REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | ☒ | Non-accelerated filer |
☐ | Emerging growth company |
International Financial Reporting Standards as issued by the | Other ☐ | |||||||
International Accounting Standards Board | ☐ |
1 | ||||||
Part I | 2 | |||||
Item 1. | 2 | |||||
Item 2. | 2 | |||||
Item 3. | 2 | |||||
Item 4. | 33 | |||||
Item 4A. | 48 | |||||
Item 5. | 48 | |||||
Item 6. | 67 | |||||
Item 7. | 73 | |||||
Item 8. | 77 | |||||
Item 9. | 78 | |||||
Item 10. | 78 | |||||
Item 11. | 91 | |||||
Item 12. | 93 | |||||
PART II | 94 | |||||
Item 13. | 94 | |||||
Item 14. | 94 | |||||
Item 15. | 94 | |||||
Item 16A. | 97 | |||||
Item 16B. | 97 | |||||
Item 16C. | 97 | |||||
Item 16D. | 98 | |||||
Item 16E. | 98 | |||||
Item 16F. | 98 | |||||
Item 16G. | 99 | |||||
Item 16H. | 99 | |||||
PART III | 100 | |||||
Item 17. | 100 | |||||
Item 18. | 100 | |||||
Item 19. | 100 |
• | future operating or financial results; |
• | 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 LPG, oil and oil products, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, availability of shipyards performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing; |
• | pending or recent acquisitions, business strategy and expected capital spending or operating expenses; |
• | our cooperation with our joint venture partners and any expected benefits from such joint venture arrangements; |
• | competition in the marine transportation industry; |
• | shipping market trends, including charter rates, factors affecting supply and demand and world fleet composition; |
• | 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; |
• | ability to employ our vessels profitably; |
• | performance by the counterparties to our charter agreements; |
• | future liquefied petroleum gas (“LPG”), refined petroleum product and oil prices and production; |
• | future supply and demand for oil and refined petroleum products and natural gas of which LPG is a byproduct; |
• | our financial condition and liquidity, including our ability to obtain financing in the future to fund capital expenditures, acquisitions and other general corporate activities, the terms of such financing and our ability to comply with covenants set forth in our existing and future financing arrangements; |
• | performance by the shipyards constructing our newbuilding vessels; and |
• | expectations regarding vessel acquisitions and dispositions. |
Item 1. |
Identity of Directors, Senior Management and Advisers |
Item 2. |
Offer Statistics and Expected Timetable |
Item 3. |
Key Information |
Year Ended December 31, |
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2016 |
2017 |
2018 |
2019 |
2020 |
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INCOME STATEMENT DATA |
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Revenues |
$ | 136,539,399 | $ | 152,338,278 | $ | 164,330,202 | $ | 144,259,312 | $ | 145,003,021 | ||||||||||
Revenues—related party |
7,592,784 | 1,973,643 | — | — | — | |||||||||||||||
Total Revenues |
$ | 144,132,183 | $ | 154,311,921 | $ | 164,330,202 | $ | 144,259,312 | $ | 145,003,021 |
Year Ended December 31, |
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2016 |
2017 |
2018 |
2019 |
2020 |
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Operating expenses: |
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Voyage expenses |
$ | 13,618,025 | $ | 13,804,032 | $ | 18,649,258 | $ | 15,201,978 | $ | 12,259,795 | ||||||||||
Voyage expenses—related party |
1,772,240 | 1,912,505 | 2,037,917 | 1,788,543 | 1,799,209 | |||||||||||||||
Vessels’ operating expenses |
55,680,993 | 58,618,526 | 59,920,278 | 48,619,594 | 52,344,721 | |||||||||||||||
Vessels’ operating expenses-related party |
3,141,843 | 800,908 | 514,500 | 966,500 | 950,500 | |||||||||||||||
Charter hire expenses |
4,054,387 | 3,524,770 | 6,150,780 | 6,268,988 | 318,606 | |||||||||||||||
Dry-docking costs |
3,613,230 | 3,529,047 | 3,617,577 | 1,094,306 | 3,640,327 | |||||||||||||||
Management fees-related party |
7,346,180 | 7,205,490 | 7,027,195 | 5,730,910 | 5,599,351 | |||||||||||||||
General and administrative expenses |
3,110,409 | 2,898,958 | 3,046,962 | 3,706,320 | 2,301,308 | |||||||||||||||
Depreciation |
39,096,589 | 38,921,672 | 41,258,142 | 37,693,733 | 37,455,093 | |||||||||||||||
Impairment loss |
5,735,086 | 6,461,273 | 11,351,821 | 993,916 | 3,857,307 | |||||||||||||||
Other operating costs/(income) |
— | 1,058,863 | (549,804 | ) | — | — | ||||||||||||||
Net (gain)/loss on sale of vessels |
(118,427 | ) | 77,314 | 763,925 | 485,516 | 1,134,854 | ||||||||||||||
Total expenses |
137,050,555 | 138,813,358 | 153,788,551 | 122,550,304 | 121,661,071 | |||||||||||||||
Income from operations |
7,081,628 | 15,498,563 | 10,541,651 | 21,709,008 | 23,341,950 | |||||||||||||||
Interest and finance costs |
(14,268,148 | ) | (16,661,464 | ) | (23,286,547 | ) | (20,978,065 | ) | (14,129,893 | ) | ||||||||||
Gain on deconsolidation of subsidiaries |
— | — | — | 145,000 | — | |||||||||||||||
Loss on derivatives |
(767,196 | ) | (403,943 | ) | (11,982 | ) | (107,550 | ) | (50,976 | ) | ||||||||||
Interest income and other income |
454,472 | 322,868 | 587,477 | 846,271 | 167,794 | |||||||||||||||
Foreign exchange (loss)/gain |
(299,056 | ) | 25,739 | (107,119 | ) | (8,235 | ) | (54,374 | ) | |||||||||||
Other expenses, net |
(14,879,928 | ) | (16,716,800 | ) | (22,818,171 | ) | (20,102,579 | ) | (14,067,449 | ) | ||||||||||
Equity earnings in joint ventures |
— | — | — | 486,695 | 2,709,984 | |||||||||||||||
Net (loss)/income |
(7,798,300 | ) | (1,218,237 | ) | (12,276,520 | ) | 2,093,124 | 11,984,485 | ||||||||||||
(Loss)/earnings per share, basic |
$ | (0.20 | ) | $ | (0.03 | ) | $ | (0.31 | ) | $ | 0.05 | $ | 0.31 | |||||||
(Loss)/earnings per share, diluted |
$ | (0.20 | ) | $ | (0.03 | ) | $ | (0.31 | ) | $ | 0.05 | $ | 0.31 | |||||||
Weighted (basic and diluted) average number of shares outstanding |
39,824,038 | 39,809,364 | 39,860,563 | 39,800,434 | 38,357,893 | |||||||||||||||
Dividends declared per share |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 |
As of December 31, |
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2016 |
2017 |
2018 |
2019 |
2020 |
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BALANCE SHEET DATA |
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Current assets, including cash |
$ | 76,478,045 | $ | 62,838,725 | $ | 138,866,439 | $ | 77,932,439 | $ | 48,053,524 | ||||||||||
Total assets |
1,001,942,344 | 996,226,191 | 1,036,722,488 | 954,188,931 | 944,006,307 | |||||||||||||||
Current liabilities |
81,366,606 | 78,748,931 | 103,490,335 | 67,136,139 | 63,061,107 | |||||||||||||||
Derivative liability |
364,823 | 126,525 | 465,389 | 2,655,817 | 5,240,911 | |||||||||||||||
Total long-term debt, including current portion |
397,885,589 | 384,908,448 | 443,317,446 | 365,983,458 | 351,797,213 | |||||||||||||||
Net assets |
573,975,304 | 573,478,772 | 561,252,511 | 559,186,640 | 564,596,415 | |||||||||||||||
Capital stock |
442,850 | 442,850 | 445,496 | 445,496 | 431,836 | |||||||||||||||
Number of shares of common stock outstanding |
39,860,563 | 39,860,563 | 39,860,563 | 39,584,274 | 37,858,437 |
Year Ended December 31, |
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2016 |
2017 |
2018 |
2019 |
2020 |
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OTHER FINANCIAL DATA |
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Net cash provided by operating activities |
$ | 36,154,088 | $ | 52,354,053 | $ | 37,809,225 | $ | 30,818,599 | $ | 52,113,096 | ||||||||||
Net cash (used in)/provided by investing activities(13) |
(54,074,771 | ) | (48,913,177 | ) | (78,552,902 | ) | 33,487,288 | (58,074,154 | ) | |||||||||||
Net cash (used in)/provided by financing activities |
(27,213,272 | ) | (14,069,329 | ) | 57,271,476 | (61,616,546 | ) | (23,119,072 | ) | |||||||||||
FLEET DATA |
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Average number of vessels(1) |
53.4 | 52.6 | 50.8 | 42.6 | 41.6 | |||||||||||||||
Total voyage days for fleet(2) |
19,999 | 19,717 | 19,363 | 16,230 | 15,079 | |||||||||||||||
Total time and bareboat charter days for fleet(3) |
15,831 | 16,772 | 15,696 | 13,541 | 12,442 | |||||||||||||||
Total spot market days for fleet(4) |
4,168 | 2,945 | 3,667 | 2,689 | 2,637 | |||||||||||||||
Total calendar days for fleet(5) |
20,275 | 19,917 | 19,544 | 16,328 | 15,292 | |||||||||||||||
Fleet utilization(6) |
98.6 | % | 99.0 | % | 99.1 | % | 99.4 | % | 98.6 | % | ||||||||||
Fleet operational utilization(7) |
91.1 | % | 96.2 | % | 95.5 | % | 97.5 | % | 96.1 | % | ||||||||||
AVERAGE DAILY RESULTS |
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Adjusted average charter rate(8) |
$ | 6,437 | $ | 7,029 | $ | 7,418 | $ | 7,842 | $ | 8,684 | ||||||||||
Vessel operating expenses(9) |
2,901 | 2,983 | 3,092 | 3,037 | 3,485 | |||||||||||||||
General and administrative expenses(10) |
153 | 146 | 156 | 227 | 150 | |||||||||||||||
Management fees(11) |
362 | 362 | 360 | 351 | 366 | |||||||||||||||
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Total daily operating expenses(12) |
3,054 | 3,129 | 3,248 | $ | 3,264 | 3,635 | ||||||||||||||
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(1) | Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period. |
(2) | Our total voyage days for our fleet reflect the total days the vessels we operated were in our possession for the relevant periods, net of off-hire days associated with major repairs, drydockings or special or intermediate surveys. |
(3) | Total time and bareboat charter days for fleet are the number of voyage days the vessels in our fleet operated on time or bareboat charters for the relevant period. |
(4) | Total spot market charter days for fleet are the number of voyage days the vessels in our fleet operated on spot market charters for the relevant period. |
(5) | Total calendar days are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys. |
(6) | Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period. |
(7) | Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days (excluding commercially idle days) by fleet calendar days for the relevant period. |
(8) | Adjusted average charter rate is a measure of the average daily revenue performance of a vessel on a per voyage basis. We determine the adjusted average charter rate by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage and are payable by us under a spot charter (which would otherwise be paid by the charterer under a time or bareboat charter contract), as well as commissions or any voyage costs incurred while the vessel is idle. Charter equivalent revenues and adjusted average charter rate are non-GAAP measures which provide additional meaningful information in conjunction with voyage revenues, the most directly comparable GAAP measure, because they assist Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. They are also standard shipping industry performance measures used primarily to compare period-to-period |
Year Ended December 31, |
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2016 |
2017 |
2018 |
2019 |
2020 |
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Voyage revenues |
$ | 144,132,183 | $ | 154,311,921 | $ | 164,330,202 | $ | 144,259,312 | $ | 145,003,021 | ||||||||||
Voyage expenses |
(15,390,265 | ) | (15,716,537 | ) | (20,687,175 | ) | (16,990,521 | ) | (14,059,004 | ) | ||||||||||
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Charter equivalent revenues |
$ | 128,741,918 | $ | 138,595,384 | $ | 143,643,027 | $ | 127,268,791 | $ | 130,944,017 | ||||||||||
Total voyage days for fleet |
19,999 | 19,717 | 19,363 | 16,230 | 15,079 | |||||||||||||||
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Adjusted average charter rate |
$ | 6,437 | $ | 7,029 | $ | 7,418 | $ | 7,842 | $ | 8,684 | ||||||||||
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(9) | Vessel operating expenses, including related party vessel operating expenses, consist of crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs, is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. |
(10) | Daily general and administrative expenses are calculated by dividing total general and administrative expenses by fleet calendar days for the relevant period. |
(11) | Management fees are based on a fixed rate management fee of $440 per day for each vessel in our fleet under spot or time charter and a fixed rate fee of $125 per day for each of the vessels operating on bareboat charter. In addition to these fees there is also a fixed daily fee of $280 charged to four LPG vessels for which some services are currently provided by third party managers. Daily management fees are calculated by dividing total management fees by fleet calendar days for the relevant period. |
(12) | Total operating expenses, or “TOE”, is a measurement of our total expenses associated with operating our vessels. TOE is the sum of vessel operating expenses and general and administrative expenses. Daily TOE is calculated by dividing TOE by fleet calendar days for the relevant time period. |
(13) | Effective December 31, 2017, the Company adopted the new standard Accounting Standards Update ASU 2016-18 – Restricted Cash. The implementation of this update affected the presentation in the statement of |
cash flows relating to changes in restricted cash which are presented as part of Cash whereas the Company previously presented these within investing activities. This standard was retrospectively applied to all periods presented. |
(14) | As of January 1, 2018, the Company adopted Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASC 606”) utilizing the modified retrospective method of transition. The Company recorded an adjustment of approximately $0.3 million to decrease its opening retained earnings on its consolidated balance sheet on January 1, 2018. |
• | The cyclical nature of the demand for LPG transportation may lead to significant changes in our chartering and vessel utilization, which may result in difficulty finding profitable charters for our vessels. |
• | Economic and political factors, including increased trade protectionism and tariffs and health pandemics, such as the COVID-19 pandemic, could materially adversely affect our business, financial position and results of operations. |
• | The impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity, demand for energy and seaborne energy transportation, the ability and willingness of charterers to fulfill their obligations to us, charter rates for LPG carriers, crude oil and product tankers, drydocking and repairs, changing vessel crews and availability of financing. |
• | Our revenues, operations and future growth could be adversely affected by a decrease in supply of liquefied natural gas, or natural gas. |
• | The product carrier and crude oil tanker shipping sectors are cyclical, which may lead to lower charter rates and vessel values. |
• | An over-supply of ships may lead to a reduction in charter rates, vessel values and profitability. |
• | The market values of our vessels may remain at relatively low levels for a prolonged period and over time may fluctuate significantly. When the market values of our vessels are low, we may incur a loss on sale of a vessel or record an impairment charge, which may adversely affect our profitability and possibly lead to defaults under our loan agreements. |
• | Technological innovation could reduce our charter hire income and the value of our vessels. |
• | Changes in fuel, or bunker, prices may adversely affect profits. |
• | We are subject to regulation and liability under environmental laws that could require significant expenditures and affect our financial conditions and results of operations. |
• | Risks involved with operating ocean-going vessels could affect our business and reputation, which would adversely affect our revenues and stock price. |
• | Governments could requisition our vessels during a period of war or emergency, and maritime claimants could arrest our vessels. |
• | Our operations outside the United States expose us to global risks, such as political conflict, terrorism and public health concerns, which may interfere with the operation of our vessels. |
• | We are dependent on the ability and willingness of our charterers to honor their commitments to us for all our revenues . |
• | We are exposed to the volatile spot market and charters at attractive rates may not be available when the charters for our vessels expire which would have an adverse impact on our revenues and financial condition. |
• | We depend upon a few significant customers for a large part of our revenues. The loss of one or more of these customers could adversely affect our financial performance. |
• | Our loan agreements or other financing arrangements contain restrictive covenants that may limit our liquidity and corporate activities. |
• | The market values of our vessels may decrease, which could cause us to breach covenants in our credit and loan facilities, and could have a material adverse effect on our business, financial condition and results of operations. |
• | A significant increase in our debt levels may adversely affect us and our cash flows. |
• | We depend on our manager, Stealth Maritime Corporation S.A., to operate our business. |
• | Delays in the delivery of any newbuilding or secondhand LPG carriers we agree to acquire could harm our operating results. |
• | We are exposed to volatility in, and related to the phasing out of, LIBOR. |
• | We may enter into derivative contracts to hedge our exposure to fluctuations in interest rates, which could result in higher than market interest rates and charges against our income. |
• | We may have to pay tax on U.S.-source income or may become a passive foreign investment company. |
• | As a foreign private issuer we are entitled to claim an exemption from certain Nasdaq corporate governance standards, and if we elected to rely on this exemption, you may not have the same protections afforded to stockholders of companies that are subject to all of the Nasdaq corporate governance requirements. |
• | We are incorporated in the Republic of the Marshall Islands, which does not have a well-developed body of corporate law or a bankruptcy act, and it may be difficult to enforce service of process and judgments against us and our officers and directors. |
• | The market price of our common stock has fluctuated and may continue to fluctuate in the future, and we may not pay dividends on our common stock. |
• | Anti-takeover provisions in our organizational documents and other agreements could make it difficult for our stockholders to replace or remove our current Board of Directors or have the effect of discouraging, delaying or preventing a merger or acquisition, which could adversely affect the market price of our common stock. |
• | supply and demand for LPG products; |
• | the price of oil; |
• | global and regional economic conditions; |
• | the distance LPG products are to be moved by sea; |
• | availability of alternative transportation means; |
• | changes in seaborne and other transportation patterns; |
• | environmental and other regulatory developments; |
• | weather; and |
• | pandemics, such as the outbreak and spread of COVID-19; |
• | the number of newbuilding deliveries; |
• | the scrapping rate of older vessels; |
• | LPG carrier prices; |
• | changes in environmental and other regulations that may limit the useful lives of vessels; and |
• | the number of vessels that are out of service. |
• | adverse global or regional economic or political conditions, particularly in LPG consuming regions, which could reduce energy consumption; |
• | a reduction in global or general industrial activity specifically in the plastics and chemical industries; |
• | a renewed decline in the price of oil which makes LPG a less attractive alternative for some uses and generally leads to reduced production of oil and gas; |
• | changes in the cost of petroleum and natural gas from which LPG is derived; |
• | decreases in the consumption of LPG or natural gas due to availability of new alternative energy sources, or increases in the price of LPG or natural gas relative to other energy sources, or other factors making consumption of LPG or natural gas less attractive; and |
• | increases in pipelines for LPG, which are currently few in number, linking production areas and industrial and residential areas consuming LPG, or the conversion of existing non-petroleum gas pipelines to petroleum gas pipelines in those markets. |
• | general economic and market conditions affecting the shipping industry; |
• | age, sophistication and condition of our vessels; |
• | types and sizes of vessels; |
• | availability of other modes of transportation; |
• | cost and delivery of schedules for new-buildings; |
• | governmental and other regulations; |
• | supply and demand for LPG products and refined petroleum products and oil, respectively; |
• | prevailing level of LPG charter rates and, with respect to our product carriers, the prevailing level of product carrier charter rates and crude oil tanker rates, respectively; and |
• | technological advances. |
• | marine accident or disaster; |
• | piracy and terrorism; |
• | explosions; |
• | environmental accidents; |
• | pollution; |
• | loss of life; |
• | cargo and property losses or damage; and |
• | business interruptions caused by mechanical failure, human error, war, political action in various countries, labor strikes or adverse weather conditions. |
• | incur additional indebtedness; |
• | create liens on our assets; |
• | sell capital stock of our subsidiaries; |
• | make investments; |
• | engage in mergers or acquisitions; |
• | pay dividends; and |
• | make capital expenditures. |
• | the administration, chartering and operations supervision of our fleet; |
• | our recognition and acceptance as owners of LPG, product and crude oil carriers, including our ability to attract charterers; |
• | relations with charterers and charter brokers; |
• | operational expertise; and |
• | management experience. |
• | locating and acquiring suitable vessels; |
• | identifying and completing acquisitions or joint ventures; |
• | integrating any acquired business successfully with our existing operations; |
• | expanding our customer base; and |
• | obtaining required financing. |
• | authorizing our Board of Directors to issue “blank check” preferred stock without stockholder approval; |
• | providing for a classified Board of Directors with staggered three-year terms; |
• | prohibiting cumulative voting in the election of directors; |
• | authorizing the removal of directors only for cause and only upon the affirmative vote of the holders of 80% of the outstanding shares of our common stock entitled to vote for the directors; |
• | limiting the persons who may call special meetings of stockholders; |
• | establishing advance notice requirements for nominations for election to our Board of Directors or for proposing matters that can be acted on by stockholders at stockholder meetings; and |
• | prohibiting certain transactions with interested stockholders. |
Item 4. |
Information on the Company |
Name |
Year Built |
Vessel Size (cbm) |
Vessel Type |
Employment Status |
Expiration of Charter(1) | |||||
Eco Arctic |
2018 | 22,363 | semi-refrigerated |
Time Charter | September 2021 | |||||
Eco Ice |
2018 | 22,358 | semi-refrigerated | Time Charter | February 2022 |
Name |
Year Built |
Vessel Size (cbm) |
Vessel Type |
Employment Status |
Expiration of Charter(1) | |||||
Eco Freeze |
2018 | 22,353 | semi-refrigerated |
Time Charter | October 2021 | |||||
Eco Frost |
2017 | 22,359 | semi-refrigerated | Time Charter | February 2022 | |||||
Eco Blizzard |
2021 | 11,013 | fully-pressurized | Time Charter | May 2021 | |||||
Eco Alice |
2020 | 7,543 | fully-pressurized | Spot | — | |||||
Eco Nical |
2016 | 7,541 | fully-pressurized | Time Charter | June 2021 | |||||
Gas Husky |
2012 | 7,516 | fully-pressurized | Time Charter | August 2021 | |||||
Gas Esco |
2012 | 7,514 | fully-pressurized | Time Charter | June 2021 | |||||
Eco Dominator |
2016 | 7,221 | fully-pressurized | Time Charter | June 2021 | |||||
Eco Galaxy |
2015 | 7,213 | fully-pressurized | Spot | — | |||||
Eco Chios(4) |
2014 | 7,211 | fully-pressurized | Bareboat Charter | May 2022 | |||||
Eco Stream(4) |
2014 | 7,210 | fully-pressurized | Bareboat Charter | March 2022 | |||||
Gas Flawless |
2007 | 6,337 | fully-pressurized | Time Charter | June | |||||
Gas Prodigy |
2003 | 5,031 | fully-pressurized | Spot | — | |||||
Eco Enigma |
2015 | 5,025 | fully-pressurized | Time Charter | January 2022 | |||||
Eco Universe(6) |
2015 | 5,025 | fully-pressurized | Time Charter | February 2022 | |||||
Eco Czar |
2015 | 5,020 | fully-pressurized | Time Charter | April 2021 | |||||
Eco Nemesis(6) |
2015 | 5,019 | fully-pressurized | Time Charter | March 2022 | |||||
Gas Monarch |
1997 | 5,018 | fully-pressurized | Spot | — | |||||
Gas Elixir |
2011 | 5,018 | fully-pressurized | Spot | — | |||||
Gas Cerberus |
2011 | 5,018 | fully-pressurized | Spot | — | |||||
Gas Myth(6) |
2011 | 5,018 | fully-pressurized | Time Charter | January 2023 | |||||
Gas Inspiration |
2006 | 5,018 | fully-pressurized | Spot | — | |||||
Eco Invictus(6) |
2014 | 5,016 | fully-pressurized | Time Charter | November 2021 | |||||
Eco Texiana |
2020 | 5,030 | fully-pressurized | Time Charter | June 2021 | |||||
Eco Green |
2015 | 4,991 | fully-pressurized | Spot | — | |||||
Eco Dream |
2015 | 4,989 | fully-pressurized | Spot | — | |||||
Gas Spirit |
2001 | 4,112 | fully-pressurized | Time Charter | November 2021 | |||||
Eco Loyalty(7) |
2015 | 3,529 | fully-pressurized | Time Charter | February 2022 | |||||
Eco Elysium(5) |
2014 | 3,526 | fully-pressurized | Time Charter | June 2024 | |||||
Eco Royalty(7) |
2015 | 3,525 | fully-pressurized | Time Charter | February 2022 | |||||
Eco Corsair |
2014 | 3,524 | fully-pressurized | Time Charter | February 2022 | |||||
Gas Imperiale |
2008 | 3,515 | fully-pressurized | Spot | — | |||||
Gas Astrid(4) |
2009 | 3,514 | fully-pressurized | Bareboat Charter | March 2022 | |||||
Gas Exelero(4) |
2009 | 3,513 | fully-pressurized | Bareboat Charter | June 2022 | |||||
Gas Alice |
2006 | 3,513 | fully-pressurized | Time Charter | August 2021 | |||||
Gas Galaxy |
1997 | 3,312 | fully-pressurized | Time Charter | September 2022 | |||||
271,571 cbm |
||||||||||
JV LPG Vessels (8 vessels) |
||||||||||
Eco Nebula(2) |
2007 | 38,898 | fully-refrigerated |
Time Charter | June 2021 | |||||
Gaschem Bremen(3) |
2010 | 35,232 | fully-refrigerated | Time Charter | August 2021 | |||||
Eco Evoluzione (ex. Gaschem Stade)(3) |
2010 | 35,214 | fully-refrigerated | Time Charter | August 2021 | |||||
Gaschem Hamburg(3),(8) |
2010 | 35,204 | fully-refrigerated | Time Charter | April 2021 | |||||
Gas Haralambos(2) |
2007 | 7,020 | fully-pressurized | Spot | — | |||||
Gas Defiance(2) |
2008 | 5,018 | fully-pressurized | Spot | — | |||||
Gas Shuriken(2) |
2008 | 5,018 | fully-pressurized | Time Charter | May 2021 | |||||
Eco Lucidity(2) |
2015 | 3,517 | fully-pressurized | Time Charter | April 2021 | |||||
165,121 cbm |
||||||||||
Total LPG Carrier Fleet: 46 vessels |
436,692 cbm |
(1) | Earliest date charters could expire. |
