Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2020 | |
Document Information [Line Items] | |
Entity Registrant Name | EUROSEAS LTD. |
Entity Central Index Key | 0001341170 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Document Period End Date | Sep. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 2,271,069 | $ 985,418 |
Trade accounts receivable, net | 1,114,449 | 715,097 |
Other receivables | 1,552,352 | 1,570,506 |
Inventories | 2,214,978 | 1,889,164 |
Restricted cash | 208,593 | 610,376 |
Prepaid expenses | 300,203 | 526,531 |
Total current assets | 7,661,644 | 6,297,092 |
Long-term assets: | ||
Vessels, net | 103,068,797 | 116,230,333 |
Restricted cash | 2,334,267 | 4,334,267 |
Total assets | 113,064,708 | 126,861,692 |
Current liabilities | ||
Long-term bank loans, current portion | 10,059,860 | 12,295,320 |
Related party loan, current | 4,375,000 | 5,000,000 |
Trade accounts payable | 2,717,260 | 3,899,967 |
Accrued expenses | 1,491,029 | 1,725,321 |
Accrued preferred dividends | 161,315 | |
Derivative | 336,420 | |
Deferred revenues | 550,298 | 973,774 |
Due to related company | 328,133 | 795,562 |
Total current liabilities | 19,858,000 | 24,851,259 |
Long-term liabilities | ||
Long-term bank loans, net of current portion | 60,563,619 | 72,187,785 |
Derivative | 246,430 | |
Fair value of below market time charters acquired | 240,639 | 1,714,370 |
Total long-term liabilities | 61,050,688 | 73,902,155 |
Total liabilities | 80,908,688 | 98,753,414 |
Commitments and Contingencies | ||
Mezzanine Equity | ||
Preferred shares (par value $0.01, 20,000,000 preferred shares authorized, 8,000 and 8,363 issued and outstanding, respectively) | 8,019,636 | 7,654,577 |
Shareholders’ equity | ||
Common stock (par value $0.03, 200,000,000 shares authorized, 5,600,259 and 5,800,259 issued and outstanding) | 174,008 | 168,008 |
Additional paid-in capital | 254,702,888 | 253,967,708 |
Accumulated deficit | (230,740,512) | (233,682,015) |
Total shareholders’ equity | 24,136,384 | 20,453,701 |
Total liabilities, mezzanine equity and shareholders’ equity | $ 113,064,708 | $ 126,861,692 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 8,363 | 8,000 |
Preferred stock, shares outstanding (in shares) | 8,363 | 8,000 |
Common stock, par value (in dollars per share) | $ 0.03 | $ 0.03 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 5,800,259 | 5,600,259 |
Common stock, shares outstanding (in shares) | 5,800,259 | 5,600,259 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Time charter revenue | $ 43,148,575 | $ 27,952,803 |
Commissions (including $349,410 and $539,357, respectively, to related party) | (1,878,833) | (1,234,728) |
Net revenue | 41,269,742 | 26,718,075 |
Operating expenses | ||
Voyage expenses | 1,290,792 | 737,952 |
Vessel operating expenses (including $113,662 and $240,764, respectively, to related party) | 24,710,877 | 16,114,329 |
Dry-docking expenses | 437,106 | 1,181,614 |
Vessel depreciation | 5,001,837 | 2,687,550 |
Related party management fees | 4,048,805 | 2,496,070 |
Net gain on sale of vessels | (1,305,016) | |
General and administrative expenses (including $937,500 and $1,500,000, respectively, to related party) | 2,274,205 | 1,913,764 |
Other operating income | (2,687,205) | |
Loss on write-down of vessel held for sale | 121,165 | |
Total operating expenses | 33,892,566 | 25,131,279 |
Operating income | 7,377,176 | 1,586,796 |
Other income/(expenses) | ||
Interest and other financing costs (including $0 and $287,672, respectively, to related party) | (3,320,074) | (2,272,181) |
Loss on debt extinguishment | (328,291) | |
Loss on derivative, net | (564,631) | (2,885) |
Foreign exchange gain / (loss) | (42,538) | 7,875 |
Interest income | 16,191 | 91,141 |
Other expenses, net | (3,911,052) | (2,504,341) |
Net (loss) / income | 3,466,124 | (917,545) |
Dividend Series B Preferred shares | (524,621) | (1,110,467) |
Preferred deemed dividend | (504,577) | |
Earnings / Net (loss) / income attributable to common shareholders | $ 2,941,503 | $ (2,532,589) |
Weighted average number of shares outstanding during the period, basic & diluted (in shares) | 5,621,159 | 2,129,233 |
(Loss) / earnings per share attributable to the common shareholders, basic and diluted (in dollars per share) | $ 0.52 | $ (1.19) |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Operations (Parentheticals) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Commissions, related party | $ 539,357 | $ 349,410 |
Vessel operating expenses, related party | 240,764 | 113,662 |
Gain on sale of vessel to related party | 80,161 | |
Other general and administrative expenses, related party | 1,500,000 | 937,500 |
Interest and other financing costs, related party | $ 287,672 | $ 0 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | [1] | Retained Earnings [Member] | Total | ||
Balance (in shares) at Dec. 31, 2018 | [1] | 1,564,456 | |||||
Balance at Dec. 31, 2018 | $ 46,934 | [1] | $ 233,996,669 | $ (230,222,985) | $ 3,820,618 | ||
Net income (loss) | [1] | (917,545) | (917,545) | ||||
Dividends to Series B preferred shares | [1] | (1,110,467) | (1,110,467) | ||||
Preferred deemed dividend | [1] | (504,577) | (504,577) | ||||
Issuance of shares for vessel acquisitions (in shares) | [1] | 2,816,901 | |||||
Issuance of shares for vessel acquisitions | $ 84,507 | [1] | 13,134,155 | 13,218,662 | |||
Share-based compensation | [1] | 72,404 | 72,404 | ||||
Balance (in shares) at Sep. 30, 2019 | [1] | 4,381,357 | |||||
Balance at Sep. 30, 2019 | $ 131,441 | [1] | 247,203,228 | (232,755,574) | 14,579,095 | ||
Balance (in shares) at Dec. 31, 2019 | [1] | 5,600,259 | |||||
Balance at Dec. 31, 2019 | $ 168,008 | [1] | 253,967,708 | (233,682,015) | 20,453,701 | ||
Net income (loss) | [1] | 3,466,124 | 3,466,124 | ||||
Dividends to Series B preferred shares | [1] | (524,621) | (524,621) | ||||
Share-based compensation | [1] | 91,546 | 91,546 | ||||
Offering expenses | [1] | (65,916) | (65,916) | ||||
Issuance of shares sold at the market (ATM), net of issuance costs (in shares) | [1] | 200,000 | |||||
Issuance of shares sold at the market (ATM), net of issuance costs | $ 6,000 | [1] | 709,550 | 715,550 | |||
Balance (in shares) at Sep. 30, 2020 | [1] | 5,800,259 | |||||
Balance at Sep. 30, 2020 | $ 174,008 | [1] | $ 254,702,888 | $ (230,740,512) | $ 24,136,384 | ||
[1] | Adjusted to reflect the 1-for-8 reverse stock split effected at the close of trading on December 18, 2019. |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net (loss) / income | $ 3,466,124 | $ (917,545) |
Adjustments to reconcile net (loss) / income to net cash provided by operating activities: | ||
Vessel depreciation | (5,001,837) | (2,687,550) |
Amortization of deferred charges | 216,524 | 154,959 |
Share-based compensation | 91,546 | 72,404 |
Net gain on sale of vessels | (1,305,016) | |
Loss on write-down of vessel held for sale | 121,165 | |
Gain on hull and machinery claim | (2,687,205) | |
Amortization of fair value of below market time charters acquired | (1,473,731) | (184,950) |
Unrealized (gain) / loss on derivative | 582,850 | (41,435) |
Amortization of debt discount | 95,214 | |
Loss on debt extinguishment | 328,291 | |
Changes in operating assets and liabilities | (2,309,846) | 739,918 |
Net cash provided by operating activities | 1,704,248 | 2,934,406 |
Cash flows from investing activities: | ||
Cash paid for vessel acquisition and capitalized expenses | (451,846) | (15,153,626) |
Proceeds from sale of vessels | 9,752,649 | |
Insurance proceeds | 2,226,140 | |
Net cash (used in) / provided by investing activities | 11,526,943 | (15,153,626) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of commissions paid | 715,550 | |
Redemption of Series B preferred shares | (11,686,000) | |
Preferred dividends paid | (320,877) | (870,512) |
Loan arrangement fees paid | (214,500) | |
Offering expenses paid | (40,846) | |
Proceeds from long-term bank loans | 28,167,680 | |
Proceeds from related party loan | 2,500,000 | |
Repayment of long-term bank loans and vessel profit participation liability | (14,076,150) | (11,516,000) |
Repayment of related party loan | (625,000) | |
Net cash provided by / (used in) financing activities | (14,347,323) | 6,380,668 |
Net decrease in cash and cash equivalents and restricted cash | (1,116,132) | (5,838,552) |
Cash, cash equivalents and restricted cash at beginning of period | 5,930,061 | 13,211,588 |
Cash, cash equivalents and restricted cash at end of period | 4,813,929 | 7,373,036 |
Cash breakdown | ||
Cash and cash equivalents | 2,271,069 | 3,164,030 |
Restricted cash, current | 208,593 | 624,739 |
Restricted cash, long term | 2,334,267 | 3,584,267 |
Cash, cash equivalents and restricted cash at end of period | $ 4,813,929 | $ 7,373,036 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and General Information | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Euroseas Ltd. was formed on May 5, 2005 The operations of the vessels are managed by Eurobulk Ltd. (“Eurobulk” or “Management Company” or “Manager”), a corporation controlled by members of the Pittas family. Eurobulk has an office in Greece located at 4 5 The Pittas family is the controlling shareholder of Friends Investment Company Inc., Containers Shareholders Trinity Ltd., Eurobulk Marine Holdings Inc. and Diamantis Shareholders Ltd. which, in turn, own 62% September 30, 2020. The accompanying unaudited condensed consolidated financial statements include the accounts of Euroseas Ltd., and its wholly owned vessel owning subsidiaries and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 20 April 30, 2020. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information. Accordingly, they do not nine September 30, 2020 not December 31, 2020. As of September 30, 2020, $12.2 nine September 30, 2020, $3.5 $2.9 $1.7 $2.3 $2.5 September 30, 2020. 12 not may twelve |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. A summary of the Company's significant accounting policies and recent accounting pronouncements is identified in Note 2 20 December 31, 2019 ( " 2019 " no nine September 30, 2020, Reference Rate Reform (Topic 848 In March 2020, No. 2020 04, 848 2020 04" 2020 04 March 12, 2020 December 31, 2022. may |
Note 3 - Vessels, Net
Note 3 - Vessels, Net | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 3. Vessels, net The amounts in the accompanying unaudited condensed consolidated balance sheets are as follows: Costs Accumulated Depreciation Net Book Value Balance, January 1, 2020 132,863,067 (16,632,734 ) 116,230,333 Depreciation for the period - (5,001,837 ) (5,001,837 ) Capitalized expenses 408,974 - 408,974 Sale of vessels (13,402,114 ) 4,833,441 (8,568,673 ) Balance, September 30, 2020 119,869,927 (16,801,130 ) 103,068,797 In January 2020, 2,506 2000 July 6, 2020, $3.7 6 June 30, 2020 $3.7 $0.1 $3.8 $0.1 In February 2020, 1,452 1995 April 7, 2020, not 19 $1,133,817 June 19, 2020, $2.0 $0.3 On June 30, 2020 1,169 1993 June 30, 2020, $1.6 July 13, 2020, $1.9 $0.3 On September 17, 2020 1,169 1990 September 30, 2020. $2.3 $0.8 As of September 30, 2020 7 |
Note 4 - Fair Value of Below Ma
Note 4 - Fair Value of Below Market Time Charters Acquired | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Below Market Time Charters Acquired [Text Block] | 4. Fair Value of Below Market Time Charters Acquired Details of the Company's fair value of below market acquired time charters are discussed in Note 6 December 31, 2019, 2019 For the nine September 30, 2020, $1,473,731 The unamortized balance of this intangible liability as of September 30, 2020 $240,639 2020. |
Note 5 - Related Party Transact
Note 5 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 5. Related Party Transactions Details of the Company's transactions with related parties did not nine September 30, 2020 7 December 31, 2019, 2019 The Company's vessel owning companies are parties to management agreements with the Management Company which is controlled by members of the Pittas family, whereby the Management Company provides technical and commercial vessel management for a fixed daily fee of Euro 685 nine September 30, 2019 2020 $2,496,070 $4,048,805 nine September 30, 2019 2020, The MMA was further renewed on January 1, 2018 five January 1, 2023 5% 685 2020 may In addition to the vessel management services, the Management Company provides the Company with the services of its executives, services associated with the Company being a public company and other services to the Company's subsidiaries. For the nine September 30, 2019 2020, $937,500 $1,500,000, in the unaudited condensed consolidated statements of operations Amounts due to or from related company represent net disbursements and collections made on behalf of the vessel-owning companies by the Management Company during the normal course of operations for which a right of offset exists. As of December 31, 2019 June 30, 2020 $795,562 $328,133, The Company uses brokers for various services, as is industry practice. Eurochart S.A., an affiliated company controlled by certain members of the Pittas family, provides vessel sale and purchase services, and chartering services to the Company whereby the Company pays commission of 1% 1.25% $80,161 nine September 30, 2020. in the unaudited condensed consolidated statements of operations. $349,410 $539,357 nine September 30, 2019 2020, in the unaudited condensed consolidated statements of operations. Certain members of the Pittas family, together with another unrelated ship management company, have formed a joint venture with the insurance broker Sentinel Maritime Services Inc. (“Sentinel”). Technomar Crew Management Services Corp (“Technomar”), is a company owned by certain members of the Pittas family, together with two not 5%; $50 $34,743 $78,919 first nine 2019, first nine 2020, $106,699 $161,845, On September 30, 2019, $2.5 first May 15, 2020 three November 2020. November 1, 2019, second $2.5 no December 31, 2020, 8% $287,672 nine September 30, 2020. |
Note 6 - Other Operating Income
Note 6 - Other Operating Income | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Other Operating Income and Expense [Text Block] | 6. Other operating income In January 2020, $2.7 September 30, 2020, $2.2 September 30, 2020, $0.8 $0.3 $2.7 |
