XML 23 R16.htm IDEA: XBRL DOCUMENT v3.25.2
Finance Liabilities
 6 Months Ended
Jun. 30, 2025
Finance Liabilities [Abstract]  
Finance Liabilities
8.
 
Finance Liabilities
On
 
March
 
29,
 
2022,
 
the
 
Company
 
sold
Florida
 
to
 
an
 
unrelated
 
third
 
party
 
and
 
leased
 
back
 
the
 
vessel
from
 
the
 
buyer
 
for
 
a
 
period
 
of
ten years
,
 
under
 
which
 
the
 
Company
 
pays
 
a
 
fixed
 
monthly
 
hire.
 
The
Company has the
 
option to repurchase the
 
vessel at specific prices,
 
after the end
 
of the third
 
year of the
charter period and for each year thereafter,
 
and the obligation to purchase the vessel on the expiration
 
of
the lease on the tenth year.
 
On August 17, 2022, the
 
Company entered into
two
 
sale and leaseback agreements with two
 
unaffiliated
third
 
parties
 
for
New
 
Orleans
 
and
Santa
 
Barbara
.
 
The
 
vessels
 
were
 
delivered
 
to
 
their
 
buyers
 
on
September
 
8,
 
2022
 
and September
 
12,
 
2022, respectively
 
and the
 
Company
 
chartered-in both
 
vessels
under bareboat
 
charter parties
 
for a
 
period of
eight years
, each,
 
under which
 
the Company
 
pays a
 
fixed
monthly
 
hire.
 
Under
 
the
 
bareboat
 
charter,
 
the
 
Company
 
has
 
the
 
option
 
to
 
repurchase
 
the
 
vessel
 
at
specific prices,
 
after the
 
end of
 
the third
 
year of
 
the charter
 
period and
 
for each
 
year thereafter,
 
and the
obligation to purchase the vessel on the expiration of the lease on the
 
eighth year.
 
On
 
December 6,
 
2022, the
 
Company sold
DSI Andromeda
 
to
 
an unrelated
 
third
 
party and
 
leased back
the vessel under a bareboat agreement, for a period of
ten years
, under which the Company pays a fixed
monthly
 
hire.
 
The Company
 
has the
 
option to
 
repurchase the
 
vessel at
 
specific
 
prices, after
 
the
 
end
 
of
the third year of the charter period and for each year thereafter,
 
and the obligation to purchase the vessel
on the expiration of the lease on the tenth year.
 
The
 
Company
 
determined that,
 
under
 
ACS
 
842-40
 
Sale
 
and
 
Leaseback
 
Transactions,
 
the
 
transactions
are
 
failed
 
sales
 
and
 
consequently the
 
assets
 
were
 
not
 
derecognized from
 
the
 
financial
 
statements
 
and
the proceeds from
 
the sale of
 
the vessels were
 
accounted for as
 
financial liabilities. As
 
of June 30,
 
2025
and
 
December
 
31,
 
2024,
 
finance
 
liability
 
amounted
 
to
 
$
9,820
 
and
 
$
9,608
,
 
respectively,
 
included
 
in
finance
 
liabilities,
 
current
 
and
 
$
108,373
 
and
 
$
113,300
 
respectively
 
included
 
in
 
finance
 
liabilities,
 
net
 
of
current
 
portion.
 
As
 
of
 
June
 
30,
 
2025,
 
the
 
weighted
 
average
 
remaining
 
lease
 
term
 
of
 
the
 
above
 
lease
agreements was
6.21
 
years, the average interest rate was
4.83
% and the sublease income during the six
months ended June
 
30, 2025 and
 
2024 was $
14,603
 
and $
14,678
, respectively,
 
included in time
 
charter
revenues.
As of
 
June 30,
 
2025, and
 
throughout the
 
term of
 
the leases,
 
the Company
 
has annual
 
finance liabilities
as shown in the table below:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period
Principal Repayment
Year 1
$
10,012
Year 2
10,439
Year 3
10,916
Year 4
11,357
Year 5
11,851
Year 6 and
 
thereafter
64,509
Total
$
119,084