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Basis of Presentation and General Information - 20F
 9 Months Ended 12 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Basis of Presentation and General Information [Abstract]    
Basis of Presentation and General Information
1.
Basis of Presentation and General Information:

Seanergy Maritime Holdings Corp. (the "Company" or "Seanergy") was formed under the laws of the Republic of the Marshall Islands on January 4, 2008, with executive offices located in Athens, Greece. The Company provides global transportation solutions in the dry bulk shipping sector through its vessel-owning subsidiaries.

On January 8, 2016, the Company's common stock began trading on a split-adjusted basis, following a December 22, 2015 approval from the Company's Board of Directors to reverse split the Company's common stock at a ratio of one-for-five. There was no change in the number of authorized shares or the par value of the Company's common stock. Following the reverse stock split, the number of shares issued and outstanding was reduced by 3 shares due to rounding. All share and per share amounts disclosed in the consolidated financial statements and notes give effect to this reverse stock split retroactively, for all periods presented.

The accompanying unaudited interim condensed consolidated financial statements include the accounts of Seanergy Maritime Holdings Corp. and its subsidiaries (collectively, the "Company" or "Seanergy").

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("U.S. GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") for certain financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These statements and the accompanying notes should be read in conjunction with the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed with the SEC on April 20, 2016.

In the opinion of management, these unaudited interim condensed consolidated financial statements, reflect all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows for the periods presented. Operating results for the nine-month period ended September 30, 2016, are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2016.

a.
Going Concern:

The Company acquired eight vessels in 2015 in accordance with its business plan to expand the fleet.
 
As of September 30, 2016, the Company was in compliance with or has cured any events of non-compliance of all its financial covenants and asset coverage ratios contained in its debt agreements as amended (Notes 7 and 15). Most financial covenants and asset coverage ratios will be tested commencing in mid 2017. Scheduled debt installment payments for the twelve month period ending September 30, 2017, amount to $6,840 (Note 7). Scheduled convertible promissory notes payments for the twelve month period ending September 30, 2017, amount to $3,500, of which an installment of $200 under the March 12, 2015 convertible promissory note can be deferred to the final maturity date (Note 3).

Given the current dry bulk charter rates, the Company's cash flow projections indicate that cash on hand and cash provided by operating activities might not be sufficient to cover the liquidity needs that become due in the twelve-month period ending September 30, 2017, including any loan prepayments that may be required in the case of future non-compliance with loan terms and covenants.

The Company, further to its efforts to raise equity in the public markets and from private investors, has relied on Jelco Delta Holding Corp., or Jelco, a company affiliated with Claudia Restis, who is also the Company's major shareholder, for both vessel acquisitions and funding for general corporate purposes during 2015 and for further funding during 2016 and 2017. In addition, the Company has undertaken a cost-cutting initiative to decrease its daily vessel operating expenses and in turn to reduce potential cash flow shortfall.

On August 5, 2016, the Company entered into a securities purchase agreement with an unaffiliated third party, which is an institutional investor, under which the Company sold 1,180,000 of its common shares in a registered direct offering at a price of $4.15 per share. On August 10, 2016, the Company completed the registered direct offering for net proceeds of approximately $4,080, which proceeds were used for general corporate purposes.

On September 26, 2016, the Company entered into separate agreements with an unaffiliated third party for the purchase of two second hand Capesize vessels for a gross purchase price of $20,750 per vessel. The first of the two vessels was delivered on November 30, 2016 and the second is expected to be delivered during December 2016, subject to the satisfaction of certain customary closing conditions (Notes 7 and 15).

On October 28, 2016, the Company filed with the SEC a registration statement on Form F-1 in connection with a contemplated follow-on registered public offering of the Company’s securities, comprised of common shares, par value $0.0001 per share, Class A warrants to purchase common shares, and an underwriter’s warrant to purchase common shares.  On November 29, 2016, the Company filed with the SEC an amendment to this registration statement on Form F-1 (Note 15).
 
On November 18, 2016, the Company entered into a securities purchase agreement with unaffiliated third parties, which are institutional investors, under which the Company sold 1,305,000 of its common shares in a registered direct offering at a price of $2.75 per share. On November 23, 2016, the Company completed the registered direct offering for net proceeds of approximately $3,200, used for general corporate purposes, including funding of vessel acquisitions (Note 15).

These consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Accordingly, they do not include any adjustments relating to the recoverability and classification of recorded asset amounts, the amounts and classification of liabilities, or any other adjustments that might result in the event the Company is unable to continue as a going concern.

b.
Subsidiaries in Consolidation:

Seanergy's subsidiaries included in these consolidated financial statements as of September 30, 2016, are as follows:

Company
 
Country of Incorporation
 
Date of Incorporation
 
Vessel name
 
Date of Delivery
 
Date of Sale/Disposal
 
Financed by
Seanergy Management Corp.(1) (3)
 
Marshall Islands
 
May 9, 2008
 
N/A
 
N/A
 
N/A
 
N/A
Seanergy Shipmanagement Corp.(1) (3)
 
Marshall Islands
 
September 16, 2014
 
N/A
 
N/A
 
N/A
 
N/A
Sea Glorius Shipping Co.(1)
 
Marshall Islands
 
September 16, 2014
 
Gloriuship
 
November 3, 2015
 
N/A
 
HSH Nordbank AG
Sea Genius Shipping Co.(1)
 
Marshall Islands
 
September 16, 2014
 
Geniuship
 
October 13, 2015
 
N/A
 
HSH Nordbank AG
Leader Shipping Co.(1)
 
Marshall Islands
 
January 15, 2015
 
Leadership
 
March 19, 2015
 
N/A
 
Alpha Bank A.E.
Premier Marine Co.(1)
 
Marshall Islands
 
July 9, 2015
 
Premiership
 
September 11, 2015
 
N/A
 
UniCredit Bank AG
Gladiator Shipping Co.(1)
 
Marshall Islands
 
July 9, 2015
 
Gladiatorship
 
September 29, 2015
 
N/A
 
UniCredit Bank AG
Guardian Shipping Co.(1)
 
Marshall Islands
 
July 9, 2015
 
Guardianship
 
October 21, 2015
 
N/A
 
UniCredit Bank AG
Champion Ocean Navigation Co.(1)
 
Liberia
 
August 6, 2015
 
Championship
 
December 7, 2015
 
N/A
 
Natixis
Squire Ocean Navigation Co.(1)
 
Liberia
 
August 6, 2015
 
Squireship
 
November 10, 2015
 
N/A
 
Alpha Bank A.E.
Emperor Holding Ltd.(1)
 
Marshall Islands
 
October 3, 2016
 
N/A
 
N/A
 
N/A
 
N/A
Knight Ocean Navigation Co.(1)
 
Liberia
 
October 3, 2016
 
N/A
 
N/A
 
N/A
 
N/A
Lord Ocean Navigation Co.(1)
 
Liberia
 
October 3, 2016
 
N/A
 
N/A
 
N/A
 
N/A
Pembroke Chartering Services Limited (4)
 
Malta
 
December 2, 2015
 
N/A
 
N/A
 
N/A
 
N/A
Amazons Management Inc.(1)
 
Marshall Islands
 
April 21, 2008
 
Davakis G.
 
August 28, 2008
 
March 6, 2014
 
Piraeus Bank
Lagoon Shipholding Ltd.(1)
 
Marshall Islands
 
April 21, 2008
 
Delos Ranger
 
August 28, 2008
 
March 11, 2014
 
Piraeus Bank
Cynthera Navigation Ltd.(1)
 
Marshall Islands
 
March 18, 2008
 
African Oryx
 
August 28, 2008
 
April 10, 2013
 
Piraeus Bank
Martinique International Corp.(1)
 
British Virgin Islands
 
May 14, 2008
 
Bremen Max
 
September 11, 2008
 
March 7, 2014
 
Piraeus Bank
Harbour Business International Corp.(1)
 
British Virgin Islands
 
April 1, 2008
 
Hamburg Max
 
September 25, 2008
 
March 10, 2014
 
Piraeus Bank
Waldeck Maritime Co.(1)
 
Marshall Islands
 
April 21, 2008
 
African Zebra
 
September 25, 2008
 
February 15, 2012
 
Piraeus Bank
Maritime Capital Shipping Limited (1)
 
Bermuda
 
April 30, 2007
 
N/A
 
N/A
 
N/A
 
N/A
Maritime Capital Shipping (HK) Limited (3)
 
Hong Kong
 
June 16, 2006
 
N/A
 
N/A
 
N/A
 
N/A
Maritime Glory Shipping Limited (2)
 
British Virgin Islands
 
April 8, 2008
 
Clipper Glory
 
May 21, 2010
 
December 4, 2012
 
HSBC
Maritime Grace Shipping Limited (2)
 
British Virgin Islands
 
April 8, 2008
 
Clipper Grace
 
May 21, 2010
 
October 15, 2012
 
HSBC
Atlantic Grace Shipping Limited (5)
 