Note 7 - Long-term Debt
Note 7 - Long-term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 7. Long-Term Debt Long-term debt represents bank loans of the Company. Outstanding long-term debt as of December 31, 2019 September 30, 2020 Borrower December 31, September 30, Alterwall Business Inc. / Allendale Investments S.A. / Manolis Shipping Ltd. / Joanna Maritime Ltd. / Jonathan John Shipping Ltd. / Athens Shipping Ltd. / Oinousses Navigation Ltd. / Corfu Navigation Ltd. / Bridge Shipping Ltd. / Noumea Shipping Ltd. / Gregos Shipping Ltd. 37,650,000 28,375,000 Diamantis Shipowners Ltd. 3,507,220 3,106,300 Spetses Shipowners Ltd., Kea Shipowners Ltd., Hydra Shipowners Ltd. 12,050,000 11,150,000 Antwerp Shipping Ltd. / Busan Shipping Ltd. / Keelung Shipping Ltd. / Oakland Shipping Ltd. 32,000,000 28,500,000 85,207,220 71,131,300 Less: Current portion (12,541,840 ) (10,306,380 ) Long-term portion 72,665,380 60,824,920 Deferred charges, current portion 246,520 246,520 Deferred charges, long-term portion 477,595 261,301 Long-term bank loans, current portion net of deferred charges 12,295,320 10,059,860 Long-term bank loans, long-term portion net of deferred charges 72,187,785 60,563,619 Loan from related party, current Euroseas Ltd. 5,000,000 4,375,000 The future annual loan repayments are as follows: To September 30: 2021 10,306,380 2022 21,674,690 2023 19,450,230 2024 19,700,000 Total 71,131,300 Details of the loans are discussed in Note 8 December 31, 2019 2019 During the second 2020 July 2020, 2020 $5.2 December 2021 2022. The Company's bank loans are secured with one · first · first · a corporate guarantee of Euroseas Ltd. · a pledge of all the issued shares of each borrower. The loan agreements contain covenants such as minimum requirements regarding the security cover ratio (the ratio of fair value of vessel to outstanding loan less cash in retention accounts ranging from 120% 140% not $4,410,376 $2,008,593 December 31, 2019 September 30, 2020, September 30, 2020, Interest expense, including loan fee amortization for the nine September 30, 2019 2020 $2,272,181 $3,320,074, |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 8. Commitments and Contingencies (a) As of September 30, 2020 October 2009 November 2009 $0.53 $0.15 may (b) On November 7, 2019 1 4 2019 12 4,250 November 16, 2020 4:00 November 15, 2019 4:00 November 16, 2020, $500,000 20 November 16, 2020 4:00 The specific contingency was resolved on November 16, 2020 November 15, 2020 ( 12 There are no not As of September 30, 2020, $17.0 $16.5 twelve September 30, 2021 $0.5 twelve September 30, 2022. one may not not |
Note 9 - Stock Incentive Plan
Note 9 - Stock Incentive Plan | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 9. Stock Incentive Plan A summary of the status of the Company's unvested shares as of January 1, 2020, nine September 30, 2020, Unvested Shares Shares Weighted-Average Grant-Date Fair Value Unvested on January 1, 2020 23,304 6.77 Granted - - Vested (7,729 ) 8.56 Forfeited - - Unvested on September 30, 2020 15,575 5.88 As of September 30, 2020, $49,575 0.4 nine September 30, 2019 2020 $72,404 $91,546, |
Note 10 - (Loss) Earnings Per S
Note 10 - (Loss) Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. (Loss) / Earnings Per Share Basic and diluted (loss)/earnings per common share is computed as follows: For the nine months 2019 2020 Net (loss) / income (917,545 ) 3,466,124 Dividend Series B Preferred shares (1,110,467 ) (524,621 ) Preferred deemed dividend (504,577 ) - Net (loss) / income attributable to common shareholders (2,532,589 ) 2,941,503 Weighted average common shares – outstanding 2,129,233 5,621,159 Basic and diluted (loss) / earnings per share (1.19 ) 0.52 The Company excluded the effect of 15,555 September 30, 2020 11,278 September 30, 2019, nil nine September 30, 2019 2020. |
Note 11 - Financial Instruments
Note 11 - Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | 11. The principal financial assets of the Company consist of cash and cash equivalents, restricted cash, trade accounts receivable and other receivables. The principal financial liabilities of the Company consist of long-term bank loans, derivatives, trade accounts payable, accrued expenses and amount due to related company. Interest rate risk The Company enters into interest rate swap contracts as economic hedges to manage some of its exposure to variability in its floating rate long-term bank loans. Under the terms of the interest rate swaps the Company and the bank agree to exchange, at specified intervals the difference between a paying fixed rate and floating rate interest amount calculated by reference to the agreed principal amounts and maturities. Interest