XML 31 R15.htm IDEA: XBRL DOCUMENT
v3.22.1

Investments in Joint Ventures | 12 Months Ended
--- | ---
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Joint Ventures | 7. 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 Spacegas 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. On May 22, 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 interest. On February 13, 2020, the Company entered into a joint venture agreement with an unaffiliated third party, for the purpose of acquiring three medium gas carriers and the establishment of a new holding company. The new holding company, MGC Agressive Holdings Inc., was established and the Company has a 51% equity interest in it. Pursuant to this joint venture agreement, subsidiaries of MGC Agressive Holdings Inc. acquired on February 28, 2020, two medium gas carriers, the Gaschem Hamburg and the Gaschem Stade, and on March 11, 2020, one medium gas carrier, the Gaschem Bremen, at an aggregate price of $80,550,000. The Company contributed funds for the acquisition of these vessels and for working capital purposes amounting to $41,998,500, as needed and proportionate to its 51% equity interest. During the second quarter of 2020, MGC Agressive Holdings Inc., using the proceeds of a loan agreement that was entered into on May 7, 2020, returned an amount of $47,600,000 to the Company and the unaffiliated third party based on their equity interests. Amount returned to the Company amounted to $24,276,000. During the second quarter of 2020, Frost Investments Corp Inc., using the proceeds of a loan agreement that was entered into on December 3, 2019, returned an amount of $5,000,000 to the Company and the third party investor based on their equity interests. Amount returned to the Company amounted to $2,505,000. During the first quarter of 2021, a subsidiary of MGC Agressive Holdings Inc. entered into a memorandum of agreement for the disposal of the vessel Gaschem Hamburg to an unaffiliated third party for $34,000,000. The vessel was delivered to its new owners on May 10, 2021. The Company’s exposure is limited to its share of the net assets of Spacegas Inc., Financial Power Inc., Cannes View Inc., Colorado Oil and Gas Inc., Frost Investments Corp Inc. and MGC Agressive Holdings Inc. (collectively “the joint venture entities”) proportionate to its 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, while three of the vessels were also managed by a third party manager during 2020. 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 consent from each joint venture investor. As of December 31, 2021, the carrying value of the Company’s equity method investments was $1.95 million higher than its interest in the investee’s underlying net assets. This basis difference relates to a vessel under construction and will be amortized over the vessel’s useful life. A condensed summary of the financial information for equity accounted investments partially owned by the Company shown on a 100 % basis is as follows:
|  | December 31, 2020 |
|  | Spacegas Inc. |  |  | Financial Power Inc. |  |  | Cannes View Inc. |  |  | Colorado Oil and Gas Inc |  |  | Frost Investments Corp Inc. |  |  | MGC Agressive Holdings Inc. |
Current assets |  |  | 2,163,484 |  |  |  | 2,359,816 |  |  |  | 1,267,542 |  |  |  | 1,126,697 |  |  |  | 10,831,800 |  |  |  | 5,096,668 |
Non-current assets |  |  | 12,559,048 |  |  |  | 12,575,608 |  |  |  | 13,801,972 |  |  |  | 12,335,790 |  |  |  | 19,464,419 |  |  |  | 82,809,937 |
Current liabilities |  |  | 1,118,776 |  |  |  | 1,491,243 |  |  |  | 1,440,769 |  |  |  | 2,688,747 |  |  |  | 2,575,067 |  |  |  | 8,315,433 |
Long-term liabilities |  |  | 4,855,255 |  |  |  | 4,855,255 |  |  |  | 7,050,860 |  |  |  | 6,169,497 |  |  |  | 9,384,573 |  |  |  | 40,958,366 |
Revenues |  |  | 3,222,037 |  |  |  | 3,481,799 |  |  |  | 2,764,359 |  |  |  | 2,704,455 |  |  |  | 6,866,426 |  |  |  | 18,409,814 |
Operating income/(loss) |  |  | 451,895 |  |  |  | 935,869 |  |  |  | (645,197 | ) |  |  | (817,717 | ) |  |  | 3,122,539 |  |  |  | 4,869,260 |
Net income/(loss) |  |  | 246,616 |  |  |  | 728,428 |  |  |  | (1,019,886 | ) |  |  | (1,155,342 | ) |  |  | 2,656,770 |  |  |  | 3,882,812 |
|  | December 31, 2021 |
|  | Spacegas Inc. |  |  | Financial Power Inc. |  |  | Cannes View Inc. |  |  | Colorado Oil and Gas Inc |  |  | Frost Investments Corp Inc. |  |  | MGC Agressive Holdings Inc. |
Current assets |  |  | 2,347,954 |  |  |  | 3,112,192 |  |  |  | 1,630,592 |  |  |  | 1,017,765 |  |  |  | 13,208,202 |  |  |  | 23,228,225 |
Non-current assets |  |  | 11,900,116 |  |  |  | 11,924,795 |  |  |  | 13,071,670 |  |  |  | 11,870,528 |  |  |  | 18,532,414 |  |  |  | 56,221,031 |
Current liabilities |  |  | 1,426,492 |  |  |  | 1,506,835 |  |  |  | 1,687,929 |  |  |  | 3,231,113 |  |  |  | 2,247,545 |  |  |  | 5,357,705 |
Long-term liabilities |  |  | 4,178,256 |  |  |  | 4,178,256 |  |  |  | 6,307,812 |  |  |  | 5,519,327 |  |  |  | 8,008,092 |  |  |  | 22,799,849 |
Revenues |  |  | 3,023,283 |  |  |  | 3,464,824 |  |  |  | 4,227,682 |  |  |  | 3,154,728 |  |  |  | 7,162,657 |  |  |  | 17,468,871 |
Operating income/(loss) |  |  | 26,559 |  |  |  | 893,121 |  |  |  | 396,337 |  |  |  | (216,091 | ) |  |  | 3,509,152 |  |  |  | 13,857,864 |
Net (loss)/income |  |  | (105,179 | ) |  |  | 762,975 |  |  |  | 128,636 |  |  |  | (466,393 | ) |  |  | 3,148,404 |  |  |  | 12,918,760 |

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration