Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 09, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | Eagle Bulk Shipping Inc. | |
Entity Central Index Key | 1,322,439 | |
Trading Symbol | egle | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 18,804,203 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |
First Lien Facility [Member] | |||
Noncurrent liabilities: | |||
Lien Facility, net of debt issuance costs | $ 197,086,411 | $ 225,577,491 | |
Second Lien Facility [Member] | |||
Noncurrent liabilities: | |||
Lien Facility, net of debt issuance costs | 59,320,719 | ||
Cash and cash equivalents | 11,874,047 | 24,896,161 | |
Accounts receivable | 5,563,156 | 7,076,528 | |
Prepaid expenses | 2,811,833 | 3,232,763 | |
Vessel held for sale | 3,212,200 | ||
Inventories | 6,846,985 | 5,574,406 | |
Other assets | 687,738 | 245,569 | |
Total current assets | 30,995,959 | 41,025,427 | |
Vessels and vessel improvements, at cost, net of accumulated depreciation of $62,955,218 and $49,148,080, respectively | 701,052,452 | 733,960,731 | |
Other fixed assets, net of accumulated depreciation of $223,135 and $159,827, respectively | 578,229 | 220,509 | |
Restricted cash | 74,917 | 141,161 | |
Deferred drydock costs | 11,794,150 | 11,146,009 | |
Other assets | 769,247 | 109,287 | |
Total noncurrent assets | 714,268,995 | 745,577,697 | |
Total assets | 745,264,954 | 786,603,124 | |
Accounts payable | 7,896,872 | 8,216,473 | |
Accrued interest | 401,232 | ||
Other accrued liabilities | 10,788,233 | 10,827,075 | |
Fair value below contract value of time charters acquired | 820,313 | 1,283,926 | |
Unearned charter hire revenue | 3,597,123 | 1,560,402 | |
Fair value of derivative instrument | 294,150 | ||
Current portion of long-term debt | 15,625,000 | ||
Total current liabilities | 23,396,691 | 37,914,108 | |
Payment-in-kind interest on Second Lien Facility | 2,123,333 | ||
Fair value below contract value of time charters acquired | 4,306,639 | 4,094,122 | |
Other liabilities | 795,334 | 672,941 | |
Total noncurrent liabilities | 263,632,436 | 230,344,554 | |
Total liabilities | 287,029,127 | 268,258,662 | |
Stockholders' equity: | |||
Common stock, $.01 par value, 150,000,000 shares authorized, 2,254,989 and 1,883,303 shares issued and outstanding, respectively* | [1] | 22,550 | 18,833 |
Additional paid-in capital* | [1] | 679,833,213 | 678,171,322 |
Accumulated deficit | (221,619,936) | (159,845,693) | |
Total stockholders' equity | 458,235,827 | 518,344,462 | |
Total liabilities and stockholders' equity | $ 745,264,954 | $ 786,603,124 | |
[1] | Adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accumulated depreciation, vessels | $ 62,955,218 | $ 49,148,080 |
Accumulated depreciation, other fixed assets | $ 223,135 | $ 159,827 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 2,254,989 | 1,883,303 |
Common stock, shares outstanding (in shares) | 2,254,989 | 1,883,303 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Revenues, net of commissions | $ 25,590,434 | $ 22,657,372 | $ 46,868,722 | $ 48,988,538 | |
Voyage expenses | 7,450,149 | 3,156,304 | 16,694,196 | 8,338,479 | |
Vessel expenses | 18,594,587 | 20,182,731 | 39,075,222 | 40,631,437 | |
Charter hire expenses | 1,668,239 | 1,233,132 | 3,156,757 | 2,449,096 | |
Depreciation and amortization | 9,654,129 | 10,898,049 | 19,050,830 | 21,455,220 | |
General and administrative expenses | 4,874,719 | 5,844,165 | 10,206,062 | 12,279,168 | |
Refinancing expenses | 239,390 | 5,873,650 | |||
Impairment of vessels | 6,167,262 | ||||
Loss on vessel held for sale | 115,000 | 115,000 | |||
Loss on sale of vessels | 286,210 | 5,696,675 | 286,210 | 5,696,675 | |
Total operating expenses | 42,882,423 | 47,011,056 | 100,625,189 | 90,850,075 | |
Operating loss | (17,291,989) | (24,353,684) | (53,756,467) | (41,861,537) | |
Interest expense | 4,902,857 | 2,986,817 | 7,720,503 | 6,148,983 | |
Interest income | (58) | (3,512) | (2,955) | ||
Other expense | 300,785 | 167,799 | 300,785 | 167,799 | |
Total other expense, net | 5,203,584 | 3,154,616 | 8,017,776 | 6,313,827 | |
Net loss | $ (22,495,573) | $ (27,508,300) | $ (61,774,243) | $ (48,175,364) | |
Weighted average shares outstanding *: | |||||
Basic (in shares) | [1] | 2,254,665 | 1,881,968 | 2,073,068 | 1,879,175 |
Diluted (in shares) | [1] | 2,254,665 | 1,881,968 | 2,073,068 | 1,879,175 |
Per share amounts*: | |||||
Basic net loss (in dollars per share) | [1] | $ (9.98) | $ (14.62) | $ (29.80) | $ (25.64) |
Diluted net loss (in dollars per share) | [1] | $ (9.98) | $ (14.62) | $ (29.80) | $ (25.64) |
[1] | Adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net loss | $ (22,495,573) | $ (27,508,300) | $ (61,774,243) | $ (48,175,364) |
Other comprehensive income: | ||||
Change in unrealized gain/(loss) on investment | 172,976 | (186,576) | ||
Total other comprehensive income (loss) | 172,976 | (186,576) | ||
Comprehensive loss | $ (22,495,573) | $ (27,335,324) | $ (61,774,243) | $ (48,361,940) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Net Income (Loss) [Member] | Retained Earnings [Member] | Total | ||
Balance (in shares) at Dec. 31, 2015 | [1] | 1,883,303 | |||||
Balance at Dec. 31, 2015 | $ 18,833 | [1] | $ 678,171,322 | $ (159,845,693) | $ 518,344,462 | ||
Net loss | $ (61,774,243) | (61,774,243) | (61,774,243) | ||||
Issuance of shares in connection with the entry into the Second Lien Loan Agreement (in shares) | [1] | 371,276 | |||||
Issuance of shares in connection with the entry into the Second Lien Loan Agreement | $ 3,713 | [1] | (3,713) | ||||
Vesting of restricted shares withheld for employee tax (in shares) | [1] | 410 | |||||
Vesting of restricted shares withheld for employee tax | $ 4 | [1] | (2,942) | (2,938) | |||
Non-cash compensation | 1,668,546 | 1,668,546 | |||||
Balance (in shares) at Jun. 30, 2016 | [1] | 2,254,989 | |||||
Balance at Jun. 30, 2016 | $ 22,550 | [1] | $ 679,833,213 | $ (221,619,936) | $ 458,235,827 | ||
[1] | Adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Term Loan [Member] | ||
Cash flows from financing activities: | ||
Repayment of loan | $ (17,659,000) | $ (11,812,500) |
Revolver Loan [Member] | ||
Cash flows from financing activities: | ||
Repayment of loan | (30,158,500) | |
Net loss | (61,774,243) | (48,175,364) |
Depreciation | 17,661,150 | 20,523,130 |
Amortization of deferred drydocking costs | 1,389,680 | 932,090 |
Amortization of debt issuance costs | 799,648 | 1,256,313 |
Amortization of fair value below contract value of time charter acquired | (251,096) | (792,173) |
Payment-in-kind interest on Second Lien Facility | 2,123,333 | |
Loss on sale of vessels | 286,210 | 5,696,675 |
Loss on vessel held for sale | 115,000 | |
Impairment of vessels | 6,167,262 | |
Realized loss from investment | 167,799 | |
Non-cash compensation expense | 1,668,546 | 2,207,579 |
Drydocking expenditures | (2,037,821) | (8,505,455) |
Accounts receivable | 1,513,372 | 3,193,475 |
Other assets | (1,102,129) | 1,616,634 |
Prepaid expenses | 420,930 | 329,290 |
Inventories | (1,272,579) | (548,385) |
Unrealized loss on derivatives | 294,150 | |
Accounts payable | (319,601) | (2,206,668) |
Accrued interest | (401,232) | (146,123) |
Other accrued liabilities | 83,551 | 2,132,527 |
Unearned revenue | 2,036,721 | (1,009,845) |
Net cash used in operating activities | (32,599,148) | (23,328,501) |
Vessels and vessel improvements | (237,235) | (1,407,801) |
Purchase of other fixed assets | (421,028) | |
Proceeds from sale of vessels | 5,767,000 | 4,235,542 |
Restricted cash | 66,244 | |
Proceeds from sale of investment | 5,807,917 | |
Net cash provided by investing activities | 5,174,981 | 8,635,658 |
Proceeds from Second Lien Facility | 60,000,000 | |
Proceeds from Revolver Loan Facility under First Lien Facility | 5,158,500 | 15,000,000 |
Deferred financing costs | (2,336,009) | |
Financing cost paid to lender | (600,000) | |
Cash used to settle net share equity awards | (2,938) | (1,285,506) |
Net cash provided by financing activities | 14,402,053 | 1,901,994 |
Net decrease in cash and cash equivalents | (13,022,114) | (12,790,849) |
Cash and cash equivalents at beginning of period | 24,896,161 | 39,975,287 |