rate swaps allow the Company to convert long-term borrowings issued at floating rates into equivalent fixed rates. Even though the interest rate swaps were entered into for economic hedging purposes, the derivatives described below in this note do not Derivatives and Hedging not September 30, 2020, one $30.0 Concentration of credit risk Financial instruments, which potentially subject the Company to significant concentration of credit risk consist primarily of cash and trade accounts receivable. The Company places its temporary cash investments, consisting mostly of deposits, with high credit qualified financial institutions. The Company performs periodic evaluation of the relative credit standing of these financial institutions that are considered in the Company's investment strategy. The Company limits its credit risk with trade accounts receivable by performing ongoing credit evaluations of its customers' financial condition and generally does not Fair value of financial instruments The estimated fair values of the Company's financial instruments such as cash and cash equivalents, restricted cash and amount due to related company approximate their individual carrying amounts as of December 31, 2019 September 30, 2020, 1 $71.36 September 30, 2020 $0.23 $71.13 2 The Company follows guidance relating to “Fair value measurements”, which establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. This statement enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value will be classified and disclosed in one three Level 1: Level 2: Level 3: not The fair value of the Company's interest rate swap agreement is determined using a discounted cash flow approach based on market-based LIBOR swap rates. LIBOR swap rates are observable at commonly quoted intervals for the full terms of the swaps and therefore are considered Level 2 2 Derivative not designated as hedging instrument Location of gain / (loss) recognized Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Interest rate swap contract – Unrealized gain / (loss) Loss on derivative, net 41,435 (582,850) Interest rate swap contract - Realized (loss) / gain Loss on derivative, net (44,320) 18,219 Total loss on derivative (2,885) (564,631) Asset Measured at Fair Value on a Non-recurring Basis As of June 30, 2020 $3.77 $3.87 $0.22 $0.12 2. Nonrecurring Fair Value Measurements at Reporting Date September 30, 2020 Fair Value Level 1 Level 2 Level 3 Loss 2020 Vessel held for sale $ 3,873,406 - $ 3,873,406 - $ 121,165 |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 12. The following events occurred after September 30, 2020: (a) In October 2020, $4.9 $3.75 November 9, 2020. (b) In November 2020, 8 $0.5 four November 2019 161,357 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Reference Rate Reform (Topic 848 In March 2020, No. 2020 04, 848 2020 04" 2020 04 March 12, 2020 December 31, 2022. may |
Note 3 - Vessels, Net (Tables)
Note 3 - Vessels, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Costs Accumulated Depreciation Net Book Value Balance, January 1, 2020 132,863,067 (16,632,734 ) 116,230,333 Depreciation for the period - (5,001,837 ) (5,001,837 ) Capitalized expenses 408,974 - 408,974 Sale of vessels (13,402,114 ) 4,833,441 (8,568,673 ) Balance, September 30, 2020 119,869,927 (16,801,130 ) 103,068,797 |
Note 7 - Long-term Debt (Tables
Note 7 - Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | Borrower December 31, September 30, Alterwall Business Inc. / Allendale Investments S.A. / Manolis Shipping Ltd. / Joanna Maritime Ltd. / Jonathan John Shipping Ltd. / Athens Shipping Ltd. / Oinousses Navigation Ltd. / Corfu Navigation Ltd. / Bridge Shipping Ltd. / Noumea Shipping Ltd. / Gregos Shipping Ltd. 37,650,000 28,375,000 Diamantis Shipowners Ltd. 3,507,220 3,106,300 Spetses Shipowners Ltd., Kea Shipowners Ltd., Hydra Shipowners Ltd. 12,050,000 11,150,000 Antwerp Shipping Ltd. / Busan Shipping Ltd. / Keelung Shipping Ltd. / Oakland Shipping Ltd. 32,000,000 28,500,000 85,207,220 71,131,300 Less: Current portion (12,541,840 ) (10,306,380 ) Long-term portion 72,665,380 60,824,920 Deferred charges, current portion 246,520 246,520 Deferred charges, long-term portion 477,595 261,301 Long-term bank loans, current portion net of deferred charges 12,295,320 10,059,860 Long-term bank loans, long-term portion net of deferred charges 72,187,785 60,563,619 Loan from related party, current Euroseas Ltd. 5,000,000 4,375,000 |
Schedule of Future Annual Loan Repayments [Table Text Block] | To September 30: 2021 10,306,380 2022 21,674,690 2023 19,450,230 2024 19,700,000 Total 71,131,300 |
Note 9 - Stock Incentive Plan (
