EuroDry Ltd. Files 20-F Annual Report for Fiscal Year 2023

TL;DR

<b>EuroDry Ltd. has submitted its 2023 annual report (20-F), detailing its financial structure and operations in the water transportation sector.</b>

AI Summary

EuroDry Ltd. (EDRY) filed a Foreign Annual Report (20-F) with the SEC on April 24, 2024. EuroDry Ltd. filed its 20-F annual report for the fiscal year ending December 31, 2023. The company's business address is 4 Messogiou & Evropis Street, Maroussi, J3, 151 24. EuroDry Ltd. is involved in Water Transportation, classified under SIC code 4400. The filing details various loan facilities, including a $26.7 million facility with Eurobank S.A. for M/V "Xenia" and M/V "Alexandros P.", drawn in January 2021. Another loan facility with HSBC Bank Plc. for M/V "Ekaterini" was drawn on April 30, 2018, for $18.4 million.

Why It Matters

For investors and stakeholders tracking EuroDry Ltd., this filing contains several important signals. The 20-F filing provides a comprehensive overview of EuroDry's financial health, debt structure, and operational assets for the fiscal year 2023, which is crucial for investors assessing the company's stability and future prospects. Details on significant loan facilities, such as the $26.7 million Eurobank S.A. facility and the $18.4 million HSBC Bank Plc. facility, offer insight into the company's leverage and its strategy for financing its fleet.

Risk Assessment

Risk Level: medium — EuroDry Ltd. shows moderate risk based on this filing. The company's reliance on significant loan facilities, some with balloon payments, indicates a medium level of financial risk associated with debt servicing and refinancing.

Analyst Insight

Investors should review the detailed debt covenants and repayment schedules within the 20-F filing to understand the company's financial obligations and potential risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the 20-F report)
• 2024-04-24 — Filing Date (Date the 20-F report was filed)
• $4.5 million — HSBC Loan (Eirini P) (Amount drawn on May 24, 2019)
• $26,700,000 — Eurobank S.A. Facility (Maximum amount available for refinancing and working capital)
• $18.4 million — HSBC Loan (Ekaterini) (Amount drawn on April 30, 2018)
• 2.75% — Interest Margin (Eurobank) (Margin over LIBOR for the Eurobank loan facility)
• 2.80% — Interest Margin (HSBC Ekaterini) (Margin over LIBOR for the HSBC loan facility for M/V "Ekaterini")
• 120% — Security Cover Ratio (Covenant for the Eurobank S.A. facility)

Key Players & Entities

• EuroDry Ltd. (company) — Filer of the 20-F report
• HSBC Bank Plc. (company) — Lender for M/V "Eirini P" and M/V "Ekaterini" loan facilities
• Sinopac Capital International (HK) Limited (company) — Provided a refinancing loan facility
• Eurobank S.A. (company) — Lender for M/V "Xenia" and M/V "Alexandros P." loan facility
• M/V "Eirini P" (company) — Vessel financed by an HSBC loan facility
• M/V "Xenia" (company) — Vessel financed by a Eurobank S.A. loan facility
• M/V "Alexandros P." (company) — Vessel financed by a Eurobank S.A. loan facility
• M/V "Ekaterini" (company) — Vessel financed by an HSBC loan facility

FAQ

Risk Factors

• Debt Obligations and Refinancing Risk [medium — financial]: The company utilizes significant loan facilities, some with substantial balloon payments, creating potential risks related to debt servicing and refinancing.

Key Financial Figures

• $0.01 — ge on which registered Common shares, $0.01 par value EDRY Nasdaq Capital Marke

Filing Documents

• edry20231231_20f.htm (20-F) — 2625KB
• ex_654403.htm (EX-4.3) — 210KB
• ex_656778.htm (EX-4.16) — 20KB
• ex_654425.htm (EX-4.17) — 1237KB
• ex_655025.htm (EX-4.18) — 266KB
• ex_655089.htm (EX-4.19) — 198KB
• ex_655105.htm (EX-4.20) — 305KB
• ex_655190.htm (EX-4.21) — 185KB
• ex_655314.htm (EX-4.22) — 24KB
• ex_655344.htm (EX-4.23) — 43KB
• ex_655392.htm (EX-4.24) — 26KB
• ex_655429.htm (EX-4.25) — 111KB
• ex_655480.htm (EX-4.26) — 1014KB
• ex_655405.htm (EX-4.27) — 173KB
• ex_654447.htm (EX-4.28) — 1101KB
• ex_654446.htm (EX-8.1) — 7KB
• ex_654445.htm (EX-12.1) — 9KB
• ex_654444.htm (EX-12.2) — 9KB
• ex_654443.htm (EX-13.1) — 4KB
• ex_654442.htm (EX-13.2) — 4KB
• ex_654441.htm (EX-15.1) — 2KB
• ex_656850.htm (EX-97.1) — 74KB
• calculationmethod.jpg (GRAPHIC) — 3KB
• dailyrate.jpg (GRAPHIC) — 1KB
• dailyrateformula.jpg (GRAPHIC) — 2KB
• inceandco.jpg (GRAPHIC) — 3KB
• incelogo.jpg (GRAPHIC) — 3KB
• sc8_cal2.jpg (GRAPHIC) — 3KB
• sc8_cal3.jpg (GRAPHIC) — 8KB
• sc8_cal.jpg (GRAPHIC) — 4KB
• sc9_cal1.jpg (GRAPHIC) — 6KB
• 0001171843-24-002177.txt (&nbsp;) — 15101KB
• edry-20231231.xsd (EX-101.SCH) — 79KB
• edry-20231231_cal.xml (EX-101.CAL) — 48KB
• edry-20231231_def.xml (EX-101.DEF) — 522KB
• edry-20231231_lab.xml (EX-101.LAB) — 449KB
• edry-20231231_pre.xml (EX-101.PRE) — 558KB
• edry20231231_20f_htm.xml (XML) — 1269KB

