Dated: August 5, 2022 /s/ Andreas Michalopoulos - Form 6-K

Exhibit 99.1

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Ownership days. We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.

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Available days. We define available days as the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys, including the aggregate amount of time that we spend positioning our vessels for such events. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.

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Operating days, including ballast leg. We define operating days, including ballast leg, as the number of available days in a period less the aggregate number of days that our vessels are off-hire. The specific calculation counts as on-hire the days of the ballast leg of the spot voyages, as long as a charter party is in place. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

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Fleet utilization. We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades and special surveys, including vessel positioning for such events.

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Time Charter Equivalent (TCE) rates. We define TCE rates as our voyage and time charter revenues, less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels despite changes in the mix of charter types (i.e., voyage (spot) charters, time charters, and bareboat charters).

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Daily Operating Expenses. We define daily operating expenses as total vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses divided by total ownership days for the relevant period.

		For the six months ended June 30,
		2022			2021
Ownership days			905				905
Available days			875				865
Operating days, including ballast leg			855				705
Fleet utilization			97.7	%			81.5	%
Time charter equivalent (TCE) rate		$	18,888			$	8,667
Daily operating expenses		$	6,936			$	6,386

		For the six months ended June 30,
		2022			2021
		(in thousands of U.S. dollars, except for available days and TCE rate)
Voyage and time charter revenues		$	25,275			$	17,513
Less: voyage expenses			(8,748	)			(10,016	)
Time charter equivalent revenues		$	16,527			$	7,497
Available days			875				865
Time charter equivalent (TCE) rate		$	18,888			$	8,667

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the duration of our charters;

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our decisions relating to vessel acquisitions and disposals;

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the amount of time that we spend positioning our vessels;

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the amount of time that our vessels spend in drydock undergoing repairs;

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maintenance and upgrade work;

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the age, condition, and specifications of our vessels;

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levels of supply and demand in the shipping industry; and

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other factors affecting spot market charter rates for vessels.

Results of Operations (Continuing Operations)		For the Six Months Ended June 30,
		2022			2021			variation			% change
		in millions of U.S. dollars
Revenue			25.3				17.5				7.8				45	%
Voyage expenses			-8.7				-10				1.3				-13	%
Vessel operating expenses			-6.3				-5.8				-0.5				9	%
Depreciation and amortization of deferred charges			-4.1				-3.7				-0.4				11	%
General and administrative expenses			-3.3				-3.0				-0.3				10	%
Provision for credit losses and write offs			-0.1				0.0				-0.1				-
Foreign currency (losses) / gains			0.1				0.0				0.1				-
Interest and finance costs			-1.1				-0.9				-0.2				22	%
Interest income			0.0				0.0				0.0				-
Net income / (loss) from continuing operations			1.8				-5.9				7.7				-131	%
Net income / (loss) from discontinued operations			-				0.4				-0.4				-100	%

PERFORMANCE SHIPPING INC.

INDEX TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

F-1

PERFORMANCE SHIPPING INC.

Consolidated Balance Sheets as at June 30, 2022 (unaudited) and December 31, 2021

(Expressed in thousands of U.S. Dollars, except for share and per share data)

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

F-2

PERFORMANCE SHIPPING INC.

Unaudited Interim Consolidated Statements of Operations

For the six months ended June 30, 2022 and 2021

(Expressed in thousands of U.S. Dollars - except for share and per share data)

PERFORMANCE SHIPPING INC.

Unaudited Interim Consolidated Statements of Comprehensive Income/ (Loss)

For the six months ended June 30, 2022 and 2021

(Expressed in thousands of U.S. Dollars)

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

F-3

PERFORMANCE SHIPPING INC.

