (ii) held of record by more than 2,000 holders. The right ofa dissenting shareholder to receive payment of the fair value of his or her sharesshall not be available for any shares of stock of the constituent corporationsurviving a merger if the merger did not require for its approval the vote of theshareholders of the surviving corporation.Appraisal rights shall be available for the shares of any class or series of stockof a corporation in a merger or consolidation, subject to limited exceptions,such as a merger or consolidation of corporations listed on a national securitiesexchange in which listed stock is offered for consideration is (i) listed on anational securities exchange or (ii) held of record by more than 2,000 holders.A holder of any adversely affected shares who does not vote on or consent inwriting to an amendment to the articles of incorporation has the right to dissentand to receive payment for such shares if the amendment: · Alters or abolishes any preferential right of any outstanding shareshaving preferences; or · Creates, alters, or abolishes any provision or right in respect to theredemption of any outstanding shares; or 11  Marshall IslandsDelaware· Alters or abolishes any preemptive right of such holder to acquire sharesor other securities; or · Excludes or limits the right of such holder to vote on any matter, exceptas such right may be limited by the voting rights given to new shares thenbeing authorized of any existing or new class. Shareholder’s Derivative Actions An action may be brought in the right of a corporation to procure a judgment inits favor, by a holder of shares or of voting trust certificates or of a beneficialinterest in such shares or certificates. It shall be made to appear that the plaintiffis such a holder at the time of bringing the action and that he was such a holderat the time of the transaction of which he complains, or that his shares or hisinterest therein devolved upon him by operation of law.In any derivative suit instituted by a shareholder of a corporation, it shall beaverred in the complaint that the plaintiff was a shareholder of the corporationat the time of the transaction of which he complains or that such shareholder’sstock thereafter devolved upon such shareholder by operation of law.A complaint shall set forth with particularity the efforts of the plaintiff to securethe initiation of such action by the board or the reasons for not making sucheffort.Other requirements regarding derivative suits have been created by judicialdecision, including that a shareholder may not bring a derivative suit unless heor she first demands that the corporation sue on its own behalf and that demandis refused (unless it is shown that such demand would have been futile).Such action shall not be discontinued, compromised or settled, without theapproval of the High Court of the Republic of The Marshall Islands. Reasonable expenses including attorney’s fees may be awarded if the action issuccessful. A corporation may require a plaintiff bringing a derivative suit to give securityfor reasonable expenses if the plaintiff owns less than 5% of any class of stockand the shares have a value of $50,000 or less. 12   Exhibit 4.3[UNOFFICIAL TRANSLATION] PRIVATE SUBLEASE AGREEMENTTHIS AGREEMENT SUPERSEDES AND REPLACES THE ONE SIGNED ON JANUARY 2, 2016. This private sublease agreement dated August 5, 2021 is made between CYBERONICA S.A., a Company specializing in the storage and custom clearance in theimportation and/or exportation of commercial products with registered offices at 79th St Nicholas Ave in Glyfada, Attica under the registered number (GEMI1218901000 and AFM 094438102 which is legally represented by Athanasios Feidakis the son of Constantine and hereinafter called the “Sublessor” and GLOBUS SHIPMANAGEMENT CORP., maintaining an office in Greece at 128 Vouliagmenis Ave, Glyfada 16674 Athens (the “Company”), and which islegally represented by Evangelos Mylonas the son of Ioannis and which is hereinafter called the “Sublessee” Therefore it was agreed and accepted the following: Under the registration number 3545/10-12-2010 Commercial property Leasing Agreement drawn by the Athens notary Christina Keziou, representing the third partyin the agreement “the Lessor”, EFG EUROPEBANK ERGASIAS LEASING SA., (EFG EURANK ERGASIAS LEASING) under the law 1665/1986 as amendedhas made available to the first party of the agreement the “Sublessor” the usage of the multilevel building located at 128 Vouliagmenis Ave& Aghiou Nikolaos 79 inGlyfada Attica for its use under registration number 5381/9.1.1997 by the owner of the premises represented in a transaction drowned by the notary public of AthensMaria Tsagari-Valvi. It is hereby agreed that the first of the agreeing parties, the “Sublessor” and with the consent of the third party the “Lessor” EFG EUROBANK ERGASIASLEASING S.A., agreeing to this Sublease Agreement to the second consenting party “the Sublessee” a part of the 2nd & 3rd floor of the building as it’s described bythe designing Architect Mr. Mylonas (September 1997) accompanied by the common areas in total of 902 sqm., subsequent to the following modifications under thenumber N.4495/2017 by the Architect Ms. Sophia Ilia, with the following terms and conditions: 1. The term of this sublease is agreed by all parties to be three years commencing on August 5, 2021 and continuing until August 4, 2024. At the end of the termthe Sublessee is obliged under no further notice to leave the leased property and return the keys to the “Sublessor”. 2. During the term of August 5, 2021 and until August 4, 2024, the monthly rent is set at the sum of Twenty Six Thousand Euro (26,000). 3. It is hereby agreed by all parties that the monthly rent will be adjusted accordingly by a special written agreement between the “Sublessor” and the“Sublessee” and b) if for any reason there is a dissolution of the above terms then the entire Agreement becomes dissolved and voided. The monthly rent shallbe paid within the first three days of each calendar month. 4. Use of premises: Sublessee shall use the premises leased according to Company’s stated business purposes in its Constitutional declaration only and for noother purpose without Sublessor’s prior written consent. 5. It is forbidden any further subletting by the “Sublessee” to another party regardless of any monetary or non monetary value without the written consent of the“Sublessor”. 6. By signing subject sublease the Sublessee’s legal representative has inspected the property and found it to be satisfactory. 7. During the duration of the sublease the Sublessee is not entitled to make any alterations in any shape or form without the written consent of the Sublessor. 