Item 18

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 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 to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No TABLE OF CONTENTS Page

Forward-Looking Statements

Forward-Looking Statements 1 Part I Item 1. Identity of Directors, Senior Management and Advisers 3 Item 2. Offer Statistics and Expected Timetable 3 Item 3. Key Information 3 Item 4. Information on the Company 41 Item 4A. Unresolved Staff Comments 62 Item 5. Operating and Financial Review and Prospects 62 Item 6. Directors, Senior Management and Employees 78 Item 7. Major Shareholders and Related Party Transactions 84 Item 8. Financial Information 88 Item 9. The Offer and Listing 89 Item 10. Additional Information 89 Item 11.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 101 Item 12.

Description of Securities Other than Equity Securities

Description of Securities Other than Equity Securities 103 Part II Item 13. Defaults, Dividend Arrearages and Delinquencies 103 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 103 Item 15.

Controls and Procedures

Controls and Procedures 103 Item 16A. Audit Committee Financial Expert 105 Item 16B. Code of Ethics 105 Item 16C. Principal Accountant Fees and Service 105 Item 16D. Exemptions from the Listing Standards for Audit Committees 105 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 105 Item 16F. Change in Registrant ' s Certifying Accountant 106 Item 16G. Corporate Governance 107 Item 16H. Mine Safety Disclosure 107 Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 107 Item 16J. Insider Trading Policies 107 Item 16K. Cybersecurity 107 Part III Item 17.

Financial Statements

Financial Statements 109 Item 18.

Financial Statements

Financial Statements 109 Item 19. Exhibits 109

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS EuroDry Ltd. and its subsidiaries, or the Company, desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. This annual report contains forward-looking statements. These forward-looking statements include information about possible or assumed future results of our operations or our performance. Words such as "expects," "intends," "plans," "believes," "anticipates," "estimates," and variations of such words and similar expressions are intended to identify the forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding: our future operating or financial results; future, pending or recent acquisitions, joint ventures, business strategy, areas of possible expansion, and expected capital spending or operating expenses; drybulk industry trends, including charter rates and factors affecting vessel supply and demand; fluctuations in our stock price as a result of volatility in securities markets; the impact of increasing scrutiny and changing expectations from investors, lenders, charterers and other market participants with respect to our Environmental, Social and Governance ("ESG") policies; our financial condition and liquidity, including our ability to obtain additional financing in the future to fund capital expenditures, acquisitions and ot

Risk Factors

Risk Factors Any investment in our common stock involves a high degree of risk. You should consider carefully the following factors, as well as the other information set forth in this annual report, before making an investment in our common stock. Some of the following risks relate principally to the industry in which we operate and our business in general. Other risks relate to the securities market for, and ownership of, our common stock. Any of the described risks could significantly and negatively affect our business, financial condition, operating results and common stock price. The following risk factors describe the material risks that are presently known to us. Risk Factors Summary The uncertainties in global and regional demand for dry bulk trade; The volatile drybulk shipping market and difficulty finding profitable charters for our vessels; Fluctuations in our stock price as a result of volatility in securities markets; The impact of the COVID-19 pandemic and resulting disruptions to the Company and the international shipping industry could negatively affect our business, results of operations or financial condition; Our ability to comply with various financial and collateral covenants in our credit facilities; Uncertainties related to the market value of our vessels; Uncertainties related to the supply and demand of drybulk vessels; 3 The impact of increasing scrutiny and changing expectations from investors, lenders, charterers and other market participants with respect to our ESG policies; Disruption of world trade due to rising protectionism or the breakdown of multilateral trade agreements; Disruptions in global financial markets relating to terrorist attacks or geopolitical risk and the ongoing conflict between Russia and Ukraine, the war between Israel and Hamas and trade disruption in the Red Sea region; Uncertainties related to conducting business in China; Our dependence on a limited number of customers; Our ability to enter in

View Full Filing

View this 20-F filing on SEC EDGAR