Unaudited Interim Consolidated Statements of Stockholders' Equity

For the six months ended June 30, 2022, and 2021

(Expressed in thousands of U.S. Dollars - except for share and per share data)

		Common Stock			Preferred Stock			Additional			Other
		# of			Par			# of			Par			Paid-in			Comprehensive			Accumulated
		Shares			Value			Shares			Value			Capital			Income / (Loss)			Deficit			Total
Balance, December 31, 2020			5,082,726			$	51				-			$	-			$	457,171			$	8			$	(360,433	)		$	96,797
- Net loss			-				-				-				-				-				-				(5,500	)			(5,500	)
- Compensation cost on restricted stock & stock options award (Note 9)			-				-				-				-				227				-				-				227
Balance, June 30, 2021			5,082,726				51				-				-				457,398				8				(365,933	)			91,524
Balance, December 31, 2021			5,082,726			$	51				-			$	-			$	457,439			$	(2	)		$	(370,139	)		$	87,349
- Net profit			-				-				-				-				-				-				1,790				1,790
- Compensation cost on restricted stock awards (Note 9)			-				-				-				-				80				-				-				80
- Common shares exchanged for Series B preferred shares			(2,834,612	)			(28	)			793,657				8				9,291				-				(9,271	)			-
- Issuance of common stock under ATM program, net of issuance costs (Note 9)			526,916				5				-				-				1,333				-				-				1,338
- Issuance of units, net of issuance costs (Note 9)			7,620,000				76				-				-				7,050				-				-				7,126
Balance, June 30, 2022			10,395,030			$	104				793,657			$	8			$	475,193			$	(2	)		$	(377,620	)		$	97,683

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

F-4

PERFORMANCE SHIPPING INC.

Unaudited Interim Consolidated Statements of Cash Flows (continuing and discontinued operations)

For the six months ended June 30, 2022 and 2021

(Expressed in thousands of U.S. Dollars)

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

Company's identity

The accompanying unaudited interim consolidated financial statements include the accounts of Performance Shipping Inc. (or "Performance") and its wholly-owned subsidiaries (collectively, the "Company"). Performance was incorporated as Diana Containerships Inc. on January 7, 2010, under the laws of the Republic of the Marshall Islands for the purpose of engaging in any lawful act or activity under the Marshall Islands Business Corporations Act. On February 19, 2019, the Company's Annual Meeting of Shareholders approved an amendment to the Company's Amended and Restated Articles of Incorporation to change the name of the Company from "Diana Containerships Inc." to "Performance Shipping Inc.", which was effected on February 25, 2019. The Company's common shares trade on the Nasdaq Capital Market under the ticker symbol "PSHG".

The Company is a global provider of shipping transportation services through the ownership of tanker vessels, while it owned container vessels since its incorporation through August 2020 (Note 3). The Company operates its fleet through Unitized Ocean Transport Limited (the "Manager" or "UOT"), a wholly-owned subsidiary. The fees payable to UOT are eliminated in consolidation as intercompany transactions.

Financial Statements' presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These unaudited interim consolidated financial statements have been prepared on the same basis and should be read in conjunction with the financial statements for the year ended December 31, 2021 included in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 11, 2022 and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows for the periods presented. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2022.

The consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

Following the sale of all Company's container vessels in 2020, the Company's results of operations of the container vessels, as well as their assets and liabilities, are reported as discontinued operations for all periods presented in the accompanying consolidated financial statements (Note 3). For the statement of cash flows, the Company elected the alternative of combining cash flows from discontinued operations with cash flows from continuing operations within each cash flow statement category, and as such, no separate disclosure of cash flows from discontinued operations is presented in the statement of cash flows.

Furthermore, the recent outbreak of war between Russia and the Ukraine has disrupted supply chains and caused instability in the global economy, while the United States and the European Union, among other countries, announced sanctions against Russia, including sanctions targeting the Russian oil sector, among those a prohibition on the import of oil from Russia to the United States. The ongoing conflict could result in the imposition of further economic sanctions against Russia and given Russia's role as a major global exporter of crude oil, the Company's business may be adversely impacted. Currently, none of the Company's contracts have been affected by the events in Russia and Ukraine. However, it is possible that in the future third parties with whom the Company has or will have contracts may be impacted by such events. While in general much uncertainty remains regarding the global impact of the conflict in Ukraine, it is possible that such tensions could adversely affect the Company's business, financial condition, results of operation and cash flows.

