Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2024

Commission File Number 001-41095

IMPERIAL PETROLEUM INC.

(Translation of registrant’s name into English)

331 Kifissias Avenue Erithrea 14561 Athens, Greece

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this report on Form 6-K as Exhibit 99.1 is a copy of the press release of Imperial Petroleum Inc. dated August 27, 2024, announcing its financial and operating results for the three and six months ended June 30, 2024.

EXHIBIT INDEX


99.1		Imperial Petroleum Inc. Press Release dated August 27, 2024

*****

This report on Form 6-K (other than the section titled “CEO Harry Vafias Commented”) is hereby incorporated by reference into the Company’s Registration Statement on Form F 3 (Reg. No. 333-268663), Post Effective Amendment No. 1 to Form F-1 on Form F-3 Registration Statement (Reg. No. 333-266031) and Registration Statements on Form S-8 (Reg. Nos. 333-275745 and 333-278813), including the prospectuses contained therein.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 28, 2024


IMPERIAL PETROLEUM INC.

By:		/s/ Ifigenia Sakellari
Name:		Ifigenia Sakellari
Title:		Chief Financial Officer

Exhibit 99.1

LOGO

IMPERIAL PETROLEUM INC.

IMPERIAL PETROLEUM INC. REPORTS SECOND QUARTER AND SIX MONTHS 2024 FINANCIAL AND OPERATING RESULTS

ATHENS, GREECE, August 27, 2024 - IMPERIAL PETROLEUM INC. (NASDAQ: IMPP, the “Company”), a ship-owning company providing petroleum products, crude oil and dry bulk seaborne transportation services, announced today its unaudited financial and operating results for the second quarter and six months ended June 30, 2024.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

•

Fleet operational utilization of 80.9% in Q2 24’- a stable performance when compared to the 80.6% utilization achieved in Q1 24’. In Q2 23’ our operational utilization was lower in the order of 75.4%.

•

79.5% of fleet calendar days equivalent to 744 days in Q2 24’ were dedicated to spot activity.

•

Delivery from an affiliated entity of the handysize drybulk carrier, the Neptulus (2012 built), on August 24, 2024

•

Revenues of $47.0 million in Q2 24’ compared to $41.2 million in Q1 24’ equivalent to a 14.1% rise- and $59.0 million of revenues in Q2 23’.

•

Net income of $19.5 million in Q2 24’- our second best performance thus far- up by $2.8 million when compared to Q1 24’ and $2.7 million when compared to Q2 23’.

•

Cash and cash equivalents including time deposits of $129.8 million as of June 30, 2024.

•

Receipt of $39 million due from C3is Inc on July 15th 2024, an amount owed from the sale of the aframax tanker Afrapearl II, thus enabling our current cash balance to climb at almost $190 million.

•

An aggregate of 4.3 million common shares were issued upon the exercise of Class E Warrants in the second quarter and the third quarter to date.

Second Quarter 2024 Results:

•

Revenues for the three months ended June 30, 2024 amounted to $47.0 million, a decrease of $12.0 million, or 20.3%, compared to revenues of $59.0 million for the three months ended June 30, 2023, primarily due to a decrease in voyage days by 11.7% (122 days) attributed mainly to the decrease of our average fleet by 1.5 vessels and a decrease of tanker market rates particularly for the suezmax tankers when compared to the same period of last year.

•

Voyage expenses and vessels’ operating expenses for the three months ended June 30, 2024 were $17.1 million and $6.5 million, respectively, compared to $19.3 million and $7.0 million, respectively, for the three months ended June 30, 2023. The $2.2 million decrease in voyage expenses is mainly attributed to a decline in our daily port expenses by approximately $2,200 due to decreased transit through Suez Canal, partially offset by an increase in our daily bunker costs by approximately $800. The $0.5 million decrease in vessels’ operating expenses was primarily due to the decrease of our fleet by an average of 1.5 vessels.

•

Drydocking costs for the three months ended June 30, 2024 and 2023 were nil and $0.7 million, respectively. During three months ended June 30, 2023 one of our Handysize drybulk carriers the Eco Glorieuse underwent drydocking.

