10-Q

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, 2019

[    ] 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 other jurisdiction of incorporation of organization)	(I.R.S. Employer Identification No.)

1, Akti Xaveriou Avenue 5th Floor - Piraeus - Greece	18538
(Address of principal executive offices)	(Zip Code)

+30 (210) 459-9741

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ] No [   ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes [ X ] No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[   ]	Accelerated filer	[   ]
Non-accelerated filer	[   ]	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 13, 2019 was 3,874,808.

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	18
Item 4 - Controls and Procedures	18
Part II - Other Information
Item 1 - Legal Proceedings	19
Item 1A - Risk Factors	19
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3 - Defaults Upon Senior Securities	19
Item 4 - Mine Safety Disclosures	19
Item 5 - Other Information	19
Item 6 – Exhibits	19
Signatures	20

INTRODUCTORY COMMENT

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

CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION

This quarterly report of Petrogress Corporation contains forward-looking statements relating to Petrogress operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals, transactions, vessels and other energy-related industries. All statements in this Report that are not representations of historical fact are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and subject to the safe-harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities” and similar expressions are intended to identify such forward-looking statements.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil prices; changing refining, marketing and chemicals margins; our ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the our suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil; the inability or failure of our joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of our operations due to war, accidents, piracy, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond the company's control; changing economic, regulatory and political environments in the countries in which we operate; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; our future acquisition or disposition of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; and our ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry;

In addition to these assumptions and matters discussed elsewhere herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include:

● general market conditions, including conditions in the shipping or the marine industries;

● our future operating or financial results;

● the availability of financing and refinancing;

● material disruptions in the availability or supply of crude oil or refined petroleum products;

● our future, pending or recent acquisitions, business strategy, areas of possible expansion, and expected capital spending or operating and maintenance expenses;

● our ability to successfully identify, consummate, integrate, and realize the expected benefits from acquisitions;

● our ability to maintain our business in light of our proposed business and location expansion;

● planned capital expenditures and availability of capital resources to fund capital expenditures;

● the outcome of legal, tax or regulatory proceedings to which we may become a party;

● our ability to attract and retain our key suppliers and key customers;

● our contracts and licenses with governmental entities remaining in full force and effect;

● increased levels of competition within our industry;

● our ability to collect accounts receivable;

● corruption, piracy, militant activities, political instability, terrorism, and ethnic unrest in locations where we may operate;

● the failure of counterparties to fully perform their contracts with us;

● our levels of operating and maintenance costs;

● other important factors described from time to time in our filings with the U.S. Securities and Exchange Commission (the “SEC”).

These factors and the other risks described in this report are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, there can be no assurance that actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us. These forward-looking statements do not guaranty our future performance, and actual results and developments may vary materially from those projected in the forward-looking statements. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation, and specifically decline any obligation, except as required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

1

Part I

Financial Information

Item 1 - Financial Statements

PETROGRESS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

(Unaudited)

	Six Months Ended June 30,						Three Months Ended June 30,
	2019			2018			2019			2018
Revenues	$	2,526,678		$	4,827,154		$	404,000		$	2,261,890
Costs of goods sold		(1,446,954	)		(2,689,061	)		(281,202	)		(1,282,524	)
Gross profit		1,079,724			2,138,093			122,798			979,366
Operating expenses:
Corporate expenses	$	(83,611	)	$	(398,782	)	$	(78,548	)	$	(98,644	)
Operating expenses of commodities trade		(178,931	)		(179,510	)		(85,805	)		(35,408	)
Fleet operating expenses		(380,118	)		(187,343	)		(122,399	)		(67,946	)
General and administrative expenses		(318,514	)		(426,891	)		(126,487	)		(149,077	)
Amortization expense		(6,687	)		-			-			-
Depreciation expense		(428,048	)		(458,680	)		(230,768	)		(231,061	)
Total operating expenses		(1,395,909	)		(1,651,206	)		(644,007	)		(582,136	)
Operating income/ (loss) before other expenses and income taxes		(316,185	)		486,887			(521,209	)		397,230
Other income/ (expense), net:
Interest and finance expenses		(15,493	)		(1,427	)		(3,130	)		-
Loss on settlement of loan facility from related party		-			-			-			(160,192	)
Other income / (expense), net		(538,302	)		(134,354	)		(490,900	)		224
Other income / claims to third parties		-			-			-			-
Change in fair market value of derivative liabilities		-			-			-			-
Total other income/ (expense), net		(553,795	)		(135,781	)		(494,030	)		(159,968	)
Income before income taxes		(869,980	)		351,106			(1,015,239	)		237,262
Income tax expense		-			-			-			-
Net income/ (loss)	$	(869,980	)	$	351,106		$	(1,015,239	)	$	237,262
Net income/ (loss) attributable to:
Shareholders of the company		(861,098	)		348,989			(1,011,590	)		228,510
Non-controlling interests		(8,882	)		2,117			(3,649	)		8,752
	$	(869,980	)	$	351,106		$	(1,015,239	)	$	237,262
Other comprehensive income/ (loss)
Foreign currency translation adjustment		-			-			-			-
Comprehensive income/ (loss)	$	(869,980	)	$	351,106		$	(1,015,239	)	$	237,262
Comprehensive income/ (loss) attributable to:
Shareholders of the company		(861,098	)		348,989			(1,011,590	)		228,510
Non-controlling interests		(8,882	)		2,117			(3,649	)		8,752
	$	(869,980	)	$	351,106		$	(1,015,239	)	$	237,262
Weighted average number of shares of Common Stock:
Basic		3,842,916			3,373,163			3,857,162			3,446,279
Diluted		3,842,916			4,352,479			3,857,162			4,425,595
Basic earnings per share		(0.22	)		0.10			(0.26	)		0.07
Diluted earnings per share		(0.22	)		0.08			(0.26	)		0.05

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

2

PETROGRESS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited) 

	As of June 30, 2019			As of December 31, 2018
ASSETS
Current Assets
Cash and cash equivalents	$	659,387		$	661,010
Accounts receivable, net		4,178,058			4,779,432
Claims receivable, net		551,600			547,600
Inventories		981,063			417,135
Prepaid expenses and other current assets		1,519,480			1,765,276
Total current assets	$	7,889,588		$	8,170,453
Non-Current Assets
Goodwill		900,000			900,000
Vessels and other fixed assets, net		4,036,298			4,450,906
Deferred charges, net		20,062			26,750
Security deposit		10,584			10,638
Total non-current assets	$	4,966,944		$	5,388,294
Total Assets	$	12,856,532		$	13,558,747
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	1,205,499		$	1,265,452
Due to related party		1,245,839			1,176,863
Loan facility from related party		148,900			148,900
Accrued Interest		11,724			8,744
Total current liabilities	$	2,611,962		$	2,599,959
Total liabilities	$	2,611,962		$	2,599,959
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, 2019 and December 31, 2018, respectively		10,000			10,000
Preferred shares (undesignated), $0.001 par value, 999,900 shares authorized, 0 shares and 0 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively		-			-
Shares of Common stock, $0.001 par value, 19,000,000 shares authorized, 3,874,808 and 3,828,412 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively		3,875			3,829
Additional paid-in capital		9,682,877			9,535,161
Accumulated comprehensive loss		(10,231	)		(10,231	)
Retained earnings		454,772			1,315,870
Equity attributable to Shareholders of the Company		10,141,293			10,854,629
Non-controlling interests		103,277			104,159
Total liabilities and shareholders' equity	$	12,856,532		$	13,558,747

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

3

PETROGRESS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) 

	Six Months Ended June 30,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/ (loss)	$	(861,980	)	$	351,106
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		428,048			458,680
Change in Fair value of share-based payments issued for services		-			153,178
Share-based compensation expense		-			1,496
Gain/ (loss) on settlement of convertible promissory notes		46			(12,835	)
Loss on settlement of loan facility from related party		-			160,192
Changes in working capital:
- (Increase)/ decrease in Accounts receivable, net		601,374			(780,048	)
- (Increase) in Claims receivable, net		(4,000	)		-
- (Increase) in Inventories		(563,928	)		(10,608	)
- (Increase)/ decrease in Prepaid expenses and other current assets		245,796			(646,833	)
- (Increase)/ decrease in Security deposit		54			-
- Decrease in Deferred charges, net		6,688			-
- Increase/ (decrease) in Accounts payable and accrued expenses		87,763			(356,563	)
- Increase/ (decrease) in Amounts due to related party		68,976			98,969
- Increase/ (decrease) in Accrued Interest		2,980			3,196
Net cash provided by/ (used in) operating activities		11,817			(580,070	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property plant and equipment		(13,440	)		(88,154	)
Net cash (used in) investing activities		(13,440	)		(88,154	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loan facility from related party		-			74,000
Net cash provided by financing activities		-			74,000
Effect of exchange rate changes on cash		-			-
Net (decrease) in cash and cash equivalents		(1,623	)		(594,224	)
Cash and cash equivalents, Beginning of Period		661,010			1,150,999
Cash and cash equivalents, End of Period	$	659,387		$	556,775
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	$	21		$	297,500
Common stock issued for settlement of services	$	25		$	210,000

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

4

Petrogress, INC. and Subsidiaries

CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)

		Number of Preferred		Preferred		Common Stock				Additional Paid-in			Accumulated Comprehensive			Accumulated Profit/						Non- controlling			Total Shareholders
	Note	Shares		Shares		Shares		Amount		Capital			Loss			(Deficit)			Total			interest			Equity/(Deficit)
Balances at December 31, 2017			100	$	10,000		3,177,452	$	3,098	$	9,100,838		$	(7,744	)	$	1,008,823		$	10,115,015		$	98,758		$	10,213,773
Common stock issued for convertible notes			-		-		76,614		77		209,923			-			-			210,000			-			210,000
Common stock issued to settle liabilities			-		-		190,705		191		457,501			-			-			457,692			-			457,692
Cancellation of common stock issued for services			-		-		-		-		(146,767	)		-			-			(146,767	)		-			(146,767	)
Common stock issued for board advisory services			-		-		800		80		1,416			-			-			1,496			-			1,496
Net income			-		-		-		-		-			-			348,989			348,989			2,117			351,106
Balances at June 30, 2018			100	$	10,000		3,446,877	$	3,447	$	9,622,910		$	(7,744	)	$	1,357,812		$	10,986,425		$	100,875		$	11,087,300
Balances at December 31, 2018			100	$	10,000		3,828,412	$	3,829	$	9,535,161		$	(10,231	)	$	1,315,870		$	10,854,629		$	104,159		$	10,958,788
Common stock issued to settle liabilities			-		-		21,396		21		41,836			-			-			41,857			-			41,857
Common stock issued for services			-		-		25,000		25		47,475			-			-			47,500			-			47,500
Elimination of Petrogress Africa Ltd apic/due from shareholders			-		-		-		-		58,405			-			-			58,405			8,000			66,405
Net income			-		-		-		-		-			-			(861,098	)		(843,094	)		(8,882	)		(869,980	)
Balances at June 30, 2019			100	$	10,000		3,874,808	$	3,875	$	9,682,877		$	(10,231	)	$	454,772		$	10,141,293		$	103,277		$	10,244,570

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

5

Petrogress, INC. and Subsidiaries

NOTES TO Consolidated Financial Statements

(unaudited)

Note 1 – The Company and our Subsidiaries

History and Development of the Company

Petrogress, Inc. was incorporated on February 10, 2010 under the laws of the State of Florida as 800 Commerce, Inc. ("800 Commerce"). 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 and founder, Christos Traios. Under the terms of the SEA, 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. 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.

