PERFORMANCE SHIPPING INC. | |
(Registrant)
|
|
Dated: August 5, 2022
|
/s/ Andreas Michalopoulos
|
By: Andreas Michalopoulos
|
|
Chief Executive Officer
|
• |
Ownership days. We define ownership days as
the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses
that we record during a period.
|
• |
Available days. We define available days as
the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys, including the aggregate amount of time that we spend
positioning our vessels for such events. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.
|
• |
Operating days, including ballast leg. We
define operating days, including ballast leg, as the number of available days in a period less the aggregate number of days that our vessels are off-hire. The specific calculation counts as on-hire the days of the ballast leg of the spot
voyages, as long as a charter party is in place. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
|
• |
Fleet utilization. We calculate fleet
utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company’s efficiency in finding suitable employment
for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades and special surveys, including vessel positioning for such events.
|
• |
Time Charter Equivalent (TCE) rates. We
define TCE rates as our voyage and time charter revenues, less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port
charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels despite changes in the
mix of charter types (i.e., voyage (spot) charters, time charters, and bareboat charters).
|
• |
Daily Operating Expenses. We define daily
operating expenses as total vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores,
lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses divided by total ownership days for the relevant period.
|
For the six months ended June 30,
|
||||||||
2022
|
2021
|
|||||||
Ownership days
|
905
|
905
|
||||||
Available days
|
875
|
865
|
||||||
Operating days, including ballast leg
|
855
|
705
|
||||||
Fleet utilization
|
97.7
|
%
|
81.5
|
%
|
||||
Time charter equivalent (TCE) rate
|
$
|
18,888
|
$
|
8,667
|
||||
Daily operating expenses
|
$
|
6,936
|
$
|
6,386
|
||||
For the six months ended June 30,
|
||||||||
2022
|
2021
|
|||||||
(in thousands of U.S. dollars, except for available days and TCE rate)
|
||||||||
Voyage and time charter revenues
|
$
|
25,275
|
$
|
17,513
|
||||
Less: voyage expenses
|
(8,748
|
)
|
(10,016
|
)
|
||||
Time charter equivalent revenues
|
$
|
16,527
|
$
|
7,497
|
||||
Available days
|
875
|
865
|
||||||
Time charter equivalent (TCE) rate
|
$
|
18,888
|
$
|
8,667
|
• |
the duration of our charters;
|
• |
our decisions relating to vessel acquisitions and disposals;
|
• |
the amount of time that we spend positioning our vessels;
|
• |
the amount of time that our vessels spend in drydock undergoing repairs;
|
• |
maintenance and upgrade work;
|
• |
the age, condition, and specifications of our vessels;
|
• |
levels of supply and demand in the shipping industry; and
|
• |
other factors affecting spot market charter rates for vessels.
|
Results of Operations (Continuing Operations)
|
For the Six Months Ended June 30,
|
|||||||||||||||
2022
|
2021
|
variation
|
% change
|
|||||||||||||
in millions of U.S. dollars
|
||||||||||||||||
Revenue
|
25.3
|
17.5
|
7.8
|
45
|
%
|
|||||||||||
Voyage expenses
|
-8.7
|
-10
|
1.3
|
-13
|
%
|
|||||||||||
Vessel operating expenses
|
-6.3
|
-5.8
|
-0.5
|
9
|
%
|
|||||||||||
Depreciation and amortization of deferred charges
|
-4.1
|
-3.7
|
-0.4
|
11
|
%
|
|||||||||||
General and administrative expenses
|
-3.3
|
-3.0
|
-0.3
|
10
|
%
|
|||||||||||
Provision for credit losses and write offs
|
-0.1
|
0.0
|
-0.1
|
-
|
||||||||||||
Foreign currency (losses) / gains
|
0.1
|
0.0
|
0.1
|
-
|
||||||||||||
Interest and finance costs
|
-1.1
|
-0.9
|
-0.2
|
22
|
%
|
|||||||||||
Interest income
|
0.0
|
0.0
|
0.0
|
-
|
||||||||||||
Net income / (loss) from continuing operations
|
1.8
|
-5.9
|
7.7
|
-131
|
%
|
|||||||||||
Net income / (loss) from discontinued operations
|
- |
0.4 |
-0.4 |
-100 |
% |
Page
|
|
F-2
|
|
F-3
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
|
ASSETS
|
June 30, 2022
|
December 31, 2021
|
||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable, net of provision for credit losses (Note 4)
|
|
|
||||||
Deferred voyage expenses
|
|
|
||||||
Inventories
|
|
|
||||||
Prepaid expenses and other assets
|
|
|
||||||
Current assets from discontinued operations (Note 3)
|
|
|
||||||
Total current assets
|
|
|
||||||
FIXED ASSETS:
|
||||||||
Advances for vessel acquisitions (Note 6) |
||||||||
Vessels, net (Note 6)
|
|
|
||||||
Property and equipment, net
|
|
|
||||||
Total fixed assets
|
|
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Right of use asset under operating leases (Note 8)
|
|
|
||||||
Deferred charges, net
|
|
|
||||||
Other non-current assets (Note 6)
|
|
|
||||||
Total non-current assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current portion of long-term bank debt, net of unamortized deferred fin. costs (Note 7)
|
$
|
|
$
|
|
||||
Related party financing, current, net of unamortized deferred fin. costs (Note 5) |
||||||||
Accounts payable, trade and other
|
|
|
||||||
Due to related parties (Note 5)
|
|
|
||||||
Accrued liabilities
|
|
|
||||||
Lease liabilities, current (Note 8)
|
|
|
||||||
Current liabilities from discontinued operations (Note 3)
|
|
|
||||||
Total current liabilities
|
|
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term bank debt, net of unamortized deferred financing costs (Note 7)
|
|
|
||||||
Other liabilities, non-current
|
|
|
||||||
Long-term lease liabilities (Note 8)
|
|
|
||||||
Commitments and contingencies (Note 8)
|
|
|
||||||
Total long-term liabilities
|
|
|
||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Preferred stock, $
|
|
|
||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital (Note 9)
|
|
|
||||||
Other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
2022
|
2021
|
|||||||
REVENUE:
|
||||||||
Revenue (Note 4)
|
$
|
|
$
|
|
||||
EXPENSES:
|
||||||||
Voyage expenses
|
|
|
||||||
Vessel operating expenses
|
|
|
||||||
Depreciation and amortization of deferred charges (Note 6)
|
|
|
||||||
General and administrative expenses (Notes 5 and 9)
|
|
|
||||||
Provision/(reversal) for credit losses and write offs (Note 4)
|
|
(
|
)
|
|||||
Foreign currency losses / (gains)
|
(
|
)
|
|
|||||
Operating income/ (loss)
|
$
|
|
$
|
(
|
)
|
|||
OTHER INCOME / (EXPENSES)
|
||||||||
Interest and finance costs (Notes 5 and 7)
|
(
|
)
|
(
|
)
|
||||
Interest income
|
|
|
||||||
Total other expenses, net
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Net income/(loss) from continuing operations
|
$
|
|
$
|
(
|
)
|
|||
Deemed dividend on Series B preferred stock upon exchange of common stock (Note 9) |
( |
) | ||||||
Dividends on Series B preferred stock (Note 10)
|
( |
) | ||||||
Net loss
attributable to common stockholders from continuing operations
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Net income attributable to common stockholders from discontinued operations (Note 3)
|
$
|
|
$
|
|
||||
Total net loss attributable to common stockholders
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Loss per common share, basic and diluted, continuing operations (Note 10)
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Earnings per common share, basic and diluted, discontinued operations (Note 10)
|
$
|
|
$
|
|
||||
Loss per common share, basic and diluted, total (Note 10)
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Weighted average number of common shares, basic and diluted (Note 10)
|
|
|
2022
|
2021
|
|||||||
Net income/(loss) from continuing and discontinued operations
|
$
|
|
$
|
(
|
)
|
|||
Comprehensive income/(loss) from continuing and discontinued operations
|
$
|
|
$
|
(
|
)
|
Common Stock
|
Preferred Stock
|
Additional
|
Other
|
|||||||||||||||||||||||||||||
# of
|
Par
|
# of
|
Par
|
Paid-in
|
Comprehensive
|
Accumulated
|
||||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Value
|
Capital
|
Income / (Loss)
|
Deficit
|
Total
|
|||||||||||||||||||||||||
Balance, December 31, 2020
|
|
$
|
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||
- Net loss
|
-
|
|
-
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
- Compensation cost on restricted stock & stock options award (Note 9)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance, June 30, 2021
|
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
Balance, December 31, 2021
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||||||
- Net profit
|
- |
|
-
|
|
|
|
|
|
||||||||||||||||||||||||
- Compensation cost on restricted stock awards (Note 9)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
