UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

Dated: ~~December~~June 414, ~~2020~~2021

Commission File No. 001-34104

NAVIOS MARITIME ACQUISITION CORPORATION

~~7 Avenue de~~Strathvale ~~Grande Bretagne~~House, ~~Office~~90 ~~11B2~~N Church Street,

~~Monte~~P.O. ~~Carlo~~Box 309, Grand MCCayman, ~~98000 Monaco~~

KY1-1104 Cayman Islands

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F: Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ☐ No ☒

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

NAVIOS MARITIME ACQUISITION CORPORATION

FORM 6-K

TABLE OF CONTENTS

	Page
Operating and Financial Review		2
Exhibit List		22
Financial Statements Index		F-1

This Report on Form 6-K is hereby incorporated by reference into the Navios Maritime Acquisition Corporation Registration Statement on Form F-3, File No. 333-235369.

Operating and Financial Review and Prospects

The following is a discussion of the financial condition and results of operations for the three ~~and nine~~ month periods ended ~~September~~March 3031, ~~2020~~2021 and ~~2019~~ 2020 of Navios Maritime Acquisition Corporation (referred to herein as “we,” “us” or “Navios Acquisition”). ~~All~~The ~~of the~~ financial statements have been stated in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). You should read this section together with the consolidated financial statements and the accompanying notes included in Navios Acquisition’s ~~2019~~2020 Annual Report filed on Form 20-F with the U.S. Securities and Exchange Commission (the “SEC”).

This Report contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and expectations, including ~~with respect to~~ Navios Acquisition’s future dividends, ability to refinance its Ship Mortgage Notes, expected cash flow generation and Navios Acquisition’s growth strategy and measures to implement such strategy;, including expected vessel acquisitions and entering into further employment contracts. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and employment contracts. These forward-looking statements are based on the information available to, and the expectations and assumptions ~~deemed~~ deemed reasonable by, Navios Acquisition at the time ~~this~~these ~~filing~~statements ~~was~~were made. Although Navios Acquisition believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve risks and are based upon a number of assumptions and estimates ~~which~~that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Acquisition. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks relating to: global and regional economic and political conditions including the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, shipyards performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing, potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists, including the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it, uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term employment contracts, our ability to maximize the ~~creditworthiness~~use of our ~~charterers~~vessels, ~~and~~expected demand in the tanker sector, the ability of our contract counterparties to fulfill their obligations to us,; tanker industry trends, including ~~charter~~fluctuations in charter rates and vessel values and factors affecting vessel supply and demand,; the aging of our ~~vessels~~fleet and resultant increases in operation and dry docking costs,; the loss of any customer or charter or vessel,; our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all; the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors; increases in costs and expenses, including but not limited to: crew ~~wages~~, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses,; the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, ; potential liability from litigation and our vessel operations, including discharge of pollutants,; general domestic and international political conditions,; competitive factors in the market in which Navios Acquisition operates; risks associated with operations outside the United States; and other factors listed from time to time in ~~the~~ Navios Acquisition’s filings with the ~~SEC~~Securities and Exchange Commission, including its annual and interim reports filed on Form 20-F and Form 6-K. Navios Acquisition expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Acquisition’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Acquisition makes no prediction or statement about the performance of its common stock.

Recent Developments

Fleet Update

In June 2021, Navios Acquisition sold the Nave Neutrino, a 2003-built VLCC vessel of 298,287 dwt, to an unaffiliated third party for a net sale price of $24.5 million.

In April 2021, Navios Acquisition sold the Spectrum N, a 2009-built container vessel of 34,333 dwt, and in May 2021, Navios Acquisition sold the Ete N, a 2012-built container vessel of 41,139 dwt, and the Fleur N, a 2012-built container vessel of 41,130 dwt, to a related party for an aggregate sale price of $55.5 million.

In May 2021, Navios Acquisition sold the Vita N, a 2010-built container vessel of 23,359 dwt, to an unaffiliated third party for a net a sale price of $8.9 million.

In May 2021, Navios Acquisition sold the Acrux N, a 2010-built container vessel of 23,338 dwt, to an unaffiliated third party for a net sale price of $9.1 million.

Recent Developments

Delivery of one VLCC

On October 28, 2020, a newbuilding VLCC of 313,433 dwt under bareboat lease, the Baghdad, was delivered from a Japanese shipyard.

The vessel has been chartered out to a high-quality counterparty for a ten-year period at a bareboat rate of $27,816 net per day. The charter party has an option for an additional five-year period at a bareboat rate of $29,751 net per day.

Dividend

The Board of Directors declared a quarterly cash dividend in respect of the third quarter of 2020 of $0.05 per share of common stock which will be paid on February 10, 2021 to stockholders of record as of January 12, 2021. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Acquisition’s cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.

Debt developments

During the third quarter of 2020 and up to December 2, 2020, Navios Acquisition repurchased $55.4 million of its ship mortgage notes for a cash consideration of $39.4 million.

In October 2020, Navios Acquisition extended the maturity date to February 2021 of its existing loan with a commercial bank, having an outstanding amount of $17.6 million.

In October 2020, Navios Acquisition extended the maturity date to October 2024 of its existing loan with a commercial bank, having an outstanding amount of $28.4 million. The remaining balance of the facility is repayable in 16 quarterly installments of $0.8 million each with a final balloon payment of $14.9 million repayable on the last repayment date.

In November 2020, Navios Acquisition arranged financing with a commercial bank of up to $95.8 million in order to refinance one VLCC, two chemical tankers and seven containerships, subject to the refinancing of its ship mortgage notes and to definitive documentation. The facility is repayable through a period of two to four years, in consecutive quarterly installments of up to $1.5 million each, with a balloon payment of up to $62.7 million in total. The facility bears interest at LIBOR plus 400 bps per annum.

Continuous Offering Program

On November 29, 2019, Navios Acquisition entered into a Continuous Offering Program Sales Agreement, pursuant to which Navios Acquisition may issue and sell from time to time through the sales agent shares of common stock having an aggregate offering price of up to $25.0 million. AsSubsequently ofto ~~December~~March 231, ~~2020,~~2021 ~~since~~and ~~the~~as ~~commencement~~ of ~~the~~June 11, ~~program~~2021, Navios Acquisition has issued ~~956~~586,~~110~~735 shares of common stock and received net proceeds of $52.30 million.

Fleet

AsOur offleet ~~December 2,~~currently ~~2020,~~consists ~~our core fleet consisted~~ of a total of 4745 double-hulled tanker vessels, aggregating approximately 65.04 million deadweight tons, or dwt. The fleet includes 1412 Very Large Crude Carriers (“VLCC”) tankers (over 200,000 dwt per ship) which transport crude oil, including ~~one~~the ~~bareboat~~two ~~chartered-in VLCC that has been delivered on October 28, 2020 and three~~ bareboat chartered-in VLCCs expected to be delivered in each of ~~the~~ ~~first and~~ the third ~~quarters~~quarter of 2021 and the ~~second~~third quarter of 2022, ten Long Range 1 (“LR1”) product tankers (60,000-85,000 dwt per ship), 18 Medium Range 2 (“MR2”) product tankers (47,000-52,000 dwt per ship), three Medium Range one (“MR1”) product tankers (35,000-45,000 dwt per ship) and two chemical tankers (25,000 dwt per ship), which transport refined petroleum products and bulk liquid chemicals. ~~Navios Acquisition also owns seven containerships that are accounted for as held for sale.~~ All of our vessels are currently chartered-out to quality counterparties with an average remaining charter period of approximately one year. AsWe have ~~of December 2, 2020, we had~~ charters covering 5579.9% of available days for ~~our~~the ~~core~~remaining ~~fleet~~nine inmonths period of 2021 and 22.5% of available days in 2022.

Vessels

Type

Year built

Dwt

Net Charter Rate ⁽¹⁾

Profit Sharing

Arrangements

Charter Expiration
Date ⁽²⁾

• Core fleet

Owned Vessels of Navios Acquisition

Nave Polaris

Chemical Tanker

2011

25,145

Floating Rate ⁽³⁾

None

August 2021

Nave Cosmos

Chemical Tanker

2010

25,130

Floating Rate ⁽³⁾

None

August 2021

Star N

MR1 Product Tanker

2009

37,836

$6,913

None

June 2021

$9,628

None

October 2021

$11,603 ⁽³¹⁾

None

February 2022

Hector N

MR1 Product Tanker

2008

38,402

$10,369 ⁽⁵⁾/$11,356 ⁽⁵⁾

None

January 2022

Nave Bellatrix

MR2 Product Tanker

2013

49,999

$11,603 ⁽³²⁾

None

November 2021

Nave Orion

MR2 Product Tanker

2013

49,999

$12,898 ⁽⁶⁾

None

December 2021

Nave Aquila

MR2 Product Tanker

2012

49,991

$12,838⁽²⁸⁾

None

November 2021

Nave Atria

MR2 Product Tanker

2012

49,992

$14,072⁽¹⁶⁾

None

October 2021

Nave Buena Suerte

VLCC

2011

297,491

$47,906 ⁽⁹⁾

As per footnote ⁽⁹⁾

June 2025

Nave Quasar

VLCC

2010

297,376

$16,788 ⁽¹⁰⁾

As per footnote ⁽¹⁰⁾

February 2023

Nave Synergy

VLCC

2010

299,973

$32,588

None

May 2022

Nave Spherical

VLCC

2009

297,188

Floating Rate ⁽¹¹⁾

None

December 2022

Nave Photon

VLCC

2008

297,395

$47,906 ⁽⁹⁾

As per footnote⁽⁹⁾

August 2021

Nave Constellation

VLCC

2010

298,000

$7,900 ⁽³³⁾

None

June 2021

Nave Universe

VLCC

2011

297,066

$17,775⁽¹³⁾

As per footnote ⁽¹³⁾

April 2022

Nave Galactic

VLCC

2009

297,168

$17,775 ⁽¹³⁾

As per footnote ⁽¹³⁾

June 2022

Baghdad

VLCC

2020

313,433

$27,816 ⁽²⁹⁾

None

October 2030

Erbil

VLCC

2021

313,486

$27,816 ⁽²⁹⁾

None

February 2031

Vessels to be delivered ⁽³⁴⁾

Nave Electron

VLCC

Q3 2021

310,000

As per footnote ^(18), (34)

—

Vessels

Type

~~Yearbuilt~~Year built

Dwt

~~Dwt~~

Net Charter Rate (1)

~~Net~~Profit ~~Charter~~Sharing ~~Rate (1)~~Arrangements

~~Profit~~Charter ~~SharingArrangements~~ExpirationDate (2)

~~Charter ExpirationDate (2)~~

● Core fleet

TBN IV

VLCC

Q3 2022

310,000

As per footnote(34)

—

Owned Vessels of Navios Acquisition

Owned Vessels of Navios Midstream

Nave Polaris

Chemical Tanker

2011

25,145

Floating Rate (3)

None

March 2021

Perseus N

MR1 Product Tanker

2009

36,264

$12,146 (14)

None

December 2021

Nave Cosmos

Chemical Tanker

2010

25,130

Floating Rate (3)

None

March 2021

Nave Velocity

MR2 Product Tanker

2015

49,999

$13,331/ $15,553 (17)

None

November 2021/ November 2024

Star N

MR1 Product Tanker

2009

37,872

$13,894

None

February 2021

Nave Sextans

MR2 Product Tanker

2015

49,999

$13,764 (12)

None

April 2022

Hector N

MR1 Product Tanker

2008

38,402

$14,813

None

January 2021

Nave Pyxis

MR2 Product Tanker

2014

49,998

$13,035 (15)

None

July 2021

Nave Alderamin

MR2 Product Tanker

2013

49,998

$12,898(6)

None

November 2021

Nave Luminosity

MR2 Product Tanker

2014

49,999

$17,034 (20)

None

December 2021

Nave Bellatrix

MR2 Product Tanker

2013

49,999

$16,047

None

March 2021

Nave Jupiter

MR2 Product Tanker

2014

49,999

$14,040 (19)

None

September 2021

Nave Capella

MR2 Product Tanker

2013

49,995

$15,800

None

December 2020

Bougainville

MR2 Product Tanker

2013

50,626

$13,163 (21)

100%

September 2021

Nave Orion

MR2 Product Tanker

2013

49,999

$15,159

None

December 2020

$16,829 (21)

100%

September 2022

$12,898 (6)

None

December 2021

$15,600 (26)

100%

September 2023

Nave Titan

MR2 Product Tanker

2013

49,999

$14,072(27)

None

July 2021

Nave Orbit

MR2 Product Tanker

2009

50,470

$14,000

None

September 2021

Nave Aquila

MR2 Product Tanker

2012

49,991

$10,863

None

March 2021

Nave Equator

MR2 Product Tanker

2009

50,542

$16,250

None

January 2022

$12,838(28)

None

November 2021

Nave Equinox

MR2 Product Tanker

2007

50,922

$14,813(22)

ice-transit premium (4)

October 2021

Nave Atria

MR2 Product Tanker

2012

49,992

$14,072(16)

None

October 2021

Nave Pulsar

MR2 Product Tanker

2007

50,922

$14,072(23)

ice-transit premium (4)

October 2021

Nave Estella

LR1 Product Tanker

2012

75,000

$17,036

None

December 2020

Nave Dorado

MR2 Product Tanker

2005

47,999

$7,653(30)

None

July 2021

$13,234 (7)

None

December 2021

Nave Atropos

LR1 Product Tanker

2013

74,695

$14,813

None

April 2022

Nave Andromeda

LR1 Product Tanker

2011

75,000

Floating Rate (8)

None

January 2021

Nave Rigel

LR1 Product Tanker

2013

74,673

$16,088 (24)

None

January 2022

Nave Buena Suerte

VLCC

2011

297,491

$47,906 (9)

As per footnote (9)

June 2025

Nave Cassiopeia

LR1 Product Tanker

2012

74,711

Floating Rate (8)

None

July 2021

Nave Quasar

VLCC

2010

297,376

$16,788 (10)

As per footnote (10)

January 2023

Nave Cetus

LR1 Product Tanker

2012

74,581

$16,088 (24)

None

January 2022

Nave Synergy

VLCC

2010

299,973

$32,588

None

May 2022

Nave Ariadne

LR1 Product Tanker

2007

74,671

Floating Rate (25)

None

August 2021

Nave Spherical

VLCC

2009

297,188

Floating Rate (11)

None

December 2022

Nave Cielo

LR1 Product Tanker

2007

74,671

$12,994

None

April 2022

Nave Neutrino

VLCC

2003

298,287

$24,688

None

May 2021

Aurora N

LR1 Product Tanker

2008

63,495

Floating Rate (25)

None

August 2021

Nave Photon

VLCC

2008

297,395

$47,906 (9)

As per footnote (9)

June 2026

Lumen N

LR1 Product Tanker

2008

63,599

Floating Rate (25)

None

August 2021

Nave Constellation

VLCC

2010

298,000

$18,170 (12)

As per footnote (12)

February 2021

Nave Alderamin

MR2 Product Tanker

2013

49,998

$12,898(6)

None

November 2021

Nave Universe

VLCC

2011

297,066

$17,775(13)

As per footnote (13)

April 2022

Nave Capella

MR2 Product Tanker

2013

49,995

$12,898(6)

None

January 2022

Nave Celeste

VLCC

2003

298,717

$18,170 (14)

As per footnote (14)

December 2020

Nave Titan

MR2 Product Tanker

2013

49,999

$14,072(27)

None

July 2021

Nave Galactic

VLCC

2009

297,168

$20,475(15) / $17,775 (13)

50%/50%(15) /As per footnote (13)

December 2020/ July 2022

Nave Estella

LR1 Product Tanker

2012

75,000

$13,234 (7)

None

December 2021

Baghdad

VLCC

2020

313,433

$27,816 (29)

None

October 2030

Nave Andromeda

LR1 Product Tanker

2011

75,000

Floating Rate (8)

None

July 2021

Vessels to be delivered (31)

Erbil

VLCC

Q1 2021

310,000

$27,816 (29)

None

January 2031

Nave Electron

VLCC

Q3 2021

310,000

As per footnote (18)

—

TBN IV

VLCC

Q2 2022

310,000

—

Owned Vessels of Navios Midstream

Perseus N^

MR1 Product Tanker

2009

36,264

$12,146

None

December 2021

Nave Velocity

MR2 Product Tanker

2015

49,999

$12,344(17)

None

May 2021

Nave Sextans^

MR2 Product Tanker

2015

49,999

$17,250 (19)

None

May 2021

Nave Pyxis

MR2 Product Tanker

2014

49,998

$15,500

None

December 2020

Nave Luminosity

MR2 Product Tanker

2014

49,999

$17,034 (20)

None

December 2021

Nave Jupiter

MR2 Product Tanker

2014

49,999

$15,306 (5)

None

February 2021

Bougainville

MR2 Product Tanker

2013

50,626

$15,600 (21)

100%

September 2023

Nave Orbit

MR2 Product Tanker

2009

50,470

$14,000

None

September 2021

Nave Equator

MR2 Product Tanker

2009

50,542

$16,250

None

January 2022

Nave Equinox

MR2 Product Tanker

2007

50,922

$14,813(22)

ice-transit premium (4)

October 2021

Nave Pulsar

MR2 Product Tanker

2007

50,922

$14,072(23)

ice-transit premium (4)

November 2021

Nave Dorado

MR2 Product Tanker

2005

47,999

$7,653(30)

None

February 2021

Nave Atropos

LR1 Product Tanker

2013

74,695

$29,625

None

May 2021

Nave Rigel

LR1 Product Tanker

2013

74,673

$16,088 (24)

None

January 2022

Nave Cassiopeia^

LR1 Product Tanker

2012

74,711

Floating Rate (8)

None

January 2021

Nave Cetus^

LR1 Product Tanker

2012

74,581

$16,088 (24)

None

January 2022

Nave Ariadne

LR1 Product Tanker

2007

74,671

Floating Rate (25)

None

March 2021

Vessels

Type

Yearbuilt

Dwt

Net Charter Rate (1)

Profit SharingArrangements

Charter ExpirationDate (2)

Nave Cielo

LR1 Product Tanker

2007

74,671

$28,875

None

May 2021

Aurora N

LR1 Product Tanker

2008

63,495

Floating Rate (25)

None

March 2021

Lumen N

LR1 Product Tanker

2008

63,599

Floating Rate (25)

None

March 2021

● Owned Vessels held for sale

Acrux N

Container

2010

23,338

$8,759

None

December 2020

Allegro N

Container

2014

46,999

$14,250

None

October 2021

Fleur N

Container

2012

41,130

$10,369

None

May 2021

Ete N

Container

2012

41,139

$9,628

None

April 2021

Spectrum N

Container

2009

34,333

$7,941

None

December 2020

$15,800

None

April 2022

Solstice N

Container

2007

44,023

$8,470

None

May 2021

Vita N

Container

2010

23,359

$5,294 (26)

None

January 2021

(1)	Net time charter-out rate per day (net of commissions), presented in U.S. Dollars.

(2) Estimated dates assuming the midpoint or company’s best estimate of the redelivery period by charterers, including owner’s extension options not declared yet.

(3)	Rate based on Delta-8 pool earnings.

(4) The premium for the Nave Equinox and the Nave Pulsar when vessels are trading on ice or follow ice breaker is $1,~~500~~481 per day.

(5) Charterer’s option to extend the charter for up to ~~four~~six months at $1512,~~306~~591 net per day.

(6)	Charterer has the option to charter the vessel for an optional year at a rate of $14,438 net per day.

(7)	Charterer has the option to charter the vessel for an optional year at a rate of $14,630 net per day.

(8)	Rate based on LR8 pool earnings.

(9)	Profit sharing arrangement of 35% above $54,388, 40% above $59,388 and 50% above $69,388.

(10)	Contract provides 100% of BITR TD3C-TCE index up to $37,031 and 50% thereafter with $16,788 floor.

(11) Contract provides 100% of BITR TD3C-TCE index plus $5,000 premium. ~~Premium~~Charterer’s ofoption ~~$2,500~~to ifextend ~~vessel~~for ~~not~~one ~~fitted~~year ~~with~~at ~~scrubber~~TD3C-TCE index plus $1,500 premium.

(12) ~~Contract~~Charterer’s ~~provides~~option ~~100%~~to ofextend ~~BITR~~the ~~TD3C-TCE~~charter ~~index~~for ~~plus $2,000~~ up to ~~$39,006~~six ~~and~~months ~~50%~~at ~~thereafter with~~ $1815,~~170~~689 ~~floor~~net per day.

(13) Contract provides adjusted BITR TD3C-TCE index up to $38,759 and 50% thereafter with $17,775 floor. Charterer’s option to extend for six months at same terms.

(14) ~~Contract~~Charterer’s ~~provides~~option ~~100%~~to ofextend ~~BITR~~the ~~TD3C-TCE~~charter ~~index~~for ~~plus~~six ~~$2,000~~months upat to $3813,~~513~~825 ~~and~~net ~~50%~~per ~~thereafter with $18,170 floor~~day.

(15) ~~Profit~~Charterer’s ~~sharing~~option ~~arrangement~~to ~~50%~~extend ~~on actual pool earnings. Any adjustment by~~ the ~~charterers~~charter for ~~the~~six ~~expense/loss~~months ~~will be provisionally settled on a quarterly basis and finally settled~~ at ~~the~~$14,023 ~~end~~net ofper ~~the charter period~~day.

(16)	Charterer’s option to extend the charter for up to six months at $14,072 net per day.

(17) Charterer’s option to extend the charter for upone toyear ~~six~~at ~~months~~$16,541 net per day plus one year at $1317,~~331~~528 net per day.

(18) To take over Nave Photon’s charter of $47,906 net per day from ~~July~~August ~~1st,~~ 2021 plus profit sharing arrangement of 35% above $54,388, 40% above $59,388 and 50% above $69,388.

(19) Charterer’s option to extend the charter for ~~one~~up ~~year~~to ten months: a) up to three months at $187,~~750~~653 net per day; b) up to four months at $9,875 net per day; and c) up to three months at $11,850 net per day.

(20)	Charterer has the option to charter the vessel for an optional year at a rate of $18,022 net per day.

(21) Rate can reach a maximum of $1820,~~525~~963 net per day calculated basis on a formula.

(22) Charterer has the option to charter the vessel for an optional ~~year~~six months period at a rate of $16,294 net per day.

(23)	Charterer’s option to extend the charter for six months at $15,553 net per day plus ice-transit premium.

(24)	Charterer has the option to charter the vessel for an optional year at a rate of $17,063 net per day.

(25)	Rate based on Penfield pool earnings.

(26) ~~Charterer~~Rate ~~has~~can ~~the~~reach ~~option to charter the vessel for four to six months at~~ a ~~rate~~maximum of $818,~~663~~525 net per day calculated basis on a formula.

(27)	Charterer’s option to extend the charter for up to four months at $14,072 net per day.

(28)	Charterer’s option to extend the charter for up to four months at $12,838 net per day.

(29)	Charterer’s option to extend the bareboat charter for five years at $29,751 net per day.

(30)	Charterer’s option to extend the charter for up to ten months: a) up to three months at $7,653 net per day; b) up to four months at $9,875 net per day; and c) up to three months at $11,850 net per day.

(31) ~~Bareboat~~Charterer’s ~~chartered-in vessels with purchase~~ option, ~~expected~~ to beextend ~~delivered in each of~~ the ~~first~~charter ~~and~~for ~~the~~up ~~third~~to ~~quarters~~four ofmonths ~~2021.~~at ~~In the second quarter of 2020~~$11,603 ~~Navios~~net ~~Acquisition~~per ~~exercised its option for a fourth Japanese newbuild VLCC under a twelve year bareboat charter agreement with de-escalating purchase options and expected delivery in the second quarter of 2022~~day.

^(32) ~~Under~~Charterer’s ~~process~~option ofto ~~completion~~extend ofthe ~~documentation~~charter for up to six months: a) up to three months at $12,838 net per day; and b) up to three months at $13,578 net per day.

(33)	Charterer’s option to extend the charter for up to two months at $8,888 net per day.

(34)

Bareboat chartered-in vessel with purchase option, expected to be delivered in the third quarter of 2021. In the second quarter of 2020, Navios Acquisition exercised its option for a fourth Japanese newbuild VLCC under a twelve year bareboat charter agreement with de-escalating purchase options and expected delivery in the third quarter of 2022.

Charter Policy and Industry Outlook

Our core fleet currently consists of 4745 vessels, of which 1412 are VLCCs (including ~~one~~two bareboat chartered-in ~~VLCC that has been delivered on October 28, 2020 and three bareboat chartered-in~~ VLCCs expected to be delivered in each of the ~~first and the~~ third ~~quarters~~quarter of 2021 and the ~~second~~third quarter of 2022), 31 are product tankers, and two are chemical tankers. ~~Navios Acquisition also owns seven containerships that are accounted for as held for sale.~~ All of our vessels are currently chartered-out to quality counterparties with an average remaining charter period of approximately one year. Many of our contracts have profit sharing arrangements (see fleet table above). While all of our vessels are currently chartered-out, we intend to deploy any vessels that would become open—not chartered-out—to leading charterers in a mix of long, medium and short-term time charters, depending on the vessels’ positions, seasonality and market outlook. This chartering strategy is intended to allow us to capture increased profits during strong charter markets, while developing relatively stable cash flows from longer-term time charters. We will also seek profit sharing arrangements in our employment contracts, to provide us with potential incremental revenue above the contracted minimum charter rates.

table above). While all of our vessels are currently chartered-out, we intend to deploy any vessels that would become open—not chartered-out—to leading charterers in a mix of long, medium and short-term time charters, depending on the vessels’positions, seasonality and market outlook. This chartering strategy is intended to allow us to capture increased profits during strong charter markets, while developing relatively stable cash flows from longer-term time charters. We will also seek profit sharing arrangements in our employment contracts, to provide us with potential incremental revenue above the contracted minimum charter rates.

Using Navios Tankers Management Inc.’s (the “Manager”) global network of relationships and extensive experience in the maritime transportation industry, coupled with its commercial, financial and operational expertise, we plan to opportunistically grow our fleet through the timely and selective acquisition of high-quality newbuilding or secondhand vessels when we believe those acquisitions will result in attractive returns on invested capital and increased cash flow. We also intend to engage in opportunistic dispositions where we can achieve attractive values for our vessels as we assess the market cycle. We believe our diverse and versatile fleet, combined with the experience and long-standing relationships of Manager’s with participants in the maritime transportation industry, position us to identify and take advantage of attractive acquisition opportunities.

Factors Affecting Navios Acquisition’s Results of Operations

We believe the principal factors that will affect our future results of operations are the economic, regulatory, political and governmental conditions that affect the shipping industry generally and that affect conditions in countries and markets in which our vessels engage in business. Other key factors that will be fundamental to our business, future financial condition and results of operations include:

•

the demand for seaborne transportation services;

•

the ability of Manager’s commercial and chartering operations to successfully employ our vessels at economically attractive rates, particularly as our fleet expands and our charters expire;

•

the effective and efficient technical management of our vessels;

•

the Manager’s ability to satisfy technical, health, safety and compliance standards of major commodity traders; and

•

the strength of and growth in the number of our customer relationships, especially with major commodity traders.

In addition to the factors discussed above, we believe certain specific factors will impact our consolidated results of operations. These factors include:

•

the charter hire earned by our vessels under our charters;

•

our access to capital required to acquire additional vessels and/or to implement our business strategy;

•

our ability to sell vessels at prices we deem satisfactory;

•

our level of debt and the related interest expense and amortization of principal;

•

the level of any dividend to our stockholders; and

•

the recent global outbreak of novel coronavirus disease (COVID-19) or other epidemics or pandemics.

Voyage, Time Charter and Pooling Arrangements

Revenues are driven primarily by the number of vessels in the fleet, the number of days during which such vessels operate and the amount of daily charter hire rates that the vessels earn under charters, which, in turn, are affected by a number of factors, including:

•

the duration of the charters;

•

the level of spot market rates at the time of charters;

•

decisions relating to vessel acquisitions and disposals;

•

the amount of time spent positioning vessels;

•

the amount of time that vessels spend in dry dock undergoing repairs and upgrades;

•

the age, condition and specifications of the vessels; and

•

the aggregate level of supply and demand in the tanker shipping industry.

Time charters are available for varying periods, ranging from a single trip (spot charter) to long-term which may be many years. In general, a long-term time charter assures the vessel owner of a consistent stream of revenue. Operating the vessel in the spot market affords the owner greater spot market opportunity, which may result in high rates when vessels are in high demand or low rates when vessel availability exceeds demand. Vessel charter rates are affected by world economics, international events, weather conditions, strikes, governmental policies, supply and demand, and many other factors that might be beyond the control of management.

The cost to maintain and operate a vessel increases with the age of the vessel. Older vessels are less fuel efficient, cost more to insure and require upgrades from time to time to comply with new regulations. AsThe ~~of December 2, 2020, the~~ average age of Navios Acquisition’s owned fleet ~~was~~is currently 9.3 4 years. But, as such fleet ages or if Navios Acquisition expands its fleet by acquiring previously owned and older vessels the cost per vessel would be expected to rise and, assuming all else, including rates, remains constant, vessel profitability would be expected to decrease.

Navios Acquisition reports financial information and evaluates its operations by charter revenues. Navios Acquisition does not use discrete financial information to evaluate operating results for each type of charter. As a result, management reviews operating results solely by revenue per day and operating results of the fleet and thus Navios Acquisition has determined that it operates under one reportable segment.

Set forth below are selected historical and statistical data for Navios Acquisition for each of the three ~~and~~ ~~nine~~ month periods ended ~~September~~ March 3031, ~~2020~~2021 and ~~2019~~2020 that the Company believes may be useful in better understanding the Company’s financial position and results of operations.

	Three month period endedSeptember 30,						Nine month period endedSeptember 30,
	Three month period endedMarch 31,
	2020(unaudited)			2019(unaudited)			2020(unaudited)			2019(unaudited)
	2021			2020
FLEET DATA
	(unaudited)			(unaudited)
Available days(1)		4,520			3,491			12,134			10,678
FLEET DATA
Operating days(2)		4,477			3,472			12,036			10,642
Available days(1)		4,493			3,755
Fleet utilization(3)		99.1	%		99.4	%		99.2	%		99.7	%
Operating days(2)		4,421			3,730
Vessels operating at period end		50			39			50			39
Fleet utilization(3)		98.4	%		99.3	%
AVERAGE DAILY RESULTS
Vessels operating at period end		49			43
Time charter equivalent rate per day(4)	$	16,870		$	15,349		$	22,812		$	16,888
AVERAGE DAILY RESULTS
Time charter equivalent rate per day(4)	$	14,854		$	24,442

Navios Acquisition believes that the important measures for analyzing trends in its results of operations consist of the following:

(1)

Available days: Available days for the fleet are total calendar days the vessels were in Navios Acquisition’s possession for the relevant period after subtracting off-hire days associated with major repairs, drydocking or special surveys. The shipping industry uses available days to measure the number of days in a relevant period during which vessels should be capable of generating revenues.

(2)	Operating days: Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances.

(3)	Fleet utilization: Fleet utilization is the percentage of time that Navios Acquisition’s vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period.

(4) ~~TCE~~Time ~~Rate~~charter equivalent rate per day: Time charter equivalent rate per day (“TCE Rate”) is defined as voyage and time charter revenues less voyage expenses during a period divided by the number of available days during the period. The TCE Rate per day is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels of various types of charter contracts for the number of available days of the fleet.

Period-over-Period Comparisons

~~For~~The ~~the~~ Three Month Period ended ~~September~~March 3031, ~~2020~~2021 compared to the Three Month Period ended ~~September~~March 3031, ~~2019~~2020

The following table presents consolidated revenue and expense information for the three month periods ended ~~September~~March 3031, ~~2020~~2021 and ~~2019~~2020. This information ~~was~~ was derived from the unaudited ~~condensed~~ consolidated statements of ~~operations~~income of Navios Acquisition for the respective periods.


	For the Three Months			For the Three Months
	Ended			Ended
	March 31, 2021			March 31, 2020
	(unaudited)			(unaudited)
Revenue	$	72,505		$	97,857
Time charter and voyage expenses		(5,769	)		(6,082	)
Direct vessel expenses		(4,003	)		(3,140	)
Vessel operating expenses (management fees entirely through related party transactions)		(32,522	)		(29,837	)
General and administrative expenses		(5,057	)		(3,954	)
Depreciation and amortization		(16,625	)		(16,606	)
Interest income		3			3
Interest expenses and finance cost		(18,307	)		(21,843	)
Gain on sale of vessel and Impairment loss		15			(13,900	)
Other income		774			—
Other expense		(717	)		(1,629	)

Net (loss)/ income	$	(9,703	)	$	869

Revenue: Revenue for the three month period ended March 31, 2021 decreased by $25.4 million, or 25.9%, to $72.5 million, as compared to $97.9 million for the same period of 2020. The decrease was mainly attributable to a decrease in market rates during the three month period ended March 31, 2021 as compared to the same period of 2020; partially mitigated by an increase in revenue by $9.5 million due to the acquisition of seven containerships from Navios Europe II in June 2020 and the delivery of two bareboat charter-in vessels, one in each of October 2020 and February 2021. Available days of the fleet increased to 4,493 days for the three month period ended March 31, 2021, as compared to 3,755 days for the three month period ended March 31, 2020, mainly due to the reasons mentioned above. The time charter equivalent rate, or TCE Rate per day, decreased to $14,854 for the three month period ended March 31, 2021, from $24,442 for the three month period ended March 31, 2020.

Time charter and voyage expenses: Time charter and voyage expenses for the three month period ended March 31, 2021 decreased by $0.3 million, or 4.9%, to $5.8 million, as compared to $6.1 million for the same period of 2020. The decrease was mainly attributable to a: (i) $2.4 million decrease in bunkers and voyage expenses related to the spot voyages incurred in the period; (ii) $0.5 decrease in port expenses; and (iii) $0.3 million decrease in brokers’ commission costs; partially mitigated by a $2.9 million increase in charter-in expenses.

Direct vessel expenses: Direct vessel expenses, comprised of the amortization of dry dock and special survey costs, of certain vessels of our fleet amounted to $4.0 million for the three month period ended March 31, 2021, as compared to $3.1 million for the three month period ended March 31, 2020.

Vessel operating expenses (management fees): Vessel operating expenses amounted to $32.5 million for the three month period ended March 31, 2021, as compared to $29.8 million for the three month period ended March 31, 2020. The increase was primarily due to the increase in the size of our fleet as discussed above. Please see Related Party Transactions for discussion on the management fees.

General and administrative expenses: Total general and administrative expenses for the three month period ended March 31, 2021 increased by $1.1 million to $5.1 million compared to $4.0 million for the three month period ended March 31, 2020, mainly due to the increase in legal and professional fees. For the three month periods ended March 31, 2021 and 2020, the expenses charged by the Manager for administrative services were $3.7 million and $3.0 million, respectively.

Depreciation and amortization: Depreciation and amortization amounted to $16.6 million for the three month period ended March 31, 2021 and March 31, 2020, respectively. Depreciation of a vessel is calculated using an estimated useful life of 25 years from the date the vessel was originally delivered from the shipyard.

Interest expense and finance cost: Interest expense and finance cost for the three month period ended March 31, 2021 decreased by $3.5 million to $18.3 million, as compared to $21.8 million for the three month period ended March 31, 2020. The decrease was mainly due to the decrease in interest expense attributable to the repurchase of the 2021 Notes (as defined herein) and the decrease in the average outstanding balances of our credit facilities and sale and leaseback agreements. The weighted average interest rate for the three month period ended March 31, 2021 to 6.18% compared to 6.81% in the same period in 2020 and the decrease of the average outstanding balance. The average outstanding balance of our credit facilities (other than the 2021 Notes, as defined in “Long-Term Debt Obligations and Credit Arrangements – Ship Mortgage Notes”) decreased to $496.9 million for the three month period ended March 31, 2021 as compared to $521.5 million for the three month period ended March 31, 2020. As of March 31, 2021 and 2020, the outstanding balance under Navios Acquisition’s total borrowings was $1,058 million and $1,174 million, respectively.

Expressed in thousands of U.S. dollars	Three Month periodEnded September 30, 2020(unaudited)			Three Month periodEnded September 30, 2019(unaudited)
Revenue	$	78,807		$	58,965
Time charter and voyage expenses		(2,559	)		(5,377	)
Direct vessel expenses		(3,766	)		(2,439	)
Vessel operating expenses (management fees entirely through related party transactions)		(33,969	)		(26,837	)
General and administrative expenses		(4,719	)		(3,732	)
Depreciation and amortization		(16,682	)		(17,216	)
Impairment loss		—			(39,976	)
Gain on debt repurchase		7,010			—
Interest income		25			2,384
Interest expense and finance cost		(20,441	)		(22,849	)
Equity in net earnings of affiliated companies		—			936
Other income		—			10
Other expense		(470	)		(265	)
Net income/ (loss)	$	3,236		$	(56,396	)

Gain on sale of vessels and Impairment loss: There was no gain or loss on sale of vessels and Impairment loss for the three month period ended March 31, 2021 as compared to $13.9 million for the three month period ended March 30, 2020. For the three month period ended March 31, 2021, there was $1.7 million gain on sale of two containership vessels, Solstice N and Allegro N that was mitigated by a $1.7 million loss on sale of vessel Nave Celeste for the three month period ended March 31, 2021. The gain on sale of vessels and impairment loss for the three month period ended March 31, 2020 resulted from $13.9 million related to the other-than-temporary impairment recognized in the Navios Acquisition’s receivable from Navios Europe II.

~~Revenue~~Other income: ~~Revenue~~Other income for the three month period ended ~~September~~March 3031, ~~2020~~2021 ~~increased~~was by $190.8 million~~, or 33~~.~~6%,~~ toFor ~~$78.8 million, as compared to $59.0 million for~~ the ~~same~~ comparative period of ~~2019.~~2020 ~~The~~other ~~increase~~income was ~~mainly attributable to an: (i) increase in revenue by~~ $6.0 million ~~due to the acquisition of five product tankers from Navios Europe I in December 2019 and by $5~~.~~2 million~~ due to the acquisition of seven containers from Navios Europe II in June 2020; and (ii) increase in market rates during the three month period ended September 30, 2020 as compared to the same period of 2019; partially mitigated by the sale of three VLCCs in 2019. Available days of the fleet increased to 4,520 days for the three month period ended September 30, 2020, as compared to 3,491 days for the three month period ended September 30, 2019, due to the reasons mentioned above. The time charter equivalent rate, or TCE Rate, increased to $16,870 for the three month period ended September 30, 2020, from $15,349 for the three month period ended September 30, 2019.

~~Time~~Other ~~charter and voyage expenses~~expense: ~~Time~~ ~~charter~~Other ~~and~~expense ~~voyage expenses~~ for the three month period ended ~~September~~March 3031, ~~2020~~2021 ~~decreased~~was by $20.87 million~~, or 51~~.~~9%,~~ toFor ~~$2.6 million, as compared to $5.4 million for~~ the ~~same~~comparative period of ~~2019.~~2020 ~~The~~other ~~decrease~~expense was ~~mainly attributable to a~~ $3.1 ~~million decrease in bunkers consumption and voyage expenses related to the spot voyages incurred in the period; partially mitigated by a $0~~.36 million ~~increase in brokers’commission~~.

~~Direct~~Liquidity ~~vessel expenses: Direct vessel expenses, comprised of the amortization of dry dock~~ and ~~special survey costs, of~~ ~~certain~~Capital ~~vessels~~Resources ~~of our fleet amounted to $3.8 million for the three month period ended September 30, 2020, as compared to $2.4 million for the three month period ended September 30, 2019.~~

~~Vessel~~Our ~~operating~~primary ~~expenses~~short-term ~~(management~~liquidity ~~fees): Vessel~~needs ~~operating~~are ~~expenses~~to ~~amounted~~fund togeneral ~~$34.0 million~~working ~~for~~capital ~~the~~requirements, ~~three~~dry ~~month~~docking expenditures, ~~period~~minimum ~~ended~~cash ~~September 30~~balance maintenance as per our credit facility agreements and debt repayment, ~~2020~~and other obligations from time to time, aswhile ~~compared~~our long-term liquidity needs primarily relate to ~~$26.8 million~~expansion ~~for~~and ~~the~~investment ~~three~~capital ~~month~~expenditures ~~period~~and ~~ended~~other maintenance ~~September 30,~~capital ~~2019~~expenditures and debt repayment. ~~The~~Expansion ~~increase~~capital ~~was~~expenditures ~~mainly~~are asprimarily afor ~~result~~the purchase or construction of vessels to the ~~acquisition~~extent ofthe ~~five~~expenditures ~~product~~increase ~~tankers~~the operating capacity of ~~Navios~~or ~~Europe~~revenue Igenerated inby ~~December~~our ~~2019~~fleet, ~~and~~while ~~seven~~maintenance ~~containers~~capital expenditures primarily consist of ~~Navios~~dry ~~Europe~~docking IIexpenditures inand ~~June~~expenditures ~~2020;~~to ~~partially~~replace ~~mitigated~~vessels byin order to maintain the ~~sale~~operating capacity of ~~three~~or ~~VLCCs~~revenue ingenerated ~~2019~~by our fleet. ~~Please~~We ~~see~~anticipate ~~Related~~that ~~Party~~our ~~Transactions~~primary sources of funds for our ~~discussion~~short-term onliquidity ~~the~~needs ~~vessel~~will ~~operating~~be ~~expenses~~cash ~~(management~~flows ~~fees)~~from operations, long-term borrowings and proceeds from asset sales.

~~General~~Going ~~and~~Concern administrative expenses: Total general and administrative expenses for the three month period ended September 30, 2020 increased by $1.0 million to $4.7 million compared to $3.7 million for the three month period ended September 30, 2019, mainly as a result of the acquisition of five product tankers from Navios Europe I in December 2019 and seven containers from Navios Europe II in June 2020; partially mitigated by the sale of three VLCCs in 2019. For the three month periods ended September 30, 2020 and 2019, the expenses charged by the Manager for administrative services were $3.5 million and $2.8 million, respectively.

~~Depreciation~~As ~~and~~of ~~amortization:~~March 31, ~~Depreciation~~2021, ~~and amortization~~Navios ~~amounted~~Acquisition’s tocurrent assets totaled $16125.7 million ~~for the three month period ended September 30~~, ~~2020,~~while ascurrent ~~compared~~liabilities to totaled $17762.26 million, ~~for~~resulting ~~the~~in ~~three~~a ~~month~~negative ~~period~~working ~~ended~~capital ~~September~~position of $636.8 30million, ~~2019,~~primarily ~~mainly~~related ~~due~~ to the ~~sale~~classification ofas ~~three~~current ~~VLCCs~~of ~~in 2019; partially mitigated by~~ the ~~acquisition~~$602.6 million of ~~five~~2021 ~~product~~Notes ~~tankers~~(as ofdefined ~~Navios~~herein) ~~Europe~~which Imature inon ~~December.~~November 15, ~~Depreciation~~2021, balloon ofpayments adue ~~vessel~~under isits ~~calculated~~credit ~~using~~facilities anand ~~estimated~~financial ~~useful~~liabilities ~~life~~under ~~of 25 years from~~ the ~~date~~sale ~~the~~and ~~vessel~~leaseback ~~was originally delivered from the shipyard~~transactions.

During the second quarter of 2021, Navios Acquisition sold the Acrux N, the Vita N, the Ete N, the Fleur N, the Spectrum N, and the Nave Neutrino for an aggregate net sale price of $98.0 million.

In addition, during the first quarter of 2021, Navios Acquisition entered into a secured loan agreement with a subsidiary of N Shipmanagement Acquisition Corp., an entity affiliated with Navios Acquisition’s Chairman and Chief Executive Officer, for a loan of up to $100.0 million to be used for general corporate purposes.

The Company intends to fund its working capital requirements and capital commitments via cash at hand, cash flows from operations, long term borrowings, proceeds from its on-going continuous offering program and other equity offerings, and proceeds from sale of assets.

Although the Company is currently attempting to refinance the outstanding amount of its 2021 Notes and has also engaged in discussions with the holders of its 2021 Notes, the successful completion of the attempts described above, including potential refinancing, sales or other action, are dependent on factors outside the Company’s control and therefore there is substantial doubt over the Company’s ability to continue as a going concern for the 12-month period from the date its interim condensed consolidated financial statements were issued. In the meantime, Navios Acquisition’s internal forecasts and projections indicate that the Company will generate sufficient cash to make the required principal and interest payments on its borrowings (excluding the above upcoming maturities) and provide for the normal working capital requirements of the business for a period of at least 12 months from the date of issuance of these consolidated financial statements. The interim condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

In February 2018, the Board of Directors of Navios Acquisition authorized a stock repurchase program for up to $25.0 million of Navios Acquisition’s common stock, for two years. Stock repurchases were made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program were determined by management based upon market conditions and other factors. Repurchases were made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program did not require any minimum repurchase or any specific number or amount of shares of common stock and was suspended or reinstated at any time in Navios Acquisition’s discretion and without notice. Repurchases were subject to restrictions under Navios Acquisition’s credit facilities and indenture. Up to the expiration of the stock repurchase program in February 2020, Navios Acquisition had repurchased 735,251 shares since the program was initiated for approximately $7.5 million.

~~Impairment~~On ~~loss:~~November 29, ~~There~~2019, ~~was~~Navios noAcquisition ~~impairment~~entered ~~loss~~into a Continuous Offering Program Sales Agreement for the ~~three~~issuance ~~month~~and ~~period~~sale ~~ended September 30,~~from ~~2020~~time asto ~~compared~~time shares of Navios Acquisition’s common stock having an aggregate offering price of up to $4025.0 million. ~~for~~An ~~the~~amended ~~three~~Sales ~~month~~Agreement ~~period~~was ~~ended~~entered ~~September~~into on December 3023, 2019. As before, ~~that~~the ~~resulted~~Sales ~~from:~~Agreement ~~(i)~~contains, ~~$32.7 million~~among ~~accelerated~~other ~~amortization~~things, ofcustomary ~~intangible~~representations, ~~assets~~warranties inand ~~connection~~covenants ~~with~~by ~~early~~Navios ~~termination~~Acquisition and indemnification obligations of the parties thereto as well as certain ~~contracts;~~termination ~~and~~rights ~~(ii)~~for $7such parties.~~3 million~~ ~~impairment~~As ~~loss~~of June 11, ~~relating~~2021, tosince the ~~sale~~commencement of the ~~Nave~~program, ~~Electron~~Navios asAcquisition ahas ~~result~~issued 1,542,845 shares of ~~the~~common ~~impairment~~stock ~~testing~~and ~~performed~~received net proceeds of $7.3 million.

~~Gain~~Cash onFlow debt repurchase: Gain on debt repurchase for the three month period ended September 30, 2020 was $7.0 million as compared to $0 for the same period in 2019. During the third quarter of 2020, Navios Acquisition repurchased $19.0 million of its ship mortgage notes for a cash consideration of $11.9 million resulting in a gain on bond repurchase of $7.0 million net of deferred fees written-off.

~~Interest~~Cash ~~income: Interest~~flows ~~income~~ for the three month period ended ~~September~~March 3031, ~~2020~~2021 ~~decreased by $2.4 million to $0~~ compared to ~~$2.4 million for~~ the three month period ended ~~September~~March 3031, ~~2019.~~2020:

~~Interest~~The ~~expense~~following ~~and~~table ~~finance~~presents ~~cost:~~cash ~~Interest~~flow ~~expense and finance cost for the three month period ended September 30, 2020~~information ~~decreased by $2.4 million to $20.4 million, as compared to $22.8 million~~ for the three month ~~period~~periods ended ~~September~~March 3031, 2019. The decrease was mainly due to the decrease of the weighted average interest rate for the three month period ended September 30, 2020 to 6.21% as compared to 7.05% in the same period in 2019 and the decrease of the average outstanding balance. The average outstanding balance of our credit facilities (other than the 2021 ~~Notes, as defined in “Long- Term Debt Obligations~~ and ~~Credit Arrangements – Ship Mortgage Notes”) increased to $540.6 million for the three month period ended September 30,~~ 2020 ~~as compared to $ 537~~.~~1 million~~ for the three month period ended September 30, 2019. As of September 30, 2020 and 2019, the outstanding balance under Navios Acquisition’s total borrowings was $1,140.2 million and $1,237.7 million, respectively.

Equity in net earnings of affiliated companies: Equity in net earnings of affiliated companies for the three month period ended September 30, 2020 amounted to $0 as compared to $0.9 million for the three month period ended September 30, 2019 which related to income recognized for Navios Europe I and Navios Europe II.


	Three month period ended			Three month period ended
	March 31, 2021			March 31, 2020
	(unaudited)			(unaudited)
Expressed in thousands of U.S. dollars
Net cash provided by operating activities	$	4,909		$	30,517
Net cash provided by/ (used in) investing activities		45,380			(5,882	)
Net cash used in financing activities		(44,997	)		(17,618	)

Net increase in cash, cash equivalents and restricted cash	$	5,292		$	7,017
Cash, cash equivalents and restricted cash, beginning of period		41,357			44,051

Cash, cash equivalents and restricted cash, end of period	$	46,649		$	51,068

~~Other~~Cash ~~income:~~provided ~~Other~~by ~~income~~operating ~~was~~activities $0 for ~~each of~~ the three month ~~periods~~period ended ~~September~~March 3031, ~~2020~~2021 ~~and~~as ~~2019.~~compared to the three month period ended March 31, 2020:

~~Other~~Net ~~expense:~~cash ~~Other~~provided ~~expense~~by ~~for~~operating ~~the~~activities ~~three~~decreased ~~month~~by $25.6 million to $4.9 million for the period ended ~~September~~March 3031, ~~2020~~2021 ~~was~~as compared to $030.5 million. ~~For~~for the ~~comparative~~ period ofended ~~2019~~March 31, ~~other~~2020. ~~expense~~The ~~was~~decrease ~~$0.3 million.~~is analyzed as follows:

~~For~~The net loss for the ~~Nine~~three ~~Month~~month ~~Period~~period ended ~~September~~March 3031, ~~2020~~2021 was $9.7 million compared to net income of $0.9 million for the three ~~Nine~~month ~~Month~~period ~~Period~~ended March 31, 2020. In determining net cash provided by operating activities for the three month period ended March 31, 2021, the net loss was adjusted for the effect of depreciation and amortization of ~~September~~$16.6 30million, ~~2019~~$3.9 million for the amortization of drydock and special survey costs, $1.2 million for amortization and write-off of deferred finance fees and bond premium, and $0.1 million for stock based compensation.

The ~~following~~net ~~table~~cash ~~presents~~outflow ~~consolidated~~resulting ~~revenue~~from the change in operating assets, liabilities and ~~expense~~payments ~~information~~for drydock and special survey costs of $7.2 million for the ~~nine~~three month ~~periods~~period ended ~~September~~March 3031, 2021 mainly resulted from a (i) $5.0 million decrease in the balance due to related parties; (ii) a $4.6 million increase in prepaid ~~2020~~expenses; ~~and~~(iii) ~~2019~~$4.4 million ~~This~~decrease ~~information~~in ~~was~~deferred ~~derived~~revenue; ~~from~~(iv) ~~the~~$3.1 million ~~unaudited~~increase ~~condensed~~in ~~consolidated~~the ~~statements~~balance ofdue ~~operations~~from ofrelated ~~Navios~~parties; ~~Acquisition~~(v) $2.5 million payment for ~~the~~drydock ~~respective~~and ~~periods~~special survey costs; (vi) $1.2 million increase in other long-term assets; (vii) $0.6 million decrease in accounts payable; and (viii) $0.1 million decrease in operating lease liabilities short and long-term. These were partially offset by a: (i) $10.6 million increase in accrued expenses; (ii) $1.9 million decrease in accounts receivable; and (iii) $1.8 million decrease in inventories.

Expressed in thousands of U.S. dollars	Nine Month periodEnded September 30, 2020(unaudited)			Nine Month periodEnded September 30, 2019(unaudited)
Revenue	$	288,888		$	194,669
Time charter and voyage expenses		(12,091	)		(14,340	)
Direct vessel expenses		(10,371	)		(7,117	)
Vessel operating expenses (management fees entirely through related party transactions)		(93,642	)		(81,224	)
General and administrative expenses		(14,966	)		(15,677	)
Depreciation and amortization		(49,931	)		(52,257	)
Gain on sale of vessels/ Impairment loss		—			(36,731	)
Gain on debt repurchase		7,010			—
Interest income		32			6,840
Interest expense and finance cost		(63,964	)		(69,474	)
Impairment of receivable in affiliated company / Equity in net earnings of affiliated companies		(13,900	)		2,670
Other income		—			1,343
Other expense		(1,943	)		(787	)
Net income/ (loss)	$	35,122		$	(72,085	)

In determining net cash provided by operating activities for the three month period ended March 31, 2020, the net income was adjusted for the effect of: (i) depreciation and amortization of $16.6 million; (ii) $13.9 million impairment of receivable in affiliated company; (iii) $2.9 million for the amortization of drydock and special survey costs; (iv) $1.5 million for amortization and write-off of deferred finance fees and bond premium; (v) $0.1 million for stock based compensation.

~~Revenue:~~The ~~Revenue~~net ~~for~~cash ~~the~~inflow ~~nine~~resulting ~~month~~from ~~period~~the ~~ended~~change ~~September 30,~~in ~~2020~~operating ~~increased~~assets, byliabilities and ~~$94.2 million,~~payments orfor ~~48.4%,~~drydock toand ~~$288.9 million,~~special assurvey ~~compared~~costs toof $~~194~~5.73 million for the ~~same~~three month period ofended ~~2019.~~March 31, ~~The~~2020 ~~increase was~~ mainly ~~attributable~~resulted ~~to an~~from: (i) $11.7 million increase in ~~revenue~~accrued byexpenses; (ii) $2211.96 million ~~due~~decrease toin ~~the~~accounts receivable; ~~acquisition~~(iii) of$2.0 million ~~five product~~increase ~~tankers~~in ~~from~~deferred ~~Navios~~revenue; ~~Europe~~(iv) I$1.2 million decrease in ~~December~~inventories; ~~2019~~ and by(v) $51.2 million ~~due~~decrease toin ~~the~~prepaid ~~acquisition~~expenses. ofThese ~~seven~~were ~~containers~~partially ~~from~~offset ~~Navios~~by ~~Europe~~a: II(i) in$14.9 million ~~June~~payment ~~2020;~~for drydock and special survey costs; (ii) ~~increase~~a in$13.7 million ~~market~~decrease ~~rates~~in ~~during~~ the ~~nine~~balance ~~month~~due ~~period ended September 30, 2020 as compared~~ to ~~the~~related ~~same period of 2019~~parties; ~~partially~~and ~~mitigated~~(iii) by$4.4 million ~~the~~decrease ~~sale of three VLCCs~~ in ~~2019~~accounts payable.

Cash provided by/ (used in) investing activities for the three month period ended March 31, 2021 as compared to the three month period ended

March 31, 2020:

Net cash provided by/ (used in) investing activities increased by $51.3 million to $45.4 million inflow for the three month period ended March 31, 2021 from $5.9 million outflow for the three month period ended March 31, 2020.

~~Available~~Net ~~days~~cash ofprovided ~~the~~by ~~fleet~~investing ~~increased~~activities ~~to 12,134 days~~ for the ~~nine~~three month period ended ~~September~~March 3031, ~~2020~~ 2021, asresulted ~~compared~~from ~~to 10,678~~$48.1 ~~days~~million ~~for~~net ~~the~~cash ~~nine~~proceeds ~~month~~from ~~period~~sale ~~ended September 30,~~of ~~2019~~vessels, ~~due~~partially tooffset ~~the~~by ~~reasons mentioned above. The TCE Rate increased to~~ $~~22,812 for the nine month period ended September~~2.7 ~~30,~~million ~~2020, from $16,888~~ for ~~the~~vessels ~~nine month period ended September 30, 2019~~improvements.

~~Time~~Net ~~charter~~cash ~~and~~used ~~voyage~~in ~~expenses: Time~~investing ~~charter~~activities ~~and voyage expenses~~ for the ~~nine~~three month period ended ~~September~~March 3031, 2020 ~~decreased by $2.2 million~~, orresulted ~~15.4%,~~from to $125.19 million, asfrom ~~compared to $14.3 million for the same period of 2019. The decrease was mainly attributable to a $4.6 million decrease in bunkers consumption and voyage expenses related~~vessels ~~to the spot voyages incurred in the period; partially mitigated by a: (i) $1~~improvements.~~6 million~~ ~~increase in port expenses; and (ii) $0.8 million increase in brokers’commission.~~

~~Direct~~Cash ~~vessel~~used ~~expenses: Direct~~in ~~vessel~~financing ~~expenses,~~activities ~~comprising of the amortization of dry dock and special survey costs of certain vessels of our fleet, amounted to $10.4 million~~ for the ~~nine~~three month period ended ~~September~~March 3031, ~~2020,~~2021 as compared to ~~$7.1 million for~~ the ~~nine~~three month period ended ~~September~~ March 3031, ~~2019.~~2020:

~~Vessel~~Net ~~operating~~cash ~~expenses~~used ~~(management~~in ~~fees): Vessel~~financing ~~operating~~activities ~~expenses for the nine month period ended September 30, 2020~~ increased by $1227.4 million to $9345.60 million, ~~as compared to $81.2 million~~ for the ~~nine~~ three month period ended ~~September~~March 3031, ~~2019.~~2021 ~~The increase was mainly as a result of the acquisition of five product tankers~~ from ~~Navios~~$17.6 million ~~Europe I~~for ~~in December 2019 and~~ the ~~acquisition~~three ofmonth ~~seven~~period ~~containers~~ended ~~from~~March 31, ~~Navios Europe II in June~~ 2020~~; partially mitigated by the sale of three VLCCs in 2019~~. ~~Please see Related Party Transactions for discussion on the vessel operating expenses (management fees).~~

~~General~~Net ~~and~~cash ~~administrative~~used ~~expenses: Total~~in financing ~~general~~activities ~~and administrative expenses~~ for the ~~nine~~three month period ended ~~September~~ March 3031, ~~2020~~2021 ~~decreased~~resulted byfrom: ~~$0.7 million~~(i) to $1561.0 million ~~compared~~of toloan repayments; (ii) $151.72 million ~~for~~of ~~the~~debt ~~nine~~issuance ~~month~~costs; ~~period ended September 30, 2019, mainly due to the decrease in legal~~ and ~~professional~~(iii) ~~fees~~$0. ~~For the nine month periods ended September~~8 ~~30,~~million ~~2020~~of ~~and~~dividends ~~2019,~~paid; ~~the~~as ~~expenses~~partially ~~charged~~ mitigated by ~~the Manager for administrative services were~~ $1018.0 million ~~and~~from ~~$8.3 million,~~loan ~~respectively~~proceeds from an affiliate company.

~~Depreciation~~Net ~~and~~cash ~~amortization: Depreciation~~used ~~decreased~~in byfinancing ~~$2.4 million~~activities ~~to $49.9 million~~ for the ~~nine~~three month period ended ~~September~~March 3031, 2020 asresulted ~~compared~~from: to(i) $5213.32 million ~~for~~of ~~the~~loan ~~nine~~repayments; ~~month~~and ~~period~~(ii) ~~ended~~$4.8 million ~~September 30, 2019, mainly due to the sale~~ of ~~three~~dividends ~~VLCCs in 2019~~paid; as partially mitigated by ~~the~~$0.3 million ~~acquisition of five product tankers of Navios Europe I~~ in ~~December~~ ~~2019.~~equity ~~Depreciation~~offering ofproceeds, anet ~~vessel is calculated using an estimated useful life~~ of 25deferred ~~years~~finance ~~from the date the vessel was originally delivered from the shipyard~~fees.

Gain on sale of vessels/ Impairment loss: There was no gain on sale of vessel/ Impairment loss for the nine month period ended September 30, 2020 as compared to a $36.7 million for the nine month period ended September 30, 2019 , that resulted from: (i) $32.7 million accelerated amortization of intangible assets in connection with early termination of certain contracts; and (ii) $7.3 million impairment loss relating to the sale of the Nave Electron as a result of the impairment testing performed; partially mitigated by a $3.2 million gain on sale of vessel for the nine month period ended September 30, 2019.

Gain on debt repurchase: Gain on debt repurchase for the nine month period ended September 30, 2020 was $7.0 million as compared to $0 for the same period in 2019. During the nine month period ended September 30, 2020, Navios Acquisition repurchased $19.0 million of its ship mortgage notes for a cash consideration of $11.9 million resulting in a gain on bond repurchase of $7.0 million net of deferred fees written-off.

Interest income: Interest income for the nine month period ended September 30, 2020 decreased by $6.8 million to $0, as compared to $6.8 million for the nine month period ended September 30, 2019.

Interest expense and finance cost: Interest expense and finance cost for the nine month period ended September 30, 2020 decreased by $5.5 million to $64.0 million, as compared to $69.5 million for the nine month period ended September 30, 2019. The decrease was mainly due to the decrease of the weighted average interest rate for the nine month period ended September 30, 2020 to 6.48% compared to 7.17% in the same period in 2019 and the decrease of the average outstanding balance. The average outstanding balance of our credit facilities (other than the 2021 Notes, as defined in “Long-Term Debt Obligations and Credit Arrangements – Ship Mortgage Notes”) decreased to $525.8 million for the nine month period ended September 30, 2020 as compared to $541.3 million for the nine month period ended September 30, 2019. As of September 30, 2020 and 2019, the outstanding balance under Navios Acquisition’s total borrowings was $1,140.2 million and $1,237.7 million, respectively.

Impairment of receivable in affiliated company / Equity in net earnings of affiliated companies: Impairment of receivable in affiliated companies for the nine month period ended September 30, 2020 amounted to $13.9 million and related to the other-than-temporary impairment recognized in the Navios Acquisition’s receivable from Navios Europe II. Equity in net earnings of affiliated companies for the nine month period ended September 30, 2019 amounted to $2.7 million which related to income recognized for Navios Europe I and Navios Europe II.

Other income: Other income for the nine month period ended September 30, 2020 was $0 as compared to $1.3 million for the same period in 2019.

Other expense: Other expense for the nine month period ended September 30, 2020 was $1.9 million as compared to $0.8 million for the same period in 2019.

Liquidity and Capital Resources

Our primary short-term liquidity needs are to fund general working capital requirements, dry docking expenditures, minimum cash balance maintenance as per our credit facility agreements and debt repayment, and other obligations from time to time, while our long-term liquidity needs primarily relate to expansion and investment capital expenditures and other maintenance capital expenditures and debt repayment. Expansion capital expenditures are primarily for the purchase or construction of vessels to the extent the expenditures increase the operating capacity of or revenue generated by our fleet, while maintenance capital expenditures primarily consist of dry docking expenditures and expenditures to replace vessels in order to maintain the operating capacity of or revenue generated by our fleet. We anticipate that our primary sources of funds for our short-term liquidity needs will be cash flows from operations, long-term borrowings and proceeds from asset sales. As of September 30, 2020, Navios Acquisition’s current assets totaled $174.4 million, while current liabilities totaled $170.0 million, resulting in a positive working capital position of $4.4 million. Navios Acquisition’s cash forecast indicates that it will generate sufficient cash for at least the next 12 months following December 4, 2020 to make the required principal and interest payments on its indebtedness and provide for the normal working capital requirements. Generally, our long-term sources of funds derive from cash from operations, long-term bank borrowings and other debt or equity financings. We expect that we will rely upon cash from operations and upon external financing sources, including bank borrowings, to fund acquisitions, expansion and investment capital expenditures and other commitments we have entered into. We cannot assure you that we will be able to secure adequate financing or obtaining additional funds on favorable terms, to meet our liquidity needs.

Navios Acquisition may use funds to repurchase its outstanding capital stock and/or indebtedness from time to time. Repurchases may be made in the open market, or through privately negotiated transactions or otherwise, in compliance with applicable laws, rules and regulations, at prices and on terms Navios Acquisition deems appropriate and subject to its cash requirements for other purposes, compliance with the covenants under Navios Acquisition’s debt agreements, and other factors management deems relevant.

In the fourth quarter of 2019, Navios Acquisition repurchased $12.0 million of its 2021 Notes (as defined in “Long-Term Debt Obligations and Credit Arrangements—Ship Mortgage Notes”) from unaffiliated third parties in open market transactions for a cash consideration of $10.0 million. During the third quarter of 2020 and up to December 2, 2020, Navios Acquisition repurchased $55.4 million of its ship mortgage notes for a cash consideration of $39.4 million.

In October 2019, Navios Acquisition completed a registered direct offering of 1,875,000 shares of its common stock at $8.00 per share, raising gross proceeds of $15.0 million. Total net proceeds of the above transactions, net of agents’ costs of $0.7 million and offering costs $0.9 million, amounted to $13.4 million.

On November 29, 2019, Navios Acquisition entered into a Continuous Offering Program Sales Agreement for the issuance and sale from time to time shares of Navios Acquisition’s common stock having an aggregate offering price of up to $25.0 million. An amended Sales Agreement was entered into on December 23, 2019. As before, the Sales Agreement contains, among other things, customary representations, warranties and covenants by Navios Acquisition and indemnification obligations of the parties thereto as well as certain termination rights for such parties. As of December 2, 2020, since the commencement of the program, Navios Acquisition has issued 956,110 shares of common stock and received net proceeds of $5.3 million.

Cash Flow

Cash flows for the nine month period ended September 30, 2020 compared to the nine month period ended September 30, 2019:

The following table presents cash flow information for the nine month periods ended September 30, 2020 and 2019.

	Nine MonthPeriod EndedSeptember 30, 2020(unaudited)			Nine MonthPeriod EndedSeptember 30, 2019(unaudited)
Expressed in thousands of U.S. dollars
Net cash provided by operating activities	$	85,985		$	21,058
Net cash (used in)/ provided by investing activities		(46,408	)		31,343
Net cash (used in)/ provided by financing activities		(23,375	)		3,862
Net increase in cash, cash equivalents and restricted cash	$	16,202		$	56,263
Cash, cash equivalents and restricted cash, beginning of period		44,051			46,609
Cash, cash equivalents and restricted cash, end of period	$	60,253		$	102,872

Cash provided by operating activities for the nine month period ended September 30, 2020 as compared to the nine month period ended September 30, 2019:

Net cash provided by operating activities increased by $64.9 million to $86.0 million for the period ended September 30, 2020 as compared to $21.1 million for the period ended September 30, 2019. The increase is analyzed as follows:

The net income for the nine month period ended September 30, 2020 was $35.1 million compared to net loss of $72.1 million for the nine month period ended September 30, 2019. In determining net cash provided by operating activities for the nine month period ended September 30, 2020, the net income was adjusted for the effect of depreciation and amortization of $49.9 million, $13.9 million impairment of receivable in affiliated company, $9.8 million for the amortization of drydock and special survey costs, $7.0 million for gain on debt repurchase, $4.4 million for amortization and write-off of deferred finance fees and bond premium and $0.4 million for stock based compensation.

The net cash inflow resulting from the change in operating assets, liabilities and payments for drydock and special survey costs of $20.5 million for the nine month period ended September 30, 2020 mainly resulted from a $5.3 million increase in deferred revenue, a $20.2 million decrease in accounts receivable, a $3.9 million decrease in prepaid expense, a $0.6 million decrease in inventories and an $11.5 million increase in accrued expenses. These were partially offset by a $30.9 million payment for drydock and special survey costs, a $20.1 million decrease in the balance due to related parties short-term, an $8.0 million decrease in accounts payable, a $0.6 million increase in other long term assets and a $2.4 million increase in the balance due from related parties, short- term.

