The following table sets forth summary information about our Vessel and the existing time charter relating to our Vessel as of May 30, 2019:

We believe that we are well regarded by our charterers for our expertise and safety in conducting our operations, the good performance of our Vessel and the first class cargo holds. We intend to leverage our expertise and relationships with our charterers and our Manager in growing our core business and pursuing further business and growth opportunities in the dry-bulk sector. As opportunities arise, we may acquire additional vessels and/or engage in investment opportunities incidental to the dry-bulk industry. We may fund possible growth plans through the use of cash on hand, cash from operations, debt financing which might also include capital lease financings, or equity offerings of our securities in the public or private markets. These transactions will be principally subject to management's expectation of future market conditions as well as our ability to acquire dry bulk carriers on favorable terms or at all, thus, we cannot assure you that we will grow the size of our Fleet or that we will be able to execute our plans for growth.

Listing Developments

On February 7, 2019, the Company announced that the NASDAQ Stock Market LLC has approved its application to have its common shares listed on the Nasdaq Capital Market. Castor's common shares began trading on NASDAQ at the opening of the market on February 11, 2019 under the ticker symbol "CTRM". The Company's common shares continue to trade on the Norwegian OTC under the ticker symbol "CASTOR".

Operating results

Factors Affecting Our Results of Operations

Castor believes that important concepts and measures for analyzing trends in its results of operations include the following:

Ownership days . Ownership days are the total number of calendar days in a period during which we owned our Vessel. Ownership days are an indicator of the size of our Fleet over a period and determine both the level of revenues and expenses recorded during that specific period .

Available days. Available days for the Fleet are the Ownership days after subtracting off-hire days associated with major scheduled repairs, vessel upgrades and dry-dockings or special or intermediate surveys. The shipping industry uses Available days to measure the aggregate number of days in a period during which vessels are available to generate revenues.

Fleet utilization . We calculate Fleet utilization by dividing the Available days during a period by the number of Ownership days during that period. Fleet utilization is used to measure a company's ability to efficiently find suitable employment for its vessels and minimize the number of days that its vessels are off-hire for reasons such as scheduled repairs, vessel upgrades, dry-dockings or special or intermediate surveys and other unforeseen events.

Off-hire. The period our Vessel is unable to perform the services for which it is required under a charter for reasons such as scheduled repairs, vessel upgrades, dry-dockings or special or intermediate surveys or other unforeseen events.

Dry-docking.   We periodically dry-dock our Vessel for inspection, repairs and maintenance and any modifications to comply with industry certification or governmental requirements.

Daily vessel operating expenses . The level of our vessel operating expenses, including crewing costs, insurance and maintenance costs. Our ability to control our vessel operating expenses also affects our financial results. These expenses include commission expenses, crew wages and related costs, the cost of insurance, expenses for repairs and maintenance, the cost of spares and consumable stores, lubricating oil costs, tonnage taxes and other miscellaneous expenses.

Daily company administration expenses .   Daily company administration expenses include administration expenses such as audit fees, independent directors' and executive officer compensation and other miscellaneous expenses and are calculated by dividing company administration expenses, including foreign exchange differences, by the Ownership days for the relevant period.

Daily management fees .   Daily management fees are calculated by dividing management fees by the Ownership days for the relevant time period and include the fees payable to our Manager for managing our Vessel.

Time charter. A time charter is a contract for the use of a vessel for a specific period of time during which the charterer pays substantially all of the voyage expenses, including port charges, bunker expenses and canal charges. The vessel owner pays the vessel operating expenses, which include crew costs, provisions, deck and engine stores and spares, lubricants, insurance, maintenance and repairs. The vessel owner is also responsible for each vessel's dry-docking and intermediate and special survey costs. Time charter rates are usually fixed during the term of the charter. Prevailing time charter rates do fluctuate on a seasonal and year-to-year basis and may be substantially higher or lower from a prior time charter agreement when the subject vessel is seeking to renew the time charter agreement with the existing charterer or enter into a new time charter agreement with another charterer. Fluctuations in time charter rates are influenced by changes in spot charter rates.

Time charter equivalent (TCE) Rate .  Our method of calculating TCE rate is determined by dividing voyage revenues (net of voyage expenses) by the Available days in the relevant period.  See below a more detailed discussion on the use by the Company of this Non-GAAP measure.

Our results of operations are affected by numerous factors. The principal factors that have impacted the business during the fiscal periods presented in the following discussion and analysis and that are likely to continue to impact our business are the following:

Employment and operation of our Vessel

A factor that impacts our profitability is the employment and operation of our Vessel which mainly requires; her regular maintenance and repair; effective crew selection and training; ongoing supply of our Vessel with the spares and the stores that she requires; contingency response planning; auditing of our Vessel's onboard safety procedures; arrangements for our Vessel's insurance; chartering of the vessel; training of onboard and on shore personnel with respect to the vessel's security and security response plans (ISPS); obtaining of ISM certification and performing the necessary audit for the vessel within the six months of taking over a vessel; and the ongoing performance monitoring of the vessel.