- Common shares exchanged for Series B preferred shares
|
(
|
)
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||||||||||||||||||
- Issuance of common stock under ATM program, net of issuance costs (Note 9)
|
||||||||||||||||||||||||||||||||
- Issuance of units, net of issuance costs (Note 9)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Balance, June 30, 2022
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
2022
|
2021
|
|||||||
Cash Flows used in Operating Activities:
|
||||||||
Net income/ (loss)
|
$
|
|
$
|
(
|
)
|
|||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization of deferred charges (Notes 3 and 6)
|
|
|
||||||
Amortization of deferred financing costs
|
|
|
||||||
Compensation cost on restricted stock and stock option awards (Note 9)
|
|
|
||||||
(Increase) / Decrease in:
|
||||||||
Accounts receivable
|
(
|
)
|
|
|||||
Deferred voyage expenses
|
(
|
)
|
(
|
)
|
||||
Inventories
|
|
(
|
)
|
|||||
Prepaid expenses and other assets
|
(
|
)
|
|
|||||
Right of use asset under operating leases
|
|
|
||||||
Other non-current assets
|
||||||||
Increase / (Decrease) in:
|
||||||||
Accounts payable, trade and other
|
(
|
)
|
|
|||||
Due to related parties
|
(
|
)
|
(
|
)
|
||||
Accrued liabilities
|
|
(
|
)
|
|||||
Other liabilities, non current
|
(
|
)
|
|
|||||
Lease liabilities under operating leases
|
(
|
)
|
(
|
)
|
||||
Drydock costs
|
(
|
)
|
(
|
)
|
||||
Net Cash used in Operating Activities
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Cash Flows used in Investing Activities:
|
||||||||
Advances for vessel acquisitions and other vessel costs (Note 6)
|
(
|
)
|
|
|||||
Payments for vessels’ improvements (Note 6)
|
(
|
)
|
(
|
)
|
||||
Property and equipment additions
|
(
|
)
|
(
|
)
|
||||
Net Cash used in Investing Activities
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Cash Flows provided by / (used in) Financing Activities:
|
||||||||
Proceeds from related party loans (Note 5)
|
||||||||
Proceeds from issuance of common shares, net offering costs | ||||||||
Repayments of long-term bank debt (Note 7)
|
(
|
)
|
(
|
)
|
||||
Issuance of common stock, net of issuance costs (Note 9) | ||||||||
Payments of financing costs (Note 5)
|
(
|
)
|
|
|||||
Net Cash provided by / (used in) Financing Activities
|
$
|
|
$
|
(
|
)
|
|||
Net decrease in cash, cash equivalents and restricted cash
|
$
|
|
$
|
(
|
)
|
|||
Cash, cash equivalents and restricted cash at beginning of the year
|
$
|
|
$
|
|
||||
Cash, cash equivalents and restricted cash at end of the period
|
$
|
|
$
|
|
||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
||||||||
Cash and cash equivalents at the end of the period
|
$
|
|
$
|
|
||||
Cash, cash equivalents and restricted cash at the end of the period
|
$
|
|
$
|
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
||||||||
Non-cash investing activities
|
$
|
|
$
|
|
||||
Interest payments, net of amounts capitalized
|
$
|
|
$
|
|
2.
|
Significant Accounting Policies and Recent Accounting Pronouncements
|
3.
|
Discontinued Operations
|
June 30, | ||||||||
2022
|
2021
|
|||||||
Items constituting net income from discontinued operations
|
||||||||
Other income
|
|
|
||||||
Net income from discontinued operations
|
|
|
June 30,
2022
|
December 31,
2021
|
|||||||
Carrying amounts of major classes of assets of discontinued operations
|
|
|
||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Accounts receivable, trade
|
|
|
||||||
Prepaid expenses and other assets
|
|
|
||||||
Total major classes of current assets of discontinued operations
|
|
|
||||||
Carrying amounts of major classes of liabilities of discontinued operations
|
||||||||
Accounts payable, trade and other
|
|
|
||||||
Accrued liabilities
|
|
|
||||||
Total major classes of current liabilities of discontinued operations
|
|
|
4.
|
Revenue, Accounts Receivable and Provision for Credit Losses
|
Charterer
|
2022 | 2021 | ||||||
A
|
|
|
||||||
B
|
|
%
|
||||||
C
|
|
|
%
|
|||||
D
|
|
%
|
|
%
|
||||
E | % |
5.
|
Transactions with Related Parties
|
6.
|
Vessels, net
|
|
Vessels’ Cost
|
Accumulated Depreciation
|
Net Book Value
|
|||||||||
Balance, December 31, 2021
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
- Transfer from other non-current assets |
- | |||||||||||
- Vessels’ improvements
|
|
-
|
|
|||||||||
- Depreciation
|
-
|
(
|
)
|
(
|
)
|
|||||||
Balance, June 30, 2022
|
$
|
|
$
|
(
|
)
|
$
|
|
7.
|
Long-Term Debt
|
June 30, 2022
|
Current
|
Non-current
|
December 31, 2021
|
Current
|
Non-current
|
|||||||||||||||||||
Nordea Bank secured term loan
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Piraeus Bank secured term loan
|
|
|
|
|
|
|
||||||||||||||||||
less unamortized deferred financing costs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Total debt, net of deferred financing costs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Principal Repayment
|
||||
July 1, 2022 through June 30, 2023
|
$ |
|
||
July 1, 2023 through June 30, 2024
|
|
|||
July 1, 2024 through December 31, 2024
|
|
|||
Total
|
$
|
|
8.
|
Commitments and Contingencies
|
Amount
|
||||
Year 1
|
$
|
|
||
Year 2
|
|
|||
Total
|
$
|
|
||
Less imputed interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
||
Lease liabilities, current
|
|
|||
Lease liabilities, non- current
|
|
|||
Present value of lease liabilities
|
$
|
|
Number of Shares
|
Weighted
Average Grant
Date Price |
|||||||
Outstanding at December 31, 2020
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited or expired
|
|
|
||||||
Outstanding at June 30, 2021
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited or expired
|
|
|
||||||
Outstanding at December 31, 2021
|
|
|
||||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited or expired
|
|
|
||||||
Outstanding at June 30, 2022
|
|
$
|
|
10.
|
Earnings / (Loss) per Share
|
2022
|
2021
|
|||||||||||||||
Basic LPS
|
Diluted LPS
|
Basic LPS
|
Diluted LPS
|
|||||||||||||
Net income / (loss) from continuing operations
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||
less deemed dividend on Series B preferred stock upon exchange of common stock
|
(
|
)
|
(
|
)
|
|
|
||||||||||
less dividends on Series B preferred shares |
( |
) | ( |
) | ||||||||||||
Net loss attributable to common stockholders from continuing operations
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Net income from discontinued operations
|
|
|
|
|
||||||||||||
Total net loss attributable to common stockholders
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Weighted average number of common shares outstanding
|
|
|
|
|
||||||||||||
Loss per common share, continuing operations
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Earnings per common share, discontinued operations
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Loss per common share, total
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
11.
|
Financial Instruments and Fair Value Disclosures
|
12.
|
Subsequent Events
|
Document and Entity Information |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2022 |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | Performance Shipping Inc. |
Entity Central Index Key | 0001481241 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 793,657 | 0 |
Preferred stock, shares outstanding (in shares) | 793,657 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 10,395,030 | 5,082,726 |
Common stock, shares outstanding (in shares) | 10,395,030 | 5,082,726 |
Unaudited Interim Consolidated Statements of Comprehensive Income/ (Loss) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Unaudited Interim Consolidated Statements of Comprehensive Income/ (Loss) [Abstract] | ||
Net income/(loss) from continuing and discontinued operations | $ 1,790 | $ (5,500) |
Comprehensive income/(loss) from continuing and discontinued operations | $ 1,790 | $ (5,500) |
General Information |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
General Information [Abstract] | |||
General Information |
Company’s identity
The accompanying unaudited interim consolidated financial statements include the accounts of Performance Shipping Inc. (or “Performance”) and its wholly-owned
subsidiaries (collectively, the “Company”). Performance was incorporated as Diana Containerships Inc. on January 7, 2010, under the laws of the Republic of the Marshall Islands for the purpose of engaging in any lawful act or activity under the
Marshall Islands Business Corporations Act. On February 19, 2019, the Company’s Annual Meeting of Shareholders approved an amendment to the Company’s Amended and Restated Articles of Incorporation to change the name of the Company from “Diana
Containerships Inc.” to “Performance Shipping Inc.”, which was effected on February 25, 2019. The Company’s common shares trade on the Nasdaq Capital Market under the ticker symbol “PSHG”.