On March 9, 2016, our Board of Directors approved an amendment to our Articles of Incorporation to change the Company’s name to Petrogress, Inc. On March 15, 2016, Mr. Traios was appointed Chief Executive Officer. On November 16, 2016, Petrogress, Inc. 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.

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 as a result of the Amendment.

We maintain our principal marketing and operating offices at 1, Akti Xaveriou, 18538 Piraeus, Greece. Our telephone number at that address is +30 (210) 459-9741 and our corporate address and registered agent in Delaware is 1013 Centre Road, Suite 403-A, Wilmington, DE 19805 - USA.

Business Overview

Petrogress operates as a holding company and we conduct business primarily through our wholly-owned subsidiaries: Petronav Carriers LLC., which manages day-to-day operations of our affiliated tanker fleet; Petrogress Int’l LLC., which engages in crude-oil purchase and sales and is the holding company of the subsidiaries that currently conducting business in Greece, Cyprus and Ghana.

Our business operates in the downstream and midstream sectors of the energy industry, where we acquire and supply crude oil, and engage in the refining and marketing of refined products and lubricants. As a supplier, we procure crude oil from our direct sources and deliver by our tankers fleet to buyers’ destinations. With service centers in East Mediterranean and West Africa, we believe that we are one of a limited number of independent physical suppliers that owns and operates a fleet of supplying vessels and conducts physical supply operations in multiple jurisdictions.

We provide our customers with services that require sophisticated logistical operations designed to meet their strict oil quality and delivery scheduling needs. We believe that our extensive experience and management systems allow us to meet our customers' specific requirements when they purchase and take delivery of crude oil, refined products and lubricants around the areas in which we operate. This, together with the capital-intensive nature of our industry and the limited available shuttle vessels in the areas of our operation, represent a significant barrier to entry for competitors. We have devoted our efforts to building a global brand and believe that our customers recognize our brand as representing high quality service and products at each of our locations. We also perform our technical ship operations in-house, which helps us maintain high levels of customer service.

Throughout our history, we have expanded our business capabilities through strategic alliances, select business and vessel acquisitions, and the establishment of new service centers. In February 2019, we commenced negotiations with government of Ghana to lease a free zone land in Takoradi port to build a tanks farm with storage capacity of 100,000 cubic meters. We are also negotiating the lease of Ada shipyard where we expect to provide shelter and repairs facilities to our fleet and customers, and provide additional service and support to offshore oil rigs and platforms around the area of West Africa. Furthermore, we are in the market seeking to add more tankers ships to our fleet.

In addition to our operations described above, we commenced the marketing and distribution of lubricants under an exclusive agreement with Dana Lubricants Company (a company based in Dubai of UAE), which we market through our subsidiary Petrogres Africa Co. Ltd. We view this business as complementary to our downstream operations. We plan to expand the distribution of lubricants throughout our service center in Ghana and other countries in West and Central Africa.

6

Sales and Marketing

Most of our marketing, sales, ship-management and other related functions are performed at our main office in Piraeus, Greece. We also market products and services through our offices in Ghana and Cyprus and through our representations in Nigeria. Our sales force interacts with our established customers and markets our oil sales and services to local distributors. We believe our level of customer service, years of experience in the industry, and reputation for reliability are significant factors in retaining our customers and attracting new customers. Our sales and marketing approach are designed to create awareness of the benefits and advantages of our sales and services. We are active in industry trade shows and other available public forums.

Description of Significant Subsidiaries

Petronav Carriers LLC. (“PCL”), was formed in Delaware in March 2016 for the purpose of managing the day-to-day operations of four vessels, which are used to transport petroleum products to various countries in West Africa. PCL manages our fleet from its business office at Piraeus, Greece.

Currently PCL owns our vessels through separate wholly-owned subsidiaries described below:

Vessel-Owned Subsidiary	Incorporation	Vessel’s name
Shiba ship-management Ltd.	Marshall Islands	APECUS
Danae Marine Ltd.	Marshall Islands	OPTIMUS
Invictus Marine S.A.	Marshall Islands	INVICTUS
Entus Marine Ltd.	Marshall Islands	ENTUS

Petrogress Int’l LLC. (“PIL”), is a Delaware limited liability company, acquired by the Company in September 2017. PIL serves as a holding company for interests in various entities conducting business across the world, including Cyprus, the Middle East, and West Africa as an oil energy corporation.

In September 2017, PIL acquired 90% of the shares of Petrogres Africa Company Limited (“Petrogres Africa Co. Ltd”) from Christos Traios, our President, Chief Executive Officer. Petrogres Africa Co. Ltd holds a current Ghanaian Oil business permit, and is authorized to conduct local sales of oil products and operations of a shipping business from the Port of Tema in Greater Accra. Port facilities in Tema provide a service and operations hub for our 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. 

On April 1, 2019, Petrogress Int’l LLC. and Petrogres Co. Limited entered into a merger agreement pursuant to which Petrogres Co. Limited, a wholly owned subsidiary of Petrogress, merged with and into PIL, the surviving company. The merger became effective as of April 1, 2019.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

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

All significant intercompany transactions and accounts have been eliminated.

These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do not include all of the information and disclosures required by GAAP for complete financial statements.

These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the SEC on April 12, 2019. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year or any future interim period.

7

Principles of consolidation

The consolidated financial statements include the consolidated accounts of the Company and our wholly-owned and majority-owned subsidiaries: Petrogress Int’l LLC., Petronav Carriers LLC., Petrogres Africa Co. Ltd. and PG Cypyard & Offshore Services Terminal Ltd.

Percentages Participation in subsidiaries

Company	Participation
Petrogress Int’l LLC. (Delaware)	100% (owned by the corporation)
Petronav Carriers LLC. (Marshall Islands)	100% (owned by the corporation)
Petrogres Africa Co. Ltd. (Ghanaian)	90% (owned by Petrogress Int’l LLC.)
PG CYPYARD & Offshore Services Terminal Ltd.	100% (owned by Petrogress Int’l LLC.)

Non-controlling interests

Ownership interests in the Company’s subsidiaries held by parties other than the Company are presented separately from the Company’s equity on the Consolidated Balance Sheet. The amount of consolidated net income attributable to the Company and the non-controlling interests are both presented on the face of the Consolidated Statement of Income.

Emerging Growth Company

We qualify as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or “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.

Use of Estimates

The preparation of financial statements in conformity with 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.

Note 3 – Information relating to the Consolidated Statement of cash flows

	Six Months Ended
	June 30
	2019			2018
(Increase)/ decrease in Accounts receivable, net	$	601,374		$	(780,048	)
(Increase) in Claims receivable, net		(4,000	)		-
(Increase) in Inventories		(563,928	)		(10,608	)
(Increase)/ decrease in Prepaid expenses and other assets		245,796			(646,833	)
Increase/ (decrease) in Accounts payable and accrued expenses		87,763			(356,563	)
Increase in Amounts due to related party		68,976			98,969
Increase in Accrued interest		2,980			3,196
Decrease in Security deposit		54			-
Decrease in Deferred charges, net		6,688			-
Net increase in operating capital	$	445,703		$	(1,691,887	)

Net repayment (borrowing) of loans by equity affiliates consisted of the following gross amounts:

	Six Months Ended
	June 30
	2019		2018
Borrowing of loans by equity affiliates	$	-	$	-
Repayment of loans by equity affiliates		-		63,000
Net repayment of loans by equity affiliates	$	-	$	63,000

8

Note 4 – Summarized Financial Data – Petrogress, Inc.

Petrogress, Inc.

The management and operation of our business is performed directly and independently by each subsidiary. Assets, inventories, partnership interests, joint venture interests and contracts are held by the subsidiaries. Petrogress, Inc., the parent company, does not have revenues while it suffers all the necessary operating and general and administrative expenses in order to comply with the regulatory requirements of the SEC.

The summarized financial information for the Company and its consolidated subsidiaries as of June 30, 2019 and 2018 are presented in the below tables:

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	-		$	-
Cost and other expenses		(254,038	)		(550,793	)
Net (loss) to PGI	$	(254,038	)	$	(550,793	)

	Six Months Ended
	June 30
	2019			2018
Current assets	$	176,993		$	29,935
Other assets		7,775			45,075
Current liabilities		(1,219,369	)		(697,772	)
Total Petrogress, Inc. net equity	$	(1,034,601	)	$	(622,762	)

Petronav Carriers LLC

Petrogress, Inc. owns 100% of the equity interest in Petronav Carriers LLC, the company that serves as the manager and operator of our tanker fleet of four vessels wholly-owned by its four subsidiaries. Summarized financial information is presented in the following table:

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	528,333		$	1,796,227
Cost and other expenses*		(1,674,142	)		(1,053,180	)
Net income/ (loss) to Petronav Carriers LLC**	$	(1,145,809	)	$	743,047

______________

* Cost and other expenses include the ransom paid as well as all expenses related to the hijacking of one of our vessels.

** 100% Net income attributable to Petrogress Inc.

Petrogress Int’l LLC

Petrogress, Inc. owns 100% of the equity interest in Petrogress Int’l LLC, the company which serves as a holding company for conducting business across the world through its affiliates and subsidiaries. Summarized financial information is presented in the following table:

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	2,139,178		$	-
Cost and other expenses		(2,179,311	)		(4,150	)
Net income/ (loss) to Petrogress Int’l LLC *	$	40,133		$	(4,150	)

______________

* 100% Net income attributable to Petrogress, Inc.

9

Petrogress Africa Co. Ltd.

Petrogress Int’l LLC owns 90% of the equity interest in Petrogres Africa Co. Ltd, the company that holds a Ghanaian permit and is authorized to conduct local sales of oil trade and servicing as a ship agent within Ghana ports. Summarized financial information is presented in the following table:

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	330,000		$	442,795
Cost and other expenses		(418,820	)		(421,627	)
Net income/ (loss) to Petrogres Africa Co. Ltd *	$	(88,820	)	$	21,168

______________

* 90% Net income attributable to Petrogress Int’l LLC

Note 5 – Inventories

Crude oil, Gas oil and bunkers onboard our vessels are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of items, spare-parts, consumable goods and equipment supplied to our vessel which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate.

