Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 10, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33831 | ||
Entity Registrant Name | EAGLE BULK SHIPPING INC. | ||
Entity Incorporation, State or Country Code | 1T | ||
Entity Tax Identification Number | 98-0453513 | ||
Entity Address, Address Line One | 300 First Stamford Place | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, City or Town | Stamford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06902 | ||
City Area Code | 203 | ||
Local Phone Number | 276–8100 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | EGLE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 70,031,332 | ||
Entity Common Stock, Shares Outstanding | 12,442,798 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2021 annual meeting of shareholders, which will be filed with the Securities and Exchange Commission within 120 days of December 31, 2020, are incorporated by reference into Part III of this Annual Report on Form 10-K for the registrant's fiscal year ended December 31, 2020. | ||
Entity Central Index Key | 0001322439 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 69,927,594 | $ 53,583,898 | |
Restricted cash - current | 18,846,177 | 5,471,470 | |
Accounts receivable, net of a reserve of $2,357,191 and $2,472,345, respectively | 13,843,480 | 19,982,871 | |
Prepaid expenses | 3,182,815 | 4,631,416 | |
Inventories | 11,624,833 | 15,824,278 | |
Other current assets | 839,881 | 1,039,430 | |
Total current assets | 118,264,780 | 100,533,363 | |
Noncurrent assets: | |||
Vessels and vessel improvements, at cost, net of accumulated depreciation of $177,771,755 and $153,029,544, respectively | 810,713,959 | 835,959,084 | |
Advances for vessel purchases | 3,250,000 | 0 | |
Operating lease right-of-use assets | 7,540,871 | 20,410,037 | |
Other fixed assets, net of accumulated depreciation of $1,137,562 and $832,541, respectively | 489,179 | 740,654 | |
Restricted cash - noncurrent | 75,000 | 74,917 | |
Deferred drydock costs, net | 24,153,776 | 17,495,270 | |
Deferred financing costs - Super Senior Facility | 0 | 166,111 | |
Advances for scrubbers and ballast water systems and other assets | 2,639,491 | 26,707,700 | |
Total noncurrent assets | 848,862,276 | 901,553,773 | |
Total assets | 967,127,056 | 1,002,087,136 | |
Current liabilities: | |||
Accounts payable | 10,589,970 | 13,483,397 | |
Accrued interest | 4,690,135 | 5,321,089 | |
Other accrued liabilities | 11,747,064 | 28,996,836 | |
Fair value of derivatives - current | 756,229 | ||
Current portion of operating lease liabilities | 7,615,371 | 13,255,978 | |
Unearned charter hire revenue | 8,072,295 | 4,692,259 | |
Current portion of long-term debt | 39,244,297 | 35,709,394 | |
Total current liabilities | 82,440,923 | 102,215,182 | |
Noncurrent liabilities: | |||
Total debt | 412,931,021 | 410,067,224 | |
Noncurrent portion of operating lease liabilities | 686,422 | 8,301,793 | |
Total noncurrent liabilities | 414,268,050 | 418,369,017 | |
Total liabilities | 496,708,973 | 520,584,199 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued as of December 31, 2020 and 2019 | 0 | 0 | |
Common stock, $.01 par value, 700,000,000 shares authorized, 11,661,797 and 10,214,600 shares issued and outstanding as of December 31, 2020 and 2019, respectively * | [1] | 116,618 | 102,146 |
Additional paid-in capital * | [1] | 943,571,685 | 918,475,145 |
Accumulated deficit | (472,137,822) | (437,074,354) | |
Total stockholders' equity | 470,418,083 | 481,502,937 | |
Total liabilities and stockholders' equity | 967,127,056 | 1,002,087,136 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,132,398) | 0 | |
Norwegian Bond Debt | |||
Noncurrent liabilities: | |||
Total debt | 169,290,230 | 175,867,310 | |
Super Senior Revolver Facility | |||
Noncurrent liabilities: | |||
Total debt | 14,896,357 | 0 | |
New Ultraco Debt Facility | |||
Noncurrent liabilities: | |||
Total debt | 132,083,949 | 141,396,770 | |
Convertible Bond Debt | |||
Noncurrent liabilities: | |||
Total debt | $ 96,660,485 | $ 92,803,144 | |
[1] | * Adjusted to give effect for the 1-for-7 Reverse Stock Split that became effective as of September 15, 2020, see Note 1. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserve | $ 2,357,191 | $ 2,472,345 |
Accumulated depreciation, vessels | 177,771,755 | 153,029,544 |
Accumulated amortization, other fixed assets | $ 1,137,562 | $ 832,541 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, issued (in shares) | 11,661,797 | 10,214,600 |
Common stock, outstanding (in shares) | 11,661,797 | 10,214,600 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
Revenues, net | $ 275,133,547 | $ 292,377,638 | $ 310,094,258 | |
Voyage expenses | 89,548,796 | 87,701,407 | 79,566,452 | |
Vessel operating expenses | 86,527,915 | 82,342,123 | 81,336,260 | |
Charter hire expenses | 21,280,224 | 42,168,642 | 38,045,778 | |
Depreciation and amortization | 50,157,147 | 40,545,904 | 37,717,462 | |
General and administrative expenses | 31,532,109 | 35,041,996 | 36,156,660 | |
Impairment of operating lease right-of-use assets | 352,368 | 0 | 0 | |
Other operating expense | 0 | 1,125,000 | 0 | |
Loss/(gain) on sale of vessels | 489,772 | (5,978,566) | (335,160) | |
Total operating expenses, net | 279,888,331 | 282,946,506 | 272,487,452 | |
Operating (loss)/income | (4,754,784) | 9,431,132 | 37,606,806 | |
Interest expense | 35,392,623 | 30,577,489 | 25,743,531 | |
Interest income | (257,165) | (1,867,326) | (585,168) | |
Realized and unrealized (gain)/loss on derivative instruments, net | (4,826,774) | 149,632 | (126,241) | |
Loss on debt extinguishment | 0 | 2,268,452 | 0 | |
Total other expense, net | 30,308,684 | 31,128,247 | 25,032,122 | |
Net (loss)/income | $ (35,063,468) | $ (21,697,115) | $ 12,574,684 | |
Weighted average shares outstanding*: | ||||
Basic (in shares) | [1] | 10,310,246 | 10,195,088 | 10,095,030 |
Diluted (in shares) | [1] | 10,310,246 | 10,195,088 | 10,257,453 |
Per share amounts: | ||||
Basic net (loss)/income (in dollars per share) | [1] | $ (3.40) | $ (2.13) | $ 1.25 |
Diluted net (loss)/income (in dollars per share) | [1] | $ (3.40) | $ (2.13) | $ 1.23 |
[1] | * Adjusted to give effect for the 1-for-7 Reverse Stock Split that became effective as of September 15, 2020, see Note 1. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss)/Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss)/income | $ (35,063,468) | $ (21,697,115) | $ 12,574,684 |
Net unrealized loss on cash flow hedges | (1,132,398) | 0 | 0 |
Comprehensive (loss)/income | $ (36,195,866) | $ (21,697,115) | $ 12,574,684 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional paid-in Capital* | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss | |||
Beginning balance (in shares) at Dec. 31, 2017 | [1] | 10,056,329 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 461,165,033 | $ (787,110) | $ 100,563 | [1] | $ 888,229,283 | [1] | $ (427,164,813) | $ (787,110) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss)/income | 12,574,684 | 12,574,684 | ||||||||
Issuance of shares due to vesting of restricted shares (in shares) | [1] | 94,442 | ||||||||
Issuance of shares due to vesting of restricted shares and exercise of options, net of cash received | 4,866 | $ 945 | [1] | 3,921 | [1] | |||||
Cash used to settle net share equity awards | (2,559,104) | (2,559,104) | [1] | |||||||
Stock-based compensation | 9,207,480 | 9,207,480 | [1] | |||||||
Unrealized loss on cash flow hedges | 0 | |||||||||
Ending balance (in shares) at Dec. 31, 2018 | [1] | 10,150,771 | ||||||||
Ending balance at Dec. 31, 2018 | 479,605,849 | $ 101,508 | [1] | 894,881,580 | [1] | (415,377,239) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss)/income | (21,697,115) | (21,697,115) | ||||||||
Issuance of shares due to vesting of restricted shares (in shares) | [1] | 63,829 | ||||||||
Issuance of shares due to vesting of restricted shares and exercise of options, net of cash received | [1] | $ 638 | (638) | |||||||
Cash used to settle net share equity awards | (1,443,753) | (1,443,753) | [1] | |||||||
Stock-based compensation | 4,826,324 | 4,826,324 | [1] | |||||||
Proceeds received from the Share Lending Agreement | 35,829 | 35,829 | [1] | |||||||
Equity component of Convertible Bond Debt, net of equity issuance costs | 20,175,803 | 20,175,803 | [1] | |||||||
Unrealized loss on cash flow hedges | 0 | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | [1] | 10,214,600 | ||||||||
Ending balance at Dec. 31, 2019 | 481,502,937 | $ 102,146 | [1] | 918,475,145 | [1] | (437,074,354) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss)/income | (35,063,468) | (35,063,468) | ||||||||
Issuance of shares due to vesting of restricted shares (in shares) | [1] | 65,982 | ||||||||
Issuance of shares due to vesting of restricted shares and exercise of options, net of cash received | 0 | $ 660 | [1] | (660) | [1] | |||||
Cash used to settle net share equity awards | (1,162,609) | (1,162,609) | [1] | |||||||
Stock-based compensation | 3,048,280 | 3,048,280 | [1] | |||||||
Issuance of common shares for Equity Offering (in shares) | [1] | 1,381,215 | ||||||||
Issuance of common shares for Equity Offerings | 23,817,505 | $ 13,812 | [1] | 23,803,693 | [1] | |||||
Fees for Equity Offerings | (579,651) | (579,651) | [1] | |||||||
Cash used to settle fractional shares in the Reverse Stock Split | (12,513) | (12,513) | [1] | |||||||
Unrealized loss on cash flow hedges | (1,132,398) | (1,132,398) | ||||||||
Ending balance (in shares) at Dec. 31, 2020 | [1] | 11,661,797 | ||||||||
Ending balance at Dec. 31, 2020 | $ 470,418,083 | $ 116,618 | [1] | $ 943,571,685 | [1] | $ (472,137,822) | $ (1,132,398) | |||
[1] | * Adjusted retroactively to give effect for the 1-for-7 Reverse Stock Split that became effective as of September 15, 2020, see Note 1. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss)/income | $ (35,063,468) | $ (21,697,115) | $ 12,574,684 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | |||
Depreciation | 42,778,395 | 34,318,053 | 32,364,359 |
Amortization of deferred drydocking costs | 7,378,752 | 6,227,851 | 5,353,102 |
Amortization of operating lease right-of-use assets | 12,516,798 | 12,764,596 | 0 |
Amortization of debt discount and debt issuance costs | 6,272,309 | 3,783,939 | 1,913,651 |
Loss on debt extinguishment | 0 | 2,268,452 | 0 |
Amortization of fair value below contract value of time charter acquired | 0 | 0 | (681,898) |
Loss/(gain) on sale of vessels | 489,772 | (5,978,566) | (335,160) |
Impairment of operating lease right-of-use assets | 352,368 | 0 | 0 |
Net unrealized (gain)/loss on fair value of derivatives | (536,935) | (75,537) | 315,748 |
Stock-based compensation expense | 3,048,280 | 4,826,324 | 9,207,480 |
Drydocking expenditures | (14,293,562) | (11,903,474) | (8,323,191) |
Changes in operating assets and liabilities: | |||
Accounts payable | (4,170,779) | 3,199,113 | 993,557 |
Accounts receivable | 1,917,765 | (6,902) | (3,465,025) |
Accrued interest | (630,954) | 3,585,458 | (54,684) |
Inventories | 4,199,445 | 313,507 | (2,024,706) |
Operating lease liabilities current and noncurrent | (13,255,978) | (13,475,534) | 0 |
Other current and non-current assets | (228,992) | 1,503,904 | (207,234) |
Other accrued liabilities and other non-current liabilities | (3,006,946) | 4,261,774 | (1,125,638) |
Prepaid expenses | 1,448,601 | 4,463 | (1,625,113) |
Unearned revenue | 3,380,036 | (2,234,580) | 590,531 |
Net cash provided by operating activities | 12,594,907 | 21,685,726 | 45,470,463 |
Cash flows from investing activities: | |||
Purchases of vessels and vessel improvements | (979,612) | (143,477,720) | (41,404,328) |
Advances for vessel purchases | (3,250,000) | 0 | (2,040,000) |
Purchase of scrubbers and ballast water treatment systems | (28,376,566) | (58,196,164) | (12,342,317) |
Proceeds from hull and machinery insurance claims | 3,943,667 | 3,845,967 | 0 |
Proceeds from redemption of a short-term investment | 0 | 0 | 4,500,000 |
Proceeds from sale of vessels | 23,224,650 | 29,560,746 | 20,545,202 |
Purchase of other fixed assets | (53,794) | (351,434) | (272,067) |
Net cash used in investing activities | (5,491,655) | (168,618,605) | (31,013,510) |
Cash flows from financing activities: | |||
Financing costs paid to lenders | (3,533,770) | 0 | |
Other financing costs | (141,634) | (1,655,353) | (2,465,037) |
Proceeds from issuance of common stock | 23,497,854 | 0 | 0 |
Cash received from exercise of stock options | 0 | 0 | 4,865 |
Cash used to settle fractional shares | (12,513) | 0 | 0 |
Cash used to settle net share equity awards | (1,162,609) | (1,443,753) | (2,559,104) |
Net cash provided by financing activities | 22,615,234 | 127,899,526 | 7,380,724 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 29,718,486 | (19,033,353) | 21,837,677 |
Cash, cash equivalents and restricted cash at beginning of year | 59,130,285 | 78,163,638 | 56,325,961 |
Cash, cash equivalents and restricted cash at end of year | 88,848,771 | 59,130,285 | 78,163,638 |
Supplemental cash flow information: | |||
Accruals for scrubbers and ballast water treatment systems in Accounts payable and Other accrued liabilities | 3,154,693 | 16,380,168 | 5,801,867 |
Accruals for equity issuance costs included in Accounts payable and Other accrued liabilities | 260,000 | 0 | 0 |
Cash paid during the period for interest | 29,603,965 | 23,208,093 | 23,884,565 |
New First Lien Facility | |||
Cash flows from financing activities: | |||
Repayments of lines of credit | 0 | (5,000,000) | (5,000,000) |
New First Lien Facility | Revolver Loan | |||
Cash flows from financing activities: | |||
Proceeds from long term debt | 0 | 5,000,000 | 0 |
New First Lien Facility | Term Loan | |||
Cash flows from financing activities: | |||
Repayments of long-term debt | 0 | (60,000,000) | 0 |
Convertible Debt Securities | |||
Cash flows from financing activities: | |||
Proceeds from long term debt | 0 | 112,482,586 | 0 |
Norwegian Bond Debt | |||
Cash flows from financing activities: | |||
Repayments of long-term debt | (8,000,000) | (8,000,000) | (4,000,000) |
New Ultraco Debt Facility | |||
Cash flows from financing activities: | |||
Proceeds from long term debt | 187,760,000 | 0 | |
Repayments of long-term debt | (28,734,393) | (15,146,013) | 0 |
Original Ultraco Debt Facility | |||
Cash flows from financing activities: | |||
Proceeds from long term debt | 0 | 0 | 21,400,000 |
Repayments of long-term debt | 0 | (82,600,000) | 0 |
Share Lending Agreement | |||
Cash flows from financing activities: | |||
Proceeds from long term debt | 0 | 35,829 | 0 |
New Ultraco Revolver Facility | |||
Cash flows from financing activities: | |||
Proceeds from long term debt | 55,000,000 | 0 | 0 |
New Ultraco Revolver Facility | Revolving Credit Facility | |||
Cash flows from financing activities: | |||
Repayments of long-term debt | (55,000,000) | 0 | 0 |
Super Senior Revolver Facility | |||
Cash flows from financing activities: | |||
Proceeds from long term debt | $ 15,000,000 | $ 0 | $ 0 |
General Information
General Information | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | General Information: The accompanying consolidated financial statements include the accounts of Eagle Bulk Shipping Inc. and its wholly-owned subsidiaries (collectively, the "Company,” “we” or “our” or similar terms). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership, charter and operation of drybulk vessels. The Company's fleet is comprised of Supramax and Ultramax drybulk carriers and the Company operates its business in one business segment. Each of the Company’s vessels serve the same type of customer, have similar operation and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, which is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. The Company is a holding company incorporated in 2005, under the laws of the Republic of the Marshall Islands and is the sole owner of all of the outstanding shares of its wholly-owned subsidiaries formed in the Republic of the Marshall Islands. The primary activity of each of the subsidiaries is the ownership of a vessel. The operations of the vessels are managed by a directly wholly-owned subsidiary of the Company, Eagle Bulk Management LLC, a Republic of the Marshall Islands limited liability company. On December 22, 2020, the Company issued an aggregate of 1,381,215 shares in two concurrent public offerings ("Equity Offerings"). The total net proceeds from the offerings, net of issuance costs was $23.5 million. The Company used the net proceeds to finance the acquisition of two modern Ultramax vessels and general corporate purposes. Effective as of September 15, 2020, the Company completed a 1-for-7 reverse stock split (the “Reverse Stock Split”) of the Company's issued and outstanding shares of common stock, par value $0.01 per share. Proportional adjustments were made to the Company’s issued and outstanding common stock and to the exercise price and the number of shares issuable upon exercise of all of the Company’s outstanding warrants, the exercise price and number of shares issuable upon exercise of the options outstanding under the Company’s equity incentive plans, and the number of shares subject to restricted stock awards under the Company’s equity incentive plans. Furthermore, the conversion rate set forth in the indenture governing the Company’s Convertible Bond Debt was adjusted to reflect the Reverse Stock Split. No fractional shares of common stock were issued in connection with the Reverse Stock Split. Furthermore, if a shareholder held less than seven shares prior to the Reverse Stock Split, then such shareholder received cash in lieu of the 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. On March 11, 2020, the World Health Organization declared the novel coronavirus (“COVID-19”) outbreak a pandemic. In response to the pandemic, many countries, ports and organizations, including those where the Company conducts a large part of its operations, have implemented measures to combat the pandemic, such as quarantines and travel restrictions. Such measures have caused and may continue to cause severe trade disruptions. The ongoing pandemic resulted in the decline in charter hire rates which impacted our revenues and cash flow from operations. The Company experienced some delays in cargo operations due to port restrictions and additional protocols and cancellation of a few cargo contracts. However, the Company was able to secure alternative business for its vessels upon cancellation at the prevailing charter rates. As a result of the spread of COVID-19, the Company has incurred some additional crewing expenses relating to procurement of personal protective equipment, COVID-19 testing, and crew travel, which is included in our vessel expenses in our Consolidated Statement of Operations for the year ended December 31, 2020. Additionally, the Company experienced some delays in drydocking and BWTS installations, operations and crew changes due to quarantine regulations and COVID-19 testing and resulting offhire days. This outbreak adversely affected the Company by (i) reducing demand for its services because of reduced global or national economic activity and (ii) negatively impacted our ability to perform crew changes on our vessels. Although this disruption from COVID-19 may only be temporary, given the dynamic nature of these circumstances, the duration of business disruption and the related financial impact cannot be reasonably estimated at this time but could materially affect our business, results of operations and financial condition. As of December 31, 2020, the Company owned and operated a modern fleet of 45 ocean-going vessels, including 25 Supramax and 20 Ultramax vessels, with a combined carrying capacity of 2,686,570 deadweight tons ("dwt") and an average age of approximately 8.8 years. Additionally, the Company chartered-in three Ultramax vessels for remaining lease term of less than one year. The Company also charters-in third-party vessels on a short to medium term basis. For the years ended December 31, 2020, 2019 and 2018, the Company had no charterers which individually accounted for more than 10% of the Company's gross charter revenue. |
Significant Accounting Policies
Significant Accounting Policies | Dec. 25, 2019 |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies: (a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Eagle Bulk Shipping Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions were eliminated upon consolidation. (b) Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles 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. Significant estimates include vessel impairment, vessel valuations, residual value of vessels, the useful lives of vessels, the value of stock-based compensation, fair value of the Convertible Bond Debt (as defined below) and its equity component, estimated losses on our trade receivables, fair value of right-of-use assets and lease liabilities and the fair value of derivatives. Actual results could differ from those estimates. (c) Cash, Cash Equivalents and Restricted Cash: The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. The restricted cash - current balance relates to the proceeds from the sale of vessels, which were restricted pursuant to the terms under the Norwegian Bond Debt. Please see Note 6 Debt for additional information. Additionally, the Company also had restricted cash - noncurrent of $0.1 million for collateralizing a letter of credit on our office lease as of December 31, 2020 and 2019. The following table provides a reconciliation of cash, cash equivalents and restricted cash within the Consolidated Balance Sheets that sum to the total amounts shown in the Consolidated Statements of Cash Flows: December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 69,927,594 $ 53,583,898 $ 67,209,753 $ 56,251,044 Restricted cash - current 18,846,177 5,471,470 — — Restricted cash - noncurrent 75,000 74,917 10,953,885 74,917 $ 88,848,771 $ 59,130,285 $ 78,163,638 $ 56,325,961 (d) Accounts Receivable: Accounts receivable includes receivables from charterers for time and voyage charterers. On January 1, 2020, the Company adopted Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses” (“ASC 326”). At each balance sheet date, the Company maintains an allowance for credit losses for expected uncollectible accounts receivable. The Company wrote off $0.8 million and $0.9 million for the years ended December 31, 2020 and 2019, respectively, related to previously reserved amounts in the allowance for doubtful accounts. The Company recorded a provision of $0.7 million and $1.3 million respectively, for doubtful accounts for the years ended December 31, 2020 and 2019. (e) Insurance Claims: Insurance claims are recorded net of any deductible amounts for insured damages which are recognized when recovery is virtually certain under the related insurance policies and where the Company can make an estimate of the amount to be reimbursed following the insurance claim. (f) Inventories: Inventories, which consist of bunkers, are stated at cost which is determined on a first-in, first-out method. Lubes and spares are expensed as incurred. (g) Short-term Investments: The Company considers liquid investments such as certificate of deposits with an original maturity of greater than three months as investments. (h) Vessels and vessel improvements, at cost: Vessels are stated at cost, which consists of the contract price, and other direct costs relating to acquiring and placing the vessels in service. Major vessel improvements such as scrubbers and ballast water systems are capitalized and depreciated over the remaining useful lives of the vessels. Depreciation is calculated on a straight-line basis over the estimated useful lives of the vessels based on the cost of the vessels reduced by the estimated scrap value of the vessels as discussed below. (i) Vessel useful economic life and Impairment of Long-Lived Assets: The Company estimates the useful life of the Company's vessels to be 25 years from the date of initial delivery from the shipyard to the original owner. The useful lives of the Company's vessels are evaluated to determine if events have occurred which would require modification to their useful lives. In addition, the Company estimates the scrap value of the vessels to be $300 per light weight ton ("lwt"). The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company will evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset as provided by third parties. The Company reviews on an annual basis all the assumptions used in the calculation of undiscounted cash flows. Based on the review, for the year ended December 31, 2020, the Company made a decision to use 15 year average of one and three year time charter rates as published by a third party (Clarksons.com) in its calculation of undiscounted cash flows. Historically, the Company utilized 25 year average of one and three year time charter rates. This is considered a change in accounting estimate. The change in accounting estimate did not have any material impact on its consolidated financial statements. We did not recognize a vessel impairment charge for the years ended December 31, 2020, 2019 and 2018. (j) Accounting for Drydocking Costs: The Company follows the deferral method of accounting for drydocking costs whereby actual costs incurred are deferred and are amortized on a straight-line basis over the period through the date the next drydocking is required to become due, generally 30 months if the vessels are 15 years old or more and 60 months for the vessels younger than 15 years. Costs deferred as part of the drydocking include direct costs that are incurred as part of the drydocking to meet regulatory requirements. Certain costs are capitalized during drydocking if they are expenditures that add economic life to the vessel, increase the vessel’s earnings capacity or improve the vessel’s efficiency. Direct costs that are deferred include the shipyard costs, parts, inspection fees, steel, blasting and painting. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. Unamortized drydocking costs of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels’ sale. Unamortized drydocking costs are written off as drydocking expense if the vessels are drydocked before the expiration of the applicable amortization period. (k) Deferred Financing Costs: Fees incurred for obtaining new loans or refinancing existing ones are deferred and amortized to interest expense over the life of the related debt using the effective interest method. Unamortized deferred financing costs are written off when the related debt is repaid or refinanced and such amounts are expensed in the period the repayment or refinancing is made. Such amounts are classified as a reduction of the long-term debt balance on the consolidated balance sheets. For our Super Senior Revolver Facility, as no amounts had been drawn as of December 31, 2019, deferred financing fees of $0.2 million were classified as a noncurrent asset on the Consolidated Balance Sheet as of December 31, 2019. As of December 31, 2020, deferred financing fees of $0.1 million was shown as a reduction of the outstanding debt under Super Senior Facility on our Consolidated Balance Sheet. (l) Other fixed assets: Other fixed assets are stated at cost less accumulated depreciation. Depreciation is based on a straight-line basis over the estimated useful life of the asset. Other fixed assets consist principally of leasehold improvements, computers and software and are depreciated over three years. Depreciation expense for other fixed assets for the years ended December 31, 2020, 2019 and 2018 was $0.3 million, $0.3 million and $0.2 million, respectively. (m) Accounting for Revenues and Expenses : Revenues generated from time charters and/or revenues generated from profit sharing arrangements are recognized on a straight-line basis over the term of the respective time charter agreements as service is provided and the profit sharing is fixed and determinable. Under voyage charters, voyage revenues for cargo transportation are recognized ratably over the estimated relative transit time of each voyage. Voyage revenue is deemed to commence upon the loading of the charterer’s cargo and is deemed to end upon the completion of discharge, provided an agreed non-cancellable charter between the Company and the charterer is in existence, the charter rate is fixed and determinable, and collectability is reasonably assured. Under voyage charters, voyage expenses include costs such as bunkers, port charges, canal tolls and cargo handling operations, whereas, under time charters, such voyage costs are the responsibility of the Company's customers. Vessel operating costs include crewing, vessel maintenance and vessel insurance. Brokerage commissions under voyage or time charters are included in voyage expenses. All voyage and vessel operating expenses are expensed as incurred on an accrual basis, except for commissions. Commissions are recognized over the related time or voyage charter period since commissions are earned as the Company's revenues are earned. Probable losses on voyages are provided for in full at the time such loss can be estimated. We adopted Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASC 606”) as of January 1, 2018 utilizing the modified retrospective method of transition. We recorded an adjustment of approximately $0.8 million to increase our opening accumulated deficit and increase our Unearned revenue and Other current assets on our Consolidated Balance Sheet on January 1, 2018. We adopted Accounting Standards Update 2016-02, “Leases”, (“ASC 842”) on January 1, 2019 which resulted in the recognition of operating lease right-of-use assets and related lease liabilities for operating leases of $30.5 million in Total Assets and Total Liabilities, respectively, on our Consolidated Balance Sheet on January 1, 2019. Additionally, the Company netted $1.8 million, which was previously recorded as fair value on time charters acquired in the Consolidated Balance Sheet as of December 31, 2018 against the Operating lease right-of-use assets upon adoption of ASC 842 on January 1, 2019. Operating lease right-of-use assets are assessed for any potential impairment on each balance sheet date. During the second quarter of 2020, the Company determined that there were impairment indicators present for one of our chartered-in vessel contracts and, as a result, we recorded an operating lease impairment of $0.4 million. The operating lease impairment was included as a component of operating (loss)/income in our Consolidated Statement of Operations for the year ended December 31, 2020. (n) Unearned Charter Hire Revenue: Unearned charter hire revenue represents cash received from charterers prior to the time such amounts are earned. These amounts are recognized as revenue as services are provided in future periods. (o) Repairs and Maintenance: All repair and maintenance expenses are expensed as incurred and are recorded in vessel expenses. (p) Protection and Indemnity Insurance: The Company’s Protection and Indemnity Insurance is subject to additional premiums referred to as "back calls" or "supplemental calls" which are accounted for on an accrual basis and are recorded in vessel expenses. (q) Earnings Per Share: Basic earnings per share is computed by dividing the net income or loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the impact of stock options, warrants and restricted stock under the treasury stock method unless their impact is anti-dilutive. Convertible Bond Debt is included in diluted earnings per share based on the if-converted method. (r) Interest Rate Risk Management: The Company is exposed to the impact of interest rate changes for outstanding debt under the New Ultraco Debt Facility and Super Senior Facility. The Company's objective is to manage the impact of interest rate changes on its earnings and cash flows. On March 31, 2020, the Company entered into an interest rate swap agreement (“IRS”) to effectively convert a portion of its debt under the New Ultraco Debt Facility from a floating to a fixed-rate basis. The Company entered into two additional IRS agreements during the second quarter of 2020 to convert the remaining portion of its outstanding debt under the New Ultraco Debt Facility excluding the revolver facility. The IRS was designated and qualified as a cash flow hedge. The amount of the net payment obligation is based on the notional amount of the IRS and the prevailing market interest rates. The Company may terminate the IRS prior to their expiration dates, at which point a realized gain or loss would be recognized. The value of the Company’s commitment would increase or decrease based primarily on the extent to which interest rates move against the rate fixed for each swap. (s) Federal Taxes: The Company is a Republic of the Marshall Islands Corporation. For the years ended December 31, 2020, 2019 and 2018, the Company believes that its operations qualify for Internal Revenue Code Section 883 exemption and therefore are not subject to United States federal taxes on United States source shipping income. (t) Stock-based compensation: The Company issues stock-based compensation utilizing both stock options and stock grants. In accordance with Accounting Standards Codification 718, "Stock Compensation", ("ASC 718"), stock-based compensation is measured at the fair value of the award at the date of grant and recognized over the period of vesting on a straight-line basis using the graded vesting method. The grant-date fair value of stock options is estimated using the Black-Scholes option pricing model. Forfeitures are recognized as they occur. Impact of Recently Adopted Accounting Standards Leases On January 1, 2019, the Company adopted ASC 842. ASC 842 revises the accounting for leases. Under the new lease standard, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. The new lease standard will continue to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. The accounting applied by a lessor under the new guidance will be substantially equivalent to current lease accounting guidance. The following are the type of contracts that fall under ASC 842: Time charter out contracts Our shipping revenues are principally generated from time charters and voyage charters. In a time charter contract, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. The charterer has the full discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer, subject always to compliance with applicable sanction laws, and carry only lawful or non-hazardous cargo. In a time charter contract, the Company is responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubes. The charterer bears the voyage related costs such as bunker expenses, port charges and canal tolls during the hire period. The performance obligations in a time charter contract are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. The charterer generally pays the charter hire in advance of the upcoming contract period. The Company determined that all time charter contracts are considered operating leases and therefore fall under the scope of ASC 842 because: (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use. The transition guidance associated with ASC 842 allows for certain practical expedients to the lessors. The Company elected not to separate the lease and non-lease components included in the time charter revenue because the pattern of revenue recognition for the lease and non-lease components (included in the daily hire rate) is the same. The daily hire rate represents the hire rate for a bare boat charter as well as the compensation for expenses incurred running the vessel such as crewing expense, repairs, insurance, maintenance and lubes. Both the lease and non-lease components are earned by passage of time. The adoption of ASC 842 did not materially impact our accounting for time charter out contracts. The revenue generated from time charter out contracts is recognized on a straight-line basis over the term of the respective time charter agreements, which are recorded as part of revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018. Time charter-in contracts The Company charters in vessels to supplement our own fleet and employs them both on time charters and voyage charters. The time charter-in contracts range in lease terms from 30 days to 2 years. The Company elected the practical expedient of ASC 842 that allows for time charter-in contracts with an initial lease term of less than 12 months to be excluded from the operating lease right-of-use assets and lease liabilities recognized on our Consolidated Balance Sheet as of January 1, 2019. The Company recognized the operating lease right-of-use assets and the corresponding lease liabilities on the Consolidated Balance sheet for time charter-in contracts greater than 12 months on the date of adoption of ASC 842. The Company will continue to recognize the lease payments for all vessel operating leases as charter hire expenses on the consolidated statements of operations on a straight-line basis over the lease term. Under ASC 842, leases are classified as either finance or operating arrangements, with such classification affecting the pattern and classification of expense recognition in an entity's income statement. For operating leases, ASC 842 requires recognition in an entity’s income statement of a single lease expense, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. Right-of-use assets represent a right to use an underlying asset for the lease term and the related lease liability represents an obligation to make lease payments pursuant to the contractual terms of the lease agreement. At lease commencement, a lessee must develop a discount rate to calculate the present value of the lease payments so that it can determine lease classification and measure the lease liability. When determining the discount rate to be used at lease commencement, a lessee must use the rate implicit in the lease unless that rate cannot be readily determined. When the rate implicit in the lease cannot be readily determined, the lessee should use its incremental borrowing rate. The incremental borrowing rate is the rate that reflects the interest a lessee would have to pay to borrow funds on a collateralized basis over a similar term and in a similar economic environment. The Company determined that the time charter-in contracts do not contain an implicit borrowing rate. Therefore, the Company arrived at the incremental borrowing rate by determining the Company's implied credit rating and the yield curve for debt as of January 1, 2019. The Company then interpolated the yield curve to determine the incremental borrowing rate for each lease based on the remaining lease term on the specific lease. Based on the above methodology, the Company's incremental borrowing rates ranged from 2.81% to 6.08% for the five lease contracts for which the Company recorded operating lease right-of-use assets and corresponding lease liabilities. The Company has time charter-in contracts for three Ultramax vessels which are greater than 12 months as of the date of adoption of ASC 842. A brief description of each of these contracts is below: (i) The Company entered into an agreement effective April 28, 2017, to charter-in a 61,400 dwt, 2013 built Japanese vessel for approximately four years with options for two (ii) On May 4, 2018, the Company entered into an agreement to charter-in a 61,425 dwt 2013 built Ultramax vessel for three years with an option for an additional two years. The hire rate for the first three years is $12,700 per day and $13,750 per day for the first year option and $14,750 per day for the second year option. The Company took delivery of the vessel in the third quarter of 2018. The Company has determined that it will not exercise the existing options under this contract and therefore the options are not included in the calculation of the operating lease right-of-use asset. (iii) On December 9, 2018, the Company entered into an agreement to charter-in a 62,487 dwt 2016 built Ultramax vessel for two years. The hire rate for the vessel until March 2020 is $14,250 per day and $15,250 per day thereafter. The Company took delivery of the vessel in the fourth quarter of 2018. On December 25, 2019, the Company renegotiated the lease terms for another year at a hire rate of $11,600 per day. The Company accounted for this as a lease modification on December 25, 2019 and increased its lease liability and right-of-use asset on its balance sheet as of December 31, 2019 by $4.5 million. The vessel is expected to be redelivered in March 2021. On December 22, 2020, the Company entered into an agreement to charter-in a 63,634 dwt 2021 built Ultramax vessel for a period of minimum twelve months with an option for additional three months at a hire rate of $5,900 per day plus 57% of BSI 58 average of 10 TC routes as published by the Baltic Exchange each business day. Additionally, the Company shall share the scrubber benefit with the owners 50% calculated as the price differential between the high sulfur and low sulfur fuel oil based on actual bunker consumption during the lease period. The hire rate for the three month option would increase the fixed hire rate to $6,500 per day with no change in the rest of the terms. The vessel is expected to be delivered to the Company in the second quarter of 2021. No right-of-use asset or corresponding liability has been recognized in the Consolidated Balance Sheet as of December 31, 2020 since the Company did not take delivery of the vessel and as such lease term has not begun yet. Office leases On October 15, 2015, the Company entered into a commercial lease agreement as a sublessee for office space in Stamford, Connecticut. The lease is effective from January 2016 through June 2023, with an average annual rent of $0.4 million. The lease is secured by a letter of credit backed by cash collateral of $0.1 million and is recorded as restricted cash - noncurrent in the accompanying consolidated balance sheets as of December 31, 2020 and 2019. In November 2018, the Company entered into an office lease agreement in Singapore, which expires in October 2021, with an average annual rent of $0.3 million. The Company determined the two office leases to be operating leases and recorded the lease expense as part of General and administrative expenses in the Consolidated Statement of Operations for the years ended December 31, 2020, 2019 and 2018. On July 27, 2020, the lessor on our office sublease in Stamford, Connecticut filed for Chapter 11 reorganization in the U.S. Bankruptcy Court in Birmingham, Alabama. On September 21, 2020, the primary landlord assumed the sublease with the existing lease terms. Adoption of ASC 842 The Company adopted ASC 842 on January 1, 2019, which resulted in the recognition of operating lease right-of-use assets of $28.7 million and related lease liabilities for operating leases of $30.5 million in Total Assets and Total Liabilities, respectively, on our Consolidated Balance Sheet on January 1, 2019. In connection with its adoption of ASC 842, the Company elected the "package of 3" practical expedients permitted under the transition guidance, which exempts the Company from reassessing: • whether any expired or existing contracts are or contain leases. • any expired or existing lease classifications. • initial direct costs for any existing leases. Additionally, the Company elected, consistent with the practical expedient allowed under the transition guidance of ASC 842 to not separate the lease and non-lease components related to a lease contract and to account for them instead as a single lease component for the purposes of the recognition and measurement requirements of ASC 842. The Company elected not to use the practical expedient of hindsight in determining the lease term and in assessing the impairment of the Company's operating lease right-of-use assets. Prior to January 1, 2019, the Company recognized lease expense in accordance with then-existing U.S. GAAP (“prior GAAP”). Because both ASC 842 and prior GAAP generally recognize operating lease expenses on a straight-line basis over the term of the lease arrangement and the Company only has operating lease arrangements, there were no material differences between the timing and amount of lease expenses recognized under the two accounting methodologies for the years ended December 31, 2020, 2019 and 2018. Lease Disclosures Under ASC 842 The objective of the disclosure requirements under ASC 842 is to enable users of an entity’s financial statements to assess the amount, timing and uncertainty of cash flows arising from lease arrangements. In addition to the qualitative leasing disclosures included above, below are quantitative disclosures that are intended to meet the stated objective of ASC 842. Operating lease right-of-use assets and lease liabilities as of December 31, 2020 and 2019 are as follows: Description Location in Balance Sheet December 31, 2020 (1) December 31, 2019 (1) Non current assets: Chartered-in contracts greater than 12 months (2) Operating lease right-of-use assets $ 6,207,253 $ 18,442,965 Office leases Operating lease right-of-use assets 1,333,618 1,967,072 $ 7,540,871 $ 20,410,037 Liabilities: Chartered-in contracts greater than 12 months Current portion of operating lease liabilities $ 6,974,943 $ 12,622,524 Office leases Current portion of operating lease liabilities 640,428 633,454 Lease liabilities - current portion $ 7,615,371 $ 13,255,978 Chartered-in contracts greater than 12 months Noncurrent portion of operating lease liabilities $ — $ 6,974,943 Office leases Noncurrent portion of operating lease liabilities 686,422 1,326,850 Lease liabilities - non current portion $ 686,422 $ 8,301,793 (1) The Operating lease right-of-use assets and Operating lease liabilities represent the present value of lease payments for the remaining term of the lease. The discount rate used ranged from 2.81% to 6.08%. The weighted average discount rate used to calculate the lease liability was 5.22%. (2) During the second quarter of 2020, the Company determined that there were impairment indicators present for one of our chartered-in vessel contracts and, as a result, we recorded an operating lease impairment of $0.4 million. The operating lease impairment was included as component of Operating (loss)/income in our Consolidated Statements of Operations for the year ended December 31, 2020. The table below presents the components of the Company’s lease expenses and sub-lease income on a gross basis earned from chartered-in contracts greater than 12 months for the year ended December 31, 2020 and 2019: Description Location in Statement of Operations For the Year Ended For the Year Ended Lease expense for chartered-in contracts less than 12 months Charter hire expenses $ 8,731,978 $ 28,805,970 Lease expense for chartered-in contracts greater than 12 months Charter hire expenses $ 12,548,246 13,362,672 Total charter hire expenses $ 21,280,224 42,168,642 Lease expense for office leases General and administrative expenses $ 733,874 719,698 Sub lease income from chartered-in contracts greater than 12 months * Revenues, net $ 8,589,156 10,259,768 * The sub-lease income represents only time charter revenue earned on the chartered-in contracts greater than 12 months. There is additional revenue earned from voyage charters on the same chartered-in contracts which is recorded in Revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. Additionally, there is revenue earned from time charters from chartered-in contracts less than 12 months which is included in Revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. The cash paid for operating leases with terms greater than 12 months is $14.0 million and $14.8 million for the years ended December 31, 2020 and 2019, respectively. The weighted average remaining lease term on our operating leases greater than 12 months is 10.4 months. The table below provides the total amount of lease payments on an undiscounted basis on our time chartered-in contracts and office leases greater than 12 months as of December 31, 2020: Year Chartered-in contracts greater than 12 months Office leases Total Operating leases Discount rate upon adoption (1) 5.37 % 5.80 % 5.48 % 2021 6,982,810 700,257 7,683,067 2022 483,048 483,048 2023 244,878 244,878 6,982,810 1,428,183 8,410,993 Present value of lease liability 6,974,943 1,326,850 8,301,793 Lease liabilities - short term 6,974,943 640,428 7,615,371 Lease liabilities - long term — 686,422 686,422 Total lease liabilities 6,974,943 1,326,850 8,301,793 Discount based on incremental borrowing rate $ 7,867 $ 101,333 $ 109,200 (1) Discount rate upon adoption does not include the discount rate on the lease modification on December 25, 2019. The discount rate used for calculation of the right-of-use asset and the related lease liability on December 25, 2019 was 2.806%. Revenue recognition Voyage charters In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or “dead” freight. The voyage contract generally has standard payment terms of 95% freight paid within three days after completion of loading. The voyage charter party generally has a “demurrage” or “despatch” clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. The Company determined that its voyage charter contracts consist of a single performance obligation of transporting the cargo within a specified time period. Therefore, the performance obligation is met evenly as the voyage progresses and the revenue is recognized on a straight line basis over the voyage days from the commencement of the loading of cargo to the completion of discharge. The voyage contracts are |
Vessels and vessel improvements
