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Basis of presentation and general information

6 Months Ended

Jun. 30, 2022

Disclosure of subsidiaries [abstract]

Basis of presentation and general information

1.       Basis of presentation and general information

The accompanying unaudited interim condensed 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 the United Kingdom and its shares were admitted for trading on the Alternative Investment Market (“AIM”). On November 24, 2010, Globus was redomiciled to the Marshall Islands and its shares were admitted for trading in the United States (NASDAQ Global Market) under the Securities Act of 1933, as amended. On November 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 the transportation 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 has an office in Greece, located at 128 Vouliagmenis Avenue, 166 74 Glyfada, Greece and provides the commercial, technical, cash management and accounting services necessary for the operation of the fleet in exchange for a management fee. The management fee is eliminated on consolidation. The unaudited interim condensed consolidated financial statements include the financial statements of Globus and its subsidiaries listed below, all wholly owned by Globus as at June 30, 2022:

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 Globe

Domina Maritime Ltd. Marshall Islands May 19, 2010 m/v Sky Globe

Dulac Maritime S.A. Marshall Islands May 25, 2010 m/v Star Globe

Artful Shipholding S.A. Marshall Islands June 22, 2011 m/v Moon Globe

Longevity Maritime Limited Malta September 15, 2011 m/v Sun Globe

Serena Maritime Limited Marshall Islands October 29, 2020 m/v Galaxy Globe

Talisman Maritime Limited Marshall Islands July 20, 2021 m/v Power Globe

Argo Maritime Limited Marshall Islands June 9, 2021 m/v Diamond Globe

Calypso Shipholding S.A. Marshall Islands – Hull No: S-1885^*

Daxos Maritime Limited Marshall Islands – Hull No: NE-442^*

Olympia Shipholding S.A. Marshall Islands – –

Paralus Shipholding S.A. Marshall Islands – Hull No: NE-443^*

Salaminia Maritime Limited Marshall Islands November 29, 2021 m/v Orion Globe

* New building vessels

These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of the management, reflect all normal recurring adjustments considered necessary for a fair presentation of the Company’s comprehensive income / (loss), financial position and cash flows for the periods presented. Operating results for the six-month period ended June 30, 2022, are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2022.

The unaudited interim condensed consolidated financial statements as at and for the six months ended June 30, 2022, have been prepared in accordance with IAS 34 Interim Financial Reporting.

1. Basis of presentation and general information (continued)

The unaudited interim condensed consolidated financial statements presented in this report do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the consolidated financial statements as at December 31, 2021 and for the year then ended included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2021 (the “2021 Annual Report”).

Unless otherwise defined herein, capitalized words and expressions used herein shall have the same meanings ascribed to them in the 2021 Annual Report.

The unaudited interim condensed consolidated financial statements as at June 30, 2022 and for the six months then ended, were approved for issuance by the Board of Directors on September 5, 2022.

Going Concern basis of accounting:

As at December 31, 2021, the Company reported a working capital surplus of $37.8 million and was in compliance with its debt covenants.

As at June 30, 2022, the Company reported a working capital surplus of $40.8 million and was in compliance with the applicable covenants included in the loan agreement with First Citizens Bank & Trust Company (formerly known as CIT Bank N.A.).

The above conditions indicate that the Company is expected to be able to operate as a going concern and these consolidated financial statements were prepared under this assumption.

The conflict between Russia and Ukraine, which commenced in February 2022, has disrupted supply chains and caused instability and significant volatility in the global economy. Much uncertainty remains regarding the global impact of the conflict in Ukraine, and it is possible that such instability, uncertainty and resulting volatility could significantly increase the costs of the Company and adversely affect its business, including the ability to secure charters and financing on attractive terms, and as a result, adversely affect the Company’s business, financial condition, results of operation and cash flows. Currently there is no effect on the Company’s operations.

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 the global 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 and the results of its operations. As a result, many of the Company’s estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company’s estimates may change in future periods. Besides reducing demand for cargo, coronavirus may functionally limit the amount of cargo that the Company and its competitors are able to move because countries worldwide 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. As at June 30, 2022, no indicators of impairment or reversal of previously recognized impairment have been identified and the Company concluded that no impairment of its vessels should be recorded, or that previously recognized impairment should be reversed.