10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-36139

PANGAEA LOGISTICS SOLUTIONS LTD.

(Exact name of Registrant as specified in its charter)

Bermuda	98-1205464
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

c/o Phoenix Bulk Carriers (US) LLC

109 Long Wharf

Newport, RI 02840

(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (401) 846-7790

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES    x                 NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES  x                  NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): 

Large accelerated Filer  ¨ Accelerated Filer ¨ Non-accelerated Filer ¨ Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES       ¨              NO     x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock, par value $0.01 per share, 44,063,986 shares outstanding as of August 7, 2018.

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of June 30, 2018 (unaudited) and December 31, 2017	3
	Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2018 and 2017	4
	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2018 and 2017	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risks	27
Item 4.	Controls and Procedures	27
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	29
Signatures

2

Pangaea Logistics Solutions Ltd.

Consolidated Balance Sheets

	June 30, 2018			December 31, 2017
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	48,919,920		$	34,531,812
Accounts receivable (net of allowance of $1,705,439 at June 30, 2018 and $2,135,877 December 31, 2017)	18,382,716			21,089,425
Bunker inventory	17,390,678			15,356,712
Advance hire, prepaid expenses and other current assets	15,162,115			12,032,272
Total current assets	99,855,429			83,010,221
Restricted cash	3,500,000			4,000,000
Fixed assets, net	288,646,672			306,292,655
Vessels under capital lease	42,376,967			29,994,212
Total assets	$	434,379,068		$	423,297,088
Liabilities and stockholders' equity
Current liabilities
Accounts payable, accrued expenses and other current liabilities	$	29,967,379		$	29,181,276
Related party debt	4,522,371			7,009,597
Deferred revenue	9,028,015			5,815,924
Current portion of secured long-term debt	17,319,091			18,979,335
Current portion of capital lease obligations	3,464,880			1,785,620
Dividend payable	6,333,598			7,238,401
Total current liabilities	70,635,334			70,010,153
Secured long-term debt, net	107,094,208			117,615,634
Obligations under capital lease	35,321,460			25,015,659
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.0001 par value, 1,000,000 shares authorized and no shares issued or outstanding	—			—
Common stock, $0.0001 par value, 100,000,000 shares authorized; 44,063,986 shares issued and outstanding at June 30, 2018; 43,794,526 shares issued and outstanding at December 31, 2017	4,406			4,379
Additional paid-in capital	155,631,206			154,943,728
Accumulated deficit	(1,921,804		)	(9,596,785		)
Total Pangaea Logistics Solutions Ltd. equity	153,713,808			145,351,322
Non-controlling interests	67,614,258			65,304,320
Total stockholders' equity	221,328,066			210,655,642
Total liabilities and stockholders' equity	$	434,379,068		$	423,297,088

The accompanying notes are an integral part of these consolidated financial statements

3

Pangaea Logistics Solutions Ltd.

Consolidated Statements of Operations

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues:
Voyage revenue	$	81,847,649		$	80,231,015		$	152,166,843		$	157,919,464
Charter revenue	14,975,553			11,192,763			23,629,652			17,959,435
	96,823,202			91,423,778			175,796,495			175,878,899
Expenses:
Voyage expense	38,027,489			38,597,148			68,195,517			79,869,067
Charter hire expense	30,683,892			33,174,063			53,379,827			56,375,218
Vessel operating expense	10,046,709			9,074,357			19,895,874			17,665,599
General and administrative	4,378,671			3,141,276			8,506,969			6,656,040
Depreciation and amortization	4,391,069			3,711,712			8,729,257			7,653,507
Loss on sale and leaseback of vessels	860,426			4,915,044			860,426			9,205,042
Total expenses	88,388,256			92,613,600			159,567,870			177,424,473
Income (loss) from operations	8,434,946			(1,189,822		)	16,228,625			(1,545,574		)
Other (expense) income:
Interest expense, net	(2,091,989		)	(2,244,110		)	(4,152,725		)	(3,875,098		)
Interest expense on related party debt	(53,914		)	(78,846		)	(117,373		)	(156,825		)
Unrealized gain (loss) on derivative instruments, net	553,701			(1,476,380		)	(8,904		)	490,007
Other income	30,000			813,356			458,332			908,006
Total other expense, net	(1,562,202		)	(2,985,980		)	(3,820,670		)	(2,633,910		)
Net income (loss)	6,872,744			(4,175,802		)	12,407,955			(4,179,484		)
(Income) loss attributable to non-controlling interests	(1,099,721		)	(561,379		)	(2,309,938		)	789,146
Net income (loss) attributable to Pangaea Logistics Solutions Ltd.	$	5,773,023		$	(4,737,181	)	$	10,098,017		$	(3,390,338	)
Earnings per common share:
Basic	$	0.14		$	(0.13	)	$	0.24		$	(0.10	)
Diluted	$	0.13		$	(0.13	)	$	0.24		$	(0.10	)
Weighted average shares used to compute earnings per common share:
Basic	42,252,552			35,539,186			42,259,594			35,411,060
Diluted	42,763,925			35,539,186			42,632,688			35,411,060

The accompanying notes are an integral part of these consolidated financial statements

4

Pangaea Logistics Solutions, Ltd.

Consolidated Statements of Cash Flows

(unaudited)

	Six Months Ended June 30,
	2018			2017
Operating activities
Net income (loss)	$	12,407,955		$	(4,179,484	)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization expense	8,729,257			7,653,507
Amortization of deferred financing costs	331,061			368,387
Amortization of prepaid rent	60,968			60,969
Unrealized loss (gain) on derivative instruments	8,904			(490,007		)
Gain from equity method investee	(90,000		)	(194,612		)
Provision for doubtful accounts	(148,458		)	(10,356		)
Loss on sale of vessel	860,426			9,134,908
Drydocking costs	(1,497,979		)	(754,120		)
Recognized cost for restricted stock issued as compensation	839,396			677,936
Change in operating assets and liabilities:
Accounts receivable	2,855,167			(6,166,383		)
Bunker inventory	(2,033,966		)	(1,741,848		)
Advance hire, prepaid expenses and other current assets	(844,650		)	(3,343,536		)
Accounts payable, accrued expenses and other current liabilities	844,340			6,853,566
Deferred revenue	(1,516,665		)	482,485
Net cash provided by operating activities	20,805,756			8,351,412
Investing activities
Purchase of vessels and vessel improvements	(2,517,355		)	(46,846,313		)
Purchase of building and equipment	(360,286		)	(16,775		)
Proceeds from sale of equipment	31,594			—
Purchase of non-controlling interest in consolidated subsidiary	—			(832,572		)
Net cash used in investing activities	(2,846,047		)	(47,695,660		)
Financing activities
Payments of related party debt	(2,487,226		)	—
Proceeds from long-term debt	—			25,000,000
Payments of financing and issuance costs	(367,052		)	(876,542		)
Payments of long-term debt	(12,145,694		)	(15,723,929		)
Proceeds from sale and leaseback of vessel	13,000,000			28,000,000
Payments of capital lease obligations	(1,014,939		)	(344,733		)
Dividends paid to non-controlling interests	(904,803		)	—
Cash paid for incentive compensation shares relinquished	(101,075		)	—
Proceeds from private placement of common stock, net of issuance costs	(50,812		)	8,302,985
Net cash (used in) provided by financing activities	(4,071,601		)	44,357,781
Net increase in cash, cash equivalents and restricted cash	13,888,108			5,013,533
Cash, cash equivalents and restricted cash at beginning of period	38,531,812			28,422,949
Cash, cash equivalents and restricted cash at end of period	$	52,419,920		$	33,436,482
Supplemental cash flow information and disclosure of noncash items
Cash paid for interest	$	3,809,699		$	3,022,756
Conversion of related party debt to noncontrolling interest	$	—		$	9,278,800

The accompanying notes are an integral part of these consolidated financial statements

5

Note 1. General Information

The accompanying consolidated financial statements include the accounts of Pangaea Logistics Solutions Ltd. and its consolidated subsidiaries (collectively, the “Company”, “we” or “our”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership, chartering and operation of drybulk vessels. The Company is a holding company incorporated under the laws of Bermuda as an exempted company on April 29, 2014.

The Company owns two Panamax, two Ultramax Ice Class 1C, six Supramax, and two Handymax Ice Class 1A drybulk vessels. The Company also owns one-third of Nordic Bulk Holding Company Ltd. (“NBHC”), a consolidated joint venture with a fleet of six Panamax Ice Class 1A drybulk vessels and has a 50% interest in the owner of a deck barge. The Company made a deposit on and expects to take delivery of a Panamax in the third quarter of 2018.

Note 2. Basis of Presentation and Significant Accounting Policies

The accompanying consolidated balance sheets as of June 30, 2018 and 2017, the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 and the consolidated statements of cash flows for the six months ended June 30, 2018 and 2017 are unaudited. The unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position as of June 30, 2018 and December 31, 2017, and its results of operations and cash flows for the three and six months ended June 30, 2018 and 2017. The financial data and the other information disclosed in these notes to the consolidated financial statements related to these three and six month periods are unaudited. Certain information and disclosures included in the annual consolidated financial statements have been omitted for the interim periods pursuant to the rules and regulations of the SEC. The results for three and six months ended June 30, 2018 and 2017 are not necessarily indicative of the results for the year ending December 31, 2018 or for any other interim period or future years.

 The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates and assumptions of the Company are the estimated fair value used in determining loss on sale and leaseback of vessel, the estimated future cash flows used in its impairment analysis, the estimated salvage value used in determining depreciation expense and the allowances for doubtful accounts.

Advance hire, prepaid expenses and other current assets were comprised of the following: 

	June 30, 2018		December 31, 2017
	(unaudited)
Advance hire	$	8,294,453	$	3,628,417
Prepaid expenses	835,423		460,445
Accrued receivables	4,429,108		6,153,212
Other current assets	1,603,131		1,790,198
	$	15,162,115	$	12,032,272

6

Accounts payable, accrued expenses and other current liabilities were comprised of the following:

	June 30, 2018		December 31, 2017
	(unaudited)
Accounts payable	$	21,555,260	$	15,686,235
Accrued voyage expenses	6,482,350		11,923,445
Accrued interest	560,740		611,406
Other accrued liabilities	1,369,029		960,190
	$	29,967,379	$	29,181,276

Significant Accounting Policies Update

Our significant accounting policies are included in Note 3 of our Annual Report on Form 10-K for the year ended December 31, 2017.  On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606).  The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As the Company’s performance obligations are transportation services which are received and consumed by its customers as it performs such services, revenues are recognized over time using the input method, proportionate to the days elapsed since the service commencement compared to the total days anticipated to complete the service. The Company believes that this method provides a faithful depiction of the satisfaction of its performance obligation. After analyzing its contracts with customers for each significant revenue stream, the Company determined that revenue from vessels operating on time charter will not change significantly from previous practice, which is to recognize revenue ratably over the periods of such charters. Payment on time charters is made in advance. Under the new standard, voyage revenue is recognized over the period between load port and discharge port. In addition, certain costs to fulfill contracts for voyages for which loading has not commenced are recognized as assets and amortized pro rata over the period between load and discharge. The payment terms on voyage charters is within five days of cargo loading. Costs to obtain a contract are expensed as incurred, as provided by a practical expedient, since all such costs are expected to be amortized over less than one year. The Company adopted ASC 606 using the modified retrospective transition method applied to voyage contracts that were not substantially complete at the end of 2017.  The Company recorded a $2.4 million adjustment to decrease retained earnings at the beginning of 2018, which reflects the cumulative impact of adopting this standard. Comparative financial statements have not been restated and are reported under the accounting standards in effect for those periods. 

7

A reconciliation as of and for the six months ended June 30, 2018 under ASC 606 to the prior accounting standards, for each of the financial statement line items impacted, is provided below:

	As of June 30, 2018
Consolidated Balance Sheets	As Reported		Effect of ASC 606 Adoption		Under Prior Accounting
Advance hire, prepaid expenses and other current assets	15,162,115		1,668,595		13,493,520
Total current assets	99,855,429		1,668,595		98,186,834
Total assets	434,379,068		1,668,595		432,710,473
Deferred revenue	9,028,015		2,026,544		7,001,471
Total current liabilities	70,635,334		2,026,544		68,608,790
Accumulated deficit	(1,921,804	)	(357,949	)	(1,563,855	)
Total liabilities and stockholders' equity	434,379,068		1,668,595		432,710,473
	For the Six Months Ended June 30, 2018
Consolidated Statements of Cash Flows	As Reported		Effect of ASC 606 Adoption		Under Prior Accounting
Net Income	12,407,955		2,065,086		10,342,869
Change in operating assets and liabilities:
Advance hire, prepaid expenses and other current assets	(844,650	)	637,125		(1,481,775	)
Deferred Revenue	(1,516,665	)	(2,702,211	)	1,185,546

	For the Three Months Ended June 30, 2018				For the Six Months Ended June 30, 2018
Consolidated Statements of Operations	As Reported	Effect of ASC 606 Adoption		Under Prior Accounting	As Reported	Effect of ASC 606 Adoption	Under Prior Accounting
Voyage revenue	81,847,649	98,286		81,749,363	152,166,843	2,702,211	149,464,632
Total revenues	96,823,202	98,286		96,724,916	175,796,495	2,702,211	173,094,284
Voyage expense	38,027,489	(170,093	)	38,197,582	68,195,517	86,233	68,109,284
Charter hire expense	30,683,892	(139,186	)	30,823,078	53,379,827	550,892	52,828,935
Total Expenses	88,388,256	(309,279	)	88,697,535	159,567,870	637,125	158,930,745
Income from Operations	8,434,946	407,565		8,027,381	16,228,625	2,065,086	14,163,539
Net Income	6,872,744	407,565		6,465,179	12,407,955	2,065,086	10,342,869
Net income attributable to Pangaea Logistics Solutions Ltd.	5,773,023	407,565		5,365,458	10,098,017	2,065,086	8,032,931
Earnings per common share, basic	0.14	0.01		0.13	0.24	0.05	0.19
Earnings per common share, diluted	0.13	0.01		0.12	0.24	0.05	0.19

Assets and liabilities related to our voyage contracts with customers are reported on a contract-by-contract basis at the end of each reporting period.  Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains reserves against its accounts receivable for potential credit losses. Credit losses recognized on accounts receivable were immaterial for the three and six-month periods ended June 30, 2018 and 2017, respectively. Other contract assets include unbilled revenue which arises when revenue is recognized in advance of billing for certain voyage contracts. Contract liabilities consist of deferred revenue which arises when amounts are billed to or collected from customers in advance of revenue recognition.

ASC 606 requires the recognition of an asset for costs to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed to voyage expenses as we satisfy our performance obligations. These costs consist primarily of bunker and charter hire costs incurred prior to loading and

8

are amortized pro rata over the period between load and discharge.  At June 30, 2018 and January 1, 2018 deferred contract fulfillment costs amounted to $1.7 million and $2.3 million, respectively, and are classified within advance hire, prepaid expenses and other current assets on the consolidated balance sheets.  For the three and six months ended June 30, 2018, we recognized expense of $1.4 million and $3.7 million, respectively, associated with the amortization of deferred contract costs.    

Under ASC 606, deferred revenue represents the consideration received for undelivered performance obligations. The Company recorded an additional $4.7 million and $2.0 million of deferred revenue on voyages in progress as of January 1, 2018 and June 30, 2018, respectively, due to the adoption of ASC 606.

All voyages that were not substantially complete on March 31, 2018 were completed during the three months ended June 30, 2018, therefore, all related voyage contract liabilities were recognized as revenue in the quarter.

On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows (ASC 230). The amendments in this update provide guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows, thereby reducing the diversity in practice. Specifically, this update addresses how to classify and present changes in restricted cash or restricted cash equivalents that occur when there are transfers between cash, cash equivalents, and restricted cash or restricted cash equivalents and when there are direct cash receipts into restricted cash or restricted cash equivalents or direct cash payments made from restricted cash or restricted cash equivalents. The new standard became effective for the Company on January 1, 2018. The amendments in this update were applied using a retrospective transition method to each period presented.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows:

	June 30, 2018		December 31, 2017
Cash and cash equivalents	$	48,919,920	$	34,531,812
Restricted cash	3,500,000		4,000,000
Total cash, cash equivalents and restricted cash	$	52,419,920	$	38,531,812

Cash and cash equivalents include short-term deposits with an original maturity of less than three months. Restricted cash at June 30, 2018 and December 31, 2017 consists of $1.0 million and $1.5 million, respectively, held by the facility agent as required by the The Senior Secured Post-Delivery Term Loan Facility and $2.5 million held by the facility agent as required by the Bulk Nordic Odin Ltd., Bulk Nordic Olympic Ltd. Bulk Nordic Odyssey Ltd., Bulk Nordic Orion Ltd. and Bulk Nordic Oshima Ltd. – Dated September 28, 2015 - Amended and Restated Loan Agreement.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued an ASU 2016-02, Accounting Standards Update for Leases. The update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The Company does not typically enter into charters for terms exceeding six months. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial statements as it will apply the practical expedient for leases less than one year in duration, which accounts for substantially all of its leases.

In August 2017, the FASB issued an ASU 2017-12 Accounting Standards Update for Derivatives and Hedging. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted in any interim period after issuance of the update. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained

9

earnings as of the beginning of the fiscal year that an entity adopts the amendments in this update. The amended presentation and disclosure guidance is required only prospectively. The Company does not expect adoption of this guidance to have a material impact on its financial statements.

Note 3. Fixed Assets

At June 30, 2018, the Company owned eighteen dry bulk vessels including three financed under capital leases; and one barge. The carrying amounts of these vessels, including unamortized drydocking costs, are as follows: 

	June 30,		December 31,
	2018		2017
Owned vessels	(unaudited)
m/v BULK PANGAEA	$	15,670,750	$16,398,650
m/v BULK PATRIOT	10,468,963		11,111,437
m/v BULK JULIANA	10,999,480		11,411,052
m/v NORDIC ODYSSEY	24,959,120		25,634,743
m/v NORDIC ORION	25,781,699		26,467,928
m/v BULK TRIDENT	—		14,195,098
m/v BULK NEWPORT	14,475,047		13,139,242
m/v NORDIC BARENTS	4,611,450		4,846,522
m/v NORDIC BOTHNIA	4,559,934		4,787,388
m/v NORDIC OSHIMA	29,510,052		30,122,172
m/v NORDIC ODIN	29,935,017		30,548,435
m/v NORDIC OLYMPIC	29,761,407		30,371,285
m/v NORDIC OASIS	30,994,718		31,608,785
m/v BULK ENDURANCE	26,525,712		27,030,918
m/v BULK FREEDOM	8,650,902		8,834,746
m/v BULK PRIDE	13,806,726		14,007,731
m/v BULK PODS (1)	2,137,500		—
MISS NORA G PEARL	2,583,577		2,695,145
	285,432,054		303,211,277
Other fixed assets, net	3,214,618		3,081,378
Total fixed assets, net	$	288,646,672	$	306,292,655
Vessels under capital lease
m/v BULK DESTINY	$	22,730,776	$	23,153,850
m/v BULK BEOTHUK	6,684,671		6,840,362
m/v BULK TRIDENT	$	12,961,520	—
	$	42,376,967	$	29,994,212

⁽¹⁾The Company had a deposit on a 2006 built Panamax (renamed m/v Bulk PODS) which was delivered on August 1, 2018.

The Company also operates two dry bulk vessels under bareboat charters accounted for as operating leases, as discussed in Note 7.

Long-lived Assets Impairment Considerations. The carrying values of the Company’s vessels may not represent their fair market value or the amount that could be obtained by selling the vessel at any point in time because the market prices of second-hand vessels tend to fluctuate with changes in charter rates and the pricing of new vessels, which tend to be cyclical. The carrying value of each group of vessels classified as held and used are reviewed for potential impairment when events or changes in circumstances indicate that the carrying value of a particular group may not be fully recoverable. In such instances, an impairment charge would be recognized if the estimate of the undiscounted future cash flows expected to result from the use of the group and its eventual disposition is less than its carrying value. This assessment is made at the group level, which represents the lowest level for which identifiable cash flows are largely independent of other groups of assets. The asset groups established by the Company are defined by vessel size and major characteristic or trade.

10

The significant factors and assumptions used in the undiscounted projected net operating cash flow analysis include the Company’s estimate of future time charter equivalent "TCE" rates based on current rates under existing charters and contracts. When existing contracts expire, the Company uses an estimated TCE based on actual results and extends these rates out to the end of the vessel’s useful life. TCE rates can be highly volatile, may affect the fair value of the Company’s vessels and may have a significant impact on the Company’s ability to recover the carrying amount of its fleet. Accordingly, the volatility is contemplated in the undiscounted projected net operating cash flow by using a sensitivity analysis based on percent changes in the TCE rates. The Company prepares a series of scenarios in an attempt to capture the range of possible trends and outcomes. Projected net operating cash flows are net of brokerage and address commissions and assume no revenue on scheduled offhire days. The Company uses the current vessel operating expense budget, estimated costs of drydocking and historical general and administrative expenses as the basis for its expected outflows, and applies an inflation factor it considers appropriate. The net of these inflows and outflows, plus an estimated salvage value, constitutes the projected undiscounted future cash flows. If these projected cash flows do not exceed the carrying value of the asset group, an impairment charge would be recognized.

At June 30, 2018 and June 30, 2017, the Company identified potential triggering events that resulted from sale and leaseback financing arrangements transacted in those periods. As a result, the Company evaluated each asset group for impairment by estimating the total undiscounted cash flows expected to result from the use of the asset group and its eventual disposal. The estimated undiscounted future cash flows were higher than the carrying amount of the vessels in the Company's fleet and as such, no loss on impairment was recognized.

The Company did not identify and therefore, did not test for recoverability as of March 31, 2018 or December 31, 2017.

Note 4. Debt

Long-term debt consists of the following: 

	June 30, 2018			December 31, 2017
	(unaudited)
Bulk Trident Secured Note	$	—		$	3,452,500
Bulk Juliana Secured Note (1)	507,033			1,521,095
Bulk Phoenix Secured Note (1)	3,588,089			4,473,805
Bulk Nordic Odin Ltd., Bulk Nordic Olympic Ltd. Bulk Nordic Odyssey Ltd., Bulk Nordic Orion Ltd. and Bulk Nordic Oshima Ltd. Amended and Restated Loan Agreement (2)	66,075,000			69,825,000
Term Loan Facility of USD 13,000,000 (Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd.)	5,141,280			5,793,460
Bulk Nordic Oasis Ltd. Loan Agreement (2)	17,750,000			18,500,000
Bulk Nordic Six Ltd. Loan Agreement	27,590,000			28,803,333
Bulk Freedom Loan Agreement	4,800,000			5,150,000
109 Long Wharf Commercial Term Loan	867,666			922,466
Phoenix Bulk Carriers (US) LLC Automobile Loan	—			23,090
Total	126,319,068			138,464,749
Less: unamortized bank fees	(1,905,769		)	(1,869,780		)
	124,413,299			136,594,969
Less: current portion	(17,319,091		)	(18,979,335		)
Secured long-term debt, net	$	107,094,208		$	117,615,634

⁽¹⁾  The Bulk Juliana Secured Note and the Bulk Phoenix Secured Note are cross-collateralized by the m/v Bulk Juliana and the m/v Bulk Newport and are guaranteed by the Company.