Note 9 - Stock Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Nonvested Share Activity [Table Text Block] | Unvested Shares Shares Weighted-Average Grant-Date Fair Value Unvested on January 1, 2020 23,304 6.77 Granted - - Vested (7,729 ) 8.56 Forfeited - - Unvested on September 30, 2020 15,575 5.88 |
Note 10 - (Loss) Earnings Per_2
Note 10 - (Loss) Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the nine months 2019 2020 Net (loss) / income (917,545 ) 3,466,124 Dividend Series B Preferred shares (1,110,467 ) (524,621 ) Preferred deemed dividend (504,577 ) - Net (loss) / income attributable to common shareholders (2,532,589 ) 2,941,503 Weighted average common shares – outstanding 2,129,233 5,621,159 Basic and diluted (loss) / earnings per share (1.19 ) 0.52 |
Note 11 - Financial Instrumen_2
Note 11 - Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Derivative not designated as hedging instrument Location of gain / (loss) recognized Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Interest rate swap contract – Unrealized gain / (loss) Loss on derivative, net 41,435 (582,850) Interest rate swap contract - Realized (loss) / gain Loss on derivative, net (44,320) 18,219 Total loss on derivative (2,885) (564,631) |
Fair Value Measurements, Nonrecurring [Table Text Block] | September 30, 2020 Fair Value Level 1 Level 2 Level 3 Loss 2020 Vessel held for sale $ 3,873,406 - $ 3,873,406 - $ 121,165 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation and General Information (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Shareholders Ownership, Percentage | 62.00% | |
Working Capital Deficit | $ (12,200,000) | |
Net Income (Loss) Attributable to Parent, Total | 3,466,124 | $ (917,545) |
Net Income (Loss) Available to Common Stockholders, Basic, Total | 2,941,503 | (2,532,589) |
Net Cash Provided by (Used in) Operating Activities, Total | 1,704,248 | $ 2,934,406 |
Cash, Ending Balance | 2,300,000 | |
Restricted Cash and Cash Equivalents, Total | $ 2,500,000 |
Note 3 - Vessels, Net (Details
Note 3 - Vessels, Net (Details Textual) - USD ($) | Sep. 17, 2020 | Jul. 13, 2020 | Jul. 06, 2020 | Jun. 19, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 9,752,649 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 1,305,016 | ||||||
M/V EM Oinousses [Member] | |||||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 3,700,000 | ||||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 3,870,000 | 3,700,000 | |||||
Impairment of Long-Lived Assets to be Disposed of | 120,000 | 100,000 | |||||
Assets Held-for-sale, Not Part of Disposal Group, Current, Total | 3,770,000 | 3,800,000 | |||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | (100,000) | ||||||
M/V Manolis P [Member] | |||||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 2,000,000 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 300,000 | ||||||
Advance Received for Vessel Held for Sale | $ 1,133,817 | ||||||
M/V Kuo Hsiung [Member] | |||||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 1,900,000 | ||||||
Assets Held-for-sale, Not Part of Disposal Group, Current, Total | $ 1,600,000 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 300,000 | ||||||
Ninos [Member] | |||||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 2,300,000 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 800,000 |
Note 3 - Vessels, Net - Summary
Note 3 - Vessels, Net - Summary of Vessels (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net book value | $ 116,230,333 | |
Depreciation for the period | (5,001,837) | $ (2,687,550) |
Net book value | 103,068,797 | |
Vessels [Member] | ||
Costs | 132,863,067 | |
Accumulated depreciation | (16,632,734) | |
Net book value | 116,230,333 | |
Depreciation for the period | (5,001,837) | |
Capitalized expenses | 408,974 | |
Sale of vessels | (13,402,114) | |
Sale of vessels | 4,833,441 | |
Sale of vessels | (8,568,673) | |
Costs | 119,869,927 | |
Accumulated depreciation | (16,801,130) | |
Net book value | $ 103,068,797 |
Note 4 - Fair Value of Below _2
Note 4 - Fair Value of Below Market Time Charters Acquired (Details Textual) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Amortization of fair value of below market time charters acquired | $ 1,473,731 | $ 184,950 | |
Below Market Time Charters Acquired, Noncurrent | $ 240,639 | $ 1,714,370 |
Note 5 - Related Party Transa_2
Note 5 - Related Party Transactions (Details Textual) | Jan. 01, 2018 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | Dec. 31, 2019USD ($) | Nov. 01, 2019USD ($) |
Service Management Costs Daily Fee Related Party | € | € 685 | |||||
Related Party Agreement Term (Year) | 5 years | |||||
Related Party Transaction Discount Percentage | 5.00% | |||||
Due to Related Parties, Total | $ 328,133 | $ 795,562 | ||||
Sales Commissions and Fees | 1,878,833 | $ 1,234,728 | ||||
