Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document And Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Ardmore Shipping Corp |
Title of 12(b) Security | Common stock |
Trading Symbol | ASC |
Security Exchange Name | NYSE |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 33,186,603 |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Entity Central Index Key | 0001577437 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 58,365,330 | $ 51,723,107 |
Receivables, net of allowance for bad debts of $0.5 million (2019: $0.9 million) | 17,808,496 | 30,083,358 |
Prepaid expenses and other assets | 3,683,910 | 1,940,030 |
Advances and deposits | 2,516,646 | 4,114,065 |
Inventories | 10,274,062 | 10,158,735 |
Vessel held for sale | 9,895,000 | |
Total current assets | 102,543,444 | 98,019,295 |
Non-current assets | ||
Vessels and vessel equipment, net of accumulated depreciation of $170.2 million (2019: $146.2 million) | 631,458,305 | 660,823,330 |
Deferred drydock expenditures, net of accumulated amortization of $13.3 million (2019: $10.3 million) | 10,216,090 | 7,668,711 |
Advances for Ballast water treatment systems | 2,568,874 | 384,408 |
Other non-current assets, net of accumulated depreciation of $1.7 million (2019: $1.4 million) | 678,632 | 917,222 |
Amount receivable in respect of finance leases | 2,880,000 | 2,880,000 |
Operating lease, right-of-use asset | 1,662,510 | 1,745,464 |
Total non-current assets | 649,464,411 | 674,419,135 |
TOTAL ASSETS | 752,007,855 | 772,438,430 |
Current liabilities | ||
Accounts payable | 9,125,321 | 4,789,935 |
Accrued expenses and other liabilities | 11,233,767 | 16,278,084 |
Accrued interest on debt and finance leases | 769,304 | 880,183 |
Current portion of long-term debt | 22,456,396 | 20,216,171 |
Current portion of finance lease obligations | 18,454,222 | 17,975,322 |
Current portion of derivative liabilities | 397,418 | |
Current portion of operating lease obligations | 463,559 | 289,231 |
Total current liabilities | 62,899,987 | 60,428,926 |
Non-current liabilities | ||
Non-current portion of long-term debt | 188,054,568 | 187,066,842 |
Non-current portion of finance lease obligations | 179,250,162 | 197,704,372 |
Non-current portion of derivative liabilities | 433,974 | |
Non-current portion of operating lease obligations | 1,034,218 | 1,182,522 |
Total non-current liabilities | 368,772,922 | 385,953,736 |
Stockholders' equity | ||
Common stock ($0.01 par value, 225,000,000 shares authorized, 35,206,656 issued and 33,186,603 outstanding as at December 31, 2020 and 35,019,232 issued and 33,097,831 outstanding as at December 31, 2019) | 352,067 | 350,192 |
Additional paid in capital | 418,180,983 | 416,841,494 |
Accumulated other comprehensive loss | (729,135) | |
Treasury stock (2,020,053 shares as at December 31, 2020 and 1,921,401 shares as at December 31, 2019) | (15,635,765) | (15,348,909) |
Accumulated deficit | (81,833,204) | (75,787,009) |
Total stockholders' equity | 320,334,946 | 326,055,768 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 752,007,855 | $ 772,438,430 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Consolidated Balance Sheets | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 0.5 | $ 0.9 |
Vessels and equipment, accumulated depreciation | 170.2 | 146.2 |
Deferred drydock expenditure, accumulated amortization | 13.3 | 10.3 |
Other non-current assets, accumulated depreciation | $ 1.7 | $ 1.4 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 225,000,000 | 225,000,000 |
Common stock, shares issued (in shares) | 35,206,656 | 35,019,232 |
Common stock, shares outstanding (in shares) | 33,186,603 | 33,097,831 |
Treasury stock, shares issued (in shares) | 2,020,053 | 1,921,401 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements of Operations | |||
Revenue, net | $ 220,057,606 | $ 230,042,240 | $ 210,179,181 |
Voyage expenses | (81,253,212) | (96,056,391) | (98,142,454) |
Vessel operating expenses | (62,546,733) | (62,546,606) | (67,017,632) |
Charter hire costs | (1,367,528) | ||
Depreciation | (32,187,324) | (32,322,695) | (35,137,880) |
Amortization of deferred drydock expenditures | (6,198,245) | (4,803,069) | (3,637,276) |
General and administrative expenses | |||
Corporate | (15,122,906) | (14,951,996) | (12,626,373) |
Commercial and chartering | (2,780,970) | (3,194,218) | (3,233,888) |
Loss on vessel held for sale | (6,447,309) | (6,360,813) | |
Loss on sale of vessels | (13,162,192) | ||
Unrealized losses on derivatives | (113,591) | ||
Interest expense and finance costs | (18,168,155) | (26,759,754) | (27,405,608) |
Interest income | 281,618 | 952,190 | 606,665 |
Loss before taxes | (5,846,749) | (22,802,491) | (42,776,078) |
Income tax | (199,446) | (58,766) | (162,923) |
Loss | $ (6,046,195) | $ (22,861,257) | $ (42,939,001) |
Loss per share, basic and diluted | $ (0.18) | $ (0.69) | $ (1.31) |
Weighted average number of shares outstanding, basic and diluted | 33,241,936 | 33,097,831 | 32,837,866 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements of Comprehensive Income / (Loss) | |||
Net Loss | $ (6,046,195) | $ (22,861,257) | $ (42,939,001) |
Other comprehensive loss, net of tax | |||
Net change in unrealized losses on cash flow hedges | (729,135) | ||
Other comprehensive loss, net of tax | (729,135) | ||
Comprehensive loss | $ (6,775,330) | $ (22,861,257) | $ (42,939,001) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Treasury stock | Accumulated deficit | Total |
Balance at Dec. 31, 2017 | $ 340,613 | $ 405,549,985 | $ (15,348,909) | $ (9,567,929) | $ 380,973,760 | |
Balance (in shares) at Dec. 31, 2017 | 32,139,956 | |||||
Net proceeds from equity offerings | $ 9,579 | 7,321,871 | 7,331,450 | |||
Net proceeds from equity offerings(shares) | 957,875 | |||||
Share-based compensation | 1,636,547 | 1,636,547 | ||||
Loss for the year | (42,939,001) | (42,939,001) | ||||
Balance at Dec. 31, 2018 | $ 350,192 | 414,508,403 | (15,348,909) | (52,925,752) | 346,583,934 | |
Balance (in shares) at Dec. 31, 2018 | 33,097,831 | |||||
Cumulative effect of accounting change | (418,822) | (418,822) | ||||
Share-based compensation | 2,333,091 | 2,333,091 | ||||
Loss for the year | (22,861,257) | (22,861,257) | ||||
Balance at Dec. 31, 2019 | $ 350,192 | 416,841,494 | (15,348,909) | (75,787,009) | $ 326,055,768 | |
Balance (in shares) at Dec. 31, 2019 | 33,097,831 | 33,097,831 | ||||
Net proceeds from equity offerings | $ 1,875 | (1,875) | ||||
Net proceeds from equity offerings(shares) | 187,424 | |||||
Share-based compensation | 3,000,672 | $ 3,000,672 | ||||
Payment of dividend | (1,659,308) | (1,659,308) | ||||
Repurchase of common stock | (286,856) | (286,856) | ||||
Repurchase of common stock (in shares) | (98,652) | |||||
Changes in unrealized loss on cash flow hedges | $ (729,135) | (729,135) | ||||
Loss for the year | (6,046,195) | (6,046,195) | ||||
Balance at Dec. 31, 2020 | $ 352,067 | $ 418,180,983 | $ (729,135) | $ (15,635,765) | $ (81,833,204) | $ 320,334,946 |
Balance (in shares) at Dec. 31, 2020 | 33,186,603 | 33,186,603 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Loss | $ (6,046,195) | $ (22,861,257) | $ (42,939,001) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 32,187,324 | 32,322,695 | 35,137,880 |
Amortization of deferred drydock expenditures | 6,198,245 | 4,803,069 | 3,637,276 |
Share-based compensation | 3,000,672 | 2,333,091 | 1,636,547 |
Loss on vessel held for sale | 6,447,309 | 6,360,813 | |
Loss on sale of vessels | 13,162,192 | ||
Amortization of deferred finance fees | 1,765,271 | 2,560,180 | 4,668,077 |
Unrealized losses on derivatives | 113,591 | ||
Foreign exchange | 108,978 | (73,207) | (200,504) |
Deferred drydock expenditures | (7,003,305) | (5,387,875) | (6,599,085) |
Changes in operating assets and liabilities: | |||
Receivables | 12,274,862 | (2,623,226) | (614,151) |
Working capital advances | 3,100,000 | ||
Prepaid expenses and other assets | (1,743,880) | 137,453 | (664,608) |
Advances and deposits | 1,597,419 | (1,981,261) | 882,968 |
Inventories | (115,327) | 2,653,304 | (3,179,793) |
Accounts payable | 2,543,080 | (3,672,559) | 3,013,580 |
Accrued expenses and other liabilities | (5,098,531) | (48,663) | 4,991,495 |
Accrued interest on debt and finance leases | (135,064) | (852,676) | 194,883 |
Net cash provided by operating activities | 46,094,449 | 20,471,260 | 9,426,377 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of vessels | 26,557,707 | ||
Payments for acquisition of vessels and vessel equipment | (18,720,337) | (2,599,827) | (16,824,102) |
Advances for Ballast water treatment systems | (2,184,466) | 114,235 | (528,774) |
Payments for other non-current assets | (88,630) | (177,950) | (204,003) |
Net cash (used in) / provided by investing activities | (20,993,433) | 23,894,165 | (17,556,879) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from long-term debt | 20,375,243 | 201,462,500 | 3,902,122 |
Repayments of long-term debt | (18,017,863) | (222,198,713) | (184,306,269) |
Proceeds from finance leases | 209,725,500 | ||
Repayments of finance leases | (18,650,009) | (26,510,556) | (7,336,520) |
Payments for deferred finance fees | (220,000) | (2,298,587) | (3,740,150) |
Net proceeds from equity offerings | 7,331,450 | ||
Repurchase of common stock | (286,856) | ||
Payment of dividend | (1,659,308) | ||
Net cash (used in) / provided by financing activities | (18,458,793) | (49,545,356) | 25,576,133 |
Net increase / (decrease) in cash and cash equivalents | 6,642,223 | (5,179,931) | 17,445,631 |
Cash and cash equivalents at the beginning of the year | 51,723,107 | 56,903,038 | 39,457,407 |
Cash and cash equivalents at the end of the period | 58,365,330 | 51,723,107 | 56,903,038 |
Cash paid during the year for: | |||
Cash paid during the period for interest in respect of debt | 6,526,308 | 11,544,904 | 17,482,989 |
Cash paid during the period for interest in respect of finance leases | 9,902,396 | 13,529,033 | 5,100,987 |
Cash paid during the period for operating lease liabilities | 501,118 | 501,848 | 522,009 |
Cash paid during the period for income taxes | $ 138,841 | $ 54,730 | $ 139,849 |
Overview
Overview | 12 Months Ended |
Dec. 31, 2020 | |
General information and significant accounting policies | |
Overview | 1. Overview 1.1. Background Ardmore Shipping Corporation (NYSE: ASC) (“ASC”), together with its subsidiaries (collectively the “Company”), provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of mid-size product and chemical tankers and the Company operates its business in one operating segment, the transportation of refined petroleum products and chemicals. As at December 31, 2020, the Company had 27 vessels in operation. The average age of the Company’s operating fleet as at December 31, 2020 was 7.6 years. 1.2. Management and organizational structure ASC was incorporated in the Republic of the Marshall Islands on May 14, 2013. ASC commenced business operations through its predecessor company, Ardmore Shipping LLC, on April 15, 2010. As at December 31, 2020, ASC had 76 wholly owned subsidiaries, the majority of which represent single ship-owning companies for ASC’s fleet, and one 50%-owned joint venture, Anglo Ardmore Ship Management Limited (“AASML”), which provides technical management services to the majority of the ASC fleet. Ardmore Shipping (Bermuda) Limited, a wholly owned subsidiary incorporated in Bermuda, carries out the Company’s management services and associated functions. Ardmore Shipping Services (Ireland) Limited, a wholly owned subsidiary incorporated in Ireland, provides the Company’s corporate, accounting, fleet administration and operations services. Each of Ardmore Shipping (Asia) Pte. Limited and Ardmore Shipping (Americas) LLC, wholly owned subsidiaries incorporated in Singapore and Delaware, respectively, performs commercial management and chartering services for the Company. 1.3. Vessels As at December 31, 2020, the Company owned and operated a modern fleet of 26 product/chemical vessels, 25 with Marshall Island flags and one with a Singapore flag, and with a combined carrying capacity of 1,161,293 deadweight tonnes (“dwt”) and an average age of approximately 7.6 years. Vessel Name Type Dwt IMO (1) Built Country Specification Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 Korea Eco-design Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 Korea Eco-design Ardmore Seavantage Product/Chemical 49,997 2/3 Jan-14 Korea Eco-design Ardmore Seavanguard Product/Chemical 49,998 2/3 Feb-14 Korea Eco-design Ardmore Sealion Product/Chemical 49,999 2/3 May-15 Korea Eco-design Ardmore Seafox Product/Chemical 49,999 2/3 Jun-15 Korea Eco-design Ardmore Seawolf Product/Chemical 49,999 2/3 Aug-15 Korea Eco-design Ardmore Seahawk Product/Chemical 49,999 2/3 Nov-15 Korea Eco-design Ardmore Endeavour Product/Chemical 49,997 2/3 Jul-13 Korea Eco-design Ardmore Enterprise Product/Chemical 49,453 2/3 Sep-13 Korea Eco-design Ardmore Endurance Product/Chemical 49,466 2/3 Dec-13 Korea Eco-design Ardmore Encounter Product/Chemical 49,478 2/3 Jan-14 Korea Eco-design Ardmore Explorer Product/Chemical 49,494 2/3 Jan-14 Korea Eco-design Ardmore Exporter Product/Chemical 49,466 2/3 Feb-14 Korea Eco-design Ardmore Engineer Product/Chemical 49,420 2/3 Mar-14 Korea Eco-design Ardmore Seamariner Product/Chemical 45,726 3 Oct-06 Japan Eco-mod Ardmore Sealancer Product 47,451 — Jun-08 Japan Eco-mod Ardmore Sealeader Product 47,463 — Aug-08 Japan Eco-mod Ardmore Sealifter Product 47,472 — Jun-08 Japan Eco-mod Ardmore Seafarer Product 49,999 — Jun-10 Japan Eco-mod Ardmore Dauntless Product/Chemical 37,764 2 Feb-15 Japan Eco-design Ardmore Defender Product/Chemical 37,791 2 Feb-15 Japan Eco-design Ardmore Cherokee Product/Chemical 25,215 2 Jan-15 Japan Eco-design Ardmore Cheyenne Product/Chemical 25,217 2 Mar-15 Japan Eco-design Ardmore Chinook Product/Chemical 25,217 2 Jul-15 Japan Eco-design Ardmore Chippewa Product/Chemical 25,217 2 Nov-15 Japan Eco-design Total 26 1,161,293 (1) International Maritime Organization (“IMO”) cargo classification |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies 2.1. Basis of preparation The accompanying consolidated financial statements, which include the accounts of ASC and its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All subsidiaries are 100% directly or indirectly owned by ASC. AASML, which is a 50% owned joint venture, is accounted for using the equity method. All intercompany balances and transactions have been eliminated on consolidation. 2.2. Uses of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an on-going basis, management evaluates the estimates and judgments, including those related to uncompleted voyages, future drydock dates, the selection of useful lives for vessels, vessel valuations, residual value of vessels, expected future cash flows from vessels to support vessel impairment tests, provisions necessary for receivables from charterers, the selection of inputs used in the valuation model for share-based payment awards, provisions for legal disputes and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable. Actual results could differ from those estimates. 2.3. Reporting currency The consolidated financial statements are stated in U.S. Dollars. The functional currency of the Company is U.S. Dollars because the Company operates in international shipping markets in which most transactions are denominated in the U.S. Dollar. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. Resulting gains and losses are included in the accompanying consolidated statements of operations. 2.4. Recent accounting pronouncements In June 2016, the Financial Accounting Standards Board issued ASU 2016-13: Financial Instruments - Credit Losses (Topic 326) which requires recognition of management’s estimates of current expected credit losses, rather than the current incurred losses model. The new model is generally applicable to all financial instruments that are not accounted for at fair value through net income. The standard is effective for annual and interim periods beginning after December 15, 2019. The implementation of this standard on January 1, 2020 did not represent a significant impact on the consolidated financial statements and related disclosures. On March 12, 2020, the FASB issued ASU 2020-04 - Reference Rate Reform (“ASC 848”): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The purpose of this guidance is to provide relief for impacted areas as it relates to impending reference rate reform. ASC 848 contains optional expedients and exceptions for applying US GAAP to contracts, hedging relationships, and other areas or transactions that are impacted by reference rate reform. ASU 2020-04 is effective upon issuance for all entities and elections of certain optional expedients are required to apply the provisions of the guidance. The Company continues to assess all potential impacts of the standard and will disclose the nature and reason for any elections that the Company makes. During the year ended December 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. 