British Virgin Islands
 
October 9, 2007
 
N/A
 
N/A
 
N/A
 
N/A

(1) Subsidiaries wholly owned
(2) Vessel owning subsidiaries owned by Maritime Capital Shipping Limited (or “MCS”)
(3) Management company
(4) Chartering services company
(5) Dormant company
1.Basis of Presentation and General Information:
Seanergy Maritime Holdings Corp. (the "Company" or "Seanergy") was formed under the laws of the Republic of the Marshall Islands on January 4, 2008, with executive offices located in Athens, Greece. The Company provides global transportation solutions in the drybulk shipping sector through its vessel-owning subsidiaries.
On January 8, 2016, the Company effected a one-to-five reverse stock split on its issued and outstanding common stock (Note 16). In connection with the reverse stock split 181 fractional shares were issued. All share and per share amounts disclosed in the consolidated financial statements and notes give effect to this reverse stock split retroactively, for all periods presented.
The accompanying consolidated financial statements include the accounts of Seanergy Maritime Holdings Corp. and its subsidiaries (collectively, the "Company" or "Seanergy").
a.Disposal of Subsidiaries:
On January 29, 2013, Maritime Capital Shipping Limited ("MCS"), a wholly owned subsidiary of the Company, sold its 100% ownership interest in the four subsidiaries that owned the Handysize drybulk carriers Fiesta, Pacific Fantasy, Pacific Fighter and Clipper Freeway. During the year ended December 31, 2013, the Company recognized a gain from the sale of the four MCS subsidiaries, of $5,538.
On July 19, 2013, MCS sold its 100% ownership interest in the three subsidiaries that owned the Handysize drybulk carriers African Joy, African Glory and Asian Grace. During the year ended December 31, 2013, the Company recognized a gain from the sale of the three MCS subsidiaries of $20,181.
b.Disposal of Vessels:
On March 11, 2014, the Company closed on its delivery and settlement agreement with its then remaining lender, Piraeus Bank, for the sale of its then four remaining vessels, to a nominee of the lender, in exchange for a nominal cash consideration and full satisfaction of the underlying loan facilities. The Company provided a corporate guarantee for these facilities. The four vessels were the drybulk carriers M/V Bremen Max, M/V Hamburg Max, M/V Davakis G. and M/V Delos Ranger. In exchange for the sale, approximately $145,597 of outstanding debt and accrued interest were discharged and the Company's guarantee was fully released.
For the year ended December 31, 2014, the Company recognized a gain from the sale of the four remaining vessels under the facility agreements with Piraeus Bank of $85,563.

c.Vessels Acquisitions:
On December 23, 2014 the Company entered into an agreement with an unaffiliated third party for the purchase of a second hand Capesize vessel, the 2001, 171,199 DWT vessel M/V Leadership. The acquisition was funded by secured senior bank debt, as well as financing by one of the Company's major shareholders. The transaction was approved by the Board of Directors. The vessel was delivered on March 19, 2015 (Note 7).
On August 6, 2015, the Company entered into a purchase agreement with entities affiliated with certain of the Company's major shareholder to acquire seven secondhand drybulk vessels (Notes 3 and 7).
d.Going Concern:
The Company acquired eight vessels in 2015 in accordance with its business plan to grow the fleet on a sustainable basis.
As of December 31, 2015, the Company was in compliance with all its financial covenants and asset coverage ratios contained in its debt agreements. Most financial covenants and asset coverage ratios will be tested commencing in 2017. Scheduled debt installment payments for 2016 amount to only $1,000, related to the Alpha Bank AE facility associated with the vessel Leadership. For the other facility agreements, debt repayments will commence in 2017 at the earliest.  Given the current drybulk charter rates, the Company's cash flow projections indicate that cash on hand and cash provided by operating activities might not be sufficient to cover the liquidity needs that become due in the twelve-month period ending December 31, 2016.
The Company has relied on Jelco Delta Holding Corp., or Jelco, a company affiliated with Claudia Restis, who is also the Company's major shareholder, for both vessel acquisitions and general corporate purposes during 2015 and for further funding during 2016.
The Company also intends to apply additional measures to reduce potential cash flow shortfall if current drybulk charter rates remain at today's historical low levels. The Company has undertaken a cost-cutting initiative to decrease its daily vessel operating expenses. The Company is also exploring raising additional equity from both capital markets and private investors.
These consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Accordingly, they do not include any adjustments relating to the recoverability and classification of recorded asset amounts, the amounts and classification of liabilities, or any other adjustments that might result in the event the Company is unable to continue as a going concern.
e.Subsidiaries in Consolidation:
Seanergy's subsidiaries included in these consolidated financial statements as of December 31, 2015 are as follows:
Company
 