Cash and cash equivalents at end of period | $ 11,874,047 | $ 27,184,438 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and General Information | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | Note 1. Basis of Presentation and General Information The accompanying condensed consolidated financial statements include the accounts of Eagle Bulk Shipping Inc. and its wholly-owned subsidiaries (collectively, the “Company”, “we” or “our”). The Company is engaged in the ocean transportation of dry bulk cargoes worldwide through the ownership, chartering and operation of dry bulk vessels. The Company's fleet is comprised of Supramax and Handymax dry bulk carriers and the Company operates its business in one business segment. As of June 30, 2016, the Company owned and operated a modern fleet of 42 oceangoing vessels comprised of 41 Supramax vessels and 1 Handymax vessel with a combined carrying capacity of 2,302,855 dwt and an average age of approximately 8.7 years. The Company chartered in a Handylog beginning October 2, 2015 for a period of seven years and a 63,000 dwt newbulding vessel that was delivered in May 2016 for a period of nine to fourteen months. The following table represents certain information about the Company's charterers that individually accounted for more than 10% of the Company's revenue during the periods indicated: % of Revenue Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Charterer Charterer A* - 27% - 28% *Charter revenue from a pool in which the Company participated. The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), and the rules and regulations of the Securities and Exchange Commission (“SEC”) which apply to interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes normally included in consolidated financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2015 Annual Report on Form 10-K, filed with the SEC on March 31, 2016. The accompanying condensed consolidated financial statements are unaudited and include all adjustments (consisting of normal recurring adjustments) that management considers necessary for a fair presentation of its consolidated financial position and results of operations for the interim periods presented. We have made a reclassification adjustment to conform the prior period amounts to the current period’s presentation in the Condensed Consolidated Statement of Operations. This change in classification had no effect on the previously reported Condensed Consolidated Statement of Operations and on total operating expenses. For the three and six months ended June 30, 2015, we have reclassified the technical management costs of $1.5 million and $3.0 million respectively, from Vessel expenses to General and administrative expenses to closely align the Company’s presentation to that of many of its peers. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year. Effective as of the opening of trading on August 5, 2016, the Company completed a 1 for 20 reverse stock split as previously approved by the Company's board of directors and shareholders. Proportional adjustments were made to the Company's issued and outstanding common stock and to its common stock underlying stock options and other common stock-based equity grants outstanding immediately prior to the effectiveness of the reverse stock split as well as the applicable exercise price. In addition, proportional adjustments were made to the number of shares of common stock issuable upon exercise of the warrants exercisable and the exercise price of the warrants pursuant to the terms thereof. No fractional shares were issued in connection with the reverse stock split, as shareholders who would otherwise hold a fractional share of common stock will receive a cash payment in lieu of that fractional share. All references herein to common stock and per share data for all periods presented in these consolidated financial statements and notes thereto, have been retrospectively adjusted to reflect the reverse stock split. Unless otherwise indicated, share amounts presented do not reflect the issuance of shares of common stock in connection with the Second Lien Loan Agreement. See Note 4. We adopted the provisions of the Accounting Standard Update 2015-03 issued by the FASB (“Financial Accounting Standards Board”) relating to presentation of debt issuance costs. Accordingly, we have reclassified previously reported deferred financing costs of $435,816 as of December 31, 2015 as a reduction of the long-term debt balance retrospectively. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates and assumptions of the Company are useful lives of fixed assets and intangibles, the period of amortization, the allowances for bad debt, and the fair value of warrants and stock-based compensation. |
Note 2 - New Accounting Pronoun
Note 2 - New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2. New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update, (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, and shall be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In May 2016, the FASB issued Accounting Standards Update No. 2016-12, Revenue from Contracts with customers. This update further provides guidance on applying collectability criterion to assess whether the contract is valid and represents a substantive transaction on the basis whether a customer has the ability and intention to pay the promised consideration. This update also permits an entity as accounting policy election, to exclude amounts collected from customers for all sales taxes. The Company is evaluating the potential impact of the adoption of this standard on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” This ASU establishes specific guidance to an organization's management on their responsibility to evaluate whether there is substantial doubt about the organization's ability to continue as a going concern. The provisions of this ASU are effective for interim and annual periods ending after December 15, 2016. The Company is evaluating the potential impact of the adoption of this standard on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-15, "Interest—Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." The Company adopted this accounting standard on January 1, 2016. Accordingly, $435,816 previously classified in other assets was retrospectively classified as a reduction of the long-term debt balance as of December 31, 2015. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”. The new guidance specifies that inventory be measured at the lower of cost and net realizable value. The amendment would apply prospectively and would be effective for annual reporting periods beginning after December 15, 2016 and interim reporting periods within annual reporting periods beginning after December 15, 2017. The Company is evaluating the potential impact of the adoption of this standard on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. ASU 2016-02 is intended to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In order to meet that objective, the new standard requires recognition of the assets and liabilities that arise from leases. A lessee will be required to recognize on the balance sheet the assets and liabilities for leases with lease terms of more than 12 months. Accounting by lessors will remain largely unchanged from current U.S. generally accepted accounting principles. The new standard is effective for public companies for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Company is currently evaluating the effect that adopting this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Stock Compensation. The new guidance is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company is evaluating the potential impact of the adoption of this standard on its consolidated financial statements. |
Note 3 - Vessels
Note 3 - Vessels | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 3. Vessels Vessels and Vessel Improvements At June 30, 2016, the Company’s owned operating fleet consisted of 42 dry bulk vessels. As of December 31, 2015, we determined that the future undiscounted cash flows did not exceed the net book value on six of our vessels. This is a result of our intention to divest six of our older vessels in the short-term period. As a result, we reduced the carrying value of each vessel to its fair market value as of December 31, 2015 and recorded an impairment charge of $50,872,734. As of March 31, 2016, due to further reduction in asset value during the first quarter of 2016, we determined that the future undiscounted cash flows of six of our vessels did not exceed their net book value. As a result, we reduced the carrying value of each vessel to its fair market value as of March 31, 2016 and recorded an impairment charge of $6,167,262. On April 26, 2016, the Company sold the vessel Peregrine for $2.6 million, after brokerage commissions and associated selling expenses, and recorded a net loss of approximately $150,000 in the second quarter of 2016. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility. On June 16, 2016, the Company sold the vessel Falcon for $3.2 million, after brokerage commissions and associated selling expenses, and recorded a net loss of approximately $140,000 in the second quarter of 2016. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility. As of June 30, 2016, the Company determined that all the held for sale criteria have been met for the vessel Harrier and reviewed its carrying amount in the books compared to the fair market value less the selling expenses. The review indicated that such carrying amount is in excess of the fair market value less the selling expenses. Therefore, the Company recorded a loss of $115,000 in its Condensed Consolidated Statement of Operations and classified the carrying amount of the vessel as a current asset in its Condensed Consolidated Balance Sheet. On July 13, 2016, the Company sold the vessel Harrier for $3.2 million, after brokerage commissions and associated selling expenses. The vessel was delivered to the buyers on the same day. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility. On August 2, 2016, the Company signed a memorandum of agreement to sell the vessel Kittiwake for $4.2 million after brokerage commission and associated selling expenses. The vessel is expected to be delivered in the third quarter of 2016. Vessels and vessel improvements: Vessels and vessel improvements, at December 31, 2015 $ 733,960,731 Purchase of vessel improvements 237,235 Disposal of vessels (6,053,210 ) Depreciation expense (17,597,842 ) Transfer to vessel held for sale (3,327,200 ) Vessel impairment charge (6,167,262 ) Vessels and Vessel Improvements, at June 30, 2016 $ 701,052,452 |
