Our principal financial assets consist of cash and cash equivalents, investment securities, amounts due from related parties, derivative instruments, and trade accounts receivable. Our principal financial liabilities consist of long-term debt, accounts payable, amounts due to related parties, and accrued liabilities.

(1)	Reduces quarterly with a final settlement of $95.2 million in March 2025.

(2)	Reduces by quarterly with a final settlement of $23.8 million in March 2025.

(3)	Settled in March 2022.

(c)

Fair value measurements: Interest rate swaps are stated at fair value, which is determined using a discounted cash flow approach based on market‑based LIBOR swap yield rates. LIBOR swap rates are observable at commonly quoted intervals for the full terms of the swaps and, therefore, are considered Level 2 items in accordance with the fair value hierarchy. The fair value of the interest rate swap agreements approximates the amount that we would have to pay or receive for the early termination of the agreements.

Additionally, we have taken positions in freight forward agreements (“FFAs”) as economic hedges to reduce the risk related to vessels trading in the spot market, including in the Helios Pool, and to take advantage of fluctuations in market prices. Customary requirements for trading FFAs include the maintenance of initial and variation margins based on expected volatility, open position and mark-to-market of the contracts. FFAs are recorded as assets/liabilities until they are settled. Changes in fair value prior to settlement are recorded in unrealized gain/(loss) on derivatives. Upon settlement, if the contracted charter rate is less than the average of the rates for the specified route and time period, as reported by an identified index, the seller of the FFA is required to pay the buyer the settlement sum, being an amount equal to the difference between the contracted rate and the settlement rate, multiplied by the number of days in the specified period covered by the FFA. Conversely, if the contracted rate is greater than the settlement rate, the buyer is required to pay the seller the settlement sum. Settlement of FFAs is recorded in realized gain/(loss) on derivatives. FFAs are considered Level 2 items in accordance with the fair value hierarchy. We had no outstanding FFAs as of March 31, 2022 and 2021.

The following table summarizes the location on the balance sheet of the financial assets and liabilities that are carried at fair value on a recurring basis, which comprise our financial derivatives all of which are considered Level 2 items in accordance with the fair value hierarchy:


		March 31, 2022				March 31, 2021
	Current assets		Current liabilities		Current assets		Current liabilities
Derivatives not designated as hedging instruments	Derivative instruments		Derivative instruments		Derivative instruments		Derivative instruments
Interest rate swap agreements	$	—	$	—	$	—	$	1,100,529

		March 31, 2022				March 31, 2021
	Other non-current assets		Long-term liabilities		Other non-current assets		Long-term liabilities
Derivatives not designated as hedging instruments	Derivative instruments		Derivative instruments		Derivative instruments		Derivative instruments
Interest rate swap agreements	$	6,512,479	$	—	$	—	$	3,454,862

The effect of derivative instruments within the consolidated statement of operations for the periods presented is as follows:


		Year ended
Derivatives not designated as hedging instruments	Location of gain/(loss) recognized	March 31, 2022		March 31, 2021		March 31, 2020
Forward freight agreements—change in fair value	Unrealized gain/(loss) on derivatives	$	—	$	2,605,442	$	(2,605,442)
Interest rate swaps—change in fair value	Unrealized gain/(loss) on derivatives		11,067,870		4,597,438		(15,601,327)
Forward freight agreements—realized gain/(loss)	Realized loss on derivatives		—		(788,670)		396,894
Interest rate swaps—realized gain/(loss)	Realized loss on derivatives		(3,450,443)		(3,779,363)		2,403,480
Gain/(loss) on derivatives, net		$	7,617,427	$	2,634,847	$	(15,406,395)

As of March 31, 2022 and March 31, 2021, no fair value measurements for assets or liabilities under Level 1 or Level 3 were recognized in the consolidated balance sheets with the exception of cash and cash equivalents, restricted cash, and securities. We did not have any assets or liabilities measured at fair value on a non-recurring basis during the years ended March 31, 2022, 2021 and 2020.

(d)

Book values and fair values of financial instruments. In addition to the derivatives that we are required to record at fair value on our balance sheet (see (c) above) and securities that are included in other current assets in our balance sheet that we record at fair value, we have other financial instruments that are carried at historical cost. These financial instruments include trade accounts receivable, amounts due from related parties, cash and cash equivalents, restricted cash, accounts payable, amounts due to related parties and accrued liabilities for which the historical carrying value approximates the fair value due to the short-term nature of these financial instruments. Cash and cash equivalents, restricted cash and investment securities are considered Level 1 items.

The summary of gains and losses on our investment securities included in other gain/(loss), net on our consolidated statements of operations for the periods presented is as follows:


	Year ended
	March 31, 2022		March 31, 2021		March 31, 2020
Unrealized gain/(loss) on investment securities	$	(1,587,090)	$	1,317,890	$	1,288,304
Less: Realized gain/(loss) on investment securities		447,255		295		1,281,671
Net gain/(loss) on investment securities	$	(1,139,835)	$	1,317,595	$	6,633

We have long-term bank debt and the Cresques Japanese Financing for which we believe the carrying value approximates their fair value as the loans bear interest at variable interest rates, being LIBOR, which is observable at commonly quoted intervals for the full terms of the loans, and hence are considered as Level 2 items in accordance with the fair value hierarchy. We have long-term debt related to the Corsair Japanese Financing, Concorde Japanese Financing, Corvette Japanese Financing, Cratis Japanese Financing, Copernicus Japanese Financing, Chaparral Japanese Financing, and Caravelle Japanese Financing (collectively, along with the CMNL/CJNP Japanese Financing and CNML Japanese Financing that were repaid, the “Japanese Financings”) that incur interest at a fixed-rate. We have long-term debt related to the BALCAP Facility that incurs interest at a fixed-rate. The Japanese Financings and BALCAP Facility are considered Level 2 items in accordance with the fair value hierarchy and the fair value of each is based on a discounted cash flow analysis using current observable interest rates. The following table summarizes the carrying value and estimated fair value of our fixed rate debt obligations as of:


	March 31, 2022				March 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Corsair Japanese Financing	$	37,645,833	$	36,904,683	$	40,895,833	$	44,298,064
Concorde Japanese Financing		42,269,231		41,352,417		45,500,000		49,791,680
Corvette Japanese Financing		42,807,692		41,862,894		46,038,462		50,376,434
CMNL/CJNP Japanese Financing		—		—		16,706,845		18,792,993
CNML Japanese Financing		—		—		18,855,655		21,195,305
Cratis Japanese Financing		49,660,000		46,716,277		—		—
Copernicus Japanese Financing		49,660,000		46,716,277		—		—
Chaparral Japanese Financing		64,662,242		64,321,963		—		—
Caravelle Japanese Financing		49,700,000		46,792,400		—		—
BALCAP Facility	$	81,574,172	$	77,063,912	$	—	$	—