(2) | JV vessel owned by a joint venture established in 2019 in which we own a 50.1% equity interest. |
(3) | JV vessel owned by a joint venture established in 2020 in which we own a 51% equity interest. |
(4) | Subject to a purchase option pursuant to which the charterer may purchase such vessel at any time during the charter at a price that declines over time by an agreed annual amount or pro-rated from the agreed value of the vessel at the time of entering into the charter in the first quarter of 2014. |
(5) | Charterer has option to extend charter for an additional three-year period. |
(6) | Charterer has option to extend charter for an additional year. |
(7) | Charterer has two options to extend, each, of one-year duration. |
(8) | In March 2021, we entered into a memorandum of agreement to sell this vessel for further trading. |
Name |
Year Built |
Vessel Size (dwt) |
Vessel Type |
Employment Status |
Expiration of Charter(1) |
|||||||||
Magic Wand (ex. Navig8 Fidelity) |
2008 | 47,000 | MR product carrier | Time Charter | March 2022 | |||||||||
Clean Thrasher |
2008 | 47,000 | MR product carrier | Time Charter | August 2021 | |||||||||
Falcon Maryam (ex.Stealth Bahla) |
2009 | 46,000 | MR product carrier | Bareboat Charter | September 2021 | |||||||||
Stealth Berana (ex. Spike) |
2010 | 115,804 | Aframax oil tanker | Time Charter | September 2021 | |||||||||
255,804 dwt |
(1) | Earliest date charters could expire. |
• | natural resources damage and the costs of assessment thereof; |
• | real and personal property damage; |
• | net loss of taxes, royalties, rents, fees and other lost revenues; |
• | lost profits or impairment of earning capacity due to property or natural resources damage; and |
• | net cost of public services necessitated by a spill response, such as protection from fire, safety or health hazards, and loss of subsistence use of natural resources. |
• | on-board installation of automatic information systems, or AIS, to enhance vessel-to-vessel vessel-to-shore |
• | on-board installation of ship security alert systems; |
• | the development of vessel security plans; and |
• | compliance with flag state security certification requirements. |
Item 4A. |
Unresolved Staff Comments |
Item 5. |
Operating and Financial Review and Prospects |
• | Charters and revenues. |
• | Charters and expenses. |
• | Calendar days off-hire days associated with major repairs, dry dockings or special or intermediate surveys. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenue and the amount of expense that we record during that period. In the first quarter of 2019, we agreed to sell a 49.9% equity interest in the entities owning four of our LPG carriers. We may also elect to sell additional vessels in our fleet from time to time, generally older and smaller vessels, such as the two old LPG carriers we sold in 2020, one LPG carrier we agreed to sell in 2019 (excluding four of our vessels in which we sold a 49.9% equity interest in our joint venture arrangement) and seven LPG carriers we agreed to sell in 2018. Four of our LPG carriers are subject to arrangements pursuant to which the charterer has options to purchase the vessels at declining stipulated prices at any time during the current charter for the respective vessels, which expire in 2022. If any of these purchase options were to be exercised, the expected size of our LPG carrier fleet would be reduced, and as a result our anticipated level of calendar days and revenues would be reduced. |
• | Voyage days off-hire days associated with major repairs, dry dockings or special or intermediate surveys. The shipping industry uses voyage days (also referred to as available days) to measure the number of days in a period during which vessels are available to generate revenues. |
• | Fleet utilization; Fleet operational utilization off-hire for reasons such as scheduled repairs, vessel upgrades or drydockings and other surveys, and uses fleet operational utilization to also measure a company’s efficiency in finding suitable employment for its vessels. |
• | Cyclicality COVID-19 virus and the resulting disruptions to the international shipping industry and energy demand, including the recent sharp decline in the price of oil, have and could continue to negatively affect small and medium range LPG carrier charter rates. |
• | Seasonality |
• | revenue estimates based on nine-year historical average rates (base rate) for periods for which there is no charter in place for vessels of less than twenty years of age and, |
• | revenue estimates based on five-year historical average rates for periods for which there is no charter in place for vessels of twenty years of age and above, |
• | 94.0% for vessels of less than twenty years of age, and |
• | actual five-year historical average utilization rate for the vessels of twenty years of age and above. |
Percentage difference between our average 2020 rates as compared with the base rates for the vessels |
5-year historicalaverage rate |
3-year historicalaverage rate |
1-year historicalaverage rate |
|||||||||||||||||||||||||||||
of less than twenty years of age |
of twenty years of age and above |
No. of vessels |
Amount ($ million) |
No. of vessels |
Amount ($ million) |
No. of vessels |
Amount ($ million) |
|||||||||||||||||||||||||
LPG Carriers |
1.55 | % | 5.52 | % | 1 | 0.7 | 1 | 0.7 | 2 | 2.8 | ||||||||||||||||||||||
Product Carriers |
-20.45 | % | — | 3 | 34.6 | 3 | 34.6 | 3 | 34.6 | |||||||||||||||||||||||
Aframax Tanker |
0.33 | % | — | — | — | — | — | — | — |
Credit Facility Issue Date |
Outstanding Principal Amount (in millions) |
Maturity |
Installment Frequency |
Installment Amount (in millions) |
Balloon (in millions) |
Mortgaged Vessels | ||||||||||||||||
May 28, 2019 |
$ | 9.08 | Apr 2024 | Quarterly | $ | 0.32 | $ | 4.60 | Gas Astrid, Gas Exelero | |||||||||||||
December 14, 2018 |
$ | 9.69 | Dec 2023 | Quarterly | $ | 0.55 | $ | 3.09 | Stealth Berana, | |||||||||||||
$ | 7.90 | Dec 2023 | Quarterly | $ | 0.20 | $ | 5.48 | Eco Invictus | ||||||||||||||
August 6, 2019 |
$ | 18.60 | Mar 2024 | Quarterly | $ | 0.83 | $ | 7.88 | Gas Elixir Gas Cerberus Gas Myth | |||||||||||||
July 5, 2019 |
$ | 18.26 | July 2026 | Quarterly | $ | 0.79 | $ | 0.0 | Gas Husky Gas Esco | |||||||||||||
March 29, 2019 |
$ | 13.70 | Dec 2022 | Quarterly | $ | 1.13 | $ | 4.63 | Gas Alice, Gas Inspiration, Gas Imperiale | |||||||||||||
Clean Thrasher | ||||||||||||||||||||||
August 7, 2019 |
$ | 7.96 | Mar 2021 | Semi-Annual |
$ | 0.63 | $ | 7.33 | Eco Stream | |||||||||||||
$ | 7.96 | Jun 2021 | Semi-Annual |
$ | 0.63 | $ | 7.33 | Eco Chios | ||||||||||||||
$ | 9.50 | Jul 2022 | Semi-Annual |
$ | 0.54 | $ | 7.33 | Eco Galaxy | ||||||||||||||
June 20, 2014 |
$ | 6.17 | Jan 2023 | Quarterly | $ | 0.17 | $ | 4.64 | Eco Corsair | |||||||||||||
$ | 6.60 | Jan 2023 | Quarterly | $ | 0.19 | $ | 4.93 | Eco Elysium | ||||||||||||||
July 29, 2014 |
$ | 7.13 | Jul 2023 | Quarterly | $ | 0.26 | $ | 4.23 | Eco Enigma | |||||||||||||
$ | 7.13 | Jul 2023 | Quarterly | $ | 0.26 | $ | 4.23 | Eco Universe | ||||||||||||||
July 4, 2014 |
$ | 7.11 | Aug 2021 | Quarterly | $ | 0.20 | $ | 6.50 | Eco Czar | |||||||||||||
$ | 7.11 | Sep 2021 | Quarterly | $ | 0.20 | $ | 6.50 | Eco Nemesis | ||||||||||||||
August 6, 2019 |
$ | 10.75 | Sep 2022 | Quarterly | $ | 0.25 | $ | 9.00 | Eco Dream | |||||||||||||
$ | 10.75 | Sep 2022 | Quarterly | $ | 0.25 | $ | 9.00 | Eco Green | ||||||||||||||
$ | 10.95 | Feb 2023 | Quarterly | $ | 0.25 | $ | 8.74 | Eco Nical | ||||||||||||||
$ | 11.19 | Jun 2023 | Quarterly | $ | 0.25 | $ | 8.74 | Eco Dominator | ||||||||||||||
December 24, 2015 |
$ | 7.47 | Dec 2022 | Quarterly | $ | 0.19 | $ | 5.97 | Eco Royalty | |||||||||||||
$ | 7.47 | Dec 2022 | Quarterly | $ | 0.19 | $ | 5.97 | Eco Loyalty | ||||||||||||||
December 7, 2017 |
$ | 6.60 | Dec 2022 | Quarterly | $ | 0.33 | $ | 4.00 | Magic Wand | |||||||||||||
$ | 7.41 | Dec 2022 | Quarterly | $ | 0.36 | $ | 4.50 | Stealth Bahla | ||||||||||||||
May 18, 2016 |
$ | 25.39 | May 2025 | Quarterly | $ | 0.51 | $ | 16.25 | Eco Frost | |||||||||||||
$ | 27.45 | Dec 2025 | Quarterly | $ | 0.52 | $ | 16.57 | Eco Ice | ||||||||||||||
March 1, 2017 |
$ | 28.55 | Jan 2026 | Quarterly | $ | 0.63 | $ | 15.23 | Eco Arctic | |||||||||||||
$ | 28.97 | Apr 2026 | Quarterly | $ | 0.63 | $ | 15.11 | Eco Freeze | ||||||||||||||
June 19, 2020 |
$ | 11.12 | June 2026 | Quarterly | $ | 0.19 | $ | 6.90 | Eco Texiana | |||||||||||||
April 30, 2020 |
$ | 15.60 | Nov 2026 | Quarterly | $ | 0.22 | $ | 10.62 | Eco Alice |
• | ensure that our leverage, which is defined as total debt net of cash/total market adjusted assets, does not at any time exceed 80%; |
• | maintain a ratio of the aggregate market value of the vessels securing the loan to the principal amount outstanding under such loan (which we sometimes refer to as the value maintenance or security coverage clause) at all times in excess of a range from 120% to 135% depending on our different loan agreements; |
• | ensure that our ratio of EBITDA (as defined in the loan agreements) to interest expense over the preceding twelve months is at all times more than 2.5 times; and |
• | to maintain on a monthly basis a cash balance amounting to $1,308,971 representing a proportionate amount of the next installment and relevant interest plus a minimum aggregate cash balance amounting to $12,015,820 in the earnings account with the relevant banks. |
Payments due by period (in thousands) |
||||||||||||||||||||
Total |
Less than 1 year (2021) |
1-3 years(2022-2023) |
3-5 years(2024-2025) |
More than 5 years (After January 1, 2026) |
||||||||||||||||
Long-term debt obligations |
$ | 353,529 | $ | 41,162 | $ | 138,165 | $ | 88,244 | $ | 85,958 | ||||||||||
Interest on principal amounts outstanding(1) |
$ | 35,437 | $ | 8,229 | $ | 14,026 | $ | 10,513 | $ | 2,669 | ||||||||||
Interest on interest rate swap arrangements outstanding(1) |
$ | 4,499 | $ | 1,703 | $ | 2,164 | $ | 632 | — | |||||||||||
Management fees(2) |
$ | 8,882 | $ | 5,921 | $ | 2,961 | — | — | ||||||||||||
Vessel purchase commitments |
$ | 23,152 | $ | 23,152 | — | — | — | |||||||||||||
Executive fees |
$ | 586 | $ | 586 | — | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 426,085 | $ | 80,753 | $ | 157,316 | $ | 99,389 | $ | 88,627 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Based on assumed 3M LIBOR rates of 0.199% for 2021, 0.341% for 2022, 0.865% for 2023, 1.482% for 2024, and 1.949% for 2025 and 2.214% thereafter and the effect of our interest rate swap arrangements. |
(2) | Based on our management agreement with Stealth Maritime, we pay $125 per vessel per day for vessels on bareboat charter and $440 per vessel per day for vessels not on bareboat charter for our existing fleet (apart from four vessels for which some services are currently provided by third party managers, where a fixed daily fee of $280 is charged by Stealth Maritime). We also pay 1.25% of the gross freight, demurrage and charter hire collected from employment of our ships and 1% of the contract price of any vessels bought or sold on our behalf. The initial term of our management agreement with Stealth Maritime expired in June 2010, but is extended on a year-to-year |
Item 6. |
Directors, Senior Management and Employees |
Name |
Age |
Positions |
Year Became Director |
Year Director’s Current Term Expires |
||||||||||
Harry N. Vafias |
43 | Chief Executive, President, Chief Financial Officer and Class III Director | 2004 | 2021 | ||||||||||
Michael G. Jolliffe |
71 | Chairman of the Board, Class II Director | 2004 | 2022 | ||||||||||
Markos Drakos |
61 | Class I Director | 2006 | 2023 | ||||||||||
John Kostoyannis |
55 | Class II Director | 2010 | 2022 |
• | a Code of Business Conduct and Ethics; |
• | a Nominating and Corporate Governance Committee Charter; |
• | a Compensation Committee Charter; and |
• | an Audit Committee Charter. |
• | integrity of the Company’s financial statements, including its system of internal controls; |
• | Company’s compliance with legal and regulatory requirements; |
• | independent auditor’s appointment, qualifications and independence; |
• | retention, setting of compensation for, termination and evaluation of the activities of the Company’s independent auditors, subject to any required shareholder approval; and |
• | performance of the Company’s independent audit function and independent auditors, as well preparing an Audit Committee Report to be included in our annual proxy statement. |
• | reviewing the Board structure, size and composition and making recommendations to the Board with regard to any adjustments that are deemed necessary; |
• | evaluating and recommending to the Board the slate of nominees for directors to be elected by the stockholders at the Company’s next annual meeting of stockholders and, where applicable, to fill vacancies; |
• | recommending to the Board the responsibilities of the Board committees, including each committee’s structure, operations, and authority to delegate to subcommittees; |
• | evaluating and recommending to the Board those directors to be appointed to the various Board committees, including the persons recommended to serve as chairperson of each committee; |
• | reviewing annually the compensation of non-employee directors and the principles upon which such compensation is determined; |
• | consulting with the Chief Executive Officer, as appropriate, and other Board members to ensure that its decisions are consistent with the sound relationship among the Board, Board committees, individual directors and management; |
• | overseeing the Board’s annual evaluation of its own performance and the performance of other Board committees; |
• | retaining, setting compensation and retentions terms for and terminating any search firm to be used to identify candidates; and |
• | developing and recommending to the Board for adoption a set of Corporate Governance Guidelines applicable to the Company and periodically reviewing the same. |
• | establishing and periodically reviewing the Company’s compensation programs; |
• | administering the Company’s equity compensation plan; |
• | reviewing the performance of directors, officers and employees of the Company who are eligible for awards and benefits under any plan or program and adjust compensation arrangements as appropriate based on performance; |
• | reviewing and monitoring management development and succession plans and activities; |
• | from time to time when necessary, reviewing with the Chief Executive Officer the latter’s proposed succession plan for each executive officer and the Chief Executive Officer’s evaluation of each such executive officer; |
• | in case of unexpected unavailability, reviewing with the Board the Company’s succession plan for the CEO and other executive officers, including plans for emergency succession; |
• | retaining, setting compensation and retention terms for, and terminating any consultants, legal counsel or other advisors that the Compensation Committee determines to employ to assist it in the performance of its duties; and |
• | preparing any Compensation Committee report included in our annual proxy statement. |
Item 7. |
Major Shareholders and Related Party Transactions |
• | each person or entity that we know beneficially owns 5% or more of our shares of common stock; |
• | our Chief Executive Officer and our other members of senior management; |
• | each of our directors; and |
• | all of our current directors and executive officers as a group. |
Shares of Common Stock Beneficially Owned |
||||||||
Name of Beneficial Owner |
Number |
Percentage |
||||||
Principal Stockholders |
||||||||
Flawless Management Inc.(1) |
7,105,453 | 18.8 | % | |||||
Glendon Capital Management L.P.(2) |
6,498,794 | 17.2 | % | |||||
MSDC Management, L.P.(3) |
3,516,652 | 9.3 | % | |||||
Russell Investments Group, Ltd.(4) |
2,780,001 | 7.3 | % | |||||
Redwood Capital Management, LLC(5) |
2,404,887 | 6.4 | % | |||||
Renaissance Technologies LLC(6) |
2,300,800 | 6.1 | % | |||||
Executive Officers and Directors |
||||||||
Harry N. Vafias(1) |
7,774,243 | 20.5 | % | |||||
Michael G. Jolliffe |
32,430 | * | ||||||
Markos Drakos |
18,214 | * | ||||||
John Kostoyannis |
7,296 | * | ||||||
All executive officers and directors as a group (four persons) |
7,832,183 | 20.7 | % |
* | Less than 1%. |
(1) | The shares beneficially owned by Harry N. Vafias consist of, according to Amendment No. 1 to Schedule 13D jointly filed with the SEC on March 27, 2020 by Flawless Management Inc. and Harry N. Vafias, 7,774,243 shares of common stock beneficially owned by Harry N. Vafias, of which 7,105,453 shares of common stock are owned by Flawless Management Inc. and Harry N. Vafias and 668,790 shares beneficially owned by Harry N. Vafias. Harry N. Vafias has sole voting power and sole dispositive power with respect to all such shares. |
(2) | Based on filings made by Glendon Capital Management L.P. with the SEC. According to these filings, these shares are directly owned by Glendon Opportunities Fund, L.P. (the “Fund”), Altair Global Credit Opportunities Fund LLC (the “Sub-Advised Fund”) and a separately managed account. According to these filings, (i) the Fund is beneficial owner of over 10% of the issuer’s securities on an individual basis, (ii) the Sub-Advised Fund and the separately managed account do not own 10% of the issuer’s securities on an individual basis and (iii) Glendon Capital Management LP is the investment manager to the Fund and the separately managed account and the investment sub-adviser to the Sub-Advised Fund, and may be deemed to beneficially own these securities under the Securities Exchange Act of 1934. |
(3) | According to Amendment No. 3 to a Schedule 13G jointly filed by and on behalf of each of MSDC Management, L.P. (“MSDC”) and MSD Credit Opportunity Master Fund, L.P. with the SEC on February 12, 2021, MSDC is the investment manager of, and may be deemed to beneficially own 3,516,652 shares of common stock beneficially owned by, MSD Credit Opportunity Master Fund, L.P. and has sole voting power and joint dispositive power with respect to all such shares. |
(4) | According to a Schedule 13G filed by Russell Investments Group, Ltd. on February 12, 2020. |
(5) | According to Amendment No. 3 to a Schedule 13G jointly filed by and on behalf of each Redwood Capital Management, LLC, Redwood Capital Management Holdings, LP, Double Twins K, LLC, Redwood Master Fund, Ltd. and Ruben Kliksberg, which may each be deemed to have shared voting power and joint dispositive power with respect to all such shares, on February 16, 2021. |
(6) | According to Amendment No. 1 to a Schedule 13G jointly filed by and on behalf of Renaissance Technologies LLC and Renaissance Technologies Holdings Corporation on February 11, 2021. |
Item 8. |
Financial Information |
Item 9. |
The Offer and Listing |
Item 10. |
Additional Information |
• | persons who are the beneficial owners of 15% or more of the outstanding voting stock of the corporation; and |
• | persons who are affiliates or associates of the corporation and who hold 15% or more of the corporation’s outstanding voting stock at any time within three years before the date on which the person’s status as an interested stockholder is determined. |
• | certain mergers or consolidations of the corporation or any direct or indirect majority-owned subsidiary of the company; |
• | the sale, lease, exchange, mortgage, pledge, transfer or other disposition of assets having an aggregate market value equal to 10% or more of either the aggregate market value of all assets of the corporation, determined on a consolidated basis, or the aggregate value of all the outstanding stock of the corporation; |
• | certain transactions that result in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; |
• | any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series, or securities convertible into the stock of any class or series, of the corporation that is owned directly or indirectly by the interested stockholder; and |
• | any receipt by the interested stockholder of the benefit (except as a stockholder) of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation. |
• | before a person becomes an interested stockholder, the board of directors of the corporation approves the business combination or transaction in which the stockholder became an interested stockholder; |
• | upon consummation of the transaction that resulted in the interested stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, other than certain excluded shares; |
• | following a transaction in which the person became an interested stockholder, the business combination is (a) approved by the board of directors of the corporation and (b) authorized at a regular or special meeting of stockholders, and not by written consent, by the vote of the holders of at least two-thirds of the voting stock of the corporation not owned by the stockholder; or |
• | a transaction with a stockholder that was or became an interested stockholder prior to the consummation of our initial public offering. |
• | we or our subsidiaries have, or are considered to have, a fixed place of business in the United States involved in the earning of shipping income; and |
• | substantially all (at least 90%) of our United States-source shipping income, other than leasing income or that of a subsidiary, is attributable to regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the United States. |
• | we or our subsidiaries have, or are considered to have, a fixed place of business in the United States that is involved in the meaning of such leasing income; and |
• | substantially all (at least 90%) of our United States-source shipping income from leasing or that of a subsidiary is attributable to such fixed place of business. |
• | at least 75% of our gross income for such taxable year consists of passive income (e.g., dividends, interest, capital gains and rents derived other than in the active conduct of a rental business); or |
• | at least 50% of the average value of our assets during such taxable year produce, or are held for the production of, passive income. |
• | the excess distribution or gain would be allocated ratably over the Non-Electing Holder’s aggregate holding period for the common stock; |
• | the amount allocated to the current taxable year or to any portion of the United States Holder’s holding period prior to the first taxable year for which we were a PFIC would be taxed as ordinary income; and |
• | the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable to each such other taxable year. |
• | the gain is effectively connected with the Non-United States Holder’s conduct of a trade or business in the United States. If the Non-United States Holder is entitled to the benefits of an income tax treaty with respect to that gain, that gain generally is taxable only if it is attributable to a permanent establishment maintained by the Non-United States Holder in the United States; or |
• | the Non-United States Holder is an individual who is present in the United States for 183 days or more during the taxable year of disposition and other conditions are met. |
• | fails to provide an accurate taxpayer identification number; |
• | is notified by the Internal Revenue Service that you have failed to report all interest or dividends required to be shown on your federal income tax returns; or |
• | in certain circumstances, fails to comply with applicable certification requirements. |
Item 11. |
Quantitative and Qualitative Disclosures About Market Risk |
Effective Date |
Termination Date |
Notional Amount on Effective Date (in millions) |
Fixed Rate (StealthGas pays) |
Floating Rate (StealthGas Receives) |
Fair Value December 31, 2020 (in millions) |
Notional Amount December 31, 2020 (in millions) |
Estimated Notional Amount December 31, 2021 (in millions) |
|||||||||||||||||||
Swap 1 |
November 4, 2015 | August 4, 2021 | $ | 11.2 | 1.52 | % | 3 month U.S. dollar LIBOR | $ | (0.07 | ) | $ | 7.11 | $ | — | ||||||||||||
Swap 2 |
December 3, 2015 | September 3, 2021 | $ | 11.2 | 1.55 | % | 3 month U.S. dollar LIBOR | $ | (0.07 | ) | $ | 7.11 | $ | — | ||||||||||||
Swap 3 |
August 16, 2017 | May 16, 2025 | $ | 16.0 | 2.12 | % | 3 month U.S. dollar LIBOR | $ | (0.86 | ) | $ | 12.70 | $ | 11.68 | ||||||||||||
Swap 4 |
March 12, 2018 | December 11, 2022 | $ | 21.6 | 2.74 | % | 3 month U.S. dollar LIBOR | $ | (0.60 | ) | $ | 14.01 | $ | 11.26 | ||||||||||||
Swap 5 |
April 10, 2018 | December 11, 2025 | $ | 32.6 | 2.74 | % | 3 month U.S. dollar LIBOR | $ | (2.68 | ) | $ | 27.45 | $ | 25.38 | ||||||||||||
Swap 6 |
February 16, 2019 | February 16, 2024 | $ | 14.5 | 2.89 | % | 3 month U.S. dollar LIBOR | $ | (0.96 | ) | $ | 12.70 | $ | 11.68 | ||||||||||||
Total |
$ | (5.24 | ) | $ | 81.08 | $ | 60.00 |
Item 12. |
Description of Securities Other than Equity Securities |
Item 13. |
Defaults, Dividend Arrearages and Delinquencies |
Item 14. |
Material Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. |
Controls and Procedures |
Item 16A. |
Audit Committee Financial Expert |
Item 16B. |
Code of Ethics |
Item 16C. |
Principal Accountant Fees and Services |
2020 |
2019 |
|||||||
Audit fees |
$ | 381 | $ | 359 | ||||
Assurance/audit related fees |
— | — | ||||||
Tax fees |
— | — | ||||||
All other fees |
— | — | ||||||
Total |
$ |
381 |
$ |
359 |
Item 16D. |
Exemptions from the Listing Standards for Audit Committees |
Item 16E. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Period |
Total Number of Shares Purchased (a) |
Average Price Paid Per Share (b) |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c) |
Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (d) |
||||||||||||
May 24 to 31, 2019 |
18,442 | $ | 3.38 | 18,442 | $ | 9,937,575 | ||||||||||
June 04 to 28, 2019 |
58,789 | 3.35 | 77,231 | 9,740,500 | ||||||||||||
July 2 to 30, 2019 |
54,883 | 3.74 | 132,114 | 9,535,495 | ||||||||||||
August 1 to 30, 2019 |
81,534 | 3.44 | 213,648 | 9,254,962 | ||||||||||||
September 03 to 30, 2019 |
96,946 | 3.11 | 310,594 | 8,953,145 | ||||||||||||
October 01 to 31, 2019 |
89,392 | 3.30 | 399,986 | 8,657,759 | ||||||||||||
November 01 to 29, 2019 |
25,380 | 3.40 | 425,366 | 8,571,457 | ||||||||||||
December 02 to 31, 2019 |
115,544 | 3.54 | 540,910 | 8,162,383 | ||||||||||||
January 02 to 31, 2020 |
190,879 | 3.30 | 731,789 | 7,533,071 | ||||||||||||
February 21 to 28, 2020 |
33,890 | 2.84 | 765,679 | 7,436,666 | ||||||||||||
March 02 to 27, 2020 |
135,023 | 2.12 | 900,702 | 7,150,148 |
Item 16F. |
Change in Registrant’s Certifying Accountant |
Item 16G. |
Corporate Governance |
Item 16H. |
Mine Safety Disclosures |
Item 17. |
Financial Statements |
Item 18. |
Financial Statements |
Item 19. |
Exhibits |
(1) | Previously filed as Exhibit 3.1 to the Company’s Registration Statement on Form F-1 (File No. 333-127905) filed with the SEC and hereby incorporated by reference to such Registration Statement. |
(2) | Previously filed as Exhibit 99.1 to a Report on Form 6-K filed with the SEC on December 24, 2014. |
(3) | Previously filed as Exhibit 4.1 to the Company’s Annual Report on Form 20-F for the year ended December 31, 2006 filed with the SEC on June 5, 2007. |
(4) | Previously filed as Exhibit 10.2 to the Company’s Registration Statement on Form F-1 (File No. 333-127905) filed with the SEC and hereby incorporated by reference to such Registration Statement. |
