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: August 6, 2020

Commission File No. 001-34104

NAVIOS MARITIME ACQUISITION CORPORATION

7 Avenue de Grande Bretagne, Office 11B2

Monte Carlo, MC 98000 Monaco

(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

This Report on Form 6-K is hereby incorporated by reference into the Navios Maritime Acquisition Corporation Registration Statements 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 six month periods ended June 30, 2020 and 2019 of Navios Maritime Acquisition Corporation (referred to herein as “we,” “us” or “Navios Acquisition”). All 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 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, 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 reasonable by, Navios Acquisition at the time this filing was 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 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, 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, the creditworthiness of our charterers and the ability of our contract counterparties to fulfill their obligations to us, tanker industry trends, including charter rates and vessel values and factors affecting vessel supply and demand, the aging of our vessels 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, 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, 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

Debt developments

In June 2020, Navios Acquisition entered into a loan agreement with a commercial bank of $20.8 million in order to refinance the outstanding balance on the existing facility of two product tankers. 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.

In June 2020, Navios Acquisition entered into a loan agreement with a commercial bank of $41.7 million in order to refinance 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.

In June 2020, Navios Acquisition entered into sale and leaseback agreements with unrelated third parties for $72.1 million in order to refinance the outstanding balance on the existing facilities of four product tankers. The agreements will be repaid through periods ranging from four to seven years in consecutive quarterly installments of up to $1.8 million each, with a repurchase obligation of up to $27.0 million in total. The sale and leaseback arrangement bears interest at LIBOR plus a margin ranging from 390 bps to 410 bps per annum, depending on the vessel financed.

Subsequently to June 30, 2020, Navios Acquisition repurchased $9.0 million of its ship mortgage notes for a cost of $5.3 million.

Liquidation of Navios Europe II Inc.

On June 29, 2020, following the liquidation of Navios Europe II (the “Liquidation of Navios Europe II”), Navios Acquisition was allocated $8.9 million in cash and seven containerships with their associated working capital. The vessels are accounted for as held for sale. Navios Acquisition drew $41.7 million under a new short term credit facility secured with the seven containerships used for the repayment of $45.1 million of the vessels’ indebtedness. Please refer to “Related Party Transactions”.

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. As of August 4, 2020, since the commencement of the program, Navios Acquisition has issued 516,250 shares of common stock and received net proceeds of $3.2 million.

Exercised our Option for VLCC Newbuilding under Bareboat Charter

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 bareboat agreement reflects an implied price of approximately $84.5 million and an annual effective interest of approximately 6% fixed for the duration of the agreement.

Dividend

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 will be paid on October 8, 2020 to stockholders of record as of September 4, 2020. 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.

Fleet

As of August 4, 2020, our core fleet consisted of a total of 47 double-hulled tanker vessels, aggregating approximately 6.0 million deadweight tons, or dwt. The fleet includes 14 Very Large Crude Carriers (“VLCC”) tankers (over 200,000 dwt per ship) which transport crude oil, including the four bareboat chartered-in VLCCs expected to be delivered in each of the fourth quarter of 2020, and the first and the third quarters of 2021 and the second 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. As of August 4, 2020, we had charters covering 86.1% of available days for our core fleet for the remaining period of 2020 and 36.7% of available days for our core fleet in 2021.

Charter Policy and Industry Outlook

Our core fleet currently consists of 47 vessels, of which 14 are VLCCs (including four bareboat chartered-in VLCCs expected to be delivered in each of the fourth quarter of 2020, and the first and the third quarters of 2021 and the second 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.

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 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.

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 is determined by the points awarded to each vessel in the pool based on the vessel’s age, design and other performance characteristics.

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. As of August 4, 2020, the average age of Navios Acquisition’s owned fleet was 9.0 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 six month periods ended June 30, 2020 and 2019 that the Company believes may be useful in better understanding the Company’s financial position and results of operations.

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

(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.

Period-over-Period Comparisons

For the Three Month Period ended June 30, 2020 compared to the Three Month Period ended June 30, 2019

The following table presents consolidated revenue and expense information for the three month periods ended June 30, 2020 and 2019. This information was derived from the unaudited condensed consolidated statements of operations of Navios Acquisition for the respective periods.