2.5. Revenue Revenue is generated from spot charter arrangements, time charter arrangements and pool arrangements. Spot charter arrangements The Company’s spot charter arrangements are for single voyages for the service of the transportation of cargo that are generally short in duration (less than two months) and the Company is responsible for all costs incurred during the voyage, which include bunkers and port/canal fees, as well as general vessel operating costs (e.g. crew, repairs and maintenance and insurance costs; and fees paid to technical managers of its vessels). Accordingly, under spot charter arrangements, key operating decisions and the economic benefits associated with a vessel’s use during the charter period reside with the Company. As at its adoption on January 1, 2018, the Company applies revenue recognition guidance in ASC 606, Revenue from Contracts with Customers (“ASC 606”) to account for its spot charter arrangements. The consideration that the Company expects to be entitled to receive in exchange for its transportation services is recognized as revenue ratably over the duration of a voyage on a load-to-discharge basis (i.e. from when cargo is loaded at the port to when it is discharged after the completion of the voyage). The consideration that the Company expects to be entitled to receive includes estimates of revenue associated with the loading or discharging time that exceed the originally estimated duration of the voyage, which is referred to as “demurrage revenue”, when it is determined there will be incremental time required to complete the contracted voyage. Demurrage revenue is not considered a separate deliverable in accordance with ASC 606 as it is part of the single performance obligation in a spot charter arrangement, which is to provide cargo transportation services to the completion of a contracted voyage. Time charter arrangements The Company’s time charter arrangements are for a specified period of time and key decisions concerning the use of the vessel during the duration of the time charter period reside with the charterer. In time charter arrangements, the Company is responsible for the crewing, maintenance and insurance of the vessel, and the charterer is generally responsible for voyage specific costs, which typically include bunkers and port/canal costs. As the charterer holds sufficient latitude in its rights to determine how and when the vessel is used on voyages and the charterer is also responsible for costs incurred during the voyage, the charterer derives the economic benefits from the use of the vessel, as control over the use of the vessel is transferred to the charterer during the specified time charter period. Accordingly, time charters are considered operating leases and the Company applies guidance for lessors in ASC 842. Revenue for time charters is recognized on a straight-line basis ratably over the term of the charter. Pooling arrangements The Company participates in commercial pooling arrangements to charter certain of its vessels from time to time. In these arrangements, the participating members seek to benefit from the more efficient employment of their vessels as the manager of the vessels in the pool leverages the size of the fleet commercially and operationally. The manager is responsible for the commercial management on behalf of the members of the pool, including responsibility for voyage expenses such as fuel and port charges. The pool members are responsible for maintaining the vessel operating expenses of their participating vessels, including crewing, repairs and maintenance and insurance of their participating vessels. The earnings from all vessels are pooled and shared by the members of the arrangement based on the earnings allocation terms of the arrangement, which consider the number of days a vessel operates in the pool with weighted adjustments made to reflect the vessels’ differing capacities and performance capabilities. Therefore, the earnings allocation represents the pool members’ consideration for their different contribution to the collaborative arrangement. The Company recognizes its earnings allocation as revenue in accordance with the guidance for collaborative arrangements. 2.6. Voyage and vessel operating expenses Voyage expenses Voyage expenses represent costs the Company is responsible to incur in charter arrangements during a voyage that are directly related to a voyage. Voyage expenses include bunkers and port/canal costs, which are expensed as incurred. Voyage expenses also include contract fulfillment costs that are incurred by the Company prior to a voyage. These costs are from the later of when a vessel departed from its prior charter discharge port and when a vessel entered a new charter to the arrival at the loading port for the new charter are deferred and amortized ratably over the new charter for charters accounted for in accordance with ASC 606. Such costs are typically comprised of bunkers. Vessel operating expenses Vessel operating expenses represent costs the Company incurs to operate its vessels that are not directly related to a voyage and include such costs the Company incurs for its vessels in pooling arrangements. Vessel operating expenses include crew, repairs and maintenance, insurance, stores, lube oils, communication expenses, and technical management fees. Vessel operating expenses are expensed as incurred. 2.7. Cash and cash equivalents The Company classifies investments with an original maturity date of three months or less as cash and cash equivalents. The Company is required to maintain a minimum cash balance in accordance with its long-term debt facility agreements (see Note 5) and finance lease facility agreements (see Note 6). 2.8. Receivables Receivables include amounts due from charterers for hire and other recoverable expenses due to the Company. As at the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate allowance for bad debt. 2.9. Prepaid expenses and other assets Prepaid expenses and other assets consist of payments made in advance for insurance or other expenses, and insurance claims outstanding and certain assets held by vessel managers. Insurance claims are recorded, net of any deductible amounts, for insured damages which are recognized when recovery is virtually certain under the related insurance policies and where the Company can make an estimate of the amount to be reimbursed following the insurance claim. As at the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate provision for doubtful accounts. 2.10. Advances and deposits Advances and deposits primarily include amounts advanced to third-party technical managers and AASML for expenses incurred by them in operating the vessels, together with other necessary deposits paid during the course of business. 2.11. Inventories Inventories consist of bunkers, lubricating oils and other consumables on board the Company’s vessels. Inventories are valued at the lower of cost or net realizable value on a first-in first-out basis. Cost is based on the normal levels of cost and comprises the cost of purchase, being the suppliers’ invoice price with the addition of charges such as freight or duty where appropriate. Spares are expensed as incurred. 2.12. Vessel held for sale Assets are classified as held for sale when management, having the authority to approve the action, commits to a plan to sell the asset, the sale is probable within one year, and the asset is available for immediate sale in its present condition. Consideration is given to whether an active program to locate a buyer has been initiated, whether the asset is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When assets are classified as held for sale, they are measured at the lower of their carrying amount or fair value less cost to sell and they are tested for impairment. A loss is recognized when the carrying value of the asset exceeds the estimated fair value, less transaction costs. Assets classified as held for sale are no longer depreciated. 2.13. Vessels and vessel equipment Vessels and vessel equipment are recorded at their cost less accumulated depreciation. Vessel cost comprises acquisition costs directly attributable to the vessel and the expenditures made to prepare the vessel for its initial voyage. Vessels are depreciated on a straight-line basis over their estimated useful economic life from the date of initial delivery from the shipyard. The useful life of the Company’s vessels is estimated at 25 years from the date of initial delivery from the shipyard. Depreciation is based on cost less estimated residual scrap value. Residual scrap value is estimated as the lightweight tonnage of each vessel multiplied by the estimated scrap value per ton. The scrap value of the vessels is estimated at $300 (2019: $300) per lightweight ton. Vessel equipment comprises the costs of significant replacements, renewals and upgrades to the Company’s vessels. Vessel equipment is depreciated over the shorter of the vessel’s remaining useful life or the life of the renewal or upgrade. The amount capitalized is based on management’s judgment as to expenditures that extend a vessel’s useful life or increase the operational efficiency of a vessel. Costs that are not capitalized are recorded as a component of direct vessel operating expenses during the period incurred. Expenses for routine maintenance and repairs are expensed as incurred. 2.14. Deferred drydock expenditures The Company follows the deferral method of accounting for drydock expenditures whereby actual expenditures incurred are deferred and are amortized on a straight-line basis through to the date of the next scheduled drydocking, generally 30 to 60 months. Expenditures deferred as part of the drydock include direct costs that are incurred as part of the drydocking to meet regulatory requirements. Direct expenditures that are deferred include the shipyard costs, parts, inspection fees, steel, blasting and painting. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. Unamortized drydock expenditures of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels’ sale. Unamortized drydock expenditures are written off as drydock expense if the vessels are drydocked before the expiration of the applicable amortization period. 2.15. Advances for ballast water treatment systems The Company is in the process of installing ballast water treatment systems on each of its vessels that do not currently have the system installed. This is a requirement of the International Maritime Organization. The Company capitalizes and depreciates the costs of ballast water treatment systems, including installation costs, on each vessel from the date of completion of the system over the remaining useful life of the vessel. 2.16. Vessel impairment Management regularly reviews the carrying amounts of the Company’s vessels that are “held and used” for recoverability. Vessels are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. When such indicators are present, a vessel to be held and used is tested for recoverability by comparing the estimate of undiscounted future cash flows expected to be generated by the use of the vessel over its remaining useful life and its eventual disposition to its carrying amount together with the carrying value of deferred drydock expenditures and special survey costs related to the vessel. For purposes of testing for recoverability, cash flows are determined by applying various assumptions based on historical trends as well as future expectations. In estimating future revenue, the Company considers charter rates for each vessel class over the estimated remaining lives of the vessels using both historical average rates for the Company over the last five years, where available, and historical average one-year time charter rates for the industry over the last 10 years. Recognizing that rates tend to be cyclical and considering market volatility based on factors beyond the Company’s control, management believes it is reasonable to use estimates based on a combination of more recent internally generated rates and the 10-year average historical average industry rates. Undiscounted future cash flows are determined by applying various assumptions regarding future revenue net of voyage expenses, vessel operating expenses, scheduled drydockings, expected off-hire and scrap values, and taking into account historical market and Company specific revenue data as discussed above, and also considering other external market sources, including analysts’ reports and freight forward agreement curves. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company will evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset as provided by third parties. In this respect, management regularly reviews the carrying amount of the vessels in connection with the estimated recoverable amount for each of the Company's vessels. The Company did not recognize a vessel impairment charge for the years ended December 31, 2020, 2019 and 2018. 2 .17. Other non-current assets Other non-current assets relate to office equipment, fixtures and fittings and leasehold improvements. Office equipment and fixtures and fittings are recorded at their cost less accumulated depreciation and are depreciated based on an estimated useful life of five years. Leasehold improvements relate to fit-out costs for work completed on the Company’s offices in Ireland and Singapore. Leasehold improvements are recorded at their cost less accumulated depreciation and are depreciated over the life of the respective leases. 2.18. Amount receivable in respect of finance leases As part of finance lease arrangements, the Company provided a lessor with $2.9 million in the aggregate which shall be repaid at the end of the lease period, or upon the exercise of any of the purchase options. The associated finance lease liability is presented gross of the $2.9 million. 2.19. Operating leases Operating leases relate to long-term commitments for the Company’s offices. The Company recognizes on its consolidated balance sheets the right-of-use assets and lease liabilities for lease contracts greater than 12 months. The discount rate used for calculating the cost of the operating leases is the incremental cost of borrowing since the rate implicit in the lease cannot be determined. 2.20. Finance leases Finance leases relate to financing arrangements for vessels in operation. Interest costs are expensed to interest expense and finance costs in the consolidated statements of operations using the effective interest method over the life of the lease. 2.21. Accounts payable Accounts payable include all financial obligations to vendors for goods or services that have been received or will be received in the future. 2.22. Accrued expenses and other liabilities Accrued expenses and other liabilities include all accrued liabilities in relation to the operating and running of the vessels, along with amounts accrued for general and administrative expenses. 2.23. Derivatives As required by ASC 815, Derivatives and Hedging, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply, or the Company elects not to apply hedge accounting. The Company elected to classify settlement payments as operating activities within the statement of cash flows. 2.24. Equity method investments The Company’s investment in AASML is accounted for using the equity method of accounting. Under the equity method of accounting, the Company initially recorded the investment in AASML at cost and adjusts the carrying amount of the investment to recognize their respective share of earnings or losses of the investee. Dividends received from an investee reduce the carrying amount of the equity investment. The Company evaluates its equity method investment for impairment when events or circumstances indicate that the carrying value of such investment may have experienced an other than temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Company’s consolidated statements of operations. The investment in AASML and the equity in income of AASML is insignificant. 2.25. Contingencies Claims, suits and contingencies arise in the ordinary course of the Company’s business. The Company provides for these contingencies when (i) it is probable that a liability has been incurred at the date of the financial statements and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for contingencies that do not meet both these conditions if there is a reasonable possibility that a liability may have been incurred as at the balance sheet date. 2.26. Distributions to shareholders Subject to the Board of Directors’ approval, distributions to common stockholders are applied first to accumulated surplus. When accumulated surplus is not sufficient, distributions are applied to the additional paid in capital account. 2.27. Equity issuance costs Incremental costs incurred that are directly attributable to a proposed or actual offering of equity securities are deferred and deducted from the related proceeds of the offering, and the net amount is recorded as contributed shareholders’ equity in the period when such shares are issued. Other costs incurred that are not directly attributable, but are related, to a proposed or actual offering are expensed as incurred. 2.28. Debt and finance lease issuance costs Financing charges which include fees, commissions and legal expenses associated with securing loan facilities and finance lease agreements are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability or finance lease obligation. These costs are amortized to interest expense and finance costs in the consolidated statements of operations using the effective interest rate method over the life of the related debt or finance lease. 2.29. Share-based compensation The Company may grant share-based payment awards, such as restricted stock units (“RSUs”), stock appreciation rights (“SARs”) and dividend equivalent rights (“DERs”), as incentive-based compensation to certain employees. The Company measures the cost of such awards, which are equity-settled transactions, using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period, which generally equals the vesting period. If the award contains a market condition, such conditions are included in the determination of the fair value of the stock unit. Once the fair value has been determined, the associated expense is recognized in the consolidated statements of operations over the requisite service period. The SAR awards granted prior to the 2018 award contain a market condition whereby, in no event will the appreciation per share for any portion of the SAR award be deemed to exceed four times (i.e. 400%) the per share exercise price of the SAR. The market condition does not apply after July 31, 2016. The SAR awards with a market condition were valued by applying a model based on the Monte Carlo simulation. The model inputs were the grant price, dividend yield based on the initial intended dividend set out by the Company, a risk-free rate of return equal to the zero-coupon U.S. Treasury bill commensurate with the contractual terms of the units and expected volatility based on the average of the most recent historical volatilities in the Company’s peer group. The SARs are settled through the delivery of Ardmore shares, not cash. Hence, in accordance with the guidance in ASC 718, the Company have classified the plan as an equity settled share-based payment plan. The cost of each tranche of SARs is being recognized by the Company on a straight-line basis. The recognition of share-based compensation costs related to the tranches that vested before July 31, 2016 would have been accelerated if the market condition had been met and the requisite service period had been completed. The Company’s policy for issuing shares upon the exercise, if any, of the SARs is to register and issue new common shares to the beneficiary. Under an RSU award, the grantee is entitled to receive a share of ASC’s common stock for each RSU at the end of the vesting period. Payment under the RSU will be made in the form of shares of ASC’s common stock. The cost of RSUs will be recognized by the Company on a straight-line basis over the vesting period. The Company’s policy for issuing shares upon the vesting of the RSUs is to register and issue new common shares to the grantee. Under a DER award, in the event that dividends are declared and paid on a share with a record date on or after the applicable grant date, the grantee is entitled to receive a share of ASC’s common stock equal to the amount of the dividend declared multiplied by the number of shares per the award, divided by the Fair Market Value of a share on the date the dividends are paid. The cost of DERs will be recognized by the Company on a straight-line basis over the vesting period. The Company’s policy is to register and issue new common shares to the grantee at the time that dividends are paid. The DER awards were valued by applying a model based on the Monte Carlo simulation. The model inputs were the grant price, dividend yield based on the initial intended dividend set out by the Company, a risk-free rate of return equal to the zero-coupon U.S. Treasury bill commensurate with the contractual terms of the units and expected volatility based on the average of the most recent historical volatilities in the Company’s peer group. 