Note 4 - Debt
Note 4 - Debt | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | Note 4. Debt Debt consists of the following: June 30, 2016 December 31, 2015 First Lien Facility / Exit Financing Facility $ 202,716,000 $ 245,375,000 Debt issuance costs First Lien / Exit Financing Facility (5,629,589 ) (4,172,509 ) First Lien Facility / Exit Financing Facility net of debt issuance costs 197,086,411 241,202,491 Second Lien Facility 60,000,000 - Debt issuance Costs Second Lien (679,281 ) - Second Lien Facility, net of Debt issuance costs 59,320,719 - Less: Current Portion Exit Financing Facility - (15,625,000 ) Total debt $ 256,407,130 $ 225,577,491 Corporate Reorganization and Refinancing On March 30, 2016, we entered into the Contribution Agreement pursuant to which the Company transferred, assigned and contributed to Eagle Shipping, and Eagle Shipping received, accepted and assumed, all of the tangible and intangible assets of the Company (other than the membership interests in Eagle Shipping owned by the Company and certain deposit accounts held by the Company, which deposit account balances were transferred) and all of the liabilities of the Company, including all of the Company’s rights and obligations under the Exit Financing Facility. Immediately following the Contribution, Eagle Shipping became the direct parent company of each of the Company’s previously directly-owned subsidiaries. The Contribution was part of the transactions contemplated by the agreements also entered into on March 30, 2016 and described below, which transactions were consummated on March 30, 2016, after the fulfillment of certain conditions precedent. First Lien Facility On March 30, 2016, Eagle Shipping, as borrower, and certain of its subsidiaries that are guarantors under the Exit Financing Facility, as guarantors, entered into an Amended and Restated First Lien Loan Agreement (the “A&R First Lien Loan Agreement”) with the lenders thereunder (the “First Lien Lenders”) and ABN AMRO Capital USA LLC, as agent and security trustee for the lenders. The A&R First Lien Loan Agreement amends and restates the Exit Financing Facility in its entirety, providing for Eagle Shipping to be the borrower in the place of the Company, and further provides for a waiver of any and all events of default occurring as a result of the voluntary OFAC Disclosure (as defined below under Note 6 “Commitments and Contingencies - Legal Proceedings”). The A&R First Lien Loan Agreement provides for a term loan outstanding as of March 30, 2016, in the amount of $201,468,750 as well as a $50,000,000 revolving credit facility, of which $10,000,000 was undrawn prior to the refinancing (the term loan, together with the revolving credit facility, the “First Lien Facility”). The First Lien Facility matures on October 15, 2019. An aggregate fee of $600,000 was paid to the Agent and First Lien Lenders in connection with the First Lien Facility. As of June 30, 2016, our total availability in the revolving credit facility under the First Lien Facility was $35,000,000 and our cash balance as of June 30, 2016 was $11,874,047. Eagle Shipping’s obligations under the First Lien Facility are secured by a first priority mortgage on each of the vessels currently in the Company’s fleet and such other vessels that it may from time to time include with the approval of the First Lien Lenders, a first assignment of its earnings account, its liquidity account and its vessel-owning subsidiaries’ earnings accounts, a first assignment of all charters with terms that may exceed 18 months, freights, earnings, insurances, requisition compensation and management agreements with respect to the vessels and a first priority pledge of the membership interests of each of Eagle Shipping’s vessel-owning subsidiaries. In the future, Eagle Shipping may grant additional security to the lenders from time to time. The First Lien Facility contains financial covenants requiring Eagle Shipping, among other things, to ensure that the aggregate market value of the vessels in the Company’s fleet (plus the value of certain additional collateral) at all times on or after July 1, 2017 does not fall below 100% in the third and fourth quarters of 2017, 110% in 2018 and 120% in 2019 of the aggregate principal amount of debt outstanding (subject to certain adjustments) under the First Lien Facility and maintain minimum liquidity of not less than the greater of (i) $8,140,000 and (ii) $185,000 per vessel in the Company’s fleet. In addition, the First Lien Facility also imposes operating restrictions on Eagle Shipping including limiting Eagle Shipping’s ability to, among other things: pay dividends; incur additional indebtedness; create liens on assets; acquire and sell capital assets (including vessels); and merge or consolidate with, or transfer all or substantially all of Eagle Shipping’s assets to, another person. Upon entering into the First Lien Facility, Eagle Shipping made a principal payment with respect to the term loan of $11,718,750. For the fiscal quarters ending June 30, 2017 and June 30, 2018 and the fiscal years ending December 31, 2017 and 2018, Eagle Shipping is obligated to repay the First Lien Facility semi-annually in an amount equal to 75% of Eagle Shipping’s excess cash flow for the preceding semi-annual period, as defined in the First Lien Facility, subject to a cap of such mandatory prepayments of $15,625,000 in any fiscal year. Thereafter, Eagle Shipping will make payments of $3,906,250 on January 15, 2019, April 15, 2019, and July 15, 2019, and a final balloon payment equal to the remaining amount outstanding under the First Lien Facility on October 15, 2019. The Company has prepaid $2,034,000 in the second quarter of 2016 pursuant to the terms of the loan agreement relating to the mandatory prepayment upon sale of vessels. The repayment schedule mentioned above has been changed to reflect the prepayment made in second quarter of 2016. As of June 30, 2016, the Company is required to make the payments of $3,831,769 on January 15, 2019, April 15, 2019, July 15, 2019, and a final balloon payment equal to the remaining amount outstanding under the First Lien Facility on October 15, 2019. This prepayment schedule does not reflect the mandatory prepayments to be made upon sale of the vessel MV Kittiwake. See Note 3. The First Lien Facility also includes customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, representation or warranty, a cross-default to other indebtedness and non-compliance with security documents. Further, there would be a default if any event occurs or circumstances arise in light of which, in the First Lien Lenders’ judgment, there is significant risk that Eagle Shipping is or would become insolvent. Eagle Shipping is not permitted to pay dividends. Indebtedness under the First Lien Facility may also be accelerated if Eagle Shipping experiences a change of control. Second Lien Facility On March 30, 2016, Eagle Shipping, as borrower, and certain of its subsidiaries, as guarantors, entered into a Second Lien Loan Agreement (the “Second Lien Loan Agreement”) with certain lenders (the “Second Lien Lenders”) and Wilmington Savings Fund Society, FSB as agent for the Second Lien Lenders (the “Second Lien Agent”). The Second Lien Lenders include certain of the Company’s existing shareholders as well as other investors. The Second Lien Loan Agreement provides for a term loan in the amount of $60,000,000 (the “Second Lien Facility”), and matures on January 14, 2020 (91 days after the original stated maturity of the First Lien Facility). The term loan under the Second Lien Facility bears interest at a rate of LIBOR plus 14.00% per annum (with a 1.0% LIBOR floor) or the Base Rate (as defined in the Second Lien Loan Agreement) plus 13.00% per annum, paid in kind quarterly in arrears. The Company used the proceeds from the Second Lien Facility to pay down amounts outstanding in respect of the revolving credit facility under the Exit Financing Facility, pay three quarters of amortization payments under the Exit Financing Facility, pay transaction fees in connection with the entry into the A&R First Lien Loan Agreement and the Second Lien Loan Agreement, and add cash to the balance sheet, which cash would be deposited in an account subject to the security interest and control of the First Lien Lenders and the Second Lien Lenders. Eagle Shipping’s obligations under the Second Lien Facility are secured by a second priority lien on the same collateral securing Eagle Shipping’s obligations under