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Significant Accounting Policies and Recent Accounting Pronouncements (Policy)
 12 Months Ended
Dec. 31, 2024
Significant Accounting Policies and Recent Accounting Pronouncements [Abstract]  
Principles of Consolidation
Principles
 
of
 
Consolidation
:
 
The
 
accompanying
 
consolidated
 
financial
 
statements
 
have
 
been
prepared in accordance
 
with U.S. generally
 
accepted accounting
 
principles and include
 
the accounts
of Diana
 
Shipping Inc.
 
and its
 
wholly owned
 
subsidiaries. All
 
intercompany balances
 
and transactions
have
 
been
 
eliminated
 
upon
 
consolidation.
 
Under
 
Accounting
 
Standards
 
Codification
 
(“ASC”)
 
810
“Consolidation”, the Company consolidates entities in which it has a controlling financial interest, by
first
 
considering
 
if
 
an
 
entity
 
meets
 
the
 
definition
 
of
 
a
 
variable
 
interest
 
entity
 
("VIE")
 
for
 
which
 
the
Company is deemed to be the primary
 
beneficiary under the VIE model, or if
 
the Company controls
an
 
entity
 
through
 
a
 
majority
 
of
 
voting
 
interest
 
based
 
on
 
the
 
voting
 
interest
 
model.
 
The
 
Company
evaluates
 
financial
 
instruments,
 
service
 
contracts,
 
and
 
other
 
arrangements
 
to
 
determine
 
if
 
any
variable interests relating
 
to an entity
 
exist. For entities
 
in which the
 
Company has
 
a variable interest,
the Company determines if the entity
 
is a VIE by considering whether the entity’s
 
equity investment
at
 
risk
 
is
 
sufficient
 
to
 
finance
 
its
 
activities
 
without
 
additional
 
subordinated
 
financial
 
support
 
and
whether the entity’s
 
at-risk equity holders
 
have the characteristics
 
of a controlling
 
financial interest.
In
 
performing analysis
 
of whether
 
the
 
Company is
 
the
 
primary beneficiary
 
of
 
a VIE,
 
the
 
Company
considers whether
 
it individually
 
has the
 
power to
 
direct the
 
activities of
 
the VIE
 
that most
 
significantly
affect the
 
entity’s performance
 
and also
 
has the
 
obligation to
 
absorb losses
 
or the
 
right to
 
receive
benefits of
 
the VIE
 
that could
 
potentially be
 
significant to
 
the VIE.
 
If the
 
Company holds
 
a variable
interest in
 
an entity
 
that previously
 
was not
 
a VIE,
 
it reconsiders
 
whether the
 
entity has
 
become a
VIE.
Use of Estimates
Use
 
of
 
Estimates:
The
 
preparation
 
of
 
consolidated
 
financial
 
statements
 
in
 
conformity
 
with
 
U.S.
generally accepted accounting
 
principles requires management
 
to make estimates and
 
assumptions
that
 
affect
 
the
 
reported
 
amounts
 
of
 
assets
 
and
 
liabilities
 
and
 
disclosure
 
of
 
contingent
 
assets
 
and
liabilities at the date of the consolidated financial statements and the reported amounts
 
of revenues
and expenses during the reporting period.
 
Actual results could differ from those estimates.
Other Comprehensive Income / (Loss)
Other Comprehensive
 
Income /
 
(Loss):
The Company
 
separately presents
 
certain transactions,
which are
 
recorded directly
 
as components
 
of stockholders’
 
equity.
 
Other Comprehensive
 
Income/
(Loss) is presented in a separate statement.
Foreign Currency Translation
 
Foreign Currency Translation:
The functional currency of the Company is the U.S. dollar because
the
 
Company’s
 
vessels operate
 
in
 
international shipping
 
markets,
 
and therefore
 
primarily transact
business
 
in
 
U.S.
 
dollars.
 
The
 
Company’s
 
accounting
 
records
 
are
 
maintained
 
in
 
U.S.
 
dollars.
Transactions
 
involving
 
other
 
currencies
 
during
 
the
 
year
 
are
 
converted
 
into
 
U.S.
 
dollars
 
using
 
the
exchange rates in effect at
 
the time of the
 
transactions. At the balance
 
sheet dates, monetary assets
and liabilities which are denominated in other currencies
 
are translated into U.S. dollars at the year-
end exchange rates.
 
Resulting gains or losses
 
are included in other
 
operating income/ (loss) in
 
the
accompanying consolidated statements of income/(loss).
Cash, Cash Equivalents, Time Deposits and Restricted Cash
Cash,
 
Cash Equivalents,
 
Time
 
Deposits and
 
Restricted Cash:
The Company
 
considers highly
liquid investments such as
 
time deposits, certificates of
 
deposit and their equivalents
 
with an original
maturity
 
of
 
up
 
to
 
three
 
months
 
to
 
be
 
cash
 
equivalents.
 