Goods Inventories	June 30, 2019		December 31, 2018
Crude Oil	$	-	$	279,196
Gas Oil		810,000		-
Lubricants		86,004		-
Total Inventories	$	896,004	$	279,196

Note 6 – Properties, Vessels, inventories & equipment

	June 30, 2019		December 31, 2018
Vessel’s value, at historical cost	$	3,940,745	$	4,354,147
Bunkers R.O.B.		85,059		137,939
Equipment, Machineries, Fenders, Vehicles & Trucks		95,554		96,759
Total	$	4,121,358	$	4,588,845

Note 7 – Vessels and other fixed assets, net

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 or its affiliate. 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:

Tanker Vessels (in years)	10
Supply boats (in years)	10
Fenders (in years)	10
Oil hoses (in years)	10
Vehicles & trucks (in years)	10
Office equipment and furniture (in years)	10
Computer hardware (in years)	5

10

Vessels and other fixed assets, net consisted of the following as of June 30, 2019 and December 31, 2018:

	June 30, 2019			December 31, 2018			Estimated useful Life (in years)
Marine vessels	$	10,171,930		$	10,171,930			10
Furniture and equipment		203,290			189,848			10
Accumulated depreciation		(6,338,922	)		(5,910,872	)
Vessels and other fixed assets, net	$	4,036,298		$	4,450,906

Depreciation for the six months ended June 30, 2019 and June 30, 2018, was $428,048 and $458,680, respectively.

Note 8 - Income Taxes

We file income tax returns in various jurisdictions, as appropriate and required. The Company was 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 Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“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.

Note 9 – Fair Value Measurements

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

The carrying amount of cash, accounts receivable, accounts payable and accrued expenses, and convertible debt, 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. We do not use derivative instruments to moderate 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. We do not use derivative instruments to moderate 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.

11

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.

Note 10 – Revenue Recognition

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is 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. Companies may use either a full retrospective or a modified retrospective approach to adopt these ASUs. On January 1, 2018, the Company adopted ASU 2014-09, using the full retrospective method, which requires reporting entities to apply the standard as of the earliest period presented in their financial statements. The Company completed its review of its material revenue streams and determined that the adoption of Topic 606 did not have a material impact on the Company’s consolidated statements of operations and consolidated balance sheets.

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, (a) control of the goods (crude oil, gas oil and other petrochemical products) is passed to its customers and (b) the vessels charter (voyages and long term) service is rendered to its independent charterers or Petrogress Int’l LLC.

Note 11 - 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, 2019 and December 31, 2018, management is of the opinion that the Company had no significant concentrations of credit risk.

Note 12 – Officers compensations

During the six months ended June 30, 2019 and June 30, 2018, the Company had recorded officers’ compensation of $90,000 and $110,000, respectively. For the period ended June 30, 2019, $13,738 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, 2019.

Note 13 - Commitments and Contingencies

The Company is not a party to any litigation and, to its knowledge, no action, suit or proceeding has been threatened against the Company.

Note 14 – Shareholders

As of June 30, 2019, we had 48 shareholders of record and 3,874,808 shares of common stock issued and outstanding, the large majority of which were located in the United States and held an aggregate of 475,574 shares of our common stock, representing approximately 12% of our outstanding shares of common stock. However, one of the U.S. shareholders of record is Cede & Co., a nominee of The Depository Trust Company, which held 336,911 shares of our common stock, as of June 30, 2019. Accordingly, we believe that the shares held by Cede & Co. include shares of common stock beneficially owned by both holders in the United States and non-U.S. beneficial owners. We are not aware of any arrangements the operation of which may at a subsequent date result in our change of control.

12

Note 15 - Related party transactions

As of April 24, 2019, Petrogress, Inc., Petrogress Int’l LLC and Christos P. Traios agreed on an amendment to the Securities Purchase Agreement dated effective as of September 30, 2017, pursuant to which the Company purchased its interest in Petrogres Africa Co. Ltd. The amendment adjusts the aggregate purchase price to $900,000, which is to be paid to Mr. Traios on or before October 23, 2019. In the event that the purchase price is not paid in full by the payment date, any outstanding and unpaid amount of the purchase price is convertible at the option of Mr. Traios, in whole or in part, into shares of Common Stock at a conversion price equal to 65% of the lowest trading price during the last 10 trading days. Notwithstanding the foregoing, the conversion rights are capped at 3,500,000 shares of Common Stock (as such number may be equitably adjusted for stock splits, stock dividends, rights offerings, combinations, recapitalization, reclassifications, extraordinary distributions and similar events by Petrogress).

Note 16 - Loan facility from related party

On October 31, 2018, Christos P. Traios, notified the Company that he was terminating the Revolving Line of Credit Agreement dated July 13, 2017 (the “Credit Agreement”) pursuant to which Mr. Traios provided a revolving line of credit in the principal amount of up to $1,000,000 to the Company. As such, no further advances have been made under the Credit Agreement and existing advances in principal amount of $148,900 under the Line of Credit Note have become due upon the maturity date, July 13, 2019; however, the maturity date has been extended to July 13, 2020.

The table below presents the amounts due to Christos Traios during the six months ended June 30, 2019:

Amounts due to related party December 31, 2018	$	1,176,863
Wages accrued to Christos Traios		90,000
Wages paid to Christos Traios, in cash		(13,738	)
Amount due from Christos Traios		(7,286	)
Amounts due to related party June 30, 2019	$	1,245,839

Note 17 – Revenue Concentrations

The Company sells to commercial customers in foreign markets. The following is a summary of customers who accounted for more than ten percent (10%) of the Company’s revenues for the periods ended June 30, 2019 and 2018:

Customer	June 30, 2019			June 30, 2018
A		79	%		87	%
B		12	%		*

The following is a summary of customers who accounted for more than ten percent (10%) of the Company’s accounts receivable for the periods ended June 30, 2019 and December 31, 2018:

Customer	June 30, 2019			December 31, 2018
A		50	%		63	%
B		20	%		16	%

None of the balances listed in the table above has become overdue as of August 8, 2019. Amounts indicated with an * denote amounts less than 10%.

Note 18 – Additional Information

On April 19, 2019 one of our vessels (MT APECUS) was attacked by hijackers while she was at Bonny (Nigeria) anchorage, and 6 of our crew members kidnapped, taken ashore and held hostage for over 50 days. During the time the crew members were held hostage, the Nigerian local authorities did not provide adequate assistance to secure their release and we were forced to negotiate with the pirates. After lengthy negotiations, we were able to reduce the ransom from $3 million to $350,000 which was paid to secure the release of the kidnapped crew members on June 26, 2019. Nevertheless, a member of the team we hired to negotiate the release of our crew members was also taken and remains a hostage of the pirates. We are in the process of attempting to secure the remaining team member’s release, and expect that additional expense and/or ransom obligations will need to be paid to do so. In addition, during the sea-piracy incident we ordered one of our sister fleet vessels to proceed to and remain in the area to provide support to the attacked vessel and her remaining crew. Both our ships were left idle in the area for the entire period until the release of the abducted seafarers. The ransom paid is reflected as an expense in the accompanied consolidated statement of operations within the line item “Other income / (expense), net”. However, the company reserves the right to claim for a reimbursement through insurance and also to proceed with legal steps against the Government of Nigeria for damages occurred due to what we believe to be significant unlawful actions taken by the Nigerian Navy.

13

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

Executive Overview

Petrogress, Inc. operates as a holding company and conducts its business through its wholly-owned subsidiaries: Petronav Carriers LLC., which manages day-to-day operations of its beneficially-owned affiliated tanker fleet; and Petrogress Int’l LLC., which is a holding company for subsidiaries currently conducting business in Greece, Cyprus and Ghana.

Business Environment and Outlook

Petrogress, Inc. is an oil energy and sea transportation company with business activities in the following countries: Greece, Cyprus and Ghana. Our earnings currently depend primarily on the profitability of our crude oil sales. The biggest factor affecting the results of operations is the price and supply of crude oil. The price of crude oil has fallen significantly since mid-year 2018. The downturn in the price of crude oil has impacted the company's results of operations, cash flows, leverage, capital and exploratory investment program and production outlook. A sustained lower price environment could result in the impairment or write-off of specific assets in future periods. We have reacted to the downturn by effecting reductions in operating expenses, pacing and re-focusing of capital and exploratory expenditures. We anticipate that crude oil prices will increase in the future, as continued growth in demand and a reduction in supply growth should bring global markets into balance. However, the timing or sustainability of any such increase in prices is unknown. In the Company's downstream business, crude oil is the largest cost component of refined products. Nevertheless, it is our objective to deliver competitive results and shareholder value in any business environment.

Our midstream segment relies and depends on our crude oil sales contracts to keep our vessels employed. We rely primarily on the revenues generated from our business of physical supply of crude oil and marketing of refined products to our end customers.

The effective tax rate for our business is volatile. This is due to the level of earnings or losses during a particular period and whether they arise in higher or lower tax rate jurisdictions. As a result, a decline or increase in the effective tax rate in one period may not be indicative of expected results in future periods.

A principal focus of our strategy is to grow by expanding our business. Our future growth depends, in part, on our ability to obtain financing for our existing and new operations and business lines. In recent years, global financial markets have experienced volatility following contraction, deleveraging and reduced liquidity in the global credit markets. In addition, a number of major financial institutions have experienced serious financial difficulties and, in some cases, have entered into bankruptcy proceedings or are subject to regulatory enforcement actions. These difficulties have been compounded by a general decline in the willingness by banks and other financial institutions to extend credit and may adversely affect the financial institutions that may provide us with credit to support our working capital requirements. These economic factors may have a material adverse effect on our ability to expand our business.

The company closely monitors developments in the financial and credit markets, the level of worldwide economic activity, and the implications for the company of movements in prices for crude oil and refined products. Management takes these developments into account in the conduct of daily operations and for business planning.

The following are descriptions of our recent initiatives undertaken in each of our key business segments:

Upstream: The Company through its affiliate in Ghana is under negotiations to conclude a Petroleum Agreement with Ghana National Petroleum Company (GNPC) for a long-term lease of the Salt-Pond oil field and to take over management of the oil rig-platform known as “Mr. Louie” and to conduct necessary repairs and maintenance to facilitate oil production in the area.

Downstream: On February 28, 2018, our wholly owned subsidiary, Petrogres Co. Limited entered into the Platon Partnership Agreement creating an equal partnership between Petrogres Co. Limited and Platon Gas Oil Ghana Limited (“PGO”), an unrelated third party which owns an oil refinery and serves as a refiner of crude oil and various petroleum products based in Ghana. The Platon Partnership Agreement is intended to be renewed by both Petrogres Co. Limited and PGO on an annual basis and pursuant its terms. Petrogres Co. Limited will feed and supply the crude oil for storage, refinement, marketing and distribution in Ghana jointly with PGO. The storage capacity under the Platon Partnership Agreement is 24,000 tons and the monthly processing capacity of the refinery is 10,000 tons. Petrogres Co. Limited and PGO both plans to invest additional funds to upgrade the processing monthly capacity into refined products of Gas Oil, Naphtha, and fuel in view of the high local demand. Under the Platon Partnership Agreement, all expenses of the partnership operations are shared by both Petrogres Co. Limited and PGO. After deducting the operating expenses, the net profits from the sale of the petroleum products are split evenly between Petrogres Co. Limited and PGO. As of the date the Platon Partnership Agreement was executed, PGL ceased other sales of crude to third customers in West Africa.

Midstream: We seek to expand our midstream operations in other international ocean routes by adding to our fleet larger and younger tanker vessels. We are monitoring the vessel market for opportunities while we are also working to secure the necessary funding for expansion. Our business strategy is based in part upon the expansion of our business to new, or within existing, markets. In order to fund future vessel acquisitions, expansion into new and existing markets and products, increased working capital levels, or capital expenditures, we will be required to use cash from operations, incur borrowings or raise capital through the sale of debt or equity securities in the public or private markets.

14

Other Business 

On March 6, 2019, we entered into an Exclusive Distribution Agreement with Dana Lubricants Factory LLC. (“Dana Lubes”), a United Arab Emirates based lubricant oil manufacturer, pursuant to which, Petrogress Int’l LLC. is designated as the exclusive agent for distribution of products manufactured and branded by Dana Lubes throughout western Africa.

Throughout our history, we have expanded our business capabilities through strategic alliances, select business and vessel acquisitions, and the establishment of new service centers. In February 2019, we commenced negotiations with the government of Ghana to lease a free zone land in Takoradi port to build a tanks farm with storage capacity of 100,000 cubic meters. We are also negotiating the lease of Ada shipyard where we can provide shelter and repair facilities for our fleet and third-party customers, and provide additional service and support to offshore oil rigs and platforms around the area of West Africa.

In addition to our operations described above, we commenced the marketing and distribution of lubricants under the exclusivity Agreement with Dana Lubricants Company (a company based in Dubai – UAE), which we market through our subsidiary in Ghana Petrogres Africa Co. Ltd. We view this business as complementary to our downstream operations. We plan to expand the distribution of lubricants throughout our service centers and other countries in West and Central Africa.

Results of Operations

Comparison of Three Months Ended June 30, 2019 and 2018

Total revenues for the three months ended June 30, 2019, decreased by $1,857,890 or approximately 82%. The decrease in sales revenue for the three months ended June 30, 2019 resulted primarily because of reduced production of crude oil by our suppliers due to low prices and in addition, due to the fact that two of our vessels remained inoperative for a substantial period since the hijacking incident as described in Note 18 in our Notes to Consolidated Financial Statements included in this Report. However, inventories as at June 30, 2019 and 2018 were $981,063 and $182,108, respectively, an increase of $798,955 or approximately 438%. The following table summarizes revenues derived during the three months ended June 30, 2019 and 2018 from our business activities.  

Key Financial Results	Three Months Ended June 30,
	2019		2018
Revenues from crude oil sales	$	-	$	1,698,900
Revenues from gas oil sales		300,000		406,500
Revenues from freights and hires		104,000		-
Other Revenues		-		156,490
Total Revenues	$	404,000	$	2,261,890

Directly related to our sales activity and volumes, we experienced the following cost of sales amounts for the three months ended June 30, 2019 and 2018: 

	Three Months Ended June 30,
	2019		2018
Crude oil purchase cost	$	-	$	896,994
Gas oil purchase cost		240,000		294,000
Lubricants purchase cost		41,202		-
Shipping expenses		-		91,530
Total cost of goods sold	$	281,202	$	1,282,524

General and administrative expenses for the three months ended June 30, 2019 and 2018 were $126,487 and $149,077, respectively.

For the three months ended June 30, 2019, the Company experienced net loss of $1,015,239 compared to net income of $237,262 for the three months ended June 30, 2018.

15

Comparison of Six Months Ended June 30, 2019 and 2018

Total revenues for the six months ended June 30, 2019, decreased by $2,300,476 or approximately 48%.

Key Financial Results	Six Months Ended June 30,
	2019		2018
Revenues from crude oil sales	$	1,917,178	$	3,872,164
Revenues from gas oil sales		300,000		738,500
Revenues from freights and hires		298,500		-
Other Revenues		11,000		216,490
Total Revenues	$	2,526,678	$	4,827,154

Directly related to our sales activity and volumes, we experienced the following cost of sales amounts for the six months ended June 30, 2019 and 2018: 

	Six Months Ended June 30,
	2019		2018
Crude oil purchase cost	$	1,165,752	$	2,263,215
Gas oil purchase cost		240,000		294,000
Lubricants purchase cost		41,202		-
Shipping expenses		-		131,846
Total cost of goods sold	$	1,446,954	$	2,689,061

General and administrative expenses for the six months ended June 30, 2019 and 2018 were $318,514 and $426,891, respectively.

For the six months ended June 30, 2019, the Company experienced net loss of $869,980 compared to net income of $351,106 for the six months ended June 30, 2018.

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 allowances constitutes a significant estimate.

As of June 30, 2019 and December 31, 2018, allowances for doubtful accounts were $344,466 and $344,466, respectively.

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.

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.

As of June 30, 2019 and June 30, 2018, the basic weighted average number of shares of Common Stock of the Company was 3,842,916 and 3,373,163, respectively. Since the Company has a net loss for both periods there is no dilutive effect for those specific periods.

As of June 30, 2019, and June 30, 2018, the Company has 85,944 and 85,944 shares of Common Stock, respectively, which could be deemed to be dilutive and are excluded from the calculation since their effect would be antidilutive.

16

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, including ASU 2018/17 amendments. 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.

Effects of Recent Accounting Pronouncements not yet adopted

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This standard affects the accounting for equity instruments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. In February 2018, the FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities”. This update was issued to clarify certain narrow aspects of guidance concerning the recognition of financial assets and liabilities established in ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This includes an amendment to clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issued. The update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years beginning after June 15, 2019. We adopted this guidance effective January 1, 2019, as required. We do not expect this guidance to have a significant impact on how we measure financial instruments. We are evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). In January 2018, the FASB issued ASU 2018-01, which provides additional implementation guidance on the previously issued ASU 2016-02. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The management of the Company has evaluated the impact on the consolidated financial statements which was found to be immaterial.

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” These amendments clarify the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The amendments should be applied prospectively as of the beginning of the period of adoption. We do not consider early adoption and are also assessing the impact that this standard will have on our consolidated financial statements. 

Off Balance Sheet Arrangements

As of June 30, 2019, we did not have any material off-balance sheet arrangements.

Liquidity and Capital Resources

At June 30, 2019 and December 31, 2018, the Company had cash and cash equivalents of $659,387 and $661,010, with corresponding working capital of $5,277,626 and $5,570,494, 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. Petrogress, Inc. depends on its subsidiaries incomes, inasmuch as the Company's principal sources of cash are net cash provided from operating subsidiaries activities, which includes the sale and shipment of petroleum products, and cash contributed to the Company by Christos Traios, our President, Chief Executive Officer and controlling stockholder.

17

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 the issuance of debt. If the Company is successful in completing equity financing, existing stockholders will experience dilution of their interest in our Company. However, the Management cannot provide investors with any assurance that the Company will be able to raise sufficient funding from the sale of our common stock or a debt finance on acceptable terms to fund our plans to expand the Company's operations.

Critical Accounting Policies

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“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 the notes accompanying our consolidated financial statements included with this report. 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 Rule 12b-2 of the Exchange Act 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 Chief Executive Officer and Evangelos Makris, our Chief Financial 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, 2019, 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, 2019 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 and principal financial 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 two executive officers dealing with general administrative and financial matters. This constitutes a significant deficiency in the internal controls. Management has decided that considering the officer(s) 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, 2019 that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

18

Part II - Other Information

Item 1 - Legal Proceedings

None.

Item 1A - Risk Factors

We are a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act, and are not required to provide the information under this item.

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

None

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
10.1	Agreement and Plan of Merger dated April 1, 2019 between Petrogress Int’l LLC and Petrogres Co. Limited (Incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q as filed with the Commission on May 15, 2019)
10.2	Securities Purchase Agreement dated effective as of September 30, 2017 between Christos P. Traios and Petrogress Int’l LLC (Incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K as filed with the Commission on November 2, 2017)
10.3	Amendment to Securities Purchase Agreement dated effective as of April 24, 2019 among Christos P. Traios, Petrogress, Inc., and Petrogress Int’l LLC (Incorporated herein by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q as filed with the Commission on May 15, 2019)
10.4	Revolving Line of Credit Agreement dated July 13, 2017 made by Petrogress, Inc. and Christos P. Traios (Incorporated herein by reference to Exhibit 99.01 to the Company’s Current Report on Form 8-K as filed with the Commission on July 21, 2017)
10.5	Revolving Line of Credit Note dated July 13, 2017 between Petrogress, Inc. in favor of Christos P. Traios (Incorporated herein by reference to Exhibit 99.02 to the Company’s Current Report on Form 8-K as filed with the Commission on July 21, 2017)
10.6	Letter Agreement dated July 12, 2019 between Petrogress, Inc. and Christos P. Traios regarding Extension of Maturity Date of Revolving Line of Credit Agreement*
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

19

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 13, 2019	Petrogress, Inc.
	By:	/s/ Christos P. Traios
		Christos P. Traios
		President and Chief Executive Officer (Principal Executive Officer)

By:	/s/ Evangelos Makris
	Evangelos Makris
	Chief Financial Officer (Principal Financial and Accounting Officer)

20

Exhibit Index

Exhibit	Description
10.1	Agreement and Plan of Merger dated April 1, 2019 between Petrogress Int’l LLC and Petrogres Co. Limited (Incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q as filed with the Commission on May 15, 2019)
10.2	Securities Purchase Agreement dated effective as of September 30, 2017 between Christos P. Traios and Petrogress Int’l LLC (Incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K as filed with the Commission on November 2, 2017)
10.3	Amendment to Securities Purchase Agreement dated effective as of April 24, 2019 among Christos P. Traios, Petrogress, Inc., and Petrogress Int’l LLC (Incorporated herein by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q as filed with the Commission on May 15, 2019)
10.4	Revolving Line of Credit Agreement dated July 13, 2017 made by Petrogress, Inc. and Christos P. Traios (Incorporated herein by reference to Exhibit 99.01 to the Company’s Current Report on Form 8-K as filed with the Commission on July 21, 2017)
10.5	Revolving Line of Credit Note dated July 13, 2017 between Petrogress, Inc. in favor of Christos P. Traios (Incorporated herein by reference to Exhibit 99.02 to the Company’s Current Report on Form 8-K as filed with the Commission on July 21, 2017)
10.6	Letter Agreement dated July 12, 2019 between Petrogress, Inc. and Christos P. Traios regarding Extension of Maturity Date of Revolving Line of Credit Agreement*
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

21

EX-10.6

Exhibit 10.6

Christos P. Traios

10, Sp. Trikoupi Street

18538 Piraeus – Greece

Date: July 12, 2019

Petrogress, Inc.

1013 Centre Rd, Suite 403-A

Wilmington, DE 19805

Re:     Extension of Maturity Date of Revolving Line of Credit Agreement

==

Please be advised that the undersigned hereby extends the maturity date of that certain Revolving Line of Credit Agreement dated July 13, 2017 (the “Credit Agreement”) pursuant to which the undersigned provided a revolving line of credit in the principal amount of up to $1,000,000 to Petrogress, Inc. (the “Company”). Consequently, the date hereof July 13, 2020 shall be the final Maturity Date of the Line of Credit Note.

Sincerely,

Christos P. Traios

AGREED AND ACKNOWLEDGED:

Petrogress, Inc.

