Pangaea Logistics Solutions Ltd 10-Q for FY2026 Q3
Pangaea Logistics Solutions Ltd. (PANL)
10-Q
2026-11-05
For: 2026-09-30
View Original
Added on
November 05, 2026
About this 10-Q
Pangaea Logistics Solutions Ltd filed this 10-Q on November 5, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $219.06M
- up 29.9% from $168.67M a year earlier
- Net income
- $38.26M
- up 213.4% from net income of $12.21M a year earlier
- Diluted EPS
- $0.59
- up 210.5% from $0.19 a year earlier
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended September 30, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission File Number: 001-36798
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
c/o Phoenix Bulk Carriers (US) LLC
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (401 ) 846-7790
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated Filer | ☐ | ☒ | ||||||||||||
| Non-accelerated Filer | ☐ | Smaller reporting company | ||||||||||||
| Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Common Stock, par value $0.0001 per share, 65,473,772 shares outstanding as of November 4, 2026.
TABLE OF CONTENTS
| Page | ||||||||
| PART I | FINANCIAL INFORMATION | |||||||
| Item 1. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| PART II | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
| Signatures | ||||||||
2
Pangaea Logistics Solutions Ltd.
Condensed Consolidated Balance Sheets (Unaudited)
(U.S. Dollars in thousands, except for share and per share data)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable (net of allowance of $ | |||||||||||
| Inventories | |||||||||||
| Advance hire, prepaid expenses and other current assets | |||||||||||
| Total current assets | |||||||||||
| Non Current assets | |||||||||||
| Restricted cash | |||||||||||
Fixed assets, at cost, net of accumulated depreciation of $ | |||||||||||
Finance lease right of use assets, at cost, net of accumulated depreciation of $ | |||||||||||
| Goodwill | |||||||||||
| Other non-current assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities and stockholders' equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued expenses and other current liabilities | |||||||||||
| Affiliated companies payable | |||||||||||
| Deferred revenue | |||||||||||
| Current portion of secured long-term debt | |||||||||||
| Current portion of financing obligations | |||||||||||
| Current portion of finance lease liabilities | |||||||||||
| Dividend payable | |||||||||||
| Total current liabilities | |||||||||||
| Noncurrent liabilities | |||||||||||
| Secured long-term debt, net | |||||||||||
| Financing obligations, net | |||||||||||
| Finance lease liabilities, net | |||||||||||
| Total noncurrent liabilities | |||||||||||
| Commitments and contingencies - Note 9 | |||||||||||
| Stockholders' equity: | |||||||||||
Common stock, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Total Pangaea Logistics Solutions Ltd. equity | |||||||||||
| Non-controlling interests | |||||||||||
| Total stockholders' equity | |||||||||||
| Total liabilities and stockholders' equity | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
Pangaea Logistics Solutions Ltd.
Condensed Consolidated Statements of Operations (Unaudited)
(U.S. Dollars in thousands, except for share and per share data)
| Three Months Ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Voyage revenue | $ | $ | $ | $ | ||||||||||||||||||||||
| Charter revenue | ||||||||||||||||||||||||||
| Port terminal & stevedore revenue | ||||||||||||||||||||||||||
| Total revenues, net | ||||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Voyage expenses | ||||||||||||||||||||||||||
| Charter hire expenses | ||||||||||||||||||||||||||
| Vessel operating expenses | ||||||||||||||||||||||||||
| Terminal & stevedore expenses | ||||||||||||||||||||||||||
| General and administrative expenses | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Loss (gain) on vessel and equipment sold | ( | ( | ||||||||||||||||||||||||
| Total operating expenses | ||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||
| Other income | ||||||||||||||||||||||||||
| Total other expense, net | ( | ( | ( | ( | ||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||
| Income attributable to non-controlling interests | ( | ( | ( | ( | ||||||||||||||||||||||
| Net income attributable to Pangaea Logistics Solutions Ltd. | $ | $ | $ | $ | ||||||||||||||||||||||
| Net income per common share | ||||||||||||||||||||||||||
| Basic | $ | $ | $ | $ | ||||||||||||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
| Weighted average shares used to compute earnings per common share: | ||||||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||||
| Diluted | ||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
Pangaea Logistics Solutions Ltd.
Condensed Consolidated Statements of Stockholders' Equity for three and nine months ended September 30, 2026 and 2025 (Unaudited)
(U.S. Dollars in thousands, except for share and per share data)
| Common Stock | Additional Paid-in Capital | Retained Earnings | Total Pangaea Logistics Solutions Ltd. Equity | Non-Controlling Interest | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock dividend | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2025 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of restricted shares, net of forfeitures | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock dividend | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Total Pangaea Logistics Solutions Ltd. Equity | Non-Controlling Interest | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2025 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of non-controlling interest | — | — | (2,700) | — | (2,700) | (2,700) | |||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchases | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Distribution to Non-Controlling Interests | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock dividend | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Consolidation of subsidiary | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2025 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2024 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of restricted shares, net of forfeitures | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Share repurchases | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Distribution to Non-Controlling Interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of non-controlling interest | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock dividend | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Consolidation of subsidiary | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
(1) Common stock has a par value of $0.0001 per share. Amounts are presented in thousands, and therefore par value amounts are not reflected.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
Pangaea Logistics Solutions, Ltd.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(U.S. Dollars in thousands, except for share and per share data)
| Nine months ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operations: | |||||||||||
| Depreciation and amortization expense | |||||||||||
| Amortization of deferred financing costs | |||||||||||
| Amortization of prepaid rent | |||||||||||
| Unrealized (gain) loss on derivative instruments, net | ( | ||||||||||
| Income from equity method investee | ( | ( | |||||||||
| Provision for doubtful accounts | |||||||||||
| Loss (gain) on sale of vessel and equipment | ( | ||||||||||
| Drydocking costs | ( | ( | |||||||||
| Share-based compensation | |||||||||||
| Change in operating assets and liabilities: | |||||||||||
| Accounts receivable | ( | ( | |||||||||
| Inventories | ( | ( | |||||||||
| Advance hire, prepaid expenses and other current assets | ( | ( | |||||||||
| Accounts payable, accrued expenses and other current liabilities | |||||||||||
| Deferred revenue | |||||||||||
| Net cash provided by operating activities | |||||||||||
| Investing activities | |||||||||||
| Proceeds from sale of vessels and equipment | |||||||||||
| Purchase of fixed assets and equipment | ( | ( | |||||||||
| Acquisition of non-controlling interest | ( | ||||||||||
| Dividends received from equity method investments | |||||||||||
| Distributions from (Contributions to) non-consolidated subsidiaries | ( | ||||||||||
| Net cash provided by investing activities | |||||||||||
| Financing activities | |||||||||||
| Proceeds from long-term debt | |||||||||||
| Payments of financing fees and debt issuance costs | ( | ||||||||||
| Payments of long-term debt | ( | ( | |||||||||
| Proceeds from financing obligation | |||||||||||
| Payments of financing obligations | ( | ( | |||||||||
| Payments of finance leases | ( | ( | |||||||||
| Dividends paid to non-controlling interests | ( | ||||||||||
| Cash dividends paid | ( | ( | |||||||||
| Payments to repurchase ordinary shares | ( | ||||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Net change in cash, cash equivalents and restricted cash | |||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
6
Pangaea Logistics Solutions, Ltd.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(U.S. Dollars in thousands, except for share and per share data)
| Reconciliation of cash, cash equivalents and restricted cash | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
| Total cash, cash equivalents and restricted cash at end of period | |||||||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for interest | $ | $ | |||||||||
| Cash received from interest rate caps | $ | $ | |||||||||
| Supplemental non-cash investing and financing activities: | |||||||||||
| Capital expenditures included in accounts payable and accrued expenses | $ | $ | |||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7
Note 1 - General Information and Recent Events
The accompanying consolidated financial statements include the accounts of Pangaea Logistics Solutions Ltd. and its consolidated subsidiaries (collectively, the “Company”, “Pangaea”, “we” or “our”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership, chartering and operation of drybulk vessels. The Company is a holding company incorporated under the laws of Bermuda as an exempted company on April 29, 2014.
As of September 30, 2026, the Company's owned fleet consisted of two Panamax, two Ultramax Ice Class 1C, two Ultramax, eight Supramax, four Post-Panamax Ice Class 1A drybulk vessels and fourteen Handysize vessels. In addition, the Company owns two-thirds of its consolidated subsidiary Nordic Bulk Holding Company Ltd. (“NBHC”) which owns a fleet of six Panamax Ice Class 1A drybulk vessels.
The Company owns port and terminal operations located in Fort Lauderdale, Florida, Baltimore, Maryland, Port Aransas, Texas, Tampa, Florida, and Lake Charles, Louisiana. Additionally, the Company also holds a 50 % equity interest in the owner of a deck barge.
8
Note 2 - Basis of Presentation and Significant Accounting Policies
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q. Accordingly, these interim financial statements do not include all of the information and note disclosures required by U.S. GAAP for complete condensed financial statements. The accompanying financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025.
The consolidated financial statements include the accounts of Pangaea Logistics Solutions Ltd. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unless otherwise indicated, amounts are presented in thousands of U.S. dollars, except for share and per share amounts and certain operating metrics, including time charter equivalent (“TCE”) rates, operating expenses per day, and Baltic Dry Index (“BDI”) data. Amounts presented in millions are specifically identified as such.
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the balance sheet date, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates include revenue recognition for voyages in progress, the allowance for credit losses, the estimated salvage value used in determining vessel depreciation expense, and the evaluation of long-lived assets for impairment. Actual results could differ from those estimates. Certain Reclassifications have been made to the prior period financial statements to conform to the current period presentation
Effective January 1, 2026, the Company revised certain assumptions used in determining vessel depreciation, including estimated useful lives and residual (scrap) values of its vessels. These revisions were accounted for prospectively as a change in accounting estimate. The Company increased its estimated vessel scrap value from $300 per light weight ton (“lwt”) to $400 per lwt., based on management's evaluation of long-term historical scrap price trends obtained from a third-party data provider, as well as consideration of industry practices. The Company also standardized the estimated useful lives of its dry bulk vessels to 25 years from delivery, which shortened the depreciation period for 26 of its 38 vessels.
The increase in depreciation expense resulting from the shorter estimated useful lives of certain vessels exceeded the reduction in depreciation expense resulting from the higher scrap value. As a result, depreciation expense increased, and net income decreased, by approximately $1.1 million, or $0.02 3.4 million, or $0.05 4.5 million for the remaining three months of 2026.
