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Transactions with Related Parties (Tables) | 12 Months Ended
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Dec. 31, 2023
Transactions with Related Parties [Abstract] |
Transactions with Related Parties | During the years ended December 31, 2021, 2022, and 2023, the Company incurred the following charges in connection with related party transactions, which are included in the accompanying consolidated statements of comprehensive income:
|  | Year ended December 31, |  |  | Year ended December 31, |  |  | Year ended December 31, |
|  | 2021 |  |  | 2022 |  |  | 2023 |
Management fees-related parties |  |  |  |  |  |  |  |  |
Management fees – Castor Ships (a) |  | $ | 1,438,500 |  |  | $ | 2,182,400 |  |  | $ | 2,660,797 |
Management fees – Pavimar (b) |  |  | 3,452,400 |  |  |  | 4,380,000 |  |  |  | 4,506,600 |
Included in Voyage expenses |  |  |  |  |  |  |  |  |  |  |  |
Charter hire commissions – Castor Ships (a) |  | $ | 1,299,108 |  |  | $ | 1,944,288 |  |  | $ | 1,274,384 |
Included in Interest and finance costs |  |  |  |  |  |  |  |  |  |  |  |
Interest expenses – Thalassa (e) |  | $ | 204,167 |  |  | $ | — |  |  | $ | — |
Included in General and administrative expenses |  |  |  |  |  |  |  |  |  |  |  |
Administration fees – Castor Ships (a) |  | $ | 1,200,000 |  |  | $ | 2,100,000 |  |  | $ | 3,099,000 |
Included in Gain on sale of vessel |  |  |  |  |  |  |  |  |  |  |  |
Sale & purchase commission – Castor Ships (a) |  | $ | — |  |  | $ | — |  |  | $ | 664,000 |
Included in Vessels’ cost |  |  |  |  |  |  |  |  |  |  |  |
Sale & purchase commission – Castor Ships (a) |  | $ | — |  |  | $ | 235,500 |  |  | $ | — |
As of December 31, 2022, and 2023, balances with related parties consisted of the following:
|  | December 31, 2022 |  |  | December 31, 2023 |
Assets: |  |  |  |  |  |
Due from Castor Ships (a) – current |  | $ | — |  |  | $ | 2,283,209 |
Due from Castor Ships (a) – non-current |  |  | 3,514,098 |  |  |  | 4,504,340 |
Due from Pavimar (b) – current |  |  | 2,664,976 |  |  |  | 3,366,959 |
Investment in Toro (c) – non-current |  |  | — |  |  |  | 117,537,135 |
Liabilities: |  |  |  |  |  |  |  |
Due to Castor Ships (a) – current |  | $ | 227,622 |  |  | $ | — |
Due to Toro (d) – current |  |  | — |  |  |  | 541,666 |
Valuation Methodology and Significant Other Observable Inputs | As there was no observable market for the Series A Preferred Shares, these were recognized at $117,222,135 (Note 11), being the fair value of the shares determined through Level 3 inputs of the fair value hierarchy by taking into consideration a third-party valuation. The fair value on the initial recognition is deemed to be the cost. The valuation methodology applied comprised the bifurcation of the value of the Series A Preferred Shares in two components namely, the “straight” preferred stock component and the option component. The mean of the sum of the two components was used to estimate the value for the Series A Preferred Shares at $117,222,135. The valuation methodology and the significant unobservable inputs used for each component are set out below:
| Valuation Technique | Unobservable Input |  | Values |
“Straight” Preferred Stock Component | Discounted cash flow model | • Weighted average cost of capital |  |  | 12.80 | %
Option Component | Black Scholes | • Volatility |  |  | 69.00 | %
• Risk-free rate |  |  | 3.16 | %
• Weighted average cost of capital |  |  | 12.80 | %
• Strike price |  | $ | 5.75 |
• Share price (based on the first 5 trading days volume weighted average) |  | $ | 4.52 |

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of related party transactions. Examples of related party transactions include, but are not limited to, transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners and (d) affiliates. + References No definition available. + Details
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