Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document Information [Line Items] | |
Entity Registrant Name | FREESEAS INC. |
Entity Central Index Key | 1325159 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Trading Symbol | FREE |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2014 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 115,470,692 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $45 | $7,581 |
Trade receivables, net of provision of $3,263 and $2,227 for 2014 and 2013, respectively. | 594 | 1,318 |
Insurance claims | 0 | 186 |
Due from related party | 433 | 1,167 |
Inventories | 166 | 32 |
Deferred charges - current portion | 16 | 1,210 |
Prepayments and other | 689 | 839 |
Vessel held for sale | 0 | 3,465 |
Total current assets | 1,943 | 15,798 |
Vessels, net | 50,484 | 71,834 |
Leased vessel, net | 11,826 | 0 |
Total non-current assets | 62,310 | 71,834 |
Total assets | 64,253 | 87,632 |
CURRENT LIABILITIES: | ||
Accounts payable | 8,444 | 9,906 |
Convertible notes, net | 166 | 115 |
Accrued liabilities | 4,588 | 4,931 |
Unearned revenue | 52 | 0 |
Derivative financial instruments - current portion | 0 | 200 |
Lease - current portion | 1,944 | 0 |
Bank loans - current portion | 17,598 | 59,687 |
Total current liabilities | 32,792 | 74,839 |
LONG - TERM LIABILITIES: | ||
Lease - net of current portion | 6,457 | 0 |
Total long - term liabilities | 6,457 | 0 |
Total liabilities | 39,249 | 74,839 |
Commitments and Contingencies | 0 | 0 |
SHAREHOLDERS' EQUITY: | ||
Preferred Stock, $0.001 par value; 5,000,000 shares authorized, Series C Convertible Preferred Stock, $0.001 par value, 85,000 shares designated, none and 56,000 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively. Series D Convertible Preferred Stock, $0.001 par value, 250,000 shares designated, 8,160 and none issued and outstanding at December 31, 2014 and December 31, 2013, respectively. | 0 | 0 |
Common stock, $0.001 par value; 750,000,000 shares authorized, 115,470,692 and 22,753,868 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively. | 115 | 23 |
Additional paid-in capital | 209,816 | 185,009 |
Accumulated deficit | -184,927 | -172,239 |
Total shareholders' equity | 25,004 | 12,793 |
Total liabilities and shareholders' equity | $64,253 | $87,632 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Trade receivables, provision (in dollars) | $3,263 | $2,227 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 115,470,692 | 22,753,868 |
Common stock, shares outstanding | 115,470,692 | 22,753,868 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 85,000 | 85,000 |
Preferred Stock, Shares Issued | 0 | 56,000 |
Preferred Stock, Shares Outstanding | 0 | 56,000 |
Series D Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 250,000 | 250,000 |
Preferred Stock, Shares Issued | 8,160 | 0 |
Preferred Stock, Shares Outstanding | 8,160 | 0 |
Common stock, shares outstanding | 8,160 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING REVENUES | $3,773 | $6,074 | $14,260 |
OPERATING EXPENSES: | |||
Voyage expenses | -829 | -2,669 | -2,835 |
Commissions | -274 | -517 | -874 |
Vessel operating expenses | -16,131 | -10,865 | -10,868 |
Depreciation expense (Note 5) | -5,320 | -5,728 | -5,729 |
Amortization of deferred charges (Note 8) | 0 | -199 | -988 |
Management and other fees to a related party (Note 4) | -1,605 | -1,490 | -2,404 |
General and administrative expenses | -4,104 | -3,904 | -4,443 |
Provision and write-offs of insurance claims and bad debts | -872 | -1,215 | -1,675 |
Loss on sale of vessels (Note 5) | -1,098 | 0 | 0 |
Vessel impairment charge | 0 | -27,455 | -12,480 |
Loss from operations | -26,460 | -47,968 | -28,036 |
OTHER INCOME (EXPENSE): | |||
Interest and finance costs | -2,342 | -2,381 | -2,583 |
Loss on derivative instruments (Note 9) | -21 | -40 | -85 |
Loss on settlement of liability through stock issuance (Note 16) | 0 | -3,914 | 0 |
Gain on settlement of payable | 0 | 1,149 | 0 |
Other income/ (expense) (Note 16) | 78 | -5,184 | -50 |
Gain on debt extinguishment | 16,057 | 9,633 | 0 |
Loss on debt extinguishment | 0 | 0 | -134 |
Other income (expense) | 13,772 | -737 | -2,852 |
Net loss | ($12,688) | ($48,705) | ($30,888) |
Basic loss per share (in dollars per share) | ($0.25) | ($7.46) | ($184.48) |
Diluted loss per share (in dollars per share) | ($0.25) | ($7.46) | ($184.48) |
Basic weighted average number of shares (in shares) | 49,988,956 | 6,527,240 | 167,435 |
Diluted weighted average number of shares (in shares) | 49,988,956 | 6,527,240 | 167,435 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2011 | $35,119 | $0 | $127,765 | ($92,646) | |
Beginning Balance (in shares) at Dec. 31, 2011 | 129,512 | ||||
Net loss | -30,888 | 0 | 0 | -30,888 | |
Stock compensation expense | 1,159 | 0 | 0 | 1,159 | 0 |
Exercise of warrants | 2,413 | 0 | 0 | 2,413 | |
Exercise of warrants (in shares) | 0 | 143,054 | |||
Ending Balance at Dec. 31, 2012 | 7,803 | 0 | 0 | 131,337 | -123,534 |
Ending Balance (in shares) at Dec. 31, 2012 | 0 | 272,566 | |||
Net loss | -48,705 | 0 | 0 | 0 | -48,705 |
Stock compensation expense | 42 | 0 | 0 | 42 | 0 |
Stock compensation expense (in shares) | 0 | 0 | |||
Stock issued pursuant to debt extinguishment (Exchange Agreement, (Note 16) | 20,576 | 0 | 9 | 20,567 | 0 |
Stock issued pursuant to debt extinguishment (Exchange Agreement, (Note 16) (in shares) | 0 | 8,741,761 | |||
Stock issued to Manager | 2,837 | 0 | 1 | 2,836 | 0 |
Stock issued to Manager (in shares) | 0 | 1,162,694 | |||
Stock issued for cancellation of covenant | 1,180 | 0 | 0 | 1,180 | 0 |
Stock issued for cancellation of covenant (in shares) | 0 | 400,000 | |||
Stock issued for settlement of liability | 13,599 | 0 | 8 | 13,591 | 0 |
Stock issued for settlement of liability (in shares) | 0 | 7,302,866 | |||
Stock issued to Company's officers, directors and employees | 3,783 | 0 | 2 | 3,781 | 0 |
Stock issued to Company's officers, directors and employees (in shares) | 0 | 1,712,163 | |||
Beneficial conversion feature | 262 | 0 | 0 | 262 | 0 |
Preferred stock issued for cash | 10,000 | 0 | 0 | 10,000 | 0 |
Preferred stock issued for cash (in shares) | 100,000 | ||||
Preferred stock converted into common stock | 0 | 0 | 2 | -2 | 0 |
Preferred stock converted into common stock (in shares) | -44,000 | 2,200,000 | |||
Stock issued through equity lines | 1,041 | 0 | 1 | 1,040 | 0 |
Stock issued through equity lines (in shares) | 0 | 565,974 | |||
Common stock issued for convertible notes | 375 | 0 | 0 | 375 | 0 |
Common stock issued for convertible notes (in shares) | 0 | 395,844 | |||
Series D Preferred stock issued for cash | 10,000 | 0 | 0 | 10,000 | 0 |
Series D Preferred stock issued for cash (in shares) | 100,000 | ||||
Ending Balance at Dec. 31, 2013 | 12,793 | 0 | 23 | 185,009 | -172,239 |
Ending Balance (in shares) at Dec. 31, 2013 | 56,000 | 22,753,868 | |||
Net loss | -12,688 | 0 | 0 | 0 | -12,688 |
Stock compensation expense | 637 | 0 | 11 | 627 | 0 |
Stock compensation expense (in shares) | 0 | 11,000,000 | |||
Cashless warrants exercised | 0 | 0 | 56 | -56 | 0 |
Cashless warrants exercised (in shares) | 56,608,510 | ||||
Beneficial conversion feature | 164 | 0 | 0 | 164 | 0 |
Preferred stock issued for cash | 23,969 | 0 | 0 | 23,969 | 0 |
Preferred stock issued for cash (in shares) | 250,000 | 0 | |||
Common stock issued for convertible notes | 128 | 0 | 0 | 128 | 0 |
Common stock issued for convertible notes (in shares) | 0 | 121,176 | |||
Series D Preferred stock issued for cash | 23,969 | 0 | 0 | 23,969 | 0 |
Series D Preferred stock issued for cash (in shares) | 250,000 | 0 | |||
Series D Preferred stock converted into common stock | 0 | 0 | 22 | -22 | 0 |
Series D Preferred stock converted into common stock (in shares) | -241,840 | 22,187,138 | |||
Series C Preferred stock converted into common stock | 0 | 0 | 3 | -3 | 0 |
Series C Preferred stock converted into common stock (in shares) | -56,000 | 2,800,000 | |||
Ending Balance at Dec. 31, 2014 | $25,004 | $0 | $115 | $209,816 | ($184,927) |
Ending Balance (in shares) at Dec. 31, 2014 | 8,160 | 115,470,692 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | |||
Net loss | ($12,688) | ($48,705) | ($30,888) |
Adjustments to reconcile net loss to net used in operating activities | |||
Depreciation expense (Note 5) | 5,320 | 5,728 | 5,729 |
Loss on sale of vessel | -1,098 | 0 | 0 |
Amortization of debt discount | 40 | 249 | 0 |
Gain on debt extinguishment principal (Note 11) | -15,000 | -9,633 | 0 |
Gain on debt extinguishment - accrued interest | -449 | 0 | 0 |
Gain on debt extinguishment - accrued fees | -1,409 | 0 | 0 |
Loss on debt extinguishment - deferred finance costs (Note 8) | 801 | 0 | 0 |
Gain on settlement of payable | 0 | -1,149 | 0 |
Common stock issued to Manager (Note 16) | 0 | 2,836 | 1,037 |
Common stock issued for cancellation of covenant (Note 16) | 0 | 1,180 | 0 |
Common stock issued to Companybs officers, directors and employees (Note 16) | 0 | 3,783 | 0 |
Loss on settlement of liability through stock issuance (Note 16) | 0 | 3,914 | 0 |
Amortization of deferred financing fees (Note 8) | 226 | 904 | 555 |
Amortization of deferred dry-docking and special survey costs (Note 8) | 167 | 199 | 988 |
Provision and write-offs of insurance claims and bad debts | 0 | 0 | 1,675 |
Stock-based compensation charge (Note 15) | 638 | 42 | 122 |
Write off of deferred financing fees (Note 8) | 0 | 939 | 191 |
Change in fair value of derivatives (Note 9) | -200 | -246 | -314 |
Vessel impairment loss (Notes 5 and 6) | 0 | 27,455 | 12,480 |
Changes in: | |||
-Trade receivables | 724 | -88 | 419 |
-Insurance claims | 186 | 90 | 351 |
-Due from related party | 734 | -821 | 217 |
-Inventories | -134 | 489 | 82 |
-Prepayments and other | 150 | -450 | 111 |
-Accounts payable | -1,362 | 7,657 | 5,849 |
-Accrued liabilities | 1,515 | 2,112 | 937 |
-Unearned revenue | 52 | -204 | -12 |
-Due to related party | 0 | -94 | 2,050 |
-Dry-docking and special survey costs paid (Note 8) | 0 | -167 | 0 |
(Increase) - decrease of deferred charges (Note 8) | 0 | 0 | -3,303 |
Dry-docking and special survey costs for vessels held for sale (Note 8) | 0 | 0 | -301 |
Net Cash used in Operating Activities | -19,593 | -3,978 | -2,025 |
Cash flows from Financing Activities: | |||
Increase in restricted cash | 0 | 0 | 1,125 |
Proceeds from convertible notes (Note 10) | 304 | 489 | 250 |
Repayment of bank loans | -27,089 | 0 | 0 |
Issuance of convertible preferred stock for cash, net (Note 16) | 23,970 | 10,000 | -40 |
Proceeds from sale of common stock (Note 16) | 0 | 1,041 | 388 |
Proceeds from sale of vessels | 14,872 | 0 | 0 |
Net Cash provided by Financing Activities | 12,057 | 11,530 | 1,723 |
Net increase (decrease) in cash and cash equivalents | -7,536 | 7,552 | -302 |
Cash and cash equivalents, beginning of year | 7,581 | 29 | 331 |
Cash and cash equivalents, end of year | 45 | 7,581 | 29 |
Supplemental Cash Flow Information: | |||
Cash paid for interest | 960 | 124 | 1,089 |
Cash paid for taxes | 0 | 0 | 0 |
Non-Cash Operating Activities: | |||
Shares issued to settle fees owed to the Manager (Note 4) | 0 | 2,559 | 2,040 |
Notes converted to common stock (Notes 10) | 129 | 375 | 0 |
Common stock issued for current debt extinguishment | 0 | 20,575 | 0 |
Common stock issued for repayment of payables | 0 | 13,599 | 0 |
Beneficial Conversion feature | 164 | 262 | 0 |
Bareboat Charter Lease | 12,250 | 0 | 0 |
Security deposit for charter terms | $3,750 | $0 | $0 |
Basis_of_Presentation_and_Gene
Basis of Presentation and General Information | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
Basis of Presentation and General Information | 1 | Basis of Presentation and General Information | ||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of FreeSeas Inc. and its wholly owned subsidiaries (collectively, the “Company” or “FreeSeas”). FreeSeas, formerly known as Adventure Holdings S.A., was incorporated in the Marshall Islands on April 23, 2004 for the purpose of being the ultimate holding company of ship-owning companies. | ||||||||||||||||||||||
We have contracted the management of our fleet to entities controlled (our Managers) by Ion G. Varouxakis, our Chairman, President and Chief Executive Officer, and one of our principal shareholders. Our Managers provide technical management of our fleet, commercial management of our fleet, financial reporting and accounting services and office space (see Note 4). | ||||||||||||||||||||||
Effective December 2, 2013, the Company effectuated a five-to-one reverse stock split on its issued and outstanding common stock (Note 14). All share and per share amounts disclosed in the financial statements give effect to this reverse stock split retroactively, for all periods presented. | ||||||||||||||||||||||
On September 16, 2014, the Company sold the M/V Free Jupiter a 2002-built, 47,777 dwt Handymax dry bulk carrier for a gross sale price of $12,250 and subsequently entered into a long term bareboat charter with the vessel’s new owners. The vessel has been renamed to Nemorino and chartered by the Company for seven years at a rate of $5,325 per day on bareboat charter terms typical for this type of transaction which grant the Company the full commercial utilization of the vessel against payment of the charter rate to its owners. In addition, the terms of the charter afford a number of purchase options during its course. An amount of $3,750 was deposited by the Company as security for the fulfillment of the terms of the charter (see Note 7). | ||||||||||||||||||||||
On September 24, 2014, the Company sold the M/V Free Impala, a 1997-built, 24,111 dwt Handysize dry bulk carrier for a gross sale price of $3,600 and the vessel was delivered to her new owners. Substantially all the proceeds have been used to reduce outstanding indebtedness with the National Bank of Greece (NBG), which had a mortgage on the vessel (Note 11). | ||||||||||||||||||||||
During the year ended December 31, 2014, the Company owned four Handysize dry bulk carriers and operated four Handysize and one Handymax dry bulk carriers. As of December 31, 2014, FreeSeas is the sole owner of all outstanding shares of the following subsidiaries: | ||||||||||||||||||||||
Company | % Owned | M/V | Type | Dwt | Year Built/ | Date of | Date of | Date of | Date of Initiation of | |||||||||||||
Expected | Acquisition | Disposal | Contract | Bareboat Charter | ||||||||||||||||||
Year of | Termination | |||||||||||||||||||||
Delivery | ||||||||||||||||||||||
Adventure Two S.A. | 100 | % | Free Destiny | Handysize | 25,240 | 1982 | 8/4/04 | 8/27/10 | N/A | N/A | ||||||||||||
Adventure Three S.A. | 100 | % | Free Envoy | Handysize | 26,318 | 1984 | 9/29/04 | 5/13/11 | N/A | N/A | ||||||||||||
Adventure Four S.A. | 100 | % | Free Fighter | Handysize | 38,905 | 1982 | 6/14/05 | 4/27/07 | N/A | N/A | ||||||||||||
Adventure Five S.A. | 100 | % | Free Goddess | Handysize | 22,051 | 1995 | 10/30/07 | N/A | N/A | N/A | ||||||||||||
Adventure Six S.A. | 100 | % | Free Hero | Handysize | 24,318 | 1995 | 7/3/07 | N/A | N/A | N/A | ||||||||||||
Adventure Seven S.A. | 100 | % | Free Knight | Handysize | 24,111 | 1998 | 3/19/08 | 2/18/14 | N/A | N/A | ||||||||||||
Adventure Eight S.A. | 100 | % | Free Jupiter | Handymax | 47,777 | 2002 | 9/5/07 | 9/16/14 | N/A | N/A | ||||||||||||
Adventure Nine S.A. | 100 | % | Free Impala | Handysize | 24,111 | 1997 | 4/2/08 | 9/24/14 | N/A | N/A | ||||||||||||
Adventure Ten S.A. | 100 | % | Free Lady | Handymax | 50,246 | 2003 | 7/7/08 | 11/8/11 | N/A | N/A | ||||||||||||
Adventure Eleven S.A. | 100 | % | Free Maverick | Handysize | 23,994 | 1998 | 9/1/08 | N/A | N/A | N/A | ||||||||||||
Adventure Twelve S.A. | 100 | % | Free Neptune | Handysize | 30,838 | 1996 | 8/25/09 | N/A | N/A | N/A | ||||||||||||
Adventure Fourteen S.A. | 100 | % | Hull 1 | Handysize | 33,600 | 2012 | N/A | N/A | 4/28/12 | N/A | ||||||||||||
Adventure Fifteen S.A. | 100 | % | Hull 2 | Handysize | 33,600 | 2012 | N/A | N/A | 6/4/12 | N/A | ||||||||||||
Nemorino Shipping S.A. | 100 | % | Nemorino | Handymax | 47,777 | 2002 | N/A | N/A | N/A | 9/16/14 | ||||||||||||
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Significant Accounting Policies | 2 | Significant Accounting Policies | |||||||||
a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (or “U.S. GAAP”) and include in each of the three years in the period ended December 31, 2014 the accounts and operating results of the Company and its wholly-owned subsidiaries referred to in Note 1 above. All inter-company balances and transactions have been eliminated upon consolidation. FreeSeas as the holding company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Under ASC 810 “Consolidation” a voting interest entity is an entity in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make financial and operating decisions. The holding company consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%) of the voting interest. Variable interest entities (“VIE”) are entities as defined under ASC 810 that in general either do not have equity investors with voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its activities. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entity’s design and purpose and the reporting entity’s power, through voting or similar rights, to direct the activities of the other entity that most significantly impact the other entity’s economic performance. A controlling financial interest in a VIE is present when a company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE, or both. Only one reporting entity, known as the primary beneficiary, is expected to be identified as having a controlling financial interest and thus is required to consolidate the VIE. The Company evaluates all arrangements that may include a variable interest in an entity to determine if it may be the primary beneficiary, and would be required to include assets, liabilities and operations of a VIE in its consolidated financial statements. As of December 31, 2014 and 2013, no such interest existed. | |||||||||||
b) Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||
c) Concentration of Credit Risk: Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash equivalents, trade accounts receivable, insurance claims, prepayments and advances, and derivative contracts (interest rate swaps). The Company places its cash and cash equivalents, consisting mostly of deposits, with high credit qualified financial institutions. The Company monitors the credit risk regarding charterer’s turnover in order to review its reliance on individual charterers. The Company does not obtain rights to collateral to reduce its credit risk. The Company is exposed to credit risk in the event of non-performance by counter parties to derivative instruments; however, the Company limits its exposure by diversifying among counter parties with high credit ratings. Credit risk with respect to trade account receivable is considered high due to the fact that the Company’s total income is derived from a few charterers. For the year ended December 31, 2014, two charterers individually accounted for more than 10% of the Company’s voyage revenues, two charterers individually accounted for more than 10% of the Company’s voyage revenues for the year ended December 31, 2013, and one charterer individually accounted for more than 10% of the Company’s voyage revenues for the year ended December 31, 2012 as follows: | |||||||||||
Charterer | 2014 | 2013 | 2012 | ||||||||
A | 39 | % | 32 | % | 22 | % | |||||
B | 34 | % | 12 | % | Less than 10 | % | |||||
d) Foreign Currency Translation: The functional currency of the Company is the U.S. Dollar because the Company’s vessels operate in international shipping markets, and therefore primarily transact business in U.S. Dollars. The Company’s accounting records are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars at the year-end exchange rates. Resulting gains or losses are included in other income/loss in the accompanying consolidated statements of operations. | |||||||||||
e) Cash and Cash Equivalents: The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity of three months or less to be cash equivalents. | |||||||||||
f) Restricted Cash: Restricted cash includes bank deposits that are required under the Company’s borrowing arrangements to be kept as part of the security required under the respective loan agreements. | |||||||||||
g) Trade Receivables, net: The amount shown as Trade Receivables at each balance sheet date includes receivables from charterers for hire, freight and demurrage billings, net of an allowance for doubtful debts. An estimate is made of the allowance for doubtful debts based on a review of all outstanding amounts at year end, and an allowance is made for any accounts which management believes are not recoverable. | |||||||||||
h) Insurance Claims: Insurance claims comprise claims submitted and/or claims in the process of compilation for submission (claims pending) relating to hull and machinery or protection and indemnity insurance coverage. They are recorded as incurred on the accrual basis and represent the claimable expenses incurred, net of deductibles, the recovery of which is probable under the related insurance policies and the Company can make an estimate of the amount to be reimbursed. Any non-recoverable amounts are included in accrued liabilities and depending on their nature, are classified as operating expenses or voyage expenses in the statement of operations. The classification of insurance claims (if any) into current and non-current assets is based on management’s expectations as to their collection dates. | |||||||||||
i) Inventories: Inventories, which are comprised of bunkers and lubricants remaining on board of the vessels at year end, are valued at the lower of cost, as determined on a first-in, first-out basis, or market. | |||||||||||
j) Advances for vessels under construction: This account includes milestone payments relating to the shipbuilding contracts with the shipyard, and various pre-purchase costs and expenses for which the recognition criteria are met. | |||||||||||
k) Vessels’ Cost: Vessels are stated at cost, which consists of the contract purchase price and any material expenses incurred upon acquisition (initial repairs, improvements, delivery expenses and other expenditures to prepare the vessel for her initial voyage). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels. Otherwise, these expenditures are charged to expense as incurred. | |||||||||||
l) Vessels’ Depreciation: The cost of the Company’s vessels is depreciated on a straight-line basis over the vessels’ remaining economic useful lives from the acquisition date, after considering the estimated residual value (vessel’s residual value is equal to the product of its lightweight tonnage and estimated scrap rate). Effective April 1, 2009, and following management’s reassessment of the useful lives of the Company’s assets, the fleets useful life was increased from 27 to 28 years since the date of initial delivery from the shipyard. Management’s estimate was based on the current vessels’ operating condition, as well as the conditions prevailing in the market for the same type of vessels. | |||||||||||
m) Vessels held for sale: It is the Company’s policy to dispose of vessels when suitable opportunities arise and not necessarily to keep them until the end of their useful life. The Company classifies assets and disposal groups of assets as being held for sale in accordance with ASC 360, “Property, Plant and Equipment,” when the following criteria are met: (i) management possessing the necessary authority has committed to a plan to sell the asset; (ii) the asset is immediately available for sale on an “as is” basis; (iii) an active program to find the buyer and other actions required to execute the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale within one year; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets or disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet the criteria to be held for sale and are classified in current assets on the consolidated balance sheet. | |||||||||||
n) Impairment of Long-lived Assets: The Company follows the guidance under ASC 360, “Property, Plant and Equipment,” which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The standard requires that, long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed 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 should evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset which is determined based on management estimates and assumptions and by making use of available market data. The fair values are determined through Level 2 inputs of the fair value hierarchy as defined in ASC 820 “Fair value measurements and disclosures” and are derived principally from or by corroborated or observable market data. Inputs, considered by management in determining the fair value, include independent broker’s valuations, FFA indices, average charter hire rates and other market observable data that allow value to be determined. The Company evaluates the carrying amounts and periods over which long-lived assets are depreciated to determine if events have occurred which would require modification to their carrying values or useful lives. In evaluating useful lives and carrying values of long-lived assets, management reviews certain indicators of potential impairment, such as future undiscounted net operating cash flows, vessel sales and purchases, business plans and overall market conditions. In performing the recoverability tests the Company determines future undiscounted net operating cash flows for each vessel and compares it to the vessel’s carrying value. The future undiscounted net operating cash flows are determined by considering the Company’s alternative courses of action, estimated vessel’s utilization, its scrap value, the charter revenues from existing time charters for the fixed fleet days and an estimated daily time charter equivalent for the unfixed days over the remaining estimated useful life of the vessel, net of vessel operating expenses adjusted for inflation, and cost of scheduled major maintenance. When the Company’s estimate of future undiscounted net operating cash flows for any vessel is lower than the vessel’s carrying value, the carrying value is written down, by recording a charge to operations, to the vessel’s fair market value. | |||||||||||
As of December 31, 2014, the Company performed an impairment assessment of its long-lived assets by comparing the undiscounted net operating cash flows for each vessel to its respective carrying value. The significant factors and assumptions the Company used in each future undiscounted net operating cash flow analysis included, among others, operating revenues, commissions, off-hire days, dry-docking costs, operating expenses and management fee estimates. Revenue assumptions were based on contracted time charter rates up to the end of life of the current contract of each vessel as well as Forward Freight Agreements (FFAs) and ten year historical average time charter rates for the remaining life of the vessel after the completion of the current contracts. In addition, the Company used an annual operating expenses escalation factor and an estimate of off hire days. All estimates used and assumptions made were in accordance with the Company’s internal budgets and historical experience of the shipping industry. The Company’s assessment concluded that no impairment existed as of December 31, 2014, as the vessels’ future undiscounted net operating cash flows exceeded their carrying value by $11,179. If the Company were to utilize the most recent five year historical average rates, three year historical average rates or one year historical average rates, would recognize an impairment loss of $17,982 (using the most recent five year historical average rates) and $27,077 (using the most recent three year or one year historical average rates). | |||||||||||
o) Accounting for Special Survey and Dry-docking Costs: Effective as of January 1, 2014, the Company changed the deferral method of accounting for special survey and dry-docking costs whereby actual costs incurred were deferred and amortized over periods of five and two and a half years, respectively. The Company now follows the direct expense method of accounting for special survey and dry-docking costs whereby costs are expensed in the period incurred for the vessels. | |||||||||||
p) Financing Costs: Fees incurred for obtaining new loans are deferred and amortized over the loans’ respective repayment periods, using the effective interest rate method. These charges are included in the balance sheet line item Deferred Charges. Any unamortized balance of costs relating to loans repaid or refinanced is expensed in the period the repayment or refinancing is made, if the refinancing is deemed to be a debt extinguishment under the provision of ASC 470-50 “Debt: Modifications and Extinguishments.” | |||||||||||
q) Unearned Revenue: Unearned revenue includes cash received prior to the balance sheet date and is related to revenue earned after such date. These amounts are recognized as revenue over the voyage or charter period. | |||||||||||
r) Interest Rate Swaps: The Company used interest rate swaps to manage net exposure to interest rate changes related to its borrowings. Such swap agreements, designated as “economic hedges” were recorded at fair value with changes in the derivatives’ fair value recognized in earnings unless specific hedge accounting criteria were met. During the years ended December 31, 2012, 2013 and 2014, there was no derivative transaction meeting such hedge accounting criteria; therefore the change in their fair value was recognized in earnings. | |||||||||||
s) Financial Instruments: The principal financial assets of the Company consist of cash and cash equivalents and restricted cash, trade receivables (net of allowance), insurance claims, prepayments and advances. The principal financial liabilities of the Company consist of accounts payable, accrued liabilities, deferred revenue, long-term debt, and interest-rate swaps. The carrying amounts reflected in the accompanying consolidated balance sheets of financial assets and liabilities, approximate their respective fair values. | |||||||||||