Concentration of credit risk
Receivables from one significant customer represented 17 % and 28 % of the Company’s accounts receivable as of September 30, 2026 and December 31, 2025, respectively.
Advance hire, prepaid expenses and other current assets
Advance hire, prepaid expenses and other current assets were comprised of the following:
| September 30, 2026 | December 31, 2025 | |||||||||||||
| Advance hire | $ | $ | ||||||||||||
| Prepaid expenses | ||||||||||||||
| Prepaid voyage expenses | ||||||||||||||
| Accrued receivables - Voyage related | ||||||||||||||
| Cash margin on deposit | ||||||||||||||
| Derivative assets | ||||||||||||||
| Other current assets | ||||||||||||||
| $ | $ | |||||||||||||
9
Goodwill
We conducted our annual qualitative assessment of goodwill as of June 1, 2026, which indicated that it was more likely than not that the fair value of the Company’s goodwill exceeded its carrying amount, thus no impairment was indicated. As of September 30, 2026, no events or changes in circumstances occurred that would necessitate a further impairment review.
Other non-current assets
Other non-current assets were comprised of the following:
| September 30, 2026 | December 31, 2025 | |||||||||||||
Intangible Assets, net of accumulated amortization of $ | $ | $ | ||||||||||||
| Investment in Associated Terminals Pangaea Logistics, LLC | ||||||||||||||
| Investment in Narragansett Bulk Carriers (US) Corp | ||||||||||||||
| Other non-current assets | ||||||||||||||
| $ | $ | |||||||||||||
(1) Intangible assets consist primarily of customer contracts and a non-compete agreement acquired in prior periods, which are being amortized over estimated useful lives ranging from
The Company recognized earnings from equity method investments during the nine months ended September 30, 2026; the Company received $2.4 million from these investees during the period.
Accounts payable, accrued expenses and other current liabilities
Accounts payable, accrued expenses and other current liabilities were comprised of the following:
| September 30, 2026 | December 31, 2025 | |||||||||||||
| Accounts payable: | ||||||||||||||
| Bunkers suppliers | ||||||||||||||
| Charter hire payable | ||||||||||||||
| Other trade accounts payable | ||||||||||||||
| Total accounts payable | $ | $ | ||||||||||||
| Accrued expenses and other current liabilities: | ||||||||||||||
| Accrued Voyage Expenses | ||||||||||||||
| Accrued operating expenses | ||||||||||||||
| Accrued compensation | ||||||||||||||
| Other accrued liabilities | ||||||||||||||
| Total accrued expenses and other current liabilities | $ | $ | ||||||||||||
10
Leases
Time charter in contracts
The Company charters in vessels to supplement its owned fleet to support its voyage charter operations. The Company hires vessels under time charters with third party vessel owners, and recognizes the charter hire payments as an expense on a straight-line basis over the term of the charter. Charter hire payments are typically made in advance, and the unrecognized portion is reflected as advance hire in the accompanying consolidated balance sheets. Under the time charters, the vessel owner is responsible for the vessel operating costs such as crews, maintenance and repairs, insurance, and stores. As allowed by a practical expedient under ASC 842, Leases ("ASC 842"), the Company made an accounting policy election by class of underlying asset for leases with a term of 12 months or less, to forego recognizing a right-of-use asset and lease liability on its balance sheet. For the quarter ending September 30, 2026, the Company did not have any time charter in contracts with terms greater than 12 months, as such charter hire expense presented on the condensed consolidated statements of operations are lease expenses for chartered in contracts less than 12 months.
Time charter out contracts
Charter revenue is earned when the Company lets a vessel it owns or operates to a charterer for a specified period of time. Charter revenue is based on the agreed rate per day. The charterer has the power to direct the use and receives substantially all of the economic benefits from the use of the vessel. The Company determined that all time charter contracts are considered operating leases and therefore fall under the scope of ASC 842 because: (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use.
At September 30, 2026, the Company had eleven vessels chartered to customers under time charters that included a lease. These eleven leases varied in original length from 20 days to 200 days. The total lease payments remaining as of September 30, 2026 under these arrangements were approximately $6.9 million. All time charters are scheduled to be completed within 200 days, and no lease payments extend beyond April 2027.
At September 30, 2025, the Company had seven vessels chartered to customers under time charters that included a lease. These seven leases varied in original length from 34 days to 195 days. The lease payments due under these arrangements were approximately $6.5 million, all of which was received within the 183 days following September 30, 2025.
The Company does not have any vessels chartered in (operating leases) for longer than one year and the practical expedient relating to leases with terms of 12 months or less was elected.
The Company does not have any sales-type or direct financing leases.
The Company has four non-cancelable office leases and non-cancelable office equipment leases and the lease assets and liabilities are not material.
Revenue Recognition
In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage, which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or "dead" freight. The voyage contract generally has standard payment terms of 95 % freight paid within three days after completion of loading. The voyage charter party generally has a "demurrage" or "despatch" clause. As per this clause, the charterer reimburses the Company for any delays that exceed the agreed to laytime at the ports visited, which are recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime which is known as despatch and results in a reduction of revenue. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. The Company determined that its voyage charter contracts consist of a single performance obligation of transporting the cargo within a specified time period. Therefore, the performance obligation is met evenly as the voyage progresses, and the revenue is recognized on a straight-line basis over the voyage days from the commencement of the loading of cargo to completion of discharge.
11
The voyage contracts are considered service contracts which fall under the provisions of ASC 606, Revenue from Contracts with Customers because the Company, as the shipowner, retains control over the operations of the vessel such as directing the routes taken or the vessel speed. The voyage contracts generally have variable consideration in the form of demurrage or despatch.
During time charter agreements, the Company is paid to provide transportation services on a per day basis for a specified period of time. Revenues from time charters are earned and recognized on a straight-line basis over the term of the charter, the charterers have substantive decision-making rights to direct how and for what purpose the vessel is used. As such, the Company has identified that time charter agreements contain a lease in accordance with ASC 842. Revenue is not earned when vessels are offhire.
In a stevedore service contract, the Company is paid to provide cargo handling services on a per unit basis for a specified quantity of cargo. The consideration in such a contract is determined on the basis of a rate per unit of cargo handled. The contract may contain minimum quantities. Revenues from stevedore service contracts are earned and recognized on a per unit basis as completed over the performance period.
The Company’s contracts with customers, including voyage charters and stevedoring service contracts, generally have original expected durations of one year or less. In accordance with the practical expedient in ASC 606-10-50-14, the Company has elected not to disclose the amount of remaining performance obligations for these contracts. As of September 30, 2026, the Company did not have any material unsatisfied performance obligations that are required to be disclosed.
Deferred Revenue
All deferred revenue recorded on the consolidated balance sheets as of December 31, 2025, was recognized during the nine months ended September 30, 2026.
Recently Adopted Accounting Pronouncements
In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments provide a practical expedient that permits entities to assume that current conditions as of the balance sheet date will remain unchanged for the remaining life of current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The Company adopted the amendments and elected the practical expedient effective January 1, 2026. The adoption did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures.
Recently Issued Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB released ASU 2024-03, which focuses on Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires the disclosure of additional information regarding specific expense categories in the financial statement notes. It becomes effective for annual periods starting after December 15, 2026, and for interim periods starting after December 15, 2027, with early adoption permitted. The update can be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. The Company is currently assessing the impact of ASU 2024-03 on its disclosures in the consolidated financial statements.
In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. This update provides guidance on identifying the accounting acquirer when a variable interest entity that meets the definition of a business is acquired primarily through the exchange of equity interests. The standard becomes effective for annual periods beginning after December 15, 2026, and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2025-03 on its accounting and disclosures related to business combinations.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The amendments clarify the interim financial statement disclosure requirements and establish a principle requiring disclosure of events occurring since the end of the most recent annual reporting period that have a material effect on an entity. For public business entities, the amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the amendments on its interim financial statement disclosures.
12
Note 3 - Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include short-term deposits with an original maturity of less than three months. The following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statement of cash flows:
| September 30, 2026 | December 31, 2025 | ||||||||||
| Money market accounts – cash equivalents | $ | $ | |||||||||
| Time deposit accounts - cash equivalents | |||||||||||
Cash (1) | |||||||||||
| Cash and cash equivalents | |||||||||||
Restricted cash (2) | |||||||||||
| Total cash, cash equivalents and restricted cash | $ | $ | |||||||||
(1) It consists of cash deposits at various major banks.
(2) Restricted cash consists of amounts required to be maintained under the Company’s insurance arrangements and is not available for
general corporate purposes.
As of September 30, 2026 and December 31, 2025, the Company held cash and cash equivalents in the following subsidiaries:
| September 30, 2026 | December 31, 2025 | ||||||||||
Pangaea (1) | $ | $ | |||||||||
NBHC (2) | |||||||||||
Deck Barge (3) | |||||||||||
| Total cash, cash equivalents and restricted cash | $ | $ | |||||||||
(1) Held by 100 % owned Pangaea consolidated subsidiaries
(2) Held by a 67 % owned Pangaea consolidated subsidiary
13
Note 4 - Fixed Assets
As of September 30, 2026, the Company’s fleet consisted of thirty-eight dry bulk vessels and one barge. Certain vessels were financed through financing obligations recognized in failed sale-leaseback transactions, and one vessel was financed through a finance lease arrangement.
