| Basis of Presentation and General Information |
1. | Basis of Presentation and General Information |
The accompanying condensed consolidated financial statements (unaudited) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reporting and functional currency of Danaos Corporation and its subsidiaries (“Danaos” or the “Company”) is the United States Dollar (“USD”). Danaos Corporation, formerly Danaos Holdings Limited, was formed on December 7, 1998 under the laws of Liberia and is presently the sole owner of all outstanding shares of the companies listed below. Danaos Holdings Limited was redomiciled in the Marshall Islands on October 7, 2005. In connection with the re-domiciliation, the Company changed its name to Danaos Corporation. On October 14, 2005, the Company filed and the Marshall Islands accepted Amended and Restated Articles of Incorporation. The authorized capital stock of Danaos Corporation is 750,000,000 shares of common stock with a par value of $0.01 and 100,000,000 shares of preferred stock with a par value of $0.01. Refer to Note 12, “Stockholders’ Equity”. The Company’s principal business is the acquisition and operation of vessels. Danaos conducts its operations through the vessel owning companies whose principal activity is the ownership and operation of container vessels and drybulk vessels that are under the exclusive management of a related party of the Company. In the opinion of management, the accompanying condensed consolidated financial statements (unaudited) of Danaos and subsidiaries contain all adjustments necessary to state fairly, in all material respects, the Company’s condensed consolidated financial position as of June 30, 2026, the condensed consolidated results of operations for the three and six months ended June 30, 2026 and 2025 and the condensed consolidated cash flows for the six months ended June 30, 2026 and 2025. All such adjustments are deemed to be of a normal, recurring nature. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in Danaos’ Annual Report on Form 20-F for the year ended December 31, 2025. The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the results to be expected for the full year. The year-end condensed consolidated balance sheet data was derived from annual financial statements as of December 31, 2025. These condensed consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America. The condensed consolidated financial statements (unaudited) have been prepared to reflect the consolidation of the companies listed below. The historical balance sheets and results of operations of the companies listed below have been reflected in the condensed consolidated balance sheets and condensed consolidated statements of income, comprehensive income, cash flows and stockholders’ equity at and for each period since their respective incorporation dates. Reclassification of Comparative Figures: Investments in equity securities, previously presented within “Other Current and non-current assets”, have been reclassified and presented as separate line items in the statement of financial position. Comparative figures have been reclassified accordingly to conform with the current year presentation. Reclassifications had no effect on current and non - current assets, total equity, profit or loss, or cash flows for any period presented. 1. | Basis of Presentation and General Information (Continued) |
