Leases - The Company as Lessee (Tables)

12 Months Ended

Dec. 31, 2021

Operating lease

right-of-use

assets and lease liabilities as of December 31, 2020 and 2021 as follows:


Description	Location in balance sheet	December 31, 2020		December 31, 2021
Non current assets:
Office leases	Operating lease right-of-use assets	$	—	$	104,168

		$	—	$	104,168

Liabilities:
Office leases	Current portion of operating lease liabilities	$	—	$	104,168

Lease liabilities - current portion		$	—	$	104,168

Schedule of company's lease expenses and sub-lease income

The table below presents the components of the Company’s lease expenses and

sub-lease

income on a gross basis earned from

chartered-in

contracts greater than 12 months:


Description	Location in statement of operations	2019		2020		2021
Lease expense for chartered-in contracts 12 months or less	Charter hire expenses	$	4,708,988		—		—
Lease expense for chartered-in contracts greater than 12 months	Charter hire expenses		1,560,000		318,606		—

	Total charter hire expenses		6,268,988		318,606		—

Lease expense for office leases	General and administrative expenses		87,192		90,121		97,726
Sub lease income from chartered-in contracts greater than 12 months *	Revenues		3,091,390		860,227		—

The

sub-lease

income represents only time charter revenue earned on the

chartered-in

contracts greater than 12 months. There is additional revenue of $482,879 earned from voyage charters on the same

chartered-in

contract which is recorded in Revenues in our consolidated statement of operations for the year ended December 31, 2019 (2020 & 2021: nil). Additionally, there is revenue earned from time charters from

chartered-in

contracts 12 months or less which is included in Revenues in our consolidated statements of operations for the year ended December 31, 2019. No such contracts existed for the years ended December 31, 2020 and 2021.

Schedule of total amount of lease payments on an undiscounted basis

The table below provides the total amount of lease payments on an undiscounted basis on our office lease greater than 12 months as of December 31, 2021:


Year	Office leases			Total Operating leases
Discount rate upon adoption		5.6	%		5.6	%
2022 (undiscounted lease payments)	$	107,520		$	107,520

		107,520			107,520

Present value of lease liability		104,168			104,168
Lease liabilities - short term		104,168			104,168

Total lease liabilities		104,168			104,168

Discount based on incremental borrowing rate (Difference between undiscounted lease payments and present value of lease liability)	$	3,352		$	3,352