In determining net cash provided by operating activities for the nine month period ended September 30, 2019, the net loss was adjusted for the effect of depreciation and amortization of $52.3 million, $36.7 million for gain on sale of vessels and impairment loss, $7.1 million for the amortization of drydock and special survey costs, $3.3 million for amortization and write-off of deferred finance fees and bond premium, $2.7 million for equity in net earnings of affiliated companies, net of dividends received and $0.7 million for stock based compensation.

The net cash outflow resulting from the change in operating assets, liabilities and payments for drydock and special survey costs of $4.3 million for the nine month period ended September 30, 2019 mainly resulted from a $6.4 million increase in the balance due from related parties, short-term, a $17.1 million decrease in the balance due to related parties, a $6.8 million payment for drydock and special survey costs, a $1.7 million decrease in deferred revenue and a $0.7 million decrease in accounts payable. These were partially offset by a $12.0 million increase in accrued expenses, an $11.9 million decrease in accounts receivable, a $2.9 million decrease in the balance due from related parties, long-term and a $1.6 million decrease in prepaid expenses.

Cash (used in)/ provided by investing activities for the nine month period ended September 30, 2020 as compared to the nine month period ended September 30, 2019:

Net cash (used in)/ provided by investing activities decreased by $77.7 million to $46.4 million outflow for the nine month period ended September 30, 2020 from $31.3 million inflow for the nine month period ended September 30, 2019.

Net cash used in investing activities for the nine month period ended September 30, 2020, resulted from $46.4 million from the acquisition of seven containers from Navios Europe II in June 2020 and vessels improvements.

Net cash provided by investing activities for the nine month period ended September 30, 2019, resulted from $46.4 million net proceeds from sale of vessel; partially mitigated by: (i) $13.1 million from vessels additions; and (ii) $2.0 million from loans to affiliates.

Cash (used in)/ provided by financing activities for the nine month period ended September 30, 2020 as compared to the nine month period ended September 30, 2019:

Net cash (used in)/ provided by financing activities decreased by $27.2 million to $23.4 million outflow for the nine month period ended September 30, 2020 from $3.9 million inflow for the nine month period ended September 30, 2019.

Net cash used in financing activities for the nine month period ended September 30, 2020 resulted from: (a) $144.8 million of loan repayments; and (b) $14.5 million of dividends paid; and was partially mitigated by: (i) $132.8 million loan proceeds, net of deferred finance costs; and (ii) $3.0 million in equity offering proceeds.

Net cash provided by financing activities for the nine month period ended September 30, 2019 resulted from the receipt of $156.6 million in loan proceeds, net of deferred finance costs, which was partially offset by: the use of (i) $144.1 million of loan repayments; (ii) $8.2 million of dividends paid; and (iii) $0.4 million for acquisition of treasury stock.

Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities

	Three MonthPeriodEndedSeptember 30,2020(unaudited)			Three MonthPeriodEndedSeptember 30,2019(unaudited)			Nine MonthPeriodEndedSeptember 30,2020(unaudited)			Nine MonthPeriodEndedSeptember 30,2019(unaudited)
	Three Month			Three Month
Expressed in thousands of U.S. dollars
	Period			Period
Net cash provided by operating activities	$	35,262		$	19,513		$	85,985		$	21,058
	Ended			Ended
Net (increase)/ decrease in operating assets		(20,341	)		(5,311	)		(21,710	)		132
	March 31,			March 31,
Net (decrease)/ increase in operating liabilities		(7,376	)		(15,735	)		11,342			(2,633	)
	2021			2020
Net interest cost		20,416			20,465			63,932			62,634
	(unaudited)			(unaudited)
Amortization and write-off of deferred finance costs and bond premium		(1,359	)		(1,053	)		(4,404	)		(3,346	)
Expressed in thousands of U.S. dollars
Impairment of receivable in Navios Europe II / Equity in net earnings of affiliated companies		—			936			(13,900	)		2,670
Net cash provided by operating activities	$	4,909		$	30,517
Payments for dry dock and special survey costs		10,448			5,119			30,869			6,781
Net increase/ (decrease) in operating assets		5,342			(13,961	)
Gain on sale of vessels		—			—			—			3,245
Net decrease in operating liabilities		1,790			19,344
Impairment loss		—			(7,287	)		—			(7,287	)
Net interest cost		18,304			21,840
Gain on debt repurchase		7,010			—			7,010			—
Amortization and write-off of deferred finance costs and bond premium		(1,197	)		(1,512	)
Stock-based compensation		(124	)		(234	)		(370	)		(694	)
Gain on sale of vessel and Impairment loss		15			(13,900	)
EBITDA	$	43,936		$	16,413		$	158,754		$	82,560
Stock-based compensation		(57	)		(123	)
Gain on sale of vessels		—			—			—			(3,245	)
EBITDA	$	29,106		$	42,205
Impairment of receivable in Navios Europe II		—			7,287			13,900			7,287
Gain on sale of vessel and Impairment loss		(15	)		13,900
Gain on debt repurchase		(7,010	)		—			(7,010	)		—
Stock-based compensation		57			123
Stock-based compensation		124			234			370			694
Adjusted EBITDA	$	29,148		$	56,228
Adjusted EBITDA	$	37,050		$	23,934		$	166,014		$	87,296
	Three Month			Three Month
	Period			Period
	Ended			Ended
	March 31,			March 31,
	2021			2020
	(unaudited)			(unaudited)
Net cash provided by operating activities	$	4,909		$	30,517
Net cash provided by/ (used in) investing activities	$	45,380		$	(5,882	)
Net cash used in financing activities	$	(44,997	)	$	(17,618	)

	Three MonthPeriodEndedSeptember 30,2020(unaudited)			Three MonthPeriodEndedSeptember 30,2019(unaudited)		Nine MonthPeriodEndedSeptember 30,2020(unaudited)			Nine MonthPeriodEndedSeptember 30,2019(unaudited)
Net cash provided by operating activities	$	35,262		$	19,513	$	85,985		$	21,058
Net cash (used in)/ provided by investing activities	$	(1,785	)	$	5,605	$	(46,408	)	$	31,343
Net cash (used in)/ provided by financing activities	$	(41,706	)	$	35,792	$	(23,375	)	$	3,862

EBITDA in this document represents net income/ (loss) before interest and finance costs, before depreciation and amortization and before income taxes. Adjusted EBITDA in this document represents EBITDA excluding certain items, such as stock-based compensation, gain on sale of vessels, gain/ (loss) on debt repayment and other than temporary investment loss on equity investment.

We use Adjusted EBITDA as liquidity measure and reconcile EBITDA and Adjusted EBITDA to net cash provided by/ (used in) operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA ~~in this document~~ is calculated as follows: net cash provided by/(used in) operating activities adding back, when applicable and as the case may be, the effect of: (i) net ( increase)/ (decrease) in operating assets; (ii) net (increase)/decrease in operating liabilities; (iii) net interest cost; (iv) amortization ~~and write-off~~ of deferred finance costs and ~~bond~~other ~~premium~~related expenses; (v) ~~impairment of receivable in Navios Europe II~~ equity/ ~~Equity~~(loss) in net earnings of affiliates, net of ~~affiliated~~dividends ~~companies~~received; (vi) payments for dry dock and special survey costs; (vii) impairment charges; (viii) gain/ (loss) on sale of ~~vessel~~assets; ~~and~~(ix) gain/ (~~viii~~loss) on debt repayment; (x) stock- based compensation and (xi) transaction costs. Navios Acquisition believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and present useful information to investors regarding Navios Acquisition’s ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. Navios Acquisition also believes that EBITDA and Adjusted EBITDA are used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

EBITDA and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Acquisition’s results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Acquisition’s performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

Adjusted EBITDA affected by the items described in the table above, for the three month period ended ~~September~~March 3031, ~~2020~~2021 ~~increased~~decreased by $1327.21 million to $3729.1 million, as compared to $2356.92 million for the same period of ~~2019~~2020. The ~~increase~~decrease in Adjusted EBITDA was mainly due to a: (ai) $1925.84 million ~~increase~~decrease in revenue; ~~and~~ (bii) $2.~~8 million decrease in time charter and voyage expenses; partially mitigated by a: (i) $~~7.2 million increase in vessel operating expenses ~~mainly~~primarily due to the ~~acquisition~~increase ofin the ~~five~~size ~~product~~of ~~tankers~~our ~~from~~fleet ~~Navios~~as ~~Europe~~discussed Iabove; inand ~~December~~(iii) ~~2019~~$1.2 million ~~and~~increase toin ~~the~~general ~~seven~~and ~~containers~~administrative ~~from~~expenses ~~Navios Europe~~(excluding IIstock-based incompensation) ~~June~~mainly ~~2020~~due ~~and~~ to the ~~amendment~~increase ofin the ~~fees~~size ~~under~~of our ~~the~~fleet; ~~management agreement,~~ partially mitigated by ~~the~~a: ~~sale of three VLCCs in 2019;~~ (iii) $1.17 million ~~increase~~decrease in ~~general~~other ~~and administrative~~ expenses, ~~(excluding stock-based compensation)~~net; (~~iii~~ii) $0.93 million decrease in ~~equity~~time incharter ~~net~~and ~~earnings~~voyage ~~of affiliated companies~~expenses; and (iviii) $0.2 million ~~increase~~decrease in direct vessel expenses (other ~~expense~~than amortization of dry dock and special survey cost).

Adjusted EBITDA affected by the items described in the table above, for the nine month period ended September 30, 2020 increased by $78.7 million to $166.0 million, as compared to $87.3 million for the same period of 2019. The increase in Adjusted EBITDA was mainly due to a: (a) $94.2 million increase in revenue; (b) $2.2 million decrease in time charter and voyage expenses; and (c) $0.4 million decrease in general and administrative expenses (excluding stock-based compensation); partially mitigated by a: (i) $12.4 million increase in operating expenses mainly due to the acquisition of the five product tankers from Navios Europe I in December 2019 and due to the acquisition of seven containers from Navios Europe II in June 2020 and to the amendment of the fees under the management agreement, partially mitigated by the sale of three VLCCs in 2019; (ii) $2.7 million decrease in equity in net earnings of affiliated companies; (iii) $1.3 million decrease in other income; (iv) $1.2 million increase in other expense; and (v) $0.6 million increase in direct vessel expenses (other than amortization of dry dock and special survey cost).

Long-Term Debt Obligations and Credit Arrangements

Ship Mortgage Notes

8 1/8% First Priority Ship Mortgages: On November 13, 2013, the Company and its wholly owned subsidiary, Navios Acquisition Finance (US) Inc. (“Navios Acquisition Finance” and together with the Company, the “2021 Co-Issuers”) issued $610.0 million in first priority ship mortgage notes (the “Existing Notes”) due on November 15, 2021 at a fixed rate of 8.125%.

On March 31, 2014, the Company completed a sale of $60.0 million of its first priority ship mortgage notes due in 2021 (the “Additional Notes,” and together with the Existing Notes, the “2021 Notes”). The terms of the Additional Notes are identical to the Existing Notes and were issued at 103.25% plus accrued interest from November 13, 2013.

The 2021 ~~Notes~~Co-Issuers ~~are~~currently ~~fully~~have ~~and~~the ~~unconditionally~~option ~~guaranteed~~to onredeem athe ~~joint~~2021 ~~and~~Notes ~~several~~in ~~basis~~whole byor ~~all~~in ofpart, ~~Navios~~at ~~Acquisition’s~~a ~~subsidiaries with the~~fixed ~~exception~~price of ~~Navios~~106.094% ~~Acquisition~~of ~~Finance~~the (aprincipal ~~co-issuer~~amount, ofwhich ~~the~~price ~~2021~~declines ~~Notes)~~ratably ~~and~~until ~~the~~it ~~exception~~reaches ofpar ~~Navios~~in ~~Maritime~~2019, ~~Midstream~~plus ~~Partners~~accrued ~~L.P.~~and ~~(“Navios~~unpaid ~~Midstream”)~~interest, ~~subsidiaries~~if any.

The 2021 Co-Issuers currently have the option to redeem the 2021 Notes in whole or in part, at a fixed price of 106.094% of the principal amount, which price declined ratably until it reached par in 2019, plus accrued and unpaid interest, if any.

In addition, upon the occurrence of certain change of control events, the holders of the 2021 Notes will have the right to require the 2021 Co-Issuers to repurchase some or all of the 2021 Notes at 101% of their face amount, plus accrued and unpaid interest to the repurchase date.

The 2021 Notes contain covenants which, among other things, limit the incurrence of additional indebtedness, issuance of certain preferred stock, the payment of dividends, redemption or repurchase of capital stock or making restricted payments and investments, creation of certain liens, transfer or sale of assets, entering in transactions with affiliates, merging or consolidating or selling all or substantially all of the 2021 Co-Issuers’ properties and assets and creation or designation of restricted subsidiaries.

Following the acquisition of the Star N and the Hector N MR1 product tankers from Navios Europe I, the vessels were offered as collateral under its ship mortgage notes, in substitution of an amount of $25.4 million that was held as cash collateral from the sale proceeds of the Nave Electron.

In connection with the release of the Nave Celeste and the Nave Neutrino from the 2021 Notes, the Nave Spherical and an amount of $5.2 million were added as collateral.

In the fourth quarter of 2019, Navios Acquisition repurchased $12.0 million of its ship mortgage notes for a cash consideration of $10.0 million resulting in a gain on bond repurchase of $1.9 million net of deferred fees written-off.

In the third quarter of 2020, Navios Acquisition repurchased $19.0 million of its ship mortgage notes for a cash consideration of $11.9 million resulting in a gain on bond repurchase of $7.0 million net of deferred fees written-off.

~~The~~In ~~2021~~the ~~Co-Issuers~~fourth ~~were~~quarter of 2020, Navios Acquisition repurchased $36.4 million of its ship mortgage notes for a cash consideration of $27.5 million resulting in ~~compliance~~a ~~with~~gain ~~the~~on ~~covenants~~bond asrepurchase of ~~September~~$8.8 ~~30,~~million ~~2020~~net of deferred fees written-off.

In the second quarter of 2021, Navios Acquisition has repurchased $51.8 million of its ship mortgage notes for a cash consideration of $41.3 million.

The 2021 Co-Issuers were in compliance with the covenants as of March 31, 2021.

The Existing Notes and the Additional Notes are treated as a single class for all purposes under the indenture including, without limitation, waivers, amendments, redemptions and other offers to purchase and the Additional Notes rank evenly with the Existing Notes. The Additional Notes and the Existing Notes have different CUSIP numbers.

~~The~~Guarantees Company’s 2021 Notes are fully and unconditionally guaranteed on a joint and several basis by all of the Company’s subsidiaries with the exception of Navios Acquisition Finance (a co-issuer of the 2021 Notes) and the exception of Navios Midstream subsidiaries. The Company’s 2021 Notes are unregistered. The guarantees of our subsidiaries that own mortgaged vessels are senior secured guarantees and the guarantees of our subsidiaries that do not own mortgaged vessels are senior unsecured guarantees. All subsidiaries, including Navios Acquisition Finance and Navios Midstream subsidiaries are 100% owned. Navios Acquisition does not have any independent assets or operations.

The Company’s 2021 ~~intends~~Notes toare ~~engage~~fully inand ~~discussions~~unconditionally ~~with~~guaranteed ~~holders~~on ofa ~~the~~joint ~~2021 Notes~~ and ~~other~~several ~~prospective~~basis ~~investors~~by ~~with~~all ~~respect to a potential refinancing~~ of the ~~2021~~Company’s ~~Notes~~subsidiaries with ~~new, later maturing senior secured notes (~~the ~~“New~~exception ~~Secured~~of ~~Notes”~~(i). Navios ~~The~~Acquisition ~~New Secured~~Finance ~~Notes~~(a ~~would~~co-issuer beof ~~expected to be secured by~~ the ~~same collateral that secures the~~ 2021 Notes), (ii) ~~and~~NAP ~~may~~General ~~also~~Partner, ~~include~~and ~~additional~~(iii) Navios ~~collateral~~Maritime ~~that~~Midstream ~~may~~Partners beL.P. ~~available, including guarantees~~ and ~~equity~~its ~~pledges of currently unrestricted~~ subsidiaries. The ~~terms~~ ofCompany’s ~~the~~2021 ~~New Secured~~ Notes ~~would~~are beunregistered. ~~based~~The onguarantees of the ~~2021~~Company’s ~~Notes,~~subsidiaries ~~but~~that ~~may~~own ~~include~~mortgaged ~~additional~~vessels ~~provisions,~~are ~~including~~senior ~~provisions~~secured guarantees ~~that~~and ~~may~~the ~~restrict~~guarantees ~~the~~of Company’s ~~reinvestment~~subsidiaries ofthat ~~excess~~do ~~cash~~not ~~flow,~~own ~~subject~~mortgaged tovessels ~~certain~~are ~~conditions.~~senior ~~There~~unsecured ~~can~~guarantees. beAll ~~no assurance~~subsidiaries, ~~that~~including ~~the~~Navios ~~Company~~Acquisition ~~will~~Finance beand ~~able~~Navios toMidstream ~~refinance~~and ~~the~~its ~~2021~~subsidiaries ~~Notes~~are ~~with~~100% ~~the New Secured Notes, or at all~~owned.

This notice shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of 2021 Notes or New Secured Notes, in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The 2021 Notes have not been, and any New Secured Notes would not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and unless so registered, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Credit Facilities

As of ~~September~~March 3031, ~~2020~~ 2021, the Company had secured credit facilities with various ~~commercial~~ banks with a total outstanding balance of $0120.19 ~~billion~~million. The purpose of the facilities was to finance the construction or acquisition of vessels or refinance existing indebtedness. All of the facilities are denominated in U.S. dollars and bear interest based on LIBOR plus spread ranging from 230 bps to 400 bps per annum. The facilities are repayable in either semi-annual or quarterly installments, followed by balloon payments with maturities, ranging from September 2021 to October 2027. See also the Contractual Obligations maturity table below.

Amounts drawn under the facilities are secured by first preferred mortgages on Navios Acquisition’s vessels and other collateral and are guaranteed by each vessel-owning subsidiary. The ~~purpose~~credit facilities contain a number of ~~the~~restrictive ~~facilities~~covenants ~~was~~that prohibit toor ~~finance~~limit Navios Acquisition from, among other things: incurring or guaranteeing indebtedness; entering into affiliate transactions; changing the ~~construction~~flag, class, management or ~~acquisition~~ownership of ~~vessels~~Navios orAcquisition’s ~~refinance~~vessels; ~~existing~~changing the ~~indebtedness.~~commercial ~~All~~and technical management of ~~the~~Navios ~~facilities~~Acquisition’s ~~are~~vessels; ~~denominated~~selling inNavios ~~U.S.~~Acquisition’s ~~Dollars~~vessels; and ~~bear~~subordinating ~~interest~~the ~~based~~obligations onunder ~~LIBOR~~each ~~plus~~credit ~~spread~~facility ~~ranging~~to ~~from~~any ~~230~~general ~~bps~~and administrative costs relating to ~~410~~the ~~bps~~vessels, including ~~per~~the ~~annum~~fixed daily fee payable under the Management Agreement. The credit facilities ~~are~~also ~~repayable~~require inNavios ~~either~~Acquisition ~~semi-annual~~to orcomply ~~quarterly~~with ~~installments,~~the ~~followed~~ISM ~~by balloon~~Code ~~payments~~and ~~with~~ISPS ~~maturities,~~Code ~~ranging~~and ~~from~~to ~~February~~maintain ~~2021~~valid tosafety ~~October~~management ~~2027.~~certificates ~~See~~and ~~also~~documents ~~“Contractual~~of ~~obligations”~~compliance ~~below~~at all times.

~~On December 6,~~The ~~2010,~~majority ~~Navios~~of ~~Acquisition~~the ~~entered~~Company’s ~~into~~senior asecured ~~loan~~credit ~~agreement~~facilities ~~with~~require ~~Eurobank~~compliance ~~Ergasias~~with ~~S.A.~~maintenance ofcovenants, upincluding: (i) value-to-loan ~~$52.0 million~~ratio ~~out~~covenants, ofbased ~~which~~on ~~$46.2 million~~charter-free ~~has~~valuations, ~~been~~ranging ~~drawn~~from over 120% to 125%; (~~divided~~ii) ~~into~~minimum ~~two~~liquidity ~~tranches~~at the higher of $~~23.~~40,000 or $1 ~~million~~,000 ~~each~~per vessel owned; (iii) minimum tonet ~~partially finance~~worth ~~the~~ranging ~~acquisition~~from ~~costs~~$50,000 ofto ~~two~~$ ~~LR1~~135,000; ~~product~~and ~~tanker~~(iv) total ~~vessels.~~liabilities ~~Each~~divided ~~tranche~~by oftotal ~~the~~assets, ~~facility~~adjusted ~~was~~for ~~repayable~~market invalues, 32ranging ~~equal~~from ~~quarterly~~a ~~installments~~maximum of ~~$0.3 million~~75% ~~each~~to ~~with~~85%. aIt ~~final~~is ~~balloon~~an ~~payment~~event of ~~$13.3 million,~~default tounder ~~be repaid on~~ the ~~last~~financing ~~repayment~~arrangements ~~date.~~if ~~The~~such ~~maturity~~covenants ~~date~~are ofnot ~~the~~complied ~~loan~~with, ~~was~~including in the ~~third~~loan ~~and~~to ~~fourth~~value ~~quarter~~ratios offor ~~2020.~~which ~~The~~the ~~repayment~~Company ofmay ~~each~~provide ~~tranche~~sufficient ~~started~~additional ~~three~~security ~~months~~or ~~after~~prepay ~~the~~part ~~delivery date~~ of the ~~respective~~facility, ~~vessel.~~to Itprevent ~~bore~~such ~~interest~~an atevent. aAs ~~rate~~ of ~~LIBOR~~March 31, ~~plus~~2021, ~~300 bps. The~~the ~~loan~~Company ~~also~~was ~~required~~in compliance with ~~certain~~all ~~financial~~of ~~covenants.~~the ~~The~~applicable ~~outstanding~~covenants ~~balance~~ under ~~the~~each ~~facility~~ of ~~$27.5 million~~its ~~was~~credit ~~fully prepaid in June 2020~~facilities.

InAs ~~November 2015, Navios Acquisition, entered into a term loan facility~~ of ~~up to $125.0~~March million (divided into five tranches) with Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda Banken AB for the: (i) financing of the purchase price of the Nave Spherical; and (ii) the refinancing of the existing facility with Deutsche Bank AG Filiale Deutschlandgescäft and Skandinaviska Enskilda Banken AB31, ~~dated July 18~~2021, ~~2014.~~no ~~Four~~amount ofwas ~~the~~available ~~five tranches of the facility are repayable in 20 quarterly installments of between approximately $0.4 million and $1.9 million, each with a final balloon repayment~~ to be ~~made~~drawn onfrom the ~~last~~Company’s facilities.

repayment date. The fifth tranche is repayable in 16 quarterly installments of between approximately $0.07 million and $0.8 million, each. The maturity date of the loan is in the fourth quarter of 2020. The credit facility bears interest at LIBOR plus 295 bps per annum. On March 23, 2018, Navios Acquisition prepaid $26.8 million, being the respective tranche of the Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda Banken AB facility that was drawn to finance the Nave Equinox and the Nave Pyxis, which substituted the Nave Galactic as collateral vessels under the 8 1/8% 2021 Notes. On June 18, 2020, Navios Acquisition prepaid $16.3 million, being the respective tranche of the Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda Banken AB facility that was drawn to finance the Nave Sextans. As of September 30, 2020, the outstanding balance under this facility was $17.6 million. In October 2020, Navios Acquisition extended the maturity date of the loan to February 2021.

In October 2019, Navios Acquisition entered into a loan agreement with Hamburg Commercial Bank AG of up to $31.8 million in order to refinance one VLCC. The facility is repayable in 4 quarterly installments of $0.8 million each with a final balloon payment of $28.4 million repayable on the last repayment date. The facility matures in October 2020 and bears interest at LIBOR plus 280 bps per annum. As of September 30, 2020, $29.3 million was outstanding under this facility. In October 2020, Navios Acquisition extended the maturity date of the loan to October 2024. The remaining balance of the facility is repayable in 16 quarterly installments of $0.8 million each with a final balloon payment of $14.9 million repayable on the last repayment date.

In December 2019, Navios Acquisition entered into a loan agreement with Deutsche Bank AG Filiale Deutschlandgeschäft of up to $32.5 million in order to finance one MR1 and two LR1s acquired from Navios Europe I. The facility was repayable in one single repayment on the last repayment date. The facility matured in June 2020 and bore interest at LIBOR plus 400 bps per annum. In the second quarter of 2020, Navios Acquisition fully repaid the amount of $32.5 million.

In June 2020, Navios Acquisition entered into a loan agreement with Eurobank S.A. of $20.8 million in order to refinance two LR1s. The facility is repayable in 16 quarterly installments of $0.8 million each with a final balloon payment of $8.0 million repayable on the last repayment date. The facility matures in June 2024 and bears interest at LIBOR plus 300 bps per annum. As of September 30, 2020, an amount of $20.0 million was outstanding under this facility.

In June 2020, Navios Acquisition entered into a loan agreement with Hamburg Commercial Bank AG of $41.7 million in order to acquire seven containerships. The facility is repayable in 4 quarterly installments with a final balloon payment of $21.7 million repayable on the last repayment date. The facility matures in May 2021 and bears interest at LIBOR plus 375 bps per annum and top up fee ranging from 225 bps to 425 bps per annum. As of September 30, 2020, an amount of $36.7 million was outstanding under this facility and is presented under “Liabilities associated with assets held for sale”. (Please refer to Note 7)

Amounts drawn under the agreements are secured by first preferred mortgages on Navios Acquisition’s vessels and other collateral and are guaranteed by each vessel-owning subsidiary. The agreements contain a number of restrictive covenants that prohibit or limit Navios Acquisition from, among other things: incurring or guaranteeing indebtedness; entering into affiliate transactions; changing the flag, class, management or ownership of Navios Acquisition’s vessels; changing the commercial and technical management of Navios Acquisition’s vessels; selling Navios Acquisition’s vessels; and subordinating the obligations under each credit facility to any general and administrative costs relating to the vessels, including the fixed daily fee payable under the Management Agreement. The credit facilities also require Navios Acquisition to comply with the ISM Code and ISPS Code and to maintain valid safety management certificates and documents of compliance at all times.

As of September 30, 2020, no amount was available to be drawn from the Company’s facilities.

Sale and Leaseback Agreements

As of ~~September~~March 3031, ~~2020~~2021, the Company had sale and leaseback agreements with various unrelated third parties with a total outstanding ~~balance~~ balance of $0.43 billion.

As of ~~September~~March 3031, ~~2020~~2021 and December 31, ~~2019~~2020, the deposits under the sale and leaseback agreements were $9.1 million ~~and $5.5 million~~, respectively, and are presented under “Other long term assets” in the condensed consolidated balance sheets.

InAmounts ~~June~~drawn ~~2020,~~under the facilities are secured by first preferred mortgages on Navios Acquisition’s ~~entered~~vessels ~~into~~and ~~sale~~other collateral and ~~leaseback~~are guaranteed ~~agreements~~by ~~with~~each ~~unrelated~~vessel-owning ~~third~~subsidiary. ~~parties~~The ~~for~~sale ~~$72.1 million~~and inleaseback ~~order~~agreements ~~to refinance~~contain ~~one~~a ~~MR1,~~number ~~one~~of ~~MR2~~restrictive ~~and~~covenants ~~two~~that ~~LR1s.~~prohibit or limit Navios Acquisition ~~has~~from, aamong ~~purchase~~other ~~obligation~~things: toincurring ~~acquire~~or ~~the~~guaranteeing ~~vessels~~indebtedness; atentering ~~the~~into affiliate ~~end~~transactions; ofchanging the ~~lease~~flag, ~~term~~class, ~~and~~management ~~under~~or ~~ASC~~ownership ~~842-40,~~of Navios Acquisition’s vessels; changing the ~~transaction~~commercial ~~was~~and ~~determined~~technical tomanagement beof aNavios ~~failed sale.~~Acquisition’s ~~The~~vessels; ~~agreements~~selling ~~will~~Navios beAcquisition’s ~~repaid~~vessels; ~~through~~and subordinating ~~periods~~the ~~ranging~~obligations ~~from~~under ~~four~~each tocredit ~~seven~~facility ~~years~~to inany ~~consecutive~~general ~~quarterly~~and ~~installments~~administrative ofcosts uprelating to ~~$1.8 million~~the ~~each~~vessels, ~~with~~including athe ~~repurchase~~fixed ~~obligation~~daily offee uppayable tounder ~~$27.0 million~~the inManagement ~~total~~Agreement. The sale and leaseback ~~arrangements~~ ~~bear~~agreements ~~interest~~also atrequire ~~LIBOR~~Navios Acquisition ~~plus~~to acomply ~~margin~~with ~~ranging~~the ~~from~~ISM ~~390~~Code ~~bps~~and toISPS ~~410~~Code ~~bps~~and ~~per~~to ~~annum,~~maintain ~~depending~~valid onsafety ~~the~~management ~~vessel~~certificates ~~financed.~~and Asdocuments of ~~September 30,~~compliance ~~2020,~~at ~~the~~all ~~outstanding balance under the agreements was $70~~times.~~3 million.~~

~~Amounts~~As drawn under the facilities are secured by first preferred mortgages on Navios Acquisition’s vessels and other collateral and are guaranteed by each vessel-owning subsidiary. The credit facilities contain a number of ~~restrictive~~March 31, ~~covenants that prohibit or limit Navios Acquisition from~~2021, ~~among~~the ~~other~~Company ~~things:~~was ~~incurring~~in orcompliance ~~guaranteeing~~with ~~indebtedness;~~its ~~entering~~covenants. ~~into affiliate transactions;~~

1612

changing the flag, class, management or ownership of Navios Acquisition’s vessels; changing the commercial and technical management of Navios Acquisition’s vessels; selling Navios Acquisition’s vessels; and subordinating the obligations under each credit facility to any general and administrative costs relating to the vessels, including the fixed daily fee payable under the Management Agreement. The credit facilities also require Navios Acquisition to comply with the ISM Code and ISPS Code and to maintain valid safety management certificates and documents of compliance at all times.

As of September 30, 2020, the Company was in compliance with its covenants.

Off-Balance Sheet Arrangements – Legal Proceedings

The Company is involved in various disputes and arbitration proceedings arising in the ordinary course of business. Provisions have been recognized in the financial statements for all such proceedings where the Company believes that a liability may be probable, and for which the amounts are reasonably estimable, based upon facts known at the date of the financial statements were prepared. In the opinion of the management, the ultimate disposition of these matters individually and in aggregate will not materially affect the Company’s financial position, results of operations or liquidity.

Contractual Obligations

The following table summarizes our long-term contractual obligations as of ~~September~~March 3031, ~~2020~~2021:

	Payments due by period (Unaudited)
(In thousands of U.S. dollars)	Less than1 year		1-3 years		3-5 years		More than5 years		Total
Long-term debt obligations(1)	$	88692,~~677~~551	$	~~806~~140,~~255~~021	$	~~129~~136,~~546~~271	$	~~115~~88,~~739~~984	$	1,~~140~~057,~~217~~827
Lease Obligations (Time Charters) for vessels to be delivered(2)		15,297		62,700		66,960		256,526		401,483
Operating lease obligations (bareboat-in charters) for vessels in operation (2), (3)		15,988		32,020		31,976		103,283		183,267
Total contractual obligations	$	103,974		868,955		196,506		372,265	$	1,541,700
Lease obligations (bareboat-in charters) for vessels to be delivered (2), (3)		4,643		30,025		31,974		120,951		187,593
Total contractual obligations	$	713,182		202,066		200,221		313,218	$	1,428,687

(1) The amount identified does not include interest costs associated with the outstanding credit facilities, which are based on LIBOR, plus the costs of complying with any applicable regulatory requirements and a margin ranging from 230 bps to 410 bps per annum or the ~~$670.0 million~~ 2021 Notes fixed rate of 8.125%.

(2) In August 2018, Navios Acquisition agreed to the main terms of a 12-year bareboat charter-in agreement with de-escalating purchase options for two newbuild Japanese VLCCs. ~~delivering~~The infirst ~~each~~VLCC ofwas ~~the~~delivered ~~fourth~~in ~~quarter~~October of 2020 and the ~~first~~second ~~quarter~~VLCC ofwas delivered in February 2021 and lease payments on undiscounted basis are included under operating lease obligations (bareboat-in charters) for vessels in operation. In the first quarter of 2019, weNavios Acquisition exercised ~~our~~its option for a third Japanese VLCC newbuilding under a 12 year bareboat ~~operating~~chartered-in ~~lease~~agreement with ande-escalating purchase options. The vessel is expected ~~delivery~~to be delivered in the ~~second~~third quarter of 2021 and is included under lease obligations (bareboat-in charters) for vessels to be delivered. In the second quarter of 2020, Navios Acquisition exercised its option for a fourth Japanese newbuild VLCC under a twelve year bareboat ~~operating~~charter ~~lease~~agreement with ande-escalating purchase options and expected delivery in the ~~second~~third quarter of 2022 and is also included under lease obligations (bareboat-in charters) for vessels to be delivered.

~~Navios~~(3) ~~Acquisition~~Represent ~~leases~~total ~~office~~amounts ~~space~~of ~~in Monaco pursuant to a five year~~ lease ~~agreement,~~payments ~~dated~~on ~~July 1,~~an ~~2018,~~undiscounted ~~that expires in June 2023, for a monthly rent of approximately $0~~basis.~~01 million.~~

Navios Acquisition leased office space in Monaco pursuant to a lease agreement, dated July 1, 2018, for a monthly rent of approximately $0.01 million. The lease agreement was terminated on April 16, 2021. The Company currently utilizes office space, that is provided by the Manager in the Cayman Islands.