(5) | Previously filed as Exhibit 4.4 to the Company’s Registration Statement on Form S-8 (File No. 333-207168) filed with the SEC on September 28, 2015. |
STEALTHGAS INC. | ||
By: | /s/ Harry N. Vafias | |
Name: | Harry N. Vafias | |
Title: | President and Chief Executive Officer |
Pages |
||||
F-2 |
||||
F-4 |
||||
F-5 |
||||
F-6 |
||||
F-7 |
||||
F-8 |
||||
F-10 |
• | We tested the effectiveness of relevant controls over management’s review of the impairment analysis, including the future charter rates used within the undiscounted future cash flows analysis. |
• | We evaluated the Company’s methodology for estimating the future charter rates by using our industry experience. |
• | We evaluated the Company’s assumptions regarding future charter rates by comparing the future charter rates utilized in the undiscounted future cash flow analysis to 1) the Company’s historical rates, 2) the Company’s budget, 3) historical rate information by vessel class published by third parties and 4) other external market sources, including analysts’ reports and prospective market outlook. |
December 31, |
||||||||||||
Note |
2019 |
2020 |
||||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
||||||||||||
Trade and other receivables |
||||||||||||
Other current assets |
16 | |||||||||||
Claims receivable |
||||||||||||
Inventories |
4 | |||||||||||
Advances and prepayments |
||||||||||||
Restricted cash |
||||||||||||
Fair value of derivatives |
12 | — | ||||||||||
|
|
|
|
|||||||||
Total current assets |
||||||||||||
|
|
|
|
|||||||||
Non current assets |
||||||||||||
Advances for vessel under construction |
3 5, |
|||||||||||
Operating lease right-of-use |
20 | |||||||||||
Vessels, net |
3 6, |
|||||||||||
Other receivables |
||||||||||||
Restricted cash |
||||||||||||
Investments in joint ventures |
7 | |||||||||||
Deferred finance charges |
— | |||||||||||
Fair value of derivatives |
12 | — | ||||||||||
|
|
|
|
|||||||||
Total non current assets |
||||||||||||
|
|
|
|
|||||||||
Total assets |
||||||||||||
|
|
|
|
|||||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Current liabilities |
||||||||||||
Payable to related parties |
3 | |||||||||||
Trade accounts payable |
||||||||||||
Accrued liabilities |
8 | |||||||||||
Operating lease liabilities |
20 | — | ||||||||||
Customer deposits |
10 | |||||||||||
Deferred income |
9 | |||||||||||
Fair value of derivatives |
12 | |||||||||||
Current portion of long-term debt |
11 | |||||||||||
|
|
|
|
|||||||||
Total current liabilities |
||||||||||||
|
|
|
|
|||||||||
Non current liabilities |
||||||||||||
Fair value of derivatives |
12 | |||||||||||
Long-term debt |
11 | |||||||||||
|
|
|
|
|||||||||
Total non current liabilities |
||||||||||||
|
|
|
|
|||||||||
Total liabilities |
||||||||||||
|
|
|
|
|||||||||
Commitments and contingencies |
19 | |||||||||||
Stockholders’ equity |
||||||||||||
Capital stock, |
13 | |||||||||||
Treasury stock, |
13 | ( |
) | ( |
) | |||||||
Additional paid-in capital |
13 | |||||||||||
Retained earnings |
||||||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||||||
|
|
|
|
|||||||||
Total stockholders’ equity |
||||||||||||
|
|
|
|
|||||||||
Total liabilities and stockholders’ equity |
||||||||||||
|
|
|
|
December 31, |
||||||||||||||||
Note |
2018 |
2019 |
2020 |
|||||||||||||
Revenues |
||||||||||||||||
Revenues |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Total revenues |
16 | |||||||||||||||
|
|
|
|
|
|
|||||||||||
Expenses |
||||||||||||||||
Voyage expenses |
||||||||||||||||
Voyage expenses – related party |
3 | |||||||||||||||
Charter hire expenses |
20 | |||||||||||||||
Vessels’ operating expenses |
17 | |||||||||||||||
Vessels’ operating expenses – related party |
3,17 | |||||||||||||||
Dry-docking costs |
||||||||||||||||
Management fees – related party |
3 | |||||||||||||||
General and administrative expenses (including $ |
3 |
|||||||||||||||
Depreciation |
6 | |||||||||||||||
Impairment loss |
3,6,12 | |||||||||||||||
Net loss on sale of vessels |
3,6 | |||||||||||||||
Other operating income |
( |
) | — | — | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total expenses |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Income from operations |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Other (expenses)/income |
||||||||||||||||
Interest and finance costs |
( |
) | ( |
) | ( |
) | ||||||||||
Gain on deconsolidation of subsidiaries |
— | — | ||||||||||||||
Loss on derivatives |
12 | ( |
) | ( |
) | ( |
) | |||||||||
Interest income and other income |
||||||||||||||||
Foreign exchange loss |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
Other expenses, net |
( |
) |
( |
) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
(Loss)/Income before equity in earnings of investees |
( |
) |
||||||||||||||
Equity earnings in joint ventures |
7 | — | ||||||||||||||
|
|
|
|
|
|
|||||||||||
Net (Loss)/Income |
( |
) |
||||||||||||||
|
|
|
|
|
|
|||||||||||
(Loss)/Earnings per share |
||||||||||||||||
– Basic and diluted |
15 | ( |
) | |||||||||||||
|
|
|
|
|
|
|||||||||||
Weighted average number of shares |
||||||||||||||||
– Basic and diluted |
||||||||||||||||
|
|
|
|
|
|
December 31, |
||||||||||||||||
Note |
2018 |
2019 |
2020 |
|||||||||||||
Net (loss)/income |
( |
) |
||||||||||||||
Other comprehensive income |
||||||||||||||||
Cash flow hedges |
||||||||||||||||
Effective portion of changes in fair value of interest swap contracts |
12 | ( |
) | ( |
) | |||||||||||
Reclassification adjustment |
12 | — | ( |
) | ( |
) | ||||||||||
Total other comprehensive income/(loss) |
( |
) |
( |
) | ||||||||||||
Total comprehensive (loss)/income |
( |
) |
( |
) |
||||||||||||
Capital stock |
Treasury stock |
|||||||||||||||||||||||||||||||
Number |
Number |
Additional |
Accumulated |
|||||||||||||||||||||||||||||
of |
of |
Paid-in |
Other |
|||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Capital |
Retained |
Comprehensive |
||||||||||||||||||||||||||
(Note 13) |
(Note 13) |
(Note 13) |
(Note 13) |
(Note 13) |
Earnings |
Income / (loss) |
Total |
|||||||||||||||||||||||||
Balance, December 31, 2017 |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Cumulative effect of accounting change – ASC 606 |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
Balance, January 1, 2018 |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of restricted shares and stock based compensation |
— | — | — | — | ||||||||||||||||||||||||||||
Comprehensive loss for the year |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||
Balance, December 31, 2018 |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Stock based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Stock repurchase |
— | — | ( |
) | ( |
) | — | — | — | ( |
) | |||||||||||||||||||||
Comprehensive loss for the year |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||
Balance, December 31, 2019 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock repurchase |
— | — | ( |
) | ( |
) | — | — | — | ( |
) | |||||||||||||||||||||
Stock repurchase and cancellation |
( |
) | ( |
) | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||
Comprehensive income for the year |
— | — | — | — | — | ( |
) | |||||||||||||||||||||||||
Balance, December 31, 2020 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
Cash flows from operating activities |
||||||||||||
Net (loss)/income for the year |
( |
) | ||||||||||
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: |
||||||||||||
Depreciation |
||||||||||||
Amortization of deferred finance charges |
||||||||||||
Amortization of deferred gain on sale and leaseback of vessels |
( |
) | ||||||||||
Amortization of operating lease right-of-use |
— | |||||||||||
Share based compensation |
||||||||||||
Change in fair value of derivatives |
( |
) | ( |
) | ||||||||
Equity earnings in joint ventures |
— | ( |
) | ( |
) | |||||||
Impairment loss |
||||||||||||
Net loss on sale of vessels |
||||||||||||
Gain on deconsolidation of subsidiaries |
— | ( |
) | |||||||||
Changes in operating assets and liabilities: |
||||||||||||
(Increase)/decrease in |
||||||||||||
Trade and other receivables |
( |
) | ||||||||||
Other current assets |
( |
) | ||||||||||
Claims receivable |
( |
) | ||||||||||
Inventories |
( |
) | ( |
) | ||||||||
Changes in operating lease liabilities |
— | ( |
) | ( |
) | |||||||
Advances and prepayments |
( |
) | ||||||||||
Increase/(decrease) in |
||||||||||||
Balances with related parties |
( |
) | ( |
) | ||||||||
Trade accounts payable |
( |
) | ||||||||||
Accrued liabilities |
( |
) | ( |
) | ||||||||
Deferred income |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by operating activities |
||||||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities |
||||||||||||
Insurance proceeds |
||||||||||||
Proceeds from sale of interests in subsidiaries |
— | |||||||||||
Vessels’ acquisitions and advances for vessels under construction |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from sale of vessels, net |
||||||||||||
Investment in joint ventures |
— | ( |
) | ( |
) | |||||||
Return of investments from joint ventures |
— | |||||||||||
Advances to joint ventures |
— | ( |
) | ( |
) | |||||||
Advances from joint ventures |
— | |||||||||||
|
|
|
|
|
|
|||||||
Net cash (used in)/provided by investing activities |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities |
||||||||||||
Stock repurchase |
— | ( |
) | ( |
) | |||||||
Deferred finance charges paid |
( |
) | ( |
) | ( |
) | ||||||
Advances from joint ventures |
— | |||||||||||
Advances to joint ventures |
— | — | ( |
) | ||||||||
Customer deposits paid |
( |
) | ( |
) | ||||||||
Loan repayments |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from long-term debt |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by/(used in) financing activities |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Net increase/(decrease) in cash and cash equivalents |
( |
) | ||||||||||
Cash and cash equivalents and restricted cash at beginning of year |
||||||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents and restricted cash at end of year |
||||||||||||
|
|
|
|
|
|
December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
Cash breakdown |
||||||||||||
Cash and cash equivalents |
||||||||||||
Restricted cash, current |
||||||||||||
Restricted cash, non-current |
||||||||||||
|
|
|
|
|
|
|||||||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows |
||||||||||||
|
|
|
|
|
|
|||||||
Supplemental Cash Flow Information: |
||||||||||||
Cash paid during the year for interest, net of amounts capitalized |
||||||||||||
Non cash investing activity – Vessels, net |
— | — | ||||||||||
Non cash investing activity – Vessels under construction |
||||||||||||
Non cash financing activity – Deferred finance charges |
— | — | ||||||||||
|
|
|
|
|
|
Year ended December 31, |
||||||||||||||
Location in statement of operations |
2018 |
2019 |
2020 |
|||||||||||
Management fees |
Management fees – related party | |||||||||||||
Brokerage commissions |
Voyage expenses – related party | |||||||||||||
Superintendent fees |
Vessels’ operating expenses – related party | |||||||||||||
Crew management fees |
Vessels’ operating expenses – related party | |||||||||||||
Commissions - vessels sold |
Net loss on sale of vessels | |||||||||||||
Commissions - vessels sold |
Impairment loss | — | — | |||||||||||
Executive compensation |
General and administrative expenses | |||||||||||||
Rental expense |
General and administrative expenses |
December 31, |
||||||||||||||
Location in balance sheet |
2018 |
2019 |
2020 |
|||||||||||
Commissions - vessels purchased |
Vessels, net | — | ||||||||||||
Supervision fees |
Vessels, net | — | ||||||||||||
Supervision fees |
Advances for vessel under construction | — | — |
December 31, |
||||||||
2019 |
2020 |
|||||||
Bunkers |
||||||||
Lubricants |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
Balance, December 31, 2018 |
||||
Advance for vessel under construction |
||||
Capitalized interest |
||||
|
|
|||
Balance, December 31, 2019 |
||||
Advance for vessel under construction |
||||
Capitalized interest |
||||
Supervision fees (Note 3) |
||||
Other capitalized expenses |
||||
Balance, December 31, 2020 |
Vessel cost |
Accumulated Depreciation |
Net Book Value |
||||||||||
Balance, December 31, 2018 |
( |
) |
||||||||||
Impairment loss |
( |
) | ( |
) | ||||||||
Disposal |
( |
) | ( |
) | ||||||||
Depreciation for the year |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Balance, December 31, 2019 |
( |
) |
||||||||||
Additions |
— | |||||||||||
Impairment loss |
( |
) | ( |
) | ||||||||
Disposals |
( |
) | ( |
) | ||||||||
Depreciation for the year |
— | ( |
) | ( |
) | |||||||
Balance, December 31, 2020 |
( |
) |
||||||||||
|
|
|
|
|
|
December 31, 2019 |
||||||||||||||||||||
Spacegas Inc. |
Financial Power Inc. |
Cannes View Inc. |
Colorado Oil and Gas Inc |
Frost Investments Corp Inc. |
||||||||||||||||
Current assets |
||||||||||||||||||||
Non-current assets |
||||||||||||||||||||
Current liabilities |
||||||||||||||||||||
Long-term liabilities |
||||||||||||||||||||
Revenues |
||||||||||||||||||||
Operating income/(loss) |
( |
) | ( |
) | ||||||||||||||||
Net income/(loss) |
( |
) | ( |
) |
December 31, 2020 |
||||||||||||||||||||||||
Spacegas Inc. |
Financial Power Inc. |
Cannes View Inc. |
Colorado Oil and Gas Inc |
Frost Investments Corp Inc. |
MGC Aggressive Holdings Inc. |
|||||||||||||||||||
Current assets |
||||||||||||||||||||||||
Non-current assets |
||||||||||||||||||||||||
Current liabilities |
||||||||||||||||||||||||
Long-term liabilities |
||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||
Operating income/(loss) |
( |
) | ( |
) | ||||||||||||||||||||
Net income/(loss) |
( |
) | ( |
) |
December 31, |
||||||||
2019 |
2020 |
|||||||
Interest on long-term debt |
||||||||
Administrative expenses |
||||||||
Vessel operating and voyage expenses |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
(a) | On October 12, 2015 an amount of $ |
(b) | On February 21, 2015 an amount of $ |
Term Loans |
Drawn Amount |
December 31, 2019 |
2020 |
|||||||||||
Issue Date/ Refinancing Date |
Maturity Date | |||||||||||||
December 14, 2018 |
||||||||||||||
May 28, 2019 |
||||||||||||||
August 6, 2019 |
||||||||||||||
July 5, 2019 |
||||||||||||||
March 29, 2019 |
||||||||||||||
August 7, 2019 |
||||||||||||||
December 14, 2018 |
||||||||||||||
June 20, 2014 |
||||||||||||||
August 6, 2019 |
||||||||||||||
December 24, 2015 |
||||||||||||||
July 4, 2014 |
||||||||||||||
July 29, 2014 |
||||||||||||||
December 7, 2017 |
||||||||||||||
May 18, 2016 |
||||||||||||||
March 1, 2017 |
||||||||||||||
June 17, 2020 |
||||||||||||||
April 30, 2020 |
||||||||||||||
|
|
|
|
|||||||||||
Total |
||||||||||||||
Current portion of long-term debt |
||||||||||||||
Long-term debt |
||||||||||||||
|
|
|
|
|||||||||||
Total debt |
||||||||||||||
Current portion of deferred finance charges |
||||||||||||||
Deferred finance charges non-current |
||||||||||||||
|
|
|
|
|||||||||||
Total deferred finance charges |
||||||||||||||
|
|
|
|
|||||||||||
Total debt |
||||||||||||||
Less: Total deferred finance charges |
||||||||||||||
|
|
|
|
|||||||||||
Total debt, net of deferred finance charges |
|
|||||||||||||
Less: Current portion of long-term debt, net of current portion of deferred finance charges |
||||||||||||||
|
|
|
|
|||||||||||
|
|
|
|
• | the aggregate market value of the mortgaged vessels at all times exceeds a certain percentage of the amounts outstanding as defined in the term loans, ranging from |
• | the leverage of the Company defined as Total Debt net of Cash should not exceed |
• | the Interest Coverage Ratio of the Company which is EBITDA (as defined in the loan agreements) to interest expense to be at all times greater than |
• | at least a certain percentage of the Company is to always be owned by members of the Vafias family, |
• | the Company should maintain on a monthly basis a cash balance amounting to $ |
• | dividends paid by the borrower will not exceed |
December 31, |
Amount |
|||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
|
|
|||
Total |
||||
|
|
Effective Date |
Termination Date |
Fixed Rate (Company pays) |
Floating Rate (Company Receives) |
Fair Value Asset/ (Liability) December 31, 2019 |
Notional Amount December 31, 2019 |
Fair Value Asset/ (Liability) December 31, 2020 |
Notional Amount December 31, 2020 |
|||||||||||||||||||
Swap 1 |
% | $ | ( |
) | $ | — |
— | |||||||||||||||||||
Swap 2 |
% | $ | $ | — |
— | |||||||||||||||||||||
Swap 3 |
% | $ | $ | — |
— | |||||||||||||||||||||
Swap 4 |
% | $ | $ | $ | ( |
) | $ | |||||||||||||||||||
Swap 5 |
% | $ | $ | $ | ( |
) | $ | |||||||||||||||||||
Swap 6 |
% | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Swap 7 |
% | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Swap 8 |
% | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Swap 9 |
% | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Total |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
Derivatives designated as hedging instruments |
Balance Sheet Location |
December 31, |
||||||||||||||||
2019 |
2020 |
|||||||||||||||||
Asset Derivatives |
Liability Derivatives |
Asset Derivatives |
Liability Derivatives |
|||||||||||||||
Interest Rate Swap Agreements |
Non current assets — Fair value of derivatives |
— |
— |
— |
||||||||||||||
Interest Rate Swap Agreements |
Current liabilities — Fair value of derivatives |
— |
— |
— |
||||||||||||||
Interest Rate Swap Agreements |
Non current liabilities — Fair value of derivatives |
— |
— |
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total derivatives designated as hedging instruments |
— |
|||||||||||||||||
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments |
Balance Sheet Location |
December 31, |
||||||||||||||||
2019 |
2020 |
|||||||||||||||||
Asset Derivatives |
Liability Derivatives |
Asset Derivatives |
Liability Derivatives |
|||||||||||||||
Interest Rate Swap Agreements |
Current assets — Fair value of derivatives | — | — | — | ||||||||||||||
Interest Rate Swap Agreements |
Current liabilities — Fair value of derivatives | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total derivatives not designated as hedging instruments |
— | — | ||||||||||||||||
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments |
Location of Gain/(Loss) Recognized |
Year Ended December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||||
Interest Rate Swap — Reclassification from OCI |
Loss on derivatives | — | ||||||||||||
Interest Rate Swap — Change in Fair Value |
Loss on derivatives | — | ( |
) | ||||||||||
Interest Rate Swap — Realized income/(expense) |
Loss on derivatives | — | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||
Total loss on derivatives |
— | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
Derivatives designated as hedging instruments |
Location of (Loss)/Gain Recognized |
Year Ended December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||||
Interest Rate Swap — Loss reclassified from OCI (Effective portion) |
Loss on derivatives |
( |
) |
— |
— |
|||||||||
Interest Rate Swap — Income/(Loss) reclassified from OCI (Effective portion) |
Interest and finance costs |
— |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||||
Total loss on derivatives |
( |
) |
( |
) | ||||||||||
|
|
|
|
|
|
Unrealized Gain / (Loss) on cash flow hedges |
||||
Balance, January 1, 2018 |
||||
Effective portion of changes in fair value of interest swap contracts |
||||
|
|
|||
Balance, December 31, 2018 |
||||
Effective portion of changes in fair value of interest swap contracts |
( |
) | ||
Reclassification adjustment |
( |
) | ||
|
|
|||
Balance, December 31, 2019 |
( |
) | ||
Effective portion of changes in fair value of interest swap contracts |
( |
) | ||
Reclassification adjustment |
( |
) | ||
|
|
|||
Balance, December 31, 2020 |
( |
) | ||
|
|
Fair Value as of December 31, 2019 |
Fair Value Measurements Using |
|||||||||||||||
Description |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
Assets/(Liabilities): |
||||||||||||||||
Interest Rate Swap Agreements |
— | — | ||||||||||||||
Interest Rate Swap Agreements |
( |
) | — | ( |
) | — | ||||||||||
Total |
( |
) |
— |
( |
) |
— |
||||||||||
Fair Value as of December 31, 2020 |
Fair Value Measurements Using |
|||||||||||||||
Description |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
Assets/(Liabilities): |
||||||||||||||||
Interest Rate Swap Agreements |
( |
) | — | ( |
) | — | ||||||||||
Total |
( |
) |
— |
( |
) |
— |
Fair Value as of December 31, 2019 |
Fair Value Measurements Using |
|||||||||||||||||||
Description |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Impairment Loss |
||||||||||||||||
Long-lived assets held and used |
— | — | ( |
) | ||||||||||||||||
Total |
— |
— |
( |
Fair Value as of June 30, 2020 |
Fair Value Measurements Using |
|||||||||||||||||||
Description |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Impairment Loss |
||||||||||||||||
Long-lived assets held and used |
— | — | ( |
) | ||||||||||||||||
Total |
— |
— |
( |
Fair Value as of December 31, 2020 |
Fair Value Measurements Using |
|||||||||||||||||||
Description |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Impairment Loss |
||||||||||||||||
Long-lived assets held and used |
— | — | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
— |
— |
( |
Year Ended December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
Numerator |
||||||||||||
Net (loss)/income |
( |
) | ||||||||||
Less: Undistributed earnings allocated to non-vested shares |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net (loss)/income attributable to common shareholders, basic |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Denominator |
||||||||||||
|
|
|
|
|
|
|||||||
Weighted average number of shares outstanding, basic and diluted |
||||||||||||
|
|
|
|
|
|
|||||||
(Loss)/earnings per share, basic and diluted |
( |
) | ||||||||||
|
|
|
|
|
|
Year ended December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
Time charter revenues |
||||||||||||
Bareboat revenues |
||||||||||||
Voyage charter revenues |
||||||||||||
Other income |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
Year ended December 31, |
||||||||||||
Vessels’ Operating Expenses |
2018 |
2019 |
2020 |
|||||||||
Crew wages and related costs |
||||||||||||
Insurance |
||||||||||||
Repairs and maintenance |
||||||||||||
Spares and consumable stores |
||||||||||||
Miscellaneous expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
• | From time to time the Company expects to be subject to legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. During 2020, our Aframax tanker “Stealth Berana” was arrested in relation to claims of the charterers of the vessel for alleged losses in connection with the redelivery of the vessel to the Company. The Company commenced arbitration in accordance with the provisions of the charter party agreement in respect of all disputes arising under the charter party agreement, including the claims of the charterers. The Company in order to release the vessel promptly from arrest, provided security for the claims of the charterers by way of a payment of $ non-current restricted cash in the consolidated balance sheet. The Company is unable to predict the outcome of this case and its ultimate impact on the Company’s financial position, results of operations or liquidity. Hence the Company has not established any provision for losses relating to this case. |
• |
The Company has guaranteed to the respective banks the performance of the loan agreements entered into by Spacegas Inc., Financial Power Inc. and MGC Aggressive Holdings Inc. (Note 7). The vessels owned by these entities have been provided as collateral to secure these loan agreements. Total |
outstanding loan balances and accrued interest of Spacegas Inc., Financial Power Inc. and MGC Aggressive Holdings Inc. as of December 31, 2020 amounted to $The Company assigns a remote possibility of default to the abovementioned loan agreements and hence has not established any provisions for losses relating to this matter. With regards to the guarantee provided for the loan agreement entered into by MGC Aggressive Holdings Inc., the joint venture party owning |
|
• | Future minimum contractual charter revenues, gross of commissions, based on vessels committed to non-cancellable, time and bareboat charter contracts as of December 31, 2020 , amount to $2021 , $2022 , $during 2023 and $ |
• | The Company had future outstanding commitments for installment payments for vessel Eco Blizzard (Note 5) as follows: |
December 31 |
Amount |
|||
2021 |
||||
Total |
||||
|
|
Description |
Location in balance sheet |
December 31, 2019 |
December 31, 2020 |
|||||||
Non current assets: |
||||||||||
Chartered-in contract greater than 12 months |
Operating lease right-of-use |
$ | $ | — | ||||||
Office leases |
Operating lease right-of-use |
— | ||||||||
|
|
|
|
|||||||
$ | $ | — | ||||||||
|
|
|
|
|||||||
Liabilities: |
||||||||||
Chartered-in contract greater than 12 months |
Current portion of operating lease liabilities | $ | $ | — | ||||||
Office leases |
Current portion of operating lease liabilities | — | ||||||||
|
|
|
|
|||||||
Lease liabilities - current portion |
$ | $ | — | |||||||
|
|
|
|
Description |
Location in statement of operations |
2019 |
2020 |
|||||||
Lease expense for chartered-in contracts 12 months or less |
Charter hire expenses | $ | — | |||||||
Lease expense for chartered-in contracts greater than 12 months |
Charter hire expenses | |||||||||
|
|
|
|
|||||||
Total charter hire expenses | ||||||||||
|
|
|
|
|||||||
Lease expense for office leases |
General and administrative expenses | |||||||||
Sub lease income from chartered-in contracts greater than 12 months * |
Revenues |
* | The sub-lease income represents only time charter revenue earned on the chartered-in contracts greater than 12 months. There is additional revenue of $chartered-in contract which is recorded in Revenues in our consolidated statement of operations for the year ended December 31, 2019 (2020: chartered-in contracts 12 months or less which is included in Revenues in our consolidated statements of operations for the year ended December 31, 2019. No such contracts existed for the year ended December 31, 2020. |
Year |
Chartered-in contracts greater than 12 months |
Office leases |
Total Operating leases |
|||||||||
Discount rate upon adoption |
% | % | % | |||||||||
2020 (undiscounted lease payments) |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Present value of lease liability |
||||||||||||
Lease liabilities - short term |
||||||||||||
|
|
|
|
|
|
|||||||
Total lease liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Discount based on incremental borrowing rate (Difference between undiscounted lease payments and present value of lease liability) |
$ | $ | $ |
21. |
Subsequent Events |
Exhibit 2.1
DESCRIPTION OF STEALTHGAS INC.S SECURITIES
REGISTERED PURSUANT TO SECTION 12
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
References in this description to the Company, we, our, or us are to StealthGas Inc. Defined terms used but not defined herein have the meaning given to them in our Annual Report on Form 20-F to which this description is an exhibit.