the First Lien Facility, subject to the terms of the Intercreditor Agreement (as defined below). Eagle Shipping may grant additional security to the Second Lien Lenders from time to time in the future, subject to the terms of the Intercreditor Agreement. The Second Lien Facility contains financial covenants substantially similar to those in the First Lien Facility, subject to standard cushions, requiring Eagle Shipping, among other things, to ensure that the aggregate market value of the vessels in the Company’s fleet (plus the value of certain additional collateral) at all times on or after July 1, 2017 does not fall below 100% in the third and fourth quarters of 2017, 110% in 2018 and 120% in 2019 of the aggregate principal amount of debt outstanding (subject to certain adjustments) under the Second Lien Facility (provided that Eagle Shipping will not be required to comply with such covenant until the First Lien Facility has been paid in full) and to maintain a minimum liquidity of not less than the greater of (i) $6,512,000 and (ii) $148,000 per vessel in Eagle Shipping’s fleet. In addition, the Second Lien Facility also imposes operating restrictions on Eagle Shipping including limiting Eagle Shipping’s ability to, among other things: pay dividends; incur additional indebtedness; create liens on assets; acquire and sell capital assets (including vessels); and merge or consolidate with, or transfer all or substantially all of Eagle Shipping’s assets to, another person. Eagle Shipping may not prepay the Second Lien Facility while amounts or commitments under the First Lien Facility remain outstanding. The Second Lien Facility also includes customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, representation or warranty, a cross-default to other indebtedness and non-compliance with security documents. Further, there would be a default if any event occurs or circumstances arise in light of which, in the Second Lien Lenders’ judgment, there is significant risk that Eagle Shipping is or would become insolvent. Eagle Shipping is not permitted to pay dividends. Indebtedness under the Second Lien Facility may also be accelerated if Eagle Shipping experiences a change of control. In connection with the entry into the Second Lien Loan Agreement, on March 30, 2016, the Company agreed to issue 16,889,828 shares of common stock (adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1) to the Second Lien Lenders pro rata based on their participation in the Second Lien Facility, which Second Lien Lenders received shares equivalent to approximately 90% of the outstanding common stock of the Company after such issuance. The issuance of the shares of common stock was made pursuant to the exemption from registration under Section 4(a)(2) of the Securities Act. In a first step, the Company issued and delivered 371,276 shares of common stock (adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1), representing approximately 19.4% of the Company’s pre-transaction outstanding shares of common stock, to the Second Lien Lenders. In a second step, approved by the Company’s shareholders at a special meeting held on August 2, 2016, the Company issued and delivered an additional 16,420,098 shares of common stock (adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1), to the Second Lien Lenders and an additional 98,454 shares of common stock (Adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1), to the Chairman and Chief Executive Officer, both of whom participated as Second Lien Lenders. Intercreditor Agreement Concurrently with Eagle Shipping’s entry into the A&R First Lien Loan Agreement and the Second Lien Loan Agreement, and in connection with the granting of security interest in the collateral under those agreements, Eagle Shipping entered into an Intercreditor Agreement, dated as of March 30, 2016 (the “Intercreditor Agreement”) among Eagle Shipping, the First Lien Agent and the Second Lien Agent. The Intercreditor Agreement governs the relative rights and priorities of the secured parties in respect of liens on the assets of Eagle Shipping and its subsidiaries securing the First Lien Facility and the Second Lien Facility. For the three months ended June 30, 2016, interest rates on the First Lien Facility ranged from 3.94% to 4.53% including a margin over LIBOR applicable under the terms of the First Lien Facility and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate including the amortization of debt discount for this period was 5.44%. For the three months ended June 30, 2015, interest rate on the Exit Financing Facility ranged from 4.05% to 4.08% including a margin over LIBOR applicable under the terms of the Exit Financing Facility and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate including the amortization of debt discount for this period was 5.24%. For the six months ended June 30, 2016, interest rates on the First Lien Facility ranged from 3.86% to 4.53% including a margin over LIBOR applicable under the terms of the First Lien facility and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate including the amortization of debt discount for this period was 5.48%. For the six months ended June 30, 2015, interest rates on the Exit Financing Facility ranged from 4.04% to 4.08%, including a margin over LIBOR applicable under the terms of the Exit Financing Facility and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate including the amortization of debt discount for this period was 5.41%. Interest Expense consisted of : Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 First Lien Facility Interest $ 2,288,380 $ 2,454,928 $ 4,797,522 $ 4,892,670 Payment in Kind interest on Second Lien Facility 2,123,333 - 2,123,333 - Amortization of Debt issuance costs 491,144 531,889 799,648 1,256,313 Total Interest Expense $ 4,902,857 $ 2,986,817 $ 7,720,503 $ 6,148,983 Interest paid amounted to $4,999,476 and $5,038,792, for the six months ended June 30, 2016 and 2015 respectively. |
Note 5 - Derivative Instruments
Note 5 - Derivative Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Derivatives and Fair Value [Text Block] | Note 5. Derivative Instruments and Fair Value Measurements Forward freight agreements The Company trades in forward freight agreements (“FFAs”), with the objective of utilizing this market as economic hedging instruments that reduce the risk of specific vessels to changes in the freight market. The Company’s FFAs have not qualified for hedge accounting treatment. As such, unrealized and realized gains are recognized as a component of other expense in the Condensed Consolidated Statement of Operations. The effect of non-designated derivative instruments on the Condensed Consolidated Statements of Operations: Derivatives not designated Location of Amount of Loss Amount of Loss as hedging instruments Loss Recognized Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 FFAs Other expense $ (300,785 ) $ - $ (300,785 ) $ - Total $ (300,785 ) $ - $ (300,785 ) $ - Cash Collateral Disclosures The Company does not offset fair value amounts recognized for derivatives by the right to reclaim cash collateral or the obligation to return cash collateral. As of June 30, 2016, the Company posted cash collateral related to derivative instruments under its collateral security arrangements of $558,075, which it recorded as other current assets in the Condensed Consolidated Balance Sheet. Fair Value Measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash, cash equivalents and restricted cash— Debt The Company defines fair value, establishes a framework for measuring fair value and provides disclosures about fair value measurements. The fair value hierarchy for disclosure of fair value measurements is as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Our Level 1 non-derivatives include cash, money-market accounts and restricted cash accounts. Our Level 1 derivatives include FFAs. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Our Level 2 non-derivatives include our term loan account, asset impairment and asset held for sale. Level 3 – Inputs that are unobservable (for example cash flow modeling inputs based on assumptions) In the first quarter of 2016, as discussed in Note 3, the Company recorded a vessel impairment of $6,167,262 to its recorded vessel value as a result of a further reduction in asset value since December 31, 2015 coupled with management’s intention to divest of six of its vessels in the short-term period. Prior to the impairment, such vessels had a recorded value of $25,317,262. In the fourth quarter of 2015, the Company recorded an impairment of $50,872,734 on the above noted vessels. Prior to the impairment, such vessels had a recorded value of $76,332,734. |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 6. Commitments and Contingencies Legal Proceedings In November 2015, the Company filed a voluntary self-disclosure report with the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) regarding certain apparent violations of U.S. sanctions regulations in the provision of shipping services for third party charterers with respect to the transportation of cargo to or from Myanmar (formerly Burma) (the “OFAC Disclosure”). At the time of such apparent violations, the Company had a different senior operational management team. Notwithstanding the fact that the apparent violations took place under a different senior operational management team and although the Company's new board and management have implemented robust remedial measures and significantly enhanced its compliance safeguards, there can be no assurance that OFAC will not conclude that these past actions warrant the imposition of civil penalties and/or referral for further investigation by the U.S. Department of Justice. The report was provided to OFAC for the agency’s review, consideration and determination regarding what action, if any, may be taken in resolution of this matter. The Company will continue to cooperate with the agency regarding this matter and cannot estimate when such review will be concluded. While the ultimate impact of these matters cannot be determined, there can be no assurance that the impact will not be material to the Company’s financial condition or results of operations. Other Commitments On July 28, 2011, the Company entered into an agreement to charter-in a 37,000 dwt newbuilding Japanese vessel that was delivered in October 2014 for seven years with an option for an additional one year. The hire rate for the first to seventh year is $13,500 per day and $13,750 per day for the eighth year option. On May 9, 2016, the Company entered into an agreement to charter-in a 63,000 dwt newbuilding Chinese vessel that was delivered on May 20, 2016 for a period of nine to fourteen months. The hire rate for the term is $6,000 per day. On July 12, 2016, the Company entered into an agreement to charter-in a 61,000 dwt Japanese vessel that was delivered in July 2016 for a period of eleven to thirteen months. The hire rate for the term is $6,000 per day. The Company is involved in legal proceedings and may become involved in other legal matters arising in the ordinary course of its business. The Company evaluates these legal matters on a case-by-case basis to make a determination as to the impact, if any, on its business, liquidity, results of operations, financial condition or cash flows. |
Note 7 - Loss Per Common Share
Note 7 - Loss Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 7. Loss Per Common Share The computation of basic net loss per share is based on the weighted average number of common shares outstanding for the periods ended June 30, 2016 and June 30, 2015. Diluted net loss per share gives effect to stock awards, stock options and restricted stock units using the treasury stock method, unless the impact is anti-dilutive. Diluted net loss per share as of June 30, 2016 does not include 30,385 unvested stock awards, 68,640 stock options and 152,266 warrants as their effect was anti-dilutive. Diluted net loss per share as of June 30, 2015 does not include 12,478 stock awards, 26,766 stock options and 152,266 warrants as their effect was anti-dilutive. Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net loss $ (22,495,573 ) $ (27,508,300 ) $ (61,774,243 ) $ (48,175,364 ) Weighted Average Shares – Basic* 2,254,665 1,881,968 2,073,068 1,879,175 Dilutive effect of stock options and restricted stock units - - - - Weighted Average Shares – Diluted* 2,254,665 1,881,968 2,073,068 1,879,175 Basic Loss Per Share* $ (9.98 ) $ (14.62 ) $ (29.80 ) $ (25.64 ) Diluted Loss Per Share* $ (9.98 ) $ (14.62 ) $ (29.80 ) $ (25.64 ) *Adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1. |
Note 8 - Stock Incentive Plans
Note 8 - Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 8. Stock Incentive Plans Effective as of the opening of trading on August 5, 2016, the Company completed a 1 for 20 reverse stock split as previously approved by the Company's shareholders. Proportional adjustments were made to the Company's issued and outstanding common stock and to its common stock underlying stock options and other common stock-based equity grants outstanding immediately prior to the effectiveness of the reverse stock split. No fractional shares were issued in connection with the reverse stock split, as shareholders who would otherwise hold a fractional share of common stock received a cash payment in lieu of that fractional share. All references herein to common stock and per share data for all periods presented in these condensed consolidated financial statements and notes thereto, have been retrospectively adjusted to reflect the reverse stock split. 2014 Management Incentive Plan On October 15, 2014, the date the Company completed its balance sheet restructuring and emerged from Chapter 11 bankruptcy proceedings (the “Effective Date”), in accordance with the Company’s prepackaged plan of reorganization filed with and approved by the United States Bankruptcy Court for the Southern District of New York, the Company adopted the post-emergence Management Incentive Plan, which provides for the distribution of New Eagle MIP Primary Equity in the form of shares of common stock of the Company, and New Eagle MIP Options, to the participating senior management and other employees of the reorganized Company with 2% of the Company’s common stock (on a fully diluted basis) on the Effective Date, and two tiers of options to acquire 5.5% of the Company’s common stock (on a fully diluted basis) with different strike prices based on the equity value for the reorganized Company and a premium to the equity value, each of the foregoing to vest generally over a four year schedule through 25% annual installments commencing on the first anniversary of the Effective Date. The New Eagle MIP Primary Equity is subject to vesting, but the holder thereof is entitled to receive all dividends paid with respect to such shares as if such New Eagle MIP Primary Equity had vested on the grant date (subject to forfeiture by the holder in the event that such grant is terminated prior to vesting unless the administrator of the Management Incentive Program determines otherwise). The New Eagle MIP Options will contain adjustment provisions to reflect any transaction involving shares of the Company’s common stock, including as a result of any dividend, recapitalization, or stock split, so as to prevent any diminution or enlargement of the holder’s rights under the award. As of June 30, 2016, stock awards covering a total of 30,384 of the Company’s shares are outstanding. The stock awards vest ratably over four years. The Company is amortizing to non-cash compensation expense, included in general and administrative expenses, the fair value of the non-vested stock awards at the grant date. As of June 30, 2016, options covering 68,640 of the Company’s common shares are outstanding with exercise prices ranging from $78.4 to $505 per share (the market prices at the dates of grants). The options granted to members of the Company's management under the Management Incentive Plan vest and become exercisable in four equal annual installments beginning on the grant date. All options expire within seven years from the effective date. For the three months ended June 30, 2016 and 2015, the Company has recorded non-cash compensation charges included in General and administrative expenses of $841,933 and $323,128, respectively. For the six months ended June 30, 2016 and 2015, the Company has recorded non-cash compensation charges included in General and administrative expenses of $1,668,546 and $2,207,579, respectively. The future compensation anticipated to be recognized for the aforementioned restricted stock and options for the six months ending December 31, 2016 and for the years ending December 31, 2017 and 2018 will be $1,287,441, $1,479,655 and $605,779, respectively. |
Note 9 - Subsequent Events