2.	Significant Accounting Policies and Recent Accounting Pronouncements

A discussion of the Company's significant accounting policies and the recent accounting pronouncements can be found in Note 2 of the Company's Consolidated Financial Statements included in the Annual Report on Form 20-F for the year ended December 31, 2021, filed with the SEC on March 11, 2022. There have been no material changes to these policies or pronouncements during the six months ended June 30, 2022, except as disclosed below:

3.	Discontinued Operations

Since August 2019, upon the delivery of the Company's first tanker vessel "Blue Moon", through August 2020, when the last container vessel "Domingo" was sold, the Company's fleet was a mixture of container and tanker vessels. Accordingly, the Company had determined that it would operate under two reportable segments, one relating to its operations of container vessels (containers' segment) and one to the operations of tanker vessels (tankers' segment). Concurrently with the acquisition of its first tanker vessels, as the market environment for the Company's containers fleet continued to be negative and with difficult employment opportunities, management initiated a number of actions for the gradual disposal of the whole container vessels' fleet, although no decision at that time was reached for a strategic shift to a different segment. In the first months of 2020, the Company acquired two additional tanker vessels. In August 2020, at the time when the fleet's last container vessel was sold, the Company evaluated the results of the tanker vessels owned since 2019 and assessed the prospects of the specific segment as positive. At that time, the Company determined that its decision to exit the container segment represented a strategic shift to the exclusive ownership of tanker vessels and further assessed that the disposal of all its container vessels constituted a disposal of an entity's segment, that will have a major effect on the Company's operations and financial results. Furthermore, the Company determined that it would not have continuing involvement in the operation of the disposed assets. In this respect, the results of operations of the container vessels, as well as their assets and liabilities, are reported since 2020 as discontinued operations for all periods presented in the accompanying consolidated financial statements.

Below are presented summarized the operating results of the discontinued operations for the six months ended June 30, 2022 and 2021, as well as the balance sheet information on the Company's discontinued operations as of June 30, 2022 and December 31, 2021:

4.	Revenue, Accounts Receivable and Provision for Credit Losses

Charterer		2022			2021
A			-				-
B			-				29	%
C			-				10	%
D			48	%			28	%
E			15	%			-

5.	Transactions with Related Parties

(a) Pure Brokerage and Shipping Corp. ("Pure Brokerage"):Pure Brokerage, a company controlled by the Company's Chairperson of the Board Aliki Paliou, provides brokerage services to the Company since June 15, 2020, pursuant to a Brokerage Services Agreement for a fixed monthly fee per each tanker vessel owned by the Company. Pure Shipbroking may also, from time to time, receive sale and purchase commissions and chartering commissions on the gross freight and hire revenue of the tanker vessels, depending on the respective charter parties' terms.

For the six months ended June 30, 2022, commissions and brokerage fees to Pure Brokerage amounted to $293 and $90, and for the six months ended June 30, 2021 to $215 and $90, respectively, and are included in Voyage expenses and in General and administrative expenses in the accompanying unaudited interim consolidated statements of operations. As at June 30, 2022 and December 31, 2021, an amount of $35 and $63 was payable to Pure Brokerage and is reflected in Due to related parties in the accompanying consolidated balance sheets.

6.	Vessels, net

The amounts of Vessels, net in the accompanying consolidated balance sheets are analyzed as follows:

During the six months ended June 30, 2022, the Company capitalized an amount of $660 and also an amount of $558 was transferred from other non-current assets, representing costs for the installation of ballast water treatment system on the vessel "Blue Moon".