⁽²⁾  The borrower under this facility is NBHC, of which the Company and its joint venture partners, STST and ASO2020, each own one-third. NBHC is consolidated in accordance with Accounting Standards Codification ("ASC") 810, Consolidation, and as such, amounts pertaining to the non-controlling ownership held by these third parties in the financial position of NBHC are reported as non-controlling interest in the accompanying balance sheets.

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The Senior Secured Post-Delivery Term Loan Facility

On April 14, 2017, the Company, through its wholly owned subsidiaries, Bulk Pangaea, Bulk Patriot, Bulk Juliana, Bulk Trident and Bulk Phoenix, entered into the Fourth Amendatory Agreement, (the "Fourth Amendment"), amending and supplementing the Loan Agreement dated April 15, 2013, as amended by a First Amendatory Agreement dated May 16, 2013, the Second Amendatory Agreement dated August 28, 2013 and the Third Amendatory Agreement dated July 14, 2016. The Fourth Amendment advanced the final repayment dates for Bulk Pangaea and Bulk Patriot, which have since been repaid, and extended the final maturity date and modified the repayment schedules, as follows: 

Bulk Trident Secured Note

Initial amount of $10,200,000, entered into in April 2012, for the acquisition of the m/v Bulk Trident. The Fourth Amendment extends the final maturity date and modifies the repayment schedule. The first and second quarterly installments following the amendment were increased to $650,000 and the third and fourth installments were increased to $435,000. These are followed by two installments of $327,500 and three of $300,000. A balloon payment of $1,462,500 is payable on July 19, 2019. The interest rate was fixed at 4.29% through April 19, 2017 and is floating at LIBOR plus 3.50% (5.81% at June 30, 2018), since April 19, 2017.

In June, 2018, the Company sold the m/v Bulk Trident and simultaneously leased the vessel back under a bareboat charter for a period of eight years (see Note 7). Approximately $2,700,000 of proceeds from the sale were used to repay the Bulk Trident Secured Note.

Bulk Juliana Secured Note

Initial amount of $8,112,500, entered into in April 2012, for the acquisition of the m/v Bulk Juliana. The Fourth Amendment did not change this tranche, the balance of which was payable in six quarterly installments of $507,031. The final payment was made on July 19, 2018. The interest rate was fixed at 4.38%.

Bulk Phoenix Secured Note

Initial amount of $10,000,000, entered into in May 2013, for the acquisition of m/v Bulk Newport. The Fourth Amendment did not change this tranche, the balance of which is payable in two installments of $700,000 and seven installments of $442,858. A balloon payment of $1,816,659 is payable on July 19, 2019. The interest rate is fixed at 5.09%.

The agreement contains financial covenants that require the Company to maintain a minimum net worth and minimum liquidity, on a consolidated basis. The facility also contains a consolidated leverage ratio and a consolidated debt service coverage ratio. In addition, the facility contains other Company and vessel related covenants that, among other things, restrict changes in management and ownership of the vessel, declaration of dividends, further indebtedness and mortgaging of a vessel without the bank’s prior consent. It also requires minimum collateral maintenance, which is tested at the discretion of the lender. As of June 30, 2018 and December 31, 2017, the Company was in compliance with these covenants.

Bulk Nordic Odin Ltd., Bulk Nordic Olympic Ltd. Bulk Nordic Odyssey Ltd., Bulk Nordic Orion Ltd. And Bulk Nordic Oshima Ltd. – Dated September 28, 2015 - Amended and Restated Loan Agreement

The amended agreement advanced $21,750,000 in respect of each the m/v Nordic Odin and the m/v Nordic Olympic; $13,500,000 in respect of each the m/v Nordic Odyssey and the m/v Nordic Orion, and $21,000,000 in respect of the m/v Nordic Oshima.

The agreement requires repayment of the advances as follows:

In respect of the Odin and Olympic advances, repayment to be made in 28 equal quarterly installments of $375,000 per borrower (one of which was paid prior to the amendment by each borrower) and balloon payments of $11,233,150 due with each of the final installments in January 2022.

In respect of the Odyssey and Orion advances, repayment to be made in 20 quarterly installments of $375,000 per borrower and balloon payments of $5,677,203 due with each of the final installments in September 2020.

In respect of the Oshima advance, repayment to be made in 28 equal quarterly installments of $375,000 and a balloon payment of $11,254,295 due with the final installment in September 2021.

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Interest on 50% of the advances to Odyssey and Orion was fixed at 4.24% in March 2017. Interest on the remaining advances to Odyssey and Orion is floating at LIBOR plus 2.40% (4.71% at June 30, 2018). Interest on 50% of the advances to Odin and Olympic was fixed at 3.95% in January 2017. Interest on the remaining advances to Odin and Olympic was floating at LIBOR plus 2.0% and was fixed at 4.07% on April 27, 2017. Interest on 50% of the advance to Oshima was fixed at 4.16% in January 2017. Interest on the remaining advance to Oshima is floating at LIBOR plus 2.25% (4.56% at June 30, 2018).

The amended loan is secured by first preferred mortgages on the m/v Nordic Odin, m/v Nordic Olympic, m/v Nordic Odyssey, m/v Nordic Orion and m/v Nordic Oshima, the assignment of earnings, insurances and requisite compensation of the five entities, and by guarantees of their shareholders.

The amended agreement contains one financial covenant that requires the Company to maintain minimum liquidity and a collateral maintenance ratio clause, which requires the aggregate fair market value of the vessels plus the net realizable value of any additional collateral provided, to remain above defined ratios. At June 30, 2018 and December 31, 2017, the Company was in compliance with this covenant.

The Bulk Nordic Oasis Ltd. - Loan Agreement - Dated December 11, 2015

The agreement advanced $21,500,000 in respect of the m/v Nordic Oasis. The agreement requires repayment of the advance in 24 equal quarterly installments of $375,000 beginning on March 28, 2016 and a balloon payment of $12,500,000 due with the final installment in March 2022. Interest on this advance is fixed at 4.30%.

The loan is secured by a first preferred mortgage on the m/v Nordic Oasis, the assignment of earnings, insurances and requisite compensation of the entity, and by guarantees of its shareholders. Additionally, the agreement contains a collateral maintenance ratio clause which requires the fair market value of the vessel plus the net realizable value of any additional collateral previously provided, to remain above defined ratios. As of June 30, 2018 and December 31, 2017, the Company was in compliance with this covenant.

Term Loan Facility of USD 13,000,000 (Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd.)

Barents and Bothnia entered into a secured Term Loan Facility of $13,000,000 in two tranches of $6,500,000 which were drawn in conjunction with the delivery of the m/v Bulk Bothnia on January 23, 2014 and the m/v Bulk Barents on March 7, 2014. The loan is secured by mortgages on the m/v Nordic Bulk Barents and m/v Nordic Bulk Bothnia and is guaranteed by the Company.

The facility bears interest at LIBOR plus 2.50% (4.81% at June 30, 2018). The loan requires repayment in 22 equal quarterly installments of $163,045 (per borrower) beginning in June 2014, one installment of $163,010 (per borrower) and a balloon payment of $1,755,415 (per borrower) due in December 2019. In addition, any cash in excess of $750,000 per borrower on any repayment date shall be applied toward prepayment of the relevant loan in inverse order, so the balloon payment is prepaid first. The agreement also contains a profit split in respect of the proceeds from the sale of either vessel and a minimum value clause ("MVC"). The Company was in compliance with this covenant at June 30, 2018 and December 31, 2017.

The Amended Senior Facility - Dated December 21, 2017 (previously identified as Bulk Nordic Six Ltd. - Loan Agreement - Dated December 21, 2016)

The agreement advanced $19,500,000 in respect of the m/v Bulk Endurance on January 7, 2017, in two tranches. The agreement requires repayment of Tranche A, totaling $16,000,000, in three equal quarterly installments of $100,000 beginning on April 7, 2017 and, thereafter, 17 equal quarterly installments of $266,667 and a balloon payment of $11,667,667 due with the final installment in March 2022. Interest on this advance was fixed at 4.74% on March 27, 2017. The agreement also advanced $3,500,000 under Tranche B, which is payable in 18 equal quarterly installments of $65,000 beginning on October 7, 2017, and a balloon payment of $2,330,000 due with the final installment in March 2022. Interest on this advance is floating at LIBOR plus 6.00% (8.31% at June 30, 2018).

The amended agreement advanced $10,000,000 in respect of the m/v Bulk Pride on December 21, 2017, in two tranches. The agreement requires repayment of Tranche C, totaling $8,500,000, in 16 equal quarterly installments of $275,000 beginning in March 2018 and a balloon payment of $4,100,000 due with the final installment in December 2021. Interest on this advance was fixed at 5.74% as of May 2018. The agreement also advanced $1,500,000 under Tranche D, which is payable in 4 equal quarterly installments of $375,000 beginning on August 21, 2018. Interest on this advance is floating at LIBOR plus 6.00% (8.31% at June 30, 2018).

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The loan is secured by a first preferred mortgages on the m/v Bulk Endurance and the m/v Bulk Pride, the assignment of earnings, insurances and requisite compensation of the entity, and by guarantees of its shareholders. Additionally, the agreement contains a minimum liquidity requirement, positive working capital of the borrower and a collateral maintenance ratio clause which requires the fair market value of the vessel plus the net realizable value of any additional collateral previously provided, to remain above defined ratios. At June 30, 2018 and December 31, 2017, the Company was in compliance with these covenants.

The Bulk Freedom Corp. Loan Agreement -- Dated June 14, 2017

The agreement advanced $5,500,000 in respect of the m/v Bulk Freedom on June 14, 2017. The agreement requires repayment of the loan in 8 quarterly installments of $175,000 and 12 quarterly installments of $150,000 beginning on September 14, 2017. A balloon payment of $2,300,000 is due with the final installment. The facility bears interest at LIBOR plus a margin of 3.75%. On June 14, 2018, the Company elected to fix rates for the following four quarterly periods. The rate at June 30, 2018 is 6.09%, increasing quarterly to 6.51% for the installment due June 14, 2019.

The loan is secured by a first preferred mortgage on the m/v Bulk Freedom, the assignment of earnings, insurances and requisite compensation of the entity, and by guarantees of its shareholders. Additionally, the agreement contains a collateral maintenance ratio clause which requires the fair market value of the vessel plus the net realizable value of any additional collateral previously provided, to remain above defined ratios. At June 30, 2018 and December 31, 2017, the Company was in compliance with these covenants.

109 Long Wharf Commercial Term Loan

Initial amount of $1,096,000 entered into on May 27, 2016. The Long Wharf Construction to Term Loan was repaid from the proceeds of this new facility. The loan is payable in 120 equal monthly installments of $9,133. Interest is floating at the 30 day LIBOR plus 2.0% (4.31% at June 30, 2018). The loan is collateralized by all real estate located at 109 Long Wharf, Newport, RI, and a corporate guarantee of the Company. The loan contains a maximum loan to value covenant and a debt service coverage ratio. At June 30, 2018 and December 31, 2017, the Company was in compliance with these covenants.

Phoenix Bulk Carriers (US) LLC Automobile Loan

The Company purchased a commercial vehicle for use at the site of its port project on the United States' East Coast. The total loan amount of $29,435 is payable in 60 equal monthly installments of $539. Interest is fixed at 3.74%. The vehicle was sold in January 2018 and the loan was repaid.

The future minimum annual payments (excluding unamortized bank fees) under the debt agreements are as follows:

	Years ending
	June 30,
	(unaudited)
2019	$	17,319,091
2020	17,789,847
2021	20,490,674
2022	70,290,190
2023	109,600
Thereafter	319,666
	$	126,319,068

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Note 5. Derivative Instruments and Fair Value Measurements

Forward freight agreements

The Company assesses risk associated with fluctuating future freight rates and, when appropriate, hedges identified economic risk with appropriate derivative instruments, specifically forward freight agreements (FFAs). These economic hedges do not usually qualify for hedge accounting under ASC 815 and as such, the usage of such derivatives can lead to fluctuations in the Company’s reported results from operations on a period-to-period basis. The aggregate fair value of FFAs at June 30, 2018 and December 31, 2017 were assets of approximately $12,000 and $266,000, which are included in other current assets on the consolidated balance sheets. The change in the aggregate fair value of the FFAs during the three months ended June 30, 2018 and 2017 are gains of approximately $60,000 and losses of approximately $1,650,000, respectively, which are included in unrealized gain (loss) on derivative instruments in the accompanying consolidated statements of operations. The change in the aggregate fair value of the FFAs during the six months ended June 30, 2018 and 2017 are a loss of approximately $254,000 and a gain of approximately $1,075,000, respectively, which are included in unrealized gain (loss) on derivative instruments in the accompanying consolidated statements of operations.

Fuel Swap Contracts

The Company continuously monitors the market volatility associated with bunker prices and seeks to reduce the risk of such volatility through a bunker hedging program. During 2018 and 2017, the Company entered into fuel swap contracts that were not designated for hedge accounting. The aggregate fair value of these fuel swaps at June 30, 2018 and December 31, 2017 are assets of approximately $623,000 and $377,000, respectively, which are included in other current assets on the consolidated balance sheets. The change in the aggregate fair value of the fuel swaps during the three months ended June 30, 2018 and 2017 are gains of approximately    $493,000 and $173,000, respectively, which are included in unrealized gain (loss) on derivative instruments in the accompanying consolidated statements of operations. The change in the aggregate fair value of the fuel swaps during the six months ended June 30, 2018 and 2017 are gains of approximately $245,000 and losses of approximately $585,000, respectively, which are included in unrealized gain (loss) on derivative instruments in the accompanying consolidated statements of operations.

The three levels of the fair value hierarchy established by ASC 820, Fair Value Measurements and Disclosures, in order of priority are as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. Our Level 1 fair value measurements include cash, money-market accounts and restricted cash accounts.

Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level 3 – Inputs that are unobservable (for example cash flow modeling inputs based on assumptions). 

The following table summarizes assets and liabilities measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017:

	Balance at
	June 30, 2018		Level 1		Level 2		Level 3
	(unaudited)
Margin accounts	$	340,664	$	340,664	$	—	$	—
Fuel swaps	$	622,512	$	—	$	622,512	$	—
Freight forward agreements	$	11,625	$	—	$	11,625	$	—

	Balance at December 31, 2017		Level 1		Level 2		Level 3
Margin accounts	$	912,981	$	912,981	$	—	$	—
Fuel swaps	$	377,273	$	—	$	377,273	$	—
Freight forward agreements	$	265,768	$	—	$	265,768	$	—

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The estimated fair values of the Company’s forward freight agreements and fuel swap contracts are based on market prices obtained from an independent third-party valuation specialist based on published indexes. Such quotes represent the estimated amounts the Company would receive or pay to terminate the contracts.

Note 6. Related Party Transactions

	December 31, 2017		Activity			June 30, 2018
						(unaudited)
Included in accounts payable, accrued expenses and other current liabilities on the consolidated balance sheets:
Affiliated companies (trade payables)	$	1,421,920	90,289			$	1,512,209
Included in current related party debt on the consolidated balance sheets:
Loan payable – 2011 Founders Note	$	4,325,000	—			$	4,325,000
Interest payable in-kind - 2011 Founders Note (i)	684,597		(487,226		)	197,371
Promissory Note to Bulk Invest, Ltd.	2,000,000		(2,000,000		)	—
Total current related party debt	$	7,009,597	$	(2,487,226	)	$	4,522,371

⁽ⁱ⁾  Paid in cash

 In November 2014, the Company entered into a $5,000,000 Promissory Note (the “Note”) with Bulk Invest, Ltd., a company controlled by the Founders. The $2,000,000 outstanding balance on the Note was repaid on February 6, 2018.

On October 1, 2011, the Company entered into a $10,000,000 loan agreement with the Founders, which was payable on demand at the request of the lenders (the 2011 Founders Note). The note bears interest at a rate of 5%. The balance of the 2011 Founders Note was $4,325,000 at June 30, 2018 and December 31, 2017.

Under the terms of a technical management agreement between the Company and Seamar Management S.A. (“Seamar”), an equity method investee, Seamar is responsible for the day-to-day operations for certain of the Company’s owned vessels and the two vessels operating under bareboat charters. During the three months ended June 30, 2018 and 2017, the Company incurred technical management fees of approximately $764,400 and $662,400, respectively, under this arrangement. During the six-month periods ended June 30, 2018 and 2017, the Company incurred technical management fees of approximately $1,520,400 and $1,304,400, respectively, under this arrangement. These fees are included in vessel operating expenses in the consolidated statements of income. The total amounts payable to Seamar at June 30, 2018 and December 31, 2017 were approximately $1,512,000 and $1,422,000, respectively.

Dividends payable consist of the following, all of which are payable to related parties:

	2013 common stock dividend		2013 Odyssey and Orion dividend (1)			Total
Balance at December 31, 2017	6,333,598		904,803			7,238,401
Payments	—		(904,803		)	(904,803		)
Balance at June 30, 2018	$	6,333,598	$	—		$	6,333,598

⁽¹⁾Paid on February 13, 2018

Note 7. Commitments and Contingencies

Vessel Sales and Leasebacks Accounted for as Capital Leases

The Company's fleet includes three vessels financed under sale and leaseback financing arrangements accounted for as capital leases. The selling price of the m/v Bulk Destiny to the new owner (lessor) was $21.0 million and the fair value of the

16

vessel at the inception of the lease was $24.0 million. The difference between the selling price and the fair value of the vessel was recorded as prepaid rent and is being amortized over the 25 year estimated useful life of the vessel. Prepaid rent is included in vessel under capital lease on the consolidated balance sheet at June 30, 2018. Minimum lease payments fluctuate based on three-month LIBOR and are payable quarterly over the seven year lease term, with a purchase obligation of $11,200,000 due with the final lease payment in January 2024. Interest is floating at LIBOR plus 2.75% (5.06% including the margin, at inception of the lease). The Company will own this vessel at the end of the lease term.

The selling price of the m/v Bulk Beothuk was $7,000,000 and the fair value was estimated to be the same. The lease is payable at $3,500 per day every fifteen days over the five year lease term, and a balloon payment of $4,000,000 is due with the final lease payment in June 2022. Interest is fixed at 11.83%. The Company will own this vessel at the end of the lease term.

The selling price of the m/v Bulk Trident was $13,000,000 and the Company has the option to repurchase the asset for this amount under a capital lease. The minimum lease payments fluctuate based on three-month LIBOR and are payable monthly over the eight-year lease term. The Company has the option to purchase the vessel at the end of the third year of the lease or thereafter, or in the case of default by the lessor, at any time during the lease term. Interest is floating at LIBOR plus 1.7% (4.02% including the margin, at inception of the lease). The Company will own this vessel at the end of the lease term.

Long-term Contracts Accounted for as Operating Leases

On July 5, 2016, the Company entered into five-year bareboat charter agreements with the owner of two vessels (which were then renamed the m/v Bulk Power and the m/v Bulk Progress). Under a bareboat charter, the charterer is responsible for all of the vessel operating expenses in addition to the charter hire. The agreement also contains a profit sharing arrangement. Scheduled increases in charter hire are included in minimum rental payments and recognized on a straight-line basis over the lease term. Profit sharing is excluded from minimum lease payments and recognized as incurred. The rent expense under these bareboat charters (which are classified as operating leases) totals approximately $365,000 per annum. The vessels' owner has entered in to a memorandum of agreement to sell the vessels. The Company has agreed to release the owner from its commitment under the bareboat charter and will be compensated in the form of commission on the vessel sales.

The Company leases office space for its Copenhagen operations. The lease can be terminated with six months prior notice after June 30, 2018.

Future minimum lease payments under capital leases and operating leases with initial or remaining terms in excess of one year at June 30, 2018 were:

	Capital Lease		Operating Leases
2019	$	5,672,988	$	475,582
2020	5,606,526		365,446
2021	5,514,521		365,446
2022	9,323,848		12,015
2023	4,083,174		—
Thereafter	18,254,360		—
Total minimum lease payments	$	48,455,417	$	1,218,489
Less amount representing interest	9,669,077
Present value of minimum lease payments	38,786,340
Less current portion	3,464,880
Long-term portion	$	35,321,460

The Company is subject to certain asserted claims arising in the ordinary course of business. The Company intends to vigorously assert its rights and defend itself in any litigation that may arise from such claims. While the ultimate outcome of these matters could affect the results of operations of any one year, and while there can be no assurance with respect thereto, management believes that after final disposition, any financial impact to the Company would not be material to its consolidated financial position, results of operations, or cash flows.    

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Note 8. Subsequent Events

On August 2, 2018, the Company entered into a sale-leaseback financing arrangement whereby the m/v Bulk PODS, which was delivered on August 1, 2018, will be sold for $16.8 million and simultaneously leased back under a bareboat charter for a period of eight years. The agreement requires a $2.0 million bareboat charter hire down payment to be deducted from the selling price at the time of delivery to the buyer. The lease is payable monthly at a rate of $5,510 per day. Interest if floating at LIBOR plus 1.7% (approximately 4.1% including the margin, at inception of the lease).

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our consolidated financial statements and footnotes thereto contained in this report.

Forward Looking Statements

All statements other than statements of historical fact included in this Form 10-Q including, without limitation, statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding our financial position, business strategy and the plans and objectives of management for future operations, are forward looking statements. When used in this Form 10-Q, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or our management, identify forward looking statements. Such forward looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially from those contemplated by the forward looking statements as a result of the risk factors and other factors detailed in our filings with the Securities and Exchange Commission. All subsequent written or oral forward looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph.

Important Financial and Operational Terms and Concepts

The Company uses a variety of financial and operational terms and concepts when analyzing its performance.

These include revenue recognition, deferred revenue, allowance for doubtful accounts, vessels and depreciation and long-lived assets impairment considerations, as defined above as well as the following:

Voyage Revenue. Voyage revenue is derived from voyage charters which involve the carriage of cargo from a load port to a discharge port. Gross revenue is calculated by multiplying the agreed rate per ton of cargo by the number of tons loaded.

Charter Revenue. Charter revenue is earned when the Company lets a vessel it owns or operates to a charterer for a specified period of time. Charter revenue is based on the agreed rate per day.