2.30. Treasury stock When shares are acquired for a reason other than formal or constructive retirement, the shares are presented separately as a deduction from equity. If the shares are retired or subsequently sold, any gain would be allocated as an increase in additional paid in capital and cumulative losses as an increase to accumulated deficit. 2.31. Financial instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable reported in the consolidated balance sheets are reasonable estimates of their fair values due to their short-term nature. The fair values of long-term debt approximate the recorded values due to the variable interest rates payable. 2.32. Income taxes Republic of the Marshall Islands Ardmore Shipping Corporation, Ardmore Shipping LLC, Ardmore Maritime Services LLC, and all vessel owning subsidiaries are incorporated in the Republic of the Marshall Islands. Ardmore Shipping Corporation believes that neither it, nor its subsidiaries, are subject to taxation under the laws of the Republic of the Marshall Islands and that distributions by its subsidiaries to Ardmore Shipping Corporation will not be subject to any taxes under the laws of the Republic of the Marshall Islands. Bermuda Ardmore Shipping (Bermuda) Limited is incorporated in Bermuda. Ardmore Shipping Corporation, Ardmore Shipping LLC and Ardmore Shipping (Bermuda) Limited are managed and controlled in Bermuda. Ardmore Shipping Corporation is subject to taxation under the laws of Bermuda and distributions by its subsidiaries to Ardmore Shipping Corporation will be subject to any taxes under the laws of Bermuda. Ireland Ardmore Shipholding Limited and Ardmore Shipping Services (Ireland) Limited are incorporated in Ireland. Ardmore Shipholding Limited is dormant and as such is not anticipated to generate trading income subject to corporation tax in Ireland. Ardmore Shipping Services (Ireland) Limited’s trading profits are taxable at the standard corporation tax rate which is currently 12.5% based on generally accepted accounting principles in Ireland. Any non-trading / passive income is taxed at the higher corporation tax rate which is currently 25%. United States of America Ardmore Shipping (Americas) LLC (“ASUSA”) and Ardmore Trading (USA) LLC (“ATUSA”) are incorporated in Delaware and treated as corporations for U.S. tax purposes. ASUSA and ATUSA will be subject to U.S. tax on their worldwide net income. Singapore Ardmore Shipping (Asia) Pte. Limited and Ardmore Tanker Trading (Asia) Pte. Limited are incorporated in Singapore. Ardmore Shipping (Asia) Pte. Limited qualified as an “Approved International Shipping Enterprise” by the Singapore authorities with effect from August 1, 2015. This entitles the company to tax exemption on profits derived from ship operations for any vessels which are owned or chartered in by Ardmore Shipping (Asia) Pte. Limited. Ardmore Tanker Trading (Asia) Pte. Limited, which commenced business July 1, 2019, will be subject to Singapore tax on its worldwide profits. Deferred taxation Deferred income tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statements and tax basis of existing assets and liabilities using enacted rates applicable to the periods in which the differences are expected to affect taxable income. Deferred income tax balances included on the consolidated balance sheets reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. The recoverability of these future tax deductions is evaluated by assessing the adequacy of future taxable income, including the reversal of temporary differences and forecasted operating earnings. If it is deemed more likely than not that the deferred tax assets will not be realized, the Company provides for a valuation allowance. Income taxes have been provided for all items included in the consolidated statements of operations regardless of when such items were reported for tax purposes or when the taxes were actually paid or refunded. Deferred tax for the year ended December 31, 2020 amounted to $Nil (2019: $Nil , 2018: $Nil). Uncertainties related to income taxes Companies are to determine whether it is more-likely-than-not that the tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not threshold it is measured to determine the amount of benefit to recognize in the fina |
Business and segmental reportin
Business and segmental reporting | 12 Months Ended |
Dec. 31, 2020 | |
Business and segmental reporting | |
Business and segmental reporting | 3. Business and segmental reporting The Company is primarily engaged in the ocean transportation of petroleum and chemical products in international trade through the ownership and operation of a fleet of tankers. Tankers are not bound to specific ports or schedules and therefore can respond to market opportunities by moving between trades and geographical areas. The Company charters its vessels to commercial shippers through a combination of spot, time-charter, and pool arrangements. The chief operating decision maker (“CODM”) does not use discrete financial information to evaluate the operating results for each such type of charter. Although revenue can be identified for these types of vessel employment, management cannot and does not identify expenses, profitability or other financial information for these charters or other forms of employment. As a result, the CODM reviews operating results solely by revenue per day and operating results of the fleet. Furthermore, when the Company charters a vessel to a charterer, the charterer is free to trade the vessel worldwide (subject to certain sanctions-related restrictions) and, as a result, the disclosure of geographic information is impracticable. In this respect, the Company has determined that it operates under one reportable segment, relating to its operations of its vessels. The following table presents consolidated revenues for charterers that accounted for more than 10% of the Company’s consolidated revenues during the years presented: For the years ended December 31 2020 2019 2018 Charterer A 26,759,247 <10% 27,025,590 The following table presents the Company’s revenue contributions by nature of vessel employment. For the years ended December 31 2020 2019 2018 Voyage charters (1) 206,350,782 218,969,349 193,679,937 Time charters (2) 13,696,635 10,974,608 2,453,062 Pooling arrangements (3) 10,189 98,283 14,046,182 220,057,606 230,042,240 210,179,181 (1) Represents revenue recognized by the Company associated with charters that were accounted for in accordance with ASC 606. (2) Represents revenue recognized by the Company associated with charters that were accounted for in accordance with ASC 842. (3) Represents revenue recognized by the Company associated with pooling arrangements that were accounted for in accordance with the guidance for collaborative arrangements. |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued expenses and other liabilities | |
Accrued expenses and other liabilities | 4. Accrued expenses and other liabilities Accrued expenses and other liabilities consist of the following as at December 31, 2020 and 2019: As at December 31 2020 2019 Accrued vessel operating expenses and voyage expenses 8,320,291 12,096,220 Other accrued expenses 2,913,476 4,181,864 Total accrued expenses 11,233,767 16,278,084 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt | |
Debt | 5. Debt As at December 31, 2020, the Company had six loan facilities, which it has used primarily to finance vessel acquisitions or vessels under construction and also for working capital. The Company’s applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for the Company’s obligations under the loan facilities, which totaled 14 vessels as at December 31, 2020. ASC and its subsidiary Ardmore Shipping LLC have provided guarantees in respect of the loan facilities and ASC has granted a guarantee over its trade receivables in respect of the ABN AMRO Revolving Facility. These guarantees can be called upon following a payment default. The carrying amounts in the table below approximate the fair value for the variable rate debt which is considered to be a Level 2 item as the Company considers the estimate of rates it could obtain for similar debt. The fair value of an asset or liability is based on assumptions that market participants would use in pricing the asset or liability. The hierarchies of inputs used when determining fair value are described below: Level 1: Valuations based on quotes prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. Level 2: Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The outstanding principal balances on each loan facility as at December 31, 2020 and 2019 were as follows: As at December 31 2020 2019 NIBC Bank Facility 4,625,000 6,045,000 Nordea/SEB Joint Bank Facility 88,503,292 100,000,000 Nordea/SEB Revolving Facility 39,237,241 40,000,000 ABN/CACIB Joint Bank Facility 57,124,104 61,462,500 ABN AMRO Revolving Facility 14,394,250 4,019,007 IYO Bank Facility 10,000,000 — Total debt 213,883,887 211,526,507 Deferred finance fees (3,372,923) (4,243,494) Net total debt 210,510,964 207,283,013 Current portion of long-term debt 23,506,236 21,274,111 Current portion of deferred finance fees (1,049,840) (1,057,940) Total current portion of long-term debt 22,456,396 20,216,171 Non-current portion of long-term debt 188,054,568 187,066,842 Future minimum scheduled repayments under the Company’s loan facilities for each year are as follows: As at December 31 2020 2021 23,506,236 2022 33,275,486 2023 18,881,236 2024 134,620,929 2025 3,600,000 213,883,887 NIBC Bank Facility On September 12, 2014, one of ASC’s subsidiaries entered into a $13.5 million long-term loan facility with NIBC Bank N.V. to finance a secondhand vessel acquisition which delivered to the Company in 2014. The facility was drawn down in September 2014. Interest is calculated at a rate of LIBOR plus 2.90%. Principal repayments on the loans are made on a quarterly basis, with a balloon payment payable with the final instalment. On January 7, 2021, Ardmore repaid the facility in full. Nordea / SEB Joint Bank Facility and Nordea / SEB Revolving Facility On December 11, 2019, eight of ASC’s subsidiaries entered into a $100 million long-term loan facility and a $40 million revolving credit facility with Nordea Bank AB (publ) and Skandinaviska Enskilda Banken AB (publ) to refinance existing facilities. The facility was fully drawn down in December 2020 and December 2019. Interest is calculated at a rate of LIBOR plus 2.4%. Principal repayments on the term loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The revolving facility may be drawn down or repaid with five days’ notice. The term loan and revolving credit facility mature in December 2024. ABN/CACIB Joint Bank Facility On December 11, 2019, four of ASC’s subsidiaries entered into a $61.5 million long-term loan facility with ABN AMRO Bank N.V. and Credit Agricole Corporate and Investment Bank to refinance existing facilities. Interest is calculated at a rate of LIBOR plus 2.4%. Principal repayments on the term loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The loan facility matures in December 2024. ABN AMRO Revolving Facility On October 24, 2017, the Company entered into a $15 million revolving credit facility with ABN AMRO to fund working capital. On July 17, 2020, this facility was renewed for a further two years. Interest under this facility is calculated at a rate of LIBOR plus 3.9%. Interest payments are payable on a quarterly basis. The facility matures in July 2022 with options to extend for two more years. IYO Bank Facility On December 17, 2020, one of ASC’s subsidiaries entered into a $10.0 million long-term loan facility with IYO Bank to finance a secondhand vessel acquisition which delivered to the Company in 2020. The facility was drawn down in December 2020. Interest is calculated at a rate of LIBOR plus 2.25%. Principal repayments on the loans are made on a quarterly basis, with a balloon payment payable with the final instalment. The loan facility matures in December 2025. Long-term debt financial covenants The Company’s existing long-term debt facilities described above include certain covenants. The financial covenants require that the Company: · maintain minimum solvency of not less than 30%; · maintain minimum cash and cash equivalents (of which at least 60% of such minimum amount is held in cash and which includes the undrawn portion of the Nordea/SEB Revolving Facility), based on the number of vessels owned and chartered-in and 5% of outstanding debt; the required minimum cash and cash equivalents as at December 31, 2020, was $20.5 million; · ensure that the aggregate fair market value of the applicable vessels plus any additional collateral is, depending on the facility, no less than 130% of the debt outstanding for the facility; · maintain a corporate net worth of not less than $150 million; and · maintain positive working capital, excluding balloon repayments and amounts outstanding under the ABN AMRO Revolving Facility, provided that the facility has a remaining maturity of more than three months . The Company was in full compliance with all of its long -term debt financial covenants as at December 31, 2020 and 2019. |
Finance Leases
Finance Leases | 12 Months Ended |
Dec. 31, 2020 | |
Finance Leases | |
Finance Leases | 6. Finance lease As at December 31, 2020, the Company was a party, as the lessee, to six finance lease facilities. The Company's applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for the Company’s obligations under the finance lease facilities, which totaled 12 vessels as at December 31, 2020 (2019: 12 vessels). ASC has provided guarantees in respect of the finance lease facilities. These guarantees can be called upon following a payment default. The outstanding principal balances on each finance lease facility as at December 31, 2020 and 2019 were as follows: As at December 31 2020 2019 Japanese Leases No.1 and 2 26,531,100 31,398,900 Japanese Lease No.3 13,119,000 15,498,000 CMBFL Leases No.1 to 4 72,459,942 79,896,836 Ocean Yield ASA 55,729,620 61,153,740 Japanese Lease No.4 21,949,099 23,983,699 China Huarong Leases 41,992,081 46,717,764 Finance lease obligations 231,780,842 258,648,939 Amounts representing interest and deferred finance fees (34,076,458) (42,969,245) Finance lease obligations, net of interest and deferred finance fees 197,704,384 215,679,694 Current portion of finance lease obligations 19,084,775 18,650,022 Current portion of deferred finance fees (630,553) (674,700) Non-current portion of finance lease obligations 181,250,674 200,335,437 Non-current portion of deferred finance fees (2,000,512) (2,631,065) Total finance lease obligations, net of deferred finance fees 197,704,384 215,679,694 Maturity analysis of the Company’s finance lease facilities for each year are as follows: As at December 31, 2020 2021 26,523,339 2022 26,470,805 2023 38,028,900 2024 24,179,292 2025 75,863,062 2026 - 2030 40,715,444 Finance lease obligations 231,780,842 Amounts representing interest and deferred finance fees (34,076,458) Finance lease obligations, net of interest and deferred finance fees 197,704,384 Assets recorded under finance leases consist of the following: As at December 31 2020 2019 Vessels and vessel equipment, net of accumulated depreciation 282,930,184 296,708,230 Deferred drydock expenditures, net of accumulated amortization 2,751,781 4,419,417 Advances for ballast water systems 2,141,135 221,277 287,823,100 301,348,924 Japanese Leases No. 1 and 2 On May 30, 2017, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Sealeader and Ardmore Sealifter, with JPV No. 7 and JPV No. 8, respectively. The facility was drawn down in May 2017. Repayments on the leases are made on a monthly basis and include principal and interest. The finance leases are scheduled to expire in 2023 and include purchase options exercisable by the Company. As part of the lease arrangement, the Company provided the purchasers with $2.9 million in the aggregate which shall be repaid at the end of the lease period, or upon the exercise of any of the purchase options. This amount is included in the consolidated balance sheets as ‘Amount receivable in respect of finance leases’ with the associated finance lease liability presented gross of the $2.9 million. Japanese Lease No. 3 On January 30, 2018, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Sealancer with Neil Co., Ltd. The facility was drawn down in January 2018. Repayments on the lease are made on a monthly basis and include principal and interest. The finance lease is scheduled to expire in 2024 and includes purchase options exercisable by the Company. As part of the lease arrangement, the Company provided the purchaser with $1.4 million in the aggregate which shall be repaid at the end of the lease period, or upon the exercise of any of the purchase options. This amount has been offset against the finance lease liability in the consolidated balance sheets, with the associated finance lease liability presented net of the $1.4 million. CMBFL Leases No. 1 to 4 On June 26, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Endurance and Ardmore Enterprise, respectively, with CMB Financial Leasing Co., Ltd (“CMBFL”). The facility was drawn down in June 2018. Interest is calculated at a rate of LIBOR plus 3.10%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. On October 25, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Encounter and Ardmore Explorer , respectively, with CMBFL. The facility was drawn down in October 2018. Interest is calculated at a rate of LIBOR plus 3.00%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. Ocean Yield ASA On October 25, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Dauntless and Ardmore Defender , respectively with Ocean Yield ASA. The facility was drawn down in October 2018. Interest is calculated at a rate of LIBOR plus 4.50%. Principal repayments on the leases are made on a monthly basis. The finance leases are scheduled to expire in 2030 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. Japanese Lease No. 4 On November 30, 2018, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement), of the Ardmore Engineer with Rich Ocean Shipping. The facility was drawn down in December 2018. Interest is calculated at a rate of LIBOR plus 3.20%. Principal repayments on the lease are made on a monthly basis. The finance lease is scheduled to expire in 2029 and includes a mandatory purchase obligation for the Company to repurchase the vessel, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. China Huarong Leases On November 30, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement), of the Ardmore Seavanguard and Ardmore Exporter , respectively, with China Huarong Financial Leasing Co., Ltd (“China Huarong”). The facility was drawn down in December 2018. Interest is calculated at a rate of LIBOR plus 3.50%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. Finance leases financial covenants Some of the Company’s existing finance lease facilities (as described above) include financial covenants which are the same, or no more onerous than, the Company's long-term debt financial covenants described in Note 5. The Company was in full compliance with all of its finance lease related financial covenants as at December 31, 2020 and 2019. |