Interest and Other Financing Costs, Related Party | 287,672 | 0 | ||||
M/V Manolis P, M/V Kuo Hsiung and M/V EM Oinousses [Member] | ||||||
Sales Commissions and Fees | 80,161 | |||||
Eurobulk Ltd. [Member] | Vessel Management Fees [Member] | ||||||
Related Party Transaction, Amounts of Transaction | 4,048,805 | 2,496,070 | ||||
Eurobulk Ltd. [Member] | Fixed Management Fees [Member] | ||||||
Related Party Transaction, Amounts of Transaction | $ 1,500,000 | 937,500 | ||||
Eurochart [Member] | Vessel Sales [Member] | ||||||
Related Party Transaction Commission, Percentage | 1.00% | |||||
Eurochart [Member] | Charter Revenues [Member] | ||||||
Related Party Transaction Commission, Percentage | 1.25% | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 539,357 | 349,410 | ||||
Sentinel [Member] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 106,699 | 34,743 | ||||
Related Party Transaction Commission on Premium, Maximum, Percentage | 5.00% | |||||
Technomar [Member] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 161,845 | 78,919 | ||||
Related Party Transaction Amounts of Transaction Per Crew Member Per Month | 50 | |||||
Colby Trading Ltd [Member] | First Debt Agreement [Member] | ||||||
Due to Related Parties, Total | $ 2,500,000 | |||||
Colby Trading Ltd [Member] | Second Debt Agreement [Member] | ||||||
Due to Related Parties, Total | $ 2,500,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||
Colby Trading Ltd [Member] | First and Second Debt Agreement [Member] | ||||||
Interest and Other Financing Costs, Related Party | $ 287,672 |
Note 6 - Other Operating Inco_2
Note 6 - Other Operating Income (Details Textual) - M/V EM Oinousses [Member] - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Jan. 31, 2020 | Sep. 30, 2020 | |
Vessel Evaluation, Unrepaired Damage Claim | $ 2.7 | |
Vessel Evaluation, Damage Repair Paid | $ 2.2 | |
Vessel Evaluation, Receivable | 0.8 | |
Vessel Evaluation, General Average Claim | 0.3 | |
Other Operating Income [Member] | ||
Vessel Evaluation, Other Operating Income | $ 2.7 |
Note 7 - Long-term Debt (Detail
Note 7 - Long-term Debt (Details Textual) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jul. 31, 2020 | |
Debt Instrument, Deferred Debt Amount | $ 5,200,000 | ||
Restricted Cash, Total | $ 2,008,593 | $ 4,410,376 | |
Interest Expense, Total | $ 3,320,074 | $ 2,272,181 | |
Minimum [Member] | |||
Debt Instrument Covenant, Ratio of Fair Value of Vessel to Outstanding Loan Less Cash in Retention Accounts | 120.00% | ||
Maximum [Member] | |||
Debt Instrument Covenant, Ratio of Fair Value of Vessel to Outstanding Loan Less Cash in Retention Accounts | 140.00% |
Note 7 - Long-term Debt - Summa
Note 7 - Long-term Debt - Summary of Long-term Debt (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Long-term debt, gross | $ 71,131,300 | $ 85,207,220 |
Less: Current portion | (10,306,380) | (12,541,840) |
Long-term portion | 60,824,920 | 72,665,380 |
Deferred charges, current portion | 246,520 | 246,520 |
Deferred charges, long-term portion | 261,301 | 477,595 |
Long-term bank loans, current portion net of deferred charges | 10,059,860 | 12,295,320 |
Long-term bank loans, long-term portion net of deferred charges | 60,563,619 | 72,187,785 |
Loan from related party, current | 328,133 | 795,562 |
Euroseas Ltd [Member] | ||
Loan from related party, current | 4,375,000 | 5,000,000 |
Debt Agreement With 11 Borrowers [Member] | ||
Long-term debt, gross | 28,375,000 | 37,650,000 |
Diamantis Shipowners Ltd. [Member] | ||
Long-term debt, gross | 3,106,300 | 3,507,220 |
Kea Shipowners Ltd. / Spetses Shipowners Ltd. / Hydra Shipowners Ltd. [Member] | ||
Long-term debt, gross | 11,150,000 | 12,050,000 |
Antwerp Shipping Ltd. / Busan Shipping Ltd. / Keelung Shipping Ltd. / Oakland Shipping Ltd. [Member] | ||
Long-term debt, gross | $ 28,500,000 | $ 32,000,000 |
Note 7 - Long-term Debt - Sum_2
Note 7 - Long-term Debt - Summary of Future Annual Loan Repayments for Long-term Debt (Details) | Sep. 30, 2020USD ($) |
2021 | $ 10,306,380 |
2022 | 21,674,690 |
2023 | 19,450,230 |
2024 | 19,700,000 |
Total | $ 71,131,300 |
Note 8 - Commitments and Cont_2
Note 8 - Commitments and Contingencies (Details Textual) - USD ($) | Sep. 30, 2020 | Nov. 07, 2019 |
Future Gross Minimum Revenues Under Non-cancellable Time Charter Agreements | $ 17,000,000 | |
Future Gross Minimum Revenues Under Non-cancellable Time Charter Agreements, Due in Next Twelve Months | 16,500,000 | |
Future Gross Minimum Revenues Under Non-cancellable Time Charter Agreements, Due in Next Two Years | 500,000 | |
Purchase of Vessels [Member] | ||
Cash Issued Per Vessel Purchased | $ 500,000 | |
Alterwall Business Inc. Vs. Fuel Oil Supplier [Member] | Pending Litigation [Member] | Alterwall Business Inc. [Member] | ||
