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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended
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Sep. 30, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ Basis of presentation ​ The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and the rules and regulations of the SEC that apply to interim financial statements, including the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the disclosures and footnotes normally included in complete consolidated financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 27, 2024 (the “2023 10-K”). The accompanying Condensed Consolidated Financial Statements include the accounts of GS&T and its direct and indirect wholly-owned subsidiaries and GSSM. All intercompany accounts and transactions have been eliminated in consolidation. ​ In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and operating results have been included in the statements. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2024. ​ Use of estimates ​ The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, impairment of vessels, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels, the fair value of time charters acquired, performance-based restricted stock units and the fair value of derivative instruments, if any. Actual results could differ from those estimates. ​ Cash, cash equivalents and restricted cash ​ The Company considers highly liquid investments, such as money market funds and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. Non-current restricted cash includes cash that is restricted pursuant to our lease agreement. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts shown in the Condensed Consolidated Statements of Cash Flows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, | ​ | December 31, | ​
​ |  | 2024 |  | 2023 |
Cash and cash equivalents |  | $ | 46,665 |  | $ | 46,542 | ​
Restricted cash – current | ​ | ​ | — | ​ | ​ | — | ​
Restricted cash – noncurrent | ​ |  | 315 | ​ |  | 315 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash, cash equivalents and restricted cash |  | $ | 46,980 |  | $ | 46,857 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ Vessels held for sale ​ On July 16, 2024, the Company entered into an agreement to sell the Genco Hadrian and the sale of the vessel was completed on October 4, 2024. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2024. ​ On May 21, 2024, the Company entered into an agreement to sell the Genco Warrior and the sale of the vessel was completed on July 5, 2024. ​ On November 14, 2023, the Company entered into an agreement to sell the Genco Commodus and the sale of the vessel was completed on February 7, 2024. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of December 31, 2023. ​ Additionally, on December 21, 2023 the Company entered into agreements to sell the Genco Claudius and Genco Maximus. On February 24, 2024, the Company terminated its agreements to sell the Genco Claudius and the Genco Maximus due to the buyers’ breach of the agreements’ terms. During the first quarter of 2024, the Company commenced arbitration with the buyers, seeking a declaration that it validly terminated the agreements due to the buyers’ breach, and to retain the deposits paid by the buyers in connection with the sales, totaling $3,650. During the second quarter of 2024, the Company and the buyers reached an agreement to settle this matter and concluded the arbitration proceeding in exchange for the buyers releasing the deposits to the Company. On May 13, 2024, the Company received the deposits and recorded the $3,650 as part of the net gain on sale of vessels in the Condensed Consolidated Statement of Operations during the nine months ended September 30, 2024, closing the matter. On March 1, 2024, the Company entered into new agreements to sell the Genco Claudius and Genco Maximus to a separate unaffiliated third-party, and the sales were completed on April 22, 2024 and April 2, 2024, respectively. The relevant vessel assets have been classified as held for sale in the Condensed Consolidated Balance Sheet as of December 31, 2023. Refer to Note 4 — Vessel Acquisitions and Dispositions for details of the agreements. ​ Bunker swap and forward fuel purchase agreements ​ From time to time, the Company may enter into fuel hedge agreements with the objective of reducing the risk of the effect of changing fuel prices. The Company has entered into bunker swap agreements and forward fuel purchase agreements. The Company’s bunker swap agreements and forward fuel purchase agreements do not qualify for hedge accounting treatment; therefore, any unrealized or realized gains and losses are recorded in the Condensed Consolidated Statements of Operations. Derivatives are Level 2 instruments in the fair value hierarchy. ​ During the three months ended September 30, 2024 and 2023, the Company recorded ($15) and $164 of realized (losses) gains in other expense, respectively. During the three months ended September 30, 2024 and 2023, the Company recorded ($123) and ($15) of unrealized losses in other expense, respectively. ​ During the nine months ended September 30, 2024 and 2023, the Company recorded $95 and $245 of realized gains in other expense, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded ($84) and ($95) of unrealized losses in other expense, respectively. ​ The total fair value of the bunker swap agreements and forward fuel purchase agreements in an asset position as of September 30, 2024 and December 31, 2023 is $0 and $1, respectively, and are recorded in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. The total fair value of the bunker swap agreements and forward fuel purchase agreements in a liability position as of September 30, 2024 and December 31, 2023 is $82 and $0, respectively, and are recorded in accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets. ​ Voyage expense recognition ​ In time charters and spot market-related time charters, operating costs including crews, maintenance and insurance are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters and spot market-related time charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net loss (gain) of $76 and ($552) during the three months ended September 30, 2024 and 2023, respectively, and $195 and $89 during the nine months ended September 30, 2024 and 2023, respectively. Additionally, voyage expenses include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. ​ Impairment of vessel assets ​ Impairment of vessel assets includes the impairment of vessel assets in accordance with Accounting Standards Codification (“ASC”) 360 — “Property, Plant and Equipment” (“ASC 360”), as well as any losses incurred related to the disposal of replaced equipment on the vessels. ​ During the three and nine months ended September 30, 2024, the Company recorded $961 and $6,595, respectively, of impairment expense. During the three and nine months ended September 30, 2023, the Company recorded $28,102 of impairment expense. Included in the impairment expense recorded during the three and nine months ended September 30, 2024, there is $961 recorded related to the loss on disposal of replaced equipment on certain vessels. ​ On July 16, 2024, the Company entered into an agreement to sell the Genco Hadrian, a 2008-built Capesize vessel, to a third party for $25,000 less a 2.0% commission payable to a third party. As the anticipated undiscounted cash flows, including the net sales price, did not exceed the net book value of the vessels as of June 30, 2024, the vessel value for the Genco Hadrian was adjusted to its net sales price of $24,500 as of June 30, 2024. This resulted in an impairment loss of $5,634 during the nine months ended September 30, 2024. ​ On September 30, 2023, the Company determined that the expected estimated future undiscounted cash flows for three of its Capesize vessels, the Genco Claudius, the Genco Commodus and the Genco Maximus, did not exceed the net book value of these vessels as of September 30, 2023. This resulted in an impairment loss of $28,102 during the three and nine months ended September 30, 2023. ​ Net gain on sale of vessels ​ During the three and nine months ended September 30, 2024, the Company recorded a net gain of $4,465 and $16,693 related primarily to gains on the sale of the Genco Warrior during the three months ended September 30, 2024 and the sale of the Genco Claudius, the Genco Maximus and the Genco Warrior, partially offset by a loss on the sale of the Genco Commodus during the nine months ended September 30, 2024. During the three and nine months ended September 30, 2023, the Company did not complete the sale of any vessels. Refer to Note 4 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels. ​ Other operating expense ​ Other operating expense of $0 and $5,728 recorded during the three and nine months ended September 30, 2024, respectively, consist of costs incremental to routine expenses that were incurred related to the Company’s 2024 annual meeting held on May 23, 2024.

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- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent + Details
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