Operating lease
Operating lease | 12 Months Ended |
Dec. 31, 2020 | |
Operating lease | |
Operating lease | 7. Operating lease The Company’s consolidated balance sheets include a right-of-use asset and a corresponding liability for operating lease contracts. The discount rate used to measure the lease liability is the incremental cost of borrowing since the rate implicit in the lease cannot be determined. The liabilities described below are for the Company’s offices in Cork, Ireland, Singapore and Houston, Texas which are denominated in various currencies. The weighted average remaining term of the office leases as at December 31, 2020 was 4.6 years. Under ASC 842, the right-of-use asset is a nonmonetary asset and is remeasured into the Company’s reporting currency of the U.S. Dollar using the exchange rate for the applicable currency as at the adoption date of ASC 842. The operating lease liability is a monetary liability and is remeasured quarterly using the current exchange rates, with changes recognized in a manner consistent with other foreign-currency-denominated liabilities in general and administrative expenses in the consolidated statements of operations. As at December 31 2020 2019 Operating lease, right-of-use asset 1,662,510 1,745,464 Total operating lease, right-of-use asset 1,662,510 1,745,464 Current portion of operating lease obligations 463,559 289,231 Non-current portion of operating lease obligations 1,034,218 1,182,522 Total operating lease obligations 1,497,777 1,471,753 For the years ended December 31 2020 2019 2018 Foreign exchange loss/(gain) on operating leases 108,978 (73,207) (200,504) Total foreign exchange loss/(gain) on operating leases 108,978 (73,207) (200,504) As at December 31, 2020, the Company had the following maturity of operating lease obligations: As at December 31 2020 2021 473,361 2022 299,029 2023 269,859 2024 273,082 2025 277,062 2026 46,959 Total lease payments 1,639,352 Less imputed interest (141,575) Present value of lease liabilities 1,497,777 |
Interest Rate Swaps
Interest Rate Swaps | 12 Months Ended |
Dec. 31, 2020 | |
Interest Rate Swaps | |
Interest Rate Swaps | 8 . Interest Rate Swaps The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During the second quarter of 2020, the Company entered into floating-to-fixed interest rate swap agreements, associated with existing variable-rate debt and financing facilities, over a three-year term with multiple counterparties. In accordance with these transactions, the Company will pay an average fixed-rate interest amount of 0.32% and will receive floating rate interest amounts based on LIBOR. These interest rate swaps have a total notional amount of $324.1 million of which $273.3 million is designated as cash flow hedges. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Loss and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Reclassification adjustments related to the interest rate swaps amounted to approximately $80,000 for the year ended December 31, 2020. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. The Company records the fair value of the interest rate swaps as an asset or liability on its balance sheet. Interest rate swaps are considered to be a Level 2 item. The following table shows the interest rate swap liabilities as of December 31, 2020 and December 31, 2019: Derivatives designated as hedging instruments Balance Sheet location December 31, 2020 December 31, 2019 Interest rate swap Current portion of derivative liabilities $ 349,374 — Interest rate swap Non - current portion of derivative liabilities $ 379,762 — The following table shows the interest rate swap liabilities not designated as hedging instruments as of December 31, 2020 and December 31, 2019: Derivatives not designated as hedging instruments Balance Sheet location December 31, 2020 December 31, 2019 Interest rate swap Current portion of derivative liabilities $ 48,044 — Interest rate swap Non - current portion of derivative liabilities $ 54,212 — |
Loss on sale of vessels
Loss on sale of vessels | 12 Months Ended |
Dec. 31, 2020 | |
Loss on sale of vessel | |
Sale of vessels | 9 . Loss on sale of vessels In November 2018, the Company agreed to terms for the sale of the Ardmore Seatrader. Effective November 2018, the Company reclassified the vessel as held for sale and ceased to depreciate the vessel. The Company exercised its purchase option on the financing transaction in January 2019 and repaid all amounts outstanding under the finance lease. The price for the subsequent sale of the vessel by the Company was $8.3 million, resulting in a loss of $6.4 million which was recognized in 2018. The vessel was delivered to the buyer in January 2019. The loss on the vessel held for sale for the year ended December 31, 2018 is calculated as follows: Seatrader Sales proceeds 8,250,000 Net book value of vessel (14,444,217) Sales related costs (166,596) Loss on vessel held for sale (6,360,813) In February 2019, the Company agreed to terms for the sale of the Ardmore Seamaster . Effective February 1, 2019, the Company reclassified the vessel as held for sale and ceased to depreciate the vessel. The Company repaid the outstanding debt facility on the vessel in February 2019. The sales price for the vessel was $9.7 million, resulting in a loss of $6.6 million when the vessel delivered to the buyer in February 2019. In May 2019, the Company agreed to terms for the sale of the Ardmore Seafarer . Effective May 7, 2019, the Company reclassified the vessel as held for sale and ceased to depreciate the vessel. The Company repaid the outstanding debt facility on the vessel in May 2019. The sales price for the vessel was $9.1 million, resulting in a loss of $6.6 million when the vessel delivered to the buyer in May 2019. The loss on the sale of vessels for the year ended December 31, 2019 is calculated as follows: Seamaster Seafarer Total Sales proceeds (1) 9,700,000 9,100,000 18,800,000 Net book value of vessels (15,979,901) (15,537,708) (31,517,609) Sales related costs (223,178) (99,503) (322,681) Debt termination costs and related finance fees (66,684) (55,218) (121,902) Loss on sale of vessels (6,569,763) (6,592,429) (13,162,192) In December 2020, Ardmore agreed to terms for the sale of the Ardmore Seamariner. Effective December 2020, Ardmore reclassified the vessel as held for sale and ceased to depreciate the vessel. The Company repaid all amounts outstanding under the related term loan in January 2021. The sale price for the vessel was $10.0 million, resulting in a net loss of $6.4 million which was recognized in the year ended December 31, 2020. The vessel was delivered to the buyer in January 2021. The loss on the vessel held for sale for the year ended December 31, 2020 is calculated as follows: Seamariner Sales proceeds 10,000,000 Net book value of vessel (16,342,309) Sales related costs (105,000) Loss on vessel held for sale (6,447,309) |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes | |
Income taxes | 11. Income taxes The components of income tax are as follows: For the years ended December 31 2020 2019 2018 Current tax expenses (199,446) (58,766) (162,923) Income tax expense for year (199,446) (58,766) (162,923) The differences between income taxes expected at the Bermuda statutory income tax rate of zero percent and the reported income tax expense are summarized as follows: For the years ended December 31 2020 2019 2018 Bermuda statutory income tax rate 0.00 % 0.00 % 0.00 % Income subject to tax in other jurisdictions 3.41 % 0.26 % 0.38 % Effective tax rate 3.41 % 0.26 % 0.38 % |
Interest expense and finance co
Interest expense and finance costs | 12 Months Ended |
Dec. 31, 2020 | |
Interest expense and finance costs | |
Interest expense and finance costs | 10. Interest expense and finance costs For the years ended December 31 2020 2019 2018 Interest incurred – debt 6,585,889 10,780,248 17,070,112 Interest incurred – finance leases 9,737,294 13,419,326 5,667,420 Amortization of deferred finance fees 1,765,271 2,023,279 2,400,621 Write-off of deferred finance fees in relation to refinancing — 536,901 2,267,455 Swap Interest 79,701 — — 18,168,155 26,759,754 27,405,608 |
Net loss per share and dividend
Net loss per share and dividends per share | 12 Months Ended |
Dec. 31, 2020 | |
Net loss per share and dividends per share | |
Net loss per share and dividends per share | 12. Net loss per share and dividends per share Basic and diluted net loss per share is calculated by dividing the net loss available to common shareholders by the average number of common shares outstanding during the periods. Diluted earnings per share is calculated by adjusting the net earnings / (loss) available to common shareholders and the weighted average number of common shares used for calculating basic earnings / (loss) per share for the effects of all potentially dilutive shares. Such dilutive common shares are excluded when the effect would be to increase earnings per share or reduce a loss per share. For the years ended December 31 Numerator: 2020 2019 2018 Net loss $ (6,046,195) (22,861,257) (42,939,001) Denominator: Weighted average number of shares outstanding 33,241,936 33,097,831 32,837,866 Net loss per share, basic and diluted $ (0.18) (0.69) (1.31) For the year ended December 31, 2020, SARs granting the right to acquire 3,094,003 shares (2019: 2,544,983, 2018: 1,984,983) and 319,144 RSUs were outstanding (2019: 322,106, 2018: Nil). The SARs and RSUs have been excluded from the computation of diluted loss per share as they are anti-dilutive as a result of the net loss for all periods. The Company declared a cash dividend of $0.05 per share for the quarter ended December 31, 2019. The cash dividend of $1.7 million was paid on February 28, 2020 to all shareholders of record on February 21, 2020. The Company did not make any payments of dividends for any other quarter in the year ended December 31, 2019. The Company did not make any payment of dividends for the years ended December 31, 2020 or 2018. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Related party transactions | 13. Related party transactions Anglo Ardmore Ship Management Limited ("AASML") AASML is a 50% joint venture entity owned in equal share by the third-party technical manager Anglo-Eastern and Ardmore Shipping (Bermuda) Limited. AASML is accounted for under the equity method of accounting. The carrying value of the investment as at December 31, 2020 and 2019 was not significant. AASML was incorporated in June 2017 and began providing technical management services exclusively to the Ardmore fleet on January 1, 2018. The Company has entered into standard Baltic and International Maritime Council (“BIMCO”) ship management agreements with AASML for the provision of technical management services to 17 vessels of the Company’s fleet as at December 31, 2020 (2019: 16 vessels). AASML provides the vessels with a wide range of shipping services such as repairs and maintenance, provisioning and crewing. Total management fees paid to AASML for the year ended December 31, 2020 were $2.8 million (2019: $3.0 million), which are included in vessel operating expenses in the consolidated statement of operations. Amounts due from/(to) AASML in respect of management fees were $Nil as at December 31, 2020 (2019: $Nil). Advances to AASML for technical management services as at December 31, 2020 were $1.9 million (2019: $2.8 million) and are included in Advances and deposits in the consolidated balance sheets. Amounts payable to AASML for technical management services as at December 31, 2020 were $3.0 million with $2.2 million included in Accounts payable and $0.8 million included in Accrued expenses and other liabilities in the consolidated balance sheets. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based compensation. | |
Share-based compensation | 14. Share-based compensation Stock appreciation rights As at December 31, 2020, the Company had granted 3,099,782 SARs (inclusive of 5,779 forfeited SARs), which included DERs, to certain of its officers and directors under its 2013 Equity Incentive Plan. A summary of awards, simulation inputs, outputs and valuation methodology is as follows: Model Inputs Weighted Risk-free Average Fair SARs Exercise Vesting Grant Dividend rate of Expected Value Average Expected Valuation Grant Date Awarded Price Period Price Yield Return Volatility grant date Exercise Life Method 12‑Mar‑14 22,118 $ 13.66 3 yrs $ 13.66 2.93 % 2.06 % 56.31 % $ 4.17 4.6 – 5.0 yrs Monte Carlo 01‑Sept‑14 5,595 $ 13.91 3 yrs $ 13.91 2.88 % 2.20 % 53.60 % $ 4.20 4.5 – 5.0 yrs Monte Carlo 06‑Mar‑15 37,797 $ 10.25 3 yrs $ 10.25 3.90 % 1.90 % 61.38 % $ 2.98 4.2 – 5.0 yrs Monte Carlo 15‑Jan‑16 205,519 $ 9.20 3 yrs $ 9.20 6.63 % 1.79 % 58.09 % $ 2.20 4.0 – 5.0 yrs Monte Carlo 04‑Apr‑18 1,719,733 $ 7.40 3 yrs $ 7.40 0 % 2.51 % 40.59 % $ 2.67 4.25 yrs Black-Scholes 07‑Mar‑19 560,000 $ 5.10 3 yrs $ 5.10 0 % 2.43 % 43.65 % $ 2.00 4.5 yrs Black-Scholes 04‑Mar‑20 549,020 $ 5.25 3 yrs $ 5.25 0 % 0.73 % 46.42 % $ 2.04 4.5 yrs Black-Scholes Changes in the SARs for the year ended December 31, 2020 are set forth below: Weighted average No. of SARs exercise price Balance as at January 1, 2020 $ 7.14 SARs granted during the year ended December 31, 2020 549,020 $ 5.25 SARs forfeited during the year ended December 31, 2020 — — Balance as at December 31, 2020 (none of which are exercisable or convertible) $ The total cost related to non-vested awards expected to be recognized through 2023 is set forth below: Period TOTAL 2021 746,667 2022 435,556 2023 62,222 1,244,445 Restricted stock units As at December 31, 2020, the Company had granted 494,721 RSUs, which included DERs, to certain of its officers and directors under its 2013 Equity Incentive Plan. A summary of awards is as follows: Grant Date RSUs Awarded Service Period Grant Price 02-Jan-19 176,659 2 years $ 4.64 07-Mar-19 86,210 3 years $ 5.10 28-May-19 59,237 1 year $ 7.47 04-Mar-20 94,105 3 years $ 5.25 29-May-20 78,510 1 year $ 5.84 Changes in the RSUs for the year ended December 31, 2020 is set forth below: Weighted average fair value at grant No. of RSUs date Balance as at January 1, 2020 322,106 $ 5.28 RSUs granted during the year ended December 31, 2020 172,615 $ 5.52 RSUs vested during the year ended December 31, 2020 (176,304) $ (5.67) RSUs forfeited during the year ended December 31, 2020 — — Balance as at December 31, 2020 (none of which are vested) 318,417 $ 5.19 The total cost related to non-vested awards expected to be recognized through 2023 is set forth below: Period TOTAL 2021 502,282 2022 189,110 2023 27,447 718,839 Dividend equivalent rights As at December 31, 2020, the Company had granted 1,146,517 DERs to certain of its officers and directors under its 2013 Equity Incentive Plan. A summary of awards, simulation inputs, outputs and valuation methodology is as follows: Model Inputs DERs Service Fair Dividend Risk-free rate Expected Valuation Grant Date Awarded Period Value Yield of Return Volatility Method 04-Nov-19 yrs $0.49 2.93 % 2.06 % 30.22 % Monte Carlo Changes in the DERs for the year ended December 31, 2020 is set forth below: Weighted average fair No. of DERs value at grant date Balance as at January 1, 2020 1,146,517 0.49 DERs granted during the year ended December 31, 2020 — — DERs forfeited during the year ended December 31, 2020 — — Balance as at December 31, 2020 (none of which are vested) 1,146,517 $ 0.49 The total cost related to non-vested awards expected to be recognized through 2021 is set forth below: Period TOTAL 2021 234,081 234,081 |
Repurchase of common stock
Repurchase of common stock | 12 Months Ended |
Dec. 31, 2020 | |
Repurchase of common stock | |
