Fixed Assets

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

FIXED ASSETS

At September 30, 2020, the Company owned seventeen dry bulk vessels including three financed under finance leases; and one barge. The carrying amounts of these vessels, including unamortized drydocking costs, are as follows:


	September 30,		December 31,
	2020		2019
Owned vessels	(unaudited)
m/v BULK PANGAEA	$	13,974,199	$	14,988,076
m/v BULK NEWPORT	12,218,098		12,975,767
m/v NORDIC ODYSSEY (1)	22,288,109		22,897,029
m/v NORDIC ORION (1)	23,038,349		23,688,812
m/v NORDIC OSHIMA (1)	27,305,645		28,325,078
m/v NORDIC ODIN (1)	27,742,774		28,094,764
m/v NORDIC OLYMPIC (1)	27,662,258		27,931,771
m/v NORDIC OASIS (1)	28,319,502		29,190,935
m/v BULK ENDURANCE	24,277,889		25,037,775
m/v BULK FREEDOM	9,627,193		8,269,777
m/v BULK PRIDE	13,123,416		12,996,311
m/v BULK SPIRIT	12,752,841		12,867,060
m/v BULK INDEPENDENCE	13,965,032		14,000,946
m/v BULK FRIENDSHIP	13,742,452		14,052,500

MISS NORA G PEARL (2)	3,273,797		3,609,851
	273,311,554		278,926,452
Other fixed assets, net	2,305,018		2,548,405
Total fixed assets, net	$	275,616,572	$	281,474,857

Right of Use Assets
m/v BULK DESTINY	$	20,848,382	$	21,484,733
m/v BULK BEOTHUK (3)	—		6,589,537
m/v BULK TRIDENT	11,655,615		12,095,727
m/v BULK PODS	$	13,228,950	13,445,308
	$	45,732,947	$	53,615,305

(1) Vessels are owned by Nordic Bulk Holding Company Ltd. (“NBHC”), a consolidated joint venture which the Company has a two-third of ownership.

(2) Barge is owned by a 50% owned consolidated subsidiary.

(3) In January 2020 the Company completed an early buy-out of the lease for a purchase price of $5.5 million, on August 4, 2020, the Company sold the m/v Bulk Beothuk to an unrelated third party for a net sale price of $4.6 million.

Long-lived Assets Impairment Considerations

The Company evaluates the recoverability of its fixed assets and other assets in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, we perform an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. Our assessment is made at the asset group level, which represents the lowest level for which identifiable cash flows are largely independent of other groups of assets. The asset groups established by the Company are defined by vessel size and major characteristic or trade.

The Company concluded that no triggering event had occurred during the first and third of 2020 which would require impairment testing. During the second quarter of 2020, the Company determined that a triggering event occurred related to a sale of a vessel, as the carrying value exceeded its fair value. The Company performed an impairment analysis on each asset

group and concluded the estimated undiscounted future cash flows were higher than their carrying amount and as such, no additional loss on impairment was recognized.