The Company is a global provider of shipping transportation services through the ownership of tanker vessels, while it owned container vessels since its incorporation
through August 2020 (Note 3). The Company operates its fleet through Unitized Ocean Transport Limited (the “Manager” or “UOT”), a wholly-owned subsidiary. The fees payable to UOT are eliminated in consolidation as intercompany transactions.
Financial Statements’ presentation
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP,
for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These unaudited interim consolidated financial statements have been prepared on the same
basis and should be read in conjunction with the financial statements for the year ended December 31, 2021 included in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 11, 2022 and, in the opinion
of management, reflect all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. Operating
results for the six months ended June 30, 2022 are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2022.
The consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date, but does not include all of
the information and footnotes required by U.S. GAAP for complete financial statements.
Following the sale of all Company’s container vessels in 2020, the Company’s results of operations of the container vessels, as well as their assets and liabilities,
are reported as discontinued operations for all periods presented in the accompanying consolidated financial statements (Note 3). For the statement of cash flows, the Company elected the alternative of combining cash flows from discontinued
operations with cash flows from continuing operations within each cash flow statement category, and as such, no separate disclosure of cash flows from discontinued operations is presented in the statement of cash flows.
Other matters
On March 11, 2020, the World Health Organization
declared the novel coronavirus (“COVID-19”) 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, travel restrictions, and other emergency public health measures in an effort to contain the outbreak. Such measures have resulted in a significant reduction in global economic activity and extreme
volatility in the global financial markets, which has reduced the global demand for oil and oil products, which the Company’s vessels transport, and has exposed the Company to the risk of volatility in the near-term. During the global gradual
recovery from COVID-19, the Company continues to take proactive measures to ensure the health and wellness of its crew and onshore employees while endeavoring to maintain effective business continuity and uninterrupted service to its
customers. During the six months periods ended June 30, 2022 and 2021, the Company incurred increased costs as a result of the restrictions imposed in various jurisdictions creating delays and additional complexities with respect to port
calls and crew rotations. The Company’s revenues are impacted by fluctuations in spot charter rates for Aframax tankers. During the six months ended June 30, 2021, the Company’s revenue came under pressure due to record OPEC+ oil production
cuts and lower production from other oil producing countries, which reduced crude exports, and the unwinding of floating storage and the delivery of newbuilding vessels to the world tanker fleet. However, during the six months ended June 30,
2022, the Company’s revenues improved due to strength in spot charter rates on account of higher OPEC+ production and increased ton mile due to the sanctions on Russian crude oil exports. As of June 30, 2022 and during the six month
periods ended June 30, 2022 the Company’s financial results have not been adversely affected from the impact of COVID. Given the dynamic nature of
these circumstances, the full extent to which the COVID-19 global pandemic may have direct or indirect impact on the Company’s business and the related financial reporting implications cannot be reasonably estimated at this time, although it
could materially affect the Company’s business, results of operations and financial condition in the future. As of June 30, 2022, the impact of the outbreak of COVID-19 virus continues to unfold. As a result, many of the Company’s estimates
and assumptions carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company’s estimates may change in future periods. The overall impact of COVID-19 on the
Company’s business, and the efficacy of any measures the Company takes in response to the challenges presented by the COVID-19 pandemic, will depend on how the outbreak further develops, the duration and extent of the restrictive measures
that are associated with the pandemic and their impact on global economy and trade, which is still uncertain and may not be fully reflected in the Company’s financial results for the period ended June 30, 2022.
Furthermore, the recent outbreak of war between Russia and the Ukraine has disrupted supply chains and
caused instability in the global economy, while the United States and the European Union, among other countries, announced sanctions against Russia, including sanctions targeting the Russian oil sector, among those a prohibition on the
import of oil from Russia to the United States. The ongoing conflict could result in the imposition of further economic sanctions against Russia and given Russia’s role as a major
global exporter of crude oil, the Company’s business may be adversely impacted. Currently, none of the Company’s contracts have been affected by the events in Russia and Ukraine. However, it is possible that in the future third parties with
whom the Company has or will have contracts may be impacted by such events. While in general much uncertainty remains regarding the global impact of the conflict in Ukraine, it is possible that such tensions could adversely affect the Company’s
business, financial condition, results of operation and cash flows.
|
Significant Accounting Policies and Recent Accounting Pronouncements |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Significant Accounting Policies and Recent Accounting Pronouncements [Abstract] | |||
Significant Accounting Policies and Recent Accounting Pronouncements |
A discussion of the Company’s significant accounting policies and the recent accounting pronouncements can be found in Note 2 of the Company’s Consolidated Financial
Statements included in the Annual Report on Form 20-F for the year ended December 31, 2021, filed with the SEC on March 11, 2022. There have been no material changes to these policies or pronouncements during the six months ended June 30, 2022,
except as disclosed below:
Exchange of Common Shares for Shares of Convertible Preferred
Stock: The Company follows the provision of ASC 480 “Distinguishing Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine whether the preferred shares should be classified as permanent equity, temporary equity or
liability. In cases of exchanges of common stock for preferred stock, the Company values separately the common stock and the preferred stock on the date of the exchange. When the Company determines that on the measurement date there is an
excess value of the preferred stock, as compared to the fair value of the common shares exchanged, that value represents a dividend to the preferred holders, which should be deducted from the net loss from continuing operations to arrive at the
net loss available to common stockholders from continuing operations.
Underwritten
Public Offering: The Company follows the provision of ASC 480 “Distinguishing Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine whether the warrants and pre-funded warrants issued should be classified as permanent equity,
temporary equity or liability. The Company has determined that warrants and pre-funded warrants are free standing instruments and are out of scope of ASC 480 and meet all criteria for equity classification. The Company has recorded the excess
of the proceeds received over the par value of common stock to additional paid in capital.
Accounting Pronouncements - Not Yet Adopted
Reference Rate Reform (Topic 848): In March 2020, the
FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and
other transactions affected by reference rate reform. ASU 2020-04 applies to contracts that reference LIBOR or another reference rate expected to be terminated because of reference rate reform. The amendments in this Update are effective for all
entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to
March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the
amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. An entity may elect to apply the amendments in this Update to eligible hedging relationships existing as of the
beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. An entity may elect certain optional expedients for
hedging relationships that exist as of December 31, 2022 and maintain those optional expedients through the end of the hedging relationship. ASU 2020-04 can be adopted as of March 12, 2020. As of June 30, 2022, the Company has not yet elected any
optional expedients provided in the standard and the Company does not currently have any contracts that have been changed to a new reference rate. The Company will apply the accounting relief as relevant contract and hedge accounting relationship
modifications are made during the reference rate reform transition period and will continue to evaluate the potential impact of this standard on its consolidated financial statements.
|
Discontinued Operations |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations |
Since August 2019, upon the delivery of the Company’s first tanker vessel “Blue Moon”, through August 2020, when the last container vessel
“Domingo” was sold, the Company’s fleet was a mixture of container and tanker vessels. Accordingly, the Company had determined that it would operate under two
reportable segments, one relating to its operations of container vessels (containers’ segment) and one to the operations of tanker vessels (tankers’ segment). Concurrently with the acquisition of its first tanker vessels, as the market environment
for the Company’s containers fleet continued to be negative and with difficult employment opportunities, management initiated a number of actions for the gradual disposal of the whole container vessels’ fleet, although no decision at that time was
reached for a strategic shift to a different segment. In the first months of 2020, the Company acquired two additional tanker vessels.