Repurchase of common stock | 15 . Repurchase of common stock In September 2020, the Company's Board of Directors authorized a new share repurchase plan, expanding and replacing the Company's earlier plan. Pursuant to the new share repurchase plan, the Company may purchase up to $30 million of its common shares through September 30, 2023, at times and prices that are considered to be appropriate by the Company. The Company expects to repurchase these shares in the open market or in privately negotiated transactions, but is not obligated under the terms of the plan to repurchase any shares, and at any time, the Company may suspend, delay or discontinue the plan. During the year ended December 31, 2020, the Company repurchased 98,652 common shares at a weighted-average price of $2.91 (including fees and commission of $0.02 per share) per share for a total of approximately $0.3 million. During the years ended December 31, 2019 and 2018, no shares were repurchased. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Basis of preparation | 2.1. Basis of preparation The accompanying consolidated financial statements, which include the accounts of ASC and its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All subsidiaries are 100% directly or indirectly owned by ASC. AASML, which is a 50% owned joint venture, is accounted for using the equity method. All intercompany balances and transactions have been eliminated on consolidation. |
Uses of estimates | 2.2. Uses of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an on-going basis, management evaluates the estimates and judgments, including those related to uncompleted voyages, future drydock dates, the selection of useful lives for vessels, vessel valuations, residual value of vessels, expected future cash flows from vessels to support vessel impairment tests, provisions necessary for receivables from charterers, the selection of inputs used in the valuation model for share-based payment awards, provisions for legal disputes and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable. Actual results could differ from those estimates. |
Reporting currency | 2.3. Reporting currency The consolidated financial statements are stated in U.S. Dollars. The functional currency of the Company is U.S. Dollars because the Company operates in international shipping markets in which most transactions are denominated in the U.S. Dollar. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. Resulting gains and losses are included in the accompanying consolidated statements of operations. |
Recent accounting pronouncements | 2.4. Recent accounting pronouncements In June 2016, the Financial Accounting Standards Board issued ASU 2016-13: Financial Instruments - Credit Losses (Topic 326) which requires recognition of management’s estimates of current expected credit losses, rather than the current incurred losses model. The new model is generally applicable to all financial instruments that are not accounted for at fair value through net income. The standard is effective for annual and interim periods beginning after December 15, 2019. The implementation of this standard on January 1, 2020 did not represent a significant impact on the consolidated financial statements and related disclosures. On March 12, 2020, the FASB issued ASU 2020-04 - Reference Rate Reform (“ASC 848”): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The purpose of this guidance is to provide relief for impacted areas as it relates to impending reference rate reform. ASC 848 contains optional expedients and exceptions for applying US GAAP to contracts, hedging relationships, and other areas or transactions that are impacted by reference rate reform. ASU 2020-04 is effective upon issuance for all entities and elections of certain optional expedients are required to apply the provisions of the guidance. The Company continues to assess all potential impacts of the standard and will disclose the nature and reason for any elections that the Company makes. During the year ended December 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Revenue | 2.5. Revenue Revenue is generated from spot charter arrangements, time charter arrangements and pool arrangements. Spot charter arrangements The Company’s spot charter arrangements are for single voyages for the service of the transportation of cargo that are generally short in duration (less than two months) and the Company is responsible for all costs incurred during the voyage, which include bunkers and port/canal fees, as well as general vessel operating costs (e.g. crew, repairs and maintenance and insurance costs; and fees paid to technical managers of its vessels). Accordingly, under spot charter arrangements, key operating decisions and the economic benefits associated with a vessel’s use during the charter period reside with the Company. As at its adoption on January 1, 2018, the Company applies revenue recognition guidance in ASC 606, Revenue from Contracts with Customers (“ASC 606”) to account for its spot charter arrangements. The consideration that the Company expects to be entitled to receive in exchange for its transportation services is recognized as revenue ratably over the duration of a voyage on a load-to-discharge basis (i.e. from when cargo is loaded at the port to when it is discharged after the completion of the voyage). The consideration that the Company expects to be entitled to receive includes estimates of revenue associated with the loading or discharging time that exceed the originally estimated duration of the voyage, which is referred to as “demurrage revenue”, when it is determined there will be incremental time required to complete the contracted voyage. Demurrage revenue is not considered a separate deliverable in accordance with ASC 606 as it is part of the single performance obligation in a spot charter arrangement, which is to provide cargo transportation services to the completion of a contracted voyage. Time charter arrangements The Company’s time charter arrangements are for a specified period of time and key decisions concerning the use of the vessel during the duration of the time charter period reside with the charterer. In time charter arrangements, the Company is responsible for the crewing, maintenance and insurance of the vessel, and the charterer is generally responsible for voyage specific costs, which typically include bunkers and port/canal costs. As the charterer holds sufficient latitude in its rights to determine how and when the vessel is used on voyages and the charterer is also responsible for costs incurred during the voyage, the charterer derives the economic benefits from the use of the vessel, as control over the use of the vessel is transferred to the charterer during the specified time charter period. Accordingly, time charters are considered operating leases and the Company applies guidance for lessors in ASC 842. Revenue for time charters is recognized on a straight-line basis ratably over the term of the charter. Pooling arrangements The Company participates in commercial pooling arrangements to charter certain of its vessels from time to time. In these arrangements, the participating members seek to benefit from the more efficient employment of their vessels as the manager of the vessels in the pool leverages the size of the fleet commercially and operationally. The manager is responsible for the commercial management on behalf of the members of the pool, including responsibility for voyage expenses such as fuel and port charges. The pool members are responsible for maintaining the vessel operating expenses of their participating vessels, including crewing, repairs and maintenance and insurance of their participating vessels. The earnings from all vessels are pooled and shared by the members of the arrangement based on the earnings allocation terms of the arrangement, which consider the number of days a vessel operates in the pool with weighted adjustments made to reflect the vessels’ differing capacities and performance capabilities. Therefore, the earnings allocation represents the pool members’ consideration for their different contribution to the collaborative arrangement. The Company recognizes its earnings allocation as revenue in accordance with the guidance for collaborative arrangements. |
Voyage and vessel operating expenses | 2.6. Voyage and vessel operating expenses Voyage expenses Voyage expenses represent costs the Company is responsible to incur in charter arrangements during a voyage that are directly related to a voyage. Voyage expenses include bunkers and port/canal costs, which are expensed as incurred. Voyage expenses also include contract fulfillment costs that are incurred by the Company prior to a voyage. These costs are from the later of when a vessel departed from its prior charter discharge port and when a vessel entered a new charter to the arrival at the loading port for the new charter are deferred and amortized ratably over the new charter for charters accounted for in accordance with ASC 606. Such costs are typically comprised of bunkers. Vessel operating expenses Vessel operating expenses represent costs the Company incurs to operate its vessels that are not directly related to a voyage and include such costs the Company incurs for its vessels in pooling arrangements. Vessel operating expenses include crew, repairs and maintenance, insurance, stores, lube oils, communication expenses, and technical management fees. Vessel operating expenses are expensed as incurred. |
Cash and cash equivalents | 2.7. Cash and cash equivalents The Company classifies investments with an original maturity date of three months or less as cash and cash equivalents. The Company is required to maintain a minimum cash balance in accordance with its long-term debt facility agreements (see Note 5) and finance lease facility agreements (see Note 6). |
Receivables | 2.8. Receivables Receivables include amounts due from charterers for hire and other recoverable expenses due to the Company. As at the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate allowance for bad debt. |
Prepaid expenses and other assets | 2.9. Prepaid expenses and other assets Prepaid expenses and other assets consist of payments made in advance for insurance or other expenses, and insurance claims outstanding and certain assets held by vessel managers. Insurance claims are recorded, net of any deductible amounts, for insured damages which are recognized when recovery is virtually certain under the related insurance policies and where the Company can make an estimate of the amount to be reimbursed following the insurance claim. As at the balance sheet date, all potentially uncollectible accounts are assessed individually for the purposes of determining the appropriate provision for doubtful accounts. |
Advances and deposits | 2.10. Advances and deposits Advances and deposits primarily include amounts advanced to third-party technical managers and AASML for expenses incurred by them in operating the vessels, together with other necessary deposits paid during the course of business. |
Inventories | 2.11. Inventories Inventories consist of bunkers, lubricating oils and other consumables on board the Company’s vessels. Inventories are valued at the lower of cost or net realizable value on a first-in first-out basis. Cost is based on the normal levels of cost and comprises the cost of purchase, being the suppliers’ invoice price with the addition of charges such as freight or duty where appropriate. Spares are expensed as incurred. |
Vessels held for sale | 2.12. Vessel held for sale Assets are classified as held for sale when management, having the authority to approve the action, commits to a plan to sell the asset, the sale is probable within one year, and the asset is available for immediate sale in its present condition. Consideration is given to whether an active program to locate a buyer has been initiated, whether the asset is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When assets are classified as held for sale, they are measured at the lower of their carrying amount or fair value less cost to sell and they are tested for impairment. A loss is recognized when the carrying value of the asset exceeds the estimated fair value, less transaction costs. Assets classified as held for sale are no longer depreciated. |
Vessels and vessel equipment | 2.13. Vessels and vessel equipment Vessels and vessel equipment are recorded at their cost less accumulated depreciation. Vessel cost comprises acquisition costs directly attributable to the vessel and the expenditures made to prepare the vessel for its initial voyage. Vessels are depreciated on a straight-line basis over their estimated useful economic life from the date of initial delivery from the shipyard. The useful life of the Company’s vessels is estimated at 25 years from the date of initial delivery from the shipyard. Depreciation is based on cost less estimated residual scrap value. Residual scrap value is estimated as the lightweight tonnage of each vessel multiplied by the estimated scrap value per ton. The scrap value of the vessels is estimated at $300 (2019: $300) per lightweight ton. Vessel equipment comprises the costs of significant replacements, renewals and upgrades to the Company’s vessels. Vessel equipment is depreciated over the shorter of the vessel’s remaining useful life or the life of the renewal or upgrade. The amount capitalized is based on management’s judgment as to expenditures that extend a vessel’s useful life or increase the operational efficiency of a vessel. Costs that are not capitalized are recorded as a component of direct vessel operating expenses during the period incurred. Expenses for routine maintenance and repairs are expensed as incurred. |
Deferred drydock expenditures | 2.14. Deferred drydock expenditures The Company follows the deferral method of accounting for drydock expenditures whereby actual expenditures incurred are deferred and are amortized on a straight-line basis through to the date of the next scheduled drydocking, generally 30 to 60 months. Expenditures deferred as part of the drydock include direct costs that are incurred as part of the drydocking to meet regulatory requirements. Direct expenditures that are deferred include the shipyard costs, parts, inspection fees, steel, blasting and painting. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. Unamortized drydock expenditures of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels’ sale. Unamortized drydock expenditures are written off as drydock expense if the vessels are drydocked before the expiration of the applicable amortization period. |
Advances for ballast water treatment systems | 2.15. Advances for ballast water treatment systems The Company is in the process of installing ballast water treatment systems on each of its vessels that do not currently have the system installed. This is a requirement of the International Maritime Organization. The Company capitalizes and depreciates the costs of ballast water treatment systems, including installation costs, on each vessel from the date of completion of the system over the remaining useful life of the vessel. |
Other non-current assets | 2 .17. Other non-current assets Other non-current assets relate to office equipment, fixtures and fittings and leasehold improvements. Office equipment and fixtures and fittings are recorded at their cost less accumulated depreciation and are depreciated based on an estimated useful life of five years. Leasehold improvements relate to fit-out costs for work completed on the Company’s offices in Ireland and Singapore. Leasehold improvements are recorded at their cost less accumulated depreciation and are depreciated over the life of the respective leases. |
Amount receivable in respect of finance leases | 2.18. Amount receivable in respect of finance leases As part of finance lease arrangements, the Company provided a lessor with $2.9 million in the aggregate which shall be repaid at the end of the lease period, or upon the exercise of any of the purchase options. The associated finance lease liability is presented gross of the $2.9 million. |
Operating leases | 2.19. Operating leases Operating leases relate to long-term commitments for the Company’s offices. The Company recognizes on its consolidated balance sheets the right-of-use assets and lease liabilities for lease contracts greater than 12 months. The discount rate used for calculating the cost of the operating leases is the incremental cost of borrowing since the rate implicit in the lease cannot be determined. |
Finance leases | 2.20. Finance leases Finance leases relate to financing arrangements for vessels in operation. Interest costs are expensed to interest expense and finance costs in the consolidated statements of operations using the effective interest method over the life of the lease. |
Accounts payable | 2.21. Accounts payable Accounts payable include all financial obligations to vendors for goods or services that have been received or will be received in the future. |
Accrued expenses and other liabilities | 2.22. Accrued expenses and other liabilities Accrued expenses and other liabilities include all accrued liabilities in relation to the operating and running of the vessels, along with amounts accrued for general and administrative expenses. |
Derivatives | 2.23. Derivatives As required by ASC 815, Derivatives and Hedging, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply, or the Company elects not to apply hedge accounting. The Company elected to classify settlement payments as operating activities within the statement of cash flows. |
Equity method investments | 2.24. Equity method investments The Company’s investment in AASML is accounted for using the equity method of accounting. Under the equity method of accounting, the Company initially recorded the investment in AASML at cost and adjusts the carrying amount of the investment to recognize their respective share of earnings or losses of the investee. Dividends received from an investee reduce the carrying amount of the equity investment. The Company evaluates its equity method investment for impairment when events or circumstances indicate that the carrying value of such investment may have experienced an other than temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Company’s consolidated statements of operations. The investment in AASML and the equity in income of AASML is insignificant. |
Contingencies | 2.25. Contingencies Claims, suits and contingencies arise in the ordinary course of the Company’s business. The Company provides for these contingencies when (i) it is probable that a liability has been incurred at the date of the financial statements and (ii) the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for contingencies that do not meet both these conditions if there is a reasonable possibility that a liability may have been incurred as at the balance sheet date. |