Voyage Expenses. The Company incurs expenses for voyage charters, including bunkers (fuel), port charges, canal tolls, brokerage commissions and cargo handling operations, which are expensed as incurred.

Charter Expenses. The Company charters in vessels to supplement its owned fleet to support its voyage charter operations. The Company hires vessels under time charters with third party vessel owners, and recognizes the charter hire payments as an expense on a straight-line basis over the term of the charter. Charter hire payments are typically made in advance, and the unrecognized portion is reflected as advance hire in the accompanying consolidated balance sheets. Under the time charters, the vessel owner is responsible for the vessel operating costs such as crews, maintenance and repairs, insurance, and stores.

Vessel Operating Expenses. Vessel operating expenses represent the cost to operate the Company’s owned vessels. Vessel operating expenses include crew hire and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, tonnage taxes, other miscellaneous expenses, and technical management fees. These expenses are recognized as incurred. Technical management services include day-to-day vessel operations, performing general vessel maintenance, ensuring regulatory and classification society compliance, arranging the hire of crew, and purchasing stores, supplies, and spare parts.

Net Revenue. Net revenue represents total revenue less the total direct costs of transportation and services, which includes charter hire, voyage and vessel operating expenses.

Fleet Data. The Company believes that the measures for analyzing future trends in its results of operations consist of the following:

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Shipping days. The Company defines shipping days as the aggregate number of days in a period during which its owned or chartered-in vessels are performing either a voyage charter (voyage days) or a time charter (time charter days).

Daily vessel operating expenses. The Company defines daily vessel operating expenses as vessel operating expenses divided by ownership days for the period. Vessel operating expenses include crew hire and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes, other miscellaneous expenses, and technical management fees.

Chartered in days. The Company defines chartered in days as the aggregate number of days in a period during which it chartered in vessels from third party vessel owners.

Time Charter Equivalent ‘‘TCE’’ rates. The Company defines TCE rates as total revenues less voyage expenses divided by the length of the voyage, which is consistent with industry standards. TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because rates for vessels on voyage charters are generally not expressed in per-day amounts while rates for vessels on time charters generally are expressed in per-day amounts.

19

Selected Financial Information

(in thousands, except shipping days data) (figures may not foot due to rounding)	As of and for the three months ended June 30,						As of and for the six months ended June 30,
	2018			2017			2018			2017
Selected Data from the Consolidated Statements of Operations
Voyage revenue	$	81,848		$	80,231		$	152,167		$	157,919
Charter revenue	14,976			11,193			23,630			17,959
Total revenue	96,824			91,424			175,796			175,879
Voyage expense	38,028			38,597			68,196			79,869
Charter expense	30,684			33,174			53,380			56,375
Vessel operating expenses	10,047			9,075			19,896			17,666
Total cost of transportation and service revenue	78,759			80,846			141,471			153,910
Net revenue (1)	18,065			10,578			34,325			21,969
Other operating expenses	8,770			6,853			17,236			14,310
Loss on sale and leaseback of vessels	860			4,915			860			9,205
Income (loss) from operations	8,435			(1,190		)	16,229			(1,546		)
Total other expense, net	(1,562		)	(2,986		)	(3,821		)	(2,634		)
Net income (loss)	6,873			(4,176		)	12,408			(4,179		)
(Income) loss attributable to noncontrolling interests	(1,100		)	(561		)	(2,310		)	789
Net income (loss) attributable to Pangaea Logistics Solutions Ltd.	$	5,773		$	(4,737	)	$	10,098		$	(3,390	)
Adjusted EBITDA (2)	13,686			7,437			25,818			15,313
Shipping Days (3)
Voyage days	3,228			3,719			6,173			7,387
Time charter days	1,055			943			1,634			1,617
Total shipping days	4,283			4,662			7,807			9,004
TCE Rates ($/day) (4)	$	13,728		$	11,333		$	13,783		$	10,665

	June 30, 2018			December 31, 2017
Selected Data from the Consolidated Balance Sheets
Cash	$	48,920		$	34,532
Total assets	$	434,379		$	423,297
Total secured debt, including obligations under capital leases	$	163,200		$	163,396
Total liabilities and stockholders' equity	$	434,379		$	423,297
	For the six months ended June 30,
	2018			2017
Selected Data from the Consolidated Statements of Cash Flows
Net cash provided by operating activities	$	20,806		$	8,351
Net cash used in investing activities	$	(2,846	)	$	(47,696	)
Net cash (used in) provided by financing activities	$	(4,072	)	$	44,358

20

(1) Net revenue represents total revenue less the total direct costs of transportation and services, which includes charter hire, voyage and vessel operating expenses. Net revenue is included because it is used by management and certain investors to measure performance by comparison to other logistic service providers. Net revenue is not an item recognized by the generally accepted accounting principles in the United States of America, or U.S. GAAP, and should not be considered as an alternative to net income, operating income, or any other indicator of a company's operating performance required by U.S. GAAP. Pangaea’s definition of net revenue used here may not be comparable to an operating measure used by other companies.

(2) Adjusted EBITDA represents operating earnings before interest expense, income taxes, depreciation and amortization, loss on sale and leaseback of vessels and other non-operating income and/or expense, if any. Adjusted EBITDA is included because it is used by management and certain investors to measure operating performance and is also reviewed periodically as a measure of financial performance by Pangaea's Board of Directors. Adjusted EBITDA is not an item recognized by the generally accepted accounting principles in the United States of America, or U.S. GAAP, and should not be considered as an alternative to net income, operating income, or any other indicator of a company's operating performance required by U.S. GAAP. Pangaea’s definition of Adjusted EBITDA used here may not be comparable to the definition of EBITDA used by other companies.

The reconciliation of income (loss) from operations to net revenue and adjusted EBITDA is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Net Revenue
Income (loss) from operations	$	8,435	$	(1,190	)	$	16,229	$	(1,546	)
General and administrative	4,379		3,141			8,507		6,656
Depreciation and amortization	4,391		3,712			8,729		7,654
Loss on sale and leaseback of vessels	860		4,915			860		9,205
Net Revenue	$	18,065	$	10,578		$	34,325	$	21,969
Adjusted EBITDA (in millions)
Income (loss) from operations	$	8,435	$	(1,190	)	$	16,229	$	(1,546	)
Depreciation and amortization	4,391		3,712			8,729		7,654
Loss on sale and leaseback of vessel	860		4,915			860		9,205
Adjusted EBITDA	$	13,686	$	7,437		$	25,818	$	15,313

(3) Shipping days are defined as the aggregate number of days in a period during which its owned or chartered-in vessels are performing either a voyage charter (voyage days) or time charter (time charter days).

(4) Pangaea defines time charter equivalent, or “TCE,” rates as total revenues less voyage expenses divided by the length of the voyage, which is consistent with industry standards. TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because rates for vessels on voyage charters are generally not expressed in per-day amounts while rates for vessels on time charters generally are expressed in such amounts.

21

Industry Overview

The seaborne drybulk transportation industry is cyclical and can be volatile. The industry continues to see improvement because demand continues to outpace fleet growth and ordering is at an unexpected low. Scrapping rates are down from record levels, but remain higher than historic norms. The market for coal, iron ore and grains are leading the way to improving industry fundamentals and tightening credit during the recent downturn means new tonnage is not being built now. Average published market rates have increased 24% quarter to quarter and the Baltic Dry Index (“BDI”), a measure of dry bulk market performance, averaged 1,146 for the second quarter of 2018, up from an average of 947 for the comparable quarter of 2017. The Company's TCE rates have climbed consistently since the second quarter of 2017 and have exceeded average published market rates by 10% to 28% over this period.

2nd Quarter 2018 Highlights     

• Income from operations of $8.4 million for the three months ended June 30, 2018, as opposed to a loss from operations of $1.2 million for the same period of 2017.

• Net income attributable to Pangaea Logistics Solutions Ltd. of $5.8 million as compared to a net loss of $4.7 million for the three months ended June 30, 2017.

• Pangaea's TCE rates increased 21% to $13,728 from $11,333 in the second quarter of 2017 while the market average for the second quarter was approximately $10,777, giving the Company an overall average premium over market rates of approximately $2,951 or 27%.

• The Company completed two long-term COAs during 2017 and as a result, total shipping days decreased in the second quarter as compared to the second quarter of 2017. However, this decrease was met with higher TCE rates, resulting in an increase in revenue and in net revenue, the latter of which increased 71% to $18.1 million for the three months ended June 30, 2018, up from $10.6 million for the three months ended June 30, 2017.

• At the end of the quarter, Pangaea had $52.4 million in cash, restricted cash and cash equivalents.

Three Months Ended June 30, 2018 Compared to Three Months Ended June 30, 2017

Revenues

Pangaea’s revenues are derived predominately from voyage and time charters, which are discussed below. Total revenue for the three months ended June 30, 2018 was $96.8 million, compared to $91.4 million for the same period in 2017, a 6% increase. The total number of shipping days decreased 8% to 4,283 in the three months ended June 30, 2018, compared to 4,661 for the same period in 2017.

Components of revenue are as follows:

Voyage revenues increased by 2% for the three months ended June 30, 2018 to $81.8 million compared to $80.2 million for the same period in 2017. The increase in voyage revenues was predominantly driven by the improvement in the market, as evidenced by the published market rates and the BDI, both discussed above. There was a 13% decrease in the number of voyage days, which were 3,228 in the second quarter of 2018 as compared to 3,719 in the second quarter of 2017. The decrease in voyage days was due in large part to COAs that began in 2017 and were completed prior to the first quarter of 2018. However, market improvement from the three months ended June 30, 2017 to the three months ended June 30, 2018 translated into higher voyage revenues for the current period, as highlighted above.

Charter revenues increased to $15.0 million from $11.2 million, or 34%, for the three months ended June 30, 2018 compared to the same period in 2017. The increase in charter revenues was due to improvement in drybulk market rates. Time charter days were up 12% to 1,055 in the second quarter of 2018 from 943 in the second quarter of 2017.

Voyage Expenses

Voyage expenses for the three months ended June 30, 2018 were $38.0 million, compared to $38.6 million for the same period in 2017, a decrease of approximately 1%. The decrease in voyage expense was due to the decrease in voyage days, as discussed above the effect of which was offset by an increase in the average cost of bunkers, quarter to quarter. The bunker cost per day increased 18% from the three months ended June 30, 2018 to the three months ended June 30, 2017.

22

Charter Hire Expenses

Charter hire expenses for the three months ended June 30, 2018 were $30.7 million, compared to $33.2 million for the same period in 2017. The number of chartered-in days decreased 18% from 3,254 days in the three months ended June 30, 2017 to 2,680 days for the three months ended June 30, 2018. However, the improving dry bulk market pushed average charter-hire rates paid by the Company up 12% for the three months ended June 30, 2018 as compared to the same period of 2017. Charter hire expense as a percentage of total revenue dropped to 32% in the three months ended June 30, 2018 compared to 36% in the three months ended June 30, 2017, mostly due to the increase in owned days, which is discussed below.

Vessel Operating Expenses

Vessel operating expenses for the three months ended June 30, 2018 were $10.0 million, compared to $9.1 million in the comparable period in 2017, an increase of approximately 11%. The increase in vessel operating expenses is due to the 10% increase in owned and bareboat charter days, which were 1,820 in the three months ended June 30, 2018 as compared to 1,650 in the three months ended June 30, 2017. This increase is due to the addition of vessels acquired on June 14, 2017 and December 21, 2017. Vessel operating expenses per day were $5,520 for the three months ended June 30, 2018 and $5,500 for the three months ended June 30, 2017.

General and Administrative Expenses

General and administrative expenses increased from $3.1 million in the three months ended June 30, 2017 to $4.4 million in the three months ended June 30, 2018. This is due to an increase in accrued bonus compensation of $0.5 million, to the timing of recognition of audit fees and to the reversal of legal fees that impacted the second quarter of 2017.

Depreciation and amortization

The increase in depreciation and amortization is due to the increase in the number of vessels owned and operated under bareboat charters. Ownership days increased 10% due to acquisitions in June and December of 2017, as noted above. In addition, there were capitalized drydock expenses for three of the Company's owned vessels since the second quarter of 2017, which increased the amortization expense by approximately $250,000.

Loss on sale and leaseback of vessels

The Company incurred a loss of $0.9 million on the sale and leaseback of the m/v Bulk Trident in the three months ended June 30, 2018 and a loss of $4.9 million on the sale and subsequent leaseback of the m/v Bulk Beothuk in the three months ended June 30, 2017.

Income from Operations

The Company had income from operations of $8.4 million for the three months ended June 30, 2018 as compared to a loss from operations of $1.2 million for the three months ended June 30, 2017. This is primarily due to the improving market fundamentals demonstrated by the 71% increase in net revenue and to the reduction in losses on sale and leaseback financing transactions.

Unrealized (loss) gain on derivative instruments

The Company incurred gains on FFAs of approximately $60,000 and $493,000 on bunker swaps in the three months ended June 30, 2018 as compared to losses on FFAs of approximately $1,650,000 and gains on bunker swaps of approximately $173,000 in the three months ended June 30, 2017. These result from changes in the fair value of the derivatives at the respective balance sheet dates.

Six Months Ended June 30, 2018 Compared to Six Months Ended June 30, 2017

Revenues

Total revenue for the six months ended June 30, 2018 was $175.8 million, compared to $175.9 million for the same period in 2017. The total number of shipping days decreased 13% to 7,807 in the three months ended June 30, 2018, compared to 9,004 for the same period in 2017, however the average TCE rate increased 29% to $13,783 per day for the six months ended June 30, 2018, compared to $10,663 per day for same period in 2017.

23

Components of revenue are as follows:

Voyage revenues were $152.2 million for the six months ended June 30, 2018 compared to $157.9 million for the same period in 2017. The decrease in voyage revenues was predominantly driven by the 16% decrease in the number of voyage days, which were 6,173 in the six months ended June 30, 2018 as compared to 7,387 in the six months ended June 30, 2017. The decrease in voyage days was due in large part to COAs that began in the six months ended June 30, 2017 and were completed within the year. However, market improvement from the six months ended June 30, 2017 to the six months ended June 30, 2018 translated into better net results for the current period, as highlighted above. Voyage revenues were also impacted by the adoption of ASC 606 which resulted in a net increase of approximately $2.7 million or $346 per day of TCE revenue for the six months ended June 30, 2018.

Charter revenues increased to $23.6 millionfrom $18.0 million, or 32%, for the six months ended June 30, 2018 compared to the same period in 2017. The increase in charter revenues was due to improvement in drybulk market rates which are discussed above. Time charter days were up slightly to 1,634 in the six months ended June 30, 2018 from 1,617 in the six months ended June 30, 2017.

Voyage Expenses

Voyage expenses for the six months ended June 30, 2018 were $68.2 million, compared to $79.9 million for the same period in 2017, a decrease of approximately 15%. The decrease in voyage expense was due to the 16% decrease in voyage days, as discussed above. In addition, the Company incurred relet expenses of $3.9 million in the six months ended June 30, 2017, but incurred only minimal relet expense in the same period of 2018. The Company will opportunistically relet a cargo depending on market conditions and as a risk management tool.

Charter Hire Expenses

Charter hire expenses for the six months ended June 30, 2018 were $53.4 million, compared to $56.4 million for the same period in 2017. The number of chartered-in days decreased 25% from 6,170 days in the six months ended June 30, 2017 to 4,639 days for the six months ended June 30, 2018 due in part to the increase in owned days. However, the improving dry bulk market pushed average charter-hire rates paid by the Company up 26% for the six months ended June 30, 2018 as compared to the same period of 2017. Charter hire expense as a percentage of total revenue remained fairly consistent at 30% in the six months ended June 30, 2017 compared to 32% in the six months ended June 30, 2018. The Company continues to operate under its successful strategy of chartering-in primarily for committed contracts.

Vessel Operating Expenses

Vessel operating expenses for the six months ended June 30, 2018 were $19.9 million, compared to $17.7 million in the comparable period in 2017, an increase of approximately 13%. The increase in vessel operating expenses is due to the 11% increase in owned and bareboat charter days, which were 3,620 in the six months ended June 30, 2018 as compared to 3,258 in the six months ended June 30, 2017. This increase is due to the addition of two vessels acquired on June 14, 2017 and December 21, 2017. Vessel operating expenses per day were 5,496 for the six months ended June 30, 2018 and 5,422 for the six months ended June 30, 2017.

General and Administrative Expenses

General and administrative expenses increased from $6.7 million in the six months ended June 30, 2017 to $8.5 million in the six months ended June 30, 2018. This is due to an increase in accrued bonus compensation of $1.0 million and increases in director fees, salary related expenses and other expenses of $0.2 million, $0.3 million and $0.3 million, respectively.

Depreciation and amortization

The increase in depreciation and amortization is due to the increase in the number of owned vessels after acquisitions in June and December of 2017, as noted above and to amortization of capitalized drydocking expenses incurred in 2017 and 2018.

Loss on sale and leaseback of vessels

The Company incurred losses of $9.2 million on the sales and subsequent leasebacks of the m/v Bulk Destiny and the m/v Bulk Beothuk in the six months ended June 30, 2017 and $0.9 million of loss on the sale and leaseback of the m/v Bulk Trident in the six months ended June 30, 2018.

Income from Operations

24

The Company had income from operations of $16.2 million for the six months ended June 30, 2018 as compared to a loss from operations of $1.5 million for the six months ended June 30, 2017. The change reflects the 56% increase in net revenue resulting from improvement in market fundamentals and the losses on sale and leaseback transactions incurred in the six months ended June 30, 2017, discussed above.

Unrealized (loss) gain on derivative instruments

The Company incurred losses on FFAs of approximately $0.3 million and gains on bunker swaps of approximately $0.2 million in the six months ended June 30, 2018 as compared to losses on FFAs of approximately $585,000 and on bunker swaps of approximately $1.1 million in the six months ended June 30, 2017. These result from changes in the fair value of the derivatives at the respective balance sheet dates.

Significant accounting estimates

The discussion and analysis of the Company’s financial condition and results of operations is based upon the Company’s consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates and assumptions of the Company are the estimated fair value used in determining loss on sale and leaseback of vessel, the estimated future cash flows used in its impairment analysis, the estimated salvage value used in determining depreciation expense and the allowances for doubtful accounts.

Long-lived Assets Impairment Considerations

Long-lived Assets Impairment Considerations. The carrying values of the Company’s vessels may not represent their fair market value or the amount that could be obtained by selling the vessel at any point in time because the market prices of second-hand vessels tend to fluctuate with changes in charter rates and the pricing of new vessels. Historically, both charter rates and vessel values tend to be cyclical. The carrying value of each group of vessels (allocated by size, age and major characteristic or trade), which are classified as held and used by the Company, are reviewed for potential impairment when events or changes in circumstances indicate that the carrying value of a particular group may not be fully recoverable. In such instances, an impairment charge would be recognized if the estimate of the undiscounted future cash flows expected to result from the use of the group and its eventual disposition is less than its carrying value. This assessment is made at the group level, which represents the lowest level for which identifiable cash flows are largely independent of other groups of assets. The asset groups established by the Company are defined by vessel size and major characteristic or trade.

The significant factors and assumptions used in the undiscounted projected net operating cash flow analysis include the Company’s estimate of future TCE rates based on current rates under existing charters and contracts. When existing contracts expire, the Company uses an estimated TCE based on actual results and extends these rates out to the end of the vessel’s useful life. TCE rates can be highly volatile, may affect the fair value of the Company’s vessels and may have a significant impact on the Company’s ability to recover the carrying amount of its fleet. Accordingly, the volatility is contemplated in the undiscounted projected net operating cash flow by using a sensitivity analysis based on percent changes in the TCE rates. The Company prepares a series of scenarios in an attempt to capture the range of possible trends and outcomes. Projected net operating cash flows are net of brokerage and address commissions and assume no revenue on scheduled offhire days. The Company uses the current vessel operating expense budget, estimated costs of drydocking and historical general and administrative expenses as the basis for its expected outflows, and applies an inflation factor it considers appropriate. The net of these inflows and outflows, plus an estimated salvage value, constitutes the projected undiscounted future cash flows. If these projected cash flows do not exceed the carrying value of the asset group, an impairment charge would be recognized.

At June 30, 2018 and June 30, 2017, the Company identified potential triggering events that resulted from sale and leaseback financing arrangements transacted in those periods. As a result, the Company evaluated each asset group for impairment by estimating the total undiscounted cash flows expected to result from the use of the asset group and its eventual disposal. The estimated undiscounted future cash flows were higher than the carrying amount of the vessels in the Company's fleet and as such, no loss on impairment was recognized.

The Company did not identify and potential triggering events and therefore, did not test for recoverability as of March 31, 2018 or December 31, 2017.

25

Liquidity and Capital Resources

Liquidity and Cash Needs

The Company has historically financed its capital requirements with cash flow from operations, proceeds from related party debt, proceeds from long-term debt and capital leases, and, in June 2017, through a private placement of common stock. The Company may consider additional debt and equity financing alternatives in the future. However, if market conditions are negative, the Company may be unable to raise additional debt or equity financing on acceptable terms or at all. As a result, the Company may be unable to pursue opportunities to expand its business.

At June 30, 2018 and December 31, 2017, the Company had working capital of $29.2 million and $13.0 million, respectively.

Considerations made by management in assessing the Company’s ability to continue as a going concern are its ability to consistently generate positive cash flows from operations, which were approximately $20.8 million and $8.4 million in the six months ended June 30, 2018 and 2017, respectively; $29.2 million in 2017 and $19.2 million in 2016; and its ability to procure long-term fixed contract employment (COAs) with new and longstanding customers. In addition, the Company has demonstrated its unique ability to adapt to changing market conditions by changing the chartered-in profile to meet its cargo commitments. For more information on the results of operations, see ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Results of Operations.

Capital Expenditures

The Company’s capital expenditures relate to the purchase and lease of interests in vessels, and capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels. The Company’s owned and leased fleet includes two Panamax drybulk carriers, six Supramax drybulk carriers, two Ultramax Ice-Class 1C, two Handymax drybulk carriers (both of which are Ice-Class 1A) and one barge. The Company also has a one-third interest in a consolidated joint venture which owns six Panamax Ice-Class 1A drybulk carriers. A Memorandum of Agreement for the purchase of a third Panamax drybulk carrier was signed in April 2018.

In addition to vessel acquisitions that the Company may undertake in future periods, its other major capital expenditures include funding its program of regularly scheduled drydockings necessary to make improvements to its vessels, as well as to comply with international shipping standards and environmental laws and regulations. Funding expenses associated with these requirements will be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce the Company’s available days and operating days during that period. The Company capitalized drydocking costs totaling approximately $690,000 in the three months ended June 30, 2017 and expensed drydocking costs of approximately $8,000 and $645,000 in the three months ended June 30, 2018 and 2017, respectively. The Company capitalized drydocking costs totaling approximately $1.5 million and $754,000 and expensed drydocking costs of approximately $42,000 and $767,000 in the six months ended June 30, 2018 and 2017 , respectively.

