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Financial Instruments and Fair Value Disclosures
 6 Months Ended
Jun. 30, 2024
Financial Instruments and Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Disclosures
14.
 
Financial Instruments and Fair Value Disclosures
Interest rate risk and concentration of credit risk
Financial instruments,
 
which potentially
 
subject the
 
Company to
 
significant concentrations
 
of credit
 
risk,
consist
 
principally
 
of
 
cash
 
and
 
trade
 
accounts
 
receivable.
 
The
 
ability
 
and
 
willingness
 
of
 
each
 
of
 
the
Company’s counterparties to perform their
 
obligations under a contract depend upon a
 
number of factors
that
 
are
 
beyond
 
the
 
Company’s
 
control
 
and
 
may
 
include,
 
among
 
other
 
things,
 
general
 
economic
conditions,
 
the
 
state
 
of
 
the
 
capital
 
markets,
 
the
 
condition
 
of
 
the
 
shipping
 
industry
 
and
 
charter
 
hire
rates. The Company’s credit risk with financial institutions is limited as it has temporary cash investments,
consisting
 
mostly
 
of
 
deposits,
 
placed
 
with
 
various
 
qualified
 
financial
 
institutions
 
and
 
performs
 
periodic
evaluations of the relative credit
 
standing of those financial institutions.
 
The Company limits its credit
 
risk
with
 
accounts
 
receivable
 
by
 
performing
 
ongoing
 
credit
 
evaluations
 
of
 
its
 
customers’
 
financial
 
condition
and by receiving payments of hire in
 
advance. The Company, generally,
 
does not require collateral for its
accounts receivable and does not have any agreements to
 
mitigate credit risk.
 
For the six months ended June 30, 2024 and 2023 charterers that individually
 
accounted for
10
% or more
of the Company’s time charter revenues were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30,
Charterer
2024
2023
Cargill International SA
*
16%
*Less than 10%
 
The
 
Company
 
is
 
exposed
 
to
 
interest
 
rate
 
fluctuations
 
associated
 
with
 
its
 
variable
 
rate
 
borrowings.
 
On
July 6,
 
2023, the company
 
entered into an
 
interest rate swap
 
with DNB (Note
 
8) to
 
manage part of
 
such
exposure.
Fair value of assets and liabilities
The
 
carrying
 
values
 
of
 
financial
 
assets
 
reflected
 
in
 
the
 
accompanying
 
consolidated
 
balance
 
sheet
approximate their
 
respective fair
 
values due
 
to the
 
short-term nature
 
of these
 
financial instruments.
 
The
fair
 
value
 
of
 
long-term
 
bank
 
loans
 
with
 
variable
 
interest
 
rates
 
approximates
 
the
 
recorded
 
values,
generally due to their variable interest rates.
 
Fair value measurements disclosed
 
As of June 30, 2024,
 
the Bond having a fixed interest
 
rate and a carrying value of
 
$
119,100
 
(Note 8) had
a
 
fair
 
value
 
of
 
$
123,090
 
determined
 
through
 
the
 
Level
 
1
 
input
 
of
 
the
 
fair
 
value
 
hierarchy
 
as
 
defined
 
in
FASB guidance for Fair Value Measurements.
Other Fair value measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
2023
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Other
Observable
Inputs (Level 3)
Assets
Recurring fair value measurements
Investments in equity securities
$
20,729
$
20,729
$
$
Investments in related party
8,315
8,138
177
Interest rate swap, asset
129
129
Total
 
recurring fair value measurements
$
29,173
$
28,867
$
129
$
177
Non-recurring fair value measurements
Equity method investments
$
4,519
$
$
4,519
Long-lived assets held for use
7,809
7,809
Total
 
non-recurring fair value measurements
$
12,328
$
7,809
$
4,519
Liabilities
Recurring fair value measurements
Warrant liability
$
6,332
$
6,332
$
Interest rate swap, liability
568
568
Total
 
recurring fair value measurements
$
6,900
$
6,332
$
568
June 30, 2024
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Other
Observable
Inputs (Level 3)
Assets
Recurring fair value measurements
Investments in equity securities
Investments in related party
$
6,968
$
6,788
$
-
$
180
Interest rate swap, asset
148
148
Total
 
recurring fair value measurements
$
7,116
$
6,788
$
148
$
180
Liabilities
Recurring fair value measurements
Warrant liability
$
9,286
$
9,286
$
-
Interest rate swap, liability
226
226
Total
 
recurring fair value measurements
$
9,512
$
9,286
$
226