Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Cover [Abstract] | |
Entity Registrant Name | Castor Maritime Inc. |
Entity Central Index Key | 0001720161 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2020 |
UNAUDITED INTERIM CONSOLIDATED
UNAUDITED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 30,754,641 | $ 4,558,939 |
Accounts receivable trade | 921,488 | 216,485 |
Due from related party | 470,848 | 759,386 |
Inventories | 190,914 | 143,534 |
Prepaid expenses and other assets | 435,851 | 375,255 |
Deferred charges, net | 0 | 167,298 |
Total current assets | 32,773,742 | 6,220,897 |
NON-CURRENT ASSETS: | ||
Vessels, net | 23,523,913 | 23,700,029 |
Restricted cash | 500,000 | 500,000 |
Prepaid expenses and other assets, non-current | 200,000 | 0 |
Deferred charges, net | 531,074 | 0 |
Total non-current assets | 24,754,987 | 24,200,029 |
Total assets | 57,528,729 | 30,420,926 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt, net | 2,091,062 | 1,522,895 |
Current portion of long-term debt, related party | 5,000,000 | 0 |
Accounts payable | 373,604 | 410,592 |
Deferred revenue, net | 0 | 493,015 |
Accrued liabilities | 934,087 | 556,248 |
Total current liabilities | 8,398,753 | 2,982,750 |
Commitments and contingencies | ||
NON-CURRENT LIABILITIES: | ||
Long-term debt, net | 12,137,158 | 9,234,165 |
Long-term debt, related party | 0 | 5,000,000 |
Total non-current liabilities | 12,137,158 | 14,234,165 |
SHAREHOLDERS' EQUITY: | ||
Common shares, $0.001 par value; 1,950,000,000 shares authorized; 3,318,112 shares issued and outstanding as of December 31, 2019 and 70,442,876 issued and outstanding as of June 30, 2020 | 70,443 | 3,318 |
Additional paid-in capital | 36,889,553 | 12,763,403 |
Retained earnings | 32,330 | 436,798 |
Total shareholders' equity | 36,992,818 | 13,204,011 |
Total liabilities and shareholders' equity | 57,528,729 | 30,420,926 |
Series A Preferred Shares [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Preferred shares | 480 | 480 |
Series B Preferred Shares [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Preferred shares | $ 12 | $ 12 |
UNAUDITED INTERIM CONSOLIDATE_2
UNAUDITED INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
SHAREHOLDERS' EQUITY: | ||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, shares authorized (in shares) | 1,950,000,000 | 1,950,000,000 |
Common shares, shares issued (in shares) | 70,442,876 | 3,318,112 |
Common shares, shares outstanding (in shares) | 70,442,876 | 3,318,112 |
Preferred shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred shares, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Series A Preferred Shares [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Preferred shares, dividend rate | 9.75% | 9.75% |
Preferred shares, liquidation preference (in dollars per share) | $ 30 | $ 30 |
Preferred shares, issued (in shares) | 480,000 | 480,000 |
Preferred shares, shares outstanding (in shares) | 480,000 | 480,000 |
Series B Preferred Shares [Member] | ||
SHAREHOLDERS' EQUITY: | ||
Preferred shares, issued (in shares) | 12,000 | 12,000 |
Preferred shares, shares outstanding (in shares) | 12,000 | 12,000 |
UNAUDITED INTERIM CONDENSED CON
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
REVENUES: | ||
Vessel revenues (net of commissions to charterers of 88,154 and 282,059 respectively) | $ 5,310,936 | $ 1,880,723 |
Total revenues | 5,310,936 | 1,880,723 |
EXPENSES: | ||
Voyage expenses (including $23,901 and $0 to related party for the six months ended June 30, 2019 and 2020, respectively) | (259,600) | (57,949) |
Vessel operating expenses | (2,604,336) | (874,260) |
Management fees to related party | (273,000) | (57,920) |
Depreciation and amortization | (694,372) | (345,705) |
General and administrative expenses | ||
Company administration expenses | (237,636) | (113,420) |
Public registration costs | 0 | (132,091) |
Total expenses | (4,068,944) | (1,581,345) |
Operating income | 1,241,992 | 299,378 |
OTHER INCOME/(EXPENSES): | ||
Interest and finance costs (including $0 and $151,667 to related party for the six months ended June 30, 2019 and 2020, respectively) | (1,665,828) | (1,554) |
Interest income | 32,092 | 21,416 |
Foreign exchange losses | (12,724) | (2,668) |
Total other income/(expenses), net | (1,646,460) | 17,194 |
Net income/(loss) | (404,468) | 316,572 |
Comprehensive income/(loss) | $ (404,468) | $ 316,572 |
Loss per common share, basic and diluted (in dollars per share) | $ (0.05) | $ (0.56) |
Weighted average number of common shares, basic and diluted (in shares) | 8,027,649 | 2,400,000 |
UNAUDITED INTERIM CONDENSED C_2
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) (Parenthetical) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
REVENUES: | ||
Commissions to charterers | $ 282,059 | $ 88,154 |
Voyage expenses, related party | 0 | 23,901 |
Interest and finance costs, related party | $ 151,667 | $ 0 |
UNAUDITED INTERIM CONSOLIDATE_3
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Shares [Member] | Preferred Shares [Member]Preferred A Shares [Member] | Preferred Shares [Member]Preferred B Shares [Member] | Par Value of Shares Issued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2018 | $ 2,892 | $ 7,612,108 | $ 2,136,024 | $ 9,751,024 | |||
Balance (in shares) at Dec. 31, 2018 | 2,400,000 | 480,000 | 12,000 | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income/(loss) | 0 | 0 | 316,572 | 316,572 | |||
Balance at Jun. 30, 2019 | 2,892 | 7,612,108 | 2,452,596 | 10,067,596 | |||
Balance (in shares) at Jun. 30, 2019 | 2,400,000 | 480,000 | 12,000 | ||||
Balance at Dec. 31, 2019 | 3,810 | 12,763,403 | 436,798 | 13,204,011 | |||
Balance (in shares) at Dec. 31, 2019 | 3,318,112 | 480,000 | 12,000 | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Issuance of common stock pursuant to the $5.0 Million Convertible Debentures (Notes 6, 7) | 8,042 | 5,049,731 | 0 | 5,057,773 | |||
Issuance of common stock pursuant to the $5.0 Million Convertible Debentures (Notes 6, 7) (in shares) | 8,042,078 | 0 | 0 | ||||
Issuance of common stock pursuant to the June Equity Offering, net of issuance costs (Note 7) | 59,083 | 18,543,982 | 0 | 18,603,065 | |||
Issuance of common stock pursuant to the June Equity Offering, net of issuance costs (Note 7) (in shares) | 59,082,686 | 0 | 0 | ||||
Beneficial conversion feature pursuant to the issuance of the $5.0 Million Convertible Debentures (Note 6) | 0 | 532,437 | 0 | 532,437 | |||
Net income/(loss) | 0 | 0 | (404,468) | (404,468) | |||
Balance at Jun. 30, 2020 | $ 70,935 | $ 36,889,553 | $ 32,330 | $ 36,992,818 | |||
Balance (in shares) at Jun. 30, 2020 | 70,442,876 | 480,000 | 12,000 |
UNAUDITED INTERIM CONSOLIDATE_4
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 08, 2020 | Feb. 19, 2020 | Feb. 10, 2020 | Jan. 27, 2020 |
$5.0 Million Convertible Debentures [Member] | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Face amount | $ 5 | $ 5 | $ 1.5 | $ 1.5 | $ 2 |
UNAUDITED INTERIM CONSOLIDATE_5
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from/(used in) Operating Activities: | ||
Net income/(loss) | $ (404,468) | $ 316,572 |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization of deferred dry-docking costs | 694,372 | 345,705 |
Amortization and write-off of deferred finance charges | 541,441 | 0 |
Amortization of other deferred charges | 112,508 | 0 |
Deferred revenue amortization | (430,994) | 0 |
Interest settled in common stock | 57,773 | 0 |
Amortization and write-off of convertible notes beneficial conversion feature | 532,437 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable trade | (705,003) | 507,633 |
Inventories | (47,380) | (869) |
Due from related parties | 288,538 | (168,769) |
Prepaid expenses and other current assets | (260,596) | (159,903) |
Dry-dock paid | (509,976) | 0 |
Accounts payable | (179,960) | (142,034) |
Accrued liabilities | (17,290) | 88,336 |
Deferred revenue | (62,021) | (47,708) |
Net Cash provided by/(used in) Operating Activities | (390,619) | 738,963 |
Cash flow used in Investing Activities: | ||
Vessel acquisitions and other vessel improvements | (388,635) | 0 |
Net cash used in Investing Activities | (388,635) | 0 |
Cash flows (used in)/provided by Financing Activities: | ||
Gross proceeds from issuance of common stock and warrants | 20,671,500 | 0 |
Common stock issuance expenses paid | (1,637,559) | (40,250) |
Proceeds from long-term debt | 9,500,000 | 0 |
Repayment of long-term debt | (950,000) | 0 |
Payment of deferred financing costs | (608,985) | 0 |
Net cash (used in)/provided by Financing Activities | 26,974,956 | (40,250) |
Net increase in cash, cash equivalents, and restricted cash | 26,195,702 | 698,713 |
Cash, cash equivalents and restricted cash at the beginning of the period | 5,058,939 | 1,887,280 |
Cash, cash equivalents and restricted cash at the end of the period | 31,254,641 | 2,585,993 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents | 30,754,641 | 2,585,993 |
Restricted cash | 500,000 | 0 |
Cash, cash equivalents and restricted cash at the end of the period | 31,254,641 | 2,585,993 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for interest | 354,433 | 0 |
Shares issued in connection with the settlement of the $5.0 Million Convertible Debentures | 5,057,773 | 0 |
Unpaid vessel acquisition and other addition costs (included in Accounts payable and Accrued liabilities) | 104,654 | 0 |
Unpaid capital raising costs (included in Accounts payable and Accrued Liabilities) | $ 430,876 | $ 0 |
UNAUDITED INTERIM CONSOLIDATE_6