Distributions to shareholders | 2.26. Distributions to shareholders Subject to the Board of Directors’ approval, distributions to common stockholders are applied first to accumulated surplus. When accumulated surplus is not sufficient, distributions are applied to the additional paid in capital account. |
Equity issuance costs | 2.27. Equity issuance costs Incremental costs incurred that are directly attributable to a proposed or actual offering of equity securities are deferred and deducted from the related proceeds of the offering, and the net amount is recorded as contributed shareholders’ equity in the period when such shares are issued. Other costs incurred that are not directly attributable, but are related, to a proposed or actual offering are expensed as incurred. |
Debt and finance lease issuance costs | 2.28. Debt and finance lease issuance costs Financing charges which include fees, commissions and legal expenses associated with securing loan facilities and finance lease agreements are presented in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability or finance lease obligation. These costs are amortized to interest expense and finance costs in the consolidated statements of operations using the effective interest rate method over the life of the related debt or finance lease. |
Share based compensation | 2.29. Share-based compensation The Company may grant share-based payment awards, such as restricted stock units (“RSUs”), stock appreciation rights (“SARs”) and dividend equivalent rights (“DERs”), as incentive-based compensation to certain employees. The Company measures the cost of such awards, which are equity-settled transactions, using the grant date fair value of the award and recognizes that cost, net of estimated forfeitures, over the requisite service period, which generally equals the vesting period. If the award contains a market condition, such conditions are included in the determination of the fair value of the stock unit. Once the fair value has been determined, the associated expense is recognized in the consolidated statements of operations over the requisite service period. The SAR awards granted prior to the 2018 award contain a market condition whereby, in no event will the appreciation per share for any portion of the SAR award be deemed to exceed four times (i.e. 400%) the per share exercise price of the SAR. The market condition does not apply after July 31, 2016. The SAR awards with a market condition were valued by applying a model based on the Monte Carlo simulation. The model inputs were the grant price, dividend yield based on the initial intended dividend set out by the Company, a risk-free rate of return equal to the zero-coupon U.S. Treasury bill commensurate with the contractual terms of the units and expected volatility based on the average of the most recent historical volatilities in the Company’s peer group. The SARs are settled through the delivery of Ardmore shares, not cash. Hence, in accordance with the guidance in ASC 718, the Company have classified the plan as an equity settled share-based payment plan. The cost of each tranche of SARs is being recognized by the Company on a straight-line basis. The recognition of share-based compensation costs related to the tranches that vested before July 31, 2016 would have been accelerated if the market condition had been met and the requisite service period had been completed. The Company’s policy for issuing shares upon the exercise, if any, of the SARs is to register and issue new common shares to the beneficiary. Under an RSU award, the grantee is entitled to receive a share of ASC’s common stock for each RSU at the end of the vesting period. Payment under the RSU will be made in the form of shares of ASC’s common stock. The cost of RSUs will be recognized by the Company on a straight-line basis over the vesting period. The Company’s policy for issuing shares upon the vesting of the RSUs is to register and issue new common shares to the grantee. Under a DER award, in the event that dividends are declared and paid on a share with a record date on or after the applicable grant date, the grantee is entitled to receive a share of ASC’s common stock equal to the amount of the dividend declared multiplied by the number of shares per the award, divided by the Fair Market Value of a share on the date the dividends are paid. The cost of DERs will be recognized by the Company on a straight-line basis over the vesting period. The Company’s policy is to register and issue new common shares to the grantee at the time that dividends are paid. The DER awards were valued by applying a model based on the Monte Carlo simulation. The model inputs were the grant price, dividend yield based on the initial intended dividend set out by the Company, a risk-free rate of return equal to the zero-coupon U.S. Treasury bill commensurate with the contractual terms of the units and expected volatility based on the average of the most recent historical volatilities in the Company’s peer group. |
Treasury stock | 2.30. Treasury stock When shares are acquired for a reason other than formal or constructive retirement, the shares are presented separately as a deduction from equity. If the shares are retired or subsequently sold, any gain would be allocated as an increase in additional paid in capital and cumulative losses as an increase to accumulated deficit. |
Financial instruments | 2.31. Financial instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable reported in the consolidated balance sheets are reasonable estimates of their fair values due to their short-term nature. The fair values of long-term debt approximate the recorded values due to the variable interest rates payable. |
Income taxes | 2.32. Income taxes Republic of the Marshall Islands Ardmore Shipping Corporation, Ardmore Shipping LLC, Ardmore Maritime Services LLC, and all vessel owning subsidiaries are incorporated in the Republic of the Marshall Islands. Ardmore Shipping Corporation believes that neither it, nor its subsidiaries, are subject to taxation under the laws of the Republic of the Marshall Islands and that distributions by its subsidiaries to Ardmore Shipping Corporation will not be subject to any taxes under the laws of the Republic of the Marshall Islands. Bermuda Ardmore Shipping (Bermuda) Limited is incorporated in Bermuda. Ardmore Shipping Corporation, Ardmore Shipping LLC and Ardmore Shipping (Bermuda) Limited are managed and controlled in Bermuda. Ardmore Shipping Corporation is subject to taxation under the laws of Bermuda and distributions by its subsidiaries to Ardmore Shipping Corporation will be subject to any taxes under the laws of Bermuda. Ireland Ardmore Shipholding Limited and Ardmore Shipping Services (Ireland) Limited are incorporated in Ireland. Ardmore Shipholding Limited is dormant and as such is not anticipated to generate trading income subject to corporation tax in Ireland. Ardmore Shipping Services (Ireland) Limited’s trading profits are taxable at the standard corporation tax rate which is currently 12.5% based on generally accepted accounting principles in Ireland. Any non-trading / passive income is taxed at the higher corporation tax rate which is currently 25%. United States of America Ardmore Shipping (Americas) LLC (“ASUSA”) and Ardmore Trading (USA) LLC (“ATUSA”) are incorporated in Delaware and treated as corporations for U.S. tax purposes. ASUSA and ATUSA will be subject to U.S. tax on their worldwide net income. Singapore Ardmore Shipping (Asia) Pte. Limited and Ardmore Tanker Trading (Asia) Pte. Limited are incorporated in Singapore. Ardmore Shipping (Asia) Pte. Limited qualified as an “Approved International Shipping Enterprise” by the Singapore authorities with effect from August 1, 2015. This entitles the company to tax exemption on profits derived from ship operations for any vessels which are owned or chartered in by Ardmore Shipping (Asia) Pte. Limited. Ardmore Tanker Trading (Asia) Pte. Limited, which commenced business July 1, 2019, will be subject to Singapore tax on its worldwide profits. Deferred taxation Deferred income tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statements and tax basis of existing assets and liabilities using enacted rates applicable to the periods in which the differences are expected to affect taxable income. Deferred income tax balances included on the consolidated balance sheets reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. The recoverability of these future tax deductions is evaluated by assessing the adequacy of future taxable income, including the reversal of temporary differences and forecasted operating earnings. If it is deemed more likely than not that the deferred tax assets will not be realized, the Company provides for a valuation allowance. Income taxes have been provided for all items included in the consolidated statements of operations regardless of when such items were reported for tax purposes or when the taxes were actually paid or refunded. Deferred tax for the year ended December 31, 2020 amounted to $Nil (2019: $Nil , 2018: $Nil). Uncertainties related to income taxes Companies are to determine whether it is more-likely-than-not that the tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not threshold it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Uncertainties related to income taxes recognized for the year ended December 31, 2020 amounted to $Nil (2019: $Nil, 2018: $Nil). |
Overview (Tables)
Overview (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
General information and significant accounting policies | |
Schedule of components of fleet | Vessel Name Type Dwt IMO (1) Built Country Specification Ardmore Seavaliant Product/Chemical 49,998 2/3 Feb-13 Korea Eco-design Ardmore Seaventure Product/Chemical 49,998 2/3 Jun-13 Korea Eco-design Ardmore Seavantage Product/Chemical 49,997 2/3 Jan-14 Korea Eco-design Ardmore Seavanguard Product/Chemical 49,998 2/3 Feb-14 Korea Eco-design Ardmore Sealion Product/Chemical 49,999 2/3 May-15 Korea Eco-design Ardmore Seafox Product/Chemical 49,999 2/3 Jun-15 Korea Eco-design Ardmore Seawolf Product/Chemical 49,999 2/3 Aug-15 Korea Eco-design Ardmore Seahawk Product/Chemical 49,999 2/3 Nov-15 Korea Eco-design Ardmore Endeavour Product/Chemical 49,997 2/3 Jul-13 Korea Eco-design Ardmore Enterprise Product/Chemical 49,453 2/3 Sep-13 Korea Eco-design Ardmore Endurance Product/Chemical 49,466 2/3 Dec-13 Korea Eco-design Ardmore Encounter Product/Chemical 49,478 2/3 Jan-14 Korea Eco-design Ardmore Explorer Product/Chemical 49,494 2/3 Jan-14 Korea Eco-design Ardmore Exporter Product/Chemical 49,466 2/3 Feb-14 Korea Eco-design Ardmore Engineer Product/Chemical 49,420 2/3 Mar-14 Korea Eco-design Ardmore Seamariner Product/Chemical 45,726 3 Oct-06 Japan Eco-mod Ardmore Sealancer Product 47,451 — Jun-08 Japan Eco-mod Ardmore Sealeader Product 47,463 — Aug-08 Japan Eco-mod Ardmore Sealifter Product 47,472 — Jun-08 Japan Eco-mod Ardmore Seafarer Product 49,999 — Jun-10 Japan Eco-mod Ardmore Dauntless Product/Chemical 37,764 2 Feb-15 Japan Eco-design Ardmore Defender Product/Chemical 37,791 2 Feb-15 Japan Eco-design Ardmore Cherokee Product/Chemical 25,215 2 Jan-15 Japan Eco-design Ardmore Cheyenne Product/Chemical 25,217 2 Mar-15 Japan Eco-design Ardmore Chinook Product/Chemical 25,217 2 Jul-15 Japan Eco-design Ardmore Chippewa Product/Chemical 25,217 2 Nov-15 Japan Eco-design Total 26 1,161,293 (1) International Maritime Organization (“IMO”) cargo classification |
Business and segmental report_2
Business and segmental reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business and segmental reporting | |
Schedule of revenues of major customers | The following table presents consolidated revenues for charterers that accounted for more than 10% of the Company’s consolidated revenues during the years presented: For the years ended December 31 2020 2019 2018 Charterer A 26,759,247 <10% 27,025,590 |
Schedule of revenues contributions | The following table presents the Company’s revenue contributions by nature of vessel employment. For the years ended December 31 2020 2019 2018 Voyage charters (1) 206,350,782 218,969,349 193,679,937 Time charters (2) 13,696,635 10,974,608 2,453,062 Pooling arrangements (3) 10,189 98,283 14,046,182 220,057,606 230,042,240 210,179,181 (1) Represents revenue recognized by the Company associated with charters that were accounted for in accordance with ASC 606. (2) Represents revenue recognized by the Company associated with charters that were accounted for in accordance with ASC 842. (3) Represents revenue recognized by the Company associated with pooling arrangements that were accounted for in accordance with the guidance for collaborative arrangements. |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued expenses and other liabilities | |
Schedule of components of accrued expenses and other liabilities | Accrued expenses and other liabilities consist of the following as at December 31, 2020 and 2019: As at December 31 2020 2019 Accrued vessel operating expenses and voyage expenses 8,320,291 12,096,220 Other accrued expenses 2,913,476 4,181,864 Total accrued expenses 11,233,767 16,278,084 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt | |
Schedule of future minimum repayments under the loan facilities | Future minimum scheduled repayments under the Company’s loan facilities for each year are as follows: As at December 31 2020 2021 23,506,236 2022 33,275,486 2023 18,881,236 2024 134,620,929 2025 3,600,000 213,883,887 |
Finance Leases (Tables)
Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Finance Leases | |
Schedule of outstanding principal balances on finance lease facility | The outstanding principal balances on each finance lease facility as at December 31, 2020 and 2019 were as follows: As at December 31 2020 2019 Japanese Leases No.1 and 2 26,531,100 31,398,900 Japanese Lease No.3 13,119,000 15,498,000 CMBFL Leases No.1 to 4 72,459,942 79,896,836 Ocean Yield ASA 55,729,620 61,153,740 Japanese Lease No.4 21,949,099 23,983,699 China Huarong Leases 41,992,081 46,717,764 Finance lease obligations 231,780,842 258,648,939 Amounts representing interest and deferred finance fees (34,076,458) (42,969,245) Finance lease obligations, net of interest and deferred finance fees 197,704,384 215,679,694 Current portion of finance lease obligations 19,084,775 18,650,022 Current portion of deferred finance fees (630,553) (674,700) Non-current portion of finance lease obligations 181,250,674 200,335,437 Non-current portion of deferred finance fees (2,000,512) (2,631,065) Total finance lease obligations, net of deferred finance fees 197,704,384 215,679,694 |
Schedule of future minimum lease payments required under the finance lease facilities | Maturity analysis of the Company’s finance lease facilities for each year are as follows: As at December 31, 2020 2021 26,523,339 2022 26,470,805 2023 38,028,900 2024 24,179,292 2025 75,863,062 2026 - 2030 40,715,444 Finance lease obligations 231,780,842 Amounts representing interest and deferred finance fees (34,076,458) Finance lease obligations, net of interest and deferred finance fees 197,704,384 |
Schedule of Assets under Finance Leases | Assets recorded under finance leases consist of the following: As at December 31 2020 2019 Vessels and vessel equipment, net of accumulated depreciation 282,930,184 296,708,230 Deferred drydock expenditures, net of accumulated amortization 2,751,781 4,419,417 Advances for ballast water systems 2,141,135 221,277 287,823,100 301,348,924 |
Operating lease (Tables)
Operating lease (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating lease | |
Schedule of right of use asset and lease liability | As at December 31 2020 2019 Operating lease, right-of-use asset 1,662,510 1,745,464 Total operating lease, right-of-use asset 1,662,510 1,745,464 Current portion of operating lease obligations 463,559 289,231 Non-current portion of operating lease obligations 1,034,218 1,182,522 Total operating lease obligations 1,497,777 1,471,753 For the years ended December 31 2020 2019 2018 Foreign exchange loss/(gain) on operating leases 108,978 (73,207) (200,504) Total foreign exchange loss/(gain) on operating leases 108,978 (73,207) (200,504) |
Schedule of maturity of operating lease liabilities | As at December 31, 2020, the Company had the following maturity of operating lease obligations: As at December 31 2020 2021 473,361 2022 299,029 2023 269,859 2024 273,082 2025 277,062 2026 46,959 Total lease payments 1,639,352 Less imputed interest (141,575) Present value of lease liabilities 1,497,777 |
Interest Rate Swaps (Tables)
Interest Rate Swaps (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Designated as hedging instrument | |
Interest Rate Swaps | |
Schedule of interest rate swap liabilities | The Company records the fair value of the interest rate swaps as an asset or liability on its balance sheet. Interest rate swaps are considered to be a Level 2 item. The following table shows the interest rate swap liabilities as of December 31, 2020 and December 31, 2019: Derivatives designated as hedging instruments Balance Sheet location December 31, 2020 December 31, 2019 Interest rate swap Current portion of derivative liabilities $ 349,374 — Interest rate swap Non - current portion of derivative liabilities $ 379,762 — |
Not designated as hedging instrument | |
Interest Rate Swaps | |
Schedule of interest rate swap liabilities | The following table shows the interest rate swap liabilities not designated as hedging instruments as of December 31, 2020 and December 31, 2019: Derivatives not designated as hedging instruments Balance Sheet location December 31, 2020 December 31, 2019 Interest rate swap Current portion of derivative liabilities $ 48,044 — Interest rate swap Non - current portion of derivative liabilities $ 54,212 — |
Loss on sale of vessel (Tables)
Loss on sale of vessel (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Capital Leased Assets | The loss on the sale of vessels for the year ended December 31, 2019 is calculated as follows: Seamaster Seafarer Total Sales proceeds (1) 9,700,000 9,100,000 18,800,000 Net book value of vessels (15,979,901) (15,537,708) (31,517,609) Sales related costs (223,178) (99,503) (322,681) Debt termination costs and related finance fees (66,684) (55,218) (121,902) Loss on sale of vessels (6,569,763) (6,592,429) (13,162,192) |
Ardmore Seatrader | |
Schedule of Capital Leased Assets | The loss on the vessel held for sale for the year ended December 31, 2018 is calculated as follows: Seatrader Sales proceeds 8,250,000 Net book value of vessel (14,444,217) Sales related costs (166,596) Loss on vessel held for sale (6,360,813) |