t) Fair Value Measurements: The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures” which defines, and provides guidance as to the measurement of, fair value. ASC 820 creates a hierarchy of measurement and indicates that, when possible, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets and the lowest priority (Level 3) to unobservable data, for example, the reporting entity’s own data. Under the standard, fair value measurements are separately disclosed by level within the fair value hierarchy. ASC 820 applies when assets or liabilities in the financial statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other accounting principles. | |||||||||||
u) Fair value option: In February, 2007, the FASB issued ASC 825, “Financial Instruments,” which permits companies to report certain financial assets and financial liabilities at fair value. ASC 825 was effective for the Company as of January 1, 2008 at which time the Company could elect to apply the standard prospectively and measure certain financial instruments at fair value. The Company evaluated the guidance contained in ASC 825 and elected not to report any existing financial assets or liabilities at fair value that are not already reported at fair value, therefore the adoption of the statement had no impact on its financial position and results of operations. The Company retains the ability to elect the fair value option for certain future assets and liabilities acquired under this pronouncement. | |||||||||||
v) Accounting for Revenue and Expenses: Revenue is recorded when services are rendered, the Company has a signed charter agreement or other evidence of an arrangement, the price is fixed or determinable, and collection is reasonably assured. A voyage charter involves the carriage of a specific amount and type of cargo from specific load port(s) to specific discharge port(s), subject to various cargo handling terms, in return for payment of an agreed upon freight rate per ton of cargo. A time charter involves placing a vessel at the charterers’ disposal for a period of time during which the charterer uses the vessel in return for the payment of a specified daily hire rate. Short period charters for less than three months are referred to as spot charters. Time charters extending three months to a year are generally referred to as medium term charters. All other time charters are considered long term. Voyage revenues for the transportation of cargo are recognized ratably over the estimated relative transit time of each voyage. A voyage is deemed to commence when a vessel is available for loading of its next fixed cargo and is deemed to end upon the completion of the discharge of the current cargo. Revenues from time chartering of vessels are accounted for as operating leases and are thus recognized on a straight line basis as the average revenue over the rental periods of such charter agreements, as service is provided. Voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid for by the charterer under time charter arrangements or by the Company under voyage charter arrangements, except for commissions, which are always paid for by the Company, regardless of charter type. All voyage and vessel operating expenses are expensed as incurred, except for commissions. Commissions are deferred over the related voyage charter period to the extent revenue has been deferred since commissions are earned as the Company’s revenues are earned. Probable losses on voyages in progress are provided for in full at the time such losses can be estimated. | |||||||||||
w) Profit Sharing Arrangements: From time to time, the Company has entered into profit sharing arrangements with its charterers, whereby the Company may have received additional income at an agreed percentage of net earnings earned by such charterer, where those earnings are over the base rate of hire and settled periodically during the term of the charter agreement. Revenues generated from the profit sharing arrangements are recorded in the period they are earned. | |||||||||||
x) Repairs and Maintenance: All repair and maintenance expenses, including major overhauling and underwater inspection expenses, are charged against income as incurred and are included in vessel operating expenses in the accompanying consolidated statements of operations. | |||||||||||
y) Stock-Based Compensation: Following the provisions of ASC 718, “Compensation- Stock Compensation” the Company recognizes all share-based payments to employees, including grants of employee stock options, in the consolidated statements of operations based on their fair values on the grant date. Compensation cost on stock based awards with graded vesting is recognized on an accelerated basis as though each separately vesting portion of the award was in substance, a separate award. | |||||||||||
z) Earnings/(Losses) per Share: Basic earnings/(losses) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common stock were exercised. Dilution has been computed by the treasury stock method whereby all of the Company’s dilutive securities (warrants, options and restricted shares) are assumed to be exercised and the proceeds used to repurchase common shares at the weighted average market price of the Company’s common stock during the relevant periods. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted earnings/(losses) per share computation unless such inclusion would be anti-dilutive. | |||||||||||
aa) Segment Reporting: The Company reports financial information and evaluates its operations by total charter revenues. The Company does not have discrete financial information to evaluate the operating results for each type of charter. Although revenue can be identified for these types of charters, management does not identify expenses, profitability or other financial information for these charters. As a result, management, including the chief operating decision makers, review operating results solely by revenue per day and operating results of the fleet and thus the Company has determined that it operates under one reportable segment. Furthermore, when the Company charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographic information is impracticable. | |||||||||||
bb) Subsequent Events: The Company evaluates subsequent events or transactions up to the date in which the financial statements are issued according to the requirements of ASC 855. | |||||||||||
cc) Recent Accounting Pronouncements: | |||||||||||
In February 2015, the FASB issued new guidance to improve consolidation guidance for legal entities (Accounting Standards Update (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis), effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in the ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. | |||||||||||
In January 2015, the FASB issued ASU No. 2015-01 "Income Statement—Extraordinary and Unusual Items: Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items". The concept of extraordinary items is removed and instead items that are both unusual in nature and infrequently occurring should be presented within income from continuing operations or disclosed in notes to financial statements because those items satisfy the conditions for an item that is unusual in nature or infrequently occurring. The new accounting guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted. Companies have the option to apply the amendments of ASU No. 2015-01 either prospectively or retrospectively. | |||||||||||
In August 2014, the FASB issued ASU No. 2014-15 "Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern". ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 requires an entity's management to evaluate at each reporting period based on the relevant conditions and events that are known at the date of financial statements are issued, whether there are conditions or events, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued and to disclose the necessary information. The new accounting guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. | |||||||||||
In June 2014, the FASB issued Accounting Standards Update 2014-12, “Accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period,” (“ASU 2014-12”) which requires performance-based awards with a performance target that affects vesting and that could be achieved after an employee completes the requisite service period to be accounted for as a performance condition. If performance targets are clearly defined and it is probable that the performance condition will be achieved, stock-based expense should be recognized over the remaining requisite service period. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the provisions of the ASU and assessing the potential effect on the Company’s consolidated financial position or results of operations. | |||||||||||
In June 2014, the FASB issued new guidance on transfers and servicing ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure), effective prospectively for fiscal years beginning after December 15, 2014 and interim periods within those years. The new guidance requires that repurchase-to-maturity transactions and repurchase financing arrangements be accounted for as secured borrowings and provides for enhanced disclosures, including the nature of collateral pledged and the time to maturity. Certain interim period disclosures for repurchase agreements and securities lending transactions are not required until the second quarter of 2015. The adoption of this new guidance will not have a material impact on the Company’s consolidated financial statements. | |||||||||||
In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014-09, Revenue from Contracts with Customers (Topic 606)), effective retrospectively for fiscal years beginning after December 15, 2016 and interim periods within those years. Early adoption of this standard is not permitted. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. | |||||||||||
In April 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-08 "Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" changing the presentation of discontinued operations on the statements of income and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component meets the criteria to be classified as held-for-sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2014. Early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. | |||||||||||
Going_Concern
Going Concern | 12 Months Ended | |
Dec. 31, 2014 | ||
Going Concern [Abstract] | ||
Going Concern | 3 | Going Concern |
As a result of the historically low charter rates for drybulk vessels which have been affecting the Company for over four years, and the resulting material adverse impact on the Company’s results from operations, the accompanying consolidated financial statements have been prepared on a going concern basis. The Company has incurred net losses of $12,688, $48,705 and $30,888 during the years ended December 31, 2014, 2013 and 2012, respectively. The Company’s cash flow projections for 2015, indicate that cash on hand will not be sufficient to cover debt repayments scheduled as of December 31, 2014 and operating expenses and capital expenditure requirements for at least twelve months from the balance sheet date. As of December 31, 2014 and 2013, the Company had working capital deficits of $30,849 and $59,041, respectively. All of the above raises substantial doubt regarding the Company’s ability to continue as a going concern. Management plans to continue to provide for its capital requirements by issuing additional equity securities and debt in addition to executing their business plan. The Company’s ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal course of business operations when they come due and to generate profitable operations in the future. | ||
In January and April 2013, the Company received notifications from FBB that the Company is in default under its loan agreements as a result of the breach of certain covenants and the failure to pay principal and interest due under the loan agreements. Effective May 13, 2013, the bank’s deposits and loans other than the loans in definite delay and the bank’s network of nineteen branches were transferred to the National Bank of Greece (“NBG”). The license of FBB was revoked and the bank was placed under special liquidation. The Company’s loan facility and deposits have been transferred to NBG. On February 22, 2014, the Company and certain of its subsidiaries entered into terms with NBG for settlement of its obligations arising from the loan agreement with NBG. Pursuant to the terms, NBG agreed to accept a cash payment of $22,000 no later than December 31, 2014, in full and final settlement of all of the Company’s obligations to NBG and NBG would forgive the remaining outstanding balance of approximately $4,700. On September 17, 2014, the Company made a payment of $2,700 to reduce outstanding indebtedness with NBG. On September 24, 2014, the Company sold the M/V Free Impala, a 1997-built, 24,111 dwt Handysize dry bulk carrier for a gross sale price of $3,600 and the vessel was delivered to her new owners. Subsequently, the amount of $3,300 has been used to reduce outstanding indebtedness with NBG, which had a mortgage on the vessel. In December 2014, the Company received notification from NBG that the Company has not paid the aggregate amount of $8,896 constituting repayment installments and accrued interest due on December 16, 2014. The agreed settlement of the Company’s obligations, arising from the loan agreement with NBG mentioned above, was not realized and on February 2, 2015, the Company received from NBG a new letter of default. The Company and NBG have entered into negotiations for a new settlement agreement, however no assurances can be made that an agreement can be reached on terms acceptable to the Company, if at all. | ||
In 2013, the Company did not pay the interest due in an aggregate amount of $354 or interest rate swap amounts in an aggregate of $256 pursuant to the Credit Suisse facility. On January 29, 2014, the Company entered into a deferral interest payment agreement with Credit Suisse, pursuant to which the interest payment of $115 due on January 31, 2014 was deferred to February 28, 2014. On February 3, 2014, the Company paid the amount of $201 to fully unwind the two interest rate swap agreements with Credit Suisse. On February 28, 2014, pursuant to the deferral interest payment agreement with Credit Suisse, the Company paid the deferred interest of $115.The Company received several reservation of right letters in 2013 stating that Credit Suisse may take any actions and may exercise all of their rights and remedies referred in the security documents. On January 30, 2014, the Company and certain of its subsidiaries entered into a term sheet with Credit Suisse in order to settle its obligations arising from the Loan Agreement with the Bank. Pursuant to the term sheet, Credit Suisse agreed to accept a cash payment of approximately $22,000 in full and final settlement of all of the Company’s obligations to the Bank and the Bank would forgive the remaining outstanding balance of approximately $15,000. Upon payment, all of the existing corporate guarantees of the Company and its subsidiaries and the mortgages and security interests on its three vessels (M/V Free Goddess, M/V Free Hero and M/V Free Jupiter) as well as all assignments in favor of Credit Suisse will be released. Following the closing on May 28, 2014 of the $25,000 offering of Series D Convertible Preferred Stock and Series C Warrants (see Note 16 below), the Company on May 30, 2014 paid the amount of $22,636 to Credit Suisse, and received the relative Waiver of Debt and Deed of Release and Reassignment, which included the release of all first preferred mortgages, general assignments of collateral and charter assignments (relating to the vessels M/V Free Jupiter , M/V Free Hero and M/V Free Goddess) together with each vessel’s release and reassignment of insurance, as well as the release of all first priority account pledges and guarantee agreements executed by its subsidiaries owning these vessels. | ||
If the Company is not able to reach an agreement with the NBG, this could lead to the acceleration of the outstanding debt under its debt agreement. The Company’s failure to satisfy its covenants under its debt agreement and any consequent acceleration of its outstanding indebtedness would have a material adverse effect on the Company’s business operations, financial condition and liquidity. | ||
Generally accepted accounting principles require that long-term debt be classified as a current liability when a covenant violation gives the lender the right to call the debt at the balance sheet date, absent a waiver. As a result of the actual breach existing under the Company’s credit facility with NBG (Note 11) acceleration of such debt by its lender could result. Accordingly, as of December 31, 2014, the Company is required to reclassify its long term debt as current liability on its consolidated balance sheet since the Company has not received waiver in respect to the breach discussed above. | ||
The Company is currently exploring several alternatives aiming to manage its working capital requirements and other commitments, including offerings of securities through structured financing agreements (Note 16), sale and lease back of certain vessels (Note 7), disposition of certain vessels in its current fleet (Note 5) and additional reductions in operating and other costs. | ||
The consolidated financial statements as of December 31, 2014, were prepared assuming that the Company would continue as a going concern despite its significant losses and working capital deficit. Accordingly, the financial statements did not include any adjustments relating to the recoverability and classification of recorded asset amounts, the amounts and classification of liabilities, or any other adjustments that might result in the event the Company is unable to continue as a going concern, except for the classification of all debt, as current. | ||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||
Dec. 31, 2014 | |||
Related Party Transactions [Abstract] | |||
Related Party Transactions | 4 | Related Party Transactions | |
Managers | |||
The vessels owned and the vessels sold and leased back by the Company receive management services from the Managers (Free Bulkers S.A. and OpenSeas Maritime S.A., respectively), pursuant to ship management agreements between each of the subsidiaries and the Managers. | |||
Each of the Company’s subsidiaries pays, as per its management agreement with the Managers, a monthly management fee of $18.975 (on the basis that the $/Euro exchange rate is 1.30 or lower; if on the first business day of each month the $/Euro exchange rate exceeds 1.30 then the management fee payable will be increased for the month in question, so that the amount payable in $ will be the equivalent in Euro based on 1.30 $/Euro exchange rate) plus a fee of $400 per day for superintendent attendance and other direct expenses. | |||
The Company also pays Free Bulkers and OpenSeas Maritime a fee equal to 1.25% of the gross freight or hire from the employment of the Company’s vessels. In addition, the Company pays a 1% commission on the gross purchase price of any new vessel acquired or the gross sale price of any vessel sold by the Company with the assistance of Free Bulkers and OpenSeas Maritime. On February 18, 2014 the Company sold the M/V Free Knight, a 1998-built, 24,111 dwt Handysize dry bulk carrier for a gross sale price of $3,600 and the vessel was delivered to her new owners. In this respect, the Company paid Free Bulkers $36 relating to the sale of the M/V Free Knight (Note 5) during the year ended December 31, 2014. | |||
On September 16, 2014, the Company sold the M/V Free Jupiter a 2002-built, 47,777 dwt Handymax dry bulk carrier for a gross sale price of $12,250 and subsequently entered into a long term bareboat charter with the vessel’s new owners. In this respect, the Company paid Free Bulkers $122 relating to the sale of the M/V Free Jupiter (Notes 5 & 7) during the year ended December 31, 2014.The vessel has been renamed to Nemorino and chartered by the Company for seven years at a rate of $5,325 per day on bareboat charter terms typical for this type of transaction which grant the Company the full commercial utilization of the vessel against payment of the charter rate to its owners. The vessel is managed by OpenSeas Maritime. | |||
On September 24, 2014, the Company sold the M/V Free Impala, a 1997-built, 24,111 dwt Handysize dry bulk carrier for a gross sale price of $3,600 and the vessel was delivered to her new owners. Substantially all the proceeds have been used to reduce outstanding indebtedness with the National Bank of Greece (NBG), which had a mortgage on the vessel (Note 11). In this respect, the Company paid Free Bulkers $36 relating to the sale of the M/V Free Impala (Note 5) during the year ended December 31, 2014. During the year ended December 31, 2013, there were no vessel disposals. In addition, the Company has incurred commission expenses relating to its commercial agreement with Free Bulkers amounting to $36 ,$104 and $174 for the year ended December 31, 2014, 2013 and 2012, respectively, included in “Commissions” in the accompanying consolidated statements of operations. | |||
The Company also pays, as per its services agreement with Free Bulkers, a monthly fee of $136 (on the basis that the $/Euro exchange rate is 1.35 or lower; if on the last business day of each month the $/Euro exchange rate exceeds 1.35 then the service fee payable will be adjusted for the following month in question, so that the amount payable in dollars will be the equivalent in Euro based on 1.35 $/Euro exchange rate) as compensation for services related to accounting, financial reporting, implementation of Sarbanes-Oxley internal control over financial reporting procedures and general administrative and management services plus expenses. Free Bulkers is entitled to a termination fee if the agreement is terminated upon a “change of control” as defined in its services agreement with the Manager. The termination fee as of December 31, 2014 would be approximately $71,627. | |||
Fees and expenses charged by the Managers are included in the accompanying consolidated financial statements in “Management and other fees to a related party,” “General and administrative expenses,” “Operating expenses,” “Gain on sale of vessel” and “Vessel impairment loss”. The total amounts charged for the year ended December 31, 2014, 2013 and 2012 amounted to $3,528 ($1,605 of management fees, $1,650 of services fees, $265 of superintendent fees and $8 for other expenses), $3,133 ($1,490 of management fees, $1,499 of services fees, $131 of superintendent fees and $13 for other expenses) and $4,560 ($2,404 of management fees, $1,985 of services fees, $134 of superintendent fees and $37 for other expenses), respectively. | |||
The “Management and other fees to a related party” and the “General and administrative expenses” for the year ended December 31, 2013 include the amount of $474 recognized as stock-based compensation expense for the issuance of 67,754 shares of the Company’s common stock to Free Bulkers in payment of $271 in unpaid fees due to Free Bulkers for January 2013 under the management and services agreements with the Company. In addition, the “Management and other fees to a related party” and the “General and administrative expenses” for the year ended December 31, 2013 include the amount of $954 recognized as gain for the issuance of 991,658 shares of the Company’s common stock to Free Bulkers (Note 16) in payment of $2,168 in unpaid fees due to Free Bulkers for the months of February, March, April, May, June, July, August and September 2013 and the issuance of 34,326 shares of the Company’s common stock to the non-executive members of its Board of Directors (Note 16), in payment of $120 in unpaid Board fees for the first, second and third quarter of 2013. | |||
The balance due from the Manager as of December 31, 2014 and December 31, 2013 was $433 and $1,167 respectively. The amount paid to the Manager for office space during the year ended December 31, 2014, 2013 and 2012 was $148, $147 and $143, respectively and is included in “General and administrative expenses” in the accompanying consolidated statements of operations. | |||
National Bank of Greece (NBG) | |||
Effective May 13, 2013, FBB ceased to be a related party according to the requirements of ASC 850 (“Related Party Disclosures”), since the bank’s deposits and loans other than the loans in definite delay and the bank’s network of nineteen branches were transferred to the National Bank of Greece (“NBG”). The license of FBB was revoked and the bank was placed under special liquidation. The Company’s loan facility and deposits have been transferred to NBG. | |||
Other Related Parties | |||
The Company, through the Managers uses from time to time a ship-brokering firm associated with family members of the Company’s Chairman, Chief Executive Officer and President for certain of the charters of the Company’s fleet. During the years ended December 31, 2014, 2013 and 2012, such ship-brokering firm charged the Company commissions of $6, $19 and $43, respectively, which are included in “Commissions” in the accompanying consolidated statements of operations. | |||
Vessels_net
Vessels, net | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Vessels, Net [Abstract] | |||||||||||
Vessels, net | 5 | Vessels, net | |||||||||
Vessels Cost | Accumulated | Net Book | |||||||||
Depreciation | Value | ||||||||||
31-Dec-11 | $ | 103,137 | $ | -21,718 | $ | 81,419 | |||||
Depreciation | — | -5,729 | -5,729 | ||||||||
31-Dec-12 | $ | 103,137 | $ | -27,447 | $ | 75,690 | |||||
Depreciation | — | -5,727 | -5,727 | ||||||||
Reclassified to vessel held for sale | -3,466 | — | -3,466 | ||||||||
Vessel impairment charge | -23,978 | — | -23,978 | ||||||||
Reclassified to vessels, net | 29,315 | — | 29,315 | ||||||||
31-Dec-13 | $ | 105,008 | $ | -33,174 | $ | 71,834 | |||||
Depreciation | — | -4,896 | -4,896 | ||||||||
Disposal of vessels | -29,180 | 12,726 | -16,454 | ||||||||
Leased vessel | 12,250 | -424 | 11,826 | ||||||||
31-Dec-14 | $ | 88,078 | $ | -25,768 | $ | 62,310 | |||||
Vessels disposed during the year ended December 31, 2012. | |||||||||||
During the year ended December 31, 2012, there were no vessel disposals. | |||||||||||
Vessels disposed during the year ended December 31, 2013. | |||||||||||
During the year ended December 31, 2013, there were no vessel disposals. | |||||||||||
As of December 31, 2013, the Company, according to the guidance under ASC 360, decided to change in the accompanying consolidated balance sheet the classification of the “held for sale” vessels (M/V Free Hero, M/V Free Jupiter, M/V Free Impala and M/V Free Neptune) to “held and used” since the market conditions were not favorable enough for concluding their sale and recognized an impairment loss of $3,477 in the accompanying consolidated statements of operations, of which $935 relates to the M/V Free Hero, $455 to the M/V Free Jupiter and $2,087 to the M/V Free Impala. In addition, the Company, also according to the provisions of ASC 360, has classified the M/V Free Knight, as “held for sale” in the accompanying consolidated balance sheet for the year ended December 31, 2013 at her estimated market value. As of December 31, 2013, the Company performed an impairment assessment of its long-lived assets by comparing the undiscounted net operating cash flows for each vessel to its respective carrying value. The Company’s assessment concluded that for the vessels that are held and used no impairment existed as of December 31, 2013, as the vessels’ future undiscounted net operating cash flows exceeded their carrying value by $10,014. If the Company were to utilize the most recent five year historical average rates, three year historical average rates or one year historical average rates, would recognize an impairment loss of $19,685 (using the most recent five year historical average rates) and $30,340 (using the most recent three year or one year historical average rates). | |||||||||||
Vessels disposed during the year ended December 31, 2014. | |||||||||||
On February 18, 2014 the Company sold the M/V Free Knight, a 1998-built, 24,111 dwt Handysize dry bulk carrier for a gross sale price of $3,600 and the vessel was delivered to her new owners. The Company recognized an impairment charge of $23,978 in the consolidated statement of operations for the year ended December 31, 2013. On September 16, 2014, the Company sold the M/V Free Jupiter a 2002-built, 47,777 dwt Handymax dry bulk carrier for a gross sale price of $12,250 and subsequently entered into a long term bareboat charter with the vessel’s new owners. On September 24, 2014, the Company sold the M/V Free Impala, a 1997-built, 24,111 dwt Handysize dry bulk carrier for a gross sale price of $3,600 and the vessel was delivered to her new owners. From the sale proceeds $3,300 was paid to NBG reducing the outstanding balance of the NBG loan facility (Note 11) | |||||||||||
As of December 31, 2014, the Company performed an impairment assessment of its long-lived assets by comparing the undiscounted net operating cash flows for each vessel to its respective carrying value. The Company’s assessment concluded that no impairment existed as of December 31, 2014, as the vessels’ future undiscounted net operating cash flows exceeded their carrying value by $11,179. If the Company were to utilize the most recent five year historical average rates, three year historical average rates or one year historical average rates, would recognize an impairment loss of $17,982 (using the most recent five year historical average rates) and $27,077 (using the most recent three year or one year historical average rates). | |||||||||||
Vessels_held_for_sale
Vessels held for sale | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Vessels held for sale [Abstract] | |||||
Vessels held for sale | 6 | Vessels held for sale | |||
Net Book | |||||
Value | |||||
31-Dec-11 | $ | 45,272 | |||
Vessel impairment charge | -12,480 | ||||
31-Dec-12 | $ | 32,792 | |||
Vessel impairment charge | -3,477 | ||||
Reclassified to vessels, net | -29,315 | ||||
Reclassified to vessel held for sale | 3,465 | ||||
31-Dec-13 | $ | 3,465 | |||
Vessel Sold | -3,465 | ||||
31-Dec-14 | $ | - | |||
Vessels classified as assets held for sale during the year ended December 31, 2012. | |||||