Revenue: Revenue for the three month period ended June 30, 2020 increased by $53.6 million, or 91.6%, to $112.2 million, as compared to $58.6 million for the same period of 2019. The increase was mainly attributable to an: (i) increase in revenue of $8.1 million due to the acquisition of five product tankers of Navios Europe I in December 2019; and (ii) increase in market rates during the three month period ended June 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 3,859 days for the three month period ended June 30, 2020, as compared to 3,503 days for the three month period ended June 30, 2019, due to the reasons mentioned above. The time charter equivalent rate, or TCE Rate, increased to $28,187 for the three month period ended June 30, 2020, from $15,525 for the three month period ended June 30, 2019. 

Time charter and voyage expenses: Time charter and voyage expenses for the three month period ended June 30, 2020 decreased by $0.7 million, or 17.8%, to $3.5 million, as compared to $4.2 million for the same period of 2019. The decrease was mainly attributable to a $1.1 million decrease in bunkers consumption and voyage expenses related to the spot voyages incurred in the period; partially mitigated by a $0.4 million increase in brokers’commission.

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 $3.5 million for the three month period ended June 30, 2020, as compared to $2.3 million for the three month period ended June 30, 2019.

Vessel operating expenses (management fees): Vessel operating expenses amounted to $29.8 million for the three month period ended June 30, 2020, as compared to $26.5 million for the three month period ended June 30, 2019. The increase was mainly as a result of the acquisition of five product tankers of Navios Europe I in December 2019; partially mitigated by the sale of three VLCCs in 2019. 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 June 30, 2020 decreased by

$0.5 million to $6.3 million compared to $6.8 million for the three month period ended June 30, 2019, mainly due to the decrease in legal and professional fees. For the three month periods ended June 30, 2020 and 2019, the expenses charged by the Manager for administrative services were $3.0 million and $2.8 million, respectively.

Depreciation and amortization: Depreciation and amortization amounted to $16.6 million for the three month period ended June 30, 2020, as compared to $17.3 million for the three month period ended June 30, 2019, mainly due to the sale of three VLCCs in 2019; partially mitigated by the acquisition of five product tankers of Navios Europe I in December 2019. 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.

Gain on sale of vessel: There was no gain on sale of vessel for the three month period ended June 30, 2020 as compared to a $2.6 million gain from the sale of one VLCC in the second quarter of 2019.

Interest income: Interest income for the three month period ended June 30, 2020 decreased by $2.3 million to $0 compared to $2.3 million for the three month period ended June 30, 2019.

Interest expense and finance cost: Interest expense and finance cost for the three month period ended June 30, 2020 decreased by $2.0 million to $21.7 million, as compared to $23.7 million for the three month period ended June 30, 2019. The decrease was mainly due to the decrease of the weighted average interest rate for the three month period ended June 30, 2020 to 6.61% compared to 7.20% 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 $495.3 million for the three month period ended June 30,

2020 as compared to $552.8 million for the three month period ended June 30, 2019. As of June 30, 2020 and 2019, the outstanding balance under

Navios Acquisition’s total borrowings was $1,174 million and $1,198 million, respectively.

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

Other income: Other income for the three month period ended June 30, 2020 was $0.2 million. For the comparative period of 2019 other income was $0.

Other expense: Other expense for the three month period ended June 30, 2020 was $0. For the comparative period of 2019 other expense was $0.1 million.

For the Six Month Period ended June 30, 2020 compared to the Six Month Period ended June 30, 2019

The following table presents consolidated revenue and expense information for the six month periods ended June 30, 2020 and 2019. This information was derived from the unaudited condensed consolidated statements of operations of Navios Acquisition for the respective periods.

Revenue: Revenue for the six month period ended June 30, 2020 increased by $74.4 million, or 54.8%, to $210.1 million, as compared to $135.7 million for the same period of 2019. The increase was mainly attributable to an: (i) increase in revenue by $16.9 million due to the acquisition of five product tankers of Navios Europe I in December 2019; and (ii) increase in market rates during the six month period ended June 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 7,614 days for the six month period ended June 30, 2020, as compared to 7,187 days for the six month period ended June 30, 2019, due to the reasons mentioned above. The TCE Rate increased to $26,339 for the six month period ended June 30, 2020, from $17,635 for the six month period ended June 30, 2019.

Time charter and voyage expenses: Time charter and voyage expenses for the six month period ended June 30, 2020 increased by $0.5 million, or 6.3%, to $9.5 million, as compared to $9.0 million for the same period of 2019. The increase was mainly attributable to a: (a) $0.4 million increase in brokers’commission; and (b) a $0.1 million increase in bunkers consumption and voyage expenses related to the spot voyages incurred in the period.

