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Significant Accounting Policies Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Reconciliation of Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents and restricted cash within the Consolidated Balance Sheets that sum to the total amounts shown in the Consolidated Statements of Cash Flows:


	December 31, 2019		December 31, 2018

Cash and cash equivalents	$	53,583,898	$	67,209,753
Restricted cash - current	5,471,470		—
Restricted cash - noncurrent	74,917		10,953,885
	$	59,130,285	$	78,163,638

Assets And Liabilities, Lease

Operating lease right-of-use assets and lease liabilities as of December 31, 2019 and January 1, 2019 are as follows:


Description	Location in Balance Sheet	December 31, 2019		January 1, 2019 ⁽²⁾
Non current assets:
Chartered-in contracts greater than 12 months ^{(1) (3)}	Operating lease right-of-use assets	$	18,442,965	$	26,144,409
Office leases	Operating lease right-of-use assets	1,967,072		2,560,593
		$	20,410,037	$	28,705,002
Liabilities:
Chartered-in contracts greater than 12 months ⁽³⁾	Current portion of operating lease liabilities	$	12,622,524	$	13,802,149
Office leases	Current portion of operating lease liabilities	633,454		693,203
Lease liabilities - current portion		$	13,255,978	$	14,495,352

Chartered-in contracts greater than 12 months ⁽³⁾	Operating lease liabilities	$	6,974,943	$	14,160,374
Office leases	Operating lease liabilities	1,326,850		1,867,390
Lease liabilities - non current portion		$	8,301,793	$	16,027,764

Charter Hire Expense

The table below presents the components of the Company’s lease expenses and sub-lease income on a gross basis earned from chartered-in contracts greater than 12 months for the year ended December 31, 2019:

Description

Location in Statement of Operations

For the Year Ended
December 31, 2019

Lease expense for chartered-in contracts less than 12 months

Charter hire expenses

28,805,970

Lease expense for chartered-in contracts greater than 12 months

Charter hire expenses

13,362,672

Total charter hire expenses

42,168,642

Lease expense for office leases

General and administrative expenses

719,698

Sub lease income from chartered-in contracts greater than 12 months *

Revenues, net

10,259,768

* The sub-lease income represents only time charter revenue earned on the chartered-in contracts greater than 12 months. There is additional revenue of $5.6 million earned from voyage charters on the same chartered-in contracts which is recorded in Revenues, net in our Consolidated Statement of Operations for the year ended December 31, 2019. Additionally, there is revenue earned from time charters from chartered-in contracts less than 12 months which is included in Revenues, net in our Consolidated Statements of Operations for the year ended December 31, 2019.

Future Minimum Lease Payments

The table below provides the total amount of lease payments on an undiscounted basis on our time chartered-in contracts and office leases greater than 12 months as of December 31, 2019:


Year	Chartered-in contracts greater than 12 months			Office leases			Total Operating leases

Discount rate upon adoption ⁽¹⁾	5.37		%	5.80		%	5.48		%

2020	$	13,284,425		$	733,874		$	14,018,299
2021	6,982,810			700,257			7,683,067
2022	—			483,048			483,048
2023	—			244,878			244,878
	20,267,235			2,162,057			22,429,292

Present value of lease liability	19,597,467			1,960,304			21,557,771

Lease liabilities - short term	12,622,524			633,454			13,255,978
Lease liabilities - long term	6,974,943			1,326,850			8,301,793
Total lease liabilities	19,597,467			1,960,304			21,557,771

Discount based on incremental borrowing rate	$	669,768		$	201,753		$	871,521

(1) Discount rate upon adoption does not include the discount rate on the lease modification on December 25, 2019. The discount rate used for calculation of the right-of-use asset and the related lease liability on December 25, 2019 was 2.806%.

Schedule of Future Minimum Rental Payments for Operating Leases

The future minimum commitments under the leases for office space as of December 31, 2018 are as follows:


2019	$	714,794
2020	728,212
2021	707,630
2022	483,048
2023	244,878
Total	$	2,878,562

Disaggregation of Revenue

The following table shows the revenues earned from time charters and voyage charters for the years ended December 31, 2019 and 2018:


	For the Years Ended
	December 31, 2019		December 31, 2018

Time charters	$	128,142,708	$	140,006,570
Voyage charters	164,234,930		170,087,688
	$	292,377,638	$	310,094,258