14
| September 30, 2026 | December 31, 2025 | ||||||||||
m/v Nordic Odyssey (1) | $ | $ | |||||||||
m/v Nordic Orion (1) | |||||||||||
m/v Nordic Oshima (1) | |||||||||||
m/v Nordic Olympic (1) | |||||||||||
m/v Nordic Odin (1) | |||||||||||
m/v Nordic Oasis (1) | |||||||||||
| m/v Nordic Nuluujaak | |||||||||||
| m/v Nordic Qinngua | |||||||||||
| m/v Nordic Sanngijuq | |||||||||||
| m/v Nordic Siku | |||||||||||
| m/v Bulk Endurance | |||||||||||
| m/v Bulk Prudence | |||||||||||
| m/v Bulk Courageous | |||||||||||
| m/v Bulk Concord | |||||||||||
| m/v Bulk Pride | |||||||||||
| m/v Bulk Spirit | |||||||||||
| m/v Bulk Sachuest | |||||||||||
| m/v Bulk Independence | |||||||||||
| m/v Bulk Friendship | |||||||||||
| m/v Bulk Valor | |||||||||||
| m/v Bulk Promise | |||||||||||
| m/v Bulk Brenton | |||||||||||
| m/v Bulk Patience | |||||||||||
| m/v Strategic Fortitude | |||||||||||
| m/v Strategic Resolve | |||||||||||
| m/v Strategic Explorer | |||||||||||
| m/v Strategic Entity | |||||||||||
| m/v Strategic Synergy | |||||||||||
| m/v Strategic Alliance | |||||||||||
| m/v Strategic Unity | |||||||||||
| m/v Strategic Harmony | |||||||||||
| m/v Strategic Equity | |||||||||||
| m/v Strategic Venture | |||||||||||
| m/v Strategic Savannah | |||||||||||
| m/v Strategic Spirit | |||||||||||
| m/v Strategic Vision | |||||||||||
| m/v Strategic Tenacity | |||||||||||
Miss Nora G Pearl (2) | |||||||||||
| Other fixed assets, net | |||||||||||
| Total fixed assets, net | $ | $ | |||||||||
| Right of Use Assets | |||||||||||
m/v Bulk Xaymaca (3) | $ | $ | |||||||||
| m/v Bulk Destiny | |||||||||||
| $ | $ | ||||||||||
15
(1) Vessels are owned by NBHC, a consolidated entity in which the Company has a two-thirds ownership interest at September 30, 2026 and December 31, 2025, respectively.
(2) Barge is owned by a 50
Long-lived Assets Impairment Considerations
The Company evaluates the recoverability of its fixed assets and other long-lived assets in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets.
The Company performs this assessment at the individual vessel level, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets.
During the nine months ended September 30, 2026, the Company classified one vessel as held for sale. Upon classification, the vessel was written down to its estimated fair value less costs to sell, resulting in the recognition of a loss on sale. The vessel was subsequently sold in May 2026 for approximately $9.6 million.
During the nine months ended September 30, 2026, the Company classified one vessel as held for sale. Upon classification, the vessel was written down to its estimated fair value less costs to sell, resulting in the recognition of a loss on sale. The vessel was subsequently sold in May 2026 for approximately $9.6 million.
For the remaining vessels, the Company concluded that no indicators of impairment were present during the nine months ended September 30, 2026. Accordingly, no recoverability analysis was required for those vessels. The Company did not identify any triggering events during the nine months ended September 30, 2025.
16
Note 5 - Debt
As of September 30, 2026 and December 31, 2025, the Company’s outstanding long-term debt consists of the following:
| September 30, 2026 | December 31, 2025 | Interest Rate (%) (1) | Maturity Date | |||||||||||||||||||||||
Bulk Nordic Odyssey (MI) Corp., Bulk Nordic Orion (MI) Corp. Senior Secured Term Loan Facility (2) (3) | $ | $ | % | December 2027 | ||||||||||||||||||||||
Bulk Nordic Oshima (MI) Corp., Bulk Nordic Odin (MI) Corp., Bulk Nordic Olympic (MI) Corp., Bulk Nordic Oasis (MI) Corp. Secured Term Loan Facility (2) (3) | % | March 2027 | ||||||||||||||||||||||||
$ | % | May 2029 | ||||||||||||||||||||||||
Bulk Valor Corp. Loan and Security Agreement (2) | % | June 2028 | ||||||||||||||||||||||||
Bulk Promise Corp. (2) | % | October 2027 | ||||||||||||||||||||||||
Bulk Sachuest (2) | % | October 2029 | ||||||||||||||||||||||||
| Bulk Prudence | % | July 2029 | ||||||||||||||||||||||||
Pangaea Texas, LLC (2) | % | November 2029 | ||||||||||||||||||||||||
Pangaea Baltimore, LLC (2) | % | February 2030 | ||||||||||||||||||||||||
Pangaea Florida, LLC (2) | % | May 2031 | ||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||
| Less: unamortized issuance costs | ( | ( | ||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||
| Less: current portion | ( | ( | ||||||||||||||||||||||||
| Secured long-term debt, net | $ | $ | ||||||||||||||||||||||||
(1)As of September 30, 2026.
(2)Interest rates on the loan facilities are fixed.
(3)The borrower under this facility is NBHC. The Company has two-thirds ownership interest and an independent third party has one-third ownership interest in NBHC. NBHC is consolidated in accordance with ASC 810-10 and as such, amounts pertaining to the non-controlling ownership held by the third parties in the financial position of NBHC are reported as non-controlling interest in the accompanying balance sheets.
(4)This facility is secured by the vessels m/v Bulk Endurance, m/v Bulk Brenton and m/v Bulk Patience and is guaranteed by the Company. Subsequent to September 30, 2026, the outstanding borrowings under this facility, which totaled $38.7 million at September 30, 2026, were repaid on October 21, 2026 using proceeds from a new credit facility with a new lender. See Note 14 — Subsequent Events.
$0.1 million Equipment Financing Arrangement
On February 6, 2026, Pangaea Baltimore LLC, a wholly-owned subsidiary of the Company, entered into a $0.1 million equipment financing arrangement with Wells Fargo Vendor Financial Services, LLC in connection with the purchase of a 2026 Bobcat T86 compact track loader. The total amount financed under the agreement was $144 , inclusive of fees. The financing arrangement does not bear stated interest and is payable in 48 equal monthly installments of approximately $3 , with a final maturity date in 2030. The obligations are secured by the financed equipment and are subject to customary events of default and acceleration provisions.
$0.7 million Equipment Financing Arrangement
On May 1, 2026, Pangaea Florida LLC, a wholly-owned subsidiary of the Company, entered into equipment financing arrangements totaling approximately $0.7 million for the purchase of two 2026 Caterpillar 938 wheel loaders. The arrangements bear interest at 4.15 % and are payable in 60 equal monthly installments. The obligations are secured by the financed equipment. Each arrangement financed approximately $0.3 million, for a combined amount of approximately $0.7 million.
17
The future minimum payments under the debt agreements are as follows:
| Years ending December 31, | ||||||||
| 2026 (remainder of the year) | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Thereafter | ||||||||
| Less: Amount representing interest | ( | |||||||
| Less: Unamortized Debt Issuance Costs | ( | |||||||
| Less: current portion | ( | |||||||
| Secured long-term debt, net | $ | |||||||
The annual payments above reflect the contractual terms of the debt agreements outstanding at September 30, 2026. The current and noncurrent portions of secured debt at that date reflect the classification of qualifying amounts as noncurrent based on the refinancing of the $50 million Senior Secured Term Loan Facility completed on October 23, 2026. See Note 14—Subsequent Events for the terms of the refinancing.
18
Financial Covenants
All the loan terms and key financial covenants for all outstanding debt as of December 31, 2025, remain unchanged as of September 30, 2026. Under the Company's respective debt agreements, the Company is required to comply with certain financial covenants, including to maintain minimum liquidity and a collateral maintenance ratio clause, which requires the aggregate fair market value of the vessels plus the net realizable value of any additional collateral provided, to remain above defined ratios and to maintain positive working capital. The Company was in compliance with all applicable financial covenants as of September 30, 2026 and December 31, 2025.
Financing Obligations Recognized in Failed Sale Leaseback Transactions
The following vessels were acquired through failed sale-leaseback transactions and are accounted for as financing obligations. These transactions do not qualify as leases under ASC 842 because the Company retains control of the vessels and is contractually obligated to repurchase them.
As of September 30, 2026 and December 31, 2025, the Company’s financing obligation consists of the following:
| September 30, 2026 | December 31, 2025 | Interest Rate (%) (1) | Maturity Date | |||||||||||||||||||||||
| Bulk Spirit Ltd. | $ | $ | % | February 2027 | ||||||||||||||||||||||
| Bulk Friendship Corp. - Bareboat Charter Party dated September 30, 2024 | % | August 2029 | ||||||||||||||||||||||||
Bulk Nordic Seven LLC (3) | % | May 2036 | ||||||||||||||||||||||||
Bulk Nordic Eight LLC (3) | % | June 2036 | ||||||||||||||||||||||||
Bulk Nordic Nine LLC (3) | % | September 2036 | ||||||||||||||||||||||||
Bulk Nordic Ten LLC (3) | % | November 2036 | ||||||||||||||||||||||||
Bulk Courageous Corp. (2) | % | April 2028 | ||||||||||||||||||||||||
Phoenix Bulk 25 Corp. (2) | % | February 2029 | ||||||||||||||||||||||||
| Bulk Independence | % | December 2028 | ||||||||||||||||||||||||
| Bulk Pride | % | December 2028 | ||||||||||||||||||||||||
Tripartite Agreement (m/v Strategic Alliance, m/v Strategic Synergy, Strategic Unity) (2) | % | June 2029 | ||||||||||||||||||||||||
| SBC Equity Pte. Ltd. | % | August 2031 | ||||||||||||||||||||||||
| SBC Explorer LLC | % | March 2030 | ||||||||||||||||||||||||
| RHI Fortitude Pte. Ltd. | % | January 2031 | ||||||||||||||||||||||||
| SBC Harmony Pte. Ltd. | % | August 2031 | ||||||||||||||||||||||||
| RHI Savannah Pte. Ltd. | % | September 2029 | ||||||||||||||||||||||||
RHI Tenacity Pte. Ltd. (2) | % | April 2027 | ||||||||||||||||||||||||
| SBC Venture Pte. Ltd. | % | July 2031 | ||||||||||||||||||||||||
| SBC Spirit Pte. Ltd. | % | July 2032 | ||||||||||||||||||||||||
| SBC Vision Pte. Ltd. | % | June 2030 | ||||||||||||||||||||||||
| Operating Leases: | ||||||||||||||||||||||||||
Other (4) | $ | $ | ||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||
| Less: unamortized issuance costs, net | ( | ( | ||||||||||||||||||||||||
| Less: current portion | ( | ( | ||||||||||||||||||||||||
| Financing Obligations, net | $ | $ | ||||||||||||||||||||||||
19
(1)As of September 30, 2026 including the effect of interest rate cap if any.
(2)Interest rates on the loan facilities are fixed.
(3)As of September 30, 2026, a portion of these financing obligations was subject to an interest rate cap that limited SOFR to 3.51 %, with a contractual expiration in the fourth quarter of 2026. On October 23, 2026, the Company repaid the financing obligations of Bulk Nordic Seven LLC, Bulk Nordic Eight LLC, Bulk Nordic Nine LLC and Bulk Nordic Ten LLC using proceeds from a new credit facility. These obligations had an aggregate outstanding principal balance of $95.6 million at September 30, 2026. See Note 14 — Subsequent Events.