1  8. The Sublessor doesn’t have any responsibility or duty during the duration of the sublease to maintain and or repair the premises for any reason other thanthose damages occurring beyond the Sublessee’s control. The Sublesee is responsible for the safety, cleanliness and maintenance of the premises in itspossession and is responsible for any damage other than the one due to ordinary usage. 9. The Sublessee is responsible for payment of its own electric and water consumption as they each appear with the analogue sums in the relative invoices drawnby each Authorized entity. Furthermore, the Sublessee is responsible for the Stamp Duty of 3.6% on top of the rental monthly payment and in addition to thestamp duty of cleaning dues and sewer generated expenses plus any relative VAT and Stamp Duty tax generated by the Municipality of the vicinity andincorporated in the invoices generated by the Electricity Dept (DEY) and sewer Dept. 10. Should the Sublessee fail to make payments on a timely fashion then the Sublessor has the right to accelerate eviction proceedings in line with the applicablelaws. 11. Any agreement contradictory to all of the above has to be in writing. Subject Sublease Agreement has been produced in four copies, and has been executed as stated below, each relative party has received a fully executed copy with thefourth and last copy to be properly lodged with the authorized Tax Office. The Agreeing parties (counterparts) For Cyberonica SA For Globus Shipmanagement Corp By: /s/ Athanasios Feidakis By: /s/ Evangelos MylonasAthanasios Feidakis Evangelos Mylonas Company seal79th St Nicholas AveGlyfada 16674/AFM(VAT)094438102Tax office: Piraeus tel 210 9696560 fax 210 9640875 2   Exhibit 8.1 SUBSIDIARIES OF GLOBUS MARITIME LIMITED Name Jurisdiction of IncorporationGlobus Shipmanagement Corp. Marshall IslandsDevocean Maritime Ltd. Marshall IslandsDomina Maritime Ltd. Marshall IslandsDulac Maritime S.A. Marshall IslandsArtful Shipholding S.A. Marshall IslandsLongevity Maritime Limited MaltaSerena Maritime Limited Marshall IslandsTalisman Maritime Limited Marshall IslandsDaxos Maritime Limited Marshall IslandsArgo Maritime Limited Marshall IslandsSalaminia Maritime Limited Marshall IslandsParalus Shipholding S.A. Marshall IslandsCalypso Shipholding S.A. Marshall IslandsOlympia Shipholding S.A. Marshall Islands   EXHIBIT 12.1 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Athanasios Feidakis, certify that: 1. I have reviewed this annual report on Form 20-F of Globus Maritime Limited; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the company as of, and for, the periods presented in this report; 4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company andhave: (a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure thatmaterial information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly duringthe period in which this report is being prepared;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles;(c)Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of thedisclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and(d)Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual reportthat has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to thecompany’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions): (a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely toadversely affect the company’s ability to record, process, summarize and report financial information; and(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control overfinancial reporting. Date: April 11, 2022 By:/s/ Athanasios Feidakis Name: Athanasios Feidakis Title: President and ChiefExecutive Officer (PrincipalExecutive Officer)  EXHIBIT 12.2 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Athanasios Feidakis, certify that: 1. I have reviewed this annual report on Form 20-F of Globus Maritime Limited; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the company as of, and for, the periods presented in this report; 4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company andhave: (a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure thatmaterial information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly duringthe period in which this report is being prepared;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles;(c)Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of thedisclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and(d)Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual reportthat has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to thecompany’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions): (a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely toadversely affect the company’s ability to record, process, summarize and report financial information; and(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control overfinancial reporting. Date: April 11, 2022 By:/s/ Athanasios Feidakis Name: Athanasios Feidakis Title: Chief Financial Officer(Principal Financial Officer)  EXHIBIT 13.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002 In connection with this annual report of Globus Maritime Limited (the “Company”) on Form 20-F for the year ended December 31, 2021 as filed with the Securitiesand Exchange Commission on or about the date hereof (the “Report”), I, Athanasios Feidakis, President and Chief Executive Officer of the Company, certify,pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request. Date: April 11, 2022 By:/s/ Athanasios Feidakis Name: Athanasios Feidakis Title: President and ChiefExecutive Officer (PrincipalExecutive Officer)  EXHIBIT 13.2 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002 In connection with this annual report of Globus Maritime Limited (the “Company”) on Form 20-F for the year ended December 31, 2021 as filed with the Securitiesand Exchange Commission on or about the date hereof (the “Report”), I, Athanasios Feidakis, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C.Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request. Date: April 11, 2022 By:/s/ Athanasios Feidakis Name: Athanasios Feidakis Title: Chief Financial Officer(Principal Financial Officer)  EXHIBIT 15.1 Consent of Independent Registered Public Accounting Firm We consent to the incorporation by reference in the following Registration Statements: (1) Registration Statement (Form F-3 No. 333-239250) of Globus Maritime Limited,(2) Registration Statement (Form F-3 No. 333-240042) of Globus Maritime Limited, and(3) Registration Statement (Form F-3 No. 333-240265) of Globus Maritime Limited of our reports dated April 11, 2022, with respect to the consolidated financial statements of Globus Maritime Limited and the effectiveness of internal control overfinancial reporting of Globus Maritime Limited included in this Annual Report (Form 20-F) of Globus Maritime Limited for the year ended December 31, 2021. /s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A. Athens, Greece April 11, 2022 

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