Time
 
deposits
 
with
 
maturity
 
above
 
three
months are
 
separately presented
 
as time
 
deposits. As
 
of December
 
31, 2024
 
and 2023,
 
time deposits
(with
 
maturity above
 
three
 
months)
 
amounted to
 
$
63,500
 
and
 
$
40,000
,
 
respectively.
 
During
 
2024
and 2023, the Company
 
placed new time deposits
 
exceeding three months of
 
$
63,500
 
and $
50,000
,
respectively,
 
and
 
during
 
the
 
same
 
periods,
 
deposits
 
of
 
$
40,000
 
and
 
$
56,500
 
matured.
 
Restricted
cash consists
 
mainly of
 
cash deposits
 
required to
 
be maintained
 
at all
 
times under
 
the Company’s
loan facilities
 
(Note
 
8) as
 
compensating cash
 
balances and
 
are not
 
pledged. As
 
of December
 
31,
2024 and 2023, accrued
 
interest income amounted to
 
$
605
 
and $
1,206
, respectively and is included
in prepaid expenses and other assets in the accompanying consolidated
 
balance sheets.
Accounts Receivable, Trade
Accounts Receivable, Trade:
The amount
 
shown as
 
accounts receivable, trade,
 
at each
 
balance
sheet date, includes
 
receivables from charterers
 
for hire from
 
lease agreements,
 
net of provisions
 
for
doubtful
 
accounts,
 
if
 
any.
 
At
 
each
 
balance
 
sheet
 
date,
 
all
 
potentially
 
uncollectible
 
accounts
 
are
assessed individually
 
for purposes of
 
determining the
 
appropriate provision
 
for doubtful accounts.
 
As
of December 31,
 
2024 and 2023 there
 
was
no
 
provision for doubtful accounts.
 
The Company does
not recognize interest income on trade receivables as all balances are
 
settled within a year.
Inventories
Inventories:
Inventories consist of lubricants and victualing which are stated, on a consistent
 
basis,
at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the
ordinary
 
course
 
of
 
business,
 
less
 
reasonably
 
predictable
 
costs
 
of
 
completion,
 
disposal,
 
and
transportation. When evidence exists that the net realizable value of inventory is lower than its cost,
the difference is recognized as a loss in
 
earnings in the period in
 
which it occurs. Cost is determined
by the first
 
in, first out method.
 
Amounts removed from inventory are
 
also determined by the
 
first in
first out method. Inventories may also consist of bunkers,
 
when on the balance sheet date, a vessel
is without
 
employment. Bunkers, if
 
any,
 
are also
 
stated at
 
the lower
 
of cost
 
or net
 
realizable value
and cost is determined by the first in, first out method.
Vessel Cost
Vessel
 
Cost
: Vessels
 
are stated
 
at cost
 
which consists
 
of the
 
contract price
 
and any
 
capitalizable
expenditures
 
incurred
 
upon
 
acquisition
 
or
 
during
 
construction.
 
Expenditures
 
for
 
conversions
 
and
major improvements are
 
also capitalized when they
 
appreciably extend the
 
life, increase the earning
capacity or improve the efficiency or safety of the vessels; otherwise,
 
these amounts are charged to
expense as incurred. Interest incurred during
 
the assets' construction period,
 
that theoretically could
have
 
been
 
avoided
 
if
 
expenditure
 
for
 
the
 
assets
 
had
 
not
 
been
 
made,
 
is
 
also
 
capitalized.
 
The
capitalization rate,
 
applied on
 
accumulated expenditures
 
for the
 
vessel, is
 
based on
 
interest rates
applicable to outstanding borrowings of the period.
Vessels held for sale
 
Vessels held
 
for sale:
 
A long-lived asset classified
 
as held for
 
sale is measured at
 
the lower of its
carrying amount or fair value less cost to sell when the respective held for sale criteria are met. The
asset is
 
not depreciated
 
while it
 
is classified
 
as held
 
for sale.
 
The fair
 
value less
 
cost to
 
sell of
 
an
asset held for
 
sale is assessed
 
at each reporting period
 
it remains classified as
 
held for sale.
 
If the
plan to sell the
 
asset changes, the asset is
 
reclassified as held and used,
 
measured at the lower of
its carrying amount
 
before it was
 
classified as held
 
for sale,
 
adjusted for any
 
depreciation expense
that would have been
 
recognized had the asset
 
been continuously classified as
 
held and used
 
and
its fair value at the date of the subsequent decision not to sell.
Sale and leaseback
Sale
 
and
 
leaseback:
 
In
 
accordance
 
with
 
ASC
 
842-40,
 
in
 
a
 
sale
 
and
 
leaseback
 
transaction
 
the
Company,
 
as seller-lessee, determines
 
whether the transfer
 
of the
 
asset is
 
a sale
 
under ASC 606.
For a sale
 
to have occurred, the
 
control of the asset
 
would need to be
 
transferred to the buyer
 
and
the
 
buyer
 
would
 
need
 
to
 
obtain
 
substantially
 
all
 
the
 
benefits
 
from
 
the
 
use
 
of
 
the
 
asset.
 