Financial, general and administrative management

The management of financial, general and administrative elements involved in the conduct of our business and ownership of our Vessel, requires us to manage our financial resources, including banking relationships, such as administration of bank accounts; manage our accounting system and records and financial reporting; monitor and ensure compliance with the legal and regulatory requirements affecting our business and assets; and manage our relationships with our service providers and customers.

Selected financial information

The following tables present selected unaudited consolidated financial information of the Company at the dates and for the periods presented. All amounts are expressed in United States Dollars except for share and per share data. This information was derived from the unaudited interim condensed consolidated statements for the periods presented.

Set forth below are selected operational and financial statistical data of our Fleet for each of the six month periods ended March 31, 2019 and 2018 that the Company believes are useful in better analyzing trends in its results of operations:

Daily Time Charter Equivalent (TCE) Rate. TCE rate, is a measure of the average daily revenue performance of a vessel. For time charters, the TCE rate is calculated by dividing total voyage revenues, less any voyage expenses and commissions to a related party, by the number of Available Days during that period. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses. However, we may incur voyage related expenses when positioning or repositioning vessels before or after the period of a time charter, during periods of commercial waiting time or while off-hire during dry-docking or due to other unforeseen circumstances. The TCE rate is not a measure of financial performance under U.S. GAAP (non-GAAP measure), and should not be considered as an alternative to voyage revenues, the most directly comparable GAAP measure, or any other measure of financial performance presented in accordance with U.S. GAAP. However, TCE rate is standard shipping industry performance measure used primarily to compare period-to-period changes in a company's performance and assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our calculation of TCE rates may not be comparable to that reported by other companies. The following table reflects the calculation of our TCE rates for the periods presented (amounts in U.S. dollars, except for Available Days):

EBITDA. We define EBITDA as earnings before interest and finance costs (if any), net of interest income, taxes (when incurred), depreciation and amortization. EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as investors, to assess our operating performance. We believe that EBITDA assists our management and investors by providing useful information that increases the comparability of our operating performance from period to period and against the operating performance of other companies in our industry that provide EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or companies of interest, other financial items, depreciation and amortization and taxes, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. We believe that including EBITDA as a measure of operating performance benefits investors in (a) selecting between investing in us and other investment alternatives and (b) monitoring our ongoing financial and operational strength. EBITDA is not a measure of financial performance under U.S. GAAP, does not represent and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. Therefore, EBITDA as presented below may not be comparable to similarly titled measures of other companies. The following table reconciles EBITDA to net income, the most directly comparable U.S. GAAP financial measure, for the periods presented:

Results of Operations

Six months ended March 31, 2019 compared to the six months ended March 31, 2018

Voyage revenues, net

Voyage revenues, net of address commissions, increased by $342,800, or 20.2%, to $2,038,131 in the six months ended March 31, 2019, as compared to $1,695,331 in the corresponding period of 2018. This increase was predominantly due to our Vessel being 100% utilized in the first semester of the current year, whereas, in the corresponding semester ended March 31, 2018, the vessel underwent dry-dock for approximately 29 days during which period the Vessel generated no revenues. The average daily revenue of the Vessel during the six month period ended March 31, 2019, after subtracting address commissions and voyage expenses (time charter equivalent or TCE, see definition above), was $10,843 per day compared to $10,761 per day for the previous year's first semester.

Voyage expenses

Voyage expenses increased by $15,766, or 32.2%, to $64,699 in the six months ended March 31, 2019, as compared to $48,933 in the corresponding period of 2018. This increase in voyage expenses is mainly due to bunker loss of $12,477 that we experienced in the current six month period ended March 31, 2019, which was the result of the decrease in bunker average prices, versus a gain of $38,386 experienced in the corresponding period of 2018. The respective increase was partly offset by the decrease in port and other voyage expenses in this year's first semester compared to that of the last year by approximately $35,096.

Vessel operating expenses

Vessel operating expenses were $902,061, which corresponds to a Vessel daily rate of $4,956 in the six-month period ended March 31, 2019, as compared to $955,725, or a Vessel daily rate of $5,251 in the six-month period ended March 31, 2018. This decrease of $53,664, or 5.6%, between the  compared periods is primarily associated with the fact that our Vessel was dry-docked in the six-month period ended March 31, 2018, during which period we incurred additional technical maintenance works (which were carried out simultaneously with the dry-dock of our vessel) and re-stocking of spares and supplies.

