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    Charles Fratt

    Research Analyst at Alliance Global Partners

    C.K. Poe Fratt is Managing Director, Equity Research, and Senior Transportation Analyst at Alliance Global Partners, specializing in the transportation sector with a particular focus on logistics, marine shipping, and surface transportation. He covers prominent companies such as Knot Offshore Partners, providing actionable investment recommendations and earning industry recognition, including being named a top stock picker by the Wall Street Journal in consecutive years with a proven record of performance. With over 30 years of experience, Fratt began his career in the early 1990s, held research roles at A.G. Edwards, D.A. Davidson, Noble Capital Markets, and notable buy- and sell-side institutions before joining Alliance Global Partners; he has been in the investment research industry since at least 1999. Holding an MBA from Cornell and a history degree from Stanford, Fratt is an Investment Advisor Representative and maintains FINRA registrations in compliance with industry standards.

    Charles Fratt's questions to Worksport (WKSP) leadership

    Charles Fratt's questions to Worksport (WKSP) leadership • Q1 2025

    Question

    Charles Fratt of A.G.P./Alliance Global Partners sought clarification on the full-year 2025 revenue guidance, specifically whether it includes potential sales from SOLIS and COR, and questioned the company's strategy regarding its soft tonneau cover product line.

    Answer

    CEO Steven Rossi clarified that the $20 million to $25 million revenue guidance for 2025 exclusively covers traditional tonneau covers and excludes potential sales from SOLIS and COR due to supply chain uncertainties. Rossi also confirmed the company is phasing out China-sourced soft covers and is actively exploring North American manufacturing for a new soft cover line.

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    Charles Fratt's questions to Worksport (WKSP) leadership • Q4 2024

    Question

    Charles 'Poe' Fratt sought a detailed breakdown of the 2025 revenue guidance, questioning the contribution from tonneau covers versus SOLIS/COR and confirming no revenue from Terravis. He also asked about the gross margin trajectory, drivers of 2024 R&D spending, and the rationale behind the recent capital raise and Q1 cash position.

    Answer

    CEO Steven Rossi and an unnamed executive clarified the ~$20M low-end of guidance is from tonneau covers, with the delta to the ~$34.5M high-end contingent on SOLIS/COR sales, and confirmed no Terravis revenue is formally forecasted. CFO Michael Johnston and Rossi projected gross margins, which were 21% in December 2024, could reach the 25-30% range by late 2025, driven by a shift to premium products. Rossi explained that high 2024 R&D was due to one-time prototyping costs for the COR system, which will not recur. He also justified the recent warrant inducement as the best available financing to secure growth capital and noted Q1 cash was used to pre-buy inventory against tariffs and reduce liabilities.

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    Charles Fratt's questions to Worksport (WKSP) leadership • Q3 2024

    Question

    Inquired about the updated 2024 revenue guidance, the expected B2B vs. B2C sales mix in 2025, the timeline for achieving target gross margins, and the capital expenditure required to expand production capacity.

    Answer

    The company expects to beat the $8 million guidance for 2024 but is not providing a new specific number. For 2025, the goal is to phase out private label sales and achieve a roughly 50/50 split between B2C and B2B Worksport-branded sales. Significant margin improvement is anticipated after Q1 2025 as production processes are perfected. Expanding production beyond 200 covers per day would require a modest capital expenditure of around $3-3.5 million, which could potentially be vendor-financed.

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    Charles Fratt's questions to Navigator Holdings (NVGS) leadership

    Charles Fratt's questions to Navigator Holdings (NVGS) leadership • Q1 2025

    Question

    Charles Fratt of Alliance Global Partners asked about the strategy for deploying the new $50 million share buyback program and whether recent market volatility has altered the company's chartering approach.

    Answer

    Executive Vice President Randall Giveans clarified that the new $50 million authorization is separate from the quarterly return of capital policy and that the company plans to implement it in the near term. Chief Commercial Officer Oeyvind Lindeman added that the volatility reinforced their strategy, noting that their 41% forward cover was helpful and they aim to increase it slightly while maintaining significant spot exposure for the market recovery.

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    Charles Fratt's questions to Navigator Holdings (NVGS) leadership • Q4 2024

    Question

    Charles 'Poe' Fratt asked for quantification of the terminal's current offtake percentage, the asset values of older vessels for sale, the amount of Q4 deficiency payments, the newbuild payment schedule for 2025-2026, and the cost of the corporate domicile change.

    Answer

    EVP Randall Giveans gave a range for the offtake but did not provide a specific number for commercial reasons. CEO Mads Peter Zacho noted that while public sources provide vessel valuations, the market is illiquid. CFO Gary Chapman explained that deficiency payment amounts are confidential but were not materially significant to Q4 EBITDA. He also stated newbuild payments depend on construction progress and that the domicile change costs are spread out and not expected to be a single large expense.