Sale
 
and
leaseback transactions,
 
which include
 
an obligation for
 
the Company, as seller-lessee,
 
to repurchase
the
 
asset,
 
or
 
other
 
situations
 
where
 
the
 
leaseback
 
would
 
be
 
classified
 
as
 
a
 
finance
 
lease,
 
are
determined to
 
be failed
 
sales under
 
ASC 842-40.
 
In these
 
cases, the
 
Company does
 
not derecognize
the asset from its balance sheet and accounts for any amounts
 
received as financial liability.
Property and equipment
Property and equipment:
 
The Company owns the
 
land and building where
 
its offices are
 
located.
The Company also owns other plots
 
acquired for office use (Note 7). Land is stated at cost, and it is
not
 
subject to
 
depreciation. The
 
building has
 
an estimated
 
useful life
 
of
55 years
 
with
no
 
residual
value. Furniture, office equipment and vehicles have a useful life of
5 years
, except for a car owned
by the Company, which has a
 
useful life of
10 years
. Computer software
 
and hardware have
 
a useful
life of
three years
. Depreciation is calculated on a straight-line basis.
Impairment of Long-Lived Assets
 
Impairment of
 
Long-Lived Assets:
Long-lived assets
 
are reviewed
 
for impairment
 
whenever events
or
 
changes
 
in
 
circumstances
 
(such
 
as
 
market
 
conditions,
 
obsolescence
 
or
 
damage
 
to
 
the
 
asset,
potential sales and
 
other business plans)
 
indicate that the
 
carrying amount of
 
an asset may
 
not be
recoverable. When impairment
 
indicators are identified and
 
the estimate of
 
undiscounted projected
net operating
 
cash flows,
 
excluding interest
 
charges, expected
 
to be
 
generated by
 
the use
 
of an
 
asset
over
 
its
 
remaining
 
useful
 
life
 
and
 
its
 
eventual
 
disposition
 
is
 
less
 
than
 
its
 
carrying
 
amount,
 
the
Company evaluates the asset for impairment loss. Measurement of the
 
impairment loss is based on
the fair value of the asset, determined mainly by third party valuations.
 
For vessels,
 
the Company
 
calculates undiscounted
 
projected net
 
operating cash
 
flows by
 
considering
the historical
 
and estimated
 
vessels’ performance
 
and utilization
 
with the
 
significant assumption
 
being
future charter rates for
 
the unfixed days, using
 
the most recent
10
-year average of historical
 
1 year
time charter rates available for each type of vessel over the remaining estimated life of each vessel,
net of commissions. Historical ten-year blended average one-year time charter rates are in line with
the
 
Company’s
 
overall
 
chartering
 
strategy,
 
they
 
reflect
 
the
 
full
 
operating
 
history
 
of
 
vessels
 
of
 
the
same type and particulars with the Company’s operating fleet and they cover at least
 
a full business
cycle,
 
where
 
applicable.
 
When
 
the
10
-year
 
average
 
of
 
historical
 
1
 
year
 
time
 
charter
 
rates
 
is
 
not
available for a type
 
of vessel, the Company uses
 
the average of historical 1
 
year time charter rates
of the available
 
period. Other
 
assumptions used in
 
developing estimates
 
of future undiscounted
 
cash
flow are
 
charter rates calculated
 
for the
 
fixed days using
 
the fixed
 
charter rate of
 
each vessel from
existing time charters, the
 
expected outflows for scheduled
 
vessels’ maintenance; vessel operating
expenses; fleet utilization, and the
 
vessels’ residual value if sold for
 
scrap.
 
Assumptions are in line
with the
 
Company’s historical
 
performance and
 
its expectations
 
for future
 
fleet utilization
 
under its
current fleet deployment
 
strategy. This calculation is then compared
 
with the vessels’
 
net book value
plus
 
unamortized
 
deferred
 
costs.
 
The
 
difference
 
between
 
the
 
carrying
 
amount
 
of
 
the
 
vessel
 
plus
unamortized
 
deferred
 
costs
 
and
 
their
 
fair
 
value
 
is
 
recognized
 
in
 
the
 
Company's
 
accounts
 
as
impairment loss.
The Company’s impairment
 
assessment did not
 
result in the
 
recognition of impairment
 
on any vessel
and therefore
no
 
impairment loss was identified or recorded in 2024, 2023 and 2022.
For
 
the
 
building,
 
the
 
Company
 
determines
 
undiscounted
 
projected
 
net
 
operating
 
cash
 
flows
 
by
considering the
 
estimated monthly rent
 
the Company would
 
have to
 
pay in order
 
to lease
 
a similar
building for a period equal to its remaining useful life.
No
 
impairment loss was identified or recorded
for 2024, 2023 and
 
2022 and the Company has
 
not identified any other facts
 
or circumstances that
would require the write down of the value of its land or building in
 
the near future.
Vessel Depreciation
Vessel
 
Depreciation:
Depreciation is
 
computed using
 
the straight-line
 
method over
 
the estimated
useful
 
life
 
of
 
the
 
vessels,
 
after
 
considering
 
the
 
estimated
 
salvage
 
(scrap)
 
value.
 