Off-Balance Sheet Arrangements

The Company does not have off-balance sheet arrangements at June 30, 2018 or December 31, 2017.

26

ITEM 3. Quantitative and Qualitative Disclosures about Market Risks

Interest Rate Risk    

The international shipping industry is capital intensive, requiring significant amounts of investment provided in the form of long-term debt. Certain of the Company’s outstanding debt contain floating interest rates that fluctuate with changes in the financial markets and in particular changes in LIBOR. Increasing interest rates could increase the Company’s interest expense and adversely impact its future earnings. The Company’s net effective exposure to floating interest rate fluctuations on its outstanding debt was $52.3 million and $66.5 million, respectively, at June 30, 2018 and December 31, 2017.

The Company’s interest expense is affected by changes in the general level of interest rates, particularly LIBOR. As an indication of the extent of the Company’s sensitivity to interest rate changes, an increase in LIBOR of 1% would have decreased the Company’s net income and cash flows during each of the three month periods ended June 30, 2018 and 2017 by approximately $0.1 million, based on the debt levels at the beginning of each period. The Company expects its sensitivity to interest rate changes to increase in the future if the Company enters into additional floating rate debt agreements in connection with its acquisition of additional vessels.

Forward Freight Agreements

The Company assesses risk associated with fluctuating future freight rates and, when appropriate, hedges identified economic risk with appropriate derivative instruments, specifically forward freight agreements (FFAs). Such economic hedges do not always qualify for hedge accounting under ASC 815 and as such, the usage of such derivatives can lead to fluctuations in the Company’s reported results from operations on a period-to-period basis. The aggregate fair value of FFAs at June 30, 2018 was an asset of $12,000. The aggregate fair value of FFAs at December 31, 2017 was an asset of $266,000.

Fuel Swap Contracts

The Company continuously monitors the market volatility associated with bunker prices and seeks to reduce the risk of such volatility through a bunker hedging program. During the six months ended June 30, 2018 and the year ended December 31, 2017, the Company entered into various fuel swap contracts that were not designated for hedge accounting. The aggregate fair value of these fuel swaps at June 30, 2018 and December 31, 2017 were assets of $623,000 and $377,000, respectively.

ITEM 4. Controls and Procedures

Management’s Evaluation of Disclosure Controls and Procedures.

As of the end of the period covered by this report on Form 10-Q, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as such term is defined in Rule 13a-15(e). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective for the six months ended June 30, 2018.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

27

PART II: OTHER INFORMATION

Item 1 - Legal Proceedings

From time to time, we are involved in various other disputes and litigation matters that arise in the ordinary course of our business, principally cargo claims. Those claims, even if lacking merit, could result in the expenditure by us of significant financial and managerial resources.

Item 1A – Risk Factors

There have been no material changes from the “Risk Factors” previously disclosed in our Annual Report on Form 10-K, filed with the SEC on March 21, 2018.

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3 - Defaults Upon Senior Securities

None.

Item 4 – Mine Safety Disclosures

None.

Item 5 - Other Information

None.

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Item 6 – Exhibits 

Exhibit no.	Description	Incorporated By Reference			Filed herewith
		Form	Date	Exhibit
10.43	Bareboat Charter Party Dated 23 May 2018				X
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
31.2	Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				X
32.2	Certification of Principal Financial and Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				X
EX-101.INS	XBRL Instance Document				X
EX-101.SCH	XBRL Taxonomy Extension Schema				X
EX-101.CAL	XBRL Taxonomy Extension Calculation Linkbase				X
EX-101.DEF	XBRL Taxonomy Extension Definition Linkbase				X
EX-101.LAB	XBRL Taxonomy Extension Label Linkbase				X
EX-101.PRE	XBRL Taxonomy Extension Presentation Linkbase				X

29

SIGNATURES

Pursuant to the requirements of the Section 13 or 15 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on August 7, 2018.

PANGAEA LOGISTICS SOLUTIONS LTD.
By:	/s/ Edward Coll
Edward Coll
Chief Executive Officer
(Principal Executive Officer)
By:	/s/ Gianni DelSignore
Gianni DelSignore
Chief Financial Officer
(Principal Financial and Accounting Officer)

30

EX-10.43

Rider Clauses 32 to 45
to be deemed incorporated to the
Bareboat Charter Party

Dated 23 May 2018
(the "Charter")

Between

Bulk Trident Ltd., as Charterers
and

Katayama Marine S.A., as Owners
in respect of the vessel

MV BULK TRIDENT

32.    Delivery

(a)    The Charterers shall take delivery of the Vessel under this Charter simultaneously with delivery by the Charterers as sellers to the Owners as buyers under the MOA, and the Owners shall deliver the Vessel to the Charterers under this Charter in the same moment as the Owners take delivery of the Vessel under the MOA.

In the event that the Vessel is not delivered under the MOA or the MOA is cancelled, terminated or rescinded for any reason, this Charter shall automatically terminate without any liability between the parties hereunder.

(b)    For the avoidance of doubt, it is acknowledged that the Charterer, at the time of delivery of the Vessel under this Clause 32, owns any bunkers, unused lubricating and hydraulic oils and greases in storage tanks and unopened drums and unused stores and provisions (hereinafter referred to as the "Bunkers") remaining on board the Vessel on the delivery date and as a result the Owner and the Charterer will not settle the Bunkers at the time of delivery of the Vessel under this Charter.

33. Conditions for delivery

Prior to delivery of the Vessel under this Charter, the parties shall exchange the following documents:

(i) One (1) original Certificate of Good Standing or Secretarial Certificate, stating all Directors;

(ii) certified copies of the corporate resolutions of the Owners and the Charterers approving the contents of and the entering into of the Charter and MOA;

(iii) original, notarised and apostilled Power of Attorney granted by the Owners and the Charterers with respect to the representative(s) at closing and the persons signing this Charter and the MOA;

(iv) Such other documents as each of the Owner and Charterer may reasonably require.

34.    Vessel’s condition on delivery

The Vessel shall be delivered under this Charter in the same condition and with the same equipment, inventory and spare parts as she is delivered to the Owners under the MOA. The Charterers know the Vessel’s condition at the time of delivery, and expressly agree that the Vessel's condition as delivered under the MOA is acceptableand in accordance with the provisions of this Charter. The Vessel shall be delivered to the Charterers under the Charter strictly "as is/where is", and the Charterers, throughout the Charter period, shall have no claim against the Owners under this Charter or otherwise as a result of the Vessel’s physical condition.

35. Inspection on re-delivery of the Vessel (see also clauses 7)

In connection with the redelivery of the Vessel under the Charter, the Vessel shall not be dry-docked unless required by the Classification Society.

In lieu of dry-docking, Owners shall have the right to appoint a diver acceptable to the Classification Society to undertake an underwater inspection at a convenient port with due consultation between Owners and Charterers. Such divers’ inspection shall be carried out at Owners’ expense (unless damage affecting the class is found, in which case the Charterers shall bear the cost) and without interference to the Vessel’s normal operation.

Should such underwater inspection reveal damages that affect the class of the Vessel whereby such damage repairs cannot be made to the Vessel without dry-docking and the Classification Society will not grant an extension, then Vessel is to be dry-docked as soon as possible by Charterers to repair such damages to the Classification Society’s satisfaction at Charterers’ time and expense.

If in the opinion of the Classification Society the damages do not necessitate immediate dry-docking, then the Classification Society shall issue a certificate showing the extent and place of damage and Charterers shall repair same to the satisfaction of the Classification Society at next dry-docking, provided that such dry-docking is within the Charter Period. If the next Classification Society dry-docking is after the re-delivery of the Vessel under this Charter, the Charterers shall in their option (i) repair such damages before redelivery of the Vessel hereunder or (ii) provide the Owners with an agreed lump sum, (the Charterers and the Owners shall each select a reputable shipyard in the redelivery range and obtain from such shipyard a quotation for the cost of repairs of the damage. The estimated cost of repairs shall be refined as the average of the two quotations obtained from the two shipyards), a first class bank guarantee or sum a cash deposit to be provided, in the Charterers’ option, covering the expected costs of such repairs.

This Clause 35 shall not apply if the Charterers exercise their purchase option as set out in Clause 39.

The Vessel with everything belonging to her shall be at the Charterers’ risk and expense until she is redelivered to the Owners, but subject to the terms and conditions of this Agreement she shall be redelivered and taken over as she was at the time of joint surveys in accordance with clause 7 in this agreement, fair wear and tear excepted.

36.    Familiarisation

The Owners shall have a right to place two representatives on board the Vessel for familiarisation purposes twenty one (21) days prior to the redelivery of the Vessel to Owners under this charter. These representatives shall sign the Charterers’ usual indemnity form.

This Clause 36 shall not apply if the Charterers exercise their purchase option as set out in Clause 39.

37.    Owners’ Assignment, Performance Guarantee and Quiet Enjoyment Letter

The Owners shall have the right to assign to any and all mortgagees of the Vessel who are banks financing the Vessel any and all of the rights, benefits and interest of the Owners in and to this Charter, including but not limited to assignments of earnings and assignment of this Charter.

The Charterers is entitled to require a quiet enjoyment letter from the financiers of the Owners, in customary form for these transactions, and the Owners shall also agree to issue a quiet enjoyment letter to the Charterers.

Provided no event of default has occurred and is continuing under this Charter, the Owner undertakes that it will not interfere with the quiet use, operation, possession or enjoyment of the Vessel.

The performance of the Chartereres hereunder shall be guaranteed by Pangaea Logistics Solutions Ltd., whereas the performance of the Owners shall be guaranteed by Katayama Kisen Co., Ltd. The guarantees shall be in the format attached hereto as appendix B.

38.    Transfer of the Vessel

(a) Any change of ownership of the Vessel or of the ownership of the Owners during the Charter Period shall require the Charterers' prior written approval which Charterers shall be at full discretion whether to grant of decline.

(b) Each of the Owners and Charterers shall during the Charter Period be entitled to assign their position under the Charter to another third party entity. Such right shall be subject to (i) the prior written consent of each of the Parties respectively, such consent not be unreasonable withheld, and (ii) that the guarantees granted by Pangaea Logistics Solutions Ltd. and Katayama Kisen Co., Ltd. shall continue to remain in full force and effect irrespective of the said assignment(s) under the Charter. Each Party shall bear their own costs related to such assignment.

If, as a result of a change in law relating specifically to the circumstances of the Charterers and/or the Owners after the date of this Charter there would be material adverse economic consequences to the Charterers of them continuing to perform their obligations under the Charter the Charterers shall have the option, to novate this Charter to an Affiliate provided always that, notwithstanding such novation, this Charter would continue on identical terms (save for logical, consequential or mutually agreed amendments) and the Charter Guarantor shall remain jointly and severally liable with such Affiliate to the Owners for performance of all obligations by such Affiliate pursuant to this Charter after such novation.

The Charterers agree and undertake to enter into (and procure that such Affiliate and the Charter Guarantor enter into) or deliver to the Owners any such documents as the Owners (at its sole discretion) shall require in connection with such novation, including but not limited to such additional Security Documents and legal opinions as the Owners may require. Any documented costs or expenses whatsoever (including but not limited to legal costs) arising in relation to such novation and any conditions imposed by the Owners in giving their consent shall be borne by the Charterers.

39.    Charterers’ Purchase Option

Charterers’ option to purchase the Vessel at any time during the Charter, starting from end of 3rd year, or in case of a default hereunder by the Owners or Charterers, at any time during the Charter at following prices or pro rata of the current year:

The Purchase Option Price to be paid to the Owners upon delivery of the Vessel:

The Purchase Option Price = A – [ (A-B) / 365 x C]

Example purchase options after 5 years and 1 month (31 days):

USD 5,380,000 – [(5,380,000-3,705,000)/365 x 31) = USD 5,237,740

Where:

A: the amount indicted below for the end of the year immediately prior to the applicable delivery date;

B: the amount indicted below for the end of the year of such delivery date; and

C: the actual number of days from the beginning of the year to which the delivery date belongs:

(i) at a price of USD 13,000,000 at the date of this Charter;

(ii) at a price of USD 11,375,000 at the end of year 1 of this Charter;

(iii) at a price of USD 9,750,000 at the end of year 2 of this Charter;

(iv) at a price of USD 8,730,000 at the end of year 3 of this Charter;

(v) at a price of USD 7,055,000 at the end of year 4 of this Charter;

(vi) at a price of USD 5,380,000 at the end of year 5 of this Charter;

(vii) at a price of USD 3,705,000 at the end of year 6 of this Charter;

(viii) at a price of USD 2,030,000 at the end of year 7 of this Charter;

(ix) at a price of USD 355,000 at the end of year 8 of this Charter;

In the Event a Default by Owners occurs, and is continuing according to the terms and conditions of this Charter, then the Charterers may exercise its Purchase Option earlier than 36 months after commence of the Charter.

The Charterers must give a minimum of 90 (ninety) days’ notice of their intention to buy the Vessel. The purchase price to be paid to the Owners upon delivery of the Vessel as per Clause 3 of the Memorandum of Agreement attached hereto as Appendix A. The Vessel shall be delivered as soon as possible after expiry of the 90 (ninety) days notice and Owners undertake to render the necessary assistance in order to achieve this. Once the purchase option has been exercised by Charterers, they may not withdraw same.

The Charterers shall accept the Vessel on an "AS IS, WHERE IS" basis and the Owners shall, take such steps to obtain and furnish such documents and take such other actions as the Charterers may reasonably request in order to facilitate the sale and re-registration of the Vessel under such flag as the Charterers may designate.

With respect to such sale, the Owners warrant that the Vessel at such sale shall be free of any encumbrances whatsoever and that the Owners have not committed any act or omission which would impair title to the Vessel and Owners hereby agree to indemnify and hold harmless Charterers in respect of any and all damages, costs, losses, liabilities and expenses whatsoever resulting from any breach of such warranty.

The terms and conditions of the form of the Memorandum of Agreement attached hereto as Appendix A shall govern the purchase of the Vessel as set out in this Clause 39.

Upon completion of such purchase of the Vessel as set out in this Clause 39, the Charter and all further rights and obligations of the parties hereunder (except for indemnities and other obligations that by their nature should survive the termination of this Charter) shall terminate.

40. Insurance

(a) For the purposes of this Charter, the term "Total Loss" shall mean any actual or constructive or compromised or agreed or arranged total loss of the Vessel including any such total loss as may arise during a requisition for hire.

(b) The Charterers undertake with the Owners that throughout the Charter Period:-

(i) without prejudice to their obligations under Clause 13 hereof, they will keep the Vessel insured on the basis of the Institute Time Clauses (Hull) (or on such other terms as shall be reasonably acceptable to the Owners and their Mortgagee) with such insurers (including P&I and war risks associations) as shall be reasonably acceptable to the Owners with deductibles reasonably acceptable to the Owners and that any P&I association which is a member of the International Group of P&I Clubs and H&M underwriters with security rating A. The Charterers to provide such rating sheet annually to the owners. Charterers’ current H&M underwriters shall be deemed to be pre-approved (it being agreed and understood by the Charterers that there shall be no element of self-insurance or insurance through captive insurance companies without the prior written consent of the Owners);

(ii) the policies in respect of the insurances against fire and usual marine risks and the policies or entries in respect of the insurances against war risks shall, in each case, be endorsed to the effect that payment of a claim for a Total Loss will be made to the Owners (or the Mortgagees as assignees thereof) (who shall upon the receipt thereof apply the same in the manner described in Clause 40(e) hereof);

(iii) the Charterers shall procure that duplicates of all cover notes, policies and certificates of entry shall be furnished to the Owners for their custody, upon request;

(iv) the Charterers shall procure that the insurers and the war risk and protection and indemnity associations with which the Vessel is entered shall:

(A) furnish the Owners and Mortgagee with a letter or letter of undertaking in such form as may from time to time be reasonably required by the Owners, and

(B) supply to the Owners such information in relation to the insurances effected, or to be effected, with them as the Owners may from time to time reasonably require; and

(v) the Charterers shall procure that the policies, entries or other instruments evidencing the insurances are endorsed to the effect that the insurers shall give to the Owners not less than ten (10) days prior written notification of any amendment, suspension, cancellation or termination of the insurances, unless subject to any automatic termination/cancellation of cover provisions in the relevant insurances, in which event, if such insurances are automatically terminated/cancelled, Owners shall

be advised promptly and Charterers shall immediately procure re-instatement or replacement insurances of those terminated/cancelled insurances.

(c) Notwithstanding anything to the contrary contained in Clauses 13 and 40 (b) hereof, the Vessel shall be kept insured during the Charter Period in respect of marine and war risks on hull and machinery basis for not less than the total insured value (H&M value, Hull Interest and freight interest) specified in column (b) in the table set out below in respect of the one-yearly period during the Charter Period specified in column (a) (on the assumption that the first such period commenced on the delivery date) against such amount (hereinafter referred to as the "Minimum Insured Value");

(a) (b)

Year     Minimum Insured Value

1 USD 15,000,000

2 USD 12,512,500

3 USD 10,725,000

4 USD 8,937,500

5 USD 7,150,000

6 USD 5,380,000

7 USD 3,705,000

8 USD 2,030,000

or the market value of the Vessel as between a willing seller and a willing buyer in charter-free condition (the "Market Value"), whichever is the higher. The following shall apply with respect to the Market Value: If Owners consider the Market Value to be higher than the Minimum Insured Value set out in table (b) above, but Charterers have not increased the insurance value compared to the Minimum Insured Value, Owners may, unless the parties agree on the Market Value, request Charterers to obtain a valuation of the Vessel's Market Value from Clarksons Shipbrokers or another reputable shipbroker agreed upon by Owners and Charterers. If the Market Value as determined by the appointed shipbrokers is lower or equal to the Minimum Insured Value at the material time, the costs of valuation to be borne by the Owners. If the Market Value as determined by the appointed shipbrokers is higher than the Minimum Insured Value at the material time, the costs of valuation to be borne by the Charterers, who shall also arrange for the necessary amendment of relevant insurances. Owners may request a valuation no more than once per 12 month period.

(d) If the Vessel becomes a Total Loss or becomes subject to Compulsory Acquisition, the chartering of the Vessel to the Charterers hereunder shall cease and the Charterers shall:-

(i) immediately pay to the Owners all hire, and any other amounts, which have fallen due for payment under this Charter and have not been paid as at up to the date on which the Total Loss or Compulsory Acquisition occurred as described below (the "Date of Loss") together with interest thereon as set out in Clause 11 (f) and shall cease to be under any liability to pay any hire, but not any other amounts, thereafter becoming due and payable under this Charter. All hire and any other amounts prepaid by the Charterers relating to the period after the Date of Loss shall be forthwith refunded by the Owners and any hire paid in advance to be adjusted/reimbursed:

　　 (ii) For the purpose of ascertaining the Date of Loss:-

(A) an actual total loss of the Vessel shall be deemed to have occurred at noon (London time) on the actual date the Vessel was lost but in the event of the date of the loss being unknown

the actual total loss shall be deemed to have occurred at noon (London time) on the date on which it is acknowledged by the insurers to have occurred;

(B) a constructive, compromised, agreed, or arranged total loss of the Vessel shall be deemed to have occurred at noon (London time) on the date that notice claiming such a total loss of the Vessel is given to the insurers, or, if the insurers do not admit such a claim, at the date and time at which a total loss is subsequently admitted by the insurers or the date and time adjudged by a competent court of law or arbitration tribunal to have occurred. Either the Owners or, with the prior written consent of the Owners (such consent not to be unreasonably withheld), the Charterers shall be entitled to give notice claiming a constructive total lose but prior to the giving of such notice there shall be consultation between the Charterers and the Owners and the party proposing to give such notice shall be supplied with all such information as such party may request; and

(C) Compulsory Acquisition shall be deemed to have occurred at the time of occurrence of the relevant circumstances described in Clause 25(b) hereof.

(e) All moneys payable under the insurance effected by the Charterers pursuant to Clauses 13 and 40, or other compensation, in respect of a Total Loss or pursuant to Compulsory Acquisition of the Vessel shall be received in full by the Owners (or the Mortgagees as assignees thereof) and applied by the Owners (or, as the case may be, the Mortgagees):

FIRSTLY, in payment of all the Owners’ or the Charterers’ costs incidental to the collection thereof,

SECONDLY, in or towards payment to the Owners (to the extent that the Owners have not already received the same in full) of a sum equal to the Purchase Option Price as per the table in clause 39 immediately above, for the year in which the Date of Loss occurs and which shall be calculated pro rata per diem,

THIRDLY, the Owners, towards the payment of outstanding amount, if any, of that certain Loan Agreement entered into by and between The Yamaguchi Bank, Ltd. and the Owners, and

FORTHLY, in payment of any surplus to the Charterers by way of compensation for early termination.

(f) In respect of partial losses, any payment by Underwriters not exceeding USD 500,000 shall be paid directly to the Charterers who shall apply the same to effect the repairs in respect of which payment is made. Any moneys in excess of USD 500,000 payable under such insurance other than Total Loss shall be paid to the Charterers subject to the prior written consent of the Owners or the Owners’ bank but such consent shall not be unreasonably withheld. In the absence of such prior written consent the money shall be paid to the Owners or the Owners’ bank.

(g) The provisions of Clauses 13 and 40 hereof shall not apply in any way to the proceeds of any additional insurance cover effected by the Owners and / or the Charterers for their own account and benefit.

41. Inconsistency

In case of any inconsistency between (i) the standard terms of this Charter and (ii) the amendments and Rider Clauses 32 – 45, the latter shall prevail.

42.        Charterers' Down Payment

In  consideration  of  achieving reduced monthly charter hire payments for the  duration  of  the Charter Period (eight (8) years), the Charterers shall, at the time of delivery of  the  Vessel,  pay to the Owners as prepayment  of  hire  the  sum  of  USD  2,000,000  (the "Charterers' Down Payment").

The Charterers' Down Payment shall be set off against the Purchase Price of the Vessel under the MOA and payment is subject to the delivery of the Vessel to the Owners as "buyers" from the Charterers as "sellers" under the MOA and also delivery of the vessel by the Owners to the Charterers under the Charter.

The Charterers' Down Payment shall be non-refundable except when there is an event of default by Owners  leading  to  Charterers being permanently deprived of the usage of the Vessel (irrespective of whether the Charter is formally terminated or not), in which case the Owners shall refund to the Charterers the amount of USD 20,833.33 per calendar month for each month, counting from the date of Charterers being deprived of the Vessel’s use of the Vessel up to what would have been, but for the deprivation, the end of the 8^th year of the charter. Such refund shall be without prejudice to any right or claim the Charterers may have against the Owners as a result of such deprivation of use and/or default or termination.