On June 16, 2022, the Company, through a newly established subsidiary, entered into a memorandum of agreement with unrelated parties, to acquire the Aframax tanker vessel "Maran Sagitta", to be renamed "P. Sophia", for the purchase price of $27,577. Based on the memorandum of agreement, the Company paid to the seller the amount of $2,758, which was 10% of the vessel purchase price and the amount of $53 regarding pre delivery expenses. These amounts are presented in the Consolidated Balance Sheets under "Advances for vessel acquisitions'' totaling $2,811 as of June 30, 2022.

7.	Long-Term Debt

The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as follows:

Secured Term Loans:The Company, through its vessel-owning subsidiaries, has entered into two long term loan agreements with certain financial institutions (as described below) to partially finance the acquisition cost of its tanker vessels. The loans are repayable in quarterly installments plus one balloon installment per loan agreement to be paid together with the last installment, and bear variable interest at LIBOR plus a fixed margin ranging from 2.75% to 2.85%. Their maturities fall due in July and December 2024, and at each utilization date, arrangement fees of 1.00% were paid. The term loans are collateralized by the Company's five tanker vessels, whose aggregate net book value as of June 30, 2022 was $120,534.

In July 2019, the Company, through two of its vessel-owning subsidiaries, entered into a loan agreement with Nordea Bank Abp, Filial i Norge ("Nordea Bank") for a senior secured term loan facility of up to $33,000, to partially finance the acquisition cost of the tanker vessels "Blue Moon" and "Briolette". In December 2019 and in March 2020, the Nordea Bank loan was twice amended and restated to increase the loan facility to up to $47,000 and $59,000, respectively, to partially support the acquisition cost of the tanker vessels "P. Fos" and "P. Kikuma", respectively. In December 2020, the Company entered a Deed of Release with Nordea Bank, according to which the borrowers of the vessels "P. Fos" and "P. Kikuma" were released from all obligations under the agreement, in connection with the re-finance by Piraeus Bank S.A. (described below). Also in December 2020, the Company entered into a Supplemental Loan Agreement with Nordea Bank, to amend the existing repayment schedules of the "Blue Moon" and "Briolette" tranches and to amend the major shareholder's clause included in the agreement.

In December 2020, the Company, through three of its vessel-owning subsidiaries, entered into a loan agreement with Piraeus Bank S.A. ("Piraeus Bank") for a senior secured term loan facility of up to $31,526, to refinance the existing indebtedness of the vessels "P. Fos" and "P. Kikuma" with Nordea Bank, described above, and partially finance the acquisition cost of the vessel "P. Yanbu". The three borrowers utilized in December 2020 an aggregate amount of $29,958 under the loan agreement, and no amount remained available for drawdown thereafter.

In June 2022, the Company, through two of its vessel-owning subsidiaries, amended its loan agreement with Piraeus Bank for a new loan facility of up to $31,933, to partially finance the acquisition of "P. Sophia" with loan proceeds of up to $24,600, and to refinance the existing tranche of the vessel "P. Yanbu" by $7,333 (Note 12). The amended loan is repayable in quarterly instalments plus with one balloon payment to be paid together with the last installment and bears variable interest at LIBOR plus a fixed margin of 2.70%. The loanmaturity falls due in July 2027.The Company should pay to Piraeus Bank on the utilization date of the loan, an arrangement fee in the amount of 0.75% of the amount of each Tranche drawn.

The weighted average interest rate of the Company's bank loans for the six months ended June 30, 2022 and 2021, was 3.25% and 2.92%, respectively.

For the six months ended June 30, 2022 and 2021, interest expense on long-term bank debt amounted to $789 and $824, respectively, and is included in Interest and finance costs in the accompanying unaudited interim consolidated statement of operations. Accrued interest on bank debt as of June 30, 2022, and December 31, 2021, amounted to $62 and $51, respectively, and is included in Accrued liabilities in the accompanying consolidated balance sheets.

As at June 30, 2022, the maturities of the debt facilities described above, are as follows:

8.	Commitments and Contingencies

(a) Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Company's vessels. Currently, management is not aware of any claims or contingent liabilities, which should be disclosed, or for which a provision should be established and has not in the accompanying unaudited interim consolidated financial statements.