The common stock of StealthGas Inc., par value $0.01 per share (the Common Stock) is the only security of the Company registered under Section 12 of the Securities Exchange Act of 1934, as amended. None of the Companys preferred stock, par value $0.01 per share (the Preferred Stock) is so registered. This description does not describe every aspect of the Companys capital stock and is subject to, and qualified in its entirety by reference to, the provisions of the Companys Amended and Restated Articles of Incorporation and the Companys Amended and Restated By-laws, each as currently in effect, each of which is incorporated by reference as an exhibit to the Annual Report on Form 20-F of the Company, to which this description is filed as Exhibit 2.1.
Share Capital
Under our articles of incorporation, our authorized capital stock consists of 5,000,000 shares of preferred stock, $0.01 par value per share, none of which is issued or outstanding and 100,000,000 shares of common stock, $0.01 par value per share, of which 43,183,684 shares were issued, including 5,325,247 shares repurchased by the Company and held as treasury stock, and 37,858,437 shares outstanding and fully paid as of December 31, 2020 and April 1, 2021. All of our shares of stock are in registered form. In 2020, we repurchased 1,725,837 shares of common stock, including 1,366,045 shares in April 2020 through a tender offer which were cancelled.
Common Stock
Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders. Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders of shares of common stock are entitled to receive ratably all dividends, if any, declared by our Board of Directors out of funds legally available for dividends. Holders of common stock do not have conversion, redemption or preemptive rights to subscribe to any of our securities. All outstanding shares of common stock are, and the shares to be sold in this offering when issued and paid for will be, fully paid and non-assessable. The rights, preferences and privileges of holders of common stock are subject to the rights of the holders of any shares of preferred stock which we may issue in the future.
Blank Check Preferred Stock
Under the terms of our articles of incorporation, our Board of Directors has authority, without any further vote or action by our stockholders, to issue up to 5,000,000 shares of blank check preferred stock. Our Board of Directors could issue shares of preferred stock on terms calculated to discourage, delay or prevent a change of control of our company or the removal of our management.
Dividends
We have not paid a dividend since March 2009. In the first quarter of 2009, our Board of Directors determined to suspend the payment of cash dividends as a result of weak market conditions in the international shipping industry and to preserve the Companys liquid cash resources. Our board of directors will evaluate our dividend policy consistent with our cash flows and liquidity requirements.
Declaration and payment of any dividend is subject to the discretion of our Board of Directors. The timing and amount of dividend payments will be dependent upon our earnings, financial condition, cash requirements and availability, restrictions in our loan agreements, or other financing arrangements, the provisions of Marshall Islands law affecting the payment of distributions to stockholders and other factors. Because we are a holding company with no material assets other than the stock of our subsidiaries, our ability to pay dividends will depend on the earnings and cash flow of our subsidiaries and their ability to pay dividends to us. Marshall Islands law generally prohibits the payment of dividends other than from surplus or while a company is insolvent or would be rendered insolvent upon the payment thereof.
Under the terms of our existing credit facilities, we are generally permitted to declare or pay cash dividends in any twelve- month period as long as the amount of the dividends and share repurchases do not exceed 50% of the Companys free cash flow (as defined in our credit agreements) and provided we are not in default under the other covenants contained in these credit facilities. See Item 3. Key InformationRisk FactorsRisks Related To Our Common StockWe may not pay dividends on our common stock.
Articles of Incorporation and Bylaws
Our purpose is to engage in any lawful act or activity for which corporations may now or hereafter be organized under the Marshall Islands Business Corporations Act, or BCA. Our articles of incorporation and bylaws do not impose any limitations on the ownership rights of our stockholders.
Under our bylaws, annual stockholder meetings will be held at a time and place selected by our Board of Directors. The meetings may be held in or outside of the Marshall Islands. Special meetings may be called by the Board of Directors. Our Board of Directors may set a record date between 15 and 60 days before the date of any meeting to determine the stockholders that will be eligible to receive notice and vote at the meeting.
Directors. Our directors are elected by a plurality of the votes cast at a meeting of the stockholders by the holders of shares entitled to vote in the election. There is no provision for cumulative voting.
The Board of Directors may change the number of directors by a vote of a majority of the entire board. Each director shall be elected to serve until his successor shall have been duly elected and qualified, except in the event of his death, resignation, removal, or the earlier termination of his term of office. The Board of Directors has the authority to fix the amounts which shall be payable to the members of our Board of Directors for attendance at any meeting or for services rendered to us.
Dissenters Rights of Appraisal and Payment. Under the BCA, our stockholders have the right to dissent from various corporate actions, including any merger or sale of all or substantially all of our assets not made in the usual course of our business, and receive payment of the fair value of their shares. However, the right of a dissenting stockholder under the BCA to receive payment of the fair value of his shares is not available for the shares of any class or series of stock, which shares or depository receipts in respect thereof, at the record date fixed to determine the stockholders entitled to receive notice of and to vote at the meeting of the stockholders to act upon the agreement of merger or consolidation, were either (i) listed on a securities exchange or admitted for trading on an interdealer quotation system or (ii) held of record by more than 2,000 holders. The right of a dissenting stockholder to receive payment of the fair value of his or her shares shall not be available for any shares of stock of the constituent corporation surviving a merger if the merger did not require for its approval the vote of the stockholders of the surviving corporation. In the event of any further amendment of our articles of incorporation, a stockholder also has the right to dissent and receive payment for his or her shares if the amendment alters certain rights in respect of those shares. The dissenting stockholder must follow the procedures set forth in the BCA to receive payment. In the event that we and any dissenting stockholder fail to agree on a price for the shares, the BCA procedures involve, among other things, the institution of proceedings in the circuit court in the judicial circuit in the Marshall Islands in which our Marshall Islands office is situated. The value of the shares of the dissenting stockholder is fixed by the court after reference, if the court so elects, to the recommendations of a court-appointed appraiser.
Stockholders Derivative Actions. Under the BCA, any of our stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of common stock both at the time the derivative action is commenced and at the time of the transaction to which the action relates.
Anti-takeover Provisions of our Charter Documents. Several provisions of our articles of incorporation and bylaws may have anti-takeover effects. These provisions are intended to avoid costly takeover battles, lessen our vulnerability to a hostile change of control and enhance the ability of our Board of Directors to maximize stockholder value in connection with any unsolicited offer to acquire us. However, these anti-takeover provisions, which are summarized below, could also discourage, delay or prevent (1) the merger or acquisition of our company by means of a tender offer, a proxy contest or otherwise, that a stockholder may consider in its best interest and (2) the removal of incumbent officers and directors.
Blank Check Preferred Stock. Under the terms of our articles of incorporation, our Board of Directors has authority, without any further vote or action by our stockholders, to issue up to 5,000,000 shares of blank check preferred stock. Our Board of Directors may issue shares of preferred stock on terms calculated to discourage, delay or prevent a change of control of our company or the removal of our management.
Classified Board of Directors. Our articles of incorporation provide for a Board of Directors serving staggered, three-year terms. Approximately one-third of our Board of Directors will be elected each year. This classified board provision could discourage a third party from making a tender offer for our shares or attempting to obtain control of our company. It could also delay stockholders who do not agree with the policies of the Board of Directors from removing a majority of the Board of Directors for two years.
Election and Removal of Directors. Our articles of incorporation and bylaws prohibit cumulative voting in the election of directors. Our bylaws require parties other than the Board of Directors to give advance written notice of nominations for the election of directors. Our bylaws also provide that our directors may be removed only for cause and only upon the affirmative vote of the holders of at least 80% of the outstanding shares of our capital stock entitled to vote for those directors. These provisions may discourage, delay or prevent the removal of incumbent officers and directors.
Calling of Special Meetings of Stockholders. Our bylaws provide that special meetings of our stockholders may be called only by resolution of our Board of Directors.
Advance Notice Requirements for Stockholder Proposals and Director Nominations. Our bylaws provide that stockholders seeking to nominate candidates for election as directors or to bring business before an annual meeting of stockholders must provide timely notice of their proposal in writing to the corporate secretary.
Generally, to be timely, a stockholders notice must be received at our principal executive offices not less than 90 days or more than 120 days prior to the first anniversary date of the previous years annual meeting. If, however, the date of our annual meeting is more than 30 days before or 60 days after the first anniversary date of the previous years annual meeting, a stockholders notice must be received at our principal executive offices by the later of (i) the close of business on the 90th day prior to the annual meeting date or (ii) the close of business on the tenth day following the date on which such annual meeting date is first publicly announced or disclosed by us. Our bylaws also specify requirements as to the form and content of a stockholders notice. These provisions may impede stockholders ability to bring matters before an annual meeting of stockholders or make nominations for directors at an annual meeting of stockholders.
Business Combinations. Our articles of incorporation prohibit us from engaging in a business combination with certain persons for three years following the date the person becomes an interested stockholder. Interested stockholders generally include:
| persons who are the beneficial owners of 15% or more of the outstanding voting stock of the corporation; and |
| persons who are affiliates or associates of the corporation and who hold 15% or more of the corporations outstanding voting stock at any time within three years before the date on which the persons status as an interested stockholder is determined. |
Subject to certain exceptions, a business combination includes, among other things:
| certain mergers or consolidations of the corporation or any direct or indirect majority-owned subsidiary of the company; |
| the sale, lease, exchange, mortgage, pledge, transfer or other disposition of assets having an aggregate market value equal to 10% or more of either the aggregate market value of all assets of the corporation, determined on a consolidated basis, or the aggregate value of all the outstanding stock of the corporation; |
| certain transactions that result in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; |
| any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series, or securities convertible into the stock of any class or series, of the corporation that is owned directly or indirectly by the interested stockholder; and |
| any receipt by the interested stockholder of the benefit (except as a stockholder) of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation. |
These provisions of our articles of incorporation do not apply to a business combination if:
| before a person becomes an interested stockholder, the board of directors of the corporation approves the business combination or transaction in which the stockholder became an interested stockholder; |
| upon consummation of the transaction that resulted in the interested stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, other than certain excluded shares; |
| following a transaction in which the person became an interested stockholder, the business combination is (a) approved by the board of directors of the corporation and (b) authorized at a regular or special meeting of stockholders, and not by written consent, by the vote of the holders of at least two-thirds of the voting stock of the corporation not owned by the stockholder; or |
| a transaction with a stockholder that was or became an interested stockholder prior to the consummation of our initial public offering. |
Registrar and Transfer Agent
The registrar and transfer agent for our common stock is American Stock Transfer & Trust Company.
Exhibit 8
Subsidiaries
Company |
Country of Incorporation | |
ARABIAN OIL SERVICES INC. | Marshall Islands | |
AMMONIA INTERNATIONAL TRADING INC. | Marshall Islands | |
AURORA INVESTMENTS INC. | Marshall Islands | |
BAHLA BEAUTY INC. | Marshall Islands | |
BARONESS HOLDINGS INC. | Marshall Islands | |
CANNES VIEW INC.* | Marshall Islands | |
CALABASAS INDUSTRIES INC. | Marshall Islands | |
CALIFORNIA GASES INC. | Marshall Islands | |
CARINTHIA INC. | Liberia | |
CHIOS LEGACY INC. | Marshall Islands | |
CLEAN POWER INC. | Liberia | |
CELCIUS TECHNOLOGIES INC.** | Liberia | |
COLORADO OIL AND GAS INC.* | Marshall Islands | |
DAYTONA INDUSTRIES INC. | Marshall Islands | |
EAST PROPANE INC. | Marshall Islands | |
EASTERN EXPLORATION INC. | Marshall Islands | |
ECOBUTANE INC. | Marshall Islands | |
ECOGAS TRADING INC. | Marshall Islands | |
ECOPROPANE INC. | Marshall Islands | |
ECOVCM INC. | Marshall Islands | |
EMPIRE SPIRIT LTD. | Marshall Islands | |
ENERGETIC PENINSULA LIMITED | Liberia | |
EVOLUTION CRUDE INC. | Marshall Islands | |
FINANCIAL POWER INC.* | Marshall Islands | |
GOLDEN SHADOW INC. | Marshall Islands | |
INTERNATIONAL GASES INC. | Liberia | |
JAPANESE LEASING SCHEMES INC. | Marshall Islands | |
K INVESTMENTS INC. | Marshall Islands |
KAIZEN INDUSTRIES INC. | Marshall Islands | |
KING OF HEARTS INC. | Liberia | |
LUCKYBOY INC. | Marshall Islands | |
MANAMA PRIDE INC. | Marshall Islands | |
MATRIX GAS TRADING LTD. | Marshall Islands | |
MR. ROI INC. | Marshall Islands | |
NORTHERN CAPITAL HOLDING INC. | Liberia | |
OCTOPUS GAS INC. | Liberia | |
OXFORDGAS LTD. | Liberia | |
POWERPLANNING INTERNATIONAL INC. | Marshall Islands | |
PELORUS INC. | Liberia | |
PETCHEM TRADING INC. | Marshall Islands | |
RADIANT ENTERPRISES INC. | Marshall Islands | |
REVOLUTION INC. | Marshall Islands | |
RISING SUN INC. | Liberia | |
SANTA BARBARA INC. | Marshall Islands | |
SANTA MONICA INC. | Marshall Islands | |
SENIOR INVESTMENTS INC. | Marshall Islands | |
SIKOUSIS LEGACY INC. | Marshall Islands | |
SOLEIL TRUST INC. | Liberia | |
SOUND EFFEX INC. | Marshall Islands | |
SPACEGAS INC.* | Marshall Islands | |
STEALTHGAS INC. | Marshall Islands | |
STEAM POWER INC. | Marshall Islands | |
TANKPUNK, INC. | Marshall Islands | |
TATOOSH BEAUTY INC. | Liberia | |
WOLVERINES INC. | Marshall Islands | |
UNIVERSAL GAS SUPPLIES INC. | Marshall Islands | |
FROST INVESTMENTS CORP INC*. | Marshall Islands | |
MGC AGGRESSIVE HOLDINGS INC**. | Marshall Islands | |
SUB ZERO INC.** | Liberia | |
ALASKAN GASES INC.** | Liberia |
* | In the first quarter of 2019, we sold a 49.9% equity interest in this entity and ceased to fully consolidate its results in our consolidated financial statements. These entities are now consolidated under the equity method. |
** | In the first quarter of 2020, we acquired a 51.0% equity interest in this entity, which are consolidated in our financial statements under the equity method. |
Exhibit 12.1
CERTIFICATIONS
I, Harry N. Vafias, certify that:
1. | I have reviewed this annual report on Form 20-F of StealthGas Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report; |
4. | The Companys other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have; |
a.) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b.) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c.) | evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d.) | disclosed in this report any change in the Companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting; and |
5. | The Companys other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Companys auditors and the audit committee of the Companys board of directors (or persons performing the equivalent function): |
a.) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Companys ability to record, process, summarize and report financial information; and |
b.) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
Date: April 27, 2021
/s/ Harry N. Vafias |
Harry N. Vafias |
President and Chief Executive Officer |
Exhibit 12.2
CERTIFICATIONS
I, Harry N. Vafias, certify that:
1. | I have reviewed this annual report on Form 20-F of StealthGas Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report; |
4. | The Companys other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have; |
a.) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b.) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c.) | evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d.) | disclosed in this report any change in the Companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting; and |
5. | The Companys other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Companys auditors and the audit committee of the Companys board of directors (or persons performing the equivalent function): |
a.) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Companys ability to record, process, summarize and report financial information; and |
b.) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
Date: April 27, 2021
/s/ Harry N. Vafias |
Harry N. Vafias |
Chief Financial Officer |
Exhibit 13.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report on Form 20-F of StealthGas Inc. (the Company) for the fiscal year ended December 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned officer of the Company hereby certifies to the undersigneds knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: April 27, 2021
/s/ Harry N. Vafias |
Harry N. Vafias |
President and Chief Executive Officer |
Exhibit 13.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report on Form 20-F of StealthGas Inc. (the Company) for the fiscal year ended December 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned officer of the Company hereby certifies to the undersigneds knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date April 27, 2021
/s/ Harry N. Vafias |
Harry N. Vafias |
Chief Financial Officer |
Exhibit 15.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement No. 333-143804 on Form F-3 and Registration Statement Nos. 333-144240 and 333-207168 on Form S-8 of our reports dated April 27, 2021, relating to the consolidated financial statements of StealthGas Inc. and subsidiaries (the Company), and the effectiveness of the Companys internal control over financial reporting, appearing in this Annual Report on Form 20-F for the year ended December 31, 2020.
/s/ Deloitte Certified Public Accountants S.A
Athens, Greece
April 27, 2021
Exhibit 15.2
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in Registration Statement No. 333-143804 on Form F-3 and Nos. 333-144240 and 333-207168 on Form S-8 of StealthGas Inc. of our report dated April 27, 2021, relating to the financial statements of Spacegas Inc., appearing in this Annual Report on Form 20-F for the year ended December 31, 2020.
/s/ Deloitte Certified Public Accountants S.A. |
Athens, Greece |
April 27, 2021 |
Exhibit 15.3
Spacegas Inc.
Financial statements
Index to financial statements
Page | ||||
Independent Auditors Report |
F-2 | |||
Balance Sheet as of December 31, 2019 and 2020 |
F-3 | |||
Statement of Comprehensive Income for the Period from February 1, 2019 (Transaction Date) to December 31, 2019 and for the year ended December 31, 2020 |
F-4 | |||
Statement of Stockholders Equity for the period from February 1, 2019 (Transaction Date) to December 31, 2019 and for the year ended December 31, 2020 |
F-5 | |||
Statement of Cash Flows for the period from February 1, 2019 (Transaction Date) to December 31, 2019 and for the year ended December 31, 2020 |
F-6 | |||
Notes to the Financial Statements |
F-7 |
F-1
Independent Auditors Report
To the Board of Directors and Stockholders of
Spacegas Inc.
We have audited the accompanying financial statements of Spacegas Inc. (the Company), which comprise the balance sheets as of December 31, 2019 and 2020, and the related statements of comprehensive income, stockholders equity, and cash flows for the period from February 1, 2019 (Transaction Date) to December 31, 2019 and for the year ended December 31, 2020, and the related notes to the financial statements.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2020, and the results of its operations and its cash flows for the period from February 1, 2019 (Transaction Date) to December 31, 2019 and for the year ended December 31, 2020, in accordance with accounting principles generally accepted in the United States of America.
/s/ Deloitte Certified Public Accountants S.A.
April 27, 2021
Athens, Greece
F-2
Spacegas Inc.
Balance sheet
As of December 31, 2019 and 2020
(Expressed in United States Dollars, Except for Share Data)
2019 | 2020 | |||||||||||||
Assets |
||||||||||||||
Current assets |
||||||||||||||
Cash and cash equivalents |
711,674 | 1,246,489 | ||||||||||||
Restricted cash |
77,673 | 67,701 | ||||||||||||
Trade and other receivables |
124,664 | 384,345 | ||||||||||||
Due from related party |
(Note 3) | 1,114,738 | 369,851 | |||||||||||
Advances and prepayments |
13,671 | 23,228 | ||||||||||||
Inventories |
(Note 4) | 195,224 | 71,870 | |||||||||||
|
|
|
|
|||||||||||
Total current assets |
2,237,644 | 2,163,484 | ||||||||||||
|
|
|
|
|||||||||||
Non current assets |
||||||||||||||
Vessel, net |
(Note 5) | 13,221,364 | 12,559,048 | |||||||||||
|
|
|
|
|||||||||||
Total non current assets |
13,221,364 | 12,559,048 | ||||||||||||
|
|
|
|
|||||||||||
Total assets |
15,459,008 | 14,722,532 | ||||||||||||
|
|
|
|
|||||||||||
Liabilities and stockholders equity |
||||||||||||||
Current liabilities |
||||||||||||||
Trade accounts payable |
250,583 | 98,642 | ||||||||||||
Payable to related parties |
(Note 3) | 439,723 | 268,784 | |||||||||||
Current portion of long-term debt |
(Note 7) | 674,482 | 675,740 | |||||||||||
Accrued liabilities |
(Note 6) | 61,340 | 75,610 | |||||||||||
|
|
|
|
|||||||||||
Total current liabilities |
1,426,128 | 1,118,776 | ||||||||||||
|
|
|
|
|||||||||||
Non current liabilities |
||||||||||||||
Long-term debt |
(Note 7) | 5,530,995 | 4,855,255 | |||||||||||
|
|
|
|
|||||||||||
Total non current liabilities |
5,530,995 | 4,855,255 | ||||||||||||
|
|
|
|
|||||||||||
Total liabilities |
6,957,123 | 5,974,031 | ||||||||||||
|
|
|
|
|||||||||||
Commitments and contingencies |
(Note 13) | |||||||||||||
Stockholders equity: |
||||||||||||||
Capital stock 0.0001 par value; 7,647,000 issued and outstanding |
(Note 9) | 765 | 765 | |||||||||||
Additional paid-in capital |
(Note 9) | 7,646,235 | 7,646,235 | |||||||||||
Retained earnings |
854,885 | 1,101,501 | ||||||||||||
|
|
|
|
|||||||||||
Total stockholders equity |
8,501,885 | 8,748,501 | ||||||||||||
|
|
|
|
|||||||||||
Total liabilities and stockholders equity |
15,459,008 | 14,722,532 | ||||||||||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
F-3
Spacegas Inc.