In August 2020, at the time when the fleet’s last container vessel was sold, the Company evaluated the results of the tanker vessels owned since 2019 and assessed the prospects of the specific segment as positive. At that time, the Company
determined that its decision to exit the container segment represented a strategic shift to the exclusive ownership of tanker vessels and further assessed that the disposal of all its container vessels constituted a disposal of an entity’s segment,
that will have a major effect on the Company’s operations and financial results. Furthermore, the Company determined that it would not have continuing involvement in the operation of the disposed assets. In this respect, the results of operations
of the container vessels, as well as their assets and liabilities, are reported since 2020 as discontinued operations for all periods presented in the accompanying consolidated financial statements.
Below are presented summarized the operating results of the discontinued operations for the six months ended June 30, 2022 and 2021, as well as the balance sheet
information on the Company’s discontinued operations as of June 30, 2022 and December 31, 2021:
|
Revenue, Accounts Receivable and Provision for Credit Losses |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Accounts Receivable and Provision for Credit Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Accounts Receivable and Provision for Credit Losses |
Revenue and Accounts Receivable
The Company’s tanker vessels have been employed since their acquisition under time and voyage charter contracts, and since 2021 the Company also charters some of its
vessels under pool arrangements. Accordingly, the Company disaggregates its revenue from contracts with customers by the type of charter (time charters, spot charters and pool charters).
For the six months ended June 30, 2022, Revenue from continuing operations amounted to $13,225 from spot charters, to $0 from time-charters and to $12,050 from pool charters. For the six months ended June 30, 2021, Revenue from continuing operations amounted to $11,441 from spot charters, to $5,998
from time-charters, and to $74 from pool charters.
As of June 30, 2022, the balance of Accounts receivable, net, for the continuing operations amounted to $4,995 for the spot charters (of which $828 relates to contract
assets), to $0 for the time-charters and to $3,252 for the pool charters. As of December 31, 2021, the balance of Accounts receivable, net, for the continuing operations amounted to $2,037 for the spot charters (of which $196 relates to contract
assets), to $2 for the time-charters and to $1,753 for the pool charters.
For the six months ended June 30, 2022 and 2021, charterers that accounted for more than 10% of the Company’s revenue, were as follows:
The maximum aggregate amount of loss due to credit risk, net of related allowances, that the Company
would incur if the aforementioned charterers failed completely to perform according to the terms of the relevant charter parties, amounted to $1,587
and to $405 as of June 30, 2022 and December 31, 2021, respectively.
Credit Losses Provision
The Company, in estimating its expected credit losses, gathers annual historical losses on its freight
and demurrage receivables since 2019 when the Company’s tanker vessels were firstly operated in the spot market, and makes forward-looking adjustments in the estimated loss
ratio, which is re-measured on an annual basis. As of June 30, 2022 and December 31, 2021, the balance of the Company’s allowance for estimated credit losses on its outstanding freight and demurrage receivables were $158 and $121, respectively, and is
included in Accounts receivable, net of provision for credit losses in the accompanying consolidated balance sheets. For the six months ended June 30, 2022 and 2021, the Provision for credit losses and write offs in the accompanying consolidated
statements of operations includes changes in the provision of estimated losses of $39 and $(20), respectively, and for 2022 it also includes an amount of $38
representing demurrages write offs. No allowance was recorded on insurance claims as of June 30, 2022 and December 31, 2021, as
their balances were immaterial. In addition, no allowance was recorded for cash equivalents as the majority of cash balances as of
the balance sheet date was on time deposits with highly reputable credit institutions, for which periodic evaluations of the relative credit standing of those financial institutions are performed.
|
Transactions with Related Parties |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Transactions with Related Parties [Abstract] | |||
Transactions with Related Parties |
(a) Pure Brokerage and Shipping Corp. (“Pure Brokerage”): Pure Brokerage, a company controlled by the Company’s Chairperson of the Board Aliki Paliou, provides brokerage services to the Company since June 15, 2020, pursuant to a Brokerage Services Agreement for a fixed monthly fee
per each tanker vessel owned by the Company. Pure Shipbroking may also, from time to time, receive sale and purchase commissions and chartering commissions on the gross freight and hire revenue of the tanker vessels, depending on the respective
charter parties’ terms.
For the six months ended June 30, 2022, commissions and brokerage fees to Pure Brokerage amounted to $293 and $90, and for the six months ended June 30, 2021 to $215 and $90, respectively, and are
included in Voyage expenses and in General and administrative expenses in the accompanying unaudited interim consolidated statements of operations. As at June 30, 2022 and December 31, 2021, an amount of $35 and $63 was payable to Pure Brokerage and is reflected in Due
to related parties in the accompanying consolidated balance sheets.
(b) Mango Shipping Corp (“Mango”) : On March 2, 2022, the Company entered into an unsecured credit facility with Mango, whose beneficial owner is Aliki Paliou, of up to $5.0 million, for general working capital purposes. The loan has a term of one year from the date
of the agreement, bears interest of 9.0% per annum, and would be drawn in arrears at the Company’s request. The agreement also
provided for arrangement fees of $200 payable on the date of the agreement, and commitment fees of 3.00% per annum on any undrawn amount until the maturity date. As of June 30, 2022, the full amount of $5,000 had been drawn under the credit facility, and the amount is included in Related party financing, current, net of unamortized deferred financing costs in the accompanying consolidated balance sheets. For the six months ended June 30, 2022, interest and commitment fees incurred in connection
with the Mango loan amounted to $139 and are included in Interest and finance costs in the accompanying unaudited interim
consolidated statements of operations. Arrangement fees of $200 were capitalized contra to debt and are amortized over the facility
period under the straight-line method, while amortization of arrangement fees for the six months ended June 30, 2022 amounted to $64 and are also included in
Interest and finance costs in the accompanying unaudited interim consolidated statements of operations.
Tender Offer to Exchange Common Shares for Shares of Series B
Convertible Cumulative Perpetual Preferred Stock: In December 2021, the Company commenced an offer to exchange up to 4,066,181
of its then issued and outstanding common shares, par value $0.01 per share, for newly issued shares of the Company’s Series B
Convertible Cumulative Perpetual Preferred Stock, par value $0.01, at a ratio of 0.28 Series B Preferred Shares for each common Share. The tender offer expired on January 27, 2022, and a total of 2,834,612 common shares were validly tendered and accepted for exchange, which resulted in the issuance of 793,657 Series B Preferred Shares, out of which 657,396 are
beneficially owned by Aliki Paliou and 28,171 are beneficially owned by Andreas Michalopoulos.
|
Vessels, net |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessels, net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessels, net |
The amounts of Vessels, net in the accompanying consolidated balance sheets are analyzed as follows:
During the six months ended June 30, 2022, the Company capitalized an amount of $660 and also an amount of $558 was transferred from other non-current assets,
representing costs for the installation of ballast water treatment system on the vessel “Blue Moon”.
On June 16, 2022, the Company, through a newly established subsidiary, entered into a memorandum of agreement with unrelated parties, to acquire the Aframax tanker
vessel “Maran Sagitta”, to be renamed “P. Sophia”, for the purchase price of $27,577. Based on the memorandum of agreement, the Company
paid to the seller the amount of $2,758, which was 10% of the vessel purchase price and the amount of $53 regarding pre delivery
expenses. These amounts are presented in the Consolidated Balance Sheets under “Advances for vessel acquisitions’’ totaling $2,811 as of
June 30, 2022.
|
Long-Term Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as follows:
Secured Term Loans: The Company, through its vessel-owning subsidiaries, has entered into two long term loan agreements with certain financial
institutions (as described below) to partially finance the acquisition cost of its tanker vessels. The loans are repayable in quarterly installments plus one balloon installment per loan agreement to be paid together with the last installment, and bear variable interest at LIBOR plus a fixed margin ranging from 2.75% to 2.85%. Their maturities fall due in July and December
2024, and at each utilization date, arrangement fees of 1.00% were paid. The term loans are collateralized by the Company’s five tanker vessels, whose aggregate net book value as of June 30, 2022 was $120,534.