By: /s/ Christos P. Traios

       President and Chief Executive officer

EX-31.1

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 any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4)	The registrant’s other certifying officer(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 13, 2019	Petrogress, Inc.
	By:	/s/ Christos P. Traios
		Christos P. Traios
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Evangelos Makris, 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)	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 13, 2019	Petrogress, Inc.
	By:	/s/ Evangelos Makris
		Evangelos Makris
		Chief Financial Officer

EX-32.1

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, 2019 (the “Report”), I, Christos P. Traios, Chief 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

Chief Executive Officer

August 13, 2019

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

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, 2019 (the “Report”), I, Evangelos Makris, Chief 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/ Evangelos Makris      

Evangelos Makris

Chief Financial Officer

August 13, 2019

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.

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 13, 2019
Document Information [Line Items]
Entity Registrant Name	Petrogress, Inc.
Entity Central Index Key	0001558465
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		3,874,808
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues	$ 404,000	$ 2,261,890	$ 2,526,678	$ 4,827,154
Costs of goods sold	(281,202)	(1,282,524)	(1,446,954)	(2,689,061)
Gross profit	122,798	979,366	1,079,724	2,138,093
Operating expenses:
Corporate expenses	(78,548)	(98,644)	(83,611)	(398,782)
Operating expenses of commodities trade	(85,805)	(35,408)	(178,931)	(179,510)
Fleet operating expenses	(122,399)	(67,946)	(380,118)	(187,343)
General and administrative expenses	(126,487)	(149,077)	(318,514)	(426,891)
Amortization expense			(6,687)
Depreciation expense	(230,768)	(231,061)	(428,048)	(458,680)
Total operating expenses	(644,007)	(582,136)	(1,395,909)	(1,651,206)
Operating income/ (loss) before other expenses and income taxes	(521,209)	397,230	(316,185)	486,887
Other income/ (expense), net:
Interest and finance expenses	(3,130)		(15,493)	(1,427)
Loss on settlement of loan facility from related party		(160,192)		(160,192)
Other income / (expense), net	(490,900)	224	(538,302)	(134,354)
Total other income/ (expense), net	(494,030)	(159,968)	(553,795)	(135,781)
Income before income taxes	(1,015,239)	237,262	(869,980)	351,106
Income tax expense
Net income/ (loss)	(1,015,239)	237,262	(861,980)	351,106
Net income/ (loss) attributable to:
Shareholders of the company	(1,011,590)	228,510	(861,098)	351,106
Non-controlling interests	(3,649)	8,752	(8,882)	2,117
Net income	(1,015,239)	237,262	(861,980)	351,106
Other comprehensive income/ (loss)
Foreign currency translation adjustment
Comprehensive income/ (loss)	(1,015,239)	237,262	(869,980)	351,106
Shareholders of the company	(1,011,590)	228,510	(861,098)	348,989
Non-controlling interests	(3,649)	8,752	(8,882)	2,117
	$ (1,015,239)	$ 237,262	$ (869,980)	$ 351,106
Weighted average number of shares of Common Stock:
Basic (in shares)	3,857,162	3,446,279	3,842,916	3,373,163
Diluted (in shares)	3,857,162	4,425,595	3,842,916	4,352,479
Basic earnings per share (in dollars per share)	$ (0.26)	$ 0.07	$ (0.22)	$ 0.10
Diluted earnings per share (in dollars per share)	$ (0.26)	$ 0.05	$ (0.22)	$ 0.08

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 659,387	$ 661,010
Accounts receivable, net	4,178,058	4,779,432
Claims receivable, net	551,600	547,600
Inventories	896,004	279,196
Prepaid expenses and other current assets	1,519,480	1,765,276
Total current assets	7,889,588	8,170,453
Non-Current Assets
Goodwill	900,000	900,000
Vessels and other fixed assets, net	4,036,298	4,450,906
Deferred charges, net	20,062	26,750
Security deposit	10,584	10,638
Total non-current assets	4,966,944	5,388,294
Total Assets	12,856,532	13,558,747
Current Liabilities
Accounts payable and accrued expenses	1,205,499	1,265,452
Due to related party	1,245,839	1,176,863
Loan facility from related party	148,900	148,900
Accrued Interest	11,724	8,744
Total current liabilities	2,611,962	2,599,959
Total liabilities	2,611,962	2,599,959
Commitments and Contingencies
Shareholders' equity:
Preferred stock, value
Shares of Common stock, $0.001 par value, 19,000,000 shares authorized, 3,874,808 and 3,828,412 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively	3,875	3,829
Additional paid-in capital	9,682,877	9,535,161
Accumulated comprehensive loss	(10,231)	(10,231)
Retained earnings	454,772	1,315,870
Equity attributable to Shareholders of the Company	10,141,293	10,854,629
Non-controlling interests	103,277	104,159
Total liabilities and shareholders' equity	12,856,532	13,558,747
Series A Preferred Stock [Member]
Shareholders' equity:
Preferred stock, value	$ 10,000	$ 10,000

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	999,900	999,900
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)	3,874,808	3,828,412
Common stock, shares outstanding (in shares)	3,874,808	3,828,412
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

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/ (loss)	$ (861,980)	$ 351,106
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	428,048	458,680
Change in Fair value of share-based payments issued for services		153,178
Share-based compensation expense		1,496
Gain/ (loss) on settlement of convertible promissory notes	46	(12,835)
Loss on settlement of loan facility from related party		160,192
Changes in working capital:
- (Increase)/ decrease in Accounts receivable, net	601,374	(780,048)
- (Increase) in Claims receivable, net	(4,000)
- (Increase) in Inventories	(563,928)	(10,608)
- (Increase)/ decrease in Prepaid expenses and other current assets	245,796	(646,833)
- (Increase)/ decrease in Security deposit	54
- Decrease in Deferred charges, net	6,688
- Increase/ (decrease) in Accounts payable and accrued expenses	87,763	(356,563)
- Increase/ (decrease) in Amounts due to related party	68,976	98,969
- Increase/ (decrease) in Accrued Interest	2,980	3,196
Net cash provided by/ (used in) operating activities	11,817	(580,070)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property plant and equipment	(13,440)	(88,154)
Net cash (used in) investing activities	(13,440)	(88,154)
Proceeds from loan facility from related party		74,000
Net cash provided by financing activities		74,000
Effect of exchange rate changes on cash
Net (decrease) in cash and cash equivalents	(1,623)	(594,224)
Cash and cash equivalents, Beginning of Period	661,010	1,150,999
Cash and cash equivalents, End of Period	659,387	556,775
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	21	297,500
Common stock issued for settlement of services	$ 25	$ 210,000

XML

Consolidated Statement of Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balances (in shares) at Dec. 31, 2017	100	3,177,452
Balances at Dec. 31, 2017	$ 10,000	$ 3,098	$ 9,100,838	$ (7,744)	$ 1,008,823	$ 10,115,015	$ 98,758	$ 10,213,773
Common stock issued for convertible notes (in shares)		76,614
Common stock issued for convertible notes		$ 77	209,923			210,000		210,000
Common stock issued to settle liabilities (in shares)		190,705
Common stock issued to settle liabilities		$ 191	457,501			457,692		457,692
Cancellation of common stock issued for services			(146,767)			(146,767)		(146,767)
Common stock issued for board advisory services (in shares)		800
Common stock issued for board advisory services		$ 80	1,416			1,496		1,496
Net income					348,989	348,989	2,117	351,106
Balances (in shares) at Jun. 30, 2018	100	3,446,877
Balances at Jun. 30, 2018	$ 10,000	$ 3,447	9,622,910	(7,744)	1,357,812	10,986,425	100,875	11,087,300
Balances (in shares) at Dec. 31, 2018	100	3,828,412
Balances at Dec. 31, 2018	$ 10,000	$ 3,829	9,535,161	(10,231)	1,315,870	10,854,629	104,159	10,958,788
Common stock issued to settle liabilities (in shares)		21,396
Common stock issued to settle liabilities		$ 21	41,836			41,857		41,857
Common stock issued for board advisory services (in shares)		25,000
Common stock issued for board advisory services		$ 25	47,475			47,500		47,500
Net income					(861,098)	(843,094)	(8,882)	(861,098)
Elimination of Petrogress Africa Ltd apic/due from shareholders			58,405			58,405	8,000	66,405
Balances (in shares) at Jun. 30, 2019	100	3,874,808
Balances at Jun. 30, 2019	$ 10,000	$ 3,875	$ 9,682,877	$ (10,231)	$ 454,772	$ 10,141,293	$ 103,277	$ 10,244,570

XML

Note 1 - The Company and Our Subsidiaries

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note

1

–

The Company and our Subsidiaries

History and Development of the Company

Petrogress, Inc. was incorporated on

February 10, 2010

under the laws of the State of Florida as

800

Commerce, Inc. (

"800

Commerce"). 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 and founder, Christos Traios. Under the terms of the SEA,

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.

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.

On

March 9, 2016,

our Board of Directors approved an amendment to our Articles of Incorporation to change the Company’s name to Petrogress, Inc. On

March 15, 2016,

Mr. Traios was appointed Chief Executive Officer. On

November 16, 2016,

Petrogress, Inc. 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.

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 as a result of the Amendment.

We maintain our principal marketing and operating offices at

1,

Akti Xaveriou,

18538

Piraeus, Greece. Our telephone number at that address is +

30

(

210

)

459

-

9741

and our corporate address and registered agent in Delaware is

1013

Centre Road, Suite

403

-A, Wilmington, DE

19805

- USA.

Business Overview

Petrogress operates as a holding company and we conduct business primarily through our wholly-owned subsidiaries:

Petronav Carriers LLC

.

, which manages day-to-day operations of our affiliated tanker fleet;

Petrogress Int’l LLC

.

, which engages in crude-oil purchase and sales and is the holding company of the subsidiaries that currently conducting business in Greece, Cyprus and Ghana.

Our business operates in the downstream and midstream sectors of the energy industry, where we acquire and supply crude oil, and engage in the refining and marketing of refined products and lubricants. As a supplier, we procure crude oil from our direct sources and deliver by our tankers fleet to buyers’ destinations. With service centers in East Mediterranean and West Africa, we believe that we are

one

of a limited number of independent physical suppliers that owns and operates a fleet of supplying vessels and conducts physical supply operations in multiple jurisdictions.

We provide our customers with services that require sophisticated logistical operations designed to meet their strict oil quality and delivery scheduling needs. We believe that our extensive experience and management systems allow us to meet our customers' specific requirements when they purchase and take delivery of crude oil, refined products and lubricants around the areas in which we operate. This, together with the capital-intensive nature of our industry and the limited available shuttle vessels in the areas of our operation, represent a significant barrier to entry for competitors. We have devoted our efforts to building a global brand and believe that our customers recognize our brand as representing high quality service and products at each of our locations. We also perform our technical ship operations in-house, which helps us maintain high levels of customer service.

Throughout our history, we have expanded our business capabilities through strategic alliances, select business and vessel acquisitions, and the establishment of new service centers. In

February 2019,

we commenced negotiations with government of Ghana to lease a free zone land in Takoradi port to build a tanks farm with storage capacity of

100,000

cubic meters. We are also negotiating the lease of Ada shipyard where we expect to provide shelter and repairs facilities to our fleet and customers, and provide additional service and support to offshore oil rigs and platforms around the area of West Africa. Furthermore, we are in the market seeking to add more tankers ships to our fleet.