Statement of comprehensive income
For the period from February 1, 2019 (Transaction Date) to December 31, 2019 and for the year ended December 31, 2020
(Expressed in United States dollars)
2019 | 2020 | |||||||||||||
Revenues |
||||||||||||||
Revenues |
(Note 10) | 3,362,478 | 3,222,037 | |||||||||||
|
|
|
|
|||||||||||
Total revenues |
3,362,478 | 3,222,037 | ||||||||||||
|
|
|
|
|||||||||||
Expenses |
||||||||||||||
Voyage expenses |
11,091 | 594,952 | ||||||||||||
Voyage expenses-related party |
(Notes 3) | 42,031 | 40,275 | |||||||||||
Vessel operating expenses |
(Note 11) | 1,409,047 | 1,306,031 | |||||||||||
Depreciation |
(Note 4) | 600,636 | 662,316 | |||||||||||
Management fees |
(Note 3) | 146,960 | 161,040 | |||||||||||
General and administrative expenses |
30,246 | 5,528 | ||||||||||||
|
|
|
|
|||||||||||
Total expenses |
2,240,011 | 2,770,142 | ||||||||||||
|
|
|
|
|||||||||||
Income from operations |
1,122,467 | 451,895 | ||||||||||||
Other (expenses)/income |
||||||||||||||
Interest and finance costs |
(266,586 | ) | (203,371 | ) | ||||||||||
Interest income and other income |
610 | 475 | ||||||||||||
Foreign exchange loss |
(1,606 | ) | (2,383 | ) | ||||||||||
|
|
|
|
|||||||||||
Other expenses, net |
(267,582 | ) | (205,279 | ) | ||||||||||
|
|
|
|
|||||||||||
Net income |
854,885 | 246,616 | ||||||||||||
|
|
|
|
|||||||||||
Other comprehensive income |
| | ||||||||||||
|
|
|
|
|||||||||||
Total comprehensive income |
854,885 | 246,616 | ||||||||||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
F-4
Spacegas Inc.
Statements of stockholders equity
For the period from February 1, 2019 (Transaction Date) to December 31, 2019 and for the year ended December 31, 2020
(Expressed in United States Dollars, Except for Number of Shares)
Number of common shares |
Common stock par value (Note 9) |
Additional paid in capital (Note 9) |
Retained earnings |
Total stockholders equity |
||||||||||||||||
Balance, February 1, 2019 (Transaction Date) |
6,897,000 | 690 | 6,896,310 | | 6,897,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Issuance of share capital (Note 9) |
750,000 | 75 | 749,925 | | 750,000 | |||||||||||||||
Net income |
| | | 854,885 | 854,885 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2019 |
7,647,000 | 765 | 7,646,235 | 854,885 | 8,501,885 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
| | | 246,616 | 246,616 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2020 |
7,647,000 | 765 | 7,646,235 | 1,101,501 | 8,748,501 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
F-5
Spacegas Inc.
Statements of cash flows
For the period from February 1, 2019 (Transaction Date) to December 31, 2019 and for the year ended December 31, 2020
(Expressed in United States Dollars)
2019 | 2020 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
854,885 | 246,616 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation |
600,636 | 662,316 | ||||||
Amortization of deferred finance charges |
18,137 | 10,518 | ||||||
Changes in operating assets and liabilities: (Increase)/decrease in |
||||||||
Trade and other receivables |
(124,664 | ) | (259,681 | ) | ||||
Advances and prepayments |
(13,671 | ) | (9,557 | ) | ||||
Inventories |
(195,224 | ) | 123,354 | |||||
Increase/(Decrease) in |
||||||||
Trade accounts payable |
250,583 | (151,941 | ) | |||||
Balances with related parties |
439,723 | (170,939 | ) | |||||
Accrued liabilities |
61,340 | 14,270 | ||||||
|
|
|
|
|||||
Net cash provided by operating activities |
1,891,745 | 464,956 | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Cash to joint venture party |
(1,114,738 | ) | | |||||
Cash from joint venture party |
| 744,887 | ||||||
|
|
|
|
|||||
Net cash (used in)/provided by investing activities |
(1,114,738 | ) | 744,887 | |||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Issuance of capital |
750,000 | | ||||||
Deferred finance charges paid |
(52,660 | ) | | |||||
Loan repayments |
(685,000 | ) | (685,000 | ) | ||||
|
|
|
|
|||||
Net cash provided by/(used in) financing activities |
12,340 | (685,000 | ) | |||||
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash |
789,347 | 524,843 | ||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at beginning of period |
| 789,347 | ||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at end of period |
789,347 | 1,314,190 | ||||||
|
|
|
|
|||||
Cash breakdown |
||||||||
Cash and cash equivalents |
711,674 | 1,246,489 | ||||||
Restricted cash, current |
77,673 | 67,701 | ||||||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows |
789,347 | 1,314,190 | ||||||
|
|
|
|
|||||
Supplemental cash flow information |
||||||||
Interest paid |
199,076 | 207,678 |
The accompanying notes are an integral part of these financial statements.
F-6
Spacegas Inc.
Notes to the financial statements
1. | Basis of Presentation and General Information |
Spacegas Inc. (the Company) as of December 31, 2020 owned one liquefied petroleum gas (LPG) carrier, Gas Defiance, built on July 30, 2008, which provides worldwide marine transportation services under time or voyage charters. Spacegas Inc. was formed under the laws of the Marshall Islands on March 5, 2008. For the period from its incorporation to February 1, 2019, the Company was fully owned by StealthGas Inc. On February 1, 2019 (the Transaction Date), StealthGas Inc. (the joint venture party) entered into a Shareholder Agreement with MAAS GAS BV pursuant to which MAAS GAS BV acquired 49.9% of the shares of the Company and gained co-ownership and joint control of the vessel Gas Defiance.
The reporting and functional currency of the Company is the United States Dollar. The financial statements have been prepared in conformity with United States generally accepted accounting principles (U.S. GAAP) and present the financial position of the Company as of December 31, 2019 and 2020, and the results of its operations and its cash flows for the period from the Transaction date to December 31, 2019 and for the year ended December 31, 2020.
The Companys vessel is managed by Stealth Maritime Corporation S.A. (the Manager), a related party. The Manager is a company incorporated in Liberia and registered in Greece on May 17, 1999 under the provisions of law 89/1967, 378/1968 and article 25 of law 27/75 as amended by article 4 of law 2234/94. (See Note 3).
Coronavirus Outbreak: On March 11, 2020, the World Health Organization declared the 2019 Novel Coronavirus (the 2019-nCoV) outbreak a pandemic. In response to the outbreak, many countries, ports and organizations, including those where the Company conducts a large part of its operations, have implemented measures to combat the outbreak, such as quarantines and travel restrictions, which may continue to cause trade disruptions and volatility in the commodity markets. The Company has experienced and may continue to experience lower LPG rates, as a result of the reduction of the global demand for LPG cargoes. Although to date there has not been any significant effect on the Companys operating activities due to 2019-nCoV other than the decrease in market rates in 2020, the extent to which a new wave of the 2019-nCoV will impact the Companys results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted, including among others, new information which may emerge concerning the severity of the virus and the effectiveness of the actions taken to contain or treat its impact or any resurgence or mutation of the virus, the availability and effectiveness of vaccines and their global deployment. Accordingly, an estimate of the future impact cannot be made at this time.
2. | Significant Accounting Policies |
Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translation: The functional currency of the Company is the U.S. Dollar because the Companys vessel operates in international shipping markets, which utilize the U.S. Dollar as the functional currency. The accounting books of the Company are maintained in
F-7
U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated to reflect the period end exchange rates. Resulting gains or losses are separately reflected in the accompanying statement of comprehensive income.
F-8
Cash and Cash Equivalents: The Company considers highly liquid investments such as time deposits and certificates of deposit with original maturity of three months or less to be cash equivalents.
Restricted Cash: Restricted cash mainly reflects deposits with certain banks that can only be used to pay the current loan installments or which are required to be maintained as a certain minimum cash balance per mortgaged vessel or cash held in restricted bank accounts for guarantees issued by the bank on the Companys behalf. In the event that the obligation relating to such deposits is expected to be terminated within the next twelve months, these deposits are classified as current assets; otherwise they are classified as non-current assets.
Trade Receivables: The amount shown as trade receivables includes estimated recoveries from charterers for hire, net of allowance for doubtful accounts. At each balance sheet date, all potentially un-collectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. No provision for doubtful accounts was required for the periods presented.
Claims Receivable: Claims receivable are recorded on the accrual basis and represent the claimable expenses, net of deductibles, incurred through each balance sheet date, for which recovery from insurance companies is probable and claim is not subject to litigation.
Inventories: Inventories consist of bunkers and lubricants which are stated at the lower of cost and net realizable value. The cost is determined by the first-in, first-out method. The Company considers victualing and stores as being consumed when purchased and, therefore, such costs are expensed when incurred.
Vessel Acquisition: Vessel is stated at cost less depreciation and impairment, if any. Cost consists of the contract price less discounts and any material expenses incurred upon acquisition (initial repairs, improvements, acquisition and expenditures made to prepare the vessel for its initial voyage). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels, or otherwise are charged to expenses as incurred. The Company records all identified tangible and intangible assets associated with the acquisition of a vessel or liabilities at fair value.
F-9
Impairment or Disposal of Long-lived Assets: The Company follows the Accounting Standards Codification (ASC) Subtopic 360-10, Property, Plant and Equipment (ASC 360-10), which requires impairment losses to be recorded for long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. The Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets, when an impairment indication exists. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value and the difference is recorded as an impairment loss in the statement of comprehensive income. Various factors including anticipated future charter rates, estimated scrap values, future dry-docking costs and estimated vessel operating costs are included in this analysis. These factors are based on historical trends as well as future expectations.
Vessels Depreciation: The cost of the Companys vessel is depreciated on a straight-line basis over the vessels remaining economic useful life, after considering the estimated residual value. Management estimates the useful life of the Companys vessel to be 30 years from the date of its construction.
Accounting for Special Survey and Dry-docking Costs: Special survey and dry-docking costs are expensed in the period incurred.
Deferred Finance Charges: Fees incurred for obtaining new loans or refinancing existing ones are deferred and amortized to interest expense over the life of the related debt using the effective interest method. The unamortized deferred financing charges are presented as a direct deduction from the carrying amount of the related loan and credit facility in the balance sheet. Deferred financing costs relating to undrawn facilities are presented under non-current assets in the balance sheet.
Accounting for Revenue and Related Expenses: The Company generates its revenues from charterers for the charter hire of its vessel. The Companys vessel is chartered on time charters or voyage charters.
A time charter is a contract for the use of a vessel for a specific period of time and a specified daily charter hire rate, which is generally payable in advance. Operating costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubricants are paid for by the Company under time charter agreements. A time charter generally provides typical warranties and owner protective restrictions. The performance obligations in a time charter are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the owner of the vessel. The Companys time charter contracts are classified as operating leases pursuant to ASC 842 - Leases, and therefore do not fall under the scope of ASC 606 because (i) the vessel is an identifiable asset (ii) the owner of the vessel 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. Time charter revenues are recognized when a charter agreement exists, the vessel is made available to the charterer and collection of the related revenue is reasonably assured. Time charter revenues are recognized ratably on a straight line basis over the period of the respective charter. Under time charter agreements, all voyages expenses, except commissions are assumed by the charterer.
F-10
On implementation of ASC 842, the Company, elected to make use of a practical expedient for lessors, not to separate the lease and non-lease components included in the time charter revenue but rather to recognize operating lease revenue as a combined single lease component for all time charter contracts as the related lease component, the hire of a vessel, and non-lease component, the fees for operating and maintaining the vessel, have the same timing and pattern of transfer (both the lease and non-lease components are earned by passage of time) and the predominant component is the lease.
A voyage charter is a contract, in which the vessel owner undertakes to transport a specific amount and type of cargo on a load port-to-discharge port basis, subject to various cargo handling terms. The Company accounts for a voyage charter when all the following criteria are met: (1) the parties to the contract have approved the contract in the form of a written charter agreement and are committed to perform their respective obligations, (2) the Company can identify each partys rights regarding the services to be transferred, (3) the Company can identify the payment terms for the services to be transferred, (4) the charter agreement has commercial substance (that is, the risk, timing, or amount of the Companys future cash flows is expected to change as a result of the contract) and (5) it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the services that will be transferred to the charterer. The Company determined that its voyage charters consist of a single performance obligation which is met evenly as the voyage progresses and begin to be satisfied once the vessel is ready to load the cargo. The voyage charter party agreement generally has a demurrage clause according to which the charterer reimburses the vessel owner for any potential delays exceeding the allowed lay-time as per the charter party clause at the ports visited which is recorded as demurrage revenue. Revenues from voyage charters are recognized on a straight line basis over the voyage duration which commences once the vessel is ready to load the cargo and terminates upon the completion of the discharge of the cargo. Demurrage revenues are recognized when the amount can be estimated and its collection is probable. In voyage charters, vessel operating and voyage expenses are paid for by the Company. The voyage charters are considered service contracts which fall under the provisions of ASC 606 because the Company retains control over the operations of the vessels such as the routes taken or the vessels speed.
Deferred revenue represents cash received for undelivered performance obligations and deferred revenue resulting from straight-line revenue recognition in respect of charter agreements that provide for varying charter rates. The portion of the deferred revenue that will be earned within the next twelve months is classified as current liability and the remaining as long-term liability.
Vessel voyage expenses are direct expenses to voyage revenues and primarily consist of brokerage commissions, port expenses, canal dues and bunkers. Brokerage commissions are paid to shipbrokers for their time and efforts for negotiating and arranging charter party agreements on behalf of the Company and expensed over the related charter period and all the other voyage expenses are expensed as incurred except for expenses during the ballast portion of the voyage. Any expenses incurred during the ballast portion of the voyage (period between the contract date and the date of the vessels arrival to the load port) such as bunker expenses, canal tolls and port expenses are deferred and are recognized on a straight-line basis, in voyage expenses, over the voyage duration as the Company satisfies the performance obligations under the contract provided these costs are (1) incurred to fulfill a contract that the Company can specifically identify, (2) able to generate or enhance resources of the company that will be used to satisfy performance of the terms of the contract, and (3) expected to be recovered from the charterer. These costs are considered contract fulfillment costs and are included in current assets in the balance sheets.
F-11
Vessel operating expenses comprise all expenses relating to the operation of the vessel, including crewing, repairs and maintenance, insurance, stores, lubricants and other operating expenses. Vessel operating expenses are expensed as incurred.
F-12
3. | Transactions with Related Parties |
The Manager provides the vessel with a wide range of shipping services such as chartering, technical support and maintenance, insurance, consulting, financial and accounting services, for a fixed daily fee of $440 and a brokerage commission of 1.25% on hire, as per the management agreement between the Manager and the Company. For the year ended December 31, 2020, total brokerage commissions of 1.25% amounted to $40,275 and are included in Voyage expenses related party in the statement of comprehensive income (2019: $42,031). For the year ended December 31, 2020, the management fees were $161,040 (2019: $146,960) and are included in Management fees in the statement of comprehensive income.
The current account balance with the Manager at December 31, 2020 was a liability of $241,006 (2019: $439,723). The liability represents payments made by the Manager on behalf of the ship-owning company.
The current account balance with StealthGas Inc. at December 31, 2020 was a receivable of $369,851 (2019: $1,114,738). The receivable represents revenues collected by StealthGas Inc. on behalf of the Company.
In addition, the Company had a payable to Financial Power Inc. at December 31, 2020, a company under common control, amounting to $27,778 and relating to funds received for working capital purposes.
The balances are interest-free, with no repayment terms and are due on demand.
4. | Inventories |
The amounts shown in the accompanying balance sheets are analyzed as follows:
December 31, | ||||||||
2019 | 2020 | |||||||
Bunkers |
131,475 | 27,649 | ||||||
Lubricants |
63,749 | 44,221 | ||||||
|
|
|
|
|||||
Total |
195,224 | 71,870 | ||||||
|
|
|
|
F-13
5. | Vessel, Net |
The amounts shown in the accompanying balance sheets are analyzed as follows:
Vessel cost |
Accumulated depreciation |
Net book value |
||||||||||
Balance, Transaction date |
13,822,000 | | 13,822,000 | |||||||||
|
|
|
|
|
|
|||||||
Depreciation for the period |
| (600,636 | ) | (600,636 | ) | |||||||
|
|
|
|
|
|
|||||||
Balance, December 31, 2019 |
13,822,000 | (600,636 | ) | 13,221,364 | ||||||||
|
|
|
|
|
|
|||||||
Depreciation for the year |
| (662,316 | ) | (662,316 | ) | |||||||
|
|
|
|
|
|
|||||||
Balance, December 31, 2020 |
13,822,000 | (1,262,952 | ) | 12,559,048 | ||||||||
|
|
|
|
|
|
At December 31, 2020, no impairment indication existed for the Companys vessel since its fair value as determined by independent brokers exceeded its net book value.
As of December 31, 2020, the vessel has been provided as collateral to secure the Companys bank loan as discussed in Note 7.
6. | Accrued Liabilities |
The amounts shown in the accompanying balance sheets are analyzed as follows:
December 31, | ||||||||
2019 | 2020 | |||||||
Interest on long-term debt |
39,371 | 20,412 | ||||||
Vessel operating and voyage expenses |
21,968 | 55,198 | ||||||
|
|
|
|
|||||
Total |
61,340 | 75,610 | ||||||
|
|
|
|
7. | Long-Term Debt, Net |
Long-term debt as of the Transaction date amounted to $6,925,000 and related to a loan issued on July 30, 2008. In May 2019, loan repayments amounting to $342,500 were made to the bank.
On June 25, 2019, the Company together with Financial Power Inc., a ship-owning company under common control, entered into a loan agreement for an amount of $13,165,000 with a bank, for the purpose of re-financing in full the then existing borrowings with the same bank of which $6,582,500 related to the Company. The loan bears interest at LIBOR plus a margin of 2% per annum. The loan allocated to the Company amounted to $6,582,500 and is repayable in nine semi-annual instalments of $342,500 each, and a balloon instalment of $3,500,000, payable together with the last instalment in November 2023.
Loan interest expense for the year ended December 31, 2020, amounted to $188,719 (2019: $238,447) and is presented under Interest and finance costs in the accompanying statement of comprehensive income.
Weighted average interest rate on the Companys long-term debt for the year ended December 31, 2020 was 3.1% (2019: 3.8%).
F-14
Long-term debt as at December 31, 2019 and 2020 is analysed as follows:
2019 | 2020 | |||||||
Total long-term debt |
6,240,000 | 5,555,000 | ||||||
Less: Deferred debt issuance costs |
(34,523 | ) | (24,005 | ) | ||||
|
|
|
|
|||||
Total long-term debt, net |
6,205,477 | 5,530,995 | ||||||
Less: Current portion of long-term debt |
(685,000 | ) | (685,000 | ) | ||||
Add: Current portion of deferred debt issuance costs |
10,518 | 9,260 | ||||||
|
|
|
|
|||||
Long-term debt net |
5,530,995 | 4,855,255 | ||||||
|
|
|
|
The annual principal payments to be made, for the abovementioned loan, after December 31, 2020 are as follows:
December 31, 2020 | ||||
2021 |
685,000 | |||
2022 |
685,000 | |||
2023 |
4,185,000 | |||
|
|
|||
Total |
5,555,000 | |||
|
|
The performance of the loan agreement has been guaranteed by StealthGas Inc. The loan agreement contains customary ship finance covenants, including restrictions as to changes in management and ownership of the mortgaged vessels, the incurrence of additional indebtedness, the mortgaging of the vessels, the ratio of debt to the vessels Market Value and pledged cash deposits. As of December 31, 2020, the Company was in compliance with all the terms of its loan agreement.
8. | Fair Value of Financial Instruments and Concentration of Credit Risk |
Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash equivalents, restricted cash, trade and other receivables, due from related party, payable to related party, trade accounts payable and accrued liabilities. The Company limits its credit risk with respect to accounts receivable by performing ongoing credit evaluations of its customers financial condition and generally does not require collateral for its trade accounts receivable. The Company places its cash and cash equivalents, time deposits and other investments with high credit quality financial institutions. The Company performs periodic evaluations of the relative credit standing of those financial institutions. The carrying values of cash and cash equivalents, restricted cash, receivables from related party, trade and other receivables, payable to related party, trade accounts payable and accrued liabilities are reasonable estimates of their fair value due to the short term nature of these financial instruments. Cash and cash equivalents and restricted cash are considered Level 1 items as they represent liquid assets with short-term maturities. The fair value of long term bank loan is estimated based on current rates offered to the Company for similar debt of the same remaining maturities. Its carrying value approximates its fair market value due to its variable interest rate, being LIBOR. LIBOR rates are observable at commonly quoted intervals for the full terms of the loans and hence floating rate loans are considered Level 2 items in accordance with the fair value hierarchy.
F-15
9. | Capital stock and Additional paid-in capital |
The total authorized and issued share capital of the Company at the Transaction Date was 6,897,000 common shares with a value of 1 US Dollar per share.
During the period ended December 31, 2019, 750,000 shares were issued and capital amounting to $750,000 was contributed to the Company for working capital purposes.
10. | Revenues |
The amounts in the accompanying statement of comprehensive income are analyzed as follows:
2019 | 2020 | |||||||
Time charter revenues |
3,362,478 | 1,470,657 | ||||||
Voyage charter revenues |
| 1,751,380 | ||||||
|
|
|
|
|||||
Total |
3,362,478 | 3,222,037 | ||||||
|
|
|
|
The amount of revenue earned as demurrage relating to the Companys voyage charters for the year ended December 31, 2020 was $176,272 and is included within Voyage charter revenues in the above table.
11. | Vessel Operating Expenses |
The amounts in the accompanying statements of comprehensive income are analyzed as follows:
Vessels Operating Expenses |
2019 | 2020 | ||||||
Crew wages and related costs |
815,797 | 881,108 | ||||||
Insurance |
30,721 | 51,208 | ||||||
Repairs and maintenance |
90,883 | 89,955 | ||||||
Lubricants and consumable stores |
234,062 | 174,229 | ||||||
Miscellaneous expenses |
237,584 | 109,531 | ||||||
|
|
|
|
|||||
Total |
1,409,047 | 1,306,031 | ||||||
|
|
|
|
F-16
12. | Income Taxes |
The Company is incorporated in the Marshall Islands where the laws do not impose tax on international shipping income. However, the Company is subject to registration and tonnage taxes in the country in which the vessel is registered and managed from, which have been included in vessel operating expenses in the accompanying statements of comprehensive income.
13. | Commitments and Contingencies |
From time to time the Company expects to be subject to legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. The Company is not aware of any such claims or contingent liabilities which should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements.
As discussed in Note 7, the Company together with Financial Power Inc., a ship-owning company under common control, have entered into a loan agreement for an amount of $13,165,000. The portion of Financial Power Inc. from the outstanding loan balance and accrued interest as of December 31, 2020 amounted to $5,555,000 and $20,412, respectively. The Company is jointly and severally liable for the aforementioned portion in case of any defaults. The extent to which an outflow of funds will be required is dependent on the performance of Financial Power Inc. and its compliance with the relevant terms included in the loan agreement.
The Company together with Financial Power Inc., have guaranteed to the respective bank the loan agreement entered into by Frost Investments Corp., a ship-owning company under common control. Total outstanding loan balance and accrued interest of Frost Investments Corp. as of December 31, 2020 amounted to $10,840,000 and $27,237, respectively. The extent to which an outflow of funds will be required is dependent on the performance of Frost Investments Corp. and its compliance with the relevant terms included in the loan agreement.
The Company assigns a remote possibility of default to the abovementioned loan agreements and hence has not established any provisions for losses.
14. | Subsequent Events |
As of April 27, 2021, no significant events have occurred since the balance sheet date.