Each
 
vessel’s
salvage
 
value
 
is
 
equal
 
to
 
the
 
product
 
of
 
its
 
lightweight
 
tonnage
 
and
 
estimated
 
scrap
 
rate.
Management estimates
 
the useful
 
life of
 
the Company’s vessels
 
to be
25 years
 
from the date
 
of initial
delivery from
 
the shipyard.
 
Second-hand vessels are
 
depreciated from the
 
date of
 
their acquisition
through their remaining estimated useful life. When regulations place limitations over the ability of a
vessel to trade on
 
a worldwide basis,
 
its remaining useful
 
life is adjusted at
 
the date such regulations
are
 
adopted.
Effective July 1, 2023, the Company reassessed the estimated scrap rate used to
calculate depreciation and, based on the average demolition prices in different markets during the
last 15 years, adjusted upwards the estimated scrap rate of its vessels. This change in estimate
resulted
 
in
 
increased
 
salvage
 
values,
 
decreased
 
depreciation
 
expense
 
and
 
increased
 
operating
income. Additionally, for
 
the period
 
from July
 
1, 2023
 
to December
 
31, 2023,
 
net income
 
and earnings
per share, basic and diluted, increased by $
3,773
 
and $
0.04
, respectively.
Deferred Costs
Deferred Costs
: The
 
Company follows
 
the deferral
 
method of
 
accounting for
 
dry-docking and
 
special
survey costs whereby actual costs incurred are deferred and amortized on a straight-line basis over
the period
 
through the date
 
the next
 
survey is
 
scheduled to
 
become due.
 
Unamortized deferred
 
costs
of vessels that
 
are sold or impaired
 
are written off
 
and included in
 
the calculation of
 
the resulting gain
or loss in the year of the vessel’s sale (Note 6) or impairment.
Financing Costs
Financing Costs
: Fees
 
paid for
 
obtaining finance liabilities,
 
fees paid
 
to lenders
 
for obtaining
 
new
loans,
 
new bonds, refinancing or amending existing loans,
 
are deferred and recorded as a contra to
debt. Other
 
fees paid
 
for obtaining
 
loan facilities
 
not used
 
at the
 
balance sheet
 
date are
 
deferred.
Fees relating to
 
drawn loan facilities
 
are amortized to
 
interest and finance
 
costs over the
 
life of the
related debt
 
using the
 
effective interest method
 
and fees
 
incurred for
 
loan facilities not
 
used at
 
the
balance sheet date are amortized using
 
the straight-line method according to
 
their availability terms.
Unamortized
 
fees
 
relating
 
to
 
loans
 
or
 
bonds
 
repaid
 
or
 
repurchased
 
or
 
refinanced
 
as
 
debt
extinguishment
 
are
 
written
 
off
 
in
 
the
 
period
 
the
 
repayment,
 
prepayment,
 
repurchase
 
or
extinguishment is made and
 
included in the determination
 
of gain/loss on debt extinguishment.
 
Loan
commitment fees are
 
expensed
 
in the period
 
incurred, unless they
 
relate to loans
 
obtained to finance
vessels under construction, in which case, they are capitalized
 
to the vessels’ cost.
Concentration of Credit Risk
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
Company places
 
its temporary
 
cash investments,
 
consisting mostly
 
of deposits,
 
with various
 
qualified
financial institutions
 
and performs
 
periodic evaluations
 
of the
 
relative credit
 
standing of
 
those financial
institutions that are considered in the Company’s investment strategy. The Company
 
limits its credit
risk
 
with
 
accounts
 
receivable
 
by
 
performing
 
ongoing
 
credit
 
evaluations
 
of
 
its
 
customers’
 
financial
condition and generally does
 
not require collateral for
 
its accounts receivable
 
and does not have
 
any
agreements to mitigate credit risk.
Accounting for Revenues and Expenses
 
Accounting for Revenues and Expenses:
Revenues are generated from time
 
charter agreements
which contain a lease
 
as they meet the
 
criteria of a lease
 
under ASC 842.
 