(4)The Company entered into a 10-year ground lease agreement with the Tampa Port Authority, commencing on April 22, 2024.
All the obligation terms and financial covenants for all outstanding financing obligations as of December 31, 2025, remain unchanged as of September 30, 2026. The Company was in compliance with all financial covenants as of September 30, 2026 and December 31, 2025. All outstanding financing obligations are secured by the respective underlying assets.
| Year ending December 31, | ||||||||
| 2026 (remainder of the year) | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Thereafter | ||||||||
| Total minimum payments | ||||||||
| Less: Amount representing interest | ( | |||||||
| Present value of minimum payments | ||||||||
| Less: Issuance costs | ( | |||||||
| Present value of minimum payments, net | ||||||||
| Less: Current portion of financing obligations | ( | |||||||
| Non-current portion of financing obligations | $ | |||||||
The annual payments above reflect the contractual terms of the financing arrangements outstanding at September 30, 2026. The current and noncurrent portions of financing obligations at that date reflect the classification of qualifying amounts as noncurrent based on the refinancing of the obligations of Bulk Nordic Seven LLC, Bulk Nordic Eight LLC, Bulk Nordic Nine LLC and Bulk Nordic Ten LLC completed on October 23, 2026. See Note 14—Subsequent Events for the terms of the refinancing.
20
Note 6 - Finance Leases
At September 30, 2026, the Company had an outstanding finance lease liability related to the M/V Bulk Destiny under the Bulk Nordic Five Ltd. facility. During the nine months ended September 30, 2026, the Company exercised and completed on its purchase option under the Bulk PODS Ltd. arrangement related to the M/V Bulk Xaymaca, and no finance lease liability remained outstanding under that facility as of September 30, 2026. The Bulk Nordic Five Ltd. arrangement was entered into before the adoption of ASC 842 and continues to be accounted for as a finance lease under the transition provisions applicable to arrangements previously classified under ASC 840.
Finance leases consist of the following as of September 30, 2026 and December 31, 2025:
| September 30, 2026 | December 31, 2025 | Interest Rate (%) | Maturity Date | |||||||||||||||||||||||
| Finance Leases: | ||||||||||||||||||||||||||
Bulk PODS Ltd. (2) | $ | $ | % | |||||||||||||||||||||||
Bulk Nordic Five Ltd. (1) | % | April 2028 | ||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||
| Less: unamortized issuance costs, net | ( | ( | ||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||
| Less: current portion | ( | ( | ||||||||||||||||||||||||
| Long-term finance lease liabilities, net | $ | $ | ||||||||||||||||||||||||
(1)Interest rates on the loan facilities are fixed.
(2)On January 13, 2026, the Company exercised its purchase option under the Bulk PODS financing arrangement. The transaction closed on March 16, 2026 for $1.3 million, and no gain or loss was recognized upon closing.
The following table provides details of the Company's future minimum lease payments under finance and operating lease liabilities recorded on the Company's consolidated balance sheets as of September 30, 2026.
| Year ending December 31, | Amount | ||||
| 2026 (remainder of the year) | $ | ||||
| 2027 | |||||
| 2028 | |||||
| Total minimum lease payments | |||||
| Less imputed interest | ( | ||||
| Present value of minimum lease payments | |||||
| Less current portion | ( | ||||
| Less issuance costs | ( | ||||
| Long-term portion | $ | ||||
21
Note 7 - Derivative Instruments and Fair Value Measurements
Forward freight agreements
The Company assesses risk associated with fluctuating future freight rates and, when appropriate, hedges identified economic risk with appropriate derivative instruments, specifically forward freight agreements (FFAs). These economic hedges do not usually qualify for hedge accounting under ASC 815 and as such, the usage of such derivatives can lead to fluctuations in the Company’s reported results from operations on a period-to-period basis.
Fuel swap contracts
The Company continuously monitors the market volatility associated with bunker prices and the impact it may have on the Company's future cargo commitments, and seeks to reduce the risk of such volatility through a bunker hedging program. The Company enters into fuel swap contracts that are not designated for hedge accounting under ASC 815 and as such, the usage of such derivatives can lead to fluctuations in the Company’s reported results from operations on a period-to-period basis.
Interest rate cap
The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. The Company uses an interest rate cap that provides for payments from the counterparty when the applicable interest rate exceeds the contractual strike rate. The interest rate cap is not designated as a hedging instrument for accounting purposes, and changes in its fair value are recognized in earnings.
The estimated fair values of the Company’s forward freight agreements and fuel swap contracts are based on market prices obtained from an independent third-party valuation specialist based on published indices. Such quotes represent the estimated amounts the Company would receive or pay to terminate the contracts. The interest rate caps contracts are valued using analysis obtained from independent third party valuation specialists based on market observable inputs, representing Level 2 assets.
The following table summarizes assets and liabilities measured at fair value on a recurring basis at September 30, 2026 and December 31, 2025:
| Asset Derivative | Liability Derivative | |||||||||||||||||||||||||||||||||||||
| Derivative instruments | Balance Sheet Location | 09/30/2026 | 12/31/2025 | Balance Sheet Location | 09/30/2026 | 12/31/2025 | ||||||||||||||||||||||||||||||||
Margin accounts (1) | Other current assets | $ | $ | Other current liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Forward freight agreements (2) | Other current assets | $ | $ | Other current liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Fuel swap contracts (2) | Other current assets | $ | $ | Other current liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Fuel swap contracts (2) | Other noncurrent assets | $ | $ | Other noncurrent liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Interest rate cap (2) | Other current assets | $ | $ | Other current liabilities | $ | $ | ||||||||||||||||||||||||||||||||
22
(1) The fair value measurements were all categorized within Level 1 of the fair value hierarchy.
(2) These fair value measurements were all categorized within Level 2 of the fair value hierarchy.
The three levels of the fair value hierarchy established by ASC 820, Fair Value Measurements and Disclosures, in order of priority are as follows:
Level 1 – Quoted prices in active markets for identical assets or liabilities. Our Level 1 fair value measurements include cash, money-market accounts and restricted cash accounts.
Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable.
Level 3 – Inputs that are unobservable (for example cash flow modeling inputs based on assumptions).
The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying amounts of the Company’s floating rate debt approximate fair value as the applicable interest rates are variable and reflective of current market rates.
The fair value of the Company’s fixed-rate long-term debt is estimated using Level 2 inputs, based on market interest rates for similar instruments with comparable terms and credit characteristics.
At September 30, 2026 and December 31, 2025, The aggregate carrying values and estimated fair values of the Company’s fixed-rate secured debt, financing obligations and finance leases were as follows:
The fair value of the Company’s fixed-rate long-term debt is estimated using Level 2 inputs, based on market interest rates for similar instruments with comparable terms and credit characteristics.
At September 30, 2026 and December 31, 2025, The aggregate carrying values and estimated fair values of the Company’s fixed-rate secured debt, financing obligations and finance leases were as follows:
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||
| Carrying values | Estimated fair values | Carrying values | Estimated fair values | |||||||||||||||||||||||
| Secured debt | $ | 52,373 | $ | 51,656 | $ | 59,739 | $ | 57,570 | ||||||||||||||||||
| Financing obligations | $ | 46,777 | $ | 46,557 | $ | 51,911 | $ | 50,787 | ||||||||||||||||||
| Finance lease | $ | 8,700 | $ | 8,605 | $ | 9,200 | $ | 9,000 | ||||||||||||||||||
The following tables present the realized and unrealized gains and losses on the Company’s derivative instruments recognized in the consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025. Both realized and unrealized gains and losses are included in charter hire expenses for forward freight agreements, voyage expenses for fuel swap contracts, and interest expense for interest rate caps.
The following table presents the effect of our derivative financial instruments on the consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025:
| Unrealized gain (loss) on derivative instruments | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| Derivative instruments | 09/30/2026 | 9/30/2025 | 09/30/2026 | 9/30/2025 | ||||||||||||||||||||||
| Forward freight agreements | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
| Fuel swap contracts | ( | $ | ( | |||||||||||||||||||||||
| Interest rate cap | ( | ( | $ | ( | ( | |||||||||||||||||||||
| Total gain (loss) | $ | $ | $ | $ | ( | |||||||||||||||||||||
23
The following table presents the realized gain (loss) on our derivative financial instruments for the three and nine months ended September 30, 2026 and 2025.
| Realized gain (loss) on derivative instruments | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| Derivative instruments | 09/30/2026 | 9/30/2025 | 09/30/2026 | 9/30/2025 | ||||||||||||||||||||||
| Forward freight agreements | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
| Fuel swap contracts | ( | $ | ( | |||||||||||||||||||||||
| Interest rate cap | $ | |||||||||||||||||||||||||
| Total gain | $ | $ | $ | $ | ||||||||||||||||||||||
24
Note 8 - Related Party Transactions
Accounts payable to related parties consist of the following:
| September 30, 2026 | Activity | December 31, 2025 | |||||||||||||||
MTM Ship Management (“MTM”) (i) | $ | $ | $ | ||||||||||||||
| Total accounts payable to related parties | $ | $ | $ | ||||||||||||||
i.MTM Ship Management (“MTM”) is considered a related party because a former member of the Company’s Board of Directors, Christina Tan, has an indirect ownership interest in MTM. Ms. Tan is a partial owner of Strategic Investment LLC, which beneficially owns approximately 29 % of the Company’s outstanding common shares and has an indirect ownership interest in MTM. Ms. Tan resigned from the Company’s Board of Directors on December 18, 2025.
25
Note 9 - Commitments and Contingencies
Long-term Contracts Accounted for as Operating Leases
The Company has operating leases for office facilities in various locations. These leases generally have remaining terms ranging from 2 months to 51 months, some of which include options to extend or terminate. The Company’s lease agreements do not contain material residual value guarantees or restrictive covenants. The weighted-average remaining lease term was 3.32 years as of September 30, 2026. The Company also has certain office equipment leases, which are excluded from the office lease disclosures because they are immaterial.
