Related Party Transactions

6 Months Ended

Jun. 30, 2017



	December 31, 2016		Activity			June 30, 2017
						(unaudited)
Included in accounts payable, accrued expenses and other current liabilities on the consolidated balance sheets:
Affiliated companies (trade payables)	$	1,109,570	646,864			$	1,756,434

Included in current related party debt on the consolidated balance sheets:
Loan payable – 2011 Founders Note	$	4,325,000	—			$	4,325,000
Interest payable in-kind - 2011 Founders Note ⁽ⁱ⁾	368,347		156,826			525,173
Promissory Note	2,000,000		—			2,000,000
Loan payable – BVH shareholder (STST)⁽ⁱⁱ⁾	9,278,800		(9,278,800		)	—
Total current related party debt	$	15,972,147	$	(9,121,974	)	$	6,850,173

⁽ⁱ⁾ Paid in cash

⁽ⁱⁱ⁾ ST Shipping and Transport Pte. Ltd. ("STST")

In November 2014, the Company entered into a $5,000,000 Promissory Note (the “Note”) with Bulk Invest, Ltd., a company controlled by the Founders. The Note is payable on demand. Interest on the Note is 5%. The Company repaid a net amount of $3,000,000 since the Note's inception.

BVH entered into an agreement for the construction of two new ultramax newbuildings in 2013. Shareholder loans totaling $9,278,800 at December 31, 2016, were provided in order to make deposits on these contracts. The loans were converted to equity in conjunction with the acquisition of the noncontrolling interest in BVH on January 27, 2017. BVH is a wholly-owned subsidiary of the Company after the acquisition.

On October 1, 2011, the Company entered into a $10,000,000 loan agreement with the Founders, which was payable on demand at the request of the lenders (the 2011 Founders Note). The note bears interest at a rate of 5%. The balance of the 2011 Founders Note was $4,325,000 at June 30, 2017 and December 31, 2016.

Under the terms of a technical management agreement between the Company and Seamar Management S.A. (“Seamar”), an equity method investee, Seamar is responsible for the day-to-day operations for certain of the Company’s owned vessels and the two vessels operating under bareboat charters. During the three and six-month periods ended June 30, 2017 and 2016, the Company incurred technical management fees of approximately $662,400 and $1,304,000; and $437,000 and $874,000, respectively, under this arrangement. These fees are included in vessel operating expenses in the consolidated statements of income. The total amounts payable to Seamar at June 30, 2017 and December 31, 2016 were approximately $1,756,000 and $1,110,000, respectively.

Dividends payable to the Founders total $11,720,000 at June 30, 2017 and December 31, 2016. Approximately $4.4 million of these dividends payable were paid in-kind through issuance of common shares on August 9, 2017, as discussed in Note 1. Dividends payable to non-controlling interests total $904,000 at June 30, 2017.