As of June 30, 2026, Danaos owned 75 container vessels on the water, 29 container vessels under construction, 11 Capesize drybulk carrier vessels and four Newcastlemax drybulk vessels under construction. These included the vessel-owning companies (the “Danaos Subsidiaries”) for both container and drybulk vessels, as listed below: Operating container vessels as of June 30, 2026: | | | | | | | | | Company | | Date of Incorporation | | Vessel Name | | Year Built | | TEU (1) | Megacarrier (No. 1) Corp. | | September 10, 2007 | | Kota Peony | | 2012 | | 13,100 | Megacarrier (No. 2) Corp. | | September 10, 2007 | | Kota Primrose | | 2012 | | 13,100 | Megacarrier (No. 3) Corp. | | September 10, 2007 | | Kota Plumbago | | 2012 | | 13,100 | Megacarrier (No. 4) Corp. | | September 10, 2007 | | Speed | | 2012 | | 13,100 | Megacarrier (No. 5) Corp. | | September 10, 2007 | | Ambition | | 2012 | | 13,100 | CellContainer (No. 6) Corp. | | October 31, 2007 | | Express Berlin | | 2011 | | 10,100 | CellContainer (No. 7) Corp. | | October 31, 2007 | | Express Rome | | 2011 | | 10,100 | CellContainer (No. 8) Corp. | | October 31, 2007 | | Express Athens | | 2011 | | 10,100 | Karlita Shipping Co. Ltd. | | February 27, 2003 | | Pusan C | | 2006 | | 9,580 | Ramona Marine Co. Ltd. | | February 27, 2003 | | Le Havre | | 2006 | | 9,580 | Oceancarrier (No. 2) Corp. | | October 15, 2020 | | Bremen | | 2009 | | 9,012 | Oceancarrier (No. 3) Corp. | | October 15, 2020 | | C Hamburg | | 2009 | | 9,012 | Blackwell Seaways Inc. | | January 9, 2020 | | Niledutch Lion | | 2008 | | 8,626 | Oceancarrier (No.1) Corp. | | February 19, 2020 | | Kota Manzanillo | | 2005 | | 8,533 | Springer Shipping Co. | | April 29, 2019 | | Belita | | 2006 | | 8,533 | Teucarrier (No. 1) Corp. | | January 31, 2007 | | CMA CGM Attila | | 2011 | | 8,530 | Teucarrier (No. 2) Corp. | | January 31, 2007 | | CMA CGM Tancredi | | 2011 | | 8,530 | Teucarrier (No. 3) Corp. | | January 31, 2007 | | CMA CGM Bianca | | 2011 | | 8,530 | Teucarrier (No. 4) Corp. | | January 31, 2007 | | CMA CGM Samson | | 2011 | | 8,530 | Teucarrier (No. 5) Corp. | | September 17, 2007 | | CMA CGM Melisande | | 2012 | | 8,530 | Oceanew Shipping Ltd. | | January 14, 2002 | | Europe | | 2004 | | 8,468 | Oceanprize Navigation Ltd. | | January 21, 2003 | | America | | 2004 | | 8,468 | Rewarding International Shipping Inc. | | October 1, 2019 | | Kota Santos | | 2005 | | 8,463 | Teushipper (No 1) Corp. | | March 14, 2022 | | Catherine C | | 2024 | | 8,010 | Teushipper (No 2) Corp. | | March 14, 2022 | | Greenland | | 2024 | | 8,010 | Teushipper (No 3) Corp. | | March 14, 2022 | | Greenville | | 2024 | | 8,010 | Teushipper (No 4) Corp. | | March 14, 2022 | | Greenfield | | 2024 | | 8,010 | Boxsail (No. 1) Corp | | March 4, 2022 | | Interasia Accelerate | | 2024 | | 7,165 | Boxsail (No. 2) Corp | | March 4, 2022 | | Interasia Amplify | | 2024 | | 7,165 | Boxcarrier (No. 1) Corp. | | June 27, 2006 | | CMA CGM Moliere | | 2009 | | 6,500 | Boxcarrier (No. 2) Corp. | | June 27, 2006 | | CMA CGM Musset | | 2010 | | 6,500 | Boxcarrier (No. 3) Corp. | | June 27, 2006 | | CMA CGM Nerval | | 2010 | | 6,500 | Boxcarrier (No. 4) Corp. | | June 27, 2006 | | CMA CGM Rabelais | | 2010 | | 6,500 | Boxcarrier (No. 5) Corp. | | June 27, 2006 | | Racine | | 2010 | | 6,500 | Expresscarrier (No. 1) Corp. | | March 5, 2007 | | YM Mandate | | 2010 | | 6,500 | Expresscarrier (No. 2) Corp. | | March 5, 2007 | | YM Maturity | | 2010 | | 6,500 | Actaea Company Limited | | October 14, 2014 | | Savannah | | 2002 | | 6,402 | Asteria Shipping Company Limited | | October 14, 2014 | | Dimitra C | | 2002 | | 6,402 | Boxsail (No. 3) Corp. | | March 4, 2022 | | Phoebe(2) | | 2025 | | 6,014 | Boxsail (No. 4) Corp. | | March 4, 2022 | | Greenhouse(2) | | 2025 | | 6,014 | Averto Shipping S.A. | | June 12, 2015 | | Suez Canal | | 2002 | | 5,610 | Sinoi Marine Ltd. | | June 12, 2015 | | Kota Lima | | 2002 | | 5,544 | Oceancarrier (No. 4) Corp. | | July 6, 2021 | | Wide Alpha | | 2014 | | 5,466 | Oceancarrier (No. 5) Corp. | | July 6, 2021 | | Stephanie C | | 2014 | | 5,466 | Oceancarrier (No. 6) Corp. | | July 6, 2021 | | Euphrates | | 2014 | | 5,466 | Oceancarrier (No. 7) Corp. | | July 6, 2021 | | Wide Hotel | | 2015 | | 5,466 | Oceancarrier (No. 8) Corp. | | July 6, 2021 | | Wide India | | 2015 | | 5,466 | Oceancarrier (No. 9) Corp. | | July 6, 2021 | | Wide