F-17
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 43,183,684 | 44,549,729 |
Common stock, shares outstanding | 37,858,437 | 39,584,274 |
Common stock,par value | $ 0.01 | $ 0.01 |
Treasury stock, shares | 5,325,247 | 4,965,455 |
Treasury stock, par value | $ 0.01 | $ 0.01 |
Consolidated Statements of Operations - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Revenues | |||
Revenues | $ 145,003,021 | $ 144,259,312 | $ 164,330,202 |
Total revenues | 145,003,021 | 144,259,312 | 164,330,202 |
Expenses | |||
Voyage expenses | 12,259,795 | 15,201,978 | 18,649,258 |
Voyage expenses – related party | 1,799,209 | 1,788,543 | 2,037,917 |
Charter hire expenses | 318,606 | 6,268,988 | 6,150,780 |
Vessels' operating expenses | 52,344,721 | 48,619,594 | 59,920,278 |
Vessels' operating expenses – related party | 950,500 | 966,500 | 514,500 |
Dry-docking costs | 3,640,327 | 1,094,306 | 3,617,577 |
Management fees – related party | 5,599,351 | 5,730,910 | 7,027,195 |
General and administrative expenses (including $1,294,722, $1,205,683 and $1,084,961 to related party) | 2,301,308 | 3,706,320 | 3,046,962 |
Depreciation | 37,455,093 | 37,693,733 | 41,258,142 |
Impairment loss | 3,857,307 | 993,916 | 11,351,821 |
Net loss on sale of vessels | 1,134,854 | 485,516 | 763,925 |
Other operating income | (549,804) | ||
Total expenses | 121,661,071 | 122,550,304 | 153,788,551 |
Income from operations | 23,341,950 | 21,709,008 | 10,541,651 |
Other (expenses)/income | |||
Interest and finance costs | (14,129,893) | (20,978,065) | (23,286,547) |
Gain on deconsolidation of subsidiaries | 0 | 145,000 | |
Loss on derivatives | (50,976) | (107,550) | (11,982) |
Interest income and other income | 167,794 | 846,271 | 587,477 |
Foreign exchange loss | (54,374) | (8,235) | (107,119) |
Other expenses, net | (14,067,449) | (20,102,579) | (22,818,171) |
(Loss)/Income before equity in earnings of investees | 9,274,501 | 1,606,429 | (12,276,520) |
Equity earnings in joint ventures | 2,709,984 | 486,695 | |
Net (Loss)/Income | $ 11,984,485 | $ 2,093,124 | $ (12,276,520) |
(Loss)/Earnings per share | |||
– Basic and diluted | $ 0.31 | $ 0.05 | $ (0.31) |
Weighted average number of shares | |||
– Basic and diluted | 38,357,893 | 39,800,434 | 39,860,563 |
Consolidated Statements of Operations (Parenthetical) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Income Statement [Abstract] | |||
General and administrative expenses, related party | $ 1,084,961 | $ 1,205,683 | $ 1,294,722 |
Consolidated Statements of Comprehensive (Loss)/Income - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | |||
Net (loss)/income | $ 11,984,485 | $ 2,093,124 | $ (12,276,520) |
Other comprehensive income | |||
Effective portion of changes in fair value of interest swap contracts | (2,632,826) | (2,848,056) | 56,084 |
Reclassification adjustment | (60,954) | (84,966) | |
Total other comprehensive income/(loss) | (2,693,780) | (2,933,022) | 56,084 |
Total comprehensive (loss)/income | $ 9,290,705 | $ (839,898) | $ (12,220,436) |
Consolidated Statements of Stockholders' Equity - USD ($) |
Total |
Restatement Adjustment [Member] |
Capital Stock [Member] |
Capital Stock [Member]
Restatement Adjustment [Member]
|
Treasury Stock [Member] |
Treasury Stock [Member]
Restatement Adjustment [Member]
|
Additional Paid-in Capital [Member] |
Additional Paid-in Capital [Member]
Restatement Adjustment [Member]
|
Retained Earnings [Member] |
Retained Earnings [Member]
Restatement Adjustment [Member]
|
Accumulated Other Comprehensive (Loss)/Income [Member] |
Accumulated Other Comprehensive (Loss)/Income [Member]
Restatement Adjustment [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2017 | $ 573,478,772 | $ 573,134,591 | $ 442,850 | $ 442,850 | $ (22,523,528) | $ (22,523,528) | $ 501,471,768 | $ 501,471,768 | $ 93,469,787 | $ 93,125,606 | $ 617,895 | $ 617,895 |
Balance (in shares) at Dec. 31, 2017 | 44,285,108 | 44,285,108 | (4,424,545) | (4,424,545) | ||||||||
Issuance of restricted shares and stock based compensation | 338,356 | $ 2,646 | 335,710 | |||||||||
Issuance of restricted shares and stock based compensation (in shares) | 264,621 | |||||||||||
Cumulative effect of accounting change | (344,181) | (344,181) | ||||||||||
Comprehensive income/(loss) for the year | (12,220,436) | (12,276,520) | 56,084 | |||||||||
Ending balance at Dec. 31, 2018 | 561,252,511 | $ 445,496 | $ (22,523,528) | 501,807,478 | 80,849,086 | 673,979 | ||||||
Ending Balance, (in shares) at Dec. 31, 2018 | 44,549,729 | (4,424,545) | ||||||||||
Stock based compensation | 611,644 | 611,644 | ||||||||||
Stock repurchase | (1,837,617) | $ (1,837,617) | ||||||||||
Stock repurchase (in shares) | (540,910) | |||||||||||
Comprehensive income/(loss) for the year | (839,898) | 2,093,124 | (2,933,022) | |||||||||
Ending balance at Dec. 31, 2019 | 559,186,640 | $ 445,496 | $ (24,361,145) | 502,419,122 | 82,942,210 | (2,259,043) | ||||||
Ending Balance, (in shares) at Dec. 31, 2019 | 44,549,729 | (4,965,455) | ||||||||||
Stock repurchase | (1,012,235) | $ (1,012,235) | ||||||||||
Stock repurchase (in shares) | (359,792) | |||||||||||
Stock repurchase and cancellation | (2,868,695) | $ (13,660) | (2,855,035) | |||||||||
Stock repurchase and cancellation (in shares) | (1,366,045) | |||||||||||
Comprehensive income/(loss) for the year | 9,290,705 | 11,984,485 | (2,693,780) | |||||||||
Ending balance at Dec. 31, 2020 | $ 564,596,415 | $ 431,836 | $ (25,373,380) | $ 499,564,087 | $ 94,926,695 | $ (4,952,823) | ||||||
Ending Balance, (in shares) at Dec. 31, 2020 | 43,183,684 | (5,325,247) |
Basis of Presentation and General Information |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and General Information | 1. Basis of Presentation and General Information The accompanying consolidated financial statements include the accounts of StealthGas Inc. and its wholly owned subsidiaries (collectively, the “Company”) which, as of December 31, 2020 owned a fleet of thirty seven liquefied petroleum gas (LPG) carriers, three medium range (M.R.) type product carriers and one Aframax tanker providing worldwide marine transportation services under long, medium or short-term charters. StealthGas Inc. was formed under the laws of Marshall Islands on December 22, 2004. The Company’s vessels are managed by Stealth Maritime Corporation S.A. (the “Manager”), a company controlled by members of the family of the Company’s Chief Executive Officer. The Manager, a related party, was incorporated in Liberia and registered in Greece on May 17, 1999 under the provisions of law 89/1967, 378/1968 and article 25 of law 27/75 as amended by article 4 of law 2234/94. (See Note 3). Coronavirus Outbreak: On March 11, 2020, the World Health Organization declared the 2019 Novel Coronavirus (the “2019-nCoV”) outbreak a pandemic. In response to the outbreak, many countries, ports and organizations, including those where the Company conducts a large part of its operations, have implemented measures to combat the outbreak, such as quarantines and travel restrictions, which may continue to cause trade disruptions and volatility in the commodity markets. The Company has experienced and may continue to experience lower LPG rates, as a result of the reduction of the global demand for LPG cargoes and additional costs to effect crew changes. Although to date there has not been any significant effect on the Company’s operating activities due to 2019-nCoV other than the decrease in market rates in 2020, and increased crew cost, the extent to which a new wave of the 2019-nCoV will impact the Company’s results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted, including among others, new information which may emerge concerning the severity of the virus and the effectiveness of the actions taken to contain or treat its impact or any resurgence or mutation of the virus, the availability and effectiveness of vaccines and their global deployment. Accordingly, an estimate of the future impact cannot be made at this time. |
Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Principles of Consolidation: Use of Estimates: Other Comprehensive Income /(Loss):Foreign Currency Translation: The functional currency of the Company is the U.S. Dollar because the Company’s vessels operate in international shipping markets, which utilize the U.S. Dollar as the functional currency. The accounting books of the Company are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies, are translated to reflect the period end exchange rates. Resulting gains or losses are separately reflected in the accompanying consolidated statements of operations. Cash and Cash Equivalents: Restricted Cash: that can only be used to pay the current loan installments or which are required to be maintained as a certain minimum cash balance per mortgaged vessel or funds held in escrow (Note 19). In the event that the obligation relating to such deposits is expected to be terminated within the next twelve months, these deposits are classified as current assets; otherwise they are classified as non-current assets. Trade Receivables: un-collectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. No provision for doubtful accounts was required for any of the periods presented. Claims Receivable: Inventories: Inventories consist of bunkers (for vessels under voyage charter or on ballast or idle) and lubricants which are stated at the lower of cost and net realizable value. The cost is determined by the first-in, first-out method. The Company considers victualing and stores as being consumed when purchased and, therefore, such costs are expensed when incurred. Advances for vessels under construction: This represents amounts expended by the Company in accordance with the terms of the construction contracts for vessels as well as other expenses in connection with on-site supervision. In addition, interest costs incurred during the construction (until the asset is substantially complete and ready for its intended use) are capitalized. Vessels Acquisitions: Vessels are stated at cost less depreciation and impairment, if any. Cost consists of the contract price less discounts and any material expenses incurred upon acquisition (initial repairs, improvements, acquisition and expenditures made to prepare the vessel for its initial voyage). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels, or otherwise are charged to expenses as incurred. Where vessels are acquired with existing time charters, the Company allocates the purchase price to the vessels and to the attached time charters on the basis of their relative fair values. The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction and increase, respectively, to revenues over the remaining term of the charter. Impairment or Disposal of Long-lived Assets: Accounting Standards Codification (“ASC”) Subtopic 360-10, 360-10”), for recorded as an impairment loss in the consolidated statements of operations. Various factors including anticipated future charter rates, estimated scrap values, future dry-docking costs and estimated vessel operating costs are included in this analysis. These factors are based on historical trends as well as future expectations. Undiscounted cash flows are determined by considering the revenues from existing charters for those vessels that have long term employment and when there is no charter in place the estimates based on historical average rates. An impairment loss was identified and recorded for the years ended December 31, 2018, 2019 and 2020 (Note 6). Vessels’ Depreciation: The cost of each of the Company’s vessels is depreciated on a straight-line basis over the vessel’s remaining economic useful life, after considering the estimated residual value. Management estimates the useful life of each of the Company’s LPG carriers to be 30 years and product and aframax tankers, to be 25 years, from the date of their construction. Assets Held for Sale: 360-10, a loss is recognized for any reduction of the vessel’s carrying amount to its fair value less cost to sell. No assets were held for sale as of December 31, 2019 and 2020. Segment Reporting: Accounting for Special Survey and Dry-docking Costs:dry-docking costs are expensed in the period incurred. Deferred Finance Charges: non-current assets in the consolidated balance sheet. Accounting for Revenue and Related Expenses: A time charter is a contract for the use of a vessel for a specific period of time and a specified daily charter hire rate, which is generally payable in advance. Operating costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubricants are paid for by the Company under time charter agreements. A time charter generally provides typical warranties and owner protective restrictions. The performance obligations in a time charter are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the owner of the vessel. Some of the Company’s time charters may also contain profit sharing provisions, under which the Company can realize additional revenues in the event that spot rates are higher than the base rates in these time charters. A bareboat charter is a contract in which the vessel owner provides the vessel to the charterer for a fixed period of time at a specified daily rate, which is generally payable in advance, and the charterer generally assumes all risk and costs of operation during the bareboat charter period. The Company’s time charter and bareboat contracts are classified as operating leases pursuant to Accounting Standards Codification (“ASC”) 842 - Leases, and therefore do not fall under the scope of Accounting Standards Codification (“ASC”) 606 because (i) the vessel is an identifiable asset (ii) the owner of the vessel 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. Time charter and bareboat revenues are recognized when a charter agreement exists, the vessel is made available to the charterer and collection of the related revenue is reasonably assured. Time charter and bareboat charter revenues are recognized as earned on a straight-line basis over the term of the charter as service is provided. Revenues from profit sharing arrangements in time charters are recognized in the period earned. Under time and bareboat charter agreements, all voyages expenses, except commissions are assumed by the charterer. On implementation of ASC 842, the Company, elected to make use of a practical expedient for lessors, not to separate the lease and non-lease components included in the time charter revenue but rather to recognize operating lease revenue as a combined single lease component for all time charter contracts as the related lease component, the hire of a vessel, and the non-lease component, the fees for operating and maintaining the vessel, have the same timing and pattern of transfer (both the lease and non-lease components are earned by passage of time) and the predominant component is the lease. A voyage charter is a contract, in which the vessel owner undertakes to transport a specific amount and type of cargo on a load port-to-discharge port basis, subject to various cargo handling terms. The Company accounts for a voyage charter when all the following criteria are met: (1) the parties to the contract have approved the contract in the form of a written charter agreement and are committed to perform their respective obligations, (2) the Company can identify each party’s rights regarding the services to be transferred, (3) the Company can identify the payment terms for the services to be transferred, (4) the charter agreement has commercial substance (that is, the risk, timing, or amount of the Company’s future cash flows is expected to change as a result of the contract) and (5) it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the services that will be transferred to the charterer. The Company determined that its voyage charters consist of a single performance obligation which is met evenly as the voyage progresses and begins to be satisfied once the vessel is ready to load the cargo. The voyage charter party agreement generally has a demurrage clause according to which the charterer reimburses the vessel owner for any potential delays exceeding the allowed lay-time as per the charter party clause at the ports visited which is recorded as demurrage revenue. Revenues from voyage charters are recognized on a straight line basis over the voyage duration which commences once the vessel is ready to load the cargo and terminates upon the completion of the discharge of the cargo. Demurrage revenues are recognized when the amount can be estimated and its collection is probable. In voyage charters, vessel operating and voyage expenses are paid for by the Company. The voyage charters are considered service contracts which fall under the provisions of ASC 606 because the Company retains control over the operations of the vessels such as the routes taken or the vessels’ speed. Deferred income represents cash received for undelivered performance obligations and deferred revenue resulting from straight-line revenue recognition in respect of charter agreements that provide for varying charter rates. The portion of the deferred revenue that will be earned within the next twelve months is classified as current liability and the remaining as long-term liability. Vessel voyage expenses are direct expenses to voyage revenues and primarily consist of brokerage commissions, port expenses, canal dues and bunkers. Brokerage commissions are paid to shipbrokers for their time and efforts for negotiating and arranging charter party agreements on behalf of the Company and expensed over the related charter period and all the other voyage expenses are expensed as incurred except for expenses during the ballast portion of the voyage. Any expenses incurred during the ballast portion of the voyage (period between the contract date and the date of the vessel’s arrival to the load port) such as bunker expenses, canal tolls and port expenses are deferred and are recognized on a straight-line basis, in voyage expenses, over the voyage duration as the Company satisfies the performance obligations under the contract provided these costs are (1) incurred to fulfill a contract that the Company can specifically identify, (2) able to generate or enhance resources of the company that will be used to satisfy performance of the terms of the contract, and (3) expected to be recovered from the charterer. These costs are considered ‘contract fulfillment costs’ and are included in ‘other current assets’ in the accompanying consolidated balance sheets. Vessel operating expenses comprise all expenses relating to the operation of the vessel, including crewing, repairs and maintenance, insurance, stores, lubricants and other operating expenses. Vessel operating expenses are expensed as incurred. Under a bareboat charter, the charterer assumes responsibility for all voyage and vessel operating expenses, dry-docking expenses and risk of operation. Equity Compensation Plan: Share-based compensation includes vested and non-vested shares granted to employees of the Company, to employees of the Manager and to non-employee directors, for their services as directors and is included in General and administrative expenses in the consolidated statements of operations. These shares are measured at their fair value, which is equal to the market value of the Company’s common stock on the grant date. The shares that do not contain any future service vesting conditions are considered vested shares and the total fair value of such shares is recognized in full on the grant date. The shares that contain a time-based service vesting condition are considered non-vested shares on the grant date and a total fair value of such shares is recognized over the vesting period on a straight-line basis over the requisite service period for each separate portion of the award as if the award was, in substance, multiple awards (graded vesting attribution method). The Company accounts for forfeitures as they occur (Note 14). Earnings/(Loss) per Share: two-class method by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised. Dilution is computed by either the treasury stock method or the two–class method, whichever results in the more dilutive effect. Under the treasury stock method, all of the Company’s dilutive securities are assumed to be exercised or converted and the proceeds used to repurchase common shares at the weighted average market price of the Company’s common stock during the relevant periods. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted earnings per share computation to the extent these are not anti-dilutive (Note 15). Derivatives (i) Hedge Accounting Contracts which meet the strict criteria for hedge accounting are accounted for as cash flow hedges. A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a highly probable forecasted transaction that could affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognized directly as a component of “Accumulated other comprehensive income” in equity, while the ineffective portion, if any, is recognized immediately in current period earnings. The Company discontinues cash flow hedge accounting if the hedging instrument expires and it no longer meets the criteria for hedge accounting or designation is revoked by the Company. At that time, any cumulative gain or loss on the hedging instrument recognized in equity is kept in equity until the forecasted transaction occurs. When the forecasted transaction occurs, any cumulative gain or loss on the hedging instrument is recognized in the statement of income. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in equity is transferred to net profit or loss for the year as a component of “Loss on derivatives”. (ii) Other Derivatives Investments in joint ventures: and the resulting impairment is recorded in the consolidated statements of operations. Recent Accounting Pronouncements : In March 2020, the Financial Accounting Standards Board issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”).” ASU 2020-04 provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued Accounting Standard Update (“ASU”) 2021-01 (Topic 848), which amends and clarifies the existing accounting standard issued in March 2020 (“ASU”) 2020-04 for Reference Rate Reform. Reference rates such as LIBOR, are widely used in a broad range of financial instruments and other agreements. The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities under way in global financial markets (the “discounting transition”). The ASU 2020-04 is effective for adoption at any time between March 12, 2020 and December 31, 2022, for all entities and the ASU 2021-01 is effective for all entities as of January 7, 2021 through December 31, 2022. The Company is currently evaluating the impact of this standard in its consolidated financial statements and related disclosures. |
Transactions with Related Parties |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions with Related Parties | 3 . Transactions with Related Parties The Manager provides the vessels with a wide range of shipping services such as chartering, te chnical support and maintenance, insurance, consulting, financial and accounting services, for a fixed daily fee of $440 per vessel operating under a voyage or time charter (except for four vessels for which a fixed daily fee of $280 is charged by the Manager as part of the services is provided by a third party manager) or $125 per vessel operating under a bareboat charter (the “Management fees”) and a brokerage commission of 1.25 % on freight, hire and demurrage per vessel (the “Brokerage commissions”), as per the management agreement between the Manager and the Company.The Manager has subcontracted the technical management of some of the vessels to an affiliated ship-management company, Brave Maritime Corp. Inc. (“Brave”). This company provides technical management to the Company’s vessels for a fixed annual fee per vessel which is paid by the Manager. In addition, the Manager arranges for supervision onboard the vessels, when required, by superintendent engineers and when such visits exceed a period of five days in a twelve month period, an amount of $500 is charged for each additional day (the “Superintendent fees”). Effective from 2018, the Manager provides crew management services to some of the Company’s vessels. These services have been subcontracted by the Manager to an affiliated ship-management company, Hellenic Manning Overseas Inc. (ex. Navis Maritime Services Inc.). The Company pays to the Manager a fixed monthly fee of $2,500 per vessel (the “Crew management fees”). The Manager also acts as a sales and purchase broker for the Company in exchange for a commission fee equal to 1% of the gross sale or purchase price of vessels or companies. The commission fees relating to vessels purchased (“Commissions – vessels purchased”) are capitalized to the cost of the vessels as incurred. The commission fees relating to vessels sold (“Commissions – vessels sold”) are included in the consolidated statement of operations. In addition to management services, the Company reimburses the Manager for the compensation of its Chief Executive Officer, its Chief Financial Officer, its Internal Auditor, its Deputy Chairman and Executive Director (up to the third quarter of 2019) and its Chief Technical Officer (the “Executive compensation”). The current account balance with the Manager at December 31, 2019 and at December 31, 2020 was a liability of $2,084,871 and $3,701,903, respectively. The liability mainly represents payments made by the Manager on behalf of the ship-owning companies. Furthermore, the current account balance with entities that the Company owns 50.1% equity interests (Note 7) amounted to a liability of $4,958,250 and $957,958 as of December 31, 2019 and 2020, respectively. The liability mainly represents revenues collected by the Company on behalf of these entities. The Company rents office space from the Manager and incurs a rental expense (the “Rental expense”). On January 25, 2016, the Company entered into a supervision agreement with Brave for the supervision of the construction of four of its newbuilding vessels for a fixed fee of Euro 490,000 per vessel (the “Supervision fees”). On April 1, 2020, the Company entered into a new supervision agreement with Brave for the supervision of the construction of the vessel discussed in Note 5 for Supervision fees of Euro 390,000. The amounts charged by the Company’s related parties comprised the following:
On June 5, 2020, the Company entered into memoranda of agreement with companies affiliated with members of the family of the Company’s Chief Executive Officer for the acquisition of the vessels “Eco Alice” and “Eco Texiana” for $ , respectively. The vessels were delivered to the Company on September 30, 2020 and June 19, 2020 , respectively. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | 4. Inventories The amounts shown in the accompanying consolidated balance sheets are analyzed as follows:
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Advances for Vessel Under Construction and Acquisitions |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances for Vessel Under Construction and Acquisitions | 5. Advances for Vessel Under Construction and Acquisitions The amounts shown in the accompanying consolidated balance sheets mainly represent advance payments to a shipbuilder for one LPG carrier under construction that the Company agreed to acquire in 2019. The vessel, which was named “Eco Blizzard”, was delivered to the Company on February 5, 2021 after the payment of the delivery installment to the shipbuilder amounting to $23,152,125. For the years ended December 31, 2019 and 2020, the movement of the account, advances for vessel under construction and acquisitions was as follows:
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Vessels, net |
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Vessels, net | 6. Vessels, net The amounts shown in the accompanying consolidated balance sheets are analyzed as follows:
In March 2018, the Company entered into a memorandum of agreement for the disposal of the vessel “Gas Legacy”, to an unaffiliated third party for $4,990,000. The vessel, including her inventories on board, were classified as assets held for sale in the first quarter of 2018. As a result, the Company measured the vessel at the lower of its carrying amount and fair value less the cost associated with the sale and recognized an impairment charge of $1,418,672 in its consolidated statement of operations for the year ended December 31, 2018. The vessel was delivered to her new owners on August 31, 2018. On March 31, 2018, the Company decided to seek to dispose of the vessel “Gas Enchanted”. As a result of this decision, the undiscounted net operating cash flows of this vessel did not exceed its carrying value and the Company identified and recognized an impairment charge of $1,937,822 in its consolidated statement of operations for the year ended December 31, 2018. In April 2018, the Company concluded a memorandum of agreement for the disposal of this vessel, to an unaffiliated third party for $8,950,000. The vessel was delivered to her new owners on May 7, 2018. In April 2018, the Company entered into a memorandum of agreement for the disposal of the vessel “Gas Evoluzione”, to an unaffiliated third party for $3,575,000. The vessel, including her inventories on board, were classified as assets held for sale in the second quarter of 2018. The total impairment charge recognized in the Company’s consolidated statements of operations for the year ended December 31, 2018 amounted to $604,774. The vessel was delivered to her new owners on August 28, 2018. On June 30, 2018, the Company decided to seek to dispose of the vessel “Gas Sikousis”. As a result of this decision, the undiscounted net operating cash flows of this vessel did not exceed its carrying value and the Company identified and recognized an impairment charge of $842,332 in its consolidated statement of operations for the year ended December 31, 2018. In July 2018, the Company concluded a memorandum of agreement for the disposal of this vessel, to an unaffiliated third party for $9,450,000. The vessel was delivered to her new owners on September 27, 2018. In July 2018, the Company entered into three separate memoranda of agreement for the disposal of the vessels “Gas Marathon”, “Gas Sincerity and “Gas Texiana” to unaffiliated third parties for a total of $12,700,000. The vessels, including their inventories on board, were classified as vessels held for sale in the third quarter of 2018. The total impairment charge recognized in the Company’s consolidated statements of operations for the year ended December 31, 2018 amounted to $3,358,363. The vessels were delivered to their new owners on October 13, 2018, January 28, 2019 and February 13, 2019, respectively. The Company disposed the above mentioned vessels as the agreed selling price was a suitable opportunity for the Company and realized an aggregate loss from the sale of these vessels of $763,925 which is included in the Company’s consolidated statement of operations under the caption “Net loss on sale of vessels” for the year ended December 31, 2018. During the first quarter of 2019, the Company entered into four joint venture agreements with a third party investor based on which the third party investor acquired a 49.9% equity interest in four vessel owning companies of the Company and gained co-ownership and joint control of the vessels “Gas Defiance”, “Gas Shuriken”, “Gas Haralambos” and “Eco Lucidity”. These agreements are accounted for in the Company’s financial statements as an equity investment since the Company and the third party investor have joint control over these entities. As a result, the vessels were classified as assets held for sale in the fourth quarter of 2018. The Company measured the vessels at the lower of their carrying amount and fair value less the cost associated with the transaction and recognized an impairment charge of $3,189,858 in its consolidated statement of operations for the year ended December 31, 2018. In September 2019, the Company entered into a memorandum of agreement for the disposal of the vessel “Gas Ethereal”, to an unaffiliated third party for $10,900,000. The vessel was delivered to her new owners on September 27, 2019. The Company decided to dispose the above mentioned vessels as the agreed selling price was a suitable opportunity for the Company and together with minor additional selling costs, arising from the delivery of “Gas Sincerity and “Gas Texiana” to their new owners, realized an aggregate loss from the sale of these vessels of $485,516, which is included in the Company’s consolidated statement of operations under the caption “Net loss on sale of vessels” for the year ended December 31, 2019. As of December 31, 2019, the Company performed an impairment review of its vessels, due to the prevailing conditions in the shipping industry. As a result of the impairment review, undiscounted net operating cash flows exceeded each vessel’s carrying value with the exception of two vessels and therefore the Company identified and recorded an impairment loss of $993,916 which is presented under the caption “Impairment loss” in the consolidated statements of operations. As of June 30, 2020, the Company performed an impairment review of its vessels, due to the prevailing conditions in the shipping industry. As a result of the impairment review, undiscounted net operating cash flows exceeded each vessel’s carrying value with the exception of two vessels and therefore the Company identified and recorded an impairment loss of $ 653,079 which is presented under the caption “Impairment loss” in the consolidated statements of operations. On September 25, 2020, the Company decided to seek to dispose of the vessel “Gas Nemesis II”. As a result of this decision, the undiscounted net operating cash flows of this vessel did not exceed its carrying value and the Company identified and recognized an impairment charge of $ 2,489,333 in its consolidated statement of operations for the year ended December 31, 2020. In October 2020, the Company concluded a memorandum of agreement for the disposal of this vessel, to an unaffiliated third party for $ 4,500,000. The vessel was delivered to her new owners on November 2, 2020. In November 2020, the Company concluded a memorandum of agreement for the disposal of the vessel “Gas Pasha”, to an unaffiliated third party for $ 900,000. The vessel was delivered to her new owners on December 7, 2020. The Company disposed the above mentioned vessels as the agreed selling price was a suitable opportunity for the Company and realized an aggregate loss from the sale of these vessels of $1,134,854 which is included in the Company’s consolidated statement of operations under the caption “Net loss on sale of vessels” for the year ended December 31, 2020. As of December 31, 2020, the Company performed an impairment review of its vessels, due to the prevailing conditions in the shipping industry. As a result of the impairment review, undiscounted net operating cash flows exceeded each vessel’s carrying value with the exception of one vessel and therefore the Company identified and recorded an impairment loss of $714,895 which is presented under the caption “Impairment loss” in the consolidated statements of operations. The additions in 2020 mainly relate to the acquisition of vessels “Eco Alice” and “Eco Texiana” (Note 3) and to the installation of ballast water treatment systems. As of December 31, 2020, 36 vessels with a carrying value of $798,061,787 (2019: 34 vessels with carrying value of $787,185,762) have been provided as collateral to secure the Company’s bank loans as discussed in Note 11. |