Country of Incorporation
 
Date of Incorporation
 
Vessel name
 
Date of Delivery
 
Date of Sale/Disposal
 
Financed by
Seanergy Management Corp.(1) (3)
 
Marshall Islands
 
May 9, 2008
 
N/A
 
N/A
 
N/A
 
N/A
Seanergy Shipmanagement Corp.(1) (3)
 
Marshall Islands
 
September 16, 2014
 
N/A
 
N/A
 
N/A
 
N/A
Sea Glorius Shipping Co.(1)
 
Marshall Islands
 
September 16, 2014
 
Gloriuship
 
November 3, 2015
 
N/A
 
HSH Nordbank AG
Sea Genius Shipping Co.(1)
 
Marshall Islands
 
September 16, 2014
 
Geniuship
 
October 13, 2015
 
N/A
 
HSH Nordbank AG
Leader Shipping Co.(1)
 
Marshall Islands
 
January 15, 2015
 
Leadership
 
March 19, 2015
 
N/A
 
Alpha Bank A.E.
Premier Marine Co.(1)
 
Marshall Islands
 
July 9, 2015
 
Premiership
 
September 11, 2015
 
N/A
 
UniCredit Bank AG
Gladiator Shipping Co.(1)
 
Marshall Islands
 
July 9, 2015
 
Gladiatorship
 
September 29, 2015
 
N/A
 
UniCredit Bank AG
Guardian Shipping Co.(1)
 
Marshall Islands
 
July 9, 2015
 
Guardianship
 
October 21, 2015
 
N/A
 
UniCredit Bank AG
Champion Ocean Navigation Co.(1)
 
Liberia
 
August 6, 2015
 
Championship
 
December 7, 2015
 
N/A
 
Natixis
Squire Ocean Navigation Co.(1)
 
Liberia
 
August 6, 2015
 
Squireship
 
November 10, 2015
 
N/A
 
Alpha Bank A.E.
Pembroke Chartering Services Limited (4)
 
Malta
 
December 2, 2015
 
N/A
 
N/A
 
N/A
 
N/A
Amazons Management Inc.(1)
 
Marshall Islands
 
April 21, 2008
 
Davakis G.
 
August 28, 2008
 
March 6, 2014
 
Piraeus Bank
Lagoon Shipholding Ltd.(1)
 
Marshall Islands
 
April 21, 2008
 
Delos Ranger
 
August 28, 2008
 
March 11, 2014
 
Piraeus Bank
Cynthera Navigation Ltd.(1)
 
Marshall Islands
 
March 18, 2008
 
African Oryx
 
August 28, 2008
 
April 10, 2013
 
Piraeus Bank
Martinique International Corp.(1)
 
British Virgin Islands
 
May 14, 2008
 
Bremen Max
 
September 11, 2008
 
March 7, 2014
 
Piraeus Bank
Harbour Business International Corp.(1)
 
British Virgin Islands
 
April 1, 2008
 
Hamburg Max
 
September 25, 2008
 
March 10, 2014
 
Piraeus Bank
Waldeck Maritime Co.(1)
 
Marshall Islands
 
April 21, 2008
 
African Zebra
 
September 25, 2008
 
February 15, 2012
 
Piraeus Bank
Maritime Capital Shipping Limited (1)
 
Bermuda
 
April 30, 2007
 
N/A
 
May 21, 2010
 
N/A
 
N/A
Maritime Capital Shipping (HK) Limited (3)
 
Hong Kong
 
June 16, 2006
 
N/A
 
May 21, 2010
 
N/A
 
N/A
Maritime Glory Shipping Limited (2)
 
British Virgin Islands
 
April 8, 2008
 
Clipper Glory
 
May 21, 2010
 
December 4, 2012
 
HSBC
Maritime Grace Shipping Limited (2)
 
British Virgin Islands
 
April 8, 2008
 
Clipper Grace
 
May 21, 2010
 
October 15, 2012
 
HSBC
Atlantic Grace Shipping Limited (5)
 
British Virgin Islands
 
October 9, 2007
 
N/A
 
May 21, 2010
 
N/A
 
N/A

(1) Subsidiaries wholly owned
(2) Vessel owning subsidiaries owned by MCS
(3) Management company
(4) Chartering services company
(5) Dormant company