•

General and administrative costs for the three months ended June 30, 2024 and 2023 were $1.5 million and $1.5 million, respectively.

•

Depreciation for the three months ended June 30, 2024 and 2023 was $4.2 million and $4.6 million, respectively. The change is attributable to the decrease in the average number of our vessels.

•

Other operating income for the three months ended June 30, 2024 was $1.9 million and related to the collection of a claim in in connection with repairs undertaken in prior years.

•

Net loss on sale of vessel for the three months ended June 30, 2024 was $1.6 million and related to the sale of the Aframax tanker Gstaad Grace II to a third party.

•

Impairment loss for the three months ended June 30, 2023 stood at $9.0 million, and related to the spin-off of two of our drybulk carriers to C3is Inc. The decline of drybulk vessels’ fair values, at the time of the spin off, compared to one year before when these vessels were acquired resulted in the incurrence of the impairment loss.

•

Interest and finance costs for the three months ended June 30, 2024 and 2023 were $0.006 million and $0.5 million, respectively. During the three months ended June 30, 2023 the Company repaid all of its outstanding debt whereas there is no debt during the three months ended June 30, 2024. The $0.5 million charges for the three months ended June 30, 2023 relate mainly to the full amortization of loan related charges following the repayment of the Company’s outstanding debt.

•

Interest income for the three months ended June 30, 2024 and 2023 was $2.0 million and $0.9 million, respectively. The increase is mainly attributed to the $0.8 million of accrued interest income – related party for the three months ended June 30, 2024 in connection with the $38.7 million of the sale price of the Aframax tanker Afrapearl II (ex. Stealth Berana) which was collected in July 2024.

•

As a result of the above, for the three months ended June 30, 2024, the Company reported net income of $19.5 million, compared to net income of $16.8 million for the three months ended June 30, 2023. Dividends paid on Series A Preferred Shares amounted to $0.4 million for the three months ended June 30, 2024. The weighted average number of shares of common stock outstanding, basic, for the three months ended June 30, 2024 was 28.0 million. Earnings per share, basic and diluted, for the three months ended June 30, 2024 amounted to $0.64 and $0.56, respectively, compared to earnings per share, basic and diluted, of $0.91 and $0.73, respectively for the three months ended June 30, 2023.

•

Adjusted net income¹ was $22.2 million corresponding to an Adjusted EPS¹, basic of $0.73 for the three months ended June 30, 2024 compared to an Adjusted net income of $26.6 million corresponding to an Adjusted EPS, basic, of $1.46 for the same period of last year.

•

EBITDA¹ for the three months ended June 30, 2024 amounted to $21.8 million, while Adjusted EBITDA¹ for the three months ended June 30, 2024 amounted to $24.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.

•

An average of 10.3 vessels were owned by the Company during the three months ended June 30, 2024 compared to 11.8 vessels for the same period of 2023.

Six Months 2024 Results:

•

Revenues for the six months ended June 30, 2024 amounted to $88.2 million, a decrease of $36.3 million, or 29.2%, compared to revenues of $124.5 million for the six months ended June 30, 2023, primarily due to a year to date decline of daily suezmax freight rates by almost 25%.

•

Voyage expenses and vessels’ operating expenses for the six months ended June 30, 2024 were $30.6 million and $12.5 million, respectively, compared to $36.1 million and $13.9 million, respectively, for the six months ended June 30, 2023. The $5.5 million decrease in voyage expenses is mainly attributed to decreased port expenses by approximately $3.0 million due to decreased transit through Suez Canal and decreased voyage commissions by approximately $1.1 in conjunction with lower freight rates. The $1.4 million decrease in vessels’ operating expenses was primarily due to the decrease in the average number of vessels in our fleet.

•

Drydocking costs for the six months ended June 30, 2024 and 2023 were $0.6 million and $1.3 million, respectively. This decrease is due to the fact that during the six months ended June 30, 2024 one tanker vessel underwent drydocking while in the same period of last year two of our Handysize drybulk carriers underwent drydocking.

•

General and administrative costs for the six months ended June 30, 2024 and 2023 were $2.7 million and $2.5 million, respectively. This change is mainly attributed to the increase in stock-based compensation costs, partly offset by a reduction in reporting expenses due to the spin-off of C3is Inc. which was completed in June 2023.