The Charterers’ Down Payment is subordinated to the first priority mortgage.

43.        Loan Outstanding for Interest Portion

In the charter hire structure set out in Box 22, the Interest Portion shall be calculated by Owner’s Loan Outstanding in the table set out below, times (1.7% + 3-month USD LIBOR) times Number of days during next hire divided by 360days.

The 3-month USD LIBOR to be used is the one published by ICE LIBOR five (5) banking days prior to the hire payment due date.

Should the 3-month USD LIBOR published by ICE LIBOR turn negative, then zero (0) to be applied in calculation of hire payment.

1st Year	1st Month	13,000,000		2nd Year	13th Month	11,375,000
1st Year	2nd Month	12,864,583		2nd Year	14th Month	11,239,583
1st Year	3rd Month	12,729,167		2nd Year	15th Month	11,104,167
1st Year	4th Month	12,593,750		2nd Year	16th Month	10,968,750
1st Year	5th Month	12,458,333		2nd Year	17th Month	10,833,333
1st Year	6th Month	12,322,917		2nd Year	18th Month	10,697,917
1st Year	7th Month	12,187,500		2nd Year	19th Month	10,562,500
1st Year	8th Month	12,052,083		2nd Year	20th Month	10,427,083
1st Year	9th Month	11,916,667		2nd Year	21st Month	10,291,667
1st Year	10th Month	11,781,250		2nd Year	22nd Month	10,156,250
1st Year	11th Month	11,645,833		2nd Year	23rd Month	10,020,833
1st Year	12th Month	11,510,417		2nd Year	24th Month	9,885,417

3rd Year	25th Month	9,750,000		4th Year	37th Month	8,125,000
3rd Year	26th Month	9,614,583		4th Year	38th Month	7,989,583
3rd Year	27th Month	9,479,167		4th Year	39th Month	7,854,167
3rd Year	28th Month	9,343,750		4th Year	40th Month	7,718,750
3rd Year	29th Month	9,208,333		4th Year	41st Month	7,583,333
3rd Year	30th Month	9,072,917		4th Year	42nd Month	7,447,917
3rd Year	31st Month	8,937,500		4th Year	43rd Month	7,312,500
3rd Year	32nd Month	8,802,083		4th Year	44th Month	7,177,083
3rd Year	33rd Month	8,666,667		4th Year	45th Month	7,041,667
3rd Year	34th Month	8,531,250		4th Year	46th Month	6,906,250
3rd Year	35th Month	8,395,833		4th Year	47th Month	6,770,833
3rd Year	36th Month	8,260,417		4th Year	48th Month	6,635,417
5th Year	49th Month	6,500,000		6th Year	61st Month	4,875,000
5th Year	50th Month	6,364,583		6th Year	62nd Month	4,739,583
5th Year	51st Month	6,229,167		6th Year	63rd Month	4,604,167
5th Year	52nd Month	6,093,750		6th Year	64th Month	4,468,750
5th Year	53rd Month	5,958,333		6th Year	65th Month	4,333,333
5th Year	54th Month	5,822,917		6th Year	66th Month	4,197,917
5th Year	55th Month	5,687,500		6th Year	67th Month	4,062,500
5th Year	56th Month	5,552,083		6th Year	68th Month	3,927,083
5th Year	57th Month	5,416,667		6th Year	69th Month	3,791,667
5th Year	58th Month	5,281,250		6th Year	70th Month	3,656,250
5th Year	59th Month	5,145,833		6th Year	71st Month	3,520,833
5th Year	60th Month	5,010,417		6th Year	72nd Month	3,385,417
7th Year	73rd Month	3,250,000		8th Year	85th Month	1,625,000
7th Year	74th Month	3,114,583		8th Year	86th Month	1,489,583
7th Year	75th Month	2,979,167		8th Year	87th Month	1,354,167
7th Year	76th Month	2,843,750		8th Year	88th Month	1,218,750
7th Year	77th Month	2,708,333		8th Year	89th Month	1,083,333
7th Year	78th Month	2,572,917		8th Year	90th Month	947,917
7th Year	79th Month	2,437,500		8th Year	91st Month	812,500
7th Year	80th Month	2,302,083		8th Year	92nd Month	677,083
7th Year	81st Month	2,166,667		8th Year	93rd Month	541,667
7th Year	82nd Month	2,031,250		8th Year	94th Month	406,250
7th Year	83rd Month	1,895,833		8th Year	95th Month	270,833
7th Year	84th Month	1,760,417		8th Year	96th Month	135,417

44.         Charterers’ disclosure

Upon Owners and/or Financiers request, Performance Guarantor to provide audit report every year until charter expire.

45.         Confidentiality

The parties shall keep the negotiations and contents of this Charter and any information they may have received at any time in relation to the business, strategies or financial affairs of the other party in the strictest confidence (collectively, ”Confidential Information”). The parties may nevertheless disclose such Confidential Information (i) when required by law, regulatory rules and regulations, governmental authorities, accounting principles (U.S. GAAP) or relevant stock exchange rules, or (ii) to professional advisers (including, without limitation, legal, accounting and tax advisers) of the parties. This Clause 45 shall survive the termination or expiry of this Charter.

IN WITNESS HEREOF the Owners and the Charterers have signed and executed TWO COPIES of this Agreement the day and year first written.

KATAYAMA MARINE S.A.                BULK TRIDENT LTD.

For the Owners:                  For the Charterers:

/s/ Minoru Katayama_________             /s/ Deborah L. Davis_________

Minoru Katayama                     Deborah L. Davis

Director/Secretary                     Director/Vice-President

List of Appendices:

Appendix A:    Memorandum of Agreement for purchase option

Appendix B:     Form of performance guarantees

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Edward Coll, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the three and six months ended June 30, 2018, of Pangaea Logistics Solutions Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 7, 2018	/s/ Edward Coll
		Edward Coll
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gianni DelSignore, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the three and six months ended June 30, 2018, of Pangaea Logistics Solutions Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 7, 2018	/s/ Gianni DelSignore
		Gianni DelSignore
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Pangaea Logistics Solutions Ltd. (the “Company”) on Form 10-Q for the three and six months ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Edward Coll, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 7, 2018	/s/ Edward Coll
		Edward Coll
		Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Pangaea Logistics Solutions Ltd. (the “Company”) on Form 10-Q for the three and six months ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gianni DelSignore, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 7, 2018	/s/ Gianni DelSignore
		Gianni DelSignore
		Chief Financial Officer
		(Principal Financial Officer)

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 07, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	Pangaea Logistics Solutions Ltd.
Entity Central Index Key	0001606909
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		44,063,986

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Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 48,919,920	$ 34,531,812
Accounts receivable (net of allowance of $1,705,439 at June 30, 2018 and $2,135,877 December 31, 2017)	18,382,716	21,089,425
Bunker inventory	17,390,678	15,356,712
Advance hire, prepaid expenses and other current assets	15,162,115	12,032,272
Total current assets	99,855,429	83,010,221
Restricted cash	3,500,000	4,000,000
Fixed assets, net	288,646,672	306,292,655
Vessels under capital lease	42,376,967	29,994,212
Total assets	434,379,068	423,297,088
Current liabilities
Accounts payable, accrued expenses and other current liabilities	29,967,379	29,181,276
Related party debt	4,522,371	7,009,597
Deferred revenue	9,028,015	5,815,924
Current portion of secured long-term debt	17,319,091	18,979,335
Current portion of capital lease obligations	3,464,880	1,785,620
Dividend payable	6,333,598	7,238,401
Total current liabilities	70,635,334	70,010,153
Secured long-term debt, net	107,094,208	117,615,634
Obligations under capital lease	35,321,460	25,015,659
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.0001 par value, 1,000,000 shares authorized and no shares issued or outstanding	0	0
Common stock, $0.0001 par value, 100,000,000 shares authorized; 44,063,986 shares issued and outstanding at June 30, 2018; 43,794,526 shares issued and outstanding at December 31, 2017	4,406	4,379
Additional paid-in capital	155,631,206	154,943,728
Accumulated deficit	(1,921,804)	(9,596,785)
Total Pangaea Logistics Solutions Ltd. equity	153,713,808	145,351,322
Non-controlling interests	67,614,258	65,304,320
Total stockholders' equity	221,328,066	210,655,642
Total liabilities and stockholders' equity	$ 434,379,068	$ 423,297,088

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 1,705,439	$ 2,135,877
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares Issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	44,063,986	43,794,526
Common stock, shares outstanding (in shares)	44,063,986	43,794,526

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Consolidated Statements of Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Voyage revenue	$ 81,847,649	$ 80,231,015	$ 152,166,843	$ 157,919,464
Charter revenue	14,975,553	11,192,763	23,629,652	17,959,435
Revenues	96,823,202	91,423,778	175,796,495	175,878,899
Expenses:
Voyage expense	38,027,489	38,597,148	68,195,517	79,869,067
Charter hire expense	30,683,892	33,174,063	53,379,827	56,375,218
Vessel operating expense	10,046,709	9,074,357	19,895,874	17,665,599
General and administrative	4,378,671	3,141,276	8,506,969	6,656,040
Cost, Depreciation, Amortization and Depletion	4,391,069	3,711,712	8,729,257	7,653,507
Loss on sale and leaseback of vessels	860,426	4,915,044	860,426	9,205,042
Total expenses	88,388,256	92,613,600	159,567,870	177,424,473
Income (loss) from operations	8,434,946	(1,189,822)	16,228,625	(1,545,574)
Other (expense) income:
Interest expense, net	(2,091,989)	(2,244,110)	(4,152,725)	(3,875,098)
Interest expense on related party debt	(53,914)	(78,846)	(117,373)	(156,825)
Unrealized (loss) gain on derivative instruments, net	(553,701)	1,476,380	8,904	(490,007)
Total other (expense) income, net	(30,000)	(813,356)	(458,332)	(908,006)
Other income	(1,562,202)	(2,985,980)	(3,820,670)	(2,633,910)
Net income (loss)	6,872,744	(4,175,802)	12,407,955	(4,179,484)
(Income) loss attributable to non-controlling interests	(1,099,721)	(561,379)	(2,309,938)	789,146
Net income attributable to Pangaea Logistics Solutions Ltd.	$ 5,773,023	$ (4,737,181)	$ 10,098,017	$ (3,390,338)
Earnings per common share:
Basic (in dollars per share)	$ 0.14	$ (0.13)	$ 0.24	$ (0.10)
Diluted (in dollars per share)	$ 0.13	$ (0.13)	$ 0.24	$ (0.10)
Weighted average shares used to compute earnings per common share
Weighted Average Number of Shares Outstanding, Basic	42,252,552	35,539,186	42,259,594	35,411,060
Weighted Average Number of Shares Outstanding, Diluted	42,763,925	35,539,186	42,632,688	35,411,060

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Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 52,419,920	$ 33,436,482
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards	(101,075)	0
Debt Conversion, Converted Instrument, Amount		9,278,800
Proceeds from Issuance of Common Stock	(50,812)	8,302,985
Operating activities
Net income (loss)	12,407,955	(4,179,484)
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization expense	8,729,257	7,653,507
Amortization of deferred financing costs	331,061	368,387
Amortization of prepaid rent	60,968	60,969
Unrealized loss (gain) on derivative instruments	8,904	(490,007)
Gain from equity method investee	(90,000)	(194,612)
Provision for doubtful accounts	(148,458)	(10,356)
Loss on sale and leaseback of vessel	860,426	9,134,908
Recognized cost for restricted stock issued as compensation	839,396	677,936
Change in operating assets and liabilities:
Accounts receivable	2,855,167	(6,166,383)
Bunker inventory	(2,033,966)	(1,741,848)
Advance hire, prepaid expenses and other current assets	(844,650)	(3,343,536)
Drydocking costs	(1,497,979)	(754,120)
Accounts payable, accrued expenses and other current liabilities	844,340	6,853,566
Deferred revenue	(1,516,665)	482,485
Net cash provided by operating activities	20,805,756	8,351,412
Investing activities
Purchase of vessels and vessel improvements	(2,517,355)	(46,846,313)
Purchase of building and equipment	(360,286)	(16,775)
Proceeds from Sale of Property, Plant, and Equipment	31,594	0
Purchase of non-controlling interest in consolidated subsidiary	0	(832,572)
Net cash used in investing activities	(2,846,047)	(47,695,660)
Financing activities
Payments of related party debt	(2,487,226)	0
Proceeds from long-term debt	0	25,000,000
Payments of financing and issuance costs	(367,052)	(876,542)
Payments of long-term debt	(12,145,694)	(15,723,929)
Sale Leaseback Transaction, Net Proceeds, Financing Activities	13,000,000	28,000,000
Repayments of Long-term Capital Lease Obligations	(1,014,939)	(344,733)
Payments of Ordinary Dividends, Noncontrolling Interest	(904,803)	0
Net cash (used in) provided by financing activities	(4,071,601)	44,357,781
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	13,888,108	5,013,533
Cash, cash equivalents and restricted cash at end of period	48,919,920
Disclosure of noncash items
Cash paid for interest	$ 3,809,699	$ 3,022,756

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General Information

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General Information

General Information

The accompanying consolidated financial statements include the accounts of Pangaea Logistics Solutions Ltd. and its consolidated subsidiaries (collectively, the “Company”, “we” or “our”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership, chartering and operation of drybulk vessels. The Company is a holding company incorporated under the laws of Bermuda as an exempted company on April 29, 2014.

The Company owns two Panamax, two Ultramax Ice Class 1C, six Supramax, and two Handymax Ice Class 1A drybulk vessels. The Company also owns one-third of Nordic Bulk Holding Company Ltd. (“NBHC”), a consolidated joint venture with a fleet of six Panamax Ice Class 1A drybulk vessels and has a 50% interest in the owner of a deck barge. The Company made a deposit on and expects to take delivery of a Panamax in the third quarter of 2018.

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Basis of Presentation

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation and Significant Accounting Policies

The accompanying consolidated balance sheets as of June 30, 2018 and 2017, the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 and the consolidated statements of cash flows for the six months ended June 30, 2018 and 2017 are unaudited. The unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position as of June 30, 2018 and December 31, 2017, and its results of operations and cash flows for the three and six months ended June 30, 2018 and 2017. The financial data and the other information disclosed in these notes to the consolidated financial statements related to these three and six month periods are unaudited. Certain information and disclosures included in the annual consolidated financial statements have been omitted for the interim periods pursuant to the rules and regulations of the SEC. The results for three and six months ended June 30, 2018 and 2017 are not necessarily indicative of the results for the year ending December 31, 2018 or for any other interim period or future years.

 The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates and assumptions of the Company are the estimated fair value used in determining loss on sale and leaseback of vessel, the estimated future cash flows used in its impairment analysis, the estimated salvage value used in determining depreciation expense and the allowances for doubtful accounts.

Advance hire, prepaid expenses and other current assets were comprised of the following: 

	June 30, 2018		December 31, 2017
	(unaudited)
Advance hire	$	8,294,453	$	3,628,417
Prepaid expenses	835,423		460,445
Accrued receivables	4,429,108		6,153,212
Other current assets	1,603,131		1,790,198
	$	15,162,115	$	12,032,272

Accounts payable, accrued expenses and other current liabilities were comprised of the following:

	June 30, 2018		December 31, 2017
	(unaudited)
Accounts payable	$	21,555,260	$	15,686,235
Accrued voyage expenses	6,482,350		11,923,445
Accrued interest	560,740		611,406
Other accrued liabilities	1,369,029		960,190
	$	29,967,379	$	29,181,276

Significant Accounting Policies Update

Our significant accounting policies are included in Note 3 of our Annual Report on Form 10-K for the year ended December 31, 2017.  On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606).  The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As the Company’s performance obligations are transportation services which are received and consumed by its customers as it performs such services, revenues are recognized over time using the input method, proportionate to the days elapsed since the service commencement compared to the total days anticipated to complete the service. The Company believes that this method provides a faithful depiction of the satisfaction of its performance obligation. After analyzing its contracts with customers for each significant revenue stream, the Company determined that revenue from vessels operating on time charter will not change significantly from previous practice, which is to recognize revenue ratably over the periods of such charters. Payment on time charters is made in advance. Under the new standard, voyage revenue is recognized over the period between load port and discharge port. In addition, certain costs to fulfill contracts for voyages for which loading has not commenced are recognized as assets and amortized pro rata over the period between load and discharge. The payment terms on voyage charters is within five days of cargo loading. Costs to obtain a contract are expensed as incurred, as provided by a practical expedient, since all such costs are expected to be amortized over less than one year. The Company adopted ASC 606 using the modified retrospective transition method applied to voyage contracts that were not substantially complete at the end of 2017.  The Company recorded a $2.4 million adjustment to decrease retained earnings at the beginning of 2018, which reflects the cumulative impact of adopting this standard. Comparative financial statements have not been restated and are reported under the accounting standards in effect for those periods. 

A reconciliation as of and for the six months ended June 30, 2018 under ASC 606 to the prior accounting standards, for each of the financial statement line items impacted, is provided below:

	As of June 30, 2018
Consolidated Balance Sheets	As Reported		Effect of ASC 606 Adoption		Under Prior Accounting
Advance hire, prepaid expenses and other current assets	15,162,115		1,668,595		13,493,520
Total current assets	99,855,429		1,668,595		98,186,834
Total assets	434,379,068		1,668,595		432,710,473
Deferred revenue	9,028,015		2,026,544		7,001,471
Total current liabilities	70,635,334		2,026,544		68,608,790
Accumulated deficit	(1,921,804	)	(357,949	)	(1,563,855	)
Total liabilities and stockholders' equity	434,379,068		1,668,595		432,710,473
	For the Six Months Ended June 30, 2018
Consolidated Statements of Cash Flows	As Reported		Effect of ASC 606 Adoption		Under Prior Accounting
Net Income	12,407,955		2,065,086		10,342,869
Change in operating assets and liabilities:
Advance hire, prepaid expenses and other current assets	(844,650	)	637,125		(1,481,775	)
Deferred Revenue	(1,516,665	)	(2,702,211	)	1,185,546

	For the Three Months Ended June 30, 2018				For the Six Months Ended June 30, 2018
Consolidated Statements of Operations	As Reported	Effect of ASC 606 Adoption		Under Prior Accounting	As Reported	Effect of ASC 606 Adoption	Under Prior Accounting
Voyage revenue	81,847,649	98,286		81,749,363	152,166,843	2,702,211	149,464,632
Total revenues	96,823,202	98,286		96,724,916	175,796,495	2,702,211	173,094,284
Voyage expense	38,027,489	(170,093	)	38,197,582	68,195,517	86,233	68,109,284
Charter hire expense	30,683,892	(139,186	)	30,823,078	53,379,827	550,892	52,828,935
Total Expenses	88,388,256	(309,279	)	88,697,535	159,567,870	637,125	158,930,745
Income from Operations	8,434,946	407,565		8,027,381	16,228,625	2,065,086	14,163,539
Net Income	6,872,744	407,565		6,465,179	12,407,955	2,065,086	10,342,869
Net income attributable to Pangaea Logistics Solutions Ltd.	5,773,023	407,565		5,365,458	10,098,017	2,065,086	8,032,931
Earnings per common share, basic	0.14	0.01		0.13	0.24	0.05	0.19
Earnings per common share, diluted	0.13	0.01		0.12	0.24	0.05	0.19

Assets and liabilities related to our voyage contracts with customers are reported on a contract-by-contract basis at the end of each reporting period.  Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains reserves against its accounts receivable for potential credit losses. Credit losses recognized on accounts receivable were immaterial for the three and six-month periods ended June 30, 2018 and 2017, respectively. Other contract assets include unbilled revenue which arises when revenue is recognized in advance of billing for certain voyage contracts. Contract liabilities consist of deferred revenue which arises when amounts are billed to or collected from customers in advance of revenue recognition.

ASC 606 requires the recognition of an asset for costs to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed to voyage expenses as we satisfy our performance obligations. These costs consist primarily of bunker and charter hire costs incurred prior to loading and are amortized pro rata over the period between load and discharge.  At June 30, 2018 and January 1, 2018 deferred contract fulfillment costs amounted to $1.7 million and $2.3 million, respectively, and are classified within advance hire, prepaid expenses and other current assets on the consolidated balance sheets.  For the three and six months ended June 30, 2018, we recognized expense of $1.4 million and $3.7 million, respectively, associated with the amortization of deferred contract costs.    

Under ASC 606, deferred revenue represents the consideration received for undelivered performance obligations. The Company recorded an additional $4.7 million and $2.0 million of deferred revenue on voyages in progress as of January 1, 2018 and June 30, 2018, respectively, due to the adoption of ASC 606.

All voyages that were not substantially complete on March 31, 2018 were completed during the three months ended June 30, 2018, therefore, all related voyage contract liabilities were recognized as revenue in the quarter.

On January 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows (ASC 230). The amendments in this update provide guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows, thereby reducing the diversity in practice. Specifically, this update addresses how to classify and present changes in restricted cash or restricted cash equivalents that occur when there are transfers between cash, cash equivalents, and restricted cash or restricted cash equivalents and when there are direct cash receipts into restricted cash or restricted cash equivalents or direct cash payments made from restricted cash or restricted cash equivalents. The new standard became effective for the Company on January 1, 2018. The amendments in this update were applied using a retrospective transition method to each period presented.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows:

	June 30, 2018		December 31, 2017
Cash and cash equivalents	$	48,919,920	$	34,531,812
Restricted cash	3,500,000		4,000,000
Total cash, cash equivalents and restricted cash	$	52,419,920	$	38,531,812

Cash and cash equivalents include short-term deposits with an original maturity of less than three months. Restricted cash at June 30, 2018 and December 31, 2017 consists of $1.0 million and $1.5 million, respectively, held by the facility agent as required by the The Senior Secured Post-Delivery Term Loan Facility and $2.5 million held by the facility agent as required by the Bulk Nordic Odin Ltd., Bulk Nordic Olympic Ltd. Bulk Nordic Odyssey Ltd., Bulk Nordic Orion Ltd. and Bulk Nordic Oshima Ltd. – Dated September 28, 2015 - Amended and Restated Loan Agreement.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued an ASU 2016-02, Accounting Standards Update for Leases. The update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The Company does not typically enter into charters for terms exceeding six months. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company does not expect adoption of this guidance to have a material impact on its financial statements as it will apply the practical expedient for leases less than one year in duration, which accounts for substantially all of its leases.

In August 2017, the FASB issued an ASU 2017-12 Accounting Standards Update for Derivatives and Hedging. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted in any interim period after issuance of the update. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this update. The amended presentation and disclosure guidance is required only prospectively. The Company does not expect adoption of this guidance to have a material impact on its financial statements.