The following table summarizes the Company’s office lease commitments as of September 30, 2026.
| Location | Remaining lease Term (as of September 30, 2026) | Undiscounted Payments | ||||||||||||||||||||||||
| Copenhagen, Denmark | $ | |||||||||||||||||||||||||
| Singapore | ||||||||||||||||||||||||||
| Connecticut, U.S. | ||||||||||||||||||||||||||
| Greece | ||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||
In March 2026, the Company modified its Greece office lease to extend lease term by
For both 2026 and 2025, the Company recognized approximately $
As of September 30, 2026, future minimum rentals under operating leases that had commenced were as follows:
| Year ending December 31, | Amount | |||||||
| 2026 (remainder of the year) | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Total | $ | |||||||
The Company entered into a Singapore office lease for January 2027 through December 2028, with total base rent of $221, a two-month rent-free fit-out period beginning November 2026 and a one-year renewal option. The lease had not commenced at September 30, 2026 and is excluded from the tables above and weighted-average remaining lease term.
Legal Proceedings and Claims
Note 10 – Stockholders’ Equity
Dividends Paid
Total cash dividends paid were approximately $13.6 million for the nine months ended September 30, 2026. Dividends payable of $0.7 million and $1.2 million at September 30, 2026 and December 31, 2025, respectively, consist of accrued dividends on unvested restricted shares under the Company's incentive compensation plan.
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Changes in Outstanding Shares
The following table summarizes changes in the number of shares of common stock outstanding for the nine months ended September 30, 2026:
| Description | Number of Shares | |||||||
Shares outstanding at December 31, 2025 | ||||||||
| Shares issued (e.g., equity grants) | ||||||||
| Share forfeitures | ( | |||||||
Shares outstanding at September 30, 2026 | ||||||||
Note 11 - Net Income per Common Share
Basic net income per common share is based on the weighted-average number of common shares outstanding during the applicable periods. Diluted net income (loss) per common share includes the effect of potential common shares when dilutive.
For the three months ended September 30, 2026, the change in accounting estimate related to vessel depreciation increased depreciation expense and reduced both basic and diluted net income per common share by approximately $0.02 0.05
For the three months ended September 30, 2026 and 2025, restricted stock awards representing approximately 504,000 and 464,000 common shares, respectively, were excluded from the computation of diluted net income per common share as their inclusion would have been anti-dilutive. For the nine months ended September 30, 2026 and 2025, restricted stock awards representing approximately 1,094,000 and 1,108,000 common shares, respectively, were excluded from the computation of diluted net income per common share as their inclusion would have been anti-dilutive.
The following table summarizes the calculation of basic and diluted income per share:
| Three Months Ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Weighted Average Shares - Basic | ||||||||||||||||||||||||||||||||||||||
| Dilutive effect of restricted stock awards | ||||||||||||||||||||||||||||||||||||||
| Weighted Average Shares - Diluted | ||||||||||||||||||||||||||||||||||||||
| Basic net income per share | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Diluted net income per share | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Note 12. Employee Benefit Plans
Defined Contribution Plan
The Company sponsors a defined contribution 401(k) retirement savings plan for eligible employees. Under the plan, employees may elect to contribute a portion of their eligible compensation, subject to IRS limitations.
Employer Matching Contributions
The Company provides a 100 % match on the first 4 % of eligible compensation that employees contribute. These matching contributions are made in cash and vest immediately.
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For the three months ended September 30, 2026 and 2025, the Company recognized expense of approximately $58 and $52 , respectively, related to these matching contributions. For the nine months ended September 30, 2026 and 2025, the Company recognized an expense of approximately $257 and $285 for matching contributions.
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Note 13 – Segment Information and Geographic Data
The Company's shipping segment focuses on providing seaborne dry bulk logistics and transportation services. This segment's goal is to generate both current income and capital appreciation through voyage and time charter agreements. Vessels that are owned or chartered by the Company operate globally, resulting in voyage and charter revenues from various geographic regions.
The CEO, acting as the Chief Operating Decision Maker (CODM), assesses profitability and asset performance using Time Charter Equivalent ("TCE") revenues. The primary expense analyzed by the CODM is voyage expenses, which are reported separately in the condensed consolidated statements of operations. TCE is a non-GAAP performance measure widely used in the shipping industry and is considered by management to be the key indicator of vessel operating performance.
In assessing performance and making resource allocation decisions, the CODM reviews both segment-level results and the Company’s consolidated financial results, which are prepared in accordance with U.S. GAAP.
The following tables present selected financial information with respect to our reportable segment:
| Three Months Ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Shipping segment | ||||||||||||||||||||||||||
| Voyage revenue | $ | $ | $ | |||||||||||||||||||||||
| Charter revenue | ||||||||||||||||||||||||||
| Shipping segment total revenue | $ | $ | $ | $ | ||||||||||||||||||||||
| Reconciliation: | ||||||||||||||||||||||||||
All other revenue (1) | ||||||||||||||||||||||||||
| Total consolidated revenue | $ | $ | $ | $ | ||||||||||||||||||||||
| Shipping segment total revenue | $ | $ | $ | $ | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Voyage expense | ||||||||||||||||||||||||||
TCE revenue (2) | $ | $ | $ | $ | ||||||||||||||||||||||
| Reconciliation to net income: | ||||||||||||||||||||||||||
| Port terminal & stevedore revenue | ( | ( | ( | ( | ||||||||||||||||||||||
| Charter hire expense | ||||||||||||||||||||||||||
| Vessel operating expenses | ||||||||||||||||||||||||||
| Terminal Expenses | ||||||||||||||||||||||||||
| General and administrative | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Loss (gain) on vessel and equipment sold | ( | ( | ||||||||||||||||||||||||
| Total other expense, net | ||||||||||||||||||||||||||
| Total consolidated net income | $ | $ | $ | $ | ||||||||||||||||||||||
(1) All other revenue includes revenue from our port and terminal operations, as well as other ancillary services.
(2) TCE revenue represents shipping segment total revenue less voyage expenses and is considered the segment measure of profit/loss.
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Geographical Disclosure
Revenue from external customers is attributed to geographic areas as follows:
Three Months Ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| United States | $ | $ | $ | $ | ||||||||||||||||||||||
| Canada | ||||||||||||||||||||||||||
| Singapore | ||||||||||||||||||||||||||
| Germany | ||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||
| Total consolidated revenue | $ | $ | $ | $ | ||||||||||||||||||||||
(1) This includes revenue from various regions across Asia, Europe, South America, and other international markets.
Revenue is presented geographically based on the customer's country of domicile.
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Note 14 - Subsequent Events
In October 2026, Nordic Bulk Partners LLC (the “Borrower”), a wholly owned subsidiary of the Company, borrowed $145.0 million under a senior secured term loan facility (the “Facility”) provided by a syndicate of lenders pursuant to a credit agreement dated as of October 16, 2026. Crédit Agricole Corporate and Investment Bank serves as administrative agent and security trustee under the Facility. The proceeds were used (i) to repay the $38.7 million outstanding under the $50 million Senior Secured Term Loan Facility dated August 14, 2024, (ii) on October 23, 2026, to exercise the vessel purchase options under the Bulk Nordic Seven LLC, Bulk Nordic Eight LLC, Bulk Nordic Nine LLC and Bulk Nordic Ten LLC financing obligations for an aggregate purchase price of $96.3 million, including outstanding principal of $95.3 million (see Note 5) and (iii) to pay $1.5 million of fees under the Facility. The remaining $8.4 million was retained for general corporate purposes.
Borrowings under the Facility bear interest at three-month Term SOFR, subject to a zero percent floor, plus a margin of 1.60 % per annum. Principal is repayable in 24 quarterly installments of approximately $2.8 million each, commencing January 31, 2027, with an additional balloon payment of approximately $77.4 million due at maturity in October 2032. The Facility is guaranteed by the Company and secured by first-priority mortgages on seven vessels owned by the Company’s wholly owned subsidiaries.
At the October 23, 2026 funding date, the estimated fair value of borrowings under the Facility approximated their aggregate principal amount of $145.0 million, reflecting borrowing terms consistent with prevailing market conditions for comparable financing arrangements. No borrowings under the Facility were outstanding as of September 30, 2026.
The Facility requires the Company, as parent guarantor, to maintain minimum consolidated liquidity of $30.0 million, minimum consolidated net worth of $85.0 million and a maximum ratio of total indebtedness to consolidated net worth of 2.00 to 1.00. The Facility also requires minimum security coverage of 135 %, in each case as defined in the Facility agreement. Additional indebtedness, liens, asset dispositions and investments by the Borrower are restricted, subject to specified exceptions. Dividends and other distributions by the Company are restricted while an event of default is continuing.
The Company expects to recognize an aggregate loss on extinguishment of debt and financing obligations of approximately $2.7 million in the fourth quarter of 2026 in connection with the refinancing.
On November 3, 2026, the Company's Board of Directors declared a quarterly cash dividend of $
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with our consolidated financial statements and footnotes thereto contained in this report.
Forward Looking Statements
All statements other than statements of historical fact included in this Form 10-Q including, without limitation, statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding our financial position, business strategy and the plans and objectives of management for future operations, are forward looking statements. When used in this Form 10-Q, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or our management, identify forward looking statements. Such forward looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially from those contemplated by the forward looking statements as a result of the risk factors and other factors detailed in our filings with the Securities and Exchange Commission. All subsequent written or oral forward looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph.
Important Financial and Operational Terms and Concepts
The Company uses a variety of financial and operational terms and concepts when analyzing its performance.
These include revenue recognition, deferred revenue, allowance for doubtful accounts, vessels and depreciation and long-lived assets impairment considerations, as defined above as well as the following:
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Voyage Revenue. Voyage revenue is derived from voyage charters which involve the carriage of cargo from a load port to a discharge port, which is predetermined in each voyage contract. Gross revenue is calculated by multiplying the agreed rate per ton of cargo by the number of tons loaded. The Company directs how and for what purpose the vessel is used and therefore, these voyage contracts do not contain leases.
Charter Revenue. Charter revenue is earned when the Company lets a vessel it owns or operates to a charterer for a specified period of time. Charter revenue is based on the agreed rate per day. These time-charter arrangements contain leases because the lessee has the power to direct the use and receives substantially all of the economic benefits from the use of the vessel. The operating lease component and the vessel operating expense non-lease component of a time-charter contract are reported as a single component.
Terminal & Stevedore Revenue. Terminal & Stevedore revenue is derived from inbound and outbound cargo handling services at ports which the Company operates in. Gross revenue is earned typically based on a per-unit rate for volumes handled.
Voyage Expenses. The Company incurs expenses for voyage charters, including bunkers (fuel), port charges, canal tolls, brokerage commissions and cargo handling operations, which are expensed as incurred.
