TOP SHIPS INC.

TOP SHIPS INC. operates in two reportable segments: the tanker segment and the megayacht segment. The company's structure reflects its internal organization and the way its chief executive officer, who serves as chief operating decision maker, reviews operating results and allocates capital. Segment performance is assessed using revenues, operating expenses, segment operating income and net income, which guide decisions on fleet deployment, cost control, asset acquisition strategies, chartering strategies, fleet expansion or disposals, and cost efficiencies. The two segments have different characteristics. The tanker segment engages in the maritime transport of crude oil. The megayacht segment operates M/Y Para Bellvm, which the company acquired on April 11, 2025. The nature of trade, trading routes, charterers and cargo handling differ in important respects between the two businesses. The company states that chartering a megayacht such as M/Y Para Bellvm constitutes a different service and does not have similar economic characteristics to the tanker segment. The company does not disclose geographic information for either segment because, when it charters either a tanker or M/Y Para Bellvm to a charterer, the charterer is free, subject to certain exemptions, to trade or, in the case of M/Y Para Bellvm, travel with the vessel worldwide; as a result, disclosure of geographic information is impracticable. Among the measures the company uses to analyze trends in its results of operations are calendar days, defined as the total number of days the vessels were in its possession for the relevant period. Calendar days indicate the size of the fleet during the relevant period and affect both the amount of revenues and expenses recorded during that period. Available days are also identified as a measure.