Note 9 - Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 9. Subsequent Events Common Stock Private Placements On July 1, 2016 and July 10, 2016, respectively, the Company entered into Common Stock Purchase Agreements (collectively, the “Common Stock Purchase Agreements”), with certain purchasers (the “Common Stock Purchasers”). The Common Stock Purchasers include certain of our existing shareholders, who held approximately 70% of our outstanding equity prior to entry into the Common Stock Purchase Agreements and prior to giving effect to the delivery of all of the shares of common stock issued in connection with the Second Lien Loan Agreement, as well as our Chairman and Chief Executive Officer. The Common Stock Purchase Agreements provide for the issuance and sale by the Company to the Common Stock Purchasers of an aggregate amount of $88 million of common stock, at an initial price per share of $0.15, which amount per share was increased to $3 per share based on the reverse stock split ratio of 1-for-20 (as described below) (the “Reverse Stock Split Ratio”). The reverse stock split did not affect the aggregate purchase price paid by each of the Common Stock Purchasers and the gross proceeds to the Company. The proceeds are expected to contribute to the Company’s financial capacity and flexibility and to be used for acquisition of dry bulk vessels and general corporate purposes. The shares of common stock issued under the Common Stock Purchase Agreements will amount to 29,333,318 (based on the Reverse Stock Split Ratio, as described in more detail below), which will have the effect of diluting our existing shareholders. The Private Placement Common Shares will be issued pursuant to the private placement exemption from registration under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act. The closing of the transactions under the Common Stock Purchase Agreements is expected to close in the near term, as the closing conditions have been satisfied. Special Meeting of Shareholders On August 2, 2016, the Company’s shareholders voted to approve the following: ● the ratification of the issuance of shares of common stock in connection with the Second Lien Loan Agreement in an amount equal to or greater than 20% of the common stock outstanding before such issuance and the issuance of shares of common stock to certain officers and directors pursuant to the Second Lien Loan Agreement, pursuant to NASDAQ Listing Rules 5635(d) and 5635(c), respectively; ● an amendment to the Company’s Articles of Incorporation described below to increase the number of authorized shares of common stock; ● an amendment to the Company’s Articles of Incorporation, described in more detail below to effect a reverse stock split of the Company’s common stock by a ratio of between 1-for-10 and 1-for-50, inclusive; ● an amendment to the Company’s Articles of Incorporation to authorize 25,000,000 shares of preferred stock, par value $0.01; and ● the issuance of shares of common stock in connection with the Common Stock Purchase Agreements in an amount equal to or greater than 20% of the common stock outstanding before such issuance and the issuance of shares of common stock to certain officers and directors pursuant to the Second Lien Loan Agreement, pursuant to NASDAQ Listing Rules 5635(d) and 5635(c), respectively. Increase in Authorized Shares of Common Stock Effective upon the filing of an amendment to the Company’s Articles of Incorporation with the Registrar of Corporations of the Republic of the Marshall Islands on August 2, 2016, as approved by the Company’s shareholders at the special meeting of shareholders on August 2, 2016, the number of shares of common stock authorized to be issued by the Company was increased from 150,000,000 to 700,000,000. Reverse Stock Split Effective as of the opening of trading on August 5, 2016, the Company completed a 1 for 20 reverse stock split as previously approved by the Company's shareholders. Proportional adjustments were made to the Company's issued and outstanding common stock and to its common stock underlying stock options and other common stock-based equity grants outstanding immediately prior to the effectiveness of the reverse stock split. No fractional shares were issued in connection with the reverse stock split, as shareholders who would otherwise hold a fractional share of common stock received a cash payment in lieu of that fractional share. All references herein to common stock and per share data for all periods presented in these consolidated financial statements and notes thereto, have been retrospectively adjusted to reflect the reverse stock split. See Note 1. Preferred Stock Private Placement On May 26, 2016, the Company entered into a Preferred Stock Purchase Agreement (the “Preferred Stock Purchase Agreement”) with certain investors named therein, including certain of our existing shareholders and our Chairman and Chief Executive Officer (the “Purchasers”), pursuant to which the Company agreed to issue to the Purchasers in a private placement (the “Private Placement”) pursuant to the private placement exemption from registration under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act, shares of the Company’s 15% Cumulative Nonparticipating Redeemable Series A Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), at a purchase price of $1,000.00 per share with a 1.0% original issue discount, for aggregate gross proceeds expected to amount to approximately $6.3 million. The proceeds are expected to contribute to the Company’s financial capacity and flexibility and to be used for general corporate purposes and business initiatives, including the procurement of chartered tonnage to supplement the owned fleet. The closing of the transaction and the issuance of the shares of the Series A Preferred Stock is subject to customary closing conditions set forth in the Purchase Agreement, as well as the approval by the Company’s shareholders of an amendment to the Second Amended and Restated Articles of Incorporation (the “Articles of Incorporation”) to specify the total number of shares of preferred stock that the Company is authorized to issue as required by Section 28(e) of the Business Corporations Act (“BCA”) of the Republic of the Marshall Islands (the “Articles Amendment”). On July 19, 2016, the Company and the Purchasers amended the Preferred Stock Purchase Agreement to amend the optional termination date of the Purchase Agreement by changing such date from August 1, 2016 to September 1, 2016. The shareholders of the Company approved the Articles Amendment at the special meeting of shareholders held on August 2, 2016, and the Articles Amendment became effective upon filing with the Registrar of Corporations of the Republic of the Marshall Islands on August 2, 2016. |
Note 1 - Basis of Presentatio17
Note 1 - Basis of Presentation and General Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule Of Consolidated Revenue From Major Charters [Table Text Block] | % of Revenue Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Charterer Charterer A* - 27% - 28% |
Note 3 - Vessels (Tables)
Note 3 - Vessels (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule Of Vessel And Vessel Improvements [Table Text Block] | Vessels and vessel improvements, at December 31, 2015 $ 733,960,731 Purchase of vessel improvements 237,235 Disposal of vessels (6,053,210 ) Depreciation expense (17,597,842 ) Transfer to vessel held for sale (3,327,200 ) Vessel impairment charge (6,167,262 ) Vessels and Vessel Improvements, at June 30, 2016 $ 701,052,452 |
Note 4 - Debt (Tables)
Note 4 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30, 2016 December 31, 2015 First Lien Facility / Exit Financing Facility $ 202,716,000 $ 245,375,000 Debt issuance costs First Lien / Exit Financing Facility (5,629,589 ) (4,172,509 ) First Lien Facility / Exit Financing Facility net of debt issuance costs 197,086,411 241,202,491 Second Lien Facility 60,000,000 - Debt issuance Costs Second Lien (679,281 ) - Second Lien Facility, net of Debt issuance costs 59,320,719 - Less: Current Portion Exit Financing Facility - (15,625,000 ) Total debt $ 256,407,130 $ 225,577,491 |
Schedule Of Interest Expense Excluding Capitalized Interest [Table Text Block] | Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 First Lien Facility Interest $ 2,288,380 $ 2,454,928 $ 4,797,522 $ 4,892,670 Payment in Kind interest on Second Lien Facility 2,123,333 - 2,123,333 - Amortization of Debt issuance costs 491,144 531,889 799,648 1,256,313 Total Interest Expense $ 4,902,857 $ 2,986,817 $ 7,720,503 $ 6,148,983 |
Note 5 - Derivative Instrumen20
Note 5 - Derivative Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Derivatives not designated Location of Amount of Loss Amount of Loss as hedging instruments Loss Recognized Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 FFAs Other expense $ (300,785 ) $ - $ (300,785 ) $ - Total $ (300,785 ) $ - $ (300,785 ) $ - |
Note 7 - Loss Per Common Share
Note 7 - Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net loss $ (22,495,573 ) $ (27,508,300 ) $ (61,774,243 ) $ (48,175,364 ) Weighted Average Shares – Basic* 2,254,665 1,881,968 2,073,068 1,879,175 Dilutive effect of stock options and restricted stock units - - - - Weighted Average Shares – Diluted* 2,254,665 1,881,968 2,073,068 1,879,175 Basic Loss Per Share* $ (9.98 ) $ (14.62 ) $ (29.80 ) $ (25.64 ) Diluted Loss Per Share* $ (9.98 ) $ (14.62 ) $ (29.80 ) $ (25.64 ) |
Note 1 - Basis of Presentatio22
Note 1 - Basis of Presentation and General Information (Details Textual) | Aug. 05, 2016 | Mar. 30, 2016 | Oct. 02, 2015t | Aug. 05, 2012 | Jun. 30, 2015USD ($) | Jun. 30, 2016t | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Supramax Vessels [Member] | ||||||||
Vessels In Operation | 41 | |||||||
Handymax Vessels [Member] | ||||||||
Vessels In Operation | 1 | |||||||
Reclassification of Technical Management Cost From Vessel Expenses to General and Administrative Expenses [Member] | Three Months Ended March 31, 2015 [Member] | ||||||||
Prior Period Reclassification Adjustment | $ 1,500,000 | $ 3,000,000 | ||||||
December 31, 2015 [Member] | Reclassification of Deferred Financing Costs to Reduction of Long-term Debt [Member] | ||||||||
Prior Period Reclassification Adjustment | $ 435,816 | |||||||
Reverse Stock Split [Member] | Subsequent Event [Member] | ||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 | |||||||
Reverse Stock Split [Member] | ||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 | |||||||