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 08, 2020 | Feb. 19, 2020 | Feb. 10, 2020 | Jan. 27, 2020 |
$5.0 Million Convertible Debentures [Member] | |||||
Supplemental Cash Flow Information [Abstract] | |||||
Face amount | $ 5 | $ 5 | $ 1.5 | $ 1.5 | $ 2 |
Basis of Presentation and Gener
Basis of Presentation and General information | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation and General information [Abstract] | |
Basis of Presentation and General information | 1. Basis of Presentation and General information Castor Maritime Inc. (“Castor”) was incorporated in September 2017 under the laws of the Republic of the Marshall Islands. The accompanying consolidated financial statements include the accounts of and its wholly-owned subsidiaries (collectively, the “Company”). The Company is engaged in the worldwide ocean transportation of dry bulk cargoes through its vessel-owning subsidiaries. On December 21, 2018, Castor’s common shares began trading on the Norwegian OTC and on February 11, 2019, they began trading on the Nasdaq Capital Market, or Nasdaq, under the symbol “CTRM”. Castor is controlled by Thalassa Investment Co. S.A. (“Thalassa”), a corporation incorporated in Liberia, which as of June 30, 2020, held 1.6% of the Company’s common shares and 100% of the Series B preferred shares and, accordingly, controlled the outcome of matters on which shareholders are entitled to vote. Thalassa is wholly-owned and controlled by Petros Panagiotidis, the Company’s Chairman, Chief Executive Officer and Chief Financial Officer. Pavimar S.A., a corporation incorporated under the laws of the Republic of the Marshall Islands (“Pavimar”, or “the Manager”), a related party controlled by the sister of Petros Panagiotidis, Ismini , provides technical, crew and operational management services to the Company. The accompanying unaudited interim condensed consolidated financial statements include the accounts of Castor and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These statements and the accompanying notes should be read in conjunction with the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2019, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2020 (the “2019 Annual Report”). On September 27, 2019, the Company’s Board of Directors authorized a change in Castor’s fiscal year end from September 30 to December 31. As a result, the Company’s comparative unaudited interim condensed consolidated financial statements have been prepared on the basis of the revised fiscal year end. In the opinion of management, these financial statements reflect all adjustments which include normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. Operating results for the six-month period ended June 30, 2020 are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2020. As of June 30, 2020, the Company was the sole owner of all outstanding shares of the following subsidiary companies: Vessel owning subsidiaries consolidated: Company Country of incorporation Vessel Name DWT Year Built Delivery date to Castor Spetses Shipping Co. (“Spetses”) Marshall Islands Magic P 76,453 2004 February 2017 Bistro Maritime Co. (“Bistro”) Marshall Islands Magic Sun 75,311 2001 September 2019 Pikachu Shipping Co. (“Pikachu”) Marshall Islands Magic Moon 76,602 2005 October 2019 Subsidiaries consolidated formed to acquire vessel: Company Country of incorporation Bagheera Shipping Co. (“Bagheera”) Marshall Islands COVID-19 related considerations The COVID-19 pandemic has negatively impacted, and may continue to impact negatively, global economic activity and demand, including the dry-bulk shipping industry into which the Company operates. In case that the COVID-19 pandemic continues to negatively impact market rates in the long-term, depending on the pervasiveness of such economic recession, there could be a significant negative impact in the Company’s liquidity, vessels’ value and overall financial condition. The Company evaluates on a quarterly basis its ability to continue as a going concern in accordance the provisions of ASU No. 2014-15 for a period of one year after the date that the financial statements are issued. In light of the continuity of the COVID-19 pandemic and the overall uncertainty on its potential future impact, the Company, as at June 30, 2020, performed a sensitivity analysis on key assumptions such as the estimates of future charter rates for non-contracted revenue days in order to identify conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date the financial statements are issued. As per the Company’s evaluation, it was concluded that COVID-19 related considerations did not adversely affect the Company’s ability to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Significant Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Significant Accounting Policies and Recent Accounting Pronouncements | 2. Significant Accounting Policies and Recent Accounting Pronouncements: A discussion of the Company’s significant accounting policies can be found in the consolidated financial statements for the year ended December 31, 2019, included in the Company's 2019 Annual Report. Apart from the below, there have been no material changes to these policies in the six-month period ended June 30, 2020. New significant accounting policies adopted during the six months ended June 30, 2020 Convertible debt and associated beneficial conversion features Convertible debt is accounted in accordance with ASC 470-20, Debt with Conversion and Other Options. 815, Derivatives and Hedging, or separately accounted for under the cash conversion literature of ASC 470-20, Debt with Conversion and Other Options. In relation to the Company’s issued $5.0 million senior unsecured convertible debentures (Note 6), the terms of each convertible debenture included an embedded conversion feature which provided for a conversion at the option of the holder into shares of common stock at an adjustable conversion ratio. The Company determined that the conversion features were beneficial conversion features (“BCF”) pursuant to ASC 470-20. The Company considered the BCF guidance only after determining that the features did not need to be bifurcated under ASC 815, Derivatives and Hedging, or separately accounted for under the cash conversion literature of ASC 470-20, Debt with Conversion and Other Options. The BCF is recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of the BCF to additional paid-in capital, resulting in a discount on the convertible instrument. This discount is accreted from the date on which the BCF is first recognized through the stated maturity date of the convertible instrument using the effective interest method. Upon conversion of an instrument with a BCF, all unamortized discounts at the conversion date are recognized immediately as interest expense. Recent Accounting Pronouncements: There are no recent accounting pronouncements the adoption of which are expected to have a material effect on the Company’s unaudited interim consolidated condensed financial statements in the current period. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Transactions with Related Parties [Abstract] | |
Transactions with Related Parties | 3. Transactions with Related Parties: During the six month periods ended June 30, 2019 and 2020, the Company incurred the following charges in connection with related party transactions, which are included in the accompanying unaudited interim condensed consolidated statements of comprehensive income/(loss): Six months ended June 30, Six months ended June 30, 2019 2020 Management fees-related party Management fees (a) $ 57,920 $ 273,000 Included in Voyage expenses Charter hire commissions (b) $ 23,901 $ — Included in Interest and finance costs Interest expenses (c) $ — $ 151,667 As of December 31, 2019 and June 30, 2020, balances with related parties consisted of the following: December 31, 2019 June 30, 2020 Assets: Working capital advances granted to the Manager (a) $ 759,386 $ 470,848 Liabilities: Related party debt (c) $ 5,000,000 $ 5,000,000 (a) Pavimar: The Company’s ship-owning subsidiaries have each entered into separate vessel management agreements with Pavimar, a company controlled by Ismini Panagiotidis, the sister of Petros Panagiotidis (see Note 1). Pursuant to the terms of the management agreements, Pavimar provides the Company with a wide range of shipping services, including crew management, technical management, operational employment management, insurance arrangements, provisioning, bunkering, accounting, general administration and audit support services, in exchange for a fixed daily fee, for a period beginning upon a vessel’s delivery and until the termination of the agreement. November 13, 2017 and up to December 31, 2019, the daily fixed management fee of the sole vessel in the Company’s fleet at that time, the Magic P , was set at $320 from a previous $250. The daily management fee on the Magic Sun and Magic Moon was set at $500 from their delivery date onwards. Magic P During the six months ended June 30, 2019 and 2020, In addition, each month the Manager makes payments for operating expenses with funds provided in advance by the Company. As of December 31, 2019 and June 30, 2020, amounts of $759,386 and $470,848, respectively, were due from the Manager in relation to these working capital advances granted to it. (b) Alexandria Enterprises S.A: During the six month period ended June 30, 2019, the Company used on a non-recurring basis the commercial services of Alexandria Enterprises S.A., (“Alexandria”) an entity controlled by a family member of the Company’s Chairman, Chief Executive Officer and Chief Financial Officer. In exchange for these services, Alexandria charged the Company a commission rate equal to 1.25% of the gross charter hire, freight and the ballast bonus earned under a charter agreement. Commissions charged by Alexandria during the six month period ended June 30, 2019 amounted to $23,901 and are included in Voyage expenses in the accompanying unaudited interim condensed consolidated statements of comprehensive income/(loss). The Company has stopped using the commercial services of Alexandria since January 1, 2020, and, accordingly, no relevant charges exist for the six month period ended June 30, 2020. As of December 31, 2019 and June 30, 2020, no amounts were due to Alexandria. (c) Thalassa: Details of the Company’s loan agreement with Thalassa are discussed in (Note 3) of the consolidated financial statements for the year ended December 31, 2019, included in the Company’s Annual Report. During the six months ended June 30, 2020, the Company incurred interest costs in connection with the $5.0 million unsecured tern loan with Thalassa (the “$5.0 Million Term Loan Facility”) amounting to $151,667, which are in included in Interest and finance costs in the accompanying unaudited interim consolidated statements of comprehensive income/(loss). As of June 30, 2020, no amounts were prepaid under the $5.0 Million Term Loan Facility. |