In July 2019, the Company, through two of its
vessel-owning subsidiaries, entered into a loan agreement with Nordea Bank Abp, Filial i Norge (“Nordea Bank”) for a senior secured term loan facility of up to $33,000, to partially finance the acquisition cost of the tanker vessels “Blue Moon” and “Briolette”. In December 2019 and in March 2020, the Nordea Bank loan was twice amended and restated to increase the loan
facility to up to $47,000 and $59,000,
respectively, to partially support the acquisition cost of the tanker vessels “P. Fos” and “P. Kikuma”, respectively. In December 2020, the Company entered a Deed of Release with Nordea Bank, according to which the borrowers of the vessels “P. Fos”
and “P. Kikuma” were released from all obligations under the agreement, in connection with the re-finance by Piraeus Bank S.A. (described below). Also in December 2020, the Company entered into a Supplemental Loan Agreement with Nordea Bank, to
amend the existing repayment schedules of the “Blue Moon” and “Briolette” tranches and to amend the major shareholder’s clause included in the agreement.
In December 2020, the Company, through three of its
vessel-owning subsidiaries, entered into a loan agreement with Piraeus Bank S.A. (“Piraeus Bank”) for a senior secured term loan facility of up to $31,526,
to refinance the existing indebtedness of the vessels “P. Fos” and “P. Kikuma” with Nordea Bank, described above, and partially finance the acquisition cost of the vessel “P. Yanbu”. The three borrowers utilized in December 2020 an aggregate amount of $29,958
under the loan agreement, and no amount remained available for drawdown thereafter.
In June 2022, the Company, through two of its
vessel-owning subsidiaries, amended its loan agreement with Piraeus Bank for a new loan facility of up to $31,933, to partially finance
the acquisition of “P. Sophia” with loan proceeds of up to $24,600, and to refinance the existing tranche of the vessel “P. Yanbu” by $7,333 (Note 12). The amended loan is repayable in quarterly instalments plus with one balloon payment to be paid together with the last installment and bears variable interest at LIBOR plus a fixed margin of 2.70%. The loan maturity falls due in July 2027. The Company should pay to Piraeus Bank on
the utilization date of the loan, an arrangement fee in the amount of 0.75% of the amount of each Tranche drawn.
The Nordea and Piraeus Bank loans are guaranteed by Performance Shipping Inc. and are also secured by first priority mortgages over the financed
fleet, first priority assignments of earnings, insurances and of any charters exceeding durations of two years, pledge over the
borrowers’ shares and over their earnings accounts, and vessels’ managers’ undertakings. The loan agreements also require a minimum hull value of the financed vessels, impose restrictions as to dividend distribution following the occurrence of an
event of default and changes in shareholding, include customary financial covenants and require at all times during the facility period a minimum cash liquidity. In November 2021, the Company’s lender Nordea Bank has provided their consent for a
reduction of the Company’s minimum liquidity requirement from $9,000 to $5,000, with an effective date December 31, 2021 through June 30, 2022. In June 2022, the Company’s lender Piraeus Bank amended existing indebtedness, with a minimum liquidity
requirement of $5,000 applicable as of June 30, 2022. According to the provisions of the amended loan agreement with Piraeus Bank part
of the minimum liquidity (5% of the outstanding amount under the loan agreement with Piraeus Bank) shall be maintained with Piraeus
Bank.
As at June 30, 2022 and December 31, 2021, the compensating cash balance required under
the loan agreements is included in Cash and cash equivalents in the accompanying consolidated balance sheets. As at June 30, 2022 and December 31, 2021, the Company was in compliance with all of its loan covenants.
The weighted average interest rate of the Company’s bank loans for the six months ended June 30, 2022 and 2021, was 3.25% and 2.92%, respectively.
For the six months ended June 30, 2022 and 2021, interest expense on long-term bank debt amounted to $789 and $824, respectively, and is included in Interest and
finance costs in the accompanying unaudited interim consolidated statement of operations. Accrued interest on bank debt as of June 30, 2022, and December 31, 2021, amounted to $62 and $51, respectively, and is included in Accrued liabilities in the
accompanying consolidated balance sheets.
As at June 30, 2022, the maturities of the debt facilities described above, are as follows:
|
Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
(a) Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course
of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Company’s vessels. Currently, management is not aware of any claims or
contingent liabilities, which should be disclosed, or for which a provision should be established and has not in the accompanying unaudited interim consolidated financial statements.
The Company accrues for the cost of environmental liabilities when management becomes aware that a liability is probable and is able to reasonably
estimate the probable exposure. Currently, management 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 unaudited interim consolidated financial
statements.
The Company’s vessels are covered for pollution in the amount of $1 billion per vessel per incident, by the protection and indemnity association (“P&I Association”) in which the Company’s vessels are entered. The Company’s vessels are subject to calls payable to their P&I
Association and may be subject to supplemental calls which are based on estimates of premium income and anticipated and paid claims. Such estimates are adjusted each year by the Board of Directors of the P&I Association until the closing of the
relevant policy year, which generally occurs within three years from the end of the policy year. Supplemental calls, if any, are
expensed when they are announced and according to the period they relate to. The Company is not aware of any supplemental calls outstanding in respect of any policy year.
(b) The Company rents its office spaces in Greece under various lease agreements with unaffiliated parties. The durations of these agreements
vary from a few months to 3 years and certain of these contracts also bear the option for the Company to extend the lease terms for
further periods. Under ASC 842, the Company, as a lessee, has classified these contracts as operating leases and accordingly, a lease liability of $39
and $84, respectively, and an equal right-of-use asset based on the present value of future minimum lease payments for the fixed
periods of each contract have been recognized on the June 30, 2022 and December 31, 2021 balance sheets. The monthly rent cost under the existing as of June 30, 2022 lease agreements are $7 (based on the exchange rate of Euro/US Dollar $1.0620 as of
June 30, 2022). Rent costs have been reduced for the Company for 2021 as a result of COVID 19-relief measures applied by the Greek government, as the lessor was partially reimbursed for these rent payments by the state for the first semester of
2021. Accordingly, rent expenses amounted to $47 and $0 for the six months ended June 30, 2022 and 2021, respectively, and are included in General and administrative expenses in the accompanying unaudited interim consolidated financial statements. The Company
assessed in 2021 that the rent concession qualifies for the election and elected to not evaluate whether a concession provided due to COVID-19 is a lease modification under ASC 842. The Company has assessed the right of use asset recognized for
office leases for impairment and concluded that no impairment charge should be recorded as of June 30, 2022, as no impairment
indicators existed.
The following table sets forth the Company’s undiscounted office rental obligations
as at June 30, 2022:
|
Changes in Capital Accounts |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Capital Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Capital Accounts |
9. Changes in Capital Accounts
(a) Company’s Preferred Stock: As of June 30, 2022, and December 31, 2021, the Company’s
authorized preferred stock consists of 25,000,000 shares of preferred stock, par value $0.01 per share. Of these preferred shares, 1,250,000
have been designated Series A preferred shares and 1,200,000 have been designated Series B preferred shares. As of June 30, 2022,793,657 Series B preferred shares were issued and
outstanding, while as of December 31, 2021, no preferred stock was issued and outstanding.
(b) Tender Offer to Exchange Common Shares for Shares of Series B Convertible Cumulative
Perpetual Preferred Stock: In December 2021, the Company commenced an offer to exchange up to 4,066,181 of its then
issued and outstanding common shares, par value $0.01 per share, for newly issued shares of the Company’s Series B Convertible
Cumulative Perpetual Preferred Stock, par value $0.01, at a ratio of 0.28 Series B Preferred Shares for each common Share.