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Fixed Assets

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Fixed Assets

Fixed Assets

At June 30, 2018, the Company owned eighteen dry bulk vessels including three financed under capital leases; and one barge. The carrying amounts of these vessels, including unamortized drydocking costs, are as follows: 

	June 30,		December 31,
	2018		2017
Owned vessels	(unaudited)
m/v BULK PANGAEA	$	15,670,750	$16,398,650
m/v BULK PATRIOT	10,468,963		11,111,437
m/v BULK JULIANA	10,999,480		11,411,052
m/v NORDIC ODYSSEY	24,959,120		25,634,743
m/v NORDIC ORION	25,781,699		26,467,928
m/v BULK TRIDENT	—		14,195,098
m/v BULK NEWPORT	14,475,047		13,139,242
m/v NORDIC BARENTS	4,611,450		4,846,522
m/v NORDIC BOTHNIA	4,559,934		4,787,388
m/v NORDIC OSHIMA	29,510,052		30,122,172
m/v NORDIC ODIN	29,935,017		30,548,435
m/v NORDIC OLYMPIC	29,761,407		30,371,285
m/v NORDIC OASIS	30,994,718		31,608,785
m/v BULK ENDURANCE	26,525,712		27,030,918
m/v BULK FREEDOM	8,650,902		8,834,746
m/v BULK PRIDE	13,806,726		14,007,731
m/v BULK PODS (1)	2,137,500		—
MISS NORA G PEARL	2,583,577		2,695,145
	285,432,054		303,211,277
Other fixed assets, net	3,214,618		3,081,378
Total fixed assets, net	$	288,646,672	$	306,292,655
Vessels under capital lease
m/v BULK DESTINY	$	22,730,776	$	23,153,850
m/v BULK BEOTHUK	6,684,671		6,840,362
m/v BULK TRIDENT	$	12,961,520	—
	$	42,376,967	$	29,994,212

⁽¹⁾The Company had a deposit on a 2006 built Panamax (renamed m/v Bulk PODS) which was delivered on August 1, 2018.

The Company also operates two dry bulk vessels under bareboat charters accounted for as operating leases, as discussed in Note 7.

Long-lived Assets Impairment Considerations. The carrying values of the Company’s vessels may not represent their fair market value or the amount that could be obtained by selling the vessel at any point in time because the market prices of second-hand vessels tend to fluctuate with changes in charter rates and the pricing of new vessels, which tend to be cyclical. The carrying value of each group of vessels classified as held and used are reviewed for potential impairment when events or changes in circumstances indicate that the carrying value of a particular group may not be fully recoverable. In such instances, an impairment charge would be recognized if the estimate of the undiscounted future cash flows expected to result from the use of the group and its eventual disposition is less than its carrying value. This assessment is made at the group level, which represents the lowest level for which identifiable cash flows are largely independent of other groups of assets. The asset groups established by the Company are defined by vessel size and major characteristic or trade.

The significant factors and assumptions used in the undiscounted projected net operating cash flow analysis include the Company’s estimate of future time charter equivalent "TCE" rates based on current rates under existing charters and contracts. When existing contracts expire, the Company uses an estimated TCE based on actual results and extends these rates out to the end of the vessel’s useful life. TCE rates can be highly volatile, may affect the fair value of the Company’s vessels and may have a significant impact on the Company’s ability to recover the carrying amount of its fleet. Accordingly, the volatility is contemplated in the undiscounted projected net operating cash flow by using a sensitivity analysis based on percent changes in the TCE rates. The Company prepares a series of scenarios in an attempt to capture the range of possible trends and outcomes. Projected net operating cash flows are net of brokerage and address commissions and assume no revenue on scheduled offhire days. The Company uses the current vessel operating expense budget, estimated costs of drydocking and historical general and administrative expenses as the basis for its expected outflows, and applies an inflation factor it considers appropriate. The net of these inflows and outflows, plus an estimated salvage value, constitutes the projected undiscounted future cash flows. If these projected cash flows do not exceed the carrying value of the asset group, an impairment charge would be recognized.

At June 30, 2018 and June 30, 2017, the Company identified potential triggering events that resulted from sale and leaseback financing arrangements transacted in those periods. As a result, the Company evaluated each asset group for impairment by estimating the total undiscounted cash flows expected to result from the use of the asset group and its eventual disposal. The estimated undiscounted future cash flows were higher than the carrying amount of the vessels in the Company's fleet and as such, no loss on impairment was recognized.

The Company did not identify and therefore, did not test for recoverability as of March 31, 2018 or December 31, 2017.

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Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt

Debt

Long-term debt consists of the following: 

	June 30, 2018			December 31, 2017
	(unaudited)
Bulk Trident Secured Note	$	—		$	3,452,500
Bulk Juliana Secured Note (1)	507,033			1,521,095
Bulk Phoenix Secured Note (1)	3,588,089			4,473,805
Bulk Nordic Odin Ltd., Bulk Nordic Olympic Ltd. Bulk Nordic Odyssey Ltd., Bulk Nordic Orion Ltd. and Bulk Nordic Oshima Ltd. Amended and Restated Loan Agreement (2)	66,075,000			69,825,000
Term Loan Facility of USD 13,000,000 (Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd.)	5,141,280			5,793,460
Bulk Nordic Oasis Ltd. Loan Agreement (2)	17,750,000			18,500,000
Bulk Nordic Six Ltd. Loan Agreement	27,590,000			28,803,333
Bulk Freedom Loan Agreement	4,800,000			5,150,000
109 Long Wharf Commercial Term Loan	867,666			922,466
Phoenix Bulk Carriers (US) LLC Automobile Loan	—			23,090
Total	126,319,068			138,464,749
Less: unamortized bank fees	(1,905,769		)	(1,869,780		)
	124,413,299			136,594,969
Less: current portion	(17,319,091		)	(18,979,335		)
Secured long-term debt, net	$	107,094,208		$	117,615,634

⁽¹⁾  The Bulk Juliana Secured Note and the Bulk Phoenix Secured Note are cross-collateralized by the m/v Bulk Juliana and the m/v Bulk Newport and are guaranteed by the Company.

⁽²⁾  The borrower under this facility is NBHC, of which the Company and its joint venture partners, STST and ASO2020, each own one-third. NBHC is consolidated in accordance with Accounting Standards Codification ("ASC") 810, Consolidation, and as such, amounts pertaining to the non-controlling ownership held by these third parties in the financial position of NBHC are reported as non-controlling interest in the accompanying balance sheets.

The Senior Secured Post-Delivery Term Loan Facility

On April 14, 2017, the Company, through its wholly owned subsidiaries, Bulk Pangaea, Bulk Patriot, Bulk Juliana, Bulk Trident and Bulk Phoenix, entered into the Fourth Amendatory Agreement, (the "Fourth Amendment"), amending and supplementing the Loan Agreement dated April 15, 2013, as amended by a First Amendatory Agreement dated May 16, 2013, the Second Amendatory Agreement dated August 28, 2013 and the Third Amendatory Agreement dated July 14, 2016. The Fourth Amendment advanced the final repayment dates for Bulk Pangaea and Bulk Patriot, which have since been repaid, and extended the final maturity date and modified the repayment schedules, as follows: 

Bulk Trident Secured Note

Initial amount of $10,200,000, entered into in April 2012, for the acquisition of the m/v Bulk Trident. The Fourth Amendment extends the final maturity date and modifies the repayment schedule. The first and second quarterly installments following the amendment were increased to $650,000 and the third and fourth installments were increased to $435,000. These are followed by two installments of $327,500 and three of $300,000. A balloon payment of $1,462,500 is payable on July 19, 2019. The interest rate was fixed at 4.29% through April 19, 2017 and is floating at LIBOR plus 3.50% (5.81% at June 30, 2018), since April 19, 2017.

In June, 2018, the Company sold the m/v Bulk Trident and simultaneously leased the vessel back under a bareboat charter for a period of eight years (see Note 7). Approximately $2,700,000 of proceeds from the sale were used to repay the Bulk Trident Secured Note.

Bulk Juliana Secured Note

Initial amount of $8,112,500, entered into in April 2012, for the acquisition of the m/v Bulk Juliana. The Fourth Amendment did not change this tranche, the balance of which was payable in six quarterly installments of $507,031. The final payment was made on July 19, 2018. The interest rate was fixed at 4.38%.

Bulk Phoenix Secured Note

Initial amount of $10,000,000, entered into in May 2013, for the acquisition of m/v Bulk Newport. The Fourth Amendment did not change this tranche, the balance of which is payable in two installments of $700,000 and seven installments of $442,858. A balloon payment of $1,816,659 is payable on July 19, 2019. The interest rate is fixed at 5.09%.

The agreement contains financial covenants that require the Company to maintain a minimum net worth and minimum liquidity, on a consolidated basis. The facility also contains a consolidated leverage ratio and a consolidated debt service coverage ratio. In addition, the facility contains other Company and vessel related covenants that, among other things, restrict changes in management and ownership of the vessel, declaration of dividends, further indebtedness and mortgaging of a vessel without the bank’s prior consent. It also requires minimum collateral maintenance, which is tested at the discretion of the lender. As of June 30, 2018 and December 31, 2017, the Company was in compliance with these covenants.

Bulk Nordic Odin Ltd., Bulk Nordic Olympic Ltd. Bulk Nordic Odyssey Ltd., Bulk Nordic Orion Ltd. And Bulk Nordic Oshima Ltd. – Dated September 28, 2015 - Amended and Restated Loan Agreement

The amended agreement advanced $21,750,000 in respect of each the m/v Nordic Odin and the m/v Nordic Olympic; $13,500,000 in respect of each the m/v Nordic Odyssey and the m/v Nordic Orion, and $21,000,000 in respect of the m/v Nordic Oshima.

The agreement requires repayment of the advances as follows:

In respect of the Odin and Olympic advances, repayment to be made in 28 equal quarterly installments of $375,000 per borrower (one of which was paid prior to the amendment by each borrower) and balloon payments of $11,233,150 due with each of the final installments in January 2022.

In respect of the Odyssey and Orion advances, repayment to be made in 20 quarterly installments of $375,000 per borrower and balloon payments of $5,677,203 due with each of the final installments in September 2020.

In respect of the Oshima advance, repayment to be made in 28 equal quarterly installments of $375,000 and a balloon payment of $11,254,295 due with the final installment in September 2021.

Interest on 50% of the advances to Odyssey and Orion was fixed at 4.24% in March 2017. Interest on the remaining advances to Odyssey and Orion is floating at LIBOR plus 2.40% (4.71% at June 30, 2018). Interest on 50% of the advances to Odin and Olympic was fixed at 3.95% in January 2017. Interest on the remaining advances to Odin and Olympic was floating at LIBOR plus 2.0% and was fixed at 4.07% on April 27, 2017. Interest on 50% of the advance to Oshima was fixed at 4.16% in January 2017. Interest on the remaining advance to Oshima is floating at LIBOR plus 2.25% (4.56% at June 30, 2018).

The amended loan is secured by first preferred mortgages on the m/v Nordic Odin, m/v Nordic Olympic, m/v Nordic Odyssey, m/v Nordic Orion and m/v Nordic Oshima, the assignment of earnings, insurances and requisite compensation of the five entities, and by guarantees of their shareholders.

The amended agreement contains one financial covenant that requires the Company to maintain minimum liquidity and a collateral maintenance ratio clause, which requires the aggregate fair market value of the vessels plus the net realizable value of any additional collateral provided, to remain above defined ratios. At June 30, 2018 and December 31, 2017, the Company was in compliance with this covenant.

The Bulk Nordic Oasis Ltd. - Loan Agreement - Dated December 11, 2015

The agreement advanced $21,500,000 in respect of the m/v Nordic Oasis. The agreement requires repayment of the advance in 24 equal quarterly installments of $375,000 beginning on March 28, 2016 and a balloon payment of $12,500,000 due with the final installment in March 2022. Interest on this advance is fixed at 4.30%.

The loan is secured by a first preferred mortgage on the m/v Nordic Oasis, the assignment of earnings, insurances and requisite compensation of the entity, and by guarantees of its shareholders. Additionally, the agreement contains a collateral maintenance ratio clause which requires the fair market value of the vessel plus the net realizable value of any additional collateral previously provided, to remain above defined ratios. As of June 30, 2018 and December 31, 2017, the Company was in compliance with this covenant.

Term Loan Facility of USD 13,000,000 (Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd.)

Barents and Bothnia entered into a secured Term Loan Facility of $13,000,000 in two tranches of $6,500,000 which were drawn in conjunction with the delivery of the m/v Bulk Bothnia on January 23, 2014 and the m/v Bulk Barents on March 7, 2014. The loan is secured by mortgages on the m/v Nordic Bulk Barents and m/v Nordic Bulk Bothnia and is guaranteed by the Company.

The facility bears interest at LIBOR plus 2.50% (4.81% at June 30, 2018). The loan requires repayment in 22 equal quarterly installments of $163,045 (per borrower) beginning in June 2014, one installment of $163,010 (per borrower) and a balloon payment of $1,755,415 (per borrower) due in December 2019. In addition, any cash in excess of $750,000 per borrower on any repayment date shall be applied toward prepayment of the relevant loan in inverse order, so the balloon payment is prepaid first. The agreement also contains a profit split in respect of the proceeds from the sale of either vessel and a minimum value clause ("MVC"). The Company was in compliance with this covenant at June 30, 2018 and December 31, 2017.

The Amended Senior Facility - Dated December 21, 2017 (previously identified as Bulk Nordic Six Ltd. - Loan Agreement - Dated December 21, 2016)

The agreement advanced $19,500,000 in respect of the m/v Bulk Endurance on January 7, 2017, in two tranches. The agreement requires repayment of Tranche A, totaling $16,000,000, in three equal quarterly installments of $100,000 beginning on April 7, 2017 and, thereafter, 17 equal quarterly installments of $266,667 and a balloon payment of $11,667,667 due with the final installment in March 2022. Interest on this advance was fixed at 4.74% on March 27, 2017. The agreement also advanced $3,500,000 under Tranche B, which is payable in 18 equal quarterly installments of $65,000 beginning on October 7, 2017, and a balloon payment of $2,330,000 due with the final installment in March 2022. Interest on this advance is floating at LIBOR plus 6.00% (8.31% at June 30, 2018).

The amended agreement advanced $10,000,000 in respect of the m/v Bulk Pride on December 21, 2017, in two tranches. The agreement requires repayment of Tranche C, totaling $8,500,000, in 16 equal quarterly installments of $275,000 beginning in March 2018 and a balloon payment of $4,100,000 due with the final installment in December 2021. Interest on this advance was fixed at 5.74% as of May 2018. The agreement also advanced $1,500,000 under Tranche D, which is payable in 4 equal quarterly installments of $375,000 beginning on August 21, 2018. Interest on this advance is floating at LIBOR plus 6.00% (8.31% at June 30, 2018).

The loan is secured by a first preferred mortgages on the m/v Bulk Endurance and the m/v Bulk Pride, the assignment of earnings, insurances and requisite compensation of the entity, and by guarantees of its shareholders. Additionally, the agreement contains a minimum liquidity requirement, positive working capital of the borrower and a collateral maintenance ratio clause which requires the fair market value of the vessel plus the net realizable value of any additional collateral previously provided, to remain above defined ratios. At June 30, 2018 and December 31, 2017, the Company was in compliance with these covenants.

The Bulk Freedom Corp. Loan Agreement -- Dated June 14, 2017

The agreement advanced $5,500,000 in respect of the m/v Bulk Freedom on June 14, 2017. The agreement requires repayment of the loan in 8 quarterly installments of $175,000 and 12 quarterly installments of $150,000 beginning on September 14, 2017. A balloon payment of $2,300,000 is due with the final installment. The facility bears interest at LIBOR plus a margin of 3.75%. On June 14, 2018, the Company elected to fix rates for the following four quarterly periods. The rate at June 30, 2018 is 6.09%, increasing quarterly to 6.51% for the installment due June 14, 2019.

The loan is secured by a first preferred mortgage on the m/v Bulk Freedom, the assignment of earnings, insurances and requisite compensation of the entity, and by guarantees of its shareholders. Additionally, the agreement contains a collateral maintenance ratio clause which requires the fair market value of the vessel plus the net realizable value of any additional collateral previously provided, to remain above defined ratios. At June 30, 2018 and December 31, 2017, the Company was in compliance with these covenants.

109 Long Wharf Commercial Term Loan

Initial amount of $1,096,000 entered into on May 27, 2016. The Long Wharf Construction to Term Loan was repaid from the proceeds of this new facility. The loan is payable in 120 equal monthly installments of $9,133. Interest is floating at the 30 day LIBOR plus 2.0% (4.31% at June 30, 2018). The loan is collateralized by all real estate located at 109 Long Wharf, Newport, RI, and a corporate guarantee of the Company. The loan contains a maximum loan to value covenant and a debt service coverage ratio. At June 30, 2018 and December 31, 2017, the Company was in compliance with these covenants.

Phoenix Bulk Carriers (US) LLC Automobile Loan

The Company purchased a commercial vehicle for use at the site of its port project on the United States' East Coast. The total loan amount of $29,435 is payable in 60 equal monthly installments of $539. Interest is fixed at 3.74%. The vehicle was sold in January 2018 and the loan was repaid.

The future minimum annual payments (excluding unamortized bank fees) under the debt agreements are as follows:

	Years ending
	June 30,
	(unaudited)
2019	$	17,319,091
2020	17,789,847
2021	20,490,674
2022	70,290,190
2023	109,600
Thereafter	319,666
	$	126,319,068

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Derivative Instruments and Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Instruments and fair Value Measurements

Derivative Instruments and Fair Value Measurements

Forward freight agreements

The Company assesses risk associated with fluctuating future freight rates and, when appropriate, hedges identified economic risk with appropriate derivative instruments, specifically forward freight agreements (FFAs). These economic hedges do not usually qualify for hedge accounting under ASC 815 and as such, the usage of such derivatives can lead to fluctuations in the Company’s reported results from operations on a period-to-period basis. The aggregate fair value of FFAs at June 30, 2018 and December 31, 2017 were assets of approximately $12,000 and $266,000, which are included in other current assets on the consolidated balance sheets. The change in the aggregate fair value of the FFAs during the three months ended June 30, 2018 and 2017 are gains of approximately $60,000 and losses of approximately $1,650,000, respectively, which are included in unrealized gain (loss) on derivative instruments in the accompanying consolidated statements of operations. The change in the aggregate fair value of the FFAs during the six months ended June 30, 2018 and 2017 are a loss of approximately $254,000 and a gain of approximately $1,075,000, respectively, which are included in unrealized gain (loss) on derivative instruments in the accompanying consolidated statements of operations.

Fuel Swap Contracts

The Company continuously monitors the market volatility associated with bunker prices and seeks to reduce the risk of such volatility through a bunker hedging program. During 2018 and 2017, the Company entered into fuel swap contracts that were not designated for hedge accounting. The aggregate fair value of these fuel swaps at June 30, 2018 and December 31, 2017 are assets of approximately $623,000 and $377,000, respectively, which are included in other current assets on the consolidated balance sheets. The change in the aggregate fair value of the fuel swaps during the three months ended June 30, 2018 and 2017 are gains of approximately    $493,000 and $173,000, respectively, which are included in unrealized gain (loss) on derivative instruments in the accompanying consolidated statements of operations. The change in the aggregate fair value of the fuel swaps during the six months ended June 30, 2018 and 2017 are gains of approximately $245,000 and losses of approximately $585,000, respectively, which are included in unrealized gain (loss) on derivative instruments in the accompanying consolidated statements of operations.

The three levels of the fair value hierarchy established by ASC 820, Fair Value Measurements and Disclosures, in order of priority are as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. Our Level 1 fair value measurements include cash, money-market accounts and restricted cash accounts.

Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level 3 – Inputs that are unobservable (for example cash flow modeling inputs based on assumptions). 

The following table summarizes assets and liabilities measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017:

	Balance at
	June 30, 2018		Level 1		Level 2		Level 3
	(unaudited)
Margin accounts	$	340,664	$	340,664	$	—	$	—
Fuel swaps	$	622,512	$	—	$	622,512	$	—
Freight forward agreements	$	11,625	$	—	$	11,625	$	—

	Balance at December 31, 2017		Level 1		Level 2		Level 3
Margin accounts	$	912,981	$	912,981	$	—	$	—
Fuel swaps	$	377,273	$	—	$	377,273	$	—
Freight forward agreements	$	265,768	$	—	$	265,768	$	—

The estimated fair values of the Company’s forward freight agreements and fuel swap contracts are based on market prices obtained from an independent third-party valuation specialist based on published indexes. Such quotes represent the estimated amounts the Company would receive or pay to terminate the contracts.

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Related Party Transactions

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

	December 31, 2017		Activity			June 30, 2018
						(unaudited)
Included in accounts payable, accrued expenses and other current liabilities on the consolidated balance sheets:
Affiliated companies (trade payables)	$	1,421,920	90,289			$	1,512,209
Included in current related party debt on the consolidated balance sheets:
Loan payable – 2011 Founders Note	$	4,325,000	—			$	4,325,000
Interest payable in-kind - 2011 Founders Note (i)	684,597		(487,226		)	197,371
Promissory Note to Bulk Invest, Ltd.	2,000,000		(2,000,000		)	—
Total current related party debt	$	7,009,597	$	(2,487,226	)	$	4,522,371

⁽ⁱ⁾  Paid in cash

 In November 2014, the Company entered into a $5,000,000 Promissory Note (the “Note”) with Bulk Invest, Ltd., a company controlled by the Founders. The $2,000,000 outstanding balance on the Note was repaid on February 6, 2018.

On October 1, 2011, the Company entered into a $10,000,000 loan agreement with the Founders, which was payable on demand at the request of the lenders (the 2011 Founders Note). The note bears interest at a rate of 5%. The balance of the 2011 Founders Note was $4,325,000 at June 30, 2018 and December 31, 2017.

Under the terms of a technical management agreement between the Company and Seamar Management S.A. (“Seamar”), an equity method investee, Seamar is responsible for the day-to-day operations for certain of the Company’s owned vessels and the two vessels operating under bareboat charters. During the three months ended June 30, 2018 and 2017, the Company incurred technical management fees of approximately $764,400 and $662,400, respectively, under this arrangement. During the six-month periods ended June 30, 2018 and 2017, the Company incurred technical management fees of approximately $1,520,400 and $1,304,400, respectively, under this arrangement. These fees are included in vessel operating expenses in the consolidated statements of income. The total amounts payable to Seamar at June 30, 2018 and December 31, 2017 were approximately $1,512,000 and $1,422,000, respectively.

