pgas20180630

0001437749-18-015855.txt : 20180820 0001437749-18-015855.hdr.sgml : 20180820 20180820145811 ACCESSION NUMBER: 0001437749-18-015855 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 50 CONFORMED PERIOD OF REPORT: 20180630 FILED AS OF DATE: 20180820 DATE AS OF CHANGE: 20180820 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Petrogress, Inc. CENTRAL INDEX KEY: 0001558465 STANDARD INDUSTRIAL CLASSIFICATION: DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412] IRS NUMBER: 208484256 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55854 FILM NUMBER: 181028066 BUSINESS ADDRESS: STREET 1: 757 THIRD AVENUE STREET 2: SUITE 2110 CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 212-376-5228 MAIL ADDRESS: STREET 1: 757 THIRD AVENUE STREET 2: SUITE 2110 CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: 800 Commerce, Inc. DATE OF NAME CHANGE: 20120918 10-Q 1 pgas20180630_10q.htm FORM 10-Q pgas20180630_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark one)

[ X ]

Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2018

[ ]	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: 000-55854

Petrogress, Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-2019626
(State or jurisdiction of incorporation of organization)	(I.R.S. Employer Identification No.)

757 Third Avenue, Suite 2110, New York, New York	10017
(Address of principal executive offices)	(Zip Code)

(212) 376-5228

(Registrant ’s telephone number, including area code)

Indicate by check mark whether the registrant (1) 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 Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) 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, 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.

Large accelerated filer	[ ]	Accelerated filer	[ ]
Non-accelerated filer	[ ] (Do not check if a smaller reporting company)	Smaller reporting company	[X]
		Emerging growth company	[X]

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: The number of shares of the registrant’s Common Stock, par value $0.001 per share, outstanding as of August 10, 2018 was 3,445,571.

Table of Contents

	Page
INTRODUCTORY COMMENT	1

Caution Regarding Forward-Looking Information	1

Part I - Financial Information

Item 1 - Financial Statements	2

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3 - Quantitative and Qualitative Disclosures About Market Risk	17

Item 4 - Controls and Procedures	17

Part II - Other Information

Item 1 - Legal Proceedings	18

Item 1A - Risk Factors	18

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	18

Item 3 - Defaults Upon Senior Securities	18

Item 4 - Mine Safety Disclosures	18

Item 5 - Other Information	18

Item 6 – Exhibits	18

Signatures	18

INTRODUCTORY COMMENT

Throughout this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Petrogress,” or the “Company” refers to Petrogress, Inc., a Delaware corporation and its subsidiary companies. The significant subsidiaries are Petrogres Co. Limited, Petronav Carriers LLC, Petrogress Int’l LLC, Petrogres Africa Co. Limited, and Petrogress Oil & Gas Energy Inc.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

All statements in this Quarterly Report on Form 10-Q (the “Report”) that are not representations of historical fact are “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. The disclosure and analysis set forth in this Report includes assumptions, expectations, projections, intentions and beliefs about future events in a number of places, particularly in relation to our operations, cash flows, financial position, plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. These statements are intended as forward-looking statements. In some cases, predictive, future-tense or forward-looking words such as “believe,” “intend,” “anticipate,” “estimate,” “project,” “forecast,” “plan,” “potential,” “may,” “should” and “expect” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements.

We caution that the forward-looking statements included in this Report represent our estimates and assumptions only as of the date hereof and are not intended to give any assurance as to future results. These forward-looking statements are not statements of historical fact and represent only our management’s belief as of the date hereof, and involve risks and uncertainties that could cause actual results to differ materially and inversely from expectations expressed in or indicated by the forward-looking statements. Assumptions, expectations, projections, intentions and beliefs about future events may, and often do, vary from actual results and these differences can be material. As a result, the forward-looking events discussed in this Report might not occur and our actual results may differ materially from those anticipated in the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements.

We undertake no obligation to update or revise any forward-looking statements contained in this, whether as a result of new information, future events, a change in our views or expectations or otherwise. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.

Part I - Financial Information

Item 1 - Financial Statements

PETROGRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of June 30, 2018 (Unaudited)			As of December 31, 2017
ASSETS
Current Assets
Cash and cash equivalents	$	556,775		$	1,150,999
Accounts receivable, net		5,288,933			4,508,885
Inventories		182,108			171,500
Prepaid expenses and other current assets		1,390,511			1,043,623
Total current assets		7,418,327			6,875,007
Non-Current Assets
Goodwill		900,000			900,000
Vessels and other fixed assets, net		4,911,423			5,281,949
Security deposit		7,573			7,573
Total non-current assets		5,818,996			6,189,522
Total Assets	$	13,237,323		$	13,064,529

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	943,401		$	1,299,964
Due to related party		1,110,222			1,243,753
Loan facility from related party		96,400			297,400
Accrued Interest		-			9,639
Total current liabilities		2,150,023			2,850,756
Total liabilities	$	2,150,023		$	2,850,756

Commitments and Contingencies

Shareholders' equity:
Series A Preferred shares, $100 par value, 100 shares authorized, 100 and 100 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively		10,000			10,000
Preferred shares, $0.001 par value, 10,000,000 shares authorized, 0 shares and 0 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively		-			-
Shares of Common stock, $0.001 par value, 19,000,000 shares authorized, 3,446,877 and 3,178,756 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively		3,447			3,179
Additional paid-in capital		9,622,910			9,100,757
Accumulated comprehensive income		(7,744	)		(7,744	)
Accumulated profit		1,357,812			1,008,823
Equity attributable to Owners of the Company		10,986,425			10,115,015
Non-controlling interests		100,875			98,758
Total liabilities and shareholders' equity	$	13,237,323		$	13,064,529

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

PETROGRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Six Months Ended June 30, 2018			Six Months Ended June 30, 2017			Three Months Ended June 30, 2018			Three Months Ended June 30, 2017

Revenues (Note 9)	$	4,827,154		$	8,462,185		$	2,261,890		$	4,443,072
Costs of goods sold		(2,689,061	)		(4,088,856	)		(1,282,524	)		(1,814,271	)

Gross profit		2,138,093			4,373,329			979,366			2,628,801

Operating expenses:
Corporate expenses		(465,917	)		(1,815,100	)		(165,779	)		(879,600	)
General operating and administrative expenses		(726,609	)		(845,618	)		(185,296	)		(461,897	)
Depreciation expense		(458,680	)		(348,930	)		(231,061	)		(175,362	)
Total operating expenses		(1,651,206	)		(3,009,648	)		(582,136	)		(1,516,859	)

Operating income/ (loss) before other expenses and income taxes		486,887			1,363,681			397,230			1,111,942
Other income/ (expense), net:
Interest and finance expenses		(1,427	)		-			-			-
Loss on settlement of loan facility from related party		(160,192	)		-			(160,192	)		-
Gain on foreign currency exchange		-			2,263			-			1,158
Other income, net		25,838			65,499			224			65,499
Total other income, net		(135,781	)		67,762			(159,968	)		66,657

Income before income taxes		351,106			1,431,443			237,262			1,178,599
Income tax expense		-			-			-			-

Net income	$	351,106		$	1,431,443		$	237,262		$	1,178,599

Net income attributable to:
Owners of the company		348,989			1,431,443			228,510			1,178,599
Non-controlling interests		2,117			-			8,752			-
	$	351,106		$	1,431,443		$	237,262		$	1,178,599

Other comprehensive income
Foreign currency translation adjustment		-			-			-			-

Comprehensive income	$	351,106		$	1,431,443		$	237,262		$	1,178,599

Comprehensive income attributable to:
Owners of the company		348,989			1,431,443			228,510			1,178,599
Non-controlling interests		2,117			-			8,752			-
	$	351,106		$	1,431,443		$	237,262		$	1,178,599

Weighted average number of shares of Common Stock:
Basic		3,373,163			1,667,958			3,446,279			1,667,958
Diluted		4,352,479			1,667,958			4,425,595			1,667,958
Basic earnings per share	$	0.10		$	0.86		$	0.07		$	0.71
Diluted earnings per share	$	0.08		$	0.86		$	0.05		$	0.71

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

PETROGRESS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2018			2017
	(Unaudited)			(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income:	$	351,106		$	1,431,443
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		458,680			348,930
Net cash acquired in recapitalization		-			(500	)
Change in Fair value of share-based payments issued for services		153,178			-
Share-based compensation expense		1,496			-
Change in fair value of derivative liabilities		-			(65,499	)
Gain on settlement of convertible promissory notes		(12,835	)		-
Loss on settlement of loan facility from related party		160,192			-
Changes in working capital:
- Increase in Accounts receivable, net		(780,048	)		(1,977,755	)
- Increase in Inventories		(10,608	)		-
- Amounts due from related party		-			-
- (Increase)/Decrease in Prepaid expenses and other current assets		(646,833	)		477,184
Increase/(decrease) in:
- Increase/(Decrease) in Accounts payable and accrued expenses		(356,563	)		500,143
- Increase in Amounts due to related party		98,969			-
- Increase in Accrued Interest		3,196			-
Net cash provided by/ (used in) operating activities		(580,070	)		713,946

Purchase of property plant and equipment		(88,154	)		(199,931	)
Net cash used in investing activities		(88,154	)		(199,931	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of convertible notes payable		-			(44,887	)
Proceeds from loan facility from related party		74,000			-
Net cash provided by/ (used in) financing activities		74,000			(44,887	)

Effect of exchange rate changes on cash		-			-

Net (decrease)/ increase in cash and cash equivalents		(594,224	)		469,128

Cash and cash equivalents, Beginning of Period		1,150,999			362,083

Cash and cash equivalents, End of Period	$	556,775		$	831,211



Cash paid for interest expense	$	-		$	-
Cash paid for income taxes	$	-		$	-
Non-cash investing and financing activities:
Common stock issued for settlement of notes and interest payable	$	297,500		$	-
Common stock issued for settlement of services	$	210,000		$	-

The accompanying notes are an integral part of these financial statements

Petrogress, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(unaudited)

Note 1 - Background and Description of Business and Preparation of Financial Statements

Nature of the Business

Petrogress, Inc. was incorporated on February 10, 2010 under the laws of the State of Florida as 800 Commerce, Inc. (“800 Commerce”) and was formed for the purpose of marketing credit card processing services on behalf of merchant payment processing service providers.

On February 29, 2016, 800 Commerce entered into an Agreement concerning the Exchange of Securities (“SEA”) with Petrogres Co. Limited, a Marshall Islands corporation, and its sole shareholder, Christos Traios, a Greek citizen. 800 Commerce issued 136,000,000 shares of restricted Common Stock, representing approximately 85% of the post-transaction issued and outstanding shares, to Mr. Traios in exchange for 100% of the shares of Petrogres Co. Limited. In connection with the transaction, Mr. Traios was appointed as a director of 800 Commerce, and it amended its constituent documents to increase its authorized capital to 490,000,000 shares of Common Stock, par value $0.001, and 10,000,000 preferred shares, par value $0.001.

800 Commerce’s acquisition of Petrogres Co. Limited effected a change in control and was accounted for as a “reverse acquisition” whereby Petrogres Co. Limited was the acquirer for financial statement purposes. Accordingly, the historical financial statements of 800 Commerce are those of Petrogres Co. Limited and its subsidiaries from their respective inception and those of the consolidated entity subsequent to the February 29, 2016 transaction date.

On March 9, 2016, 800 Commerce’s Board of Directors approved an amendment to 800 Commerce’s Articles of Incorporation to change the name of the Company to Petrogress, Inc. On March 15, 2016, Mr. Traios was appointed Chief Executive Officer. On November 16, 2016, Petrogress filed Articles of Merger and Plan of Merger in Florida and Delaware to change the Company’s domicile by merging with and into a Delaware corporation formed solely for the purpose of effecting the reincorporation. The Company’s name and capitalization remained the same, and the Articles of Incorporation and Bylaws of the Delaware corporation are the constituent documents of the surviving corporation.

The Company operates as a fully integrated international merchant of petroleum products, focused on the supply and trade of light petroleum fuel oil (LPFO), refined oil products and other petrochemical products to local refineries in West Africa and Mediterranean countries. The Company operates as a holding company and provides its services primarily through its wholly-owned and majority-owned subsidiaries: Petrogres Co. Limited, which provides management of crude oil purchases and sales; Petronav Carriers LLC, which manages day-to-day operations of its tanker fleet, currently consisting of four vessels; Petrogress Int’l LLC, which is a holding company for subsidiaries currently conducting business in Cyprus, Ghana and Nigeria; Petrogress Oil & Gas Energy Inc., which was organized to acquire interests in oil fields in Texas and to export liquefied natural gas, and Petrogres Africa Co. Limited, which attends to and services the tanker fleet in Ghana.

The accompanying unaudited condensed interim consolidated financial statements (the “Interim Statements”) have been prepared pursuant to the rules and regulations for reporting on Securities and Exchange Commission (the “SEC”) Form 10-Q. Accordingly, certain information and disclosures required by generally accepted accounting principles for complete consolidated financial statements are not included herein. The Interim Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the SEC on March 29, 2018. The interim results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any future interim periods.

The Company’s management team operates from its principal offices located in Piraeus, Greece.

Basis of Presentation

The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles and has elected a year-end of December 31.

Principles of consolidation

The consolidated financial statements of the Company include the consolidated accounts of the Company and it’s wholly-owned and majority-owned subsidiaries. We list our significant subsidiaries below. All intercompany accounts and transactions have been eliminated in consolidation.

Petrogres Co. Limited (Marshall Islands)

Petrogress Oil & Gas Energy, Inc. (Texas)

Petronav Carriers LLC (Marshall Islands)

Petrogress Int’l LLC (Delaware)

Petrogres Africa Co. Limited (Ghanaian) (Ghana; 90%-owned)

Overview of Significant Subsidiaries

Petrogres Co. Limited

Petrogres Co. Limited, is a Marshall Islands corporation, incorporated in 2009 with the purpose of supplying crude oil and other oil products in West Africa. Since its inception, Petrogres Co. Limited has evolved its business from focusing solely on fleet and tanker ship operations to expand into the oil and gas industry as a trader and merchant of oil. Over the last five years, Petrogres Co. Limited has strengthened its position in the oil industry by combining its regional market knowledge with over 25 years of experience to successfully establish both its midstream and downstream operations to serve markets primarily located in West Africa and the Mediterranean.

On February 28, 2018 Petrogres Co. Limited (“PGL”) entered into a Partnership Agreement (the “Platon Partnership Agreement”) creating an equal partnership between PGL and Platon Gas Oil Ghana Limited (“PGO”), which owns an oil refinery and serves as an importer of various petroleum products based in Ghana. The Platon Partnership Agreement is intended to be renewed on an annual basis and pursuant its terms, PGL will supply crude oil for storage, refinement, marketing and distribution in Ghana jointly with PGO. Under the Platon Partnership Agreement, PGL is expected to deliver 3,000-5,000 metric tons of crude oil on a monthly basis for storage and processing into various petroleum products, including blend stocks, cutter stock and other feedstock. PGO, in coordination with PGL management, will market and distribute the refined petroleum products. Under the Platon Partnership Agreement, all expenses of the partnership operations are shared by both PGL and PGO. After deducting the operating expenses, the net profits from the sale of the petroleum products are split evenly between PGL and PGO.

Petronav Carriers LLC

Effective as of July 13, 2018, the Company’s wholly owned subsidiary, Petronav Carriers LLC ("Petronav Carriers"), changed its domicile from Delaware to the Republic of the Marshall Islands (the "Redomiciliation"). As a result of the Redomiciliation, Petronav Carriers is now a limited liability company formed under the laws of the Republic of the Marshall Islands.

The Redomiciliation was consummated for tax purposes. Petronav Carriers continues to be a wholly owned subsidiary of the Company engaged in the business of managing day-to-day operations of the Company’s the affiliated tanker fleet, currently consisting of four vessels. The Redomiciliation did not result in any change in Petronav Carriers' headquarters, business, jobs, management, location of any officers or facilities, number of employees, assets, liabilities or net worth (other than as a result of the costs incident to the Redomiciliation, which are not material). Management, including all directors and officers, of Petronav Carriers remain the same immediately after the Redomiciliation. The Company will continue to manage its fleet from its business office at Piraeus, Greece.

Petrogress Int’l LLC

Petrogress Int’l LLC, is a Delaware limited liability company, acquired by the Company in September 2017 with the purpose of acting as a holding company for conducting business across the world, including Cyprus, Middle East, and West Africa as an oil energy corporation.

In September 2017, through Petrogress Int’l LLC, the Company formed PG Cypyard& Offshore Service Terminal Ltd., to obtain a long term lease from Cyprus Port Authorities (“CPA”), the area that F&T Investment used as shipyard located at Limassol port.

In February 2018, Petrogress Int’l LLC executed a Representation/Agency agreement with Mr. Louizos George, with the aim of establishing its representation in Erbil, Iraq. Mr. Louizos is handling on behalf of Petrogress Int’l LLC the negotiations with SOMO (the Iraqi National Oil Company) to register the company as a buyer and obtain an allocation of Basrah Light Crude Oil for 1,000,000 barrels per month under a long term contract. Although the registration of the representation has been completed, management has suspended further negotiations with SOMO for obtaining the supply allocation.

On March 23, 2018, Petrogress Int’l LLC, executed another Partnership agreement with a Nigeria Oil storing company Gonzena Hydrocarbons and Energy Co. Ltd (“Gonzena”), which is located in Koko Town of Delta River and operates in the storage and distribution of oil products into local Nigerian market. A new entity will be formed, which is to be named P&G Nigeria Oil Company Ltd (“PEGNOC”), which Petrogress Int’l LLC and Gonzena will own, 55% and 45%, respectively. PEGNOC will be assigned from Gonzena two oil tanks each with a capacity of 15,000 liters. PEGNOC has not yet been formed and this project has been postponed pending availability of funding to be committed by the parties.

Petrogress Oil & Gas Energy Inc.

Petrogress Oil & Gas Energy Inc., is a Texas corporation, incorporated in December 2015 and is focused on identifying and acquiring suitable interests in oil fields in Texas to allow for the Company’s expansion of its operations to include oil refinery production based within the United States and to export liquefied natural gas (“LNG”) to Mediterranean markets.

