Investments in Joint Ventures

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in joint ventures

During the first quarter of 2019, the Company entered into four joint venture agreements with a third party investor based on which the third party investor acquired for $20,720,975 a 49.9% equity interest in Space Gas Inc., Financial Power Inc., Cannes View Inc. and Colorado Oil and Gas Inc., four vessel owning companies of the Company, which own the vessels “Gas Defiance”, “Gas Shuriken”, “Gas Haralambos” and “Eco Lucidity”. The remaining 50.1% equity interest was valued at $20,804,025. The Company contributed funds for working capital purposes amounting to $751,500.

During the third quarter of 2019, Cannes View Inc. and Colorado Oil and Gas Inc., using the proceeds of a loan agreement that was entered into on July 9, 2019, returned an amount of

$14,696,900

to the Company and the third party investor based on their equity interests. Amount returned to the Company amounted to

$7,363,147.

May

, 2019, Frost Investments Corp Inc. was incorporated under the laws of the Marshall Islands. Frost Investments Corp Inc. acquired for $20,400,000 the vessel Eco Nebula and under a joint venture agreement is owned by the Company (50.1%) and by the third party investor (49.9%).

The Company contributed funds for the acquisition of vessel Eco Nebula and for working capital purposes amounting to $10,571,100, as needed and proportionate to its 50.1% equity interests.

The Company’s exposure is limited to its share of the net assets of Space Gas Inc., Financial Power Inc., Cannes View Inc., Colorado Oil and Gas Inc. and Frost Investments Corp Inc. (collectively “the joint venture entities”) proportionate to its 50.1%

equity interest in these companies. The Company shares the profits and losses, cash flows and other matters relating to its investments in the joint venture entities in accordance with its ownership percentage. The vessels are managed by the Manager, pursuant to management agreements. The Company accounts for investments in joint ventures using the equity method since it has joint control over the joint venture entities. The Company does not consolidate the joint venture entities because it does not have a controlling financial interest. The significant factors considered and judgments made in determining that the power to direct the activities of the joint venture entities that most significantly impact their economic performance are shared, are that all significant business decisions over operating and financial policies of the joint venture entities, require unanimous consent from each joint venture investor.

A condensed summary of the financial information for equity accounted investments 50.1% owned by the Company shown on a 100% basis are as follows:


	December 31, 2019
	Space Gas Inc.		Financial Power Inc.		Cannes View Inc.		Colorado Oil and Gas Inc			Frost Investments Corp Inc.
Current assets		2,237,644		1,745,681		2,560,065		2,265,263			13,693,747
Non-current assets		13,221,364		13,229,810		14,532,274		12,801,053			20,396,424
Current liabilities		1,426,128		1,583,998		1,702,293		2,488,495			2,653,152
Long-term liabilities		5,530,995		5,530,995		7,792,274		6,818,237			10,757,210
Revenues		3,362,478		3,281,896		2,707,338		2,032,648			2,047,026
Operating income/(loss)		1,122,467		477,559		872,331		(85,071	)		(370,748	)
Net income/(loss)		854,885		212,498		627,671		(303,415	)		(420,191	)