Direct vessel expenses: Direct vessel expenses, comprising of the amortization of dry dock and special survey costs of certain vessels of our fleet, amounted to $6.6 million for the six month period ended June 30, 2020, as compared to $4.7 million for the six month period ended June 30, 2019.

Vessel operating expenses (management fees): Vessel operating expenses for the six month period ended June 30, 2020 increased by $5.3 million to $59.7 million, as compared to $54.4 million for the six month period ended June 30, 2019. The increase was mainly as a result of the acquisition of five product tankers of Navios Europe I in December 2019; 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 and administrative expenses: Total general and administrative expenses for the six month period ended June 30, 2020 decreased by $1.7 million to $10.2 million compared to $11.9 million for the six month period ended June 30, 2019, mainly due to the decrease in legal and professional fees. For the six month periods ended June 30, 2020 and 2019, the expenses charged by the Manager for administrative services were $6.0 million and $5.6 million, respectively.

Depreciation and amortization: Depreciation decreased by $1.8 million to $33.2 million for the six month period ended June 30, 2020 as compared to $35.0 million for the six month period ended June 30, 2019, mainly due to the sale of three VLCCs in 2019; partially mitigated by the acquisition of five product tankers of Navios Europe I in December 2019. 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.

Gain on sale of vessels: There was no gain on sale of vessels for the six month period ended June 30, 2020 as compared to a $3.2 gain from the sale of two VLCCs in the first and second quarters of 2019.

Interest income: Interest income for the six month period ended June 30, 2020 decreased by $4.5 million to $0, as compared to $4.5 million for the six month period ended June 30, 2019.

Interest expense and finance cost: Interest expense and finance cost for the six month period ended June 30, 2020 decreased by $3.1 million to $43.5 million, as compared to $46.6 million for the six month period ended June 30, 2019. The decrease was mainly due to the decrease of the weighted average interest rate for the six month period ended June 30, 2020 to 4.40% compared to 7.23% 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 $508.4 million for the six month period ended June 30,

2020 as compared to $543.5 million for the three month period ended June 30, 2019. As of June 30, 2020 and 2019, the outstanding balance under Navios Acquisition’s total borrowings was $1,174 million and $1,198 million, respectively.

Impairment of receivable in affiliated company / Equity in net earnings of affiliated companies: Impairment of receivable in affiliated companies for the six month period ended June 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 six month period ended June 30, 2019 amounted to $1.7 million which related to income recognized for Navios Europe I and Navios Europe II.

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

Other expense: Other expense for the six month period ended June 30, 2020 was $1.5 million as compared to $0.5 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 June 30, 2020, Navios Acquisition’s current assets totaled $198.2 million, while current liabilities totaled $187.2 million, resulting in a positive working capital position of $11.0 million. Navios Acquisition’s cash forecast indicates that it will generate sufficient cash for at least the next 12 months following August 6, 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 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.

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.

Subsequently to June 30, 2020 Navios Acquisition repurchased $9.0 million of Ship Mortgage Notes for a cash consideration of $5.3 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. 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 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 August 4, 2020, since the commencement of the program, Navios Acquisition has issued 516,250 shares of common stock and received net proceeds of $3.2 million.

Cash Flow

Cash flows for the six month period ended June 30, 2020 compared to the six month period ended June 30, 2019:

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

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

Net cash provided by operating activities increased by $49.2 million to $50.7 million for the period ended June 30, 2020 as compared to $1.5 million for the period ended June 30, 2019. The increase is analyzed as follows:

The net income for the six month period ended June 30, 2020 was $31.9 million compared to net loss of $15.7 million for the six month period ended June 30, 2019. In determining net cash provided by operating activities for the six month period ended June 30, 2020, the net income was adjusted for the effect of depreciation and amortization of $33.2 million, $13.9 million impairment of receivable in affiliated company, $6.2 million for the amortization of drydock and special survey costs, $3.0 million for amortization and write-off of deferred finance fees and bond premium, and $0.2 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 $37.6 million for the six month period ended June 30, 2020 mainly resulted from a $5.9 million increase in deferred revenue, a $3.8 million decrease in accounts receivable, a $2.9 million decrease in prepaid expenses, a $2.5 million decrease in inventories and an $0.9 million increase in accrued expenses. These were partially offset by a $20.4 million payment for drydock and special survey costs, a $20.1 million decrease in the balance due to related parties short-term, a $5.4 million decrease in accounts payable, a $3.9 million increase in other long term assets, a $2.0 million increase in the balance due from related parties, short-term and a $1.8 million increase in the balance due from related parties, long-term.