•

Depreciation for the six months ended June 30, 2024 was $8.2 million, a $0.5 million decrease from $8.7 million for the same period of last year, due to the decrease in the average number of our vessels.

•

Other operating income for the six months ended June 30, 2024 was $1.9 million and related to the collection of a claim in connection with repairs undertaken in prior years.

•

Net loss on sale of vessel for the six months ended June 30, 2024 was $1.6 million and related to the sale of the Aframax tanker Gstaad Grace II to a third party.

•

Impairment loss for the six months period ended June 30, 2023 stood at $9.0 million, and related to the spin-off of two of four drybulk carriers to C3is Inc. The decline of drybulk vessels’ fair values, at the time of the spin off, compared to one year before when these vessels were acquired resulted in the incurrence of impairment loss.

•

Interest and finance costs for the six months ended June 30, 2024 and 2023 were $0.008 million and $1.8 million, respectively. The $1.8 million of costs for the six months ended June 30, 2023 relate mainly to $1.3 million of interest charges incurred up to the full repayment of all outstanding loans concluded in April 2023 along with the full amortization of $0.5 million of loan related charges following the repayment of the Company’s outstanding debt.

•

Interest income for the six months ended June 30, 2024 and 2023 was $3.8 million and $2.1 million, respectively. The increase is mainly attributed to 1.5mil of accrued interest income – related party for the six months ended June 30, 2024 in connection with the $38.7 million of the sale price of the Aframax tanker Afrapearl II (ex. Stealth Berana) which was receivable by July 2024.

•

As a result of the above, the Company reported net income for the six months ended June 30, 2024 of $36.2 million, compared to a net income of $52.6 million for the six months ended June 30, 2023. The weighted average number of shares outstanding, basic, for the six months ended June 30, 2024 was 27.8 million. Earnings per share, basic and diluted,for the six months ended June 30, 2024 amounted to $1.20 and $1.06, respectively compared to earnings per share, basic and diluted, of $3.17 and $2.78 for the six months ended June 30, 2023.

•

Adjusted Net Income was $39.7 million corresponding to an Adjusted EPS, basic of $1.32 for the six months ended June 30, 2024 compared to adjusted net income of $62.6 million, or $3.79 EPS, basic, for the same period of last year.

•

EBITDA for the six months ended June 30, 2024 amounted to $40.6 million while Adjusted EBITDA for the six months ended June 30, 2024 amounted to $44.1 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.

•

An average of 10.1 vessels were owned by the Company during the six months ended June 30, 2024 compared to 10.9 vessels for the same period of 2023.

•

As of June 30, 2024, cash and cash equivalents including time deposits amounted to $129.8 million and total debt amounted to nil.

¹	EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

Fleet Employment Table

As of August 27, 2024, the profile and deployment of our fleet is the following:

Name

Year
Built

Country
Built

Vessel Size
(dwt)

Vessel
Type

Employment
Status

Expiration of
Charter(1)

Tankers

Magic Wand

2008

Korea

47,000

MR product tanker

Spot

Clean Thrasher

2008

Korea

47,000

MR product tanker

Spot

Clean Sanctuary (ex. Falcon Maryam)

2009

Korea

46,000

MR product tanker

Spot

Clean Nirvana

2008

Korea

50,000

MR product tanker

Spot

Clean Justice

2011

Japan

46,000

MR product tanker

Time Charter

August 2027

Aquadisiac

2008

Korea

51,000

MR product tanker

Spot

Suez Enchanted

2007

Korea

160,000

Suezmax tanker

Spot

Suez Protopia

2008

Korea

160,000

Suezmax tanker

Spot

Drybulk Carriers

Eco Wildfire

2013

Japan

33,000

Handysize drybulk

Time Charter

August 2024

Glorieuse

2012

Japan

38,000

Handysize drybulk

Time Charter

September 2024

Neptulus

2012

Japan

33,000

Handysize drybulk

Time Charter

August 2024

Fleet Total

711,000 dwt

(1)	Earliest date charters could expire.

CEO Harry Vafias Commented

In Q2 24 we managed to turn a typically weak seasonal period to our second most profitable quarter thus far, as we generated a net profit of $19.5 million. Our excellent performance was mostly leveraged by our product tankers that were strategically situated West of Suez where market for these vessels remained tight. We enjoy recurring profitable quarters a very strong cash base which currently stands close to $190 million and as we repeatedly stress, zero leverage. This gives us plenty of flexibility to grow further. We remain significantly undervalued as our market capitalization is even lower than our cash but are confident that gradually we will see an appreciation to our share price, driven by our recurring strong results.

Conference Call details:

On August 27, 2024 at 11:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

Online Registration:

Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

https://register.vevent.com/register/BI4888ca9812574a5fb23bfdfa933b77d6

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the IMPERIAL PETROLEUM INC. website (www.ImperialPetro.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About IMPERIAL PETROLEUM INC.

IMPERIAL PETROLEUM INC. is a ship-owning company providing petroleum products, crude oil and drybulk seaborne transportation services. The Company owns a total of twelve vessels, eleven vessels in the water - six M.R. product tankers, two suezmax tankers and three handysize drybulk carriers - with a total capacity of 711,000 deadweight tons (dwt), and one M.R product tanker of 40,000 dwt capacity, that will be delivered in the fourth quarter of 2024. IMPERIAL PETROLEUM INC.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP,” respectively.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although IMPERIAL PETROLEUM INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the impact of any lingering impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in IMPERIAL PETROLEUM INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, performance of counterparty to our vessel sale agreement, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange Commission.

Fleet List and Fleet Deployment

For information on our fleet and further information:

Visit our website at www.ImperialPetro.com

Company Contact:

Fenia Sakellaris

IMPERIAL PETROLEUM INC.

E-mail: info@ImperialPetro.com

Fleet Data:

The following key indicators highlight the Company’s operating performance during the periods ended June 30, 2023 and June 30, 2024.


FLEET DATA	Q2 2023			Q2 2024			6M 2023			6M 2024
Average number of vessels (1)		11.8			10.3			10.9			10.1
Period end number of owned vessels in fleet		10			10			10			10
Total calendar days for fleet (2)		1,072			936			1,981			1,831
Total voyage days for fleet (3)		1,044			922			1,947			1,800
Fleet utilization (4)		97.4	%		98.5	%		98.3	%		98.3	%
Total charter days for fleet (5)		310			178			718			385
Total spot market days for fleet (6)		734			744			1,229			1,415
Fleet operational utilization (7)		75.4	%		80.9	%		79.8	%		80.7	%

1)	Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2)	Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3)	Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4)	Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5)	Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

6)	Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

7)	Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income before impairment loss, net loss on sale of vessel and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net loss on sale of vessel and share based compensation.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.


(Expressed in United States Dollars, except number of shares)	Second Quarter Ended June 30th,						Six Months Period Ended June 30th,
	2023			2024			2023			2024
Net Income - Adjusted Net Income
Net income		16,826,485			19,524,438			52,550,587			36,179,042
Plus net loss on sale of vessel		—			1,589,702			—			1,589,702
Plus impairment loss		8,996,023			—			8,996,023			—
Plus share based compensation		789,648			1,036,562			1,091,189			1,895,372
Adjusted Net Income		26,612,156			22,150,702			62,637,799			39,664,116
Net income - EBITDA
Net income		16,826,485			19,524,438			52,550,587			36,179,042
Plus interest and finance costs		459,166			5,797			1,810,769			8,227
Less interest income		(851,930	)		(1,987,726	)		(2,131,146	)		(3,773,604	)
Plus depreciation		4,601,209			4,208,008			8,690,061			8,235,069
EBITDA		21,034,930			21,750,517			60,920,271			40,648,734
Net income - Adjusted EBITDA
Net income		16,826,485			19,524,438			52,550,587			36,179,042
Plus net loss on sale of vessel		—			1,589,702			—			1,589,702
Plus impairment loss		8,996,023			—			8,996,023			—
Plus share based compensation		789,648			1,036,562			1,091,189			1,895,372
Plus interest and finance costs		459,166			5,797			1,810,769			8,227
Less interest income		(851,930	)		(1,987,726	)		(2,131,146	)		(3,773,604	)
Plus depreciation		4,601,209			4,208,008			8,690,061			8,235,069
Adjusted EBITDA		30,820,601			24,376,781			71,007,483			44,133,808
EPS
Numerator
Net income		16,826,485			19,524,438			52,550,587			36,179,042
Less: Cumulative dividends on preferred shares		(620,246	)		(435,246	)		(1,055,494	)		(870,492	)
Less: Undistributed earnings allocated to non-vested shares		(856,309	)		(1,137,477	)		(977,828	)		(1,985,920	)
Net income attributable to common shareholders, basic		15,349,930			17,951,715			50,517,265			33,322,630
Denominator
Weighted average number of shares		16,816,597			27,965,872			15,940,369			27,789,766
EPS - Basic		0.91			0.64			3.17			1.20
Adjusted EPS
Numerator
Adjusted net income		26,612,156			22,150,702			62,637,799			39,664,116
Less: Cumulative dividends on preferred shares		(620,246	)		(435,246	)		(1,055,494	)		(870,492	)
Less: Undistributed earnings allocated to non-vested shares		(1,373,366	)		(1,293,969	)		(1,169,371	)		(2,181,937	)
Adjusted net income attributable to common shareholders, basic		24,618,544			20,421,487			60,412,934			36,611,687
Denominator
Weighted average number of shares		16,816,597			27,965,872			15,940,369			27,789,766
Adjusted EPS		1.46			0.73			3.79			1.32