Related Party Transactions

~~Vessel operating expenses (management~~ Management fees): Pursuant to the Management Agreement dated May 28, 2010 and as amended in September 10, 2010; May ~~2012~~ 04, 2012; May 14, 2014,; May 19, 2016; and May 03, 2018, the Manager provided commercial and technical management services to Navios Acquisition’s vessels for a fixed daily fee of: (a) $6,500 per MR2 product tanker and chemical tanker vessel; (b) $7,150 per LR1 product tanker vessel; and (c) the current daily fee of $9,500 per VLCC, through May 2020.

~~Following~~On August 29, 2019, Navios Acquisition entered into a sixth amendment (the ~~Merger~~“Sixth Amendment”) to the Management Agreement (as amended, the “Management Agreement”) with Navios Tankers Management Inc. The Sixth Amendment, among other changes, extends the duration of the Management Agreement until January 1, 2025, with an automatic renewal for an additional ~~Midstream~~five years, ~~completed~~unless earlier terminated by either party. It provides for payment of a termination fee by Navios Acquisition in the event the Management Agreement is terminated on or before December 1331, ~~2018~~2024, equal to the fees charged for the full calendar year preceding the termination date, by Navios Acquisition. The Sixth Amendment also sets forth the vessel operating expenses for the period through December 31, 2019 and the two-year period commencing January 1, 2020, which exclude dry-docking expenses, reimbursed at cost by Navios Acquisition, as follows: (a) $7,150 and $7,225, respectively, daily rate per owned LR1 product tanker vessel; (b) $6,500 and $6,825, respectively, daily rate per owned MR2 product tanker vessel and chemical tanker vessel; (c) $9,500 and $9,650, respectively, daily rate per VLCC tanker vessel; and (d) a $50 daily rate per vessel for technical and commercial management services. Commencing January 1, 2022, the fees described in subsections (a) through (c) are subject to an annual increase of 3%, unless otherwise agreed by the parties. The Management Agreement ~~covers~~also ~~vessels~~provides ~~acquired~~for a technical and commercial management fee of $50 per day per vessel and an annual increase of 3% after January 1, 2022 for the remaining period unless agreed otherwise.

On13 August 29, 2019, Navios Acquisition entered into a sixth amendment (the “Sixth Amendment”) to the Management Agreement (as amended, the “Management Agreement”) with Navios Tankers Management Inc. The Sixth Amendment, among other changes, extends the duration of the Management Agreement until January 1, 2025, with an automatic renewal for an additional five years, unless earlier terminated by either party, and provides for payment of a termination fee by Navios Acquisition in the event the Management Agreement is terminated on or before December 31, 2024. The Sixth Amendment also sets forth the fixed vessel operating expenses for the period through December 31, 2019 and the two-year period commencing January 1, 2020, which fixed vessel operating expenses exclude dry-docking expenses, which are reimbursed at cost by Navios Acquisition: (a) $7,150 and $7,225, respectively, daily rate per owned LR1 product tanker vessel; (b) $6,500 and $6,825, respectively, daily rate per owned MR2 product tanker vessel and chemical tanker vessel; (c) $9,500 and $9,650, respectively, daily rate per VLCC tanker vessel; and (d) effective in both periods, $50 per vessel daily rate for technical and commercial management services. Commencing January 1, 2022, the fees described in subsections (a) through (c) are subject to an annual increase of 3%, unless otherwise agreed and provides for payment of a termination fee, equal to the fees charged for the full calendar year preceding the termination date, by Navios Acquisition in the event the Management Agreement is terminated on or before December 31, 2024.

Following the ~~liquidation of Navios Europe I (“~~Liquidation of Navios Europe I~~”) in December 2019~~, which resulted in the acquisition of three MR1 product tankers and two LR1 product tankers, as per the terms of the Management Agreement as amended in December 2019, vessel operating expenses are fixed for two years commencing from January 1, 2020 at: (a) $6,825 per day per MR1, MR2 product tanker and chemical tanker; (b) $7,225 per day per LR1 product tanker vessel; and (c) $9,~~500~~650 per VLCC. The Management Agreement also provides for a technical and commercial management fee of $50 per day per vessel and an annual increase of 3% after January 1, 2022 for the remaining period unless agreed otherwise.

Following the Liquidation of Navios Europe II, Navios Acquisition acquired seven containerships on June 29, 2020. As per ~~the~~a further amendment to the Management Agreement dated June 26, 2020, the vessel operating expenses are fixed at: (a) $5,250 per day per ~~Container~~ Container vessel of 1,500 TEU up to 1,999 TEU; and (b) $6,100 per day per Container vessel of 2,000 TEU up to 3,450 TEU. ~~The~~All ~~Management~~other ~~Agreement~~terms ~~also provides for a technical~~ and ~~commercial~~conditions ~~management~~of ~~fee~~the ofManagement ~~$50~~Agreement ~~per~~remain ~~day~~in ~~per~~full ~~vessel~~force and ~~an annual increase of 3% after January 1, 2022 for the remaining period unless agreed otherwise~~effect.

Drydocking expenses are reimbursed at cost for all vessels.

For the ~~nine~~three month periods ended ~~September~~March 3031, ~~2020~~2021 and ~~2019~~2020, certain extraordinary fees and costs related to regulatory requirements, including ballast water treatment system installation and exhaust gas cleaning system installation and under Company’s Management Agreement amounted to $42.47 million and $132.15 million, respectively, and are presented under “~~Container vessel owning companies acquisition / vessels~~ Vessels improvements” in the condensed Consolidated Statements of Cash Flows. ~~(Please refer to Note 5)~~

Total ~~fixed~~management ~~vessel~~fees ~~operating expenses~~ for the three month periods ended ~~September~~ March 3031, ~~2020~~2021 and ~~2019 amounted to $34.0 million and $26.8 million, respectively. Total fixed vessel operating expenses for the nine month periods ended September 30,~~ 2020 ~~and 2019~~ amounted to $9332.65 million and $8129.28 million, respectively.

General and administrative expenses: On ~~May 28,~~Pursuant ~~2010,~~to ~~Navios~~the ~~Acquisition entered into an~~ Administrative Services Agreement ~~with~~ ~~the Manager, pursuant to~~ which the Manager provides certain administrative management services to Navios Acquisition which include: bookkeeping, audit and accounting services, legal and insurance services, administrative and clerical services, banking and financial services, advisory services, client and investor relations and other services. The Manager is reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. ~~In May 2014, Navios Acquisition extended the duration of its existing Administrative Services Agreement with the Manager, until May 2020.~~

In August 2019, Navios Acquisition extended the duration of its existing Administrative Services Agreement with the Manager until January 1, 2025, to be automatically renewed for another five years. The ~~agreement~~Administrative Service Agreement also provides for payment of a termination fee, equal to the fees charged for the full calendar year preceding the termination date, by Navios Acquisition in the event the Administrative Services Agreement is terminated on or before December 31, 2024.

Following the Liquidation of Navios Europe I inand ~~December~~the ~~2019,~~Liquidation of Navios ~~Acquisition~~Europe ~~acquired~~II, ~~three~~the ~~MR1 product tankers and two LR1 product tankers. The~~ Administrative Services Agreement also covers the vessels acquired.

~~Following~~For the ~~Liquidation~~three ofmonth ~~Navios~~periods ~~Europe~~ended IIMarch 31, ~~Navios Acquisition~~2021 ~~acquired~~and ~~seven~~2020, ~~containerships~~the onexpense ~~June 29,~~arising ~~2020.~~from ~~The~~administrative ~~Administrative~~services ~~Services~~rendered ~~Agreement~~by ~~also~~the ~~covers~~Manager amounted ~~the~~to ~~vessels~~$3.7 million ~~acquired~~and $3.0 million, respectively.

~~For~~Balance ~~each~~due offrom/ ~~the~~(to) ~~three~~related ~~month~~parties: ~~periods~~Balance ~~ended~~due ~~September~~to related parties was $10.9 30million as of March 31, 2021 (December 31, 2020: ~~and~~$15.4 ~~2019~~million). ~~the~~The ~~expense~~balances ~~arising~~mainly ~~from~~consisted of administrative ~~services~~expenses, ~~rendered~~costs byrelated ~~the Manager~~to ~~amounted~~regulatory torequirements ~~$3.5 million~~including ~~and~~ballast ~~$2.8 million~~water treatment system, ~~respectively.~~special ~~For~~survey ~~each~~and ofdry docking ~~the~~expenses, ~~nine~~as ~~month~~well ~~periods~~as ~~ended~~operating ~~September 30~~expenses and working capital deposits, ~~2020~~in ~~and~~accordance ~~2019~~with the ~~expense~~Management ~~arising~~Agreement. ~~from~~As ~~administrative~~of ~~services~~March 31, ~~rendered~~2021, by the ~~Manager~~amount ~~amounted~~of to $91.53 million ~~and~~(December 31, 2020: $81.4 8 million,) ~~respectively~~related to seven containerships acquired after the liquidation of Navios Europe II and is included under “Assets held for sale” in the condensed consolidated balance sheets.

Balance due from/ (to) related parties: Balance due from related parties (both short and long-term) as of September 30, 2020, was $17.1 million (December 31, 2019: $14.7 million) and balance due to related parties as of September 30, 2020 was $0 (December 31, 2019:$32.2 million). The balances mainly consisted of administrative expenses, costs related to regulatory requirements including ballast water treatment system, special survey and dry docking expenses, as well as operating expenses and working capital deposits, in accordance with the Management Agreement. The amount of $1.8 million related to seven containerships acquired after the liquidation of Navios Europe II is included under “Assets held for sale” in the condensed consolidated balance sheets.

Navios Midstream Merger Agreement: On December 13, 2018, Navios Acquisition completed the Merger contemplated by the Merger Agreement, dated as of October 7, 2018, by and among Navios Acquisition, its direct wholly-owned subsidiary Merger Sub, Navios Midstream and NAP General Partner. Pursuant to the Merger Agreement, Merger Sub merged with and into Navios Midstream, with Navios Midstream surviving as a wholly-owned subsidiary of Navios Acquisition.

Omnibus Agreements

Acquisition Omnibus Agreement: Navios Acquisition entered into an omnibus agreement (the “Acquisition Omnibus Agreement”) with Navios Maritime Holdings Inc. (“Navios Holdings”) and Navios Maritime Partners L.P. (“Navios Partners”) in connection with the closing of Navios Acquisition’s initial vessel acquisition, pursuant to which, among other things, Navios Holdings and Navios Partners agreed not to acquire, charter-in or own liquid shipment vessels, except for container vessels and vessels that are primarily employed in operations in South America without the consent of an independent committee of Navios Acquisition. In addition, Navios Acquisition, under the Acquisition Omnibus Agreement, agreed to cause its subsidiaries not to acquire, own, operate or charter-in drybulk carriers under specific exceptions. Under the Acquisition Omnibus Agreement, Navios Acquisition and its subsidiaries grant to Navios Holdings and Navios Partners a right of first offer on any proposed sale, transfer or other disposition of any of its drybulk carriers and related charters owned or acquired by Navios Acquisition. Likewise, Navios Holdings and Navios Partners agreed to grant a similar right of first offer to Navios Acquisition for any liquid shipment vessels they might own. These rights of first offer will not apply to a: (a) sale, transfer or other disposition of vessels between any affiliated subsidiaries, or pursuant to the existing terms of any charter or other agreement with a counterparty; or (b) merger with or into, or sale of substantially all of the assets to, an unaffiliated third party.

Midstream Omnibus Agreement: Navios Acquisition entered into an omnibus agreement (the “Midstream Omnibus Agreement”), with Navios Midstream, Navios Holdings and Navios Partners in connection with the Navios Midstream IPO, pursuant to which Navios Acquisition, Navios Midstream, Navios Holdings, Navios Partners and their controlled affiliates generally have agreed not to acquire or own any VLCCs, crude oil tankers, refined petroleum product tankers, liquefied petroleum gas (“LPG”) tankers or chemical tankers under time charters of five or more years without the consent of the Navios Midstream General Partner. The Midstream Omnibus Agreement contains significant exceptions that have allowed Navios Acquisition, Navios Holdings, Navios Partners or any of their controlled affiliates to compete with Navios Midstream under specified circumstances.

Under the Midstream Omnibus Agreement, Navios Midstream and its subsidiaries have granted to Navios Acquisition a right of first offer on any proposed sale, transfer or other disposition of any of its VLCCs or any crude oil tankers, refined petroleum product tankers, LPG tankers or chemical tankers and related charters owned or acquired by Navios Midstream. Likewise, Navios Acquisition have agreed (and will cause its subsidiaries to agree) to grant a similar right of first offer to Navios Midstream for any of the VLCCs, crude oil tankers, refined petroleum product tankers, LPG tankers or chemical tankers under charter for five or more years it might own. These rights of first offer do not apply to a: (a) sale, transfer or other disposition of vessels between any affiliated subsidiaries, or pursuant to the terms of any charter or other agreement with a charter party, or (b) merger with or into, or sale of substantially all of the assets to, an unaffiliated third-party.

Navios Containers Omnibus Agreement: In connection with the Navios Maritime Containers Inc. (“Navios Containers”) private placement and listing on the Norwegian over-the-counter market effective June 8, 2017, Navios Acquisition entered into an omnibus agreement with Navios Containers, Navios Midstream, Navios Holdings and Navios Partners, pursuant to which Navios Acquisition, Navios Holdings, Navios Partners and Navios Midstream have granted to Navios Containers a right of first refusal over any container vessels to be sold or acquired in the future. The omnibus agreement contains significant exceptions that will allow Navios Acquisition, Navios Holdings, Navios Partners and Navios Midstream to compete with Navios Containers under specified circumstances.

Navios Midstream General Partner Option Agreement with Navios Holdings: Navios Acquisition entered into an option agreement, dated November 18, 2014, with Navios Holdings under which Navios Acquisition grants Navios Holdings the option to acquire any or all of the outstanding membership interests in Navios Midstream General Partner and all of the incentive distribution rights in Navios Midstream representing the right to receive an increasing percentage of the quarterly distributions when certain conditions are met. The option shall expire on November 18, 2024. Any such exercise shall relate to not less than twenty-five percent of the option interest and the purchase price for the acquisition of all or part of the option interest shall be an amount equal to its fair market value.

Balance due from Navios Europe II: Navios Holdings, Navios Acquisition and Navios Partners have made available to Navios Europe II revolving loans up to $43.5 million to fund working capital requirements. In March 2017, the availability under the Navios Revolving Loans II was increased by $14.0 million.

~~The~~Following ~~decline in~~ the ~~fair~~Liquidation ~~value~~ of ~~the~~Navios ~~investment~~Europe ~~was considered as other-than-temporary and~~II, ~~therefore,~~the anbalance ~~aggregate~~due ~~loss~~from ofNavios ~~$13.9 million was~~Europe ~~recognized~~II ~~and~~as ~~included in the accompanying condensed consolidated statements~~ of ~~income for the three month period ended~~ March 31, ~~2020,~~2021 and ~~the nine month period ended September~~December 3031, 2020, ~~as “Impairment of receivable in affiliated company/Equity in net earnings of affiliated companies.” The fair value of the Company’s investment~~ was ~~determined based on the liquidation value of Navios Europe II, determined on the individual fair values assigned to the~~ ~~assets and liabilities of Navios Europe II~~$0.

19The decline in the fair value of the investment was considered as other-than-temporary and, therefore, an aggregate loss of $13.9 million was recognized and included in the accompanying condensed consolidated statements of operations for the three month period ended March 31, 2020. The fair value of the Company’s investment was determined based on the liquidation value of Navios Europe II, determined on the individual fair values assigned to the assets and liabilities of Navios Europe II. The fair value of the investment in Navios Europe II is considered to be determined through Level 3 inputs of fair value hierarchy.

Loan payable to affiliate company: On March 19, 2021, Navios Acquisition entered into a secured loan agreement with a subsidiary of N Shipmanagement Acquisition Corp., an entity affiliated with Navios Acquisition’s Chairman and Chief Executive Officer, for a loan of up to $100.0 million to be used for general corporate purposes. The loan has a term of two years, scheduled amortization and bears interest at a rate of 11% per annum, payable quarterly, and arrangement fees of amount $1.2 million paid at closing. Navios Acquisition may elect to defer all scheduled amortization and interest payments, in which case the applicable interest rate is 12.5% per annum. For the three month period ended March 31, 2021, Navios Acquisition drew $18.0 million. Subsequently to March 31, 2021 to date, Navios Acquisition drew an additional amount of $29.2 million.

Dividend Policy

On November 2, 2020, the Board of Directors declared a quarterly cash dividend in respect of the third quarter of 2020 of $0.05 per share of common stock of amount $0.8 million which was paid on February 10, 2021 to stockholders of record as of January 12, 2021.

The Board has decided to suspend its quarterly dividend to its stockholders including the payment for the quarter ended December 31, 2020.

~~Following~~The ~~the~~declaration ~~Liquidation~~and ofpayment ~~Navios Europe II, the balance due from Navios Europe II as~~ of ~~September 30,~~ ~~2020~~any ~~was~~further ~~$0.~~dividends ~~The~~remain ~~balance~~subject ~~due~~to ~~from~~the ~~Navios~~discretion ~~Europe II as~~ of ~~December 31, 2019 was $44.9 million which included~~ the Board ~~Navios~~of ~~Revolving~~Directors ~~Loans~~and IIwill ofdepend ~~$20.7 million~~on, ~~the~~among ~~non-current amount~~other ofthings, ~~$7.6 million~~Navios ~~related~~Acquisition’s tocash ~~the~~requirements ~~accrued~~as ~~interest~~measured ~~income~~by ~~earned~~market ~~under~~opportunities ~~the~~and ~~Navios~~restrictions ~~Term Loans II~~ under ~~the~~its ~~caption~~credit ~~“Due~~agreements ~~from~~and ~~related~~other ~~parties,~~debt ~~long-term”~~obligations and ~~the~~such ~~accrued~~other ~~interest~~factors ~~income~~as ~~earned under~~ the ~~Navios~~Board ~~Revolving Loans II~~ of ~~$16.7 million~~Directors ~~under~~may ~~the~~deem ~~caption “Due from related parties, short-term~~advisable.”

Quantitative and Qualitative Disclosures about Market Risks

Foreign Exchange Risk

Our functional and reporting currency is the U.S. dollar. We engage in worldwide commerce with a variety of entities. Although our operations may expose us to certain levels of foreign currency risk, our transactions are predominantly U.S. dollar denominated. Transactions in currencies other than U.S. dollars are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized in the statements of income.

Interest Rate Risk

As of ~~September~~March 3031, ~~2020~~2021, Navios Acquisition had a total of $1,~~140~~058.20 million in long-term and short-term indebtedness. Borrowings under our credit facilities bear interest at rates based on a premium over LIBOR in U.S dollars except for the interest rate on the Loan payable to affiliate company, Existing Notes and the Additional Notes which is fixed. Therefore, we are exposed to the risk that ~~our~~ our interest expense may increase if interest rates rise. For the three month period ended ~~September~~March 3031, ~~2020~~2021, we paid interest on our outstanding debt at a weighted average interest rate of 6.2118%. A 1% increase in LIBOR would have increased our interest expense for the three month period ended ~~September~~March 3031, ~~2020~~2021 by $1.42 million. For the nine month period ended September 30, 2020, we paid interest on our outstanding debt at a weighted average interest rate of 6.48%. A 1% increase in LIBOR would have increased our interest expense for the nine month period ended September 30, 2020 by $4.0 million.

Concentration of Credit Risk

Financial instruments, which potentially subject us to significant concentrations of credit risk, consist principally of trade accounts receivable. We closely monitor our exposure to customers for credit risk. We have policies in place to ensure that we trade with customers with an appropriate credit history. For the ~~nine~~three month period ended ~~September~~March 3031, ~~2020~~2021, ~~Navig8~~Shell ~~Chemicals Shipping~~ and ~~Trading~~Saudi CoAramco ~~(“Navig8”)~~Products Trading accounted for 2913.1%, ~~China ZhenHua Oil Co., Ltd accounted for 12.6%~~ and ~~China Shipping Developement (Hong Kong) accounted for~~ 10.31%, respectively, of Navios Acquisition’s revenue. For the year ended December 31, ~~2019~~2020, Navig8, China ZhenHua and ~~COSCO~~China Shipping ~~Tanker (Dalian) Co.~~Development, ~~Ltd.~~ accounted for 3425.65%, 11.4% and 10.07%, respectively, of Navios Acquisition’s revenue.

Cash and Cash Equivalents

Cash deposits and cash equivalents in excess of amounts covered by government-provided insurance are exposed to loss in the event of non-performance by financial institutions. Navios Acquisition does maintain cash deposits and equivalents in excess of government-provided insurance limits. Navios Acquisition also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.

Inflation

Inflation has had a minimal impact on vessel operating expenses and general and administrative expenses. Our management does not consider inflation to be a significant risk to expenses in the current and foreseeable economic environment.

~~Recent~~16 ~~Accounting Pronouncements~~

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contract modifications, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-04 is optional and is effective from March 12, 2020 through December 31, 2022. We are currently evaluating the impact of ASU 2020-04 on our condensed consolidated financial statements.

InRecent ~~August~~Accounting ~~2018, FASB issued ASU 2018-13, “Fair Value Measurement~~Pronouncements (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement”. This update modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and earlier adoption is permitted. The adoption of this new accounting guidance did not have a material effect on the Company’s consolidated financial statements.

InThese ~~October~~financial ~~2018,~~statements FASB issued ASU 2018-17, Consolidation (Topic 810): “Targeted Improvements to Related Party Guidance for Variable Interest Entities” (“ASU 2018-17”). ASU 2018-17 provides that indirect interests held through related parties in common control arrangements should be ~~considered~~read onin aconjunction ~~proportional~~with ~~basis~~the ~~for~~consolidated ~~determining~~financial ~~whether~~statements ~~fees paid to decision makers~~ and ~~service~~related ~~providers~~notes ~~are~~included ~~variable~~in ~~interests.~~Navios ~~This is consistent with how indirect interests held through related parties~~Acquisition’s ~~under~~Annual ~~common~~Report ~~control~~on ~~are considered~~ Form 20-F for ~~determining whether a reporting entity must consolidate a Variable Interest Entity (“VIE”). For Public business entities~~ the ~~amendments~~year ~~are~~ended ~~effective for fiscal years beginning after~~ December 1531, ~~2019, and interim periods within those fiscal years~~2020. ~~Early adoption is permitted. The adoption of this new accounting guidance did not have a material effect on the Company’s consolidated financial statements.~~

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU is effective for periods beginning after December 15, 2019, with an election to adopt early. The ASU requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value. It eliminates Step 2 of the current two-step goodwill impairment test, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The adoption of this new accounting guidance did not have a material effect on the Company’s consolidated financial statements.

In June 2016, FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This standard requires entities to measure all expected credit losses of financial assets held at a reporting date based on historical experience, current conditions, and reasonable and supportable forecasts in order to record credit losses in a more timely matter. ASU 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The standard is effective for interim and annual reporting periods beginning after December 15, 2019, although early adoption is permitted for interim and annual periods beginning after December 15, 2018. In November 2018, FASB issued ASU 2018-19 “Codification Improvements to topic 326, Financial Instruments-Credit Losses”. The amendments in this update clarify that operating lease receivables are not within the scope of ASC 326-20 and should instead be accounted for under the new leasing standard, ASC 842. The adoption of this new accounting guidance did not have a material effect on the Company’s consolidated financial statements.

Critical Accounting Policies

Navios Acquisition’s interim consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires Navios Acquisition to make estimates in the application of our accounting policies based on the best assumptions, judgments and opinions of management. Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies are those that reflect significant judgments or uncertainties, and potentially result in in materially different results under different assumptions and conditions. ~~Other~~All ~~than as described below, all~~ significant accounting policies are as described in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 20-F for the year ended December 31, ~~2019~~2020 filed with the SEC on ~~March~~April 628, ~~2020~~2021. It is the Company’s policy to dispose of vessels and other fixed assets when suitable opportunities occur and not necessarily to keep them until the end of their useful life. The Company classifies assets and disposal groups as being held for sale when the following criteria are met: management has committed to a plan to sell the asset (disposal group); the asset (disposal group) is available for immediate sale in its present condition; an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year; the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets or disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet the criteria to be held for sale.

2117

~~Exhibit~~NAVIOS ~~List~~MARITIME ACQUISITION CORPORATION

ExhibitNo.	Exhibit
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET AT MARCH 31, 2021 AND AUDITED CONDENSED CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2020		F-2
4.1	Amending and Restating Agreement, dated October 16, 2020, by and among Lefkada Shipping Corporation, as borrower, Hamburg Commercial Bank AG, as agent, mandated lead arranger and security trustee, and the banks and financial institutions listed therein.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2021 AND 2020		F-3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2021 AND 2020		F-4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2021 AND 2020		F-5
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)		F-6

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET AT SEPTEMBER 30, 2020 AND AUDITED CONDENSED CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2019			F-2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019			F-3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR NINE MONTH PERIOD ENDED SEPTEMBER 30, 2020 AND 2019			F-4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019			F-5
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)			F-6

F-1

NAVIOS MARITIME ACQUISITION CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of U.S. Dollars except share data)

	Notes		~~September~~March 3031,~~2020(unaudited)~~2021			December 31,~~2019~~
			(unaudited)			2020
ASSETS
Current assets
Cash and cash equivalents		3	$	5945,~~538~~668		$	4340,~~561~~594
Restricted cash		3		~~715~~981			~~490~~763
Accounts receivable, net				136,~~722~~109			348,~~235~~151
Due from related parties, short term		8,13		2,426			16,688
Prepaid expenses and other current assets		4		7,703			6,136
Prepaid expenses and other current assets		4		9,981			12,826
Inventories				5,644			7,130
Inventories		4		5,419			6,208
Assets held for sale		6		59,627			77,831
Assets held for sale		7		82,577			—
Total current assets				125,732			140,605
Total current assets				174,378			114,008
Vessels, net		5		1,247,242			1,286,378
Vessels, net		5		1,302,682			1,348,251
Goodwill				1,579			1,579
Other long-term assets		~~2,11~~10		912,~~679~~954			511,~~456~~720
Deferred dry dock and special survey costs, net				4647,~~857~~154			3748,~~133~~513
Investment in affiliates		8		—			6,650
Due from related parties, long-term		7,12		14,223			14,658
Due from related parties, long-term		8,13		14,658			42,878
Operating lease assets		18		130,397			65,544
Total non-current assets				1,~~375~~453,~~455~~549			1,~~441~~428,~~947~~392
Total assets			$	1,~~549~~579,~~833~~281		$	1,~~555~~568,~~955~~997
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable			$	79,~~872~~611		$	1510,~~355~~605
Accrued expenses		109		2522,~~814~~982			1412,~~337~~525
Due to related parties, short-term		1312		—25,102			3230,~~150~~082
Dividends payable		98		~~4,921~~—			~~4,711~~828
Deferred revenue				74,~~723~~627			28,~~433~~931
Current portion of long-term debt, net of deferred finance costs		1110		86688,~~227~~748			~~172~~704,~~953~~772
Liabilities associated with assets held for sale		7		37,419			—
Current portion of loan payable to affiliate company		12		2,246			—
Total current liabilities				169,976			241,939
Liabilities associated with assets held for sale		6		1,118			34,071
Long-term debt, net of current portion, premium and net of deferred finance costs		11		1,041,956			1,000,164
Operating lease liability, current		18		8,139			4,046
Total non-current liabilities				1,041,956			1,000,164
Total current liabilities				762,573			805,860
Total liabilities			$	1,211,932		$	1,242,103
Long-term debt, net of current portion, premium and net of deferred finance costs		10		359,735			371,815
Commitments and contingencies		14		—			—
Loan payable to affiliate company, net of current portion		12		14,604			—
Operating lease liability, non-current		18		122,158			61,465
Total non-current liabilities				496,497			433,280
Total liabilities			$	1,259,070		$	1,239,140
Commitments and contingencies		13		—			—
Stockholders’ equity
Common stock, $0.0001 par value; 250,000,000 shares authorized; 16,513,935 and 15,873,391 issued and outstanding as of September 30, 2020 and December 31, 2019, respectively		15		2			2
No Preferred stock is issued and outstanding, $0.0001 par value; 10,000,000 shares authorized; no shares of Series C issued and outstanding as of March 31, 2021 and December 31, 2020		14		—			—
Additional paid-in capital		15		510,202			521,275
Common stock, $0.0001 par value; 250,000,000 shares authorized; 16,559,481 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		14		2			2
Accumulated deficit				(172,303	)		(207,425	)
Additional paid-in capital		14		509,728			509,671
Total stockholders’ equity				337,901			313,852
Accumulated deficit				(189,519	)		(179,816	)
Total liabilities and stockholders’ equity			$	1,549,833		$	1,555,955
Total stockholders’ equity				320,211			329,857
Total liabilities and stockholders’ equity			$	1,579,281		$	1,568,997

See unaudited condensed notes to consolidated financial statements.

F-2

NAVIOS MARITIME ACQUISITION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Notes		For the ThreeMonthsEndedSeptember 30, 2020(unaudited)			For the ThreeMonthsEndedSeptember 30, 2019(unaudited)			For the NineMonthsEndedSeptember 30, 2020(unaudited)			For the NineMonthsEndedSeptember 30, 2019(unaudited)
			For the Three Months			For the Three Months
Revenue		2,16	$	78,807		$	58,965		$	288,888		$	194,669
			Ended			Ended
Time charter and voyage expenses				(2,559	)		(5,377	)		(12,091	)		(14,340	)
			March 31, 2021			March 31, 2020
Direct vessel expenses				(3,766	)		(2,439	)		(10,371	)		(7,117	)
	Notes		(unaudited)			(unaudited)
Vessel operating expenses (management fees entirely through related party transactions)		13		(33,969	)		(26,837	)		(93,642	)		(81,224	)
Revenue		2,15,18	$	72,505		$	97,857
General and administrative expenses		13		(4,719	)		(3,732	)		(14,966	)		(15,677	)
Time charter and voyage expenses		12,18		(5,769	)		(6,082	)
Depreciation and amortization		5,6		(16,682	)		(17,216	)		(49,931	)		(52,257	)
Direct vessel expenses				(4,003	)		(3,140	)
Gain on sale of vessels/ Impairment loss		5,6		—			(39,976	)		—			(36,731	)
Vessel operating expenses (management fees entirely through related party transactions)		12		(32,522	)		(29,837	)
Gain on debt repurchase		11		7,010			—			7,010			—
General and administrative expenses		12		(5,057	)		(3,954	)
Interest income		8,13		25			2,384			32			6,840
Depreciation and amortization		5		(16,625	)		(16,606	)
Interest expense and finance cost		11		(20,441	)		(22,849	)		(63,964	)		(69,474	)
Interest income				3			3
Impairment of receivable in affiliated company / Equity in net earnings of affiliated companies		8		—			936			(13,900	)		2,670
Interest expenses and finance cost		10		(18,307	)		(21,843	)
Other income				—			10			—			1,343
Gain on sale of vessels and Impairment loss		5,7,12		15			(13,900	)
Other expense				(470	)		(265	)		(1,943	)		(787	)
Other income				774			—
Net income/ (loss)			$	3,236		$	(56,396	)	$	35,122		$	(72,085	)
Other expense				(717	)		(1,629	)
Dividend declared on restricted shares				(46	)		(65	)		(139	)		(196	)
Net (loss)/ income			$	(9,703	)	$	869
Undistributed loss attributable to Series C participating preferred shares				—			—			—			(13	)
Dividend declared on restricted shares				—			(47	)
Net income/ (loss) attributable to common stockholders, basic		17	$	3,190		$	(56,461	)	$	34,983		$	(72,294	)
Undistributed loss attributable to Series C participating preferred shares				—			—
Undistributed loss attributable to Series C participating preferred shares				—			—			—			13
Net (loss)/ income attributable to common stockholders, basic		16	$	(9,703	)	$	822
Net income/ (loss) attributable to common stockholders, diluted		17	$	3,190		$	(56,461	)	$	34,983		$	(72,281	)
Dividend declared on restricted shares				—			—
Net income/ (loss) per share, basic		17	$	0.20		$	(4.18	)	$	2.20		$	(5.38	)
Undistributed loss attributable to Series C participating preferred shares				—			—
Weighted average number of shares, basic				16,104,011			13,510,361			15,903,447			13,446,836
Net income attributable to common stockholders, diluted		16	$	(9,703	)	$	822
Net income/ (loss) per share, diluted				0.20			(4.18	)		2.18			(5.38	)
Net (loss)/ income per share, basic			$	(0.59	)	$	0.05
Weighted average number of shares, diluted				16,257,957			13,510,361			16,058,579			13,446,836
Weighted average number of shares, basic				16,466,599			15,717,977
Net (loss)/ income per share, diluted			$	(0.59	)	$	0.05
Weighted average number of shares, diluted				16,466,599			15,874,089

See unaudited condensed notes to consolidated financial statements.