Deferred charges, net
Deferred charges, net | 6 Months Ended |
Jun. 30, 2020 | |
Deferred charges, net [Abstract] | |
Deferred charges, net | 4. Deferred charges, net: The movement in the deferred dry-docking costs, net in the accompanying unaudited interim consolidated balance sheets, is as follows: Dry-docking costs Balance December 31, 2019 $ — Additions 564,766 Amortization (33,692 ) Balance June 30, 2020 $ 531,074 On February 14, 2020, the Magic P |
Vessels, net
Vessels, net | 6 Months Ended |
Jun. 30, 2020 | |
Vessels, net [Abstract] | |
Vessels, net | 5. Vessels, net: The amounts in the accompanying unaudited interim consolidated balance sheets are analyzed as follows: Vessel Cost Accumulated depreciation Net Book Value Balance December 31, 2019 $ 24,810,061 $ (1,110,032 ) $ 23,700,029 Additions and other improvements to fleet vessels 484,564 — 484,564 Period depreciation — (660,680 ) (660,680 ) Balance June 30, 2020 $ 25,294,625 $ (1,770,712 ) $ 23,523,913 As of June 30, 2020, all vessels were first priority mortgaged to secured loans of the Company (Note 6). On August 8, 2020, pursuant to an agreement entered into on June 30, 2020 with an unaffiliated third party, the Company took delivery of its fourth Panamax dry bulk carrier vessel, the M/V Magic Rainbow Magic Horizon |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 6. Long-Term Debt: The amount of long-term debt (including related party debt discussed under Note 3) shown in the accompanying consolidated balance sheet of June 30, 2020, is analyzed as follows: Year / Period Ended Debt instruments Borrowers- Issuers December 31, 2019 June 30, 2020 $11.0 Million Alpha Bank Facility (a) Spetses- Pikachu $ 11,000,000 $ 10,200,000 $4.5 Million Chailease Financial Services Facility (b) Bistro — 4,350,000 Total long-term debt $ 11,000,000 $ 14,550,000 Less: Deferred financing costs (242,940 ) (321,780 ) Total long-term debt, net of deferred finance costs $ 10,757,060 14,228,220 Presented: Current portion of long-term debt $ 1,600,000 $ 2,200,000 Less: Current portion of deferred finance costs (77,105 ) (108,938 ) Current portion of long-term debt, net of deferred finance costs $ 1,522,895 $ 2,091,062 Non-Current portion of long-term debt 9,400,000 12,350,000 Less: Non-Current portion of deferred finance costs (165,835 ) (212,842 ) Non-Current portion of long-term debt, net of deferred finance costs $ 9,234,165 $ 12,137,158 Debt instruments from related party $5.0 Million Term Loan Facility (Note 3(c)) Castor 5,000,000 5,000,000 Total long-term debt from related party $ 5,000,000 $ 5,000,000 a. $11.0 Million Alpha Bank Facility: Details of the Company’s $11.0 million senior secured credit facility with Alpha Bank A.E, or the $11.0 Million Alpha Bank Facility, are discussed in (Note 6) of the consolidated financial statements for the year ended December 31, 2019, included in the Company’s 2019 Annual Report. b. $4.5 Million Chailease Financial Services Facility: On January 23, 2020, pursuant to the terms of a credit agreement, Bistro entered into a $4.5 million secured term loan facility with Chailease International Financial Services Co., Ltd., or the Chailease Financial Services Facility. The loan was drawn down on January 31, 2020, is repayable in twenty (20) equal quarterly installments of $150,000 each, plus a balloon installment payable at maturity and bears interest at 4.50% plus LIBOR per annum. The facility contains a standard security package including a first preferred mortgage on the vessel, pledge of bank account, charter assignment, shares pledge and a general assignment over the vessel’s earnings, insurances and any requisition compensation in relation to the vessel owned by the borrower, and is guaranteed by the Company and Pavimar. Pursuant to the terms of the Chailease Financial Services Facility, the Company is also subject to certain minimum liquidity restrictions requiring the borrower to maintain a $400,000 credit balance with the lender (the “Cash Collateral”) as well as certain customary, for this type of facilities, negative covenants. The credit agreement governing the Chailease Financial Services Facility also requires maintenance of a maximum value to loan ratio being the aggregate principal amount of (i) fair market value of the collateral vessel and (ii) the value of any additional security (including the Cash Collateral), to the aggregate principal amount of the loan. c. $5.0 Million Convertible Debentures: On January 27, 2020, the Company entered into a securities purchase agreement with an institutional investor, YAII PN, LTD, or the Investor, pursuant to which, on January 27, 2020, February 10, 2020 and February 19, 2020, the Company issued and sold to the Investor three unsecured convertible debentures that were convertible into shares of the Company’s common stock, in original principal amounts of $2.0 million, $1.5 million and $1.5 million each, respectively (individually, a “Convertible Debenture” and collectively, the “$5.0 Million Convertible Debentures”). The $5.0 Million Convertible Debentures originally matured 12 months from their issuance dates, bore fixed interest at 6% per annum, and were convertible at the Investor’s option, at any time after issuance, into common shares of the Company at the lower of (i) a price of $2.25 per common share or (ii) 90% of the lowest daily volume weighted average price of the common stock during the 10 trading days prior to the conversion date. As of June 8, 2020, the Investor had converted the full principal amount and interest owed with respect to the $5.0 Convertible Debentures aggregating to an amount of $5,057,773 and the Company had issued 8,042,078 common shares in settlement thereof. The Company accounted for the issuance of the convertible debentures in accordance with the BCF guidance in ASC 470-20 and accordingly recognized the BCFs, amounting to $532,437, separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of these features to additional paid-in capital. The intrinsic value of each BCF was calculated at the commitment date as the difference between the conversion price and the fair value of the common stock, multiplied by the number of shares into which the security was convertible. Following the conversions by the Investor of the amounts owed under the $5.0 Million Convertible Debentures, the Company, as of June 30, 2020, recognized all unamortized discounts at the conversion dates as interest expense which is As of June 30, 2020, the Company was in compliance with all financial covenants prescribed in its debt agreements. Restricted cash as of June 30, 2020 and December 31, 2019, includes $500,000 of non-legally restricted cash as per the $11.0 Million Alpha Bank Facility minimum liquidity requirements, or $250,000 per collateralized vessel. The annual principal payments for the Company’s outstanding debt arrangements as of June 30, 2020 (including related party debt discussed under Note 3), required to be made after the balance sheet date, are as follows: Twelve-month period ending June 30, Amount 2021 $ 7,200,000 2022 2,200,000 2023 2,200,000 2024 2,200,000 2025 5,750,000 Total long-term debt (including related party debt) $ 19,550,000 The weighted average interest rate on the Company’s long-term debt for the six months ended June 30, 2020 was 5.4%. Total interest incurred on long-term debt for the six months ended June 30, 2020, amounted to $583,996 and is included in Interest and finance costs in the accompanying unaudited interim consolidated statements of comprehensive income/(loss) (Note 14). |
Equity Capital Structure
Equity Capital Structure | 6 Months Ended |
Jun. 30, 2020 | |
Equity Capital Structure [Abstract] | |