The time charter contracts
are considered
 
operating leases because
 
(i) the vessel
 
is an
 
identifiable asset (ii)
 
the owner
 
of the
vessel does not have substantive substitution
 
rights and (iii) the charterer has
 
the right to control the
use of the
 
vessel during the term
 
of the contract and
 
derives the economic benefits
 
from such use.
Agreements with
 
the same
 
charterer are
 
accounted for
 
as separate
 
agreements according to
 
their
specific
 
terms
 
and
 
conditions.
 
All
 
agreements
 
contain
 
a
 
minimum
 
non-cancellable
 
period
 
and
 
an
extension period at the option
 
of the charterer.
 
Each lease term is assessed at
 
the inception of that
lease. Under a time charter agreement, the charterer pays
 
a daily hire for the use of the
 
vessel and
reimburses the owner for
 
hold cleanings, extra
 
insurance premiums for navigating
 
in restricted areas
and
 
damages
 
caused
 
by
 
the
 
charterers.
 
Revenues
 
from
 
time
 
charter
 
agreements
 
providing
 
for
varying annual
 
rates are
 
accounted for
 
as operating
 
leases and
 
thus recognized
 
on a
 
straight-line
basis over the non-cancellable rental periods of such agreements,
 
as service is performed.
 
The charterer
 
pays to
 
third parties
 
port, canal
 
and bunkers
 
consumed during
 
the term
 
of the
 
time
charter agreement, unless they are for the account of the owner, in which case,
 
they are included in
voyage expenses. Voyage expenses also include commissions on time charter revenue (paid to the
charterers, the brokers
 
and the managers)
 
and gain or
 
loss from bunkers
 
resulting mainly from
 
the
difference
 
in
 
the
 
value
 
of
 
bunkers
 
paid
 
by
 
the
 
Company
 
when
 
the
 
vessel
 
is
 
redelivered
 
to
 
the
Company from
 
the charterer
 
under the
 
vessel’s previous
 
time charter
 
agreement and
 
the value
 
of
bunkers sold
 
by the
 
Company when
 
the vessel
 
is delivered
 
to a
 
new charterer
 
(Note 12).
 
Under a
time
 
charter
 
agreement,
 
the
 
owner
 
pays
 
for
 
the
 
operation
 
and
 
the
 
maintenance
 
of
 
the
 
vessel,
including
 
crew,
 
insurance,
 
spares
 
and
 
repairs,
 
which
 
are
 
recognized
 
in
 
operating
 
expenses.
 
The
Company,
 
as lessor, has
 
elected not to allocate the consideration
 
in the agreement to the
 
separate
lease
 
and
 
non-lease
 
components
 
(operation
 
and
 
maintenance
 
of
 
the
 
vessel)
 
as
 
their
 
timing
 
and
pattern
 
of
 
transfer
 
to
 
the
 
charterer,
 
as
 
the
 
lessee,
 
are
 
the
 
same
 
and
 
the
 
lease
 
component,
 
if
accounted
 
for
 
separately,
 
would
 
be
 
classified
 
as
 
an
 
operating
 
lease.
 
Additionally,
 
the
 
lease
component
 
is
 
considered
 
the
 
predominant
 
component,
 
as
 
the
 
Company
 
has
 
assessed
 
that
 
more
value is ascribed to the vessel rather than to the services provided under the time charter contracts.
In
 
time
 
charter
 
agreements
 
apart
 
from
 
the
 
agreed
 
hire
 
rate,
 
the
 
Company
 
may
 
be
 
entitled
 
to
 
an
additional income,
 
such as
 
ballast bonus.
 
Ballast bonus
 
is paid
 
by charterers
 
for repositioning
 
the
vessel. The Company analyzes
 
terms of each contract
 
to assess whether income
 
from ballast bonus
is
 
accounted
 
together
 
with
 
the
 
lease
 
component
 
over
 
the
 
duration
 
of
 
the
 
charter
 
or
 
as
 
service
component under
 
ASC 606.
 
Deferred revenue
 
includes cash
 
received prior
 
to the balance
 
sheet date
for which all criteria to recognize as revenue have not been
 
met.
Repairs and Maintenance
Repairs and
 
Maintenance:
 
All repair
 
and maintenance
 
expenses including underwater
 
inspection
expenses are expensed in the year incurred. Such costs are included in
 
vessel operating expenses
in the accompanying consolidated statements of income.
Earnings / (loss) per Common Share
Earnings / (loss) per Common Share:
 
Basic earnings / (loss) per common share are
 
computed by
dividing net
 
income /
 
(loss) available
 
to common
 
stockholders by
 
the weighted
 
average number
 
of
common shares outstanding during the year. Shares issuable at little or no cash consideration upon
satisfaction of
 
certain conditions,
 
are considered
 
outstanding and
 
included in
 
the computation
 
of basic
earnings/(loss) per
 
share as
 
of the
 
date that
 
all necessary
 
conditions have
 
been satisfied.
 