Restricted Cash and Investments, Total | 530,000 | |
Estimated Litigation Liability | $ 150,000 |
Note 9 - Stock Incentive Plan_2
Note 9 - Stock Incentive Plan (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 49,575 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 146 days | |
General and Administrative Expense [Member] | ||
Share-based Payment Arrangement, Expense | $ 91,546 | $ 72,404 |
Note 9 - Stock Incentive Plan -
Note 9 - Stock Incentive Plan - Summary of the Status of the Company's Non-vested Shares (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Unvested (in shares) | shares | 23,304 |
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.77 |
Granted (in shares) | shares | |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | |
Vested (in shares) | shares | (7,729) |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 8.56 |
Forfeited (in shares) | shares | |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | |
Unvested (in shares) | shares | 15,575 |
Unvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.88 |
Note 10 - (Loss) Earnings Per_3
Note 10 - (Loss) Earnings Per Share (Details Textual) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted Average Number of Shares Outstanding, Diluted, Total (in shares) | 0 | 0 |
Unvested Incentive Award Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 15,555 | 11,278 |
Note 10 - (Loss) Earnings Per_4
Note 10 - (Loss) Earnings Per Share - Summary of Basic and Diluted Loss Per Common Share (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net (loss) / income | $ 3,466,124 | $ (917,545) |
Dividend Series B Preferred shares | (524,621) | (1,110,467) |
Preferred deemed dividend | (504,577) | |
Net (loss) / income attributable to common shareholders | $ 2,941,503 | $ (2,532,589) |
Weighted average common shares – outstanding (in shares) | 5,621,159 | 2,129,233 |
Basic and diluted (loss) / earnings per share (in dollars per share) | $ 0.52 | $ (1.19) |
Note 11 - Financial Instrumen_3
Note 11 - Financial Instruments (Details Textual) | 6 Months Ended | 9 Months Ended |
Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Long-term Debt, Fair Value | $ 71,360,000 | |
Difference Between Fair Value and Carrying Value | 230,000 | |
Long-term Debt, Total | 71,130,000 | |
M/V EM Oinousses [Member] | ||
Assets Held-for-sale, Not Part of Disposal Group, Current, Total | $ 3,770,000 | 3,800,000 |
Property, Plant, and Equipment, Fair Value Disclosure | 3,870,000 | 3,700,000 |
Vessel Held for Sale, Estimated Sale Costs | 220,000 | |
Impairment of Long-Lived Assets to be Disposed of | $ 120,000 | $ 100,000 |
Interest Rate Swap [Member] | ||
Derivative, Number of Instruments Held, Total | 1 | |
Derivative, Notional Amount | $ 30,000,000 |
Note 11 - Financial Instrumen_4
Note 11 - Financial Instruments - Gain or Loss on Derivatives Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Gain (loss) on derivatives | $ (564,631) | $ (2,885) |
Interest Rate Contracts, Unrealized (Loss) / Gain [Member] | ||
Gain (loss) on derivatives | (582,850) | 41,435 |
Interest Rate Contracts, Realized (Loss) / Gain [Member] | ||
Gain (loss) on derivatives | $ 18,219 | $ (44,320) |
Note 11 - Financial Instrumen_5
Note 11 - Financial Instruments - Fair Value of Company's Investments (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Vessels held for sale, impairment loss | $ 121,165 | |
Fair Value, Nonrecurring [Member] | Vessels [Member] | ||
Vessel held for sale | 3,873,406 | |
Vessels held for sale, impairment loss | 121,165 | |
Fair Value, Nonrecurring [Member] | Vessels [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Vessel held for sale | ||
Fair Value, Nonrecurring [Member] | Vessels [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Vessel held for sale | 3,873,406 | |
Fair Value, Nonrecurring [Member] | Vessels [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Vessel held for sale |
Note 12 - Subsequent Events (De
Note 12 - Subsequent Events (Details Textual) | 1 Months Ended | 9 Months Ended | |||
Nov. 30, 2020USD ($)shares | Oct. 31, 2020USD ($) | Nov. 30, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 9,752,649 | ||||
Synergy Keelung, Synergy Oakland, Synergy Busan and Synergy Antwerp [Member] | |||||
Number of Vessels Acquired | 4 | ||||
Subsequent Event [Member] | MV EM Athens [Member] | |||||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 4,900,000 | ||||
Repayments of Debt | $ 3,750,000 | ||||
Subsequent Event [Member] | Synergy Keelung, Synergy Oakland, Synergy Busan and Synergy Antwerp [Member] | |||||
Stock Issued During Period, Value, Vessel Acquisition, Per Vessel | $ 0.50 | ||||
Stock Issued During Period, Shares, Vessel Acquisition (in shares) | shares | 161,357 |