In addition to our operations described above, we commenced the marketing and distribution of lubricants under an

exclusive a

greement

with Dana Lubricants Company (a company based in Dubai of UAE), which we market through our subsidiary Petrogres Africa Co. Ltd. We view this business as complementary to our downstream operations. We plan to expand the distribution of lubricants throughout our service center in Ghana and other countries in West and Central Africa.

Sales and Marketing

Most of our marketing, sales, ship-management and other related functions are performed at our main office in Piraeus, Greece. We also market products and services through our offices in Ghana and Cyprus and through our representations in Nigeria. Our sales force interacts with our established customers and markets our oil sales and services to local distributors. We believe our level of customer service, years of experience in the industry, and reputation for reliability are significant factors in retaining our customers and attracting new customers. Our sales and marketing approach are designed to create awareness of the benefits and advantages of our sales and services. We are active in industry trade shows and other available public forums.

Description

of Significant Subsidiaries

Petronav Carriers LLC

.

(“

PCL

”), was formed in Delaware in

March 2016

for the purpose of managing the day-to-day operations of

four

vessels, which are used to transport petroleum products to various countries in West Africa. PCL manages our fleet from its business office at Piraeus, Greece.

Currently PCL owns our vessels through separate wholly-owned subsidiaries described below:

Vessel-Owned Subsidiary	Incorporation	Vessel’s name
Shiba ship-management Ltd.	Marshall Islands	APECUS
Danae Marine Ltd.	Marshall Islands	OPTIMUS
Invictus Marine S.A.	Marshall Islands	INVICTUS
Entus Marine Ltd.	Marshall Islands	ENTUS

Petrogress Int’l LLC

.

(“

PIL

”), is a Delaware limited liability company, acquired by the Company in

September 2017.

PIL serves as a holding company for interests in various entities conducting business across the world, including Cyprus, the Middle East, and West Africa as an oil energy corporation.

In

September 2017,

PIL acquired

90%

of the shares of Petrogres Africa Company Limited (“Petrogres Africa Co. Ltd”) from Christos Traios, our President, Chief Executive Officer. Petrogres Africa Co. Ltd holds a current Ghanaian Oil business permit, and is authorized to conduct local sales of oil products and operations of a shipping business from the Port of Tema in Greater Accra. Port facilities in Tema provide a service and operations hub for our 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. 

On

April 1, 2019,

Petrogress Int’l LLC. and Petrogres Co. Limited entered into a merger agreement pursuant to which Petrogres Co. Limited, a wholly owned subsidiary of Petrogress, merged with and into PIL, the surviving company. The merger became effective as of

April 1, 2019.

XML

Note 2 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Significant Accounting Policies [Text Block]

Note

2

–

Summary of Significant Accounting

Policies

Basis of Presentation

The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles (“GAAP”) and has elected a year-end of

December 31.

All significant intercompany transactions and accounts have been eliminated.

These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do

not

include all of the information and disclosures required by GAAP for complete financial statements.

These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form

10

-K for the year ended

December 31, 2018

as filed with the SEC on

April 12, 2019.

The results of operations for the

three

and

six

months ended

June 30, 2019

are

not

necessarily indicative of the results to be expected for the full year or any future interim period.

Principles of consolidation

The consolidated financial statements include the consolidated accounts of the Company and our wholly-owned and majority-owned subsidiaries: Petrogress Int’l LLC., Petronav Carriers LLC., Petrogres Africa Co. Ltd. and PG Cypyard & Offshore Services Terminal Ltd.

Percentages Participation in subsidiaries

Company	Participation
Petrogress Int’l LLC. (Delaware)	100% (owned by the corporation)
Petronav Carriers LLC. (Marshall Islands)	100% (owned by the corporation)
Petrogres Africa Co. Ltd. (Ghanaian)	90% (owned by Petrogress Int’l LLC.)
PG CYPYARD & Offshore Services Terminal Ltd.	100% (owned by Petrogress Int’l LLC.)

Non-controlling interests

Ownership interests in the Company’s subsidiaries held by parties other than the Company are presented separately from the Company’s equity on the Consolidated Balance Sheet. The amount of consolidated net income attributable to the Company and the non-controlling interests are both presented on the face of the Consolidated Statement of Income.

Emerging Growth Company

We qualify as an “emerging growth company” under the Jumpstart Our Business Startups Act of

2012,

or “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.

Use of Estimates

The preparation of financial statements in conformity with 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.

XML

Note 3 - Information Relating to the Consolidated Statement of Cash Flows

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

Note

3

– Information relating to the Consolidated Statement of cash flows

	Six Months Ended
	June 30
	2019			2018
(Increase)/ decrease in Accounts receivable, net	$	601,374		$	(780,048	)
(Increase) in Claims receivable, net		(4,000	)		-
(Increase) in Inventories		(563,928	)		(10,608	)
(Increase)/ decrease in Prepaid expenses and other assets		245,796			(646,833	)
Increase/ (decrease) in Accounts payable and accrued expenses		87,763			(356,563	)
Increase in Amounts due to related party		68,976			98,969
Increase in Accrued interest		2,980			3,196
Decrease in Security deposit		54			-
Decrease in Deferred charges, net		6,688			-
Net increase in operating capital	$	445,703		$	(1,691,887	)

Net repayment (borrowing) of loans by equity affiliates consisted of the following gross amounts:

	Six Months Ended
	June 30
	2019		2018
Borrowing of loans by equity affiliates	$	-	$	-
Repayment of loans by equity affiliates		-		63,000
Net repayment of loans by equity affiliates	$	-	$	63,000

XML

Note 4 - Summarized Financial Data - Petrogress, Inc.

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Summarized Financial Data [Text Block]

Note

4

– Summarized Financial Data – Petrogress, Inc.

Petrogress, Inc

.

The management and operation of our business is performed directly and independently by each subsidiary. Assets, inventories, partnership interests, joint venture interests and contracts are held by the subsidiaries. Petrogress, Inc., the parent company, does

not

have revenues while it suffers all the necessary operating and general and administrative expenses in order to comply with the regulatory requirements of the SEC.

The summarized financial information for the Company and its consolidated subsidiaries as of

June 30, 2019

and

2018

are presented in the below tables:

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	-		$	-
Cost and other expenses		(254,038	)		(550,793	)
Net (loss) to PGI	$	(254,038	)	$	(550,793	)

	Six Months Ended
	June 30
	2019			2018
Current assets	$	176,993		$	29,935
Other assets		7,775			45,075
Current liabilities		(1,219,369	)		(697,772	)
Total Petrogress, Inc. net equity	$	(1,034,601	)	$	(622,762	)

Petronav Carriers LLC

Petrogress, Inc. owns

100%

of the equity interest in Petronav Carriers LLC, the company that serves as the manager and operator of our tanker fleet of

four

vessels wholly-owned by its

four

subsidiaries. Summarized financial information is presented in the following table:

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	528,333		$	1,796,227
Cost and other expenses*		(1,674,142	)		(1,053,180	)
Net income/ (loss) to Petronav Carriers LLC **	$	(1,145,809	)	$	743,047

______________

* Cost and other expenses include the ransom paid as well as all expenses related to the hijacking of

one

of our vessels.

**

100%

Net income attributable to Petrogress Inc.

Petrogress Int’l LLC

Petrogress, Inc. owns

100%

of the equity interest in Petrogress Int’l LLC, the company which serves as a holding company for conducting business across the world through its affiliates and subsidiaries. Summarized financial information is presented in the following table:

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	2,139,178		$	-
Cost and other expenses		(2,179,311	)		(4,150	)
Net income/ (loss) to Petrogress Int’l LLC *	$	40,133		$	(4,150	)

______________

*

100%

Net income attributable to Petrogress, Inc.

Petrogress Africa Co. Ltd.

Petrogress Int’l LLC owns

90%

of the equity interest in Petrogres Africa Co. Ltd, the company that holds a Ghanaian permit and is authorized to conduct local sales of oil trade and servicing as a ship agent within Ghana ports. Summarized financial information is presented in the following table:

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	330,000		$	442,795
Cost and other expenses		(418,820	)		(421,627	)
Net income/ (loss ) to Petrogres Africa Co. Ltd *	$	(88,820	)	$	21,168

______________

*

90%

Net income attributable to Petrogress Int’l LLC

XML

Note 5 - Inventories

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

Note

5

– Inventories

Crude oil, Gas oil and bunkers onboard our vessels are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of items, spare-parts, consumable goods and equipment supplied to our vessel which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate.

Goods Inventories	June 30, 2019		December 31, 2018
Crude Oil	$	-	$	279,196
Gas Oil		810,000		-
Lubricants		86,004		-
Total Inventories	$	896,004	$	279,196

XML

Note 6 - Properties, Vessels, Inventories & Equipment

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Properties, Vessels, Inventories & Equipment [Text Block]

Note

6

– Properties, Vessels, inventories & equipment

	June 30, 2019		December 31, 2018
Vessel’s value, at historical cost	$	3,940,745	$	4,354,147
Bunkers R.O.B.		85,059		137,939
Equipment, Machineries, Fenders, Vehicles & Trucks		95,554		96,759
Total	$	4,121,358	$	4,588,845

XML

Note 7 - Vessels and Other Fixed Assets, Net

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

7

– Vessels and other fixed assets, net

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 or its affiliate. 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:

Tanker Vessels (in years)	10
Supply boats (in years)	10
Fenders (in years)	10
Oil hoses (in years)	10
Vehicles & trucks (in years)	10
Office equipment and furniture (in years)	10
Computer hardware (in years)	5

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

June 30, 2019

and

December 31, 2018:

	June 30, 2019			December 31, 2018			Estimated useful Life (in years)
Marine vessels	$	10,171,930		$	10,171,930			10
Furniture and equipment		203,290			189,848			10
Accumulated depreciation		(6,338,922	)		(5,910,872	)
Vessels and other fixed assets, net	$	4,036,298		$	4,450,906

Depreciation for the

six

months ended

June 30, 2019

and

June 30, 2018,

was

$428,048

and

$458,680,

respectively.

XML

Note 8 - Income Taxes

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

8

- Income Taxes

We file income tax returns in various jurisdictions, as appropriate and required. The Company was

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 Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“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.

XML

Note 9 - Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

Note

9

– Fair Value Measurements

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

The carrying amount of cash, accounts receivable, accounts payable and accrued expenses, and convertible debt, 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. We do

not

use derivative instruments to moderate 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. We do

not

use derivative instruments to moderate 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.

XML

Note 10 - Revenue Recognition

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note

10

– Revenue Recognition

In

May 2014,

the FASB issued Accounting Standards Update (“ASU”)

2014

-

09,

Revenue from Contracts with Customers (Topic

606

). This ASU is 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. Companies

may

use either a full retrospective or a modified retrospective approach to adopt these ASUs. On

January 1, 2018,

the Company adopted ASU

2014

-

09,

using the full retrospective method, which requires reporting entities to apply the standard as of the earliest period presented in their financial statements. The Company completed its review of its material revenue streams and determined that the adoption of Topic

606

did

not

have a material impact on the Company’s consolidated statements of operations and consolidated balance sheets.