The Company pays 4.00% annual dividend on the Series B Preferred Shares, on a quarterly basis, either in cash, or, at the Company’s option, through the issuance of additional common
shares, valued at the volume-weighted average price of the common stock for the 10 trading days prior to the dividend payment
date. Each Series B Preferred Share has no voting rights and is convertible at the option of the holder during a period of 30 days
starting in the first anniversary of issuance, and for additional cash consideration of $7.50 per converted Series B Preferred
Share, into two Series C Preferred Shares (see description below). Each Series B Preferred Share will have a fixed liquidation
preference of $25.00 per share. The Series B Preferred Shares are not subject to mandatory redemption or to any sinking fund
requirements, and will be redeemable at the Company’s option, at any time, on or after the date that is the date immediately following the 15-month
anniversary of the issuance date, at $25.00 per share plus accumulated and unpaid dividends thereon to and including the date of
redemption. Finally, Series B Preferred Shares rank senior to common shares with respect to dividend distributions and distributions upon any liquidation, winding up or dissolution of the Company. The tender offer expired on January 27, 2022,
and a total of 2,834,612 common shares were validly tendered and accepted for exchange, which resulted in the issuance of 793,657 Series B Preferred Shares (with aggregate liquidation preference of $19,841), out of which 657,396 are beneficially owned by
Aliki Paliou and 28,171 are beneficially owned by Andreas Michalopoulos. For the six months ended June 30, 2022, dividends accrued but not declared on Series B preferred shares amounted to $328.
The Series C Preferred Shares, par value $0.01 and $25.00 liquidation preference, will be established
not earlier than one year from the date of original issuance of the Series B Preferred Shares. Their material anticipated terms are
as follows: the Company will pay a 5.00% annual dividend on the Series C Preferred Shares either in cash, or, at the Company’s
option, through the issuance of additional common shares, valued at the volume-weighted average price of the common stock for the 10
trading days prior to the dividend payment date; the Series C Preferred Shares will be convertible to Common Shares, at the option of the holder at any time and from time to time after six months from the date of original issuance of such Series C Preferred Shares, in whole or in part, at a conversion price equal to $5.50 per Common Share (as adjusted). The conversion price shall be adjusted to the lowest price of issuance of common stock by the Company for any registered offering
following the original issuance of Series B Preferred Shares, provided that, such adjusted conversion price shall not be less than $0.50.
Each Series C Preferred Share shall be entitled to a number of votes equal to the number of shares of Common Stock into which the share is then convertible multiplied by 10. Holders of the Series C Preferred Shares shall be entitled to vote with holders of Common Shares, voting together as a single class (with certain exceptions).
In its assessment for the accounting of the Series B preferred stock, the Company has taken into
consideration the provisions of ASC 480 “Distinguishing Liabilities from Equity” and ASC 815 “Derivatives and Hedging” and determined that the Series B preferred shares should be classified as permanent equity rather than temporary equity or
liability. The preferred stock was measured as of the date of closing of the tender offer, being January 27, 2022, at fair value on a non-recurring basis. Its fair value was determined through Level 3 inputs of the fair value hierarchy as
determined by management and amounted to $18,030. The fair value of the preferred stock was estimated using the Black & Scholes
model and weighted the possibilities: a) that the Series B are not further exchanged for Preferred C shares, b) that the Series B are converted to Series C on the applicable conversion date and further assumed that there is no further
conversion of the Series C preferred shares to common shares and c) that the Series C are further converted to common shares. Moreover, the Company’s valuation used the following assumptions: (a) 4% dividend yield for the Series B preferred stock and 5%
dividend yield for the Series C preferred stock, assumed based on stated dividend policy for the Series B preferred shares, and expected dividend policy for the Series C preferred shares, (b) weighted average expected volatility of 65%, (c) risk free rate of 0.74%
determined by management using the applicable 1-year treasury yield as of the measurement date, (d) market value of common stock of
$3.09 and (e) expected life of convertibility option of the Series C preferred shares to common shares of 5 years as at September 2, 2023. The Company’s valuation determined that the exchange resulted in an excess value of the Series B preferred shares
of $9,271, or $11.68
per preferred share, as compared to the fair value of the common shares exchanged, that was transferred from the common holders to the preferred holders on the measurement date, and that that value represented a deemed dividend to the preferred
holders, that should be deducted from the net loss from continuing operations to arrive at the net loss available to common stockholders from continuing operations (Note 10). The fair value of the common shares exchanged on the measurement date
of $8,759 was determined through Level 1 inputs of the fair value hierarchy (quoted market price on the date of the exchange).
(c) Compensation Cost on Stock Option Awards: On January 1, 2021, the Company granted to its Chief
Financial Officer stock options to purchase 120,000 of the Company’s common shares as share-based remuneration. The stock options,
which were granted pursuant to, and in accordance with, the Company’s Equity Incentive Plan, have been approved by the Company’s board of directors, and have a term of five years. The exercise prices of the options are as follows: 30,000
shares for an exercise price of $10.00 per share, 25,000 shares for an exercise price of $12.50 per share, 20,000 shares for an exercise price of $15.00
per share, 15,000 shares for an exercise price of $20.00 per share, 15,000 shares for an exercise price of $25.00 per share, and 15,000 shares
for an exercise price of $30.00 per share.
In its assessment for the accounting of the stock options awards, the Company has taken into consideration
the provisions of ASC 718 “Compensation – Stock Compensation” and determined that these stock options should be classified as equity rather than liability. The award was measured on the grant date, being January 1, 2021, at fair value on a
non-recurring basis. Its fair value was determined through Level 3 inputs of the fair value hierarchy as determined by management and amounted to $134.
The fair value of the stock option was estimated using the binomial-pricing model with the following assumptions: (a) 6% dividend
yield, assumed based on Company’s stated dividend policy and existing capital structure, (b) weighted average expected volatility of 75%,
(c) risk free rate of 0.36% determined by management using the applicable 5-year treasury yield as of the measurement date, (d) market value of common stock of $4.64 and (e) expected life of 5 years as at January 1, 2021. Until June 30, 2022, no stock options were exercised, and in the six months ended June 30, 2021, an amount of $134 was recognized as compensation cost in General and administrative expenses in the accompanying unaudited interim consolidated statements of operations.
(d) Compensation Cost on Restricted Common Stock: On December 30, 2020, the Company’s Board of Directors approved an amendment to the
2015 Equity Incentive Plan (or the “Plan”), to increase the aggregate number of shares issuable under the plan to 538,830 shares,
and further approved 67,225 restricted common shares to be issued on the same date as an award to the Company’s directors. The
fair value of the award was $320 and was calculated by using the share closing price of December 29, 2020. of the shares vested on December 30, 2020, and the remaining would vest ratably over three years
from the issuance date. As at June 30, 2022, 471,605 restricted common shares remained reserved for issuance under the Plan.
Following the resignation of four of the Company’s board members on February 28, 2022, the Company decided to accelerate the vesting of any unvested shares on the date of their resignation as a severance benefit and
the Company recognized the corresponding compensation cost during the first quarter of 2022. During the six months ended June 30, 2022 and 2021, the aggregate compensation cost on restricted stock amounted to $80 and $93, respectively, and is
included in General and administrative expenses in the accompanying unaudited interim consolidated statements of operations. On June 30, 2022 and December 31, 2021, the total unrecognized compensation cost relating to restricted share awards
was $78 and $159,
respectively.
During the six months ended 2022 and 2021, the movement of the restricted stock cost was as follows:
As at June 30, 2022 the weighted-average period over which the total compensation cost related to
non-vested restricted stock, as presented above, is expected to be recognized, is 1.00 year.
(e) At The Market (“ATM”) Offering: On March 5, 2021, the Company entered into an At The Market (or “ATM”) Offering Agreement with
H.C. Wainwright & Co., LLC, as sales agent, pursuant to which the Company may offer and sell, from time to time, up to an aggregate of $5,900
of its common shares, par value $0.01 per share. During the six months ended June 30,
2022, a total of 526,916, common shares were issued as part of the Company’s ATM offering, and the net proceeds received, after
deducting underwriting commissions and other expenses, amounted to $1,338. The Company suspended its ATM offering in May 2022.