Charter Expenses. The Company charters in vessels to supplement its owned fleet to support its voyage charter operations. The Company hires vessels under time charters with third party vessel owners, and recognizes the charter hire payments as an expense on a straight-line basis over the term of the charter. Charter hire payments are typically made in advance, and the unrecognized portion is reflected as advance hire in the accompanying consolidated balance sheets. Under the time charters, the vessel owner is responsible for the vessel operating costs such as crews, maintenance and repairs, insurance, and stores. The Company does not record a right-of-use asset or lease liability for any arrangement less than one year.
Vessel Operating Expenses. Vessel operating expenses represent the cost to operate the Company’s owned vessels. Vessel operating expenses include crew hire and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, tonnage taxes, other miscellaneous expenses, and technical management fees. These expenses are recognized as incurred. Technical management services include day-to-day vessel operations, performing general vessel maintenance, ensuring regulatory and classification society compliance, arranging the hire of crew, and purchasing stores, supplies, and spare parts.
Terminal & Stevedore Expenses. Terminal & Stevedore expenses represent the cost to provide the Company's cargo handling services. Terminal & Stevedore expenses include direct labor and related costs, the cost of insurance, expenses relating to repairs and maintenance of shore based equipment, trucking, and other direct miscellaneous expenses.
Fleet Data. The Company believes that the measures for analyzing future trends in its results of operations consist of the following:
Shipping days. The Company defines shipping days as the aggregate number of days in a period during which its owned or chartered-in vessels are performing either a voyage charter (voyage days) or a time charter (time charter days).
Daily vessel operating expenses. The Company defines daily vessel operating expenses as vessel operating expenses divided by ownership days for the period. Vessel operating expenses include crew hire and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes, other miscellaneous expenses, and technical management fees.
Chartered in days. The Company defines chartered in days as the aggregate number of days in a period during which it chartered in vessels from third party vessel owners.
Time Charter Equivalent ‘‘TCE’’ rates. The Company defines TCE rates, a non-GAAP financial measure, as voyage and charter revenues less voyage expenses, adjusted to exclude unrealized gains and losses on fuel swap contracts included in voyage expenses, divided by total shipping days. Realized gains and losses on fuel swap contracts remain included in voyage expenses for purposes of this calculation. TCE rates are commonly used in the shipping industry to compare daily earnings generated by vessels operating under time charters with those operating under voyage charters, since voyage charter revenues generally are not expressed on a per-day basis. The Company believes TCE rates facilitate comparisons of its operating performance across periods despite changes in the mix of charter arrangements. The Company’s calculation may differ from similarly titled measures reported by other companies.
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Selected Financial Information
For the three months ended September 30, | For nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||||||||||
| Voyage revenue | $ | 193,141 | $ | 155,271 | $ | 516,838 | $ | 411,200 | ||||||||||||||||||
| Charter revenue | 18,814 | 9,298 | 42,725 | 26,141 | ||||||||||||||||||||||
| Terminal & Stevedore Revenue | 7,102 | 4,101 | 17,193 | 10,820 | ||||||||||||||||||||||
| Total revenue, net | 219,057 | 168,670 | 576,756 | 448,161 | ||||||||||||||||||||||
| Voyage expense | 77,292 | 73,208 | 229,944 | 211,297 | ||||||||||||||||||||||
| Charter hire expense | 50,717 | 33,882 | 129,005 | 82,947 | ||||||||||||||||||||||
| Vessel operating expenses | 22,607 | 21,736 | 66,432 | 67,289 | ||||||||||||||||||||||
| Terminal & stevedore expenses | 5,293 | 3,134 | 12,621 | 8,372 | ||||||||||||||||||||||
| Total cost of transportation and service revenue | 155,909 | 131,961 | 438,002 | 369,905 | ||||||||||||||||||||||
| Transportation and service depreciation and amortization | 11,876 | 10,165 | 36,113 | 30,632 | ||||||||||||||||||||||
| Gross Profit | 51,272 | 26,545 | 102,641 | 47,624 | ||||||||||||||||||||||
| Other operating expenses | 7,671 | 9,931 | 26,732 | 24,431 | ||||||||||||||||||||||
| Loss (gain) on vessel and equipment sold | — | (309) | 358 | (309) | ||||||||||||||||||||||
| Income from operations | 43,601 | 16,922 | 75,551 | 23,502 | ||||||||||||||||||||||
| Total other expense, net | (4,048) | (3,935) | (11,852) | (15,613) | ||||||||||||||||||||||
| Net income | 39,552 | 12,988 | 63,699 | 7,889 | ||||||||||||||||||||||
| Income attributable to non-controlling interests | (1,292) | (779) | (1,942) | (403) | ||||||||||||||||||||||
| Net income attributable to Pangaea Logistics Solutions Ltd. | $ | 38,261 | $ | 12,208 | $ | 61,756 | $ | 7,485 | ||||||||||||||||||
| Net income per common share | ||||||||||||||||||||||||||
| Basic net income per share | $ | 0.59 | $ | 0.19 | $ | 0.96 | $ | 0.12 | ||||||||||||||||||
| Diluted net income per share | $ | 0.59 | $ | 0.19 | $ | 0.95 | $ | 0.12 | ||||||||||||||||||
| Weighted-average common shares outstanding - basic | 64,396,991 | 63,729,227 | 64,329,809 | 63,901,455 | ||||||||||||||||||||||
| Weighted-average common shares outstanding - diluted | 64,901,369 | 64,823,069 | 64,793,780 | 65,009,188 | ||||||||||||||||||||||
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| September 30, 2026 | December 31, 2025 | |||||||||||||
| Selected Data from the Consolidated Balance Sheets | ||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 145,194 | $ | 103,324 | ||||||||||
| Total assets | $ | 995,995 | $ | 928,096 | ||||||||||
| Total secured debt, including financing obligations and finance leases, net | $ | 338,272 | $ | 372,208 | ||||||||||
| Total shareholders' equity | $ | 528,333 | $ | 474,736 | ||||||||||
| For the nine months ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Selected Data from the Consolidated Statements of Cash Flows | ||||||||||||||
| Net cash provided by operating activities | $ | 83,141 | $ | 38,601 | ||||||||||
| Net cash provided by investing activities | $ | 7,028 | $ | 1,911 | ||||||||||
| Net cash used in financing activities | $ | (48,299) | $ | (33,027) | ||||||||||
Key Operating Metrics
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Shipping Days | ||||||||||||||||||||||||||
| Voyage days | 5,319 | 5,377 | 15,390 | 15,148 | ||||||||||||||||||||||
| Time charter days | 1,020 | 495 | 2,631 | 2,156 | ||||||||||||||||||||||
Total shipping days (1) | 6,339 | 5,872 | 18,021 | 17,304 | ||||||||||||||||||||||
TCE Rate ($/day) (2) | $ | 20,414 | $ | 15,559 | $ | 17,991 | $ | 13,063 | ||||||||||||||||||
(1)Shipping days are defined as the aggregate number of days in a period during which its owned or chartered-in vessels are performing either a voyage charter (voyage days) or time charter (time charter days).
(2)Time Charter Equivalent (“TCE”) rate is a non-GAAP measure commonly used in the shipping industry and represents shipping segment revenue, consisting of voyage revenue and charter revenue, less voyage expenses and unrealized gain/loss on bunker hedge's, divided by total shipping days.
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Non-GAAP Financial Measures
Management uses certain non-GAAP financial measures to evaluate the Company’s operating performance. These measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP.
The reconciliation of Gross profit to Adjusted Gross Profit and Net income to Adjusted EBITDA is as follows:
| Three Months Ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Gross Profit (GAAP) | ||||||||||||||||||||||||||
Gross Profit (1) | $ | 51,272 | $ | 26,545 | $ | 102,641 | $ | 47,624 | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Transportation and service depreciation and amortization | 11,876 | 10,165 | 36,113 | 30,632 | ||||||||||||||||||||||
Adjusted Gross Profit (Non-GAAP) (1) | $ | 63,148 | $ | 36,709 | $ | 138,754 | $ | 78,257 | ||||||||||||||||||
Adjusted EBITDA (2) | ||||||||||||||||||||||||||
| Net income | $ | 39,552 | $ | 12,988 | $ | 63,699 | $ | 7,889 | ||||||||||||||||||
| Interest expense, net | 4,414 | 5,555 | 12,966 | 16,993 | ||||||||||||||||||||||
| Depreciation and amortization | 11,915 | 10,214 | 36,224 | 30,735 | ||||||||||||||||||||||
| Income tax provision (included in Other income / expense) | 465 | 499 | 899 | 821 | ||||||||||||||||||||||
| EBITDA (Non-GAAP) | $ | 56,346 | $ | 29,255 | $ | 113,788 | $ | 56,438 | ||||||||||||||||||
| Adjustments to EBITDA | ||||||||||||||||||||||||||
| Loss (gain) on vessel and equipment sold | — | (309) | 358 | (309) | ||||||||||||||||||||||
| Share-based compensation | 653 | 614 | 2,975 | 2,695 | ||||||||||||||||||||||
| Unrealized (gain) loss on derivative instruments, net | (4,616) | (666) | (4,526) | 452 | ||||||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 52,384 | $ | 28,895 | $ | 112,596 | $ | 59,276 | ||||||||||||||||||
(1)Adjusted gross profit is defined as GAAP gross profit excluding transportation and service depreciation and amortization. Management believes this measure provides investors with additional insight into the operating performance of the Company’s shipping, terminal and stevedoring operations by excluding non-cash depreciation and amortization expenses associated with vessels and terminal and stevedoring assets. Adjusted gross profit is not a measure recognized under U.S. GAAP and should not be considered an alternative to gross profit, operating income or net income. The Company’s definition of adjusted gross profit may not be comparable to similarly titled measures used by other companies.
(2)Adjusted EBITDA represents net income before interest expense, interest income, income taxes, depreciation and amortization, gain or loss on sale of vessels, share-based compensation, unrealized gains or losses on derivative instruments and other non-operating or non-recurring items, if any. Management uses Adjusted EBITDA as a supplemental performance measure and believes it provides investors with useful information to evaluate the Company’s operating performance and its ability to generate cash flows from operations. Adjusted EBITDA is also reviewed periodically as a measure of financial performance by the Company’s Board of Directors. Adjusted EBITDA is not a measure recognized under U.S. GAAP and should not be considered an alternative to net income, operating income or any other indicator of operating performance prepared in accordance with U.S. GAAP.
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Industry Overview
We operate in a cyclical industry subject to macroeconomic shifts, geopolitical volatility and other factors. Our business is also subject to fluctuations in the supply and demand for vessels, together with global demand for drybulk commodities, which impact freight pricing.
