Note 4 - Financial Statement Details

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Condensed Financial Statements [Text Block]

NOTE 4 — FINANCIAL STATEMENT DETAILS

The following is a reconciliation of cash, cash equivalents and restricted cash to the statement of cash flows:

	For the nine months ended September 30,
	2021		2020
(In thousands)	(unaudited)		(unaudited)
Cash and cash equivalents	$	155,562	$	129,647
Restricted cash		29,474		16,523
Total cash, cash equivalents and restricted cash as presented in the statement of cash flows	$	185,036	$	146,170

Restricted cash consists of the following:

	As of September 30, 2021		As of December 31, 2020
(In thousands)	(unaudited)
Federal Maritime Commission escrow	$	17,208	$	13,856
Credit card processor reserves		11,021		1,945
Certificates of deposit and other restricted securities		1,245		1,183
Total restricted cash	$	29,474	$	16,984

The Company’s prepaid expenses and other current assets consist of the following:

	As of September 30, 2021		As of December 31, 2020
(In thousands)	(unaudited)
Prepaid tour expenses	$	12,145	$	5,630
Prepaid marketing, commissions and other expenses		3,874		3,504
Prepaid client insurance		3,604		2,283
Prepaid air expense		3,161		3,817
Prepaid port agent fees		2,946		530
Prepaid corporate insurance		1,149		1,105
Prepaid income taxes		199		145
Total prepaid expenses	$	27,078	$	17,014

The Company’s accounts payable and accrued expenses consist of the following:

	As of September 30, 2021		As of December 31, 2020
	(unaudited)
(In thousands)
CERTS Grant	$	16,677	$	-
Accrued other expense		10,150		5,645
Accounts payable		8,778		5,285
Bonus compensation liability		4,193		2,963
Employee liability		4,115		3,495
Refunds and commissions payable		2,209		1,803
Travel certificate liability		870		870
Royalty payable		818		-
Accrued travel insurance expense		505		270
Income tax liabilities		2		2
Foreign currency forward contract liability		-		2,008
Total accounts payable and accrued expenses	$	48,317	$	22,341

During August 2021, the Company received a $21.0 million grant under the CERTS Act, which provided grants to eligible motorcoach, school bus, passenger vessel, and pilotage companies that have experienced annual revenue losses of 25 percent or more as result of COVID-19. The priority use of grant funds must be for payroll costs, though grants may be used for operating expenses and the repayment of debt accrued to maintain payroll. The Company is accounting for the grant as a current liability on its balance sheet, as any amounts not appropriately used within one year of the grant date must be returned to the U.S. Treasury and will recognize the grant in other income on the income statement as permitted expenses for the grant are incurred. During the three and nine months ended September 30, 2021, the Company recognized $4.4 million of the CERTS grant in other income for permitted payroll costs and ship operating expenses.

Loan Receivable

The Company’s loan receivable is recorded at amortized cost within other long-term assets. The Company reviewed its loan receivable for credit losses in connection with the preparation of its condensed consolidated financial statements for the period ended September 30, 2021. In evaluating the allowance for loan losses, the Company considered factors such as historical loss experience, the type and amount of loan, adverse situations that  may affect the borrower’s ability to repay and prevailing economic conditions. Based on these credit loss estimation and experience factors, the Company realized no allowance for loan loss for the three or nine months ended September 30, 2021. The following is a rollforward of the loan receivable balance:

	For the nine months ended September 30, 2021
(In thousands)	(unaudited)
Balance as of January 1, 2021	$	4,220
Adjustment for ship building expense		(390	)
Legal invoices deferred		43
Accrued interest		108
Amortization of deferred costs		(44	)
Balance as of September 30, 2021	$	3,937