Dividends payable consist of the following, all of which are payable to related parties:

	2013 common stock dividend		2013 Odyssey and Orion dividend (1)			Total
Balance at December 31, 2017	6,333,598		904,803			7,238,401
Payments	—		(904,803		)	(904,803		)
Balance at June 30, 2018	$	6,333,598	$	—		$	6,333,598

⁽¹⁾Paid on February 13, 2018

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Vessel Sales and Leasebacks Accounted for as Capital Leases

The Company's fleet includes three vessels financed under sale and leaseback financing arrangements accounted for as capital leases. The selling price of the m/v Bulk Destiny to the new owner (lessor) was $21.0 million and the fair value of the vessel at the inception of the lease was $24.0 million. The difference between the selling price and the fair value of the vessel was recorded as prepaid rent and is being amortized over the 25 year estimated useful life of the vessel. Prepaid rent is included in vessel under capital lease on the consolidated balance sheet at June 30, 2018. Minimum lease payments fluctuate based on three-month LIBOR and are payable quarterly over the seven year lease term, with a purchase obligation of $11,200,000 due with the final lease payment in January 2024. Interest is floating at LIBOR plus 2.75% (5.06% including the margin, at inception of the lease). The Company will own this vessel at the end of the lease term.

The selling price of the m/v Bulk Beothuk was $7,000,000 and the fair value was estimated to be the same. The lease is payable at $3,500 per day every fifteen days over the five year lease term, and a balloon payment of $4,000,000 is due with the final lease payment in June 2022. Interest is fixed at 11.83%. The Company will own this vessel at the end of the lease term.

The selling price of the m/v Bulk Trident was $13,000,000 and the Company has the option to repurchase the asset for this amount under a capital lease. The minimum lease payments fluctuate based on three-month LIBOR and are payable monthly over the eight-year lease term. The Company has the option to purchase the vessel at the end of the third year of the lease or thereafter, or in the case of default by the lessor, at any time during the lease term. Interest is floating at LIBOR plus 1.7% (4.02% including the margin, at inception of the lease). The Company will own this vessel at the end of the lease term.

Long-term Contracts Accounted for as Operating Leases

On July 5, 2016, the Company entered into five-year bareboat charter agreements with the owner of two vessels (which were then renamed the m/v Bulk Power and the m/v Bulk Progress). Under a bareboat charter, the charterer is responsible for all of the vessel operating expenses in addition to the charter hire. The agreement also contains a profit sharing arrangement. Scheduled increases in charter hire are included in minimum rental payments and recognized on a straight-line basis over the lease term. Profit sharing is excluded from minimum lease payments and recognized as incurred. The rent expense under these bareboat charters (which are classified as operating leases) totals approximately $365,000 per annum. The vessels' owner has entered in to a memorandum of agreement to sell the vessels. The Company has agreed to release the owner from its commitment under the bareboat charter and will be compensated in the form of commission on the vessel sales.

The Company leases office space for its Copenhagen operations. The lease can be terminated with six months prior notice after June 30, 2018.

Future minimum lease payments under capital leases and operating leases with initial or remaining terms in excess of one year at June 30, 2018 were:

	Capital Lease		Operating Leases
2019	$	5,672,988	$	475,582
2020	5,606,526		365,446
2021	5,514,521		365,446
2022	9,323,848		12,015
2023	4,083,174		—
Thereafter	18,254,360		—
Total minimum lease payments	$	48,455,417	$	1,218,489
Less amount representing interest	9,669,077
Present value of minimum lease payments	38,786,340
Less current portion	3,464,880
Long-term portion	$	35,321,460

The Company is subject to certain asserted claims arising in the ordinary course of business. The Company intends to vigorously assert its rights and defend itself in any litigation that may arise from such claims. While the ultimate outcome of these matters could affect the results of operations of any one year, and while there can be no assurance with respect thereto, management believes that after final disposition, any financial impact to the Company would not be material to its consolidated financial position, results of operations, or cash flows.

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Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Event [Line Items]

Subsequent Events [Text Block]

Note 8. Subsequent Events

On August 2, 2018, the Company entered into a sale-leaseback financing arrangement whereby the m/v Bulk PODS, which was delivered on August 1, 2018, will be sold for $16.8 million and simultaneously leased back under a bareboat charter for a period of eight years. The agreement requires a $2.0 million bareboat charter hire down payment to be deducted from the selling price at the time of delivery to the buyer. The lease is payable monthly at a rate of $5,510 per day. Interest if floating at LIBOR plus 1.7% (approximately 4.1% including the margin, at inception of the lease).

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Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Advance hire, prepaid expenses and other current assets were comprised of the following: 

	June 30, 2018		December 31, 2017
	(unaudited)
Advance hire	$	8,294,453	$	3,628,417
Prepaid expenses	835,423		460,445
Accrued receivables	4,429,108		6,153,212
Other current assets	1,603,131		1,790,198
	$	15,162,115	$	12,032,272

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable, accrued expenses and other current liabilities were comprised of the following:

	June 30, 2018		December 31, 2017
	(unaudited)
Accounts payable	$	21,555,260	$	15,686,235
Accrued voyage expenses	6,482,350		11,923,445
Accrued interest	560,740		611,406
Other accrued liabilities	1,369,029		960,190
	$	29,967,379	$	29,181,276

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

	As of June 30, 2018
Consolidated Balance Sheets	As Reported		Effect of ASC 606 Adoption		Under Prior Accounting
Advance hire, prepaid expenses and other current assets	15,162,115		1,668,595		13,493,520
Total current assets	99,855,429		1,668,595		98,186,834
Total assets	434,379,068		1,668,595		432,710,473
Deferred revenue	9,028,015		2,026,544		7,001,471
Total current liabilities	70,635,334		2,026,544		68,608,790
Accumulated deficit	(1,921,804	)	(357,949	)	(1,563,855	)
Total liabilities and stockholders' equity	434,379,068		1,668,595		432,710,473
	For the Six Months Ended June 30, 2018
Consolidated Statements of Cash Flows	As Reported		Effect of ASC 606 Adoption		Under Prior Accounting
Net Income	12,407,955		2,065,086		10,342,869
Change in operating assets and liabilities:
Advance hire, prepaid expenses and other current assets	(844,650	)	637,125		(1,481,775	)
Deferred Revenue	(1,516,665	)	(2,702,211	)	1,185,546

	For the Three Months Ended June 30, 2018				For the Six Months Ended June 30, 2018
Consolidated Statements of Operations	As Reported	Effect of ASC 606 Adoption		Under Prior Accounting	As Reported	Effect of ASC 606 Adoption	Under Prior Accounting
Voyage revenue	81,847,649	98,286		81,749,363	152,166,843	2,702,211	149,464,632
Total revenues	96,823,202	98,286		96,724,916	175,796,495	2,702,211	173,094,284
Voyage expense	38,027,489	(170,093	)	38,197,582	68,195,517	86,233	68,109,284
Charter hire expense	30,683,892	(139,186	)	30,823,078	53,379,827	550,892	52,828,935
Total Expenses	88,388,256	(309,279	)	88,697,535	159,567,870	637,125	158,930,745
Income from Operations	8,434,946	407,565		8,027,381	16,228,625	2,065,086	14,163,539
Net Income	6,872,744	407,565		6,465,179	12,407,955	2,065,086	10,342,869
Net income attributable to Pangaea Logistics Solutions Ltd.	5,773,023	407,565		5,365,458	10,098,017	2,065,086	8,032,931
Earnings per common share, basic	0.14	0.01		0.13	0.24	0.05	0.19
Earnings per common share, diluted	0.13	0.01		0.12	0.24	0.05	0.19

Restrictions on Cash and Cash Equivalents [Table Text Block]

	June 30, 2018		December 31, 2017
Cash and cash equivalents	$	48,919,920	$	34,531,812
Restricted cash	3,500,000		4,000,000
Total cash, cash equivalents and restricted cash	$	52,419,920	$	38,531,812

XML

Fixed Assets (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property Plant and Equipment Schedule of Significant Acquisitions

At June 30, 2018, the Company owned eighteen dry bulk vessels including three financed under capital leases; and one barge. The carrying amounts of these vessels, including unamortized drydocking costs, are as follows: 

	June 30,		December 31,
	2018		2017
Owned vessels	(unaudited)
m/v BULK PANGAEA	$	15,670,750	$16,398,650
m/v BULK PATRIOT	10,468,963		11,111,437
m/v BULK JULIANA	10,999,480		11,411,052
m/v NORDIC ODYSSEY	24,959,120		25,634,743
m/v NORDIC ORION	25,781,699		26,467,928
m/v BULK TRIDENT	—		14,195,098
m/v BULK NEWPORT	14,475,047		13,139,242
m/v NORDIC BARENTS	4,611,450		4,846,522
m/v NORDIC BOTHNIA	4,559,934		4,787,388
m/v NORDIC OSHIMA	29,510,052		30,122,172
m/v NORDIC ODIN	29,935,017		30,548,435
m/v NORDIC OLYMPIC	29,761,407		30,371,285
m/v NORDIC OASIS	30,994,718		31,608,785
m/v BULK ENDURANCE	26,525,712		27,030,918
m/v BULK FREEDOM	8,650,902		8,834,746
m/v BULK PRIDE	13,806,726		14,007,731
m/v BULK PODS (1)	2,137,500		—
MISS NORA G PEARL	2,583,577		2,695,145
	285,432,054		303,211,277
Other fixed assets, net	3,214,618		3,081,378
Total fixed assets, net	$	288,646,672	$	306,292,655
Vessels under capital lease
m/v BULK DESTINY	$	22,730,776	$	23,153,850
m/v BULK BEOTHUK	6,684,671		6,840,362
m/v BULK TRIDENT	$	12,961,520	—
	$	42,376,967	$	29,994,212

⁽¹⁾The Company had a deposit on a 2006 built Panamax (renamed m/v Bulk PODS) which was delivered on August 1, 2018.

The Company also operates two dry bulk vessels under bareboat charters accounted for as operating leases, as discussed in Note 7.

XML

Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Long-term debt consists of the following: 

	June 30, 2018			December 31, 2017
	(unaudited)
Bulk Trident Secured Note	$	—		$	3,452,500
Bulk Juliana Secured Note (1)	507,033			1,521,095
Bulk Phoenix Secured Note (1)	3,588,089			4,473,805
Bulk Nordic Odin Ltd., Bulk Nordic Olympic Ltd. Bulk Nordic Odyssey Ltd., Bulk Nordic Orion Ltd. and Bulk Nordic Oshima Ltd. Amended and Restated Loan Agreement (2)	66,075,000			69,825,000
Term Loan Facility of USD 13,000,000 (Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd.)	5,141,280			5,793,460
Bulk Nordic Oasis Ltd. Loan Agreement (2)	17,750,000			18,500,000
Bulk Nordic Six Ltd. Loan Agreement	27,590,000			28,803,333
Bulk Freedom Loan Agreement	4,800,000			5,150,000
109 Long Wharf Commercial Term Loan	867,666			922,466
Phoenix Bulk Carriers (US) LLC Automobile Loan	—			23,090
Total	126,319,068			138,464,749
Less: unamortized bank fees	(1,905,769		)	(1,869,780		)
	124,413,299			136,594,969
Less: current portion	(17,319,091		)	(18,979,335		)
Secured long-term debt, net	$	107,094,208		$	117,615,634

⁽¹⁾  The Bulk Juliana Secured Note and the Bulk Phoenix Secured Note are cross-collateralized by the m/v Bulk Juliana and the m/v Bulk Newport and are guaranteed by the Company.

⁽²⁾  The borrower under this facility is NBHC, of which the Company and its joint venture partners, STST and ASO2020, each own one-third. NBHC is consolidated in accordance with Accounting Standards Codification ("ASC") 810, Consolidation, and as such, amounts pertaining to the non-controlling ownership held by these third parties in the financial position of NBHC are reported as non-controlling interest in the accompanying balance sheets.

Schedule of Maturities of Long-term Debt

The future minimum annual payments (excluding unamortized bank fees) under the debt agreements are as follows:

	Years ending
	June 30,
	(unaudited)
2019	$	17,319,091
2020	17,789,847
2021	20,490,674
2022	70,290,190
2023	109,600
Thereafter	319,666
	$	126,319,068

XML

Derivative Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table summarizes assets and liabilities measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017:

	Balance at
	June 30, 2018		Level 1		Level 2		Level 3
	(unaudited)
Margin accounts	$	340,664	$	340,664	$	—	$	—
Fuel swaps	$	622,512	$	—	$	622,512	$	—
Freight forward agreements	$	11,625	$	—	$	11,625	$	—

	Balance at December 31, 2017		Level 1		Level 2		Level 3
Margin accounts	$	912,981	$	912,981	$	—	$	—
Fuel swaps	$	377,273	$	—	$	377,273	$	—
Freight forward agreements	$	265,768	$	—	$	265,768	$	—

XML

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

	December 31, 2017		Activity			June 30, 2018
						(unaudited)
Included in accounts payable, accrued expenses and other current liabilities on the consolidated balance sheets:
Affiliated companies (trade payables)	$	1,421,920	90,289			$	1,512,209
Included in current related party debt on the consolidated balance sheets:
Loan payable – 2011 Founders Note	$	4,325,000	—			$	4,325,000
Interest payable in-kind - 2011 Founders Note (i)	684,597		(487,226		)	197,371
Promissory Note to Bulk Invest, Ltd.	2,000,000		(2,000,000		)	—
Total current related party debt	$	7,009,597	$	(2,487,226	)	$	4,522,371

⁽ⁱ⁾  Paid in cash

Schedule of Dividends Payable [Table Text Block]

Dividends payable consist of the following, all of which are payable to related parties:

	2013 common stock dividend		2013 Odyssey and Orion dividend (1)			Total
Balance at December 31, 2017	6,333,598		904,803			7,238,401
Payments	—		(904,803		)	(904,803		)
Balance at June 30, 2018	$	6,333,598	$	—		$	6,333,598

⁽¹⁾Paid on February 13, 2018

XML

Commitments and Contingencies Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments for Leases [Table Text Block]

Future minimum lease payments under capital leases and operating leases with initial or remaining terms in excess of one year at June 30, 2018 were:

	Capital Lease		Operating Leases
2019	$	5,672,988	$	475,582
2020	5,606,526		365,446
2021	5,514,521		365,446
2022	9,323,848		12,015
2023	4,083,174		—
Thereafter	18,254,360		—
Total minimum lease payments	$	48,455,417	$	1,218,489
Less amount representing interest	9,669,077
Present value of minimum lease payments	38,786,340
Less current portion	3,464,880
Long-term portion	$	35,321,460

XML

General Information (Details Textual)	Aug. 07, 2018 shares	Jun. 30, 2018 USD ($) vessel shares	Dec. 31, 2017 USD ($) shares
Property, Plant and Equipment [Line Items]
Shares of common stock sold to institutional and accredited investors | shares		44,063,986	43,794,526
Common Stock, Value, Issued | $		$ 4,406	$ 4,379
Common Stock, Shares, Outstanding | shares		44,063,986	43,794,526
Entity Common Stock, Shares Outstanding | shares	44,063,986
Panamax Ice Class 1A [Member]
Property, Plant and Equipment [Line Items]
Number of vessels		6
Panamax [Member]
Property, Plant and Equipment [Line Items]
Number of vessels		2
Supramax [Member]
Property, Plant and Equipment [Line Items]
Number of vessels		6
Handymax Ice Class 1A [Member]
Property, Plant and Equipment [Line Items]
Number of vessels		2
Ultramax Ice Class 1C [Member]
Property, Plant and Equipment [Line Items]
Number of vessels		2

XML

Basis of Presentation (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advance Hire	$ 8,294,453	$ 3,628,417
Prepaid expenses	835,423	460,445
Accrued Receivable	4,429,108	6,153,212
Other current assets	1,603,131	1,790,198
Advance hire, prepaid expenses and other current assets	$ 15,162,115	$ 12,032,272

XML

Basis of Presentation (Details 1) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts Payable	$ 21,555,260	$ 15,686,235
Accrued voyage expenses	6,482,350	11,923,445
Accrued interest	560,740	611,406
Other accrued liabilities	1,369,029	960,190
Accounts payable accrued expenses and other current liabilities	$ 29,967,379	$ 29,181,276

XML

Basis of Presentation Basis of Presentation (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid Expense and Other Assets, Current	$ 15,162,115		$ 15,162,115			$ 12,032,272
Assets, Current	99,855,429		99,855,429			83,010,221
Assets	434,379,068		434,379,068			423,297,088
Deferred Revenue, Current	9,028,015		9,028,015			5,815,924
Liabilities, Current	70,635,334		70,635,334			70,010,153
Retained Earnings (Accumulated Deficit)	(1,921,804)		(1,921,804)			(9,596,785)
Liabilities and Equity	434,379,068		434,379,068			$ 423,297,088
Voyage Revenue	81,847,649	$ 80,231,015	152,166,843	$ 157,919,464
Revenues	96,823,202	91,423,778	175,796,495	175,878,899
Voyage Expense	38,027,489	38,597,148	68,195,517	79,869,067
Charter Hire Expense	30,683,892	33,174,063	53,379,827	56,375,218
Operating Expenses	88,388,256	92,613,600	159,567,870	177,424,473
Operating Income (Loss)	8,434,946	(1,189,822)	16,228,625	(1,545,574)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	6,872,744	(4,175,802)	12,407,955	(4,179,484)
Net Income (Loss) Attributable to Parent	$ 5,773,023	$ (4,737,181)	$ 10,098,017	$ (3,390,338)
Earnings Per Share, Diluted	$ 0.13	$ (0.13)	$ 0.24	$ (0.10)
Earnings Per Share, Basic	$ 0.14	$ (0.13)	$ 0.24	$ (0.10)
Increase (Decrease) in Prepaid Expense and Other Assets			$ (844,650)	$ (3,343,536)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations			20,805,756	8,351,412
Increase (Decrease) in Deferred Revenue			(1,516,665)	$ 482,485
impact of adopting asu 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid Expense and Other Assets, Current	$ 1,668,595		1,668,595		$ 2,305,720
Assets, Current	1,668,595		1,668,595
Assets	1,668,595		1,668,595
Deferred Revenue, Current	2,026,544		2,026,544
Liabilities, Current	2,026,544		2,026,544
Retained Earnings (Accumulated Deficit)	(357,949)		(357,949)
Liabilities and Equity	1,668,595		1,668,595
Voyage Revenue	98,286		2,702,211
Revenues	98,286		2,702,211
Voyage Expense	(170,093)		86,233
Charter Hire Expense	(139,186)		550,892
Operating Expenses	(309,279)		637,125
Operating Income (Loss)	407,565		2,065,086
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	407,565		2,065,086
Net Income (Loss) Attributable to Parent	$ 407,565		$ 2,065,086
Earnings Per Share, Diluted	$ 0.01		$ 0.05
Earnings Per Share, Basic	$ 0.01		$ 0.05
Increase (Decrease) in Prepaid Expense and Other Assets			$ 637,125
Increase (Decrease) in Deferred Revenue			(2,702,211)
balances without adoption of asu 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid Expense and Other Assets, Current	$ 13,493,520		13,493,520
Assets, Current	98,186,834		98,186,834
Assets	432,710,473		432,710,473
Deferred Revenue, Current	7,001,471		7,001,471
Liabilities, Current	68,608,790		68,608,790
Retained Earnings (Accumulated Deficit)	(1,563,855)		(1,563,855)
Liabilities and Equity	432,710,473		432,710,473
Voyage Revenue	81,749,363		149,464,632
Revenues	96,724,916		173,094,284
Voyage Expense	38,197,582		68,109,284
Charter Hire Expense	30,823,078		52,828,935
Operating Expenses	88,697,535		158,930,745
Operating Income (Loss)	8,027,381		14,163,539
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	6,465,179		10,342,869
Net Income (Loss) Attributable to Parent	$ 5,365,458		$ 8,032,931
Earnings Per Share, Diluted	$ 0.12		$ 0.19
Earnings Per Share, Basic	$ 0.13		$ 0.19
Increase (Decrease) in Prepaid Expense and Other Assets			$ (1,481,775)
Increase (Decrease) in Deferred Revenue			$ 1,185,546

XML

Basis of Presentation Basis of Presentation (Details 3) - USD ($)	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 48,919,920	$ 34,531,812
Restricted Cash and Investments, Noncurrent	3,500,000	4,000,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 52,419,920	$ 38,531,812	$ 33,436,482	$ 28,422,949

XML

Basis of Presentation Basis of Presentation (Textual) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Basis Of Presentation And General Information [Line Items]
Prepaid Expense and Other Assets, Current		$ 15,162,115		$ 12,032,272
Assets, Current		99,855,429		83,010,221
Deferred Revenue, Current		9,028,015		5,815,924
Assets		434,379,068		423,297,088
Retained Earnings (Accumulated Deficit)		(1,921,804)		(9,596,785)
Liabilities, Current		70,635,334		70,010,153
Restricted Cash and Investments, Noncurrent		3,500,000		4,000,000
Accounting Standards Update 2014-09 [Member]
Basis Of Presentation And General Information [Line Items]
Deferred Revenue, Current			$ 4,700,000
Retained Earnings (Accumulated Deficit)			2,400,000
impact of adopting asu 2014-09 [Member]
Basis Of Presentation And General Information [Line Items]
Prepaid Expense and Other Assets, Current		1,668,595	$ 2,305,720
Deferred contract costs recognized during period	$ 1,359,317	3,665,037
Assets, Current		1,668,595
Deferred Revenue, Current		2,026,544
Assets		1,668,595
Retained Earnings (Accumulated Deficit)		(357,949)
Liabilities, Current		2,026,544
Senior Secured Post-Delivery Term Loan Facility [Member]
Basis Of Presentation And General Information [Line Items]
Restricted Cash and Investments, Noncurrent		1,000,000		$ 1,500,000
Bulk Nordic Odin, Bulk Nordic Olympic, Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Loan Agreement [Member] [Domain]
Basis Of Presentation And General Information [Line Items]
Restricted Cash and Investments, Noncurrent		$ 2,500,000

XML

Fixed Assets (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Vessels, net	$ 285,432,054	$ 303,211,277
Other fixed assets, net	3,214,618	3,081,378
Total fixed assets, net	288,646,672	306,292,655
Capital lease asset, net	42,376,967	29,994,212
mv BULK PANGAEA [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	15,670,750	16,398,650
mv BULK PATRIOT [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	10,468,963	11,111,437
mv BULK JULIANA [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	10,999,480	11,411,052
mv NORDIC ODYSSEY [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	24,959,120	25,634,743
mv Nordic Orion [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	25,781,699	26,467,928
mv BULK TRIDENT [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	0	14,195,098
Capital lease asset, net	12,961,520	0
mv BULK BEOTHUK [Member]
Property, Plant and Equipment [Line Items]
Capital lease asset, net	6,684,671	6,840,362
mv BULK NEWPORT [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	14,475,047	13,139,242
mv NORDIC BARENTS [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	4,611,450	4,846,522
mv NORDIC BOTHNIA [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	4,559,934	4,787,388
mv NORDIC OSHIMA [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	29,510,052	30,122,172
mv NORDIC OLYMPIC [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	29,935,017	30,548,435
mv NORDIC ODIN [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	29,761,407	30,371,285
mv Nordic Bulk Oasis [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	30,994,718	31,608,785
m/v Bulk Endurance [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	26,525,712	27,030,918
mv Bulk Freedom [Member]
Property, Plant and Equipment [Line Items]
Vessels, net	8,650,902	8,834,746
m/v Bulk Pride [Member]
Property, Plant and Equipment [Line Items]
Vessels And Vessel Improvements Property Plant And Equipement Gross	13,806,726	14,007,731
m/v Bulk PODS [Member] [Domain]
Property, Plant and Equipment [Line Items]
Vessels And Vessel Improvements Property Plant And Equipement Gross	2,137,500	0
Miss Nora G. Pearl [Member]
Property, Plant and Equipment [Line Items]
Vessels And Vessel Improvements Property Plant And Equipement Gross	2,583,577	2,695,145
m/v Bulk Destiny [Member]
Property, Plant and Equipment [Line Items]
Capital lease asset, net	$ 22,730,776	$ 23,153,850