The Baltic Dry Index (“BDI”), a broader market measure of the cost to transport drybulk commodities by sea, offers a market view into global supply demand trends and is considered the standard benchmark for drybulk cargo pricing. The BDI averaged 3,041 for the third quarter of 2026, up approximately 54%, compared to an average of 1,978 for the same quarter of 2025. The average published market rates for Panamax, Supramax, and Handysize vessels, reflecting the composition of the company's fleet, also increased approximately 28%, to an average of $18,016 in the third quarter of 2026 from $14,130 in the same period of 2025.
As a result of the industry's volatility, we have experienced fluctuations in our quarterly and annual operating results in the past, and we expect to continue experiencing such fluctuations in the future due to various factors, including cargo demand, vessel supply, competition, and seasonality.
Quarterly TCE Performance
For the three months ended September 30, 2026, the Company's TCE rates were up 31% to $20,414 from $15,559 for the three months ended September 30, 2025. The Company's achieved TCE rates increased from the previous quarter as overall dry bulk market rates strengthened for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The Company's achieved TCE rate for the three months ended September 30, 2026 outperformed the average of the Baltic panamax, supramax, and handysize market indexes by approximately 13% due to its long-term contracts of affreightment ("COAs"), its specialized fleet and its cargo-focused strategy.
Third Quarter Highlights
•Net income attributable to Pangaea Logistics Solutions Ltd. was approximately $38.3 million for three months ended September 30, 2026 as compared to net income of approximately $12.2 million for the same period of 2025.
•Diluted net income per share was $0.59 for three months ended September 30, 2026, as compared to diluted net income per share of $0.19 for the same period in 2025.
•Pangaea's TCE rates were $20,414 for the three months ended September 30, 2026 and $15,559 for the three months ended September 30, 2025.
•Adjusted EBITDA was $52.4 million and $28.9 million for the three months ended September 30, 2026 and September 30, 2025, respectively.
•At the end of the quarter, Pangaea had $145.2 million in cash, cash equivalents, and restricted cash.
Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025
Revenues
Pangaea’s revenues are derived predominately from voyage, time charters, and terminal and stevedore revenue. Total revenue for the three months ended September 30, 2026, was $219.1 million, compared to $168.7 million for the same period in 2025, a 30% increase. The increase in revenues was primarily driven by improved market freight rates. TCE rates increased to $20,414 per day in the third quarter of 2026 from $15,559 per day in the third quarter of 2025, while total shipping days increased from 5,872 days to 6,339 days. Revenues also benefited from higher terminal and stevedore revenues.
The components of our revenue are as follows:
Voyage Revenues: Voyage revenues increased by $37.9 million, or 24% for the three months ended September 30, 2026 to $193.1 million compared to $155.3 million for the same period in 2025. The increase was primarily due to higher market freight rates. The average Baltic Dry Index (“BDI”) for the third quarter of 2026 was 54% higher than in the comparable prior-year period, reflecting increased demand for dry bulk shipping and constrained vessel supply. The impact of higher freight rates was partially offset by an 1% decrease in voyage days, from 5,377 in the three months ended September 30, 2025 to 5,319 for the three months ended September 30, 2026.
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Charter Revenues: Charter revenues increased by $9.5 million, or 102%, to $18.8 million for the three months ended September 30, 2026, compared with $9.3 million for the same period in 2025. The increase was primarily attributable to a 106% increase in time charter days, from 495 to 1,020 days. The Company’s flexible chartering strategy enables it to selectively employ excess ship days, when available, under time charter arrangements rather than voyage charters.
Terminal & Stevedore Revenues: Terminal & Stevedore revenues increased by 73% to $7.1 million for the three months ended September 30, 2026, compared to $4.1 million for the same period in 2025, primarily due to the addition of two new port operations in Lake Charles and Port Aransas during 2026.
Operating and Business Expenses
In recent years, global cost inflation has contributed to higher vessel operating costs, including crew travel, equipment transportation, and drydocking. While we expect crew payroll expenses to remain stable in the near and medium term, other inflated costs may increase our vessels' daily operating expenses. Typically, any fuel cost increases during voyages are managed through bunker hedging or through fuel cost pass-through arrangements in long-term contracts.
The Components of our expenses are as follows:
Voyage Expenses: Voyage expenses increased by $4.1 million, or 6% to $77.3 million for the three months ended September 30, 2026, compared with $73.2 million for the same period in 2025. Bunker consumption costs increased by $8.4 million, or 21%, primarily due to higher average bunker prices. This was offset by an increase in unrealized gains of $5.3 million on bunker derivatives in the quarter. Port expenses increased by $3.0 million, or 10%, reflecting an increase in port days and increased activity at higher-cost U.S. ports. These increases were partially offset by a decrease in bad debt expense of $1.3 million and a $0.7 million decrease in freight relet expenses due to fewer relet transactions.
Charter Hire Expenses: Charter hire expenses for the three months ended September 30, 2026 were $50.7 million, compared to $33.9 million for the same period in 2025, a 50% increase. The increase was primarily due to increased market time charter rates. On a per-day basis, charter hire expenses averaged $17,827 in the third quarter of 2026, compared to $15,389 in 2025. In addition, there was a 29% increase in chartered-in days, from 2,202 days in the third quarter of 2025 to 2,845 days in the same period of 2026. The Company's flexible charter-in strategy allows it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.
Vessel Operating Expenses: Vessel operating expenses increased by $0.9 million, or 4%, to $22.6 million for the three months ended September 30, 2026, compared with $21.7 million for the same period in 2025. The increase reflected higher average operating expenses per ownership day, which rose approximately 10% to $6,467 from $5,873. The effect of higher daily expenses was partially offset by a 6% decrease in ownership days to 3,496 days from 3,701 days, primarily attributable to the sale of two vessels.
Terminal & Stevedore Expenses: Terminal & Stevedore expenses increased by 69% to $5.3 million for the three months ended September 30, 2026, compared to $3.1 million for the same period in 2025, in line with the increase in terminal revenues and the addition of new port operations over the period.
General and Administrative Expenses: General and administrative expenses decreased by 23% to $7.6 million for the three months ended September 30, 2026 compared to $9.9 million for the same period in 2025. The decrease was primarily attributable to a $0.5 million decrease in accrued performance-based compensation and other compensation related costs and a $1.0 million reduction resulting from the classification of management fees of our wholly-owned technical operations which are now recorded in Vessel operating expenses.
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Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
Revenues
The Company derives its revenues primarily from voyage and time charters. Total revenue increased by 29% to $576.8 million for the nine months ended September 30, 2026, compared with $448.2 million for the same period in 2025. The average time charter equivalent (“TCE”) rate increased by 38% to $17,991 per day from $13,063 per day. The favorable effect of higher market rates for panamax, supramax, and handysize vessels on TCE revenue also benefited from a 4% increase in total shipping days, from 17,304 days to 18,021 days.
The Company derives its revenues primarily from voyage and time charters. Total revenue increased by 29% to $576.8 million for the nine months ended September 30, 2026, compared with $448.2 million for the same period in 2025. The average time charter equivalent (“TCE”) rate increased by 38% to $17,991 per day from $13,063 per day. The favorable effect of higher market rates for panamax, supramax, and handysize vessels on TCE revenue also benefited from a 4% increase in total shipping days, from 17,304 days to 18,021 days.
Components of revenue are as follows:
Voyage Revenues: Voyage revenues increased by $105.6 million, or 26%, for the nine months ended September 30, 2026, compared with the same period in 2025. The increase was primarily attributable to higher freight rates and, to a lesser extent, a 2% increase in voyage days. The average published market rates for Panamax, Supramax, and Handysize vessels, reflecting the composition of the company's fleet, increased approximately 42% year-over-year.
Charter Revenues: Charter revenue increased by $16.6 million to $42.7 million for the nine months ended September 30, 2026, compared with $26.1 million for the same period in 2025. The increase was attributable to a 34% increase in average charter revenue per day, to approximately $16,239 from $12,125, and a 22% increase in time charter days, to 2,631 days from 2,156 days.
Terminal & Stevedore Revenues: Terminal & Stevedore revenues increased by 59% for the nine months ended September 30, 2026 to $17.2 million compared to $10.8 million for the same period in 2025 due to the addition of new port operations in the current year.
Operating and Business Expenses
The Components of our expenses are as follows:
Voyage Expenses: Voyage expenses were $229.9 million for the nine months ended September 30, 2026, compared to $211.3 million for the same period in 2025, reflecting an increase of 9%. The increase was primarily attributable to higher bunker costs resulting from increased fuel prices of $13.1 million, offset by unrealized gain on bunker derivatives of $5.4 million. In addition, increased activity at higher-cost U.S. ports and increased port activity resulted in an increase of $14.4 million in port expenses. This was offset by a decrease in cargo-relet expenses of $3.1 million due to decline in activity. Voyage days increased by 2% to 15,390 days from 15,148 days.
Charter Hire Expenses: Charter hire expenses for the nine months ended September 30, 2026 were $129.0 million, compared to $82.9 million for the same period in 2025, a 56% increase. The increase was primarily attributable to higher market charter rates and increased chartered-in activity. Average published market rates for Supramax, Panamax and Handysize vessels increased by approximately 43%, while chartered-in days increased by 19% to 7,882 days from 6,607 days.
Vessel Operating Expenses: Vessel operating expenses for the nine months ended September 30, 2026 were $66.4 million, compared to $67.3 million for the same period in 2025, a decrease of approximately 1%. This decrease was due to the reduction of the owned fleet during the period by two vessels. Total vessel operating expenses on a per day basis were $6,320 for the nine months ended September 30, 2026 and $6,050 for the same period in 2025.
Terminal & Stevedore Expenses: Terminal & Stevedore expenses increased by 51% to $12.6 million for the nine months ended September 30, 2026, compared to $8.4 million for the same period in 2025. This increase was in line with the higher terminal and stevedore revenue during the period due to new port operations in the current year.
General and Administrative Expenses: For the nine months ended September 30, 2026, general and administrative expenses were $26.6 million, compared to $24.3 million for the same period in 2025. The $2.3 million increase in general and administrative expenses reflected the classification of management fees of our wholly-owned technical operations which are now recorded in Vessel operating expenses. Excluding this reclassification, the increase in general and administrative expense was primarily attributable to a $1.6 million increase in accrued incentive compensation costs, higher corporate overhead of $1.0 million due to additional audit fees associated with the timing
38
of billings and consents related to the transition between auditors, and corporate matters and Board projects. The remaining increase was primarily attributable to higher compensation costs due to increased headcount and wages.