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, (a) control of the goods (crude oil, gas oil and other petrochemical products) is passed to its customers and (b) the vessels charter (voyages and long term) service is rendered to its independent charterers or Petrogress Int’l LLC.

XML

Note 11 - Concentrations of Credit Risk

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

11

- 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, 2019

and

December 31, 2018,

management is of the opinion that the Company had

no

significant concentrations of credit risk.

XML

Note 12 - Officers Compensations

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Compensation Related Costs, General [Text Block]

Note

12

– Officers compensations

During the

six

months ended

June 30, 2019

and

June 30, 2018,

the Company had recorded officers’ compensation of

$90,000

and

$110,000,

respectively. For the period ended

June 30, 2019,

$13,738

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, 2019.

XML

Note 13 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note

13

- Commitments and Contingencies

The Company is

not

a party to any litigation and, to its knowledge,

no

action, suit or proceeding has been threatened against the Company.

XML

Note 14 - Shareholders

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note

14

– Shareholders

As of

June 30, 2019,

we had

48

shareholders of record and

3,874,808

shares of common stock issued and outstanding, the large majority of which were located in the United States and held an aggregate of

475,574

shares of our common stock, representing approximately

12%

of our outstanding shares of common stock. However,

one

of the U.S. shareholders of record is Cede & Co., a nominee of The Depository Trust Company, which held

336,911

shares of our common stock, as of

June 30, 2019.

Accordingly, we believe that the shares held by Cede & Co. include shares of common stock beneficially owned by both holders in the United States and non-U.S. beneficial owners. We are

not

aware of any arrangements the operation of which

may

at a subsequent date result in our change of control.

XML

Note 15 - Related Party Transactions

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note

15

- Related party transactions

As of

April 24, 2019,

Petrogress, Inc., Petrogress Int’l LLC and Christos P. Traios agreed on an amendment to the Securities Purchase Agreement dated effective as of

September 30, 2017,

pursuant to which the Company purchased its interest in Petrogres Africa Co. Ltd. The amendment adjusts the aggregate purchase price to

$900,000,

which is to be paid to Mr. Traios on or before

October 23, 2019.

In the event that the purchase price is

not

paid in full by the payment date, any outstanding and unpaid amount of the purchase price is convertible at the option of Mr. Traios, in whole or in part, into shares of Common Stock at a conversion price equal to

65%

of the lowest trading price during the last

10

trading days. Notwithstanding the foregoing, the conversion rights are capped at

3,500,000

shares of Common Stock (as such number

may

be equitably adjusted for stock splits, stock dividends, rights offerings, combinations, recapitalization, reclassifications, extraordinary distributions and similar events by Petrogress).

XML

Note 16 - Loan Facility from Related Party

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Note Payable to Stockholder Disclosure [Text Block]

Note

16

- Loan facility from related party

On

October 31, 2018,

Christos P. Traios, notified the Company that he was terminating the Revolving Line of Credit Agreement dated

July 13, 2017 (

the “Credit Agreement”) pursuant to which Mr. Traios provided a revolving line of credit in the principal amount of up to

$1,000,000

to the Company. As such,

no

further advances have been made under the Credit Agreement and existing advances in principal amount of

$148,900

under the Line of Credit Note have become due upon the maturity date,

July 13, 2019;

however, the maturity date has been extended to

July 13, 2020.

The table below presents the amounts due to Christos Traios during the

six

months ended

June 30, 2019:

Amounts due to related party December 31, 2018	$	1,176,863
Wages accrued to Christos Traios		90,000
Wages paid to Christos Traios, in cash		(13,738	)
Amount due from Christos Traios		(7,286	)
Amounts due to related party June 3 0 , 2019	$	1,245,839

XML

Note 17 - Revenue Concentrations

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Revenue Concentrations Disclosure [Text Block]

Note

17

– Revenue Concentrations

The Company sells to commercial customers in foreign markets. The following is a summary of customers who accounted for more than

ten

percent (

10%

) of the Company’s revenues for the periods ended

June 30, 2019

and

2018:

Customer	June 3 0 , 2019			June 3 0 , 2018
A		79	%		87	%
B		12	%		*

The following is a summary of customers who accounted for more than

ten

percent (

10%

) of the Company’s accounts receivable for the periods ended

June 30, 2019

and

December 31, 2018:

Customer	June 3 0 , 2019			December 31 , 2018
A		50	%		63	%
B		20	%		16	%

None

of the balances listed in the table above has become overdue as of

August 8, 2019.

Amounts indicated with an * denote amounts less than

10%.

XML

Note 18 - Additional Information

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Additional Financial Information Disclosure [Text Block]

Note

1

8

–

Additional Information

On

April 19, 2019

one

of our vessels (MT APECUS) was attacked by hijackers while she was at Bonny (Nigeria) anchorage, and

6

of our crew members kidnapped, taken ashore and held hostage for over

50

days. During the time the crew members were held hostage, the Nigerian local authorities did

not

provide adequate assistance to secure their release and we were forced to negotiate with the pirates. After lengthy negotiations, we were able to reduce the ransom from

$3

million to

$350,000

which was paid to secure the release of the kidnapped crew members on

June 26, 2019.

Nevertheless, a member of the team we hired to negotiate the release of our crew members was also taken and remains a hostage of the pirates. We are in the process of attempting to secure the remaining team member’s release, and expect that additional expense and/or ransom obligations will need to be paid to do so. In addition, during the sea-piracy incident we ordered

one

of our sister fleet vessels to proceed to and remain in the area to provide support to the attacked vessel and her remaining crew. Both our ships were left idle in the area for the entire period until the release of the abducted seafarers. The ransom paid is reflected as an expense in the accompanied consolidated statement of operations within the line item “Other income / (expense), net”. However, the company reserves the right to claim for a reimbursement through insurance and also to proceed with legal steps against the Government of Nigeria for damages occurred due to what we believe to be significant unlawful actions taken by the Nigerian Navy.

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles (“GAAP”) and has elected a year-end of

December 31.

All significant intercompany transactions and accounts have been eliminated.

These interim consolidated financial statements are unaudited; however, in the opinion of our management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal, recurring nature unless otherwise disclosed. These interim consolidated financial statements, including the notes, have been prepared in accordance with the rules of the SEC applicable to interim period financial statements and do

not

include all of the information and disclosures required by GAAP for complete financial statements.

These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form

10

-K for the year ended

December 31, 2018

as filed with the SEC on

April 12, 2019.

The results of operations for the

three

and

six

months ended

June 30, 2019

are

not

necessarily indicative of the results to be expected for the full year or any future interim period.

Consolidation, Policy [Policy Text Block]

Principles of consolidation

The consolidated financial statements include the consolidated accounts of the Company and our wholly-owned and majority-owned subsidiaries: Petrogress Int’l LLC., Petronav Carriers LLC., Petrogres Africa Co. Ltd. and PG Cypyard & Offshore Services Terminal Ltd.

Percentages Participation in subsidiaries

Company	Participation
Petrogress Int’l LLC. (Delaware)	100% (owned by the corporation)
Petronav Carriers LLC. (Marshall Islands)	100% (owned by the corporation)
Petrogres Africa Co. Ltd. (Ghanaian)	90% (owned by Petrogress Int’l LLC.)
PG CYPYARD & Offshore Services Terminal Ltd.	100% (owned by Petrogress Int’l LLC.)

Non

-controlling interests

Ownership interests in the Company’s subsidiaries held by parties other than the Company are presented separately from the Company’s equity on the Consolidated Balance Sheet. The amount of consolidated net income attributable to the Company and the non-controlling interests are both presented on the face of the Consolidated Statement of Income.

Emerging Growth Company, Policy [Policy Text Block]

Emerging Growth Company

We qualify as an “emerging growth company” under the Jumpstart Our Business Startups Act of

2012,

or “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.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with 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.

XML

Note 2 - Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Percentages Participation in Subsidiaries [Table Text Block]

Company	Participation
Petrogress Int’l LLC. (Delaware)	100% (owned by the corporation)
Petronav Carriers LLC. (Marshall Islands)	100% (owned by the corporation)
Petrogres Africa Co. Ltd. (Ghanaian)	90% (owned by Petrogress Int’l LLC.)
PG CYPYARD & Offshore Services Terminal Ltd.	100% (owned by Petrogress Int’l LLC.)

XML

Note 3 - Information Relating to the Consolidated Statement of Cash Flows (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Cash Flow, Operating Capital [Table Text Block]

	Six Months Ended
	June 30
	2019			2018
(Increase)/ decrease in Accounts receivable, net	$	601,374		$	(780,048	)
(Increase) in Claims receivable, net		(4,000	)		-
(Increase) in Inventories		(563,928	)		(10,608	)
(Increase)/ decrease in Prepaid expenses and other assets		245,796			(646,833	)
Increase/ (decrease) in Accounts payable and accrued expenses		87,763			(356,563	)
Increase in Amounts due to related party		68,976			98,969
Increase in Accrued interest		2,980			3,196
Decrease in Security deposit		54			-
Decrease in Deferred charges, net		6,688			-
Net increase in operating capital	$	445,703		$	(1,691,887	)

Schedule of Net Repayment (Borrowing) of Loans by Equity Affiliates [Table Text Block]

	Six Months Ended
	June 30
	2019		2018
Borrowing of loans by equity affiliates	$	-	$	-
Repayment of loans by equity affiliates		-		63,000
Net repayment of loans by equity affiliates	$	-	$	63,000

XML

Note 4 - Summarized Financial Data - Petrogress, Inc. (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Condensed Financial Statements [Table Text Block]

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	-		$	-
Cost and other expenses		(254,038	)		(550,793	)
Net (loss) to PGI	$	(254,038	)	$	(550,793	)

	Six Months Ended
	June 30
	2019			2018
Current assets	$	176,993		$	29,935
Other assets		7,775			45,075
Current liabilities		(1,219,369	)		(697,772	)
Total Petrogress, Inc. net equity	$	(1,034,601	)	$	(622,762	)

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	528,333		$	1,796,227
Cost and other expenses*		(1,674,142	)		(1,053,180	)
Net income/ (loss) to Petronav Carriers LLC **	$	(1,145,809	)	$	743,047

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	2,139,178		$	-
Cost and other expenses		(2,179,311	)		(4,150	)
Net income/ (loss) to Petrogress Int’l LLC *	$	40,133		$	(4,150	)

	Six Months Ended
	June 30
	2019			2018
Sales and other operating revenues	$	330,000		$	442,795
Cost and other expenses		(418,820	)		(421,627	)
Net income/ (loss ) to Petrogres Africa Co. Ltd *	$	(88,820	)	$	21,168

XML

Note 5 - Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Inventory, Current [Table Text Block]

Goods Inventories	June 30, 2019		December 31, 2018
Crude Oil	$	-	$	279,196
Gas Oil		810,000		-
Lubricants		86,004		-
Total Inventories	$	896,004	$	279,196

XML

Note 6 - Properties, Vessels, Inventories & Equipment (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Properties, Vessels, Inventories & Equipment [Table Text Block]