(f) Underwritten Public Offering: On June 1, 2022, the Company completed its underwritten public offering of 7,620,000 units at a price of $1.05
per unit. Each unit consists of one common share (or pre-funded warrant in lieu thereof) and one Class A warrant to purchase one
common share and was immediately separated upon issuance (the “June 2022 Offering”). Each Class A warrant was immediately exercisable for one
common share at an exercise price of $1.05 per share and has a maturity of five years from issuance (the “Warrant”) and can be either physically settled or through the means of a cashless exercise. The Company may at any time during the term
of its warrants reduce the then current exercise price of each warrant to any amount and for any period of time deemed appropriate by the board of directors of the Company, subject to terms disclosed in each warrants’ agreements. The
warrants also contain a cashless exercise provision, whereby if at the time of exercise, there is no effective registration statement, then the warrants can be exercised by means of a cashless exercise as disclosed in each warrants’
agreements. The Warrants and pre-funded warrants do not have any voting, dividend or participation rights, nor do they have any liquidation preferences. The Company had granted the underwriters a 45-day option to purchase up to an additional 1,143,000
common shares and/or prefunded warrants and/or 1,143,000 Class A warrants, at the public offering price, less underwriting
discounts and commissions. The offering closed on June 1, 2022, and the Company received net proceeds, after underwriting discounts and commissions and expenses, of approximately $7,126 including the partial exercise of the Over-allotment Option by the underwriters of 890,500 Class A Warrants to purchase up to 890,500 common shares at $0.01 per share. As at June 30, 2022 all pre-funded warrants had been exercised, and no Class A warrants had been exercised. The Company had 10,395,030
common shares outstanding, and 8,510,500 Class A warrants outstanding.
The Company has recorded the excess of the proceeds received over the par value of common stock, namely $7,050, to additional paid in capital.
|
Earnings / (Loss) per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings / (Loss) per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings / (Loss) per Share |
All common shares issued (including the restricted shares issued under the equity incentive plan, or else) are the Company’s common stock and have equal rights to
vote and participate in dividends, subject to forfeiture provisions set forth in the applicable award agreements. Unvested shares granted under the Company’s incentive plan, or else, are entitled to receive dividends which are not refundable,
even if such shares are forfeited, and therefore are considered participating securities for basic earnings per share calculation purposes. For the six months ended June 30, 2022 and 2021, the Company did not pay any dividends. The calculation of basic earnings/ (loss) per share does not consider the non-vested shares as outstanding until the time-based vesting
restrictions have lapsed. The dilutive effect of share-based compensation arrangements and warrants is computed using the treasury stock method, which assumes that the “proceeds” upon exercise of these awards or warrants are used to purchase
common shares at the average market price for the period while the dilutive effect of convertible securities is computed using the if converted method. For the six months ended June 30, 2022 and 2021, securities that could potentially dilute
basic loss per share in the future that were not included in the computation of diluted loss per share, because to do so would have anti-dilutive effect, are any incremental shares resulting from the non-vested restricted share awards,
outstanding warrants and the non-exercised stock options calculated with the treasury stock method, and also any incremental shares with respect to the preferred convertible stock. In particular, for the preferred convertible stock that requires
the payment of cash by the holder upon conversion, the proceeds assumed to be received shall be assumed to be applied to purchase common stock under the treasury stock method and the convertible security shall be assumed to be converted under the
if-converted method. Loss from continuing operations is adjusted by the amount of dividends on Series B Preferred Stock as follows to arrive at the net loss attributable to common equity holders:
|
Financial Instruments and Fair Value Disclosures |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Financial Instruments and Fair Value Disclosures [Abstract] | |||
Financial Instruments and Fair Value Disclosures |
The carrying values of temporary cash investments, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these
financial instruments. The fair values of long-term bank loans approximate the recorded values, due to their variable interest rates. The Company is exposed to interest rate fluctuations associated with its variable rate borrowings and its
objective is to manage the impact of such fluctuations on earnings and cash flows of its borrowings. Currently, the Company does not have any derivative instruments to manage such fluctuations.
|
Subsequent Events |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Subsequent Events [Abstract] | |||
Subsequent Events |
(a) Registered
Direct Offering: On July 18, 2022, the Company completed a direct offering of 17,000,000 common shares at a price of $0.35 per share and Warrants to purchase up to 17,000,000
common shares at a concurrent private placement. Each Class A warrant is immediately exercisable for one common share at an exercise
price of $0.35 per share and will expire
from issuance. The offering closed on July 19, 2022, and the Company received net proceeds of $5.33 million.
(b) Acquisition of New Vessel: On July 5, 2022 the Company took delivery of the Aframax tanker vessel “P. Sophia” (formerly “Maran Sagitta”) and
paid the purchase price of $27,577 with a combination of own funds and proceeds from a new loan facility (see paragraph (c) below).
(c) New Loan Facility with Piraeus Bank: On July 1, 2022 and in relation with the acquisition of the vessel “P. Sophia” discussed above (see
paragraph (b)), the Company utilized the full amount of $31,933 of the loan facility with Piraeus bank dated June 30, 2022 (Note 7) and paid arrangement fees of
$240. On July 5, 2022 and after the repayment of $7,333
being the outstanding balance of the respective tranche, the ship-owning company of “P. Yanbu” was released from the loan agreement dated December 3, 2020 (Note 7), which remains in effect for the two vessels “P. Fos” and “P. Kikuma”.
(d) Receipt of NASDAQ Notice: On July 13, 2022, the Company received written notification from The NASDAQ Stock Market LLC (“NASDAQ”), indicating
that because the closing bid price of the Company’s common stock for 30 consecutive business days was below the minimum $1.00 per share bid price requirement for continued listing on the Nasdaq Capital Market, the Company was not in compliance
with Nasdaq Listing Rule 5450(a)(1). The applicable grace period to regain compliance is until January 9, 2023. The Company intends to cure this deficiency within the prescribed grace period.
|
General Information (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
General Information [Abstract] | |
Financial Statements Presentation |
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP,
for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These unaudited interim consolidated financial statements have been prepared on the same
basis and should be read in conjunction with the financial statements for the year ended December 31, 2021 included in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 11, 2022 and, in the opinion
of management, reflect all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. Operating
results for the six months ended June 30, 2022 are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2022.
The consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date, but does not include all of
the information and footnotes required by U.S. GAAP for complete financial statements.
|
Discontinued Operations |
Following the sale of all Company’s container vessels in 2020, the Company’s results of operations of the container vessels, as well as their assets and liabilities,
are reported as discontinued operations for all periods presented in the accompanying consolidated financial statements (Note 3). For the statement of cash flows, the Company elected the alternative of combining cash flows from discontinued
operations with cash flows from continuing operations within each cash flow statement category, and as such, no separate disclosure of cash flows from discontinued operations is presented in the statement of cash flows.
|
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Significant Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements |
Exchange of Common Shares for Shares of Convertible Preferred
Stock: The Company follows the provision of ASC 480 “Distinguishing Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine whether the preferred shares should be classified as permanent equity, temporary equity or
liability. In cases of exchanges of common stock for preferred stock, the Company values separately the common stock and the preferred stock on the date of the exchange. When the Company determines that on the measurement date there is an
excess value of the preferred stock, as compared to the fair value of the common shares exchanged, that value represents a dividend to the preferred holders, which should be deducted from the net loss from continuing operations to arrive at the
net loss available to common stockholders from continuing operations.
Underwritten
Public Offering: The Company follows the provision of ASC 480 “Distinguishing Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine whether the warrants and pre-funded warrants issued should be classified as permanent equity,
temporary equity or liability. The Company has determined that warrants and pre-funded warrants are free standing instruments and are out of scope of ASC 480 and meet all criteria for equity classification. The Company has recorded the excess
of the proceeds received over the par value of common stock to additional paid in capital.