Vessels In Operation | 42 | |||||||
Dead Weight Tonnage of Operating Fleet | t | 63,000 | 2,302,855 | ||||||
Average Age in Years of Operating Fleet | 8 years 255 days | |||||||
Charters Agreement Term | 1 year 180 days | 7 years |
Note 1 - Consolidated Revenue f
Note 1 - Consolidated Revenue from Major Charters (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Charterer A [Member] | Successor [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||||
Percentage of consolidated charter revenue | [1] | 27.00% | 28.00% | ||
[1] | Charter revenue from a pool that the Company participated. |
Note 2 - New Accounting Prono24
Note 2 - New Accounting Pronouncements (Details Textual) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Reclassification of Deferred Financing Costs to Reduction of Long-term Debt [Member] | |
Current Period Reclassification Adjustment | $ 435,816 |
Note 3 - Vessels (Details Textu
Note 3 - Vessels (Details Textual) | Aug. 02, 2016USD ($) | Jul. 13, 2016USD ($) | Jun. 16, 2016USD ($) | Apr. 26, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Apr. 30, 2016 |
Vessels and Vessel Improvements [Member] | |||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 6,167,262 | $ 50,872,734 | |||||||||
Vessel Peregrine [Member] | |||||||||||
Property, Plant and Equipment, Disposals | $ 2,600,000 | ||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 150,000 | ||||||||||
Vessel Falcon [Member] | |||||||||||
Property, Plant and Equipment, Disposals | $ 3,200,000 | ||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 140,000 | ||||||||||
Harrier and Falcon [Member] | |||||||||||
Number of Vessels Sold | 2 | ||||||||||
Vessel Harrier [Member] | Subsequent Event [Member] | |||||||||||
Property, Plant and Equipment, Disposals | $ 3,200,000 | ||||||||||
Vessel Kittiwake [Member] | Subsequent Event [Member] | |||||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 4,200,000 | ||||||||||
Number Of Vessels | 42 | 42 | |||||||||
Impairment of Long-Lived Assets Held-for-use | $ 6,167,262 | ||||||||||
Gain (Loss) on Sale of Vessel Held for Sale | $ 115,000 | 115,000 | |||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 5,767,000 | $ 4,235,542 |
Note 3 - Vessels and Vessel Imp
Note 3 - Vessels and Vessel Improvements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Vessels and Vessel Improvements [Member] | Successor [Member] | ||||||
Vessels and vessel improvements at beginning of period | $ 733,960,731 | $ 733,960,731 | ||||
Purchase of vessel improvements | 237,235 | |||||
Property, Plant and Equipment, Disposals | (6,053,210) | |||||
Depreciation expense | (17,597,842) | |||||
Transfer to vessel held for sale | (3,327,200) | |||||
Vessel impairment charge | (6,167,262) | |||||
Vessels and vessel improvements at end of period | $ 701,052,452 | 701,052,452 | $ 733,960,731 | |||
Vessels and Vessel Improvements [Member] | ||||||
Vessel impairment charge | (6,167,262) | (50,872,734) | ||||
Vessels and vessel improvements at beginning of period | $ 733,960,731 | 733,960,731 | ||||
Vessel impairment charge | (6,167,262) | |||||
Vessels and vessel improvements at end of period | $ 701,052,452 | $ 701,052,452 | $ 733,960,731 |
Note 4 - Debt (Details Textual)
Note 4 - Debt (Details Textual) | Aug. 02, 2106shares | Jul. 15, 2019USD ($) | Apr. 15, 2019USD ($) | Jan. 15, 2019USD ($) | Aug. 05, 2016 | Aug. 02, 2016 | Mar. 30, 2016USD ($)$ / itemshares | Oct. 02, 2015 | Aug. 05, 2012 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2017 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
First Lien Facility [Member] | First Lien Lenders [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 35,000,000 | $ 35,000,000 | ||||||||||||||||
First Lien Facility [Member] | First Lien Lenders [Member] | Scenario, Forecast [Member] | ||||||||||||||||||
Debt Instrument, Covenant Percentage of Aggregate Principal, Minimum Threshold | 100.00% | 120.00% | 110.00% | |||||||||||||||
Debt Instrument, Periodic Payment | $ 3,831,769 | $ 3,831,769 | $ 3,831,769 | |||||||||||||||
First Lien Facility [Member] | First Lien Lenders [Member] | Through December 31, 2018 [Member] | ||||||||||||||||||
Debt Instrument, Covenant, Periodic Payment Amount, Percentage of Excess Cash Flow from Preceding Period | 75.00% | |||||||||||||||||
Debt Instrument, Maximum Annual Periodic Payment | $ 15,625,000 | |||||||||||||||||
First Lien Facility [Member] | First Lien Lenders [Member] | After December 31, 2018 [Member] | ||||||||||||||||||
Debt Instrument, Periodic Payment | 3,906,250 | |||||||||||||||||
First Lien Facility [Member] | First Lien Lenders [Member] | ||||||||||||||||||
Long-term Debt | 201,468,750 | |||||||||||||||||
Debt Agreement, Remaining Borrowing Capacity | 10,000,000 | |||||||||||||||||
Payments of Debt Issuance Costs | 600,000 | |||||||||||||||||
Debt Instrument, Covenant, Minimum Liquidity, Minimum Threshold | $ 8,140,000 | |||||||||||||||||
Debt Instrument, Covenant, Minimum Liquidity, Minimum Threshold Per Vessel | $ / item | 185,000 | |||||||||||||||||
Repayments of Long-term Debt | $ 11,718,750 | $ 2,034,000 | ||||||||||||||||
Second Lien Facility [Member] | Second Lien Lenders [Member] | Scenario, Forecast [Member] | ||||||||||||||||||
Debt Instrument, Covenant Percentage of Aggregate Principal, Minimum Threshold | 100.00% | 120.00% | 110.00% | |||||||||||||||
Second Lien Facility [Member] | Second Lien Lenders [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 14.00% | |||||||||||||||||
Debt Instrument, Reference Rate Floor | 1.00% | |||||||||||||||||
Second Lien Facility [Member] | Second Lien Lenders [Member] | Base Rate [Member] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 13.00% | |||||||||||||||||
Second Lien Facility [Member] | Second Lien Lenders [Member] | Subsequent Event [Member] | Chairman and Chief Financial Officer [Member] | ||||||||||||||||||
Debt Instrument, Issuance of Stock to Lenders Pro Rata Based on Participation | shares | 98,454 | |||||||||||||||||
Second Lien Facility [Member] | Second Lien Lenders [Member] | Subsequent Event [Member] | ||||||||||||||||||
Debt Instrument Issuance of Stock to Lenders Pro Rata Based on Participation, Additional | shares | 16,420,098 | |||||||||||||||||
Second Lien Facility [Member] | Second Lien Lenders [Member] | ||||||||||||||||||
Long-term Debt | $ 60,000,000 | |||||||||||||||||
Debt Instrument, Covenant, Minimum Liquidity, Minimum Threshold | $ 6,512,000 | |||||||||||||||||
Debt Instrument, Covenant, Minimum Liquidity, Minimum Threshold Per Vessel | $ / item | 148,000 | |||||||||||||||||
Debt Instrument, Issuance of Stock to Lenders Pro Rata Based on Participation | shares | 16,889,828 | |||||||||||||||||
Debt Instrument, Issuance of Stock to Lenders Pro Rata Based on Participation, Percentage of Outstanding Stock | 90.00% | |||||||||||||||||
Debt Instrument, Issuance of Stock to Lenders Based on Participation | shares | 371,276 | |||||||||||||||||
Debt Instrument, Issuance of Stock to Lenders Based on Participation, Percent of Previous Outstanding Common Stock | 19.40% | |||||||||||||||||
Reverse Stock Split [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 10 | |||||||||||||||||
Reverse Stock Split [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 50 | |||||||||||||||||
Reverse Stock Split [Member] | Subsequent Event [Member] | ||||||||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 | |||||||||||||||||
Reverse Stock Split [Member] | ||||||||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 | |||||||||||||||||
Minimum [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate During Period | 3.94% | 4.05% | 3.86% | 4.04% | ||||||||||||||
Maximum [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate During Period | 4.53% | 4.08% | 4.53% | 4.08% | ||||||||||||||
Weighted Average [Member] | ||||||||||||||||||
Debt Instrument, Interest Rate During Period | 5.44% | 5.24% | 5.48% | 5.41% | ||||||||||||||
Payments of Debt Issuance Costs | $ 2,336,009 | |||||||||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 11,874,047 | $ 27,184,438 | $ 11,874,047 | $ 27,184,438 | $ 24,896,161 | $ 39,975,287 | ||||||||||||
Charters Agreement Term | 1 year 180 days | 7 years | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 40.00% | 40.00% | 40.00% | 40.00% | ||||||||||||||
Interest Paid | $ 4,999,476 | $ 5,038,792 |
Note 4 - Summary of Debt (Detai
Note 4 - Summary of Debt (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Successor [Member] | First Lien Facility [Member] | Term Loan [Member] | ||
Term Loan | $ 202,716,000 | $ 245,375,000 |
Long-term Debt | 197,086,411 | 241,202,491 |
Successor [Member] | First Lien Facility [Member] | ||
Debt issuance costs First Lien / Exit Financing Facility | (5,629,589) | (4,172,509) |
Less: Current Portion Exit Financing Facility | (15,625,000) | |
Successor [Member] | Second Lien Facility [Member] | Term Loan [Member] | ||
Term Loan | 60,000,000 | |
Long-term Debt | 59,320,719 | |
Successor [Member] | Second Lien Facility [Member] | ||
Debt issuance costs First Lien / Exit Financing Facility | (679,281) | |
Successor [Member] | ||