F-3

NAVIOS MARITIME ACQUISITION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. dollars)

	Notes		For the Nine MonthsEnded September 30, 2020(unaudited)			For the Nine MonthsEnded September 30, 2019(unaudited)
			For the Three Months			For the Three Months
	Notes		Ended March 31, 2021			Ended March 31, 2020
			(unaudited)			(unaudited)
Operating Activities
Net income/ (loss)			$	35,122		$	(72,085	)
Net (loss)/ income			$	(9,703	)	$	869
Adjustments to reconcile net income/ (loss) to net cash provided by operating activities:
Adjustments to reconcile net (loss)/ income to net cash provided by operating activities:
Gain on debt repurchase		11		(7,010	)		—
Depreciation and amortization		5		16,625			16,606
Depreciation and amortization		5,6		49,931			52,257
Amortization and write-off of deferred finance fees and bond premium		10		1,197			1,512
Amortization and write-off of deferred finance fees and bond premium		11		4,404			3,346
Amortization of dry dock and special survey costs				3,880			2,890
Amortization of dry dock and special survey costs				9,769			7,065
Stock based compensation		14		57			123
Stock based compensation		15		370			694
Gain on sale of vessel and Impairment loss		7		(15	)		13,900
Gain on sale of vessels/ Impairment loss				—			36,731
Impairment loss relating to the investment in Navios Europe II		8		13,900			—
Equity in net earnings of affiliated companies, net of dividends received				—			(2,670	)
Changes in operating assets and liabilities:
Decrease in prepaid expenses and other current assets				3,931			1,595
(Increase)/ Decrease in prepaid expenses and other current assets		4		(4,618	)		1,197
Decrease in inventories				~~582~~1,766			—1,151
Decrease in accounts receivable				201,~~243~~877			11,~~863~~613
Increase in due from related parties, short-term				(2,426	)		(6,402	)
Increase in other long-term assets				(1,234	)		—
Increase in other long term assets				(620	)		—
Increase in due from related parties, long-term				(3,133	)		—
Decrease in due from related parties, long-term				—			2,858
Decrease in accounts payable				(540	)		(4,390	)
Decrease in accounts payable				(8,026	)		(667	)
Increase in accrued expenses		9		10,624			11,725
Increase in accrued expenses				11,466			12,037
Payments for dry dock and special survey costs				(2,521	)		(14,947	)
Payments for dry dock and special survey costs				(30,869	)		(6,781	)
Decrease in due to related parties				(4,981	)		(13,741	)
Decrease in due to related parties, short-term				(20,072	)		(17,057	)
(Decrease)/ Increase in deferred revenue				(4,305	)		2,009
Increase/ (Decrease) in deferred revenue				5,290			(1,726	)
Decrease in operating lease liabilities short and long-term		18		(67	)		—
Net cash provided by operating activities			$	854,~~985~~909		$	2130,~~058~~517
Investing Activities
Loans to affiliates		13		—			(2,000	)
Vessels improvements		5,12		(2,716	)		(5,882	)
Container vessel owning companies acquisition/ vessels improvements		5,7		(46,408	)		(13,108	)
Net cash proceeds from sale of vessels		5, 6		48,096			—
Net cash proceeds from sale of vessel		5		—			46,451
Net cash provided by/ (used in) investing activities			$	45,380		$	(5,882	)
Net cash (used in)/ provided by investing activities			$	(46,408	)	$	31,343
Financing Activities
Loan proceeds, net of deferred finance costs		11,8		132,840			156,588
Loan proceeds from affiliate company		12		18,000			—
Loan repayments		11		(~~144~~61,~~771~~004	)		(~~144~~13,~~120~~167	)
Dividend paid		98		(~~14,485~~828	)		(84,~~240~~755	)
Acquisition of treasury stock				—			(366	)
Debt issuance costs				(1,165	)		—
Net proceeds from equity offering				~~3,041~~—			—304
Net cash (used in)/ provided by financing activities			$	(23,375	)	$	3,862
Net cash used in financing activities			$	(44,997	)	$	(17,618	)
Net increase in cash, cash equivalents and restricted cash				165,~~202~~292			567,~~263~~017
Cash, cash equivalents and restricted cash, beginning of period				4441,~~051~~357			4644,~~609~~051
Cash, cash equivalents and restricted cash, end of period			$	6046,~~253~~649		$	~~102~~51,~~872~~068
Supplemental disclosures of cash flow information
Cash interest paid			$	47,920		$	52,769
Cash interest paid, net of capitalized interest			$	4,949		$	7,041
Non-cash investing activities
Accrued interest on loan to affiliate			$	—		$	2,670
Container vessel owning companies acquisition			$	37,658		$	—
Non-cash financing activities
Stock based compensation			$	~~370~~57		$	~~694~~123
Deferred finance costs			$	638		$	375
Other long term assets			$	3,602		$	5,456

See unaudited condensed notes to consolidated financial statements.

F-4

NAVIOS MARITIME ACQUISITION CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of U.S. dollars, except share data)

	Preferred Stock				Common Stock				AdditionalPaid-inCapital						TotalStockholders’Equity
	Number ofPreferredShares		Amount		Number ofCommonShares		Amount		AdditionalPaid-inCapital			Accumulateddeficit			TotalStockholders’Equity
	Number of				Number of							Accumulated
Balance, December 31, 2019		—		—		15,873,391	$	2	$	521,275		$	(207,425	)	$	313,852
	Preferred		Amount		Common		Amount
Stock based compensation (see Note 15)		—		—		—		—		123			—			123
	Shares				Shares							deficit
Continuous Offering Program (see Note 15)		—		—		63,545		—		304			—			304
Balance, December 31, 2019		—	$	—		15,873,391	$	2	$	521,275		$	(207,425	)	$	313,852
Dividend paid/ declared (see Note 9)		—		—		—		—		(4,755	)		—			(4,755	)
Stock based compensation (see Note 14)		—		—		—		—		123			—			123
Net income		—		—		—		—		—			869			869
COP program		—		—		63,545		—		304			—			304
Balance, March 31, 2020 (unaudited)		—		—		15,936,936	$	2	$	516,947		$	(206,556	)	$	310,393
Dividend paid/ declared		—		—		—		—		(4,755	)		—			(4,755	)
Stock based compensation (see Note 15)		—		—		—		—		123			—			123
Net income (see Note 16)		—		—		—		—		—			869			869
Continuous Offering Program (see Note 15)		—		—		152,954		—		644			—			644
Balance, March 31, 2020 (unaudited)		—	$	—		15,936,936	$	2	$	516,947		$	(206,556	)	$	310,393
Dividend paid/ declared (see Note 9)		—		—		—		—		(4,809	)		—			(4,809	)
	Preferred Stock				Common Stock				AdditionalPaid-inCapital						TotalStockholders’Equity
Net income		—		—		—		—		—			31,017			31,017
	Number of				Number of							Accumulated
Balance, June 30, 2020 (unaudited)		—		—		16,089,890	$	2	$	512,905		$	(175,539	)	$	337,368
	Preferred		Amount		Common		Amount
Stock based compensation (see Note 15)		—		—		—		—		124			—			124
	Shares				Shares							deficit
Continuous Offering Program (see Note 15)		—		—		424,045		—		2,094			—			2,094
Balance, December 31, 2020		—	$	—		16,559,481	$	2	$	509,671		$	(179,816	)	$	329,857
Dividend paid/ declared (see Note 9)		—		—		—		—		(4,921	)		—			(4,921	)
Stock based compensation (see Note 14)		—		—		—		—		57			—			57
Net income		—		—		—		—		—			3,236			3,236
Net loss (see Note 16)		—		—		—		—		—			(9,703	)		(9,703	)
Balance, September 30, 2020 (unaudited)		—		—		16,513,935	$	2	$	510,202		$	(172,303	)	$	337,901
Balance, March 31, 2021 (unaudited)		—	$	—		16,559,481	$	2	$	509,728		$	(189,519	)	$	320,211

	Preferred Stock					Common Stock
	Number ofPreferredShares			Amount		Number ofCommonShares			Amount		AdditionalPaid-inCapital			Accumulateddeficit			TotalStockholders’Equity
Balance, December 31, 2018		1,000		$	—		13,280,927		$	1	$	522,335		$	(141,984	)	$	380,352
Conversion of preferred stock to common (see Note 15)		(1,000	)		—		511,733			—		—			—			—
Stock based compensation (see Note 15)		—			—		—			—		229			—			229
Acquisition of treasury stock		—			—		(64,289	)		—		(366	)		—			(366	)
Dividend paid/ declared (see Note 9)		—			—		—			—		(4,121	)		—			(4,121	)
Net income		—			—		—			—		—			861			861
Balance, March 31, 2019 (unaudited)		—		$	—		13,728,371		$	1	$	518,077		$	(141,123	)	$	376,955
Stock based compensation (see Note 15)		—			—		—			—		231			—			231
Dividend paid/ declared (see Note 9)		—			—		—			—		(4,119	)		—			(4,119	)
Net loss		—			—		—			—		—			(16,550	)		(16,550	)
Balance, June 30, 2019 (unaudited)		—		$	—		13,728,371		$	1	$	514,189		$	(157,673	)	$	356,517
Stock based compensation (see Note 15)		—			—		—			—		234			—			234
Dividend paid/ declared (see Note 9)		—			—		—			—		(4,119	)		—			(4,119	)
Net loss		—			—		—			—		—			(56,396	)		(56,396	)
Balance, September 30, 2019 (unaudited)		—		$	—		13,728,371		$	1	$	510,304		$	(214,069	)	$	296,236

See unaudited condensed notes to consolidated financial statements.

F-5

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 1: DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

Navios Maritime Acquisition Corporation (“Navios Acquisition” or the “Company”) (NYSE: NNA) owns a large fleet of modern crude oil, refined petroleum product and chemical tankers providing world-wide marine transportation services. The Company’s strategy is to charter its vessels to international oil companies, refiners and large vessel operators under long, medium and short-term contracts. The Company is committed to providing quality transportation services and developing and maintaining long-term relationships with its customers. The operations of Navios Acquisition are managed by Navios Tankers Management Inc. (the “Manager”).

Navios Acquisition was incorporated in the Republic of the Marshall Islands on March 14, 2008. On July 1, 2008, Navios Acquisition completed its initial public offering (“IPO”). On May 28, 2010, Navios Acquisition consummated the vessel acquisition which constituted its initial business combination. Following such transaction, Navios Acquisition commenced its operations as an operating company.

On November 22, 2019, an agreement was reached to liquidate Navios Europe I. As a result of the liquidation, which was completed in December 2019 (“Liquidation of Navios Europe I”), Navios Acquisition acquired five vessel owning companies.

InOn ~~October~~November 29, 2019, Navios Acquisition ~~completed~~entered into a ~~registered~~Continuous ~~direct~~Offering ~~offering~~Program ofSales ~~1,875,000~~Agreement for the issuance and sale from time to time shares of ~~its~~Navios Acquisition’s common stock athaving ~~$8.00~~an ~~per~~aggregate ~~share,~~offering ~~raising gross~~price ~~proceeds~~ of up to $1525,000. ~~Total~~The ~~net~~sales ~~proceeds~~were being made pursuant to a prospectus supplement as part of a shelf registration statement which was set to expire in December 2019. Navios Acquisition went effective on a new shelf registration statement which was declared effective on December 23, 2019. Accordingly, an updated Continuous Offering Program Sales Agreement (the ~~above~~“Sales ~~transactions~~Agreement”) was entered into on December 23, ~~net~~2019. As before, the Sales Agreement contains, among other things, customary representations, warranties and covenants by Navios Acquisition and indemnification obligations of ~~agents’~~the ~~costs~~parties thereto as well as certain termination rights for such parties. As of ~~$675~~March 31, ~~and~~2021, ~~offering~~since ~~costs~~the commencement of ~~$957~~the program, ~~amounted~~Navios toAcquisition has issued 956,110 shares of common stock and received net proceeds of $135,~~368~~334.

On ~~November~~April 2921, ~~2019~~2020, ~~Navios~~an ~~Acquisition~~agreement ~~entered~~was ~~into~~reached ~~a Continuous Offering Program Sales Agreement for the issuance and sale from time~~ to ~~time~~liquidate ~~shares of~~ Navios ~~Acquisition’s~~Europe ~~common stock having an aggregate offering price of up to $25,000~~II. ~~The~~As ~~sales were being made pursuant to~~ a ~~prospectus~~result ~~supplement as part~~ of athe ~~shelf~~liquidation, ~~registration statement~~ which was ~~set~~completed ~~to expire~~ in ~~December~~June ~~2019.~~2020 ~~Navios Acquisition went effective on a new shelf registration statement which was declared effective on December 23, 2019. Accordingly, an updated Continuous Offering Program Sales Agreement~~ (~~the~~ “~~Sales~~Liquidation ~~Agreement”)~~of ~~was~~Navios ~~entered into~~Europe ~~on December 23~~II”), ~~2019.~~Navios AsAcquisition ~~before,~~acquired ~~the~~seven ~~updated~~vessel ~~Sales~~owning ~~Agreement~~companies. ~~contains,~~The ~~among~~vessels ~~other~~are ~~things,~~containerships ~~customary representations, warranties~~ and ~~covenants~~meet bythe ~~Navios~~criteria ~~Acquisition~~to ~~and~~be ~~indemnification~~accounted ~~obligations~~for ~~of the parties thereto~~ as ~~well~~assets asheld ~~certain termination rights~~ for ~~such parties~~sale. ~~As of September 30, 2020, since the program commencement Navios Acquisition has issued 910,564 shares of common stock having received net proceeds of $5,140.~~

OnAs ~~April~~of March 2131, ~~2020~~2021, ~~an agreement was reached to liquidate~~ Navios ~~Europe~~Maritime IIHoldings Inc. ~~As a result of the liquidation, which was completed in June 2020~~ (“~~Liquidation of~~ Navios ~~Europe II~~Holdings”), ~~Navios~~had ~~Acquisition acquired seven vessel owning companies~~29.4% ~~The~~of ~~vessels~~the ~~are~~voting ~~containerships~~power and ~~meet~~29.5% of the ~~criteria~~economic interest toin beNavios ~~accounted for as held for sale~~Acquisition.

As of ~~September~~March 3031, ~~2020~~2021, Navios ~~Maritime~~Acquisition ~~Holdings Inc. (“Navios Holdings”)~~ had ~~29.5%~~outstanding: of16,559,481 ~~the~~shares ~~voting power and 29.7%~~ of ~~the economic~~common ~~interest in Navios Acquisition~~stock outstanding.

As of September 30, 2020, Navios Acquisition had: 16,513,935 shares of common stock outstanding.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of presentation: The accompanying interim condensed consolidated financial statements are unaudited, but, in the opinion of management, reflect all adjustments for a fair statement of Navios Acquisition’s unaudited condensed consolidated balance sheets, statement of changes in equity, statements of operations and cash flows for the periods presented. The results of operations for the interim periods are not necessarily indicative of results for the full year. The footnotes are condensed as permitted by the requirements for interim financial statements and accordingly, do not include information and disclosures required under accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. All such adjustments are deemed to be of a normal recurring nature. These interim financial statements should be read in conjunction with the Company’s consolidated financial statements and notes included in Navios Acquisition’s ~~2019~~2020 Annual Report filed on Form 20-F with the Securities and Exchange Commission (“SEC”).

Going Concern

As of March 31, 2021, Navios Acquisition’s current assets totaled $125,732, while current liabilities totaled $762,573, resulting in a negative working capital position of $636,841, primarily related to the classification as current of the $602,600 of 2021 Notes (as defined herein) which mature on November 15, 2021, balloon payments due under its credit facilities and financial liabilities under the sale and leaseback transactions.

During the second quarter of 2021, Navios Acquisition sold the Acrux N, the Vita N, the Ete N, the Fleur N, the Spectrum N, and the Nave Neutrino for an aggregate net sale price of $97,982.

F-6

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

Although the Company is currently attempting to refinance the outstanding amount of its 2021 Notes and has also engaged in discussions with the holders of its 2021 Notes, the successful completion of the attempts described above, including potential refinancing, sales or other action, are dependent on factors outside the Company’s control and therefore there is substantial doubt over the Company’s ability to continue as a going concern for the 12-month period from the date its interim condensed consolidated financial statements were issued. In the meantime, Navios Acquisition’s internal forecasts and projections indicate that the Company will generate sufficient cash to make the required principal and interest payments on its borrowings (abexcluding the above upcoming maturities) ~~Recent~~and ~~accounting~~provide ~~pronouncements~~for the normal working capital requirements of the business for a period of at least 12 months from the date of issuance of these consolidated financial statements. The interim condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

~~In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform~~ (~~Topic 848~~b): ~~Facilitation~~Recent ~~of the Effects of Reference Rate Reform on Financial Reporting”, which provides guidance to alleviate the burden in~~ accounting ~~for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting~~pronouncements principles to contract modifications, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-04 is optional and is effective from March 12, 2020 through December 31, 2022. The company is currently evaluating the impact of ASU 2020-04 on its condensed consolidated financial statements.

InThese ~~August~~condensed ~~2018,~~consolidated ~~FASB~~financial ~~issued~~statements ~~ASU~~should ~~2018-13,~~be ~~“Fair~~read ~~Value~~in ~~Measurement~~conjunction ~~(Topic~~with ~~820): Disclosure Framework-Changes to~~ the ~~Disclosure~~consolidated ~~Requirements~~financial ~~for~~statements ~~Fair~~and related ~~Value~~notes ~~Measurement”.~~included ~~This~~in ~~update~~Navios ~~modifies~~Acquisition’s ~~the~~Annual ~~disclosure~~Report ~~requirements~~ on ~~fair value measurements. ASU 2018~~Form 20-~~13 is effective~~ F for ~~fiscal~~the ~~years beginning~~year ~~after~~ended December 1531, ~~2019, and earlier adoption is permitted~~2020. ~~The adoption of this new accounting guidance did not have a material effect on the Company’s consolidated financial statements.~~

~~In October 2018, FASB issued ASU 2018-17, Consolidation~~ (~~Topic 810~~c): ~~“Targeted~~Principles ~~Improvements~~of ~~to Related~~consolidation: ~~Party~~The ~~Guidance~~accompanying ~~for~~consolidated ~~Variable~~financial ~~Interest~~statements ~~Entities”~~include ~~(“ASU~~the ~~2018-17”).~~accounts ~~ASU~~of ~~2018-17~~Navios ~~provides~~Acquisition, ~~that indirect interests held through related parties in common control arrangements should be considered on~~ a ~~proportional basis for determining whether fees paid to decision makers and service providers are variable interests. This is consistent with how indirect interests held through related parties~~ ~~under~~Marshall ~~common~~Islands control are considered for determining whether a reporting entity must consolidate a Variable Interest Entity (“VIE”). For Public business entities the amendments are effective for fiscal years beginning after December 15corporation, ~~2019,~~ and ~~interim~~its ~~periods~~majority ~~within~~owned ~~those fiscal years~~subsidiaries. ~~The~~All ~~adoption~~significant ofintercompany ~~this~~balances ~~new~~and ~~accounting~~transactions ~~guidance did not~~ have abeen ~~material~~eliminated ~~effect~~in on the ~~Company’s~~ consolidated ~~financial~~ statements.

(b) Principles of consolidation: The accompanying consolidated financial statements include the accounts of Navios Acquisition, a Marshall Islands corporation, and its majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidated statements.

The Company also consolidates entities that are determined to be variable interest entities (“VIEs”) as defined in the accounting guidance, if it determines that it is the primary beneficiary. A variable interest entity is defined as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights.

~~Based~~(d) onSubsidiaries: ~~internal~~Subsidiaries ~~forecasts~~are ~~and~~those ~~projections~~entities ~~that~~in ~~take~~which ~~into~~the ~~account~~Company ~~reasonably~~has ~~possible~~an ~~changes~~interest inof ~~Company’s~~more ~~trading~~than ~~performance, management~~one ~~believes~~half ~~that~~of the ~~Company~~voting ~~has~~rights and/or ~~adequate~~otherwise ~~financial~~has ~~resources~~power to ~~continue~~govern inthe ~~operation~~financial and ~~meet~~operating ~~its~~policies. ~~financial~~The ~~commitments,~~acquisition ~~including~~method ~~but~~of ~~not~~accounting ~~limited~~is used to ~~capital~~account ~~expenditures~~for ~~and~~the ~~debt~~acquisition ~~service~~of ~~obligations,~~subsidiaries ~~for~~if deemed to be a ~~period~~business ofcombination. atThe ~~least~~cost ~~twelve~~of ~~months~~an acquisition ~~from~~is measured as the ~~date~~fair value of ~~issuance~~the ofassets ~~these~~given ~~consolidated~~up, ~~financial~~shares ~~statements~~issued or liabilities undertaken at the date of acquisition. ~~Accordingly,~~The excess of the ~~Company~~cost ~~continues~~of toacquisition ~~adopt~~over the ~~going~~fair ~~concern~~value ~~basis~~of inthe ~~preparing~~net ~~its~~assets ~~financial~~acquired ~~statements~~and liabilities assumed is recorded as goodwill.

As of March 31, 2021, the entities included in these consolidated financial statements were:

Navios Maritime Acquisition

Corporation and Subsidiaries:

Nature

Country of

Incorporation

2021

2020

Company Name

Aegean Sea Maritime Holdings Inc.

Sub-Holding Company

Marshall Is.

1/1 –3/31

1/1 – 3/31

Amorgos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Andros Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Antikithira Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Antiparos Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Amindra Navigation Co.

Sub-Holding Company

Marshall Is.

1/1 – 3/31

Crete Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Folegandros Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Ikaria Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Ios Shipping Corporation

Vessel-Owning Company⁽¹⁾

Cayman Is.

1/1 – 3/31

Kithira Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Kos Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Mytilene Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

1/1 –3/31

Navios Maritime Acquisition Corporation

Holding Company

Marshall Is.

1/1 – 3/31

F-7

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

(c) Equity method investments: Affiliates are entities over which the Company generally has between 20% and 50% of the voting rights, or over which the Company has significant influence, but it does not exercise control. Investments in these entities are accounted for under the equity method of accounting. Under this method, the Company records an investment in the stock of an affiliate at cost, and adjusts the carrying amount for its share of the earnings or losses of the affiliate subsequent to the date of investment and reports the recognized earnings or losses in income. Dividends received from an affiliate reduce the carrying amount of the investment. The Company recognizes gains and losses in earnings for the issuance of shares by its affiliates, provided that the issuance of such shares qualifies as a sale of such shares. When the Company’s share of losses in an affiliate equals or exceeds its interest in the affiliate, the Company does not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate.

Navios Acquisition Finance (U.S.) Inc.

Co-Issuer

Delaware

1/1 – 3/31

Rhodes Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Serifos Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Shinyo Loyalty Limited

Former Vessel-Owning Company

Hong Kong

1/1 – 3/31

Shinyo Navigator Limited

Former Vessel-Owning Company

Hong Kong

1/1 – 3/31

Sifnos Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Skiathos Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Skopelos Shipping Corporation

Vessel-Owning Company⁽¹⁾

Cayman Is.

1/1 – 3/31

Syros Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Thera Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Tinos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Oinousses Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Psara Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Antipsara Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Samothrace Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Thasos Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Limnos Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Skyros Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Alonnisos Shipping Corporation

Former Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Makronisos Shipping Corporation

Former Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Iraklia Shipping Corporation

Vessel-Owning Company⁽¹⁾

Marshall Is.

1/1 – 3/31

Paxos Shipping Corporation

Former Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Antipaxos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Donoussa Shipping Corporation

Former Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Schinousa Shipping Corporation

Former Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Navios Acquisition Europe Finance Inc

Sub-Holding Company

Marshall Is.

1/1 – 3/31

Kerkyra Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Lefkada Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Zakynthos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Leros Shipping Corporation

Vessel-Owning Company⁽¹¹⁾

Marshall Is.

1/1 – 3/31

Kimolos Shipping Corporation

Former Vessel-Owning Company⁽⁵⁾

Marshall Is.

1/1 – 3/31

Samos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Tilos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Delos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Agistri Shipping Corporation

Operating Subsidiary

Malta

1/1 – 3/31

Olivia Enterprises Corp.

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Cyrus Investments Corp.

Vessel-Owning Company

Marshall Is.

1/1 – 3/31

Doxa International Corp.

Vessel-Owning Company⁽²⁾

Marshall Is.

1/1 – 3/31

Tzia Shipping Corp.

Vessel-Owning Company⁽²⁾

Marshall Is.

1/1 – 3/31

—

Navios Maritime Midstream Partners GP LLC

Holding Company

Marshall Is.

1/1 – 3/31

Navios Maritime Midstream Operating LLC

Sub-Holding Company

Marshall Is.

1/1 – 3/31

Navios Maritime Midstream Partners L.P.

Sub-Holding Company

Marshall Is.

1/1 – 3/31

Navios Maritime Midstream Partners Finance (US) Inc.

Co-borrower

Delaware

1/1 – 3/31

Shinyo Kannika Limited

Former Vessel-Owning Company

Hong Kong

1/1 – 3/31

Shinyo Ocean Limited

Former Vessel-Owning Company⁽³⁾

Hong Kong

1/1 – 3/31

Shinyo Saowalak Limited

Vessel-Owning Company

British Virgin Is.

1/1 – 3/31

Shinyo Kieran Limited

Vessel-Owning Company

British Virgin Is.

1/1 – 3/31

Shinyo Dream Limited

Former Vessel-Owning Company⁽⁴⁾

Hong Kong

1/1 – 3/31

1/1 –3/31

Sikinos Shipping Corporation

Vessel-Owning Company⁽¹⁰⁾

Marshall Is.

1/1 – 3/31

Alkmene Shipping Corporation

Vessel-Owning Company⁽⁶⁾

Marshall Is.

1/1 – 3/31

Persephone Shipping Corporation

Vessel-Owning Company⁽⁶⁾

Marshall Is.

1/1 – 3/31

Rhea Shipping Corporation

Vessel-Owning Company^(1),(6)

Marshall Is.

1/1 – 3/31

Navios Acquisition evaluates its equity method investments, for other than temporary impairment, on a quarterly basis. Consideration is given to (1) the length of time and the extent to which the fair value has been less than the carrying value, (2) the financial condition and near-term prospects and (3) the intent and ability of the Company to retain its investments for a period of time sufficient to allow for any anticipated recovery in fair value.

(d) Subsidiaries: Subsidiaries are those entities in which the Company has an interest of more than one half of the voting rights and/or otherwise has power to govern the financial and operating policies. The acquisition method of accounting is used to account for the acquisition of subsidiaries if deemed to be a business combination. The cost of an acquisition is measured as the fair value of the assets given up, shares issued or liabilities undertaken at the date of acquisition. The excess of the cost of acquisition over the fair value of the net assets acquired and liabilities assumed is recorded as goodwill.

As of September 30, 2020, the entities included in these consolidated financial statements were:

Navios Maritime Acquisition Corporation and Subsidiaries:	Nature	Country of Incorporation	2020	2019
Company Name
Aegean Sea Maritime Holdings Inc.	Sub-Holding Company	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Amorgos Shipping Corporation	Vessel-Owning Company	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Andros Shipping Corporation	Vessel-Owning Company	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Antikithira Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Antiparos Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Amindra Navigation Co.	Sub-Holding Company	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Crete Shipping Corporation	Vessel-Owning Company	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Folegandros Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Ikaria Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Ios Shipping Corporation	Vessel-Owning Company(8)	Cayman Is.	1/1 – 9/30	1/1 – 9/30
Kithira Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Kos Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Mytilene Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Navios Maritime Acquisition Corporation	Holding Company	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Navios Acquisition Finance (U.S.) Inc.	Co-Issuer	Delaware	1/1 – 9/30	1/1 – 9/30
Rhodes Shipping Corporation	Vessel-Owning Company	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Serifos Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Shinyo Loyalty Limited	Former Vessel-Owning Company(1)	Hong Kong	1/1 – 9/30	1/1 – 9/30
Shinyo Navigator Limited	Former Vessel-Owning Company(2)	Hong Kong	1/1 – 9/30	1/1 – 9/30
Sifnos Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Skiathos Shipping Corporation	Vessel-Owning Company(8)	Marshall Is.	1/1 – 9/30	1/1 – 9/30
Skopelos Shipping Corporation	Vessel-Owning Company(8)	Cayman Is.	1/1 – 9/30	1/1 – 9/30

F-8

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

Syros Shipping Corporation

Vessel-Owning Company(8)

Marshall Is.

1/1 – 9/30

Aphrodite Shipping Corporation

Vessel-Owning Company(6)

Marshall Is.

1/1 – 3/31

Thera Shipping Corporation

Vessel-Owning Company(8)

Marshall Is.

1/1 – 9/30

Dione Shipping Corporation

Vessel-Owning Company(6)

Marshall Is.

1/1 – 3/31

Tinos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Bole Shipping Corporation

Vessel-Owning Company(7),(14)

Marshall Is.

1/1 – 3/31

—

Oinousses Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Boysenberry Shipping Corporation

Vessel-Owning Company(7), (8)

Marshall Is.

1/1 – 3/31

—

Psara Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Brandeis Shipping Corporation

Vessel-Owning Company(7),(12)

Marshall Is.

1/1 – 3/31

—

Antipsara Shipping Corporation

Vessel-Owning Company(8)

Marshall Is.

1/1 – 9/30

Buff Shipping Corporation

Vessel-Owning Company(7),(13)

Marshall Is.

1/1 – 3/31

—

Samothrace Shipping Corporation

Vessel-Owning Company(8)

Marshall Is.

1/1 – 9/30

Cadmium Shipping Corporation

Vessel-Owning Company(7),(16)

Marshall Is.

1/1 – 3/31

—

Thasos Shipping Corporation

Vessel-Owning Company(8)

Marshall Is.

1/1 – 9/30

Celadon Shipping Corporation

Vessel-Owning Company(7),(15)

Marshall Is.

1/1 – 3/31

—

Limnos Shipping Corporation

Vessel-Owning Company(8)

Marshall Is.

1/1 – 9/30

Cerulean Shipping Corporation

Vessel-Owning Company(7), (9)

Marshall Is.

1/1 – 3/31

—

Skyros Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Letil Navigation Limited

Sub-holding Company

Marshall Is.

1/1 – 3/31

—

Alonnisos Shipping Corporation

Former Vessel-Owning Company(4)

Marshall Is.

1/1 – 9/30

Makronisos Shipping Corporation

Former Vessel-Owning Company(4)

Marshall Is.

1/1 – 9/30

Iraklia Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Paxos Shipping Corporation

Former Vessel-Owning Company(5)

Marshall Is.

1/1 – 9/30

Antipaxos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Donoussa Shipping Corporation

Former Vessel-Owning Company(6)

Marshall Is.

1/1 – 9/30

Schinousa Shipping Corporation

Former Vessel-Owning Company(7)

Marshall Is.

1/1 – 9/30

Navios Acquisition Europe Finance Inc

Sub-Holding Company

Marshall Is.

1/1 – 9/30

Kerkyra Shipping Corporation

Vessel-Owning Company(3)

Marshall Is.

1/1 – 9/30

Lefkada Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Zakynthos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Leros Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Kimolos Shipping Corporation

Former Vessel-Owning Company(13)

Marshall Is.

1/1 – 9/30

Samos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Tilos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Delos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Agistri Shipping Corporation

Operating Subsidiary

Malta

1/1 – 9/30

Olivia Enterprises Corp.

Vessel-Owning Company(10)

Marshall Is.

1/1 – 9/30

Cyrus Investments Corp.

Vessel-Owning Company(10)

Marshall Is.

1/1 – 9/30

Doxa International Corp.

Vessel-Owning Company(10)

Marshall Is.

1/1 – 9/30

Tzia Shipping Corp.

Vessel-Owning Company(10)

Marshall Is.

6/4 – 9/30

—

Navios Maritime Midstream Partners GP LLC

Holding Company

Marshall Is.

1/1 – 9/30

Navios Maritime Midstream Operating LLC

Sub-Holding Company

Marshall Is.

1/1 – 9/30

Navios Maritime Midstream Partners L.P.

Sub-Holding Company

Marshall Is.

1/1 – 9/30

Navios Maritime Midstream Partners Finance (US) Inc.

Co-borrower

Delaware

1/1 – 9/30

Shinyo Kannika Limited

Former Vessel-Owning Company

Hong Kong

1/1 – 9/30

Shinyo Ocean Limited

Former Vessel-Owning Company(11)

Hong Kong

1/1 – 9/30

Shinyo Saowalak Limited

Vessel-Owning Company

British Virgin Is.

1/1 – 9/30

Shinyo Kieran Limited

Vessel-Owning Company

British Virgin Is.

1/1 – 9/30

Shinyo Dream Limited

Former Vessel-Owning Company(12)

Hong Kong

1/1 – 9/30

Sikinos Shipping Corporation

Vessel-Owning Company

Marshall Is.

1/1 – 9/30

Alkmene Shipping Corporation

Vessel-Owning Company(14)

Marshall Is.

1/1 – 9/30

—

Persephone Shipping Corporation

Vessel-Owning Company(14)

Marshall Is.

1/1 – 9/30

—

Rhea Shipping Corporation

Vessel-Owning Company(14)

Marshall Is.

1/1 – 9/30

—

Aphrodite Shipping Corporation

Vessel-Owning Company(14)

Marshall Is.

1/1 – 9/30

—

Dione Shipping Corporation

Vessel-Owning Company(14)

Marshall Is.

1/1 – 9/30

—

(1)	Currently, vessel-operating company under a sale and leaseback transaction.

(2)	Bareboat chartered-in vessels with purchase option, expected to be delivered in each of the third quarter of 2021 and the third quarter of 2022.

(3)	In May 10, 2019, Navios Acquisition sold the Shinyo Ocean, a 2001-built VLCC vessel of 281,395 dwt to an unaffiliated third party for a sale price of $12,525.

(4)	On March 25, 2019, Navios Acquisition sold the C. Dream, a 2000-built VLCC vessel of 298,570 dwt to an unaffiliated third party for a sale price of $21,750.

(5)	On October 8, 2019, Navios Acquisition sold the Nave Electron, a 2002-built VLCC vessel of 305,178 dwt to an unaffiliated third party for a sale price of $25,250.

(6)	In December 2019, Navios Acquisition acquired five product tankers, two LR1 product tankers and three MR1 product tankers following the Liquidation of Navios Europe I.

(7)	In June 2020, Navios Acquisition acquired seven vessel owning companies following the Liquidation of Navios Europe II.

(8)	In March 2021, Navios Acquisition sold the Solstice N, a 2007-built container vessel of 3,398 teu to an unaffiliated party for a gross sale price of $ 11,000.

(9)	In January 2021, Navios Acquisition sold the Allegro N, a 2014-built container vessel of 3,421 teu to an unaffiliated party for a gross sale price of $ 14,075.

(10)	In March 2021, Navios Acquisition sold the Nave Celeste, a 2003-built VLCC vessel of 298,717 dwt to an unaffiliated party for a sale price of $ 24,400.