Equity Capital Structure | 7. Equity Capital Structure: Under the Company’s articles of incorporation, the Company’s authorized capital stock consists of 2,000,000,000 shares, par value $0.001 per share, of which 1,950,000,000 shares are designated as common shares and 50,000,000 shares are designated as preferred shares. For a further description of the terms and rights of the Company’s capital stock and details of its previous equity transactions please refer to Note 7 of the consolidated financial statements for the year ended December 31, 2019, included in the Company’s 2019 Annual Report. Issuance of common stock in connection with the $5.0 Million Convertible Debentures During the period from February 20, 2020 to June 8, 2020, the Company issued 8,042,078 common shares upon the conversion of the $5.0 Million Convertible Debentures in their entirety (see Note 6 for further discussion on this topic). Underwritten common stock and Class A Warrants follow-on offering: On June 23, 2020, the Company entered into an agreement with Maxim Group LLC, or Maxim, acting as underwriter pursuant to which it offered and sold 59,110,000 units, each unit consisting of (i) one common share or a pre-funded warrant to purchase one common share at an exercise price equal to $0.01 per common share (a “Pre-Funded Warrant”), and (ii) one Class A Warrant to purchase one common share (a “Class A Warrant”), for $0.35 per unit (or $0.34 per unit including a pre-funded warrant), or the June Equity Offering. The June Equity Offering, which was completed on June 26, 2020, resulted in the issuance of 59,082,686 common shares (the “June Equity Offering Shares”) and 59,110,000 Class A Warrants, which also included 7,710,000 over-allotment units pursuant to an over-allotment option that was exercised by Maxim on June 24, 2020 The Class A Warrants issued in the June Equity Offering have a term of five years and are exercisable immediately and throughout their term for $0.35 per common share (American style option). The exercise price of the Class A Warrants is subject to appropriate adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting the Company’s common shares and also upon any distributions of assets, including cash, stock or other property to existing shareholders. Between their issuance date, being June 26, 2020 and June 30, 2020, there were no exercises of Class A Warrants and, as a result, as of June 30, 2020, 59,110,000 Class A Warrants remained unexercised and potentially issuable into common stock of the Company. The Company accounted for the Class A Warrants as equity in accordance with the accounting guidance under ASC 815-40. The accounting guidance provides a scope exception from classifying and measuring as a financial liability a contract that would otherwise meet the definition of a derivative if the contract is both (i) indexed to the entity’s own stock and (ii) meets the equity classifications conditions. The Company concluded these warrants were equity-classified since they contained no provisions which would require the Company to account for the warrants as a derivative liability, and therefore were initially measured at fair value in permanent equity with subsequent changes in fair value not measured. On initial recognition the fair value of the Class A Warrants was $22.4 million and was determined using the Black-Scholes methodology. The fair value was considered by the Company to be classified as Level 3 in the fair value hierarchy since it was derived by unobservable inputs. The major unobservable input in connection with the valuation of the Class A Warrants was the volatility used in the valuation model, which was approximated by using historical observations of the Company’s share price. The annualized historical volatility that has been applied in the Class A Warrants valuation was 153.5%. A 5% increase in the volatility applied would have led to an increase of 1.4% in the fair value of the Class A Warrants. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments and Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | 8. Financial Instruments and Fair Value Disclosures: The principal financial assets of the Company consist of cash at banks, restricted cash, trade accounts receivable and amounts due from related party. The principal financial liabilities of the Company consist of trade accounts payable and long-term debt (including related party debt). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: ◾ Cash and cash equivalents, restricted cash, trade accounts receivable, amounts due from related party and trade accounts payable: he carrying values reported in the accompanying consolidated balance sheets for those financial instruments are reasonable estimates of their fair values due to their short-term maturity nature. Cash and cash equivalents are considered Level 1 items as they represent liquid assets with short term maturities. The carrying value approximates the fair market value for interest bearing cash classified as restricted cash, non-current and is considered Level 1 item of the fair value hierarchy. The carrying value of these instruments is separately reflected in the accompanying consolidated balance sheets. ◾ Long-term debt: The $11.0 Million Alpha Bank Financing and the discussed in Note 6, have a recorded value which is a reasonable estimate of their fair value due to their variable interest rate and are thus considered Level 2 items in accordance with the fair value hierarchy as LIBOR rates are observable at commonly quoted intervals for the full terms of the loans. The fair value of the fixed interest bearing discussed in Note 3, determined through Level 2 inputs of the fair value hierarchy (quoted prices for identical or similar assets and liabilities in markets that are not active), approximates its recorded value as of June 30, 2020. Concentration of credit risk: |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and contingencies [Abstract] | |
Commitments and contingencies | 9. Commitments and contingencies: Various claims, lawsuits, 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 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 is covered for liabilities associated with the vessels’ actions to the maximum limits as provided by Protection and Indemnity (P&I) Clubs, members of the International Group of P&I Clubs. (a) Commitments under Contracts for BWMS Installation On November 15, 2018, the Company entered into contracts to purchase and install ballast water management systems (“BWMS”) on its dry bulk carriers, which were amended on October 20, 2019, following the acquisition of the Magic Sun Magic Moon Magic Sun Magic P Magic Moon €0.7 million (or $0.8 million on the basis of a Euro/US Dollar exchange rate of €1.0000/$1.1247 as of June 30, 2020) Magic P Magic Sun (b) Commitments under long-term lease contracts During the six-months ended June 30, 2020, the Company reported lease income (gross of charterers’ commissions amounting to $282,059, which excludes the non-cash effect of amortization of deferred ballast revenue amounting to $430,994) of $5.2 million. The Company’s (gross of charterers’ commissions) This amount does not include any assumed off-hire days. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes: Castor and its subsidiaries are incorporated under the laws of the Republic of the Marshall Islands and they are not subject to income taxes in the Republic of the Marshall Islands. Castor’s ship-owning subsidiaries are subject to registration and tonnage taxes, which have been included in Vessel operating expenses in the accompanying consolidated statements of comprehensive income/(loss). The Company and its subsidiaries were not subject to United States federal income taxation in respect of income that is derived from the international operation of ships and the performance of services directly related as they qualified for the exemption of Section 883 of the Internal Revenue Code of 1986, as amended. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Loss Per Share [Abstract] | |
Loss Per Share | 11. Loss Per Share: The Company calculates earnings/(loss) per share by dividing net income/(loss) available to common stockholders in each period by the weighted-average number of common shares outstanding during that period, after adjusting for the effect of cumulative dividends on the Series A Preferred Shares, whether or not earned, and only at periods when dividends on the Series A Preferred Shares are contractually allowed to accumulate. Diluted earnings/(loss) per share, if applicable, reflects the potential dilution that could occur if potentially dilutive instruments were exercised, resulting in the issuance of additional shares that would then share in the Company’s net income. As of June 30, 2020, securities that could potentially dilute basic loss per share that were excluded from the computation of diluted loss per share, because to do so would have been antidilutive for the period presented, were the incremental shares in connection with the 59,110,000 unexercised, as of June 30, 2020, Class A warrants (Note 7), calculated in accordance with the treasury stock method. The Company had no dilutive securities in the six month period ended June 30, 2019. The components of the calculation of basic and diluted net loss per common share in each of the periods comprising the accompanying consolidated unaudited interim condensed statements of comprehensive income/(loss) are as follows: Six months ended June 30, Six months ended June 30, 2019 2020 Net income/(loss) and comprehensive income/(loss) $ 316,572 $ (404,468 ) Less: Cumulative dividends on Series A Preferred Shares (1,670,819 ) — Net loss and comprehensive loss available to common shareholders (1,354,247 ) (404,468 ) Weighted average number of common shares outstanding, basic and diluted 2,400,000 8,027,649 Net loss per common share, basic and diluted $ (0.56 ) $ (0.05 ) |
Vessel Operating and Voyage Exp