On September 2017, Petrogress Oil & Gas Energy Inc. through its affiliated company Petrogres Africa Company Limited, commenced negotiations with Ghana National Petroleum Company (“GNPC”) for the exploration of the oil fields in Saltpond basin and the repairs of the oil rig-platform “APG-1” where a survey on the of the platform is carried-out by a US specialist, for the assessment of the repairs cost of the platform and the improvement of the oil production.

The Saltpond oil fields, including the APG-1 platform, were operated by the Texas corporation Lushann International Energy, Inc. (“Lushann”), under a Petroleum Agreement with GNPC since 2004 (the “Petroleum Agreement”). Due to financial and technical issues the Petroleum Agreement was suspended by GNPC on August 2017 and the operations in Saltpond ceased.Based on our interest on re-commencing the operations and to continue the oil production, we conducted negotiations with Lushann, which were concluded on February 16, 2018 with the execution of a Memorandum of Understanding between Petrogress Oil & Gas Energy Inc. and Lushann. Under the terms of this memorandum, Petrogress Oil & Gas Energy Inc. elected to play the role of a farm-in-partner in the crude oil and the associated gas production in the developing area of 12 km² of the Saltpond oil field. The parties have agreed to form a Ghanaian limited liability company to be named PG – Saltpond Offshore Oil Production & Development Co., Limited (“SODCO”). Subject to the removal of the suspension of the Petroleum Agreement, and the assignment of 65% of SODCO to Petrogress Oil & Gas Energy Inc., the latter intends to undertake the necessary repairs and improvements of the APG-1 platform, and arrange a cash investment of $3.5 million plus a credit line of $15.0 million. Due to Ghanaian government involvement, the negotiations are still ongoing and the agreement is expected to be finalized in late fourth quarter of 2018, provided the financing mechanism-support can be arranged.

Petrogres Africa Company Limited

Effective September 30, 2017, Petrogress Int’l LLC purchased from Christos Traios, 90% of the issued and outstanding shares of Petrogres Africa Company Limited (“PGAF”), a Ghanaian limited Company. PGAF was incorporated in the summer of 2017 and holds a current Ghanaian business permit. PGAF is authorized to conduct local sales of oil products and shipping business from the Port of Tema in Greater Accra. Port facilities in Tema will provide a service and operations hub for the Company tankers currently involved in West Africa and Nigerian oil trading and transport. The Port of Tema also serves as a secondary hub for repair, supply and transport ship operators servicing Ghana’s Tano Basin offshore oil fields in the Gulf of Guinea.

Emerging Growth Company

We qualify as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.

Reclassifications

For the six months ended June 30, 2018 we reclassified specific amounts of expenses in order to conform to current year presentations of our results. In the year ended 2017, the Company identified and renamed certain classifications in our Condensed Consolidated Statements of Comprehensive Income. Reclassifications were made in line to more accurately present the nature of the business.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates.

During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements filed with the SEC on its Form 10-K for the year ended December 31, 2017. The information presented within these Interim Statements may not include all disclosures required by GAAP and the users of financial information provided for interim periods should refer to the annual financial information and footnotes when reviewing the interim financial results presented herein.

In the opinion of management, the accompanying interim financial statements, prepared in accordance with the SEC’s instructions for Form 10-Q, are unaudited and contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, results of operations and cash flows of the Company for the respective interim periods presented. The current period results of operations are not necessarily indicative of results which ultimately will be reported for the full fiscal year ending December 31, 2018.

Note 2 - Summary of Significant Accounting Policies

Cash and Cash Equivalents

We consider all highly liquid investments with an original term of three months or less to be cash equivalents.

Accounts Receivable, net

The amount shown as Accounts receivables, net at each balance sheet date includes estimated recoveries from customers and charterers for sales of oil products, hires, freight and demurrage billings, net of allowance for doubtful accounts. Accounts receivable involve risk, including the credit risk of non-payment by the customer. Accounts receivable are considered past due based on contractual and invoice terms. An estimate is made of the allowance for doubtful accounts based on a review of all outstanding amounts at each period, and an allowance is made for any accounts which management believes are not recoverable. The determination of bad debt allowance constitutes a significant estimate.

For the six months ended June 30, 2018 and six months ended June 30, 2017, there were no allowances for doubtful debts.

Inventories

The Company's inventories consist primarily of purchased crude oil at the respective balance sheet date, and is valued at the lower of cost or market using the mark-to-market method of valuation.

Vessels and other fixed assets, net

In accordance with the appropriate sections of the Fixed Asset topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company follows the policy of evaluating all property and equipment as of the end of each reporting quarter. For the six months ended June 30, 2018 and 2017, respectively, management has not provided any impairment for the future recoverability of these assets.

We depreciate our vessels on a straight-line basis over the estimated useful life which is 10 years from the date of their transfer to the Company. Depreciation is calculated based on a vessel’s cost less the estimated residual value. The estimated useful lives of vessels and equipment are as follows:

Vessels (in years)			10
Office equipment and furniture (in years)			10
Computer hardware (in years)			5

Organization costs

We have adopted the provisions required by the Start-Up Activities topic of the FASB ASC whereby all costs incurred with the incorporation and reorganization of the Company were charged to operations as incurred.

Income taxes

We file income tax returns in various jurisdictions, as appropriate and required. We were not subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for any period prior to January 1, 2012.

We account for income taxes in accordance with ASC 740-10, Income Taxes. We recognize deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. We record a valuation allowance related to a deferred tax asset when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. We classify interest and penalties as a component of interest and other expenses. To date, we have not incurred any liability for unrecognized tax benefits, including assessments of penalties and/or interest.

We measure and record uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized. Our tax years subsequent to 2011 remain subject to examination by federal and state tax jurisdictions.

Earnings Per Share

The Company reports earnings per share in accordance with ASC 260, "Earnings per Share." Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. Warrants that can be exercised to purchase 150,000 shares of Common Stock were not included in the calculation of diluted earnings per share for the three and six months ended June 30, 2018 because their impact was anti-dilutive.

Accounting for Equity-based Payments

We account for stock awards issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. Stock awards granted to non-employees are valued at their respective measurement dates based on the trading price of our common stock and recognized as expense during the period in which services are provided.

Comprehensive Income

We adopted ASC Topic 220, "Comprehensive Income." This statement establishes standards for reporting comprehensive income and its components in a financial statement. Comprehensive income as defined includes all changes in equity (net assets) during a period from non-owner sources. Items included in Comprehensive loss consist of cancellation of available-for-sale securities and foreign currency translation adjustments.

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. We have adopted this update. The adoption of this guidance did not have a material impact on our consolidated financial statements.

In accordance with the new guidance, the Company recognizes revenue for crude oil sales and gas oil sales, its primary sources of revenue, at an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for transferring goods or services to its customers. The Company’s policy is to record revenue when control of the goods transfers to the customer.

Fair Value of Financial Instruments

Our financial instruments consist primarily of cash, accounts receivable, inventory, accounts payable and accrued expenses.

The carrying amount of cash, accounts receivable, inventory, accounts payable and accrued expenses, as applicable, approximates fair value due to the short -term nature of these items and/or the current interest rates payable in relation to current market conditions.

Interest rate risk is the risk that our earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates. We do not use derivative instruments to moderate its exposure to interest rate risk, if any.

Financial risk is the risk that our earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates. We do not use derivative instruments to moderate its exposure to financial risk, if any.

Fair value measurements are determined under a three-level hierarchy for fair value measurements that prioritizes the inputs to valuation techniques used to measure fair value, distinguishing between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (“observable inputs”) and the reporting entity ’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). Fair value is the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, we primarily use prices and other relevant information generated by market transactions involving identical or comparable assets (“market approach”). We also consider the impact of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity to identify transactions that are not orderly.

The highest priority is given to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The three hierarchy levels are defined as follows:

Level 1 - Quoted prices in active markets that is unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 - Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly;

Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Credit risk adjustments are applied to reflect the Company’s own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments but incorporates the Company’s own credit risk as observed in the credit default swap market.

Effects of Recent Accounting Pronouncements not yet adopted

In February 2016, the FASB issued an ASU on lease accounting. The ASU requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. The ASU is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. We are currently evaluating the potential impact of this standard on our consolidated financial position.

Note 3 – Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivables. Concentrations of credit risk with respect to trade receivables are limited due to the short payment terms dictated by the industry and operating environment. As of June 30, 2018, and December 31, 2017, management is of the opinion that the Company had no significant concentrations of credit risk.

Note 4 - Fair Value of Financial Instruments

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017, respectively, for each fair value hierarchy level:

	Total		Level 1		Level 2		Level 3
June 30, 2018
Loan facility from related party	$	96,400	$	96,400	$	-	$	-

December 31, 2017
Loan facility from related party	$	297,400	$	297,400	$	-	$	-

Note 5 - Vessels and other fixed assets, net

Vessels and other fixed assets, net consisted of the following as of June 30, 2018 and December 31, 2017:

	June 30, 2018			December 31, 2017			Estimated useful life (in years)
Marine vessels	$	10,171,930		$	10,171,930			10
Furniture and equipment		181,449			93,295			10
Accumulated depreciation		(5,441,956	)		(4,983,276	)
Net property and equipment	$	4,911,423		$	5,281,949

Depreciation for the three months ended June 30, 2018 and June 30, 2017, was $458,680 and $348,930, respectively.

Note 6 – Loan facility from related party

On July 13, 2017, the Company entered into a Revolving Line of Credit Agreement (the “Agreement”) with Christos Traios, our President, Chief Executive Officer and sole Director. In accordance with the Agreement the Company also issued a $1,000,000 Line of Credit Convertible Promissory Note (the “LOC Note”) to Christos Traios. Mr. Traios has provided the Company with additional working capital as required from time-to-time to support its operations, and the LOC Note formalizes that commitment and confirms amounts previously advanced under an informal agreement between Mr. Traios and the Company.

The LOC Note bears interest payable on the outstanding principal at eight percent (8%) per annum. The principal and any accrued but unpaid interest on the LOC Note is due and payable on or before July 13, 2018. At the maturity date, the Company may extend and renew the LOC Note for additional terms of twelve (12) months, with a new effective and maturity date assigned for each successive extension and renewal. Interest is due and payable every six (6) months and on the Maturity Date, and each successive iteration of such dates upon extension and renewal thereafter. The principal amount of the LOC Note may be prepaid by the Company, in whole or in part, without penalty, at any time.

Upon the interest due date or maturity date, or any of them, regardless of any event of default, the LOC Note holder may demand payment of any or all of the interest due on the principal amount by delivery of a number of common shares converted at a rate of $0.001 per share. There is no provision for any of the principal to be repaid in common stock of the Company. Except in the event of a default, in no instance may the LOC Note holder convert amounts due for accrued interest to the extent that said repayment in common stock will cause the Company to issue a number of shares constituting ten percent (10%) or more of the Company’s then issued and outstanding common shares.

In consideration of Mr. Traios’s extension of credit to the Company, the Company agreed to issue to him a Warrant (the "Warrant") to purchase 150,000 shares of the Company’s common stock at an exercise price of $5.00 for a period of five years. The Warrant will provide for cashless exercise privileges, and be transferrable or assignable at the Holder’s option, with the Company’s approval. The Warrant has not been issued as of June 30, 2018.

Advances from Christos Traios from inception, including activity on the LOC Note, are as follows:

Balance December 31, 2017	$	297,400
New amounts loaned to the Company by Christos Traios		74,000
Amount converted in shares of Common stock		(275,000	)
Balance June 30, 2018	$	96,400

$15,000 and $7,500 that Mr. Traios loaned to Petrogress Int'l LLC and Petrogress Oil & Gas Energy Inc., respectively, were also converted into shares of Common Stock during the six months ended June 30, 2018. See also Note 7 – Common Stock Transactions below for further discussion.

Note 7 - Common Stock Transactions

On October 20, 2017, the Company issued 10,000,000 shares of Common Stock to Charles L. Stidham as compensation for future services rendered over a two-year period. The share consideration and the agreement with Mr. Stidham were disclosed in a Form S-8 registration statement effective September 22, 2017.During the six months ended June 30, 2018, approximately $153,178 of expense was recognized in relation to these awards and included in corporate expenses in the Condensed Consolidated Income Statement. On June 18, 2018, the Company terminated its agreement with Mr. Stidham for non-performance and Mr. Stidham agreed to return 5,000,000 shares of Common Stock issued to him for cancellation by the Company in connection with the early termination.

On January 12, 2018, the Company issued 2,903,225 shares of Common Stock to Christos Traios, our President, Chief Executive Officer and sole Director for the settlement of wages due equal to $90,000 that had been accrued by parent company Petrogress, Inc. as of December 31, 2017.

On February 23, 2018 the Company issued 4,758,128 shares of Common Stock to Mr. Traios for the settlement of wages due equal to $120,000 that had been incurred by the parent company Petrogress, Inc. for the year ended December 31, 2016.

On February 23, 2018 the Company issued 19,070,512 shares of Common Stock to Christos Traios, our President, Chief Executive Officer and sole Director in settlement of loans equal to $297,500 he had provided to the Company as of that date. Specifically, the Company settled $275,000 of loans that Mr. Traios had provided to parent company Petrogress, Inc., and $15,000 and $7,500 that Mr. Traios had advanced to Petrogress Int'l LLC and Petrogress Oil & Gas Energy Inc., respectively. The Company recognized a loss of $160,192 upon settlement of these loans.

The Company entered into two separate Advisory Board Member Agreements each dated October 1, 2017 with Dr. Demetrios Z Pierides, PhD. and Dr. Christine Warnke, PhD. Pursuant to the terms of the Pierides and Warnke Advisory Board Member Agreements, the Company is obligated to issue to Dr. Pieride and Dr. Warnke shares of Common Stock, as compensation for services rendered thereunder. Accordingly, on June 7, 2018 the Company issued 20,000 and 60,000 shares of Common Stock, respectively, to Dr. Pieride and Dr. Warnke, as compensation under the Pierides and Warnke Advisory Board Member Agreements, which shares of Common Stock were deemed upon issuance, fully paid and non-assessable

On July 9, 2018, the Company filed an amendment (the “Amendment”) to its Certificate of Incorporation with the Delaware Secretary of State to, among other things, effect a reverse stock split of the Company’s Common Stock at a ratio of one-for-100 and reduce the number of authorized shares of Common Stock from 490,000,000 to 19,000,000. The Amendment took effect on July 18, 2018. No fractional shares were issued as a result of the Amendment. In lieu of issuing additional shares, all stockholders who would be entitled to receive fractional shares as a result of the reverse stock split were entitled to receive cash payment for their fractional shares. There was no change in the par value of the Company’s Common Stock. See Note 8 for discussion of changes to Preferred Stock effected by the Amendment.

The Amendment and reverse stock split have been recognized retroactively as of June 30, 2018 and December 31, 2017. Shares of common stock outstanding as of June 30, 2018 and December 31, 2017 has been adjusted from 344,687,672 to 3,446,877 and 317,875,807 to 3,178,758, respectively. Common stock as of June 30, 2018 and December 31, 2017 has been adjusted from $344,688 to $3,447 and $317,876 to $3,179, respectively. Additional Paid-In Capital as of June 30, 2018 and December 31, 2017 has been adjusted from $9,281,669 to $9,622,910 and $8,786,060 to $9,100,757, respectively.

Note 8 – Preferred stock

On July 14, 2017, Christos Traios, our President, Chief Executive Officer and sole Director approved a resolution authorizing the establishment of Series A Preferred Stock. The Series A Preferred Stock consists of 100 shares in total with a re-designated par value of $100 per share. The holder(s) of the Series A shares has/have rights as a class to a number of votes equal to two (2) times the sum of: (i) the total number of shares of Common Stock which are issued and outstanding at the time of any election or vote by the shareholders; plus (ii) the number of shares of Preferred Stock issued and outstanding of any other class that has voting rights, if any. These voting rights may be exercised for any matter requiring shareholder approval by vote or consent, and may, if required, permit a number of votes in excess of the total number of shares authorized. The holder(s) of the Series A shares is/are not entitled to convert the Series A shares to shares of Common Stock or any other class of the Corporation’s stock. The Series A shares shall not be entitled to dividends, but, in the event of liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, the holder(s) of the Series A shares will be entitled to receive out of the assets of the Corporation, prior to and in preference to any distribution of the assets or surplus funds of the Corporation to the holders of any other class of preferred stock or the Common Stock, the amount of One Hundred Dollars ($100) per share, and will not be entitled to receive any portion of the remaining assets of the Company except by reason of ownership of shares of any other class of the Company’s stock. The Series A shares are not subject to redemption by the Company.

On October 6, 2017, the Company issued the above 100 Series A shares of Preferred stock to Christos Traios, our President, Chief Executive Officer and sole Director as provided in his employment agreement.

On July 9, 2018, the Company filed the Amendment to the Company’s Certificate of Incorporation with the Delaware Secretary of State to, among other things, reduce the number of authorized shares of Preferred Stock from 10,000,000 to 1,000,000. The Amendment took effect on July 18, 2018. There was no change in the par value of the Company’s Preferred Stock. See Note 7 for discussion of changes to Common Stock effected by the Amendment.

Note 9 – Related parties transactions

Officer’s compensation

During the six months ended June 30, 2018, and June 30, 2017, the Company had recorded officers’ compensation of $110,000 and $60,000, respectively. For the period ended June 30, 2018, $11,030 was paid and the remaining amount was accrued and included in Amounts Due to Related Party on the Consolidated Balance Sheets as of June 30, 2018.

Officer’s advances

During the six months ended June 30, 2018, Christos Traios, our President, Chief Executive Officer and sole Director advanced the Company $74,000.

Revolving Line of Credit

During the six months ended June 30, 2018 Christos Traios provided finance to the Company of $74,000, under the terms of the LOC Note, signed by and between Mr. Traios and Petrogress, Inc. on July 13, 2017. During the year ended December 31, 2017 the respective finance provided by Christos Traios to the Company was $275,000. See Note 6 – Loan facility from related party of the consolidated financial statements for further information.

Capital transactions

Effective September 30, 2017, Petrogress Int’l LLC purchased from Christos Traios 1,080,000 shares of Petrogres Africa Company Limited (“PGAF”), a Ghanaian limited company. The shares of PGAF acquired comprise 90% of its issued and outstanding shares. The acquisition is vital for the Company’s strategic objective to expand operations and its presence in West Africa. The initial consideration for the forgoing shares was $1,080,000 and Mr. Traios forgave an amount of $180,000 leading to a final consideration of $900,000 included in Amounts due to related party in the Consolidated Balance Sheet as of June 30, 2018 and December 31, 2017.

PGAF was incorporated in the summer of 2017 and holds a current Ghanaian business permit and is authorized to conduct local sales of oil products and shipping business from the Port of Tema in Greater Accra. Port facilities in Tema will provide a service and operations hub for the Company tankers currently involved in West Africa and Nigerian oil trading and transport. The Port of Tema also serves as a secondary hub for repair, supply and transport ship operators servicing Ghana’s Tano Basin offshore oil fields in the Gulf of Guinea.

Mr. Traios initially acquired 90% of PGAF shares at their par value for a consideration of $900,000, on August 17, 2017. The Company has accounted for the purchase of shares of PGAF as a business acquisition under common control and as such, the assets have been transferred at carrying costs as of the date of acquisition, and the activity of the acquired entity has been combined as of the date common control as established in line with the provisions of ASC 805-50-25-2, on August17, 2017. The difference between the consideration paid by Mr. Traios, and the net assets of PGAF on August 17, 2017, has been allocated to goodwill. The Company has one year from the date of acquisition to finalize the valuation analysis and has engaged a third -party valuation specialist for this assessment. The Company recognized Non-controlling interests equal to $100,000 as of the date common control was established.

Since the date common control was established, PGAF has recognized $1,166,500 of revenue to the Company, of which $441,500 was recognized during the six months ended June 30, 2018.

Partnership Agreement with Platon Gas Oil Ghana Ltd

On February 28, 2018 Petrogres Co. Limited entered into the Platon Partnership Agreement creating an equal partnership between PGL and Platon Gas Oil Ghana Limited, which owns an oil refinery and serves as an importer of various petroleum products based in Ghana. The Platon Partnership Agreement is intended to be renewed on an annual basis and pursuant its terms, PGL will supply crude oil for storage, refinement, marketing and distribution in Ghana jointly with PGO. Under the Platon Partnership Agreement, PGL is expected to deliver 3,000-5,000 metric tons of crude oil on a monthly basis for storage and processing into various petroleum products, including blend stocks, cutter stock and other feedstock. PGO, in coordination with PGL management, will market and distribute the refined petroleum products. Under the Platon Partnership Agreement, all expenses of the partnership operations are shared by both PGL and PGO. After deducting the operating expenses, the net profits from the sale of the petroleum products are split evenly between PGL and PGO.

The Company accounts for this agreement under ASC 808-10, Collaborative Agreements, and has recognized the portion of revenues and expenses attributed to the Company. During the six months ended June 30, 2018, the Company has recognized $4,184,164 in proportionate revenues in the Partnership Agreement.

Issuance of 100 Series A Preference shares

During the year ended December 31, 2017, the Company issued to Mr. Traios 100 Series A Preference shares with a par value of $100 each. As of December 31, 2017, this amount is due to the Company and was classified under Additional paid-in capital.The table below presents the movement of the amounts due to Christos Traios during the six months ended June 30, 2018.

Amounts due to related party December 31, 2017	$	1,243,753
Wages accrued to Christos Traios		110,000
Wages paid to Christos Traios, in Shares of Common Stock of Petrogress, Inc.		(210,000	)
Wages paid to Christos Traios, in cash		(11,031	)
Amount due to Christos Traios from Petrogress Int'l LLC and Petrogress Oil & Gas Inc. converted into Shares of Common Stock of Petrogress, Inc.		(22,500	)
Amounts due to related party June 30, 2018	$	1,110,222

Note 10 - Revenue Concentrations

The Company sells to commercial customers in foreign markets. For the six months ended June30, 2018, sale of crude oil to all buyers in West Africa other than J/V PGL & PGO were suspended, and all sales of crude oil in West Africa were made to J/V PGL & PGO pursuant to the terms of the Platon Partnership Agreement. As a result, sales to J/V PGL & PGO under the Platon Partnership Agreement represented more than 80% each of consolidated revenue. For the six months ended June 2017, two customers represented more than 10% each of consolidated revenues.

As of June 30, 2018, and December 31, 2017, four customers represented more than 10% each of consolidated accounts receivable.

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview of Business

The Company was incorporated on February 10, 2010 under the laws of the State of Florida as 800 Commerce, Inc. (“800 Commerce”) and was formed for the purpose of marketing credit card processing services on behalf of merchant payment processing service providers.

On July 9, 2018, the Company filed an amendment (the “Amendment”) to the Company’s Certificate of Incorporation with the Delaware Secretary of State to (a) effect a reverse stock split of the Company’s Common Stock at a ratio of one-for-100, (b) reduce the number of authorized shares of Common Stock from 490,000,000 to 19,000,000 and (c) reduce the number of authorized shares of Preferred Stock from 10,000,000 to 1,000,000. The Amendment took effect on July 18, 2018. There was no change in the par value of the Company’s Common Stock or Preferred Stock.

The Company operates as a fully integrated international merchant of petroleum products, focused on the supply and trade of light petroleum fuel oil (LPFO), refined oil products and other petrochemical products to local refineries in West Africa and Mediterranean countries. The Company operates as a holding company and provides its services primarily through its four wholly-owned subsidiaries: Petrogres Co. Limited, which provides management of crude oil purchases and sales; Petronav Carriers LLC, which manages day-to-day operations of its tanker fleet, currently consisting of four vessels; Petrogress Int’l LLC, which is a holding company for subsidiaries currently conducting business in Cyprus and Ghana; and Petrogress Oil & Gas Energy Inc., which is primarily focused on purchasing interests in oil fields in Texas and exporting liquefied natural gas.

Petronav Carriers is actively exploring opportunities to expand its operations by identifying and acquiring additional vessels to expand its fleet. On these grounds, Petronav Carriers LLC is currently in negotiations with certain owners/sellers to purchase more tanker vessels, subject to establishing the necessary financing.

In March 2018, the Company appointed Mr. Osy Adah as its representative in Nigeria. Mr. Adah is a Nigerian Citizen who has previously worked as a manager in major Nigerian oil companies. Through Mr. Adah, we have commenced the procedures for the registration of Petrogress Int’l LLC with Nigeria National Petroleum Company (NNPC) for an allocation for supplying half million barrels of Bonny light on monthly terms.

Through Petrogres Africa Company Limited, the Company plans to strengthen its presence and position in a promising market in West Africa and sub-Saharan countries with a population of more than 1.3 billion people designated as the next developing region.

Our business structure affords us with full control of the logistics involved in oil sourcing and the transportation of our products by our affiliated vessels, which we believe to be a competitive advantage in West African markets. By directly controlling all aspects of our operations, as opposed to engaging the services of third-parties at potentially higher costs, we are able to keep costs low and thus generate revenue from a number of different sources.

The Company’s management team operates from its principal offices located in Piraeus, Greece.

Results of Operations

Comparison of Three Months Ended June 30, 2018 and 2017

The Company has recognized revenues for the three months ended June 30, 2018 and 2017, as follows:

	Three Months Ended June 30,
	2018		2017
Crude oil net sales	$	1,698,900	$	2,521,672
Gas oil net sales		406,500		570,000
Other		156,490		1,351,400
Totals	$	2,261,890	$	4,443,072

Total revenues for the three months ended June 30, 2018, decreased by $2,181,182 or 49%. The decrease in sales revenue for the three months ended June 30, 2018 is due to a decrease in inventory as a result of unfavorable volume pricing and an increase of the price of oil.

Directly related to our sales activity and volumes, we experienced the following cost of sales amounts for the three months ended June 30, 2018 and 2017:

	Three Months Ended June 30,
	2018		2017
Oil purchase costs	$	1,190,994	$	1,347,341
Fleet operating expenses		91,530		466,930
Totals	$	1,282,524	$	1,814,271

Total Corporate expenses for the three months ended June 30, 2018 and 2017 were $165,779 and $879,600, respectively, a decrease of $713,821 or approximately 81%.

Total Selling, general and administrative expenses for the three months ended June 30, 2018 and 2017 were $185,296 and $461,897, respectively, a decrease of $276,601 or approximately 60%.

For the three months ended June 30, 2018 the Company experienced net income of $237,262 compared to net income of $1,178,599 for the three months ended June 30, 2017, a decrease of $941,337 or approximately 80%.

Comparison of Six Months Ended June 30, 2018 and 2017

The Company has recognized revenues for the six months ended June 30, 2018 and 2017, as follows:

	Six Months Ended June 30,
	2018		2017
Crude oil net sales	$	3,872,164	$	5,515,285
Gas oil net sales		738,500		570,000
Other		216,490		2,376,900
Totals	$	4,827,154	$	8,462,185

Total revenues for the six months ended June 30, 2018, decreased by $3,635,031 or 43%. The decrease in sales revenue for the six months ended June 30, 2018 is due to a decrease in inventory as a result of unfavorable volume pricing and an increase of the price of oil.

Directly related to our sales activity and volumes, we experienced the following cost of sales amounts for the six months ended June 30, 2018 and 2017:

	Six Months Ended June 30,
	2018		2017
Oil purchase costs	$	2,557,215	$	2,835,027
Fleet operating expenses		131,846		1,253,829
Totals	$	2,689,061	$	4,088,856

Total Corporate expenses for the six months ended June 30, 2018 and 2017 were $465,917 and $1,815,100, respectively, a decrease of $1,349,183 or approximately 74%.

Total Selling, general and administrative expenses for the six months ended June 30, 2018 and 2017 were $726,609 and $845,618, respectively, a decrease of $119,009 or approximately 14%.

For the six months ended June 30, 2018 the Company experienced net income of $351,106 compared to net income of $1,431,443 for the six months ended June 30, 2017, a decrease of $1,080,337 or approximately 75%.

Liquidity and Capital Resources

At June 30, 2018 and December 31, 2017, respectively, the Company had cash and cash equivalents of $556,775 and $1,150,999, with corresponding working capital of $5,268,304 and $4,024,251, respectively.

Our need for capital resources is driven by our expansion plans, ongoing maintenance and improvement of our vessels, support of our operational expenses, corporate overhead and expenses associated with SEC regulatory compliance.

Since the reverse acquisition of Petrogres on February 29, 2016, the Company’s principal sources of cash are a) net cash provided from operating subsidiaries activities, which includes the sale and shipment of petroleum products, and b) cash contributed to the Company by Christos Traios, our President, Chief Executive Officer, sole Director and controlling stockholder.

During the six months ended June 30, 2018, Mr. Traios loaned the Company $74,000 under the terms of the Revolving Line of Credit facility (the LOC Note), while the subsidiary Petrogres Co. Limited funded the Company with $83,000 respectively.

Management continues to seek the necessary financing for the expansion of Company’s operations. Additional funding is expected to be generated through equity financing from the sale of common stock and/or debt. If the Company is successful in completing equity financing, existing stockholders will experience dilution of their interest in our Company. Management does not currently have any outside financing arranged and cannot provide investors with any assurance that the Company will be able to raise sufficient funding from the sale of our common stock or debt to fund our plans to expand the Company’s operations.

Our intention to expand our operations, increase the oil sales or go into new projects-operations will be subject to extra financing support.

Critical Accounting Policies

Our financial statements and related public financial information are based on the application of GAAP. GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

Our significant accounting policies are summarized in Note 2 of our accompanying consolidated financial statements. While all of these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates.

Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the periods presented in this report.

Item 3 - Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined by Reg. 240.12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4 - Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Christos Traios, our principal executive officer conducted an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) as of June 30, 2018, pursuant to Exchange Act Rule 13a-15. Such disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company is accumulated and communicated to the appropriate management on a basis that permits timely decisions regarding disclosure. Based upon that evaluation, the Company's principal executive officer concluded that the Company's disclosure controls and procedures as of June 30, 2018 were not effective to provide reasonable assurance that information required to be disclosed in the Company’s periodic filings under the Exchange Act is accumulated and communicated to our management to allow timely decisions regarding required disclosure.

Limitations on the Effectiveness of Controls

Our disclosure controls and procedures provide our principal executive officer with reasonable assurances that our disclosure controls and procedures will achieve their objectives. However, our management does not expect that our disclosure controls and procedures or our internal control over financial reporting can or will prevent all human error. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact that there are internal resource constraints, and the benefit of controls must be weighed relative to their corresponding costs. Because of the limitations in all control systems, no evaluation of controls can provide complete assurance that all control issues and instances of error, if any, within our company are detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur due to human error or mistake. Additionally, controls, no matter how well designed, could be circumvented by the individual acts of specific persons within the organization. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated objectives under all potential future conditions.

Management is aware that there is a lack of segregation of duties due to the fact that the Company only has one director and one executive officer dealing with general administrative and financial matters. This constitutes a significant deficiency in the internal controls. Management has decided that considering the officer and director involved, the control procedures in place, and the outsourcing of certain financial functions, the risks associated with such lack of segregation were low and the potential benefits of adding additional employees to clearly segregate duties did not justify the expenses associated with such increases. Management periodically reevaluates this situation. In light of the Company’s current cash flow situation, the Company does not intend to increase staffing to mitigate the current lack of segregation of duties within the general administrative and financial functions.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal controls over financial reporting during the three months ended June 30, 2018 that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

Part II – Other Information

Item 1 - Legal Proceedings

None.

Item 1A – Risk Factors

We are a smaller reporting company as defined by Reg. 240.12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

The Company entered into two separate Advisory Board Member Agreements each dated October 1, 2017 with Dr. Demetrios Z Pierides, PhD. and Dr. Christine Warnke, PhD. Pursuant to the terms of the Pierides and Warnke Advisory Board Member Agreements, the Company is obligated to issue to Dr. Pierides and Dr. Warnke shares of Common Stock, as compensation for services rendered thereunder. Accordingly, on June 7, 2018 the Company issued 20,000 and 60,000 shares of Common Stock, respectively, to Dr. Pierides and Dr. Warnke, as compensation under the Pierides and Warnke Advisory Board Member Agreements, which shares of Common Stock were deemed upon issuance, fully paid and non-assessable. The shares of Common Stock were issued without registration in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving a public offering.

Item 3 - Defaults Upon Senior Securities

None.

Item 4 - Mine Safety Disclosure

None.

Item 5 - Other Information

None.

Item 6 - Exhibits

The following exhibits are filed with this Quarterly Report on Form 10-Q or are incorporated by reference as described below.

Exhibit	Description
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350**
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350**
101.1	Interactive data files pursuant to Rule 405 of Regulation S-T*

*	Filed herewith.
**	Furnished herewith

SIGNATURES

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

August 20, 2018	Petrogress, Inc.

	By:	/s/ Christos P. Traios
		Christos P. Traios
		President and Chief Executive Officer (Principal Executive Officer and Principal Financial and Accounting Officer)

Exhibit Index

Exhibit	Description
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350**
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350**
101.1	Interactive data files pursuant to Rule 405 of Regulation S-T*
*	Filed herewith.
**	Furnished herewith

EX-31.1 2 ex_120099.htm EXHIBIT 31.1 ex_120099.htm

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Christos P. Traios, certify that:

(1)	I have reviewed this quarterly report on Form 10-Q of Petrogress, Inc.;

(2)	Based on my knowledge, this report does not contain anyuntrue 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(s) 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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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(s) 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 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.

August 20, 2018	Petrogress, Inc.

	By:	/s/ Christos P. Traios
		Christos P. Traios
		Principal Executive Officer

EX-31.2 3 ex_120100.htm EXHIBIT 31.2 ex_120100.htm

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Christos P. Traios, certify that:

(1)	I have reviewed this quarterly report on Form 10-Q of Petrogress, Inc.;

(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)

	(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 (the registrant’s fourth fiscal quarter in the case of an annual report) 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(s) 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 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.

August 20, 2018	Petrogress, Inc.

	By:	/s/ Christos P. Traios
		Christos P. Traios
		Principal Financial Officer

EX-32.1 4 ex_120101.htm EXHIBIT 32.1 ex_120101.htm

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 Petrogress, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2018 (the “Report”), I, Christos P. Traios, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

/s/ Christos P. Traios

Christos P. Traios

Principal Executive Officer

August 20, 2018

This certification accompanies the Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company or purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this certification has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2 5 ex_120102.htm EXHIBIT 32.2 ex_120102.htm

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 Petrogress, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2018 (the “Report”), I, Christos P. Traios, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(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.

/s/ Christos P. Traios

Christos P. Traios

Principal Financial Officer

August 20, 2018

A signed original of this certification has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-101.INS 6 pgas-20180630.xml XBRL INSTANCE DOCUMENT false --12-31 Q2 2018 2018-06-30 10-Q 0001558465 3445571 Yes Smaller Reporting Company Petrogress, Inc. No No pgas 9639 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 83%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Balance December 31, 2017</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">297,400</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">New amounts loaned to the Company by Christos Traios</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Amount converted in shares of Common stock</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(275,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Balance </div><div style="display: inline; font-weight: bold;">June</div><div style="display: inline; font-weight: bold;"> 3</div><div style="display: inline; font-weight: bold;">0</div><div style="display: inline; font-weight: bold;">, 2018</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">96,400</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div> -153178 0 465917 1815100 165779 879600 12835 -160192 -160192 -160192 275000 96400 96400 297400 297400 1000000 -500 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div> – Loan facility from related party</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 13, 2017, </div>the Company entered into a Revolving Line of Credit Agreement (the “Agreement”) with Christos Traios, our President, Chief Executive Officer and sole Director. In accordance with the Agreement the Company also issued a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,000,000</div> Line of Credit Convertible Promissory Note (the “LOC Note”) to Christos Traios. Mr. Traios has provided the Company with additional working capital as required from time-to-time to support its operations, and the LOC Note formalizes that commitment and confirms amounts previously advanced under an informal agreement between Mr. Traios and the Company.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The LOC Note bears interest payable on the outstanding principal at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">eight</div> percent (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8%</div>) per annum. The principal and any accrued but unpaid interest on the LOC Note is due and payable on or before <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 13, 2018. </div>At the maturity date, the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>extend and renew the LOC Note for additional terms of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div>) months, with a new effective and maturity date assigned for each successive extension and renewal. Interest is due and payable every <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div>) months and on the Maturity Date, and each successive iteration of such dates upon extension and renewal thereafter. The principal amount of the LOC Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be prepaid by the Company, in whole or in part, without penalty, at any time.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Upon the interest due date or maturity date, or any of them, regardless of any event of default, the LOC Note holder <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>demand payment of any or all of the interest due on the principal amount by delivery of a number of common shares converted at a rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.001</div> per share. There is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> provision for any of the principal to be repaid in common stock of the Company. Except in the event of a default, in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> instance <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>the LOC Note holder convert amounts due for accrued interest to the extent that said repayment in common stock will cause the Company to issue a number of shares constituting <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div> percent (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div>) or more of the Company’s then issued and outstanding common shares.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In consideration of Mr. Traios’s extension of credit to the Company, the Company agreed to issue to him a Warrant (the "Warrant") to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150,000</div> shares of the Company’s common stock at an exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.00</div> for a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years. The Warrant will provide for cashless exercise privileges, and be transferrable or assignable at the Holder’s option, with the Company’s approval. The Warrant has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been issued as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">Advances from Christos Traios from inception, including activity on the LOC Note, are as follows:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 83%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Balance December 31, 2017</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">297,400</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">New amounts loaned to the Company by Christos Traios</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Amount converted in shares of Common stock</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(275,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Balance </div><div style="display: inline; font-weight: bold;">June</div><div style="display: inline; font-weight: bold;"> 3</div><div style="display: inline; font-weight: bold;">0</div><div style="display: inline; font-weight: bold;">, 2018</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">96,400</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,000</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,500</div> that Mr. Traios loaned to Petrogress Int'l LLC and Petrogress Oil & Gas Energy Inc., respectively, were also converted into shares of Common Stock during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018. </div>See also Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> – Common Stock Transactions below for further discussion.</div></div> 2 4 4 2 4 11030 15000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Organization costs</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We have adopted the provisions required by the Start-Up Activities topic of the FASB ASC whereby all costs incurred with the incorporation and reorganization of the Company were charged to operations as incurred.</div></div></div></div></div></div></div></div> 11031 3500000 74000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 20%; margin-left: 27pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 81%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Vessels (in years)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Office equipment and furniture (in years)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Computer hardware (in years)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> - Revenue Concentrations</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company sells to commercial customers in foreign markets. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">June30,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> sale of crude oil to all buyers in West Africa other than J/V PGL & PGO were suspended, and all sales of crude oil in West Africa were made to J/V PGL & PGO pursuant to the terms of the Platon Partnership Agreement. As a result, sales to J/V PGL & PGO under the Platon Partnership Agreement represented more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">80%</div> each of consolidated revenue. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> customers represented more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> each of consolidated revenues.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div></div> customers represented more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> each of consolidated accounts receivable.</div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 83%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Amounts due to related party December 31, 2017</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">1,243,753 </div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Wages accrued to Christos Traios</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">110,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Wages paid to Christos Traios, in Shares of Common Stock of Petrogress, Inc.</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(210,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Wages paid to Christos Traios, in cash</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(11,031</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Amount due to Christos Traios from Petrogress Int'l LLC and Petrogress Oil & Gas Inc. converted into Shares of Common Stock of Petrogress, Inc.</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(22,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Amounts due to related party </div><div style="display: inline; font-weight: bold;">June</div><div style="display: inline; font-weight: bold;"> 3</div><div style="display: inline; font-weight: bold;">0</div><div style="display: inline; font-weight: bold;">, 2018</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">1,110,222</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div> 19070512 297500

943401

1299964

5288933

4508885

5441956

4983276

-7744

9281669

9622910

8786060

9100757

153178

150000

13237323

13064529

7418327

6875007

5818996

6189522

0.9

1080000

180000

556775

1150999

362083

831211

-594224

469128

150000

0.001

19000000

490000000

3446877

3178756

3446877

3178756

344687672

317875807

344688

3447

317876

3179

348989

1431443

228510

1178599

2117

8752

351106

1431443

237262

1178599

2689061

4088856

1282524

1814271

0.001

0.08

7573

458680

348930

231061

175362

1110222

1243753

15000

7500

74000

275000

1243753

1110222

0.10

0.86

0.07

0.71

0.08

0.86

0.05

0.71

0.85

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Total</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 44%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">June</div><div style="display: inline; font-weight: bold;"> 3</div><div style="display: inline; font-weight: bold;">0</div><div style="display: inline; font-weight: bold;">, 2018</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Loan facility from related party</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">96,400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">96,400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">December 31, 2017</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Loan facility from related party</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">297,400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">297,400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:7.5pt;margin-right:15pt;margin-top:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> - Fair Value of Financial Instruments</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 15pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>respectively, for each fair value hierarchy level:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Total</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 1</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 2</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Level 3</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 44%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">June</div><div style="display: inline; font-weight: bold;"> 3</div><div style="display: inline; font-weight: bold;">0</div><div style="display: inline; font-weight: bold;">, 2018</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Loan facility from related party</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">96,400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">96,400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">December 31, 2017</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Loan facility from related party</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">297,400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">297,400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;"></div></div></div>

65499

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Fair Value of Financial Instruments</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:-0.05pt;">Our financial instruments consist primarily of cash, accounts receivable, inventory, accounts payable and accrued expenses.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The carrying amount of cash, accounts receivable, inventory, accounts payable and accrued expenses, as applicable, approximates fair value due to the short -term nature of these items and/or the current interest rates payable in relation to current market conditions.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Interest rate risk is the risk that our earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates. We do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> use derivative instruments to moderate its exposure to interest rate risk, if any.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Financial risk is the risk that our earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates. We do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> use derivative instruments to moderate its exposure to financial risk, if any.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Fair value measurements are determined under a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-level hierarchy for fair value measurements that prioritizes the inputs to valuation techniques used to measure fair value, distinguishing between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (“observable inputs”) and the reporting entity ’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). Fair value is the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, we primarily use prices and other relevant information generated by market transactions involving identical or comparable assets (“market approach”). We also consider the impact of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity to identify transactions that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> orderly.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The highest priority is given to unadjusted quoted prices in active markets for identical assets (Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> measurements) and the lowest priority to unobservable inputs (Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> hierarchy levels are defined as follows:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> - Quoted prices in active markets that is unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> - Quoted prices for identical assets and liabilities in markets that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:-0.05pt;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Credit risk adjustments are applied to reflect the Company’s own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments but incorporates the Company’s own credit risk as observed in the credit default swap market.</div></div></div></div></div></div></div></div>

900000

2138093

4373329

979366

2628801

351106

1431443

237262

1178599

780048

1977755

-356563

500143

98969

3196

10608

646833

-477184

1427

182108

171500

2150023

2850756

13237323

13064529

2150023

2850756

0.55

0.45

0.65

297400

96400

74000

15000000

1000000

100875

98758

0.9

74000

-44887

-88154

-199931

-580070

713946

348989

1431443

228510

1178599

2117

8752

100000

-135781

67762

-159968

66657

90000

120000

110000

60000

110000

1651206

3009648

582136

1516859

486887

1363681

397230

1111942

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> - Background and Description of Business and Preparation of Financial Statements</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; text-decoration: underline;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Nature of the Business</div></div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Petrogress, Inc. was incorporated on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 10, 2010 </div>under the laws of the State of Florida as <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800</div> Commerce, Inc. (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">“800</div> Commerce”) and was formed for the purpose of marketing credit card processing services on behalf of merchant payment processing service providers.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800</div> Commerce entered into an Agreement concerning the Exchange of Securities (“SEA”) with Petrogres Co. Limited, a Marshall Islands corporation, and its sole shareholder, Christos Traios, a Greek citizen. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800</div> Commerce issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">136,000,000</div> shares of restricted Common Stock, representing approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">85%</div> of the post-transaction issued and outstanding shares, to Mr. Traios in exchange for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> of the shares of Petrogres Co. Limited. In connection with the transaction, Mr. Traios was appointed as a director of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800</div> Commerce, and it amended its constituent documents to increase its authorized capital to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">490,000,000</div> shares of Common Stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.001,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,000,000</div> preferred shares, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.001.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800</div> Commerce’s acquisition of Petrogres Co. Limited effected a change in control and was accounted for as a “reverse acquisition” whereby Petrogres Co. Limited was the acquirer for financial statement purposes. Accordingly, the historical financial statements of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800</div> Commerce are those of Petrogres Co. Limited and its subsidiaries from their respective inception and those of the consolidated entity subsequent to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> transaction date.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 9, 2016, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800</div> Commerce’s Board of Directors approved an amendment to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">800</div> Commerce’s Articles of Incorporation to change the name of the Company to Petrogress, Inc. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 15, 2016, </div>Mr. Traios was appointed Chief Executive Officer. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 16, 2016, </div>Petrogress filed Articles of Merger and Plan of Merger in Florida and Delaware to change the Company’s domicile by merging with and into a Delaware corporation formed solely for the purpose of effecting the reincorporation. The Company’s name and capitalization remained the same, and the Articles of Incorporation and Bylaws of the Delaware corporation are the constituent documents of the surviving corporation.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:7.5pt;margin-top:0pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company operates as a fully integrated international merchant of petroleum products, focused on the supply and trade of light petroleum fuel oil (LPFO), refined oil products and other petrochemical products to local refineries in West Africa and Mediterranean countries. The Company operates as a holding company and provides its services primarily through its wholly-owned and majority-owned subsidiaries: Petrogres Co. Limited, which provides management of crude oil purchases and sales; Petronav Carriers LLC, which manages day-to-day operations of its tanker fleet, currently consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> vessels; Petrogress Int’l LLC, which is a holding company for subsidiaries currently conducting business in Cyprus, Ghana and Nigeria; Petrogress Oil & Gas Energy Inc., which was organized to acquire interests in oil fields in Texas and to export liquefied natural gas, and Petrogres Africa Co. Limited, which attends to and services the tanker fleet in Ghana.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The accompanying unaudited condensed interim consolidated financial statements (the “Interim Statements”) have been prepared pursuant to the rules and regulations for reporting on Securities and Exchange Commission (the “SEC”) Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-Q. Accordingly, certain information and disclosures required by generally accepted accounting principles for complete consolidated financial statements are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> included herein. The Interim Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s latest Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>as filed with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 29, 2018. </div>The interim results for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of the results to be expected for the year ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018 </div>or for any future interim periods.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company’s management team operates from its principal offices located in Piraeus, Greece.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:15pt;margin-right:20.9pt;margin-top:0pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; text-decoration: underline;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Basis of Presentation</div></div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles and has elected a year-end of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div><div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Principles of consolidation</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The consolidated financial statements of the Company include the consolidated accounts of the Company and it’s wholly-owned and majority-owned subsidiaries. We list our significant subsidiaries below. All intercompany accounts and transactions have been eliminated in consolidation. </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Petrogres Co. Limited (Marshall Islands)</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Petrogress Oil & Gas Energy, Inc. (Texas)</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">Petronav Carriers LLC (Marshall Islands)</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">Petrogress Int’l LLC (Delaware)</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">Petrogres Africa Co. Limited (Ghanaian) (Ghana; <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90%</div>-owned)</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:center;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Overview of Significant Subsidiaries</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; text-decoration: underline;">Petrogres Co. Limited</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Petrogres Co. Limited, is a Marshall Islands corporation, incorporated in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2009</div> with the purpose of supplying crude oil and other oil products in West Africa. Since its inception, Petrogres Co. Limited has evolved its business from focusing solely on fleet and tanker ship operations to expand into the oil and gas industry as a trader and merchant of oil. Over the last <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years, Petrogres Co. Limited has strengthened its position in the oil industry by combining its regional market knowledge with over <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25</div> years of experience to successfully establish both its midstream and downstream operations to serve markets primarily located in West Africa and the Mediterranean.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 28, 2018 </div>Petrogres Co. Limited (“PGL”) entered into a Partnership Agreement (the “Platon Partnership Agreement”) creating an equal partnership between PGL and Platon Gas Oil Ghana Limited (“PGO”), which owns an oil refinery and serves as an importer of various petroleum products based in Ghana. The Platon Partnership Agreement is intended to be renewed on an annual basis and pursuant its terms, PGL will supply crude oil for storage, refinement, marketing and distribution in Ghana jointly with PGO. Under the Platon Partnership Agreement, PGL is expected to deliver <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,000</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,000</div> metric tons of crude oil on a monthly basis for storage and processing into various petroleum products, including blend stocks, cutter stock and other feedstock. PGO, in coordination with PGL management, will market and distribute the refined petroleum products. Under the Platon Partnership Agreement, all expenses of the partnership operations are shared by both PGL and PGO. After deducting the operating expenses, the net profits from the sale of the petroleum products are split evenly between PGL and PGO.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; text-decoration: underline;">Petronav Carriers LLC</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Effective as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 13, 2018, </div>the Company’s wholly owned subsidiary, Petronav Carriers LLC ("Petronav Carriers"), changed its domicile from Delaware to the Republic of the Marshall Islands (the "Redomiciliation"). As a result of the Redomiciliation, Petronav Carriers is now a limited liability company formed under the laws of the Republic of the Marshall Islands.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:7.5pt;margin-top:0pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Redomiciliation was consummated for tax purposes. Petronav Carriers continues to be a wholly owned subsidiary of the Company engaged in the business of managing day-to-day operations of the Company’s the affiliated tanker fleet, currently consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> vessels. The Redomiciliation did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> result in any change in Petronav Carriers' headquarters, business, jobs, management, location of any officers or facilities, number of employees, assets, liabilities or net worth (other than as a result of the costs incident to the Redomiciliation, which are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> material). Management, including all directors and officers, of Petronav Carriers remain the same immediately after the Redomiciliation. The Company will continue to manage its fleet from its business office at Piraeus, Greece.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:7.5pt;margin-top:0pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; text-decoration: underline;">Petrogress Int’l LLC</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Petrogress Int’l LLC, is a Delaware limited liability company, acquired by the Company in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2017 </div>with the purpose of acting as a holding company for conducting business across the world, including Cyprus, Middle East, and West Africa as an oil energy corporation.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2017, </div>through Petrogress Int’l LLC, the Company formed PG Cypyard& Offshore Service Terminal Ltd., to obtain a long term lease from Cyprus Port Authorities (“CPA”), the area that F&T Investment used as shipyard located at Limassol port.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018, </div>Petrogress Int’l LLC executed a Representation/Agency agreement with Mr. Louizos George, with the aim of establishing its representation in Erbil, Iraq. Mr. Louizos is handling on behalf of Petrogress Int’l LLC the negotiations with SOMO (the Iraqi National Oil Company) to register the company as a buyer and obtain an allocation of Basrah Light Crude Oil for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,000,000</div> barrels per month under a long term contract. Although the registration of the representation has been completed, management has suspended further negotiations with SOMO for obtaining the supply allocation.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 23, 2018, </div>Petrogress Int’l LLC, executed another Partnership agreement with a Nigeria Oil storing company Gonzena Hydrocarbons and Energy Co. Ltd (“Gonzena”), which is located in Koko Town of Delta River and operates in the storage and distribution of oil products into local Nigerian market. A new entity will be formed, which is to be named P&G Nigeria Oil Company Ltd (“PEGNOC”), which Petrogress Int’l LLC and Gonzena will own, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55%</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45%,</div> respectively. PEGNOC will be assigned from Gonzena <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> oil tanks each with a capacity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,000</div> liters. PEGNOC has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet been formed and this project has been postponed pending availability of funding to be committed by the parties.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div><div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; text-decoration: underline;">Petrogress Oil & Gas Energy Inc.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Petrogress Oil & Gas Energy Inc., is a Texas corporation, incorporated in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2015 </div>and is focused on identifying and acquiring suitable interests in oil fields in Texas to allow for the Company’s expansion of its operations to include oil refinery production based within the United States and to export liquefied natural gas (“LNG”) to Mediterranean markets.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2017, </div>Petrogress Oil & Gas Energy Inc. through its affiliated company Petrogres Africa Company Limited, commenced negotiations with Ghana National Petroleum Company (“GNPC”) for the exploration of the oil fields in Saltpond basin and the repairs of the oil rig-platform “APG-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1”</div> where a survey on the of the platform is carried-out by a US specialist, for the assessment of the repairs cost of the platform and the improvement of the oil production.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 15pt;text-align:center;text-transform:uppercase;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Saltpond oil fields, including the APG-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> platform, were operated by the Texas corporation Lushann International Energy, Inc. (“Lushann”), under a Petroleum Agreement with GNPC since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2004</div> (the “Petroleum Agreement”). Due to financial and technical issues the Petroleum Agreement was suspended by GNPC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2017 </div>and the operations in Saltpond ceased.Based on our interest on re-commencing the operations and to continue the oil production, we conducted negotiations with Lushann, which were concluded on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 16, 2018 </div>with the execution of a Memorandum of Understanding between Petrogress Oil & Gas Energy Inc. and Lushann. Under the terms of this memorandum, Petrogress Oil & Gas Energy Inc. elected to play the role of a farm-in-partner in the crude oil and the associated gas production in the developing area of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> km² of the Saltpond oil field. The parties have agreed to form a Ghanaian limited liability company to be named PG – Saltpond Offshore Oil Production & Development Co., Limited (“SODCO”). Subject to the removal of the suspension of the Petroleum Agreement, and the assignment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65%</div> of SODCO to Petrogress Oil & Gas Energy Inc., the latter intends to undertake the necessary repairs and improvements of the APG-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> platform, and arrange a cash investment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.5</div> million plus a credit line of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15.0</div> million. Due to Ghanaian government involvement, the negotiations are still ongoing and the agreement is expected to be finalized in late <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourth</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> provided the financing mechanism-support can be arranged.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; text-decoration: underline;">Petrogres Africa Company Limited</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>Petrogress Int’l LLC purchased from Christos Traios, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90%</div> of the issued and outstanding shares of Petrogres Africa Company Limited (“PGAF”), a Ghanaian limited Company. PGAF was incorporated in the summer of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and holds a current Ghanaian business permit. PGAF is authorized to conduct local sales of oil products and shipping business from the Port of Tema in Greater Accra. Port facilities in Tema will provide a service and operations hub for the Company tankers currently involved in West Africa and Nigerian oil trading and transport.  The Port of Tema also serves as a secondary hub for repair, supply and transport ship operators servicing Ghana’s Tano Basin offshore oil fields in the Gulf of Guinea.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">  </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Emerging Growth Company</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We qualify as an “emerging growth company” under the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2012</div> JOBS Act. Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">107</div> of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>(a)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Reclassifications</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>we reclassified specific amounts of expenses in order to conform to current year presentations of our results. In the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the Company identified and renamed certain classifications in our Condensed Consolidated Statements of Comprehensive Income. Reclassifications were made in line to more accurately present the nature of the business.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Use of Estimates</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates.  </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements filed with the SEC on its Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017. </div>The information presented within these Interim Statements <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include all disclosures required by GAAP and the users of financial information provided for interim periods should refer to the annual financial information and footnotes when reviewing the interim financial results presented herein.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div><div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In the opinion of management, the accompanying interim financial statements, prepared in accordance with the SEC’s instructions for Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-Q, are unaudited and contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, results of operations and cash flows of the Company for the respective interim periods presented. The current period results of operations are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of results which ultimately will be reported for the full fiscal year ending <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018.</div></div></div>

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 27pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">June 30,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">December 31,</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">Estimated useful</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">life</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(in years)</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 49%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Marine vessels</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,171,930</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,171,930</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Furniture and equipment</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">181,449</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">93,295</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Accumulated depreciation</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(5,441,956</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,983,276</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net property and equipment</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,911,423</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,281,949</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px;"> </td> </tr> </table></div>

P10Y

P5Y

44887

275000

15000

7500

1357812

1008823

1166500

441500

4184164

4827154

8462185

2261890

4443072

726609

845618

185296

461897

1496

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> - Summary of Significant Accounting Policies</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Cash and Cash Equivalents</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We consider all highly liquid investments with an original term of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less to be cash equivalents.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Accounts Receivable, net</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The amount shown as Accounts receivables, net at each balance sheet date includes estimated recoveries from customers and charterers for sales of oil products, hires, freight and demurrage billings, net of allowance for doubtful accounts. Accounts receivable involve risk, including the credit risk of non-payment by the customer. Accounts receivable are considered past due based on contractual and invoice terms. An estimate is made of the allowance for doubtful accounts based on a review of all outstanding amounts at each period, and an allowance is made for any accounts which management believes are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recoverable. The determination of bad debt allowance constitutes a significant estimate.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div></div> allowances for doubtful debts.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Inventories</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company's inventories consist primarily of purchased crude oil at the respective balance sheet date, and is valued at the lower of cost or market using the mark-to-market method of valuation.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Vessels and other fixed assets, net</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In accordance with the appropriate sections of the Fixed Asset topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company follows the policy of evaluating all property and equipment as of the end of each reporting quarter. For the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively, management has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> provided any impairment for the future recoverability of these assets.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We depreciate our vessels on a straight-line basis over the estimated useful life which is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> years from the date of their transfer to the Company. Depreciation is calculated based on a vessel’s cost less the estimated residual value. The estimated useful lives of vessels and equipment are as follows:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:27.5pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 20%; margin-left: 27pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 81%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Vessels (in years)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Office equipment and furniture (in years)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Computer hardware (in years)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 16%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Organization costs</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We have adopted the provisions required by the Start-Up Activities topic of the FASB ASC whereby all costs incurred with the incorporation and reorganization of the Company were charged to operations as incurred.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Income taxes</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We file income tax returns in various jurisdictions, as appropriate and required. We were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for any period prior to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2012.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We account for income taxes in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> Income Taxes. We recognize deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. We record a valuation allowance related to a deferred tax asset when it is more likely than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> that some portion of the deferred tax asset will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. We classify interest and penalties as a component of interest and other expenses. To date, we have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> incurred any liability for unrecognized tax benefits, including assessments of penalties and/or interest.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div><div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We measure and record uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recognition threshold at the effective date <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be recognized or continue to be recognized. Our tax years subsequent to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2011</div> remain subject to examination by federal and state tax jurisdictions.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Earnings</div></div><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Per Share</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company reports earnings per share in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">260,</div> "Earnings per Share." Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. Warrants that can be exercised to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150,000</div></div> shares of Common Stock were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> included in the calculation of diluted earnings per share for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>because their impact was anti-dilutive.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Accounting for</div></div><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Equity-based</div></div><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Payments</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We account for stock awards issued to non-employees in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">505</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50,</div> Equity-Based Payments to Non-Employees. The measurement date is the earlier of (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) the date at which the counterparty's performance is complete. Stock awards granted to non-employees are valued at their respective measurement dates based on the trading price of our common stock and recognized as expense during the period in which services are provided.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Comprehensive Income</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">We adopted ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">220,</div> "Comprehensive Income." This statement establishes standards for reporting comprehensive income and its components in a financial statement. Comprehensive income as defined includes all changes in equity (net assets) during a period from non-owner sources. Items included in Comprehensive loss consist of cancellation of available-for-sale securities and foreign currency translation adjustments.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Revenue Recognition</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the Financial Accounting Standards Board (“FASB”) issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Revenue from Contracts with Customers (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div>). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. We have adopted this update. The adoption of this guidance did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material impact on our consolidated financial statements.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In accordance with the new guidance, the Company recognizes revenue for crude oil sales and gas oil sales, its primary sources of revenue, at an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for transferring goods or services to its customers. The Company’s policy is to record revenue when control of the goods transfers to the customer.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Fair Value of Financial Instruments</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:-0.05pt;">Our financial instruments consist primarily of cash, accounts receivable, inventory, accounts payable and accrued expenses.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The carrying amount of cash, accounts receivable, inventory, accounts payable and accrued expenses, as applicable, approximates fair value due to the short -term nature of these items and/or the current interest rates payable in relation to current market conditions.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Interest rate risk is the risk that our earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates. We do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> use derivative instruments to moderate its exposure to interest rate risk, if any.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Financial risk is the risk that our earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates. We do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> use derivative instruments to moderate its exposure to financial risk, if any.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div><div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Fair value measurements are determined under a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-level hierarchy for fair value measurements that prioritizes the inputs to valuation techniques used to measure fair value, distinguishing between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (“observable inputs”) and the reporting entity ’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). Fair value is the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, we primarily use prices and other relevant information generated by market transactions involving identical or comparable assets (“market approach”). We also consider the impact of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity to identify transactions that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> orderly.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The highest priority is given to unadjusted quoted prices in active markets for identical assets (Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> measurements) and the lowest priority to unobservable inputs (Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> hierarchy levels are defined as follows:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> - Quoted prices in active markets that is unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> - Quoted prices for identical assets and liabilities in markets that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:-0.05pt;">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Credit risk adjustments are applied to reflect the Company’s own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments but incorporates the Company’s own credit risk as observed in the credit default swap market.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;">Effects of Recent Accounting Pronouncements</div></div><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"> </div></div><div style="display: inline; font-style: italic;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet adopted</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued an ASU on lease accounting. The ASU requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. The ASU is effective for reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018 </div>with early adoption permitted. We are currently evaluating the potential impact of this standard on our consolidated financial position.</div></div>

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Note 2 - Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Vessels and Equipment (Details) Note 4 - Fair Value of Financial Instruments - Financial Instruments Measured At Fair Value On a Recurring Basis (Details) Note 5 - Vessels and Other Fixed Assets, Net - Summary of Estimated Useful Lives of Vessels and Equipment (Details) Note 6 - Loan Facility From Related Party - Activity on LOC Note (Details) Note 9 - Related Parties Transactions - Amounts Due to Related Party (Details) Notes To Financial Statements pgas_ClassOfWarrantOrRightIssuedDuringPeriod Class of Warrant or Right, Issued During Period The number of warrants or rights issued during period. Share-based compensation expense Notes To Financial Statements [Abstract] us-gaap_LiabilitiesCurrent Total current liabilities Due to related party Title of Individual [Axis] Relationship to Entity [Domain] Earnings Per Share, Policy [Policy Text Block] us-gaap_BusinessCombinationConsiderationTransferred1 Business Combination, Consideration Transferred, Total Revenues (Note 9) Revenues, Total Operating expenses: Comprehensive Income, Policy [Policy Text Block] Income Tax, Policy [Policy Text Block] Revenue Concentrations Disclosure [Text Block] A complete disclosure of revenue concentrations. Petrogress Int'l LLC [Member] Related to the entity Petrogress Int'l LLC. Petrogres Africa Co. Ltd [Member] Related to the entity Petrogres Africa Co. Ltd. us-gaap_BusinessAcquisitionPercentageOfVotingInterestsAcquired Business Acquisition, Percentage of Voting Interests Acquired Principal Stockholder and Sole Officer/Director [Member] Represents the company's principal stockholder and sole officer/director. Sole Director, President and Chief Executive Officer [Member] Represents the sole director, President and Chief Executive Officer of the company. pgas_ProceedsFromInvestors Proceeds from Investors Represents the amount of proceeds from investors. Foreign currency translation adjustment Depreciation Depreciation, Total Depreciation expense us-gaap_StockholdersEquityNoteStockSplitConversionRatio1 Stockholders' Equity Note, Stock Split, Conversion Ratio us-gaap_AssetsCurrent Total current assets Non-Current Assets Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] Stockholders' Equity Note Disclosure [Text Block] Shares of Common stock, $0.001 par value, 19,000,000 shares authorized, 3,446,877 and 3,178,756 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively Common Stock, Value, Issued, Ending Balance Measurement Frequency [Axis] Adjustments to reconcile net income to net cash provided by (used in) operating activities: Fair Value, Measurement Frequency [Domain] Fair Value, Measurements, Recurring [Member] Common stock, shares authorized (in shares) Common Stock, Shares Authorized Accounts payable and accrued expenses Common stock, shares issued (in shares) Common stock, par value (in dollars per share) Common Stock, Par or Stated Value Per Share pgas_LineOfCreditFacilityAmountConverted Amount converted in shares of Common stock Amount of credit facility that has been converted. Ownership [Domain] Revolving Credit Facility [Member] Credit Facility [Axis] Petrogress, Inc. [Member] Information pertaining to Petrogress, Inc. Ownership [Axis] Credit Facility [Domain] Corporate Expense [Member] Primary financial statement caption encompassing corporate expenses. Preferred stock, value Preferred stock, shares issued (in shares) Preferred Stock, Shares Issued, Total Dr. Warnke [Member] Represents Dr. Warnke. Dr. Pieride [Member] Represents Dr. Pieride. Cash paid for interest expense us-gaap_PolicyTextBlockAbstract Accounting Policies pgas_ProceedsFromRelatedPartyAdvances Proceeds from Related Party Advances The amount of cash inflow from related party advances. Cash paid for income taxes pgas_OfficersCompensationPreviouslyAccured Officers' Compensation, Previously Accured The amount of officers' compensation paid that was previously accrued. Property, Plant and Equipment Disclosure [Text Block] Property, Plant and Equipment [Table Text Block] Preferred stock, shares authorized (in shares) Preferred Stock, Shares Authorized Reverse Stock Split [Member] The conversion of a reverse stock split where there is a reduction in the shares outstanding. Schedule of Amounts Due to Related Parties [Table Text Block] Tabular disclosure of the amounts due to related parties. Inventories us-gaap_PaymentsToAcquireProductiveAssets Purchase of property plant and equipment Common stock issued for settlement of services Wages paid to Christos Traios, in Shares of Common Stock of Petrogress, Inc. Preferred stock, par value (in dollars per share) Preferred Stock, Par or Stated Value Per Share pgas_PaymentsToOfficers Wages paid to Christos Traios, in cash The amount of payments to officers. Fair Value, Inputs, Level 3 [Member] Organization Costs, Policy [Policy Text Block] Accounting disclosure on organization costs. Fair Value Hierarchy and NAV [Domain] Non-cash investing and financing activities: pgas_CorporateExpenses Corporate expenses The amount of corporate expense recognized during the period. Fair Value, Inputs, Level 1 [Member] Fair Value, Inputs, Level 2 [Member] Fair Value Hierarchy and NAV [Axis] Current Liabilities us-gaap_Assets Total Assets Preferred Stock [Text Block] Useful Life (Year) Accrued Interest Amount of accrued but unpaid interest, due within one year or the normal operating cycle, if longer. Before Reverse Stock Split [Member] The scenario under which facts represent before reverse stock split. Non-controlling interests CASH FLOWS FROM OPERATING ACTIVITIES: Mr. Traios [Member] Information related to Mr. Traios. Loss on settlement of loan facility from related party Gain (Loss) on Settlement of Related Party Debt Loss on settlement of loan facility from related party Represents the amount of gain (loss) related to the settlement of related party debt. Revenue Recognition, Policy [Policy Text Block] Statement [Line Items] pgas_NumberOfCustomers Number of Customers Represents the number of major customers accounting for 10% or more of the specified concentration risk benchmark, which includes, but not limited to, sales revenue, accounts receivable, etc. us-gaap_AllowanceForDoubtfulAccountsReceivableCurrent Allowance for Doubtful Accounts Receivable, Current, Ending Balance Accounts receivable, net Additional paid-in capital Additional Paid in Capital, Ending Balance Shareholders' equity: Property, Plant and Equipment, Policy [Policy Text Block] Other income, net Property, Plant and Equipment, Type [Axis] us-gaap_NonoperatingIncomeExpense Total other income, net Property, Plant and Equipment, Type [Domain] Current Assets Net income attributable to: Fair Value Disclosures [Text Block] pgas_GainLossOnSettlementOfDebt Gain on settlement of convertible promissory notes The amount of gain (loss) resulting from the settlement of debt. us-gaap_NetIncomeLoss Owners of the company pgas_ChangeInFairValueOfSharesPrepaidForServices Change in Fair value of share-based payments issued for services Amount of change in fair value of shares prepaid for services to be rendered. Inventory, Policy [Policy Text Block] us-gaap_Liabilities Total liabilities us-gaap_NetIncomeLossAttributableToNoncontrollingInterest Non-controlling interests Loan facility from related party pgas_LoanFacilityFromRelatedPartyFairValueDisclosure The fair value of loans held related parties. us-gaap_NetCashProvidedByUsedInFinancingActivities Net cash provided by/ (used in) financing activities Commitments and Contingencies us-gaap_OperatingIncomeLoss Operating income/ (loss) before other expenses and income taxes Petrogres Oil & Gas [Member] Related to the entity Petrogres Oil & Gas. us-gaap_NetCashProvidedByUsedInOperatingActivities Net cash provided by/ (used in) operating activities Warrant [Member] us-gaap_PrepaidExpenseAndOtherAssetsCurrent Prepaid expenses and other current assets us-gaap_NetCashProvidedByUsedInInvestingActivities Net cash used in investing activities Effect of exchange rate changes on cash us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease Net (decrease)/ increase in cash and cash equivalents Antidilutive Securities [Axis] Antidilutive Securities, Name [Domain] us-gaap_GrossProfit Gross profit us-gaap_CostOfGoodsAndServicesSold Costs of goods sold Counterparty Name [Axis] Other income/ (expense), net: Counterparty Name [Domain] us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest Non-controlling interests us-gaap_DueToRelatedPartiesCurrentAndNoncurrent Due to Related Parties, Total Amounts due to related party December 31, 2017 Amounts due to related party June 30, 2018 us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment Accumulated depreciation Net property and equipment Vessels and other fixed assets, net Goodwill us-gaap_NoncontrollingInterestIncreaseFromBusinessCombination Noncontrolling Interest, Increase from Business Combination Property and equipment, gross us-gaap_EquityMethodInvestmentOwnershipPercentage Equity Method Investment, Ownership Percentage Net income Net income: us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest Comprehensive income Weighted average number of shares of Common Stock: - Increase in Accrued Interest Related Party Transactions Disclosure [Text Block] us-gaap_IncomeTaxExpenseBenefit Income tax expense Equity Components [Axis] Equity Component [Domain] - Increase/(Decrease) in Accounts payable and accrued expenses us-gaap_ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 Class of Warrant or Right, Exercise Price of Warrants or Rights Gain on foreign currency exchange Class of Warrant or Right [Axis] Class of Warrant or Right [Domain] us-gaap_ClassOfWarrantOrRightOutstanding Class of Warrant or Right, Outstanding us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic Income before income taxes us-gaap_OperatingExpenses Total operating expenses - Increase in Amounts due to related party Loan facility from related party Balance Balance Cash and cash equivalents Cash and cash equivalents, Beginning of Period Cash and cash equivalents, End of Period us-gaap_DebtInstrumentConvertibleConversionPrice1 Debt Instrument, Convertible, Conversion Price us-gaap_AllocatedShareBasedCompensationExpense Allocated Share-based Compensation Expense, Total us-gaap_LimitedLiabilityCompanyLLCOrLimitedPartnershipLPManagingMemberOrGeneralPartnerOwnershipInterest Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest us-gaap_RepaymentsOfConvertibleDebt Repayment of convertible notes payable Cash and Cash Equivalents, Policy [Policy Text Block] Receivables, Policy [Policy Text Block] Amendment Flag us-gaap_UnrecognizedTaxBenefits Unrecognized Tax Benefits, Ending Balance Accounting Policies [Abstract] Comprehensive income attributable to: Significant Accounting Policies [Text Block] us-gaap_ComprehensiveIncomeNetOfTax Owners of the company Concentration Risk Disclosure [Text Block] New Accounting Pronouncements, Policy [Policy Text Block] Net cash acquired in recapitalization Represents the amount of net cash acquired in recapitalization recorded during the period. Acquisition of Petrogres Co. Limited [Member] Represents information pertaining to the acquisition of Petrogres Co. Limited. pgas_NumberOfVesselsInTankerFleet Number of Vessels in Tanker Fleet Represents the number of vessels in an entity's tanker fleet as of the balance sheet date. Petronav Carriers LLC [Member] Represents information pertaining to Petronav Carriers LLC, a Delaware corporation that is a wholly-owned subsidiary of the reporting entity. Common stock, shares outstanding (in shares) Common Stock, Shares, Outstanding, Ending Balance Preferred stock, shares outstanding (in shares) Vessels [Member] Represents information pertaining to vessels. Office Equipment and Furniture [Member] Represents information pertaining to office equipment and furniture. Current Fiscal Year End Date Property, Plant and Equipment, Estimated Useful Lives [Table Text Block] Tabular disclosure of the estimated useful lives of property, plant and equipment. 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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2018	Aug. 10, 2018
Document Information [Line Items]
Entity Registrant Name	Petrogress, Inc.
Entity Central Index Key	0001558465
Trading Symbol	pgas
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		3,445,571
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML 13 R2.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 556,775	$ 1,150,999
Accounts receivable, net	5,288,933	4,508,885
Inventories	182,108	171,500
Prepaid expenses and other current assets	1,390,511	1,043,623
Total current assets	7,418,327	6,875,007
Non-Current Assets
Goodwill	900,000	900,000
Vessels and other fixed assets, net	4,911,423	5,281,949
Security deposit	7,573	7,573
Total non-current assets	5,818,996	6,189,522
Total Assets	13,237,323	13,064,529
Current Liabilities
Accounts payable and accrued expenses	943,401	1,299,964
Due to related party	1,110,222	1,243,753
Loan facility from related party	96,400	297,400
Accrued Interest		9,639
Total current liabilities	2,150,023	2,850,756
Total liabilities	2,150,023	2,850,756
Commitments and Contingencies
Shareholders' equity:
Preferred stock, value
Shares of Common stock, $0.001 par value, 19,000,000 shares authorized, 3,446,877 and 3,178,756 shares issued and outstanding as of June 30, 2018 and December 31, 2017 respectively	3,447	3,179
Additional paid-in capital	9,622,910	9,100,757
Accumulated comprehensive income	(7,744)	(7,744)
Accumulated profit	1,357,812	1,008,823
Equity attributable to Owners of the Company	10,986,425	10,115,015
Non-controlling interests	100,875	98,758
Total liabilities and shareholders' equity	13,237,323	13,064,529
Series A Preferred Stock [Member]
Shareholders' equity:
Preferred stock, value	$ 10,000	$ 10,000

XML 14 R3.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0
Preferred stock, shares authorized (in shares)	10,000,000	0
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	19,000,000	19,000,000
Common stock, shares issued (in shares)	3,446,877	3,178,756
Common stock, shares outstanding (in shares)	3,446,877	3,178,756
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 100	$ 100
Preferred stock, shares authorized (in shares)	100	100
Preferred stock, shares issued (in shares)	100	100
Preferred stock, shares outstanding (in shares)	100	100

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues (Note 9)	$ 2,261,890	$ 4,443,072	$ 4,827,154	$ 8,462,185
Costs of goods sold	(1,282,524)	(1,814,271)	(2,689,061)	(4,088,856)
Gross profit	979,366	2,628,801	2,138,093	4,373,329
Operating expenses:
Corporate expenses	(165,779)	(879,600)	(465,917)	(1,815,100)
General operating and administrative expenses	(185,296)	(461,897)	(726,609)	(845,618)
Depreciation expense	(231,061)	(175,362)	(458,680)	(348,930)
Total operating expenses	(582,136)	(1,516,859)	(1,651,206)	(3,009,648)
Operating income/ (loss) before other expenses and income taxes	397,230	1,111,942	486,887	1,363,681
Other income/ (expense), net:
Interest and finance expenses			(1,427)
Loss on settlement of loan facility from related party	(160,192)		(160,192)
Gain on foreign currency exchange		1,158		2,263
Other income, net	224	65,499	25,838	65,499
Total other income, net	(159,968)	66,657	(135,781)	67,762
Income before income taxes	237,262	1,178,599	351,106	1,431,443
Income tax expense
Net income	237,262	1,178,599	351,106	1,431,443
Net income attributable to:
Owners of the company	228,510	1,178,599	348,989	1,431,443
Non-controlling interests	8,752		2,117
	237,262	1,178,599	351,106	1,431,443
Foreign currency translation adjustment
Comprehensive income	237,262	1,178,599	351,106	1,431,443
Comprehensive income attributable to:
Owners of the company	228,510	1,178,599	348,989	1,431,443
Non-controlling interests	8,752		2,117
	$ 237,262	$ 1,178,599	$ 351,106	$ 1,431,443
Weighted average number of shares of Common Stock:
Basic (in shares)	3,446,279	1,667,958	3,373,163	1,667,958
Diluted (in shares)	4,425,595	1,667,958	4,352,479	1,667,958
Basic earnings per share (in dollars per share)	$ 0.07	$ 0.71	$ 0.10	$ 0.86
Diluted earnings per share (in dollars per share)	$ 0.05	$ 0.71	$ 0.08	$ 0.86

XML 16 R5.htm IDEA: XBRL DOCUMENT

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income:	$ 351,106	$ 1,431,443
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	458,680	348,930
Net cash acquired in recapitalization		(500)
Change in Fair value of share-based payments issued for services	153,178
Share-based compensation expense	1,496
Change in fair value of derivative liabilities		(65,499)
Gain on settlement of convertible promissory notes	(12,835)
Loss on settlement of loan facility from related party	160,192
Changes in working capital:
- Increase in Accounts receivable, net	(780,048)	(1,977,755)
- Increase in Inventories	(10,608)
- Amounts due from related party
- (Increase)/Decrease in Prepaid expenses and other current assets	(646,833)	477,184
- Increase/(Decrease) in Accounts payable and accrued expenses	(356,563)	500,143
- Increase in Amounts due to related party	98,969
- Increase in Accrued Interest	3,196
Net cash provided by/ (used in) operating activities	(580,070)	713,946
Purchase of property plant and equipment	(88,154)	(199,931)
Net cash used in investing activities	(88,154)	(199,931)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of convertible notes payable		(44,887)
Proceeds from loan facility from related party	74,000
Net cash provided by/ (used in) financing activities	74,000	(44,887)
Effect of exchange rate changes on cash
Net (decrease)/ increase in cash and cash equivalents	(594,224)	469,128
Cash and cash equivalents, Beginning of Period	1,150,999	362,083
Cash and cash equivalents, End of Period	556,775	831,211
Cash paid for interest expense
Cash paid for income taxes
Non-cash investing and financing activities:
Common stock issued for settlement of notes and interest payable	297,500
Common stock issued for settlement of services	$ 210,000

XML 17 R6.htm IDEA: XBRL DOCUMENT

Note 1 - Background and Description of Business and Preparation of Financial Statements	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1 - Background and Description of Business and Preparation of Financial Statements Nature of the Business Petrogress, Inc. was incorporated on February 10, 2010 under the laws of the State of Florida as 800 Commerce, Inc. ( “800 Commerce”) and was formed for the purpose of marketing credit card processing services on behalf of merchant payment processing service providers. On February 29, 2016, 800 Commerce entered into an Agreement concerning the Exchange of Securities (“SEA”) with Petrogres Co. Limited, a Marshall Islands corporation, and its sole shareholder, Christos Traios, a Greek citizen. 800 Commerce issued 136,000,000 shares of restricted Common Stock, representing approximately 85% of the post-transaction issued and outstanding shares, to Mr. Traios in exchange for 100% of the shares of Petrogres Co. Limited. In connection with the transaction, Mr. Traios was appointed as a director of 800 Commerce, and it amended its constituent documents to increase its authorized capital to 490,000,000 shares of Common Stock, par value $0.001, and 10,000,000 preferred shares, par value $0.001. 800 Commerce’s acquisition of Petrogres Co. Limited effected a change in control and was accounted for as a “reverse acquisition” whereby Petrogres Co. Limited was the acquirer for financial statement purposes. Accordingly, the historical financial statements of 800 Commerce are those of Petrogres Co. Limited and its subsidiaries from their respective inception and those of the consolidated entity subsequent to the February 29, 2016 transaction date. On March 9, 2016, 800 Commerce’s Board of Directors approved an amendment to 800 Commerce’s Articles of Incorporation to change the name of the Company to Petrogress, Inc. On March 15, 2016, Mr. Traios was appointed Chief Executive Officer. On November 16, 2016, Petrogress filed Articles of Merger and Plan of Merger in Florida and Delaware to change the Company’s domicile by merging with and into a Delaware corporation formed solely for the purpose of effecting the reincorporation. The Company’s name and capitalization remained the same, and the Articles of Incorporation and Bylaws of the Delaware corporation are the constituent documents of the surviving corporation. The Company operates as a fully integrated international merchant of petroleum products, focused on the supply and trade of light petroleum fuel oil (LPFO), refined oil products and other petrochemical products to local refineries in West Africa and Mediterranean countries. The Company operates as a holding company and provides its services primarily through its wholly-owned and majority-owned subsidiaries: Petrogres Co. Limited, which provides management of crude oil purchases and sales; Petronav Carriers LLC, which manages day-to-day operations of its tanker fleet, currently consisting of four vessels; Petrogress Int’l LLC, which is a holding company for subsidiaries currently conducting business in Cyprus, Ghana and Nigeria; Petrogress Oil & Gas Energy Inc., which was organized to acquire interests in oil fields in Texas and to export liquefied natural gas, and Petrogres Africa Co. Limited, which attends to and services the tanker fleet in Ghana. The accompanying unaudited condensed interim consolidated financial statements (the “Interim Statements”) have been prepared pursuant to the rules and regulations for reporting on Securities and Exchange Commission (the “SEC”) Form 10 -Q. Accordingly, certain information and disclosures required by generally accepted accounting principles for complete consolidated financial statements are not included herein. The Interim Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s latest Annual Report on Form 10 -K for the year ended December 31, 2017 as filed with the SEC on March 29, 2018. The interim results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any future interim periods. The Company’s management team operates from its principal offices located in Piraeus, Greece. Basis of Presentation The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles and has elected a year-end of December 31. Principles of consolidation The consolidated financial statements of the Company include the consolidated accounts of the Company and it’s wholly-owned and majority-owned subsidiaries. We list our significant subsidiaries below. All intercompany accounts and transactions have been eliminated in consolidation. Petrogres Co. Limited (Marshall Islands) Petrogress Oil & Gas Energy, Inc. (Texas) Petronav Carriers LLC (Marshall Islands) Petrogress Int’l LLC (Delaware) Petrogres Africa Co. Limited (Ghanaian) (Ghana; 90% -owned) Overview of Significant Subsidiaries Petrogres Co. Limited Petrogres Co. Limited, is a Marshall Islands corporation, incorporated in 2009 with the purpose of supplying crude oil and other oil products in West Africa. Since its inception, Petrogres Co. Limited has evolved its business from focusing solely on fleet and tanker ship operations to expand into the oil and gas industry as a trader and merchant of oil. Over the last five years, Petrogres Co. Limited has strengthened its position in the oil industry by combining its regional market knowledge with over 25 years of experience to successfully establish both its midstream and downstream operations to serve markets primarily located in West Africa and the Mediterranean. On February 28, 2018 Petrogres Co. Limited (“PGL”) entered into a Partnership Agreement (the “Platon Partnership Agreement”) creating an equal partnership between PGL and Platon Gas Oil Ghana Limited (“PGO”), which owns an oil refinery and serves as an importer of various petroleum products based in Ghana. The Platon Partnership Agreement is intended to be renewed on an annual basis and pursuant its terms, PGL will supply crude oil for storage, refinement, marketing and distribution in Ghana jointly with PGO. Under the Platon Partnership Agreement, PGL is expected to deliver 3,000 - 5,000 metric tons of crude oil on a monthly basis for storage and processing into various petroleum products, including blend stocks, cutter stock and other feedstock. PGO, in coordination with PGL management, will market and distribute the refined petroleum products. Under the Platon Partnership Agreement, all expenses of the partnership operations are shared by both PGL and PGO. After deducting the operating expenses, the net profits from the sale of the petroleum products are split evenly between PGL and PGO. Petronav Carriers LLC Effective as of July 13, 2018, the Company’s wholly owned subsidiary, Petronav Carriers LLC ("Petronav Carriers"), changed its domicile from Delaware to the Republic of the Marshall Islands (the "Redomiciliation"). As a result of the Redomiciliation, Petronav Carriers is now a limited liability company formed under the laws of the Republic of the Marshall Islands. The Redomiciliation was consummated for tax purposes. Petronav Carriers continues to be a wholly owned subsidiary of the Company engaged in the business of managing day-to-day operations of the Company’s the affiliated tanker fleet, currently consisting of four vessels. The Redomiciliation did not result in any change in Petronav Carriers' headquarters, business, jobs, management, location of any officers or facilities, number of employees, assets, liabilities or net worth (other than as a result of the costs incident to the Redomiciliation, which are not material). Management, including all directors and officers, of Petronav Carriers remain the same immediately after the Redomiciliation. The Company will continue to manage its fleet from its business office at Piraeus, Greece. Petrogress Int’l LLC Petrogress Int’l LLC, is a Delaware limited liability company, acquired by the Company in September 2017 with the purpose of acting as a holding company for conducting business across the world, including Cyprus, Middle East, and West Africa as an oil energy corporation. In September 2017, through Petrogress Int’l LLC, the Company formed PG Cypyard& Offshore Service Terminal Ltd., to obtain a long term lease from Cyprus Port Authorities (“CPA”), the area that F&T Investment used as shipyard located at Limassol port. In February 2018, Petrogress Int’l LLC executed a Representation/Agency agreement with Mr. Louizos George, with the aim of establishing its representation in Erbil, Iraq. Mr. Louizos is handling on behalf of Petrogress Int’l LLC the negotiations with SOMO (the Iraqi National Oil Company) to register the company as a buyer and obtain an allocation of Basrah Light Crude Oil for 1,000,000 barrels per month under a long term contract. Although the registration of the representation has been completed, management has suspended further negotiations with SOMO for obtaining the supply allocation. On March 23, 2018, Petrogress Int’l LLC, executed another Partnership agreement with a Nigeria Oil storing company Gonzena Hydrocarbons and Energy Co. Ltd (“Gonzena”), which is located in Koko Town of Delta River and operates in the storage and distribution of oil products into local Nigerian market. A new entity will be formed, which is to be named P&G Nigeria Oil Company Ltd (“PEGNOC”), which Petrogress Int’l LLC and Gonzena will own, 55% and 45%, respectively. PEGNOC will be assigned from Gonzena two oil tanks each with a capacity of 15,000 liters. PEGNOC has not yet been formed and this project has been postponed pending availability of funding to be committed by the parties. Petrogress Oil & Gas Energy Inc. Petrogress Oil & Gas Energy Inc., is a Texas corporation, incorporated in December 2015 and is focused on identifying and acquiring suitable interests in oil fields in Texas to allow for the Company’s expansion of its operations to include oil refinery production based within the United States and to export liquefied natural gas (“LNG”) to Mediterranean markets. On September 2017, Petrogress Oil & Gas Energy Inc. through its affiliated company Petrogres Africa Company Limited, commenced negotiations with Ghana National Petroleum Company (“GNPC”) for the exploration of the oil fields in Saltpond basin and the repairs of the oil rig-platform “APG- 1” where a survey on the of the platform is carried-out by a US specialist, for the assessment of the repairs cost of the platform and the improvement of the oil production. The Saltpond oil fields, including the APG- 1 platform, were operated by the Texas corporation Lushann International Energy, Inc. (“Lushann”), under a Petroleum Agreement with GNPC since 2004 (the “Petroleum Agreement”). Due to financial and technical issues the Petroleum Agreement was suspended by GNPC on August 2017 and the operations in Saltpond ceased.Based on our interest on re-commencing the operations and to continue the oil production, we conducted negotiations with Lushann, which were concluded on February 16, 2018 with the execution of a Memorandum of Understanding between Petrogress Oil & Gas Energy Inc. and Lushann. Under the terms of this memorandum, Petrogress Oil & Gas Energy Inc. elected to play the role of a farm-in-partner in the crude oil and the associated gas production in the developing area of 12 km² of the Saltpond oil field. The parties have agreed to form a Ghanaian limited liability company to be named PG – Saltpond Offshore Oil Production & Development Co., Limited (“SODCO”). Subject to the removal of the suspension of the Petroleum Agreement, and the assignment of 65% of SODCO to Petrogress Oil & Gas Energy Inc., the latter intends to undertake the necessary repairs and improvements of the APG- 1 platform, and arrange a cash investment of $3.5 million plus a credit line of $15.0 million. Due to Ghanaian government involvement, the negotiations are still ongoing and the agreement is expected to be finalized in late fourth quarter of 2018, provided the financing mechanism-support can be arranged. Petrogres Africa Company Limited Effective September 30, 2017, Petrogress Int’l LLC purchased from Christos Traios, 90% of the issued and outstanding shares of Petrogres Africa Company Limited (“PGAF”), a Ghanaian limited Company. PGAF was incorporated in the summer of 2017 and holds a current Ghanaian business permit. PGAF is authorized to conduct local sales of oil products and shipping business from the Port of Tema in Greater Accra. Port facilities in Tema will provide a service and operations hub for the Company tankers currently involved in West Africa and Nigerian oil trading and transport. The Port of Tema also serves as a secondary hub for repair, supply and transport ship operators servicing Ghana’s Tano Basin offshore oil fields in the Gulf of Guinea. Emerging Growth Company We qualify as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7 (a)( 2 )(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Reclassifications For the six months ended June 30, 2018 we reclassified specific amounts of expenses in order to conform to current year presentations of our results. In the year ended 2017, the Company identified and renamed certain classifications in our Condensed Consolidated Statements of Comprehensive Income. Reclassifications were made in line to more accurately present the nature of the business. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those estimates. During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements filed with the SEC on its Form 10 -K for the year ended December 31, 2017. The information presented within these Interim Statements may not include all disclosures required by GAAP and the users of financial information provided for interim periods should refer to the annual financial information and footnotes when reviewing the interim financial results presented herein. In the opinion of management, the accompanying interim financial statements, prepared in accordance with the SEC’s instructions for Form 10 -Q, are unaudited and contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, results of operations and cash flows of the Company for the respective interim periods presented. The current period results of operations are not necessarily indicative of results which ultimately will be reported for the full fiscal year ending December 31, 2018.

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Note 2 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Significant Accounting Policies [Text Block]

Note

- Summary of Significant Accounting Policies

Cash and Cash Equivalents

We consider all highly liquid investments with an original term of

three

months or less to be cash equivalents.

Accounts Receivable, net

not

recoverable. The determination of bad debt allowance constitutes a significant estimate.

For the

six

months ended

June 30, 2018

and

six

months ended

June 30, 2017,

there were

allowances for doubtful debts.

Inventories

The Company's inventories consist primarily of purchased crude oil at the respective balance sheet date, and is valued at the lower of cost or market using the mark-to-market method of valuation.

Vessels and other fixed assets, net

six

months ended

June 30, 2018

and

2017,

respectively, management has

not

provided any impairment for the future recoverability of these assets.

We depreciate our vessels on a straight-line basis over the estimated useful life which is

years from the date of their transfer to the Company. Depreciation is calculated based on a vessel’s cost less the estimated residual value. The estimated useful lives of vessels and equipment are as follows:

Vessels (in years)			10
Office equipment and furniture (in years)			10
Computer hardware (in years)			5

Organization costs

Income taxes

We file income tax returns in various jurisdictions, as appropriate and required. We were

not

subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for any period prior to

January 1, 2012.

We account for income taxes in accordance with ASC

740

10,

Income Taxes. We recognize deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. We record a valuation allowance related to a deferred tax asset when it is more likely than

not

that some portion of the deferred tax asset will

not

be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC

740

prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. We classify interest and penalties as a component of interest and other expenses. To date, we have

not

incurred any liability for unrecognized tax benefits, including assessments of penalties and/or interest.

not

recognition threshold at the effective date

may

be recognized or continue to be recognized. Our tax years subsequent to

2011

remain subject to examination by federal and state tax jurisdictions.

Earnings

Per Share

The Company reports earnings per share in accordance with ASC

260,

"Earnings per Share." Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing income by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. Warrants that can be exercised to purchase

150,000

shares of Common Stock were

not

included in the calculation of diluted earnings per share for the

three

and

six

months ended

June 30, 2018

because their impact was anti-dilutive.

Accounting for

Equity-based

Payments

We account for stock awards issued to non-employees in accordance with ASC

505

50,

Equity-Based Payments to Non-Employees. The measurement date is the earlier of (

) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (

) the date at which the counterparty's performance is complete. Stock awards granted to non-employees are valued at their respective measurement dates based on the trading price of our common stock and recognized as expense during the period in which services are provided.

Comprehensive Income

We adopted ASC Topic

220,

"Comprehensive Income." This statement establishes standards for reporting comprehensive income and its components in a financial statement. Comprehensive income as defined includes all changes in equity (net assets) during a period from non-owner sources. Items included in Comprehensive loss consist of cancellation of available-for-sale securities and foreign currency translation adjustments.

Revenue Recognition

May 2014,

the Financial Accounting Standards Board (“FASB”) issued ASU

2014

09,

Revenue from Contracts with Customers (Topic

606

). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. We have adopted this update. The adoption of this guidance did

not

have a material impact on our consolidated financial statements.

Fair Value of Financial Instruments

Our financial instruments consist primarily of cash, accounts receivable, inventory, accounts payable and accrued expenses.

Interest rate risk is the risk that our earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates. We do

not

use derivative instruments to moderate its exposure to interest rate risk, if any.

Financial risk is the risk that our earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates. We do

not

use derivative instruments to moderate its exposure to financial risk, if any.

Fair value measurements are determined under a

three

-level hierarchy for fair value measurements that prioritizes the inputs to valuation techniques used to measure fair value, distinguishing between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (“observable inputs”) and the reporting entity ’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). Fair value is the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, we primarily use prices and other relevant information generated by market transactions involving identical or comparable assets (“market approach”). We also consider the impact of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity to identify transactions that are

not

orderly.

The highest priority is given to unadjusted quoted prices in active markets for identical assets (Level

measurements) and the lowest priority to unobservable inputs (Level

measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The

three

hierarchy levels are defined as follows:

Level

- Quoted prices in active markets that is unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level

- Quoted prices for identical assets and liabilities in markets that are

not

active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly;

Level

- Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

Effects of Recent Accounting Pronouncements

not

yet adopted

February 2016,

the FASB issued an ASU on lease accounting. The ASU requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. The ASU is effective for reporting periods beginning after

December 15, 2018

with early adoption permitted. We are currently evaluating the potential impact of this standard on our consolidated financial position.

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Note 3 - Concentrations of Credit Risk	6 Months Ended
Note 3 - Concentrations of Credit Risk	Jun. 30, 2018
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	Note 3 – Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivables. Concentrations of credit risk with respect to trade receivables are limited due to the short payment terms dictated by the industry and operating environment. As of June 30, 2018, and December 31, 2017, management is of the opinion that the Company had no significant concentrations of credit risk.

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Note 4 - Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

- Fair Value of Financial Instruments

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis as of

June 30, 2018

and

December 31, 2017,

respectively, for each fair value hierarchy level:

	Total		Level 1		Level 2		Level 3
June 3 0 , 2018
Loan facility from related party	$	96,400	$	96,400	$	-	$	-

December 31, 2017
Loan facility from related party	$	297,400	$	297,400	$	-	$	-

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

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Note 5 - Vessels and Other Fixed Assets, Net

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

- Vessels and other fixed assets, net

Vessels and other fixed assets, net consisted of the following as of

June 30, 2018

and

December 31, 2017:

	June 30, 2018			December 31, 2017			Estimated useful life (in years)
Marine vessels	$	10,171,930		$	10,171,930			10
Furniture and equipment		181,449			93,295			10
Accumulated depreciation		(5,441,956	)		(4,983,276	)
Net property and equipment	$	4,911,423		$	5,281,949

Depreciation for the

three

months ended

June 30, 2018

and

June 30, 2017,

was

$458,680

and

$348,930,

respectively.

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Note 6 - Loan Facility From Related Party

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Note Payable to Stockholder Disclosure [Text Block]

Note

– Loan facility from related party

July 13, 2017,

the Company entered into a Revolving Line of Credit Agreement (the “Agreement”) with Christos Traios, our President, Chief Executive Officer and sole Director. In accordance with the Agreement the Company also issued a

$1,000,000

Line of Credit Convertible Promissory Note (the “LOC Note”) to Christos Traios. Mr. Traios has provided the Company with additional working capital as required from time-to-time to support its operations, and the LOC Note formalizes that commitment and confirms amounts previously advanced under an informal agreement between Mr. Traios and the Company.

The LOC Note bears interest payable on the outstanding principal at

eight

percent (

) per annum. The principal and any accrued but unpaid interest on the LOC Note is due and payable on or before

July 13, 2018.

At the maturity date, the Company

may

extend and renew the LOC Note for additional terms of

twelve

(

) months, with a new effective and maturity date assigned for each successive extension and renewal. Interest is due and payable every

six

(

) months and on the Maturity Date, and each successive iteration of such dates upon extension and renewal thereafter. The principal amount of the LOC Note

may

be prepaid by the Company, in whole or in part, without penalty, at any time.

Upon the interest due date or maturity date, or any of them, regardless of any event of default, the LOC Note holder

may

demand payment of any or all of the interest due on the principal amount by delivery of a number of common shares converted at a rate of

$0.001

per share. There is

provision for any of the principal to be repaid in common stock of the Company. Except in the event of a default, in

instance

may

the LOC Note holder convert amounts due for accrued interest to the extent that said repayment in common stock will cause the Company to issue a number of shares constituting

ten

percent (

10%

) or more of the Company’s then issued and outstanding common shares.

In consideration of Mr. Traios’s extension of credit to the Company, the Company agreed to issue to him a Warrant (the "Warrant") to purchase

150,000

shares of the Company’s common stock at an exercise price of

$5.00

for a period of

five

years. The Warrant will provide for cashless exercise privileges, and be transferrable or assignable at the Holder’s option, with the Company’s approval. The Warrant has

not

been issued as of

June 30, 2018.

Advances from Christos Traios from inception, including activity on the LOC Note, are as follows:

Balance December 31, 2017	$	297,400
New amounts loaned to the Company by Christos Traios		74,000
Amount converted in shares of Common stock		(275,000	)
Balance June 3 0 , 2018	$	96,400

$15,000

and

$7,500

that Mr. Traios loaned to Petrogress Int'l LLC and Petrogress Oil & Gas Energy Inc., respectively, were also converted into shares of Common Stock during the

six

months ended

June 30, 2018.

See also Note

– Common Stock Transactions below for further discussion.

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Note 7 - Common Stock Transactions	6 Months Ended
Note 7 - Common Stock Transactions	Jun. 30, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 7 - Common Stock Transactions On October 20, 2017, the Company issued 10,000,000 shares of Common Stock to Charles L. Stidham as compensation for future services rendered over a two -year period. The share consideration and the agreement with Mr. Stidham were disclosed in a Form S- 8 registration statement effective September 22, 2017.During the six months ended June 30, 2018, approximately $153,178 of expense was recognized in relation to these awards and included in corporate expenses in the Condensed Consolidated Income Statement. On June 18, 2018, the Company terminated its agreement with Mr. Stidham for non-performance and Mr. Stidham agreed to return 5,000,000 shares of Common Stock issued to him for cancellation by the Company in connection with the early termination. On January 12, 2018, the Company issued 2,903,225 shares of Common Stock to Christos Traios, our President, Chief Executive Officer and sole Director for the settlement of wages due equal to $90,000 that had been accrued by parent company Petrogress, Inc. as of December 31, 2017. On February 23, 2018 the Company issued 4,758,128 shares of Common Stock to Mr. Traios for the settlement of wages due equal to $120,000 that had been incurred by the parent company Petrogress, Inc. for the year ended December 31, 2016. On February 23, 2018 the Company issued 19,070,512 shares of Common Stock to Christos Traios, our President, Chief Executive Officer and sole Director in settlement of loans equal to $297,500 he had provided to the Company as of that date. Specifically, the Company settled $275,000 of loans that Mr. Traios had provided to parent company Petrogress, Inc., and $15,000 and $7,500 that Mr. Traios had advanced to Petrogress Int'l LLC and Petrogress Oil & Gas Energy Inc., respectively. The Company recognized a loss of $160,192 upon settlement of these loans. The Company entered into two separate Advisory Board Member Agreements each dated October 1, 2017 with Dr. Demetrios Z Pierides, PhD. and Dr. Christine Warnke, PhD. Pursuant to the terms of the Pierides and Warnke Advisory Board Member Agreements, the Company is obligated to issue to Dr. Pieride and Dr. Warnke shares of Common Stock, as compensation for services rendered thereunder. Accordingly, on June 7, 2018 the Company issued 20,000 and 60,000 shares of Common Stock, respectively, to Dr. Pieride and Dr. Warnke, as compensation under the Pierides and Warnke Advisory Board Member Agreements, which shares of Common Stock were deemed upon issuance, fully paid and non-assessable On July 9, 2018, the Company filed an amendment (the “Amendment”) to its Certificate of Incorporation with the Delaware Secretary of State to, among other things, effect a reverse stock split of the Company’s Common Stock at a ratio of one -for- 100 and reduce the number of authorized shares of Common Stock from 490,000,000 to 19,000,000. The Amendment took effect on July 18, 2018. No fractional shares were issued as a result of the Amendment. In lieu of issuing additional shares, all stockholders who would be entitled to receive fractional shares as a result of the reverse stock split were entitled to receive cash payment for their fractional shares. There was no change in the par value of the Company’s Common Stock. See Note 8 for discussion of changes to Preferred Stock effected by the Amendment. The Amendment and reverse stock split have been recognized retroactively as of June 30, 2018 and December 31, 2017. Shares of common stock outstanding as of June 30, 2018 and December 31, 2017 has been adjusted from 344,687,672 to 3,446,877 and 317,875,807 to 3,178,758, respectively. Common stock as of June 30, 2018 and December 31, 2017 has been adjusted from $344,688 to $3,447 and $317,876 to $3,179, respectively. Additional Paid-In Capital as of June 30, 2018 and December 31, 2017 has been adjusted from $9,281,669 to $9,622,910 and $8,786,060 to $9,100,757, respectively.

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Note 8 - Preferred Stock	6 Months Ended
Note 8 - Preferred Stock	Jun. 30, 2018
Notes to Financial Statements
Preferred Stock [Text Block]	Note 8 – Preferred stock On July 14, 2017, Christos Traios, our President, Chief Executive Officer and sole Director approved a resolution authorizing the establishment of Series A Preferred Stock. The Series A Preferred Stock consists of 100 shares in total with a re-designated par value of $100 per share. The holder(s) of the Series A shares has/have rights as a class to a number of votes equal to two ( 2 ) times the sum of: (i) the total number of shares of Common Stock which are issued and outstanding at the time of any election or vote by the shareholders; plus (ii) the number of shares of Preferred Stock issued and outstanding of any other class that has voting rights, if any. These voting rights may be exercised for any matter requiring shareholder approval by vote or consent, and may, if required, permit a number of votes in excess of the total number of shares authorized. The holder(s) of the Series A shares is/are not entitled to convert the Series A shares to shares of Common Stock or any other class of the Corporation’s stock. The Series A shares shall not be entitled to dividends, but, in the event of liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, the holder(s) of the Series A shares will be entitled to receive out of the assets of the Corporation, prior to and in preference to any distribution of the assets or surplus funds of the Corporation to the holders of any other class of preferred stock or the Common Stock, the amount of One Hundred Dollars ( $100 ) per share, and will not be entitled to receive any portion of the remaining assets of the Company except by reason of ownership of shares of any other class of the Company’s stock. The Series A shares are not subject to redemption by the Company. On October 6, 2017, the Company issued the above 100 Series A shares of Preferred stock to Christos Traios, our President, Chief Executive Officer and sole Director as provided in his employment agreement. On July 9, 2018, the Company filed the Amendment to the Company’s Certificate of Incorporation with the Delaware Secretary of State to, among other things, reduce the number of authorized shares of Preferred Stock from 10,000,000 to 1,000,000. The Amendment took effect on July 18, 2018. There was no change in the par value of the Company’s Preferred Stock. See Note 7 for discussion of changes to Common Stock effected by the Amendment.

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Note 9 - Related Parties Transactions

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Note

– Related parties transactions

Officer’s compensation

During the

six

months ended

June 30, 2018,

and

June 30, 2017,

the Company had recorded officers’ compensation of

$110,000

and

$60,000,

respectively. For the period ended

June 30, 2018,

$11,030

was paid and the remaining amount was accrued and included in Amounts Due to Related Party on the Consolidated Balance Sheets as of

June 30, 2018.

Officer’s advances

During the

six

months ended

June 30, 2018,

Christos Traios, our President, Chief Executive Officer and sole Director advanced the Company

$74,000.

Revolving Line of Credit

During the

six

months ended

June 30, 2018

Christos Traios provided finance to the Company of

$74,000,

under the terms of the LOC Note, signed by and between Mr. Traios and Petrogress, Inc. on

July 13, 2017.

During the year ended

December 31, 2017

the respective finance provided by Christos Traios to the Company was

$275,000.

See Note

– Loan facility from related party of the consolidated financial statements for further information.

Capital transactions

Effective

September 30, 2017,

Petrogress Int’l LLC purchased from Christos Traios

1,080,000

shares of Petrogres Africa Company Limited (“PGAF”), a Ghanaian limited company. The shares of PGAF acquired comprise

90%

of its issued and outstanding shares. The acquisition is vital for the Company’s strategic objective to expand operations and its presence in West Africa. The initial consideration for the forgoing shares was

$1,080,000

and Mr. Traios forgave an amount of

$180,000

leading to a final consideration of

$900,000

included in Amounts due to related party in the Consolidated Balance Sheet as of

June 30, 2018

and

December 31, 2017.

PGAF was incorporated in the summer of

2017

and holds a current Ghanaian business permit and is authorized to conduct local sales of oil products and shipping business from the Port of Tema in Greater Accra. Port facilities in Tema will provide a service and operations hub for the Company tankers currently involved in West Africa and Nigerian oil trading and transport. The Port of Tema also serves as a secondary hub for repair, supply and transport ship operators servicing Ghana’s Tano Basin offshore oil fields in the Gulf of Guinea.

Mr. Traios initially acquired

90%

of PGAF shares at their par value for a consideration of

$900,000,

August 17, 2017.

The Company has accounted for the purchase of shares of PGAF as a business acquisition under common control and as such, the assets have been transferred at carrying costs as of the date of acquisition, and the activity of the acquired entity has been combined as of the date common control as established in line with the provisions of ASC

805

August17,

2017.

The difference between the consideration paid by Mr. Traios, and the net assets of PGAF on

August 17, 2017,

has been allocated to goodwill. The Company has

one

year from the date of acquisition to finalize the valuation analysis and has engaged a

third

-party valuation specialist for this assessment. The Company recognized Non-controlling interests equal to

$100,000

as of the date common control was established.

Since the date common control was established, PGAF has recognized

$1,166,500

of revenue to the Company, of which

$441,500

was recognized during the

six

months ended

June 30, 2018.

Partnership Agreemen

t with Platon Gas Oil Ghana Ltd

February 28, 2018

Petrogres Co. Limited entered into the Platon Partnership Agreement creating an equal partnership between PGL and Platon Gas Oil Ghana Limited, which owns an oil refinery and serves as an importer of various petroleum products based in Ghana. The Platon Partnership Agreement is intended to be renewed on an annual basis and pursuant its terms, PGL will supply crude oil for storage, refinement, marketing and distribution in Ghana jointly with PGO. Under the Platon Partnership Agreement, PGL is expected to deliver

3,000

5,000

metric tons of crude oil on a monthly basis for storage and processing into various petroleum products, including blend stocks, cutter stock and other feedstock. PGO, in coordination with PGL management, will market and distribute the refined petroleum products. Under the Platon Partnership Agreement, all expenses of the partnership operations are shared by both PGL and PGO. After deducting the operating expenses, the net profits from the sale of the petroleum products are split evenly between PGL and PGO.

The Company accounts for this agreement under ASC

808

10,

Collaborative Agreements, and has recognized the portion of revenues and expenses attributed to the Company. During the

six

months ended

June 30, 2018,

the Company has recognized

$4,184,164

in proportionate revenues in the Partnership Agreement.

Issuance of

100

Series A Preference shares

During the year ended

December 31, 2017,

the Company issued to Mr. Traios

100

Series A Preference shares with a par value of

$100

each. As of

December 31, 2017,

this amount is due to the Company and was classified under Additional paid-in capital.The table below presents the movement of the amounts due to Christos Traios during the

six

months ended

June 30, 2018.

Amounts due to related party December 31, 2017	$	1,243,753
Wages accrued to Christos Traios		110,000
Wages paid to Christos Traios, in Shares of Common Stock of Petrogress, Inc.		(210,000	)
Wages paid to Christos Traios, in cash		(11,031	)
Amount due to Christos Traios from Petrogress Int'l LLC and Petrogress Oil & Gas Inc. converted into Shares of Common Stock of Petrogress, Inc.		(22,500	)
Amounts due to related party June 3 0 , 2018	$	1,110,222

XML 26 R15.htm IDEA: XBRL DOCUMENT

Note 10 - Revenue Concentrations	6 Months Ended
Note 10 - Revenue Concentrations	Jun. 30, 2018
Notes to Financial Statements
Revenue Concentrations Disclosure [Text Block]	Note 10 - Revenue Concentrations The Company sells to commercial customers in foreign markets. For the six months ended June30, 2018, sale of crude oil to all buyers in West Africa other than J/V PGL & PGO were suspended, and all sales of crude oil in West Africa were made to J/V PGL & PGO pursuant to the terms of the Platon Partnership Agreement. As a result, sales to J/V PGL & PGO under the Platon Partnership Agreement represented more than 80% each of consolidated revenue. For the six months ended June 2017, two customers represented more than 10% each of consolidated revenues. As of June 30, 2018, and December 31, 2017, four customers represented more than 10% each of consolidated accounts receivable.

XML 27 R16.htm IDEA: XBRL DOCUMENT

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

We consider all highly liquid investments with an original term of

three

months or less to be cash equivalents.

Receivables, Policy [Policy Text Block]

Accounts Receivable, net

not

recoverable. The determination of bad debt allowance constitutes a significant estimate.

For the

six

months ended

June 30, 2018

and

six

months ended

June 30, 2017,

there were

allowances for doubtful debts.

Inventory, Policy [Policy Text Block]

Inventories

The Company's inventories consist primarily of purchased crude oil at the respective balance sheet date, and is valued at the lower of cost or market using the mark-to-market method of valuation.

Property, Plant and Equipment, Policy [Policy Text Block]

Vessels and other fixed assets, net

six

months ended

June 30, 2018

and

2017,

respectively, management has

not

provided any impairment for the future recoverability of these assets.

We depreciate our vessels on a straight-line basis over the estimated useful life which is

Vessels (in years)			10
Office equipment and furniture (in years)			10
Computer hardware (in years)			5

Organization Costs, Policy [Policy Text Block]

Organization costs

Income Tax, Policy [Policy Text Block]

Income taxes

We file income tax returns in various jurisdictions, as appropriate and required. We were

not

subject to U.S. federal, state and local, as applicable, income tax examinations by regulatory taxing authorities for any period prior to

January 1, 2012.

We account for income taxes in accordance with ASC

740

10,

not

that some portion of the deferred tax asset will

not

be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC

740

not

incurred any liability for unrecognized tax benefits, including assessments of penalties and/or interest.

not

recognition threshold at the effective date

may

be recognized or continue to be recognized. Our tax years subsequent to

2011

remain subject to examination by federal and state tax jurisdictions.

Earnings Per Share, Policy [Policy Text Block]

Earnings

Per Share

The Company reports earnings per share in accordance with ASC

260,

150,000

shares of Common Stock were

not

included in the calculation of diluted earnings per share for the

three

and

six

months ended

June 30, 2018

because their impact was anti-dilutive.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Accounting for

Equity-based

Payments

We account for stock awards issued to non-employees in accordance with ASC

505

50,

Equity-Based Payments to Non-Employees. The measurement date is the earlier of (

) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income

We adopted ASC Topic

220,

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

May 2014,

the Financial Accounting Standards Board (“FASB”) issued ASU

2014

09,

Revenue from Contracts with Customers (Topic

606

not

have a material impact on our consolidated financial statements.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Our financial instruments consist primarily of cash, accounts receivable, inventory, accounts payable and accrued expenses.

Interest rate risk is the risk that our earnings are subject to fluctuations in interest rates on either investments or on debt and is fully dependent upon the volatility of these rates. We do

not

use derivative instruments to moderate its exposure to interest rate risk, if any.

Financial risk is the risk that our earnings are subject to fluctuations in interest rates or foreign exchange rates and are fully dependent upon the volatility of these rates. We do

not

use derivative instruments to moderate its exposure to financial risk, if any.

Fair value measurements are determined under a

three

not

orderly.

The highest priority is given to unadjusted quoted prices in active markets for identical assets (Level

measurements) and the lowest priority to unobservable inputs (Level

measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The

three

hierarchy levels are defined as follows:

Level

- Quoted prices in active markets that is unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level

- Quoted prices for identical assets and liabilities in markets that are

not

active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly;

Level

- Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

New Accounting Pronouncements, Policy [Policy Text Block]

Effects of Recent Accounting Pronouncements

not

yet adopted

February 2016,

December 15, 2018

with early adoption permitted. We are currently evaluating the potential impact of this standard on our consolidated financial position.

XML 28 R17.htm IDEA: XBRL DOCUMENT

Note 2 - Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Property, Plant and Equipment, Estimated Useful Lives [Table Text Block]

Vessels (in years)			10
Office equipment and furniture (in years)			10
Computer hardware (in years)			5

XML 29 R18.htm IDEA: XBRL DOCUMENT

Note 4 - Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	Total		Level 1		Level 2		Level 3
June 3 0 , 2018
Loan facility from related party	$	96,400	$	96,400	$	-	$	-

December 31, 2017
Loan facility from related party	$	297,400	$	297,400	$	-	$	-

XML 30 R19.htm IDEA: XBRL DOCUMENT

Note 5 - Vessels and Other Fixed Assets, Net (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Property, Plant and Equipment [Table Text Block]

	June 30, 2018			December 31, 2017			Estimated useful life (in years)
Marine vessels	$	10,171,930		$	10,171,930			10
Furniture and equipment		181,449			93,295			10
Accumulated depreciation		(5,441,956	)		(4,983,276	)
Net property and equipment	$	4,911,423		$	5,281,949

XML 31 R20.htm IDEA: XBRL DOCUMENT

Note 6 - Loan Facility From Related Party (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Activity on Line of Credit Note [Table Text Block]

Balance December 31, 2017	$	297,400
New amounts loaned to the Company by Christos Traios		74,000
Amount converted in shares of Common stock		(275,000	)
Balance June 3 0 , 2018	$	96,400

XML 32 R21.htm IDEA: XBRL DOCUMENT

Note 9 - Related Parties Transactions (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Amounts Due to Related Parties [Table Text Block]

Amounts due to related party December 31, 2017	$	1,243,753
Wages accrued to Christos Traios		110,000
Wages paid to Christos Traios, in Shares of Common Stock of Petrogress, Inc.		(210,000	)
Wages paid to Christos Traios, in cash		(11,031	)
Amount due to Christos Traios from Petrogress Int'l LLC and Petrogress Oil & Gas Inc. converted into Shares of Common Stock of Petrogress, Inc.		(22,500	)
Amounts due to related party June 3 0 , 2018	$	1,110,222

XML 33 R22.htm IDEA: XBRL DOCUMENT

Note 1 - Background and Description of Business and Preparation of Financial Statements (Details Textual) $ / shares in Units, $ in Millions	Mar. 23, 2018 l	Feb. 28, 2018 bbl	Feb. 16, 2018 USD ($)	Sep. 30, 2017 shares	Feb. 29, 2016 $ / shares shares	Jun. 30, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares	Mar. 09, 2016
Common Stock, Shares Authorized					490,000,000	19,000,000	19,000,000
Common Stock, Par or Stated Value Per Share \| $ / shares					$ 0.001	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized					10,000,000	10,000,000	0
Preferred Stock, Par or Stated Value Per Share \| $ / shares					$ 0.001	$ 0.001	$ 0
Number of Oil Tanks Assigned	2
Oil Tank Capacity \| l	15,000
Scenario, Plan [Member]
Proceeds from Investors \| $			$ 3.5
Line of Credit Facility, Maximum Borrowing Capacity \| $			$ 15.0
Petronav Carriers LLC [Member]
Number of Vessels in Tanker Fleet								4
Petrogress Int'l LLC [Member] \| SOMO [Member]
Long-term Purchase Commitment, Barrels of Oil Per Month \| bbl		1,000,000
Petrogres Africa Co. Ltd [Member]
Noncontrolling Interest, Ownership Percentage by Parent						90.00%
PEGNOC [Member] \| Petrogress Int'l LLC [Member]
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest	55.00%
PEGNOC [Member] \| Gonzena [Member]
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest	45.00%
SODCO [Member] \| Petrogres Oil & Gas [Member]
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest			65.00%
Acquisition of Petrogres Co. Limited [Member]
Stock Issued During Period, Shares, Acquisitions					136,000,000
Equity Method Investment, Ownership Percentage					85.00%
Business Acquisition, Percentage of Voting Interests Acquired					100.00%
Petrogres Africa Co. Ltd [Member]
Stock Issued During Period, Shares, Acquisitions				1,080,000
Business Acquisition, Percentage of Voting Interests Acquired				90.00%

XML 34 R23.htm IDEA: XBRL DOCUMENT

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Allowance for Doubtful Accounts Receivable, Current, Ending Balance	$ 0	$ 0	$ 0
Unrecognized Tax Benefits, Ending Balance	$ 0	$ 0
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	150,000	150,000

XML 35 R24.htm IDEA: XBRL DOCUMENT

Note 2 - Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Vessels and Equipment (Details)	6 Months Ended
	Jun. 30, 2018
Vessels [Member]
Useful Life (Year)	10 years
Office Equipment and Furniture [Member]
Useful Life (Year)	10 years
Computer Hardware and Software [Member]
Useful Life (Year)	5 years

XML 36 R25.htm IDEA: XBRL DOCUMENT

Note 4 - Fair Value of Financial Instruments - Financial Instruments Measured At Fair Value On a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Loan facility from related party	$ 96,400	$ 297,400
Fair Value, Inputs, Level 1 [Member]
Loan facility from related party	96,400	297,400
Fair Value, Inputs, Level 2 [Member]
Loan facility from related party
Fair Value, Inputs, Level 3 [Member]
Loan facility from related party

XML 37 R26.htm IDEA: XBRL DOCUMENT

Note 5 - Vessels and Other Fixed Assets, Net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Depreciation, Total	$ 231,061	$ 175,362	$ 458,680	$ 348,930

XML 38 R27.htm IDEA: XBRL DOCUMENT

Note 5 - Vessels and Other Fixed Assets, Net - Summary of Estimated Useful Lives of Vessels and Equipment (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Accumulated depreciation	$ (5,441,956)	$ (4,983,276)
Net property and equipment	4,911,423	5,281,949
Vessels [Member]
Property and equipment, gross	$ 10,171,930	10,171,930
Useful Life (Year)	10 years
Office Equipment and Furniture [Member]
Property and equipment, gross	$ 181,449	$ 93,295
Useful Life (Year)	10 years

XML 39 R28.htm IDEA: XBRL DOCUMENT

Note 6 - Loan Facility From Related Party (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jul. 13, 2017
Mr. Traios [Member] \| Petrogress Int'l LLC [Member]
Due to Related Parties, Total	$ 15,000
Mr. Traios [Member] \| Petrogress, Inc. [Member]
Due to Related Parties, Total	$ 7,500
Warrant Issued to Mr. Traios [Member]
Class of Warrant or Right, Outstanding		150,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 5
Warrants and Rights Outstanding, Term		5 years
Class of Warrant or Right, Issued During Period	0
Revolving Credit Facility [Member] \| Principal Stockholder and Sole Officer/Director [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,000,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt Instrument, Convertible, Conversion Price		$ 0.001

XML 40 R29.htm IDEA: XBRL DOCUMENT

Note 6 - Loan Facility From Related Party - Activity on LOC Note (Details)	6 Months Ended
	Jun. 30, 2018 USD ($)
Balance	$ 297,400
New amounts loaned to the Company by Christos Traios	74,000
Amount converted in shares of Common stock	(275,000)
Balance	$ 96,400

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

XML 41 R30.htm IDEA: XBRL DOCUMENT

Note 7 - Common Stock Transactions (Details Textual)							3 Months Ended		6 Months Ended		12 Months Ended
Note 7 - Common Stock Transactions (Details Textual)	Jul. 09, 2018	Jun. 18, 2018 shares	Jun. 07, 2018 shares	Feb. 23, 2018 USD ($) shares	Jan. 12, 2018 shares	Oct. 20, 2017 shares	Jun. 30, 2018 USD ($) shares	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) shares	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($)	Feb. 29, 2016 shares
Gain (Loss) on Settlement of Related Party Debt				$ (160,192)			$ (160,192)		$ (160,192)
Common Stock, Shares Authorized \| shares							19,000,000		19,000,000		19,000,000		490,000,000
Common Stock, Shares, Outstanding, Ending Balance \| shares							3,446,877		3,446,877		3,178,756
Common Stock, Value, Issued, Ending Balance							$ 3,447		$ 3,447		$ 3,179
Additional Paid in Capital, Ending Balance							$ 9,622,910		$ 9,622,910		$ 9,100,757
Before Reverse Stock Split [Member]
Common Stock, Shares Authorized \| shares							490,000,000		490,000,000
Common Stock, Shares, Outstanding, Ending Balance \| shares							344,687,672		344,687,672		317,875,807
Common Stock, Value, Issued, Ending Balance							$ 344,688		$ 344,688		$ 317,876
Additional Paid in Capital, Ending Balance							$ 9,281,669		9,281,669		8,786,060
Subsequent Event [Member] \| Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	100
Petrogress Int'l LLC [Member]
Repayments of Notes Payable				15,000
Petrogress, Inc. [Member]
Repayments of Notes Payable				$ 7,500
Charles L. Stidham [Member]
Stock Issued During Period, Shares, Share-based Compensation, Gross \| shares						10,000,000
Stock Issued During Period, Shares, Share-based Compensation, Forfeited \| shares		5,000,000
Charles L. Stidham [Member] \| Corporate Expense [Member]
Allocated Share-based Compensation Expense, Total									$ 153,178
Christos P. Traios [Member]
Stock Issued During Period, Shares, Share-based Compensation, Gross \| shares				4,758,128	2,903,225
Salary and Wage, Officer, Excluding Cost of Good and Service Sold											$ 90,000	$ 120,000
Stock Issued During Period, Shares, Debt Settlement Agreement \| shares				19,070,512
Stock Issued During Period, Value, Debt Settlement Agreement				$ 297,500
Repayments of Notes Payable				$ 275,000
Dr. Pieride [Member]
Stock Issued During Period, Shares, Issued for Services \| shares			20,000
Dr. Warnke [Member]
Stock Issued During Period, Shares, Issued for Services \| shares			60,000

XML 42 R31.htm IDEA: XBRL DOCUMENT

Note 8 - Preferred Stock (Details Textual) - $ / shares	Jul. 09, 2018	Jun. 30, 2018	Dec. 31, 2017	Oct. 06, 2017	Jul. 14, 2017	Feb. 29, 2016
Preferred Stock, Shares Authorized		10,000,000	0			10,000,000
Preferred Stock, Par or Stated Value Per Share		$ 0.001	$ 0			$ 0.001
Preferred Stock, Shares Issued, Total		0	0
Subsequent Event [Member]
Preferred Stock, Shares Authorized	1,000,000
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized		100	100
Preferred Stock, Par or Stated Value Per Share		$ 100	$ 100
Preferred Stock, Shares Issued, Total		100	100
Series A Preferred Stock [Member] \| Sole Director, President and Chief Executive Officer [Member]
Preferred Stock, Shares Authorized					100
Preferred Stock, Par or Stated Value Per Share					$ 100
Preferred Stock, Shares Issued, Total				100

XML 43 R32.htm IDEA: XBRL DOCUMENT

Note 9 - Related Parties Transactions (Details Textual) - USD ($)		3 Months Ended		6 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017	Feb. 29, 2016
Revenues, Total		$ 2,261,890	$ 4,443,072	$ 4,827,154	$ 8,462,185
Preferred Stock, Par or Stated Value Per Share		$ 0.001		$ 0.001		$ 0.001	$ 0	$ 0.001
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share		$ 100		$ 100		$ 100	$ 100
Petrogres Africa Co. Ltd [Member]
Stock Issued During Period, Shares, Acquisitions	1,080,000
Business Acquisition, Percentage of Voting Interests Acquired	90.00%
Business Combination, Consideration Transferred, Total	$ 1,080,000
Payments to Acquire Businesses, Gross				$ 900,000
Noncontrolling Interest, Increase from Business Combination	100,000
Revenues, Total				441,500		$ 1,166,500
Partnership Agreement with Platon [Member]
Revenues, Total				4,184,164
Chief Executive Officer [Member]
Salary and Wage, Officer, Excluding Cost of Good and Service Sold				110,000	$ 60,000
Officers' Compensation, Previously Accured				11,030
Proceeds from Related Party Advances				74,000
Due to Related Parties, Total		$ 74,000		$ 74,000		$ 74,000	$ 275,000
Chief Executive Officer [Member] \| Series A Preferred Stock [Member]
Stock Issued During Period, Shares, New Issues							100
Preferred Stock, Par or Stated Value Per Share							$ 100
Chief Executive Officer [Member] \| Petrogres Africa Co. Ltd [Member]
Business Combination, Consideration Transferred, Total	$ 180,000

XML 44 R33.htm IDEA: XBRL DOCUMENT

Note 9 - Related Parties Transactions - Amounts Due to Related Party (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Wages paid to Christos Traios, in Shares of Common Stock of Petrogress, Inc.	$ (210,000)
Amount due to Christos Traios from Petrogress Int'l LLC and Petrogress Oil & Gas Inc. converted into Shares of Common Stock of Petrogress, Inc.	(297,500)
President, Chief Executive Officer and Chief Financial Officer [Member]
Amounts due to related party December 31, 2017	1,243,753
Wages accrued to Christos Traios	110,000
Wages paid to Christos Traios, in Shares of Common Stock of Petrogress, Inc.	(210,000)
Wages paid to Christos Traios, in cash	(11,031)
Amount due to Christos Traios from Petrogress Int'l LLC and Petrogress Oil & Gas Inc. converted into Shares of Common Stock of Petrogress, Inc.	(22,500)
Amounts due to related party June 30, 2018	$ 1,110,222

XML 45 R34.htm IDEA: XBRL DOCUMENT

Note 10 - Revenue Concentrations (Details Textual) - Customer Concentration Risk [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Sales Revenue, Net [Member]
Number of Customers	2
Accounts Receivable [Member]
Number of Customers	4	4