Vessels and vessel improvements | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Vessels and vessel improvements | Vessels and vessel improvements As of December 31, 2020, the Company’s owned fleet consisted of 45 drybulk vessels. During the fourth quarter of 2020, the Company entered into a series of memorandum of agreements to purchase three high specification scrubber-fitted Ultramax bulkcarriers for a total purchase price of $50.2 million excluding direct expenses of acquisition. The Company took delivery of the vessels during the first quarter of 2021. The Company paid $3.3 million in advance on two of the above mentioned vessels and these advances are recorded in Advances for vessel purchases in the Consolidated Balance Sheet as of December 31, 2020. For the year ended December 31, 2020, the Company sold five vessels (Goldeneye, Hawk I, Osprey I, Shrike and Skua) for a total net proceeds of $23.2 million after brokerage commissions and associated selling expenses. The Company recorded a net loss of $0.5 million in the Consolidated Statement of Operations for the year ended December 31, 2020. During the third quarter of 2018, the Company entered into a series of agreements to purchase up to 37 scrubbers, which were fitted on the Company's vessels. The actual costs, including installation, were approximately $2.4 million per scrubber. During the second quarter of 2020, the Company completed and commissioned all 37 scrubbers and recorded $88.9 million in Vessels and vessel improvements in the Consolidated Balance Sheet as of December 31, 2020. During the third quarter of 2018, the Company entered into a contract for the installation of ballast water treatment systems (“BWTS”) on 39 of our owned vessels. The projected costs, including installation, are approximately $0.5 million per BWTS. The Company intends to complete the installations during scheduled drydockings. The Company completed installation of BWTS on 15 vessels and recorded $7.1 million in Vessels and vessel improvements in the Consolidated Balance Sheet as of December 31, 2020. Additionally, the Company recorded $2.3 million as advances paid towards installation of BWTS on the remaining vessels as a noncurrent asset in its Consolidated Balance Sheet as of December 31, 2020. During the second quarter of 2020, the Company applied for and received extensions from the USCG of up to one year for BWTS installation on 18 of our vessels. Additionally, the Company cancelled the BWTS installation orders on three of its vessels. The Vessel and vessel improvements activity for the years ended December 31, 2020 and 2019 is below: December 31, 2020 December 31, 2019 Vessel and vessel improvements at the beginning of the year $ 835,959,084 $ 682,944,936 Advance paid for vessel purchase — 2,040,000 Purchase of vessels and vessel improvements 979,612 143,477,720 Sale of vessels (23,458,118) (14,757,027) Scrubbers and BWTS 39,706,507 56,267,925 Depreciation expense (42,473,126) (34,014,470) Vessels and vessel improvements at the end of the year $ 810,713,959 $ 835,959,084 |
Deferred Drydock Costs
Deferred Drydock Costs | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Drydock Costs | Deferred Drydock Costs Drydocking activity is summarized as follows: December 31, 2020 December 31, 2019 Beginning Balance $ 17,495,270 $ 12,186,356 Payment for drydocking 14,293,562 11,903,474 Drydock amortization (7,378,752) (6,227,851) Write-off due to sale of vessels * (256,304) (366,709) Ending Balance $ 24,153,776 $ 17,495,270 * The Company wrote off drydock expenses of $0.3 million and $0.4 million, respectively, relating to the sale of vessels, which was recorded in (loss)/gain on sale of vessels in the Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. |
Other accrued liabilities
Other accrued liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other accrued liabilities | Other accrued liabilities Other accrued liabilities consist of: December 31, 2020 December 31, 2019 Vessel and voyage expenses $ 4,625,539 $ 6,651,395 Scrubber, BWTS and drydocking costs 1,178,695 16,226,398 General and administrative expenses 5,942,830 6,119,043 Total $ 11,747,064 $ 28,996,836 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt consists of the following: December 31, 2020 December 31, 2019 Convertible Bond Debt $ 114,120,000 $ 114,120,000 Debt discount and debt issuance costs - Convertible Bond Debt (17,459,515) (21,316,856) Convertible Bond Debt, net of debt discount and debt issuance costs 96,660,485 92,803,144 Norwegian Bond Debt 180,000,000 188,000,000 Debt discount and debt issuance costs - Norwegian Bond Debt (2,709,770) (4,132,690) Less: Current portion - Norwegian Bond Debt (8,000,000) (8,000,000) Norwegian Bond Debt, net of debt discount and debt issuance costs 169,290,230 175,867,310 New Ultraco Debt Facility 166,429,594 172,613,988 Debt discount and Debt issuance costs - New Ultraco Debt Facility (3,101,348) (3,507,824) Less: Current portion - New Ultraco Debt Facility (31,244,297) (27,709,394) New Ultraco Debt Facility, net of debt discount and debt issuance costs 132,083,949 141,396,770 Super Senior Facility 15,000,000 — Debt issuance costs - Super Senior Facility (103,643) — Super Senior Facility, net of debt issuance costs 14,896,357 — Total long-term debt $ 412,931,021 $ 410,067,224 Convertible Bond Debt On July 29, 2019, the Company issued $114.1 million in aggregate principal amount of 5.0% Convertible Senior Notes due 2024 (the “Convertible Bond Debt”). After deducting debt discount of $1.6 million, the Company received net proceeds of approximately $112.5 million. Additionally, the Company incurred $1.0 million of debt issuance costs relating to the transaction. The Company used the proceeds to partially finance the purchase of six Ultramax vessels and for general corporate purposes, including working capital. The Company took delivery of the vessels in the third and fourth quarters of 2019. The Convertible Bond Debt bears interest at a rate of 5.0% per annum on the outstanding principal amount thereof, payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2020. The Convertible Bond Debt may bear additional interest upon certain events, as set forth in the indenture governing the Convertible Bond Debt (the “Indenture”). The Convertible Bond Debt will mature on August 1, 2024 (the “Maturity Date”), unless earlier repurchased, redeemed or converted pursuant to its terms. The Company may not otherwise redeem the Convertible Bond Debt prior to the Maturity Date. Each holder has the right to convert any portion of the Convertible Bond Debt, provided such portion is of $1,000 or a multiple thereof, at any time prior to the close of business on the business day immediately preceding the Maturity Date. The conversion rate of the Convertible Bond Debt after adjusting for the Reverse Stock Split effected on September 15, 2020 is 25.453 shares of the Company's common stock per $1,000 principal amount of Convertible Bond Debt (which is equivalent to a conversion price of approximately $39.29 per share of its common stock). Upon conversion, the Company will pay or deliver, as the case may be, either cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election, to the holder (subject to shareholder approval requirements in accordance with the listing standards of the Nasdaq Global Select Market). If the Company undergoes a fundamental change, as set forth in the Indenture, each holder may require the Company to repurchase all or part of their Convertible Bond Debt for cash in principal amounts of $1,000 or a multiple thereof. The fundamental change repurchase price will be equal to 100% of the principal amount of the Convertible Bond Debt to be repurchased, plus accrued and unpaid interest. If, however, the holders elect to convert their Convertible Bond Debt in connection with the fundamental change, the Company will be required to increase the conversion rate of the Convertible Bond Debt at a rate determined by a combination of the date the fundamental change occurs and the stock price of the Company's common stock on such date. The Convertible Bond Debt is the general, unsecured senior obligations of the Company. It ranks: (i) senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Convertible Bond Debt; (ii) equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities of current or future subsidiaries of the Company. The indenture also provides for customary events of default. Generally, if an event of default occurs and is continuing, then the trustee or the holders of at least 25% in aggregate principal amount of the Convertible Bond Debt then outstanding may declare 100% of the principal of and accrued and unpaid interest, if any, on all the Convertible Bond Debt then outstanding to be due and payable. In accordance with ASC 470-Debt, the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) is to be separately accounted for in a manner that reflects the issuer's non-convertible debt borrowing rate. The guidance requires the initial proceeds received from the sale of convertible debt instruments to be allocated between a liability component and equity component in a manner that reflects the interest expense at the interest rate of similar non-convertible debt that could have been issued by the Company at the time of issuance. The Company accounted for the Convertible Bond Debt based on the above guidance and attributed a portion of the proceeds to the equity component. The resulting debt discount is amortized using effective interest method over the expected life of the Convertible Bond Debt as interest expense. Additionally, the debt discount and issuance costs were allocated based on the total amount incurred to the liability and equity components using the same proportions as the proceeds from the Convertible Bond Debt. Share Lending Agreement In connection with the issuance of the Convertible Bond Debt, certain persons entered into an arrangement (the “Share Lending Agreement”) to borrow up to 511,840 shares of the Company’s common stock through share lending arrangements from Jefferies LLC (“JCS”), an initial purchaser of the Convertible Bond Debt, which in turn entered into an arrangement to borrow the shares from an entity affiliated with Oaktree Capital Management, L.P., one of the Company’s shareholders. The number of shares under the Share Lending Agreement have been adjusted for the Reverse Stock Split. As of December 31, 2020, the fair value of the 0.5 million outstanding loaned shares was $9.7 million based on the closing price of the common stock on December 31, 2020. In connection with the Share Lending Agreement, JCS paid $0.03 million representing a nominal fee per borrowed share, equal to the par value of the Company’s common stock. While the share lending agreement does not require cash payment upon return of the shares, physical settlement is required (i.e., the loaned shares must be returned at the end of the arrangement). In view of this share return provision and other contractual undertakings of JCS in the share lending agreement, which have the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of borrowed shares, the loaned shares are not considered issued and outstanding for accounting purposes and for the purpose of computing and reporting the Company's basic and diluted weighted average shares or earnings per share. If JCS were to file bankruptcy or commence similar administrative, liquidating or restructuring proceedings, the Company will have to consider 0.5 million shares lent to JCS as issued and outstanding for the purposes of calculating earnings per share. New Ultraco Debt Facility On January 25, 2019, Ultraco Shipping LLC (“Ultraco”), a wholly-owned subsidiary of the Company, entered into a new senior secured credit facility, (the “New Ultraco Debt Facility”), which provides for an aggregate principal amount of $208.4 million, which consists of (i) a term loan facility of $153.4 million (the “Term Facility Loan”) and (ii) a revolving credit facility of $55.0 million. The proceeds from the New Ultraco Debt Facility were used to repay the outstanding debt including accrued interest under the Original Ultraco Debt Facility (as defined below) and the New First Lien Facility (as defined below) in full and for general corporate purposes. Subject to certain conditions set forth in the New Ultraco Debt Facility, Ultraco may request an increase of up to $60.0 million in the aggregate principal amount of the Term Facility Loan. Outstanding borrowings under the New Ultraco Debt Facility bear interest at LIBOR plus 2.50% per annum. The Company paid $3.1 million as debt issuance costs to the lenders. On October 1, 2019, Ultraco, the Company and certain initial and additional guarantors entered into a first amendment to the New Ultraco Debt Facility (the “First Amendment”) to provide for incremental commitments, and pursuant to which on October 4, 2019, Ultraco borrowed $34.3 million for general corporate purposes, including capital expenditures relating to the installation of scrubbers. The Company paid $0.4 million as debt issuance costs to the lenders. On April 20, 2020, Ultraco, the Company and certain initial and additional guarantors entered into a second amendment to the New Ultraco Debt Facility (the “Second Amendment”) to provide for certain amendments to definitions of consolidated interest coverage ratio and consolidated earnings before interest, taxes and depreciation and amortization (“EBITDA”). The amendment provides that the calculation interest coverage ratio does not include amortization of debt discount, debt issuance costs and non-cash interest income. The definition of EBITDA has been updated to exclude stock based compensation from net loss. On June 9, 2020, Ultraco, the Company and certain initial and additional guarantors entered into the Third Amendment (“the Third Amendment”) to the New Ultraco Debt Facility to provide for incremental commitments and pursuant to which on June 12, 2020, Ultraco borrowed $22.6 million for general corporate purposes which was secured by two Ultramaxes already owned by the Company, the M/V Hong Kong Eagle and M/V Santos Eagle. The Company paid $0.4 million as debt issuance costs to the lenders. The Company incurred an additional $0.2 million as other financing costs in relation to the transaction. As of December 31, 2020, the availability under the revolver facility is $55.0 million. During the second quarter of the year, the Company fully utilized the facility and this was repaid in full during the third and fourth quarters of 2020. The New Ultraco Debt Facility matures on January 25, 2024 (the “New Ultraco Maturity Date”). Pursuant to the terms of the facility, Ultraco must repay the aggregate principal amount excluding the amounts borrowed under the First Amendment, of $5.1 million in quarterly installments for the first year and $7.8 million in quarterly installments from the second year until the New Ultraco Maturity Date. Additionally, there are semi-annual catch up amortization payments from excess cash flow with a maximum cumulative payable of $4.6 million, with a final balloon payment of all remaining outstanding debt to be made on the New Ultraco Maturity Date. Ultraco’s obligations under the New Ultraco Debt Facility are secured by, among other items, a first priority mortgage on 26 vessels owned by the Guarantors as identified in the New Ultraco Debt Facility and such other vessels that it may from time to time include with the approval of the Lenders (the “Ultraco Vessels”). The New Ultraco Debt Facility contains financial covenants requiring the Company, on a consolidated basis excluding Shipco (as defined below) and any of Shipco’s subsidiaries (each, a “Restricted Subsidiary”) and any of the vessels owned by any Restricted Subsidiary to maintain a minimum amount of free cash or cash equivalents in an amount not less than the greater of (i) $0.6 million per owned vessel and (ii) 7.5% of the total consolidated debt of the Company and its subsidiaries, excluding any Restricted Subsidiary, which currently consists of amounts outstanding under the New Ultraco Debt Facility. The New Ultraco Debt Facility also requires the Company to maintain a liquidity reserve of $0.6 million per Ultraco Vessel in an unblocked account. Additionally, the New Ultraco Debt Facility requires the Company, on a consolidated basis, excluding any Restricted Subsidiary and the vessels owned by any Restricted Subsidiary, to maintain (i) a ratio of minimum value adjusted tangible equity to total assets ratio of not less than 0.30:1, (ii) a consolidated interest coverage ratio of not less than a range varying from 1.50 to 1.00 to 2.50 to 1.00, and (iii) a positive working capital. The New Ultraco Debt Facility also imposes operating restrictions on Ultraco and the Guarantors. The Company is in compliance with its financial covenants under the New Ultraco Debt Facility as of December 31, 2020. Norwegian Bond Debt On November 28, 2017, Eagle Bulk Shipco LLC, a wholly-owned subsidiary of the Company (“Shipco” or “Issuer”) issued $200.0 million in aggregate principal amount of 8.25% Senior Secured Bonds (the “Bonds” or the “Norwegian Bond Debt”). After giving effect to an original issue discount of approximately 1% and deducting offering expenses of $3.1 million, the net proceeds from the issuance of the Bonds are approximately $195.0 million. These net proceeds from the Bonds, together with the proceeds from the New First Lien Facility and cash on hand, were used to repay all amounts outstanding including accrued interest under various debt facilities outstanding at that time and to pay expenses associated with the refinancing transactions. Shipco incurred $1.3 million in other financing costs in connection with the transaction. Interest on the Bonds accrues at a rate of 8.25% per annum and the Bonds will mature on November 28, 2022. The Norwegian Bond Debt is guaranteed by the Issuer's subsidiaries and secured by mortgages over 19 vessels (the “Shipco Vessels”), pledges of the equity of the Issuer and its subsidiaries and certain assignments. The Issuer may redeem some or all of the outstanding Bonds on the terms and conditions and prices set forth in the bond terms. Upon a change of control of the Company, each holder of the Bonds has the right to require that the Issuer purchase all or some of the Bonds held by such holder at a price equal to 101% of the nominal amount, plus accrued interest. The Bond Terms contain certain financial covenants that the Issuer’s leverage ratio defined as the ratio of outstanding bond amount and any drawn amounts under the Super Senior Facility less consolidated cash balance to the aggregate book value of the Shipco Vessels must not exceed 75% and free liquidity must at all times be at least $12.5 million. The Company is in compliance with its financial covenants as of December 31, 2020. During the year ended December 31, 2020, the Company sold five vessels, Goldeneye, Skua, Osprey, Hawk and Shrike for combined net proceeds of $23.2 million. During the years ended December 31, 2019 and 2018, the Company sold five vessels, Kestrel, Thrasher, Condor, Merlin and Thrasher, for combined net proceeds of $40.4 million. Pursuant to the bond terms governing the Norwegian Bond Debt, the proceeds from the sale of vessels are to be held in a restricted account to be used for the financing of the acquisition of additional vessels by Shipco and for the partial financing of the scrubbers. As a result, the Company recorded the proceeds from the sale of these vessels as restricted cash - current in the Consolidated Balance Sheets as of December 31, 2020 and 2019. The proceeds were used to purchase one Ultramax vessel for $20.1 million and partial financing of scrubbers for $23.6 million. Additionally, the Company paid a deposit of $1.6 million towards purchase of an Ultramax vessel which was delivered during the first quarter of 2021. New First Lien Facility On December 8, 2017, Eagle Shipping LLC, a wholly-owned subsidiary of the Company (“Eagle Shipping”) entered into a credit agreement (the “New First Lien Facility”), which provided for (i) a term loan facility in an aggregate principal amount of up to $60.0 million (the “Term Loan”) and (ii) a revolving credit facility in an aggregate principal amount of up to $5.0 million (the “Revolving Loan”). On January 25, 2019, the Company repaid the outstanding balances of the Term Loan and the Revolving Loan together with accrued interest as of that date and discharged the debt under the New First Lien Facility in full from the proceeds of the New Ultraco Debt Facility. The Company accounted for the above transaction as a debt extinguishment. As a result, the Company recognized $1.1 million, representing the outstanding balance of debt issuance costs, as a loss on debt extinguishment in the Consolidated Statement of Operations for the year ended December 31, 2019. Super Senior Facility On December 8, 2017, Shipco entered into the Super Senior Facility, which provides for a revolving credit facility in an aggregate amount of up to $15.0 million. The proceeds of the Super Senior Facility are expected to be used (i) to acquire additional vessels or vessel owners and (ii) for general corporate and working capital purposes of Shipco and its subsidiaries. The Super Senior Facility matures on August 28, 2022. Shipco paid $0.3 million as other financing costs in connection with the transaction. As of December 31, 2020, $15.0 million was drawn down to be used for general corporate purposes. The outstanding borrowings under the Super Senior Facility will bear interest at LIBOR plus 2.00% per annum and commitment fees of 40% of the applicable margin on the undrawn portion of the facility. For each loan that is requested under the Super Senior Facility, Shipco must repay such loan along with accrued interest on the last day of each interest period relating to the loan. Shipco’s obligations under the Super Senior Facility are guaranteed by the limited liability companies that are subsidiaries of Shipco and the legal and beneficial owners of 19 vessels in the Company’s fleet (the “Eagle Shipco Vessel Owners”), and are secured by, among other things, mortgages over such vessels. The Super Senior Facility ranks super senior to the Bonds with respect to any proceeds from any enforcement action relating to security or guarantees for both the Super Senior Facility and the Bonds. The Super Senior Facility contains certain covenants that limit Shipco’s and its subsidiaries’ ability to do the following: make distributions; carry out any merger, other business combination, or corporate reorganization; make substantial changes to the general nature of their respective businesses; incur certain indebtedness; incur liens; make loans or guarantees; make certain investments; transact other than on arm’s-length terms; enter into sale and leaseback transactions; engage in certain chartering-in of vessels; or dispose of shares of Eagle Shipco Vessel Owners. Additionally, Shipco’s leverage ratio must not exceed 75% and its and its subsidiaries’ free liquidity must at all times be at least $12.5 million. Also, the total commitments under the Super Senior Facility will be cancelled if (i) at any time the aggregate market value of the security vessels for the Super Senior Facility is less than 300% of the total commitments under the Super Senior Facility or (ii) if Shipco or any of its subsidiaries redeems or otherwise repays the Bonds so that less than $100.0 million is outstanding under the Bond Terms. Shipco is in compliance with its financial covenants as of December 31, 2020. The Super Senior Facility also contains certain events of default customary for transactions of this type. Original Ultraco Debt Facility On June 28, 2017, Ultraco, a wholly-owned subsidiary of the Company, entered into a credit agreement (the “Original Ultraco Debt Facility”) which was repaid in full from the proceeds of the New Ultraco Debt Facility on January 25, 2019. The Company accounted for the above transaction as a debt extinguishment. As a result, the Company recognized $1.2 million representing the outstanding balance of debt issuance costs as a loss on debt extinguishment in the Consolidated Statement of Operations for the year ended December 31, 2019. Interest rates 2020 For the year ended December 31, 2020, the interest rate on the Convertible Bond Debt was 5.00%. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 10.14%. For the year ended December 31, 2020, the interest rate on the New Ultraco Debt Facility ranged from 2.73% to 4.68% including a margin over LIBOR applicable under the terms of the New Ultraco Debt Facility and commitment fees of 40% of the margin on the undrawn portion of the revolver credit facility of the New Ultraco Debt Facility. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 3.98%. For the year ended December 31, 2020, the interest rate on the Norwegian Bond Debt was 8.25%. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 8.75%. For the year ended December 31, 2020, the interest rate on our outstanding debt under the Super Senior Facility ranged between 2.24% and 2.89%. The weighted average effective interest rate including the amortization of debt issuance costs for the year was 3.00%. Additionally, we pay commitment fees of 40% of the margin on the undrawn portion of the Super Senior Revolver Facility. 2019 For the year ended December 31, 2019, the interest rate on the New First Lien Facility, which was repaid on January 25, 2019, ranged from 5.89% to 6.01% including a margin over LIBOR applicable under the terms of the New First Lien Facility and commitment fees of 40% of the margin on the undrawn portion of the revolver credit facility of the New First Lien Facility. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 6.45%. For the year ended December 31, 2019, the interest rate on the Original Ultraco Debt Facility, which was repaid on January 25, 2019, was 5.28% including a margin over LIBOR and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate for the year was 6.80%. For the year ended December 31, 2019, the interest rate on the Convertible Bond Debt was 5.00%. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 10.14%. For the year ended December 31, 2019, the interest rate on the Norwegian Bond Debt was 8.25%. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 9.04%. For the year ended December 31, 2019, the interest rate on the New Ultraco Debt Facility ranged from 4.51% to 5.26% including a margin over LIBOR applicable under the terms of the New Ultraco Debt Facility and commitment fees of 40% of the margin on the undrawn portion of the revolver credit facility of the New Ultraco Debt Facility. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 4.54%. 2018 For the year ended December 31, 2018, the interest rate on the Norwegian Bond Debt was 8.25%. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 8.91%. The interest rates on the Original Ultraco Debt Facility ranged from 4.64% to 5.76% including a margin over LIBOR and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate for the year was 5.58%. The interest rates on the New First Lien Facility ranged from 4.91% to 5.89% including a margin over LIBOR and commitment fees of 40% of the margin on the undrawn portion of the revolver credit facility of the New First Lien Facility. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 6.12%. Interest expense consisted of: For the Years Ended December 31, 2020 December 31, 2019 December 31, 2018 Amortization of debt discount and debt issuance costs $ 6,272,309 $ 3,783,939 $ 1,913,651 Convertible Bond Debt interest 5,737,650 2,377,550 — Original Ultraco Debt Facility interest — 362,257 3,774,309 Norwegian Bond Debt interest 15,298,250 15,930,750 16,424,449 New Ultraco Debt Facility interest 7,612,342 7,172,442 — New First Lien Facility interest — 293,545 3,509,790 Super Senior Facility interest 215,804 — — Commitment fees on revolver facilities 256,268 657,006 121,332 Total Interest expense $ 35,392,623 $ 30,577,489 $ 25,743,531 Scheduled Debt Maturities The following table presents the scheduled maturities of principal amounts of our debt obligations for the next five years. Norwegian Bond Debt Super Senior Facility New Ultraco Debt Facility Convertible Bond Debt (1) Total 2021 $ 8,000,000 $ — $ 31,244,297 $ — $ 39,244,297 2022 172,000,000 15,000,000 31,244,297 — 218,244,297 2023 — — 31,244,297 — 31,244,297 2024 — — 72,696,703 114,120,000 186,816,703 $ 180,000,000 $ 15,000,000 $ 166,429,594 $ 114,120,000 $ 475,549,594 (1) This amount represents the total amount of the Convertible Bond Debt that would be paid in cash at the election of the Company upon maturity. |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Derivative Instruments and Fair Value Measurements | Derivative Instruments and Fair Value Measurements Interest rate swaps On March 31, 2020, the Company entered into an IRS to effectively convert a portion of its debt under the New Ultraco Debt Facility from a floating to a fixed-rate basis. The Company entered into two additional IRS agreements during the second quarter of 2020 to convert the remaining portion of its outstanding debt under the New Ultraco Debt Facility excluding the revolver facility. The IRS was designated and qualified as a cash flow hedge. The Company uses the IRS for the management of interest rate risk exposure, as the IRS effectively converts a portion of the Company’s debt from a floating to a fixed rate. The IRS is an agreement between the Company and counterparties to pay, in the future, a fixed-rate payment in exchange for the counterparties paying the Company a variable payment. The amount of the net payment obligation is based on the notional amount of the IRS and the prevailing market interest rates. The Company may terminate the IRS prior to their expiration dates, at which point a realized gain or loss would be recognized. The value of the Company’s commitment would increase or decrease based primarily on the extent to which interest rates move against the rate fixed for each swap. Tabular disclosure of derivatives location The following table summarizes the interest rate swaps in place as of December 31, 2020 and December 31, 2019. Interest Rate Swap detail Notional Amount outstanding Trade date Fixed rate Start date End date December 31, 2020 December 31, 2019 March 31, 2020 0.64 % July 27, 2020 January 26, 2024 $ 72,452,297 $ — April 15, 2020 0.58 % July 27, 2020 January 26, 2024 36,226,149 — June 25, 2020 0.50 % July 27, 2020 January 26, 2024 57,751,148 — $ 166,429,594 $ — Under these swap contracts, exclusive of applicable margins, the Company will pay fixed rate interest and receive floating-rate interest amounts based on three-month LIBOR settings. The Company records the fair value of the interest rate swap as an asset or liability on its balance sheet. The effective portion of the swap is recorded in accumulated other comprehensive loss. As of December 31, 2020, the effective portion of the swap recorded in accumulated comprehensive loss was $1.1 million. The estimated loss that is currently recorded in accumulated other comprehensive loss as of December 31, 2020 that is expected to be reclassified into earnings within the next twelve months is $0.6 million. No portion of the cash flow hedges was ineffective during the year ended December 31, 2020. The effect of derivative instruments on the Statements of Operations for the years ended December 31, 2020 and 2019 is below: Derivatives designated as hedging instruments Location of loss in Statements of Operations Effective portion of loss reclassified from Accumulated other Comprehensive loss For the Years Ended December 31, 2020 December 30, 2019 Interest rate swaps Interest expense $ 110,945 — T he following table shows the interest rate swap liabilities as of December 31, 2020 and 2019: Derivatives designated as hedging instruments Balance Sheet location December 31, 2020 December 31, 2019 Interest rate swap Fair value of derivatives - current $ 481,791 $ — Interest rate swap Fair value of derivatives - noncurrent $ 650,607 $ — Forward freight agreements and bunker swaps The Company trades in forward freight agreements (“FFAs”) and bunker swaps, 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 and bunker swaps have not qualified for hedge accounting treatment. As such, unrealized and realized gains are recognized as a component of other expense in the Consolidated Statement of Operations and Other current assets and Fair value of derivatives in the Consolidated Balance Sheets. Derivatives are considered to be Level 2 instruments in the fair value hierarchy. For our bunker swaps, the Company may enter into master netting, collateral and offset agreements with counterparties. As of December 31, 2020, the Company has International Swaps and Derivatives Association (“ISDA”) agreements with two applicable banks and financial institutions which contain netting provisions. In addition to a master agreement with the Company supported by a primary parent guarantee on either side, the Company also has associated credit support agreements in place with the two counterparties which, among other things, provide the circumstances under which either party is required to post eligible collateral, when the market value of transactions covered by these agreements exceeds specified thresholds. The Company does not anticipate non-performance by any of the counterparties. As of December 31, 2020, no collateral had been received or pledged related to these bunker swaps. As of December 31, 2020, the Company had outstanding bunker swap agreements to purchase 10,350 metric tons of low sulphur fuel oil with prices ranging between $186 and $524 per metric ton, that are expiring on December 31, 2021. As of December 31, 2020, the Company did not have any open FFAs. The effect of non-designated derivative instruments on the Consolidated Statements of Operations: For the Years Ended Derivatives not designated as hedging instruments Location of (gain)/loss recognized December 31, 2020 December 31, 2019 FFAs - realized loss/(gain) Realized and unrealized loss/(gain) on derivative instruments, net $ 3,822,049 $ (402,129) FFAs - unrealized loss Realized and unrealized loss/(gain) on derivative instruments, net 711,708 292,527 Bunker swaps - realized (gain)/loss Realized and unrealized loss/(gain) on derivative instruments, net (8,347,947) 528,361 Bunker swaps - unrealized gain Realized and unrealized loss/(gain) on derivative instruments, net (1,012,584) (269,127) Total $ (4,826,774) $ 149,632 Fair value of derivatives Derivatives not designated as hedging instruments Balance Sheet Location December 31, 2020 December 31, 2019 FFAs - Unrealized gain Other current assets $ — $ 475,650 Bunker Swaps - Unrealized loss Fair value of derivatives — 756,229 Bunker Swaps - Unrealized gain Other current assets 352,399 96,043 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. The amount of collateral to be posted is defined in the terms of respective master agreement executed with counterparties or exchanges and is required when agreed upon threshold limits are exceeded. As of December 31, 2020 and December 31, 2019, the Company posted cash collateral related to derivative instruments under its collateral security arrangements of $0.1 million and $0.6 million, respectively, which is recorded within Other current assets in the consolidated balance sheets. 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— the carrying amounts reported in the consolidated balance sheets for interest-bearing deposits approximate their fair value due to their short-term nature thereof. Debt —the carrying values approximates fair values for bonds issued under the Norwegian Bond Debt and Convertible Bond Debt, which are traded on the Oslo Stock Exchange and NASDAQ, respectively. The carrying amounts of our term loan borrowing under the New Ultraco Debt Facility and the revolving credit arrangement under the Super Senior Facility approximate their fair value, due to their variable interest rates. 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. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Our Level 2 non-derivatives include our short-term investments and debt balances under the Convertible Bond Debt, Norwegian Bond Debt, Super Senior Facility, and the New Ultraco Debt Facility. Freight forward agreements, bunker swaps and interest rate swaps are considered to be a Level 2 item as the Company, using the income approach to value the derivatives, uses observable Level 2 market inputs at measurement date and standard valuation techniques to convert future amounts to a single present amount assuming that participants are motivated, but not compelled to transact. Level 3 – Inputs that are unobservable (for example cash flow modeling inputs based on assumptions). Assets and liabilities measured at fair value: Fair Value Carrying Value (5) Level 1 Level 2 December 31, 2020 Assets Cash and cash equivalents (1) $ 88,848,771 $ 88,848,771 $ — Liabilities Norwegian Bond Debt (2) 180,000,000 — 173,250,000 New Ultraco Debt Facility (3) 166,429,594 — 166,429,594 Super Senior Facility (3) 15,000,000 — 15,000,000 Convertible Bond Debt (4) 114,120,000 — 92,748,748 Fair Value Carrying Value (5) Level 1 Level 2 December 31, 2019 Assets Cash and cash equivalents (1) $ 59,130,285 $ 59,130,285 $ — Liabilities Norwegian Bond Debt (2) 188,000,000 — 192,626,680 New Ultraco Debt Facility (3) 172,613,988 — 172,613,988 Convertible Bond Debt 114,120,000 — 118,844,868 (1) Includes restricted cash (current and non-current) of $18.9 million at December 31, 2020 and $5.5 million at December 31, 2019. (2) The fair value of the bonds is based on the last trade on December 14, 2020 and December 21, 2019 on Bloomberg.com. (3) The fair value of the liabilities is based on the required repayment to the lenders if the debt was discharged in full on December 31, 2020 (4) The fair value of the Convertible Bond Debt is based on the last trade on December 21, 2020 and the last trade on November 21, 2019 on Bloomberg.com (5) The outstanding debt balances represent the face value of the debt excluding debt discount and debt issuance costs. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings 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. We have not been involved in any legal proceedings which we believe may have, or have had, a significant effect on our business, financial position, results of operations or liquidity, nor are we aware of any proceedings that are pending or threatened which we believe may have a significant effect on our business, financial position, and results of operations or liquidity. From time to time, we may be subject to legal proceedings and claims in the ordinary course of business, principally personal injury and property casualty claims. We expect that these claims would be covered by insurance, subject to customary deductibles. Those claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. |
Net (Loss)_income per Common Sh
Net (Loss)/income per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net (Loss)/income per Common Share | Net (loss)/income per Common Share The computation of basic net (loss)/income per share is based on the weighted average number of common shares outstanding for the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020 and 2019, the Company had 3,040,540 outstanding warrants convertible to 21,718 shares of the Company's common stock with an exercise price of $3,894.80 per share. The warrants have a 7 year term and will expire on October 15, 2021. Diluted net (loss)/income 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 for the year ended December 31, 2020 does not include 218,013 stock awards, 325,591 stock options and outstanding warrants convertible to 21,718 shares of common stock as their effect was anti-dilutive. Additionally, the Convertible Bond Debt is not considered a participating security and therefore not included in the computation of Basic net loss per share for the year ended December 31, 2020. The Company determined that it does not overcome the presumption of share settlement of outstanding debt and therefore the Company applied the if-converted method and did not include the potential shares to be issued upon conversion of Convertible Bond Debt in the calculation of Diluted net loss per share for the year ended December 31, 2020 as their effect was anti-dilutive. Diluted net loss per share for the year ended December 31, 2019 does not include 222,786 stock awards, 326,399 stock options and outstanding warrants convertible to 21,718 shares of common stock as their effect was anti-dilutive. Additionally, the Convertible Bond Debt is not considered a participating security and therefore not included in the computation of Basic net loss per share for the year ended December 31, 2019. The Company determined that it does not overcome the presumption of share settlement of outstanding debt and therefore the Company applied the if-converted method and did not include the potential shares to be issued upon conversion of Convertible Bond Debt in the calculation of Diluted net loss per share for the year ended December 31, 2019 as their effect was anti-dilutive. Diluted net income per share for the year ended December 31, 2018 does not include 98 unvested stock awards, 49,803 stock options and outstanding warrants convertible to 21,718 shares of common stock as their effect was anti-dilutive. For the Years Ended December 31, 2020 December 31, 2019 December 31, 2018 Net (loss)/income $ (35,063,468) $ (21,697,115) $ 12,574,684 Weighted Average Shares - Basic * 10,310,246 10,195,088 10,095,030 Dilutive effect of stock options, warrants and restricted stock units * — — 162,423 Weighted Average Shares - Diluted * 10,310,246 10,195,088 10,257,453 Basic net (loss)/income per share * $ (3.40) $ (2.13) $ 1.25 Diluted net (loss)/income per share * $ (3.40) $ (2.13) $ 1.23 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans As a result of the Reverse Stock Split, 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. All references herein to common stock and per share data presented in this footnote have been retrospectively adjusted to reflect the Reverse Stock Split. 2014 Management Incentive Plan On October 15, 2014, in accordance with the Plan of Reorganization, the Company adopted the post-emergence Management Incentive Program (the “2014 Plan”), which provided for the distribution of New Eagle MIP Primary Equity in the form of shares of New Eagle Common Stock, and New Eagle MIP Options, to the participating senior management and other employees of the reorganized Company with 2% of the New Eagle Common Stock (on a fully diluted basis) on the Effective Date, and two tiers of options to acquire 5.5% of the New Eagle Common Stock (on a fully diluted basis) with different strike prices based on the equity value for the reorganized Company. During 2019, 7,232 restricted stock awards vested and none were forfeited. There are no outstanding unvested restricted stock awards outstanding as of December 31, 2020 and 2019. On November 7, 2016, the Company granted 33,409 shares of restricted common stock and options to purchase 40,000 shares of the Company’s common stock in connection with the appointment of a new member to the senior management team. The restricted stock and option were not granted under, but are subject to, the terms of the Company’s 2014 Plan. The details of the grant are below: Restricted shares * Fair value on grant date Aggregate Vesting Terms Granted on November 7, 2016 33,409 $ 29.68 $ 1.0 100% vesting on third anniversary date Unvested restricted stock outstanding as of December 31, 2018 and 2017 33,409 $ 29.68 $ 1.0 Vested during 2019 (18,022) Cancellations due to settlement of tax liability on vested shares (15,387) Unvested restricted stock outstanding as of December 31, 2020 — $ — $ — * Amortization of the above stock awards was calculated using the cliff method of vesting and included in general and administrative expenses. Options** Weighted Average Exercise Expiration(years) Risk free Volatility Dividend % Fair Value of Options on grant date Aggregate Expected Term and vesting conditions Granted on November 7, 2016 40,000 $ 29.96 5 1.10 % 61 % — % $ 1.91 $ 0.53 3.75 years and 25% vesting annually over four Vested during 2017 (10,000) $ (0.13) Unvested options outstanding as of December 31, 2017 30,000 $ 29.96 $ 1.91 $ 0.40 Vested during 2018 (10,000) $ (0.13) Unvested options outstanding as of December 31, 2018 20,000 $ 29.96 $ 1.91 $ 0.27 Vested during 2019 (10,000) $ 1.91 $ (0.13) Unvested options outstanding as of December 31, 2019 10,000 $ 29.96 $ 1.91 $ 0.14 Vested during 2020 (10,000) $ (0.14) Unvested options outstanding as of December 31, 2020 — $ — $ — $ — ** The volatility was calculated by comparing the Company’s share price movement since emergence from bankruptcy on October 14, 2014 and its peers’ share price movement for the past five years. The amortization of these stock options was calculated using the graded method of vesting and included in general and administrative expenses. There are 40,000 options vested but not exercised and no unvested options as of December 31, 2020. The vested but not exercised options expire at various dates beginning November 2022 until November 2023 at an exercise price of $29.96 per share. 2016 Equity Compensation Plan On December 15, 2016, the Company’s shareholders approved the 2016 Equity Compensation Plan (the “2016 Plan”) and the Company registered 764,087 shares of common stock which may be issued under the 2016 Plan. The 2016 Plan replaced the 2014 Plan and no other awards will be granted under the 2014 Plan. Outstanding awards under the 2014 Plan will continue to be governed by the terms of the 2014 Plan until exercised, expired, otherwise terminated, or canceled. Under the terms of the 2016 Plan, awards for up to a maximum of 428,571 shares may be granted under the 2016 Plan to any one employee of the Company and its subsidiaries during any one calendar year, and awards in the form of options and stock appreciation rights for up to a maximum of 428,571 shares may be granted under the 2016 Plan. The total number of shares of common stock with respect to which awards may be granted under the 2016 Plan to any non-employee director during any one calendar year shall not exceed 71,428, subject to adjustment as provided in the 2016 Plan. Any Director, officer, employee or consultant of the Company or any of its subsidiaries (including any prospective officer or employee) is eligible to be designated to participate in the 2016 Plan. The Company withheld shares related to restricted stock awards that vested in 2019 at the fair market value equivalent to the maximum statutory withholding obligation and remitted that amount in cash to the appropriate taxation authorities. On June 7, 2019, the Company's shareholders approved an amendment and restatement of the 2016 Plan, which increased the number of shares reserved under the 2016 Plan by an additional 357,142 shares to a maximum of 1,121,229 shares of common stock. The following schedule represents outstanding stock awards and options granted under the 2016 Plan: Restricted shares Weighted Average Fair value on grant date Aggregate fair value (in millions) Vesting Terms Unvested restricted stock outstanding as of December 31, 2018 173,209 33.60 5.82 Issued during 2019 118,484 32.27 3.82 33% vesting annually over three Vested during 2019 (41,859) 34.44 (1.44) Forfeitures and cancellations due to settlement of tax liability on vested shares during 2019 (27,048) 34.37 (0.93) Unvested restricted stock outstanding as of December 31, 2019 222,786 $ 32.63 $ 7.27 Issued during 2020 107,930 $ 22.12 $ 2.39 33% vesting annually over three Vested during 2020 (65,981) $ 32.63 $ (2.15) Forfeitures and cancellations due to settlement of tax liability on vested shares during 2020 (46,722) $ 32.63 $ (1.52) Unvested restricted stock outstanding as of December 31, 2020 218,013 $ 27.48 $ 5.99 Options* Weighted Average Exercise Expiration (years) Risk free Volatility Dividend % Fair Value of Options on grant date Aggregate fair value (in millions) Expected Term and Vesting conditions Unvested options outstanding as of December 31, 2018 93,119 33.04 1.75 Vested and unexercised during 2019 (66,476) 38.92 19.10 (1.27) Forfeitures during 2019 (643) 38.92 18.20 (0.01) Unvested options outstanding as of December 31, 2019 26,000 $ 38.92 $ 18.20 $ 0.47 Vested and unexercised during 2020 (13,000) $ 38.92 $ (9.10) $ (0.24) Unvested options outstanding as of December 31, 2020 13,000 $ 38.92 $ 9.10 $ 0.23 There are 272,591 options vested but not exercised as of December 31, 2020 and 13,000 options expected to vest. The Company issues new shares upon exercise of any vested options. The vested but not exercised options expire at various dates beginning September 2022 until October 2023 at exercise prices ranging between $29.96 and $38.92 per share. The stock-based compensation expense for the above stock awards and options under the 2016 Plan and 2014 Plan included in General and administrative expenses: For the Years Ended December 31, 2020 December 31, 2019 December 31, 2018 Stock awards /stock option plans $ 3,048,280 $ 4,826,324 $ 9,207,480 Total stock-based compensation expense $ 3,048,280 $ 4,826,324 $ 9,207,480 The future compensation to be recognized for all the grants excluding the grants issued January 2021, for the years ending December 31, 2021, 2022 and 2023 is estimated to be $1.0 million, $0.3 million and $0.0 million, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan In October 2010, the Company established a safe harbor 401(k) plan, which is available to full-time office employees who meet the plan’s eligibility requirements. The plan allows participants to contribute to the plan a percentage of pre-tax compensation, but not in excess of the maximum allowed under the Internal Revenue Code. The Company is matching contributions amounting to 100% of the first 3% and 50% of the next 2% of each employee’s salary. The matching contribution vests immediately. The Company revised its matching contributions to 100% of the first 6% of each employee's salary beginning January 1, 2019. The total matching contribution incurred by the Company and included in general and administrative expenses for the years ended December 31, 2020, 2019 and 2018 was $447,574, $435,142 and $275,674, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On January 28, 2021, the Company signed a memorandum of agreement to acquire a high-specification 2017 built scrubber-fitted Ultramax vessel for $15.0 million cash and a warrant for 212,315 common shares of the Company. The Company paid a deposit of $1.9 million on February 8, 2021. The vessel, which will be renamed the M/V Rotterdam Eagle is expected to be delivered in the second quarter of 2021. On February 5, 2021, the Company signed memorandums of agreement to acquire three 2011 built Supramax vessels for $21.2 million cash and a warrant for 329,583 common shares of the Company. The vessels, which will be renamed the M/V Sankaty Eagle, M/V Newport Eagle, and M/V Montauk Eagle are expected to be delivered in the first and second quarters of 2021. On February 19, 2021, the Company granted 93,412 restricted shares as a company-wide grant under the 2016 Plan. The fair value of the grant based on the closing share price on February 19, 2021 was $2.8 million. The shares will vest in equal installments over a three |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | Dec. 25, 2019 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Eagle Bulk Shipping Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions were eliminated upon consolidation. | |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles 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. Significant estimates include vessel impairment, vessel valuations, residual value of vessels, the useful lives of vessels, the value of stock-based compensation, fair value of the Convertible Bond Debt (as defined below) and its equity component, estimated losses on our trade receivables, fair value of right-of-use assets and lease liabilities and the fair value of derivatives. Actual results could differ from those estimates. | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash: The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents | |
Accounts Receivable | Accounts Receivable: Accounts receivable includes receivables from charterers for time and voyage charterers. On January 1, 2020, the Company adopted Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses” (“ASC 326”). At each balance sheet date, the Company maintains an allowance for credit losses for expected uncollectible accounts receivable. | |
Insurance Claims | Insurance Claims: Insurance claims are recorded net of any deductible amounts for insured damages which are recognized when recovery is virtually certain under the related insurance policies and where the Company can make an estimate of the amount to be reimbursed following the insurance claim. | |
Inventories | Inventories: Inventories, which consist of bunkers, are stated at cost which is determined on a first-in, first-out method. Lubes and spares are expensed as incurred. | |
Short-term Investments | Short-term Investments: The Company considers liquid investments such as certificate of deposits with an original maturity of greater than three months as investments. | |
Vessels and vessel improvements, at cost | Vessels and vessel improvements, at cost: Vessels are stated at cost, which consists of the contract price, and other direct costs relating to acquiring and placing the vessels in service. Major vessel improvements such as scrubbers and ballast water systems are capitalized and depreciated over the remaining useful lives of the vessels. Depreciation is calculated on a straight-line basis over the estimated useful lives of the vessels based on the cost of the vessels reduced by the estimated scrap value of the vessels as discussed below. | |
Vessel lives | Vessel useful economic life and Impairment of Long-Lived Assets: The Company estimates the useful life of the Company's vessels to be 25 years from the date of initial delivery from the shipyard to the original owner. The useful lives of the Company's vessels are evaluated to determine if events have occurred which would require modification to their useful lives. In addition, the Company estimates the scrap value of the vessels to be $300 per light weight ton ("lwt"). | |
Impairment of Long-Lived Assets | The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company will evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset as provided by third parties. The Company reviews on an annual basis all the assumptions used in the calculation of undiscounted cash flows. Based on the review, for the year ended December 31, 2020, the Company made a decision to use 15 year average of one and three year time charter rates as published by a third party (Clarksons.com) in its calculation of undiscounted cash flows. Historically, the Company utilized 25 year average of one and three year time charter rates. This is considered a change in accounting estimate. The change in accounting estimate did not have any material impact on its consolidated financial statements. | |
Accounting For Drydocking Costs | Accounting for Drydocking Costs: The Company follows the deferral method of accounting for drydocking costs whereby actual costs incurred are deferred and are amortized on a straight-line basis over the period through the date the next drydocking is required to become due, generally 30 months if the vessels are 15 years old or more and 60 months for the vessels younger than 15 years. Costs deferred as part of the drydocking include direct costs that are incurred as part of the drydocking to meet regulatory requirements. Certain costs are capitalized during drydocking if they are expenditures that add economic life to the vessel, increase the vessel’s earnings capacity or improve the vessel’s efficiency. Direct costs that are deferred include the shipyard costs, parts, inspection fees, steel, blasting and painting. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. Unamortized drydocking costs of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels’ sale. Unamortized drydocking costs are written off as drydocking expense if the vessels are drydocked before the expiration of the applicable amortization period. | |
Deferred Financing Costs | Deferred Financing Costs: Fees incurred for obtaining new loans or refinancing existing ones are deferred and amortized to interest expense over the life of the related debt using the effective interest method. Unamortized deferred financing costs are written off when the related debt is repaid or refinanced and such amounts are expensed in the period the repayment or refinancing is made. Such amounts are classified as a reduction of the long-term debt balance on the consolidated balance sheets. | |
Other fixed assets | Other fixed assets: Other fixed assets are stated at cost less accumulated depreciation. Depreciation is based on a straight-line basis over the estimated useful life of the asset. Other fixed assets consist principally of leasehold improvements, computers and software and are depreciated over three years | |
Accounting For Revenues And Expenses | Accounting for Revenues and Expenses: Revenues generated from time charters and/or revenues generated from profit sharing arrangements are recognized on a straight-line basis over the term of the respective time charter agreements as service is provided and the profit sharing is fixed and determinable. Under voyage charters, voyage revenues for cargo transportation are recognized ratably over the estimated relative transit time of each voyage. Voyage revenue is deemed to commence upon the loading of the charterer’s cargo and is deemed to end upon the completion of discharge, provided an agreed non-cancellable charter between the Company and the charterer is in existence, the charter rate is fixed and determinable, and collectability is reasonably assured. Under voyage charters, voyage expenses include costs such as bunkers, port charges, canal tolls and cargo handling operations, whereas, under time charters, such voyage costs are the responsibility of the Company's customers. Vessel operating costs include crewing, vessel maintenance and vessel insurance. Brokerage commissions under voyage or time charters are included in voyage expenses. All voyage and vessel operating expenses are expensed as incurred on an accrual basis, except for commissions. Commissions are recognized over the related time or voyage charter period since commissions are earned as the Company's revenues are earned. Probable losses on voyages are provided for in full at the time such loss can be estimated. We adopted Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASC 606”) as of January 1, 2018 utilizing the modified retrospective method of transition. We recorded an adjustment of approximately $0.8 million to increase our opening accumulated deficit and increase our Unearned revenue and Other current assets on our Consolidated Balance Sheet on January 1, 2018. We adopted Accounting Standards Update 2016-02, “Leases”, (“ASC 842”) on January 1, 2019 which resulted in the recognition of operating lease right-of-use assets and related lease liabilities for operating leases of $30.5 million in Total Assets and Total Liabilities, respectively, on our Consolidated Balance Sheet on January 1, 2019. Additionally, the Company netted $1.8 million, which was previously recorded as fair value on time charters acquired in the Consolidated Balance Sheet as of December 31, 2018 against the Operating lease right-of-use assets upon adoption of ASC 842 on January 1, 2019. Operating lease right-of-use assets are assessed for any potential impairment on each balance sheet date. During the second quarter of 2020, the Company determined that there were impairment indicators present for one of our chartered-in vessel contracts and, as a result, we recorded an operating lease impairment of $0.4 million. The operating lease impairment was included as a component of operating (loss)/income in our Consolidated Statement of Operations for the year ended December 31, 2020. | |
Unearned Charter Hire Revenue | Unearned Charter Hire Revenue: Unearned charter hire revenue represents cash received from charterers prior to the time such amounts are earned. These amounts are recognized as revenue as services are provided in future periods. | |
Repairs and Maintenance | Repairs and Maintenance: All repair and maintenance expenses are expensed as incurred and are recorded in vessel expenses. | |
Protection and Indemnity Insurance | Protection and Indemnity Insurance: The Company’s Protection and Indemnity Insurance is subject to additional premiums referred to as "back calls" or "supplemental calls" which are accounted for on an accrual basis and are recorded in vessel expenses. | |
Earnings Per Share | Earnings Per Share: Basic earnings per share is computed by dividing the net income or loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the impact of stock options, warrants and restricted stock under the treasury stock method unless their impact is anti-dilutive. Convertible Bond Debt is included in diluted earnings per share based on the if-converted method. | |
Interest Rate Risk Management | Interest Rate Risk Management: The Company is exposed to the impact of interest rate changes for outstanding debt under the New Ultraco Debt Facility and Super Senior Facility. The Company's objective is to manage the impact of interest rate changes on its earnings and cash flows. On March 31, 2020, the Company entered into an interest rate swap agreement (“IRS”) to effectively convert a portion of its debt under the New Ultraco Debt Facility from a floating to a fixed-rate basis. The Company entered into two additional IRS agreements during the second quarter of 2020 to convert the remaining portion of its outstanding debt under the New Ultraco Debt Facility excluding the revolver facility. The IRS was designated and qualified as a cash flow hedge. The amount of the net payment obligation is based on the notional amount of the IRS and the prevailing market interest rates. The Company may terminate the IRS prior to their expiration dates, at which point a realized gain or loss would be recognized. The value of the Company’s commitment would increase or decrease based primarily on the extent to which interest rates move against the rate fixed for each swap. | |
Federal Taxes | Federal Taxes: The Company is a Republic of the Marshall Islands Corporation. For the years ended December 31, 2020, 2019 and 2018, the Company believes that its operations qualify for Internal Revenue Code Section 883 exemption and therefore are not subject to United States federal taxes on United States source shipping income. | |
Share-based compensation | Stock-based compensation: The Company issues stock-based compensation utilizing both stock options and stock grants. In accordance with Accounting Standards Codification 718, "Stock Compensation", ("ASC 718"), stock-based compensation is measured at the fair value of the award at the date of grant and recognized over the period of vesting on a straight-line basis using the graded vesting method. The grant-date fair value of stock options is estimated using the Black-Scholes option pricing model. Forfeitures are recognized as they occur. | |
Impact of Recently Issued Accounting Standards | Impact of Recently Adopted Accounting Standards Leases On January 1, 2019, the Company adopted ASC 842. ASC 842 revises the accounting for leases. Under the new lease standard, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. The new lease standard will continue to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. The accounting applied by a lessor under the new guidance will be substantially equivalent to current lease accounting guidance. The following are the type of contracts that fall under ASC 842: Time charter out contracts Our shipping revenues are principally generated from time charters and voyage charters. In a time charter contract, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. The charterer has the full discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer, subject always to compliance with applicable sanction laws, and carry only lawful or non-hazardous cargo. In a time charter contract, the Company is responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubes. The charterer bears the voyage related costs such as bunker expenses, port charges and canal tolls during the hire period. The performance obligations in a time charter contract are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. The charterer generally pays the charter hire in advance of the upcoming contract period. The Company determined that all time charter contracts are considered operating leases and therefore fall under the scope of ASC 842 because: (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use. The transition guidance associated with ASC 842 allows for certain practical expedients to the lessors. The Company elected not to separate the lease and non-lease components included in the time charter revenue because the pattern of revenue recognition for the lease and non-lease components (included in the daily hire rate) is the same. The daily hire rate represents the hire rate for a bare boat charter as well as the compensation for expenses incurred running the vessel such as crewing expense, repairs, insurance, maintenance and lubes. Both the lease and non-lease components are earned by passage of time. The adoption of ASC 842 did not materially impact our accounting for time charter out contracts. The revenue generated from time charter out contracts is recognized on a straight-line basis over the term of the respective time charter agreements, which are recorded as part of revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018. Time charter-in contracts The Company charters in vessels to supplement our own fleet and employs them both on time charters and voyage charters. The time charter-in contracts range in lease terms from 30 days to 2 years. The Company elected the practical expedient of ASC 842 that allows for time charter-in contracts with an initial lease term of less than 12 months to be excluded from the operating lease right-of-use assets and lease liabilities recognized on our Consolidated Balance Sheet as of January 1, 2019. The Company recognized the operating lease right-of-use assets and the corresponding lease liabilities on the Consolidated Balance sheet for time charter-in contracts greater than 12 months on the date of adoption of ASC 842. The Company will continue to recognize the lease payments for all vessel operating leases as charter hire expenses on the consolidated statements of operations on a straight-line basis over the lease term. Under ASC 842, leases are classified as either finance or operating arrangements, with such classification affecting the pattern and classification of expense recognition in an entity's income statement. For operating leases, ASC 842 requires recognition in an entity’s income statement of a single lease expense, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. Right-of-use assets represent a right to use an underlying asset for the lease term and the related lease liability represents an obligation to make lease payments pursuant to the contractual terms of the lease agreement. At lease commencement, a lessee must develop a discount rate to calculate the present value of the lease payments so that it can determine lease classification and measure the lease liability. When determining the discount rate to be used at lease commencement, a lessee must use the rate implicit in the lease unless that rate cannot be readily determined. When the rate implicit in the lease cannot be readily determined, the lessee should use its incremental borrowing rate. The incremental borrowing rate is the rate that reflects the interest a lessee would have to pay to borrow funds on a collateralized basis over a similar term and in a similar economic environment. The Company determined that the time charter-in contracts do not contain an implicit borrowing rate. Therefore, the Company arrived at the incremental borrowing rate by determining the Company's implied credit rating and the yield curve for debt as of January 1, 2019. The Company then interpolated the yield curve to determine the incremental borrowing rate for each lease based on the remaining lease term on the specific lease. Based on the above methodology, the Company's incremental borrowing rates ranged from 2.81% to 6.08% for the five lease contracts for which the Company recorded operating lease right-of-use assets and corresponding lease liabilities. The Company has time charter-in contracts for three Ultramax vessels which are greater than 12 months as of the date of adoption of ASC 842. A brief description of each of these contracts is below: (i) The Company entered into an agreement effective April 28, 2017, to charter-in a 61,400 dwt, 2013 built Japanese vessel for approximately four years with options for two (ii) On May 4, 2018, the Company entered into an agreement to charter-in a 61,425 dwt 2013 built Ultramax vessel for three years with an option for an additional two years. The hire rate for the first three years is $12,700 per day and $13,750 per day for the first year option and $14,750 per day for the second year option. The Company took delivery of the vessel in the third quarter of 2018. The Company has determined that it will not exercise the existing options under this contract and therefore the options are not included in the calculation of the operating lease right-of-use asset. (iii) On December 9, 2018, the Company entered into an agreement to charter-in a 62,487 dwt 2016 built Ultramax vessel for two years. The hire rate for the vessel until March 2020 is $14,250 per day and $15,250 per day thereafter. The Company took delivery of the vessel in the fourth quarter of 2018. On December 25, 2019, the Company renegotiated the lease terms for another year at a hire rate of $11,600 per day. The Company accounted for this as a lease modification on December 25, 2019 and increased its lease liability and right-of-use asset on its balance sheet as of December 31, 2019 by $4.5 million. The vessel is expected to be redelivered in March 2021. On December 22, 2020, the Company entered into an agreement to charter-in a 63,634 dwt 2021 built Ultramax vessel for a period of minimum twelve months with an option for additional three months at a hire rate of $5,900 per day plus 57% of BSI 58 average of 10 TC routes as published by the Baltic Exchange each business day. Additionally, the Company shall share the scrubber benefit with the owners 50% calculated as the price differential between the high sulfur and low sulfur fuel oil based on actual bunker consumption during the lease period. The hire rate for the three month option would increase the fixed hire rate to $6,500 per day with no change in the rest of the terms. The vessel is expected to be delivered to the Company in the second quarter of 2021. No right-of-use asset or corresponding liability has been recognized in the Consolidated Balance Sheet as of December 31, 2020 since the Company did not take delivery of the vessel and as such lease term has not begun yet. Office leases On October 15, 2015, the Company entered into a commercial lease agreement as a sublessee for office space in Stamford, Connecticut. The lease is effective from January 2016 through June 2023, with an average annual rent of $0.4 million. The lease is secured by a letter of credit backed by cash collateral of $0.1 million and is recorded as restricted cash - noncurrent in the accompanying consolidated balance sheets as of December 31, 2020 and 2019. In November 2018, the Company entered into an office lease agreement in Singapore, which expires in October 2021, with an average annual rent of $0.3 million. The Company determined the two office leases to be operating leases and recorded the lease expense as part of General and administrative expenses in the Consolidated Statement of Operations for the years ended December 31, 2020, 2019 and 2018. On July 27, 2020, the lessor on our office sublease in Stamford, Connecticut filed for Chapter 11 reorganization in the U.S. Bankruptcy Court in Birmingham, Alabama. On September 21, 2020, the primary landlord assumed the sublease with the existing lease terms. Adoption of ASC 842 The Company adopted ASC 842 on January 1, 2019, which resulted in the recognition of operating lease right-of-use assets of $28.7 million and related lease liabilities for operating leases of $30.5 million in Total Assets and Total Liabilities, respectively, on our Consolidated Balance Sheet on January 1, 2019. In connection with its adoption of ASC 842, the Company elected the "package of 3" practical expedients permitted under the transition guidance, which exempts the Company from reassessing: • whether any expired or existing contracts are or contain leases. • any expired or existing lease classifications. • initial direct costs for any existing leases. Additionally, the Company elected, consistent with the practical expedient allowed under the transition guidance of ASC 842 to not separate the lease and non-lease components related to a lease contract and to account for them instead as a single lease component for the purposes of the recognition and measurement requirements of ASC 842. The Company elected not to use the practical expedient of hindsight in determining the lease term and in assessing the impairment of the Company's operating lease right-of-use assets. Prior to January 1, 2019, the Company recognized lease expense in accordance with then-existing U.S. GAAP (“prior GAAP”). Because both ASC 842 and prior GAAP generally recognize operating lease expenses on a straight-line basis over the term of the lease arrangement and the Company only has operating lease arrangements, there were no material differences between the timing and amount of lease expenses recognized under the two accounting methodologies for the years ended December 31, 2020, 2019 and 2018. Lease Disclosures Under ASC 842 The objective of the disclosure requirements under ASC 842 is to enable users of an entity’s financial statements to assess the amount, timing and uncertainty of cash flows arising from lease arrangements. In addition to the qualitative leasing disclosures included above, below are quantitative disclosures that are intended to meet the stated objective of ASC 842. Operating lease right-of-use assets and lease liabilities as of December 31, 2020 and 2019 are as follows: Description Location in Balance Sheet December 31, 2020 (1) December 31, 2019 (1) Non current assets: Chartered-in contracts greater than 12 months (2) Operating lease right-of-use assets $ 6,207,253 $ 18,442,965 Office leases Operating lease right-of-use assets 1,333,618 1,967,072 $ 7,540,871 $ 20,410,037 Liabilities: Chartered-in contracts greater than 12 months Current portion of operating lease liabilities $ 6,974,943 $ 12,622,524 Office leases Current portion of operating lease liabilities 640,428 633,454 Lease liabilities - current portion $ 7,615,371 $ 13,255,978 Chartered-in contracts greater than 12 months Noncurrent portion of operating lease liabilities $ — $ 6,974,943 Office leases Noncurrent portion of operating lease liabilities 686,422 1,326,850 Lease liabilities - non current portion $ 686,422 $ 8,301,793 (1) The Operating lease right-of-use assets and Operating lease liabilities represent the present value of lease payments for the remaining term of the lease. The discount rate used ranged from 2.81% to 6.08%. The weighted average discount rate used to calculate the lease liability was 5.22%. (2) During the second quarter of 2020, the Company determined that there were impairment indicators present for one of our chartered-in vessel contracts and, as a result, we recorded an operating lease impairment of $0.4 million. The operating lease impairment was included as component of Operating (loss)/income in our Consolidated Statements of Operations for the year ended December 31, 2020. The table below presents the components of the Company’s lease expenses and sub-lease income on a gross basis earned from chartered-in contracts greater than 12 months for the year ended December 31, 2020 and 2019: Description Location in Statement of Operations For the Year Ended For the Year Ended Lease expense for chartered-in contracts less than 12 months Charter hire expenses $ 8,731,978 $ 28,805,970 Lease expense for chartered-in contracts greater than 12 months Charter hire expenses $ 12,548,246 13,362,672 Total charter hire expenses $ 21,280,224 42,168,642 Lease expense for office leases General and administrative expenses $ 733,874 719,698 Sub lease income from chartered-in contracts greater than 12 months * Revenues, net $ 8,589,156 