Vessel Operating and Voyage Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Vessel Operating and Voyage Expenses [Abstract] | |
Vessel Operating and Voyage Expenses | 12. Vessel Operating and Voyage Expenses: The amounts in the accompanying unaudited interim condensed consolidated statements of comprehensive income/(loss) are analyzed as follows: Six months ended June 30, Six months ended June 30, Vessel Operating Expenses 2019 2020 Crew & crew related costs $ 443,372 $ 1,291,082 Repairs & maintenance, spares, stores, classification, chemicals & gases, paints, victualling 223,111 848,575 Lubricants 75,366 130,009 Insurances 60,884 193,912 Tonnage taxes 18,455 53,840 Other 53,072 86,918 Total vessel operating expenses $ 874,260 $ 2,604,336 Six months ended June 30, Six months ended June 30, Voyage expenses 2019 2020 Brokerage commissions $ 33,579 $ 66,585 Port & other expenses 11,895 55,281 Bunkers consumption — 122,469 Loss on bunkers 12,475 15,265 Total voyage expenses $ 57,949 $ 259,600 |
General and Administrative Expe
General and Administrative Expenses | 6 Months Ended |
Jun. 30, 2020 | |
General and Administrative Expenses [Abstract] | |
General and Administrative Expenses | 13. General and Administrative Expenses: General and administrative expenses include costs in relation to the administration of the Company and its non-recurring public registration costs. Company Administration Expenses: Six months ended June 30, Six months ended June 30, 2019 2020 Audit fees $ 40,585 $ 48,640 Board members and executive compensation 6,000 16,000 Other professional fees 66,835 172,996 Total $ 113,420 $ 237,636 Public Registration Costs: |
Interest and Finance Costs
Interest and Finance Costs | 6 Months Ended |
Jun. 30, 2020 | |
Interest and Finance Costs [Abstract] | |
Interest and Finance Costs | 14. Interest and Finance Costs: The amounts in the accompanying unaudited interim consolidated balance sheets are analyzed as follows: Six months ended June 30, Six months ended June 30, 2019 2020 Interest on long-term debt – third parties $ — $ 374,556 Interest on long-term debt – related party (Note 3 (c)) — 151,667 Interest on convertible debt – non cash (Note 6) — 57,773 Amortization and write-off of deferred finance charges — 541,441 Amortization and write-off of convertible notes beneficial conversion feature — 532,437 Other finance charges 1,554 7,954 Total $ 1,554 $ 1,665,828 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events: (a) July Equity Offering: (b) Acquisition of New Panamax vessel (to be named M/V Magic Horizon ): On July 28, 2020, the Company entered into an agreement with an unaffiliated third party for the purchase of a secondhand Panamax dry bulk carrier vessel at a gross purchase price of $12.75 million. The Company expects to finance the vessel acquisition with cash on hand that it raised in the June Equity Offering and the July Equity Offering and delivery of the vessel from its sellers is expected to take place . (c) Class A Warrants Update: Subsequent to June 30, 2020 and up to (d) New Management Agreements with Castor Ships: On September 1, 2020, the Company and its shipowning subsidiaries entered into a master management agreement (the “Master Agreement”) with Castor Ships S.A. (“Castor Ships”), a company ultimately beneficially owned by the Company’s Chairman, Chief Executive Officer and Chief Financial Officer. Pursuant to the terms of the Master Agreement each of the Company’s shipowning subsidiaries also entered into separate commercial shipmanagement agreements with Castor Ships (the “Commercial Shipmanagement Agreements” and together with the Master Agreement, the “Castor Ships Management Agreements”). Under the terms of the Castor Ships Management Agreements, having all September 1, 2020 as their effective date, Castor Ships manages overall the Company’s business and provides commercial, chartering and administrative services, including, but not limited to, securing employment for the Company’s fleet, arranging and supervising the vessels’ commercial operations, handling all the Company’s vessel sale and purchase transactions, undertaking related shipping project and management advisory and support services, as well as other associated services requested from time to time by the Company and its shipowning subsidiaries. In exchange for these services, the Company and its subsidiaries will pay Castor Ships (i) a flat quarterly management fee in the amount of $0.3 million for the management and administration of the Company’s business, (ii) a daily fee of $250 per vessel for the provision of the services under the Commercial Shipmanagement Agreements, (iii) a commission rate of 1.25% on all charter agreements arranged by Castor Ships and (iv) a commission of 1% per transaction in connection with any sale or purchase of vessels for the Company. The Castor Ships Management Agreements have a term of five years and such term automatically renews for successive five-year terms on each anniversary of the effective date, unless the agreements are terminated earlier in accordance with the provisions contained therein. In the event that the Castor Ships Management Agreements are terminated by the Company, or are terminated by Castor Ships due to a material breach of the Master Agreement by the Company or a change of control in the Company, Castor Ships shall be entitled to a termination fee equal to four times the total amount of the flat management fee and the per vessel management fees calculated on an annual basis. (e) Revised Management Agreements with Pavimar: On September 1, 2020, the Company’s shipowning subsidiaries entered into revised shipmanagement agreements with Pavimar which replaced the existing shipmanagement agreements in their entirety (the “Technical Shipmanagement Agreements”). Pursuant to the Technical Shipmanagement Agreements, effective September 1, 2020, Pavimar will continue to provide the range of technical, crewing, insurance and operational services stipulated in the previous agreements in exchange for which Pavimar will be paid a daily fee of $600 per vessel, versus the previous daily fee of $500 per vessel. The Pavimar Shipmanagement Agreements also provide for an automatically renewable five-year term and related termination provisions. |
Basis of Presentation and Gen_2
Basis of Presentation and General information (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation and General information [Abstract] | |
Basis of Presentation | The accompanying unaudited interim condensed consolidated financial statements include the accounts of Castor and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These statements and the accompanying notes should be read in conjunction with the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2019, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2020 (the “2019 Annual Report”). |
Change of Fiscal Year | On September 27, 2019, the Company’s Board of Directors authorized a change in Castor’s fiscal year end from September 30 to December 31. As a result, the Company’s comparative unaudited interim condensed consolidated financial statements have been prepared on the basis of the revised fiscal year end. In the opinion of management, these financial statements reflect all adjustments which include normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. Operating results for the six-month period ended June 30, 2020 are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2020. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Significant Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Convertible Debt and Associated Beneficial Conversion Features | Convertible debt and associated beneficial conversion features Convertible debt is accounted in accordance with ASC 470-20, Debt with Conversion and Other Options. 815, Derivatives and Hedging, or separately accounted for under the cash conversion literature of ASC 470-20, Debt with Conversion and Other Options. In relation to the Company’s issued $5.0 million senior unsecured convertible debentures (Note 6), the terms of each convertible debenture included an embedded conversion feature which provided for a conversion at the option of the holder into shares of common stock at an adjustable conversion ratio. The Company determined that the conversion features were beneficial conversion features (“BCF”) pursuant to ASC 470-20. The Company considered the BCF guidance only after determining that the features did not need to be bifurcated under ASC 815, Derivatives and Hedging, or separately accounted for under the cash conversion literature of ASC 470-20, Debt with Conversion and Other Options. The BCF is recognized separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of the BCF to additional paid-in capital, resulting in a discount on the convertible instrument. This discount is accreted from the date on which the BCF is first recognized through the stated maturity date of the convertible instrument using the effective interest method. Upon conversion of an instrument with a BCF, all unamortized discounts at the conversion date are recognized immediately as interest expense. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: There are no recent accounting pronouncements the adoption of which are expected to have a material effect on the Company’s unaudited interim consolidated condensed financial statements in the current period. |
Basis of Presentation and Gen_3
Basis of Presentation and General Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation and General information [Abstract] | |
Consolidated Subsidiaries | As of June 30, 2020, the Company was the sole owner of all outstanding shares of the following subsidiary companies: Vessel owning subsidiaries consolidated: Company Country of incorporation Vessel Name DWT Year Built Delivery date to Castor Spetses Shipping Co. (“Spetses”) Marshall Islands Magic P 76,453 2004 February 2017 Bistro Maritime Co. (“Bistro”) Marshall Islands Magic Sun 75,311 2001 September 2019 Pikachu Shipping Co. (“Pikachu”) Marshall Islands Magic Moon 76,602 2005 October 2019 Subsidiaries consolidated formed to acquire vessel: Company Country of incorporation Bagheera Shipping Co. (“Bagheera”) Marshall Islands |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Transactions with Related Parties [Abstract] | |
Transactions with Related Parties | During the six month periods ended June 30, 2019 and 2020, the Company incurred the following charges in connection with related party transactions, which are included in the accompanying unaudited interim condensed consolidated statements of comprehensive income/(loss): Six months ended June 30, Six months ended June 30, 2019 2020 Management fees-related party Management fees (a) $ 57,920 $ 273,000 Included in Voyage expenses Charter hire commissions (b) $ 23,901 $ — Included in Interest and finance costs Interest expenses (c) $ — $ 151,667 As of December 31, 2019 and June 30, 2020, balances with related parties consisted of the following: December 31, 2019 June 30, 2020 Assets: Working capital advances granted to the Manager (a) $ 759,386 $ 470,848 Liabilities: Related party debt (c) $ 5,000,000 $ 5,000,000 |
Deferred charges, net (Tables)
Deferred charges, net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deferred charges, net [Abstract] | |
Deferred Dry-Docking Costs, Net | The movement in the deferred dry-docking costs, net in the accompanying unaudited interim consolidated balance sheets, is as follows: Dry-docking costs Balance December 31, 2019 $ — Additions 564,766 Amortization (33,692 ) Balance June 30, 2020 $ 531,074 |
Vessels, net (Tables)
Vessels, net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Vessels, net [Abstract] | |
Vessels, Net | The amounts in the accompanying unaudited interim consolidated balance sheets are analyzed as follows: Vessel Cost Accumulated depreciation Net Book Value Balance December 31, 2019 $ 24,810,061 $ (1,110,032 ) $ 23,700,029 Additions and other improvements to fleet vessels 484,564 — 484,564 Period depreciation — (660,680 ) (660,680 ) Balance June 30, 2020 $ 25,294,625 $ (1,770,712 ) $ 23,523,913 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt Including Related Party Debt | The amount of long-term debt (including related party debt discussed under Note 3) shown in the accompanying consolidated balance sheet of June 30, 2020, is analyzed as follows: Year / Period Ended Debt instruments Borrowers- Issuers December 31, 2019 June 30, 2020 $11.0 Million Alpha Bank Facility (a) Spetses- Pikachu $ 11,000,000 $ 10,200,000 $4.5 Million Chailease Financial Services Facility (b) Bistro — 4,350,000 Total long-term debt $ 11,000,000 $ 14,550,000 Less: Deferred financing costs (242,940 ) (321,780 ) Total long-term debt, net of deferred finance costs $ 10,757,060 14,228,220 Presented: Current portion of long-term debt $ 1,600,000 $ 2,200,000 Less: Current portion of deferred finance costs (77,105 ) (108,938 ) Current portion of long-term debt, net of deferred finance costs $ 1,522,895 $ 2,091,062 Non-Current portion of long-term debt 9,400,000 12,350,000 Less: Non-Current portion of deferred finance costs (165,835 ) (212,842 ) Non-Current portion of long-term debt, net of deferred finance costs $ 9,234,165 $ 12,137,158 Debt instruments from related party $5.0 Million Term Loan Facility (Note 3(c)) Castor 5,000,000 5,000,000 Total long-term debt from related party $ 5,000,000 $ 5,000,000 |
Annual Principal Payments | The annual principal payments for the Company’s outstanding debt arrangements as of June 30, 2020 (including related party debt discussed under Note 3), required to be made after the balance sheet date, are as follows: Twelve-month period ending June 30, Amount 2021 $ 7,200,000 2022 2,200,000 2023 2,200,000 2024 2,200,000 2025 5,750,000 Total long-term debt (including related party debt) $ 19,550,000 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loss Per Share [Abstract] | |
Calculation of Basic and Diluted Loss per Share | The components of the calculation of basic and diluted net loss per common share in each of the periods comprising the accompanying consolidated unaudited interim condensed statements of comprehensive income/(loss) are as follows: Six months ended June 30, Six months ended June 30, 2019 2020 Net income/(loss) and comprehensive income/(loss) $ 316,572 $ (404,468 ) Less: Cumulative dividends on Series A Preferred Shares (1,670,819 ) — Net loss and comprehensive loss available to common shareholders (1,354,247 ) (404,468 ) Weighted average number of common shares outstanding, basic and diluted 2,400,000 8,027,649 Net loss per common share, basic and diluted $ (0.56 ) $ (0.05 ) |
Vessel Operating and Voyage E_2
Vessel Operating and Voyage Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Vessel Operating and Voyage Expenses [Abstract] | |
Vessel Operating Expenses | The amounts in the accompanying unaudited interim condensed consolidated statements of comprehensive income/(loss) are analyzed as follows: Six months ended June 30, Six months ended June 30, Vessel Operating Expenses 2019 2020 Crew & crew related costs $ 443,372 $ 1,291,082 Repairs & maintenance, spares, stores, classification, chemicals & gases, paints, victualling 223,111 848,575 Lubricants 75,366 130,009 Insurances 60,884 193,912 Tonnage taxes 18,455 53,840 Other 53,072 86,918 Total vessel operating expenses $ 874,260 $ 2,604,336 |
Voyage Expenses | Six months ended June 30, Six months ended June 30, Voyage expenses 2019 2020 Brokerage commissions $ 33,579 $ 66,585 Port & other expenses 11,895 55,281 Bunkers consumption — 122,469 Loss on bunkers 12,475 15,265 Total voyage expenses $ 57,949 $ 259,600 |
General and Administrative Ex_2
General and Administrative Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
General and Administrative Expenses [Abstract] | |
Company Administration Expenses | are analyzed as follows: Six months ended June 30, Six months ended June 30, 2019 2020 Audit fees $ 40,585 $ 48,640 Board members and executive compensation 6,000 16,000 Other professional fees 66,835 172,996 Total $ 113,420 $ 237,636 |
Interest and Finance Costs (Tab
Interest and Finance Costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Interest and Finance Costs [Abstract] | |
Interest and Finance Costs | The amounts in the accompanying unaudited interim consolidated balance sheets are analyzed as follows: Six months ended June 30, Six months ended June 30, 2019 2020 Interest on long-term debt – third parties $ — $ 374,556 Interest on long-term debt – related party (Note 3 (c)) — 151,667 Interest on convertible debt – non cash (Note 6) — 57,773 Amortization and write-off of deferred finance charges — 541,441 Amortization and write-off of convertible notes beneficial conversion feature — 532,437 Other finance charges 1,554 7,954 Total $ 1,554 $ 1,665,828 |
Basis of Presentation and Gen_4
Basis of Presentation and General information, General Information (Details) - Thalassa [Member] | Jun. 30, 2020 |
Series B Preferred Shares [Member] | |
General Information [Abstract] | |
Percentage of shares held | 100.00% |
Common Shares [Member] | |
General Information [Abstract] | |
Percentage of shares held | 1.60% |
Basis of Presentation and Gen_5
Basis of Presentation and General information, Consolidated Subsidiaries (Details) | 6 Months Ended |
Jun. 30, 2020t | |
Spetses Shipping Co. [Member] | |
Subsidiaries in Consolidation [Abstract] | |
Country of incorporation | 1T |
Vessel name | Magic P |
Spetses Shipping Co. [Member] | Magic P [Member] | |
Subsidiaries in Consolidation [Abstract] | |
DWT | 76,453 |
Year built | 2004 |
Delivery date to Castor | 2017-02 |
Bistro Maritime Co. [Member] | |
Subsidiaries in Consolidation [Abstract] | |
Country of incorporation | 1T |
Vessel name | Magic Sun |
Bistro Maritime Co. [Member] | Magic Sun [Member] | |
Subsidiaries in Consolidation [Abstract] | |
DWT | 75,311 |
Year built | 2001 |
Delivery date to Castor | 2019-09 |
Pikachu Shipping Co. [Member] | |
Subsidiaries in Consolidation [Abstract] | |
Country of incorporation | 1T |
Vessel name | Magic Moon |
Pikachu Shipping Co. [Member] | Magic Moon [Member] | |
Subsidiaries in Consolidation [Abstract] | |
DWT | 76,602 |
Year built | 2005 |
Delivery date to Castor | 2019-10 |
Bagheera Shipping Co. [Member] | |
Subsidiaries in Consolidation [Abstract] | |
Country of incorporation | 1T |
Significant Accounting Polici_3
Significant Accounting Policies and Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 08, 2020 | Feb. 19, 2020 | Feb. 10, 2020 | Jan. 27, 2020 |
$5.0 Million Convertible Debentures [Member] | |||||
Convertible Debt and Associated Beneficial Conversion Features [Abstract] | |||||
Face amount | $ 5 | $ 5 | $ 1.5 | $ 1.5 | $ 2 |
Transactions with Related Par_3
Transactions with Related Parties, Summary (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Transactions with Related Parties [Abstract] | |||
Management fees | $ 273,000 | $ 57,920 | |
Interest expenses | 151,667 | 0 | |
Balances with Related Parties [Abstract] | |||
Working capital advances granted to the Manager | 470,848 | $ 759,386 | |
Pavimar [Member] | Vessel Management Agreements [Member] | |||