Juliet | | 2015 | | 5,466 | Continent Marine Inc. | | March 22, 2006 | | Monaco | | 2009 | | 4,253 | Medsea Marine Inc. | | May 8, 2006 | | Dalian | | 2009 | | 4,253 | Blacksea Marine Inc. | | May 8, 2006 | | Jamaica (ex Luanda) | | 2009 | | 4,253 | Bayview Shipping Inc. | | March 22, 2006 | | Rio Grande | | 2008 | | 4,253 | Channelview Marine Inc. | | March 22, 2006 | | Merve A (tbr Paolo) | | 2008 | | 4,253 | Balticsea Marine Inc. | | March 22, 2006 | | Kingston | | 2008 | | 4,253 | Seacarriers Services Inc. | | June 28, 2005 | | Seattle C | | 2007 | | 4,253 | Seacarriers Lines Inc. | | June 28, 2005 | | Vancouver | | 2007 | | 4,253 | Containers Services Inc. | | May 30, 2002 | | Tongala | | 2004 | | 4,253 | Containers Lines Inc. | | May 30, 2002 | | Derby D | | 2004 | | 4,253 | Boulevard Shiptrade S.A | | September 12, 2013 | | Dimitris C | | 2001 | | 3,430 | Wellington Marine Inc. | | January 27, 2005 | | Singapore | | 2004 | | 3,314 | Auckland Marine Inc. | | January 27, 2005 | | Colombo | | 2004 | | 3,314 | CellContainer (No. 4) Corp. | | March 23, 2007 | | Express Spain | | 2011 | | 3,400 | CellContainer (No. 5) Corp. | | March 23, 2007 | | Express Black Sea | | 2011 | | 3,400 | CellContainer (No. 1) Corp. | | March 23, 2007 | | Express Argentina | | 2010 | | 3,400 | CellContainer (No. 2) Corp. | | March 23, 2007 | | Express Brazil | | 2010 | | 3,400 | CellContainer (No. 3) Corp. | | March 23, 2007 | | Express France | | 2010 | | 3,400 | Vilos Navigation Company Ltd. | | May 30, 2013 | | Zebra | | 2001 | | 2,602 | Sarond Shipping Inc. | | January 18, 2013 | | Artotina | | 2001 | | 2,524 | Speedcarrier (No. 7) Corp. | | December 6, 2007 | | Highway | | 1998 | | 2,200 | Speedcarrier (No. 6) Corp. | | December 6, 2007 | | Progress C | | 1998 | | 2,200 | Speedcarrier (No. 8) Corp. | | December 6, 2007 | | Bridge | | 1998 | | 2,200 | Speedcarrier (No. 1) Corp. | | June 28, 2007 | | Phoenix D | | 1997 | | 2,200 | Speedcarrier (No. 2) Corp. | | June 28, 2007 | | Advance | | 1997 | | 2,200 | Speedcarrier (No. 5) Corp. | | June 28, 2007 | | Future | | 1997 | | 2,200 | Speedcarrier (No. 4) Corp. | | June 28, 2007 | | Sprinter | | 1997 | | 2,200 | | | | | | | Total TEU | | 477,491 |
| (1) | Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity. |
| (2) | The vessels Phoebe and Greenhouse were delivered to the Company in 2025. |
1. | Basis of Presentation and General Information (Continued) |
Under construction container vessels as of June 30, 2026: | | | | | | | | | | | | | | | Expected | | | Company | | Date of Incorporation | | Hull No. | | Delivery (2) | | TEU (1) | Boxline (No. 1) Corp. | | June 7, 2023 | | YZJ2023-1556 (6) | | Q3 2026 | | 8,258 | Boxline (No. 2) Corp. | | June 7, 2023 | | YZJ2023-1557 | | Q3 2026 | | 8,258 | Boxline (No. 3) Corp. | | February 2, 2024 | | YZJ2024-1612 | | Q3 2026 | | 8,258 | Boxsail (No. 5) Corp. | | June 13, 2024 | | C9200-7 | | Q1 2027 | | 9,200 | Boxsail (No. 6) Corp. | | June 13, 2024 | | C9200-8 | | Q2 2027 | | 9,200 | Boxline (No. 8) Corp | | June 6, 2025 | | CV5900-09 | | Q2 2027 | | 6,014 | Boxline (No. 4) Corp. | | February 2, 2024 | | YZJ2024-1613 | | Q2 2027 | | 8,258 | Boxline (No. 5) Corp. | | March 8, 2024 | | YZJ2024-1625 | | Q2 2027 | | 8,258 | Conbulk Newb I Inc. (4) | | January 14, 2026 | | NGY0041 (5) | | Q2 2027 | | 5,000 | Conbulk Newb II Inc. (4) | | January 14, 2026 | | NGY0042 (5) | | Q3 2027 | | 5,000 | Boxline (No. 6) Corp. | | March 8, 2024 | | YZJ2024-1626 | | Q3 2027 | | 8,258 | Boxline (No. 7) Corp. | | May 30, 2024 | | YZJ2024-1668 | | Q3 2027 | | 8,258 | Boxsail (No. 10) Corp. | | June 13, 2024 | | H2596 | | Q3 2027 | | 9,200 | Boxline (No. 9) Corp. | | July 25, 2025 | | C7100-9 | | Q3 2027 | | 7,165 | Boxline (No. 10) Corp. | | August 26, 2025 | | C7100-10 | | Q3 2027 | | 7,165 | Boxsail (No. 7) Corp. | | June 13, 2024 | | C9200-9 | | Q4 2027 | | 9,200 | Boxsail (No. 11) Corp. | | June 