Total debt | 256,407,130 | 225,577,491 |
First Lien Facility [Member] | ||
Total debt | 197,086,411 | 225,577,491 |
Second Lien Facility [Member] | ||
Total debt | $ 59,320,719 |
Note 4 - Interest Expense (Deta
Note 4 - Interest Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Successor [Member] | ||||
First Lien Facility Interest | $ 2,288,380 | $ 2,454,928 | $ 4,797,522 | $ 4,892,670 |
Payment-in-kind interest on Second Lien Facility | 2,123,333 | 2,123,333 | ||
Amortization of debt issuance costs | 491,144 | 531,889 | 799,648 | 1,256,313 |
Total Interest Expense | 4,902,857 | 2,986,817 | 7,720,503 | 6,148,983 |
Payment-in-kind interest on Second Lien Facility | 2,123,333 | |||
Amortization of debt issuance costs | 799,648 | 1,256,313 | ||
Total Interest Expense | $ 4,902,857 | $ 2,986,817 | $ 7,720,503 | $ 6,148,983 |
Note 5 - Derivative Instrumen30
Note 5 - Derivative Instruments and Fair Value Measurements (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Other Current Assets [Member] | Forward Freight Agreements [Member] | ||||||
Derivative, Collateral, Right to Reclaim Cash | $ 558,075 | $ 558,075 | $ 0 | |||
Vessels [Member] | Before Divesture [Member] | ||||||
Property, Plant and Equipment, Net | $ 25,317,262 | 76,332,734 | ||||
Vessels [Member] | ||||||
Impairment of Long-Lived Assets Held-for-use | 6,167,262 | |||||
Vessels and Vessel Improvements [Member] | ||||||
Impairment of Long-Lived Assets Held-for-use | $ 6,167,262 | 50,872,734 | ||||
To Be Divested [member] | ||||||
Number Of Vessels | 6 | |||||
Impairment of Long-Lived Assets Held-for-use | $ 6,167,262 | |||||
Number Of Vessels | 42 | 42 | ||||
Property, Plant and Equipment, Net | $ 578,229 | $ 578,229 | $ 220,509 |
Note 5 - Forward Freight Agreem
Note 5 - Forward Freight Agreements (Details) - Other Expense [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Forward Freight Agreements [Member] | ||||
Derivatives not designated as hedging instruments | $ (300,785) | $ (300,785) | ||
Derivatives not designated as hedging instruments | $ (300,785) | $ (300,785) |
Note 6 - Commitments and Cont32
Note 6 - Commitments and Contingencies (Details Textual) | Jul. 12, 2016t$ / d | May 09, 2016t$ / d | Mar. 30, 2016 | Oct. 02, 2015t | Oct. 31, 2014t$ / d | Jun. 30, 2016t |
Japanese Vessel [Member] | First Seven Years [Member] | ||||||
Vessel Hiring Rate | $ / d | 13,500 | |||||
Japanese Vessel [Member] | Eighth Year Option [Member] | ||||||
Vessel Hiring Rate | $ / d | 13,750 | |||||
Japanese Vessel [Member] | Eleven to Thirteen Month Option [Member] | Subsequent Event [Member] | ||||||
Vessel Hiring Rate | $ / d | 6,000 | |||||
Japanese Vessel [Member] | Minimum [Member] | Subsequent Event [Member] | ||||||
Charters Agreement Term | 330 days | |||||
Japanese Vessel [Member] | Minimum [Member] | ||||||
Charters Agreement Term | 270 days | |||||
Japanese Vessel [Member] | Maximum [Member] | Subsequent Event [Member] | ||||||
Charters Agreement Term | 1 year 30 days | |||||
Japanese Vessel [Member] | Maximum [Member] | ||||||
Charters Agreement Term | 1 year 60 days | |||||
Japanese Vessel [Member] | Subsequent Event [Member] | ||||||
Dead Weight Tonnage of Operating Fleet | t | 61,000 | |||||
Japanese Vessel [Member] | ||||||
Dead Weight Tonnage of Operating Fleet | t | 37,000 | |||||
Charters Agreement Term | 7 years | |||||
Charters Agreement Term, Extension Option | 1 year | |||||
Chinese Vessel [Member] | Nine to Fourteen Month Option [Member] | ||||||
Vessel Hiring Rate | $ / d | 6,000 | |||||
Chinese Vessel [Member] | ||||||
Dead Weight Tonnage of Operating Fleet | t | 63,000 | |||||
Dead Weight Tonnage of Operating Fleet | t | 63,000 | 2,302,855 | ||||
Charters Agreement Term | 1 year 180 days | 7 years |
Note 7 - Loss Per Common Shar33
Note 7 - Loss Per Common Share (Details Textual) | Aug. 05, 2016 | Aug. 05, 2012 | Jun. 30, 2016shares | Jun. 30, 2015shares |
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 30,385 | 12,478 | ||
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 68,640 | 26,766 | ||
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 152,266 | 152,266 | ||
Reverse Stock Split [Member] | Subsequent Event [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 | |||
Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 |
Note 7 - Loss Per Share, Basic
Note 7 - Loss Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Successor [Member] | |||||
Net loss | $ (22,495,573) | $ (27,508,300) | $ (61,774,243) | $ (48,175,364) | |
Weighted Average Shares – Basic* (in shares) | [1] | 2,254,665 | 1,881,968 | 2,073,068 | 1,879,175 |
Weighted Average Shares – Diluted* (in shares) | [1] | 2,254,665 | 1,881,968 | 2,073,068 | 1,879,175 |
Basic Loss Per Share* (in dollars per share) | [1] | $ (9.98) | $ (14.62) | $ (29.80) | $ (25.64) |
Diluted Loss Per Share* (in dollars per share) | [1] | $ (9.98) | $ (14.62) | $ (29.80) | $ (25.64) |
Net loss | $ (22,495,573) | $ (27,508,300) | $ (61,774,243) | $ (48,175,364) | |
Weighted Average Shares – Basic* (in shares) | [2] | 2,254,665 | 1,881,968 | 2,073,068 | 1,879,175 |
Weighted Average Shares – Diluted* (in shares) | [2] | 2,254,665 | 1,881,968 | 2,073,068 | 1,879,175 |
Basic Loss Per Share* (in dollars per share) | [2] | $ (9.98) | $ (14.62) | $ (29.80) | $ (25.64) |
Diluted Loss Per Share* (in dollars per share) | [2] | $ (9.98) | $ (14.62) | $ (29.80) | $ (25.64) |
[1] | Adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1. | ||||
[2] | Adjusted to give effect for the 1 for 20 reverse stock split that became effective as of the opening of trading on August 5, 2016, see Note 1. |
Note 8 - Stock Incentive Plans
Note 8 - Stock Incentive Plans (Details Textual) | Oct. 15, 2014 | Aug. 05, 2012 | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Reverse Stock Split [Member] | |||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 | ||||||||
Management Incentive Plan 2014 [Member] | With Different Striking Prices [Member] | |||||||||
Percent of Common Stock for Distribution | 5.50% | ||||||||
Management Incentive Plan 2014 [Member] | Annual Installments [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||
Management Incentive Plan 2014 [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||
Management Incentive Plan 2014 [Member] | General and Administrative Expense [Member] | |||||||||
Allocated Share-based Compensation Expense | $ | $ 841,933 | $ 323,128 | $ 1,668,546 | $ 2,207,579 | |||||
Management Incentive Plan 2014 [Member] | |||||||||
Percent of Common Stock for Distribution | 2.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 30,384 | 30,384 | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 4 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years | ||||||||
Scenario, Forecast [Member] | |||||||||
Allocated Share-based Compensation Expense | $ | $ 605,779 | $ 1,479,655 | $ 1,287,441 | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 68,640 | 68,640 | |||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ / shares | $ 78.40 | ||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ / shares | $ 505 |
Note 9 - Subsequent Events (Det
Note 9 - Subsequent Events (Details Textual) $ / shares in Units, $ in Millions | Aug. 05, 2016$ / sharesshares | Aug. 02, 2016$ / sharesshares | Jul. 10, 2016USD ($)$ / shares | May 26, 2016USD ($)$ / shares | Aug. 05, 2012 | Jun. 30, 2016shares | Dec. 31, 2015shares |
Subsequent Event [Member] | Private Placement [Member] | Common Stock Purchasers [Member] | |||||||
Sale of Stock, Consideration Received Per Transaction | $ | $ 88 | ||||||
Sale of Stock, Price Per Share | $ / shares | $ 3 | $ 0.15 | |||||
Common Stock, Shares, Issued | 29,333,318 | ||||||
Subsequent Event [Member] | Private Placement [Member] | |||||||
Percentage of Shareholder's Equity | 70.00% | ||||||
Subsequent Event [Member] | Reverse Stock Split [Member] | Minimum [Member] | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 10 | ||||||
Subsequent Event [Member] | Reverse Stock Split [Member] | Maximum [Member] | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 50 | ||||||
Subsequent Event [Member] | Reverse Stock Split [Member] | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 | ||||||
Subsequent Event [Member] | Second Lien Facility [Member] | |||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 20.00% | ||||||
Subsequent Event [Member] | |||||||
Preferred Stock, Shares Authorized | 25,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | ||||||
Common Stock, Shares Authorized | 700,000,000 | ||||||
Private Placement [Member] | Purchasers [Member] | Series A Preferred Stock [Member] | |||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | ||||||
Share Price | $ / shares | $ 1,000 | ||||||
Preferred Stock, Issuance Discount | 1.00% | ||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ | $ 6.3 | ||||||
Private Placement [Member] | Series A Preferred Stock [Member] | |||||||
Dividend Yield on Cumulative Stock | 15.00% | ||||||
Reverse Stock Split [Member] | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 20 | ||||||
Common Stock, Shares, Issued | 2,254,989 | 1,883,303 | |||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |