Profit and Loss Sharing agreement:

During the years ended December 31, 2024, 2023 and 2022, the accrued interest costs of the profit and loss sharing agreement (the “Agreement”) entered into for one vessel described in Note 10 relating to MM Shipinvest Holdings Co., a related party company owned by one of HMI’s two shareholders, (“Assignee A”), based on the effective interest method, were $77,117, $4,833 and $nil, respectively, and are presented under “Finance costs, related party” in the accompanying consolidated statements of income.

Transactions with the Non-consolidated Pool Subsidiaries:

During the year ended December 31, 2024, the Company provided aggregate funding of $930,000 to the Non-consolidated Pool Subsidiaries for working capital purposes. This loan to the Non-consolidated Pool Subsidiaries is included in “Receivables from related parties” in the accompanying consolidated balance sheet. The loan receivable is unsecured, with no fixed payment terms and repayable by the Non-consolidated Pool Subsidiaries upon demand and no later than December 31, 2025. The rate of interest on this loan receivable is 4.06% plus Secured Overnight Financing Rate (“SOFR”). The Company earned interest income of $77,308 from the Non-consolidated Pool Subsidiaries, at weighted average interest rates of 9.2% and 8.7% included in “Interest income, related parties” in the accompanying consolidated statement of income.

Receivables from the Non-consolidated Pool subsidiaries are included in “Receivables from related parties” in the accompanying consolidated balance sheets and consist of receivables related to unpaid management fees, commissions earned from the Non-consolidated Pool Subsidiaries and amounts paid for expenses of the Non-consolidated Pool Subsidiaries on behalf of them or loan receivable from the Non-consolidated Pool Subsidiaries. Payables to the Non-consolidated Pool subsidiaries are included in “Payables to related parties” in the accompanying consolidated balance sheets and mainly consist of revenue collected from Heidmar Inc. on behalf of Non-consolidated Pool Subsidiaries. As of December 31, 2024 and 2023, the Company had receivables from/ (payables to) the following Non-consolidated Pool subsidiaries:

Transactions with Syndication partner:

Receivables and trade revenues from the Syndication partner consist of balances with Heidmar Trading LLC. (“Syndication partner”), an entity that is controlled by one of Company’s shareholders.

Syndication income

Syndication income that amounted to $670,231 (2023: $8,409,528, 2022: $6,223,911) for the year ended December 31, 2024 represents the variable remuneration relating to the operating results of the Two Vessels under the Syndication Agreement. The syndication agreement for one vessel ended in April 2023 and for the second one in March 2024.

Receivable from Syndication partner: Receivable from Syndication partner of $nil and $5,261,008 as at December 31, 2024 and December 31, 2023, respectively, mainly includes amounts due from the Syndication partner relating to the Syndication result and advances for expenses paid on behalf of the Syndication partner and is included in “Receivables from related parties” in the accompanying consolidated balance sheets. The receivable as of December 31, 2023, has been fully settled during the year ended December 31, 2024.

Payables to shareholder: Payables to shareholder consist of amounts paid by one of the shareholders, Maistros Shipinvest Corp., for working capital purposes with regards to the operations of the newly established office in Dubai (Note 9). The balance as of both December 31, 2024 and December 31, 2023 was $5,239,219. This balance is unsecured, with no fixed payment terms, interest free and repayable upon demand.

Other: Included in “Other receivables” in the accompanying consolidated balance sheets, is the advance to an employee in a management position which is unsecured, interest free and callable upon demand. The balance as at December 31, 2024 and 2023 was $98,026 and $nil, respectively.