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Financial Instruments and Fair Value Disclosures
 12 Months Ended
Dec. 31, 2024
Financial Instruments and Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Disclosures
 
16.
 
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.
 
In
 
2024,
 
2023 and
 
2022 charterers
 
that
 
individually accounted
 
for
10
% or
 
more
 
of
 
the
 
Company’s time
charter revenues were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Charterer
2024
2023
2022
Cargill International SA
*
13%
19%
Koch Shipping PTE LTD.
 
Singapore
*
*
15%
Nippon Yusen Kaisha
11%
*
*
*Less than 10%
 
The Company
 
is exposed
 
to interest
 
rate fluctuations
 
associated with
 
its variable
 
rate of
 
borrowings. On
July 6,
 
2023, the company
 
entered into an
 
interest rate swap
 
with DNB (Note
 
8) to
 
manage part of
 
such
exposure. Additionally, in 2022 and
 
2023, the Company refinanced part of its variable rate debt with fixed
rate financial liabilities (Note 9).
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.
 
Cash
and cash equivalents
 
and restricted cash
 
are considered Level 1 items
 
as they represent
 
liquid assets with
short-term maturities. 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 December 31, 2024, the Bond having a fixed interest
 
rate and a carrying value of $
175,000
 
(Note 8)
had a fair value of $
178,938
 
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(1)
$
4,519
$
$
4,519
Long-lived assets held for use(2)
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
December 31,
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 related party
$
4,415
$
4,235
$
-
$
180
Total
 
recurring fair value measurements
$
4,415
$
4,235
$
-
$
180
Liabilities
Recurring fair value measurements
Warrant liability
$
1,802
$
1,802
$
-
Interest rate swap, liability
165
165
Total
 
recurring fair value measurements
$
1,967
$
1,802
$
165
 
 
 
On
 
April 28,
 
2023, the
 
Company
 
estimated that
 
the
 
fair
 
value of
 
its
25
%
 
interest in
 
Bergen was
$
4,519
,
 
determined
 
through
 
the
 
Level
 
2
 
inputs
 
of
 
the
 
fair
 
value
 
hierarchy,
 
as
 
defined
 
in
 
FASB
guidance for Fair
 
Value Measurements, and recorded a
 
gain of $
844
, being the difference
 
between
the fair value
 
of the retained noncontrolling
 
interest plus the carrying
 
value the liabilities assumed
by Bergen and the carrying value of the assets derecognized
 
(Note 3(e)).
(2)
 
On January
 
30, 2023.
 
the Company
 
took delivery
 
of one
 
vessel under
 
its master
 
agreement with
Sea Trade, acquired for
 
$
23,955
 
which was paid
 
in cash and
 
$
7,809
 
which was paid
 
through newly
issued
 
common
 
stock
 
(Note
 
6).
 
The
 
fair
 
value
 
of
 
the
 
common
 
shares
 
issued
 
to
 
Sea
 
Trade
 
was
determined based
 
on the
 
closing price
 
of the
 
Company’s shares
 
on the
 
date
 
of delivery
 
of each
vessel, which was also the date of issuance of such shares.