	June 30, 2019		December 31, 2018
Vessel’s value, at historical cost	$	3,940,745	$	4,354,147
Bunkers R.O.B.		85,059		137,939
Equipment, Machineries, Fenders, Vehicles & Trucks		95,554		96,759
Total	$	4,121,358	$	4,588,845

XML

Note 7 - Vessels and Other Fixed Assets, Net (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

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

Tanker Vessels (in years)	10
Supply boats (in years)	10
Fenders (in years)	10
Oil hoses (in years)	10
Vehicles & trucks (in years)	10
Office equipment and furniture (in years)	10
Computer hardware (in years)	5

Property, Plant and Equipment [Table Text Block]

	June 30, 2019			December 31, 2018			Estimated useful Life (in years)
Marine vessels	$	10,171,930		$	10,171,930			10
Furniture and equipment		203,290			189,848			10
Accumulated depreciation		(6,338,922	)		(5,910,872	)
Vessels and other fixed assets, net	$	4,036,298		$	4,450,906

XML

Note 16 - Loan Facility from Related Party (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Related Party Transactions [Table Text Block]

Amounts due to related party December 31, 2018	$	1,176,863
Wages accrued to Christos Traios		90,000
Wages paid to Christos Traios, in cash		(13,738	)
Amount due from Christos Traios		(7,286	)
Amounts due to related party June 3 0 , 2019	$	1,245,839

XML

Note 17 - Revenue Concentrations (Tables)

6 Months Ended

Jun. 30, 2019

Accounts Receivable [Member]

Notes Tables

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Customer	June 3 0 , 2019			December 31 , 2018
A		50	%		63	%
B		20	%		16	%

Revenue from Contract with Customer Benchmark [Member]

Notes Tables

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Customer	June 3 0 , 2019			June 3 0 , 2018
A		79	%		87	%
B		12	%		*

XML

Note 1 - The Company and Our Subsidiaries (Details Textual)	Jul. 09, 2018	Feb. 29, 2016 shares	Jun. 30, 2019 shares	Dec. 31, 2018 shares	Jul. 18, 2018 shares	Jul. 17, 2018 shares	Nov. 30, 2017
Common Stock, Shares Authorized			19,000,000	19,000,000	19,000,000	490,000,000
Preferred Stock, Shares Authorized			999,900	999,900	1,000,000	10,000,000
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	100
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]
Business Acquisition, Percentage of Voting Interests Acquired							90.00%

XML

Note 2 - Summary of Significant Accounting Policies - Percentages Participation in Subsidiaries (Details)	Jun. 30, 2019
Petrogress Int’l LLC. (Delaware) [Member]
Ownership Interest	100.00%
Petronav Carriers LLC. (Marshall Islands) [Member]
Ownership Interest	100.00%
Petrogres Africa Co. Ltd. (Ghanaian) [Member] | Petrogress Int'l LLC [Member]
Ownership Interest	90.00%
PG CYPYARD & Offshore Services Terminal Ltd. [Member] | Petrogress Int'l LLC [Member]
Ownership Interest	100.00%

XML

Note 3 - Information relating to the Consolidated Statement of Cash Flows - Operating Capital (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
- (Increase)/ decrease in Accounts receivable, net	$ 601,374	$ (780,048)
- (Increase) in Claims receivable, net	(4,000)
- (Increase) in Inventories	(563,928)	(10,608)
- (Increase)/ decrease in Prepaid expenses and other current assets	245,796	(646,833)
- Increase/ (decrease) in Accounts payable and accrued expenses	87,763	(356,563)
- Increase/ (decrease) in Amounts due to related party	68,976	98,969
- Increase/ (decrease) in Accrued Interest	2,980	3,196
- (Increase)/ decrease in Security deposit	54
- Decrease in Deferred charges, net	6,688
Net increase in operating capital	$ 445,703	$ (1,691,887)

XML

Note 3 - Information Relating to the Consolidated Statement of Cash Flows - Loans by Equity Affiliates (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Borrowing of loans by equity affiliates
Repayment of loans by equity affiliates		63,000
Net repayment of loans by equity affiliates		$ 63,000

XML

Note 4 - Summarized Financial Data - Petrogress, Inc. (Details Textual)	Jun. 30, 2019
Petronav Carriers LLC [Member]
Noncontrolling Interest, Ownership Percentage by Parent	100.00%
Petrogress Int'l LLC [Member]
Noncontrolling Interest, Ownership Percentage by Parent	100.00%
Petrogres Africa Co. Ltd. (Ghanaian) [Member] | Petrogress Int'l LLC [Member]
Noncontrolling Interest, Ownership Percentage by Parent	90.00%

XML

Note 4 - Summarized Financial Data - Petrogress, Inc. - Condensed Financial Statement (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Sales and other operating revenues		$ 404,000	$ 2,261,890	$ 2,526,678	$ 4,827,154
Cost and other expenses		(281,202)	(1,282,524)	(1,446,954)	(2,689,061)
Net income/ (loss)		(1,015,239)	237,262	(861,980)	351,106
Current assets		7,889,588		7,889,588		$ 8,170,453
Current liabilities		2,611,962		2,611,962		2,599,959
Total Petrogress, Inc. net equity		10,141,293		10,141,293		$ 10,854,629
Parent Company [Member]
Sales and other operating revenues
Cost and other expenses				(254,038)	(550,793)
Net income/ (loss)				(254,038)	(550,793)
Current assets		176,993	29,935	176,993	29,935
Other assets		7,775	45,075	7,775	45,075
Current liabilities		(1,219,369)	(697,772)	(1,219,369)	(697,772)
Total Petrogress, Inc. net equity		$ (1,034,601)	$ (622,762)	(1,034,601)	(622,762)
Petronav Carriers LLC [Member]
Sales and other operating revenues				528,333	1,796,227
Cost and other expenses	[1]			(1,674,142)	(1,053,180)
Net income/ (loss)	[2]			(1,145,809)	743,047
Petrogress Int'l LLC [Member]
Sales and other operating revenues				2,139,178
Cost and other expenses				(2,179,311)	(4,150)
Net income/ (loss)	[3]			40,133	(4,150)
Petrogres Africa Co. Ltd. (Ghanaian) [Member]
Sales and other operating revenues				330,000	442,795
Cost and other expenses				(418,820)	(421,627)
Net income/ (loss)	[4]			$ (88,820)	$ 21,168

[1] Cost and other expenses include the ransom paid as well as all expenses related to the hijacking of one of our vessels.

[2] 100% Net income attributable to Petrogress Inc.

[3] 100% Net income attributable to Petrogress, Inc.

[4] 90% Net income attributable to Petrogress Int'l LLC

XML

Note 5 - Inventories - Goods Inventories (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Total Inventories	$ 896,004	$ 279,196
Crude Oil [Member]
Total Inventories		279,196
Oil and Gas [Member]
Total Inventories	810,000
Lubricants [Member]
Total Inventories	$ 86,004

XML

Note 6 - Properties, Vessels, Inventories & Equipment - Schedule of Properties, Vessels, Inventories & Equipment (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Vessel’s value, at historical cost	$ 3,940,745	$ 4,354,147
Bunkers R.O.B.	85,059	137,939
Equipment, Machineries, Fenders, Vehicles & Trucks	95,554	96,759
Total	$ 4,121,358	$ 4,588,845

XML

Note 7 - Vessels and Other Fixed Assets, Net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment, Useful Life
Depreciation, Total	$ 230,768	$ 231,061	$ 428,048	$ 458,680
Vessels [Member]
Property, Plant and Equipment, Useful Life			10 years

XML

Note 7 - Vessels and other fixed assets, net - Useful Lives of Vessels and Equipment (Details)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment, Useful Life (Year)
Tanker Vessels [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Supply Boats [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Fenders [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Oil Hoses [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Vehicles & Trucks [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Office Equipment and Furniture [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Computer Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	5 years

XML

Note 7 - Vessels and Other Fixed Assets, Net - Vessels and Other Fixed Assets (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment, Useful Life (Year)
Accumulated depreciation	$ (6,338,922)	$ (5,910,872)
Net property and equipment	4,036,298	4,450,906
Vessels [Member]
Property and equipment, gross	$ 10,171,930	10,171,930
Property, Plant and Equipment, Useful Life (Year)	10 years
Office Equipment and Furniture [Member]
Property and equipment, gross	$ 203,290	$ 189,848
Property, Plant and Equipment, Useful Life (Year)	10 years

XML

Note 12 - Officers Compensations (Details Textual) - Officer [Member] - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Salary and Wage, Officer, Excluding Cost of Good and Service Sold	$ 90,000	$ 110,000
Payments to Employees	$ 13,738

XML

Note 14 - Shareholders (Details Textual) - shares	Jun. 30, 2019	Dec. 31, 2018
Common Stock, Shares, Issued, Total	3,874,808	3,828,412
Common Stock, Shares, Outstanding, Ending Balance	3,874,808	3,828,412
UNITED STATES
Common Stock, Shares, Outstanding, Ending Balance	475,574
Percentage of Outstanding Shares Held by Shareholders	12.00%
UNITED STATES | Cede & Co. Shareholder [Member]
Common Stock, Shares, Outstanding, Ending Balance	336,911

XML

Note 15 - Related Party Transactions (Details Textual) - Petrogres Africa Co. Ltd [Member] - Forecast [Member]	Oct. 23, 2019 USD ($) shares
Payments to Acquire Businesses, Gross | $	$ 900,000
Business Combination, Maximum Number of Shares on Conversion Rights | shares	3,500,000

XML

Note 16 - Loan Facility from Related Party (Details Textual) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Oct. 31, 2018
Long-term Line of Credit, Total	$ 148,900	$ 148,900
Chief Executive Officer [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 1,000,000
Long-term Line of Credit, Total			$ 148,900

XML

Note 16 - Loan Facility from Related Party - Amounts due to CEO (Details)	6 Months Ended
	Jun. 30, 2019 USD ($)
Amounts due to related party	$ 1,176,863
Amounts due to related party	1,245,839
Chief Executive Officer [Member] | Amounts due to Chief Executive Officer [Member]
Amounts due to related party	1,176,863
Wages accrued to Christos Traios	90,000
Wages paid to Christos Traios, in cash	(13,738)
Amount due from Christos Traios	(7,286)
Amounts due to related party	$ 1,245,839

XML

Note 17 - Revenue Concentrations - Revenue Concentration by Customer (Details) - Customer Concentration Risk [Member] - Revenue from Contract with Customer Benchmark [Member]	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Customer A [Member]
Sales concentration percentage	79.00%	87.00%
Customer B [Member]
Sales concentration percentage	12.00%

XML

Note 17 - Revenue Concentrations - Accounts Receivable Concentration by Customer (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Customer A [Member]
Sales concentration percentage	50.00%	63.00%
Customer B [Member]
Sales concentration percentage	20.00%	16.00%

XML

Note 18 - Additional Information (Details Textual)	Apr. 19, 2019 USD ($)
Amount of Original Ransom for Employees Held Hostage	$ 3,000,000
Payments for Ransom of Employees Held Hostage	$ 350,000