13, 2024 | | H2597 | | Q4 2027 | | 9,200 | Boxline (No. 11) Corp. | | November 24, 2025 | | S1162 | | Q4 2027 | | 1,800 | Boxline (No. 12) Corp. | | November 24, 2025 | | S1163 | | Q1 2028 | | 1,800 | Boxsail (No. 8) Corp. | | June 13, 2024 | | C9200-10 | | Q2 2028 | | 9,200 | Boxline (No. 13) Corp. | | November 24, 2025 | | S1164 | | Q2 2028 | | 1,800 | Boxsail (No. 9) Corp. | | June 13, 2024 | | C9200-11 | | Q3 2028 | | 9,200 | Boxline (No. 14) Corp. | | November 24, 2025 | | S1165 | | Q3 2028 | | 1,800 | Boxline (No. 15) Corp. | | November 24, 2025 | | S1166 | | Q4 2028 | | 1,800 | Boxsail (No. 12) Corp. | | December 3, 2025 | | H2638 | | Q4 2028 | | 5,300 | Boxline (No. 16) Corp. | | November 24, 2025 | | S1167 | | Q1 2029 | | 1,800 | Boxsail (No. 13) Corp. | | December 3, 2025 | | H2639 | | Q1 2029 | | 5,300 | Boxsail (No. 14) Corp. | | December 3, 2025 | | H2640 (3) | | Q1 2029 | | 5,300 | Boxsail (No. 15) Corp. | | December 3, 2025 | | H2641 (3) | | Q2 2029 | | 5,300 | | | | | | | Total TEU | | 184,550 |
| (1) | Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity. |
| (2) | Under construction container vessels’ expected delivery dates were sorted based on the upcoming deliveries. |
| (3) | Under construction containership vessels were added to our orderbook in the first quarter of 2026. |
| (4) | The Company owns 95% of the equity interests. |
| (5) | Under construction containership vessels were added to our orderbook in the second quarter of 2026. |
| (6) | The vessel under construction was delivered to the Company in July 2026, and was named Santorini Express (Note 18). |
Operating Capesize drybulk carrier vessels as of June 30, 2026: | | | | | | | | | Company | | Date of Incorporation | | Vessel Name | | Year Built (2) | | DWT (1) | Bulk No. 4 Corp. | | July 14, 2023 | | Genius | | 2012 | | 175,580 | Bulk No. 2 Corp. | | July 14, 2023 | | Achievement | | 2011 | | 175,966 | Bulk No. 3 Corp. | | July 14, 2023 | | Ingenuity | | 2011 | | 176,022 | Bulk No. 8 Corp. | | January 31, 2024 | | Danaos | | 2011 | | 176,536 | Bulk No. 10 Corp. | | February 15, 2024 | | Valentine | | 2011 | | 175,125 | Bulk No. 1 Corp. | | July 14, 2023 | | Integrity | | 2010 | | 175,966 | Bulk No. 5 Corp. | | July 14, 2023 | | Peace | | 2010 | | 175,858 | Bulk No. 9 Corp. | | February 2, 2024 | | Gouverneur | | 2010 | | 178,043 | Bulk No. 6 Corp. | | September 15, 2023 | | W Trader | | 2009 | | 175,879 | Bulk No. 7 Corp. | | September 25, 2023 | | E Trader | | 2009 | | 175,886 | Bulk No. 11 Corp. | | October 6, 2025 | | John Junior (ex. Hebei No.1) (3) | | 2009 | | 182,425 | | | | | | | Total DWT | | 1,943,286 |
| (1) | DWT, dead weight tons, the international standard measure for drybulk vessels capacity. |
| (2) | Capesize drybulk carrier vessels are sorted by their year built, from newest to oldest. |
| (3) | The vessel was delivered to the Company in March 2026 (Note 3). |
1. | Basis of Presentation and General Information (Continued) |
Under construction Newcastlemax drybulk vessels as of June 30, 2026: | | | | | | | | | | | | | | | Expected | | | Company | | Date of Incorporation | | Hull No. | | Delivery (2) | | DWT (1) | Bulk No.12 Corp. | | October 7, 2025 | | DJCFD010 (3) | | Q2 2028 | | 211,000 | Bulk No.14 Corp. | | February 16, 2026 | | DJCFD016 (3) | | Q3 2028 | | 211,000 | Bulk No.13 Corp. | | January 27, 2026 | | DJCFD011 (3) | | Q4 2028 | | 211,000 | Bulk No.15 Corp. | | February 16, 2026 | | DJCFD017 (3) | | Q4 2028 | | 211,000 | | | | | | | Total DWT | | 844,000 |
| (1) | DWT, dead weight tons, the international standard measure for drybulk vessels capacity. |
| (2) | Under construction drybulk vessels’ expected delivery dates were sorted based on the upcoming deliveries. |
| (3) | Under construction drybulk vessels were added to our orderbook in the first quarter of 2026. |
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