Investments in Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Joint Ventures | 7. Investments in joint ventures During the first quarter of 2019, the Company entered into four joint venture agreements with a third party investor based on which the third party investor acquired for $20,720,975 a 49.9% equity interest in Spacegas Inc., Financial Power Inc., Cannes View Inc. and Colorado Oil and Gas Inc., four vessel owning companies of the Company, which own the vessels “Gas Defiance”, “Gas Shuriken”, “Gas Haralambos” and “Eco Lucidity”. The remaining 50.1% equity interest was valued at $20,804,025. The Company contributed funds for working capital purposes amounting to $751,500. During the third quarter of 2019, Cannes View Inc. and Colorado Oil and Gas Inc., using the proceeds of a loan agreement that was entered into on July 9, 2019, returned an amount of $14,696,900 to the Company and the third party investor based on their equity interests. Amount returned to the Company amounted to $7,363,147. On May 22, 2019, Frost Investments Corp Inc. was incorporated under the laws of the Marshall Islands. Frost Investments Corp Inc. acquired for $20,400,000 the vessel Eco Nebula and under a joint venture agreement is owned by the Company (50.1%) and by the third party investor (49.9%). The Company contributed funds for the acquisition of vessel Eco Nebula and for working capital purposes amounting to $10,571,100, as needed and proportionate to its 50.1% equity interest. On February 13, 2020, the Company entered into a joint venture agreement with an unaffiliated third party, for the purpose of acquiring three medium gas carriers and the establishment of a new holding company. The new holding company, MGC Aggressive Holdings Inc., was established and the Company has a 51% equity interest in it. Pursuant to this joint venture agreement, subsidiaries of MGC Aggressive Holdings Inc. acquired on February 28, 2020, two mediu m gas carriers, the Gaschem Hamburg and the Gaschem Stade, and on March 11 , 2020 , one medium gas carrier, the Gaschem Bremen, at an aggregate price of $80,550,000. The Company contributed funds for the acquisition of these vessels and for working capital purposes amounting to $41,998,500, as needed and proportionate to its 51% equity interest. During the second quarter of 2020, MGC Aggressive Holdings Inc., using the proceeds of a loan agreement that was entered into on May 7, 2020, returned an amount of $47,600,000 to the Company and the unaffiliated third party based on their equity interests. Amount returned to the Company amounted to $24,276,000. During the second quarter of 2020, Frost Investments Corp Inc., using the proceeds of a loan agreement that was entered into on December 3, 2019, returned an amount of $5,000,000 to the Company and the third party investor based on their equity interests. Amount returned to the Company amounted to $2,505,000. During the first quarter of 2021, a subsidiary of MGC Aggressive Holdings Inc. entered into a memorandum of agreement for the disposal of the vessel Gaschem Hamburg to an unaffiliated third party for $34,000,000. The Company’s exposure is limited to its share of the net assets of Spacegas Inc., Financial Power Inc., Cannes View Inc., Colorado Oil and Gas Inc., Frost Investments Corp Inc. and MGC Aggressive Holdings Inc. (collectively “the joint venture entities”) proportionate to its equity interest in these companies. The Company shares the profits and losses, cash flows and other matters relating to its investments in the joint venture entities in accordance with its ownership percentage. The vessels are managed by the Manager, pursuant to management agreements, while three of the vessels were also managed by a third party manager during 2020. The Company accounts for investments in joint ventures using the equity method since it has joint control over the joint venture entities. The Company does not consolidate the joint venture entities because it does not have a controlling financial interest. The significant factors considered and judgments made in determining that the power to direct the activities of the joint venture entities that most significantly impact their economic performance are shared, are that all significant business decisions over operating and financial policies of the joint venture entities, require consent from each joint venture investor. A condensed summary of the financial information for equity accounted investments partially owned by the Company shown on a 100% basis is as follows:
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Accrued Liabilities |
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Accrued Liabilities | 8. Accrued Liabilities The amounts shown in the accompanying consolidated balance sheets are analyzed as follows:
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Deferred Income |
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Deferred Income | 9. Deferred Income The amounts shown in the accompanying consolidated balance sheets amounting to $2,843,994 and $2,995,657 represent cash related to time and bareboat charter revenues received in advance as of December 31, 2019 and as of December 31, 2020, respectively. |
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Customer Deposits | 10. Customer Deposits These amounts represent deposits received from charterers as guarantees and are comprised as follows:
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Long-term Debt |
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Long-term Debt | 11. Long-term Debt
On January 11, 2021, the Company entered into a term loan with a bank to refinance the existing term loan dated August 7, 2019. The new term loan is up to $25,000,000 and will be repayable in twenty consecutive quarterly installments, with the first installment commencing three months after the drawdown. Obligations with a maturity of less than one year relating to the previous loan amounting to $14,260,000, have been presented as long-term in accordance with US GAAP as the Company refinanced these obligations on a long-term basis through the term loan that the Company entered in January 2021 discussed above. On January 19, 2021, the Company entered into a term loan with a bank to refinance the existing term loans dated July 4, 2014, June 20, 2014 and December 24, 2015. The new term loan is up to $45,000,000 and will be repayable in twenty eight consecutive quarterly installments, with the first installment commencing three months after the drawdown. Obligations with a maturity of less than one year relating to the previous loan amounting to $13,627,078, have been presented as long-term in accordance with US GAAP as the Company refinanced these obligations on a long-term basis through the term loan that the Company entered in January 2021 discussed above. The above loans are generally repayable in quarterly or semi-annual installments and a balloon payment at maturity and are secured by first priority mortgages over the vessels involved, plus the assignment of the vessels’ insurances, earnings and operating and retention accounts with the lenders, and the guarantee of ship-owning companies, as owners of the vessels. The term loans contain financial covenants requiring the Company to ensure that:
The interest rates on the outstanding loans as of December 31, 2020 are based on LIBOR plus a margin which varies from 2.15% to 3.00%. The average interest rates (including the margin) on the above outstanding loans for the applicable periods were: Year ended December 31, 2018: 5.34% Year ended December 31, 2019: 4.91% Year ended December 31, 2020: 3.58% Bank loan interest expense for the above loans for the years ended December 31, 2018, 2019 and 2020 amounted to $22,150,386, $19,999,902 and $12,116,941, respectively. Of these amounts, for the years ended December 31, 2018, 2019 and 2020, the amounts of nil, $97,620 and $168,344, respectively, were capitalized as part of advances paid for vessels under construction. Interest expense, net of interest capitalized, is included in interest and finance costs in the consolidated statements of operations. For the years ended December 31, 2018, 2019 and 2020, the amortization of deferred financing charges amounted to $858,582, $885,191 and $698,364, respectively, and is included in interest and finance costs in the consolidated statements of operations. At December 31, 2020, the Company was in compliance with all of its debt financial covenants. At December 31, 2020, an amount of $18,850,000 was available for drawdown under the above loans. The annual principal payments to be made, for the abovementioned loans, after December 31, 2020, and after taking into account the refinancing arrangements, are as follows:
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Fair Value Disclosures | 12. Derivatives and Fair Value Disclosures The Company uses interest rate swaps for the management of interest rate risk exposure. The interest rate swaps effectively convert a portion of the Company’s debt from a floating to a fixed rate. The Company is a party to six floating-to-fixed The following table presents information relating to the Company’s interest rate swap arrangements as of December 31, 2019 and 2020.
The following tables present information on the location and amounts of derivatives’ fair values reflected in the consolidated balance sheets and with respect to gains and losses on derivative positions reflected in the consolidated statements of operations or in the consolidated balance sheets, as a component of accumulated other comprehensive loss. Tabular disclosure of financial instruments is as follows:
The effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 is as follows:
The components of accumulated other comprehensive income/(loss) included in the accompanying consolidated balance sheets consist of unrealized gain / (loss) on cash flow hedges and are analyzed as follows:
The estimated net amount of existing gains at December 31, 2020, that will be reclassified into earnings within the next twelve months relating to previously designated cash flow hedges is $60,787. Fair Value of Financial Instruments and Concentration of Credit Risk non-performance by its counterparties to derivative instruments; however, the Company limits its exposure by transacting with counterparties with high credit ratings. The carrying values of cash and cash equivalents, restricted cash, trade and other receivables, claims receivable, payable to related parties, trade accounts payable and accrued liabilities are reasonable estimates of their fair value due to the short term nature of these financial instruments. Cash and cash equivalents and restricted cash are considered Level 1 items as they represent liquid assets with short-term maturities. The fair value of long term bank loans is estimated based on current rates offered to the Company for similar debt of the same remaining maturities. Their carrying value approximates their fair market value due to their variable interest rate, being LIBOR. LIBOR rates are observable at commonly quoted intervals for the full terms of the loans and hence floating rate loans are considered Level 2 items in accordance with the fair value hierarchy. Additionally, the Company considers the creditworthiness of each counterparty when determining the fair value of the derivative instruments. The Company’s interest rate swap agreements are recorded at fair value. The fair value of the interest rate swaps is determined using a discounted cash flow method based on market-based LIBOR swap yield curves. LIBOR swap rates are observable at commonly quoted intervals for the full terms of the swap and therefore are considered Level 2 items. Fair Value Disclosures: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The following table presents the fair values for assets and liabilities measured on a recurring basis categorized into a Level based upon the lowest level of significant input to the valuations as of December 31, 2019:
The following table presents the fair values for assets and liabilities measured on a recurring basis categorized into a Level based upon the lowest level of significant input to the valuations as of December 31, 2020:
The following tables present the fair values for assets measured on a non-recurring basis categorized into a Level based upon the lowest level of significant input to the valuations:
As a result of the impairment analyses performed as of December 31, 2019, two of the Company’s vessels (held and used) were written down to their estimated fair value as determined by the Company based on vessel valuations, obtained from independent third party shipbrokers, which are mainly based on recent sales and purchase transactions of similar vessels, resulting in an impairment charge of $993,916.
As a result of the impairment analysis performed as of December 31, 2020, one of the Company’s vessels (held and used) was written down to its estimated fair value as determined by the Company based on vessel valuations, obtained from independent third party shipbrokers, which are mainly based on recent sales and purchase transactions of similar vessels, resulting in an impairment charge of $714,895. |
Capital Stock, Treasury Stock and Additional Paid-in Capital |
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Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Capital Stock, Treasury Stock and Additional Paid-in Capital | 13. Capital Stock, Treasury Stock and Additional Paid-in Capital The amounts shown in the accompanying consolidated balance sheets as additional paid-in capital, represent payments made by the stockholders for the acquisitions of the Company’s vessels, or investments in the Company’s common stock. On May 23, 2019, the Company’s Board of Directors approved the extension of the existing stock repurchase plan for an additional amount of $10,000,000 to be used for repurchasing the Company’s common shares. For the year ended December 31, 2019, the Company completed the repurchase of 540,910 shares paying an average price per share of $3.40. For the year ended December 31, 2020, the Company completed the repurchase of 359,792 shares paying an average price per share of $2.81. These shares are held as treasury stock by the Company. For the year ended December 31, 2018, the Company did not make any repurchase of its common shares. On March 31, 2020, the Company announced the commencement of a tender offer to purchase up to 4,761,904 shares using funds available from cash and cash equivalents at a price of $2.10 per share. This tender offer expired on April 28, 2020 and 1,366,045 shares were repurchased. Shares repurchased were cancelled. |
Equity Compensation Plan |
12 Months Ended |
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Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plan | 14. Equity Compensation Plan In 2015 the Company’s shareholders and board of directors adopted an Equity Compensation Plan (“the Plan”), which replaced the Company’s previous equity compensation plan which was adopted in 2007 and expired in 2015 (the “2007 Plan”) under which the Company’s employees, directors or other persons or entities providing significant services to the Company or its subsidiaries are eligible to receive stock-based awards including restricted stock, restricted stock units, unrestricted stock, bonus stock, performance stock and stock appreciation rights. The Plan is administered by the Compensation Committee of the Company’s board of directors and the aggregate number of shares of common stock reserved under this plan cannot exceed 10% of the number of shares of Company’s common stock issued and outstanding at the time any award is granted. The Company’s Board of Directors may terminate the Plan at any time. As of December 31, 2020, a total of 555,479 restricted shares had been granted under the 2007 Plan since the first grant in the third quarter of 2007 and 264,621 awards have been granted under the Plan. On August 23, 2018, the Company granted 264,621 of non-vested restricted shares under the Plan to the Company’s CEO, non-executive members of Board of Directors of the Company and employees of the Manager. The fair value of each share granted was $3.59 which is equal to the market value of the Company’s common stock on that day. The restricted shares vested on August 23, 2019 i.e. one year after the grant date.All unvested restricted shares are conditional upon the option holder’s continued service as an employee of the Company, or as a director until the applicable vesting date. Until the forfeiture of any restricted shares, the grantee has the right to vote such restricted shares, to receive and retain all regular cash dividends paid on such restricted shares and to exercise all other rights provided that the Company will retain custody of all distributions other than regular cash dividends made or declared with respect to the restricted shares. The Company pays dividends on all restricted shares regardless of whether they have vested and there is no obligation of the employee to return the dividend when employment ceases. The Company did not pay any dividends in the years ended December 31, 2018, 2019 and 2020. Management has selected the accelerated method with respect to recognizing stock based compensation expense for restricted share awards with graded vesting because it considers this method to better match expense with benefits received. The stock based compensation expense for the vested and non-vested shares for the years ended December 31, 2018, 2019 and 2020 amounted to $338,356, $611,644 and nil, respectively, and is included in the consolidated statements of operations under the caption “General and administrative expenses”. No non-vested shares existed as of December 31, 2019 and 2020. The total fair value of shares vested during the years ended December 31, 2018, 2019 and 2020 was nil, $844,141 and nil, respectively, based on the closing share price at each vesting date. |
Earnings/(loss) per share |
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Earnings/(loss) per share | 15. Earnings/(loss) per share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share give effect to all potentially dilutive securities. All of the Company’s shares (including non-vested restricted stock issued under the Plan) participate equally in dividend distributions and in undistributed earnings. The Company applies the two-class method of computing earnings per share (EPS) as the unvested share-based payment awards that contain rights to receive non forfeitable dividends are participating securities. Dividends declared during the period for non-vested restricted stock as well as undistributed earnings allocated to non-vested stock are deducted from net income for the purpose of the computation of basic earnings per share in accordance with the two-class method. The denominator of the basic earnings per common share excludes any non-vested shares as such they are not considered outstanding until the time-based vesting restriction has elapsed. For purposes of calculating diluted earnings per share, dividends declared during the period for non-vested restricted stock and undistributed earnings allocated to non-vested stock are not deducted from net income as reported since such calculation assumes non-vested restricted stock is fully vested from the grant date. The Company calculates basic and diluted earnings per share as follows:
Non-vested, participating restricted common stock does not have a contractual obligation to share in the losses and was therefore, excluded from the basic loss per share calculations for the year ended December 31, 2018. The Company excluded the dilutive effect of 264,621
non-vested share awards in calculating dilutive EPS for its common shares as of December 31, 2018, as they were anti-dilutive. |
Revenues |
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Revenues | 16. Revenues The amounts in the accompanying consolidated statements of operations are analyzed as follows:
The amount of revenue earned as demurrage relating to the Company’s voyage charters for the years ended December 31, 2018, 2019 and 2020 was $4.7 million, $2.0 million and $2.4 million, respectively and is included within “Voyage charter revenues” in the above table. As of December 31, 2019 and 2020, the Company recognized $118,246 and $309,608, respectively, of contract fulfillment costs which mainly represent bunker expenses incurred prior to commencement of loading relating to the Company’s voyage charters. These costs are recorded in “Other current assets” in the consolidated balance sheets. As of December 31, 2018, 2019 and 2020, revenues relating to undelivered performance obligations of the Company’s voyage charters amounted to $821,577, $439,135 and $1,353,290, respectively. The Company recognized these amounts as revenues in the first quarters of 2019, 2020 and 2021, respectively. Four of the time charters entered into in 2014, also grant the charterer an option to purchase the respective vessels during the time charter period, at stipulated prices, decreasing on a
pro-rated basis by a fixed amount per year until the expiration of the time charters in 2022. |
Vessel Operating Expenses |
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Vessel Operating Expenses | 17. Vessel Operating Expenses The amounts in the accompanying consolidated statements of operations are analyzed as follows:
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Income Taxes |
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Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 18. Income Taxes Under the laws of the countries of the companies’ incorporation and/or vessels’ registration, the companies are not subject to tax on international shipping income, however, they are subject to registration and tonnage taxes, which have been included in Vessel operating expenses in the consolidated statements of operations. Pursuant to the Internal Revenue Code of the United States (the “Code”), U.S. source income from the international operations of ships is generally exempt from U.S. tax if the Company operating the ships meets certain 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 Company’s ship-operating subsidiaries satisfy these initial criteria. In addition, these companies must be more than 50% owned by individuals who are residents, as defined, in the country of incorporation or another foreign country that grants an equivalent exemption to U.S. corporations. These companies also currently satisfy the more than 50% beneficial ownership requirement. In addition, the management of the Company believes that by virtue of a special rule applicable to situations where the ship-operating companies are beneficially owned by a publicly traded company like the Company, the more than 50% beneficial ownership requirement can also be satisfied based on the trading volume and the anticipated widely-held ownership of the Company’s shares, but no assurance can be given that this will remain so in the future, since continued compliance with this rule is subject to factors outside the Company’s control. |
Commitments and Contingencies |
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Commitments and Contingencies | 19. Commitments and Contingencies
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Leases - The Company as Lessee |
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Leases - The Company as Lessee | 20. Leases – The Company as Lessee In November and December 2014, the Company sold the vessels Gas Premiership and Gas Cathar and realized a total gain of $780,695. The Company entered into bareboat charter agreements to leaseback the vessels for a period of four years. The charter back agreements are accounted for as operating leases and the gain on the sale was deferred and is being amortized to income over the four-year lease period. For the years ended December 31, 2018, 2019 and 2020, the amortization amounted to $190,087, nil The Company charters in vessels to supplement its own fleet and employs them both on time charters and voyage charters. The time charter-in contracts range in lease terms from 1 year to 5 years . The Company elected the practical expedient of ASC 842 that allows for time charter-in contracts with an initial lease term of one year or less to be excluded from the operating lease right-of-use right-of-use charter-in contracts with a lease term of more than one year at the commencement of the lease. The Company will continue to recognize the lease payments for all vessel operating leases as charter hire expenses in the consolidated statements of operations on a straight-line basis over the lease term. Under ASC 842, leases are classified as either finance or operating arrangements, with such classification affecting the pattern and classification of expense recognition in an entity’s income statement. For operating leases, ASC 842 requires recognition in an entity’s income statement of a single lease expense, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. Right-of-use The Company used the incremental borrowing rate which amounted to 5.6% at January 1, 2019 for the lease contract for which the Company recorded operating lease right-of-use The Company had one time charter-in contract for one vessel, which was greater than 12 months at lease commencement date as of the date of adoption of ASC 842. This contract related to the amendment of the existing bareboat charter agreement for Gas Cathar signed on December 16, 2016, resulting in the extension of the charter period to five years and three months from the delivery date i.e. until March 2020 at a monthly charter hire of $130,000. The Company had entered into two time charter-in contracts in 2018 for the vessels Astrid and Kazak which were for a period of twelve months. Lease payments relating to the time charters of these vessels, amounted to $4,708,988 for the year ended December 31, 2019 and are included in Charter hire expenses in the consolidated statements of operations (2018: $2,906,617).Office lease In January 2019, the Company renewed its contract to lease office space from a related party (Note 3) for a period until December 2020 at an amount of EUR 6,500 ($7,345) per month. The Company determined the office lease to be an operating lease and recorded the related right-of-use-assets within operating lease right-of-use-assets and the lease liabilities within operating lease liabilities in the consolidated balance sheets as of January 1, 2019 and December 31, 2019 and the lease expense within General and administrative expenses in the consolidated statement of operations for the years ended December 31, 2018, 2019 and 2020 (Note 3). Lease Disclosures Under ASC 842 Operating lease right-of-use assets and lease liabilities as of December 31, 2019 and 2020 as follows:
The Operating lease right-of-use The table below presents the components of the Company’s lease expenses and sub-lease income on a gross basis earned from chartered-in contracts greater than 12 months:
The cash paid for operating leases with terms greater than 12 months is $408,727 for the year ended December 31, 2020 (2019: $1,647,192). The Company did not enter into any operating leases greater than 12 months for the years ended December 31, 2019 and 2020 as a lessee. In addition, no operating leases in which the Company is a lessee are outstanding as of December 31, 2020. The weighted average remaining lease term on our operating leases greater than 12 months was 7.5 The table below provides the total amount of lease payments on an undiscounted basis on our time chartered-in contracts and office leases greater than 12 months as of December 31, 2019:
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Subsequent Events |
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Subsequent Events [Abstract] | |||
Subsequent Events |
In January 2021 , the Company entered into three floating-to-fixed interest swap agreements commencing in and maturing inIn February 2021, the second tranche of the term loan dated April 30, 2020 (Note 11) amounting to $18,850,000 was drawn down in order to partially finance the construction cost of the vessel “Eco Blizzard ” (Note 5). |
Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: |
Use of Estimates | Use of Estimates: |
Other Comprehensive Income | Other Comprehensive Income /(Loss): |
Foreign Currency Translation | Foreign Currency Translation: The functional currency of the Company is the U.S. Dollar because the Company’s vessels operate in international shipping markets, which utilize the U.S. Dollar as the functional currency. The accounting books of the Company are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies, are translated to reflect the period end exchange rates. Resulting gains or losses are separately reflected in the accompanying consolidated statements of operations.
