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Note 14 - Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
| 14. | Derivative Financial Instruments
Interest rate swaps Effective October 17, 2014, the Company entered into one interest rate swap with Eurobank – Ergasias S.A. (“Eurobank”) for a notional amount of $10.0 million, in order to manage interest costs and the risk associated with changing interest rates of the Company’s loans. Under the terms of the swap, Eurobank made a quarterly payment to the Company equal to the 3 -month LIBOR while the Company paid an adjustable rate averaging 1.97% (more specifically, the Company paid the fixed rate of 0.50% until November 28, 2016 then 0.95% until November 28, 2017 and then 3.55% until May 28, 2019) based on the relevant notional amount. The interest rate swap contract did not qualify for hedge accounting as of December 31, 2018. As of December 31, 2019, the Company had no interest rate swaps open positions.
Derivatives not designated as hedging instruments |  | Balance Sheet Location |  |  | December 31, 2018 |  |  |  | December 31, 2019 |
Interest rate swap contract |  | Current liabilities – Derivatives |  |  | 41,435 |  |  |  | - |
Total derivative liabilities |  |  |  |  | 41,435 |  |  |  | - |
Derivatives not designated as hedging instruments |  | Location of gain (loss) recognized |  |  | Year Ended December 31, 2017 |  |  |  | Year Ended December 31, 2018 |  |  |  | Year Ended December 31, 2019 |
Interest rate swap contract– Unrealized (loss) / gain |  | (Gain) / loss on derivativtes, net |  |  | (5,901 | ) |  |  | 204,647 |  |  |  | - |
Interest rate swap contract - Realized gain / (loss) |  | Gain / (loss) on derivatives, net |  |  | 19,071 |  |  |  | (201,745 | ) |  |  | (2,885 | )
Total net gain / (loss) on interest rate swap contract |  |  |  |  | 13,170 |  |  |  | 2,902 |  |  |  | (2,885 | )
Freight Forward Agreements (“FFA”) In December 2017, the Company entered into three FFA contracts on the Baltic Panamax Index (“BPI”) for the first three calendar months of 2018, totaling 90 days at an average time charter equivalent rate of $11,000 per day. The contracts are settled on a monthly basis using the average of the BPI for the days of the month the BPI is published. The Company receives a payment if the average BPI for the month is below the contract rate equal to the difference of the contract rate less the average BPI for the month times the number of contract days sold; if the average BPI for the month is greater than the contract rate, the Company makes a payment equal to the difference of the average BPI for the month less the contract rate times the number of contract days sold. If the Company buys contracts previously sold (or the opposite) the Company receives or pays the difference of the two rates for the period covered by the contracts. The FFA contracts did not qualify for hedge accounting. The Company follows guidance relating to “Fair value measurements” to calculate the fair value of the FFA contracts (see Note 16 ).
FFA contracts not designated as hedging instruments |  |  | Location of gain (loss) recognized |  |  | Year Ended December 31, 2017 |  |  |  | Year Ended December 31, 2018 |  |  | Year Ended December 31, 2019
FFA contracts – Unrealized loss |  |  | Gain / (loss) on derivatives, net |  |  | (781 | ) |  |  | - |  |  |  | - |
FFA contracts – Realized loss |  |  | Gain / (loss) on derivatives, net |  |  | - |  |  |  | (47,245 | ) |  |  | - |
Total loss on FFA contracts |  |  |  |  |  | (781 | ) |  |  | (47,245 | ) |  |  | - |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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