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    Charles Fratt's questions to REE Automotive (REE) leadership

    Charles Fratt's questions to REE Automotive (REE) leadership • Q4 2024

    Question

    Charles Fratt of AGP Alliance Global Partners inquired about the timeline for converting the recent MOU into a definitive agreement, the impact of the production pause on the order book, and the updated path to revenue. He also asked for the specific Q1 2025 cash balance, the current cash burn rate, and details on the planned restructuring, including headcount and leadership changes.

    Answer

    CEO Daniel Barel stated that the MOU timeline is on track, with initial payments already received. He noted that while it's too early to forecast a new production ramp, customer interest in REE's software-defined vehicle (SDV) technology has increased, and the company will focus on generating software-related revenue in the interim. CFO Hai Aviv specified the Q1 2025 cash balance was $61 million, excluding the credit facility. He added that the company plans to reduce monthly operating expenses from a previously guided $5-6 million to a target of $3-4 million by the end of the year through significant cost reductions.

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    Charles Fratt's questions to AEye (LIDR) leadership

    Charles Fratt's questions to AEye (LIDR) leadership • Q1 2025

    Question

    Charles Fratt of Alliance Global Partners questioned the timing of cash outlays for a resolved lease litigation and a convertible note. He also sought clarity on the projected quarterly cash burn for 2025, the timeline for completing the NVIDIA integration, its impact on manufacturing scale-up, and the strategic pivot towards non-automotive markets, including the size of the opportunity.

    Answer

    CFO Conor Tierney clarified that the lease litigation cash payment of $1.4 million will occur in Q2, though the liability was adjusted in Q1. He noted that after a higher Q2 burn, the normalized quarterly cash burn should trend down to about $5 million. CEO Matthew Fisch explained that completing the NVIDIA integration, expected by the end of Q2, primarily opens up the OEM sales pipeline rather than directly triggering manufacturing. He also announced two new proof-of-concept contracts in the non-automotive defense and intelligent transportation sectors, highlighting this as a strategic move to leverage shorter sales cycles and diversify revenue streams while using the same core Apollo product.

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    Charles Fratt's questions to KNOT Offshore Partners (KNOP) leadership

    Charles Fratt's questions to KNOT Offshore Partners (KNOP) leadership • Q4 2024

    Question

    Charles Fratt inquired about the rechartering prospects for the Fortaleza and Recife vessels for their 2026 open windows. He also asked for the rationale behind Shell's decision to switch the Vigdis Knutsen to a bareboat charter, its financial impact, and if other charters have similar options. Additionally, he questioned the drivers of the Q4 sequential jump in time charter revenue, the backlog impact of the Live Knutsen acquisition, the future run-rate for operating expenses, Q1 utilization, and the full-year drydocking schedule.

    Answer

    CEO and CFO Derek Lowe clarified that the Fortaleza and Recife are larger and more marketable than prior vessels. On the Vigdis, he noted the bareboat terms are commercially comparable, the charter was extended, and it reduces KNOP's operating risk. Lowe attributed the revenue increase to new charters starting for the Ingrid and Torill, not one-off items, and highlighted that the Live Knutsen acquisition will add to future revenue. He guided that OpEx should see a similar impact from the Dan Sabia sale as the prior vessel sale. He confirmed no major utilization issues in Q1 and pointed to the presentation for the 2025 drydocking schedule.

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    Charles Fratt's questions to KNOT Offshore Partners (KNOP) leadership • Q2 2024

    Question

    Charles 'Poe' Fratt asked for specifics on the Tuva Knutsen's debt amortization and balloon payment, the outlook for operating and G&A expenses, the rationale behind the Tordis and Lena contract extensions, and the employment status of the Hilda Knutsen.

    Answer

    CEO and CFO Derek Lowe stated that detailed debt information for the Tuva Knutsen will be in the forthcoming 6-K filing and that no material changes are expected for OpEx or G&A, despite inflation. He explained that contract extensions are a negotiation based on client needs and confirmed the company is actively marketing both the Hilda Knutsen and Dan Sabia.

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    Charles Fratt's questions to EUROSEAS (ESEA) leadership

    Charles Fratt's questions to EUROSEAS (ESEA) leadership • Q4 2024

    Question

    Charles Fratt of Alliance Global Partners inquired about the reason for higher G&A expenses in Q4, the payment schedule for newbuilds, and the priority of stock buybacks in the capital allocation strategy. He also sought to confirm the accounting treatment for the spin-off in Q1 and noted a potential discrepancy in a vessel's charter details on a presentation slide.