(11)	In June 2021, Navios Acquisition sold the Nave Neutrino, a 2003-VLCC vessel of 298,287 dwt to an unaffiliated party for a sale price of $25,000.

(12)	In May 2021, Navios Acquisition sold the Ete N a 2012-built container vessel of 41,139 dwt to a related party for a sale price of $19,500.

(13)	In May 2021, Navios Acquisition sold the Fleur N a 2012-built container vessel of 41,130 dwt to a related party for a sale price of $19,500.

(14)	In April 2021, Navios Acquisition sold the Spectrum N a 2009-built container vessel of 34,333 dwt to a related party for a sale price of $16,500

(15)	In May 2021, Navios Acquisition sold the Vita N, a 2010-built container vessel of 23,359 dwt, to an unaffiliated third party for a sale price of $9,125.

(16)	In May 2021, Navios Acquisition sold the Acrux N, a 2010-built container vessel of 23,338 dwt, to an unaffiliated third party for a sale price of $9,338.

(e) Revenue and Expense Recognition:

Revenue Recognition: On January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from Contracts with Customers (ASC 606). The guidance provides a unified model to determine how revenue is recognized. In doing so, the Company makes judgments including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each performance obligation. Revenues are recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

F-9

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

Bole Shipping Corporation	Vessel-Owning Company(15)	Marshall Is.	6/29 – 9/30	—
Boysenberry Shipping Corporation	Vessel-Owning Company(15)	Marshall Is.	6/29 – 9/30	—
Brandeis Shipping Corporation	Vessel-Owning Company(15)	Marshall Is.	6/29 – 9/30	—
Buff Shipping Corporation	Vessel-Owning Company(15)	Marshall Is.	6/29 – 9/30	—
Cadmium Shipping Corporation	Vessel-Owning Company(15)	Marshall Is.	6/29 – 9/30	—
Celadon Shipping Corporation	Vessel-Owning Company(15)	Marshall Is.	6/29 – 9/30	—
Cerulean Shipping Corporation	Vessel-Owning Company(15)	Marshall Is.	6/29 – 9/30	—

The Company has determined to recognize lease revenue as a combined single lease component for all time charters (operating leases) as the related lease component and non-lease component will have the same timing and pattern of the revenue recognition of the combined single lease component.

The Company’s contract revenues from time chartering and pooling arrangements are governed by ASC 842 “Leases”. The Company has determined to recognize lease revenue as a combined single lease component for all time charters (1operating leases) ~~Former~~as ~~vessel~~the related lease component and non-~~owner~~lease component will have the same timing and pattern of the ~~Shinyo~~revenue ~~Splendor~~recognition ~~which~~of ~~was~~the ~~sold~~combined single lease component. The performance obligations in a time charter contract are satisfied over term of the contract beginning when the vessel is delivered to anthe ~~unaffiliated~~charterer ~~third~~until ~~party~~it onis ~~May~~redelivered 6,back ~~2014~~to the Company.

~~(2)~~Revenue ~~Former~~from ~~vessel-owner~~time ofchartering ~~the Shinyo Navigator which was sold to an unaffiliated third party on December 6, 2013.~~

Revenues from time chartering of vessels are accounted for as operating leases and are thus recognized on a straight-line basis as the average revenue over the rental periods of such charter agreements, as service is performed. The performance obligations in a time charter contract are satisfied over term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. The Company determined that all time charter contracts are considered operating leases and therefore fall under the scope of ASC 842 because: (3i) the ~~Navios~~vessel ~~Maritime~~is ~~Midstream~~an ~~Partners~~identifiable Lasset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use.P The transition guidance associated with ASC 842 allows for certain practical expedients to the lessors. The Company elected to not separate the lease and non-lease components included in the time charter revenue because (~~“Navios~~i) the ~~Midstream”~~pattern of revenue recognition for the lease and non-lease components (included in the daily hire rate) ~~acquired~~is ~~all~~the same. The daily hire rate represents the hire rate for a bare boat charter as well as the compensation for expenses incurred running the vessel such as crewing expense, repairs, insurance, maintenance and lubes. Both the lease and non-lease components are earned by passage of time. A time charter involves placing a vessel at the ~~outstanding~~charterers’ ~~shares~~disposal for a period of ~~capital~~time ~~stock~~during which the charterer uses the vessel in return for the payment of a specified daily hire rate. Under time charters, operating costs such as for crews, maintenance and insurance are typically paid by the owner of the vessel~~-owning~~. ~~subsidiary~~Revenues onfrom time chartering of vessels amounted to $65,221 and $59,265 for the three month periods ended March 31, 292021 and 2020, ~~2018~~respectively. The majority of revenue from time chartering is usually collected in advance.

(4) Each company had the rights over a shipbuilding contract of an MR2 product tanker vessel. In February 2015, these shipbuilding contracts were terminated, with no exposure to Navios Acquisition, due to the shipyard’s inability to issue a refund guarantee.

(5) Former vessel-owner of the Nave Lucida which was sold to an unaffiliated third party on January 27, 2016.

(6) Former vessel-owner of the Nave Universe which was sold to an unaffiliated third party on October 4, 2016.

(7) Former vessel-owner of the Nave Constellation which was sold to an unaffiliated third party on November 15, 2016.

(8) Currently, vessel-operating company under a sale and leaseback transaction.

(9) The vessel Shinyo Kannika was sold to an unaffiliated third party on March 22, 2018.

(10) Bareboat chartered-in vessels with purchase option, expected to be delivered in each of the fourth quarter of 2020, the first and the third quarters of 2021 and the second quarter of 2022.

(11) In March 2019, the Shinyo Ocean, a 2001-built VLCC vessel of 281,395 dwt was involved in a collision incident. The Company maintains insurance coverage for such types of events (subject to applicable deductibles and other customary limitations). In May 10, 2019, Navios Acquisition sold the Shinyo Ocean, a 2001-built VLCC vessel of 281,395 dwt to an unaffiliated third party for a sale price of $12,525.

(12) On March 25, 2019, Navios Acquisition sold the C. Dream, a 2000-built VLCC vessel of 298,570 dwt to an unaffiliated third party for a sale price of $21,750.

(13) On October 8, 2019, Navios Acquisition sold the Nave Electron, a 2002-built VLCC vessel of 305,178 dwt to an unaffiliated third party for a sale price of $25,250.

(14) In December 2019, Navios Acquisition acquired five product tankers, two LR1 product tankers and three MR1 product tankers following the Liquidation of Navios Europe I.

(15) In June 2020, Navios Acquisition acquired seven vessel owning companies following the Liquidation of Navios Europe II.

(g) Assets Held for Sale/ Liabilities associated with Assets Held for Sale: It is the Company’s policy to dispose of vessels and other fixed assets when suitable opportunities occur and not necessarily to keep them until the end of their useful life. The Company classifies assets and groups of assets and liabilities that are intended to be sold (disposal groups) as being held for sale when the following criteria are met: management has committed to a plan to sell the asset or the disposal group; the asset or disposal group is available for immediate sale in its present condition; an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year; the asset ordisposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets or disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet the criteria to be held for sale.

(f) Revenue and Expense Recognition:

F-10

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 will apply to both types of leases – capital (or finance) leases and operating leases. According to the new Accounting Standard, (a) lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months and (b) previous accounting standards for lessors will be updated to align certain requirements with the updates to lessee accounting standards and the revenue recognition accounting standards. ASU 2016 – 02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 Leases (“ASU 2018-10”). The amendments in ASU 2018-10 affect narrow aspects of the guidance issued in the amendments in ASU 2016-02. For entities that early adopted Topic 842, the amendments are effective upon issuance of this Update, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. In addition in July 2018, the FASB issued ASU 2018-11, Targeted Improvements to Topic 842 Leases (“ASU 2018-11). The improvements in ASU 2018-11 provide for (a) an optional new transition method for adoption that results in initial recognition of a cumulative effect adjustment to retained earnings in the year of adoption and (b) a practical expedient for lessors, under certain circumstances, to combine the lease and non-lease components of revenues for presentation purposes.

The Company has elected to early adopt the requirements of ASU 2016-02 effective January 1, 2018, using the modified retrospective method which is consistent, with the approach the Company has elected under the new revenue standard, and elected to apply the additional optional transition method along with the following practical expedients: (i) a package of practical expedients which does not require the Company to reassess: (1) whether any expired or existing contracts are or contain leases; (2) lease classification for any expired or existing leases; and (3) whether initial direct costs for any expired or existing leases would qualify for capitalization under ASC 842; (ii) to account for non-lease components (primarily crew and maintenance services) of time charters as a single lease component as the timing and pattern of transfer of the non-lease components and associated lease component are the same, the lease components, if accounted for separately, would be classified as an operating lease, and such non-lease components are not predominant components of the combined component. The Company has determined to recognize lease revenue as a combined single lease component for all time charters (operating leases) as the related lease component and non-lease component will have the same timing and pattern of the revenue recognition of the combined single lease component. The performance obligations in a time charter contract are satisfied over term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. As a result of adoption, there was no cumulative impact to the Company’s retained earnings at January 1, 2018.

The Company’s contract revenues from time chartering and pooling arrangements are governed by ASU 2016-02 “Leases”, which the Company early adopted on January 1, 2018. Upon adoption of ASC 606 and ASC 842, the timing and recognition of earnings from the pool arrangements and time charter contracts to which the Company is party did not change from previous practice. The Company has determined to recognize lease revenue as a combined single lease component for all time charters (operating leases) as the related lease component and non-lease component will have the same timing and pattern of the revenue recognition of the combined single lease component. The performance obligations in a time charter contract are satisfied over term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. As a result of the adoption of these standards, there was no effect on the Company’s opening retained earnings, consolidated balance sheets and consolidated statements of income.

In December 2018, FASB issued ASU 2018-20, Leases (Topic 842), “Narrow-Scope Improvements for Lessors”: to clarify guidance for lessors on sales taxes and other similar taxes collected from lessees, certain lessor costs and recognition of variable payments for contracts with lease and non-lease components. The Company has early adopted the standard effective January 1, 2018 and is using that date as the date of initial application. The adoption of this guidance had no impact on the Company’s disclosures to the consolidated financial statements.

Revenue from time chartering

Revenues from time chartering of vessels are accounted for as operating leases and are thus recognized on a straight-line basis as the average revenue over the rental periods of such charter agreements, as service is performed. A time charter involves placing a vessel at the charterers’ disposal for a period of time during which the charterer uses the vessel in return for the payment of a specified daily hire rate. Under time charters, operating costs such as for crew, maintenance and insurance are typically paid by the owner of the vessel. Revenues from time chartering of vessels amounted to $69,418 and $38,785 for the three month periods ended September 30, 2020 and 2019, respectively. For the nine month periods ended September 30, 2020 and 2019, revenues from time chartering of vessels amounted to $198,583 and $129,505, respectively. The majority of revenue from time chartering is usually collected in advance.

F-11

NAVIOS MARITIME ACQUISITION CORPORATION

UNAUDITED CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

Pooling arrangements

For vessels operating in pooling arrangements, the Company earns a portion of total revenues generated by the pool, net of expenses incurred by the pool. The amount allocated to each pool participant vessel, including the Company’s vessels, is determined in accordance with an agreed-upon formula, which are determined by the margins awarded to each vessel in the pool based on the vessel’s age, design and other performance characteristics. Revenue under pooling arrangements is accounted for as variable rate operating leases on the accrual basis and is recognized in the period in which the variability is resolved. The Company recognizes net pool revenue on a monthly and quarterly basis, when the vessel has participated in a pool during the period and the amount of pool revenue can be estimated reliably based on the pool report. The allocation of such net revenue may be subject to future adjustments by the pool however, such changes are not expected to be material. Revenue for vessels operating in pooling arrangements amounted to $75,~~891~~131 and $1322,~~898~~676 for the three month periods ended ~~September~~March 3031, ~~2020 and~~2021 ~~2019, respectively. For the nine month periods ended September 30, 2020~~ and ~~2019~~ 2020, ~~revenue operating in pooling arrangements amounted to $47,249 and $46,494,~~ respectively. The majority of revenue from pooling arrangements is usually collected through the month they are incurred.

Revenue from voyage contracts

The Company’s revenues earned under voyage contracts (revenues for the transportation of cargo) were previously recognized ratably over the estimated relative transit time of each voyage. A voyage was deemed to commence when a vessel was available for loading and was deemed to end upon the completion of the discharge of the current cargo. Under a voyage charter, a vessel is provided for the transportation of specific goods between specific ports in return for payment of an agreed upon freight per ton of cargo. Upon adoption of ASC 606, Revenue from Contracts With Customers, the Company recognizes revenue ratably from port of loading to when the charterer’s cargo is discharged as well as defer costs that meet the definition of “costs to fulfill a contract” and relate directly to the contract. Revenues earned under voyage contracts amounted to $01,965 and $69,~~479~~759 for the three month periods ended ~~September 30,~~ ~~2020 and 2019, respectively. For the nine month periods ended September~~March 3031, ~~2020~~2021 and ~~2019~~2020, ~~revenues under voyage contracts amounted to $9,030 and $16,157,~~ respectively. Capitalized costs asfor each of ~~September~~March 3031, ~~2020~~2021 and December 31, ~~2019~~2020 related to costs to fulfill the contract amounted to $0 ~~and $103, respectively, and are included under caption “Prepaid expenses and other current assets”~~. Accounts receivable, net, as of ~~September~~March 3031, ~~2020~~2021 that related to voyage contracts was $~~8,592~~ 287 (December 31, ~~2019~~2020: $~~12,219~~252). The majority of revenue from voyage contracts is usually collected after the discharging takes place.

Revenue from profit sharing

Profit-sharing revenues are calculated at an agreed percentage of the excess of the charterer’s average daily income (calculated on a quarterly or half-yearly basis) over an agreed amount and accounted for on an accrual basis based on provisional amounts and for those contracts that provisional accruals cannot be made due to the nature of the profit share elements, these are accounted for on the actual cash settlement. Profit sharing for the three month periods ended ~~September~~March 3031, ~~2020~~2021 and ~~2019 amounted to $2,180 and $(197), respectively. For the nine month periods ended September 30,~~ 2020 ~~and 2019, profit sharing revenues~~ amounted to $~~34,024~~188 and $26,~~513~~157, respectively.

Revenues are recorded net of address commissions. Address commissions represent a discount provided directly to the charterers based on a fixed percentage of the agreed upon charter or freight rate. Since address commissions represent a discount (sales incentive) on services rendered by the Company and no identifiable benefit is received in exchange for the consideration provided to the charterer, these commissions are presented as a reduction of revenue.

Options to extend or terminate a lease

The Company’s vessels have the following options to extent or renew their charters:

Vessel		Option
Nave Sextans		Charterer’s option to extend the charter for one year at $18,750 net per day.
Hector N		Charterer’s option to extend the charter for up six months at $12,591 net per day.
Perseus N		Charterer’s option to extend the charter for six months at $13,825 net per day.
Nave Pyxis		Charterer’s option to extend the charter for six months at $14,023 net per day.
Star N		Charterer’s option to extend the charter for up to four months at $11,603 net per day.
Nave Bellatrix		Charterer’s option to extend the charter for up to six months: a) up to three months at $12,838 net per day; and b) up to three months at $13,578 net per day.
Nave Pulsar		Charterer’s option to extend the charter for six months at $15,553 net per day plus ice-transit premium.
Nave Rigel		Charterer has the option to charter the vessel for an optional year at a rate of $17,063 net per day.
Nave Equinox		Charterer has the option to charter the vessel for an optional year at a rate of $16,294 net per day.
Nave Cetus		Charterer has the option to charter the vessel for an optional year at a rate of $17,063 net per day.
Nave Equinox		Charterer has the option to charter the vessel for an optional six months period at a rate of $16,294 net per day.
Nave Alderamin		Charterer has the option to charter the vessel for an optional year at a rate of $14,438 net per day.
Nave Orion		Charterer has the option to charter the vessel for an optional year at a rate of $14,438 net per day.
Nave Capella		Charterer has the option to charter the vessel for an optional year at a rate of $14,438 net per day.
Nave Estella		Charterer has the option to charter the vessel for an optional year at a rate of $14,630 net per day.
Nave Titan		Charterer’s option to extend the charter for up to four months at $14,072 net per day.
Nave Atria		Charterer’s option to extend the charter for up to six months at $14,072 net per day.
Nave Aquila		Charterer’s option to extend the charter for up to four months at $12,838 net per day.
Nave Velocity		Charterer’s option to extend the charter for one year at $16,541 net per day plus one year at $17,528 net per day.
Nave Sextans		Charterer’s option to extend the charter for up to six months at $15,689 net per day.

F-1211

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

Nave Estella		Charterer has the option to charter the vessel for an optional year at a rate of $14,630 net per day.
Nave Jupiter		Charterer’s option to extend the charter for up to ten months: a) up to three months at $7,653 net per day; b) up to four months at $9,875 net per day; and c) up to three months at $11,850 net per day.
Nave Titan		Charterer’s option to extend the charter for up to four months at $14,072 net per day.
Nave Atria		Charterer’s option to extend the charter for up to six months at $14,072 net per day.
Nave Aquila		Charterer’s option to extend the charter for up to four months at $12,838 net per day.
Nave Velocity		Charterer’s option to extend the charter for six months at $13,331 net per day
Nave Jupiter		Charterer’s option to extend the charter for up to four months at $15,306 net per day.
Nave Dorado		Charterer’s option to extend the charter for up to ten months: a) up to three months at $7,653 net per day; b) up to four months at $9,875 net per day; and c) up to three months at $11,850 net per day.
Vita N		Charterer has the option to charter the vessel for four to six months at a rate of $8,663 net per day.
Nave Luminosity		Charterer has the option to charter the vessel for an optional year at a rate of $18,022 net per day.
Nave Spherical		Contract provides 100% of BITR TD3C-TCE index plus $5,000 premium. Charterer’s option to extend for one year at TD3C-TCE index plus $1,500 premium.
Nave Galactic		Contract provides adjusted BITR TD3C-TCE index up to $38,759 and 50% thereafter with $17,775 floor. Charterer’s option to extend for six months at same terms.
Nave Universe		Contract provides adjusted BITR TD3C-TCE index up to $38,759 and 50% thereafter with $17,775 floor. Charterer’s option to extend for six months at same terms.
Nave Constellation		Charterer’s option to extend the charter for up to two months at $8,888 net per day.
Baghdad		Charterer’s option to extend the bareboat charter for five years at $29,751 net per day.
TBN 2		Charterer’s option to extend the bareboat charter for five years at $29,751 net per day.
Erbil		Charterer’s option to extend the bareboat charter for five years at $29,751 net per day.

NOTE 3: CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

Cash and cash equivalents consisted of the following:

	September 30, 2020		December 31, 2019
	March 31,2021		December 31,2020
Cash on hand and at banks	$	4945,~~508~~668	$	4340,~~561~~594
Short-term deposits		10,030		—
Restricted cash		981		763
Restricted cash		715		490
Total cash, cash equivalents and restricted cash	$	46,649	$	41,357
Total cash, cash equivalents and restricted cash	$	60,253	$	44,051

Cash deposits and cash equivalents in excess of amounts covered by government-provided insurance are exposed to loss in the event of non-performance by financial institutions. The Company does maintain cash deposits and equivalents in excess of government-provided insurance limits. The Company also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.

Restricted cash includes amounts held in retention accounts in order to service debt and interest payments, as required by certain of Navios Acquisition’s credit facilities.

NOTE 4: ~~INVENTORIES,~~ PREPAID EXPENSES AND OTHER CURRENT ASSETS

~~Inventories,~~Prepaid ~~prepaid~~ expenses and other current assets consisted of the following:

	September 30,2020		December 31,2019
	March 31,		December 31,
Inventories	$	5,419	$	6,208
	2021		2020
Advances for working capital purposes		52,~~350~~950		72,~~250~~950
Insurance claims		32,~~695~~141		42,~~785~~808
Voyage charters deferred contract costs and other		~~936~~2,612		~~791~~378
Total inventories, prepaid expenses and other current assets	$	15,400	$	19,034
Total prepaid expenses and other current assets	$	7,703	$	6,136

~~F-13~~NOTE 5: VESSELS, NET


Vessels	Cost			Accumulated Depreciation			Net Book Value
Balance at December 31, 2019	$	1,704,702		$	(356,451	)	$	1,348,251
Additions/ (Depreciation)		4,756			(66,629	)		(61,873	)
Balance at December 31, 2020	$	1,709,458			(423,080	)		1,286,378
Additions/ (Depreciation)		2,715			(16,625	)		(13,910	)
Disposals		(28,210	)		2,984			(25,226	)
Balance at March 31, 2021		1,683,963			(436,721	)		1,247,242

F-12

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 5: VESSELS, NET

Vessels	Cost			AccumulatedDepreciation			Net BookValue
Balance at December 31, 2018	$	1,687,274		$	(303,669	)	$	1,383,605
Additions/ (Depreciation)		102,637			(63,935	)		38,702
Disposals		(77,922	)		11,153			(66,769	)
Impairment loss		(7,287	)		—			(7,287	)
Balance at December 31, 2019	$	1,704,702		$	(356,451	)	$	1,348,251
Additions/ (Depreciation)		4,362			(49,931	)		(45,569	)
Balance at September 30, 2020	$	1,709,064		$	(406,382	)	$	1,302,682

Additions of vessels

2021

In the first quarter of 2021, certain extraordinary fees and costs related to vessels’ regulatory requirements, including ballast water treatment system installation and exhaust gas cleaning system installation, amounted to $2,715 (see Note 12 — Transactions with related parties).

2020

As of ~~September~~ December 3031, 2020, certain extraordinary fees and costs related to vessels’ regulatory requirements, including ballast water treatment system installation and exhaust gas cleaning system installation, amounted to $4,~~362~~756 (see Note 13 12 — Transactions with related parties).

2019

As of December 31, 2019, certain extraordinary fees and costs related to vessels’ regulatory requirements, including ballast water treatment system installation and exhaust gas cleaning system installation, amounted to $18,207 (see Note 13 — Transactions with related parties).

During the quarter ended December 31, 2019, Navios Acquisition acquired five product tankers, two LR1 product tankers and three MR1 product tankers for an acquisition cost of approximately $84,430 in total, following the Liquidation of Navios Europe I, through bank financing of $32,500 and $33,210 receivables (Please refer to Note 8 – Investments in Affiliates).

For each of the vessels purchased from Navios Europe I, the acquisition of all vessels was effected through the acquisition of all of the capital stock of the respective vessel-owning companies, which held the ownership and other contractual rights and obligations related to each of the acquired vessels, including the respective charter-out contracts. Management accounted for each acquisition as an asset acquisition under ASC 805. At the transaction date, the purchase price approximated the fair value of the assets acquired, which was determined based on a combination of methodologies including discounted cash flow analyses and independent valuation analyses.

Disposals of vessels

~~2019~~2021

On March 251, ~~2019~~2021, Navios Acquisition sold the C.Nave ~~Dream~~Celeste, a ~~2000~~2003-built VLCC vessel of 298,~~570~~287 dwt to an unaffiliated third party for a net sale ~~price~~ of $2123,~~750~~523. The ~~gain~~loss on sale of the vessel amounted to $~~651~~1,703, which is included in “Gain on sale of vessels and Impairment loss”.

OnNOTE ~~May 10,~~6: ~~2019,~~ASSETS ~~following~~HELD aFOR ~~collision~~SALE ~~incident,~~/ ~~Navios~~LIABILITIES ~~Acquisition~~ASSOCIATED ~~sold~~WITH ~~the~~ASSETS ~~Shinyo~~HELD ~~Ocean,~~FOR aSALE ~~2001-built VLCC vessel of 281,395 dwt to an unaffiliated third party for a sale price of $12,525.~~

OnFollowing ~~October~~the Liquidation of Navios Europe II (Note 7) on June 829, ~~2019~~2020, Navios Acquisition ~~sold~~acquired ~~the~~seven ~~Nave~~vessel owning companies. For ~~Electron~~each of the vessels purchased from Navios Europe II, athe ~~2002-built~~acquisition ~~VLCC~~of ~~vessel~~all vessels was effected through the acquisition of ~~305~~all of the capital stock of the respective vessel-owning companies,~~178~~ ~~dwt~~which held the ownership and other contractual rights and obligations related to aneach ~~unaffiliated~~of ~~third~~the ~~party~~acquired vessels, including the respective charter-out contracts. Management accounted for aeach ~~sale~~acquisition as an asset acquisition under ASC 805. At the transaction date, the purchase price approximated the fair value of ~~$25,250~~the assets acquired.

~~Impairment~~Upon ~~loss~~acquisition of the vessel owning companies, the Company assessed that all the held for sale criteria were met for their assets, mainly consisting of the vessels owned and reviewed the carrying amount in connection with their fair market value less any costs to sell. On the transaction date the fair value of the vessels was determined based on a combination of methodologies including discounted cash flow analyses and independent valuation analyses. In addition, as of March 31, 2021 the container vessels have been re-measured to their fair value less cost to sell leading to no impairment charge. On the re-measurement date the fair value of the vessels was determined based on independent valuation analyses. For the vessels that their sale has been concluded subsequent to period end, their fair value on the re-measurement date was determined on the basis of their concluded sale price.

~~2019~~During Q1 2021, Navios Acquisition sold the Solstice N, a 2007-built container vessel of 44,023 dwt to an unaffiliated third party for a net sale price of $10,780 and the Allegro N, a 2014-built container vessel of 46,999 dwt to an unaffiliated third party for a net sale price of $13,793. The gain on sale of the vessels amounted to $780 and $938, respectively, which is included in “Gain on sale of vessels and Impairment loss”.

~~During~~Furthermore, liabilities associated with the ~~year~~assets ~~ended~~held ~~December~~for sale are separately presented under “Liabilities associated with assets held for sale” in the accompanying condensed consolidated balance sheets. As of March 31, ~~2019~~2021 ~~and~~the asmajor aclass ~~result~~of assets held for sale consist of the ~~impairment~~carrying ~~review~~value ~~performed~~of the vessels amounting to $52,902 it(December ~~was~~31, ~~determined~~2020: ~~that~~$75,920). As of December 31, 2020, the ~~carrying~~major ~~amount~~class of ~~one~~ ~~tanker~~liabilities ~~was~~associated ~~not~~with ~~recoverable~~assets ~~and,~~held ~~therefore~~for sale, anconsist ~~impairment~~of ~~loss~~their respective debt with a carrying amount of $731,~~287~~700, which was ~~recognized~~repaid in the first quarter of 2021. Please refer to Note 10 “Borrowings”.

NOTE 67: ~~INTANGIBLE~~INVESTMENT ~~ASSETS~~IN ~~OTHER~~AFFILIATES ~~THAN GOODWILL~~

~~On December 13, 2018,~~ Navios ~~Acquisition~~Europe ~~acquired,~~II ~~as part of the Merger, at fair value, the intangible assets of Navios Midstream, consisting of favorable lease terms.~~

~~Intangible~~On February 18, ~~assets~~2015, asNavios Maritime Holdings Inc. (“Navios Holdings”), Navios Acquisition and Navios Maritime Partners L.P. (“Navios Partners”) established Navios Europe II Inc. and had in such entity economic interests of 47.5%, ~~September 30~~47.5% and 5.0%, ~~2020~~respectively, and voting interests of 50.0%, 50.0% and 0%, respectively. From June 8, 2015 through December 31, ~~2019~~2015, ~~were~~Navios Europe II acquired fourteen vessels for: (i) cash consideration of $0145,550 (which was funded with the proceeds of $131,550 of senior loan facilities (the “Senior Loans II”) and loans aggregating $14,000 from Navios Holdings, Navios Acquisition and Navios Partners (collectively, the “Navios Term Loans II”); and (ii) the assumption of a junior participating loan facility (the “Junior Loan II”) with a face amount of $182,150 and fair value of $99,147. In addition to the Navios Term Loans II, Navios Holdings, Navios Acquisition and Navios Partners agreed to make available to Navios Europe II revolving loans up to $57,500 to fund working capital requirements (collectively, the “Navios Revolving Loans II”). On April 21, 2020, Navios Europe II agreed with the lender to fully release the liabilities under the junior participating loan facility for $5,000.

F-13

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

CONSOLIDATED FINANCIAL STATEMENTS

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

On an ongoing basis, Navios Europe II was required to distribute cash flows (after payment of operating expenses, amounts due pursuant to the terms of the Senior Loans and repayments of the Navios Revolving Loans II) according to a defined waterfall calculation.

Following the liquidation of Navios Europe II, which was completed in June 2020 (“Liquidation of Navios Europe II”), Navios Acquisition acquired seven vessel owning companies. The vessels are containerships and meet the criteria to be accounted for as assets held for sale (see Note 6).

As of March 31, 2021 and December 31, 2020, and subsequent to the Liquidation of Navios Europe II, the Company had no exposure.

The decline in the fair value of the investment was considered as other-than-temporary and, therefore, an aggregate loss of $13,900 was recognized and included in the accompanying condensed consolidated statements of income for the three month period ended March 31, 2020, as “Gain on sale of vessels and Impairment loss” The fair value of the Company’s investment was determined based on the liquidation value of Navios Europe II, determined on the individual fair values assigned to the assets and liabilities of Navios Europe II.

NOTE 8: DIVIDENDS PAYABLE

On November 2, 2020, the Board of Directors declared a quarterly cash dividend in respect of the third quarter of 2020 of $0.05 per share of common stock of amount $828 which was paid on February 10, 2021 to stockholders of record as of January 12, 2021.

The Board has decided to suspend its quarterly dividend to its stockholders.

The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Acquisition’s cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.

NOTE 9: ACCRUED EXPENSES

Accrued expenses as of March 31, 2021 and December 31, 2020 consisted of the following:


	March 31,		December 31,
	2021		2020
Accrued voyage expenses	$	1,876	$	2,248
Accrued loan interest		20,263		8,194
Accrued legal and professional fees		843		2,083
Total accrued expenses	$	22,982	$	12,525

NOTE 10: BORROWINGS



	March 31,		December 31,
	2021		2020
DVB Bank S.E. and Credit Agricole Corporate and Investment Bank		35,547		36,328
Ship Mortgage Notes $670,000		602,600		602,600
Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda
Banken AB		—		16,099
BNP Paribas $44,000		24,000		24,000
HSH $24,000		15,419		15,991
HCOB $31,800		27,570		28,416
Eurobank S.A. $20,800		18,400		19,200
Total credit facilities		723,536		742,634
Sale and Leaseback Agreements–$71,500		53,625		55,115
Sale and Leaseback Agreements–$103,155		86,387		88,654
Sale and Leaseback Agreements–$15,000		11,875		12,344
Sale and Leaseback Agreements–$47,220		39,046		40,408

F-14

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

On September 25, 2019, the U.S. Department of Treasury’s Office of Foreign Assets Control added, amongst others, COSCO Shipping Tanker (Dalian) Co., Ltd. (“COSCO Dalian”) to the Specially Designated Nationals and Blocked Persons list after being determined by the State Department to meet the criteria for the imposition of sanctions under Executive Order 13846. The Company had two VLCCs chartered to COSCO Dalian, the Nave Constellation (ex. Shinyo Saowalak) and the Nave Universe (ex. Shinyo Kieran), through June 18, 2025 and June 8, 2026, respectively, each at a net rate of $48,153 per day, with profit sharing above $54,388. Subsequent to September 30, 2019 both charter contracts have been terminated.


Sale and Leaseback Agreements–$90,811		76,678			79,504
Sale and Leaseback Agreements–$72,053		66,679			68,470
Total borrowings		1,057,826			1,087,129
Less: Deferred finance costs, net		(9,543	)		(10,826	)
Add: bond premium		200			284
Less: current portion of credit facilities, net of deferred finance costs		(649,940	)		(666,027	)
Less: current portion of Sale and Leaseback Agreements, net of deferred finance costs		(38,808	)		(38,745	)
Total long-term borrowings, net of current portion, bond premium and deferred finance costs	$	359,735		$	371,815

COSCO Dalian was removed from the Specially Designated Nationals and Blocked Persons list on January 31, 2020.

Amortization expense of favorable lease terms for the three and nine month periods ended September 30, 2020 and 2019 is presented in the following table:

	Three Month Period Ended					Nine Month Period Ended
	September 30,2020		September 30,2019			September 30,2020		September 30,2019
Favorable lease terms charter-out	$	—	$	(1,319	)	$	—	$	(3,957	)
Total	$	—	$	(1,319	)	$	—	$	(3,957	)

NOTE 7: ASSETS HELD FOR SALE / LIABILITIES ASSOCIATED WITH ASSETS HELD FOR SALE

Following the Liquidation of Navios Europe II (Note 8) on June 29, 2020, Navios Acquisition acquired seven vessel owning companies. For each of the vessels purchased from Navios Europe II, the acquisition of all vessels was effected through the acquisition of all of the capital stock of the respective vessel-owning companies, which held the ownership and other contractual rights and obligations related to each of the acquired vessels, including the respective charter-out contracts. Management accounted for each acquisition as an asset acquisition under ASC 805. At the transaction date, the purchase price approximated the fair value of the assets acquired.

Upon acquisition of the vessel owning companies, the Company assessed that all the held for sale criteria were met for their assets, mainly consisting of the vessels owned and reviewed the carrying amount in connection with their fair market value less any costs to sell. The review indicated that such carrying amounts were not in excess of the fair value less any costs to sell and therefore, no loss was recorded for the six month period ended on June 30, 2020. On the transaction date the fair value of the vessels was determined based on a combination of methodologies including discounted cash flow analyses and independent valuation analyses. In addition, as of September 30, 2020 the container vessels have been re-measured to their fair value less cost to sell without having changes in their values leading to no impairment charge being recognized in the accompanying consolidated statement of income. On the re-measurement date the fair value of the vessels was determined based on independent valuation analyses.

Furthermore, liabilities associated with the assets held for sale are separately presented under “Liabilities associated with assets held for sale” in the accompanying condensed consolidated balance sheet. The major class of assets held for sale consist of the carrying value of the vessels amounting to $79,124. The major class of liabilities associated with assets held for sale, consist of their respective debt with a carrying amount of $36,700. Please refer to Note 11 “Borrowings”.