The Company according to the provisions of ASC 360, has classified the M/V Free Hero, the M/V Free Jupiter, the M/V Free Impala and the M/V Free Neptune as “held for sale” in the accompanying consolidated balance sheet for the year ended December 31, 2012 at their estimated market values less costs to sell, as all criteria required for the classification as “Held for Sale” were met at the balance sheet date. | |||||
As of December 31, 2012, the Company compared the carrying values of vessels classified as held for sale with their estimated market values less costs to sell and recognized an impairment loss of $12,480 in the accompanying consolidated statements of operations, of which $2,880 relates to the M/V Free Hero, $3,360 to the M/V Free Jupiter, $3,360 to the M/V Free Impala and $2,880 to the M/V Free Neptune. | |||||
Vessel classified as asset held for sale during the year ended December 31, 2013. | |||||
As of December 31, 2013 the Company (i) classified the M/V Free Knight as “held for sale”, and (ii) reclassified the M/V Free Hero, M/V Free Jupiter, M/V Free Impala and M/V Free Neptune as ‘‘held and used’’ – see Note 5 above. | |||||
No vessels were classified as assets held for sale during the year ended December 31, 2014. | |||||
Capital_Lease
Capital Lease | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases, Capital [Abstract] | ||||||||
Capital Lease | 7. Capital Lease | |||||||
On September 16, 2014, the Company sold the M/V Free Jupiter a 2002-built, 47,777 dwt Handymax dry bulk carrier for a gross sale price of $12,250 and subsequently entered into a long term bareboat charter with the vessel’s new owners. The vessel has been renamed to Nemorino and chartered by the Company for seven years at a rate of $5.325 per day on bareboat charter terms typical for this type of transaction which grant the Company the full commercial utilization of the vessel against payment of the charter rate to its owners. In addition, the terms of the charter afford a number of purchase options during its course. An amount of $3,750 was deposited by the Company as security for the fulfillment of the terms of the charter. | ||||||||
The Company has recorded the transaction as a “capital lease” due to the fact that the present value of the minimum lease payments exceeds 90% of the fair market value of the vessel. | ||||||||
The following table summarizes our bareboat charter obligations p.a.: | ||||||||
Year | Lease Payment p.a. | Capital Lease Reduction | Interest Expense | |||||
0 | -12,250 | |||||||
Principal | Interest | |||||||
1 | 1,943 | 1,214 | 729 | |||||
2 | 1,943 | 1,214 | 729 | |||||
3 | 1,943 | 1,214 | 729 | |||||
4 | 1,943 | 1,214 | 729 | |||||
5 | 1,943 | 1,214 | 729 | |||||
6 | 1,943 | 1,214 | 729 | |||||
7 | 1,943 | 1,214 | 729 | |||||
Total | 13,601 | 8,498 | 5,103 | |||||
Deferred_Charges
Deferred Charges | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Deferred Costs [Abstract] | ||||||||||||||
Deferred Charges | 8 | Deferred Charges | ||||||||||||
Dry Docking | Special Survey | Financing | Total | |||||||||||
Costs– Non | Costs – Non | Costs- | ||||||||||||
Current | Current | Current | ||||||||||||
31-Dec-11 | $ | 531 | $ | 355 | $ | 330 | $ | 1,216 | ||||||
Additions | — | — | 3,303 | 3,303 | ||||||||||
Write-offs | — | — | -191 | -191 | ||||||||||
Vessels held for sale | 112 | 189 | — | 301 | ||||||||||
Amortization | -628 | -360 | -555 | -1,543 | ||||||||||
31-Dec-12 | $ | 15 | $ | 184 | $ | 2,887 | $ | 3,086 | ||||||
Additions | 167 | — | — | 167 | ||||||||||
Write-offs | — | — | -939 | -939 | ||||||||||
Vessels held for sale | — | — | — | — | ||||||||||
Amortization | -16 | -184 | -904 | -1,104 | ||||||||||
31-Dec-13 | $ | 166 | $ | — | $ | 1,044 | $ | 1,210 | ||||||
Additions | — | — | — | — | ||||||||||
Write-offs | -166 | — | -801 | -967 | ||||||||||
Amortization | - | - | -226 | -226 | ||||||||||
31-Dec-14 | $ | - | $ | - | $ | 16 | $ | 16 | ||||||
As of December 31, 2014, the unamortized deferred amendment and restructuring fee of $801 related to the Credit Suisse loan facility, was written off, as a result of the Company’s Settlement Agreement with Credit Suisse and the relative Waiver of Debt and Deed of Release and Reassignment in May 2014. | ||||||||||||||
As of December 31, 2013, the unamortized deferred amendment and restructuring fees of $939 related to the Deutsche Bank loan facilities, were expensed, since Deutsche Bank, in accordance with the Settlement Agreement, forgave the outstanding indebtedness and overdue interest owed by the Company of approximately $30 million in total and released all collateral associated with the loan, including the lifting of the mortgages over the M/V Free Knight and the M/V Free Maverick. The net balance of $166 was fully expensed as of December 31, 2014. | ||||||||||||||
Additions to financing costs in 2012 related to the amendment and restructuring fees of $1,823 and $1,480, concerning the Credit Suisse and Deutsche Bank loan facilities, respectively, both due and payable on the earlier of March 31, 2014, the date of a voluntary prepayment, or the date the loan facilities become due or are repaid in full. Additions to deferred dry-docking and special survey costs in 2011 related to the dry docking and special survey of the M/V Free Maverick. | ||||||||||||||
Unamortized deferred financing fees of $191 related to the Credit Suisse and Deutsche Bank loan facilities, were written off due to the amended and restated facilities the Company entered with Credit Suisse and Deutsche Bank Nederland, on May 31, 2012 and September 7, 2012, respectively. | ||||||||||||||
Financial_Instruments_and_Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Financial Instruments and Fair Value Measurements [Abstract] | ||||||||||||||||
Financial Instruments and Fair Value Measurements | 9 | Financial Instruments and Fair Value Measurements | ||||||||||||||
The Company is exposed to interest rate fluctuations associated with its variable rate borrowings and its objective is to manage the impact of such fluctuations on earnings and cash flows of its borrowings. In this respect, the Company partially uses interest rate swaps to manage net exposure to interest rate fluctuations related to its borrowings. | ||||||||||||||||
The Company was party of two interest rate swap agreements which were fully unwound on February 3, 2014. The change in fair value on the Company’s two interest rate swaps for the year ended December 31, 2013 resulted in unrealized gains of $246. The settlements on the interest rate swaps for the year ended December 31, 2013 resulted in realized losses of $286. The total of the change in fair value and settlements for the year ended December 31, 2014 and 2013 aggregate to losses of $21 and $40, respectively, which is separately reflected in “Loss on derivative instruments” in the accompanying consolidated statements of operations. | ||||||||||||||||
Tabular Disclosure of Derivatives Location | ||||||||||||||||
Derivatives are recorded in the balance sheet on a net basis by counterparty when a legal right of setoff exists. The following tables present information with respect to the fair values of derivatives reflected in the balance sheet on a gross basis by transaction. The tables also present information with respect to gains and losses on derivative positions reflected in the Statement of Operations. | ||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Derivative | Balance Sheet Location | Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Interest rate swaps | Derivative financial instruments - current portion | $ | — | $ | — | $ | — | $ | 200 | |||||||
Derivative financial instruments - net of current portion | — | — | — | — | ||||||||||||
Total derivatives | $ | — | $ | — | $ | — | $ | 200 | ||||||||
The Effect of Derivative Instruments on the Statement of Operations for the Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||
Amount | ||||||||||||||||
Derivative | Loss Recognized on Derivative Location | 2014 | 2013 | 2012 | ||||||||||||
Interest rate swaps | Loss on derivative instruments | $ | 21 | $ | 40 | $ | 85 | |||||||||
Total | $ | 21 | $ | 40 | $ | 85 | ||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument: | ||||||||||||||||
• | Cash and cash equivalents, restricted cash, accounts receivable and accounts payable: The carrying values reported in the consolidated balance sheets for those financial instruments are reasonable estimates of their fair values due to their short-term nature. | |||||||||||||||
• | Long-term debt: The fair values of long-term bank loans approximate the recorded values due to the variable interest rates payable. | |||||||||||||||
• | Derivative financial instruments: The fair values of the Company’s derivative financial instruments equate to the amount that would be paid or received by the Company if the agreements were cancelled at the reporting date, taking into account current market data per instrument and the Company’s or counterparty’s creditworthiness, as appropriate. | |||||||||||||||
The guidance for fair value measurements applies to all assets and liabilities that are being measured and reported on a fair value basis. | ||||||||||||||||
This statement enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: | ||||||||||||||||
Level 1: Unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||||
Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
The Company’s derivative financial instruments are valued using pricing models that are used to value similar instruments by market participants. Where possible, the Company verifies the values produced by its pricing models to market prices. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measures of volatility and correlations of such inputs. The Company’s derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are typically classified within Level 2 of the fair value hierarchy. The following table summarizes the valuation of liabilities measured at fair value on a recurring basis as of the valuation date: | ||||||||||||||||
December 31, | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | |||||||||||||||
Assets | ||||||||||||||||
Recurring measurements: | 2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Interest rate swap contracts | $ | — | $ | — | $ | — | $ | — | ||||||||
Total | $ | — | $ | — | $ | — | $ | — | ||||||||
The following table summarizes the valuation of assets measured at fair value on a non-recurring basis as of the valuation date: | ||||||||||||||||
December 31, | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | |||||||||||||||
Assets | ||||||||||||||||
Non -Recurring measurements: | 2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Vessel held for sale | $ | 3,466 | $ | — | $ | 3,465 | $ | — | ||||||||
Total | $ | 3,466 | $ | — | $ | 3,465 | $ | — | ||||||||
Non -Recurring measurements: | December 31, | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
2014 | ||||||||||||||||
Vessel held for sale | $ | — | $ | — | $ | — | $ | — | ||||||||
Total | $ | — | $ | — | $ | — | $ | — | ||||||||
In accordance with the provisions of relevant guidance, as of December 31, 2012, the Company compared the carrying values of the M/V Free Hero , the M/V Free Jupiter , the M/V Free Impala and the M/V Free Neptune which were classified as held for sale in the accompanying consolidated balance sheet for the year ended December 31, 2012 (Note 6), with their estimated fair market values less costs to sell and recognized an impairment loss of $12,480 in the accompanying consolidated statements of operations. | ||||||||||||||||
As of December 31, 2013 the Company (i) classified the M/V Free Knight as “held for sale”, and (ii) reclassified the M/V Free Hero, M/V Free Jupiter, M/V Free Impala and M/V Free Neptune as ‘‘held and used’’ – see Notes 5 & 6 above. On February 18, 2014 the Company sold the M/V Free Knight, a 1998-built, 24,111 dwt Handysize dry bulk carrier for a gross sale price of $3.6 million and the vessel was delivered to her new owners. | ||||||||||||||||
As of December 31, 2014 all the Company’s vessels were classified as “held and used”. | ||||||||||||||||
Convertible_Notes_Payable
Convertible Notes Payable | 12 Months Ended | |
Dec. 31, 2014 | ||
Debt Disclosure [Abstract] | ||
Convertible Notes Payable | 10 | Convertible Notes Payable |
In January, April, May and July 2013, the Company entered into agreements with Asher Enterprises, Inc. (“Asher”) to four 8% interest bearing convertible notes for $489 due in nine months (“The 8% Convertible Notes”). One hundred eighty days following the date of these notes, the holder has the right to convert all or any part of the outstanding and unpaid principal amount of the note into Company’s common shares at a 35% discount rate. In connection with these notes, the Company recorded a $263 discount on debt, related to the beneficial conversion feature of the notes to be amortized over the life of the notes or until the notes were converted or repaid. On August 2, 2013, the Company issued 232,948 shares of common stock to Asher upon conversion of the $153.5 convertible promissory note dated January 31, 2013. On October 10, 2013, the Company issued 53,618 shares of common stock to Asher upon conversion of the $103.5 convertible promissory note dated April 8, 2013. On November 18, 2013, the Company issued 109,279 shares of common stock to Asher upon conversion of the $103.5 convertible promissory note dated May 13, 2013 plus accrued interest. On February 6, 2014, the Company issued 67,476 shares of common stock to Asher upon conversion of $75 principal of a convertible promissory note dated July 29, 2013 plus accrued interest. On February 7, 2014, the Company issued 53,700 shares of common stock to Asher upon conversion of the remaining principal of $53.5 convertible promissory note dated July 29, 2013 plus accrued interest. In February 2014, the Company issued 121,176 shares of common stock upon conversion of convertible debt amounting to $129 and accrued interest of $5. As of December 31, 2014, 100% of the balance of the convertible notes with Asher has been converted into common shares. | ||
On November 14, 2014, Crede agreed to waive the restriction of the Company entering into various Variable Rate Transactions for one year from the second Closing Date and two years from the Closing Date under the Placement Agreement and the Purchase Agreement, respectively, upon their approval for each new transaction (Note 16). | ||
On November 17, 2014, the Company sold to KBM WORLDWIDE, Inc. (“KBM”) an 8% interest bearing convertible note for $304 due in nine months. One hundred eighty days following the date of this note, the holder has the right to convert all or any part of the outstanding and unpaid principal amount of the note into Company’s common shares at a 35% discount rate. | ||
Bank_Loan_current_portion
Bank Loan - current portion | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Bank Loans - current portion | 11 | Bank Loan – current portion | |||||||||
December 31, 2013 | |||||||||||
Lender | Current | Long- | Total | ||||||||
Portion | term | ||||||||||
portion | |||||||||||
Credit Suisse | $ | 36,450 | $ | - | $ | 36,450 | |||||
NBG | $ | 23,237 | $ | - | $ | 23,237 | |||||
Total | $ | 59,687 | $ | - | $ | 59,687 | |||||
As of December 31, 2014, the Company’s bank debt is as follows: | |||||||||||
NBG | Credit Suisse | ||||||||||
31-Dec-13 | $ | 23,237 | $ | 36,450 | |||||||
Additions | $ | - | $ | - | |||||||
Payments | $ | -5,639 | $ | -21,450 | |||||||
Debt forgiveness | $ | - | $ | -15,000 | |||||||
31-Dec-14 | $ | 17,598 | $ | - | |||||||
The remaining repayment terms of the loan outstanding as of December 31, 2014 is as follows: | |||||||||||
Lender | Vessel | Remaining Repayment Terms | |||||||||
National Bank of Greece | M/V Free Neptune | Seven quarterly installments of $837.5 and a balloon payment of $11,735.5, payable together with the last installment due on December 16, 2016. | |||||||||
The vessel indicated in the above table is pledged as collateral for the respective loan. | |||||||||||
The Company’s credit facility with NBG bears interest at LIBOR plus a margin of 4%, and is secured by mortgage on the financed vessel (M/V Free Neptune) and assignments of vessel’s earnings and insurance coverage proceeds. It also includes affirmative and negative financial covenants of the borrower, including maintenance of operating accounts, average cash balances to be maintained with the lending bank and minimum ratios for the fair value of the collateral vessel compared to the outstanding loan balance. The borrower is restricted under its respective loan agreement from incurring additional indebtedness, changing the vessel’s flag without the lender’s consent or distributing earnings. | |||||||||||
The weighted average interest rate for the year ended December 31, 2014 and 2013 was 3% and 2.3%, respectively. Interest expense incurred under the above loan agreements amounted to $1,655, $1,946 and $2,415 for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in “Interest and Finance Costs” in the accompanying consolidated statements of operations. | |||||||||||
Credit Suisse Facility | |||||||||||
Following the term sheet on January 30, 2014, the Company and certain of its subsidiaries entered into an agreement with Credit Suisse, on May 28, 2014, whereby the Company agreed to pay to Credit Suisse approximately $22,636 from the offering proceeds (Note 16) to eliminate all of its debt obligations owed to Credit Suisse, amounting to $37,636 as of that date, and be discharged and released from any and all payment obligations (actual and contingent) owed and payable by the Company in respect of all amounts of principal, interest thereon, fees, costs and expenses under the credit Facility Agreement and Master Swap Agreement, both dated December 24, 2007 (as amended and/or supplemented and/or restated from time to time). Under the terms of this agreement Credit Suisse undertook, upon receipt of such payment, to cancel all the remaining debt of $15,000 owed by the Company and to release (i) any and all liens it has on the assets of the Company and (ii) all corporate guarantees received from the Company’s subsidiaries. | |||||||||||
On May 30, 2014, the Company paid the amount of $22,636 to Credit Suisse, as per the agreement above and received the relative Waiver of Debt and Deed of Release and Reassignment, which included the release of all first preferred mortgages, general assignments of collateral and charter assignments (relating to its vessels M/V Free Jupiter, M/V Free Hero and M/V Free Goddess) together with each vessel’s release and reassignment of insurance, as well as the release of all first priority account pledges and guarantee agreements executed by its subsidiaries owning these vessels. | |||||||||||
NBG Facility (fka FBB Facility) | |||||||||||
In January and April 2013, the Company received notifications from FBB that the Company is in default under its loan agreements as a result of the breach of certain covenants and the failure to pay principal and interest due under the loan agreements. Effective May 13, 2013, the bank’s deposits and loans other than the loans in definite delay and the bank’s network of nineteen branches were transferred to the National Bank of Greece (“NBG”). The license of FBB was revoked and the bank was placed under special liquidation. The Company’s loan facility and deposits have been transferred to NBG. On February 22, 2014, the Company and certain of its subsidiaries entered into terms with NBG for settlement of its obligations arising from the loan agreement with NBG. Pursuant to the terms, NBG agreed to accept a cash payment of $22,000 no later than December 31, 2014, in full and final settlement of all of the Company’s obligations to NBG and NBG would forgive the remaining outstanding balance of approximately $4,700. On September 17, 2014, the Company made a payment of $2,700 to reduce outstanding indebtedness with NBG. On September 24, 2014, the Company sold the M/V Free Impala, a 1997-built, 24,111 dwt Handysize dry bulk carrier for a gross sale price of $3,600 and the vessel was delivered to her new owners. Subsequently, the amount of $3,300 has been used to reduce outstanding indebtedness with NBG, which had a mortgage on the vessel. In December 2014, the Company received notification from NBG that the Company has not paid the aggregate amount of $8,896 constituting repayment installments and accrued interest due on December 16, 2014. The agreed settlement of the Company’s obligations, arising from the loan agreement with NBG mentioned above, was not realized and on February 2, 2015, the Company received from NBG a new letter of default. The Company and NBG have entered into negotiations for a new settlement agreement, however no assurances can be made that an agreement can be reached on terms acceptable to the Company, if at all. | |||||||||||
Loan Covenants | |||||||||||
As of December 31, 2013 and December 31, 2014, the Company was in breach of certain of its financial covenants for its loan agreement with NBG, including the loan-to-value ratio, interest cover ratio, minimum liquidity requirements and leverage ratio. Thus, in accordance with guidance related to classification of obligations that are callable by the creditor, the Company has classified all of the related long-term debt amounting to $17,598 as current at December 31, 2014. | |||||||||||
NBG (fka FBB) loan agreement: | |||||||||||
· | Average corporate liquidity: the Company is required to maintain an average corporate liquidity of at least $3,000; | ||||||||||
· | Leverage ratio: the corporate guarantor’s leverage ratio shall not at any time exceed 55%; | ||||||||||
· | Ratio of EBITDA to net interest expense shall not be less than 3; and | ||||||||||
· | Value to loan ratio: the fair market value of the financed vessels shall be at least (a) 115% for the period July 1, 2010 to June 30, 2011 and (b) 125% thereafter. | ||||||||||
The covenants described above are tested annually on December 31st. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||
Commitments and Contingencies | 12 | Commitments and Contingencies | |||||||||||||||||||||
The following table summarizes our contractually committed obligations and their maturity dates as of December 31, 2014: | |||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||
(Dollars in thousands) | Less | More | |||||||||||||||||||||
than 1 | 2- | 3- | 4- | 5- | than 5 | ||||||||||||||||||
Total | year | year | year | year | year | years | |||||||||||||||||
(U.S. dollars in thousands) | |||||||||||||||||||||||
Interest on variable-rate debt | 480 | 480 | — | — | — | — | — | ||||||||||||||||
Services fees to the Manager | 6,540 | 1,635 | 1,635 | 1,635 | 1,635 | — | — | ||||||||||||||||
Management fees to the Managers | 12,407 | 1,138 | 1,138 | 1,138 | 1,138 | 1,138 | 6,717 | ||||||||||||||||
Total obligations | $ | 19,427 | $ | 3,253 | $ | 2,773 | $ | 2,773 | $ | 2,773 | $ | 1,138 | $ | 6,717 | |||||||||
The above table does not include our share of the monthly rental expenses for our offices of approximately 8.7 Euro (in thousands) | |||||||||||||||||||||||
Claims | |||||||||||||||||||||||
Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Company’s vessels. Currently, management is not aware of any such claims or contingent liabilities, which should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements. The Company is a member of a protection and indemnity association, or P&I Club that is a member of the International Group of P&I Clubs, which covers its third party liabilities in connection with its shipping activities. A member of a P&I Club that is a member of the International Group is typically subject to possible supplemental amounts or calls, payable to its P&I Club based on its claim records as well as the claim records of all other members of the individual associations, and members of the International Group. Although there is no cap on its liability exposure under this arrangement, historically supplemental calls have ranged from 25%-40% of the Company’s annual insurance premiums, and in no year have exceeded $1 million. The Company accrues for the cost of environmental liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable exposure. Currently, management is not aware of any such claims or contingent liabilities, which should be disclosed, or for which a provision should be established in the accompanying consolidated financial statements. The Company’s protection and indemnity (P&I) insurance coverage for pollution is $1 billion per vessel. | |||||||||||||||||||||||
The M/V Free Goddess was hijacked by Somali pirates on February 7, 2012 while transiting the Indian Ocean eastbound. On October 11, 2012, we announced that all 21 crew members of the M/V Free Goddess were reported safe and well after the vessel’s release by the pirates. At the time of the hijacking, the vessel was on time charter in laden condition. Since the release from the pirates, the vessel has been laying at the port of Salalah, Oman, undertaking repairs funded mostly by insurers. The repairs of the vessel were completed, and notice of readiness was tendered to her Charterers for the resumption of the voyage. The Charterers repudiated the Charter and we accepted Charterers’ repudiation and terminated the fixture reserving our right to claim damages and other amounts due to us. The Tribunal previously constituted will hear our claim for (amongst others) unpaid hire and damages from the Charterers. In the meantime, cargo interests have commenced proceedings under the Bills of Lading although they have not yet particularized their claims. At the same time, all options are being explored for the commercial resolution of the situation arising from Charterers refusal to honor their obligations, including the further contribution by insurers and cargo interests towards the completion of the voyage and recovery of amounts due. The Company is working for a diligent solution in order to complete the voyage without further delays. In case no commercially reasonable solution may be found, the Company will explore its strategic alternatives with respect to this vessel. | |||||||||||||||||||||||
Pursuant to a charterparty dated November 8, 2012, the Company chartered the M/V Free Neptune to Tramp Maritime Enterprises Ltd. (“TME”). TME failed to pay outstanding hire in the amount of US$356. On April 2, 2013, the Company commenced arbitration proceedings against TME under the charterparty. TME’s failure to honor its obligations under the charterparty has resulted in the M/V Free Neptune being arrested by bunker suppliers in respect of bunkers previously supplied to the vessel, which were due and payable by TME under both the charterparty terms and the bunkers supply terms. The Company denied liability for the claim and actively defended it. The arrest was lifted pursuant to an agreement between the bunker suppliers and the charterers of the vessel at the time of the arrest, under which, charterers made a part payment of the bunker suppliers claim. The bunker suppliers maintained their claim for the balance. The Company subsequently agreed with the charterers that it would repay such amount only in the event of a final and unappealable judgment on the merits against the Company. | |||||||||||||||||||||||
The outstanding balance of the Company’s claims as of December 31, 2014 stands at $nil related to Company’s insurance claims for vessel incidents arising in the ordinary course of business. | |||||||||||||||||||||||
Loss_per_Share_and_Series_A_B_
Loss per Share and Series A, B and C Warrants | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings(Losses) Per Share [Abstract] | ||||||||||||
Loss per Share | 13 | Loss per Share and Series A, B and C Warrants | ||||||||||
The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the period, as adjusted to reflect the reverse stock split effective December 2, 2013. The Company entered on November 3, 2013 into a securities purchase agreement, with Crede, for an aggregate investment of $10,000 through the private placement of Series B and C Convertible Preferred Stock and Series A and Series B Warrants (Note 16). On May 28, 2014 the Company closed on the $25,000 offering of Series D Convertible Preferred Stock and Series C Warrants (Note 16). | ||||||||||||
The computation of the dilutive common shares outstanding does not include 5,000,000 Series A Warrants, 990,813 Series B Warrants and 35,967,870 Series C Warrants outstanding as of December 31, 2014, as the average stock price during the year ended December 31, 2014 was less than their exercise price, thus resulting in an antidilutive effect. | ||||||||||||
On October 30, 2014, the Company agreed with Crede to extend the expiration date of the Series B Warrants for one year until November 5, 2015. | ||||||||||||
Presented below is a table reflecting the activity in the Series A Warrants, Series B Warrants and Series C Warrants from January 1, 2014 through December 31, 2014: | ||||||||||||
Series A | Series B | Series C | Exercise | |||||||||
Warrants | Warrants | Warrants | Total | Price | ||||||||
1-Jan-14 | 5,000,000 | 2,500,000 | 7,500,000 | $2.60 (Series A&B) | ||||||||
Series C warrants issued with $25,000 offering | — | — | 46,000,000 | 46,000,000 | $1.42 (Series C) | |||||||
Cashless Warrants exercised | — | -1,509,187 | -10,032,130 | -11,541,317 | ||||||||
31-Dec-14 | 5,000,000 | 990,813 | 35,967,870 | 41,958,683 | ||||||||
As of December 31, 2014, pursuant to the terms of the Series A, B & C warrants, the Company has issued to warrant holders 56,608,510 shares of common stock in the aggregate pursuant to the cashless exercise formula set forth therein. | ||||||||||||
The components of the denominator for the calculation of basic loss per share and diluted loss per share for the years ended December 31, 2014, 2013 and 2012, respectively, are as follows: | ||||||||||||
For the year | For the year | For the year | ||||||||||
ended | ended | ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator | ||||||||||||
Net loss – basic and diluted | $ | -12,688 | $ | -48,705 | $ | -30,888 | ||||||
Basic earnings per share denominator: | ||||||||||||
Weighted average common shares outstanding | 49,988,956 | 6,527,240 | 167,435 | |||||||||
Diluted earnings per share denominator: | ||||||||||||
Weighted average common shares outstanding | 49,988,956 | 9,351,960 | 167,435 | |||||||||
Dilutive common shares: | ||||||||||||
Options | — | — | — | |||||||||
Warrants | — | 2,824,720 | — | |||||||||
Restricted shares | — | — | — | |||||||||
Dilutive effect | — | 2,824,720 | — | |||||||||
Weighted average common shares – diluted | 49,988,956 | 9,351,960 | 167,435 | |||||||||
Basic loss per common share | $ | -0.25 | $ | -7.46 | $ | -184.48 | ||||||
Diluted loss per common share | $ | -0.25 | $ | -5.21 | $ | -184.48 | ||||||
Reverse_Stock_Splits
Reverse Stock Splits | 12 Months Ended | |
Dec. 31, 2014 | ||
Reverse stock split and Shareholders' Equity [Abstract] | ||
Reverse Stock Splits | 14 | Reverse Stock Splits |
Effective February 14, 2013, the Company effectuated a reverse stock split at a ratio of 1 for 10. The reverse stock split consolidated 10 shares of common stock into one share of common stock at a par value of $0.001 per share. Effective December 2, 2013, the Company effectuated a reverse stock split at a ratio of 1 for 5. The reverse stock split consolidated five shares of common stock into one share of common stock at a par value of $0.001 per share. As a result of the reverse stock split, the number of outstanding common shares reduced at that time from 94,324,530 to 18,864,906 subject to adjustment for fractional shares. The reverse stock split did not affect any shareholder’s ownership percentage of the Company’s common shares, except to the limited extent that the reverse stock split resulted in any shareholder owning a fractional share. Fractional shares of common stock were rounded up to the nearest whole share. | ||
Equity_Incentive_Plan
Equity Incentive Plan | 12 Months Ended | |
Dec. 31, 2014 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Equity Incentive Plan | 15 | Equity Incentive Plan |
On July 30, 2014, the Company’s Board of Directors approved the Company’s 2014 Equity Incentive Plan (the “2014 Plan”). Under the terms of the 2014 Plan, the Company may issue (1) stock options (incentive and nonstatutory), (2) restricted stock, (3) stock appreciation rights, or SARs, (4) restricted stock units, or RSUs, (5) other stock-based awards, and (6) cash-based awards. The 2014 Plan provides for the issuance of up to 5,000,000 shares of common stock. The Board determines the exercise price, vesting and expiration period of the grants under the 2014 Plan. However, the exercise price of an incentive stock option may not be less than 110% of fair value of the common stock at the date of the grant for a 10% or more shareholder and 100% of fair value for a grantee who is not a 10% shareholder. The fair value of the common stock is determined based on quoted market price or in absence of such quoted market price, by the Board in good faith. Additionally, the vesting period of the grants under the 2014 Plan may not be more than five years and expiration period not more than ten years. On November 5, 2014, the Company amended the 2014 Plan, which increases the authorized number of shares of common stock issuable thereunder from 5,000,000 to 15,000,000. | ||
On November 10, 2014, the Company pursuant to the recommendation of the Company’s Compensation Committee and the Board of Directors’ approval, issued an aggregate of 10,600,000 shares of its common stock to officers, directors and employees as an incentive for their commitment and hard work during adverse market conditions. In addition, the Company issued an aggregate of 400,000 shares of its common stock to its non-executive members of its Board of Directors in payment of $80 in unpaid Board fees for the second and third quarters of 2014. Subject to the provisions of a restricted stock award granted to the holders by the Company pursuant to its Amended 2014 Plan, 1,100,000 shares of its common stock will vest on May 10, 2015, 2,975,000 shares of its common stock will vest on November 10, 2015 and 2,975,000 shares of its common stock will vest on November 10, 2016. | ||
For the year ended December 31, 2014, the recognized stock based compensation expense in relation to the common shares granted is $638. The total unrecognized compensation cost of the non-vested restricted shares granted under the Plan is $1,138. The cost is expected to be recognized over a period of approximately 24 months. | ||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |
Dec. 31, 2014 | ||
Reverse stock split and Shareholders' Equity [Abstract] | ||
Shareholders' Equity | 16 | Shareholders’ Equity |
In December 2012, the Company applied to NASDAQ to transfer the listing of the Company's common stock from The NASDAQ Global Market to The NASDAQ Capital Market. To transfer to the NASDAQ Capital Market, the Company was required to meet all of the continued listing requirements of the NASDAQ Capital Market, except for the minimum bid price. One of the continued listing requirements of the NASDAQ Capital Market is to have a MVPHS of $1,000. Such a transfer would have granted the Company an additional six month period to regain compliance with the minimum bid price. | ||
On December 19, 2012, the Company received notification from NASDAQ that on December 18, 2012, it failed to meet all continued listing criteria for the NASDAQ Capital Market, as its MVPHS was $897. As a result, the notice indicated that the Company’s common stock would be delisted from NASDAQ. The Company appealed that decision and the appeals hearing was scheduled for February 21, 2013. | ||
On May 11, 2012, the Company entered into a Standby Equity Distribution Agreement, or SEDA, with YA Global Master SPV Ltd., or YA Global, a fund managed by Yorkville Advisors, LLC, pursuant to which, for a 24-month period, the Company has the right to sell up to $3.2 million of shares of the Company’s common stock. The SEDA entitles the Company to sell and obligates YA Global to purchase, from time to time over a period of 24 months, shares of the Company’s common stock for cash consideration up to an aggregate of $3.2 million, subject to conditions the Company must satisfy as set forth in the SEDA. For each share of common stock purchased under the SEDA, YA Global will pay 96% of the lowest daily volume weighted average price during the pricing period, which is the five consecutive trading days after the Company delivers an advance notice to YA Global. Each such advance may be for an amount not to exceed the greater of $200 or 100% of the average daily trading volume of the Company’s common stock for the 10 consecutive trading days prior to the notice date. The Company registered the resale by YA Global of up to 36,795 shares of its common stock. As of December 31, 2012, the Company had sold all the shares of its common stock under the SEDA for aggregate proceeds of $432. Pursuant to the terms of the SEDA, the Company could not deliver any further advance notices until such time as the Company has filed and declared effective a new registration statement covering the resale of additional shares of its common stock by YA Global. | ||
On August 21, 2012, pursuant to the terms of a Note Purchase Agreement dated May 11, 2012 between the Company and YA Global, the Company raised an aggregate of $250 from the sale of a promissory note pursuant to the Note Purchase Agreement. The note was expected to be repaid in 10 equal weekly installments to mature 90 days from the date of funding. Thereafter, the Company requested an extension of the repayment schedule which was granted. As of December 31, 2012, the outstanding balance under the Note Purchase Agreement totaled $75. | ||
On August 10, 2012, pursuant to the approval of the Company’s Board of Directors at its April 2012 meeting, the Company issued 33,214 shares of its common stock to the Manager in payment of the $926 in unpaid fees due to the Manager for the first quarter of 2012 and 3,993 shares of its common stock to its non-executive directors in payment of $155 in unpaid Board fees for the last three quarters of 2011. | ||
On October 11, 2012, pursuant to the approval of the Company’s Board of Directors at its October 2012 meeting, the Company issued 43,930 shares of its common stock to the Manager in payment of the $807 in unpaid fees due to the Manager for the third quarter of 2012 and 6,536 shares of its common stock to its non-executive directors in payment of $152 in unpaid Board fees for the first, second and third quarter of 2012. | ||
On October 11, 2012, the Company entered into an Investment Agreement, or Dutchess Agreement, with Dutchess Opportunity Fund, II, LP, or Dutchess, a fund managed by Dutchess Capital Management, II, LLC, pursuant to which, for a 36-month period, the Company has the right to sell up to 47,060 shares of our common stock. The Dutchess Agreement entitles the Company to sell and obligates Dutchess to purchase, from time to time over a period of 36 months, up to 47,060 shares of its common stock, subject to conditions the Company must satisfy as set forth in the Dutchess Agreement. For each share of common stock purchased under the Dutchess Agreement, Dutchess will pay 98% of the lowest daily volume weighted average price during the pricing period, which is the five consecutive trading days commencing on the day the Company delivers a put notice to Dutchess. Each such put may be for an amount not to exceed the greater of $200 or 200% of the average daily trading volume of the Company’s common stock for the three consecutive trading days prior to the put notice date, multiplied by the average of the three daily closing prices immediately preceding the put notice date, subject to a 9.99% blocker provision. The Company registered the resale by Dutchess of up to 47,060 shares of its common stock. As of December 31, 2012, the Company had sold 18,587 shares of its common stock under the Dutchess Agreement for aggregate proceeds of $91. | ||
On January 15, 2013, the Company issued 27,500 shares of our common stock (the “Settlement Shares”) to Hanover in connection with a stipulation of settlement (the “First Settlement Agreement”) of an outstanding litigation claim. The First Settlement Agreement provided that the Settlement Shares would be subject to adjustment on the 36th trading day following the date on which the Settlement Shares were initially issued to reflect the intention of the parties that the total number of shares of Common Stock to be issued to Hanover pursuant to the First Settlement Agreement be based upon a specified discount to the trading volume weighted average price (the “VWAP”) of the Common Stock for a specified period of time. Specifically, the total number of shares of Common Stock to be issued to Hanover pursuant to the First Settlement Agreement shall be equal to the quotient obtained by dividing (i) $305,485.59 by (ii) 70% of the VWAP of the Common Stock over the 35-trading day period following the date of issuance of the Settlement Shares (the “True-Up Period”), rounded up to the nearest whole share (the “VWAP Shares”). The First Settlement Agreement further provided that if, at any time and from time to time during the True-Up Period, Hanover reasonably believed that the total number of Settlement Shares previously issued to Hanover were less than the total number of VWAP Shares to be issued to Hanover or its designee in connection with the First Settlement Agreement, Hanover could, in its sole discretion, deliver one or more written notices to the Company, at any time and from time to time during the True-Up Period, requesting that a specified number of additional shares of Common Stock promptly be issued and delivered to Hanover or its designee (subject to the limitations described below), and the Company would upon such request reserve and issue the number of additional shares of Common Stock requested to be so issued and delivered in the notice (all of which additional shares shall be considered “Settlement Shares” for purposes of the First Settlement Agreement). | ||
On January 18, 2013, the Company delivered an additional 8,000 shares to Hanover and on January 29, 2013, delivered an additional 1,657 shares to Hanover. At the end of the True-Up Period, (i) if the number of VWAP Shares exceeds the number of Settlement Shares issued, then the Company would issue to Hanover or its designee additional shares of Common Stock equal to the difference between the number of VWAP Shares and the number of Settlement Shares, and (ii) if the number of VWAP Shares were less than the number of Settlement Shares, then Hanover or its designee will return to the Company for cancellation that number of shares of Common Stock equal to the difference between the number of VWAP Shares and the number of Settlement Shares. | ||
On January 31, 2013, an amendment to the First Settlement Agreement reduced the True-Up Period from 35 trading days following the date the Initial Settlement Shares were issued to four trading days following the date the Initial Settlement Shares were issued. As a result, the True-Up Period expired on January 22, 2013. Accordingly, the total number of shares of Common Stock issuable to Hanover pursuant to the First Settlement Agreement, as amended, was 37,157, which number is equal to the quotient obtained by dividing (i) $305,485.59 by (ii) 70% of the VWAP of the Common Stock over the four-trading day period following the date of issuance of the Initial Settlement Shares, rounded up to the nearest whole share. All of such 37,157 shares of Common Stock had been issued to Hanover prior to the amendment of the First Settlement Agreement. Accordingly, no further shares of Common Stock are issuable to Hanover pursuant to the First Settlement Agreement, as amended, and Hanover is not required to return any shares of Common Stock to the Company for cancellation pursuant thereto. | ||
The First Settlement Agreement provided that in no event should the number of shares of Common Stock issued to Hanover or its designee in connection with the First Settlement Agreement, when aggregated with all other shares of Common Stock then beneficially owned by Hanover and its affiliates (as calculated pursuant to Section 13(d) of the Exchange, and the rules and regulations thereunder, result in the beneficial ownership by Hanover and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and the rules and regulations thereunder) at any time of more than 9.99% of the Common Stock. | ||
On January 24, 2013, the Company entered into an Investment Agreement with Granite (the “Granite Agreement”), pursuant to which, for a 36-month period, the Company had the right to sell up to 79,159 shares of its common stock to Granite. The Granite Agreement entitled the Company to sell and obligated Granite to purchase, from time to time over a period of 36 months (the “Open Period”), 79,159 shares of the Company’s common stock, subject to conditions the Company must had satisfied as set forth in the Granite Agreement. For each share of common stock purchased under the Granite Agreement, Granite would pay 98% of the lowest daily volume weighted average price during the pricing period, which was the five consecutive trading days commencing on the day the Company delivered a put notice to Granite. Each such put could be for an amount not to exceed the greater of $500 or 200% of the average daily trading volume of our common stock for the three consecutive trading days prior to the put notice date, multiplied by the average of the three daily closing prices immediately preceding the put notice date. In no event, however, should the number of shares of common stock issuable to Granite pursuant to a put cause the aggregate number of shares of common stock beneficially owned by Granite and its affiliates to exceed 9.99% of the outstanding common stock at the time. | ||
On February 13, 2013, the Company issued 37,000 shares of our common stock (the “Second Settlement Shares”) to Hanover in connection with a second stipulation of settlement (the “Second Settlement Agreement”) of an outstanding litigation claim. The Second Settlement Agreement provides that the Second Settlement Shares would be subject to adjustment on the 36th trading day following the date on which the Second Settlement Shares were initially issued to reflect the intention of the parties that the total number of shares of Common Stock to be issued to Hanover pursuant to the Second Settlement Agreement be based upon a specified discount to the VWAP of the Common Stock for a specified period of time. Specifically, the total number of shares of Common Stock to be issued to Hanover pursuant to the Second Settlement Agreement should be equal to the quotient obtained by dividing (i) $740,651.57 by (ii) 75% of the VWAP of the Common Stock over the 35-trading day period following the date of issuance of the Second Settlement Shares (the “Second True-Up Period”), rounded up to the nearest whole share (the “Second VWAP Shares”). The Second Settlement Agreement further provided that if, at any time and from time to time during the Second True-Up Period, Hanover reasonably believed that the total number of Second Settlement Shares previously issued to Hanover were less than the total number of Second VWAP Shares to be issued to Hanover or its designee in connection with the Second Settlement Agreement, Hanover could, in its sole discretion, deliver one or more written notices to the Company, at any time and from time to time during the Second True-Up Period, requesting that a specified number of additional shares of Common Stock promptly be issued and delivered to Hanover or its designee, and the Company would upon such request reserve and issue the number of additional shares of Common Stock requested to be so issued and delivered in the notice (all of which additional shares should be considered “Second Settlement Shares” for purposes of the Second Settlement Agreement). On February 19, 2013, the Company issued and delivered to Hanover 18,000 additional Second Settlement Shares, on February 25, 2013, the Company issued and delivered to Hanover another 18,000 additional Second Settlement Shares, on February 26, 2013 the Company issued and delivered to Hanover another 18,000 additional Second Settlement Shares, on February 27, 2013, the Company issued and delivered to Hanover another 20,000 additional Second Settlement Shares, on February 28, 2013, the Company issued and delivered to Hanover another 20,000 additional Second Settlement Shares and on March 4, 2013, the Company issued and delivered to Hanover another 20,000 additional Second Settlement Shares. At the end of the Second True-Up Period, on March 6, 2013, the Company issued and delivered 6,351 additional Second Settlement Shares to Hanover. | ||
On February 15, 2013, the Company entered into a termination agreement of the Standby Equity Distribution Agreement, or SEDA with YA Global. As a result, the outstanding fees of $10 owed to YA Global under the SEDA were written off. | ||
On February 19, 2013, the Company issued the press release announcing the approval of the transfer of the listing of the Company’s common stock to The NASDAQ Capital Market, the granting of the additional extension to comply with the minimum bid price requirement and the cancellation of the NASDAQ appeal hearing. | ||
On February 28, 2013, pursuant to the approval of the Company’s Board of Directors at its January 18, 2013 meeting, the Company issued 128,328 shares of its common stock to the Manager in payment of $809 in unpaid fees due to the Manager for November and December 2012 and January 2013 and 8,382 shares of its common stock to its non-executive directors in payment of $48 in unpaid Board fees for the fourth quarter of 2012. | ||
On March 14, 2013, the Company issued to YA Global 14,038 shares of its common stock for final settlement of $63 of outstanding principal of Note and accrued unpaid interest due. | ||
On April 4, 2013, the Company received notification from NASDAQ that it has regained compliance with the NASDAQ Listing Rule 5450(a)(1) (the "Minimum Bid Price Rule") requirement for continued listing on NASDAQ, as the bid price of the Company’s common stock closed at or above $1.00 per share for a minimum of 10 consecutive business days. | ||
As of April 2, 2013, the Company has sold all the 79,159 shares of its common stock to Granite under the Granite Agreement for aggregate proceeds of $458. | ||
On April 17, 2013, the Company issued 112,000 shares of our common stock (the “Fourth Settlement Shares”) to Hanover in connection with a fourth stipulation of settlement (the “Fourth Settlement Agreement”) of an outstanding litigation claim. The Fourth Settlement Agreement provided that the Fourth Settlement Shares would be subject to adjustment on the 36th trading day following the date on which the Fourth Settlement Shares were initially issued to reflect the intention of the parties that the total number of shares of Common Stock to be issued to Hanover pursuant to the Fourth Settlement Agreement be based upon a specified discount to the trading VWAP of the Common Stock for a specified period of time. Specifically, the total number of shares of Common Stock to be issued to Hanover pursuant to the Fourth Settlement Agreement should be equal to the quotient obtained by dividing (i) $1,792,416.92 by (ii) 75% of the VWAP of the Common Stock over the 35-trading day period following the date of issuance of the Fourth Settlement Shares (the “Fourth True-Up Period”), rounded up to the nearest whole share (the “Fourth VWAP Shares”). The Fourth Settlement Agreement further provided that if, at any time and from time to time during the Fourth True-Up Period, Hanover reasonably believed that the total number of Fourth Settlement Shares previously issued to Hanover were less than the total number of Fourth VWAP Shares to be issued to Hanover or its designee in connection with the Fourth Settlement Agreement, Hanover could, in its sole discretion, deliver one or more written notices to the Company, at any time and from time to time during the Fourth True-Up Period, requesting that a specified number of additional shares of Common Stock promptly be issued and delivered to Hanover or its designee (subject to the limitations described below), and the Company should upon such request reserve and issue the number of additional shares of Common Stock requested to be so issued and delivered in the notice (all of which additional shares should be considered “Fourth Settlement Shares” for purposes of the Fourth Settlement Agreement). On April 22, 2013, the Company issued and delivered to Hanover 60,000 additional Settlement Shares, on April 29, 2013, the Company issued and delivered to Hanover another 65,000 additional Settlement Shares, on May 6, 2013, the Company issued and delivered to Hanover another 67,000 additional Settlement Shares, on May 10, 2013, the Company issued and delivered to Hanover another 70,000 additional Settlement Shares, on May 16, 2013 the Company issued and delivered to Hanover another 150,000 additional Settlement Shares and on May 22, 2013, the Company issued and delivered to Hanover another 40,000 additional Settlement Shares. At the end of the Fourth True-Up Period, on May 24, 2013, the Company issued and delivered 119 additional Settlement Shares to Hanover. | ||
On May 22, 2013, the Company entered into a debt settlement agreement with Navar pursuant to which the Company issued Navar 27,385 shares of common stock in exchange for the extinguishment of $94 of outstanding debt related to shipbrokerage services provided to the Company by Navar. | ||
On May 29, 2013, the Company entered into an Investment Agreement with Dutchess (the “Dutchess Agreement”), a fund managed by Dutchess Capital Management, II, LLC, pursuant to which, for a 36-month period, the Company has the right to sell up to 460,933 shares of its common stock, which equaled approximately 28.6% of its 1,611,656 shares outstanding as of May 29, 2013. As of December 20, 2013, the Company has sold 458,344 shares of its common stock to Dutchess under the Dutchess Agreement for aggregate gross proceeds of $485. | ||
On June 17, 2013, we received a letter from NASDAQ , notifying us that for the last 30 consecutive business days, the closing bid price of the Company’s common stock has been below $1.00 per share, the minimum closing bid price required by the continued listing requirements of NASDAQ set forth in Listing Rule 5450(a)(1). We had 180 calendar days, or until December 16, 2013, to regain compliance with Rule 5450(a)(1) (the "Compliance Period"). To regain compliance, the closing bid price of the Company’s common stock should be at least $1.00 per share for a minimum of 10 consecutive business days during the Compliance Period. The NASDAQ notification had no effect at that time on the listing of the Company's common stock on The NASDAQ Capital Market. | ||
On June 26, 2013, the Company issued 178,000 shares of our common stock (the “Fifth Settlement Shares”) to Hanover in connection with a fifth stipulation of settlement (the “Fifth Settlement Agreement”) of an outstanding litigation claim. The Fifth Settlement Agreement provided that the Fifth Settlement Shares should be subject to adjustment on the 121st trading day following the date on which the Fifth Settlement Shares were initially issued to reflect the intention of the parties that the total number of shares of Common Stock to be issued to Hanover pursuant to the Fifth Settlement Agreement be based upon a specified discount to the trading VWAP of the Common Stock for a specified period of time. Specifically, the total number of shares of Common Stock to be issued to Hanover pursuant to the Fifth Settlement Agreement shall be equal to the quotient obtained by dividing (i) $5,331,011.90 by (ii) 75% of the VWAP of the Common Stock over the 120 consecutive trading day period following the date of issuance of the Fifth Settlement Shares (the “Fifth True-Up Period”), rounded up to the nearest whole share (the “Fifth VWAP Shares”). The Fifth Settlement Agreement further provided that if, at any time and from time to time during the Fifth True-Up Period, Hanover reasonably believed that the total number of Fifth Settlement Shares previously issued to Hanover were less than the total number of Fifth VWAP Shares to be issued to Hanover or its designee in connection with the Fifth Settlement Agreement, Hanover could, in its sole discretion, deliver one or more written notices to the Company, at any time and from time to time during the Fifth True-Up Period, requesting that a specified number of additional shares of Common Stock promptly be issued and delivered to Hanover or its designee (subject to the limitations described below), and the Company should upon such request reserve and issue the number of additional shares of Common Stock requested to be so issued and delivered in the notice (all of which additional shares should be considered “Fifth Settlement Shares” for purposes of the Fifth Settlement Agreement). Between July 2, 2013 and September 9, 2013, the Company issued and delivered to Hanover an aggregate of 5,501,600 additional Settlement Shares. | ||
At the end of the Fifth True-Up Period, on September 10, 2013, the Company issued and delivered 426,943 additional Settlement Shares to Hanover. | ||
For the year ended December 31, 2013, as a result of the issuance of an aggregate of 7,159,749 shares of common stock to Hanover in connection with five settlement agreements of a total outstanding litigation claim of $9,434 (described above), the Company recognized a loss of $3,914, which is included in “Loss on settlement of liability through stock issuance” in the accompanying consolidated statements of operations. | ||
On July 10, 2013, pursuant to the approval of the Company’s Compensation Committee, the Company issued an aggregate of 493,911 shares of its common stock to officers, directors and employees as a bonus for their commitment and hard work during adverse market conditions. As well, the Company recognized for the year ended December 31, 2013 the amount of $1,030 as compensation cost, which is included in “Other income/ (expense)” in the accompanying consolidated statements of operations. | ||
On August 2, 2013, the Company issued 232,948 shares of common stock to Asher upon conversion of $153.5 convertible promissory note dated January 31, 2013. | ||
On August 16, 2013, the Company issued 100,000 shares of common stock to its legal counsel in exchange for the extinguishment of $105 of outstanding debt related to services provided to the Company. | ||
On September 20, 2013, pursuant to the approval of the Company’s Compensation Committee, the Company issued an aggregate of 1,197,034 shares of its common stock to officers, directors and employees as a bonus for their commitment and hard work during adverse market conditions. As well, the Company recognized for the year ended December 31, 2013 the amount of $2,753 as compensation cost, which is included in “Other income/ (expense)” in the accompanying consolidated statements of operations. | ||
On October 1, 2013 the Company, in partial consideration for Hanover’s cancellation of certain covenants of the Settlement Agreement , issued to Hanover 400,000 shares of common stock and granted customary piggy-back registration rights for such shares, together with a demand registration right commencing 120 days after September 25, 2013. Said registration was filed and effective on January 28, 2014. As a result of the issuance of common stock, the Company recognized for the year ended December 31, 2013 a loss of $1,180, which is included in “Other income/ (expense)” in the accompanying consolidated statements of operations. | ||
On September 26, 2013, Crede and the Company entered into an Exchange Agreement, in order to settle the complaint filed against the Company by Crede seeking to recover an aggregate of $10,500, representing all amounts due under the Settlement Agreement, as amended. The total number of shares of Common Stock to be issued to Crede pursuant to the Exchange Agreement would equal the quotient of (i) $11,850 divided by (ii) 78% of the volume weighted average price of the Company’s Common Stock, over the 75-consecutive trading day period immediately following the first trading day after the Court approved the Order (or such shorter trading-day period as could be determined by Crede in its sole discretion by delivery of written notice to the Company) (the “Calculation Period”), rounded up to the nearest whole share (the “Crede Settlement Shares”). 1,011,944 of the Crede Settlement Shares were issued and delivered to Crede on October 10, 2013 and an aggregate of 6,151,708 Crede Settlement Shares were issued and delivered to Crede between October 11, 2013 and November 7, 2013. | ||
The Exchange Agreement further provided that if, at any time and from time to time during the Calculation Period (as defined below), the total number of Crede Settlement Shares (as defined below) previously issued to Crede were less than the total number of Crede Settlement Shares to be issued to Crede or its designee in connection with the Exchange Agreement, Crede could, in its sole discretion, deliver one or more written notices to the Company requesting that a specified number of additional shares of Common Stock promptly be issued and delivered to Crede or its designee (subject to the limitations described below), and the Company should upon such request issue the number of additional shares of Common Stock requested to be so issued and delivered in the notice (all of which additional shares should be considered “Crede Settlement Shares” for purposes of the Exchange Agreement. At the end of the Calculation Period, (i) if the total number of Crede Settlement Shares required to be issued exceeds the number of Crede Settlement Shares previously issued to Crede, then the Company should issue to Crede or its designee additional shares of Common Stock equal to the difference between the total number of Crede Settlement Shares required to be issued and the number of Crede Settlement Shares previously issued to Crede, and (ii) if the total number of Crede Settlement Shares required to be issued were less than the number of Crede Settlement Shares previously issued to Crede, then Crede or its designee will return to the Company for cancellation that number of shares of Common Stock equal to the difference between the number of total number of Crede Settlement Shares required to be issued and the number of Crede Settlement Shares previously issued to Crede. Crede could sell the shares of Common Stock issued to it or its designee in connection with the Exchange Agreement at any time without restriction, even during the Calculation Period. | ||
On October 9, 2013, the Company received approval by the Supreme Court of the State of New York of the terms and conditions of the Exchange Agreement between the Company and Crede. As a result of the court approval, Crede released $10,500 to Deutsche Bank and Deutsche Bank, upon receipt of the funds, in accordance with the Settlement Agreement, has forgiven the remaining outstanding indebtedness and overdue interest owed by the Company of approximately $19,500 in total as well as released all collateral associated with the loan, including the lifting of the mortgages over the M/V Free Maverick and the M/V Free Knight. | ||
The Calculation Period expired on December 24, 2013. Accordingly, the total number of shares of Common Stock issuable to Crede pursuant to the Exchange Agreement was 8,741,761. Accordingly, 1,578,110 additional Crede Settlement Shares were owed to Crede, and on December 27, 2013, the Company issued and delivered to Crede 1,578,110 Crede Settlement Shares. | ||
On October 10, 2013, the Company issued 53,618 shares of common stock to Asher upon conversion of the $103.5 convertible promissory note dated April 8, 2013. | ||
On October 14, 2013, the Company issued 991,658 shares of its common stock to the Manager in payment of $2,168 in unpaid fees due to the Manager for the months of February – September 2013 under the management and services agreements with the Company. The number of shares issued to the Manager was based on the closing prices of the Company's common stock on the first day of each month, which is the date the management and services fees were due and payable. In addition, the Company also issued an aggregate of 34,326 shares of the Company’s common stock to its non-executive members of its Board of Directors in payment of $120 in unpaid Board fees for the first, second and third quarters of 2013. | ||
On November 3, 2013, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with Crede for an aggregate investment of $10,000 into the company through the private placement of two series of zero-dividend convertible preferred stock (collectively, the “Preferred Stock”) and Series A Warrants and Series B Warrants (collectively, the “Warrants”), subject to certain terms and conditions. | ||
At the first closing (the “Initial Closing”), which occurred on November 5, 2013, for $1,500, the Company sold to Crede 15,000 shares of Series B Convertible Preferred Stock (the “Series B Preferred Stock”), together with the Warrants. The Series B Preferred Stock was convertible into shares of Common Stock at $2.00 per share. | ||
The Series A Warrants are initially exercisable for 5,000,000 shares of our Common Stock at an initial exercise price of $2.60 per share and will have a 5-year term. The Series B Warrants are initially exercisable for 2,500,000 shares of our Common Stock at an initial exercise price of $2.60 per share and will expire on the one year anniversary of the Initial Closing. | ||
At the second closing, which occurred on December 30, 2013, the Company sold to Crede 85,000 shares of our Series C Convertible Preferred Stock (the “Series C Preferred Stock”) for $8,500. The Series C Preferred Stock was convertible into our Common Stock at the same price at which the Series B Preferred Stock is convertible. | ||
Crede may exercise the Warrants by paying cash or electing to receive a cash payment from us equal to the Black Scholes value of the number of shares Crede elects to exercise. We may elect to treat such request for a cash payment as a cashless exercise of the Warrants so long as (i) we are in compliance in all material respects with our obligations under the transaction documents, (ii) the Registration Statement is effective and (iii) our Common Stock is listed or designated for quotation on an eligible market. In the event that our Common Stock trades at or above $3.25 for a period of 20 consecutive trading days, the average daily dollar volume of our Common Stock equals at least $1 million during such period and various equity conditions are also satisfied during such period, we may, at our election, require Crede to exercise the Warrants for cash. | ||
The convertibility of the Preferred Stock and the exercisability of the Warrants each may be limited if, upon conversion or exercise (as the case may be), the holder thereof or any of its affiliates would beneficially own more than 9.9% of our Common Stock. The Preferred Stock and the Warrants contain customary weighted-average anti-dilution protection. | ||
The Preferred Stock will not accrue dividends, except to the extent dividends are paid on our Common Stock. Our Common Stock will be junior in rank to the Preferred Stock upon the liquidation, dissolution and winding up of our company. The Preferred Stock will generally have no voting rights except as required by law. | ||
In addition, the Company reimbursed Crede for all costs and expenses incurred by it or its affiliates in connection with the transactions contemplated by the transaction documents in a non-accountable amount equal to $75. In addition, the Company paid Crede an additional non-refundable amount equal to $75 upon occurrence of the Initial Closing and paid Crede $425 upon occurrence of the second closing as an unallocated expense reimbursement. | ||
Crede has the right to participate on the same terms as other investors, up to 25% of the amount of any subsequent financing the Company enters into, for a period of (i) one year from the second closing or (ii) if parties’ obligations to consummate the second closing are terminated pursuant to Section 8 of the Purchase Agreement, then (A) one year from the Initial Closing if the Company is not in material breach of its obligations under the transaction documents at the time of such termination or (B) two years from the Initial Closing if the Company is in material breach of its obligations under the transaction documents at the time of such termination. | ||
Further, the Company is prohibited from issuing additional shares of our Common Stock or securities convertible into or exercisable for its Common Stock until 150 days after the later to occur of (x) November 3, 2013, and (y) the second closing, provided that if parties’ obligations to consummate the second closing are terminated pursuant to Section 8 of the Purchase Agreement, then (I) 150 days after November 3, 2013, if the Company is not in material breach of its obligations under the transaction documents at the time of such termination or (II) November 3, 2014, if the Company is in material breach of its obligations under the transaction documents at the time of such termination. Such prohibition will not apply to issuances (i) to employees, consultants, directors and officers approved by the Board or pursuant to a plan approved by the Board, not to exceed 819,869 shares, (ii) shares issued upon exercise or conversion of securities outstanding as of the Initial Closing, (iii) shares issued to the manager of our fleet, in lieu of cash compensation, (iv) shares issuable pursuant to an exchange agreement previously entered into between the Company and Crede and (v) shares issued solely in exchange for an acquisition of a nautical vessel, provided that such shares do not exceed the greater of 1.5 million shares or $3 million of shares. | ||
Until one year after the second closing (provided, that, if parties’ obligations to consummate the second closing are terminated pursuant to Section 8 of the Purchase Agreement, the restricted period shall be (i) one year from the Initial Closing if the Company is not in material breach of its obligations under the transaction documents at the time of such termination or (ii) two years from the Initial Closing if the Company is in material breach of its obligations under the transaction documents at the time of such termination), the Company is prohibited from entering into any transaction to (i) sell any convertible securities at a conversion rate or other price that is generally based on and/or varies with the trading prices of its Common Stock at any time after the initial issuance of such convertible securities or (ii) sell securities at a future determined price, including, without limitation, an “equity line of credit” or an “at the market offering.” | ||
On November 18, 2013, the Company issued 109,279 shares of common stock to Asher upon conversion of the $103.5 convertible promissory note dated May 13, 2013 plus accrued interest (Note 10). | ||
On December 16, 2013, the Company received notification from NASDAQ that it has regained compliance with the NASDAQ Listing Rule 5450(a)(1) (the "Minimum Bid Price Rule") requirement for continued listing on NASDAQ, as the bid price of the Company’s common stock closed at or above $1.00 per share for a minimum of 10 consecutive business days. | ||
On December 30, 2013, the Company issued to Crede 750,000 shares of common stock upon conversion of 15,000 shares of Series B Preferred Stock. | ||
On December 31, 2013, the Company issued to Crede 1,450,000 shares of common stock upon conversion of 29,000 shares of Series C Preferred Stock. | ||
On January 3, 2014, the Company issued to Crede 1,500,000 shares of common stock upon conversion of 30,000 shares of Series C Preferred Stock. | ||
On January 8, 2014, the Company issued to Crede 1,300,000 shares of common stock upon conversion of the remaining 26,000 shares of Series C Preferred Stock. | ||
On April 9, 2014, the Company filed a Registered Direct Public Offering with the SEC in the form of F-1, which was subsequently amended on May 1, 2014 (F-1/A1), May 19, 2014 (F-1/A2) and May 21, 2014 (F-1A/3), offering 250,000 units at a purchase price of $100 per unit, with each unit consisting of one share of our Series D Convertible Preferred Stock, at par value $0.001 per share, and Series C Warrants to purchase 200% of the shares of common stock underlying the Series D Preferred Stock, at an exercise price of 130% of the Series D Preferred Stock conversion price on the initial issuance date of the Series D Preferred Stock, rounded to the nearest cent. Each share of Series D Preferred Stock to be convertible into a number of shares of common stock equal to $100 divided by the conversion price in effect at the time of conversion. The initial conversion price of each share of Series D Preferred Stock is to be the lesser of (i) $1.09 (the closing bid price of our common stock on May 16, 2014) and (ii) the greater of (1) the closing bid price of our common stock on the date immediately prior to the closing of this offering (which was expected to be May 28, 2014) and (2) $0.981. At the initial conversion price of $1.09 each share of Series D Preferred Stock would be convertible into 92 shares of common stock (rounding up to the nearest whole share) and the warrants included in each unit would be exercisable for 184 shares of common stock at an initial exercise price of $1.42 per share. The Series D Preferred Stock and Series C Warrants are immediately convertible and exercisable, as applicable, subject to certain ownership limitations. The Series C Warrants will expire on the fifth anniversary of the issuance date thereof. | ||
On May 28, 2014 the Company closed on the $25,000 offering of Series D Convertible Preferred Stock and Series C Warrants, following the execution of a Placement Agent agreement with Dawson James Securities, Inc. (“DJS”) on May 21, 2014. The securities sold were 250,000 units, at a purchase price of $100 per unit, with each unit consisting of one share of the Company’s Series D Convertible Preferred Stock and 184 Series C Warrants, exercisable for five years at an initial price of $1.42 per share. Each share of Series D Preferred Stock sold has a stated value of $100 and is initially convertible into 92 shares of common stock at the initial conversion price of $1.09. As a result, the Company received proceeds of $24,070, net of fees amounting to $930. | ||
On June 3, 2014, we issued an aggregate of 7,212,081 shares of common stock upon conversion of 78,612 shares of Series D Preferred Stock. | ||
On June 18, 2014, we issued 2,800,000 shares of common stock to Crede upon conversion of 30,520 shares of Series D Preferred Stock. | ||
On June 20, 2014, we issued an aggregate of 165,881 shares of common stock upon conversion of 1,808 shares of Series D Preferred Stock. | ||
On June 30, 2014, we issued an aggregate of 9,176 shares of common stock upon conversion of 100 shares of Series D Preferred Stock. | ||
On July 15, 2014, we received a letter from NASDAQ, notifying us that for the last 30 consecutive business days, the closing bid price of the Company’s common stock has been below $1.00 per share, the minimum closing bid price required by the continued listing requirements of NASDAQ set forth in Listing Rule 5550(a)(2). We have 180 calendar days, or until January 12, 2015, to regain compliance with Rule 5550(a)(2) (the "Compliance Period"). To regain compliance, the closing bid price of the Company’s common stock must be at least $1.00 per share for a minimum of 10 consecutive business days during the Compliance Period. The NASDAQ notification has no effect at this time on the listing of the Company's common stock on The NASDAQ Capital Market. | ||
On July 16, 2014, we received a letter from NASDAQ indicating that we were not in compliance with the applicable $2.5 million stockholders’ equity requirement, as set forth in Listing Rule 5550(b)(1) (the “Stockholders’ Equity Requirement”). The letter indicated that we had 45 days, or until September 2, 2014, to submit a plan to regain compliance. If our plan is accepted, NASDAQ has the discretion to grant us up to 180 days from July 16, 2014 to regain compliance. If NASDAQ does not accept our plan, we would have the opportunity to appeal that decision to a hearings panel. | ||
On August 13, 2014, we received a letter from NASDAQ indicating that we had achieved compliance with the Stockholders’ Equity Requirement for continued listing on The NASDAQ Capital Market and that the matter was closed. | ||
On August 27, 2014, the Company issued to Crede 2,000,000 shares of common stock upon conversion of 21,800 shares of Series D Preferred Stock. | ||
On September 11, 2014, the Company issued to Crede 2,000,000 shares of common stock upon conversion of 21,800 shares of Series D Preferred Stock. | ||
On September 18, 2014, the Company issued to Crede 4,000,000 shares of common stock upon conversion of 43,600 shares of Series D Preferred Stock. | ||
On October 6, 2014, the Company issued to Crede 4,000,000 shares of common stock upon conversion of 43,600 shares of Series D Preferred Stock. | ||
8,160 shares of Series D Preferred Stock is outstanding as of December 31, 2014. | ||
Common Stock Dividends | ||
During the year ended December 31, 2014, 2013 and 2012, the Company did not declare or pay any dividends. | ||
Taxes
Taxes | 12 Months Ended | |
Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||
Taxes | 17 | Taxes |
Under the laws of the Countries of the Company and its subsidiaries incorporation and/or vessels’ registration, the Company is not subject to tax on international shipping income; however, they are subject to registration and tonnage taxes, which have been included in Vessel operating expenses in the accompanying consolidated statement of operations. Pursuant to the Internal Revenue Code of the United States (the “Code”), U.S. source income from the international operations of ships is generally exempt from U.S. tax if the company operating the ships meets both of the following requirements, (a) the Company is organized in a foreign country that grants an equivalent exemption to corporations organized in the United States, and (b) either (i) more than 50% of the value of the Company’s stock is owned, directly or indirectly, by individuals who are “residents” of the Company’s country of organization or of another foreign country that grants an “equivalent exemption” to corporations organized in the United States (the “50% Ownership Test”) or (ii) the Company’s stock is “primarily and regularly traded on an established securities market” in its country of organization, in another country that grants an “equivalent exemption” to United States corporations, or in the United States (the “Publicly-Traded Test”). | ||
To complete the exemption process, the Company’s shipowning subsidiaries must file a U.S. tax return, state the basis of their exemption and obtain and retain documentation attesting to the basis of their exemptions. The Company’s subsidiaries completed the filing process for 2014 on or prior to the applicable tax filing deadline. All the Company’s ship-operating subsidiaries currently satisfy the Publicly-Traded Test based on the trading volume and the widely-held ownership of the Company’s shares, but no assurance can be given that this will remain so in the future, since continued compliance with this rule is subject to factors outside the Company’s control. Based on its U.S. source Shipping Income for 2012, 2013 and 2014, the Company would be subject to U.S. federal income tax of approximately $25, $nil and $12, respectively, in the absence of an exemption under Section 883. | ||
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | 18 | Subsequent Events |
On January 5, 2015, the Company sold to Himmil Investments Ltd., a non-U.S. investor, (“Himmil”), a $500 convertible promissory note, which matures a year from issuance and accrues interest at the rate of 8% per annum. The investor is entitled at any time to convert into common stock any portion of the outstanding and unpaid principal and accrued interest, provided that such conversion does not cause it to own more than 4.99% of the common stock of the Company, into shares of Common Stock. The conversion price is the lower of (i) $0.452 and (ii) 60% of the lowest daily VWAP on any trading day during the twenty-one consecutive trading days prior to conversion. Upon prior notice, the Company may prepay the Investor in cash, for 127.5% of any outstanding principal and interest remaining on the note. | ||
The Company has issued in aggregate 12,826,497 shares of common stock to Himmil Investments Ltd. upon full conversion of this convertible promissory note, plus accrued interest. | ||
On January 13, 2015, the Company received a letter from NASDAQ notifying that it has been provided an additional 180 calendar day period, or until July 13, 2015, to regain compliance with the minimum $1 bid price per share requirement. The Company’s eligibility for the additional period was based on meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the NASDAQ Capital Market with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. If at any time during this additional time period the closing bid price of the Company’s common stock is at least $1 per share for a minimum of 10 consecutive business days, NASDAQ will provide written confirmation of compliance and this matter will be closed. If compliance cannot be demonstrated by July 13, 2015, NASDAQ will provide written notification that the Company’s common stock will be delisted. At that time, the Company may appeal NASDAQ’s determination to a Hearings Panel (the “Panel”). If the Company appeals, it will be asked to provide a plan to regain compliance to the Panel. | ||
On January 21, 2015, the Company sold to KBM WORLDWIDE, Inc. (“KBM”) an 8% interest bearing convertible note for $154 due in nine months. One hundred eighty days following the date of this note, the holder has the right to convert all or any part of the outstanding and unpaid principal amount of the note into Company’s common shares at a 35% discount rate. | ||
On February 5, 2015, the Company sold to Himmil a $500 convertible promissory note, which matures a year from issuance and accrues interest at the rate of 8% per annum. The investor is entitled at any time to convert into common stock any portion of the outstanding and unpaid principal and accrued interest, provided that such conversion does not cause it to own more than 4.99% of the common stock of the Company, into shares of Common Stock. The conversion price is the lower of (i) $0.62 and (ii) 60% of the lowest daily VWAP on any trading day during the twenty-one consecutive trading days prior to conversion. Upon prior notice, the Company may prepay the Investor in cash, for 127.5% of any outstanding principal and interest remaining on the note. | ||
As of the date of this filing, the Company has issued in aggregate 16,294,221 shares of common stock to Himmil. upon conversion of $446 of this convertible promissory note. | ||
On February 5, 2015, Crede instructed the Company to transfer 588,049 Series B Warrants held by Crede to DJS. On the same date, DJS exercised Series B Warrants for 525,000 shares of common stock pursuant to the cashless exercise provisions thereof. The Company elected to issue, and has issued, 11,427,612 shares of common stock to Dawson James Securities Inc. in the aggregate pursuant to the cashless exercise formula set forth therein. | ||
On February 10, 2015, the Company commenced discussions with the owners of the M/V Nemorino with regard to amending the bareboat charter dated September 11, 2014 to adapt to current charter market conditions in relation to which an agreement was reached. However, on February 16, 2015, the Company received default notice referring to the bareboat charter on the basis that the charter hire of $149 due February 15, 2015 had not been paid. Similarly, on March 23, 2015, the Company received a second default notice referring to the above bareboat charter on the basis that the charter hire of $165 due March 15, 2015 had not been paid. On April 3, 2015 and while discussions with the owners of the M/V Nemorino were taking place, the Company received notice of termination of the bareboat charter dated September 11, 2014 in respect of the M/V Nemorino, claiming past unpaid and future hire, and other unspecified costs. On April 28, 2015, the Company received written threat of litigation in connection thereof. The Company considers that the owners of the M/V Nemorino did not have the right to terminate the bareboat charter and that their conduct evidences an intention no longer to be bound by the bareboat charter terms, amounting to a serious breach, entitling the company to terminate and counter-claim damages, both of which the company did. | ||
On February 11, 2015, the Company entered into a settlement agreement with Marine Plus S.A., a non-U.S. creditor, who agreed to accept 5,770,749 Company’s common shares as payment in full of unpaid invoices of the aggregate amount of $621. | ||
On March 5, 2015, the Company sold to Glengrove Small Cap Value, Ltd., a non-U.S. investor (“Glengrove”), a $750 convertible promissory note, which matures a year from issuance and accrues interest at the rate of 8% per annum. The investor is entitled at any time to convert into common stock any portion of the outstanding and unpaid principal and accrued interest, provided that such conversion does not cause it to own more than 4.99% of the common stock of the Company, into shares of Common Stock. The conversion price is the lower of (i) $0.452 and (ii) 60% of the lowest daily VWAP on any trading day during the twenty-one consecutive trading days prior to conversion. Upon prior notice, the Company may prepay the Investor in cash, for 127.5% of any outstanding principal and interest remaining on the note. As of April 27, 2015, the Company has issued in aggregate 7,003,984 shares of common stock to Glengrove upon conversion of $162 of this convertible promissory note. | ||
On March 10, 2015, DJS exercised Series B Warrants for 63,049 shares of common stock pursuant to the cashless exercise provisions thereof. The Company elected to issue, and has issued, 1,408,259 shares of common stock to Dawson James Securities Inc. in the aggregate pursuant to the cashless exercise formula set forth therein. | ||
On March 12, 2015, Crede instructed the Company to transfer 300,000 Series B Warrants held by Crede to DJS. On the next date, DJS exercised Series B Warrants for 100,000 shares of common stock pursuant to the cashless exercise provisions thereof. The Company elected to issue, and has issued, 2,278,267 shares of common stock to Dawson James Securities Inc. in the aggregate pursuant to the cashless exercise formula set forth therein. | ||
On March 18, 2015, DJS exercised Series B Warrants for 200,000 shares of common stock pursuant to the cashless exercise provisions thereof. The Company elected to issue, and has issued, 4,574,833 shares of common stock to Dawson James Securities Inc. in the aggregate pursuant to the cashless exercise formula set forth therein. | ||
On March 20, 2015, Crede instructed the Company to transfer 325,000 Series A Warrants held by Crede to DJS. On March 23, 2015, DJS exercised Series A Warrants for 325,000 shares of common stock pursuant to the cashless exercise provisions thereof. The Company elected to issue, and has issued, 9,525,343 shares of common stock to Dawson James Securities Inc. in the aggregate pursuant to the cashless exercise formula set forth therein. | ||
On March 27, 2015, the Company entered into settlement agreements with four vendors, non-U.S. creditors, who agreed to accept 2,910,740 Company’s common shares as payment in full of unpaid invoices of the aggregate amount of $262. | ||
On April 10, 2015, Crede instructed the Company to transfer 165,813 Series A Warrants held by Crede to DJS. On April 13, 2015, DJS exercised Series A Warrants for 165,813 shares of common stock pursuant to the cashless exercise provisions thereof. The Company elected to issue, and has issued, 6,910,358 shares of common stock to Dawson James Securities Inc. in the aggregate pursuant to the cashless exercise formula set forth therein. | ||
On April 16, 2015, the Company sold to Alderbrook Ship Finance Ltd., a non-U.S. investor, a $500 convertible promissory note, which matures a year from issuance and accrues interest at the rate of 8% per annum. The investor is entitled at any time to convert into common stock any portion of the outstanding and unpaid principal and accrued interest, provided that such conversion does not cause it to own more than 4.99% of the common stock of the Company, into shares of Common Stock. The conversion price is the lower of (i) $0.24 and (ii) 60% of the lowest daily VWAP on any trading day during the twenty-one consecutive trading days prior to conversion. Upon prior notice, the Company may prepay the investor in cash, for 127.5% of any outstanding principal and interest remaining on the note. | ||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Consolidation, Policy [Policy Text Block] | a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (or “U.S. GAAP”) and include in each of the three years in the period ended December 31, 2014 the accounts and operating results of the Company and its wholly-owned subsidiaries referred to in Note 1 above. All inter-company balances and transactions have been eliminated upon consolidation. FreeSeas as the holding company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Under ASC 810 “Consolidation” a voting interest entity is an entity in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make financial and operating decisions. The holding company consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%) of the voting interest. Variable interest entities (“VIE”) are entities as defined under ASC 810 that in general either do not have equity investors with voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its activities. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entity’s design and purpose and the reporting entity’s power, through voting or similar rights, to direct the activities of the other entity that most significantly impact the other entity’s economic performance. A controlling financial interest in a VIE is present when a company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE, or both. Only one reporting entity, known as the primary beneficiary, is expected to be identified as having a controlling financial interest and thus is required to consolidate the VIE. The Company evaluates all arrangements that may include a variable interest in an entity to determine if it may be the primary beneficiary, and would be required to include assets, liabilities and operations of a VIE in its consolidated financial statements. As of December 31, 2014 and 2013, no such interest existed. | ||||||||||