Diluted
earnings
 
per
 
common
 
share,
 
reflects
 
the
 
potential
 
dilution
 
that
 
could
 
occur
 
if
 
securities
 
or
 
other
contracts to issue common stock were exercised.
Segmental Reporting
 
Segmental Reporting:
The Company reports financial
 
information and evaluates its
 
operations and
operating
 
results
 
by
 
revenue
 
and
 
operating
 
expenses.
 
As
 
a
 
result,
 
the
 
Company’s
 
management,
including its
 
Chief Executive
 
Officer,
 
who is
 
the chief
 
operating decision
 
maker,
 
reviews operating
results solely by revenue and operating
 
results of the fleet, and
 
thus, the Company has determined
that it operates
 
under one
 
reportable segment,
 
that of operating
 
dry bulk
 
vessels. The
 
chief operating
decision maker
 
(“CODM”) does
 
not use
 
discrete financial
 
information to
 
evaluate the
 
operating results
for
 
each
 
type
 
of
 
charter
 
or
 
vessel
 
but
 
is
 
instead
 
regularly
 
provided
 
with
 
only
 
the
 
consolidated
expenses
 
as
 
noted
 
on
 
the
 
face
 
of
 
the
 
consolidated
 
statements
 
of
 
income.
 
The
 
CODM
 
assesses
performance
 
for
 
the
 
vessel
 
operations
 
segment and
 
decides
 
how
 
to
 
allocate
 
resources
 
based
 
on
consolidated net
 
income. Additionally,
 
the vessels
 
do not
 
operate in
 
specific geographic
 
areas, as
they trade worldwide; they do not
 
trade in specific trade routes, as
 
their trading (route and cargo) is
dictated by the charterers;
 
and the Company
 
does not evaluate
 
the operating results
 
for each type
 
of
dry bulk vessels (i.e. Panamax, Capesize etc.) for the purpose of making decisions about allocating
resources and assessing performance.
In
 
November
 
2023,
 
the
 
FASB
 
issued
 
ASU
 
2023-07,
 
which
 
requires
 
the
 
disclosure
 
of
 
significant
segment
 
expenses
 
that
 
are
 
part
 
of
 
an
 
entity’s
 
segment
 
measure
 
of
 
profit
 
or
 
loss
 
and
 
regularly
provided to
 
the chief
 
operating decision
 
maker.
 
In addition,
 
it adds
 
or makes
 
clarifications to
 
other
segment-related
 
disclosures,
 
such
 
as
 
clarifying
 
that
 
the
 
disclosure
 
requirements
 
in
 
ASC
 
280
 
are
required
 
for
 
entities
 
with
 
a
 
single
 
reportable
 
segment
 
and
 
that
 
an
 
entity
 
may
 
disclose
 
multiple
measures
 
of
 
segment
 
profit
 
and
 
loss.
 
ASU
 
2023-07
 
is
 
effective
 
for
 
fiscal
 
years
 
beginning
 
after
December 15, 2023 and
 
interim periods beginning
 
after December 15, 2024.
 
The Company adopted
ASU 2023-07 as of January 1, 2024 and its adoption has limited impact on the
 
Company’s financial
disclosures and there was no impact to financial position or results
 
of operations.
Fair Value Measurements
Fair Value
 
Measurements
: The
 
Company classifies and
 
discloses its
 
assets and
 
liabilities carried
at fair
 
value in
 
one of the
 
following categories: Level
 
1: Quoted
 
market prices in
 
active markets for
identical assets
 
or liabilities;
 
Level 2:
 
Observable market-based
 
inputs or
 
unobservable inputs
 
that
are corroborated by market data; Level 3:
 
Unobservable inputs that are not corroborated by
 
market
data.
Share Based Payments
Share Based Payments:
 
The Company issues
 
restricted share awards
 
which are measured
 
at their
grant date fair value and are not subsequently
 
re-measured. That cost is recognized over the period
during which
 
an employee
 
is required
 
to provide
 
service in
 
exchange for
 
the award—the
 
requisite
service period
 
(usually the
 
vesting period).
 
No compensation
 
cost is
 
recognized for
 
equity instruments
for
 
which employees
 
do not
 
render
 
the
 
requisite service
 
unless the
 
board of
 
directors determines
otherwise.
 
Forfeitures
 
of
 
awards
 
are
 
accounted
 
for
 
when
 
and
 
if
 
they
 
occur.
 
If
 
an
 
equity
 
award
 
is
modified after the grant date, incremental compensation cost will be recognized in an amount equal
to
 
the
 
excess
 
of
 
the
 
fair
 
value
 
of
 
the
 
modified
 
award
 
over
 
the
 
fair
 
value
 
of
 
the
 
original
 
award
immediately before the modification.
Equity method investments
 
Equity
 
method
 
investments:
 
Investments
 
in
 
common
 
stock
 
in
 
entities
 
over
 
which
 
the
 
Company
exercises significant influence but does not exercise control are accounted for by the equity method
of accounting. Under this
 
method, the Company records such
 
an investment at cost
 
(or fair value if
a consequence of deconsolidation) and
 
adjusts the carrying amount for
 
its share of the
 
earnings or
losses
 
of
 
the
 
entity
 
subsequent to
 
the
 
date
 
of
 
investment and
 
reports
 
the
 
recognized
 
earnings
 
or
losses in income. Dividends received,
 
if any,
 
reduce the carrying amount of the
 
investment and are
recorded
 
as
 
receivable
 
on
 
dividend
 
declaration.
 
When
 
the
 
carrying
 
value
 
of
 
an
 
equity
 
method
investment is
 
reduced to
 
zero because of
 
losses, the
 
Company does
 
not provide
 
for additional
 
losses
unless
 
it
 
is
 
committed
 
to
 
provide
 
further
 
financial
 
support
 
to
 
the
 
investee.
 
The
 
Company
 
also
evaluates whether a loss in value of an investment that
 
is other than a temporary decline should be
recognized. Evidence
 
of a
 
loss in
 
value might
 
include absence
 
of an
 
ability to
 
recover the
 
carrying
amount of the investment
 
or inability of
 
the investee to
 
sustain an earnings
 
capacity that would
 
justify
the carrying amount
 
of the investment.
 
For equity
 
method investments
 
that the Company
 
has elected
to account
 
for using
 
the fair
 
value option,
 
all subsequent
 
changes in
 
fair value
 
are included
 
in gain/loss
on related party investments.
Going concern
Going concern:
Management evaluates, at each
 
reporting period, whether there
 
are 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.
Shares repurchased and retired
Shares repurchased and retired:
The Company’s shares
 
repurchased are immediately cancelled
and the Company’s share capital
 
is accordingly reduced. Any excess of
 
the cost of the shares
 
over
their par value is allocated
 
in additional paid-in capital, in
 
accordance with ASC 505-30-30, Treasury
Stock.
Financial Instruments, credit losses
Financial Instruments, credit losses
: At each reporting date,
 
the Company evaluates its financial
assets
 
individually
 
for
 
credit
 
losses
 
and
 
presents
 
such
 
assets
 
in
 
the
 
net
 
amount
 
expected
 
to
 
be
collected on
 
such financial
 
asset. When
 
financial assets
 
present similar
 
risk characteristics,
 
these are
evaluated
 
on
 
a
 
collective
 
basis.
 
When
 
developing
 
an
 
estimate
 
of
 
expected
 
credit
 
losses,
 
the
Company considers available information relevant to assessing the
 
collectability of cash flows such
as internal
 
information, past
 
events, current
 
conditions and
 
reasonable and
 
supportable forecasts.
No
 
credit losses were identified and recorded in 2024 and 2023.
Financial Instruments, Investment-Equity Securities, Recognition and Measurement
Financial Instruments, Investments-Equity
 
Securities, Recognition and
 
Measurement
: Equity
investments
 
with
 
readily
 
determinable
 
fair
 
values
 
are
 
recognized
 
at
 
the
 
transaction
 
price
 
and
subsequently
 
measured
 
at
 
fair
 
value
 
through
 
net
 
income.
 
According
 
to
 
ASC
 
321-10-35-2,
 
the
Company has elected to measure equity securities without a readily determinable fair value, that do
not
 
qualify
 
for
 
the
 
practical expedient
 
in
 
ASC
 
820
Fair
 
Value
 
Measurement
to
 
estimate
 
fair
 
value
using
 
the
 
NAV
 
per
 
share
 
(or
 
its
 
equivalent),
 
at
 
its
 
cost
 
minus
 
impairment,
 
if
 
any.
 
If
 
the
 
Company
identifies observable price changes in orderly
 
transactions for the identical or
 
a similar investment of
the same
 
issuer,
 
it shall
 
measure equity
 
securities at
 
fair value
 
as of
 
the date
 
that the
 
observable
transaction occurred.
 
The Company
 
shall continue
 
to apply
 
this measurement
 
until the
 
investment
does
 
not qualify
 
to
 
be measured
 
in
 
accordance with
 
this paragraph.
 
At
 
each reporting
 
period,
 
the
Company reassesses
 
whether an
 
equity investment
 
without a
 
readily determinable
 
fair value
 
qualifies
to
 
be
 
measured
 
in
 
accordance
 
with
 
this
 
paragraph.
 
The
 
Company
 
may
 
subsequently
 
elect
 
to
measure equity
 
securities at
 
fair value
 
and the
 
election to measure
 
securities at
 
fair value
 
shall be
irrevocable. Any resulting
 
gains or
 
losses on the
 
securities for
 
which that election
 
is made shall
 
be
recorded in
 
earnings at
 
the time
 
of the
 
election. At
 
each reporting
 
period, the
 
Company also
 
evaluates
indicators such
 
as the
 
investee’s performance
 
and its
 
ability to
 
continue as
 
going concern
 
and market
conditions, to determine
 
whether an investment
 
is impaired
 
in which
 
case, the Company
 
will estimate
the fair value of the investment to determine the amount of impairment
 
loss.
Contracts in Entity's Equity
 
Contracts
 
in
 
entity’s
 
equity:
Under
 
ASC
 
815-40
 
contracts
 
that
 
require
 
settlement
 
in
 
shares
 
are
considered equity instruments, unless an event that is not in the entity’s control will require net cash
settlement.
 
Additional
 
conditions
 
necessary
 
for
 
equity
 
classification
 
include
 
settlement
 
to
 
be
permitted in
 
unregistered shares,
 
the entity
 
to have
 
sufficient authorized
 
and unissued
 
shares, the
contract to contain an explicit share
 
limit, there should be no requirement
 
for net cash settlement in
the event the entity fails to make timely filings with the Securities and Exchange Commission (SEC)
and there are no cash settled top-off or make-whole provisions. The Company,
 
when assessing the
accounting
 
of
 
warrants
 
and
 
pre-funded
 
warrants, takes
 
into
 
consideration
 
ASC
 
480
 
to
 
determine
whether the warrants
 
and pre-funded warrants should be
 
classified as permanent
 
equity instead of
temporary equity
 
or
 
liability.
 
The Company
 
further analyses
 
the key
 
features of
 
warrants and
 
pre-
funded warrants
 
and examines
 
whether these
 
fall under
 
the definition
 
of a
 
derivative according
 
to
ASC 815 applicable guidance or whether certain of these
 
features affect the classification. In cases
when derivative accounting is deemed inappropriate, no bifurcation
 
of these features is performed.
Derivative instruments
Derivative instruments:
 
Derivative instruments
 
are recorded
 
in the
 
balance sheet
 
as either
 
an asset
or liability measured at its fair value
 
with changes in the instruments' fair value recognized as
 
either
a
 
component
 
in
 
other
 
comprehensive
 
income
 
if
 
specific
 
hedge
 
accounting
 
criteria
 
are
 
met
 
in
accordance
 
with
 
guidance
 
relating
 
to
 
“Derivatives
 
and
 
Hedging”
 
or
 
in
 
earnings
 
if
 
hedging
 
criteria
are not met.
New Accounting Pronouncements
New Accounting Pronouncements
In November
 
2024, the
 
FASB
 
issued
 
ASU 2024-03, “Income
 
Statement
 
-
 
Reporting
 
Comprehensive
Income
 
-
 
Expense
 
Disaggregation
 
Disclosures
 
(Subtopic 220-40):
 
Disaggregation
 
of
 
Income
 
Statement
Expenses”.
 
The
 
standard
 
is
 
intended
 
to
 
require
 
more
 
detailed
 
disclosure
 
about
 
specified
 
categories
 
of
expenses (including employee compensation, depreciation,
 
and amortization) included in certain expense
captions presented on
 
the face
 
of the
 
income statement. This
 
ASU is effective
 
for fiscal
 
years beginning
after December
 
15,
 
2026, and
 
for
 
interim
 
periods
 
within
 
fiscal
 
years
 
beginning
 
after December
 
15,
2027. Early
 
adoption
 
is
 
permitted.
 
The
 
amendments may be
 
applied
 
either
 
prospectively
 
to
 
financial
statements issued
 
for reporting
 
periods after
 
the effective
 
date of
 
this ASU
 
or retrospectively
 
to all
 
prior
periods presented
 
in the
 
financial statements.
 
The Company
 
is currently
 
assessing the
 
impact this
 
standard
will have on its consolidated financial statements.
Guarantees
Guarantees:
Guarantees
 
issued
 
by
 
the
 
Company,
 
excluding
 
those
 
that
 
guarantee
 
its
 
own
performance,
 
are
 
recognized
 
at
 
fair
 
value
 
at
 
the
 
time
 
the
 
guarantees
 
are
 
issued,
 
or
 
upon
 
the
deconsolidation of a subsidiary. A liability
 
for the fair value
 
of the obligation undertaken
 
in issuing the
guarantee
 
is
 
recognized. If
 
it
 
becomes
 
probable
 
that
 
the
 
Company
 
will
 
have
 
to
 
perform
 
under
 
a
guarantee (Note
 
10(c)), the
 
Company will
 
recognize an
 
additional liability
 
if the
 
amount of
 
the loss
can be
 
reasonably estimated.
 
The recognition
 
of fair
 
value is
 
not required
 
for certain
 
guarantees such
as the parent's guarantee of
 
a subsidiary's debt to a
 
third party. For those guarantees excluded from
the above
 
guidance requiring the
 
fair value
 
recognition provision of
 
the liability,
 
financial statement
disclosures of such items are made.