Ardmore Seamariner | |
Schedule of Capital Leased Assets | The loss on the vessel held for sale for the year ended December 31, 2020 is calculated as follows: Seamariner Sales proceeds 10,000,000 Net book value of vessel (16,342,309) Sales related costs (105,000) Loss on vessel held for sale (6,447,309) |
Interest expense and finance _2
Interest expense and finance costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interest expense and finance costs | |
Schedule of Interest expense and finance costs | For the years ended December 31 2020 2019 2018 Interest incurred – debt 6,585,889 10,780,248 17,070,112 Interest incurred – finance leases 9,737,294 13,419,326 5,667,420 Amortization of deferred finance fees 1,765,271 2,023,279 2,400,621 Write-off of deferred finance fees in relation to refinancing — 536,901 2,267,455 Swap Interest 79,701 — — 18,168,155 26,759,754 27,405,608 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes | |
Schedule of Components of Income Tax | The components of income tax are as follows: For the years ended December 31 2020 2019 2018 Current tax expenses (199,446) (58,766) (162,923) Income tax expense for year (199,446) (58,766) (162,923) |
Schedule of differences between income taxes expected at the Bermuda statutory income tax rate of zero percent and the reported income tax expense | The differences between income taxes expected at the Bermuda statutory income tax rate of zero percent and the reported income tax expense are summarized as follows: For the years ended December 31 2020 2019 2018 Bermuda statutory income tax rate 0.00 % 0.00 % 0.00 % Income subject to tax in other jurisdictions 3.41 % 0.26 % 0.38 % Effective tax rate 3.41 % 0.26 % 0.38 % |
Net loss per share and divide_2
Net loss per share and dividends per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net loss per share and dividends per share | |
Schedule of Basic and diluted loss per share | For the years ended December 31 Numerator: 2020 2019 2018 Net loss $ (6,046,195) (22,861,257) (42,939,001) Denominator: Weighted average number of shares outstanding 33,241,936 33,097,831 32,837,866 Net loss per share, basic and diluted $ (0.18) (0.69) (1.31) |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock appreciation rights | |
Share-based compensation | |
Schedule of awards, simulation inputs and outputs | A summary of awards, simulation inputs, outputs and valuation methodology is as follows: Model Inputs Weighted Risk-free Average Fair SARs Exercise Vesting Grant Dividend rate of Expected Value Average Expected Valuation Grant Date Awarded Price Period Price Yield Return Volatility grant date Exercise Life Method 12‑Mar‑14 22,118 $ 13.66 3 yrs $ 13.66 2.93 % 2.06 % 56.31 % $ 4.17 4.6 – 5.0 yrs Monte Carlo 01‑Sept‑14 5,595 $ 13.91 3 yrs $ 13.91 2.88 % 2.20 % 53.60 % $ 4.20 4.5 – 5.0 yrs Monte Carlo 06‑Mar‑15 37,797 $ 10.25 3 yrs $ 10.25 3.90 % 1.90 % 61.38 % $ 2.98 4.2 – 5.0 yrs Monte Carlo 15‑Jan‑16 205,519 $ 9.20 3 yrs $ 9.20 6.63 % 1.79 % 58.09 % $ 2.20 4.0 – 5.0 yrs Monte Carlo 04‑Apr‑18 1,719,733 $ 7.40 3 yrs $ 7.40 0 % 2.51 % 40.59 % $ 2.67 4.25 yrs Black-Scholes 07‑Mar‑19 560,000 $ 5.10 3 yrs $ 5.10 0 % 2.43 % 43.65 % $ 2.00 4.5 yrs Black-Scholes 04‑Mar‑20 549,020 $ 5.25 3 yrs $ 5.25 0 % 0.73 % 46.42 % $ 2.04 4.5 yrs Black-Scholes |
Schedule of changes in the Stocks | Changes in the SARs for the year ended December 31, 2020 are set forth below: Weighted average No. of SARs exercise price Balance as at January 1, 2020 $ 7.14 SARs granted during the year ended December 31, 2020 549,020 $ 5.25 SARs forfeited during the year ended December 31, 2020 — — Balance as at December 31, 2020 (none of which are exercisable or convertible) $ |
Schedule of cost related to non-vested awards expected to be recognized | The total cost related to non-vested awards expected to be recognized through 2023 is set forth below: Period TOTAL 2021 746,667 2022 435,556 2023 62,222 1,244,445 |
Restricted stock units | |
Share-based compensation | |
Schedule of awards, simulation inputs and outputs | A summary of awards is as follows: Grant Date RSUs Awarded Service Period Grant Price 02-Jan-19 176,659 2 years $ 4.64 07-Mar-19 86,210 3 years $ 5.10 28-May-19 59,237 1 year $ 7.47 04-Mar-20 94,105 3 years $ 5.25 29-May-20 78,510 1 year $ 5.84 |
Schedule of changes in the Stocks | Changes in the RSUs for the year ended December 31, 2020 is set forth below: Weighted average fair value at grant No. of RSUs date Balance as at January 1, 2020 322,106 $ 5.28 RSUs granted during the year ended December 31, 2020 172,615 $ 5.52 RSUs vested during the year ended December 31, 2020 (176,304) $ (5.67) RSUs forfeited during the year ended December 31, 2020 — — Balance as at December 31, 2020 (none of which are vested) 318,417 $ 5.19 |
Schedule of cost related to non-vested awards expected to be recognized | The total cost related to non-vested awards expected to be recognized through 2023 is set forth below: Period TOTAL 2021 502,282 2022 189,110 2023 27,447 718,839 |
Dividend equivalent rights | |
Share-based compensation | |
Schedule of changes in the Stocks | Changes in the DERs for the year ended December 31, 2020 is set forth below: Weighted average fair No. of DERs value at grant date Balance as at January 1, 2020 1,146,517 0.49 DERs granted during the year ended December 31, 2020 — — DERs forfeited during the year ended December 31, 2020 — — Balance as at December 31, 2020 (none of which are vested) 1,146,517 $ 0.49 |
Schedule of cost related to non-vested awards expected to be recognized | The total cost related to non-vested awards expected to be recognized through 2021 is set forth below: Period TOTAL 2021 234,081 234,081 |
Summary of awards, simulation inputs, outputs and valuation methodology | A summary of awards, simulation inputs, outputs and valuation methodology is as follows: Model Inputs DERs Service Fair Dividend Risk-free rate Expected Valuation Grant Date Awarded Period Value Yield of Return Volatility Method 04-Nov-19 yrs $0.49 2.93 % 2.06 % 30.22 % Monte Carlo |
Overview (Details)
Overview (Details) | 12 Months Ended |
Dec. 31, 2020segmentsubsidiaryitemt | |
Overview | |
Number of operating segments | segment | 1 |
Number of joint ventures | item | 1 |
Number of wholly owned subsidiaries | subsidiary | 76 |
Number Of Fleet With Marshall Island flag | item | 25 |
Number Of Fleet With Singapore flag | item | 1 |
Deadweight | 1,161,293 |
TOTAL | item | 26 |
Ardmore Seavaliant [Member] | |
Overview | |
Deadweight | 49,998 |
Ardmore Seavaliant [Member] | Korea | |
Overview | |
Built date | Feb-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seaventure [Member] | |
Overview | |
Deadweight | 49,998 |
Ardmore Seaventure [Member] | Korea | |
Overview | |
Built date | Jun-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seavantage [Member] | |
Overview | |
Deadweight | 49,997 |
Ardmore Seavantage [Member] | Korea | |
Overview | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seavanguard [Member] | |
Overview | |
Deadweight | 49,998 |
Ardmore Seavanguard [Member] | Korea | |
Overview | |
Built date | Feb-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Sealion [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Sealion [Member] | Korea | |
Overview | |
Built date | May-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seafox [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seafox [Member] | Korea | |
Overview | |
Built date | Jun-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seawolf [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seawolf [Member] | Korea | |
Overview | |
Built date | Aug-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seahawk [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seahawk [Member] | Korea | |
Overview | |
Built date | Nov-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Endeavour [Member] | |
Overview | |
Deadweight | 49,997 |
Ardmore Endeavour [Member] | Korea | |
Overview | |
Built date | Jul-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Enterprise [Member] | |
Overview | |
Deadweight | 49,453 |
Ardmore Enterprise [Member] | Korea | |
Overview | |
Built date | Sep-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Endurance [Member] | |
Overview | |
Deadweight | 49,466 |
Ardmore Endurance [Member] | Korea | |
Overview | |
Built date | Dec-13 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Encounter [Member] | |
Overview | |
Deadweight | 49,478 |
Ardmore Encounter [Member] | Korea | |
Overview | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Explorer [Member] | |
Overview | |
Deadweight | 49,494 |
Ardmore Explorer [Member] | Korea | |
Overview | |
Built date | Jan-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Exporter [Member] | |
Overview | |
Deadweight | 49,466 |
Ardmore Exporter [Member] | Korea | |
Overview | |
Built date | Feb-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Engineer [Member] | |
Overview | |
Deadweight | 49,420 |
Ardmore Engineer [Member] | Korea | |
Overview | |
Built date | Mar-14 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Seamariner | |
Overview | |
Deadweight | 45,726 |
IMO | item | 3 |
Ardmore Seamariner | Japan | |
Overview | |
Built date | Oct-06 |
Type | Product/Chemical |
Specification | Eco-mod |
Ardmore Sealancer [Member] | |
Overview | |
Deadweight | 47,451 |
IMO | item | 0 |
Ardmore Sealancer [Member] | Japan | |
Overview | |
Built date | Jun-08 |
Type | Product |
Specification | Eco-mod |
Ardmore Sealeader [Member] | |
Overview | |
Deadweight | 47,463 |
IMO | item | 0 |
Ardmore Sealeader [Member] | Japan | |
Overview | |
Built date | Aug-08 |
Type | Product |
Specification | Eco-mod |
Ardmore Sealifter [Member] | |
Overview | |
Deadweight | 47,472 |
IMO | item | 0 |
Ardmore Sealifter [Member] | Japan | |
Overview | |
Built date | Jun-08 |
Type | Product |
Specification | Eco-mod |
Ardmore Seafarer [Member] | |
Overview | |
Deadweight | 49,999 |
Ardmore Seafarer [Member] | Japan | |
Overview | |
Built date | Jun-10 |
Type | Product |
Specification | Eco-mod |
Ardmore Dauntless [Member] | |
Overview | |
Deadweight | 37,764 |
IMO | item | 2 |
Ardmore Dauntless [Member] | Japan | |
Overview | |
Built date | Feb-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Defender [Member] | |
Overview | |
Deadweight | 37,791 |
IMO | item | 2 |
Ardmore Defender [Member] | Japan | |
Overview | |
Built date | Feb-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Cherokee [Member] | |
Overview | |
Deadweight | 25,215 |
IMO | item | 2 |
Ardmore Cherokee [Member] | Japan | |
Overview | |
Built date | Jan-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Cheyenne [Member] | |
Overview | |
Deadweight | 25,217 |
IMO | item | 2 |
Ardmore Cheyenne [Member] | Japan | |
Overview | |
Built date | Mar-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Chinook [Member] | |
Overview | |
Deadweight | 25,217 |
IMO | item | 2 |
Ardmore Chinook [Member] | Japan | |
Overview | |
Built date | Jul-15 |
Type | Product/Chemical |
Specification | Eco-design |
Ardmore Chippewa [Member] | |
Overview | |
Deadweight | 25,217 |
IMO | item | 2 |
Ardmore Chippewa [Member] | Japan | |
Overview | |
Built date | Nov-15 |
Type | Product/Chemical |
Specification | Eco-design |
Overview - Additional informati
Overview - Additional information (Details) | 12 Months Ended |
Dec. 31, 2020item | |
General information and significant accounting policies | |
Number Of Vessels In Operation | 27 |
Average Age Of Vessels | 7 years 7 months 6 days |
Equity Method Investment, Ownership Percentage | 50.00% |
Significant accounting polici_3
Significant accounting policies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 30, 2017 | |
Significant accounting policies | ||||
Standard Corporation Tax Rate | 12.50% | |||
Higher Corporation Tax Rate | 25.00% | |||
Vessels Scrap Value Per Lightweight Ton | $ 300 | $ 300 | ||
Deferred Income Tax Expense (Benefit) | $ 0 | 0 | $ 0 | |
Percentage of Appreciation Granted in SAR Awards | 400.00% | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 | $ 0 | |
Equity Method Investment, Ownership Percentage | 50.00% | |||
Corporate Joint Venture [Member] | ||||
Significant accounting policies | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Japanese Leases No.1 and 2 [Member] | ||||
Significant accounting policies | ||||
Sellers Credit Note | $ 2,900,000 | $ 2,900,000 | ||
Vessels [Member] | ||||
Significant accounting policies | ||||
Property, Plant and Equipment, Useful Life | 25 years | |||
Office Equipment and Fixtures and Fittings [Member] | ||||
Significant accounting policies | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Minimum [Member] | ||||
Significant accounting policies | ||||
Scheduled drydocking period of vessels | 30 months | |||
Maximum [Member] | ||||
Significant accounting policies | ||||
Scheduled drydocking period of vessels | 60 months |
Business and segmental report_3
Business and segmental reporting - Companys revenue contribution (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Business and segmental reporting | |||
Number of operating segments | segment | 1 | ||
Revenues | $ 220,057,606 | $ 230,042,240 | $ 210,179,181 |
Charterer A [Member] | |||
Business and segmental reporting | |||
Revenues | 26,759,247 | 27,025,590 | |
Concentration Risk, Percentage | 10.00% | ||
Voyage Charters [Member] | |||
Business and segmental reporting | |||
Revenues | 206,350,782 | $ 218,969,349 | 193,679,937 |
Time charters [Member] | |||
Business and segmental reporting | |||
Revenues | 13,696,635 | 10,974,608 | 2,453,062 |
Pooling Arrangements [Member] | |||
Business and segmental reporting | |||
Revenues | $ 10,189 | $ 98,283 | $ 14,046,182 |
Accrued expenses and other li_3
Accrued expenses and other liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued expenses and other liabilities | ||
Accrued vessel operating expenses and voyage expenses | $ 8,320,291 | $ 12,096,220 |
Other accrued expenses | 2,913,476 | 4,181,864 |
Total accrued expenses | $ 11,233,767 | $ 16,278,084 |
Debt - Outstanding Principal Ba
Debt - Outstanding Principal Balances (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Total debt | $ 213,883,887 | |
Current portion of deferred finance fees | (630,553) | $ (674,700) |
Total current portion of long-term debt | 22,456,396 | 20,216,171 |
Non-current portion of long-term debt | 188,054,568 | 187,066,842 |
Loans Payable [Member] | ||
Total debt | 213,883,887 | 211,526,507 |
Deferred finance fees | (3,372,923) | (4,243,494) |
Net total debt | 210,510,964 | 207,283,013 |
Current portion of long-term debt | 23,506,236 | 21,274,111 |
Current portion of deferred finance fees | (1,049,840) | (1,057,940) |
Total current portion of long-term debt | 22,456,396 | 20,216,171 |
Non-current portion of long-term debt | 188,054,568 | 187,066,842 |
NIBC Bank Facility [Member] | Loans Payable [Member] | ||
Total debt | 4,625,000 | 6,045,000 |
Nordea SEB Joint Bank Facility [Member] | Loans Payable [Member] | ||
Total debt | 88,503,292 | 100,000,000 |
Nordea SEB Revolving Facility [Member] | Loans Payable [Member] | ||
Total debt | 39,237,241 | 40,000,000 |
ABN CACIB Joint Bank Facility [Member] | Loans Payable [Member] | ||
Total debt | 57,124,104 | 61,462,500 |
First ABN AMRO Facility [Member] | Loans Payable [Member] | ||
Total debt | 14,394,250 | $ 4,019,007 |
IYO Bank Facility | Loans Payable [Member] | ||
Total debt | $ 10,000,000 |
Debt - Future minimum repayment
Debt - Future minimum repayments (Details) | Dec. 31, 2020USD ($) |
Debt | |
2021 | $ 23,506,236 |
2022 | 33,275,486 |
2023 | 18,881,236 |
2024 | 134,620,929 |
2025 | 3,600,000 |
Total long-term debt | $ 213,883,887 |
Debt - Additional information (
Debt - Additional information (Details) $ in Millions | Dec. 17, 2020USD ($)subsidiary | Jul. 17, 2020 | Dec. 11, 2019USD ($)subsidiary | Sep. 14, 2014subsidiary | Sep. 12, 2014USD ($) | Dec. 31, 2020facilityitem | Dec. 31, 2020item | Dec. 31, 2020 | Dec. 31, 2020USD ($) | Oct. 24, 2017USD ($) |
Number Of Finance Lease Facility | 6 | 6 | ||||||||
Number Of Vessels Employed | item | 14 | |||||||||
Minimum [Member] | ||||||||||
Required Minimum Solvency Covenant | 30.00% | |||||||||
Required minimum cash and cash equivalents | $ 20.5 | |||||||||
Cash and Cash Equivalent Percentage | 5.00% | |||||||||
Fair market Value Percentage | 130.00% | |||||||||
Minimum Net Worth Required | $ 150 | |||||||||
NIBC Bank Facility [Member] | ||||||||||
Number of subsidiaries | subsidiary | 1 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 13.5 | |||||||||
NIBC Bank Facility [Member] | LIBOR [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.90% | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.90%. | |||||||||
Nordea SEB Joint Bank Facility [Member] | ||||||||||
Number of subsidiaries | subsidiary | 8 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | |||||||||
Debt Instrument Maturity Period | December 2024 | |||||||||
Nordea SEB Joint Bank Facility [Member] | Minimum [Member] | ||||||||||
Cash and Cash Equivalent Percentage | 60.00% | |||||||||
Nordea SEB Joint Bank Facility [Member] | LIBOR [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.4% | |||||||||
Nordea SEB Revolving Facility [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40 | |||||||||
Number of days to provide notice for draw down or repayment of debt | 5 days | |||||||||
ABN CACIB Joint Bank Facility [Member] | ||||||||||
Number of subsidiaries | subsidiary | 4 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 61.5 | |||||||||
Debt Instrument Maturity Period | December 2024 | |||||||||
ABN CACIB Joint Bank Facility [Member] | LIBOR [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.40% | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.4% | |||||||||
ABN AMRO Revolving Facility | ||||||||||
Debt Instrument Maturity Period | July 2022 | |||||||||
Renewal term | 2 years | |||||||||
Short-term Debt | $ 15 | |||||||||
Extension term | 2 years | |||||||||
ABN AMRO Revolving Facility | LIBOR [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.90% | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.9% | |||||||||
IYO Bank Facility | ||||||||||
Number of subsidiaries | subsidiary | 1 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10 | |||||||||
Debt Instrument Maturity Period | December 2025 | |||||||||
IYO Bank Facility | LIBOR [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.25% |
Finance Leases (Details)
Finance Leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 231,780,842 | $ 258,648,939 |
Amounts representing interest and deferred finance fees | (34,076,458) | (42,969,245) |
Finance lease obligations, net of interest and deferred finance fees | 197,704,384 | 215,679,694 |
Current portion of finance lease obligations | 19,084,775 | 18,650,022 |
Current portion of deferred finance fees | (630,553) | (674,700) |
Non-current portion of finance lease obligations | 181,250,674 | 200,335,437 |
Non-current portion of deferred finance fees | (2,000,512) | (2,631,065) |
Total finance lease obligations, net of deferred finance fees | 197,704,384 | 215,679,694 |
Japanese Leases No.1 and 2 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 26,531,100 | 31,398,900 |
Japanese Lease No.3 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 13,119,000 | 15,498,000 |
Japanese Lease No.4 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 21,949,099 | 23,983,699 |
CMBFL Leases No.1 to 4 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 72,459,942 | 79,896,836 |
Ocean Yield ASA [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | 55,729,620 | 61,153,740 |
China Huarong Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 41,992,081 | $ 46,717,764 |
Finance Leases - Future minimum
Finance Leases - Future minimum lease payments (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Leases | ||
2021 | $ 26,523,339 | |
2022 | 26,470,805 | |
2023 | 38,028,900 | |
2024 | 24,179,292 | |
2025 | 75,863,062 | |
2026 – 2030 | 40,715,444 | |
Finance lease obligations | 231,780,842 | $ 258,648,939 |
Amounts representing interest and deferred finance fees | (34,076,458) | (42,969,245) |
Finance lease obligations, net of interest and deferred finance fees | $ 197,704,384 | $ 215,679,694 |
Finance lease - Assets recorded
Finance lease - Assets recorded under finance leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Leases | ||
Vessels and vessel equipment, net of accumulated depreciation | $ 282,930,184 | $ 296,708,230 |
Deferred drydock expenditures, net of accumulated amortization | 2,751,781 | 4,419,417 |
Ballast water treatment systems, installation in progress | 2,141,135 | 221,277 |
Total finance lease asset | $ 287,823,100 | $ 301,348,924 |
Finance Leases - Additional Inf
Finance Leases - Additional Information (Details) $ in Millions | Nov. 30, 2018subsidiary | Oct. 25, 2018subsidiary | Jun. 26, 2018subsidiary | Jan. 30, 2018USD ($)subsidiary | May 30, 2017USD ($)subsidiary | Nov. 30, 2018 | Oct. 25, 2018 | Jun. 26, 2018 | Dec. 31, 2020facility | Dec. 31, 2020item | Dec. 31, 2020USD ($) | Dec. 31, 2019item |
Number Of Finance Lease Facility | 6 | 6 | ||||||||||
Number of vessel in operation | item | 12 | 12 | ||||||||||
Japanese Leases No.1 and 2 [Member] | ||||||||||||
Number of subsidiaries | 2 | |||||||||||
Sellers Credit Note | $ | $ 2.9 | $ 2.9 | ||||||||||
Japanese Leases No.1 and 2 [Member] | Other Noncurrent Assets [Member] | Finance Liability [Member] | ||||||||||||
Sellers Credit Note | $ | $ 2.9 | |||||||||||
Japanese Lease No.3 [Member] | ||||||||||||
Number of subsidiaries | 1 | |||||||||||
Sellers Credit Note | $ | $ 1.4 | |||||||||||
Japanese Lease No.3 [Member] | Other Noncurrent Assets [Member] | Finance Liability [Member] | ||||||||||||
Sellers Credit Note | $ | $ 1.4 | |||||||||||
Japanese Lease No.4 [Member] | ||||||||||||
Number of subsidiaries | 1 | |||||||||||
Finance Lease Expiry Period | 2029 | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.20% | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.20% | |||||||||||
CMBFL Leases No.1 to 4 [Member] | ||||||||||||
Number of subsidiaries | 2 | 2 | ||||||||||
Finance Lease Expiry Period | 2025 | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | 3.10% | ||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.00% | LIBOR plus 3.10% | ||||||||||
Ocean Yield ASA [Member] | ||||||||||||
Number of subsidiaries | 2 | |||||||||||
Finance Lease Expiry Period | 2030 | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 4.50% | |||||||||||
China Huarong Leases [Member] | ||||||||||||
Number of subsidiaries | 2 | |||||||||||
Finance Lease Expiry Period | 2025 | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 3.50% |
Operating leases (Details)
Operating leases (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Operating lease | ||||
Total operating lease, right of use asset | $ 1,662,510 | $ 1,745,464 | $ 1,745,464 | |
Current portion of operating lease obligations | 463,559 | 289,231 | 289,231 | |
Non-current portion of operating lease obligations | 1,034,218 | 1,182,522 | 1,182,522 | |
Present value of lease liabilities | 1,497,777 | $ 1,471,753 | ||
Total foreign exchange loss/(gain) on operating leases | $ (108,978) | $ 73,207 | $ 200,504 |
Operating leases - Maturity of
Operating leases - Maturity of operating lease liabilities (Details) - USD ($) | Dec. 31, 2020 | Jan. 01, 2018 |
Operating lease | ||
2021 | $ 473,361 | |
2022 | 299,029 | |
2023 | 269,859 | |
2024 | 273,082 | |
2025 | 277,062 | |
2026 | 46,959 | |
Total lease payments | 1,639,352 | |
Less imputed interest | (141,575) | |
Present value of lease liabilities | $ 1,497,777 | $ 1,471,753 |
Operating leases - Additional I
Operating leases - Additional Information (Details) | Dec. 31, 2020 |
Operating lease | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 7 months 6 days |
Interest Rate Swaps (Details)
Interest Rate Swaps (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Interest Rate Swaps | |
Interest rate swaps located in current portion of derivative liabilities | $ 397,418 |
Interest rate swaps located in non-current portion of derivative liabilities | $ 433,974 |
Interest Rate Swap | |
Interest Rate Swaps | |
Term of the interest rate swap agreements | 3 years |
Average fixed-rate interest (as a percent) | 0.32% |
Notional amount | $ 324,100,000 |
Interest Rate Swap | Not designated as hedging instrument | |
Interest Rate Swaps | |
Interest rate swaps located in current portion of derivative liabilities | 48,044 |
Interest rate swaps located in non-current portion of derivative liabilities | 54,212 |
Interest Rate Swap | Cash flow hedge | |
Interest Rate Swaps | |
Amount of reclassification adjustments related to the interest rate swaps | 80,000 |
Interest Rate Swap | Cash flow hedge | Designated as hedging instrument | |
Interest Rate Swaps | |
Notional amount | 273,300,000 |
Interest rate swaps located in current portion of derivative liabilities | 349,374 |
Interest rate swaps located in non-current portion of derivative liabilities | $ 379,762 |
Loss on sale of vessel (Details
Loss on sale of vessel (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Sales proceeds | $ 18,800,000 | ||
Net book value of vessel | (31,517,609) | ||
Sales related costs | (322,681) | ||
Debt termination costs and related finance fees | 121,902 | ||
Net loss on sale of vessel | (13,162,192) | ||
Proceeds from Sale of Property, Plant, and Equipment | 26,557,707 | ||
Ardmore Seamaster [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Sales proceeds | 9,700,000 | ||
Net book value of vessel | (15,979,901) | ||
Sales related costs | (223,178) | ||
Debt termination costs and related finance fees | 66,684 | ||
Net loss on sale of vessel | (6,569,763) | ||
Ardmore Seafarer [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Sales proceeds | 9,100,000 | ||
Net book value of vessel | (15,537,708) | ||
Sales related costs | (99,503) | ||
Debt termination costs and related finance fees | 55,218 | ||
Net loss on sale of vessel | $ (6,592,429) | ||
Ardmore Seatrader | |||
Property, Plant and Equipment [Line Items] | |||
Sales proceeds | $ 8,250,000 | ||
Net book value of vessel | (14,444,217) | ||
Sales related costs | (166,596) | ||
Net loss on sale of vessel | $ (6,360,813) | ||
Ardmore Seamariner | |||
Property, Plant and Equipment [Line Items] | |||
Sales proceeds | $ 10,000,000 | ||
Net book value of vessel | (16,342,309) | ||
Sales related costs | (105,000) | ||
Net loss on sale of vessel | $ (6,447,309) |
Interest expense and finance _3
Interest expense and finance costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest expense and finance costs | |||
Interest incurred – debt | $ 6,585,889 | $ 10,780,248 | $ 17,070,112 |
Interest incurred – finance leases | 9,737,294 | 13,419,326 | 5,667,420 |
Amortization of deferred finance fees | 1,765,271 | 2,023,279 | 2,400,621 |
Write-off of deferred finance fees in relation to refinancing | 536,901 | 2,267,455 | |
SWAP Interest | 79,701 | ||
Interest expense and finance costs | $ 18,168,155 | $ 26,759,754 | $ 27,405,608 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Domestic | |||
Current tax expenses | $ (199,446) | $ (58,766) | $ (162,923) |
Income tax expense for year | $ (199,446) | $ (58,766) | $ (162,923) |
Income taxes - Differences betw
Income taxes - Differences between income taxes (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes | |||
Bermuda statutory income tax rate | 0.00% | 0.00% | 0.00% |
Income subject to tax in other jurisdictions | 3.41% | 0.26% | 0.38% |
Effective tax rate | 3.41% | 0.26% | 0.38% |
Net loss per share and divide_3
Net loss per share and dividends per share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Net Loss | $ (6,046,195) | $ (22,861,257) | $ (42,939,001) |
Denominator: | |||
Weighted average number of shares outstanding (in shares) | 33,241,936 | 33,097,831 | 32,837,866 |
Loss per share, basic and diluted | $ (0.18) | $ (0.69) | $ (1.31) |
Net loss per share and divide_4
Net loss per share and dividends per share - Additional Information (Details) - USD ($) | Feb. 28, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,094,003 | 2,544,983 | 1,984,983 | |
Dividends Payable, Amount Per Share | $ 0.05 | |||
Payments of Dividends | $ 1,700,000 | $ 1,659,308 | ||
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 318,417 | 322,106 | 0 |
Related party transactions (Det
Related party transactions (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item | |
Related Party Transaction [Line Items] | ||
Percentage of ownership interest (as a percent) | 50.00% | |
Stock Repurchased During Period, Value | $ 286,856 | |
Anglo Ardmore Ship Management Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership interest (as a percent) | 50.00% | |
Number of vessels for which technical management services is provided | item | 17 | 16 |
Total management fees paid | $ 2,800,000 | $ 3,000,000 |
Amounts payable to related party | 3,000,000 | |
Amounts Due from(to) related party, Management Fees | 0 | 0 |
Advances made | 1,900,000 | $ 2,800,000 |
Anglo Ardmore Ship Management Limited [Member] | Accounts Payable [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts payable to related party | 2,200,000 | |
Anglo Ardmore Ship Management Limited [Member] | Other Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts payable to related party | $ 800,000 |
Share-based compensation - Stoc
Share-based compensation - Stock appreciation rights - Awards, simulation inputs, outputs (Details) - Stock appreciation rights - $ / shares | Mar. 04, 2020 | Mar. 07, 2019 | Apr. 04, 2018 | Jan. 15, 2016 | Mar. 06, 2015 | Sep. 01, 2014 | Mar. 12, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
SARs Awarded (in shares) | 549,020 | 560,000 | 1,719,733 | 205,519 | 37,797 | 5,595 | 22,118 |
Exercise Price (in dollars per share) | $ 5.25 | $ 5.10 | $ 7.40 | $ 9.20 | $ 10.25 | $ 13.91 | $ 13.66 |
Vesting Period (in years) | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years |
Grant Price (in dollars per share) | $ 5.25 | $ 5.10 | $ 7.40 | $ 9.20 | $ 10.25 | $ 13.91 | $ 13.66 |
Dividend Yield (in hundredths) | 0.00% | 0.00% | 0.00% | 6.63% | 3.90% | 2.88% | 2.93% |
Risk-free rate of Return (in hundredths) | 0.73% | 2.43% | 2.51% | 1.79% | 1.90% | 2.20% | 2.06% |
Expected Volatility (in hundredths) | 46.42% | 43.65% | 40.59% | 58.09% | 61.38% | 53.60% | 56.31% |
Weighted Average Fair Value at grant date (in dollars per share) | $ 2.04 | $ 2 | $ 2.67 | $ 2.20 | $ 2.98 | $ 4.20 | $ 4.17 |
Average Expected Exercise Life | 4 years 6 months | 4 years 6 months | 4 years 3 months | ||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Average Expected Exercise Life | 5 years | 5 years | 5 years | 5 years | |||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Average Expected Exercise Life | 4 years | 4 years 2 months 12 days | 4 years 6 months | 4 years 7 months 6 days |
Share-based compensation - St_2
Share-based compensation - Stock appreciation rights - Changes in SARs (Details) - Stock appreciation rights | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Balance, No. of Units (Beginning) | shares | 2,544,983 |
Balance, Weighted average exercise price (Begining) | $ / shares | $ 7.14 |
SARs granted during the year ended | shares | 549,020 |
SARs granted during the year ended | $ / shares | $ 5.25 |
SARs forfeited during the year ended | shares | 0 |
SARs forfeited during the year ended | $ / shares | $ 0 |
Balance, No. of Units (Ending) (none of which are exercisable or convertible) | shares | 3,094,003 |
Balance, Weighted average exercise price (Ending) | $ / shares | $ 6.80 |
Share-based compensation - St_3
Share-based compensation - Stock appreciation rights - Cost related to non-vested awards (Details) - Stock appreciation rights | Dec. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2021 | $ 746,667 |
2022 | 435,556 |
2023 | 62,222 |
Total | $ 1,244,445 |
Share-based compensation - Rest
Share-based compensation - Restricted stock units - Summary of awards (Details) - Restricted stock units - $ / shares | May 29, 2020 | Mar. 04, 2020 | May 28, 2019 | Mar. 07, 2019 | Jan. 02, 2019 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
SARs Awarded (in shares) | 78,510 | 94,105 | 59,237 | 86,210 | 176,659 | 172,615 |
Service Period | 1 year | 1 year | 3 years | 2 years | 3 years | |
Grant Price (in dollars per share) | $ 5.84 | $ 5.25 | $ 7.47 | $ 5.10 | $ 4.64 |
Share-based compensation - Re_2
Share-based compensation - Restricted stock units - Changes in RSUs (Details) - Restricted stock units - $ / shares | May 29, 2020 | Mar. 04, 2020 | May 28, 2019 | Mar. 07, 2019 | Jan. 02, 2019 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Balance as at the beginning | 322,106 | |||||
Balance as at the beginning, Weighted average fair value at grant date | $ 5.280 | |||||
Granted (in shares) | 78,510 | 94,105 | 59,237 | 86,210 | 176,659 | 172,615 |
Granted during the period, Weighted average fair value at grant date | $ 5.520 | |||||
RSUs vested (in shares) | (176,304) | |||||
RSUs vested during the period, Weighted average fair value at grant date | $ (5.670) | |||||
Balance as at the end (none of which are vested) | 318,417 | |||||
Balance as at the end (none of which are vested), Weighted average fair value at grant date | $ 5.190 |
Share-based compensation - Re_3
Share-based compensation - Restricted stock units - Cost related to non-vested awards (Details) - Restricted stock units | Dec. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2021 | $ 502,282 |
2022 | 189,110 |
2023 | 27,447 |
Total | $ 718,839 |
Share-based compensation - Divi
Share-based compensation - Dividend equivalent rights - Summary of awards (Details) - Dividend equivalent rights | Nov. 04, 2019$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SARs Awarded (in shares) | shares | 1,146,517 |
Service Period | 2 years |
Granted during the period, Weighted average fair value at grant date | $ / shares | $ 0.49 |
Dividend Yield (as a percent) | 2.93% |
Risk-free rate of Return (as a percent) | 2.06% |
Expected Volatility (as a percent) | 30.22% |
Share-based compensation - Di_2
Share-based compensation - Dividend equivalent rights - Changes in DERs (Details) - Dividend equivalent rights - $ / shares | Nov. 04, 2019 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as at the beginning | 1,146,517 | |
Balance as at the beginning, Weighted average fair value at grant date | $ 0.49 | |
Granted (in shares) | 1,146,517 | |
Granted during the period, Weighted average fair value at grant date | $ 0.49 | |
Balance as at the end (none of which are vested) | 1,146,517 | |
Balance as at the end (none of which are vested), Weighted average fair value at grant date | $ 0.49 |
Share-based compensation - Di_3
Share-based compensation - Dividend equivalent rights - Cost related to non-vested awards expected (Details) - Dividend equivalent rights | Dec. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2021 | $ 234,081 |
Total | $ 234,081 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Details) - shares | May 29, 2020 | Mar. 04, 2020 | Nov. 04, 2019 | May 28, 2019 | Mar. 07, 2019 | Jan. 02, 2019 | Apr. 04, 2018 | Jan. 15, 2016 | Mar. 06, 2015 | Sep. 01, 2014 | Mar. 12, 2014 | Dec. 31, 2020 |
Stock appreciation rights | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
SARs Awarded (in shares) | 549,020 | 560,000 | 1,719,733 | 205,519 | 37,797 | 5,595 | 22,118 | |||||
Restricted stock units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
SARs Awarded (in shares) | 78,510 | 94,105 | 59,237 | 86,210 | 176,659 | 172,615 | ||||||
Dividend equivalent rights | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
SARs Awarded (in shares) | 1,146,517 | |||||||||||
Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | Stock appreciation rights | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
SARs Awarded (in shares) | 3,099,782 | |||||||||||
RSUs forfeited (in shares) | 5,779 | |||||||||||
Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | Restricted stock units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
SARs Awarded (in shares) | 494,721 | |||||||||||
Equity Incentive Plan 2013 [Member] | Officers And Directors [Member] | Dividend equivalent rights | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
SARs Awarded (in shares) | 1,146,517 |
Repurchase of common stock (Det
Repurchase of common stock (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase plan | $ 30,000,000 | |||
Treasury stock, shares issued (in shares) | 2,020,053 | 1,921,401 | ||
Treasury stock, value | $ 15,635,765 | $ 15,348,909 | ||
Repurchase Plan [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Fees and commission cost of shares repurchased | $ 0.02 | |||
Weighted average price per share | $ 2.91 | |||
Treasury stock, value | $ 300,000 | |||
Board of Directors [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock, shares issued (in shares) | 98,652 | 0 | 0 |