Fixed Assets

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

FIXED ASSETS

At March 31, 2023, the Company owned twenty-four dry bulk vessels including eight financed under finance leases; and one barge. The carrying amounts of these vessels, including unamortized drydocking costs, are as follows:


	March 31,		December 31,
	2023		2022
	(unaudited)
m/v NORDIC ODYSSEY (1)	$	20,251,200	$	20,685,092
m/v NORDIC ORION (1)	21,002,307		21,406,429
m/v NORDIC OSHIMA (1)	23,953,647		24,292,108
m/v NORDIC OLYMPIC (1)	24,297,475		24,627,857
m/v NORDIC ODIN (1)	24,397,484		24,726,033
m/v NORDIC OASIS (1)	25,888,026		26,232,723
m/v NORDIC NULUUJAAK (2) (4)	37,161,221		37,518,857
m/v NORDIC QINNGUA (2) (4)	37,075,867		37,428,322
m/v NORDIC SANNGIJUQ (2) (4)	36,655,924		37,000,230
m/v NORDIC SIKU(2) (4)	37,047,374		37,393,171
m/v BULK ENDURANCE	22,794,587		23,106,438
m/v BULK COURAGEOUS (4)	15,627,805		15,755,839
m/v BULK CONCORD (4)	19,136,437		19,394,966
m/v BULK NEWPORT	—		10,211,578
m/v BULK FREEDOM	8,513,607		7,464,118
m/v BULK PRIDE	11,929,790		12,174,942
m/v BULK SPIRIT (4)	11,732,489		11,703,170
m/v BULK SACHUEST	17,055,812		17,188,278
m/v BULK INDEPENDENCE	14,597,890		14,879,681
m/v BULK FRIENDSHIP (4)	13,463,111		13,680,578
m/v BULK VALOR	16,938,354		17,106,444
m/v BULK PROMISE	17,457,107		17,619,467

MISS NORA G PEARL (3)	2,156,372		2,268,086
	459,133,886		473,864,407
Other fixed assets, net	2,610,960		2,660,345
Total fixed assets, net	$	461,744,846	$	476,524,752

Right of Use Assets
m/v BULK XAYMACA	$	12,717,876	$	13,082,596
m/v BULK DESTINY	19,553,509		19,814,777
m/v BULK TRIDENT	10,714,378		11,024,196
	$	42,985,763	$	43,921,569

(1) Vessels are owned by NBHC, a consolidated joint venture in which the Company has a two-third ownership interest at March 31, 2023 and December 31, 2022, respectively.

(2) Vessels are owned by NBP, a consolidated joint venture in which the Company has a 50% ownership interest at March 31, 2023 and December 31, 2022.

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

(4) Refer to Note 6, "Finance Leases" of our Financial Statements for additional information related to the vessels under finance lease.

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.

During the first quarter of 2023, the Company determined that a triggering event occurred related to the sale of a vessel, as the carrying value exceeded its fair value. On January 18, 2023, the Company signed a memorandum of agreement to sell the m/v Bulk Newport for $8.9 million in net consideration after brokerage commissions. As a result, we recorded a loss on sale of $1.2 million in the first quarter of 2023. The Company performed an impairment analysis on each asset group and concluded the estimated undiscounted future cash flows were higher than their carrying amounts and as such, no additional loss on impairment was recognized.

During the first quarter of 2022, the Company determined that a triggering event occurred related to the sale of a vessel, as the carrying value exceeded its fair value. On April 20, 2022, the Company signed a memorandum of agreement to sell the m/v Bulk Pangaea for $8.6 million in net consideration after brokerage commissions. As a result, we recorded an impairment charge of $3.0 million in the first quarter of 2022. The Company performed an impairment analysis on each asset group and concluded the estimated undiscounted future cash flows were higher than their carrying amounts and as such, no additional loss on impairment was recognized.