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Note 17 - Investment in Joint Venture | 12 Months Ended
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Dec. 31, 2012
Equity Method Investments and Joint Ventures Disclosure [Text Block] |
17. | Investment in Joint Venture
On March 25, 2010, the Company entered into a partnership (the “Joint Venture”) with companies managed by Eton Park Capital Management, L.P. ("Eton Park") and Rhône Capital III L.P. ("Rhône") to form Euromar LLC. Eton Park’s investments are made through Paros Ltd., a Cayman Islands exempted company, and Rhône’s investments are made through the Cayman Islands limited companies All Seas Investors I Ltd., All Seas Investors II Ltd., and the Cayman Islands exempted limited partnership All Seas Investors III LP. Euromar LLC will acquire, maintain, manage, operate and dispose of shipping vessels. Pursuant to the terms of the Joint Venture, the Company may invest up to $25.0 million for a 14.286% interest in the Joint Venture, while Eton Park and Rhône may each invest up to $75.0 million for a 42.857% interest in the Joint Venture each, for a total of $175 million. After March 25, 2012, Eton Park and Rhône have the option to convert part or all of their holdings in the Company’s stock at a conversion ratio based on the ratio of the net asset market values of the Company and the Joint Venture, or the ratio of the Company’s market value multiplied by 0.925 and the net asset market value of the Joint Venture whichever is to the advantage of the Company. No conversion can take place if any of the net asset market values are negative. Management of the vessels and various administrative services pertaining to the vessels are performed by Eurobulk and its affiliates; strategic, financial and reporting services are provided by Euroseas. For these services, Euroseas earned $240,000 in 2012. These amounts are recorded in “Related party revenue” under “Revenues”. During 2012, the Company contributed $3,750,000 and as of December 31, 2012, the Company has contributed $18.75 million. The Company accounts for its investment in the Joint Venture using the equity method of accounting despite the fact that it is a minority partner, it is considered to have significant influence in the operations and management of Euromar LLC (see “Significant Accounting Policies” – Note 2). The Company’s share of the results of operations of the Joint Venture is included in the “Consolidated statements of operations” as “Equity loss in joint venture”. The Company’s share of the results of operations of the Joint Venture amounted to a loss of $(538,833), ($2,415) and ($1,219,692) for the years 2010, 2011 and 2012, respectively. The Company’s investment in the Joint Venture is recorded in the “Consolidated balance sheets” at its book value which was $14,458,762 and $16,989,061 as of December 31, 2011 and 2012, respectively. Summarized financial information for the Joint Venture is as follows:
|  | 2010 |  |  | 2011 |  |  | 2012 |
Current assets |  |  | 7,432,566 |  |  |  | 7,732,697 |  |  |  | 10,912,327 |
Long-term assets |  |  | 167,386,946 |  |  |  | 217,878,004 |  |  |  | 242,007,329 |
Current liabilities |  |  | 8,002,899 |  |  |  | 16,908,232 |  |  |  | 6,051,142 |
Long-term liabilities |  |  | 65,834,481 |  |  |  | 107,737,239 |  |  |  | 127,316,330 |
Members’ contributions |  |  | 105,750,000 |  |  |  | 105,750,000 |  |  |  | 132,000,000 |
Voyage revenue |  |  | 4,479,908 |  |  |  | 29,233,585 |  |  |  | 27,428,223 |
Net revenue |  |  | 4,367,197 |  |  |  | 28,107,669 |  |  |  | 26,216,805 |
Operating income / (loss) |  |  | (3,388,490 | ) |  |  | 6,357,218 |  |  |  | (2,018,854 | )
Net loss |  |  | (4,017,868 | ) |  |  | (16,902 | ) |  |  | (8,413,047 | )

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32787-111569 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32847-111569 + Details
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