Imperial Petroleum Inc.

Unaudited Consolidated Statements of Income

(Expressed in United States Dollars, except for number of shares)


	Quarters Ended June 30,						Six Month Periods Ended June 30,
	2023			2024			2023			2024
Revenues
Revenues		59,044,221			47,041,881			124,465,322			88,245,162
Expenses
Voyage expenses		18,522,418			16,524,695			34,600,245			29,488,302
Voyage expenses - related party		736,269			587,970			1,546,799			1,102,384
Vessels’ operating expenses		6,885,309			6,389,255			13,761,185			12,340,816
Vessels’ operating expenses - related party		89,333			77,500			154,333			159,500
Drydocking costs		696,934			—			1,318,310			625,457
Management fees – related party		473,880			411,840			871,640			805,640
General and administrative expenses		1,487,436			1,476,204			2,466,405			2,683,372
Depreciation		4,601,209			4,208,008			8,690,061			8,235,069
Other operating income		—			(1,900,000	)		—			(1,900,000	)
Impairment loss		8,996,023			—			8,996,023			—
Net loss on sale of vessel		—			1,589,702			—			1,589,702

Total expenses		42,448,811			29,359,174			72,405,001			55,130,242

Income from operations		16,555,410			17,676,707			52,060,321			33,114,920

Other (expenses)/income
Interest and finance costs		(459,166	)		(5,797	)		(1,810,769	)		(8,227	)
Interest income		851,930			1,221,907			2,131,146			2,257,168
Interest income – related party		—			765,819			—			1,516,436
Dividend income from related party		20,833			189,584			20,833			379,167
Foreign exchange (loss)/gain		(142,522	)		(323,782	)		149,056			(1,080,422	)

Other income, net		271,075			1,847,731			490,266			3,064,122

Net Income		16,826,485			19,524,438			52,550,587			36,179,042

Earnings per share¹
- Basic		0.91			0.64			3.17			1.20

- Diluted		0.73			0.56			2.78			1.06

Weighted average number of shares
-Basic		16,816,597			27,965,872			15,940,369			27,789,766

-Diluted		21,366,486			32,069,815			18,304,134			31,515,129

Imperial Petroleum Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)


	December 31,			June 30,
	2023			2024
Assets
Current assets
Cash and cash equivalents		91,927,512			69,738,832
Time deposits		32,099,810			60,012,100
Receivables from related parties		37,906,821			39,552,371
Trade and other receivables		13,498,813			18,538,547
Other current assets		302,773			637,833
Inventories		7,291,123			8,706,419
Advances and prepayments		161,937			604,824

Total current assets		183,188,789			197,790,926

Non current assets
Operating lease right-of-use asset		—			114,912
Vessels, net		180,847,252			201,878,424
Investment in related party		12,798,500			12,796,417