Use of Estimates, Policy [Policy Text Block] | b) Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | c) Concentration of Credit Risk: Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash equivalents, trade accounts receivable, insurance claims, prepayments and advances, and derivative contracts (interest rate swaps). The Company places its cash and cash equivalents, consisting mostly of deposits, with high credit qualified financial institutions. The Company monitors the credit risk regarding charterer’s turnover in order to review its reliance on individual charterers. The Company does not obtain rights to collateral to reduce its credit risk. The Company is exposed to credit risk in the event of non-performance by counter parties to derivative instruments; however, the Company limits its exposure by diversifying among counter parties with high credit ratings. Credit risk with respect to trade account receivable is considered high due to the fact that the Company’s total income is derived from a few charterers. For the year ended December 31, 2014, two charterers individually accounted for more than 10% of the Company’s voyage revenues, two charterers individually accounted for more than 10% of the Company’s voyage revenues for the year ended December 31, 2013, and one charterer individually accounted for more than 10% of the Company’s voyage revenues for the year ended December 31, 2012 as follows: | ||||||||||
Charterer | 2014 | 2013 | 2012 | ||||||||
A | 39 | % | 32 | % | 22 | % | |||||
B | 34 | % | 12 | % | Less than 10 | % | |||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | d) Foreign Currency Translation: The functional currency of the Company is the U.S. Dollar because the Company’s vessels operate in international shipping markets, and therefore primarily transact business in U.S. Dollars. The Company’s accounting records are maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars at the year-end exchange rates. Resulting gains or losses are included in other income/loss in the accompanying consolidated statements of operations. | ||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | e) Cash and Cash Equivalents: The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity of three months or less to be cash equivalents. | ||||||||||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | f) Restricted Cash: Restricted cash includes bank deposits that are required under the Company’s borrowing arrangements to be kept as part of the security required under the respective loan agreements. | ||||||||||
Receivables, Policy [Policy Text Block] | g) Trade Receivables, net: The amount shown as Trade Receivables at each balance sheet date includes receivables from charterers for hire, freight and demurrage billings, net of an allowance for doubtful debts. An estimate is made of the allowance for doubtful debts based on a review of all outstanding amounts at year end, and an allowance is made for any accounts which management believes are not recoverable. | ||||||||||
Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block] | h) Insurance Claims: Insurance claims comprise claims submitted and/or claims in the process of compilation for submission (claims pending) relating to hull and machinery or protection and indemnity insurance coverage. They are recorded as incurred on the accrual basis and represent the claimable expenses incurred, net of deductibles, the recovery of which is probable under the related insurance policies and the Company can make an estimate of the amount to be reimbursed. Any non-recoverable amounts are included in accrued liabilities and depending on their nature, are classified as operating expenses or voyage expenses in the statement of operations. The classification of insurance claims (if any) into current and non-current assets is based on management’s expectations as to their collection dates. | ||||||||||
Inventory, Policy [Policy Text Block] | i) Inventories: Inventories, which are comprised of bunkers and lubricants remaining on board of the vessels at year end, are valued at the lower of cost, as determined on a first-in, first-out basis, or market. | ||||||||||
Advances For Vessels Under Construction [Policy Text Block] | j) Advances for vessels under construction: This account includes milestone payments relating to the shipbuilding contracts with the shipyard, and various pre-purchase costs and expenses for which the recognition criteria are met. | ||||||||||
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | k) Vessels’ Cost: Vessels are stated at cost, which consists of the contract purchase price and any material expenses incurred upon acquisition (initial repairs, improvements, delivery expenses and other expenditures to prepare the vessel for her initial voyage). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels. Otherwise, these expenditures are charged to expense as incurred. | ||||||||||
Depreciation, Depletion, and Amortization [Policy Text Block] | l) Vessels’ Depreciation: The cost of the Company’s vessels is depreciated on a straight-line basis over the vessels’ remaining economic useful lives from the acquisition date, after considering the estimated residual value (vessel’s residual value is equal to the product of its lightweight tonnage and estimated scrap rate). Effective April 1, 2009, and following management’s reassessment of the useful lives of the Company’s assets, the fleets useful life was increased from 27 to 28 years since the date of initial delivery from the shipyard. Management’s estimate was based on the current vessels’ operating condition, as well as the conditions prevailing in the market for the same type of vessels. | ||||||||||
Vessels Held For Sale [Policy Text Block] | m) Vessels held for sale: It is the Company’s policy to dispose of vessels when suitable opportunities arise and not necessarily to keep them until the end of their useful life. The Company classifies assets and disposal groups of assets as being held for sale in accordance with ASC 360, “Property, Plant and Equipment,” when the following criteria are met: (i) management possessing the necessary authority has committed to a plan to sell the asset; (ii) the asset is immediately available for sale on an “as is” basis; (iii) an active program to find the buyer and other actions required to execute the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale within one year; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets or disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet the criteria to be held for sale and are classified in current assets on the consolidated balance sheet. | ||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | n) Impairment of Long-lived Assets: The Company follows the guidance under ASC 360, “Property, Plant and Equipment,” which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The standard requires that, long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed 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 should evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset which is determined based on management estimates and assumptions and by making use of available market data. The fair values are determined through Level 2 inputs of the fair value hierarchy as defined in ASC 820 “Fair value measurements and disclosures” and are derived principally from or by corroborated or observable market data. Inputs, considered by management in determining the fair value, include independent broker’s valuations, FFA indices, average charter hire rates and other market observable data that allow value to be determined. The Company evaluates the carrying amounts and periods over which long-lived assets are depreciated to determine if events have occurred which would require modification to their carrying values or useful lives. In evaluating useful lives and carrying values of long-lived assets, management reviews certain indicators of potential impairment, such as future undiscounted net operating cash flows, vessel sales and purchases, business plans and overall market conditions. In performing the recoverability tests the Company determines future undiscounted net operating cash flows for each vessel and compares it to the vessel’s carrying value. The future undiscounted net operating cash flows are determined by considering the Company’s alternative courses of action, estimated vessel’s utilization, its scrap value, the charter revenues from existing time charters for the fixed fleet days and an estimated daily time charter equivalent for the unfixed days over the remaining estimated useful life of the vessel, net of vessel operating expenses adjusted for inflation, and cost of scheduled major maintenance. When the Company’s estimate of future undiscounted net operating cash flows for any vessel is lower than the vessel’s carrying value, the carrying value is written down, by recording a charge to operations, to the vessel’s fair market value. | ||||||||||
As of December 31, 2014, the Company performed an impairment assessment of its long-lived assets by comparing the undiscounted net operating cash flows for each vessel to its respective carrying value. The significant factors and assumptions the Company used in each future undiscounted net operating cash flow analysis included, among others, operating revenues, commissions, off-hire days, dry-docking costs, operating expenses and management fee estimates. Revenue assumptions were based on contracted time charter rates up to the end of life of the current contract of each vessel as well as Forward Freight Agreements (FFAs) and ten year historical average time charter rates for the remaining life of the vessel after the completion of the current contracts. In addition, the Company used an annual operating expenses escalation factor and an estimate of off hire days. All estimates used and assumptions made were in accordance with the Company’s internal budgets and historical experience of the shipping industry. The Company’s assessment concluded that no impairment existed as of December 31, 2014, as the vessels’ future undiscounted net operating cash flows exceeded their carrying value by $11,179. If the Company were to utilize the most recent five year historical average rates, three year historical average rates or one year historical average rates, would recognize an impairment loss of $17,982 (using the most recent five year historical average rates) and $27,077 (using the most recent three year or one year historical average rates). | |||||||||||
Accounting For Special Survey And Dry Docking Costs [Policy Text Block] | o) Accounting for Special Survey and Dry-docking Costs: Effective as of January 1, 2014, the Company changed the deferral method of accounting for special survey and dry-docking costs whereby actual costs incurred were deferred and amortized over periods of five and two and a half years, respectively. The Company now follows the direct expense method of accounting for special survey and dry-docking costs whereby costs are expensed in the period incurred for the vessels. | ||||||||||
Financing Costs Policy [Policy Text Block] | p) Financing Costs: Fees incurred for obtaining new loans are deferred and amortized over the loans’ respective repayment periods, using the effective interest rate method. These charges are included in the balance sheet line item Deferred Charges. Any unamortized balance of costs relating to loans repaid or refinanced is expensed in the period the repayment or refinancing is made, if the refinancing is deemed to be a debt extinguishment under the provision of ASC 470-50 “Debt: Modifications and Extinguishments.” | ||||||||||
Revenue Recognition, Policy [Policy Text Block] | q) Unearned Revenue: Unearned revenue includes cash received prior to the balance sheet date and is related to revenue earned after such date. These amounts are recognized as revenue over the voyage or charter period. | ||||||||||
Derivatives, Policy [Policy Text Block] | r) Interest Rate Swaps: The Company used interest rate swaps to manage net exposure to interest rate changes related to its borrowings. Such swap agreements, designated as “economic hedges” were recorded at fair value with changes in the derivatives’ fair value recognized in earnings unless specific hedge accounting criteria were met. During the years ended December 31, 2012, 2013 and 2014, there was no derivative transaction meeting such hedge accounting criteria; therefore the change in their fair value was recognized in earnings. | ||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | s) Financial Instruments: The principal financial assets of the Company consist of cash and cash equivalents and restricted cash, trade receivables (net of allowance), insurance claims, prepayments and advances. The principal financial liabilities of the Company consist of accounts payable, accrued liabilities, deferred revenue, long-term debt, and interest-rate swaps. The carrying amounts reflected in the accompanying consolidated balance sheets of financial assets and liabilities, approximate their respective fair values. | ||||||||||
Fair Value Measurement, Policy [Policy Text Block] | t) Fair Value Measurements: The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures” which defines, and provides guidance as to the measurement of, fair value. ASC 820 creates a hierarchy of measurement and indicates that, when possible, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets and the lowest priority (Level 3) to unobservable data, for example, the reporting entity’s own data. Under the standard, fair value measurements are separately disclosed by level within the fair value hierarchy. ASC 820 applies when assets or liabilities in the financial statements are to be measured at fair value, but does not require additional use of fair value beyond the requirements in other accounting principles. | ||||||||||
Fair Value Option [Policy Text Block] | u) Fair value option: In February, 2007, the FASB issued ASC 825, “Financial Instruments,” which permits companies to report certain financial assets and financial liabilities at fair value. ASC 825 was effective for the Company as of January 1, 2008 at which time the Company could elect to apply the standard prospectively and measure certain financial instruments at fair value. The Company evaluated the guidance contained in ASC 825 and elected not to report any existing financial assets or liabilities at fair value that are not already reported at fair value, therefore the adoption of the statement had no impact on its financial position and results of operations. The Company retains the ability to elect the fair value option for certain future assets and liabilities acquired under this pronouncement. | ||||||||||
Revenue Recognition Deferred Revenue And Expenses [Policy Text Block] | v) Accounting for Revenue and Expenses: Revenue is recorded when services are rendered, the Company has a signed charter agreement or other evidence of an arrangement, the price is fixed or determinable, and collection is reasonably assured. A voyage charter involves the carriage of a specific amount and type of cargo from specific load port(s) to specific discharge port(s), subject to various cargo handling terms, in return for payment of an agreed upon freight rate per ton of cargo. A time charter involves placing a vessel at the charterers’ disposal for a period of time during which the charterer uses the vessel in return for the payment of a specified daily hire rate. Short period charters for less than three months are referred to as spot charters. Time charters extending three months to a year are generally referred to as medium term charters. All other time charters are considered long term. Voyage revenues for the transportation of cargo are recognized ratably over the estimated relative transit time of each voyage. A voyage is deemed to commence when a vessel is available for loading of its next fixed cargo and is deemed to end upon the completion of the discharge of the current cargo. Revenues from time chartering of vessels are accounted for as operating leases and are thus recognized on a straight line basis as the average revenue over the rental periods of such charter agreements, as service is provided. Voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid for by the charterer under time charter arrangements or by the Company under voyage charter arrangements, except for commissions, which are always paid for by the Company, regardless of charter type. All voyage and vessel operating expenses are expensed as incurred, except for commissions. Commissions are deferred over the related voyage charter period to the extent revenue has been deferred since commissions are earned as the Company’s revenues are earned. Probable losses on voyages in progress are provided for in full at the time such losses can be estimated. | ||||||||||
Profit Sharing Arrangements [Policy Text Block] | w) Profit Sharing Arrangements: From time to time, the Company has entered into profit sharing arrangements with its charterers, whereby the Company may have received additional income at an agreed percentage of net earnings earned by such charterer, where those earnings are over the base rate of hire and settled periodically during the term of the charter agreement. Revenues generated from the profit sharing arrangements are recorded in the period they are earned. | ||||||||||
Maintenance Cost, Policy [Policy Text Block] | x) Repairs and Maintenance: All repair and maintenance expenses, including major overhauling and underwater inspection expenses, are charged against income as incurred and are included in vessel operating expenses in the accompanying consolidated statements of operations. | ||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | y) Stock-Based Compensation: Following the provisions of ASC 718, “Compensation- Stock Compensation” the Company recognizes all share-based payments to employees, including grants of employee stock options, in the consolidated statements of operations based on their fair values on the grant date. Compensation cost on stock based awards with graded vesting is recognized on an accelerated basis as though each separately vesting portion of the award was in substance, a separate award. | ||||||||||
Earnings Per Share, Policy [Policy Text Block] | z) Earnings/(Losses) per Share: Basic earnings/(losses) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common stock were exercised. Dilution has been computed by the treasury stock method whereby all of the Company’s dilutive securities (warrants, options and restricted shares) are assumed to be exercised and the proceeds used to repurchase common shares at the weighted average market price of the Company’s common stock during the relevant periods. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted earnings/(losses) per share computation unless such inclusion would be anti-dilutive. | ||||||||||
Segment Reporting, Policy [Policy Text Block] | aa) Segment Reporting: The Company reports financial information and evaluates its operations by total charter revenues. The Company does not have discrete financial information to evaluate the operating results for each type of charter. Although revenue can be identified for these types of charters, management does not identify expenses, profitability or other financial information for these charters. As a result, management, including the chief operating decision makers, review operating results solely by revenue per day and operating results of the fleet and thus the Company has determined that it operates under one reportable segment. Furthermore, when the Company charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographic information is impracticable. | ||||||||||
Subsequent Events, Policy [Policy Text Block] | bb) Subsequent Events: The Company evaluates subsequent events or transactions up to the date in which the financial statements are issued according to the requirements of ASC 855. | ||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | cc) Recent Accounting Pronouncements: | ||||||||||
In February 2015, the FASB issued new guidance to improve consolidation guidance for legal entities (Accounting Standards Update (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis), effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The new standard is intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amendments in the ASU affect the consolidation evaluation for reporting organizations. In addition, the amendments in this ASU simplify and improve current GAAP by reducing the number of consolidation models. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. | |||||||||||
In January 2015, the FASB issued ASU No. 2015-01 "Income Statement—Extraordinary and Unusual Items: Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items". The concept of extraordinary items is removed and instead items that are both unusual in nature and infrequently occurring should be presented within income from continuing operations or disclosed in notes to financial statements because those items satisfy the conditions for an item that is unusual in nature or infrequently occurring. The new accounting guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted. Companies have the option to apply the amendments of ASU No. 2015-01 either prospectively or retrospectively. | |||||||||||
In August 2014, the FASB issued ASU No. 2014-15 "Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern". ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 requires an entity's management to evaluate at each reporting period based on the relevant conditions and events that are known at the date of financial statements are issued, whether there are conditions or events, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued and to disclose the necessary information. The new accounting guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. | |||||||||||
In June 2014, the FASB issued Accounting Standards Update 2014-12, “Accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period,” (“ASU 2014-12”) which requires performance-based awards with a performance target that affects vesting and that could be achieved after an employee completes the requisite service period to be accounted for as a performance condition. If performance targets are clearly defined and it is probable that the performance condition will be achieved, stock-based expense should be recognized over the remaining requisite service period. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the provisions of the ASU and assessing the potential effect on the Company’s consolidated financial position or results of operations. | |||||||||||
In June 2014, the FASB issued new guidance on transfers and servicing ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure), effective prospectively for fiscal years beginning after December 15, 2014 and interim periods within those years. The new guidance requires that repurchase-to-maturity transactions and repurchase financing arrangements be accounted for as secured borrowings and provides for enhanced disclosures, including the nature of collateral pledged and the time to maturity. Certain interim period disclosures for repurchase agreements and securities lending transactions are not required until the second quarter of 2015. The adoption of this new guidance will not have a material impact on the Company’s consolidated financial statements. | |||||||||||
In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014-09, Revenue from Contracts with Customers (Topic 606)), effective retrospectively for fiscal years beginning after December 15, 2016 and interim periods within those years. Early adoption of this standard is not permitted. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. | |||||||||||
In April 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-08 "Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" changing the presentation of discontinued operations on the statements of income and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component meets the criteria to be classified as held-for-sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2014. Early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. | |||||||||||
Basis_of_Presentation_and_Gene1
Basis of Presentation and General Information (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
Schedule of Subsidiaries Ownership Interests [Table Text Block] | During the year ended December 31, 2014, the Company owned four Handysize dry bulk carriers and operated four Handysize and one Handymax dry bulk carriers. As of December 31, 2014, FreeSeas is the sole owner of all outstanding shares of the following subsidiaries: | |||||||||||||||||||||
Company | % Owned | M/V | Type | Dwt | Year Built/ | Date of | Date of | Date of | Date of Initiation of | |||||||||||||
Expected | Acquisition | Disposal | Contract | Bareboat Charter | ||||||||||||||||||
Year of | Termination | |||||||||||||||||||||
Delivery | ||||||||||||||||||||||
Adventure Two S.A. | 100 | % | Free Destiny | Handysize | 25,240 | 1982 | 8/4/04 | 8/27/10 | N/A | N/A | ||||||||||||
Adventure Three S.A. | 100 | % | Free Envoy | Handysize | 26,318 | 1984 | 9/29/04 | 5/13/11 | N/A | N/A | ||||||||||||
Adventure Four S.A. | 100 | % | Free Fighter | Handysize | 38,905 | 1982 | 6/14/05 | 4/27/07 | N/A | N/A | ||||||||||||
Adventure Five S.A. | 100 | % | Free Goddess | Handysize | 22,051 | 1995 | 10/30/07 | N/A | N/A | N/A | ||||||||||||
Adventure Six S.A. | 100 | % | Free Hero | Handysize | 24,318 | 1995 | 7/3/07 | N/A | N/A | N/A | ||||||||||||
Adventure Seven S.A. | 100 | % | Free Knight | Handysize | 24,111 | 1998 | 3/19/08 | 2/18/14 | N/A | N/A | ||||||||||||
Adventure Eight S.A. | 100 | % | Free Jupiter | Handymax | 47,777 | 2002 | 9/5/07 | 9/16/14 | N/A | N/A | ||||||||||||
Adventure Nine S.A. | 100 | % | Free Impala | Handysize | 24,111 | 1997 | 4/2/08 | 9/24/14 | N/A | N/A | ||||||||||||
Adventure Ten S.A. | 100 | % | Free Lady | Handymax | 50,246 | 2003 | 7/7/08 | 11/8/11 | N/A | N/A | ||||||||||||
Adventure Eleven S.A. | 100 | % | Free Maverick | Handysize | 23,994 | 1998 | 9/1/08 | N/A | N/A | N/A | ||||||||||||
Adventure Twelve S.A. | 100 | % | Free Neptune | Handysize | 30,838 | 1996 | 8/25/09 | N/A | N/A | N/A | ||||||||||||
Adventure Fourteen S.A. | 100 | % | Hull 1 | Handysize | 33,600 | 2012 | N/A | N/A | 4/28/12 | N/A | ||||||||||||
Adventure Fifteen S.A. | 100 | % | Hull 2 | Handysize | 33,600 | 2012 | N/A | N/A | 6/4/12 | N/A | ||||||||||||
Nemorino Shipping S.A. | 100 | % | Nemorino | Handymax | 47,777 | 2002 | N/A | N/A | N/A | 9/16/14 | ||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | For the year ended December 31, 2014, two charterers individually accounted for more than 10% of the Company’s voyage revenues, two charterers individually accounted for more than 10% of the Company’s voyage revenues for the year ended December 31, 2013, and one charterer individually accounted for more than 10% of the Company’s voyage revenues for the year ended December 31, 2012 as follows: | ||||||||||
Charterer | 2014 | 2013 | 2012 | ||||||||
A | 39 | % | 32 | % | 22 | % | |||||
B | 34 | % | 12 | % | Less than 10 | % | |||||
Vessels_net_Tables
Vessels, net (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Vessels, Net [Abstract] | |||||||||||
Property, Plant and Equipment [Table Text Block] | Vessels Cost | Accumulated | Net Book | ||||||||
Depreciation | Value | ||||||||||
31-Dec-11 | $ | 103,137 | $ | -21,718 | $ | 81,419 | |||||
Depreciation | — | -5,729 | -5,729 | ||||||||
31-Dec-12 | $ | 103,137 | $ | -27,447 | $ | 75,690 | |||||
Depreciation | — | -5,727 | -5,727 | ||||||||
Reclassified to vessel held for sale | -3,466 | — | -3,466 | ||||||||
Vessel impairment charge | -23,978 | — | -23,978 | ||||||||
Reclassified to vessels, net | 29,315 | — | 29,315 | ||||||||
31-Dec-13 | $ | 105,008 | $ | -33,174 | $ | 71,834 | |||||
Depreciation | — | -4,896 | -4,896 | ||||||||
Disposal of vessels | -29,180 | 12,726 | -16,454 | ||||||||
Leased vessel | 12,250 | -424 | 11,826 | ||||||||
31-Dec-14 | $ | 88,078 | $ | -25,768 | $ | 62,310 | |||||
Vessels_held_for_sale_Tables
Vessels held for sale (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Vessels held for sale [Abstract] | |||||
Schedule of Vessels Held for Sale [Table Text Block] | Net Book | ||||
Value | |||||
31-Dec-11 | $ | 45,272 | |||
Vessel impairment charge | -12,480 | ||||
31-Dec-12 | $ | 32,792 | |||
Vessel impairment charge | -3,477 | ||||
Reclassified to vessels, net | -29,315 | ||||
Reclassified to vessel held for sale | 3,465 | ||||
31-Dec-13 | $ | 3,465 | |||
Vessel Sold | -3,465 | ||||
31-Dec-14 | $ | - | |||
Capital_Lease_Tables
Capital Lease (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases, Capital [Abstract] | ||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The following table summarizes our bareboat charter obligations p.a.: | |||||||
Year | Lease Payment p.a. | Capital Lease Reduction | Interest Expense | |||||
0 | -12,250 | |||||||
Principal | Interest | |||||||
1 | 1,943 | 1,214 | 729 | |||||
2 | 1,943 | 1,214 | 729 | |||||
3 | 1,943 | 1,214 | 729 | |||||
4 | 1,943 | 1,214 | 729 | |||||
5 | 1,943 | 1,214 | 729 | |||||
6 | 1,943 | 1,214 | 729 | |||||
7 | 1,943 | 1,214 | 729 | |||||
Total | 13,601 | 8,498 | 5,103 | |||||
Deferred_Charges_Tables
Deferred Charges (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Deferred Costs [Abstract] | ||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Dry Docking | Special Survey | Financing | Total | ||||||||||
Costs– Non | Costs – Non | Costs- | ||||||||||||
Current | Current | Current | ||||||||||||
31-Dec-11 | $ | 531 | $ | 355 | $ | 330 | $ | 1,216 | ||||||
Additions | — | — | 3,303 | 3,303 | ||||||||||
Write-offs | — | — | -191 | -191 | ||||||||||
Vessels held for sale | 112 | 189 | — | 301 | ||||||||||
Amortization | -628 | -360 | -555 | -1,543 | ||||||||||
31-Dec-12 | $ | 15 | $ | 184 | $ | 2,887 | $ | 3,086 | ||||||
Additions | 167 | — | — | 167 | ||||||||||
Write-offs | — | — | -939 | -939 | ||||||||||
Vessels held for sale | — | — | — | — | ||||||||||
Amortization | -16 | -184 | -904 | -1,104 | ||||||||||
31-Dec-13 | $ | 166 | $ | — | $ | 1,044 | $ | 1,210 | ||||||
Additions | — | — | — | — | ||||||||||
Write-offs | -166 | — | -801 | -967 | ||||||||||
Amortization | - | - | -226 | -226 | ||||||||||
31-Dec-14 | $ | - | $ | - | $ | 16 | $ | 16 | ||||||
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Financial Instruments and Fair Value Measurements [Abstract] | ||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following tables present information with respect to the fair values of derivatives reflected in the balance sheet on a gross basis by transaction. The tables also present information with respect to gains and losses on derivative positions reflected in the Statement of Operations. | |||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Derivative | Balance Sheet Location | Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Interest rate swaps | Derivative financial instruments - current portion | $ | — | $ | — | $ | — | $ | 200 | |||||||
Derivative financial instruments - net of current portion | — | — | — | — | ||||||||||||
Total derivatives | $ | — | $ | — | $ | — | $ | 200 | ||||||||
The Effect of Derivative Instruments on the Statement of Operations for the Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||
Amount | ||||||||||||||||
Derivative | Loss Recognized on Derivative Location | 2014 | 2013 | 2012 | ||||||||||||
Interest rate swaps | Loss on derivative instruments | $ | 21 | $ | 40 | $ | 85 | |||||||||
Total | $ | 21 | $ | 40 | $ | 85 | ||||||||||
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes the valuation of liabilities measured at fair value on a recurring basis as of the valuation date: | |||||||||||||||
December 31, | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | |||||||||||||||
Assets | ||||||||||||||||
Recurring measurements: | 2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Interest rate swap contracts | $ | — | $ | — | $ | — | $ | — | ||||||||
Total | $ | — | $ | — | $ | — | $ | — | ||||||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | The following table summarizes the valuation of assets measured at fair value on a non-recurring basis as of the valuation date: | |||||||||||||||
December 31, | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | |||||||||||||||
Assets | ||||||||||||||||
Non -Recurring measurements: | 2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Vessel held for sale | $ | 3,466 | $ | — | $ | 3,465 | $ | — | ||||||||
Total | $ | 3,466 | $ | — | $ | 3,465 | $ | — | ||||||||
Non -Recurring measurements: | December 31, | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
2014 | ||||||||||||||||
Vessel held for sale | $ | — | $ | — | $ | — | $ | — | ||||||||
Total | $ | — | $ | — | $ | — | $ | — | ||||||||
Bank_Loan_current_portion_Tabl
Bank Loan - current portion (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Schedule of Debt [Table Text Block] | December 31, 2013 | ||||||||||
Lender | Current | Long- | Total | ||||||||
Portion | term | ||||||||||
portion | |||||||||||
Credit Suisse | $ | 36,450 | $ | - | $ | 36,450 | |||||
NBG | $ | 23,237 | $ | - | $ | 23,237 | |||||
Total | $ | 59,687 | $ | - | $ | 59,687 | |||||
Schedule of Short-term Debt [Table Text Block] | As of December 31, 2014, the Company’s bank debt is as follows: | ||||||||||
NBG | Credit Suisse | ||||||||||
31-Dec-13 | $ | 23,237 | $ | 36,450 | |||||||
Additions | $ | - | $ | - | |||||||
Payments | $ | -5,639 | $ | -21,450 | |||||||
Debt forgiveness | $ | - | $ | -15,000 | |||||||
31-Dec-14 | $ | 17,598 | $ | - | |||||||
Schedule Of Repayment Terms Of Loan Outstanding [Table Text Block] | The remaining repayment terms of the loan outstanding as of December 31, 2014 is as follows: | ||||||||||
Lender | Vessel | Remaining Repayment Terms | |||||||||
National Bank of Greece | M/V Free Neptune | Seven quarterly installments of $837.5 and a balloon payment of $11,735.5, payable together with the last installment due on December 16, 2016. | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | The following table summarizes our contractually committed obligations and their maturity dates as of December 31, 2014: | ||||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||||
(Dollars in thousands) | Less | More | |||||||||||||||||||||
than 1 | 2- | 3- | 4- | 5- | than 5 | ||||||||||||||||||
Total | year | year | year | year | year | years | |||||||||||||||||
(U.S. dollars in thousands) | |||||||||||||||||||||||
Interest on variable-rate debt | 480 | 480 | — | — | — | — | — | ||||||||||||||||
Services fees to the Manager | 6,540 | 1,635 | 1,635 | 1,635 | 1,635 | — | — | ||||||||||||||||
Management fees to the Managers | 12,407 | 1,138 | 1,138 | 1,138 | 1,138 | 1,138 | 6,717 | ||||||||||||||||
Total obligations | $ | 19,427 | $ | 3,253 | $ | 2,773 | $ | 2,773 | $ | 2,773 | $ | 1,138 | $ | 6,717 | |||||||||
Loss_per_Share_and_Series_A_B_1
Loss per Share and Series A, B and C Warrants (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings(Losses) Per Share [Abstract] | ||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Presented below is a table reflecting the activity in the Series A Warrants, Series B Warrants and Series C Warrants from January 1, 2014 through December 31, 2014: | |||||||||||
Series A | Series B | Series C | Exercise | |||||||||
Warrants | Warrants | Warrants | Total | Price | ||||||||
1-Jan-14 | 5,000,000 | 2,500,000 | 7,500,000 | $2.60 (Series A&B) | ||||||||
Series C warrants issued with $25,000 offering | — | — | 46,000,000 | 46,000,000 | $1.42 (Series C) | |||||||
Cashless Warrants exercised | — | -1,509,187 | -10,032,130 | -11,541,317 | ||||||||
31-Dec-14 | 5,000,000 | 990,813 | 35,967,870 | 41,958,683 | ||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | The components of the denominator for the calculation of basic loss per share and diluted loss per share for the years ended December 31, 2014, 2013 and 2012, respectively, are as follows: | |||||||||||
For the year | For the year | For the year | ||||||||||
ended | ended | ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator | ||||||||||||
Net loss – basic and diluted | $ | -12,688 | $ | -48,705 | $ | -30,888 | ||||||
Basic earnings per share denominator: | ||||||||||||
Weighted average common shares outstanding | 49,988,956 | 6,527,240 | 167,435 | |||||||||
Diluted earnings per share denominator: | ||||||||||||
Weighted average common shares outstanding | 49,988,956 | 9,351,960 | 167,435 | |||||||||
Dilutive common shares: | ||||||||||||
Options | — | — | — | |||||||||
Warrants | — | 2,824,720 | — | |||||||||
Restricted shares | — | — | — | |||||||||
Dilutive effect | — | 2,824,720 | — | |||||||||
Weighted average common shares – diluted | 49,988,956 | 9,351,960 | 167,435 | |||||||||
Basic loss per common share | $ | -0.25 | $ | -7.46 | $ | -184.48 | ||||||
Diluted loss per common share | $ | -0.25 | $ | -5.21 | $ | -184.48 | ||||||
Basis_of_Presentation_and_Gene2
Basis of Presentation and General Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
MetricTon | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Nemorino |
Type Of Ship | Handymax |
Dead Weight Tonnage | 47,777 |
Year Built | 2002 |
Date Of Initiation Of Bareboat Charter | 16-Sep-14 |
Adventure Two [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Destiny |
Type Of Ship | Handysize |
Dead Weight Tonnage | 25,240 |
Year Built | 1982 |
Date Of Acquisition | 4-Aug-04 |
Date Of Disposal | 27-Aug-10 |
Adventure Three [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Envoy |
Type Of Ship | Handysize |
Dead Weight Tonnage | 26,318 |
Year Built | 1984 |
Date Of Acquisition | 29-Sep-04 |
Date Of Disposal | 13-May-11 |
Adventure Four [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Fighter |
Type Of Ship | Handysize |
Dead Weight Tonnage | 38,905 |
Year Built | 1982 |
Date Of Acquisition | 14-Jun-05 |
Date Of Disposal | 27-Apr-07 |
Adventure Five [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Goddess |
Type Of Ship | Handysize |
Dead Weight Tonnage | 22,051 |
Year Built | 1995 |
Date Of Acquisition | 30-Oct-07 |
Adventure Six [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Hero |
Type Of Ship | Handysize |
Dead Weight Tonnage | 24,318 |
Year Built | 1995 |
Date Of Acquisition | 3-Jul-07 |
Adventure Seven [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Knight |
Type Of Ship | Handysize |
Dead Weight Tonnage | 24,111 |
Year Built | 1998 |
Date Of Acquisition | 19-Mar-08 |
Date Of Disposal | 18-Feb-14 |
Adventure Eight [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Jupiter |
Type Of Ship | Handymax |
Dead Weight Tonnage | 47,777 |
Year Built | 2002 |
Date Of Acquisition | 5-Sep-07 |
Date Of Disposal | 16-Sep-14 |
Adventure Nine [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Impala |
Type Of Ship | Handysize |
Dead Weight Tonnage | 24,111 |
Year Built | 1997 |
Date Of Acquisition | 2-Apr-08 |
Date Of Disposal | 24-Sep-14 |
Adventure Ten [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Lady |
Type Of Ship | Handymax |
Dead Weight Tonnage | 50,246 |
Year Built | 2003 |
Date Of Acquisition | 7-Jul-08 |
Date Of Disposal | 8-Nov-11 |
Adventure Eleven [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Maverick |
Type Of Ship | Handysize |
Dead Weight Tonnage | 23,994 |
Year Built | 1998 |
Date Of Acquisition | 1-Sep-08 |
Adventure Twelve [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Free Neptune |
Type Of Ship | Handysize |
Dead Weight Tonnage | 30,838 |
Year Built | 1996 |
Date Of Acquisition | 25-Oct-09 |
Adventure Fourteen [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Hull 1 |
Type Of Ship | Handysize |
Dead Weight Tonnage | 33,600 |
Year Built | 2012 |
Date Of Contract Termination | 28-Apr-12 |
Adventure Fifteen [Member] | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Type Of Motor Vessel | Hull 2 |
Type Of Ship | Handysize |
Dead Weight Tonnage | 33,600 |
Year Built | 2012 |
Date Of Contract Termination | 4-Jun-12 |
Basis_of_Presentation_and_Gene3
Basis of Presentation and General Information (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 24, 2014 | Sep. 16, 2014 |
Entity Incorporation, Date of Incorporation | 23-Apr-04 | ||||
Stockholders' Equity, Reverse Stock Split | 1 for 10 | five-to-one reverse stock split | |||
M V Free Impala [Member] | |||||
Sales Revenue, Goods, Gross | $3,600 | ||||
M V Free Jupiter [Member] | |||||
Vessel Charter Rate Per Day | 5,325 | ||||
Sales Revenue, Goods, Gross | 12,250 | ||||
Deposits Assets, Current | $3,750 |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Charterer A [Member] | |||
Concentration Risk, Benchmark Description | 39% | 32% | 22% |
Charterer B [Member] | |||
Concentration Risk, Benchmark Description | 34% | 12% | Less than 10% |
Significant_Accounting_Policie4
Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Method Investment, Ownership Percentage | 50.00% | ||
Percentage Of Charterers Revenue In Voyage Revenue | more than 10% | more than 10% | more than 10% |
Asset Impairment Charges | $3,477 | ||
Other Operating Activities, Cash Flow Statement | 11,179 | 10,014 | |
Minimum [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 27 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 28 years | ||
Five Year Historical Average Rates [Member] | |||
Asset Impairment Charges | 17,982 | 19,685 | |
Three or One Year Historical Average Rates [Member] | |||
Asset Impairment Charges | $27,077 | $30,340 |
Going_Concern_Details_Textual
Going Concern (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
In Thousands, unless otherwise specified | 28-May-14 | 30-May-14 | Jan. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 17, 2014 | Sep. 24, 2014 | Feb. 22, 2014 |
Interest Paid | $960 | $124 | $1,089 | ||||||
Working Capital Deficit | 30,849 | 59,041 | |||||||
Net Income (Loss) Attributable to Parent | 12,688 | 48,705 | 30,888 | ||||||
Description Of Cash Payment In Final Settlement Of Obligations | Pursuant to the term sheet, Credit Suisse agreed to accept a cash payment of approximately $22,000 in full and final settlement of all of the Companys obligations to the Bank and the Bank would forgive the remaining outstanding balance of approximately $15,000. | ||||||||
Offering Convertible Preferred Stock and Warrants | 25,000 | ||||||||
Repayments of Long-term Debt | 22,636 | ||||||||
National Bank of Greece [Member] | |||||||||
Repayments of Debt | 5,639 | 2,700 | 3,300 | ||||||
Sales Revenue, Goods, Gross | 3,600 | ||||||||
Repayment Installments And Accrued Interest | 8,896 | ||||||||
Description Of Cash Payment In Final Settlement Of Obligations | Pursuant to the terms, NBG agreed to accept a cash payment of $22,000 no later than December 31, 2014, in full and final settlement of all of the Companys obligations to NBG and NBG would forgive the remaining outstanding balance of approximately $4,700. | ||||||||
Credit Suisse Facility [Member] | |||||||||
Line of Credit Facility Accrued Interest | 354 | ||||||||
Line of Credit Facility Interest Rate Swap | 256 | ||||||||
Interest Paid | 115 | ||||||||
Repayments of Debt | 21,450 | ||||||||
Repayments of Long-term Debt | 22,636 | ||||||||
Credit Suisse Facility [Member] | February 3 2014 [Member] | |||||||||
Line of Credit Facility Interest Rate Swap | $201 |
Related_Party_Transactions_Det
Related Party Transactions (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||
Oct. 14, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 24, 2014 | Sep. 16, 2014 | Feb. 18, 2014 | Oct. 31, 2012 | Apr. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Mar. 31, 2012 | Dec. 31, 2011 | |
Stock Authorized for Issuance in Lieu of Related Party Fee | 991,658 | ||||||||||||||
Due from Related Parties, Current | $433,000 | $1,167,000 | |||||||||||||
General and Administrative Expense, Total | 4,104,000 | 3,904,000 | 4,443,000 | ||||||||||||
M V Free Impala [Member] | |||||||||||||||
Sales Revenue, Goods, Gross | 3,600,000 | ||||||||||||||
Commission Expenses On Product | 36,000 | 104,000 | 174,000 | 36,000 | |||||||||||
M V Free Jupiter [Member] | |||||||||||||||
Sales Revenue, Goods, Gross | 12,250,000 | ||||||||||||||
Commission Expenses On Product | 122,000 | ||||||||||||||
Vessel Charter Rate Per Day | 5,325,000 | ||||||||||||||
M V Free Knight [Member] | |||||||||||||||
Sales Revenue, Goods, Gross | 3,600,000 | ||||||||||||||
Commission Expenses On Product | 36,000 | ||||||||||||||
Manager [Member] | |||||||||||||||
Related Party Monthly Technical Management Fee | 18,975 | ||||||||||||||
Related Party Monthly Services Fee | 136,000 | ||||||||||||||
Maximum Euro Exchange Rate for Monthly Technical Management Fee | 1.3 | ||||||||||||||
Maximum Euro Exchange Rate for Monthly Services Fee | 1.35 | ||||||||||||||
Manager Fee Percentage on Gross Freight | 1.25% | ||||||||||||||
Manager Commission Percentage on Gross Purchase Sale Price | 1.00% | ||||||||||||||
Termination Fee | 71,627,000 | ||||||||||||||
Stock Authorized for Issuance in Lieu of Related Party Fee | 43,930 | 33,214 | |||||||||||||
Management Fees Payable | 2,168,000 | 2,168,000 | 807,000 | 809,000 | 926,000 | ||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 3,528,000 | ||||||||||||||
Stock Based Compensation Expense Included In Management and Services Fee | 474,000 | ||||||||||||||
General and Administrative Expense, Total | 148,000 | 147,000 | 143,000 | ||||||||||||
Manager [Member] | Management Fees [Member] | |||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 1,605,000 | 1,490,000 | 2,404,000 | ||||||||||||
Manager [Member] | Services Fees [Member] | |||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 1,650,000 | 1,499,000 | 1,985,000 | ||||||||||||
Manager [Member] | Superintendent Fees [Member] | |||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 265,000 | 131,000 | 134,000 | ||||||||||||
Manager [Member] | Other Expenses [Member] | |||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 37,000 | ||||||||||||||
Manager [Member] | Criteria for Monthly Techincal Management Fee [Member] | |||||||||||||||
Maximum Euro Exchange Rate for Monthly Technical Management Fee | 1.3 | ||||||||||||||
Maximum Euro Exchange Rate for Monthly Services Fee | 1.35 | ||||||||||||||
Non Executive Member of Board of Directors [Member] | |||||||||||||||
Stock Authorized for Issuance in Lieu of Related Party Fee | 991,658 | 6,536 | 3,993 | 34,326 | 34,326 | 34,326 | |||||||||
Management Fees Payable | 120,000 | 120,000 | 120,000 | 155,000 | |||||||||||
Gain On Stock Issued To Manager Included In Management And Services Fee | 954,000 | ||||||||||||||
Non Executive Member of Board of Directors [Member] | Management Fees [Member] | |||||||||||||||
Stock Authorized for Issuance in Lieu of Related Party Fee | 34,326 | ||||||||||||||
Ship Brokering Firm [Member] | |||||||||||||||
Due from Related Parties, Current | 6,000 | 19,000 | 43,000 | ||||||||||||
Management [Member] | |||||||||||||||
Stock Authorized for Issuance in Lieu of Related Party Fee | 67,754 | ||||||||||||||
Management Fees Payable | 271,000 | ||||||||||||||
Costs and Expenses, Related Party | $8,000 | $13,000 |
Vessels_net_Details
Vessels, net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Vessels Cost, Beginning Balance | $105,008 | $103,137 | $103,137 |
Vessels Cost, Disposal | -29,180 | ||
Vessels Cost, Depreciation | 0 | 0 | 0 |
Vessels Cost, Vessel held for sale | -3,466 | ||
Vessels Cost, Vessel impairment charge | -23,978 | 12,480 | |
Vessels Cost, Reclassified to vessels, net | 29,315 | ||
Vessels Cost, Leased vessel | 12,250 | ||
Vessels Cost, Ending Balance | 88,078 | 105,008 | 103,137 |
Accumulated Depreciation, Beginning Balance | -33,174 | -27,447 | -21,718 |
Accumulated Depreciation, Depreciation | -4,896 | -5,727 | -5,729 |
Accumulated Depreciation, Disposal | 12,726 | ||
Accumulated Depreciation, Vessel held for sale | 0 | ||
Accumulated Depreciation, Vessel impairment charge | 0 | ||
Accumulated Depreciation, Leased vessel | -424 | ||
Accumulated Depreciation, Ending Balance | -25,768 | -33,174 | -27,447 |
Net Book Value, Beginning Balance | 71,834 | 75,690 | 81,419 |
Net Book Value, Depreciation | -4,896 | -5,727 | -5,729 |
Net Book Value, Disposal | -16,454 | ||
Net Book Value, Vessel held for sale | -3,466 | ||
Net Book Value, Vessel impairment charge | -23,978 | ||
Net Book Value, Reclassified to vessels, net | 0 | 27,455 | 12,480 |
Net Book Value, Leased vessel | 11,826 | 0 | |
Net Book Value, Ending Balance | $50,484 | $71,834 | $75,690 |
Vessels_net_Details_Textual
Vessels, net (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 16, 2014 | Sep. 24, 2014 | Feb. 18, 2014 |
Repayments of Bank Debt | $27,089 | $0 | $0 | |||
Asset Impairment Charges | 3,477 | |||||
Other Operating Activities, Cash Flow Statement | 11,179 | 10,014 | ||||
Five Year Historical Average Rates [Member] | ||||||
Asset Impairment Charges | 17,982 | 19,685 | ||||
Three or One Year Historical Average Rates [Member] | ||||||
Asset Impairment Charges | 27,077 | 30,340 | ||||
NBG loan facility [Member] | ||||||
Repayments of Bank Debt | 3,300 | |||||
M V Free Jupiter [Member] | ||||||
Asset Impairment Charges | 455 | |||||
Proceeds from Sale of Productive Assets | 12,250 | |||||
M V Free Hero [Member] | ||||||
Asset Impairment Charges | 935 | |||||
M V Free Impala [Member] | ||||||
Asset Impairment Charges | 2,087 | |||||
Proceeds from Sale of Productive Assets | 3,600 | |||||
M V Free Knight [Member] | ||||||
Asset Impairment Charges | 23,978 | |||||
Proceeds from Sale of Productive Assets | $3,600 |
Vessels_held_for_sale_Details
Vessels held for sale (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Vessels held for sale,Beginning balance | $3,465 | $32,792 | $45,272 |
Vessel Sold | -3,465 | ||
Vessel impairment charge | 0 | -27,455 | -12,480 |
Reclassified to vessels, net | 29,315 | ||
Reclassified to vessel held for sale | 3,465 | ||
Vessels held for sale,Ending balance | $0 | $3,465 | $32,792 |
Vessels_held_for_sale_Details_
Vessels held for sale (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Impairment of Long-Lived Assets to be Disposed of | ($23,978) | $12,480 |
M V Free Hero [Member] | ||
Impairment of Long-Lived Assets to be Disposed of | 2,880 | |
M V Free Jupiter [Member] | ||
Impairment of Long-Lived Assets to be Disposed of | 3,360 | |
M V Free Impala [Member] | ||
Impairment of Long-Lived Assets to be Disposed of | 3,360 | |
M V Free Neptune [Member] | ||
Impairment of Long-Lived Assets to be Disposed of | 2,880 | |
Vessels [Member] | ||
Impairment of Long-Lived Assets to be Disposed of | $12,480 |
Capital_Lease_Details
Capital Lease (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Capital Leased Assets [Line Items] | |
0 | ($12,250) |
1 | 1,943 |
2 | 1,943 |
3 | 1,943 |
4 | 1,943 |
5 | 1,943 |
6 | 1,943 |
7 | 1,943 |
Total | 13,601 |
Capital Lease Principal [Member] | |
Capital Leased Assets [Line Items] | |
1 | 1,214 |
2 | 1,214 |
3 | 1,214 |
4 | 1,214 |
5 | 1,214 |
6 | 1,214 |
7 | 1,214 |
Total | 8,498 |
Interest Expense [Member] | |
Capital Leased Assets [Line Items] | |
1 | 729 |
2 | 729 |
3 | 729 |
4 | 729 |
5 | 729 |
6 | 729 |
7 | 729 |
Total | $5,103 |
Capital_Lease_Details_Textual
Capital Lease (Details Textual) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Sep. 16, 2014 |
Capital Leased Assets [Line Items] | |
Present Value Of Minimum Lease Payments Exceeds Percentage Of Fair Market Value | 90.00% |
M V Free Jupiter [Member] | |
Capital Leased Assets [Line Items] | |
Sales Revenue, Goods, Gross | 12,250 |
Vessel Charter Rate Per Day | 5,325 |
Deposits Assets, Current | 3,750 |
Deferred_Charges_Details
Deferred Charges (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Beginning Balance | $1,210 | $3,086 | $1,216 |
Additions | 0 | 167 | 3,303 |
Write-offs | -967 | -939 | -191 |
Vessels held for sale | 0 | 301 | |
Amortization | -226 | -1,104 | -1,543 |
Ending balance | 16 | 1,210 | 3,086 |
Dry Docking Costs- Non Current [Member] | |||
Beginning Balance | 166 | 15 | 531 |
Additions | 0 | 167 | 0 |
Write-offs | -166 | 0 | 0 |
Vessels held for sale | 0 | 112 | |
Amortization | 0 | -16 | -628 |
Ending balance | 0 | 166 | 15 |
Special Survey Costs - Non Current [Member] | |||
Beginning Balance | 0 | 184 | 355 |
Additions | 0 | 0 | 0 |
Write-offs | 0 | 0 | 0 |
Vessels held for sale | 0 | 189 | |
Amortization | 0 | -184 | -360 |
Ending balance | 0 | 0 | 184 |
Financing Costs- Current [Member] | |||
Beginning Balance | 1,044 | 2,887 | 330 |
Additions | 0 | 0 | 3,303 |
Write-offs | -801 | -939 | -191 |
Vessels held for sale | 0 | 0 | |
Amortization | -226 | -904 | -555 |
Ending balance | $16 | $1,044 | $2,887 |
Deferred_Charges_Details_Textu
Deferred Charges (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | ||
Sep. 07, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
M V Free Knight [Member] | ||||
Schedule of Restructuring and Deferred Charges [Line Items] | ||||
Debt Instrument Outstanding | $30,000,000 | |||
Deutsche Bank [Member] | ||||
Schedule of Restructuring and Deferred Charges [Line Items] | ||||
Unamortized Deferred Amendment And Restructuring Fees | 166,000 | 939,000 | ||
Restructuring Charges | 1,480,000 | |||
Unamortized Deferred Financing Fees | 191,000 | |||
Credit Suisse Loan Facility [Member] | ||||
Schedule of Restructuring and Deferred Charges [Line Items] | ||||
Unamortized Deferred Amendment And Restructuring Fees | 801,000 | |||
Restructuring Charges | $1,823,000 |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value Measurements (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $0 | $0 | |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | 200 | |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 21 | 40 | 85 |
Loss on Derivative Instruments [Member] | |||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 21 | 40 | 85 |
Derivative Financial Instruments Current Portion [Member] | |||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 0 | |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | 200 | |
Derivative Financial Instruments, Net of Current Portion [Member] | |||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 0 | |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $0 | $0 |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value Measurements (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Liabilities, Fair Value Disclosure, Recurring | $0 |
Fair Value, Inputs, Level 1 [Member] | |
Liabilities, Fair Value Disclosure, Recurring | 0 |
Fair Value, Inputs, Level 2 [Member] | |
Liabilities, Fair Value Disclosure, Recurring | 0 |
Fair Value, Inputs, Level 3 [Member] | |
Liabilities, Fair Value Disclosure, Recurring | 0 |
Interest Rate Swap [Member] | |
Liabilities, Fair Value Disclosure, Recurring | 0 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member] | |
Liabilities, Fair Value Disclosure, Recurring | 0 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |
Liabilities, Fair Value Disclosure, Recurring | 0 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member] | |
Liabilities, Fair Value Disclosure, Recurring | $0 |
Financial_Instruments_and_Fair4
Financial Instruments and Fair Value Measurements (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets, Fair Value Disclosure, Nonrecurring | $0 | $3,466 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 3,465 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Vessels Held for Sale [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 3,466 |
Vessels Held for Sale [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Vessels Held for Sale [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 3,465 |
Vessels Held for Sale [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | $0 | $0 |
Financial_Instruments_and_Fair5
Financial Instruments and Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 18, 2014 |
Unrealized Gain (Loss) on Derivatives | $200 | $246 | $314 | |
Gain (Loss) on Derivative Instruments, Net, Pretax | 21 | 40 | 85 | |
Impairment of Long-Lived Assets to be Disposed of | -23,978 | 12,480 | ||
Proceeds from sale of vessels, net | 14,872 | 0 | 0 | |
M V Free Knight [Member] | ||||
Proceeds from sale of vessels, net | 3,600 | |||
Interest Rate Swap One [Member] | ||||
Unrealized Gain (Loss) on Derivatives | 246 | |||
Interest Rate Swap [Member] | ||||
Gain (Loss) on Interest Rate Fair Value Hedge Ineffectiveness | $286 |
Convertible_Notes_Payable_Deta
Convertible Notes Payable (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 14, 2014 | Feb. 07, 2014 | Feb. 06, 2014 | Oct. 10, 2013 | Aug. 02, 2013 | 13-May-13 | Feb. 28, 2014 | Jul. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 17, 2014 |
Debt Instrument, Interest Rate During Period | 8.00% | 100.00% | ||||||||||
Proceeds from Convertible Debt | $489 | $304 | $489 | $250 | ||||||||
Debt Instrument, Payment Terms | nine months | |||||||||||
Common Stock Discount Rate Percentage | 35.00% | |||||||||||
Discount On Debt Related To Convertible Note | 263 | |||||||||||
Stock Issued During Period Value Accrued Interest | 5 | |||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 121,176 | 53,700 | 67,476 | 53,618 | 232,948 | 109,279 | 121,176 | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 54 | 75 | 104 | 154 | 104 | 129 | 128 | 375 | ||||
Convertible Notes Payable [Member] | ||||||||||||
Debt Instrument, Interest Rate During Period | 8.00% | |||||||||||
Proceeds from Convertible Debt | $304 | |||||||||||
Debt Instrument, Payment Terms | nine months | |||||||||||
Common Stock Discount Rate Percentage | 35.00% |
Bank_Loan_current_portion_Deta
Bank Loan - current portion (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ||
Long-term debt, Current portion | $59,687,000 | |
Long-term debt, Long- term portion | 0 | |
Long-term Debt, Total | 17,598 | 59,687,000 |
Credit Suisse [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Current portion | 36,450,000 | |
Long-term debt, Long- term portion | 0 | |
Long-term Debt, Total | 36,450,000 | |
NBG [Member] | ||
Short-term Debt [Line Items] | ||
Long-term debt, Current portion | 23,237,000 | |
Long-term debt, Long- term portion | 0 | |
Long-term Debt, Total | $23,237,000 |
Bank_Loan_current_portion_Deta1
Bank Loan - current portion (Details 1) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Sep. 17, 2014 | Sep. 24, 2014 | Dec. 31, 2013 | |
Short-term Debt [Line Items] | ||||
31-Dec-13 | $59,687,000 | |||
31-Dec-14 | 17,598 | 59,687,000 | ||
Credit Suisse Facility [Member] | ||||
Short-term Debt [Line Items] | ||||
31-Dec-13 | 36,450,000 | |||
Additions | 0 | |||
Payments | -21,450,000 | |||
Debt forgiveness | -15,000,000 | |||
31-Dec-14 | 0 | |||
NBG Facility [Member] | ||||
Short-term Debt [Line Items] | ||||
31-Dec-13 | 23,237,000 | |||
Additions | 0 | |||
Payments | -5,639,000 | -2,700,000 | -3,300,000 | |
Debt forgiveness | 0 | |||
31-Dec-14 | $17,598,000 |
Bank_Loan_current_portion_Deta2
Bank Loan - current portion (Details 2) (M V Free Neptune [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
M V Free Neptune [Member] | |
Short-term Debt [Line Items] | |
Debt Instrument, Periodic Payment | $838 |
Debt Instrument, Frequency of Periodic Payment | Seven quarterly installments |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $11,736 |
Debt Instrument, Maturity Date | 16-Dec-16 |
Debt Instrument, Issuer | National Bank of Greece |
Bank_Loan_current_portion_Deta3
Bank Loan - current portion (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
30-May-14 | Jan. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 24, 2014 | Sep. 17, 2014 | Feb. 22, 2014 | 28-May-14 | |
Short-term Debt [Line Items] | |||||||||
Long-term Debt, Weighted Average Interest Rate | 3.00% | 2.30% | |||||||
Interest Expense, Debt | $1,655,000 | $1,946,000 | $2,415,000 | ||||||
Long-term Debt | 17,598 | 59,687,000 | |||||||
Description Of Cash Payment In Final Settlement Of Obligations | Pursuant to the term sheet, Credit Suisse agreed to accept a cash payment of approximately $22,000 in full and final settlement of all of the Companys obligations to the Bank and the Bank would forgive the remaining outstanding balance of approximately $15,000. | ||||||||
Long-term Debt, Current Maturities, Total | 59,687,000 | ||||||||
Repayments of Long-term Debt | 22,636,000 | ||||||||
M V Free Impala [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Sales Revenue, Goods, Gross | 3,600,000 | ||||||||
M V Free Neptune [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Issuer | National Bank of Greece | ||||||||
Credit Suisse Facility [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Long-term Debt | 0 | 36,450,000 | |||||||
Cancel All Remaining Debt Upon Receipt Of Such Payment | 15,000,000 | ||||||||
Agreed To Pay To Credit Suisse From Offering Proceeds | 22,636,000 | ||||||||
Long-term Debt, Current Maturities, Total | 37,636,000 | ||||||||
Repayments of Long-term Debt | 22,636,000 | ||||||||
Repayments of Debt | 21,450,000 | ||||||||
NBG [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Long-term Debt | 17,598,000 | 23,237,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.00% | ||||||||
Description Of Cash Payment In Final Settlement Of Obligations | Pursuant to the terms, NBG agreed to accept a cash payment of $22,000 no later than December 31, 2014, in full and final settlement of all of the Companys obligations to NBG and NBG would forgive the remaining outstanding balance of approximately $4,700. | ||||||||
Repayment Installments And Accrued Interest | 8,896,000 | ||||||||
Sales Revenue, Goods, Gross | 3,600,000 | ||||||||
Repayments of Debt | $5,639,000 | $3,300,000 | $2,700,000 | ||||||
First Business Bank [Member] | Criteria One [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Restrictive Covenants | Average corporate liquidity: the Company is required to maintain an average corporate liquidity of at least $3,000 | ||||||||
First Business Bank [Member] | Criteria Two [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Restrictive Covenants | Leverage ratio: the corporate guarantors leverage ratio shall not at any time exceed 55% | ||||||||
First Business Bank [Member] | Criteria Three [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Restrictive Covenants | Ratio of EBITDA to net interest expense shall not be less than 3 | ||||||||
First Business Bank [Member] | Criteria Four [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Restrictive Covenants | Value to loan ratio: the fair market value of the financed vessels shall be at least (a) 115% for the period July 1, 2010 to June 30, 2011 and (b) 125% thereafter |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Payments Due by Period, Total | $19,427 |
Payments Due by Period, Less than 1-year | 3,253 |
Payments Due by Period, 2-year | 2,773 |
Payments Due by Period, 3-year | 2,773 |
Payments Due by Period, 4-year | 2,773 |
Payments Due by Period, 5-year | 1,138 |
Payments Due by Period, More than 5-years | 6,717 |
Service Fee To Manager [Member] | |
Payments Due by Period, Total | 6,540 |
Payments Due by Period, Less than 1-year | 1,635 |
Payments Due by Period, 2-year | 1,635 |
Payments Due by Period, 3-year | 1,635 |
Payments Due by Period, 4-year | 1,635 |
Payments Due by Period, 5-year | 0 |
Payments Due by Period, More than 5-years | 0 |
Management Fee To Manager [Member] | |
Payments Due by Period, Total | 12,407 |
Payments Due by Period, Less than 1-year | 1,138 |
Payments Due by Period, 2-year | 1,138 |
Payments Due by Period, 3-year | 1,138 |
Payments Due by Period, 4-year | 1,138 |
Payments Due by Period, 5-year | 1,138 |
Payments Due by Period, More than 5-years | 6,717 |
Interest on Variable Rate Debt [Member] | |
Payments Due by Period, Total | 480 |
Payments Due by Period, Less than 1-year | 480 |
Payments Due by Period, 2-year | 0 |
Payments Due by Period, 3-year | 0 |
Payments Due by Period, 4-year | 0 |
Payments Due by Period, 5-year | 0 |
Payments Due by Period, More than 5-years | $0 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) | 12 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Nov. 08, 2012 | Dec. 31, 2014 | |
USD ($) | EUR (€) | USD ($) | Pollution Insurance Coverage for Vessel [Member] | |
USD ($) | ||||
Operating Leases, Rent Expense | € 8,700 | |||
Supplemental Information for Property, Casualty Insurance Underwriters, Minimum Interest Rate in Range | 25.00% | 25.00% | ||
Supplemental Information for Property, Casualty Insurance Underwriters, Maximum Interest Rate in Range | 40.00% | 40.00% | ||
Supplemental Information for Property, Casualty Insurance Underwriters, Earned Premiums | 1,000,000 | |||
General Insurance Expense | 1,000,000,000 | |||
Hire Amount Outstanding | $356,000 |
Loss_per_Share_and_Series_A_B_2
Loss per Share and Series A, B and C Warrants (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
1-Jan-14 | 7,500,000 |
Series C warrants issued with $25,000 offering | 46,000,000 |
Cashless Warrants exercised | -11,541,317 |
31-Dec-14 | 41,958,683 |
Series A Warrants [Member] | |
1-Jan-14 | 5,000,000 |
Series C warrants issued with $25,000 offering | 0 |
Cashless Warrants exercised | 0 |
31-Dec-14 | 5,000,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | 2.6 |
Series B Warrants [Member] | |
1-Jan-14 | 2,500,000 |
Series C warrants issued with $25,000 offering | 0 |
Cashless Warrants exercised | -1,509,187 |
31-Dec-14 | 990,813 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | 2.6 |
Series C Warrants [Member] | |
Series C warrants issued with $25,000 offering | 46,000,000 |
Cashless Warrants exercised | -10,032,130 |
31-Dec-14 | 35,967,870 |
Warrants Issued Exercise Price | 1.42 |
Loss_per_Share_and_Series_A_B_3
Loss per Share and Series A, B and C Warrants (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator | |||
Net loss - basic and diluted (in dollars) | ($12,688) | ($48,705) | ($30,888) |
Basic earnings per share denominator: | |||
Weighted average common shares outstanding (in shares) | 49,988,956 | 6,527,240 | 167,435 |
Diluted earnings per share denominator: | |||
Weighted average common shares outstanding (in shares) | 49,988,956 | 6,527,240 | 167,435 |
Dilutive common shares: | |||
Dilutive effect (in shares) | 0 | 2,824,720 | 0 |
Weighted average common shares - diluted | |||
Weighted average common shares - diluted (in shares) | 49,988,956 | 6,527,240 | 167,435 |
Basic loss per share (in dollars per share) | ($0.25) | ($7.46) | ($184.48) |
Diluted loss per share (in dollars per share) | ($0.25) | ($7.46) | ($184.48) |
Employee Stock Option [Member] | |||
Dilutive common shares: | |||
Dilutive effect (in shares) | 0 | 0 | 0 |
Warrant [Member] | |||
Dilutive common shares: | |||
Dilutive effect (in shares) | 0 | 2,824,720 | 0 |
Restricted Stock [Member] | |||
Dilutive common shares: | |||
Dilutive effect (in shares) | 0 | 0 | 0 |
Loss_per_Share_and_Series_A_B_4
Loss per Share and Series A, B and C Warrants (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | 28-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted Average Number of Shares Outstanding, Diluted | 49,988,956 | 6,527,240 | 167,435 | |
Offering Convertible Preferred Stock and Warrants | $25,000 | |||
Preferred Stock [Member] | ||||
Proceeds from Issuance of Private Placement | 10,000 | |||
Common Stock [Member] | ||||
Stock Issued During Period Shares Cashless Warrants Exercised | 56,608,510 | |||
Series A Warrants [Member] | ||||
Weighted Average Number of Shares Outstanding, Diluted | 5,000,000 | |||
Series B Warrants [Member] | ||||
Weighted Average Number of Shares Outstanding, Diluted | 990,813 | |||
Series C Warrants [Member] | ||||
Weighted Average Number of Shares Outstanding, Diluted | 35,967,870 |
Reverse_Stock_Splits_Details_T
Reverse Stock Splits (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 02, 2013 | Feb. 14, 2013 | |
Reverse Stock Splits [Line Items] | |||||
Stockholders' Equity, Reverse Stock Split | 1 for 10 | five-to-one reverse stock split | |||
Common Stock, Par or Stated Value Per Share | $0.00 | 0.001 | $0.00 | $0.00 | |
Maximum [Member] | |||||
Reverse Stock Splits [Line Items] | |||||
Stockholders Equity Note, Changes in Capital Structure, Subsequent Changes to Number of Common Shares | 94,324,530 | ||||
Minimum [Member] | |||||
Reverse Stock Splits [Line Items] | |||||
Stockholders Equity Note, Changes in Capital Structure, Subsequent Changes to Number of Common Shares | 18,864,906 |
Equity_Incentive_Plan_Details_
Equity Incentive Plan (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jul. 30, 2014 | Dec. 31, 2013 | Nov. 10, 2014 | Dec. 31, 2014 |
Equity Incentive Plan [Line Items] | ||||
Allocated Share-based Compensation Expense | $1,030 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | 15,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Description | the exercise price of an incentive stock option may not be less than 110% of fair value of the common stock at the date of the grant for a 10% or more shareholder and 100% of fair value for a grantee who is not a 10% shareholder | |||
Stock Will Vest on May 10, 2015 [Member] | ||||
Equity Incentive Plan [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,100,000 | |||
Stock Will Vest on November 10, 2015 [Member] | ||||
Equity Incentive Plan [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,975,000 | |||
Stock Will Vest on November 10, 2016 [Member] | ||||
Equity Incentive Plan [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,975,000 | |||
Officers Directors And Employees [Member] | ||||
Equity Incentive Plan [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 10,600,000 | |||
Non Executive [Member] | ||||
Equity Incentive Plan [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 400,000 | |||
Payments of Stock Issuance Costs | 80 | |||
Restricted Stock [Member] | ||||
Equity Incentive Plan [Line Items] | ||||
Allocated Share-based Compensation Expense | 638 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $1,138 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 24 months |
Shareholders_Equity_Details_Te
Shareholders' Equity (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 25 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 15, 2014 | Apr. 09, 2014 | Dec. 16, 2013 | Oct. 14, 2013 | Aug. 16, 2013 | Apr. 04, 2013 | Aug. 30, 2013 | Jun. 17, 2013 | Jan. 31, 2013 | Dec. 19, 2012 | 11-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 30, 2013 | Jan. 03, 2014 | Jan. 08, 2014 | Dec. 31, 2013 | Oct. 06, 2014 | Sep. 11, 2014 | Sep. 18, 2014 | Jun. 03, 2014 | Aug. 27, 2014 | Jun. 18, 2014 | Jun. 20, 2014 | 16-May-14 | Jun. 30, 2014 | 28-May-14 | Dec. 20, 2013 | 29-May-13 | Oct. 31, 2012 | Sep. 10, 2013 | Jan. 15, 2013 | Apr. 02, 2013 | Jan. 24, 2013 | Feb. 13, 2013 | Apr. 17, 2013 | Jun. 26, 2013 | Oct. 09, 2013 | Sep. 26, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | 22-May-13 | Aug. 21, 2014 | Mar. 14, 2013 | Nov. 18, 2013 | Oct. 10, 2013 | Jul. 16, 2014 | Sep. 20, 2013 | Jul. 10, 2013 | Mar. 06, 2013 | Mar. 04, 2013 | Feb. 28, 2013 | Feb. 27, 2013 | Feb. 26, 2013 | Feb. 25, 2013 | Feb. 19, 2013 | 24-May-13 | 16-May-13 | 10-May-13 | 5-May-13 | Apr. 29, 2013 | Apr. 22, 2013 | Sep. 09, 2013 | Dec. 24, 2013 | Oct. 11, 2013 | Dec. 31, 2011 | Mar. 31, 2012 | Oct. 31, 2013 | Jan. 29, 2013 | Jan. 18, 2013 | |
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $0 | $1,041,000 | $388,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Bid Price Not Maintained For 30 Consecutive Business Days | $1 | $1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Bid Price To Be Maintained For 10 Consecutive Business Days To Regain Nasdaq Compliance | $1 | $1 | $1 | $1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lowest Daily Volume Weighted Average Price Percentage | 96.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Daily Trading Volume Advance, Description | amount not to exceed the greater of $200 or 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 100,000 | 115,470,692 | 22,753,868 | 22,753,868 | 1,197,034 | 493,911 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on Sale of Equity Investments | 1,180,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
True Up Period Expiration Date | 22-Jan-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 105,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocated Share-based Compensation Expense | 1,030,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Market Value Of Publicly Held Shares | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Market Value Of Publicly Held Shares Failed To Meet Requirements | 897,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Value Of Shares For Cash Consideration | 3,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Authorized for Issuance in Lieu of Related Party Fee | 991,658 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingency Accrual | 10,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 232,948 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | 153,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement Shares Percentage | 9.90% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Outstanding | 115,470,692 | 22,753,868 | 22,753,868 | 1,611,656 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Units Issued During Period | 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Units Issued During Period, Price Per Unit | $100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholdersb Equity Requirement | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares, Issued | 819,869 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Value, Acquisitions | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series B Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Stock, Shares Issued | 15,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 15,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Warrants [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants To Purchase Commonstock | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants Expiry Term | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants Exercise Price | $2.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series B Warrants [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants To Purchase Commonstock | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants Expiry Term | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants Exercise Price | $2.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series C Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 30,000 | 26,000 | 29,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series D Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 43,600 | 21,800 | 43,600 | 78,612 | 21,800 | 30,520 | 1,808 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Outstanding | 8,160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of Warrants Rights | 130.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock, Conversion Price Per Share | $100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Closing Bid Price of Common Stock | $1.09 | $0.98 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock Par value Per Share | $0.00 | $100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 24,070,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments of Stock Issuance Costs | 930,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series C Warrants [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Units Issued During Period | 184 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercisable Period of Warrant | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $1.42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Private Placement | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Stock, Shares Issued | 750,000 | 1,500,000 | 1,300,000 | 1,450,000 | 4,000,000 | 2,000,000 | 4,000,000 | 7,212,081 | 2,000,000 | 2,800,000 | 165,881 | 9,176 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of Warrants Rights | 200.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 92 | 92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issued, Price Per Share | $1.42 | $1.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dutchess Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | 485,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lowest Daily Volume Weighted Average Price Percentage | 98.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Daily Trading Volume Advance, Description | amount not to exceed the greater of $200 or 200% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of Common Stock | 47,060 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 458,344 | 460,933 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 28.60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage Of Blocker Provision | 9.99% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 37,157 | 27,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 426,943 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issuable Upon Settlement Agreement, Description | which number is equal to the quotient obtained by dividing (i) $305,485.59 by (ii) 70% of the VWAP of the Common Stock over the four-trading day period following the date of issuance of the Initial Settlement Shares, rounded up to the nearest whole share. | Specifically, the total number of shares of Common Stock to be issued to Hanover pursuant to the First Settlement Agreement shall be equal to the quotient obtained by dividing (i) $305,485.59 by (ii) 70% of the VWAP of the Common Stock over the 35-trading day period following the date of issuance of the Settlement Shares (the True-Up Period), rounded up to the nearest whole share (the VWAP Shares). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Granite Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | 458,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lowest Daily Volume Weighted Average Price Percentage | 98.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Daily Trading Volume Advance, Description | amount not to exceed the greater of $500 or 200% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of Common Stock | 79,159 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 79,159 | 79,159 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Second Settlement Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 37,000 | 6,351 | 20,000 | 20,000 | 20,000 | 18,000 | 18,000 | 18,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of Average Daily Trading Volume Weighted Average Price | 75.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issuable Upon Settlement Agreement, Description | Specifically, the total number of shares of Common Stock to be issued to Hanover pursuant to the Second Settlement Agreement should be equal to the quotient obtained by dividing (i) $740,651.57 by (ii) 75% of the VWAP of the Common Stock over the 35-trading day period following the date of issuance of the Second Settlement Shares (the Second True-Up Period), rounded up to the nearest whole share (the Second VWAP Shares). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fourth Settlement Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 112,000 | 40,000 | 119 | 150,000 | 70,000 | 67,000 | 65,000 | 60,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issuable Upon Settlement Agreement, Description | Specifically, the total number of shares of Common Stock to be issued to Hanover pursuant to the Fourth Settlement Agreement should be equal to the quotient obtained by dividing (i) $1,792,416.92 by (ii) 75% of the VWAP of the Common Stock over the 35-trading day period following the date of issuance of the Fourth Settlement Shares (the Fourth True-Up Period), rounded up to the nearest whole share (the Fourth VWAP Shares) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fifth Settlement Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 7,159,749 | 7,159,749 | 178,000 | 5,501,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Litigation Settlement, Amount | 9,434,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Related to Litigation Settlement | 3,914,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issuable Upon Settlement Agreement, Description | Specifically, the total number of shares of Common Stock to be issued to Hanover pursuant to the Fifth Settlement Agreement shall be equal to the quotient obtained by dividing (i) $5,331,011.90 by (ii) 75% of the VWAP of the Common Stock over the 120 consecutive trading day period following the date of issuance of the Fifth Settlement Shares (the Fifth True-Up Period), rounded up to the nearest whole share (the Fifth VWAP Shares). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Crede Settlement Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 8,741,761 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued, Crede Settlement | 1,011,944 | 1,578,110 | 6,151,708 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingency, Settlement Agreement, Terms | Common Stock to be issued to Crede pursuant to the Exchange Agreement would equal the quotient of (i) $11,850 divided by (ii) 78% of the volume weighted average price of the Companys Common Stock, over the 75-consecutive trading day period immediately following the first trading day after the Court approved the Order (or such shorter trading-day period as could be determined by Crede in its sole discretion by delivery of written notice to the Company) (the Calculation Period), rounded up to the nearest whole share (the Crede Settlement Shares). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingency, Loss in Period | 10,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Annual Principal Payment | 19,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Placement Agent agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Units Issued During Period | 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Units Issued During Period, Price Per Unit | $100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Units Issued During Period Value | 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Executive Member of Board of Directors [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management Fees Payable | 120,000 | 120,000 | 120,000 | 155,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Board Fees Payable | 48,000 | 120,000 | 120,000 | 120,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 8,382 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Authorized for Issuance in Lieu of Related Party Fee | 991,658 | 6,536 | 3,993 | 34,326 | 34,326 | 34,326 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manager [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management Fees Payable | 2,168,000 | 2,168,000 | 2,168,000 | 807,000 | 809,000 | 926,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 128,328 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Authorized for Issuance in Lieu of Related Party Fee | 43,930 | 33,214 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dutchess Capital [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | 91,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 18,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Registered For Resale | 47,060 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hanover Holdings I, LLC [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 400,000 | 1,657 | 8,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Navar Inc [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, Shares, Issued | 27,385 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 94,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Notes Payable | 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable, Total | 75,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
YA Global Master SPV Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Issuance of Common Stock | 432,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Fee Write Off | 10,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Value Of Shares For Acquisition | 3,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Registered For Resale | 36,795 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable, Total | 63,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 14,038 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Committee [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocated Share-based Compensation Expense | 2,753,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asher [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 109,279 | 53,618 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | 103,500 | 103,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Crede [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cashless Exercise Of Warrants Description | (i) we are in compliance in all material respects with our obligations under the transaction documents, (ii) the Registration Statement is effective and (iii) our Common Stock is listed or designated for quotation on an eligible market. In the event that our Common Stock trades at or above $3.25 for a period of 20 consecutive trading days, the average daily dollar volume of our Common Stock equals at least $1 million during such period and various equity conditions are also satisfied during such period, we may, at our election, require Crede to exercise the Warrants for cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Accountable Amount | 75,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Non Refundable Amount | 75,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated Expense Reimbursement | 425,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Crede [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock, Terms of Conversion | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Crede [Member] | Series C Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders Equity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $8,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 85,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock, Terms of Conversion | The Series C Preferred Stock was convertible into our Common Stock at the same price at which the Series B Preferred Stock is convertible |
Taxes_Details_Textual
Taxes (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Taxes [Line Items] | ||
Stock Owned By Residents Of Company | more than 50% | |
Federal Income Tax Expense (Benefit), Continuing Operations | $12 | $25 |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 14, 2014 | Feb. 07, 2014 | Feb. 06, 2014 | Oct. 10, 2013 | Aug. 02, 2013 | 13-May-13 | Feb. 28, 2014 | Aug. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 18, 2013 | Mar. 27, 2015 | Feb. 05, 2015 | Jan. 05, 2015 | Apr. 16, 2015 | Jan. 21, 2015 | Mar. 12, 2015 | Apr. 10, 2015 | Mar. 20, 2015 | Feb. 11, 2015 | Mar. 05, 2015 | Nov. 17, 2014 | Mar. 15, 2015 | Feb. 15, 2015 | Jan. 13, 2015 | Apr. 13, 2015 | Mar. 18, 2015 | Mar. 10, 2015 |
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 121,176 | 53,700 | 67,476 | 53,618 | 232,948 | 109,279 | 121,176 | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 232,948 | |||||||||||||||||||||||||||
Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 121,176 | 395,844 | ||||||||||||||||||||||||||
Asher [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 53,618 | 109,279 | ||||||||||||||||||||||||||
Himmil Investments Ltd [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 500 | |||||||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Minimum Bid Price | $1 | |||||||||||||||||||||||||||
Bareboat Charter Hire Charges Accrued | 165 | 149 | ||||||||||||||||||||||||||
Subsequent Event [Member] | Debt Settlement Agreement [Member] | Four Vendors [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 2,910,740 | |||||||||||||||||||||||||||
Debt Conversion, Original Debt, Amount | 262 | |||||||||||||||||||||||||||
Subsequent Event [Member] | Himmil Investments Ltd [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 16,294,221 | 12,826,497 | ||||||||||||||||||||||||||
Debt Instrument, Face Amount | 500 | |||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||||||||||||||||||
Debt Instrument, Term | 1 year | |||||||||||||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The conversion price is the lower of (i) $0.62 and (ii) 60% of the lowest daily VWAP on any trading day during the twenty-one consecutive trading days prior to conversion. | The conversion price is the lower of (i) $0.452 and (ii) 60% of the lowest daily VWAP on any trading day during the twenty-one consecutive trading days prior to conversion. | ||||||||||||||||||||||||||
Percentage Of Prepayment In Cash | 127.5 | 127.5 | ||||||||||||||||||||||||||
Debt Conversion, Original Debt, Amount | 446 | |||||||||||||||||||||||||||
Subsequent Event [Member] | Himmil Investments Ltd [Member] | Maximum [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 4.99% | 4.99% | ||||||||||||||||||||||||||
Subsequent Event [Member] | Alderbrook Ship Finance Ltd [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 500 | |||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||||||||||||||||||||
Debt Instrument, Term | 1 year | |||||||||||||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The conversion price is the lower of (i) $0.24 and (ii) 60% of the lowest daily VWAP on any trading day during the twenty-one consecutive trading days prior to conversion. | |||||||||||||||||||||||||||
Percentage Of Prepayment In Cash | 127.5 | |||||||||||||||||||||||||||
Subsequent Event [Member] | Alderbrook Ship Finance Ltd [Member] | Maximum [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 4.99% | |||||||||||||||||||||||||||
Subsequent Event [Member] | KBM WORLDWIDE, Inc [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 154 | |||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||||||||||||||||||||
Debt Instrument, Term | 9 months | |||||||||||||||||||||||||||
Subsequent Event [Member] | Dawson James Securities Inc [Member] | Warrants Not Settleable in Cash [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 11,427,612 | 2,278,267 | 9,525,343 | 6,910,358 | 4,574,833 | 1,408,259 | ||||||||||||||||||||||
Subsequent Event [Member] | Dawson James Securities Inc [Member] | Series B Warrant [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Number Of Warrants Transferred | 588,049 | 300,000 | ||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 525,000 | 100,000 | 200,000 | 63,049 | ||||||||||||||||||||||||
Subsequent Event [Member] | Dawson James Securities Inc [Member] | Series A Warrant [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Number Of Warrants Transferred | 165,813 | 325,000 | ||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 325,000 | 165,813 | ||||||||||||||||||||||||||
Subsequent Event [Member] | Marine Plus S.A [Member] | Debt Settlement Agreement [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 5,770,749 | |||||||||||||||||||||||||||
Debt Conversion, Original Debt, Amount | 621 | |||||||||||||||||||||||||||
Subsequent Event [Member] | Glengrove Small Cap Value, Ltd [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 7,003,984 | |||||||||||||||||||||||||||
Debt Instrument, Face Amount | 750 | |||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||||||||||||||||||||||||
Debt Instrument, Term | 1 year | |||||||||||||||||||||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The conversion price is the lower of (i) $0.452 and (ii) 60% of the lowest daily VWAP on any trading day during the twenty-one consecutive trading days prior to conversion. | |||||||||||||||||||||||||||
Percentage Of Prepayment In Cash | 127.5 | |||||||||||||||||||||||||||
Debt Conversion, Original Debt, Amount | $162 | |||||||||||||||||||||||||||
Subsequent Event [Member] | Glengrove Small Cap Value, Ltd [Member] | Maximum [Member] | ||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 4.99% |