Time

charter-in

contracts

For the year ended December 31, 2020, the Company chartered in vessels to supplement its own fleet and employed them both on time charters and voyage charters. The time

charter-in

contracts ranged in lease terms from 1 year to 5 years. No

charter-in

contracts were entered into during the years ended December 31, 2021 and 2022.

The Company had one time

charter-in

contract with a monthly charter hire of $130,000 relating to the vessel Gas Cathar, which was greater than 12 months at January 1, 2019 i.e. the date of adoption of ASC 842. This contract expired in March 2020. Lease payments relating to this charter amounted to $318,606 for the year ended December 31, 2020 and are included in Charter hire expenses in the consolidated statements of operations.

Office lease

In January 2019, the Company renewed its contract to lease office space from a related party for a period until December 2020 at an amount of EUR 6,500 ($7,345) per month. In January 2021, the Company entered into a new agreement to lease office space from a related party for a period until December 2022 at an amount of EUR 7,000 ($8,279) per month. The Company determined these office leases to be operating leases and recorded the related

right-of-use-assets

within operating lease

right-of-use-assets

and the lease liabilities within operating lease liabilities in the accompanying consolidated balance sheets and the lease expense within General and administrative expenses in the accompanying consolidated statement of

operations (Note 3).

Lease Disclosures Under ASC 842

Operating lease

right-of-use

assets and lease liabilities as of December 31, 2021 and 2022 as follows:


Description	Location in balance sheet	December 31, 2021		December 31, 2022
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		—

The Operating lease

right-of-use

asset and Operating lease liabilities represent the present value of lease payments for the remaining term of the lease.

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	2020		2021		2022
Lease expense for chartered-in contracts greater than 12 months	Charter hire expenses		318,606		—		—

	Total charter hire expenses		318,606		—		—

Lease expense for office leases	General and administrative expenses		90,121		97,726		88,326

Sub lease income from chartered-in contracts greater than 12 months *	Revenues		860,227		—		—

*	The sub-lease income represents time charter revenue earned on the chartered-in contracts greater than 12 months.

The cash paid for operating leases with terms greater than 12 months for the years ended December 31, 2020, 2021 and 2022 amounted to $408,727, $97,726 and $88,326,

respectively.

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