10,259,768 * The sub-lease income represents only time charter revenue earned on the chartered-in contracts greater than 12 months. There is additional revenue earned from voyage charters on the same chartered-in contracts which is recorded in Revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. Additionally, there is revenue earned from time charters from chartered-in contracts less than 12 months which is included in Revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. The cash paid for operating leases with terms greater than 12 months is $14.0 million and $14.8 million for the years ended December 31, 2020 and 2019, respectively. The weighted average remaining lease term on our operating leases greater than 12 months is 10.4 months. The table below provides the total amount of lease payments on an undiscounted basis on our time chartered-in contracts and office leases greater than 12 months as of December 31, 2020: Year Chartered-in contracts greater than 12 months Office leases Total Operating leases Discount rate upon adoption (1) 5.37 % 5.80 % 5.48 % 2021 6,982,810 700,257 7,683,067 2022 483,048 483,048 2023 244,878 244,878 6,982,810 1,428,183 8,410,993 Present value of lease liability 6,974,943 1,326,850 8,301,793 Lease liabilities - short term 6,974,943 640,428 7,615,371 Lease liabilities - long term — 686,422 686,422 Total lease liabilities 6,974,943 1,326,850 8,301,793 Discount based on incremental borrowing rate $ 7,867 $ 101,333 $ 109,200 (1) Discount rate upon adoption does not include the discount rate on the lease modification on December 25, 2019. The discount rate used for calculation of the right-of-use asset and the related lease liability on December 25, 2019 was 2.806%. Revenue recognition Voyage charters In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or “dead” freight. The voyage contract generally has standard payment terms of 95% freight paid within three days after completion of loading. The voyage charter party generally has a “demurrage” or “despatch” clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. The Company determined that its voyage charter contracts consist of a single performance obligation of transporting the cargo within a specified time period. Therefore, the performance obligation is met evenly as the voyage progresses and the revenue is recognized on a straight line basis over the voyage days from the commencement of the loading of cargo to the completion of discharge. The voyage contracts are considered service contracts which fall under the provisions of ASC 606 because the Company as the shipowner retains the control over the operations of the vessel such as directing the routes taken or the vessel speed. The voyage contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage or despatch paid by the company for the years ended December 31, 2020 and 2019 was $6.3 million and $10.7 million, respectively. The following table shows the revenues earned from time charters and voyage charters for the years ended December 31, 2020, 2019 and 2018: For the Years Ended December 31, 2020 December 31, 2019 December 31, 2018 Time charters $ 105,028,131 $ 128,142,708 $ 140,006,570 Voyage charters 170,105,416 164,234,930 170,087,688 $ 275,133,547 $ 292,377,638 $ 310,094,258 Contract costs In a voyage charter contract, the Company bears all voyage related costs such as fuel costs, port charges and canal tolls. These costs are considered contract fulfillment costs because the costs are direct costs related to the performance of the contract and are expected to be recovered. The costs incurred during the period prior to commencement of loading the cargo, primarily bunkers, are deferred as they represent setup costs and recorded as a current asset and are amortized on a straight-line basis as the related performance obligations are satisfied. As of December 31, 2020 and 2019, the Company recognized $0.5 million and $0.4 million, respectively, of deferred costs which represents bunker expenses and charter hire expenses incurred prior to commencement of loading. These costs are recorded in Other current assets on the Consolidated Balance Sheets. Financial Instruments - Credit Losses On January 1, 2020, the Company adopted ASC 326. The accounting standard amended the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected credit losses which will result in more timely recognition of such losses. The Company adopted the accounting standard using the prospective transition approach as of January 1, 2020. The cumulative effect upon adoption was not material to our consolidated financial statements. The adoption of ASC 326 primarily impacted our trade receivables recorded on our Consolidated Balance Sheet as of December 31, 2020. The Company maintains an allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to accounts receivable and changes in such are classified as voyage expense in the Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. Upon adoption of ASC 326, the Company assessed collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considered historical collectability based on past due status and made judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considered customer-specific information, current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. For the year ended December 31, 2020, our assessment considered business and market disruptions caused by COVID-19 and estimates of expected emerging credit and collectability trends. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict causing variability and volatility that may have a material impact on our allowance for credit losses in future periods. The allowance for credit losses on accounts receivable was $2.4 million as of December 31, 2020 and $2.5 million as of December 31, 2019. Accounting Standards issued but not yet adopted The FASB has issued accounting standards that had not yet become effective as of December 31, 2020 and may impact the Company’s consolidated financial statements or related disclosures in future periods. Those standards and their potential impact are discussed below. Accounting standards effective in 2021 In March 2020, the FASB issued Accounting Standards Update 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting", (“ASU 2020-04”). ASU 2020-04 addresses concerns about certain accounting consequences that could result from the anticipated transition away from the use of LIBOR and other interbank offered rates to alternative reference rates. ASU 2020-04 is elective and applies “to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.” ASU 2020-04 establishes (1) a general contract modification principle that entities can apply in other areas that may be affected by reference rate reform and (2) certain elective hedge accounting expedients. ASU 2020-04 is optional and effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the adoption of ASU 2020-04 on its debt under the New Ultraco Debt Facility and Super Senior Facility, as both facilities bear interest on outstanding borrowings at LIBOR plus a margin rate. In August 2020, the FASB issued Accounting Standards Update 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity", (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. ASU 2020-06 removes from U.S. GAAP the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, after adopting the ASU's guidance, entities will not separately present in equity an embedded conversion |
Significant Accounting Polici_3
Significant Accounting Policies Significant Accounting Policies (Tables) | Dec. 25, 2019 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Schedule of Reconciliation of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash within the Consolidated Balance Sheets that sum to the total amounts shown in the Consolidated Statements of Cash Flows: December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 Cash and cash equivalents $ 69,927,594 $ 53,583,898 $ 67,209,753 $ 56,251,044 Restricted cash - current 18,846,177 5,471,470 — — Restricted cash - noncurrent 75,000 74,917 10,953,885 74,917 $ 88,848,771 $ 59,130,285 $ 78,163,638 $ 56,325,961 | |
Assets And Liabilities, Lease | Operating lease right-of-use assets and lease liabilities as of December 31, 2020 and 2019 are as follows: Description Location in Balance Sheet December 31, 2020 (1) December 31, 2019 (1) Non current assets: Chartered-in contracts greater than 12 months (2) Operating lease right-of-use assets $ 6,207,253 $ 18,442,965 Office leases Operating lease right-of-use assets 1,333,618 1,967,072 $ 7,540,871 $ 20,410,037 Liabilities: Chartered-in contracts greater than 12 months Current portion of operating lease liabilities $ 6,974,943 $ 12,622,524 Office leases Current portion of operating lease liabilities 640,428 633,454 Lease liabilities - current portion $ 7,615,371 $ 13,255,978 Chartered-in contracts greater than 12 months Noncurrent portion of operating lease liabilities $ — $ 6,974,943 Office leases Noncurrent portion of operating lease liabilities 686,422 1,326,850 Lease liabilities - non current portion $ 686,422 $ 8,301,793 (1) The Operating lease right-of-use assets and Operating lease liabilities represent the present value of lease payments for the remaining term of the lease. The discount rate used ranged from 2.81% to 6.08%. The weighted average discount rate used to calculate the lease liability was 5.22%. (2) During the second quarter of 2020, the Company determined that there were impairment indicators present for one of our chartered-in vessel contracts and, as a result, we recorded an operating lease impairment of $0.4 million. The operating lease impairment was included as component of Operating (loss)/income in our Consolidated Statements of Operations for the year ended December 31, 2020. | |
Charter Hire Expense | The table below presents the components of the Company’s lease expenses and sub-lease income on a gross basis earned from chartered-in contracts greater than 12 months for the year ended December 31, 2020 and 2019: Description Location in Statement of Operations For the Year Ended For the Year Ended Lease expense for chartered-in contracts less than 12 months Charter hire expenses $ 8,731,978 $ 28,805,970 Lease expense for chartered-in contracts greater than 12 months Charter hire expenses $ 12,548,246 13,362,672 Total charter hire expenses $ 21,280,224 42,168,642 Lease expense for office leases General and administrative expenses $ 733,874 719,698 Sub lease income from chartered-in contracts greater than 12 months * Revenues, net $ 8,589,156 10,259,768 * The sub-lease income represents only time charter revenue earned on the chartered-in contracts greater than 12 months. There is additional revenue earned from voyage charters on the same chartered-in contracts which is recorded in Revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. Additionally, there is revenue earned from time charters from chartered-in contracts less than 12 months which is included in Revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. | |
Future Minimum Lease Payments | The table below provides the total amount of lease payments on an undiscounted basis on our time chartered-in contracts and office leases greater than 12 months as of December 31, 2020: Year Chartered-in contracts greater than 12 months Office leases Total Operating leases Discount rate upon adoption (1) 5.37 % 5.80 % 5.48 % 2021 6,982,810 700,257 7,683,067 2022 483,048 483,048 2023 244,878 244,878 6,982,810 1,428,183 8,410,993 Present value of lease liability 6,974,943 1,326,850 8,301,793 Lease liabilities - short term 6,974,943 640,428 7,615,371 Lease liabilities - long term — 686,422 686,422 Total lease liabilities 6,974,943 1,326,850 8,301,793 Discount based on incremental borrowing rate $ 7,867 $ 101,333 $ 109,200 | |
Disaggregation of Revenue | The following table shows the revenues earned from time charters and voyage charters for the years ended December 31, 2020, 2019 and 2018: For the Years Ended December 31, 2020 December 31, 2019 December 31, 2018 Time charters $ 105,028,131 $ 128,142,708 $ 140,006,570 Voyage charters 170,105,416 164,234,930 170,087,688 $ 275,133,547 $ 292,377,638 $ 310,094,258 |
Vessels and vessel improvemen_2
Vessels and vessel improvements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Vessel And Vessel Improvements | The Vessel and vessel improvements activity for the years ended December 31, 2020 and 2019 is below: December 31, 2020 December 31, 2019 Vessel and vessel improvements at the beginning of the year $ 835,959,084 $ 682,944,936 Advance paid for vessel purchase — 2,040,000 Purchase of vessels and vessel improvements 979,612 143,477,720 Sale of vessels (23,458,118) (14,757,027) Scrubbers and BWTS 39,706,507 56,267,925 Depreciation expense (42,473,126) (34,014,470) Vessels and vessel improvements at the end of the year $ 810,713,959 $ 835,959,084 |
Deferred Drydock Costs (Tables)
Deferred Drydock Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule Of Dry Docking Activity | Drydocking activity is summarized as follows: December 31, 2020 December 31, 2019 Beginning Balance $ 17,495,270 $ 12,186,356 Payment for drydocking 14,293,562 11,903,474 Drydock amortization (7,378,752) (6,227,851) Write-off due to sale of vessels * (256,304) (366,709) Ending Balance $ 24,153,776 $ 17,495,270 * The Company wrote off drydock expenses of $0.3 million and $0.4 million, respectively, relating to the sale of vessels, which was recorded in (loss)/gain on sale of vessels in the Consolidated Statements of Operations for the years ended December 31, 2020 and 2019. |
Other accrued liabilities (Tabl
Other accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of: December 31, 2020 December 31, 2019 Vessel and voyage expenses $ 4,625,539 $ 6,651,395 Scrubber, BWTS and drydocking costs 1,178,695 16,226,398 General and administrative expenses 5,942,830 6,119,043 Total $ 11,747,064 $ 28,996,836 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: December 31, 2020 December 31, 2019 Convertible Bond Debt $ 114,120,000 $ 114,120,000 Debt discount and debt issuance costs - Convertible Bond Debt (17,459,515) (21,316,856) Convertible Bond Debt, net of debt discount and debt issuance costs 96,660,485 92,803,144 Norwegian Bond Debt 180,000,000 188,000,000 Debt discount and debt issuance costs - Norwegian Bond Debt (2,709,770) (4,132,690) Less: Current portion - Norwegian Bond Debt (8,000,000) (8,000,000) Norwegian Bond Debt, net of debt discount and debt issuance costs 169,290,230 175,867,310 New Ultraco Debt Facility 166,429,594 172,613,988 Debt discount and Debt issuance costs - New Ultraco Debt Facility (3,101,348) (3,507,824) Less: Current portion - New Ultraco Debt Facility (31,244,297) (27,709,394) New Ultraco Debt Facility, net of debt discount and debt issuance costs 132,083,949 141,396,770 Super Senior Facility 15,000,000 — Debt issuance costs - Super Senior Facility (103,643) — Super Senior Facility, net of debt issuance costs 14,896,357 — Total long-term debt $ 412,931,021 $ 410,067,224 |
Schedule Of Interest Expense | Interest expense consisted of: For the Years Ended December 31, 2020 December 31, 2019 December 31, 2018 Amortization of debt discount and debt issuance costs $ 6,272,309 $ 3,783,939 $ 1,913,651 Convertible Bond Debt interest 5,737,650 2,377,550 — Original Ultraco Debt Facility interest — 362,257 3,774,309 Norwegian Bond Debt interest 15,298,250 15,930,750 16,424,449 New Ultraco Debt Facility interest 7,612,342 7,172,442 — New First Lien Facility interest — 293,545 3,509,790 Super Senior Facility interest 215,804 — — Commitment fees on revolver facilities 256,268 657,006 121,332 Total Interest expense $ 35,392,623 $ 30,577,489 $ 25,743,531 |
Schedule of Maturities of Long-term Debt | The following table presents the scheduled maturities of principal amounts of our debt obligations for the next five years. Norwegian Bond Debt Super Senior Facility New Ultraco Debt Facility Convertible Bond Debt (1) Total 2021 $ 8,000,000 $ — $ 31,244,297 $ — $ 39,244,297 2022 172,000,000 15,000,000 31,244,297 — 218,244,297 2023 — — 31,244,297 — 31,244,297 2024 — — 72,696,703 114,120,000 186,816,703 $ 180,000,000 $ 15,000,000 $ 166,429,594 $ 114,120,000 $ 475,549,594 (1) |
Derivative Instruments and Fa_2
Derivative Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Interest Rate Swap Agreements | The following table summarizes the interest rate swaps in place as of December 31, 2020 and December 31, 2019. Interest Rate Swap detail Notional Amount outstanding Trade date Fixed rate Start date End date December 31, 2020 December 31, 2019 March 31, 2020 0.64 % July 27, 2020 January 26, 2024 $ 72,452,297 $ — April 15, 2020 0.58 % July 27, 2020 January 26, 2024 36,226,149 — June 25, 2020 0.50 % July 27, 2020 January 26, 2024 57,751,148 — $ 166,429,594 $ — |
Schedule of Derivative Instruments, Effective Portion of Loss Reclassified from Accumulated Other Comprehensive Loss | The effect of derivative instruments on the Statements of Operations for the years ended December 31, 2020 and 2019 is below: Derivatives designated as hedging instruments Location of loss in Statements of Operations Effective portion of loss reclassified from Accumulated other Comprehensive loss For the Years Ended December 31, 2020 December 30, 2019 Interest rate swaps Interest expense $ 110,945 — |
Schedule of Non-Designated Derivative Instruments Effect on Statement of Operations | T he following table shows the interest rate swap liabilities as of December 31, 2020 and 2019: Derivatives designated as hedging instruments Balance Sheet location December 31, 2020 December 31, 2019 Interest rate swap Fair value of derivatives - current $ 481,791 $ — Interest rate swap Fair value of derivatives - noncurrent $ 650,607 $ — The effect of non-designated derivative instruments on the Consolidated Statements of Operations: For the Years Ended Derivatives not designated as hedging instruments Location of (gain)/loss recognized December 31, 2020 December 31, 2019 FFAs - realized loss/(gain) Realized and unrealized loss/(gain) on derivative instruments, net $ 3,822,049 $ (402,129) FFAs - unrealized loss Realized and unrealized loss/(gain) on derivative instruments, net 711,708 292,527 Bunker swaps - realized (gain)/loss Realized and unrealized loss/(gain) on derivative instruments, net (8,347,947) 528,361 Bunker swaps - unrealized gain Realized and unrealized loss/(gain) on derivative instruments, net (1,012,584) (269,127) Total $ (4,826,774) $ 149,632 Fair value of derivatives Derivatives not designated as hedging instruments Balance Sheet Location December 31, 2020 December 31, 2019 FFAs - Unrealized gain Other current assets $ — $ 475,650 Bunker Swaps - Unrealized loss Fair value of derivatives — 756,229 Bunker Swaps - Unrealized gain Other current assets 352,399 96,043 |
Fair Value, by Balance Sheet Grouping | Assets and liabilities measured at fair value: Fair Value Carrying Value (5) Level 1 Level 2 December 31, 2020 Assets Cash and cash equivalents (1) $ 88,848,771 $ 88,848,771 $ — Liabilities Norwegian Bond Debt (2) 180,000,000 — 173,250,000 New Ultraco Debt Facility (3) 166,429,594 — 166,429,594 Super Senior Facility (3) 15,000,000 — 15,000,000 Convertible Bond Debt (4) 114,120,000 — 92,748,748 Fair Value Carrying Value (5) Level 1 Level 2 December 31, 2019 Assets Cash and cash equivalents (1) $ 59,130,285 $ 59,130,285 $ — Liabilities Norwegian Bond Debt (2) 188,000,000 — 192,626,680 New Ultraco Debt Facility (3) 172,613,988 — 172,613,988 Convertible Bond Debt 114,120,000 — 118,844,868 (1) Includes restricted cash (current and non-current) of $18.9 million at December 31, 2020 and $5.5 million at December 31, 2019. (2) The fair value of the bonds is based on the last trade on December 14, 2020 and December 21, 2019 on Bloomberg.com. (3) The fair value of the liabilities is based on the required repayment to the lenders if the debt was discharged in full on December 31, 2020 (4) The fair value of the Convertible Bond Debt is based on the last trade on December 21, 2020 and the last trade on November 21, 2019 on Bloomberg.com (5) The outstanding debt balances represent the face value of the debt excluding debt discount and debt issuance costs. |
Income_(Loss) per Common Share
Income/(Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the Years Ended December 31, 2020 December 31, 2019 December 31, 2018 Net (loss)/income $ (35,063,468) $ (21,697,115) $ 12,574,684 Weighted Average Shares - Basic * 10,310,246 10,195,088 10,095,030 Dilutive effect of stock options, warrants and restricted stock units * — — 162,423 Weighted Average Shares - Diluted * 10,310,246 10,195,088 10,257,453 Basic net (loss)/income per share * $ (3.40) $ (2.13) $ 1.25 Diluted net (loss)/income per share * $ (3.40) $ (2.13) $ 1.23 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Restricted Stock Award Activity | The restricted stock and option were not granted under, but are subject to, the terms of the Company’s 2014 Plan. The details of the grant are below: Restricted shares * Fair value on grant date Aggregate Vesting Terms Granted on November 7, 2016 33,409 $ 29.68 $ 1.0 100% vesting on third anniversary date Unvested restricted stock outstanding as of December 31, 2018 and 2017 33,409 $ 29.68 $ 1.0 Vested during 2019 (18,022) Cancellations due to settlement of tax liability on vested shares (15,387) Unvested restricted stock outstanding as of December 31, 2020 — $ — $ — * Amortization of the above stock awards was calculated using the cliff method of vesting and included in general and administrative expenses. The following schedule represents outstanding stock awards and options granted under the 2016 Plan: Restricted shares Weighted Average Fair value on grant date Aggregate fair value (in millions) Vesting Terms Unvested restricted stock outstanding as of December 31, 2018 173,209 33.60 5.82 Issued during 2019 118,484 32.27 3.82 33% vesting annually over three Vested during 2019 (41,859) 34.44 (1.44) Forfeitures and cancellations due to settlement of tax liability on vested shares during 2019 (27,048) 34.37 (0.93) Unvested restricted stock outstanding as of December 31, 2019 222,786 $ 32.63 $ 7.27 Issued during 2020 107,930 $ 22.12 $ 2.39 33% vesting annually over three Vested during 2020 (65,981) $ 32.63 $ (2.15) Forfeitures and cancellations due to settlement of tax liability on vested shares during 2020 (46,722) $ 32.63 $ (1.52) Unvested restricted stock outstanding as of December 31, 2020 218,013 $ 27.48 $ 5.99 |
Stock Options Activity | Options** Weighted Average Exercise Expiration(years) Risk free Volatility Dividend % Fair Value of Options on grant date Aggregate Expected Term and vesting conditions Granted on November 7, 2016 40,000 $ 29.96 5 1.10 % 61 % — % $ 1.91 $ 0.53 3.75 years and 25% vesting annually over four Vested during 2017 (10,000) $ (0.13) Unvested options outstanding as of December 31, 2017 30,000 $ 29.96 $ 1.91 $ 0.40 Vested during 2018 (10,000) $ (0.13) Unvested options outstanding as of December 31, 2018 20,000 $ 29.96 $ 1.91 $ 0.27 Vested during 2019 (10,000) $ 1.91 $ (0.13) Unvested options outstanding as of December 31, 2019 10,000 $ 29.96 $ 1.91 $ 0.14 Vested during 2020 (10,000) $ (0.14) Unvested options outstanding as of December 31, 2020 — $ — $ — $ — ** The volatility was calculated by comparing the Company’s share price movement since emergence from bankruptcy on October 14, 2014 and its peers’ share price movement for the past five years. The amortization of these stock options was calculated using the graded method of vesting and included in general and administrative expenses. Options* Weighted Average Exercise Expiration (years) Risk free Volatility Dividend % Fair Value of Options on grant date Aggregate fair value (in millions) Expected Term and Vesting conditions Unvested options outstanding as of December 31, 2018 93,119 33.04 1.75 Vested and unexercised during 2019 (66,476) 38.92 19.10 (1.27) Forfeitures during 2019 (643) 38.92 18.20 (0.01) Unvested options outstanding as of December 31, 2019 26,000 $ 38.92 $ 18.20 $ 0.47 Vested and unexercised during 2020 (13,000) $ 38.92 $ (9.10) $ (0.24) Unvested options outstanding as of December 31, 2020 13,000 $ 38.92 $ 9.10 $ 0.23 |
Schedule Of Noncash Compensation Expenses | The stock-based compensation expense for the above stock awards and options under the 2016 Plan and 2014 Plan included in General and administrative expenses: For the Years Ended December 31, 2020 December 31, 2019 December 31, 2018 Stock awards /stock option plans $ 3,048,280 $ 4,826,324 $ 9,207,480 Total stock-based compensation expense $ 3,048,280 $ 4,826,324 $ 9,207,480 |
General Information (Details)
General Information (Details) $ / shares in Units, $ in Millions | Dec. 22, 2020USD ($)vesselshares | Dec. 31, 2020vesselsegmentt$ / shares | Sep. 15, 2020$ / shares | Dec. 31, 2019$ / shares |
Property, Plant and Equipment [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Number of reportable segments | segment | 1 | |||
Issuance of common shares for Equity Offering (in shares) | shares | 1,381,215 | |||
Proceeds from Issuance of Common Stock | $ | $ (23.5) | |||
Number of vessels | 2 | 45 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Carrying capacity (in dead weight tonnage) | t | 2,686,570 | |||
Average age of operating fleet | 8 years 9 months 18 days | |||
Reverse stock split | 0.1429 | |||
Supramax Vessels | ||||
Property, Plant and Equipment [Line Items] | ||||
Vessels owned and operated | 25 | |||
Ultramax Vessels | ||||
Property, Plant and Equipment [Line Items] | ||||
Vessels owned and operated | 20 | |||
Vessels chartered in | 3 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)t | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||
Write off of allowance for doubtful accounts | $ 800,000 | $ 900,000 | |||||
Accounts receivable, credit loss expense (reversal) | $ 700,000 | $ 1,300,000 | |||||
Length of time used in calculation of undiscounted cash flows | 15 years | 25 years | |||||
Asset impairment charges | $ 0 | $ 0 | $ 0 | ||||
Amortization period for vessels over fifteen years old | 30 months | ||||||
Age of vessels | 15 years | ||||||
Amortization period for vessels less than fifteen years old | 60 months | ||||||
Depreciation expense | $ 300,000 | 300,000 | 200,000 | ||||
Vessel useful lives | 3 years | ||||||
Accumulated deficit | $ 472,137,822 | 437,074,354 | |||||
Operating lease right-of-use assets | 7,540,871 | 20,410,037 | $ 20,410,037 | ||||
Revenue earned as demurrage | 275,133,547 | 292,377,638 | 310,094,258 | ||||
Deferred costs | 500,000 | 400,000 | |||||
Impairment of operating lease right-of-use assets | $ 400,000 | $ 400,000 | 352,368 | 0 | $ 0 | ||
Allowance for credit loss | $ 2,400,000 | 2,500,000 | |||||
Minimum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Term of contract | 30 days | ||||||
Maximum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Term of contract | 2 years | ||||||
Voyage In Progress | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Revenue earned as demurrage | $ 6,300,000 | 10,700,000 | |||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Accumulated deficit | $ 800,000 | ||||||
Accounting Standards Update 2016-02 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Operating lease right-of-use assets | 30,500,000 | ||||||
Fair value of derivatives - noncurrent | $ 1,800,000 | ||||||
Vessels | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Scrap value of vessels | t | 300 | ||||||
Vessel useful lives | 25 years | ||||||
Super Senior Revolver Facility | Line of Credit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Deferred financing fee | $ (103,643) | 200,000 | |||||
Super Senior Revolver Facility | Revolving Credit Facility | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from lines of credit | 0 | ||||||
New First Lien Facility | Line of Credit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Deferred financing fee | 0 | ||||||
Letter of Credit | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Restricted cash and cash equivalents | $ 100,000 | $ 100,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 69,927,594 | $ 53,583,898 | $ 67,209,753 | $ 56,251,044 |
Restricted cash - current | 18,846,177 | 5,471,470 | 0 | 0 |
Restricted cash - noncurrent | 75,000 | 74,917 | 10,953,885 | 74,917 |
Total cash | $ 88,848,771 | $ 59,130,285 | $ 78,163,638 | $ 56,325,961 |
Significant Accounting Polici_6
Significant Accounting Policies - Impact of Lease Standard Adoption (Details) | Dec. 22, 2020routet$ / d | Dec. 25, 2019$ / d | Dec. 09, 2018t$ / d | May 04, 2018t$ / d | Apr. 28, 2017t$ / d | Oct. 15, 2015USD ($) | Nov. 30, 2018USD ($) | Dec. 31, 2020USD ($)contractt | Dec. 31, 2019USD ($)contract | Dec. 31, 2018contract | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Dead weight tonnage of operating fleet | t | 2,686,570 | |||||||||||
Fair value below contract value of time charters acquired | $ 1,800,000 | |||||||||||
Increase to lease liability | $ 4,500,000 | |||||||||||
Increase to right-of-use asset | 4,500,000 | |||||||||||
Assets | 967,127,056 | 1,002,087,136 | ||||||||||
Lease liability | 8,301,793 | |||||||||||
Cash paid for operating leases | $ 14,000,000 | $ 14,800,000 | ||||||||||
Accounting Standards Update 2016-02 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Assets | $ 28,700,000 | |||||||||||
Lease liability | $ 30,500,000 | $ 30,500,000 | ||||||||||
Letter of Credit | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Restricted cash | $ 100,000 | |||||||||||
Operating Lease Right-Of-Use Assets And Corresponding Lease Liabilities | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Number of contracts | contract | 5 | |||||||||||
Chartered In Contracts | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Number of contracts | contract | 3 | |||||||||||
Lease liability | $ 6,974,943 | |||||||||||
2013 Built Japanese Vessel | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Dead weight tonnage of operating fleet | t | 61,400 | |||||||||||
Charters Agreement Term | 4 years | |||||||||||
Charters agreement extension option | 2 years | |||||||||||
2013 Built Japanese Vessel | First Optional Year | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 13,800 | |||||||||||
2013 Built Japanese Vessel | Second Optional Year | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 14,300 | |||||||||||
2013 Built Japanese Vessel | First Four Years | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 12,800 | |||||||||||
Ultramax Vessels | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Dead weight tonnage of operating fleet | t | 61,425 | |||||||||||
Charters Agreement Term | 3 years | |||||||||||
Charters agreement extension option | 2 years | |||||||||||
Ultramax Vessels | First Optional Year | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 13,750 | |||||||||||
Ultramax Vessels | Second Optional Year | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 14,750 | |||||||||||
Ultramax Vessels | First Three Years | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 12,700 | |||||||||||
2016 Built Ultramax Vessel | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Dead weight tonnage of operating fleet | t | 62,487 | |||||||||||
Charters Agreement Term | 2 years | |||||||||||
2016 Built Ultramax Vessel | First Two Years | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 11,600 | 14,250 | ||||||||||
2016 Built Ultramax Vessel | Third Year Option | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 15,250 | |||||||||||
2021 Built Ultramax Vessel | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Dead weight tonnage of operating fleet | t | 63,634 | |||||||||||
Charters Agreement Term | 12 months | |||||||||||
Charters agreement extension option | 3 months | |||||||||||
2021 Built Ultramax Vessel | Twelve Month Option | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Amount of Baltic Supermax Index added to hiring rate | 57.00% | |||||||||||
Vessel hire rate (usd per day) | $ / d | 5,900 | |||||||||||
Number of routes | route | 10 | |||||||||||
2021 Built Ultramax Vessel | Three Month Option | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Vessel hire rate (usd per day) | $ / d | 6,500 | |||||||||||
Office Building | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Number of contracts | contract | 2 | 2 | 2 | |||||||||
Lease liability | $ 1,326,850 | |||||||||||
Office Building | Lease Agreement for Office Space in Stamford | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Average annual rent expense | $ 400,000 | |||||||||||
Office Building | Singapore Lease Arrangement | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Average annual rent expense | $ 300,000 | |||||||||||
Minimum | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Incremental borrowing rate | 2.81% | |||||||||||
Maximum | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Incremental borrowing rate | 6.08% |
Significant Accounting Polici_7
Significant Accounting Policies - Operating Lease Assets and Liabilities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 25, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease right-of-use assets | $ 7,540,871 | $ 20,410,037 | $ 20,410,037 | |||||
Current portion of operating lease liabilities | 7,615,371 | 13,255,978 | 13,255,978 | |||||
Noncurrent portion of operating lease liabilities | $ 686,422 | 8,301,793 | 8,301,793 | |||||
Discount rate upon adoption | 5.48% | 2.806% | ||||||
Increase to right-of-use asset | $ 4,500,000 | |||||||
Increase to lease liability | 4,500,000 | |||||||
Impairment of operating lease right-of-use assets | $ 400,000 | $ 400,000 | $ 352,368 | $ 0 | $ 0 | |||
Weighted average remaining lease term | 10 months 12 days | |||||||
Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Discount rate upon adoption | 2.81% | |||||||
Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Discount rate upon adoption | 6.08% | |||||||
Weighted Average | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Discount rate upon adoption | 5.22% | |||||||
Accounting Standards Update 2016-02 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease right-of-use assets | $ 30,500,000 | |||||||
Fair value of derivatives - noncurrent | $ 1,800,000 | |||||||
Chartered In Contracts | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease right-of-use assets | $ 6,207,253 | 18,442,965 | ||||||
Current portion of operating lease liabilities | 6,974,943 | 12,622,524 | ||||||
Noncurrent portion of operating lease liabilities | $ 0 | 6,974,943 | ||||||
Discount rate upon adoption | 5.37% | |||||||
Office Building | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease right-of-use assets | $ 1,333,618 | 1,967,072 | ||||||
Current portion of operating lease liabilities | 640,428 | 633,454 | ||||||
Noncurrent portion of operating lease liabilities | $ 686,422 | $ 1,326,850 | ||||||
Discount rate upon adoption | 5.80% |
Significant Accounting Polici_8
Significant Accounting Policies - Lease Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Sub lease income from chartered-in contracts greater than 12 months * | $ 8,589,156 | $ 10,259,768 |
Charter hire expenses | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease expense for chartered-in contracts less than 12 months | 8,731,978 | 28,805,970 |
Operating lease, expense | 12,548,246 | 13,362,672 |
Lease cost | 21,280,224 | 42,168,642 |
General and administrative expenses | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, expense | $ 733,874 | $ 719,698 |
Significant Accounting Polici_9
Significant Accounting Policies - Future Minimum Lease Payments (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 25, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||||
Discount rate upon adoption | 5.48% | 2.806% | ||
2021 | $ 7,683,067 | |||
2022 | 483,048 | |||
2023 | 244,878 | |||
Operating lease payments | 8,410,993 | |||
Present value of lease liability | 8,301,793 | |||
Lease liabilities - short term | 7,615,371 | $ 13,255,978 | $ 13,255,978 | |
Lease liabilities - long term | 686,422 | $ 8,301,793 | 8,301,793 | |
Discount based on incremental borrowing rate | $ 109,200 | |||
Chartered In Contracts | ||||
Lessee, Lease, Description [Line Items] | ||||
Discount rate upon adoption | 5.37% | |||
2021 | $ 6,982,810 | |||
2022 | ||||
2023 | ||||
Operating lease payments | 6,982,810 | |||
Present value of lease liability | 6,974,943 | |||
Lease liabilities - short term | 6,974,943 | 12,622,524 | ||
Lease liabilities - long term | 0 | 6,974,943 | ||
Discount based on incremental borrowing rate | $ 7,867 | |||
Office Building | ||||
Lessee, Lease, Description [Line Items] | ||||
Discount rate upon adoption | 5.80% | |||
2021 | $ 700,257 | |||
2022 | 483,048 | |||
2023 | 244,878 | |||
Operating lease payments | 1,428,183 | |||
Present value of lease liability | 1,326,850 | |||
Lease liabilities - short term | 640,428 | 633,454 | ||
Lease liabilities - long term | 686,422 | $ 1,326,850 | ||
Discount based on incremental borrowing rate | $ 101,333 |
Significant Accounting Polic_10
Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenues, net | $ 275,133,547 | $ 292,377,638 | $ 310,094,258 |
Time charters | |||
Disaggregation of Revenue [Line Items] | |||
Revenues, net | 105,028,131 | 128,142,708 | 140,006,570 |
Voyage charters | |||
Disaggregation of Revenue [Line Items] | |||
Revenues, net | $ 170,105,416 | $ 164,234,930 | $ 170,087,688 |
Vessels and vessel improvemen_3
Vessels and vessel improvements - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020USD ($)vessel | Jun. 30, 2020vessel | Dec. 31, 2020USD ($)vessel | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)scrubber | Dec. 22, 2020vessel | Sep. 30, 2018USD ($)vessel | |
Property, Plant and Equipment [Line Items] | |||||||
Number of vessels | vessel | 45 | 2 | |||||
Advance paid for vessel purchase | $ 3,250,000 | $ 0 | $ 2,040,000 | ||||
Proceeds from sale of vessels | 23,224,650 | 29,560,746 | 20,545,202 | ||||
Gain on sale of vessel | $ (489,772) | 5,978,566 | 335,160 | ||||
High-Specification Scrubber-Fitted Ultramax Bulkcarriers | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of vessels purchased | vessel | 3 | ||||||
Vessel purchase price | $ 50,200,000 | ||||||
Advance paid for vessel purchase | $ 3,300,000 | ||||||
Advance purchase, number of vessels | vessel | 2 | ||||||
Vessels Goldeneye, Hawk I, Osprey I, Shrike And Skua | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of vessels sold | vessel | 5 | ||||||
Proceeds from sale of vessels | $ 23,200,000 | ||||||
Gain on sale of vessel | $ 500,000 | ||||||
Scrubber Systems | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of vessels | vessel | 37 | ||||||
Advance paid for vessel purchase | $ 88,900,000 | ||||||
Projected project costs | $ 2,400,000 | ||||||
Ballast Water Treatment System | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of vessels | vessel | 18 | 15 | 39 | ||||
Advance paid for vessel purchase | $ 7,100,000 | ||||||
Projected project costs | $ 500,000 | ||||||
Scrubbers and BWTS | 2,300,000 | ||||||
Number of vessels installations cancelled | vessel | 3 | ||||||
Vessels and Vessel Improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Advance paid for vessel purchase | 0 | 2,040,000 | |||||
Scrubbers and BWTS | $ 39,706,507 | $ 56,267,925 | |||||
Maximum | Scrubber Systems | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of scrubbers | scrubber | 37 |
Vessels and vessel improvemen_4
Vessels and vessel improvements - Schedule of Vessels and vessel improvements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Property, Plant and Equipment [Roll Forward] | |||
Vessel and vessel improvements at the beginning of the year | $ 835,959,084 | ||
Advance paid for vessel purchase | 3,250,000 | $ 0 | $ 2,040,000 |
Depreciation expense | (300,000) | (300,000) | (200,000) |
Vessels and vessel improvements at the end of the year | 810,713,959 | 835,959,084 | |
Vessels and Vessel Improvements | |||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Vessel and vessel improvements at the beginning of the year | 835,959,084 | 682,944,936 | |
Advance paid for vessel purchase | 0 | 2,040,000 | |
Purchase of vessels and vessel improvements | 979,612 | 143,477,720 | |
Sale of vessels | (23,458,118) | (14,757,027) | |
Scrubbers and BWTS | 39,706,507 | 56,267,925 | |
Depreciation expense | (42,473,126) | (34,014,470) | |
Vessels and vessel improvements at the end of the year | $ 810,713,959 | $ 835,959,084 | $ 682,944,936 |
Deferred Drydock Costs (Details
Deferred Drydock Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in Deferred Drydock Costs [Roll Forward] | |||
Beginning Balance | $ 17,495,270 | $ 12,186,356 | |
Payment for drydocking | 14,293,562 | 11,903,474 | $ 8,323,191 |
Drydock amortization | (7,378,752) | (6,227,851) | (5,353,102) |
Write-off due to sale of vessels | (256,304) | (366,709) | |
Ending Balance | $ 24,153,776 | $ 17,495,270 | $ 12,186,356 |
Other accrued liabilities (Deta
Other accrued liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Accrued Liabilities [Line Items] | ||
Other accrued liabilities | $ 11,747,064 | $ 28,996,836 |
Vessel and voyage expenses | ||
Other Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 4,625,539 | 6,651,395 |
Scrubber, BWTS and drydocking costs | ||
Other Accrued Liabilities [Line Items] | ||
Other accrued liabilities | 1,178,695 | 16,226,398 |
General and administrative expenses | ||
Other Accrued Liabilities [Line Items] | ||
Other accrued liabilities | $ 5,942,830 | $ 6,119,043 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 475,549,594 | |
Less: current portion | (39,244,297) | $ (35,709,394) |
Total long-term debt | 412,931,021 | 410,067,224 |
Convertible Debt Securities | ||
Debt Instrument [Line Items] | ||
Long-term debt | 114,120,000 | |
Norwegian Bond Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 180,000,000 | |
Total long-term debt | 169,290,230 | 175,867,310 |
Long-term debt | 180,000,000 | 188,000,000 |
New Ultraco Debt Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 166,429,594 | |
Total long-term debt | 132,083,949 | 141,396,770 |
Long-term debt | 166,429,594 | 172,613,988 |
Convertible Debt | Convertible Debt Securities | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 114,120,000 | |
Debt issuance costs | (17,459,515) | (21,316,856) |
Long-term debt, net | 96,660,485 | 92,803,144 |
Bond Debt | Convertible Debt Securities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (21,316,856) | |
Bond Debt | Norwegian Bond Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 180,000,000 | 188,000,000 |
Debt issuance costs | (2,709,770) | (4,132,690) |
Less: current portion | (8,000,000) | (8,000,000) |
Long-term debt, net | 169,290,230 | 175,867,310 |
Term Loan | New Ultraco Debt Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 166,429,594 | |
Debt issuance costs | (3,101,348) | (3,507,824) |
Less: current portion | (31,244,297) | (27,709,394) |
Long-term debt, net | 132,083,949 | 141,396,770 |
Term Loan | Original Ultraco Debt Facility | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (3,507,824) | |
Line of Credit | New First Lien Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 15,000,000 | 0 |
Debt issuance costs | 0 | |
Long-term debt, net | $ 14,896,357 | $ 0 |
Debt - Convertible Bond Debt (D
Debt - Convertible Bond Debt (Details) | Jul. 29, 2019USD ($)vessel$ / sharesshares |
Debt Instrument [Line Items] | |
Number of vessels acquired | vessel | 6 |
Convertible Notes Payable | Convertible Debt | |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 114,100,000 |
Stated interest rate | 5.00% |
Debt issuance costs | $ 1,600,000 |
Conversion premium | shares | 25.453 |
Conversion price (in dollars per share) | $ / shares | $ 39.29 |
Convertible Notes Payable | Convertible Debt | Debt Instrument, Redemption, Period Two | |
Debt Instrument [Line Items] | |
Redemption price percentage | 100.00% |
Convertible Notes Payable | Convertible Debt | Other Liabilities | |
Debt Instrument [Line Items] | |
Debt issuance costs | $ 1,000,000 |
Convertible Debt Securities | |
Debt Instrument [Line Items] | |
Net proceeds | 112,500,000 |
Conversion premium per principal amount of notes | $ 1,000 |
Credit Default Option | Unsecured Debt | |
Debt Instrument [Line Items] | |
Amount of principal amount eligible for declaration in case of default | 25.00% |
Amount of notes to be due and payable | 100.00% |
Debt - Share Lending Agreement
Debt - Share Lending Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Oct. 15, 2019 | |
Debt Instrument [Line Items] | |||
Common stock, outstanding (in shares) | 11,661,797 | 10,214,600 | |
Affiliated Entity | Jeffries Capital Services LLC | |||
Debt Instrument [Line Items] | |||
Commons stock available to affiliate (in shares) | 511,840 | ||
Common stock, outstanding (in shares) | 500,000 | ||
Outstanding loaned shares | $ 9,700 | ||
Nominal fee per borrowed share | $ 30 | ||
Shares subject to become issued and outstanding in case of restructuring proceedings | 500,000 |
Debt - New Ultraco Debt Facilit
Debt - New Ultraco Debt Facility (Details) | Jun. 09, 2020USD ($) | Jan. 25, 2020USD ($)vessel | Jan. 25, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 04, 2019USD ($) |
Debt Instrument [Line Items] | |||||||
Financing costs paid to lenders | $ (381,471) | $ (3,533,770) | $ 0 | ||||
Other financing costs | 200,000 | $ 141,634 | 1,655,353 | 2,465,037 | |||
New Ultraco Debt Facility | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from long term debt | $ 22,550,000 | $ 187,760,000 | $ 0 | ||||
New Ultraco Debt Facility | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Availability under revolver facility | $ 55,000,000 | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 208,400,000 | $ 34,300,000 | |||||
Maximum increase amount | 60,000,000 | ||||||
Debt issuance costs | $ 3,100,000 | $ 400,000 | |||||
Maximum cumulative payable | $ 4,600,000 | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | Ultraco Lenders | |||||||
Debt Instrument [Line Items] | |||||||
Vessels secured by first priority mortgage | vessel | 26 | ||||||
Minimum liquidity threshold | $ 600,000 | ||||||
Percentage of consolidated total debt, minimum threshold | 750.00% | ||||||
Minimum ratio of consolidated tangible assets to consolidated total assets covenant | 0.30 | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | Ultraco Lenders | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated interest coverage ratio | 1.50 | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | Ultraco Lenders | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated interest coverage ratio | 2.50 | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | Ultraco Lenders | Effective Date, First Year | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 5,100,000 | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | Ultraco Lenders | Effective Date, Second Year To Maturity | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 7,800,000 | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.50% | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 153,400,000 | ||||||
New Ultraco Debt Facility | Line of Credit | Eagle Bulk Ultraco LLC | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity on line of credit facility | $ 55,000,000 |
Debt - Norwegian Bond Debt (Det
Debt - Norwegian Bond Debt (Details) | Jun. 09, 2020USD ($) | Nov. 28, 2017USD ($)vessel | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($)vessel | Dec. 31, 2020USD ($)vessel | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 29, 2019vessel |
Debt Instrument [Line Items] | ||||||||
Other financing costs | $ 381,471 | $ 3,533,770 | $ 0 | |||||
Proceeds from sale of vessels | $ 23,224,650 | $ 29,560,746 | $ 20,545,202 | |||||
Number of vessels acquired | vessel | 6 | |||||||
Vessels Kestrel, Thrasher, Condor, Merlin and Thrasher | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of vessels sold | vessel | 5 | 5 | ||||||
Proceeds from sale of vessels | $ 40,400,000 | |||||||
Ultramax Vessels | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of vessels acquired | vessel | 1 | 1 | ||||||
Payments to acquire vessels | $ 20,100,000 | |||||||
Scrubber Systems | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments to acquire vessels | $ 23,600,000 | |||||||
Scrubber Systems | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Deposit paid on purchase of vessel | $ 1,600,000 | |||||||
Vessels Goldeneye, Hawk I, Osprey I, Shrike And Skua | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of vessels sold | vessel | 5 | 5 | ||||||
Proceeds from sale of vessels | $ 23,200,000 | |||||||
Eagle Bulk Shipco LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Other financing costs | $ 1,300,000 | |||||||
Norwegian Bond Debt | Bond Debt | Eagle Bulk Shipco LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 200,000,000 | |||||||
Stated interest rate | 8.25% | |||||||
Original issue discount rate | 1.00% | |||||||
Debt issuance costs, gross | $ 3,100,000 | |||||||
Proceeds from issuance of debt | $ 195,000,000 | |||||||
Number of vessels securing debt issuance | vessel | 19 | |||||||
Leverage ratio | 75.00% | |||||||
Minimum liquidity threshold | $ 12,500,000 | $ 12,500,000 | ||||||
Norwegian Bond Debt | Bond Debt | Eagle Bulk Shipco LLC | Debt Instrument, Redemption, Period Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price percentage | 101.00% |
Debt - New First Lien Facility
Debt - New First Lien Facility (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 08, 2017 | |
Debt Instrument [Line Items] | ||||
Loss on debt extinguishment | $ 0 | $ 2,268,452 | $ 0 | |
Term Loan | New First Lien Facility | Line of Credit | Eagle Bulk Shipco LLC | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity on line of credit facility | $ 60,000,000 | |||
Revolving Credit Facility | New First Lien Facility | Line of Credit | Eagle Bulk Shipco LLC | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity on line of credit facility | $ 5,000,000 | |||
Loss on debt extinguishment | $ 1,100,000 |
Debt - Super Senior Facility (D
Debt - Super Senior Facility (Details) - USD ($) | Jun. 09, 2020 | Dec. 08, 2017 | Nov. 28, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||
Other financing costs | $ 381,471 | $ 3,533,770 | $ 0 | |||
Super Senior Revolver Facility | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 40.00% | |||||
Eagle Bulk Shipco LLC | ||||||
Debt Instrument [Line Items] | ||||||
Other financing costs | $ 1,300,000 | |||||
Eagle Bulk Shipco LLC | Line of Credit | Super Senior Revolver Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | $ 15,000,000 | |||||
Other financing costs | $ 300,000 | |||||
Commitment fee percentage | 40.00% | |||||
Leverage ratio | 75.00% | |||||
Minimum liquidity threshold | $ 12,500,000 | |||||
Minimum market value to total commitments percentage | 300.00% | |||||