Significant accounting estimates
The discussion and analysis of the Company’s financial condition and results of operations is based upon the Company’s consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the percentage completion of voyages in process, the establishment of the allowance for credit losses, the estimate of salvage value used in determining vessel depreciation expense, and the evaluation of long-lived assets for impairment.
Long-lived Assets Impairment Considerations
The Company evaluates the recoverability of its fixed assets and other long-lived assets in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets.
The Company performs this assessment at the individual vessel level, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets.
During the nine months ended September 30, 2026, the Company classified one vessel as held for sale. Upon classification, the vessel was written down to its estimated fair value less costs to sell, resulting in the recognition of a loss on sale. The vessel was subsequently sold in May 2026 for approximately $9.6 million.
During the nine months ended September 30, 2026, the Company classified one vessel as held for sale. Upon classification, the vessel was written down to its estimated fair value less costs to sell, resulting in the recognition of a loss on sale. The vessel was subsequently sold in May 2026 for approximately $9.6 million.
For the remaining vessels, the Company concluded that no indicators of impairment were present during the nine months ended September 30, 2026. Accordingly, no recoverability analysis was required for those vessels. The Company did not identify any triggering events during the nine months ended September 30, 2025.
Liquidity and Capital Resources
The Company has historically financed its capital needs through cash flow from operations, common stock issuance, non-controlling interest contributions, and long-term debt and finance leases. Capital has primarily been allocated to operations, vessel acquisitions, and debt servicing. While the Company may pursue additional debt or equity financing as needed, adverse market conditions could limit access to favorable terms, potentially restricting business expansion opportunities.
As of September 30, 2026, and December 31, 2025, the Company’s working capital was $106.5 million and $87.7 million, respectively.
Cash Flows:
The table below summarizes our primary sources and uses of cash for the nine months ended September 30, 2026 and 2025. We have derived these summarized statements of cash flows from the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Amounts in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.
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For the nine months ended | ||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||
| Net cash provided by/(used in): | ||||||||||||||
| Operating activities | 83,141 | 38,601 | ||||||||||||
| Investing activities | 7,028 | 1,911 | ||||||||||||
| Financing activities | (48,299) | (33,027) | ||||||||||||
| Net change | $ | 41,870 | $ | 7,485 | ||||||||||
Operating Activities
Net cash provided by operating activities increased by $44.5 million to $83.1 million for the nine months ended September 30, 2026, compared with $38.6 million for the same period in 2025. The increase was primarily attributable to a $55.8 million increase in net income, an $16.4 million increase in cash provided by changes in accounts payable, accrued expenses and other current liabilities, and a $10.4 million increase in cash provided by changes in deferred revenue. These favorable changes were partially offset by additional cash used for inventories of $27.0 million, advance hire, prepaid expenses and other current assets of $9.3 million, and accounts receivable of $4.8 million.
Investing Activities
Net cash provided by investing activities increased by $5.1 million to $7.0 million for the nine months ended September 30, 2026, compared with $1.9 million for the same period in 2025. The increase primarily reflected the absence of the $2.7 million acquisition of a non-controlling interest in 2025 and a $1.9 million increase in proceeds from sales of vessels and equipment, from $7.9 million to $9.7 million. In addition, the Company received $0.7 million in distributions from non-consolidated subsidiaries in 2026, compared with contributions of $0.8 million in 2025. These favorable changes were partially offset by lower dividends received from equity method investments, which declined to $2.4 million from $3.1 million, and higher purchases of vessels, equipment and software, which increased to $5.8 million from $5.5 million.
Financing Activities
Net cash used in financing activities increased by $15.3 million to $48.3 million for the nine months ended September 30, 2026, compared with $33.0 million for the same period in 2025. The increase primarily reflected the absence of $18.0 million in proceeds from financing obligations received in 2025, a $1.9 million increase in repayments of financing obligations, a $0.4 million increase in cash dividends paid and a $0.3 million increase in repayments of long-term debt. These factors were partially offset by the absence of $2.2 million in dividends paid to non-controlling interests and $2.0 million in ordinary share repurchases, together with $0.8 million in proceeds from long-term debt and a $0.3 million decrease in finance lease payments.
The Company has demonstrated its unique ability to adapt to changing market conditions by maintaining a nimble chartered-in profile to meet its cargo commitments. We believe, given our current cash holdings, if drybulk shipping rates do not decline significantly from current levels, our capital resources, including cash anticipated to be generated within the year, are sufficient to fund our operations for at least the next twelve months.
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Capital Expenditures
The Company’s capital expenditures relate to the purchase of vessels and interests in vessels, capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels, as well as port & terminal operations. As of September 30, 2026, the Company owned two Panamax, two Ultramax Ice Class 1C, two Ultramax, eight Supramax and four Post-Panamax Ice Class 1A drybulk vessels and fourteen Handysize vessels. The Company owns two-thirds of its consolidated subsidiary Nordic Bulk Holding Company Ltd. (“NBHC”) which owns a fleet of six Panamax Ice Class 1A drybulk vessels. The Company also holds a 50 % equity interest in the owner of a deck barge and operates port and terminal facilities in Fort Lauderdale, Florida, Baltimore, Maryland, Port Aransas, Texas, Tampa, Florida, and Lake Charles, Louisiana.
In addition to vessel acquisitions that the Company may undertake in future periods, its other major capital expenditures include funding its program of regularly scheduled drydockings necessary to make improvements to its vessels, as well as to comply with international shipping standards and environmental laws and regulations. Funding expenses associated with these requirements will be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce the Company’s available days and operating days during that period. The Company capitalized drydocking costs totaling approximately 13.9 million and $13.8 million for the nine months ended September 30, 2026 and 2025, respectively. For the remainder of 2026, the Company expects to perform six intermediate and special surveys at an aggregate estimated cost of approximately $8.7 million.
Off-Balance Sheet Arrangements
The Company does not have off-balance sheet arrangements at September 30, 2026 or December 31, 2025.
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ITEM 3. Quantitative and Qualitative Disclosures About Market Risks
No significant changes to our market risk have occurred since December 31, 2025. For a discussion of market risks affecting us, refer to Part II, Item 7A—"Quantitative and Qualitative Disclosures About Market Risk" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
ITEM 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
With the participation of our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2026. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
Based on the evaluation of our disclosure controls and procedures as of September 30, 2026, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the three months ended September 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
There are inherent limitations to the effectiveness of any system of internal control over financial reporting. Accordingly, even an effective system of internal control over financial reporting can only provide reasonable assurance with respect to financial statement preparation and presentation in accordance with U.S. GAAP. Our internal controls over financial reporting are subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may be inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time.
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PART II: OTHER INFORMATION
Item 1 - Legal Proceedings
From time to time, we are involved in various other disputes and litigation matters that arise in the ordinary course of our business, principally cargo claims. Those claims, even if lacking merit, could result in the expenditure by us of significant financial and managerial resources.
Item 1A – Risk Factors
In addition to the other information set forth in this report, readers should carefully consider the factors discussed in "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect the Company's business, financial condition, or future results.
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3 - Defaults Upon Senior Securities
None.
Item 4 – Mine Safety Disclosures
None.
Item 5 - Other Information
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Item 6 – Exhibits
| Exhibit No. | Description | ||||
| 31.1 | |||||
| 31.2 | |||||
| 32.1 | |||||
| 32.2 | |||||
| EX-101.INS | XBRL Instance Document | ||||
| EX-101.SCH | XBRL Taxonomy Extension Schema | ||||
| EX-101.CAL | XBRL Taxonomy Extension Calculation Linkbase | ||||
| EX-101.DEF | XBRL Taxonomy Extension Definition Linkbase | ||||
| EX-101.LAB | XBRL Taxonomy Extension Label Linkbase | ||||
| EX-101.PRE | XBRL Taxonomy Extension Presentation Linkbase | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | ||||
______________
* Filed herewith
44
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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 on November 5, 2026.
| PANGAEA LOGISTICS SOLUTIONS LTD. | ||||||||
| By: | /s/ Mads Boye Petersen | |||||||
| Mads Boye Petersen | ||||||||
| Chief Executive Officer | ||||||||
| (Principal Executive Officer) | ||||||||
| By: | /s/ Gianni Del Signore | |||||||
| Gianni Del Signore | ||||||||
| Chief Financial Officer | ||||||||
| (Principal Financial and Accounting Officer) | ||||||||
45
Exhibit 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Mads Boye Petersen, certify that:
| 1 | I have reviewed this quarterly report on Form 10-Q of Pangaea Logistics Solutions Ltd.; | ||||
| 2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||
| 3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||
| 4 | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||||
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
| c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
| d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
| 5 | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | ||||
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |||||||
| Date: | November 5, 2026 | /s/ Mads Boye Petersen | ||||||
| Mads Boye Petersen | ||||||||
| Chief Executive Officer | ||||||||
| (Principal Executive Officer) | ||||||||
Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Gianni Del Signore, certify that:
| 1 | I have reviewed this quarterly report on Form 10-Q of Pangaea Logistics Solutions Ltd.; | ||||
| 2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||||
| 3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||||
| 4 | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||||
| a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
| b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
| c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
| d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
| 5 | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | ||||
| a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
| b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |||||||
| Date: | November 5, 2026 | /s/ Gianni Del Signore | ||||||
| Gianni Del Signore | ||||||||
| Chief Financial Officer | ||||||||
| (Principal Financial Officer) | ||||||||
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Pangaea Logistics Solutions Ltd. (the “Company”) on Form 10-Q for the quarter ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mads Boye Petersen, Chief Executive Officer of the Company, certify, pursuant to Rule 13a-14(b) under the Securities and Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
| 1 | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||||
| 2 | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | ||||
| Date: | November 5, 2026 | /s/ Mads Boye Petersen | ||||||
| Mads Boye Petersen | ||||||||
| Chief Executive Officer | ||||||||
| (Principal Executive Officer) | ||||||||
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Pangaea Logistics Solutions Ltd. (the “Company”) on Form 10-Q for the quarter ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gianni Del Signore, Chief Financial Officer of the Company, certify, pursuant to Rule 13a-14(b) under the Securities and Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
| 1 | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||||
| 2 | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | ||||
| Date: | November 5, 2026 | /s/ Gianni Del Signore | ||||||
| Gianni Del Signore | ||||||||
| Chief Financial Officer | ||||||||
| (Principal Financial Officer) | ||||||||