XML

Fixed Assets (Details Textual) - USD ($)	Jul. 05, 2016	Jun. 15, 2017	Jan. 07, 2017
Property, Plant and Equipment [Line Items]
rental expense per year under bareboat charter, next 5 years	$ 365,000
mv BULK BEOTHUK [Member]
Property, Plant and Equipment [Line Items]
Capital Leased Assets, Gross		$ 7,000,000
m/v Bulk Destiny [Member]
Property, Plant and Equipment [Line Items]
Capital Leased Assets, Gross			$ 24,000,000

XML

Debt (Details) - USD ($)	Dec. 11, 2015	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Secured long-term debt, gross		$ 126,319,068	$ 138,464,749
Less: current portion		(17,319,091)	(18,979,335)
Less: unamortized debt issuance and bank fees		(1,905,769)	(1,869,780)
Secured long-term debt		107,094,208	117,615,634
Bulk Nordic Six Ltd. Loan Agreement [Domain]
Debt Instrument [Line Items]
Secured long-term debt, gross		27,590,000	28,803,333
Bulk Freedom Loan Agreement [Member]
Debt Instrument [Line Items]
Secured long-term debt, gross		4,800,000	5,150,000
Bulk Trident Secured Note [Member]
Debt Instrument [Line Items]
Secured long-term debt, gross		0	3,452,500
Bulk Juliana Secured Note [Member]
Debt Instrument [Line Items]
Secured long-term debt, gross		507,033	1,521,095
Bulk Phoenix Secured Note [Member]
Debt Instrument [Line Items]
Secured long-term debt, gross		3,588,089	4,473,805
Bulk Nordic Odin, Bulk Nordic Olympic, Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Loan Agreement [Member] [Domain]
Debt Instrument [Line Items]
Secured long-term debt, gross		66,075,000	69,825,000
Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd. [Member]
Debt Instrument [Line Items]
Secured long-term debt, gross		5,141,280	5,793,460
Bulk Nordic Oasis Ltd. Loan Agreement [Member]
Debt Instrument [Line Items]
Secured long-term debt, gross		17,750,000	18,500,000
Long Wharf Construction to Term Loan [Member]
Debt Instrument [Line Items]
Secured long-term debt, gross		867,666	922,466
mv Nordic Bulk Oasis [Member] | Primary Beneficiary
Debt Instrument [Line Items]
Ownership Percentage	33.33%
mv Nordic Bulk Oasis [Member] | Not Primary Beneficiary | ST Shipping and Transport Ltd. (STST) [Member]
Debt Instrument [Line Items]
Ownership Percentage	33.33%
mv Nordic Bulk Oasis [Member] | Not Primary Beneficiary | ASO 2020 Maritime S.A. (ASO2020) [Member]
Debt Instrument [Line Items]
Ownership Percentage	33.33%
PBC US LLC Automobile Loan [Member]
Debt Instrument [Line Items]
Secured long-term debt, gross		$ 0	$ 23,090

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Debt (Details 1)	Jun. 30, 2018 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2017	$ 17,319,091
2018	17,789,847
2019	20,490,674
2020	70,290,190
2021	109,600
Thereafter	319,666
Long-term Debt	$ 126,319,068

XML

Debt (Details Textual)													6 Months Ended
	Jun. 01, 2018 USD ($)	Dec. 21, 2017 USD ($)	Jun. 14, 2017 USD ($)	Apr. 19, 2017	Dec. 21, 2016 USD ($)	Sep. 19, 2016 USD ($) installment	May 27, 2016 USD ($) installment	Dec. 11, 2015 USD ($) installment	Sep. 28, 2015 USD ($) installment	Mar. 07, 2014 USD ($) tranche installment	May 31, 2013 USD ($) installment	Apr. 30, 2012 USD ($) installment	Jun. 30, 2018 USD ($)	Apr. 27, 2017	Mar. 31, 2017	Mar. 27, 2017	Jan. 31, 2017	Dec. 28, 2016	Sep. 30, 2016	Nov. 30, 2014 USD ($)	Jan. 23, 2014 USD ($)	Apr. 30, 2013
Secured Debt [Member] | Bulk Trident Secured Note [Member]
Debt Instrument [Line Items]
Face amount												$ 10,200,000
Interest rate, stated percentage																						4.29%
Periodic payment terms, balloon payment to be Paid												1,462,500
Basis spread on variable rate				3.50%
Debt Instrument, Interest Rate, Effective Percentage													5.81%
Repayments of Debt	$ 2,700,000
Secured Debt [Member] | Bulk Juliana Secured Note [Member]
Debt Instrument [Line Items]
Face amount												$ 8,112,500
Interest rate, stated percentage																						4.38%
Number of periodic payments | installment												6
Periodic payment, principal												$ 507,031
Secured Debt [Member] | Bulk Phoenix Secured Note [Member]
Debt Instrument [Line Items]
Face amount											$ 10,000,000
Interest rate, stated percentage																			5.09%
Periodic payment terms, balloon payment to be Paid											$ 1,816,659
Secured Debt [Member] | Bulk Phoenix Secured Note [Member] | Seven Equal Quarterly Installments [Member]
Debt Instrument [Line Items]
Number of periodic payments | installment											7
Periodic payment, principal											$ 442,858
Secured Debt [Member] | Bulk Phoenix Secured Note [Member] | two quarterly installments [Member]
Debt Instrument [Line Items]
Number of periodic payments | installment											2
Periodic payment, principal											$ 700,000
Secured Debt [Member] | Bulk Atlantic Secured Note [Member] | first and second installment [Member]
Debt Instrument [Line Items]
Periodic payment, principal												650,000
Secured Debt [Member] | Bulk Atlantic Secured Note [Member] | third and fourth installment [Member]
Debt Instrument [Line Items]
Periodic payment, principal												435,000
Secured Debt [Member] | Bulk Atlantic Secured Note [Member] | fifth and sixth installment [Member]
Debt Instrument [Line Items]
Periodic payment, principal												327,500
Secured Debt [Member] | Bulk Atlantic Secured Note [Member] | seventh, eighth, and ninth installment [Member]
Debt Instrument [Line Items]
Periodic payment, principal												$ 300,000
Secured Debt [Member] | Bulk Nordic Oasis Ltd. Loan Agreement [Member]
Debt Instrument [Line Items]
Face amount								$ 21,500,000
Interest rate, stated percentage																		4.30%
Periodic payment, principal								375,000
Periodic payment terms, balloon payment to be Paid								$ 12,500,000
Secured Debt [Member] | mv Nordic Bulk Oasis [Member]
Debt Instrument [Line Items]
Number of periodic payments | installment								24
Secured Debt [Member] | Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd [Member]
Debt Instrument [Line Items]
Face amount										$ 13,000,000
Periodic payment terms, balloon payment to be Paid										$ 1,755,415
Debt payment terms										In addition, any cash in excess of $750,000 per borrower on any repayment date shall be applied toward prepayment of the relevant loan in inverse order, so the balloon payment is prepaid first.
Basis spread on variable rate										2.50%
Debt Instrument, Interest Rate, Effective Percentage													4.81%
Number of tranches | tranche										2
Payment terms										$ 750,000
Secured Debt [Member] | Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd [Member] | Twenty Two Equal Quarterly Installments Per Borrower [Member]
Debt Instrument [Line Items]
Number of periodic payments | installment										22
Periodic payment, principal										$ 163,045
Secured Debt [Member] | Nordic Bulk Barents Ltd. and Nordic Bulk Bothnia Ltd [Member] | One Installment Per Borrower [Member]
Debt Instrument [Line Items]
Periodic payment, principal										163,010
Secured Debt [Member] | Nordic Bulk Bothina Ltd. [Member]
Debt Instrument [Line Items]
Long-term line of credit																					$ 6,500,000
Secured Debt [Member] | Nordic Bulk Barents Ltd. [Member]
Debt Instrument [Line Items]
Long-term line of credit										$ 6,500,000
Secured Debt [Member] | Bulk Nordic Six Ltd. Loan Agreement [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage																4.74%
Secured Debt [Member] | Bulk Freedom Loan Agreement [Member]
Debt Instrument [Line Items]
Face amount			$ 5,500,000
Periodic payment terms, balloon payment to be Paid			$ 2,300,000
Basis spread on variable rate					3.75%
Debt Instrument, Interest Rate, Effective Percentage													6.09%
Secured Debt [Member] | Bulk Freedom Loan Agreement [Member] | Twelve Equal Quarterly Installments [Member]
Debt Instrument [Line Items]
Number of periodic payments			12
Periodic payment, principal			$ 150,000
Secured Debt [Member] | Bulk Freedom Loan Agreement [Member] | Eight Equal Quarterly Installments [Member]
Debt Instrument [Line Items]
Number of periodic payments			8
Periodic payment, principal			$ 175,000
Secured Debt [Member] | Bulk Endurance Senior Tranche Loan [Member]
Debt Instrument [Line Items]
Face amount					$ 16,000,000
Secured Debt [Member] | 109 Long Wharf Commercial Term Loan [Member]
Debt Instrument [Line Items]
Face amount							$ 1,096,000
Number of periodic payments | installment							120
Periodic payment, principal							$ 9,133
Basis spread on variable rate							2.00%
Debt Instrument, Interest Rate, Effective Percentage													4.31%
Secured Debt [Member] | PBC US LLC Automobile Loan [Member]
Debt Instrument [Line Items]
Face amount						$ 29,435
Interest rate, stated percentage						3.74%
Number of periodic payments | installment						60
Periodic payment, principal						$ 539
mv NORDIC ODIN [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Face amount									$ 21,750,000
mv NORDIC ODIN [Member] | Secured Debt [Member] | Bulk Nordic Odin, Bulk Nordic Olympic, Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Loan Agreement [Member] [Domain]
Debt Instrument [Line Items]
Interest rate, stated percentage														4.07%			3.95%
Number of periodic payments | installment									28
Periodic payment, principal									$ 375,000
Periodic payment terms, balloon payment to be Paid									$ 11,233,150
Debt Instrument, Interest Rate, Portion Fixed																	50.00%
mv NORDIC ODIN [Member] | Secured Debt [Member] | Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Debt Agreement [Member]
Debt Instrument [Line Items]
Basis spread on variable rate									2.00%
Odyssey And Orion [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Face amount									$ 13,500,000
Odyssey And Orion [Member] | Secured Debt [Member] | Bulk Nordic Odin, Bulk Nordic Olympic, Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Loan Agreement [Member] [Domain]
Debt Instrument [Line Items]
Interest rate, stated percentage															4.24%
Number of periodic payments | installment									20
Periodic payment, principal									$ 5,677,203
Periodic payment terms, balloon payment to be Paid									$ 375,000
Debt Instrument, Interest Rate, Portion Fixed															50.00%
Odyssey And Orion [Member] | Secured Debt [Member] | Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Debt Agreement [Member]
Debt Instrument [Line Items]
Basis spread on variable rate									2.40%
Debt Instrument, Interest Rate, Effective Percentage													4.71%
Nordic Bulk Oshima [Member] | Secured Debt [Member] | Bulk Nordic Odin, Bulk Nordic Olympic, Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Loan Agreement [Member] [Domain]
Debt Instrument [Line Items]
Number of periodic payments | installment									28
Nordic Bulk Oshima [Member] | Secured Debt [Member] | Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Debt Agreement [Member]
Debt Instrument [Line Items]
Periodic payment, principal									$ 375,000
Periodic payment terms, balloon payment to be Paid									$ 11,254,295
Basis spread on variable rate									2.25%
Debt Instrument, Interest Rate, Effective Percentage													4.56%
mv NORDIC OSHIMA [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Face amount									$ 21,000,000
mv NORDIC OSHIMA [Member] | Secured Debt [Member] | Bulk Nordic Odin, Bulk Nordic Olympic, Bulk Nordic Odyssey, Bulk Nordic Orion and Bulk Nordic Oshima Loan Agreement [Member] [Domain]
Debt Instrument [Line Items]
Interest rate, stated percentage																	4.16%
Debt Instrument, Interest Rate, Portion Fixed																	50.00%
Bulk Invest, Ltd. [Member]
Debt Instrument [Line Items]
Face amount																				$ 5,000,000
Repayments of Notes Payable													$ 2,000,000
Tranche A [Member] | Secured Debt [Member] | Bulk Nordic Six Ltd. Loan Agreement [Member]
Debt Instrument [Line Items]
Face amount					19,500,000
Periodic payment terms, balloon payment to be Paid					$ 11,667,667
Tranche A [Member] | Secured Debt [Member] | Bulk Nordic Six Ltd. Loan Agreement [Member] | three equal quarterly installments [Member]
Debt Instrument [Line Items]
Number of periodic payments					3
Periodic payment, principal					$ 100,000
Tranche A [Member] | Secured Debt [Member] | Bulk Nordic Six Ltd. Loan Agreement [Member] | seventeen equal quarterly installments [Member]
Debt Instrument [Line Items]
Number of periodic payments					17
Periodic payment, principal					$ 266,667
Tranche A [Member] | Secured Debt [Member] | The Amended Senior Facility [Member]
Debt Instrument [Line Items]
Face amount		$ 10,000,000
Tranche B [Member] | Secured Debt [Member] | Bulk Nordic Six Ltd. Loan Agreement [Member]
Debt Instrument [Line Items]
Face amount					$ 3,500,000
Number of periodic payments					18
Periodic payment, principal					$ 65,000
Periodic payment terms, balloon payment to be Paid					$ 2,330,000
Basis spread on variable rate					6.00%
Debt Instrument, Interest Rate, Effective Percentage													8.31%
Tranche C [Member] | Secured Debt [Member] | The Amended Senior Facility [Member]
Debt Instrument [Line Items]
Face amount		$ 8,500,000
Number of periodic payments		16
Periodic payment, principal		$ 275,000
Periodic payment terms, balloon payment to be Paid		$ 4,100,000
Basis spread on variable rate		5.74%
Tranche D [Member] | Secured Debt [Member] | The Amended Senior Facility [Member]
Debt Instrument [Line Items]
Face amount		$ 1,500,000
Number of periodic payments		4
Periodic payment, principal		$ 375,000
Basis spread on variable rate		6.00%
Debt Instrument, Interest Rate, Effective Percentage													8.31%

XML

Derivative Instruments and Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Margin Accounts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, net asset (liability)	$ (340,664)	$ (912,981)
Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, net asset (liability)	(11,625)	(265,768)
Fuel Swap Contracts [Member] | Fuel [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, net asset (liability)	(622,512)	(377,273)
Fair Value, Inputs, Level 1 [Member] | Margin Accounts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, net asset (liability)	(340,664)	(912,981)
Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, net asset (liability)	(11,625)	265,768
Fair Value, Inputs, Level 2 [Member] | Fuel Swap Contracts [Member] | Fuel [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, net asset (liability)	$ (622,512)	$ (377,273)

XML

Derivative Instruments and Fair Value Measurements (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Forward Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative gain (loss)	$ 60,000	$ (1,650,000)	$ (254,000)	$ 1,075,000
Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative gain (loss)	493,000	$ 173,000	245,000	$ (585,000)
Fair Value, Measurements, Recurring [Member] | Forward Contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value, Net Asset (Liability)	11,625		11,625		$ 265,768
Fair Value, Measurements, Recurring [Member] | Swap [Member] | Fuel [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value, Net Asset (Liability)	$ 622,512		$ 622,512		$ 377,273

XML

Related Party Transactions (Details)	6 Months Ended
	Jun. 30, 2018 USD ($)
Schedule of Related Party Payables
December 31, 2017	$ 7,009,597
June 30, 2018	4,522,371
Related Party Debt Current [Member]
Schedule of Related Party Payables
December 31, 2017	7,009,597
Activity	(2,487,226)
June 30, 2018	4,522,371
Affiliated Companies [Member] | Accounts Payable and Accrued Liabilities [Member]
Schedule of Related Party Payables
December 31, 2017	1,421,920
Activity	90,289
June 30, 2018	1,512,209
Loan Payable 2011 Founders Note [Member] | Related Party Debt Current [Member] | Loans Payable [Member]
Schedule of Related Party Payables
December 31, 2017	4,325,000
Activity	0
June 30, 2018	4,325,000
Interest payable in-kind [Member] | Related Party Debt Current [Member] | Loans Payable [Member]
Schedule of Related Party Payables
December 31, 2017	684,597
Activity	(487,226)
June 30, 2018	197,371
Loan Payable To Founders [Member] | Related Party Debt Current [Member] | Loans Payable [Member]
Schedule of Related Party Payables
December 31, 2017	2,000,000
June 30, 2018	$ 0

XML

Related Party Transactions Schedule of Dividends (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Dividends Payable [Line Items]
Dividends Payable	$ 6,333,598	$ 7,238,401
Dividends, Cash	(904,803)
Common Stock Dividend 2013 [Member]
Dividends Payable [Line Items]
Dividends Payable	6,333,598	6,333,598
Dividends, Cash	0
Odyssey And Orion Dividend 2013 [Member]
Dividends Payable [Line Items]
Dividends Payable	0	$ 904,803
Dividends, Cash	$ 904,803

XML

Related Party Transactions (Details Textual) - USD ($)		3 Months Ended		6 Months Ended
	Oct. 01, 2011	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Jan. 07, 2017	Nov. 30, 2014
Related Party Transaction [Line Items]
Due to related parties, current		$ 4,522,371		$ 4,522,371		$ 7,009,597
Technical management fees		764,400	$ 662,400	1,520,400	$ 1,304,400
Founder [Member]
Related Party Transaction [Line Items]
Interest rate, stated percentage	5.00%
Proceeds from related party debt	$ 10,000,000
Notes payable, related parties, current		4,325,000		4,325,000		4,325,000
Bulk Invest, Ltd. [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount								$ 5,000,000
Repayments of notes payable				(2,000,000)
Related Party Debt Current [Member]
Related Party Transaction [Line Items]
Proceeds from (Repayments of) Related Party Debt				(2,487,226)
Due to related parties, current		4,522,371		4,522,371		7,009,597
Accounts Payable and Accrued Liabilities [Member] | Affiliated Companies [Member]
Related Party Transaction [Line Items]
Proceeds from (Repayments of) Related Party Debt				90,289
Due to related parties, current		1,512,209		1,512,209		1,421,920
Loans Payable [Member] | Related Party Debt Current [Member] | Loan Payable To Founders [Member]
Related Party Transaction [Line Items]
Due to related parties, current		$ 0		$ 0		$ 2,000,000
m/v Bulk Destiny [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid							$ 11,200,000

XML

Commitments and Contingencies Lease Commitments (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Capital Leases, Future Minimum Payments Due, Next Twelve Months	$ 5,672,988
Capital Leases, Future Minimum Payments Due in Two Years	5,606,526
Capital Leases, Future Minimum Payments Due in Three Years	5,514,521
Capital Leases, Future Minimum Payments Due in Four Years	9,323,848
Capital Leases, Future Minimum Payments Due in Five Years	4,083,174
Capital Leases, Future Minimum Payments Due Thereafter	18,254,360
Capital Leases, Future Minimum Payments Due	48,455,417
Capital Leases, Future Minimum Payments, Interest Included in Payments	9,669,077
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments	38,786,340
Capital Lease Obligations, Current	3,464,880	$ 1,785,620
Capital Lease Obligations, Noncurrent	35,321,460	$ 25,015,659
2018	475,582
2019	365,446
2020	365,446
2021	12,015
2022	0
Operating Leases, Future Minimum Payments, Due Thereafter	0
Operating Leases, Future Minimum Payments Due	$ 1,218,489

XML

Commitments and Contingencies (Details Textual) - USD ($)	Jun. 01, 2018	Jun. 15, 2017	Jan. 07, 2017	Jul. 05, 2016	Jun. 30, 2018
Commitments and Contingencies [Line Items]
rental expense per year under bareboat charter, next 5 years				$ 365,000
mv BULK BEOTHUK [Member]
Commitments and Contingencies [Line Items]
Sale Leaseback Transaction, Lease Terms		The lease is payable at $3,500 per day every fifteen days over the five year lease term
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid		$ 4,000,000
Interest rate, stated percentage		11.83%
Capital Leased Assets, Gross		$ 7,000,000
m/v Bulk Destiny [Member]
Commitments and Contingencies [Line Items]
Sale Leaseback Transaction, Proceeds			$ 21,000,000
Sale Leaseback Transaction, Lease Terms			Minimum lease payments fluctuate based on three-month LIBOR and are payable quarterly over the seven year lease term
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid			$ 11,200,000
Debt Instrument, Basis Spread on Variable Rate			2.75%
Debt Instrument, Interest Rate, Effective Percentage			5.06%
Capital Leased Assets, Gross			$ 24,000,000
mv BULK TRIDENT [Member]
Commitments and Contingencies [Line Items]
Sale Leaseback Transaction, Proceeds	$ 13,000,000
Debt Instrument, Basis Spread on Variable Rate	1.70%
Debt Instrument, Interest Rate, Effective Percentage					4.02%

XML

Subsequent Events (Details) - USD ($)	Aug. 02, 2018	Jun. 01, 2018	Jun. 30, 2018
mv BULK TRIDENT [Member]
Subsequent Event [Line Items]
Sale Leaseback Transaction, Gross Proceeds, Financing Activities		$ 13,000,000
Debt Instrument, Basis Spread on Variable Rate		1.70%
Debt Instrument, Interest Rate, Effective Percentage			4.02%
Subsequent Event [Member] | m/v Bulk PODS [Member] [Domain]
Subsequent Event [Line Items]
Sale Leaseback Transaction, Gross Proceeds, Financing Activities	$ 16,750,000
Sale Leaseback Transaction, Lease Terms	The lease is payable monthly at a rate of $5,510 per day.
Debt Instrument, Basis Spread on Variable Rate	1.70%
Debt Instrument, Interest Rate, Effective Percentage	4.10%