A. Quantitative Information About Market Risk Interest Rate Risk We are subject to market risks relating to changes in interest rates because we have floating rate debt outstanding, which is based on U.S. dollar SOFR plus, in the case of each credit facility, a specified margin and, for facilities previously based on LIBOR, a credit adjustment spread. Our objective is to manage the impact of interest rate changes on our earnings and cash flow in relation to our borrowings and to this effect, when we deem appropriate, we use derivative financial instruments. During the year ended December 31, 2023 we entered into certain interest rate derivative contracts which were all terminated during the same year for which we received an aggregate payment of $0.33 million. We did not have any outstanding interest rate derivatives and we did not enter into any interest rate derivative contracts during the year ended December 31, 2024. During the year ended December 31, 2025 we entered into certain interest rate derivative contracts. The total notional principal amount of these swaps as of December 31, 2025 was $50.0 million. The swaps have specified rates and durations. Refer to the table in Note 11 of the consolidated financial statements included elsewhere in this annual report which summarizes the interest rate swaps in place as of December 31, 2025. Under these transactions, the counterparty bank effects quarterly floating-rate payments to us for the relevant amount based on based on the three-month SOFR and we make quarterly payments to the bank on the relevant amount at the respective fixed rates. We may enter into additional interest rate swap agreements in order to manage future interest costs and the risk associated with changing interest rates. We entered into these interest rate swap agreements to mitigate our exposure to interest rate fluctuations and at a time when we believed long-term interest rates were reasonably low. None of our interest rate swap meets hedge accounting criteria under accounting guidance relating to Derivatives and Hedging. Although we are exposed to credit-related losses in the event of non-performance in connection with such swap agreements, because the counterparties are major financial institutions, we consider the risk of loss due to their nonperformance to be minimal. Through these swap transactions, we effectively hedged the interest rate exposure of 12.26% of our loans outstanding as of December 31, 2025, which bear interest at SOFR. The following table sets forth the sensitivity of our existing loans as of December 31, 2025, as to a 100 basis point increase in SOFR, taking into account our interest rate swap agreements that are currently in place, during the next five years, and reflects the additional interest expense. Year Amount 2026 $ 3.1 million 2027 2.7 million 2028 2.3 million 2029 1.5 million 2030 $ 1.5 million Freight Derivatives and Bunker Swaps We are subject to markets risks relating to changes in charter rates because we have entered into a certain number of FFA's on the Panamax index, all of which matured in 2024. Generally freight derivatives may be used to hedge a vessel owner’s exposure to the charter market for a specified vessel size and period of time. Upon settlement, if the contracted charter rate is less than the average of the rates reported on an identified index for the specified vessel size and time period, the seller of the FFA is required to pay the buyer the settlement sum, being an amount equal to the difference between the contracted rate and the settlement rate, multiplied by the number of days of the specified period. Conversely, if the contracted rate is greater than the settlement rate, the buyer is required to pay the seller the settlement sum. If we take positions in FFAs or other derivative instruments we could suffer losses in the settling or termination of these agreements. This could adversely affect our results of operations and cash flow. Our FFA derivatives do not qualify as cash flow hedges for accounting purposes and therefore gains or losses are recognized in earnings. During the year ended December 31, 2024, we entered into a certain number of FFA on the Capesize index, all maturing in 2024. For the year ended December 31, 2024, we incurred net loss on FFAs of $0.5 million and as of December 31, 2024, we did not have any FFA derivatives outstanding. During the year ended December 31, 2025, we did not enter into any FFA derivatives and as of December 31, 2025, we did not have any FFA derivatives outstanding. We are also subject to markets risks relating to changes in the prices of bunkers prices because we have entered into a certain number of bunker swap contracts to manage our exposure to fluctuations of bunker price differentials associated with the consumption of bunkers by our vessels. Bunker swaps are agreements between two parties to exchange cash flows at a fixed price on bunkers, where volume, time period and price are agreed in advance. If we take positions in bunker swaps or other derivative instruments we could suffer losses in the settling or termination of these agreements. This could adversely affect our results of operations and cash flow. We used these bunker swaps as an economic hedge to reduce the risk on bunker price differentials. Our bunker swaps do not qualify as cash flow hedges for accounting purposes and therefore gains or losses are recognized in earnings. Bunker swaps are treated as assets/liabilities until they are settled. For the year ended December 31, 2024 we incurred a net gain of $0.2 million. During the year ended December 31, 2024, we did not enter into any bunker swaps, and as of December 31, 2024 we did not have any bunker swaps outstanding as all then existing bunker swaps matured in 2024. During the year ended December 31, 2025, we did not enter into any new bunker swaps and as of December 31, 2025, we did not have any bunker swaps outstanding. Foreign Currency Exchange Risk We generate all of our revenues in U.S. dollars, but for the year ended December 31, 2025 we incurred approximately 21.8% of our vessel operating expenses in currencies other than the U.S. dollar and the vast majority of our management fees to our Managers in currencies other than the U.S. dollar. The interest on our €100.0 million bond is also payable in EUR. As of December 31, 2025, approximately 29.7% of our outstanding accounts payable were denominated in currencies other than the U.S. dollar and were subject to exchange rate risk, as their value fluctuates with changes in exchange rates. A hypothetical 10.0% immediate and uniform adverse move in all currency exchange rates from the rates in effect as of December 31, 2025, would have increased our vessel operating expenses by approximately $2.1 million, our management fees to our Managers by approximately $2.4 million, our bond interest by approximately $0.3 million and the fair value of our outstanding accounts payable by approximately $0.3 million. As of December 31, 2025, the majority of our outstanding contractual obligations to our Managers were denominated in Euros, equivalent to $35.5 million. The USD equivalent of the €100.0 million bond as of December 31, 2025 was $117.4 million. In order to mitigate the risk from exchange rate fluctuations, we have entered into several currency forward agreements in the relation to the redemption of the bond principal for a total of €55.0 million at an average rate of 1.0717 EUR/USD. A hypothetical 10% immediate adverse move in the Euro exchange rate from the rate in effect as of December 31, 2025, would have increased our outstanding contractual obligations to our Managers by approximately $3.5 million and to the bond holders by approximately $5.7 million, taking into account the outstanding forward currency agreements. We may not enter into additional foreign exchange forward agreements in the future in relation to the expenditures denominated in Euros.