    Answer

    CFO Anastasios Aslidis explained that the Q4 G&A increase was due to typical year-end bonuses. He confirmed no newbuild payments are due in 2025, with $12 million scheduled for 2026 and the remainder in 2027. CEO Aristides Pittas stated that while the company is focused on the spin-off and exploring investment opportunities, stock buybacks remain a key option if the share price underperforms. Mr. Aslidis also confirmed the accounting for the spin-off and the charter details for the Synergy Antwerp.

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    Charles Fratt's questions to EUROSEAS (ESEA) leadership • Q3 2024

    Question

    Asked a wide range of detailed questions covering rate expectations for upcoming charter renewals, financing details for newbuilds (tenor, amortization, cash impact), the build-vs-buy decision, newbuild payment schedules, the 2025 drydock schedule, the potential sale of older vessels, and the outlook for operating expenses.

    Answer

    Rate expectations for the 'Monica' are premature but could be $16k-$24k. Newbuild financing includes a 10-year sale-leaseback and a 6-year loan. The decision to build was driven by high secondhand prices and the superior eco-characteristics of new vessels. The 2027 newbuilds have no payments due in 2025, with the next 10% installment in late 2026. The 2025 drydock schedule is light, with one vessel in Q3. Older vessels will be kept while the market is strong. No major inflation is expected for operating expenses.

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    Charles Fratt's questions to EUROSEAS (ESEA) leadership • Q3 2024

    Question

    Charles Fratt of Alliance Global Partners asked a series of detailed questions covering rate expectations for upcoming charter renewals, financing specifics for the Q1 2025 deliveries, the rationale for building new versus buying secondhand, the payment schedule for the 2027 newbuilds, the 2025 drydock forecast, and potential cost inflation.

    Answer

    Executive Aristides Pittas and CFO Anastasios Aslidis provided comprehensive answers. They noted it was early for specific rate guidance but discussions were active. The $52 million financing for Q1 deliveries involves a mix of a 10-year sale-leaseback and a 6-year loan. The decision to build was driven by high secondhand prices and the superior eco-features of newbuilds. The 2027 newbuilds require a 15% deposit, with three 10% installments starting late 2026. The 2025 drydock schedule is light with only one vessel, and no major cost inflation is anticipated beyond normal trends.

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    Charles Fratt's questions to GENCO SHIPPING & TRADING (GNK) leadership

    Charles Fratt's questions to GENCO SHIPPING & TRADING (GNK) leadership • Q4 2024

    Question

    Charles "Poe" Fratt from Alliance Global Partners asked management to compare the merits of buying vessels versus repurchasing the company's own stock, which trades at a discount to NAV. He also questioned the timing of using the dividend reserve, suggesting it could be signaled earlier given the weak Q1 outlook.

    Answer

    CEO John Wobensmith reaffirmed Genco's identity as a shipping company that creates value by operating ships and returning capital via dividends, which they believe is superior to share buybacks for generating shareholder returns in the shipping sector. On the dividend reserve, Wobensmith emphasized consistency in their process, stating the decision will be made after the quarter ends to see the actual cash flows. He stressed the company's commitment to the quarterly dividend, supported by the reserve and a strong balance sheet.

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    Charles Fratt's questions to EuroDry (EDRY) leadership

    Charles Fratt's questions to EuroDry (EDRY) leadership • Q3 2024

    Question

    The analyst requested details on recent debt refinancings, questioned the company's capital allocation strategy regarding stock buybacks versus other investment opportunities, and asked for clarification on Q4 buyback activity.

    Answer

    The company confirmed it relevered four ships, extending maturities to 2029/2030 at lower margins, and offered to provide specific amortization details offline. They are balancing buybacks, which are constrained by low stock liquidity and regulations, against potential investment projects. They confirmed the buyback program was active in Q4, though limited, as they believe the stock is undervalued.

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    Charles Fratt's questions to Pangaea Logistics Solutions (PANL) leadership

    Charles Fratt's questions to Pangaea Logistics Solutions (PANL) leadership • Q3 2024

    Question

    Charles 'Poe' Fratt asked a series of detailed questions covering the MTM vessel integration's impact on profitability, Q3 voyage expenses, potential Q4 G&A changes, the dry docking schedule, the Q4 chartered-in fleet size, market volatility's effect on margins, the 'base stevedoring' asset on the balance sheet, and future opportunities in the terminalling business.

    Answer

    Executive Mark Filanowski stated the MTM deal won't dampen profitability, a point reinforced by Executive Gianni DelSignore who highlighted the new vessels' low breakeven costs. DelSignore also clarified that Q4 G&A would be stable as transaction costs are capitalized, and explained that the 'base stevedoring' asset reflects unconsolidated JV profits. Executive Mads Petersen provided the dry docking schedule (4 in Q4 '24, 6 in '25) and discussed excitement for organic growth in the terminalling business, including the new Tampa facility.

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