Minimum amount of bonds outstanding | $ 100,000,000 | |||||
Eagle Bulk Shipco LLC | Line of Credit | Super Senior Revolver Facility | Revolving Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% |
Debt - Original Ultraco Debt Fa
Debt - Original Ultraco Debt Facility (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Original Ultraco Debt Facility | Ultraco Lenders | Eagle Bulk Ultraco LLC | |
Debt Instrument [Line Items] | |
Outstanding balance of debt issuance costs as loss on debt extinguishment | $ 1.2 |
Debt - Interest Rates (Details)
Debt - Interest Rates (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New First Lien Facility | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 40.00% | ||
New First Lien Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 5.89% | 4.91% | |
New First Lien Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 6.01% | 5.89% | |
New First Lien Facility | Weighted Average | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 6.45% | 6.12% | |
Commitment fee percentage | 40.00% | ||
Original Ultraco Debt Facility | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 5.28% | ||
Commitment fee percentage | 40.00% | ||
Original Ultraco Debt Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 4.64% | ||
Original Ultraco Debt Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 5.76% | ||
Original Ultraco Debt Facility | Weighted Average | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 6.80% | 5.58% | |
Convertible Bond Debt | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 5.00% | ||
Convertible Bond Debt | Weighted Average | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 10.14% | ||
Norwegian Bond Debt | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 8.25% | 8.25% | |
Norwegian Bond Debt | Bond Debt | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 8.25% | ||
Norwegian Bond Debt | Weighted Average | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 8.75% | 8.91% | |
Norwegian Bond Debt | Weighted Average | Bond Debt | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 9.04% | ||
New Ultraco Debt Facility | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 40.00% | 40.00% | |
New Ultraco Debt Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 2.73% | 4.51% | |
New Ultraco Debt Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 4.68% | 5.26% | |
New Ultraco Debt Facility | Weighted Average | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 4.54% | ||
New Ultraco Debt Facility | Weighted Average | Bond Debt | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 3.98% | ||
Convertible Debt Securities | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 5.00% | ||
Convertible Debt Securities | Weighted Average | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 10.14% | ||
Super Senior Revolver Facility | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 40.00% | ||
Super Senior Revolver Facility | Bond Debt | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 3.00% | ||
Super Senior Revolver Facility | Minimum | Bond Debt | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 2.89% | ||
Super Senior Revolver Facility | Maximum | Bond Debt | |||
Debt Instrument [Line Items] | |||
Interest rate during period | 2.24% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Amortization of debt discount and debt issuance costs | $ 6,272,309 | $ 3,783,939 | $ 1,913,651 |
Total Interest expense | 35,392,623 | 30,577,489 | 25,743,531 |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest | 5,737,650 | 2,377,550 | 0 |
Original Ultraco Debt Facility | |||
Debt Instrument [Line Items] | |||
Debt, interest expense | 0 | 362,257 | 3,774,309 |
Norwegian Bond Debt | |||
Debt Instrument [Line Items] | |||
Debt, interest expense | 15,298,250 | 15,930,750 | 16,424,449 |
New Ultraco Debt Facility | |||
Debt Instrument [Line Items] | |||
Debt, interest expense | 7,612,342 | 7,172,442 | 0 |
New First Lien Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest | 0 | 293,545 | 3,509,790 |
Super Senior Revolver Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, interest | 215,804 | 0 | 0 |
Super Senior Revolver Facility | |||
Debt Instrument [Line Items] | |||
Commitment fees on revolver facilities | $ 256,268 | $ 657,006 | $ 121,332 |
Debt - Scheduled Debt Maturitie
Debt - Scheduled Debt Maturities (Details) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
2021 | $ 39,244,297 |
2022 | 218,244,297 |
2023 | 31,244,297 |
2024 | 186,816,703 |
Long-term debt, gross | 475,549,594 |
Norwegian Bond Debt | |
Debt Instrument [Line Items] | |
2021 | 8,000,000 |
2022 | 172,000,000 |
2023 | 0 |
2024 | 0 |
Long-term debt, gross | 180,000,000 |
Super Senior Revolver Facility | |
Debt Instrument [Line Items] | |
2021 | 0 |
2022 | 15,000,000 |
2023 | 0 |
2024 | 0 |
Long-term debt, gross | 15,000,000 |
New Ultraco Debt Facility | |
Debt Instrument [Line Items] | |
2021 | 31,244,297 |
2022 | 31,244,297 |
2023 | 31,244,297 |
2024 | 72,696,703 |
Long-term debt, gross | 166,429,594 |
Convertible Bond Debt | |
Debt Instrument [Line Items] | |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 114,120,000 |
Long-term debt, gross | $ 114,120,000 |
Derivative Instruments and Fa_3
Derivative Instruments and Fair Value Measurements - Interest Rate Swap Agreements (Details) - Interest Rate Swap - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount outstanding | $ 166,429,594 | $ 0 |
March 31, 2020 | New Ultraco Debt Facility | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest Rate Swap detail | 64.00% | |
Notional Amount outstanding | $ 72,452,297 | 0 |
April 15, 2020 | New Ultraco Debt Facility | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest Rate Swap detail | 58.00% | |
Notional Amount outstanding | $ 36,226,149 | 0 |
June 25, 2020 | New Ultraco Debt Facility | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest Rate Swap detail | 50.00% | |
Notional Amount outstanding | $ 57,751,148 | $ 0 |
Derivative Instruments and Fa_4
Derivative Instruments and Fair Value Measurements - Effect of Derivative Instruments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Swap | Interest expense | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate swaps | $ 110,945 | $ 0 |
Derivative Instruments and Fa_5
Derivative Instruments and Fair Value Measurements - Interest Swap Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives - current | $ 756,229 | |
Fair Value Of Derivative, Current | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives - current | $ 481,791 | 0 |
Fair Value Of Derivative, Noncurrent | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of derivatives - noncurrent | $ 650,607 | $ 0 |
Derivative Instruments and Fa_6
Derivative Instruments and Fair Value Measurements - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)t$ / T | Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Loss expected to be reclassified into earnings | $ | $ 0.6 | |
Low Sulfur Fuel Cost Spread | Expiring In 2020 | ||
Property, Plant and Equipment [Line Items] | ||
Derivative notional mass (metric tons) | t | 10,350 | |
Low Sulfur Fuel Cost Spread | Minimum | Expiring In 2020 | ||
Property, Plant and Equipment [Line Items] | ||
Derivative contract price (usd per metric ton) | $ / T | 186 | |
Low Sulfur Fuel Cost Spread | Maximum | Expiring In 2020 | ||
Property, Plant and Equipment [Line Items] | ||
Derivative contract price (usd per metric ton) | $ / T | 524 | |
FFAs - Unrealized gain | Other current assets | ||
Property, Plant and Equipment [Line Items] | ||
Cash collateral related to derivative instruments under its collateral security arrangements | $ | $ 0.1 | $ 0.6 |
Derivative Instruments and Fa_7
Derivative Instruments and Fair Value Measurements - Effect of Non-designated Derivative Instruments (Details) - Derivatives not designated as hedging instruments - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amount of (gain)/loss | $ (4,826,774) | $ 149,632 |
Bunker swaps - unrealized gain | Other current assets | Level 2 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability | 0 | 756,229 |
FFAs - Unrealized gain | Other current assets | Level 2 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative asset | 0 | 475,650 |
Bunker Swaps - Unrealized gain | Fair Value of Derivatives | Level 2 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative liability | 352,399 | 96,043 |
Realized and unrealized loss/(gain) on derivative instruments, net | FFAs - realized loss/(gain) | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amount of (gain)/loss | 3,822,049 | (402,129) |
Realized and unrealized loss/(gain) on derivative instruments, net | Bunker swaps - realized (gain)/loss | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amount of (gain)/loss | (8,347,947) | 528,361 |
Other Income | FFAs - unrealized loss | Level 2 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amount of (gain)/loss | 711,708 | 292,527 |
Other Income | Bunker swaps - unrealized gain | Level 2 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amount of (gain)/loss | $ (1,012,584) | $ (269,127) |
Derivative Instruments and Fa_8
Derivative Instruments and Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 88,848,771 | $ 59,130,285 |
Restricted cash | 18,900,000 | 5,500,000 |
Norwegian Bond Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 180,000,000 | 188,000,000 |
New Ultraco Debt Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 166,429,594 | 172,613,988 |
Super Senior Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 15,000,000 | |
Convertible Bond Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 114,120,000 | |
Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 88,848,771 | 59,130,285 |
Recurring | Level 1 | Norwegian Bond Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Recurring | Level 1 | New Ultraco Debt Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Recurring | Level 1 | Super Senior Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | |
Recurring | Level 1 | Convertible Bond Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Level 2 | Norwegian Bond Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 173,250,000 | 192,626,680 |
Recurring | Level 2 | New Ultraco Debt Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 166,429,594 | 172,613,988 |
Recurring | Level 2 | Super Senior Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 15,000,000 | |
Recurring | Level 2 | Convertible Bond Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 92,748,748 | $ 118,844,868 |
Income_(Loss) per Common Shar_2
Income/(Loss) per Common Share - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Warrants outstanding (in shares) | 3,040,540 | 3,040,540 | |
Number of securities called by warrants (in shares) | 21,718 | 21,718 | 21,718 |
Minimum price per share to exercise for first half of warrants (in dollars per share) | $ 3,894.80 | $ 3,894.80 | |
Term of warrants | 7 years | ||
Stock Compensation Plan | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 218,013 | 222,786 | 98 |
Employee Stock Option | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 325,591 | 326,399 | 49,803 |
Income_(Loss) per Common Shar_3
Income/(Loss) per Common Share - Basic and Diluted (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings Per Share [Abstract] | ||||
Net (loss)/income | $ (35,063,468) | $ (21,697,115) | $ 12,574,684 | |
Weighted Average Shares-Basic (in shares) | [1] | 10,310,246 | 10,195,088 | 10,095,030 |
Dilutive effect of stock options, warrants and restricted stock units (in shares) | 0 | 0 | 162,423 | |
Weighted Average Shares - Diluted (in shares) | [1] | 10,310,246 | 10,195,088 | 10,257,453 |
Basic net (loss)/income per share (in dollars per share) | [1] | $ (3.40) | $ (2.13) | $ 1.25 |
Diluted net (loss)/income per share (in dollars per share) | [1] | $ (3.40) | $ (2.13) | $ 1.23 |
[1] | * Adjusted to give effect for the 1-for-7 Reverse Stock Split that became effective as of September 15, 2020, see Note 1. |
Stock Incentive Plans - 2014 Ma
Stock Incentive Plans - 2014 Management Incentive Plan Narrative (Details) - $ / shares | Nov. 07, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 15, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual installment amount | 100.00% | ||||
Chief Financial Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, options (in shares) | 40,000 | ||||
Restricted Stock | Chief Financial Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted common stock granted (in shares) | 33,409 | ||||
Management Incentive Plan 2014 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percent of common stock for distribution | 2.00% | ||||
Management Incentive Plan 2014 | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested (in shares) | 7,232 | ||||
Shares outstanding (in shares) | 0 | ||||
Management Incentive Plan 2014 | Restricted Stock | Chief Financial Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested (in shares) | 18,022 | ||||
Shares outstanding (in shares) | 0 | 33,409 | 33,409 | ||
Weighted average grant date fair value (in dollars per share) | $ 0 | $ 29.68 | $ 29.68 | ||
Restricted common stock granted (in shares) | 33,409 | ||||
Management Incentive Plan 2014 | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested and unexercised (in dollars per share) | $ 29.96 | ||||
Management Incentive Plan 2014 | Employee Stock Option | Chief Financial Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options vested but not exercised (in shares) | 40,000 | ||||
Granted, options (in shares) | 40,000 | ||||
Management Incentive Plan 2014 | With Different Striking Prices | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percent of common stock for distribution | 5.50% |
Stock Incentive Plans - 2014 _2
Stock Incentive Plans - 2014 Management Incentive Plan Restricted Stock Units Award Activity (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 07, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Aggregate fair value (in millions) | |||
Annual installment amount | 100.00% | ||
Restricted Stock | Chief Financial Officer | |||
Restricted shares | |||
Restricted common stock granted (in shares) | 33,409 | ||
Restricted Stock | Management Incentive Plan 2014 | |||
Restricted shares | |||
Beginning balance (in shares) | 0 | ||
Vested (in shares) | (7,232) | ||
Ending balance (in shares) | 0 | ||
Restricted Stock | Management Incentive Plan 2014 | Chief Financial Officer | |||
Restricted shares | |||
Restricted common stock granted (in shares) | 33,409 | ||
Beginning balance (in shares) | 33,409 | 33,409 | |
Vested (in shares) | (18,022) | ||
Forfeitures and cancellations (in shares) | (15,387) | ||
Ending balance (in shares) | 0 | 33,409 | |
Fair value on grant date | |||
Granted, price on grant date (in dollars per share) | $ 29.68 | ||
Beginning balance (in dollars per share) | $ 29.68 | $ 29.68 | |
Ending balance (in dollars per share) | $ 0 | $ 29.68 | |
Aggregate fair value (in millions) | |||
Granted, aggregate fair value | $ 1 | ||
Beginning balance, aggregate fair value | $ 1 | $ 1 | |
Ending balance, aggregate fair value | $ 0 | $ 1 |
Stock Incentive Plans - 2014 _3
Stock Incentive Plans - 2014 Management Incentive Plan Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 07, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Aggregate fair value (in millions) | |||||
Vesting year | 100.00% | ||||
Chief Financial Officer | |||||
Options | |||||
Granted, options (in shares) | 40,000 | ||||
Employee Stock Option | Management Incentive Plan 2014 | Chief Financial Officer | |||||
Options | |||||
Granted, options (in shares) | 40,000 | ||||
Vested, options (in shares) | (10,000) | (10,000) | (10,000) | (10,000) | |
Balance outstanding beginning of period, options (in shares) | 10,000 | 20,000 | 30,000 | ||
Balance outstanding end of period, options (in shares) | 0 | 10,000 | 20,000 | 30,000 | |
Weighted Average Exercise Price | |||||
Granted, exercise price (in dollars per share) | $ 29.96 | $ 0 | $ 29.96 | $ 29.96 | $ 29.96 |
Vested, exercise price (in dollars per share) | |||||
Expiration(years) | 5 years | ||||
Risk free interest rate | 1.10% | ||||
Volatility | 61.00% | ||||
Dividend % | 0.00% | ||||
Fair Value of Options on grant date | |||||
Granted, fair value of options on grant date (in dollars per share) | $ 1.91 | $ 0 | 1.91 | $ 1.91 | $ 1.91 |
Vested, fair value of options on grant date (in dollars per share) | $ 1.91 | ||||
Aggregate fair value (in millions) | |||||
Granted, aggregate fair value | $ 530 | ||||
Vested, aggregate fair value | $ (140) | $ (130) | $ (130) | $ (130) | |
Balance outstanding beginning of period, aggregate fair value | 140 | 270 | 400 | ||
Balance outstanding end of period, aggregate fair value | $ 0 | $ 140 | $ 270 | $ 400 | |
Expected term | 3 years 9 months | ||||
Employee Stock Option | Management Incentive Plan 2014 | Chief Financial Officer | Vesting Year 1 | |||||
Aggregate fair value (in millions) | |||||
Vesting year | 25.00% | ||||
Term | 4 years | ||||
Employee Stock Option | Management Incentive Plan 2014 | Chief Financial Officer | Vesting Year 2 | |||||
Aggregate fair value (in millions) | |||||
Vesting year | 25.00% | ||||
Employee Stock Option | Management Incentive Plan 2014 | Chief Financial Officer | Vesting Year 3 | |||||
Aggregate fair value (in millions) | |||||
Vesting year | 25.00% | ||||
Employee Stock Option | Management Incentive Plan 2014 | Chief Financial Officer | Vesting Year 4 | |||||
Aggregate fair value (in millions) | |||||
Vesting year | 25.00% |
Stock Incentive Plans - 2016 Eq
Stock Incentive Plans - 2016 Equity Compensation Plan Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 07, 2019 | Dec. 15, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Scenario, Forecast | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Expense | $ 0 | $ 0.3 | $ 1 | |||
2016 Equity Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized (in shares) | 1,121,229 | 764,087 | ||||
Shares that can be granted per employee (in shares) | 428,571 | |||||
Maximum number of options and stock appreciation rights that can be granted per employee in one year (in shares) | 428,571 | |||||
Maximum shares to be granted to non employee director in one year (in shares) | 71,428 | |||||
Additional shares authorized (in shares) | 357,142 | |||||
2016 Equity Compensation Plan | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cumulative options vested or expected to vest (in shares) | 272,591 | |||||
Options vested or expected to vest (in shares) | 13,000 | |||||
2016 Equity Compensation Plan | Employee Stock Option | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise Price (in dollars per share) | $ 29.96 | |||||
2016 Equity Compensation Plan | Employee Stock Option | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise Price (in dollars per share) | $ 38.92 |
Stock Incentive Plans - 2016 _2
Stock Incentive Plans - 2016 Equity Compensation Plan Restricted Stock Units Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 07, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Aggregate fair value (in millions) | |||
Annual installment amount | 100.00% | ||
Restricted Stock | 2016 Equity Compensation Plan | |||
Restricted shares | |||
Beginning balance (in shares) | 222,786 | 173,209 | |
Issued (in shares) | 107,930 | 118,484 | |
Vested (in shares) | (65,981) | (41,859) | |
Forfeitures and cancellations (in shares) | (46,722) | (27,048) | |
Ending balance (in shares) | 218,013 | 222,786 | |
Weighted Average Fair value on grant date | |||
Beginning balance (in dollars per share) | $ 32.63 | $ 33.60 | |
Issued, price on grant date (in dollars per share) | 22.12 | 32.27 | |
Vested during period (in dollars per share) | 32.63 | 34.44 | |
Forfeitures and cancellations (in dollars per share) | 32.63 | 34,370,000 | |
Ending balance (in dollars per share) | $ 27.48 | $ 32.63 | |
Aggregate fair value (in millions) | |||
Beginning balance, aggregate fair value | $ 7,270 | $ 5,820 | |
Issued, aggregate fair value | 2,390 | 3,820 | |
Vested, aggregate fair value | (2,150) | (1,440) | |
Forfeitures and cancellations, aggregate fair value | (1,520) | (930) | |
Ending balance, aggregate fair value | $ 5,990 | $ 7,270 | |
Term | 3 years | ||
Restricted Stock | 2016 Equity Compensation Plan | Vesting Year 1 | |||
Aggregate fair value (in millions) | |||
Annual installment amount | 33.00% | ||
Restricted Stock | 2016 Equity Compensation Plan | Vesting Year 2 | |||
Aggregate fair value (in millions) | |||
Annual installment amount | 33.00% | ||
Restricted Stock | 2016 Equity Compensation Plan | Vesting Year 3 | |||
Aggregate fair value (in millions) | |||
Annual installment amount | 33.00% |
Stock Incentive Plans - 2016 _3
Stock Incentive Plans - 2016 Equity Compensation Plan Stock Options Activity (Details) - Employee Stock Option - 2016 Equity Compensation Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Options | ||
Balance outstanding beginning of period, options (in shares) | 26,000 | 93,119 |
Options vested but not exercised (in shares) | (13,000) | (66,476) |
Forfeited, options (in shares) | (643) | |
Balance outstanding end of period, options (in shares) | 13,000 | 26,000 |
Weighted Average Exercise Price | ||
Beginning balance, Weighted-average exercise price (in dollars per share) | $ 38.92 | $ 33.04 |
Vested and unexercised (in dollars per share) | 38.92 | 38.92 |
Ending balance, Weighted-average exercise price (in dollars per share) | 38.92 | 38.92 |
Fair Value of Options on grant date | ||
Beginning balance, Fair Value of Options on Grant Date (in dollars per share) | 18.20 | |
Vested and unexercised, fair value (in dollars per share) | (9.10) | 19.10 |
Forfeitures, fair value of options on grant date (in dollars per share) | $ 9.10 | 18.20 |
Ending balance, Fair Value of Options on Grant Date (in dollars per share) | $ 18.20 | |
Aggregate fair value (in millions) | ||
Balance outstanding beginning of period, aggregate fair value | $ 470 | $ 1,750 |
Vested and unexercised, aggregate fair value | (240) | (1,270) |
Forfeited, aggregate fair value | $ 230 | (10) |
Balance outstanding end of period, aggregate fair value | $ 470 | |
Forfeitures exercise price (in dollars per share) | $ 38.92 |
Stock Incentive Plans - Non-cas
Stock Incentive Plans - Non-cash Compensation Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3,048,280 | $ 4,826,324 | $ 9,207,480 |
2016 and 2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 3,048,280 | $ 4,826,324 | $ 9,207,480 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | Jan. 01, 2019 | Oct. 31, 2010 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Employer matching contribution percent | 100.00% | ||||
Employer matching contribution percent of employees gross pay | 600.00% | 3.00% | |||
Profit sharing contribution | $ 0 | $ 0 | $ 0 | ||
General and administrative expenses | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Matching contribution incurred | $ 447,574 | $ 435,142 | $ 275,674 | ||
First 3% of Employee's Salary | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Employer matching contribution percent | 100.00% | ||||
Next 2% of Employee's Salary | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Employer matching contribution percent | 50.00% | ||||
Matched at 50% | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Employer matching contribution percent of employees gross pay | 2.00% |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 19, 2021USD ($)shares | Feb. 08, 2021USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Feb. 05, 2021USD ($)vesselshares | Jan. 28, 2021USD ($)shares | Jul. 29, 2019vessel |
Subsequent Event [Line Items] | ||||||||
Number of securities called by warrants (in shares) | shares | 21,718 | 21,718 | 21,718 | |||||
Advance paid for vessel purchase | $ 3,250,000 | $ 0 | $ 2,040,000 | |||||
Number of vessels acquired | vessel | 6 | |||||||
High-Specification Scrubber-Fitted Ultramax Bulkcarriers | ||||||||
Subsequent Event [Line Items] | ||||||||
Vessel purchase price | 50,200,000 | |||||||
Advance paid for vessel purchase | $ 3,300,000 | |||||||
Subsequent Event | Restricted Stock | 2016 Equity Compensation Plan | ||||||||
Subsequent Event [Line Items] | ||||||||
Restricted common stock granted (in shares) | shares | 93,412 | |||||||
Restricted common stock fair value | $ 2,800,000 | |||||||
Vesting period | 3 years | |||||||
Subsequent Event | Restricted Stock | Executive Officer | 2016 Equity Compensation Plan | ||||||||
Subsequent Event [Line Items] | ||||||||
Restricted common stock granted (in shares) | shares | 4,341 | |||||||
Restricted common stock fair value | $ 100,000 | |||||||
Subsequent Event | High-Specification Scrubber-Fitted Ultramax Bulkcarriers | ||||||||
Subsequent Event [Line Items] | ||||||||
Vessel purchase price | $ 15,000,000 | |||||||
Advance paid for vessel purchase | $ 1,900,000 | |||||||
Subsequent Event | High-Specification Scrubber-Fitted Ultramax Bulkcarriers | Common Stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of securities called by warrants (in shares) | shares | 212,315 | |||||||
Subsequent Event | Supermax Vessel | ||||||||
Subsequent Event [Line Items] | ||||||||
Vessel purchase price | $ 21,200,000 | |||||||
Number of vessels acquired | vessel | 3 | |||||||
Subsequent Event | Supermax Vessel | Common Stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of securities called by warrants (in shares) | shares | 329,583 |