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Note 3 - Transactions with Related Parties | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Related Party Transactions Disclosure [Text Block] |
| 3. | Transactions with Related Parties
The Manager provides the vessels with a wide range of shipping services such as chartering, technical support and maintenance, insurance, consulting, financial and accounting services, for a fixed daily fee of $440 per vessel operating under a voyage or time charter or $125 per vessel operating under a bareboat charter and a brokerage commission of 1.25 % on freight, hire and demurrage per vessel, as per the management agreement between the Manager and the Company. The Manager has subcontracted the technical management of some of the vessels to an affiliated ship-management company, Brave Maritime Corp. Inc. (“Brave”). This company provides technical management to the Company’s vessels for a fixed annual fee per vessel which is paid by the Manager. For the years ended December 31, 2014, 2015 and 2016, total brokerage commissions of 1.25% amounted to $1,613,421, $1,725,683 and $1,772,240, respectively, and are included in “Voyage expenses – related party” in the consolidated statements of operations. For the years ended December 31, 2014, 2015 and 2016, the management fees were $5,501,675, $6,452,145 and $7,346,180, respectively and are included in “Management fees – related party” in the consolidated statements of operations. In addition, the Manager arranges for supervision onboard the vessels, when required, by superintendent engineers and when such visits exceed a period of five days in a twelve month period, an amount of $500 is charged for each additional day. For the years ended December 31, 2014, 2015 and 2016, the superintendent fees amounted to $167,000, $245,000 and $172,000, respectively, and are included in “Vessels’ operating expenses – related party” in the consolidated statements of operations. The Manager also acts as a sales and purchase broker for the Company in exchange for a commission fee equal to 1% of the gross sale or purchase price of vessels or companies. For the years ended December 31, 2014, 2015 and 2016 commission fees relating to vessels purchased of $984,355, $1,925,563 and $421,639, respectively, were incurred and capitalized to the cost of the vessels. For the year ended December 31, 2014 an amount of $285,000 was recognized as commission expenses relating to the sale and leaseback of vessels and is included in the consolidated balance sheets under the caption “Deferred gain on sale and leaseback of vessels”. For the years ended December 31, 2015 and 2016 the amounts of $21,177 and $13,711 were recognized as commission expenses relating to the sale of vessels and is included in the consolidated statements of operations under the caption “Net gain on sale of vessels”. In addition to management services, the Company reimburses the Manager for compensation of its Chief Executive Officer, its Chief Financial Officer, its Internal Auditor, its Chief Technical Officer, its Finance Manager and its Deputy Chairman and Executive Director, which reimbursements were in the amounts of $1,317,237, $1,077,698 and $1,114,130, for the years ended December 31, 2014, 2015 and 2016, respectively, and are included in the consolidated statements of operations under the caption “General and administrative expenses”. The current account balance with the Manager at December 31, 2015 and at December 31, 2016 was a liability of $9,188,852 and $7,890,933, respectively. The liability represents payments made by the Manager on behalf of the ship-owning companies. The Company rents office space that is owned by an affiliated company of the Manager. Rental expense for the years ended December 31, 2014, 2015 and 2016 amounted to $76,788, $72,753 and $72,907, respectively, and is included in the consolidated statements of operations under the caption “General and administrative expenses”. In April 2012, the Company entered into time charter agreements for two of the Company’s vessels with Emihar Petroleum Inc., a company affiliated with members of the Vafias family incorporated in the Marshall Islands. One of the above time charter agreements expired in August 2016. Revenue from the related party amounted to $ 9,814,000 for each of the years ended December 31, 2014 and 2015, respectively, and $7,592,784 for the year ended December 31, 2016, and are included in the consolidated statements of operations under the caption “Revenues – related party”. In accordance with the time charter agreements for the vessels’ operating expenses, the Company paid to the Manager amounts of $3,932,352, $3,932,042 and $2,969,843 for the years ended December 31, 2014, 2015 and 2016, respectively, which are included in the consolidated statements of operations under the caption “Vessels’ operating expenses – related party”. The receivable balance with Emihar Petroleum Inc. as of December 31, 2015 and 2016, was a receivable of $228,494 and $115,599, respectively. On May 26, 2014, the Company entered into an agreement with Brave for the supervision of the construction of eight of its vessels for a fixed fee of Euro 390,000 per vessel. For the years ended December 31, 2014, 2015 and 2016, the supervision fees amounted to $984,204, $1,726,265 and $854,022, respectively, and were capitalized to the cost of the respective vessels. On January 25, 2016, the Company entered into an agreement with Brave for the supervision of the construction of four of its vessels for a fixed fee of Euro 490,000 ($539,343 based upon the EUR/USD exchange rate of 1.1007) per vessel.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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