Vessels

Vessel and Vessel Improvements

As of June 30, 2019, the Company’s owned operating fleet consisted of 45 drybulk vessels.

On May 2, 2019, the Company signed a memorandum of agreement to sell the vessel Thrasher for $9.8 million, after broker commissions and associated selling expenses. The vessel was delivered to the buyer in the second quarter of 2019. The Company recorded a gain of approximately $1.0 million in its condensed consolidated statements of operations for the three and six months ended June 30, 2019.

On January 4, 2019, the Company signed a memorandum of agreement to sell the vessel Merlin, a 2001 built Supramax, for $6.1 million, after brokerage commissions and associated selling expenses. The vessel was delivered to the buyers in the first quarter of 2019. The Company recorded a gain of approximately $1.9 million in its condensed consolidated statements of operations for the six months ended June 30, 2019.

On December 21, 2018, the Company signed a memorandum of agreement to acquire a 2015 built Ultramax vessel for $20.4 million and paid a deposit of $2.0 million in 2018. The Company took delivery of the vessel, the Cape Town Eagle, on January 11, 2019.

On December 13, 2018, the Company signed a memorandum of agreement to sell the vessel Condor, a 2001 built Supramax, for $6.1 million, after brokerage commissions and associated selling expenses. The vessel was delivered to the buyer in the first quarter of 2019. The Company recorded a gain of $2.2 million in its condensed consolidated statements of operations for the six months ended June 30, 2019.

On September 4, 2018, the Company entered into a series of agreements to purchase up to 37 Scrubbers, which are to be fitted on the Company's vessels. The agreements are comprised of firm orders for 19 Scrubbers and up to an additional 18 units, at the Company’s option. On November 20, 2018, the Company announced that it had exercised its option to purchase 15 of the 18 optional Scrubbers, and on January 23, 2019, the Company announced that it had exercised the remaining three options. The projected costs, including installation, is approximately $2.2 million per scrubber system. The Company intends to complete the installation of a majority of the 37 Scrubbers prior to January 1, 2020, which is the implementation date of the new sulphur emission cap regulation, as set forth by the International Maritime Organization (“IMO”). The Company recorded $41.8 million of scrubber system costs in Other assets in the Condensed Consolidated Balance Sheet as of June 30, 2019.

On August 14, 2018, the Company entered into a contract for the installation of ballast water treatment systems ("BWTS") on all of our owned vessels. The projected costs, including installation, is approximately $0.5 million per BWTS. The Company intends to complete the installation during scheduled drydockings. The Company recorded $3.2 million for BWTS in Other assets in the Condensed Consolidated Balance Sheet as of June 30, 2019.

Vessel and vessel improvements consist of the following:



Vessels and vessel improvements, at December 31, 2018	$	682,944,936
Advance paid for purchase of Cape Town Eagle at December 31, 2018	2,040,000
Purchase of Vessels and Vessel Improvements	18,477,740
Sale of vessel	(8,732,865		)
Vessel depreciation expense	(16,308,674		)
Vessels and vessel improvements, at June 30, 2019	$	678,421,137