Accounting Pronouncements - Not Yet Adopted
Reference Rate Reform (Topic 848): In March 2020, the
FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and
other transactions affected by reference rate reform. ASU 2020-04 applies to contracts that reference LIBOR or another reference rate expected to be terminated because of reference rate reform. The amendments in this Update are effective for all
entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to
March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the
amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. An entity may elect to apply the amendments in this Update to eligible hedging relationships existing as of the
beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. An entity may elect certain optional expedients for
hedging relationships that exist as of December 31, 2022 and maintain those optional expedients through the end of the hedging relationship. ASU 2020-04 can be adopted as of March 12, 2020. As of June 30, 2022, the Company has not yet elected any
optional expedients provided in the standard and the Company does not currently have any contracts that have been changed to a new reference rate. The Company will apply the accounting relief as relevant contract and hedge accounting relationship
modifications are made during the reference rate reform transition period and will continue to evaluate the potential impact of this standard on its consolidated financial statements.
|
Discontinued Operations (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations |
Below are presented summarized the operating results of the discontinued operations for the six months ended June 30, 2022 and 2021, as well as the balance sheet
information on the Company’s discontinued operations as of June 30, 2022 and December 31, 2021:
|
Revenue, Accounts Receivable and Provision for Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Accounts Receivable and Provision for Credit Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Voyage and Hire Revenues from Charterers |
For the six months ended June 30, 2022 and 2021, charterers that accounted for more than 10% of the Company’s revenue, were as follows:
|
Vessels, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessels, net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessels, net |
The amounts of Vessels, net in the accompanying consolidated balance sheets are analyzed as follows:
|
Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt |
The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Debt Facilities |
As at June 30, 2022, the maturities of the debt facilities described above, are as follows:
|
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Office Rental Obligations |
The following table sets forth the Company’s undiscounted office rental obligations
as at June 30, 2022:
|
Changes in Capital Accounts (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Capital Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movement of Restricted Stock Cost |
During the six months ended 2022 and 2021, the movement of the restricted stock cost was as follows:
|
Earnings / (Loss) per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings / (Loss) per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted |
|
Revenue, Accounts Receivable and Provision for Credit Losses, Credit Losses Provision (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Provision for Credit Losses [Abstract] | |||
Change in provision of estimated losses | $ 39 | $ (20) | |
Allowance for credit loss, writeoff | 38 | ||
Cash Equivalents [Member] | |||
Provision for Credit Losses [Abstract] | |||
Allowance for estimated credit losses | 0 | $ 0 | |
Freight and Demurrage Receivables [Member] | |||
Provision for Credit Losses [Abstract] | |||
Allowance for estimated credit losses | 158 | 121 | |
Insurance Claims [Member] | |||
Provision for Credit Losses [Abstract] | |||
Allowance for estimated credit losses | $ 0 | $ 0 |
Vessels, net (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 16, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Net Book Value [Abstract] | |||
Beginning balance | $ 123,187 | ||
Ending balance | 123,451 | ||
Vessel Acquisitions [Abstract] | |||
Payment for vessels acquisition | $ 2,758 | ||
Percentage of vessel purchase price paid | 10.00% | ||
Pre delivery expenses | $ 53 | ||
Advances for vessel acquisitions | 2,811 | $ 0 | |
Vessels [Member] | |||
Vessels' Cost [Abstract] | |||
Beginning balance | 136,782 | ||
Transfer from other non-current assets | 558 | ||
Vessels' improvements | 660 | ||
Ending balance | 138,000 | ||
Accumulated Depreciation [Abstract] | |||
Beginning balance | (13,746) | ||
Depreciation | (3,720) | ||
Ending balance | (17,466) | ||
Net Book Value [Abstract] | |||
Beginning balance | 123,036 | ||
Transfer from other non-current assets | 558 | ||
Vessels' improvements | 660 | ||
Depreciation | (3,720) | ||
Ending balance | $ 120,534 | ||
P. Sophia [Member] | |||
Vessels' Cost [Abstract] | |||
Vessels' improvements | $ 27,577 | ||
Net Book Value [Abstract] | |||
Vessels' improvements | $ 27,577 |
Long-Term Debt, Maturities of Debt Facilities (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Principal Repayments [Abstract] | |
July 1, 2022 through June 30, 2023 | $ 7,911 |
July 1, 2023 through June 30, 2024 | 7,911 |
July 1, 2024 through December 31, 2024 | 30,412 |
Total | $ 46,234 |
Commitments and Contingencies (Details) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022
USD ($)
$ / €
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Commitments and Contingencies [Abstract] | |||
Pollution coverage per vessel per incident | $ 1,000,000 | ||
Closing period for relevant insurance policy year | 3 years | ||
Office Leases [Abstract] | |||
Operating lease liability | $ 39 | $ 84 | |
Operating right-of-use asset | 39 | 84 | |
Monthly rent expense | $ 7 | ||
Exchange rate | $ / € | 1.0620 | ||
Rent expense | $ 47 | $ 0 | |
Impairment charge | 0 | ||
Office Rental Obligations [Abstract] | |||
Year 1 | 40 | ||
Year 2 | 3 | ||
Total | 43 | ||
Less imputed interest | (4) | ||
Present value of lease liabilities | 39 | 84 | |
Lease liabilities, current | 37 | 66 | |
Lease liabilities, non- current | $ 2 | $ 18 | |
Maximum [Member] | |||
Office Leases [Abstract] | |||
Term of leases | 3 years |
Changes in Capital Accounts, Preferred Stock (Details) - $ / shares |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Preferred Stock [Abstract] | ||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 793,657 | 0 |
Preferred stock, shares outstanding (in shares) | 793,657 | 0 |
Series A Preferred Shares [Member] | ||
Preferred Stock [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,250,000 | |
Series B Preferred Stock [Member] | ||
Preferred Stock [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,200,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock, shares issued (in shares) | 793,657 | |
Preferred stock, shares outstanding (in shares) | 793,657 |
Changes in Capital Accounts, At The Market Offering (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
Mar. 05, 2021 |
|
At The Market Offering [Abstract] | |||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Shares issued (in shares) | 526,916 | ||
Net proceeds from issuance of common stock | $ 1,338 | ||
Maximum [Member] | |||
At The Market Offering [Abstract] | |||
Common stock that can be sold under ATM | $ 5,900 |
/
M$8[Q$(^[Q$S#T _B>-+#;=C.*D/WK/)Z;G4:7\]N: XA=G860SL[;^=!?4'%
MLGQ_(0'HAJGJ 7=SMGE'\FOY9J!S_B(XNZS>=+1AJA >N7I'+\&M.(NS?F />98=
M-9GUT6N*9Z-VE3-?+F XZ@/G+^U?7BO/)5 K7S#(STJLE%:!F'F2ZU"
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M^4* /RB4>68K[OI[+E,D ;BG!N,E-_0/GVQ%!3H:CGX Q3%IHA(;"S@;@L)6=K:
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M&C)- SFI3B]A91@%&541O:
M];IA\JAXSJ2UASPC4X@Y%/M6D#75)Q@C+P=SB3+&>CDP8Q:,O':R,]!"(Q38
MFRX2*Q0ITI)K"E")+)* F-UP:(F"-HYXX7!_+P2*_R$
M[M?JUM#;H->2R0)+*W4)!I<7X65\=C7F\_[ ;Q(W=N<9F,E"ZWM^^3&["(<,
M"!6FCC4(^EGC-2K%B@C&YU9GV)MDP=WG3OL'SYVX+(3%:ZU^EYG++\)9"!DN
M1:W
2_UL[XM!'<+CW<#'DE^EY%D0*6O.&Z4Z[%^!-\_!Y$F^>
MCV^E7RH;8'T!U='@[&5/^.9)UFRBJ](S:.XB'E5IN<(KECP+X'[A,,_:#1OH
MWL6SOP%02P,$% @ &H0%55C7C+K_$0 A#4 !D !X;"]W;W)K
=9)8+Y?@[1N>)_J/4L=,J&<]
M2SGSN!S/8+EM /K]G,$*6C_-"B1$ZW\A22$U[R$@6600&\:IO5,&6P"YA]'I
M5Q+VI@0*Y J$Y(HLP5C),K%KQ7.1N[74>LK29<'K%LBSV'](-9M"66,D\\('
MC(&MU _T?J]BC4]PL4V60(A$$1OO[&9/\=_KJ;_C1K0&[]N7EC@D)602118S
M'#B5Z4'JN#9]IB-7A 69M>(T2LJXHH )S#9>([R1>*]A9
J/.9?'N#O9L*H^=
M.[AV3]V)[J4U-G=VVCI^1@?GE'NGY& 6\(E.RV7X8BC?].*CRM&Q7UK
(G&!""1\7.-F?24(7!WO$&_
MCKE++C/E\)+,5UWX:I*\2:# 4K7&W]'R/:[S.0EX.1D7_V'9^9X.$\A;YZE>
M!XN"6MONJQ[7==@)>/.W@&P=D$7='5%4>:6\FHZ9EL#!6]#"(*8:HT6
9Z-0 652E4@^XNH4:M"0R8"C Z<3RXGN"Q25];F-M50^
M05JU6+AXC]4RCI)_*.^%U+'1JZN#C%5XJK(,"U'N*#^H(:JS>0Q;]\[/>P;L
M8PILTA.+$D\66GO