NOTE 8: INVESTMENT IN AFFILIATES

Navios Europe I

On October 9, 2013, Navios Holdings, Navios Acquisition and Navios Maritime Partners L.P. (“Navios Partners”) established Navios Europe I and had economic interests of 47.5%, 47.5% and 5.0%, respectively. On December 18, 2013, Navios Europe I acquired ten vessels for aggregate consideration consisting of (i) cash which was funded with the proceeds of senior loan facility (the “Senior Loan I”) and loans aggregating $10,000 from Navios Holdings, Navios Acquisition and Navios Partners (collectively, the “Navios Term Loans I”) and (ii) the assumption of a junior participating loan facility (the “Junior Loan I”). In addition to the Navios Term Loans I, Navios Holdings, Navios Acquisition and Navios Partners agreed to make available to Navios Europe I revolving loans up to $24,100 to fund working capital requirements (collectively, the “Navios Revolving Loans I”). In December 2018, the availability under the Revolving Loans I was increased by $30,000. Effective November 2014 and through the Liquidation completed in December 2019, Navios Holdings, Navios Acquisition and Navios Partners had a voting interest of 50%, 50% and 0%, respectively.

F-15

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

On an ongoing basis, Navios Europe I was required to distribute cash flows (after payment of operating expenses, amounts due pursuant to the terms of the Senior Loan I and repayments of the Navios Revolving Loans I) according to a defined waterfall calculation.

Following the Liquidation of Navios Europe I, Navios Acquisition acquired five vessel owning companies for an acquisition cost of approximately $84,627 in total.

As of September 30, 2020 and December 31, 2019 and subsequent to the Liquidation of Navios Europe I, the Company had no exposure.

For the three month period ended September 30, 2019 income recognized in “Equity in net earnings of affiliated companies” was $311. For the nine month period ended September 30, 2019 income recognized in “Equity in net earnings of affiliated companies” was $895.

Navios Europe II

On February 18, 2015, Navios Holdings, Navios Acquisition and Navios Partners established Navios Europe II Inc. and had in such entity economic interests of 47.5%, 47.5% and 5.0%, respectively, and voting interests of 50.0%, 50.0% and 0%, respectively. From June 8, 2015 through December 31, 2015, Navios Europe II acquired fourteen vessels for: (i) cash consideration of $145,550 (which was funded with the proceeds of $131,550 of senior loan facilities (the “Senior Loans II”) and loans aggregating $14,000 from Navios Holdings, Navios Acquisition and Navios Partners (collectively, the “Navios Term Loans II”); and (ii) the assumption of a junior participating loan facility (the “Junior Loan II”) with a face amount of $182,150 and fair value of $99,147. In addition to the Navios Term Loans II, Navios Holdings, Navios Acquisition and Navios Partners agreed to make available to Navios Europe II revolving loans up to $57,500 to fund working capital requirements (collectively, the “Navios Revolving Loans II”). On April 21, 2020, Navios Europe II agreed with the lender to fully release the liabilities under the junior participating loan facility for $5,000.

As of September 30, 2020, and subsequent to the Liquidation of Navios Europe II, the Company had no exposure. As of December 31, 2019, the estimated maximum potential loss by Navios Acquisition in Navios Europe II was $51,558, which represented the Company’s carrying value of the investment of $6,650, the Company’s balance of the Navios Revolving Loans II including accrued interest on the Navios Term Loans II of $28,220, which was included under “Due from related parties, long-term”, and the accrued interest income on the Navios Revolving Loans II in the amount of $16,688, which is included under “Due from related parties, short-term”. Refer to Note 13 for the terms of the Navios Revolving Loans II.

The decline in the fair value of the investment was considered as other-than-temporary and, therefore, an aggregate loss of $13,900 was recognized as of March 31, 2020 and included in the accompanying condensed consolidated statements of income for the nine month period ended September 30, 2020, as “Impairment of receivable in affiliated company/ Equity in net earnings of affiliated companies.” The fair value of the Company’s investment was determined based on the liquidation value of Navios Europe II, determined on the individual fair values assigned to the assets and liabilities of Navios Europe II.

For the three month periods ended September 30, 2020 and 2019, income recognized in “Equity in net earnings of affiliated companies” was $0 and $625, respectively. For the nine month periods ended September 30, 2020 and 2019, income/loss recognized in “Impairment of receivable in affiliated company / Equity in net earnings of affiliated companies” was $13,900 and $1,775, respectively.

NOTE 9: DIVIDENDS PAYABLE

On January 22, 2020, the Board of Directors declared a quarterly cash dividend in respect of the fourth quarter of 2019 of $0.30 per share of common stock which was paid on April 7, 2020 to stockholders of record as of March 5, 2020.

On April 29, 2020, the Board of Directors declared a quarterly cash dividend in respect of the first quarter of 2020 of $0.30 per share of common stock which was paid on July 9, 2020 to stockholders of record as of June 3, 2020.

F-16

NAVIOS MARITIME ACQUISITION CORPORATION

UNAUDITED CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

On July 28, 2020, the Board of Directors declared a quarterly cash dividend in respect of the second quarter of 2020 of $0.30 per share of common stock which was paid on October 8, 2020 to stockholders of record as of September 4, 2020.

NOTE 10: ACCRUED EXPENSES

Accrued expenses as of September 30, 2020 and December 31, 2019 consisted of the following:

	September 30,2020		December 31,2019
Accrued voyage expenses	$	2,934	$	2,643
Accrued loan interest		22,108		10,468
Accrued legal and professional fees		772		1,226
Total accrued expenses	$	25,814	$	14,337

NOTE 11: BORROWINGS

	September 30,2020			December 31,2019
Eurobank Ergasias S.A. $52,000		—			28,758
DVB Bank S.E. and Credit Agricole Corporate and Investment Bank		37,109			39,453
Ship Mortgage Notes $670,000		639,000			658,000
Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda Banken AB		17,582			39,173
BNP Paribas $44,000		26,000			28,000
HSH $24,000		16,563			18,280
HCOB $31,800		29,262			31,800
Deutsche Bank AG Filiale Deutschlandgeschäft		—			32,500
Eurobank S.A. $20,800		20,000			—
Total credit facilities		785,516			875,964
Sale and Leaseback Agreements–$71,500		56,604			62,563
Sale and Leaseback Agreements–$103,155		90,921			97,723
Sale and Leaseback Agreements–$15,000		12,813			14,219
Sale and Leaseback Agreements–$47,220		41,771			45,858
Sale and Leaseback Agreements–$90,811		82,331			90,811
Sale and Leaseback Agreements–$72,053		70,261			—
Total borrowings		1,140,217			1,187,138
Less: Deferred finance costs, net		(12,432	)		(14,638	)
Add: bond premium		398			617
Less: current portion of credit facilities, net of deferred finance costs		(47,459	)		(141,214	)
Less: current portion of Sale and Leaseback Agreements, net of deferred finance costs		(38,768	)		(31,739	)
Total long-term borrowings, net of current portion, bond premium and deferred finance costs	$	1,041,956		$	1,000,164

Long-Term Debt Obligations and Credit Arrangements

Ship Mortgage Notes:

8 1/8% First Priority Ship Mortgages: On November 13, 2013, the Company and its wholly owned subsidiary, Navios Acquisition Finance (US) Inc. (“Navios Acquisition Finance” and together with the Company, the “2021 Co-Issuers”) issued $610,000 in first priority ship mortgage notes (the “Existing Notes”) due on November 15, 2021 at a fixed rate of 8.125%.

F-17

NAVIOS MARITIME ACQUISITION CORPORATION

UNAUDITED CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

On March 31, 2014, the Company completed a sale of $60,000 of its first priority ship mortgage notes due in 2021 (the “Additional Notes,” and together with the Existing Notes, the “2021 Notes”). The terms of the Additional Notes are identical to the Existing Notes and were issued at 103.25% plus accrued interest from November 13, 2013.

The 2021 Notes are fully and unconditionally guaranteed on a joint and several basis by all of Navios Acquisition’s subsidiaries with the exception of Navios Acquisition Finance (a co-issuer of the 2021 Notes) and the exception of Navios Midstream subsidiaries.

Following the acquisition of the Star N and the Hector N MR1 product tankers from Navios Europe I, the vessels were offered as collateral under its ship mortgage notes, in substitution of an amount of $25,405 that was held as cash collateral from the sale proceeds of the Nave Electron.

In connection with the release of the Nave Celeste and the Nave Neutrino from the 2021 Notes, the Nave Spherical and an amount of $5,228 were added as collateral.

In the fourth quarter of 2019, Navios Acquisition repurchased $12,000 of its ship mortgage notes for a cash consideration of $9,950 resulting in a gain on bond repurchase of $1,940 net of deferred fees written-off.

In the third quarter of 2020, Navios Acquisition repurchased $19,000 of its ship mortgage notes for a cash consideration of $11,898 resulting in a gain on bond repurchase of $7,010 net of deferred fees written-off.

~~The~~In ~~2021~~the ~~Co-Issuers~~fourth ~~were~~quarter of 2020, Navios Acquisition repurchased $36,400 of its ship mortgage notes for a cash consideration of $27,518 resulting in ~~compliance~~a ~~with~~gain ~~the~~on ~~covenants~~bond asrepurchase of ~~September 30~~$8,776 ~~2020~~net of deferred fees written-off.

In the second quarter of 2021, Navios Acquisition repurchased $51,820 of its ship mortgage notes for a cash consideration of $41,294.

The 2021 Co-Issuers were in compliance with the covenants as of March 31, 2021.

Guarantees

The Company’s 2021 Notes are fully and unconditionally guaranteed on a joint and several basis by all of the Company’s subsidiaries with the exception of ~~Navios~~ (i) Navios Acquisition Finance (a co-issuer of the 2021 Notes), ~~and~~(ii) ~~the~~NAP ~~exception~~General Partner, ofand (iii) Navios Maritime Midstream Partners L.P. and its subsidiaries. The Company’s 2021 Notes are unregistered. The guarantees of the Company’s subsidiaries that own mortgaged vessels are senior secured guarantees and the guarantees of Company’s subsidiaries that do not own mortgaged vessels are senior unsecured guarantees. All subsidiaries, including Navios Acquisition Finance and Navios Midstream and its subsidiaries are 100% owned. ~~Navios Acquisition does not have any independent assets or operations.~~

Credit Facilities

As of ~~September~~ March 3031, ~~2020~~ 2021, the Company had secured credit facilities with various ~~commercial~~ banks with a total outstanding balance of $~~146~~120,~~516~~936. The purpose of the facilities was to finance the construction or acquisition of vessels or refinance existing indebtedness. All of the facilities are denominated in U.S. dollars and bear interest based on LIBOR plus spread ranging from 230 bps to 400 bps per annum. The facilities are repayable in either semi-annual or quarterly installments, followed by balloon payments with maturities, that range from September 2021 to October 2027. See also the Long Term Debt Obligation maturity table below.

On December 6, 2010, Navios Acquisition entered into a loan agreement with Eurobank Ergasias S.A. of up to $52,000 out of which $46,200 has been drawn (divided into two tranches of $23,100 each) to partially finance the acquisition costs of two LR1 product tanker vessels. Each tranche of the facility was repayable in 32 equal quarterly installments of $306 each with a final balloon payment of $13,308, to be repaid on the last repayment date. The maturity date of the loan was in the third and fourth quarter of 2020. The repayment of each tranche started three months after the delivery date of the respective vessel. It bore interest at a rate of LIBOR plus 300 bps. The loan also required compliance with certain financial covenants. The outstanding balance under the facility of $27,534 was fully prepaid in June 2020. Following the prepayment, an amount of $50 was writtenF-~~off~~16 ~~in the consolidated statement of operations.~~

F-18

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

In November 2015, Navios Acquisition, entered into a term loan facility of up to $125,000 (divided into five tranches) with Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda Banken AB for the: (i) financing of the purchase price of the Nave Spherical; and (ii) the refinancing of the existing facility with Deutsche Bank AG Filiale Deutschlandgescäft and Skandinaviska Enskilda Banken AB, dated July 18, 2014. Four of the five tranches of the facility are repayable in 20 quarterly installments of between approximately $435 and $1,896, each with a final balloon repayment to be made on the last repayment date. The fifth tranche is repayable in 16 quarterly installments of between approximately $709 and $803, each. The maturity date of the loan is in the fourth quarter of 2020. The credit facility bears interest at LIBOR plus 295 bps per annum. On March 23, 2018, Navios Acquisition prepaid $26,770, being the respective tranche of the Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda Banken AB facility that was drawn to finance the Nave Equinox and the Nave Pyxis, which substituted the Nave Galactic as collateral vessels under the 8 1/8% 2021 Notes. Following the prepayment, an amount of $297 was written-off in the consolidated statement of operations. On June 18, 2020, Navios Acquisition prepaid $16,272, being the respective tranche of the Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda Banken AB facility that was drawn to finance the Nave Sextans. Following the prepayment, an amount of $26 was written-off in the consolidated statement of operations. As of September 30, 2020, the outstanding balance under this facility was $17,582. In October 2020, Navios Acquisition extended the maturity date of the loan to February 2021.

In October 2019, Navios Acquisition entered into a loan agreement with Hamburg Commercial Bank AG of up to $31,800 in order to refinance one VLCC. The facility is repayable in 4 quarterly installments of $846 each with a final balloon payment of $28,416 repayable on the last repayment date. The facility matures in October 2020 and bears interest at LIBOR plus 280 bps per annum. As of September 30, 2020, $29,262 was outstanding under this facility. In October 2020, Navios Acquisition extended the maturity date of the loan to October 2024. The remaining balance of the facility is repayable in 16 quarterly installments of $846 each with a final balloon payment of $14,880 repayable on the last repayment date.

In December 2019, Navios Acquisition entered into a loan agreement with Deutsche Bank AG Filiale Deutschlandgeschäft of up to $32,500 in order to finance one MR1 and two LR1s acquired from Navios Europe I. The facility was repayable in one single repayment on the last repayment date. The facility matured in June 2020 and bore interest at LIBOR plus 400 bps per annum. In the second quarter of 2020, Navios Acquisition fully repaid the amount of $32,500.

In June 2020, Navios Acquisition entered into a loan agreement with Eurobank S.A. of $20,800 in order to refinance two LR1s. The facility is repayable in 16 quarterly installments of $800 each with a final balloon payment of $8,000 repayable on the last repayment date. The facility matures in June 2024 and bears interest at LIBOR plus 300 bps per annum. As of September 30, 2020, an amount of $20,000 was outstanding under this facility.

In June 2020, Navios Acquisition entered into a loan agreement with Hamburg Commercial Bank AG of $41,700 in order to acquire seven containerships. The facility is repayable in 4 quarterly installments with a final balloon payment of $21,700 repayable on the last repayment date. The facility matures in May 2021 and bears interest at LIBOR plus 375 bps per annum and top up fee ranging from 225 bps to 425 bps per annum. As of September 30, 2020, an amount of $36,700 was outstanding under this facility and is presented under “Liabilities associated with assets held for sale”. (Please refer to Note 7)

Amounts drawn under the facilities are secured by first preferred mortgages on Navios Acquisition’s vessels and other collateral and are guaranteed by each vessel-owning subsidiary. The credit facilities contain a number of restrictive covenants that prohibit or limit Navios Acquisition from, among other things: incurring or guaranteeing indebtedness; entering into affiliate transactions; changing the flag, class, management or ownership of Navios Acquisition’s vessels; changing the commercial and technical management of Navios Acquisition’s vessels; selling Navios Acquisition’s vessels; and subordinating the obligations under each credit facility to any general and administrative costs relating to the vessels, including the fixed daily fee payable under the Management Agreement. The credit facilities also require Navios Acquisition to comply with the ISM Code and ISPS Code and to maintain valid safety management certificates and documents of compliance at all times.

AsThe majority of ~~September~~the Company’s senior secured credit facilities require compliance with maintenance covenants, including (i) 30value-to-loan ratio covenants, ~~2020~~based on charter-free valuations, noranging ~~amount~~from ~~was~~over ~~available~~120% to be125%, ~~drawn~~(ii) minimum liquidity at the higher of $40,000 or $1,000 per vessel owned; (iii) minimum net worth ranging from $50,000 to $ 135,000; and (iv) total liabilities divided by total assets, adjusted for market values, ranging from a maximum of 75% to 85%. It is an event of default under the financing arrangements if such covenants are not complied with, including the loan to value ratios for which the Company’s may provide sufficient additional security or prepay part of the facility, to prevent such an event. As of March 31, 2021, the Company was in compliance with all of the applicable covenants under each of its credit facilities.

As of March 31, 2021, no amount were available to be drawn from the Company’s facilities.

Sale and Leaseback Agreements

As of ~~September~~ March 3031, ~~2020~~2021, the Company had sale and leaseback agreements with various unrelated third parties with a total outstanding balance of $~~354~~334,~~701~~290.

As of ~~September~~March 3031, ~~2020~~2021 and December 31, ~~2019~~2020, the deposits under the sale and leaseback agreements were $9,058 ~~and $5~~,~~456, respectively,~~ and are presented under “Other long term assets” in the interim condensed consolidated balance sheets.

FOn March 31, 2018, Navios Acquisition entered into a $71,500 sale and leaseback agreement with unrelated third parties to refinance the outstanding balance of the existing facility on four product tankers. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-1940, the transaction was accounted for as a failed sale. In accordance with ASC 842-40 the Company did not derecognize the respective vessels from its balance sheet and accounted for the amounts received under sale and lease back agreement as a financial liability. The agreement will be repayable in 24 equal consecutive quarterly installments of $1,490 each, with a repurchase obligation of $35,750 on the last repayment date. The sale and leaseback agreement matures in April 2024 and bears interest at LIBOR plus 305 bps per annum. In April 2018, the Company drew $71,500 under this agreement. The agreement requires compliance with certain financial covenants in line with Navios Acquisition’s other credit facilities. As of March 31, 2021, the outstanding balance under this agreement was $53,625.

In March and April 2019, Navios Acquisition entered into sale and leaseback agreements with unrelated third parties for $103,155 in order to refinance $50,250 outstanding on the existing facility on three product tankers and to finance two product tankers that were previously financed by Eurobank Ergasias S.A. and were fully prepaid in March 2019 by the amount of $ 32,159. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was determined to be a failed sale. The agreements will be repayable in 28 equal consecutive quarterly installments of $2,267 each, with a purchase obligation of $39,675 to be repaid on the last repayment date. The sale and leaseback agreements mature in March and April 2026 respectively, and bear interest at LIBOR plus 350 bps per annum. The agreements require compliance with certain financial covenants in line with the other credit facilities of the Company. As of March 31, 2021, the outstanding balance under these agreements was $86,387. In connection with an amendment, in April 2021, the Company prepaid the amount of $10,234.

In August 2019, the Company entered into an additional sale and leaseback agreement of $15,000, with unrelated third parties in order to refinance one product tanker. Navios Acquisition has a purchase option in place and an assessment has been performed indicating that the likelihood of the vessel remaining in the property of the lessor is remote. In such a case, the buyer-lessor does not obtain control of the vessel and under ASC 842-40, the transaction was determined to be a failed sale. Navios Acquisition is obligated to make 60 consecutive monthly payments of approximately $156, commencing as of August 2019. The agreement matures in August 2024 and bear interest at LIBOR plus 240 bps per annum. As of March 31, 2021, the outstanding balance under this agreement was $11,875.

In September 2019, Navios Acquisition entered into additional sale and leaseback agreements with unrelated third parties for $47,220 in order to refinance three product tankers. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was determined to be a failed sale. The agreements will be repaid through periods ranging from four to seven years in consecutive quarterly installments of up to $1,362 each, with a purchase obligation of $19,200 to be repaid on the last repayment date. The agreements mature in September 2023 and September 2026 and bear interest at LIBOR plus a margin ranging from 350 bps to 360 per annum, depending on the vessel financed. The agreements require compliance with certain financial covenants in line with the other credit facilities of the Company. As of March 31, 2021, the outstanding balance under this agreement was $39,046. In connection with an amendment, in April 2021, the Company prepaid the amount of $3,581.

F-17

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

In ~~June~~October ~~2020~~2019, Navios Acquisition entered into sale and leaseback agreements with unrelated third parties for $7290,~~053~~811 in order to refinance ~~one~~six ~~MR1,~~product ~~one MR2 and two LR1s~~tankers. Navios Acquisition has a purchase obligation to acquire the vessels at the end of the lease term and under ASC 842-40, the transaction was determined to be a failed sale. The agreements will be repaid through periods ranging from ~~four~~three to ~~seven~~eight years in consecutive quarterly installments of up to $12,~~791~~824 each, with a repurchase obligation of up to $2625,~~963~~810 in total. The sale and leaseback ~~arrangements~~arrangement ~~bear~~bears interest at LIBOR plus a margin ranging from ~~390~~335 bps to ~~410~~355 bps per annum, depending on the vessel financed. As of ~~September~~March 3031, ~~2020~~2021, the outstanding ~~the~~ balance under ~~the~~this ~~agreements~~agreement was $7076,~~261~~678.

~~The~~In ~~maturity~~June ~~table~~2020, ~~below~~Navios ~~reflects~~Acquisition ~~the~~entered ~~principal~~into ~~payments~~sale ofand ~~all~~leaseback ~~notes~~agreements with unrelated third parties for $72,053 ~~credit~~in ~~facilities~~order to refinance one MR1, one MR2 and two LR1s. Navios Acquisition has a purchase obligation to acquire the ~~Financing~~vessels ~~arrangements~~at ~~outstanding~~the asend of ~~September 30,~~ ~~2020~~the ~~for~~lease term and under ASC 842-40, the ~~next~~transaction ~~five~~was determined to be a failed sale. The agreements will be repaid through periods ranging from four to seven years ~~and~~in ~~thereafter~~consecutive ~~are~~quarterly ~~based~~installments onof ~~the~~$1,791 ~~repayment~~each, ~~schedule~~with a repurchase obligation of ~~the~~up ~~respective~~to ~~financing~~$26,963 ~~arrangements~~in ~~(as~~total. ~~described~~The ~~above)~~sale and leaseback arrangements bear interest at LIBOR plus a margin ranging from 390 bps to 410 bps per annum, depending on vessel financed. As of March 31, 2021, the outstanding ~~amount~~the ~~due~~balance under the agreements was $66,679. In connection with an amendment, in April 2021, ~~Notes~~the Company prepaid the amount of $6,210.

	September 30,2020
Long-Term Debt Obligations:
12 month period ending
September 30, 2021		88,677
September 30, 2022		742,391
September 30, 2023		63,865
September 30, 2024		87,924
September 30, 2025		41,622
September 30, 2026 and thereafter		115,738
Total	$	1,140,217

The maturity table below reflects the principal payments of all notes, credit facilities and the Financing arrangements outstanding as of March 31, 2021 for the next five years and thereafter are based on the repayment schedule of the respective financing arrangements (as described above) and the outstanding amount due under the 2021 Notes.

The financing arrangements include, among other things, compliance with loan to value ratios and certain financial covenants: (i) minimum liquidity at the higher of $40,000 or $1,000 per vessel; (ii) minimum net worth ranging from $50,000 to $135,000; and (iii) total liabilities divided by total assets, adjusted for market values to be generally lower than 75% or 80% and for certain facilities, as amended for a specific period of time until December 31, 2019 to be ranging from a maximum of 80% to 85%. It is an event of default under the financing arrangements if such covenants are not complied with, including the loan to value ratios for which the Company may provide sufficient additional security or prepay part of the facility, to prevent such an event.


Long-Term Debt Obligations:
12 month period ending
March 31, 2022		692,551
March 31, 2023		88,146
March 31, 2024		51,875
March 31, 2025		98,470
March 31, 2026		37,801
March 31, 2027 and thereafter		88,984
Total	$	1,057,827

AsThe offinancing ~~September 30,~~arrangements ~~2020~~include, ~~the~~among ~~Company~~other ~~was~~things, in compliance with ~~its~~loan to value ratios and certain financial covenants.:

~~NOTE~~(i) ~~12:~~minimum ~~FAIR~~liquidity ~~VALUE~~at OFthe ~~FINANCIAL~~higher ~~INSTRUMENTS~~of $40,000 or $1,000 per vessel owned; (ii) minimum net worth ranging from $50,000 to $ 135,000; and

(iii) total liabilities divided by total assets, adjusted for market values to be generally lower than 75% or 80% and for certain facilities. It is an event of default under the financing arrangements if such covenants are not complied with, including the loan to value ratios for which the Company may provide sufficient additional security or prepay part of the facility, to prevent such an event.

As of March 31, 2021, the Company was in compliance with its covenants.

NOTE 11: FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these investments.

Restricted Cash: The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these investments.

Accounts receivable, net: Carrying amounts are considered to approximate fair value due to the short-term nature of these accounts receivables and no significant changes in interest rates. All amounts that are assumed to be uncollectible are written-off and/or reserved.

Accounts payable: The carrying amount of accounts payable reported in the balance sheet approximates its fair value due to the short-term nature of these accounts payable and no significant changes in interest rates.

Due from related parties, long-term: The carrying amount of due from related parties, long-term reported in the balance sheet approximates its fair value.

F-2018

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

Other long-term debt, net of deferred finance costs: ~~As a result of the adoption of ASU 2015-03, the book value has been adjusted to reflect the net presentation of deferred financing costs.~~ The outstanding balance of the floating rate loans continues to approximate its fair value, excluding the effect of any deferred finance costs.

Ship Mortgage Notes and premiums: The fair value of the 2021 Notes, which has a fixed rate, was determined based on quoted market prices, as indicated in the table below.

	September 30, 2020				December 31, 2019
	Book Value		Fair Value		Book Value		Fair Value
Cash and cash equivalents	$	59,538	$	59,538	$	43,561	$	43,561
Restricted cash	$	715	$	715	$	490	$	490
Accounts receivable	$	13,722	$	13,722	$	34,235	$	34,235
Accounts payable	$	7,872	$	7,872	$	15,355	$	15,355
Ship mortgage notes and premium	$	636,390	$	439,261	$	653,614	$	527,005
Other long-term debt, net of deferred finance costs	$	491,793	$	501,217	$	519,503	$	529,138
Due from related parties, long-term	$	14,658	$	14,658	$	42,878	$	42,878

Loan payable to affiliate company: The outstanding balance of the fixed rate loan continues to approximate its fair value, excluding the effect of any deferred finance costs.

Assets held for sale: The carrying amount of assets held for sale includes vessels held for sale of which carry amount approximates its fair value due to the fact that their remeasurement was based on either concluded sales prices or third party valuations performed on an individual basis and no significant changes in fair values of similar vessels and other assets held for sale of which carrying amount approximates the fair value due to the short-term nature and no significant changes in interest rates.

Liabilities associated with assets held for sale: Liabilities associated with assets held for sale consist mainly of floating rate loans and continue to approximate their fair value.


	March 31, 2021				December 31, 2020
	Book Value		Fair Value		Book Value		Fair Value
Cash and cash equivalents	$	45,668	$	45,668	$	40,594	$	40,594
Restricted cash	$	981	$	981	$	763	$	763
Accounts receivable	$	6,109	$	6,109	$	8,151	$	8,151
Accounts payable	$	9,611	$	9,611	$	10,605	$	10,605
Ship mortgage notes and premium	$	601,186	$	461,537	$	600,638	$	400,554
Other long-term debt, net of deferred finance costs	$	447,297	$	455,226	$	475,949	$	484,529
Loan payable to affiliate company, net of deferred finance costs	$	16,850	$	18,000	$	—	$	—
Due from related parties, long-term	$	14,223	$	14,223	$	14,658	$	14,658
Assets held for sale	$	59,627	$	59,627	$	77,831	$	77,831
Liabilities associated with assets held for sale	$	1,118	$	1,118	$	34,071	$	34,071

Fair Value Measurements

The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, is as follows:

Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that we have the ability to access. Valuation of these items does not entail a significant amount of judgment.

Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.

Level III: Inputs that are unobservable. The Company did not use any Level III inputs as of ~~September~~March 3031, ~~2020~~2021 and December 31, ~~2019~~ 2020.

	Fair Value Measurements at September 30, 2020 Using
	Fair Value Measurements at March 31, 2021 Using
	Total		Level I		Level II		Level III
Cash and cash equivalents	$	5945,~~538~~668	$	5945,~~538~~668	$	—	$	—
Restricted cash	$	~~715~~981	$	~~715~~981	$	—	$	—
Accounts receivable	$	136,~~722~~109	$	136,~~722~~109	$	—	$	—
Accounts payable	$	79,~~872~~611	$	79,~~872~~611	$	—	$	—
Ship mortgage notes and premium	$	~~439~~461,~~261~~537	$	~~439~~461,~~261~~537	$	—	$	—
Other long-term debt(1)	$	~~501~~455,~~217~~226	$	—	$	~~501~~455,~~217~~226	$	—
Due from related parties, long-term(2)	$	14,658	$	—	$	14,658	$	—
Loan payable to affiliate company(5)	$	18,000	$	—	$	18,000	$	—
Due from related parties, long-term(2)	$	14,223	$	—	$	14,223	$	—
Assets held for sale (3)	$	59,627	$	—	$	59,627	$	—
Liabilities associated with assets held for sale	$	1,118	$	1,118	$		$	—
	Fair Value Measurements at December 31, 2020 Using
	Total		Level I		Level II		Level III
Cash and cash equivalents	$	40,594	$	40,594	$	—	$	—
Restricted cash	$	763	$	763	$	—	$	—
Accounts receivable	$	8,151	$	8,151	$	—	$	—
Accounts payable	$	10,605	$	10,605	$	—	$	—

F-2119

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

	Fair Value Measurements at December 31, 2019 Using
Ship mortgage notes and premium	$	400,554	$	400,554	$	—	$	—
	Total		Level I		Level II		Level III
Other long-term debt(1)	$	484,529	$	—	$	484,529	$	—
Cash and cash equivalents	$	43,561	$	43,561	$	—	$	—
Due from related parties, long-term(2)	$	14,658	$	—	$	14,658	$	—
Restricted cash	$	490	$	490	$	—	$	—
Assets held for sale (3)	$	77,831	$	—	$	77,831	$	—
Accounts receivable	$	34,235	$	34,235	$	—	$	—
Liabilities associated with assets held for sale(4)	$	34,071	$	—	$	34,071	$	—
Accounts payable	$	15,355	$	15,355	$	—	$	—
Ship mortgage notes and premium	$	527,005	$	527,005	$	—	$	—
Other long-term debt(1)	$	529,138	$	—	$	529,138	$	—
Due from related parties, long-term(2)	$	42,878	$	—	$	42,878	$	—

(1)	The fair value of the Company’s other long-term debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities as well as taking into account the Company’s creditworthiness.

(2)	The fair value of the Company’s long term amounts due from related parties is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities as well as taking into account the counterparty’s creditworthiness.

~~NOTE~~(3) ~~13:~~The ~~TRANSACTIONS~~fair ~~WITH~~value ~~RELATED~~of ~~PARTIES~~the Company’s assets held for sale depends on the fair value of the vessels accounted for as held for sale and is estimated based on their concluded sale prices or third party valuations performed on an individual basis using currently available data for vessels with similar characteristics, age and capacity. The fair value of assets held for sale is considered level 2.

(4)

The fair value of the Company’s liabilities associated with assets held for sale depended mainly on the fair value of floating rate loans and was based on available debt with similar contract terms, interest rate and remaining maturities as well as taking into account the Company’s creditworthiness. The fair value of the liabilities associated with assets held for sale was considered level 2.

(5)	The fair value of the Company’s loan payable to affiliate company is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities as well as taking into account the Company’s creditworthiness.

F-20

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 12: TRANSACTIONS WITH RELATED PARTIES

Vessel operating expenses (management fees): Pursuant to the management agreement with the Manager (the “Management Agreement”) dated May 28, 2010 and as amended in May 2012, May 2014, May 2016 and May 2018, the Manager provided commercial and technical management services to Navios Acquisition’s vessels for a fixed daily fee of: (a) $6.5 per MR2 product tanker and chemical tanker vessel; (b) $7.15 per LR1 product tanker vessel; and (c) the current daily fee of $9.5 per VLCC, through May 2020.

Following the Merger with Navios Midstream, completed on December 13, 2018, the Management Agreement also covers vessels acquired in the Merger.

In August 2019, Navios Acquisition extended the duration of its existing Management Agreement with the Manager until January 1, 2025, to be automatically renewed for another five years. In addition fixed vessel operating expenses are fixed for two years commencing from January 1, 2020 at: (a) $6.8 per day per MR2 product tanker and chemical tanker vessel; (b) $7.23 per day per LR1 product tanker vessel; and (c) $9.7 per day per VLCC. The agreement also provides for a technical and commercial management fee of $0.05 per day per vessel and an annual increase of 3% for the remaining period unless agreed otherwise and provides for payment of a termination fee, equal to the fees charged for the full calendar year preceding the termination date, by Navios Acquisition in the event the Management Agreement is terminated on or before December 31, 2024.

Following the Liquidation of Navios Europe I in December 2019, Navios Acquisition acquired three MR1 product tankers and two LR1 product tankers. As per the Management Agreement, as further amended in December 2019, vessel operating expenses are fixed for two years commencing from January 1, 2020 at: (a) $6.8 per day per MR1 product tanker; and (b) $7.23 per day per LR1 product tanker vessel. The agreement also provides for a technical and commercial management fee of $0.05 per day per vessel and an annual increase of 3% after January 1, 2022 for the remaining period unless agreed otherwise.

Following the Liquidation of Navios Europe II, Navios Acquisition acquired seven containers on June 29, 2020. As per ~~the~~a further the amendment to the Management Agreement dated June 26, 2020, the vessel operating expenses are fixed at: (a) $5.3 per day per Container vessel of 1,500 TEU up to 1,999 TEU; and (b) $6.1 per day per Container vessel of 2,000 TEU up to 3,450 TEU.