Transactions with Related Parties [Abstract] | |||
Management fees | 273,000 | 57,920 | |
Balances with Related Parties [Abstract] | |||
Working capital advances granted to the Manager | 470,848 | 759,386 | |
Alexandria [Member] | Commercial Management Services [Member] | Voyage Expenses [Member] | |||
Transactions with Related Parties [Abstract] | |||
Charter hire commissions | 0 | 23,901 | |
Thalassa [Member] | Interest and Finance Costs [Member] | |||
Transactions with Related Parties [Abstract] | |||
Interest expenses | 151,667 | $ 0 | |
Thalassa [Member] | $5.0 Million Term Loan Facility [Member] | |||
Balances with Related Parties [Abstract] | |||
Related party debt | 5,000,000 | $ 5,000,000 | |
Thalassa [Member] | $5.0 Million Term Loan Facility [Member] | Interest and Finance Costs [Member] | |||
Transactions with Related Parties [Abstract] | |||
Interest expenses | $ 151,667 |
Transactions with Related Par_4
Transactions with Related Parties, Pavimar (Details) | 6 Months Ended | ||||
Jun. 30, 2020USD ($)$ / d | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Nov. 13, 2017$ / d | Nov. 12, 2017$ / d | |
Transactions with Related Parties [Abstract] | |||||
Management fees to related party | $ 273,000 | $ 57,920 | |||
Due from related party | 470,848 | $ 759,386 | |||
Pavimar [Member] | Vessel Management Agreements [Member] | |||||
Transactions with Related Parties [Abstract] | |||||
Management fees to related party | 273,000 | $ 57,920 | |||
Due from related party | $ 470,848 | $ 759,386 | |||
Pavimar [Member] | Vessel Management Agreement - Magic P [Member] | |||||
Transactions with Related Parties [Abstract] | |||||
Daily fee for services | $ / d | 500 | 320 | 250 | ||
Pavimar [Member] | Vessel Management Agreement - Magic Sun [Member] | |||||
Transactions with Related Parties [Abstract] | |||||
Daily fee for services | $ / d | 500 | ||||
Pavimar [Member] | Vessel Management Agreement - Magic Moon [Member] | |||||
Transactions with Related Parties [Abstract] | |||||
Daily fee for services | $ / d | 500 |
Transactions with Related Par_5
Transactions with Related Parties, Alexandria Enterprises S.A. (Details) - Alexandria [Member] - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Transactions with Related Parties [Abstract] | |||
Due to related party | $ 0 | $ 0 | |
Commercial Services [Member] | |||
Transactions with Related Parties [Abstract] | |||
Commission rate | 1.25% | ||
Commercial Services [Member] | Voyage Expenses [Member] | |||
Transactions with Related Parties [Abstract] | |||
Charter hire commissions | $ 0 | $ 23,901 |
Transactions with Related Par_6
Transactions with Related Parties, Thalassa (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Transactions with Related Parties [Abstract] | |||
Interest expenses | $ 151,667 | $ 0 | |
Thalassa [Member] | Interest and Finance Costs [Member] | |||
Transactions with Related Parties [Abstract] | |||
Interest expenses | 151,667 | $ 0 | |
Thalassa [Member] | $5.0 Million Term Loan Facility [Member] | |||
Transactions with Related Parties [Abstract] | |||
Long-term debt, related party | 5,000,000 | $ 5,000,000 | |
Repayment of loan | 0 | ||
Thalassa [Member] | $5.0 Million Term Loan Facility [Member] | Interest and Finance Costs [Member] | |||
Transactions with Related Parties [Abstract] | |||
Interest expenses | $ 151,667 |
Deferred charges, net (Details)
Deferred charges, net (Details) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Deferred charges, net [Abstract] | |
Balance at beginning of period | $ 0 |
Additions | 564,766 |
Amortization | (33,692) |
Balance at end of period | $ 531,074 |
Vessels, net (Details)
Vessels, net (Details) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Net Book Value [Abstract] | |
Beginning balance | $ 23,700,029 |
Ending balance | 23,523,913 |
Vessels [Member] | |
Vessel Cost [Abstract] | |
Beginning balance | 24,810,061 |
Additions and other improvements to fleet vessels | 484,564 |
Ending balance | 25,294,625 |
Accumulated Depreciation [Abstract] | |
Beginning balance | (1,110,032) |
Period depreciation | (660,680) |
Ending balance | (1,770,712) |
Net Book Value [Abstract] | |
Beginning balance | 23,700,029 |
Ending balance | $ 23,523,913 |
Long-Term Debt, Long-Term Debt
Long-Term Debt, Long-Term Debt Including Related Party Debt (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jan. 23, 2020 | Dec. 31, 2019 | |
Debt Instruments [Abstract] | |||
Long-term debt | $ 14,550,000 | $ 11,000,000 | |
Less: Deferred financing costs | (321,780) | (242,940) | |
Total long-term debt, net of deferred finance costs | 14,228,220 | 10,757,060 | |
Presented [Abstract] | |||
Current portion of long-term debt | 2,200,000 | 1,600,000 | |
Less: Current portion of deferred finance costs | (108,938) | (77,105) | |
Current portion of long-term debt, net of deferred finance costs | 2,091,062 | 1,522,895 | |
Non-Current portion of long-term debt | 12,350,000 | 9,400,000 | |
Less: Non-Current portion of deferred finance costs | (212,842) | (165,835) | |
Non-Current portion of long-term debt, net of deferred finance costs | 12,137,158 | 9,234,165 | |
Thalassa [Member] | |||
Debt Instruments [Abstract] | |||
Long-term debt | 5,000,000 | 5,000,000 | |
$11.0 Million Alpha Bank Financing [Member] | |||
Debt Instruments [Abstract] | |||
Face amount | $ 11,000,000 | ||
Borrowers - Issuers | Spetses- Pikachu | ||
Long-term debt | $ 10,200,000 | 11,000,000 | |
$4.5 Million Chailease Financial Services Facility [Member] | |||
Debt Instruments [Abstract] | |||
Face amount | $ 4,500,000 | $ 4,500,000 | |
Borrowers - Issuers | Bistro | ||
Long-term debt | $ 4,350,000 | 0 | |
$5.0 Million Term Loan Facility [Member] | Thalassa [Member] | |||
Debt Instruments [Abstract] | |||
Face amount | $ 5,000,000 | ||
Borrowers - Issuers | Castor | ||
Long-term debt | $ 5,000,000 | $ 5,000,000 |
Long-Term Debt, $11.0 Million A
Long-Term Debt, $11.0 Million Alpha Bank Facility (Details) $ in Millions | Jun. 30, 2020USD ($) |
$11.0 Million Alpha Bank Financing [Member] | |
Long-Term Debt [Abstract] | |
Face amount | $ 11 |
Long-Term Debt, $4.5 Million Ch
Long-Term Debt, $4.5 Million Chailease Financing Services Facility (Details) | 6 Months Ended | |
Jun. 30, 2020USD ($)Installment | Jan. 23, 2020USD ($) | |
Long-Term Debt [Abstract] | ||
Cash Collateral deposit | $ 400,000 | |
Cash Collateral deposit, current | $ 200,000 | |
Prepaid Expense and Other Assets, Non-Current [Member] | ||
Long-Term Debt [Abstract] | ||
Cash Collateral deposit, noncurrent | 200,000 | |
$4.5 Million Chailease Financial Services Facility [Member] | ||
Long-Term Debt [Abstract] | ||
Face amount | $ 4,500,000 | $ 4,500,000 |
Number of payment installments | Installment | 20 | |
Frequency of periodic payment | Quarterly | |
Quarterly installment amount | $ 150,000 | |
$4.5 Million Chailease Financial Services Facility [Member] | LIBOR [Member] | ||
Long-Term Debt [Abstract] | ||
Margin on variable rate | 4.50% |
Long-Term Debt, $5.0 Million Co
Long-Term Debt, $5.0 Million Convertible Debentures (Details) | Jan. 27, 2020USD ($)$ / shares | Feb. 19, 2020USD ($)Debenture | Jun. 08, 2020USD ($)shares | Jun. 08, 2020USD ($)shares | Jun. 30, 2020USD ($)d | Jun. 30, 2019USD ($) | Feb. 10, 2020USD ($) |
Long-Term Debt [Abstract] | |||||||
Converted amount of debt | $ 5,057,773 | $ 0 | |||||
$5.0 Million Convertible Debentures [Member] | |||||||
Long-Term Debt [Abstract] | |||||||
Number of unsecured convertible debentures issued and sold | Debenture | 3 | ||||||
Face amount | $ 2,000,000 | $ 1,500,000 | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | $ 1,500,000 | |
Maturity period | 12 months | ||||||
Interest rate | 6.00% | ||||||
Conversion price (in dollars per share) | $ / shares | $ 2.25 | ||||||
Percentage of common stock price paid if redemption price is paid in common shares | 90.00% | ||||||
Number of trading days | d | 10 | ||||||
Converted amount of debt | $ 5,057,773 | ||||||
Shares issued upon conversion of debt (in shares) | shares | 8,042,078 | 8,042,078 | |||||
Aggregate amount of BCF | $ 532,437 |
Long-Term Debt, Annual Principa
Long-Term Debt, Annual Principal Payments (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Long-Term Debt [Abstract] | ||
Restricted cash | $ 500,000 | $ 500,000 |
Annual Principal Payments [Abstract] | ||
Total long-term debt | 14,550,000 | 11,000,000 |
Interest incurred on long-term debt | 583,996 | |
$11.0 Million Alpha Bank Financing [Member] | ||
Long-Term Debt [Abstract] | ||
Restricted cash | 500,000 | 500,000 |
Minimum liquidity deposit per vessel | 250,000 | |
Annual Principal Payments [Abstract] | ||
Total long-term debt | 10,200,000 | $ 11,000,000 |
Long-Term Debt (Including Related Party Debt) [Member] | ||
Annual Principal Payments [Abstract] | ||
2021 | 7,200,000 | |
2022 | 2,200,000 | |
2023 | 2,200,000 | |
2024 | 2,200,000 | |
2025 | 5,750,000 | |
Total long-term debt | $ 19,550,000 | |
Weighted average interest rate | 5.40% |
Equity Capital Structure, Capit
Equity Capital Structure, Capital Stock (Details) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Equity Capital Structure [Abstract] | ||
Capital, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Capital shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, shares authorized (in shares) | 1,950,000,000 | 1,950,000,000 |
Preferred shares, authorized (in shares) | 50,000,000 | 50,000,000 |
Equity Capital Structure, Issua
Equity Capital Structure, Issuance of Common Stock in Connection with Convertible Debentures (Details) - $5.0 Million Convertible Debentures [Member] - USD ($) $ in Millions | 4 Months Ended | |||||
Jun. 08, 2020 | Jun. 08, 2020 | Jun. 30, 2020 | Feb. 19, 2020 | Feb. 10, 2020 | Jan. 27, 2020 | |
Equity Capital Structure [Abstract] | ||||||
Shares issued upon conversion of debt (in shares) | 8,042,078 | 8,042,078 | ||||
Face amount | $ 5 | $ 5 | $ 5 | $ 1.5 | $ 1.5 | $ 2 |
Equity Capital Structure, Under
Equity Capital Structure, Underwritten Common Stock and Class A Warrants Follow-On Offering (Details) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 26, 2020USD ($)shares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 23, 2020$ / sharesshares |
Equity Capital Structure [Abstract] | |||||
Gross proceeds from issuance of common stock and warrants | $ | $ 20,671,500 | $ 0 | |||
Term of warrant | 5 years | 5 years | |||
Warrants exercised (in shares) | 0 | ||||
Warrants outstanding (in shares) | 59,110,000 | 59,110,000 | |||
Fair value of warrants | $ | $ 22,400,000 | $ 22,400,000 | |||
Class A Warrant [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Warrant exercise price per share (in dollars per share) | $ / shares | $ 0.35 | $ 0.35 | |||
Percentage increase in volatility causing increase in fair value of warrants | 5.00% | ||||
Percentage increase in fair value of warrants due to increase in volatility | 1.40% | ||||
Class A Warrant [Member] | Historical Volatility Measurement Input [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Measurement input | 1.535 | 1.535 | |||
Common Stock [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Issuance of common stock (in shares) | 59,082,686 | ||||
June Equity Offering [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Number of units included in June Equity Offering (in shares) | 59,110,000 | ||||
Issuance of common stock (in shares) | 59,082,686 | ||||
Issuance of warrants (in shares) | 59,110,000 | ||||
Gross proceeds from issuance of common stock and warrants | $ | $ 20,700,000 | ||||
Net proceeds from issuance of common stock and warrants | $ | $ 18,600,000 | ||||
June Equity Offering [Member] | Prefunded Warrant [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Number of securities included in each unit offered (in shares) | 1 | ||||
Number of securities called by each warrant (in shares) | 1 | ||||
Warrant exercise price per share (in dollars per share) | $ / shares | $ 0.01 | ||||
June Equity Offering [Member] | Class A Warrant [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Number of securities included in each unit offered (in shares) | 1 | ||||
Number of securities called by each warrant (in shares) | 1 | ||||
Warrant exercise price per share (in dollars per share) | $ / shares | $ 0.35 | ||||
June Equity Offering [Member] | Class A and Prefunded Warrant [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Warrant exercise price per share (in dollars per share) | $ / shares | $ 0.34 | ||||
June Equity Offering [Member] | Common Stock [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Number of securities included in each unit offered (in shares) | 1 | ||||
Over-Allotment Option [Member] | |||||
Equity Capital Structure [Abstract] | |||||
Issuance of units (in shares) | 7,710,000 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jan. 23, 2020 |
$11.0 Million Alpha Bank Financing [Member] | ||
Financial Instruments and Fair Value Disclosures [Abstract] | ||
Face amount | $ 11 | |
$4.5 Million Chailease Financial Services Facility [Member] | ||
Financial Instruments and Fair Value Disclosures [Abstract] | ||
Face amount | 4.5 | $ 4.5 |
$5.0 Million Term Loan Facility [Member] | Thalassa [Member] | ||
Financial Instruments and Fair Value Disclosures [Abstract] | ||
Face amount | $ 5 |
Commitments and contingencies (
Commitments and contingencies (Details) € in Millions | 6 Months Ended | ||
Jun. 30, 2020USD ($)€ / $ | Jun. 30, 2019USD ($) | Jun. 30, 2020EUR (€)€ / $ | |
Commitments under long-term lease contracts [Abstract] | |||
Address Commissions | $ 282,059 | $ 88,154 | |
Amortization of deferred ballast revenue | 430,994 | $ 0 | |
Lease income | 5,200,000 | ||
Future minimum contracted lease payments due within next 12 months | 1,900,000 | ||
Purchase Commitment for Ballast Water Management Systems [Member] | |||
Commitments Under Contracts for BWMS Installation [Abstract] | |||
Contractual purchase obligations | $ 800,000 | € 0.7 | |
Exchange rate | € / $ | 0.8891 | 0.8891 | |
Purchase Commitment for Ballast Water Management Systems [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Commitments Under Contracts for BWMS Installation [Abstract] | |||
Advances for purchase commitment | $ 39,969 |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Loss Per Share [Abstract] | ||
Dilutive shares (in shares) | 0 | |
Net income/(loss) | $ (404,468) | $ 316,572 |
Comprehensive income/(loss) | (404,468) | 316,572 |
Less: Cumulative dividends on Series A Preferred Shares | 0 | (1,670,819) |
Net loss and comprehensive loss available to common shareholders | $ (404,468) | $ (1,354,247) |
Weighted average number of common shares outstanding, basic and diluted (in shares) | 8,027,649 | 2,400,000 |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.05) | $ (0.56) |
Class A Warrants [Member] | ||
Loss Per Share [Abstract] | ||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 59,110,000 |
Vessel Operating and Voyage E_3
Vessel Operating and Voyage Expenses (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Vessel Operating Expenses [Abstract] | ||
Crew & crew related costs | $ 1,291,082 | $ 443,372 |
Repairs & maintenance, spares, stores, classification, chemicals & gases, paints, victualling | 848,575 | 223,111 |
Lubricants | 130,009 | 75,366 |
Insurances | 193,912 | 60,884 |
Tonnage taxes | 53,840 | 18,455 |
Other | 86,918 | 53,072 |
Total vessel operating expenses | 2,604,336 | 874,260 |
Voyage Expenses [Abstract] | ||
Brokerage commissions | 66,585 | 33,579 |
Port & other expenses | 55,281 | 11,895 |
Bunkers consumption | 122,469 | 0 |
Loss on bunkers | 15,265 | 12,475 |
Total voyage expenses | $ 259,600 | $ 57,949 |
General and Administrative Ex_3
General and Administrative Expenses (Details) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Feb. 11, 2019 | Dec. 21, 2018 | |
General and Administrative Expenses [Abstract] | |||||
Audit fees | $ 48,640 | $ 40,585 | |||
Board members and executive compensation | 16,000 | 6,000 | |||
Other professional fees | 172,996 | 66,835 | |||
Total | 237,636 | 113,420 | |||
Public registration costs | $ 0 | $ 132,091 | |||
Common shares, issued (in shares) | 70,442,876 | 3,318,112 | 2,400,000 | 2,400,000 | |
Common shares, outstanding (in shares) | 70,442,876 | 3,318,112 | 2,400,000 | 2,400,000 |
Interest and Finance Costs (Det
Interest and Finance Costs (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Interest and Finance Costs [Abstract] | ||
Interest on long-term debt - third parties | $ 374,556 | $ 0 |
Interest on long-term debt - related party (Note 3 (c)) | 151,667 | 0 |
Interest on convertible debt - non cash (Note 6) | 57,773 | 0 |
Amortization and write-off of deferred finance charges | 541,441 | 0 |
Amortization and write-off of convertible notes beneficial conversion feature | 532,437 | 0 |
Other finance charges | 7,954 | 1,554 |
Total | $ 1,665,828 | $ 1,554 |
Subsequent Events (Details)
Subsequent Events (Details) | Sep. 01, 2020USD ($)$ / d | Jul. 15, 2020USD ($)$ / sharesshares | Sep. 08, 2020USD ($)shares | Jun. 30, 2020USD ($)$ / shares | Jun. 30, 2019USD ($) | Jul. 28, 2020USD ($) |
Registered Direct Offering [Abstract] | ||||||
Gross proceeds from issuance of common stock and warrants | $ 20,671,500 | $ 0 | ||||
Class A Warrants [Member] | ||||||
Registered Direct Offering [Abstract] | ||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.35 | |||||
Subsequent Event [Member] | Castor Ships [Member] | Management Agreements [Member] | ||||||
Management Agreements [Abstract] | ||||||
Quarterly management fee | $ 300,000 | |||||
Daily fee per vessel for services | $ / d | 250 | |||||
Commission rate on charter agreements | 1.25% | |||||
Commission rate in connection with sale or purchase of vessels | 1.00% | |||||
Term of agreements | 5 years | |||||
Renewal term of agreements | 5 years | |||||
Termination fee multiplier | 4 | |||||
Subsequent Event [Member] | Pavimar [Member] | Technical Shipmanagement Agreements [Member] | ||||||
Management Agreements [Abstract] | ||||||
Daily fee per vessel for services | $ / d | 600 | |||||
Subsequent Event [Member] | Class A Warrants [Member] | ||||||
Class A Warrants Update [Abstract] | ||||||
Warrants exercised (in shares) | shares | 3,019,500 | |||||
Proceeds from exercise of warrants | $ 1,100,000 | |||||
Subsequent Event [Member] | Panamax Vessel [Member] | ||||||
Acquisition of New Panamax Vessel [Abstract] | ||||||
Purchase price of vessel | $ 12,750,000 | |||||
Subsequent Event [Member] | July Equity Offering [Member] | ||||||
Registered Direct Offering [Abstract] | ||||||
Gross proceeds from issuance of common stock and warrants | $ 17,300,000 | |||||
Subsequent Event [Member] | Registered Direct Offering [Member] | ||||||
Registered Direct Offering [Abstract] | ||||||
Issuance of common stock (in shares) | shares | 57,750,000 | |||||
Offering price (in dollars per share) | $ / shares | $ 0.30 | |||||
Subsequent Event [Member] | Private Placement [Member] | ||||||
Registered Direct Offering [Abstract] | ||||||
Number of securities called by warrants (in shares) | shares | 57,750,000 | |||||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.35 |