The Company accrues for the cost of environmental liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable exposure. Currently, management is not aware of any such claims or contingent liabilities, which should be disclosed, or for which a provision should be established in the accompanying unaudited interim consolidated financial statements.

The Company's vessels are covered for pollution in the amount of $1 billion per vessel per incident, by the protection and indemnity association ("P&I Association") in which the Company's vessels are entered. The Company's vessels are subject to calls payable to their P&I Association and may be subject to supplemental calls which are based on estimates of premium income and anticipated and paid claims. Such estimates are adjusted each year by the Board of Directors of the P&I Association until the closing of the relevant policy year, which generally occurs within three years from the end of the policy year. Supplemental calls, if any, are expensed when they are announced and according to the period they relate to. The Company is not aware of any supplemental calls outstanding in respect of any policy year.

(b) The Company rents its office spaces in Greece under various lease agreements with unaffiliated parties. The durations of these agreements vary from a few months to 3 years and certain of these contracts also bear the option for the Company to extend the lease terms for further periods. Under ASC 842, the Company, as a lessee, has classified these contracts as operating leases and accordingly, a lease liability of $39 and $84, respectively, and an equal right-of-use asset based on the present value of future minimum lease payments for the fixed periods of each contract have been recognized on the June 30, 2022 and December 31, 2021 balance sheets. The monthly rent cost under the existing as of June 30, 2022 lease agreements are $7 (based on the exchange rate of Euro/US Dollar $1.0620 as of June 30, 2022). Rent costs have been reduced for the Company for 2021 as a result of COVID 19-relief measures applied by the Greek government, as the lessor was partially reimbursed for these rent payments by the state for the first semester of 2021. Accordingly, rent expenses amounted to $47 and $0 for the six months ended June 30, 2022 and 2021, respectively, and are included in General and administrative expenses in the accompanying unaudited interim consolidated financial statements. The Company assessed in 2021 that the rent concession qualifies for the election and elected to not evaluate whether a concession provided due to COVID-19 is a lease modification under ASC 842. The Company has assessed the right of use asset recognized for office leases for impairment and concluded that no impairment charge should be recorded as of June 30, 2022, as no impairment indicators existed.

The following table sets forth the Company's undiscounted office rental obligations as at June 30, 2022:

9. Changes in Capital Accounts

(a) Company's Preferred Stock: As of June 30, 2022, and December 31, 2021, the Company's authorized preferred stock consists of 25,000,000 shares of preferred stock, par value $0.01 per share. Of these preferred shares, 1,250,000 have been designated Series A preferred shares and 1,200,000 have been designated Series B preferred shares. As of June30,2022,793,657 Series B preferred shares were issued and outstanding, while as of December 31, 2021, no preferred stock was issued and outstanding.

(b) Tender Offer to Exchange Common Shares for Shares of Series B Convertible Cumulative Perpetual Preferred Stock: In December 2021, the Company commenced an offer to exchange up to 4,066,181 of its then issued and outstanding common shares, par value $0.01 per share, for newly issued shares of the Company's Series B Convertible Cumulative Perpetual Preferred Stock, par value $0.01, at a ratio of 0.28 Series B Preferred Shares for each common Share.

The Company pays 4.00% annual dividend on the Series B Preferred Shares, on a quarterly basis, either in cash, or, at the Company's option, through the issuance of additional common shares, valued at the volume-weighted average price of the common stock for the 10 trading days prior to the dividend payment date. Each Series B Preferred Share has no voting rights and is convertible at the option of the holder during a period of 30 days starting in the first anniversary of issuance, and for additional cash consideration of $7.50 per converted Series B Preferred Share, into two Series C Preferred Shares (see description below). Each Series B Preferred Share will have a fixed liquidation preference of $25.00 per share. The Series B Preferred Shares are not subject to mandatory redemption or to any sinking fund requirements, and will be redeemable at the Company's option, at any time, on or after the date that is the date immediately following the 15-month anniversary of the issuance date, at $25.00 per share plus accumulated and unpaid dividends thereon to and including the date of redemption. Finally, Series B Preferred Shares rank senior to common shares with respect to dividend distributions and distributions upon any liquidation, winding up or dissolution of the Company. The tender offer expired on January 27, 2022, and a total of 2,834,612 common shares were validly tendered and accepted for exchange, which resulted in the issuance of 793,657 Series B Preferred Shares (with aggregate liquidation preference of $19,841), out of which 657,396 are beneficially owned by Aliki Paliou and 28,171 are beneficially owned by Andreas Michalopoulos. For the six months ended June30, 2022, dividends accrued but not declared on Series B preferred shares amounted to $328.

The Series C Preferred Shares, par value $0.01 and $25.00 liquidation preference, will be established not earlier than one year from the date of original issuance of the Series B Preferred Shares. Their material anticipated terms are as follows: the Company will pay a 5.00% annual dividend on the Series C Preferred Shares either in cash, or, at the Company's option, through the issuance of additional common shares, valued at the volume-weighted average price of the common stock for the 10 trading days prior to the dividend payment date; the Series C Preferred Shares will be convertible to Common Shares, at the option of the holder at any time and from time to time after six months from the date of original issuance of such Series C Preferred Shares, in whole or in part, at a conversion price equal to $5.50 per Common Share (as adjusted). The conversion price shall be adjusted to the lowest price of issuance of common stock by the Company for any registered offering following the original issuance of Series B Preferred Shares, provided that, such adjusted conversion price shall not be less than $0.50. Each Series C Preferred Share shall be entitled to a number of votes equal to the number of shares of Common Stock into which the share is then convertible multiplied by 10. Holders of the Series C Preferred Shares shall be entitled to vote with holders of Common Shares, voting together as a single class (with certain exceptions).

In its assessment for the accounting of the Series B preferred stock, the Company has taken into consideration the provisions of ASC 480 "Distinguishing Liabilities from Equity" and ASC 815 "Derivatives and Hedging" and determined that the Series B preferred shares should be classified as permanent equity rather than temporary equity or liability. The preferred stock was measured as of the date of closing of the tender offer, being January 27, 2022, at fair value on a non-recurring basis. Its fair value was determined through Level 3 inputs of the fair value hierarchy as determined by management and amounted to $18,030. The fair value of the preferred stock was estimated using the Black & Scholes model and weighted the possibilities: a) that the Series B are not further exchanged for Preferred C shares, b) that the Series B are converted to Series C on the applicable conversion date and further assumed that there is no further conversion of the Series C preferred shares to common shares and c) that the Series C are further converted to common shares. Moreover, the Company's valuation used the following assumptions: (a) 4% dividend yield for the Series B preferred stock and 5% dividend yield for the Series C preferred stock, assumed based on stated dividend policy for the Series B preferred shares, and expected dividend policy for the Series C preferred shares, (b) weighted average expected volatility of 65%, (c) risk free rate of 0.74% determined by management using the applicable 1-year treasury yield as of the measurement date, (d) market value of common stock of $3.09 and (e) expected life of convertibility option of the Series C preferred shares to common shares of 5 years as at September 2, 2023. The Company's valuation determined that the exchange resulted in an excess value of the Series B preferred shares of $9,271, or $11.68 per preferred share, as compared to the fair value of the common shares exchanged, that was transferred from the common holders to the preferred holders on the measurement date, and that that value represented a deemed dividend to the preferred holders, that should be deducted from the net loss from continuing operations to arrive at the net loss available to common stockholders from continuing operations (Note 10). The fair value of the common shares exchanged on the measurement date of $8,759 was determined through Level 1 inputs of the fair value hierarchy (quoted market price on the date of the exchange).

(c) Compensation Cost on Stock Option Awards:On January 1, 2021, the Company granted to its Chief Financial Officer stock options to purchase 120,000 of the Company's common shares as share-based remuneration. The stock options, which were granted pursuant to, and in accordance with, the Company's Equity Incentive Plan, have been approved by the Company's board of directors, and have a term of five years. The exercise prices of the options are as follows: 30,000 shares for an exercise price of $10.00 per share, 25,000 shares for an exercise price of $12.50 per share, 20,000 shares for an exercise price of $15.00 per share, 15,000 shares for an exercise price of $20.00 per share, 15,000 shares for an exercise price of $25.00 per share, and 15,000 shares for an exercise price of $30.00 per share.

In its assessment for the accounting of the stock options awards, the Company has taken into consideration the provisions of ASC 718 "Compensation - Stock Compensation" and determined that these stock options should be classified as equity rather than liability. The award was measured on the grant date, being January 1, 2021, at fair value on a non-recurring basis. Its fair value was determined through Level 3 inputs of the fair value hierarchy as determined by management and amounted to $134. The fair value of the stock option was estimated using the binomial-pricing model with the following assumptions: (a) 6% dividend yield, assumed based on Company's stated dividend policy and existing capital structure, (b) weighted average expected volatility of 75%, (c) risk free rate of 0.36% determined by management using the applicable 5-year treasury yield as of the measurement date, (d) market value of common stock of $4.64 and (e) expected life of 5 years as at January 1, 2021. Until June 30, 2022, no stock options were exercised, and in the six months ended June 30, 2021, an amount of $134 was recognized as compensation cost in General and administrative expenses in the accompanying unaudited interim consolidated statements of operations.

(d) Compensation Cost on Restricted Common Stock: On December 30, 2020, the Company's Board of Directors approved an amendment to the 2015 Equity Incentive Plan (or the "Plan"), to increase the aggregate number of shares issuable under the plan to 538,830 shares, and further approved 67,225 restricted common shares to be issued on the same date as an award to the Company's directors. The fair value of the award was $320 and was calculated by using the share closing price of December 29, 2020. One fourthof the shares vested on December 30, 2020, and the remainingthree fourthswould vest ratably over three years from the issuance date. As at June 30, 2022, 471,605 restricted common shares remained reserved for issuance under the Plan.

Following the resignation of four of the Company's board members on February 28, 2022, the Company decided to accelerate the vesting of any unvested shares on the date of their resignation as a severance benefit and the Company recognized the corresponding compensation cost during the first quarter of 2022. During the six months ended June 30, 2022 and 2021, the aggregate compensation cost on restricted stock amounted to $80 and $93, respectively, and is included in General and administrative expenses in the accompanying unaudited interim consolidated statements of operations. On June 30, 2022 and December 31, 2021, the total unrecognized compensation cost relating to restricted share awards was $78 and $159, respectively.

During the six months ended 2022 and 2021, the movement of the restricted stock cost was as follows:

As at June 30, 2022 the weighted-average period over which the total compensation cost related to non-vested restricted stock, as presented above, is expected to be recognized, is 1.00 year.

(e) At The Market ("ATM") Offering: On March 5, 2021, the Company entered into an At The Market (or "ATM") Offering Agreement with H.C. Wainwright & Co., LLC, as sales agent, pursuant to which the Company may offer and sell, from time to time, up to an aggregate of $5,900 of its common shares, par value $0.01 per share. During the sixmonths ended June 30, 2022, a total of 526,916, common shares were issued as part of the Company's ATM offering, and the net proceeds received, after deducting underwriting commissions and other expenses, amounted to $1,338. The Company suspended its ATM offering in May 2022.

10.	Earnings / (Loss) per Share

11.	Financial Instruments and Fair Value Disclosures

The carrying values of temporary cash investments, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. The fair values of long-term bank loans approximate the recorded values, due to their variable interest rates. The Company is exposed to interest rate fluctuations associated with its variable rate borrowings and its objective is to manage the impact of such fluctuations on earnings and cash flows of its borrowings. Currently, the Company does not have any derivative instruments to manage such fluctuations.

12.	Subsequent Events

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