In determining net cash provided by operating activities for the six month period ended June 30, 2019, the net loss was adjusted for the effect of depreciation and amortization of $35.0 million, $4.6 million for the amortization of drydock and special survey costs, $2.3 million for amortization and write-off of deferred finance fees and bond premium, $1.7 million for equity in net earnings of affiliated companies, net of dividends received, $3.2 million for gain on sale of vessels, and $0.5 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 $20.2 million for the six month period ended June 30, 2019 mainly resulted from a $15.8 million increase in the balance due from related parties, short-term, a $12.0 million decrease in the balance due to related parties, short-term, a $1.8 million decrease in accounts payable, a $1.7 million payment for drydock and special survey costs and a $0.4 million increase in prepaid expenses. These were partially offset by an $8.3 million decrease in accounts receivable, a $2.4 million decrease in the balance due from related parties, long-term, a $0.5 million increase in accrued expenses and a $0.3 million increase in deferred revenue.

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

Net cash (used in)/ provided by investing activities decreased by $70.3 million to $44.6 million outflow for the six month period ended June 30, 2020 from $25.7 million inflow for the six month period ended June 30, 2019.

Net cash used in investing activities for the six month period ended June 30, 2020, resulted from $44.6 million from Container vessel owning companies acquisition/ vessels improvements.

Net cash provided by investing activities for the six month period ended June 30, 2019, resulted from $33.3 million net proceeds from sale of vessel; partially mitigated by: (i) $5.6 million from Vessels improvements; and (ii) $2.0 million from loans to affiliates.

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

Net cash provided by/ (used in) financing activities increased by $50.2 million to $18.3 million inflow for the six month period ended June 30, 2020 from $31.9 million outflow for the six month period ended June 30, 2019.

Net cash provided by financing activities for the six month period ended June 30, 2020 resulted from: (i) $133.1 million loan proceeds, net of deferred finance costs; and (ii) $0.9 million in equity offering proceeds; and was partially mitigated by: (a) $106.1 million of loan repayments; and (b) $9.6 million of dividends paid.

Net cash used in financing activities for the six month period ended June 30, 2019 resulted from: (i) $121.5 million of loan repayments; (ii) $8.2 million of dividends paid; and (iii) $0.4 million for acquisition of treasury stock; that was partially mitigated by $98.2 million in loan proceeds, net of deferred finance costs.

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

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 OTTI loss on equity investment.

We use Adjusted EBITDA as liquidity measure and reconcile EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by 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 in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred finance costs and bond premium; (v) impairment of receivable in Navios Europe II / Equity in net earnings of affiliated companies; (vi) payments for dry dock and special survey costs; (vii) gain on sale of vessel; and (viii) stock- based compensation. 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 June 30, 2020 increased by $50.6 million to $72.7 million, as compared to $22.1 million for the same period of 2019. The increase in Adjusted EBITDA was mainly due to a: (a) $53.6 million increase in revenue; (b) $0.7 million decrease in time charter and voyage expenses; (c) $0.4 million decrease in general and administrative expenses (excluding stock-based compensation); and (d) $0.2 million increase in other expense; partially mitigated by a: (i) $3.4 million increase in operating expenses mainly due to the acquisition of the five product tankers of Navios Europe I in December 2019 and to the amendment of the fees under the management agreement, that was also partially impacted by the sale of three VLCCs in 2019; and (ii) $0.9 million decrease in equity in net earnings of affiliated companies.

Adjusted EBITDA affected by the items described in the table above, for the six month period ended June 30, 2020 increased by $65.6 million to $129.0 million, as compared to $63.4 million for the same period of 2019. The increase in Adjusted EBITDA was mainly due to a: (a) $74.4 million increase in revenue; and (b) $1.5 million decrease in general and administrative expenses (excluding stock-based compensation); partially mitigated by a: (i) $5.3 million increase in operating expenses mainly due to the acquisition of the five product tankers of Navios Europe I in December 2019 and to the amendment of the fees under the management agreement, that was also partially impacted by the sale of three VLCCs in 2019; (ii) $1.7 million decrease in equity in net earnings of affiliated companies; (iii) $1.3 million decrease in other income; (iv) $1.0 million increase in other expense; (v) $0.6 million increase in time charter and voyage expenses; and (vi) $0.4 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 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.