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Long-term Debt | 12 Months Ended
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Dec. 31, 2022
Debt Disclosure [Abstract] |
Long-term Debt | 9. Long-term Debt
Term Loans |  |  |
Issue Date/ Refinancing Date |  | Maturity Date |  | Drawn Amount |  |  | December 31, 2021 |  |  | December 31, 2022 |
July 2019 |  | January 2022 |  |  | 22,230,000 |  |  |  | 15,084,643 |  |  |  | — |
March 2019 |  | March 2022 |  |  | 25,458,432 |  |  |  | 3,039,647 |  |  |  | — |
January 2021 |  | January 2026 |  |  | 50,225,000 |  |  |  | 22,675,000 |  |  |  | 19,645,000 |
December 2018 |  | January 2022 |  |  | 9,480,000 |  |  |  | 7,080,000 |  |  |  | — |
January 2021 |  | January 2028 |  |  | 43,800,000 |  |  |  | 40,731,975 |  |  |  | 30,893,547 |
July 2014 |  | January 2022 |  |  | 25,350,000 |  |  |  | 12,146,875 |  |  |  | — |
May 2016 |  | December 2025 |  |  | 65,650,000 |  |  |  | 48,739,300 |  |  |  | 44,635,980 |
March 2017 |  | April 2026 |  |  | 70,787,500 |  |  |  | 52,456,243 |  |  |  | 47,399,991 |
June 2020 |  | January 2022 |  |  | 11,505,000 |  |  |  | 10,354,500 |  |  |  | — |
April 2020 |  | February 2027 |  |  | 34,450,000 |  |  |  | 32,797,915 |  |  |  | 30,884,026 |
August 2021 |  | August 2026 |  |  | 60,000,000 |  |  |  | 58,060,931 |  |  |  | 50,304,660 |
December 2021 |  | January 2028 |  |  | 59,400,000 |  |  |  | — |  |  |  | 55,224,000 |
Total |  |  |  |  |  |  | 303,167,029 |  |  |  | 278,987,204 |
Current portion of long-term debt |  |  |  |  |  |  | 32,464,732 |  |  |  | 30,666,756 |
Current portion of long-term debt associated with vessel held for sale |  |  |  |  |  |  | 7,173,988 |  |  |  | — |
Long-term debt |  |  |  |  |  |  | 263,528,309 |  |  |  | 248,320,448 |
Total debt |  |  |  |  |  |  | 303,167,029 |  |  |  | 278,987,204 |
F-22
Term Loans |  |  |
Issue Date/ Refinancing Date |  | Maturity Date |  | Drawn Amount |  |  | December 31, 2021 |  |  | December 31, 2022 |
Current portion of deferred finance charges |  |  |  |  |  |  | 628,113 |  |  |  | 582,950 |
Deferred finance charges non-current |  |  |  |  |  |  | 1,567,334 |  |  |  | 1,291,625 |
Total deferred finance charges |  |  |  |  |  |  | 2,195,447 |  |  |  | 1,874,575 |
Total debt |  |  |  |  |  |  | 303,167,029 |  |  |  | 278,987,204 |
Less: Total deferred finance charges |  |  |  |  |  |  | 2,195,447 |  |  |  | 1,874,575 |
Total debt, net of deferred finance charges |  |  |  |  |  |  | 300,971,582 |  |  |  | 277,112,629 |
Less: Current portion of long-term debt, net of current portion of deferred finance charges |  |  |  |  |  |  | 31,836,619 |  |  |  | 30,083,806 |
Less: Current portion of long-term debt, associated with vessel held for sale |  |  |  |  |  |  | 7,173,988 |  |  |  | — |
Long-term debt |  |  |  |  |  |  | 261,960,975 |  |  |  | 247,028,823 |
In December 2021, the Company entered into a term loan with a bank to refinance the existing term loans dated July 2014, December 2018, July 2019 and June 2020. Outstanding balance of these loans as of December 31, 2021 amounted to $44,666,018. The new term loan amounts to $59,400,000, was drawn in three tranches during January 2022 and carries interest at LIBOR plus a margin. Each tranche is repayable in 24 equal quarterly installments and a balloon payment payable together with the last installment in January 2028. Obligations with a maturity of less than one year relating to the previous loans amounting to $2,679,214, had been presented as long-term as of December 31, 2021 in accordance with US GAAP as the Company refinanced these obligations on a long-term basis through the term loan that the Company entered in December 2021 discussed above. The above loans are generally repayable in quarterly or semi-annual installments and a balloon payment at maturity and are secured by first priority mortgages over the vessels involved, plus the assignment of the vessels’ insurances, earnings and operating and retention accounts with the lenders, and the guarantee of ship-owning companies, as owners of the vessels. The term loans contain financial covenants requiring the Company to ensure that:
| • |  | the aggregate market value of the mortgaged vessels at all times exceeds a certain percentage of the amounts outstanding as defined in the term loans, ranging from 120% to 135%,
| • |  | the leverage of the Company defined as Total Debt net of Cash should not exceed 80% of total market value adjusted assets,
| • |  | the Interest Coverage Ratio of the Company which is EBITDA (as defined in the loan agreements) to interest expense to be at all times greater than 2.5:1,
| • |  | at least a certain percentage of the Company is to always be owned by members of the Vafias family,
| • |  | the Company should maintain on a monthly basis a cash balance amounting to $2,519,601 representing a proportionate amount of the next instalment and relevant interest plus a minimum aggregate cash balance amounting to $10,864,520 in the earnings accounts with the relevant banks,
| • |  | dividends paid by the borrower will not exceed 50 % of the Company’s free cash flow in any rolling 12 month period.
The interest rates on the outstanding loans as of December 31, 2022 are based on a LIBOR plus a margin which varies from 1.85% to 2.20%. The average interest rates (including the margin) on the above outstanding loans for the applicable periods were: Year ended December 31, 2020: 3.58 % Year ended December 31, 2021: 2.88% Year ended December 31, 2022: 4.20% Bank loan interest expense for the above loans for the years ended December 31, 2020, 2021 and 2022 amounted to $12,116,941, $8,684,097 and $11,446,312, respectively. Of these amounts, for the years ended December 31, 2020, 2021 and 2022, the amounts of $168,344, $20,060 and nil, respectively, were capitalized as part of advances paid for vessels under construction. Interest expense, net of interest capitalized, is included in interest and finance costs in the consolidated statements of operations. For the years ended December 31, 2020, 2021 and 2022, the amortization of deferred financing charges amounted to $698,364, $1,157,804 and $855,472, respectively, and is included in interest and finance costs in the consolidated statements of operations. At December 31, 2022, the Company was in compliance with all of its debt financial covenants. The annual principal payments to be made, for the abovementioned loans, after December 31, 2022, are as follows:
December 31, |  | Amount |
2023 |  |  | 30,666,756 |
2024 |  |  | 30,666,756 |
2025 |  |  | 62,992,776 |
2026 |  |  | 91,782,983 |
2027 |  |  | 21,845,483 |
Thereafter |  |  | 41,032,450 |
Total |  |  | 278,987,204 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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