Drydocking expenses are reimbursed at cost for all vessels.

For the ~~nine~~three month periods ended ~~September~~March 3031, ~~2020~~2021 and ~~2019~~2020 certain extraordinary fees and costs related to regulatory requirements, including ballast water treatment system installation and exhaust gas cleaning system installation and under Company’s Management Agreement amounted to $42,~~406~~716 and $132,~~108~~496, respectively, and are presented under “~~Container~~Vessels ~~vessel owning companies acquisition / vessels~~ improvements” in the condensed Consolidated Statements of Cash Flows. (Please refer to Note 5)

Total fixed vessel operating expenses for the three month periods ended ~~September~~March 3031, ~~2020~~2021 and ~~2019~~2020 amounted to $3332,~~969~~522 and $2629,837, respectively. ~~Total fixed vessel operating expenses for the nine month periods ended September 30, 2020 and 2019 amounted to $93,642 and $81,224, respectively.~~

General and administrative expenses: ~~On May 28, 2010, Navios Acquisition~~ ~~entered~~Pursuant ~~into~~to anthe Administrative Services Agreement ~~with~~ the Manager, ~~pursuant to which the Manager~~ provides certain administrative management services to Navios Acquisition which include: bookkeeping, audit and accounting services, legal and insurance services, administrative and clerical services, banking and financial services, advisory services, client and investor relations and other services. The Manager is reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. ~~In May 2014, Navios Acquisition extended the duration of its existing Administrative Services Agreement with the Manager, until May 2020.~~

~~F-22~~In August 2019, Navios Acquisition extended the duration of its existing Administrative Services Agreement with the Manager until January 1, 2025, to be automatically renewed for another five years. The Administrative Services Agreement also provides for payment of a termination fee, equal to the fees charged for the full calendar year preceding the termination date, by Navios Acquisition in the event the Administrative Services Agreement is terminated on or before December 31, 2024.

NAVIOS MARITIME ACQUISITION CORPORATION

UNAUDITED CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

Following the Merger with Navios Midstream, completed on December 13, 2018, the Administrative Services Agreement covered the vessels acquired.

In August 2019, Navios Acquisition extended the duration of its existing Administrative Services Agreement with the Manager until January 1, 2025, to be automatically renewed for another five years. The agreement also provides for payment of a termination fee, equal to the fees charged for the full calendar year preceding the termination date, by Navios Acquisition in the event the Administrative Services Agreement is terminated on or before December 31, 2024.

Following the Liquidation of Navios Europe I in December 2019, Navios Acquisition acquired three MR1 product tankers and two LR1 product tankers. The Administrative Services Agreement also covers the vessels acquired.

Following the Liquidation of Navios Europe II, Navios Acquisition acquired seven containers on June 29, 2020. The Administrative Services Agreement also covers the vessels acquired.

~~For each~~F-21 of the three month periods ended September 30, 2020 and 2019 the expense arising from administrative services rendered by the Manager amounted to $3,519 and $2,760, respectively. For each of the nine month periods ended September 30, 2020 and 2019 the expense arising from administrative services rendered by the Manager amounted to $9,506 and $8,386, respectively.

BalanceTable due from/ (to) related parties: Balance due from related parties (both short and long-term) as of September 30, 2020, was $17,084 (December 31, 2019: $14,658) and balance due to related parties as of September 30, 2020 was $0 (December 31, 2019: $32,150). The balances mainly consisted of administrative expenses, costs related to regulatory requirements including ballast water treatment system, special survey and dry docking expenses, as well as operating expenses and working capital deposits, in accordance with the Management Agreement. The amount of $1,845 related to seven containerships acquired after the liquidation of Navios Europe II is included under “Assets held for sale” in the condensed consolidated balance sheets. Contents

~~Navios~~NAVIOS ~~Midstream~~MARITIME ~~Merger~~ACQUISITION ~~Agreement:~~CORPORATION OnUNAUDITED ~~December 13,~~CONDENSED ~~2018,~~NOTES ~~Navios~~TO ~~Acquisition~~THE completed the Merger contemplated by the Merger Agreement, dated as of October 7, 2018, by and among Navios Acquisition, its direct wholly-owned subsidiary Merger Sub, Navios Midstream and NAP General Partner. Pursuant to the Merger Agreement, Merger Sub merged with and into Navios Midstream, with Navios Midstream surviving as a wholly-owned subsidiary of Navios Acquisition.

CONSOLIDATED FINANCIAL STATEMENTS

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

For the three month periods ended March 31, 2021 and 2020 the expense arising from administrative services rendered by the Manager amounted to $3,728 and $3,002, respectively, and is presented under the caption “General and administrative expenses” in the interim condensed consolidated statements of operations.

Balance due from/ (to) related parties: Balance due to related parties was $10,879 as of March 31, 2021 (December 31, 2020: $15,424). The balances mainly consisted of administrative expenses, costs related to regulatory requirements including ballast water treatment system, special survey and dry docking expenses, as well as operating expenses and working capital deposits, in accordance with the Management Agreement. As of March 31, 2021, the amount of $1,296 (December 31, 2020: $1,845) related to the five remaining containerships out of seven acquired after the liquidation of Navios Europe II is included under “Assets held for sale” in the condensed consolidated balance sheets.

Omnibus Agreements

Acquisition Omnibus Agreement: Navios Acquisition entered into an omnibus agreement (the “Acquisition Omnibus Agreement”) with Navios Holdings and Navios Partners in connection with the closing of Navios Acquisition’s initial vessel acquisition, pursuant to which, among other things, Navios Holdings and Navios Partners agreed not to acquire, charter-in or own liquid shipment vessels, except for container vessels and vessels that are primarily employed in operations in South America without the consent of an independent committee of Navios Acquisition. In addition, Navios Acquisition, under the Acquisition Omnibus Agreement, agreed to cause its subsidiaries not to acquire, own, operate or charter-in drybulk carriers under specific exceptions. Under the Acquisition Omnibus Agreement, Navios Acquisition and its subsidiaries grant to Navios Holdings and Navios Partners a right of first offer on any proposed sale, transfer or other disposition of any of its drybulk carriers and related charters owned or acquired by Navios Acquisition. Likewise, Navios Holdings and Navios Partners agreed to grant a similar right of first offer to Navios Acquisition for any liquid shipment vessels they might own. These rights of first offer will not apply to a: (a) sale, transfer or other disposition of vessels between any affiliated subsidiaries, or pursuant to the existing terms of any charter or other agreement with a counterparty; or (b) merger with or into, or sale of substantially all of the assets to, an unaffiliated third party.

F-23

NAVIOS MARITIME ACQUISITION CORPORATION

UNAUDITED CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

~~Balance~~F-22 due from Navios Europe II: Navios Holdings, Navios Acquisition and Navios Partners have made available to Navios Europe II revolving loans up to $43,500 to fund working capital requirements. In March 2017, the availability under the Navios Revolving Loans II was increased by $14,000. See Note 8 for the Investment in Navios Europe II.

Following the Liquidation of Navios Europe II, the balance due from Navios Europe II as of September 30, 2020 was $0. The balance due from Navios Europe II as of December 31, 2019 was $44,908 which included the Navios Revolving Loans II of $20,662, the non-current amount of $7,558 related to the accrued interest income earned under the Navios Term Loans II under the caption “Due from related parties, long-term” and the accrued interest income earned under the Navios Revolving Loans II of $16,688 under the caption “Due from related parties, short-term.”

NOTE 14: COMMITMENTS AND CONTINGENCIES

In September 2018, Navios Acquisition agreed to a 12-year bareboat charter-in agreement with de-escalating purchase options for two newbuild Japanese VLCCs each delivering in the fourth quarter of 2020 and the first quarter of 2021. In the first quarter of 2019, Navios Acquisition exercised its option for a third Japanese VLCC newbuilding under a 12 year bareboat chartered-in agreement with de-escalating purchase options. The vessel is expected to be delivered in the second quarter of 2021. In the second quarter of 2020, Navios Acquisition exercised its option for a fourth Japanese newbuild VLCC under a twelve year bareboat charter agreement with de-escalating purchase options and expected delivery in the second quarter of 2022.

The future minimum commitments as of September 30, 2020 of Navios Acquisition under its charter-in agreement for vessels delivery are as follows:

	Amount
Lease Obligations (Time Charters) for vessels to be delivered:
Year
September 30, 2021	$	15,297
September 30, 2022		29,266
September 30, 2023		33,434
September 30, 2024		33,526
September 30, 2025 and thereafter		289,960
Total	$	401,483

F-24

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

~~NOTE~~Loan 15payable to affiliate company: ~~COMMON~~On ~~STOCK~~March 19, 2021, Navios Acquisition entered into a secured loan agreement with a subsidiary of N Shipmanagement Acquisition Corp., an entity affiliated with Navios Acquisition’s Chairman and Chief Executive Officer, for a loan of up to $100,000 to be used for general corporate purposes. The Loan has a term of two years, scheduled amortization and bears interest at a rate of 11% per annum, payable quarterly, and arrangement fees of $1.165 paid at closing, which is presented under the “Debt issuance costs” in the condensed consolidated statements of cash flows. Navios Acquisition may elect to defer all scheduled amortization and interest payments, in which case the applicable interest rate is 12.5% per annum. For the three month period ended March 31, 2021, Navios Acquisition drew $18,000 which is presented under the “Current portion of loan payable to affiliate company” and “Loan payable to affiliate company, net of current portion” in the condensed consolidated balance sheets. Subsequently to March 31, 2021 to date, Navios Acquisition drew an additional amount of $29,200.

~~Common~~NOTE ~~Stock~~13: ~~and~~COMMITMENTS ~~Puttable~~AND ~~Common~~CONTINGENCIES ~~Stock~~

In ~~February~~ September 2018, ~~the Board of Directors of~~ Navios Acquisition ~~authorized~~agreed to a ~~stock~~12-year ~~repurchase~~bareboat charter-in ~~program~~agreement ~~for~~with upde-escalating topurchase ~~$25.0 million~~options offor ~~Navios~~Baghdad ~~Acquisition’s~~and ~~common stock~~Erbil, ~~for~~ two ~~years.~~newbuilding ~~Stock~~Japanese ~~repurchases~~VLCCs ~~were~~of ~~made~~313,433 ~~from~~dwt ~~time~~and to313,486 ~~time~~dwt, ~~for~~respectively. ~~cash in open~~On ~~market~~October 28, ~~transactions~~2020, atNavios ~~prevailing~~Acquisition ~~market~~took ~~prices~~delivery ~~or in privately negotiated transactions. The timing and amount~~ of ~~repurchases under~~ the ~~program~~vessel ~~were determined by management based upon market conditions and other factors~~Baghdad. ~~Repurchases~~The ~~were~~average ~~made pursuant~~daily torate ~~a program adopted~~ under ~~Rule~~bareboat ~~10b5~~charter-1in ~~under~~agreement ~~the Securities Exchange Act~~ of ~~1934,~~Baghdad asamounts ~~amended~~to $21. ~~The~~On ~~program~~February 17, ~~did~~2021, ~~not require any minimum repurchase or any specific number or amount of shares of common stock and was suspended or reinstated at any time in~~ Navios Acquisition’s ~~discretion~~took ~~and~~delivery ~~without~~of ~~notice~~the Erbil. ~~Repurchases~~The ~~were~~average ~~subject~~daily torate ~~restrictions~~ under ~~Navios~~bareboat ~~Acquisition’s credit facilities and indenture. The program expired~~ charter-in ~~February 2020.~~agreement ~~Upon the expiration, the Company had repurchased and cancelled 735,251 shares~~ of ~~common~~Erbil ~~stock,~~amounts atto ~~a total cost of approximately~~ $~~7,493~~21.

~~Equity~~In the first quarter of 2019, Navios Acquisition exercised its option for a third newbuilding Japanese VLCC of approximately 310,000 dwt under ~~Offering~~a 12 year bareboat chartered-in agreement with de-escalating purchase options. The vessel is expected to be delivered in the third quarter of 2021.

In ~~October~~the ~~2019,~~second ~~Navios~~quarter ~~Acquisition completed a registered direct offering~~ of 12020,~~875,000~~ ~~shares~~Navios ofAcquisition exercised its ~~common~~option ~~stock~~for ata ~~$8.00 per~~fourth ~~share,~~newbuilding ~~raising~~Japanese ~~gross~~VLCC ~~proceeds~~ of ~~$15~~approximately 310,000. ~~Total~~dwt under ~~net~~a ~~proceeds~~12 ofyear ~~the~~bareboat ~~above~~charter ~~transactions,~~agreement ~~net~~with ofde-escalating ~~agents’~~purchase ~~costs~~options ~~of $675~~ and ~~offering~~expected ~~costs~~delivery ofin ~~$957,~~the ~~amounted~~third toquarter ~~$13,368~~of 2022.

The future minimum commitments as of March 31, 2021 of Navios Acquisition under its bareboat charter-in agreement are as follows:


	Amount
Lease Obligations (Bareboat Charter-in):
Year
March 31, 2022		20,630
March 31, 2023		29,981
March 31, 2024		32,062
March 31, 2025		31,974
March 31, 2026		31,974
March 31, 2027 and thereafter		224,271
Total		370,892

NOTE 14: COMMON STOCK

Common Stock

In February 2018, the Board of Directors of Navios Acquisition authorized a stock repurchase program for up to $25,000 of Navios Acquisition’s common stock, for two years. Stock repurchases were made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program were determined by management based upon market conditions and other factors. Repurchases were made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program did not require any minimum repurchase or any specific number or amount of shares of common stock and was suspended or reinstated at any time in Navios Acquisition’s discretion and without notice. Repurchases were subject to restrictions under Navios Acquisition’s credit facilities and indenture. The program expired in February 2020. Up to the expiration, the Company had repurchased and cancelled 735,251 shares of common stock, at a total cost of approximately $7,493.

Continuous Offering Program

On November 29, 2019, as further updated on December 23, 2019 to provide for Navios Acquisition’s replacement of its expiring universal shelf, Navios Acquisition entered into a Continuous Offering Program Sales Agreement, pursuant to which Navios Acquisition may issue and sell from time to time through the sales agent shares of common stock having an aggregate offering price of up to $25,000. The sales were being made pursuant to a prospectus supplement as part of a shelf registration statement which was set to expire in December 2019. Navios Acquisition went effective on a new shelf registration statement which was declared effective on December 23, 2019. Accordingly, an updated Continuous Offering Program Sales Agreement (the “Sales Agreement”) was entered into on December 23, 2019. As before, the Sales Agreement contains, among other things, customary representations, warranties and covenants by Navios Acquisition and indemnification obligations of the parties thereto as well as certain termination rights for such parties. As of September 30, 2020, since the commencement of the program, Navios Acquisition has issued 910,564 shares of common stock and received net proceeds of $5,140.

AsF-23 ~~of September 30, 2020, the Company was authorized to issue 250,000,000 shares of $0.0001 par value common stock of which 16,513,935 were issued and outstanding.~~

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

CONSOLIDATED FINANCIAL STATEMENTS

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

expire in December 2019. Navios Acquisition went effective on a new shelf registration statement which was declared effective on December 23, 2019. Accordingly, an updated Continuous Offering Program Sales Agreement (the “Sales Agreement”) was entered into on December 23, 2019. As before, the Sales Agreement contains, among other things, customary representations, warranties and covenants by Navios Acquisition and indemnification obligations of the parties thereto as well as certain termination rights for such parties. As of March 31, 2021, since the commencement of the program, Navios Acquisition has issued 956,110 shares of common stock and received net proceeds of $5,334.

As of March 31, 2021, the Company was authorized to issue 250,000,000 shares of $0.0001 par value common stock of which 16,559,481 were issued and outstanding.

Stock based compensation

During the fiscal year ~~2019~~2020 and the ~~nine~~three month period ended ~~September~~March 3031, ~~2020~~2021, the Company did not authorize and issue any restricted shares of common stock to its directors and officers.

2018

In December 2018, Navios Acquisition authorized and issued in the aggregate 129,269 restricted shares of common stock to its directors and officers. These awards of restricted common stock are based on service conditions only and vest over four years.

The holders of restricted common stock are entitled to dividends paid on the same schedule as paid to the ~~stockholders~~common stock-holders of the company. The fair value of restricted stock is determined by reference to the quoted stock price on the date of grant of $5.36 per share (or total fair value of $693).

Compensation expense is recognized based on a graded expense model over the vesting period.

The effect of compensation expense arising from the stock-based arrangement described above was $4725 and $9147 for the three months periods ended ~~September~~March 3031, ~~2020~~2021 and ~~2019,~~2020 respectively, and it is reflected in general and administrative expenses on the ~~statement~~condensed consolidated statements of operations. The recognized compensation expense for the year is presented as adjustment to reconcile net income/(loss) to net cash provided by operating activities on the statements of cash flows. ~~For the nine month period ended September 30, 2020 and 2019, the effect of compensation expense arising from the stock-based arrangement described above amounted to $140 and $270, respectively.~~

~~F-25~~There were no restricted stock or stock options exercised, forfeited or expired, that were issued in 2018, during the three month period ended March 31, 2021.

~~Table~~As of ~~Contents~~each of March 31, 2021 and December 31, 2020, there remained 63,635 restricted shares outstanding, that were issued in 2018, that had not yet vested.

~~NAVIOS~~The ~~MARITIME~~estimated ~~ACQUISITION~~compensation ~~CORPORATION~~cost relating to service conditions of non-vested restricted stock, not yet recognized was $116 as of March 31, 2021 and is expected to be recognized over the weighted average time to vest of 1.7 years.

UNAUDITED CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

There were no restricted stock or stock options exercised, forfeited or expired, that were issued in 2018, during the nine month period ended September 30, 2020.

As of September 30, 2020 and December 31, 2019, there remained 95,452 and 96,952 restricted shares outstanding, respectively, that were issued in 2018, that had not yet vested.

The estimated compensation cost relating to service conditions of non-vested restricted stock, not yet recognized was $185 as of September 30, 2020 and is expected to be recognized over the weighted average time to vest of 2.2 years.

2017

In December 2017, Navios Acquisition authorized and issued in the aggregate 118,328 restricted shares of common stock to its directors and officers. These awards of restricted common stock are based on service conditions only and vest over four years.

The holders of restricted common stock are entitled to dividends paid on the same schedule as paid to the ~~stockholders~~common stock holders of the Company. The fair value of restricted common stock is determined by reference to the quoted stock price on the date of grant of $17.770 per share (or total fair value of $2,094).

Compensation expense is recognized based on a graded expense model over the vesting period.

The effect of compensation expense arising from the stock-based arrangement described above was $7732 and $~~143~~76 for the three month period ended ~~September~~ March 3031, ~~2020~~2021 and ~~2019~~2020, respectively, and it is reflected in general and administrative expenses on the statement of operations. The recognized compensation expense for the year is presented as adjustment to reconcile net income/(loss) to net cash provided by operating activities on the statements of cash flows. ~~For the nine month period ended September 30, 2020 and 2019, the effect of compensation expense arising from the stock-based arrangement described above amounted to $229 and $424, respectively.~~

There were no restricted stock or stock options exercised, forfeited or expired, that were issued in 2017, during the ~~nine~~ three month period ended ~~September~~March 3031, ~~2020~~2021.

As of ~~September~~each of March 3031, ~~2020~~2021 and December 31, ~~2019~~2020, there remained 5829,~~496~~251 ~~and 59,162~~ restricted shares outstanding, ~~respectively,~~ that were issued in 2017, that had not yet vested.

The estimated compensation cost relating to service conditions of non-vested restricted stock, not yet recognized was $~~192~~92 as of ~~September~~March 3031, ~~2020~~2021 and is expected to be recognized over the weighted average time to vest of 10.25 years.

~~NOTE~~F-24 ~~16: SEGMENT INFORMATION~~

The following table sets out operating revenue by geographic region for Navios Acquisition’s reportable segment. Revenue is allocated on the basis of the geographic region in which the customer is located. Tanker vessels operate worldwide. Revenues from specific geographic regions which contribute over 10% of total revenue are disclosed separately.

F-26

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 15: SEGMENT INFORMATION

Revenue by Geographic Region

Vessels operate on a worldwide basis and are not restricted to specific locations. Accordingly, it is not possible to allocate the assets of these operations to specific countries.

	Three MonthPeriod endedSeptember 30, 2020(unaudited)		Three MonthPeriod endedSeptember 30, 2019(unaudited)		Nine MonthPeriod endedSeptember 30, 2020(unaudited)		Nine MonthPeriod endedSeptember 30, 2019(unaudited)
	Three		Three
Asia	$	53,142	$	45,150	$	214,407	$	146,934
	Months		Months
Europe		16,586		5,715		50,144		14,863
	Ended		Ended
United States		9,079		8,100		24,337		32,872
	March 31,		March 31,
Total	$	78,807	$	58,965	$	288,888	$	194,669
	2021		2020
Asia	$	51,222	$	73,512
America		6,324		7,446
Europe		14,959		16,899
Total Revenue	$	72,505	$	97,857

NOTE 1716: ~~EARNINGS/~~ (LOSS)/ EARNINGS PER COMMON SHARE

Earnings/ ~~(loss)~~ per share is calculated by dividing net income attributable to common stockholders by the weighted average number of shares of ~~common~~ common stock of Navios Acquisition outstanding during the period.

	For the ThreeMonths EndedSeptember 30, 2020			For the ThreeMonths EndedSeptember 30, 2019			For the NineMonths EndedSeptember 30, 2020			For the NineMonths EndedSeptember 30, 2019
	For the ThreeMonths			For the Three Months
Numerator:
	Ended March 31, 2021			Ended March 31, 2020
Net income/ (loss)	$	3,236		$	(56,396	)	$	35,122		$	(72,085	)
Numerator:
Less:
Net (loss)/ income	$	(9,703	)	$	869
Dividend declared on restricted shares		(46	)		(65	)		(139	)		(196	)
Less:
Undistributed loss attributable to Series C participating preferred shares		—			—			—			(13	)
Dividend declared on restricted shares		—			(47	)
Net income/ (loss) attributable to common stockholders, basic	$	3,190		$	(56,461	)	$	34,983		$	(72,294	)
Net (loss)/ income attributable to common stockholders, basic	$	(9,703	)	$	822
Plus:
Net (loss)/ income attributable to common stockholders, diluted	$	(9,703	)	$	822
Undistributed income attributable to Series C participating preferred shares		—			—			—			13
Denominator:
Net income/ (loss) attributable to common stockholders, diluted	$	3,190		$	(56,461	)	$	34,983		$	(72,281	)
Denominator for basic net income per share — weighted average shares		16,466,599			15,717,977
Denominator:
Denominator for diluted net income per share — adjusted weighted average shares		16,466,599			15,874,089
Denominator for basic net income/ (loss) per share — weighted average shares		16,104,011			13,510,361			15,903,447			13,446,836
Net (loss)/ income per share, basic	$	(0.59	)	$	0.05
Series C participating preferred shares		—			—			—			—
Net (loss)/ income per share, diluted	$	(0.59	)	$	0.05
Denominator for diluted net income/ (loss) per share — adjusted weighted average shares		16,257,957			13,510,361			16,058,579			13,446,836
Net income/ (loss) per share, basic	$	0.20		$	(4.18	)	$	2.20		$	(5.38	)
Net income/ (loss) per share, diluted	$	0.20		$	(4.18	)	$	2.18		$	(5.38	)

~~NOTE~~Potential ~~18:~~shares ~~INCOME~~of ~~TAXES~~common stock of 192,882 for the three month period ended March 31, 2021 and 256,112 for the three month period ended March 31, 2020 (which includes stock options and shares of restricted common stock), have an anti-dilutive effect (i.e., those that increase earnings per share or decrease loss per share) and are therefore excluded from the calculation of diluted earnings per share.

~~Marshall~~NOTE ~~Islands,~~17: ~~Cayman~~INCOME ~~Islands,~~TAXES British Virgin Islands, and Hong Kong, do not impose a tax on international shipping income. Under the laws of these countries, the countries of incorporation of the Company and its subsidiaries and /or vessels’ registration, the companies are subject to registration and tonnage taxes which have been included in the daily management fee.

Marshall Islands, Cayman Islands, British Virgin Islands, and Hong Kong, do not impose a tax on international shipping income. Under the laws of these countries, the countries of incorporation of the Company and its subsidiaries and /or vessels’ registration, the companies are subject to registration and tonnage taxes.

In accordance with the currently applicable Greek law, foreign flagged vessels that are managed by Greek or foreign ship management companies having established an office in Greece are subject to duties towards the Greek state which are calculated on the basis of the relevant vessels’ tonnage. The payment of said duties exhausts the tax liability of the foreign ship owning company and the relevant manager against any tax, duty, charge or contribution payable on income from the exploitation of the foreign flagged vessel. In case that tonnage tax and/or similar taxes/duties are paid to the vessel’s flag state, these are deducted from the amount of the duty to be paid in Greece.

F-2725

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

~~UNAUDITED CONDENSED NOTES TO THE~~ CONSOLIDATED FINANCIAL STATEMENTS

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

The amount included in Navios Acquisition’s statements of operations ~~related to the Greek Tonnage tax~~ for the ~~nine~~ three months ended ~~September~~March 3031, ~~2020,~~2021 and ~~2019~~2020 ~~was~~related ~~$601~~to ~~and $639, respectively, and for~~ the ~~three~~Greek ~~months~~Tonnage ~~ended~~tax ~~September 30, 2020 and 2019, it~~ was $~~224~~223 and $~~240~~890, respectively.

Pursuant to Section 883 of the Internal Revenue Code of the United States (the “Code”), U.S. source income from the international operation of ships is generally exempt from U.S. income tax if the company operating the ships meets certain incorporation and ownership requirements. Among other things, in order to qualify for this exemption, the company operating the ships must be incorporated in a country, which grants an equivalent exemption from income taxes to U.S. corporations. All the Navios Acquisition’s ship-operating subsidiaries satisfy these initial criteria. In addition, these companies must meet an ownership test. Subject to proposed regulations becoming finalized in their current form, the management of Navios Acquisition believes by virtue of a special rule applicable to situations where the ship operating companies are beneficially owned by a publicly traded company like Navios Acquisition, the second criterion can also be satisfied based on the trading volume and ownership of the Company’s shares, but no assurance can be given that this will remain so in the future.

NOTE 18: LEASES

Time charter-out, bareboat charter-out contracts and pooling arrangements

The Company’s contract revenues from time chartering-out, bareboat chartering-out and pooling arrangements are governed by ASC 842. For further analysis, refer to Note 2—Summary of significant Accounting Policies.

Bareboat charter-in contract

The Company has performed an assessment considering the lease classification criteria under ASC 842 for the vessels Baghdad and Erbil (see Note 13) and concluded that the arrangements are operating leases. Consequently, the Company has recognized an operating lease liability based on the net present value of the remaining charter-in payments and a corresponding operating lease asset at an amount equal to the operating lease liability. The agreement includes optional periods, which are not recognized as part of the operating lease asset and the operating lease liability.

Based on management estimates and market conditions, the lease term of this lease is being assessed at each balance sheet date. At lease commencement, the Company determines a discount rate to calculate the present value of the lease payments so that it can determine lease classification and measure the lease liability. In determining the discount rate to be used at lease commencement, the Company used its incremental borrowing rate as there was no implicit rate included in charter-in contracts that can be readily determinable. The incremental borrowing rate is the rate that reflects the interest a lessee would have to pay to borrow funds on a collateralized basis over a similar term and in a similar economic environment. As of the date of delivery of the two newbuilding Japanese VLCC vessels, Baghdad and Erbil, on October 28, 2020 and February 17, 2021, respectively, Navios Acquisitions’ incremental borrowing rate was approximately 6%.

As of March 31, 2021 and December 31, 2020, the unamortized balance of the lease liability amounted $130,297 and $65,511, respectively, and is presented under “Operating lease liability, current and non-current portion” in the condensed consolidated balance sheets. Operating lease asset amounted $130,397 and $65,544 as at March 31, 2021 and December 31, 2020, respectively, and is presented under “Operating lease assets” in the condensed consolidated balance sheets.

The Company recognizes in relation to the operating lease for the charter-in agreement the charter-in hire expense in the consolidated statements of operations on a straight-line basis over the lease term. For the three month period ended March 31, 2021, the charter hire expense amounted to $2,977 compared to $0 for the three month period ended March 31, 2020 and is included in the condensed consolidated statements of operations under the caption “Time charter and voyage expenses”.

As of March 31, 2021, the Company proceeded with impairment assessment of the unamortized balance of the operating lease asset in relation to vessels Baghdad and Erbil. As the undiscounted projected net operating cash flows exceed the carrying values of the operating lease assets, no impairment loss was recognized as of March 31, 2021.

The table below provides the total amount of lease payments on an undiscounted basis on Company’s bareboat chartered-in contracts as of March 31,2021:


	Charter-in
	vessel in
Period	Operation
March 31, 2022	$	15,988
March 31, 2023		15,988
March 31, 2024		16,032
March 31, 2025		15,988
March 31, 2026		15,988
March 31, 2027 and thereafter		103,283
Total	$	183,267

Operating lease liabilities, including current portion	$	130,297

Discount based on incremental borrowing rate	$	52,970

F-26

NAVIOS MARITIME ACQUISITION CORPORATION UNAUDITED CONDENSED NOTES TO THE

CONSOLIDATED FINANCIAL STATEMENTS

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

Bareboat charter-out contract

Subsequently to the charter-in agreement, the Company entered into charter-out agreements for a firm charter period of 10-years for the operating vessels. The agreement includes an optional period of 5 years. The Company performed also an assessment of the lease classification under the ASC 842 and concluded that the arrangements are an operating lease.

The Company recognizes in relation to the operating leases for the charter-out agreements the charter-out hire income in the consolidated statements of operations on a straight-line basis. For the three month period ended March 31, 2021, the charter hire income (net of commissions, if any) amounted to $3,830 compared to $0 for the three month period ended March 31, 2021 and is included in the condensed consolidated statements of operations under “Revenue”.

Time charter-out / Bareboat charter-out:

The future minimum contractual lease income (time charter-out / bareboat charter-out rates are presented net of commissions) is as follows:


Period		Amount
December 31, 2021 (9 months period ended)	$	141,029
December 31, 2022		81,208
December 31, 2023		60,173
December 31, 2024		55,381
December 31, 2025		45,888
December 31, 2026 and thereafter		108,756

Total minimum lease revenue, net of commissions	$	492,435

Revenues from time charters are not generally received when a vessel is off-hire, including time required for scheduled maintenance of the vessel.

NOTE 19: SUBSEQUENT EVENTS

~~The~~In ~~Board~~June ~~of Directors~~2021, ~~declared~~Navios aAcquisition ~~quarterly~~sold ~~cash dividend in respect of~~ the ~~third~~Nave ~~quarter~~Neutrino, ofa ~~2020~~2003-built ofVLCC ~~$0.05~~vessel ~~per share~~ of ~~common~~298,287 ~~stock~~dwt, ~~which~~to ~~will~~an beunaffiliated ~~paid~~third onparty ~~February 10,~~for ~~2021~~a tonet ~~stockholders~~sale price of ~~record as of January 12~~$24, ~~2021~~500. The ~~declaration~~loss ~~and~~due ~~payment of~~to ~~any~~sale ~~further~~is ~~dividends~~expected ~~remain subject~~ to ~~the~~be ~~discretion~~approximately ~~of the Board of Directors and will depend on~~$6, among other things, Navios Acquisition’s cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable172.

~~Subsequent~~In toApril ~~September 30~~2021, ~~2020~~Navios Acquisition sold the Spectrum N, a 2009-built container vessel of 34,333 dwt, and in May 2021, Navios Acquisition ~~repurchased~~sold ~~$36~~the Ete N,~~400~~ a 2012-built container vessel of ~~its~~41,139 ~~ship~~dwt, ~~mortgage~~and ~~notes~~the ~~for~~Fleur N, a ~~cash~~2012-built ~~consideration~~container vessel of 41,130 dwt, to a related party for an aggregate sale price of $2755,~~518~~500.

OnIn ~~November~~May 292021, ~~2019,~~ Navios ~~Acquisition~~ ~~entered into a Continuous Offering Program Sales Agreement, pursuant to which Navios~~ Acquisition ~~may~~sold ~~issue and sell from time to time through~~ the ~~sales~~Vita ~~agent~~N, ~~shares~~a of2010-built ~~common~~container ~~stock~~vessel ~~having an aggregate offering price~~ of up23,359 ~~to $25~~dwt,~~000. Subsequent~~ to ~~September 30,~~an ~~2020,~~unaffiliated ~~Navios~~third party ~~Acquisition~~for ~~has~~a ~~issued~~net ~~45,546~~sale ~~shares~~price of ~~common stock and received net proceeds of~~ $~~193~~8,876.

~~On October~~In May 282021, ~~2020,~~Navios Acquisition sold the ~~Baghdad~~ Acrux N, a ~~newbuilding~~2010-built ~~VLCC~~container vessel of ~~313~~23,~~433~~338 dwt, to ~~under~~an ~~bareboat~~unaffiliated ~~lease,~~third ~~was~~party ~~delivered from~~for a ~~Japanese~~net ~~shipyard~~sale price of $9,106.

~~F-28~~On May 27, 2021 and June 3, 2021, Navios Acquisition drew an aggregate additional amount of $29,200, under its secured loan agreement with a subsidiary of N Shipmanagement Acquisition Corp., an entity affiliated with Navios Acquisition’s Chairman and Chief Executive Officer.

F-27

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.

NAVIOS MARITIME ACQUISITION CORPORATION.
By:		/s/ Angeliki Frangou
		Angeliki Frangou
		Chief Executive Officer
		Date: December 4, 2020

NAVIOS MARITIME ACQUISITION

CORPORATION.


By:		/s/ Angeliki Frangou
		Angeliki Frangou
		Chief Executive Officer
		Date: June 14, 2021

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Filing Compare · Navios Maritime Acquisition Corp