Total non current assets		193,645,752			214,789,753

Total assets		376,834,541			412,580,679

Liabilities and Stockholders’ Equity
Current liabilities
Trade accounts payable		8,277,118			5,568,261
Payable to related parties		2,324,334			3,476,164
Accrued liabilities		3,008,500			3,208,264
Operating lease liability, current portion		—			72,704
Deferred income		919,116			1,408,181

Total current liabilities		14,529,068			13,733,574

Non current liabilities
Operating lease liability, non-current portion		—			42,208

Total non current liabilities		—			42,208

Total liabilities		14,529,068			13,775,782

Commitments and contingencies
Stockholders’ equity
Capital stock		332,573			345,835
Preferred Stock, Series A		7,959			7,959
Preferred Stock, Series B		160			160
Treasury stock		(5,885,727	)		(8,390,225	)
Additional paid-in capital		270,242,635			273,924,745
Retained earnings		97,607,873			132,916,423

Total stockholders’ equity		362,305,473			398,804,897

Total liabilities and stockholders’ equity		376,834,541			412,580,679

Imperial Petroleum Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars


	Six Month Periods Ended June 30,
	2023			2024
Cash flows from operating activities
Net income for the period		52,550,587			36,179,042
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		8,690,061			8,235,069
Amortization of deferred finance charges		474,039			—
Non-cash lease expense		31,349			35,086
Share based compensation		1,091,189			1,895,372
Impairment loss		8,996,023			—
Net loss on sale of vessel		—			1,589,702
Unrealized foreign exchange loss on time deposits		—			773,620
Dividend income from related party		(20,833	)		(379,167	)
Changes in operating assets and liabilities:
(Increase)/decrease in
Trade and other receivables		(3,360,823	)		(5,039,734	)
Other current assets		(136,130	)		(335,060	)
Inventories		(2,062,365	)		(1,415,296	)
Changes in operating lease liabilities		(31,349	)		(35,086	)
Advances and prepayments		(373,262	)		(442,887	)
Due from related parties		(42,042	)		(1,645,550	)
Increase/(decrease) in
Trade accounts payable		500,001			(1,861,518	)
Due to related parties		(2,709,982	)		1,058,531
Accrued liabilities		1,020,949			199,764
Deferred income		(801,066	)		489,065

Net cash provided by operating activities		63,816,346			39,300,953

Cash flows from investing activities
Dividends income received		—			381,250
Proceeds from sale of vessel, net		—			41,153,578
Acquisition and improvement of vessels		(26,284,405	)		(72,856,860	)
Increase in bank time deposits		(61,912,900	)		(91,715,140	)
Maturity of bank time deposits		68,000,000			63,029,230	)

Net cash used in investing activities		(20,197,305	)		(60,007,942	)

Cash flows from financing activities
Proceeds from equity offerings		12,095,253			—
Proceeds from warrants exercise		—			1,800,000
Stock issuance costs		(198,587	)		—
Stock repurchase		—			(2,504,498	)
Dividends paid on preferred shares		(870,494	)		(777,193	)
Loan repayments		(70,438,500	)		—
Cash retained by C3is Inc. at spin-off		(5,000,000	)		—

Net cash used in financing activities		(64,412,328	)		(1,481,691	)

Net decrease in cash and cash equivalents		(20,793,287	)		(22,188,680	)
Cash and cash equivalents at beginning of period		57,506,919			91,927,512

Cash and cash equivalents at end of period		36,713,632			69,738,832

Cash breakdown
Cash and cash equivalents		36,713,632			69,738,832

Total cash and cash equivalents shown in the statements of cash flows		36,713,632			69,738,832

Supplemental Cash Flow Information
Interest paid		1,735,054			—
Non-cash investing activity - Vessels’ improvements included in liabilities		322,527			11,981
Non-cash investing activity – Dividend income from related party included in Investment in related party		—			160,417
Non-cash financing activity – Dividends declared on Preferred Shares Series C included in Balances with related parties		185,000			—
Non-cash financing activity – Dividend on preferred series A included in payables to related parties		—			93,299
Distribution of net assets of C3is Inc. to shareholders and warrantholders		20,957,952			—