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Cash and Cash Equivalents | Cash and Cash Equivalents: |
Restricted Cash | Restricted Cash: that can only be used to pay the current loan installments or which are required to be maintained as a certain minimum cash balance per mortgaged vessel or funds held in escrow (Note 19). In the event that the obligation relating to such deposits is expected to be terminated within the next twelve months, these deposits are classified as current assets; otherwise they are classified as non-current assets. |
Trade Receivables | Trade Receivables: un-collectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. No provision for doubtful accounts was required for any of the periods presented. |
Claims Receivable | Claims Receivable: |
Inventories | Inventories: Inventories consist of bunkers (for vessels under voyage charter or on ballast or idle) and lubricants which are stated at the lower of cost and net realizable value. The cost is determined by the first-in, first-out method. The Company considers victualing and stores as being consumed when purchased and, therefore, such costs are expensed when incurred. |
Advances for vessels under construction | Advances for vessels under construction: This represents amounts expended by the Company in accordance with the terms of the construction contracts for vessels as well as other expenses in connection with on-site supervision. In addition, interest costs incurred during the construction (until the asset is substantially complete and ready for its intended use) are capitalized. |
Vessels Acquisitions | Vessels Acquisitions: Vessels are stated at cost less depreciation and impairment, if any. Cost consists of the contract price less discounts and any material expenses incurred upon acquisition (initial repairs, improvements, acquisition and expenditures made to prepare the vessel for its initial voyage). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels, or otherwise are charged to expenses as incurred. Where vessels are acquired with existing time charters, the Company allocates the purchase price to the vessels and to the attached time charters on the basis of their relative fair values. The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction and increase, respectively, to revenues over the remaining term of the charter. |
Impairment or Disposal of Long-lived Assets | Impairment or Disposal of Long-lived Assets: Accounting Standards Codification (“ASC”) Subtopic 360-10, 360-10”), for recorded as an impairment loss in the consolidated statements of operations. Various factors including anticipated future charter rates, estimated scrap values, future dry-docking costs and estimated vessel operating costs are included in this analysis. These factors are based on historical trends as well as future expectations. Undiscounted cash flows are determined by considering the revenues from existing charters for those vessels that have long term employment and when there is no charter in place the estimates based on historical average rates. An impairment loss was identified and recorded for the years ended December 31, 2018, 2019 and 2020 (Note 6). |
Vessels' Depreciation | Vessels’ Depreciation: The cost of each of the Company’s vessels is depreciated on a straight-line basis over the vessel’s remaining economic useful life, after considering the estimated residual value. Management estimates the useful life of each of the Company’s LPG carriers to be 30 years and product and aframax tankers, to be 25 years, from the date of their construction. |
Assets Held for Sale | Assets Held for Sale: 360-10, a loss is recognized for any reduction of the vessel’s carrying amount to its fair value less cost to sell. No assets were held for sale as of December 31, 2019 and 2020. |
Segment Reporting | Segment Reporting: |
Accounting for Special Survey and Dry-docking Costs | Accounting for Special Survey and Dry-docking Costs:dry-docking costs are expensed in the period incurred. |
Deferred Finance Charges | Deferred Finance Charges: non-current assets in the consolidated balance sheet. |
Accounting for Revenue and Related Expenses | Accounting for Revenue and Related Expenses: A time charter is a contract for the use of a vessel for a specific period of time and a specified daily charter hire rate, which is generally payable in advance. Operating costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubricants are paid for by the Company under time charter agreements. A time charter generally provides typical warranties and owner protective restrictions. The performance obligations in a time charter are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the owner of the vessel. Some of the Company’s time charters may also contain profit sharing provisions, under which the Company can realize additional revenues in the event that spot rates are higher than the base rates in these time charters. A bareboat charter is a contract in which the vessel owner provides the vessel to the charterer for a fixed period of time at a specified daily rate, which is generally payable in advance, and the charterer generally assumes all risk and costs of operation during the bareboat charter period. The Company’s time charter and bareboat contracts are classified as operating leases pursuant to Accounting Standards Codification (“ASC”) 842 - Leases, and therefore do not fall under the scope of Accounting Standards Codification (“ASC”) 606 because (i) the vessel is an identifiable asset (ii) the owner of the vessel 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. Time charter and bareboat revenues are recognized when a charter agreement exists, the vessel is made available to the charterer and collection of the related revenue is reasonably assured. Time charter and bareboat charter revenues are recognized as earned on a straight-line basis over the term of the charter as service is provided. Revenues from profit sharing arrangements in time charters are recognized in the period earned. Under time and bareboat charter agreements, all voyages expenses, except commissions are assumed by the charterer. On implementation of ASC 842, the Company, elected to make use of a practical expedient for lessors, not to separate the lease and non-lease components included in the time charter revenue but rather to recognize operating lease revenue as a combined single lease component for all time charter contracts as the related lease component, the hire of a vessel, and the non-lease component, the fees for operating and maintaining the vessel, have the same timing and pattern of transfer (both the lease and non-lease components are earned by passage of time) and the predominant component is the lease. A voyage charter is a contract, in which the vessel owner undertakes to transport a specific amount and type of cargo on a load port-to-discharge port basis, subject to various cargo handling terms. The Company accounts for a voyage charter when all the following criteria are met: (1) the parties to the contract have approved the contract in the form of a written charter agreement and are committed to perform their respective obligations, (2) the Company can identify each party’s rights regarding the services to be transferred, (3) the Company can identify the payment terms for the services to be transferred, (4) the charter agreement has commercial substance (that is, the risk, timing, or amount of the Company’s future cash flows is expected to change as a result of the contract) and (5) it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the services that will be transferred to the charterer. The Company determined that its voyage charters consist of a single performance obligation which is met evenly as the voyage progresses and begins to be satisfied once the vessel is ready to load the cargo. The voyage charter party agreement generally has a demurrage clause according to which the charterer reimburses the vessel owner for any potential delays exceeding the allowed lay-time as per the charter party clause at the ports visited which is recorded as demurrage revenue. Revenues from voyage charters are recognized on a straight line basis over the voyage duration which commences once the vessel is ready to load the cargo and terminates upon the completion of the discharge of the cargo. Demurrage revenues are recognized when the amount can be estimated and its collection is probable. In voyage charters, vessel operating and voyage expenses are paid for by the Company. The voyage charters are considered service contracts which fall under the provisions of ASC 606 because the Company retains control over the operations of the vessels such as the routes taken or the vessels’ speed. Deferred income represents cash received for undelivered performance obligations and deferred revenue resulting from straight-line revenue recognition in respect of charter agreements that provide for varying charter rates. The portion of the deferred revenue that will be earned within the next twelve months is classified as current liability and the remaining as long-term liability. Vessel voyage expenses are direct expenses to voyage revenues and primarily consist of brokerage commissions, port expenses, canal dues and bunkers. Brokerage commissions are paid to shipbrokers for their time and efforts for negotiating and arranging charter party agreements on behalf of the Company and expensed over the related charter period and all the other voyage expenses are expensed as incurred except for expenses during the ballast portion of the voyage. Any expenses incurred during the ballast portion of the voyage (period between the contract date and the date of the vessel’s arrival to the load port) such as bunker expenses, canal tolls and port expenses are deferred and are recognized on a straight-line basis, in voyage expenses, over the voyage duration as the Company satisfies the performance obligations under the contract provided these costs are (1) incurred to fulfill a contract that the Company can specifically identify, (2) able to generate or enhance resources of the company that will be used to satisfy performance of the terms of the contract, and (3) expected to be recovered from the charterer. These costs are considered ‘contract fulfillment costs’ and are included in ‘other current assets’ in the accompanying consolidated balance sheets. Vessel operating expenses comprise all expenses relating to the operation of the vessel, including crewing, repairs and maintenance, insurance, stores, lubricants and other operating expenses. Vessel operating expenses are expensed as incurred. Under a bareboat charter, the charterer assumes responsibility for all voyage and vessel operating expenses, dry-docking expenses and risk of operation. |
Equity Compensation Plan | Equity Compensation Plan: Share-based compensation includes vested and non-vested shares granted to employees of the Company, to employees of the Manager and to non-employee directors, for their services as directors and is included in General and administrative expenses in the consolidated statements of operations. These shares are measured at their fair value, which is equal to the market value of the Company’s common stock on the grant date. The shares that do not contain any future service vesting conditions are considered vested shares and the total fair value of such shares is recognized in full on the grant date. The shares that contain a time-based service vesting condition are considered non-vested shares on the grant date and a total fair value of such shares is recognized over the vesting period on a straight-line basis over the requisite service period for each separate portion of the award as if the award was, in substance, multiple awards (graded vesting attribution method). The Company accounts for forfeitures as they occur (Note 14). |
Earnings/(Loss) per Share | Earnings/(Loss) per Share: two-class method by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised. Dilution is computed by either the treasury stock method or the two–class method, whichever results in the more dilutive effect. Under the treasury stock method, all of the Company’s dilutive securities are assumed to be exercised or converted and the proceeds used to repurchase common shares at the weighted average market price of the Company’s common stock during the relevant periods. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted earnings per share computation to the extent these are not anti-dilutive (Note 15). |
Derivatives | Derivatives (i) Hedge Accounting Contracts which meet the strict criteria for hedge accounting are accounted for as cash flow hedges. A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a highly probable forecasted transaction that could affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognized directly as a component of “Accumulated other comprehensive income” in equity, while the ineffective portion, if any, is recognized immediately in current period earnings. The Company discontinues cash flow hedge accounting if the hedging instrument expires and it no longer meets the criteria for hedge accounting or designation is revoked by the Company. At that time, any cumulative gain or loss on the hedging instrument recognized in equity is kept in equity until the forecasted transaction occurs. When the forecasted transaction occurs, any cumulative gain or loss on the hedging instrument is recognized in the statement of income. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in equity is transferred to net profit or loss for the year as a component of “Loss on derivatives”. (ii)
Other Derivatives |
Investments in joint ventures | Investments in joint ventures: and the resulting impairment is recorded in the consolidated statements of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements : In March 2020, the Financial Accounting Standards Board issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”).” ASU 2020-04 provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued Accounting Standard Update (“ASU”) 2021-01 (Topic 848), which amends and clarifies the existing accounting standard issued in March 2020 (“ASU”) 2020-04 for Reference Rate Reform. Reference rates such as LIBOR, are widely used in a broad range of financial instruments and other agreements. The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities under way in global financial markets (the “discounting transition”). The ASU 2020-04 is effective for adoption at any time between March 12, 2020 and December 31, 2022, for all entities and the ASU 2021-01 is effective for all entities as of January 7, 2021 through December 31, 2022. The Company is currently evaluating the impact of this standard in its consolidated financial statements and related disclosures. |
Transactions with Related Parties (Tables) |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Charged By Our Related Parties | The amounts charged by the Company’s related parties comprised the following:
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | The amounts shown in the accompanying consolidated balance sheets are analyzed as follows:
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Advances for Vessel Under Construction and Acquisitions (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Advances for vessel under construction and acquisitions | For the years ended December 31, 2019 and 2020, the movement of the account, advances for vessel under construction and acquisitions was as follows:
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Vessels, net (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Vessels, Net | The amounts shown in the accompanying consolidated balance sheets are analyzed as follows:
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Investments in Joint Ventures (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | A condensed summary of the financial information for equity accounted investments partially owned by the Company shown on a 100% basis is as follows:
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Accrued Liabilities (Tables) |
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Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | The amounts shown in the accompanying consolidated balance sheets are analyzed as follows:
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Long-term Debt (Tables) |
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Schedule of Debt |
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Schedule of Maturities of Long-term Debt | The annual principal payments to be made, for the abovementioned loans, after December 31, 2020, and after taking into account the refinancing arrangements, are as follows:
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Derivatives and Fair Value Disclosures (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table presents information relating to the Company’s interest rate swap arrangements as of December 31, 2019 and 2020.
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Tabular disclosure of financial instruments is as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) | The effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020 is as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income/(loss) included in the accompanying consolidated balance sheets consist of unrealized gain / (loss) on cash flow hedges and are analyzed as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the fair values for assets and liabilities measured on a recurring basis categorized into a Level based upon the lowest level of significant input to the valuations as of December 31, 2019:
The following table presents the fair values for assets and liabilities measured on a recurring basis categorized into a Level based upon the lowest level of significant input to the valuations as of December 31, 2020:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Non-Recurring Basis | The following tables present the fair values for assets measured on a non-recurring basis categorized into a Level based upon the lowest level of significant input to the valuations:
|
Earnings/(loss) per share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share Calculation | The Company calculates basic and diluted earnings per share as follows:
|
Revenues (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Analysis of Consolidated Statements of Operations | The amounts in the accompanying consolidated statements of operations are analyzed as follows:
|
Vessel Operating Expenses (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessel Operating Expenses | The amounts in the accompanying consolidated statements of operations are analyzed as follows:
|
Commitments and Contingencies (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||
Commitments And Contingencies Disclosures [Abstract] | ||||||||||||||||||||||||||||||
Summary of future outstanding commitments |
|
Leases - The Company as Lessee (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time charterin contracts [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating leases | Operating lease right-of-use assets and lease liabilities as of December 31, 2019 and 2020 as follows:
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Schedule of company's lease expenses and sub-lease income | The table below presents the components of the Company’s lease expenses and sub-lease income on a gross basis earned from chartered-in contracts greater than 12 months:
|
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Schedule of total amount of lease payments on an undiscounted basis | The table below provides the total amount of lease payments on an undiscounted basis on our time chartered-in contracts and office leases greater than 12 months as of December 31, 2019:
|
Significant Accounting Policies - Additional Information (Detail) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020
USD ($)
Segment
|
Dec. 31, 2019
USD ($)
|
|
Significant Accounting Policies [Line Items] | ||
Allowance for doubtful accounts receivable | $ | $ 0 | $ 0 |
Disposal group, including discontinued operation | $ | $ 0 | $ 0 |
Number of reportable segments | Segment | 1 | |
Number of operating segments | Segment | 1 | |
LPG [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 30 years | |
Product carriers [Member] | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 25 years |
Inventories - Schedule of Inventory, Current (Detail) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Bunkers | $ 2,152,601 | $ 1,112,667 |
Lubricants | 1,534,497 | 1,335,036 |
Total | $ 3,687,098 | $ 2,447,703 |
Advances for Vessel Under Construction and Acquisitions - Additional Information (Detail) - USD ($) |
Feb. 05, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Investments in and Advances to Affiliates [Line Items] | ||||
Advances for vessel under construction and acquisitions | $ 6,539,115 | $ 2,988,903 | $ 0 | |
Eco Blizzard [Member] | Subsequent Event [Member] | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Advances for vessel under construction and acquisitions | $ 23,152,125 |
Advances for Vessel Under Construction and Acquisitions - Summary of Advances for Vessels Under Construction and Acquisitions (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ||
Beginning balance | $ 2,988,903 | $ 0 |
Advance for vessel under construction | 2,891,283 | 2,891,283 |
Capitalized interest | 168,344 | 97,620 |
Supervision fees | 210,970 | |
Other Capitalized Expenses | 279,615 | |
Ending balance | $ 6,539,115 | $ 2,988,903 |
Vessels, Net - Summary of Vessels, Net (Detail) - USD ($) |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Property, Plant and Equipment [Abstract] | ||||
Vessel cost, Balance | $ 1,087,601,983 | $ 1,105,413,815 | ||
Vessel cost, Additions | 44,894,678 | |||
Vessel cost, Impairment loss | (14,511,735) | (3,250,000) | ||
Vessel cost, Disposals | (6,500,000) | (14,561,832) | ||
Vessel cost, Balance | $ 1,111,484,926 | 1,111,484,926 | 1,087,601,983 | $ 1,105,413,815 |
Accumulated Depreciation, Balance | (252,449,580) | (220,665,124) | ||
Accumulated Depreciation, Impairment loss | 10,654,428 | 2,256,084 | ||
Accumulated Depreciation, Disposals | (100,378) | (3,653,193) | ||
Accumulated Depreciation, Depreciation for the year | (37,455,093) | (37,693,733) | ||
Accumulated Depreciation, Balance | (279,149,867) | (279,149,867) | (252,449,580) | (220,665,124) |
Net Book Value, Balance | 835,152,403 | 884,748,691 | ||
Net Book Value, Additions | 44,894,678 | |||
Net Book Value, Impairment loss | (3,857,307) | (993,916) | (11,351,821) | |
Net Book Value, Disposals | (6,399,622) | (10,908,639) | ||
Net Book Value, Depreciation for the year | (170,884) | (37,455,093) | (37,693,733) | (41,258,142) |
Net Book Value, Balance | $ 832,335,059 | $ 832,335,059 | $ 835,152,403 | $ 884,748,691 |
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Schedule Of Accrued Liabilities [Abstract] | ||
Interest on long-term debt | $ 1,887,414 | $ 2,790,621 |
Administrative expenses | 209,553 | 205,184 |
Vessel operating and voyage expenses | 1,676,532 | 3,006,274 |
Total | $ 3,773,499 | $ 6,002,079 |
Deferred Income - Additional Information (Detail) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | $ 2,995,657 | $ 2,843,994 |
Time and Bareboat Deferred Revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue, current | $ 2,995,657 | $ 2,843,994 |
Customer Deposits - Additional Information (Detail) - USD ($) |
May 30, 2019 |
Mar. 07, 2018 |
Oct. 12, 2015 |
Feb. 21, 2015 |
Dec. 31, 2020 |
---|---|---|---|---|---|
Spike [Member] | |||||
Deposits [Line Items] | |||||
Proceeds from deposits from customers | $ 1,820,700 | ||||
Repayment of deposits from customers | $ 1,220,700 | ||||
Deposits from customers kept as guarantee | $ 600,000 | ||||
Navig8 Faith [Member] | |||||
Deposits [Line Items] | |||||
Proceeds from deposits from customers | $ 736,000 | ||||
Repayment of deposits from customers | $ 368,000 | ||||
Deposits from customers kept as guarantee | $ 368,000 |
Long-term Debt - Schedule of Maturities of Long-term Debt (Detail) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Maturities of Long-term Debt [Abstract] | ||
2021 | $ 41,161,686 | |
2022 | 72,773,038 | |
2023 | 65,392,513 | |
2024 | 34,928,954 | |
2025 | 53,314,974 | |
Thereafter | 85,958,292 | |
Total | $ 353,529,457 | $ 368,229,303 |
Derivatives and Fair Value Disclosures - Additional Information (Detail) |
Dec. 31, 2020
USD ($)
DerivativeInstrument
|
Dec. 31, 2019
USD ($)
DerivativeInstrument
|
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 81,072,250 | $ 111,789,084 |
Cash Flow Hedge Gain Loss To Be Reclassified During Next Twelve Months | 60,787 | |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 81,072,250 | $ 111,789,084 |
Number of instruments | DerivativeInstrument | 9 | 9 |
Derivatives and Fair Value Disclosures - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (2,259,043) | ||
Reclassification adjustment | 60,954 | $ 84,966 | |
Ending balance | (4,952,823) | (2,259,043) | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (2,259,043) | 673,979 | $ 617,895 |
Effective portion of changes in fair value of interest swap contracts | (2,632,826) | (2,848,056) | 56,084 |
Reclassification adjustment | (60,954) | (84,966) | |
Ending balance | $ (4,952,823) | $ (2,259,043) | $ 673,979 |
Derivatives and Fair Value Disclosures - Additional Information - 2 (Detail) - USD ($) |
6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Derivatives, Fair Value [Line Items] | |||||
Depreciation, total | $ 170,884 | $ 37,455,093 | $ 37,693,733 | $ 41,258,142 | |
Impairment of long-lived assets to be disposed of | $ 305,607 | 714,895 | |||
Tangible Asset Impairment Charges | 993,916 | ||||
Property, Plant and Equipment, Net | 832,335,059 | 832,335,059 | $ 835,152,403 | $ 884,748,691 | |
Gas Pasha And Gas Evoluzione [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Property, Plant and Equipment, Net | $ 2,829,116 | $ 2,829,116 |
Capital Stock, Treasury Stock and Additional Paid-in Capital - Additional Information (Detail) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
May 23, 2019 |
|
Stockholders' Equity Note [Abstract] | ||||
Stock repurchased during period, share | 1,366,045 | |||
Treasury stock acquired, average cost per share | $ 3.40 | $ 2.81 | ||
Treasury stock, shares, acquired | 540,910 | 359,792 | ||
Stock repurchase program, authorized amount, additional | $ 10,000,000 | |||
Stock Issued During Period, Shares, Acquisitions | 4,761,904 | |||
Shares Issued, Price Per Share | $ 2.10 | |||
Stock Repurchase Program Expiration Date | Apr. 28, 2020 |
Earnings/(loss) per share - Basic and Diluted Earnings Per Share Calculation (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Earnings Per Share [Abstract] | |||
Net (loss)/income | $ 11,984,485 | $ 2,093,124 | $ (12,276,520) |
Less: Undistributed earnings allocated to non-vested shares | 0 | (8,922) | 0 |
Net (loss)/income attributable to common shareholders, basic | $ 11,984,485 | $ 2,084,202 | $ (12,276,520) |
Weighted average number of shares outstanding, basic and diluted | 38,357,893 | 39,800,434 | 39,860,563 |
(Loss)/earnings per share, basic and diluted | $ 0.31 | $ 0.05 | $ (0.31) |
Earnings/(loss) per share - Additional Information (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2018
shares
| |
Earnings Per Share [Abstract] | |
Dilutive effect excluded from computation of earnings per share | 264,621 |
Revenues - Summary of Analysis of Consolidated Statements of Operations (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 145,003,021 | $ 144,259,312 | $ 164,330,202 |
Total revenues | 145,003,021 | 144,259,312 | 164,330,202 |
Time Charter [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 101,837,425 | 97,249,537 | 104,099,818 |
Bareboat [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 16,876,956 | 21,764,102 | 24,646,311 |
Voyage Charter [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 25,161,401 | 24,018,198 | 34,266,082 |
Other Income Revenues [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,127,239 | $ 1,227,475 | $ 1,317,991 |
Revenues - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 145,003,021 | $ 144,259,312 | $ 164,330,202 |
Unearned revenue | 1,353,290 | 439,135 | 821,577 |
Voyage Charters [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract fulfilment cost | 309,608 | 118,246 | |
Voyage Charters [Member] | Demurrage [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 2,400,000 | $ 2,000,000.0 | $ 4,700,000 |
Vessel Operating Expenses - Vessel Operating Expenses (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Vessel Operating Expenses [Abstract] | |||
Crew wages and related costs | $ 32,073,496 | $ 30,874,618 | $ 36,628,082 |
Insurance | 1,889,041 | 2,162,523 | 2,068,485 |
Repairs and maintenance | 6,590,006 | 5,677,033 | 7,359,816 |
Spares and consumable stores | 7,990,022 | 7,783,902 | 8,907,211 |
Miscellaneous expenses | 4,752,656 | 3,088,018 | 5,471,184 |
Total | $ 53,295,221 | $ 49,586,094 | $ 60,434,778 |
Commitments and Contingencies - Summary Of Future Outstanding Commitments (Detail) |
Dec. 31, 2020
USD ($)
|
---|---|
Commitments And Contingencies Disclosure [Line Items] | |
2021 | $ 23,152,125 |
Total | $ 23,152,125 |
Leases - The Company as Lessee - Schedule of operating leases (Detail) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Lessee, Lease, Description [Line Items] | ||
Non current assets | $ 0 | $ 473,132 |
Liabilities | 473,132 | |
Chartered-in contract greater than 12 months [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Non current assets | 386,388 | |
Liabilities | 386,388 | |
Office leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Non current assets | 86,744 | |
Liabilities | $ 86,744 |
Leases - The Company as Lessee - Schedule of company's lease expenses and sub-lease income (Detail) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|||
Sub lease income from chartered-in contracts greater than 12 months | $ 0 | |||
Time Charter In Contracts [Member] | ||||
Sub lease income from chartered-in contracts greater than 12 months | 0 | $ 482,879 | ||
Charter Hire Expenses [Member] | ||||
Lease expense for chartered-in contracts 12 months or less | 4,708,988 | |||
Lease expense for chartered-in contracts greater than 12 months | 318,606 | 1,560,000 | ||
Total charter hire expenses | 318,606 | 6,268,988 | ||
General and Administrative Expense [Member] | ||||
Lease expense for office leases | 90,121 | 87,192 | ||
Revenue [member] | ||||
Sub lease income from chartered-in contracts greater than 12 months | [1] | $ 860,227 | $ 3,091,390 | |
|
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