General and Administrative Expenses

During the six month periods ended March 31, 2019 and 2018, we incurred Company administration expenses of $47,792 and $40,592, respectively. The increase in Company administration expenses between the compared periods is attributed to the increase in the audit fees for the period. Company administrative expenses generally consist of audit fees, Chief Financial and Chief Executive Officer remuneration fees as well as other miscellaneous expenditures essential to conduct our business.

Public registration costs increased by $153,650 or 109.2%, from $140,761 in the six months ended March 31, 2018 to $294,411 in the six months ended March 31, 2019. The increase in public registration fees is directly associated with the registration  and listing of our common shares in the Norwegian OTC market on December 21, 2018 and the listing of our common shares in the NASDAQ stock exchange on February 11, 2019. Apart from registration and listing costs, public registration costs further include legal, consultancy and other costs incurred in connection with the subject listings.

Management fees- related party

During the six-month periods ended March 31, 2019 and 2018, we incurred $58,240 and $52,920 in management fees, respectively, or a daily fee of $320 and $291 per day on our Vessel, respectively. From December 16, 2017, onwards and for a period of two years thereof, we and our Manager agreed to re-adjust the daily management fee of our Vessel from $250 per day to $320 per day, which explains the increase in daily average management fees between the compared periods.

Depreciation and amortization

Depreciation and amortization expense comprises of Vessel's depreciation and the amortization of Vessel's capitalized dry-dock costs. Depreciation and amortization charges totaled $353,154 in the six months ended March 31, 2019 as compared to $283,671 in the six months ended March 31, 2018, thereby amounting to a $69,483, or a 24.5%, increase.

Amortization of deferred dry-docking costs was $204,648 during the six months ended March 31, 2019, compared to $136,432 during the corresponding period of 2018. The increase by $68,216, or 50.0%, between the compared periods exclusively relates to the amortization of deferred charges for a full semester in the current six-month period ended March 31, 2019, compared to a shorter amortization period in the six months ended March 31, 2018, as our Vessel completed its scheduled dry-dock on November 25, 2017.

The Vessel's depreciation did not significantly vary in the compared periods.

Significant Accounting Policies and Critical Accounting Policies

There have been no material changes to our significant accounting policies since September 30, 2018. For a description of our critical accounting policies and all of our significant accounting policies, see Note 2 to our audited consolidated financial statements included in our Annual Report on Form 20-F for the year ended September 30, 2018, which was filed with the SEC on January 31, 2019.

Liquidity and Capital Resources

We operate in a capital-intensive industry and, in the past, have financed the sole acquisition of our Vessel through equity. As future growth opportunities may arise, we expect to finance the purchase of additional vessels and other capital expenditures through a combination of borrowings from debt transactions, cash generated from operations and equity and debt financings.

Our liquidity requirements relate to funding working capital and maintaining cash reserves for the purpose of maintaining the quality of our Vessel, complying with international shipping standards and environmental laws and regulations and strengthening our position against adverse fluctuations in operating cash flows. Our funding and treasury activities are intended to maximize investment returns while maintaining appropriate liquidity.

For the six months ended March 31, 2019, our principal sources of funds were our operating cash flows. We frequently monitor our capital needs by projecting our fixed income and expenses, and seek to maintain adequate cash reserves to compensate for any budget overruns. Our short-term liquidity requirements are primarily the funding of working capital, including vessel operating expenses and payments under our management agreements. Our medium and long-term liquidity requirements relate to paying cash dividends, when we are able to do so, and funding capital expenditures, including, without limitation, the acquisition of additional vessels. Sources of funding for our medium and long-term liquidity requirements include cash flows from operations, new debt or capital lease financing we may negotiate, or  equity issuances in private or publicly held transactions.

As of March 31, 2019, we reported cash of $2,638,658, which represented an increase of $899,484, or 51.7%, from September 30, 2018. We currently have no indebtedness. We believe, given our current cash reserves, that if market conditions remain relatively stable throughout 2019 and early 2020, our financial resources, including the cash expected to be generated within twelve months from the date of this report, will be sufficient to meet our liquidity and working capital needs through June 30, 2020.

As of March 31, 2019, we reported a working capital surplus of $2,646,319 as compared to a working capital surplus of $1,960,784 as of September 30, 2018, which represents an increase of $685,535, or 35.0%. Working capital is equal to current assets minus current liabilities.

During the six-month period ended March 31, 2019, we generated net cash from operating activities of $899,484, as compared to $105,950  in the same period ended March 31, 2018, which represents an increase of $793,534, or 749.0%. This increase in net cash from operating activities was mainly attributable to (i) the higher revenues we earned on our Vessel in the six-month period ended March 31, 2019, in relation to the six-month period ended March 31, 2018, as discussed above, and (ii) the positive effect of variations in working capital.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS