Recent Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2021

Operating lease right-of-use assets and lease liabilities as of September 30, 2021 and December 31, 2020 are as follows:


Description	Location in Balance Sheet	September 30, 2021 (1)		December 31, 2020 (1)
Noncurrent assets:
Chartered-in contracts greater than 12 months	Operating lease right-of-use assets	$	20,712,287	$	6,207,253
Office leases	Operating lease right-of-use assets	2,133,410		1,333,618
Operating lease right-of-use assets		$	22,845,697	$	7,540,871

Liabilities:
Chartered-in contracts greater than 12 months	Current portion of operating lease liabilities	$	20,451,549	$	6,974,943
Office leases	Current portion of operating lease liabilities	642,760		640,428
Lease liabilities - current portion		$	21,094,309	$	7,615,371

Chartered-in contracts greater than 12 months	Noncurrent portion of operating lease liabilities	$	253,970	$	—
Office leases	Noncurrent portion of operating lease liabilities	$	1,490,649	$	686,422
Lease liabilities - noncurrent portion		$	1,744,619	$	686,422

(1) The Operating lease right-of-use assets and Operating lease liabilities represent the present value of lease payments for the remaining term of the lease. The discount rate used ranged from 1.33% to 6.08%. The weighted average discount rate used to calculate the lease liability was 1.67%.

Charter Hire Expense

The table below presents the components of the Company’s lease expenses and sublease income on a gross basis earned from chartered-in contracts greater than 12 months for the three and nine months ended September 30, 2021 and 2020.


		Three Months Ended				Nine Months Ended
Description	Location in Statement of Operations	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Lease expense for chartered-in contracts less than 12 months	Charter hire expenses	$	5,856,694	$	2,560,224	$	13,511,509	$	6,348,081
Lease expense for chartered-in contracts greater than 12 months	Charter hire expenses	4,867,043		2,500,279		11,861,992		9,472,728
	Total charter hire expenses	$	10,723,737	$	5,060,503	$	25,373,501	$	15,820,809

Lease expense for office leases	General and administrative expenses	188,880		185,525		465,269		548,349

Sublease income from chartered-in contracts greater than 12 months *	Revenues, net	$	7,550,105	$	1,308,833	$	14,303,242	$	6,598,871

* The sublease income represents only time charter revenue earned on the chartered-in contracts with terms more than 12 months. There is additional revenue earned from voyage charters on the same chartered-in contracts which is recorded in Revenues, net in our Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020.

Future Minimum Lease Payments

The table below provides the total amount of remaining lease payments on an undiscounted basis on our chartered-in contracts and office leases greater than 12 months as of September 30, 2021:


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

Discount rate upon adoption	5.37		%	5.80		%	5.48		%

Three months ending December 31, 2021	$	5,675,982		$	176,751		$	5,852,733
2022	15,096,117			748,243			15,844,360
2023	—			510,074			510,074
2024	—			265,922			265,922
2025	—			265,195			265,195
2026	—			265,195			265,195
2027	—			53,766			53,766
	$	20,772,099		$	2,285,146		$	23,057,245

Present value of lease liability

Lease liabilities - short term	$	20,451,549		$	642,760		$	21,094,309
Lease liabilities - long term	253,970			1,490,649			1,744,619
Total lease liabilities	$	20,705,519		$	2,133,409		$	22,838,928

Discount based on incremental borrowing rate	$	66,580		$	151,737		$	218,317

Disaggregation of Revenue

The following table shows the revenues earned from time charters and voyage charters for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020

Time charters	$	91,652,577	$	25,279,434	$	180,385,272	$	73,798,878
Voyage charters	91,740,123		42,902,867		229,430,182		126,153,526
	$	183,392,700	$	68,182,301	$	409,815,454	$	199,952,404