Note 13 — Revenue:

Revenue Recognition

The majority of the Company's contracts for pool revenues, time and bareboat charter revenues, and voyage charter revenues are accounted for as lease revenue under ASC 842. The Company's contracts with pools are cancellable with up to 90 days' notice. As of March 31, 2020, the Company is a party to time charter out contracts with customers on six Panamaxes and two VLCCs with expiry dates ranging from May 2020 to March 2023. Subsequent to March 31, 2020, the Company entered into agreements to charter out two VLCCs each for a period of seven months, commencing in May 2020. The Company's contracts with customers for voyage charters are short term and vary in length based upon the duration of each voyage. Lease revenue for non-variable lease payments are recognized over the lease term on a straight-line basis and lease revenue for variable lease payments (e.g., demurrage) are recognized in the period in which the changes in facts and circumstances on which the variable lease payments are based occur.

Lightering services provided by the Company's Crude Tanker Lightering Business, voyage charter contracts that do not meet the definition of a lease and profit share agreements are accounted for as service revenues under ASC 606. In accordance with ASC 606, revenue is recognized when a customer obtains control of or consumes promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services.

In March 2020, the Company entered into a one-year profit share agreement with a third party entitling the Company to participate in 25% of the profits and losses generated from the commercial operations of a chartered-in 2007-built MR. The vessel will be commercially managed on voyage charters by the Clean Product Tankers Alliance Pool during the duration of the agreement. Earnings from this agreement are included in voyage charter revenues and the Company’s share of charter hire expenses is included in charter hire expenses in the accompanying condensed consolidated statement of operations.

The following table presents the Company’s revenues from leases accounted for under ASC 842 and revenues from services accounted for under ASC 606 for the three months ended March 31, 2020 and 2019:


	Crude		Product
	Tankers		Carriers		Other		Totals
Three months ended March 31, 2020:
Revenues from leases
Pool revenues	$	70,250	$	30,959	$	-	$	101,209
Time and bareboat charter revenues		8,604		-		-		8,604
Voyage charter revenues from non-variable lease payments		7,353		701		-		8,054
Voyage charter revenues from variable lease payments		1,120		-		-		1,120
Revenues from services
Voyage charter revenues
Lightering services		6,350		-		-		6,350
Total shipping revenues	$	93,677	$	31,660	$	-	$	125,337

Three months ended March 31, 2019:
Revenues from leases
Pool revenues	$	46,172	$	21,465	$	-	$	67,637
Time and bareboat charter revenues		5,520		-		-		5,520
Voyage charter revenues from non-variable lease payments		7,272		24		-		7,296
Voyage charter revenues from variable lease payments		348		-		-		348
Revenues from services
Voyage charter revenues
Lightering services		21,073		-		-		21,073
Total shipping revenues	$	80,385	$	21,489	$	-	$	101,874

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers, and significant changes in contract assets and liabilities balances, associated with revenue from services accounted for under ASC 606. Balances related to revenues from leases accounted for under ASC 842 are excluded from the table below.


	Voyage receivables - Billed receivables		Contract assets (Unbilled voyage receivables)		Contract liabilities (Deferred revenues and off hires)

Opening balance as of January 1, 2020	$	2,727	$	-	$	-
Closing balance as of March 31, 2020		1,921		547		-

We receive payments from customers based on the distribution schedule established in our contracts. Contract assets relate to our conditional right to consideration for our completed performance under contracts and decrease when the right to consideration becomes unconditional or payments are received. Contract liabilities include payments received in advance of performance under contracts and are recognized when performance under the respective contract has been completed. Deferred revenues allocated to unsatisfied performance obligations will be recognized over time as the services are performed.

Performance Obligations

All of the Company's performance obligations, and associated revenue, are generally transferred to customers over time. The expected duration of services is less than one year. Positive/(negative) adjustments in revenues from performance obligations satisfied in previous periods recognized during the three months ended March 31, 2020 and 2019 were $15 and ($483), respectively. These adjustments to revenue were related to changes in estimates of performance obligations related to voyage charters.

Costs to Obtain or Fulfill a Contract

As of March 31, 2020, there were no unamortized deferred costs of obtaining or fulfilling a contract.