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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 

FORM 10-Q 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2020
 
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: 001-36798

PANGAEA LOGISTICS SOLUTIONS LTD. 
(Exact name of Registrant as specified in its charter)
Bermuda98-1205464
(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

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockPANLNASDAQ

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, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated FilerAccelerated Filer
Non-accelerated FilerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

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 $0.0001 per share, 45,065,662 shares outstanding as of August 12, 2020.




TABLE OF CONTENTS
 
  Page
PART IFINANCIAL INFORMATION 
Item 1. 
   
 
   
 
  
 
   
 
   
Item 2.
   
Item 3.
   
Item 4.
   
PART II 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Signatures

2





Pangaea Logistics Solutions Ltd.
Consolidated Balance Sheets
June 30, 2020December 31, 2019
(unaudited) 
Assets  
Current assets  
Cash and cash equivalents$46,993,067  $50,555,091  
Restricted cash1,000,000  1,000,000  
Accounts receivable (net of allowance of $1,723,510 and $1,908,841 at June 30, 2020 and December 31, 2019, respectively)
18,197,943  28,309,402  
Bunker inventory11,648,319  21,001,010  
Advance hire, prepaid expenses and other current assets15,575,442  18,770,825  
Vessel held for sale4,563,000  8,319,152  
Total current assets97,977,771  127,955,480  
Restricted cash1,500,000  1,500,000  
Fixed assets, net278,383,059  281,474,857  
Investment in newbuildings in-process15,390,634  15,357,189  
Finance lease right of use assets, net46,259,982  53,615,305  
Total assets$439,511,446  $479,902,831  
Liabilities and stockholders' equity  
Current liabilities  
Accounts payable, accrued expenses and other current liabilities$26,528,278  $39,973,635  
Related party debt242,852  332,987  
Deferred revenue5,343,392  14,376,394  
Current portion of secured long-term debt21,490,674  22,990,674  
Current portion of finance lease liabilities6,927,362  12,549,208  
Dividend payable95,500  631,961  
Total current liabilities60,628,058  90,854,859  
Secured long-term debt, net78,779,452  83,649,717  
Finance lease liabilities, net54,028,493  57,498,217  
Long-term liabilities - other - Note 85,108,793  4,828,364  
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; 45,065,662 shares issued and outstanding at June 30, 2020; 44,886,122 shares issued and outstanding at December 31, 2019
4,507  4,489  
Additional paid-in capital158,874,237  157,504,895  
Retained earnings8,946,381  12,736,580  
Total Pangaea Logistics Solutions Ltd. equity167,825,125  170,245,964  
Non-controlling interests73,141,525  72,825,710  
Total stockholders' equity240,966,650  243,071,674  
Total liabilities and stockholders' equity$439,511,446  $479,902,831  
 
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,
 2020201920202019
 
Revenues:
Voyage revenue$66,857,166  $77,430,067  $153,381,057  $143,281,414  
Charter revenue3,539,004  5,860,548  12,895,050  19,553,386  
 70,396,170  83,290,615  166,276,107  162,834,800  
Expenses:
Voyage expense31,757,910  37,224,412  79,553,822  69,398,519  
Charter hire expense15,203,731  18,317,345  47,529,178  43,264,714  
Vessel operating expense9,325,060  11,074,547  19,258,922  20,828,922  
General and administrative3,872,388  5,358,991  7,865,631  9,392,671  
Depreciation and amortization4,345,707  4,491,327  8,587,958  8,868,515  
Loss on impairment of vessels1,801,039    1,801,039    
Loss on sale of vessels297,475    219,485    
Total expenses66,603,310  76,466,622  164,816,035  151,753,341  
Income from operations3,792,860  6,823,993  1,460,072  11,081,459  
Other (expense) income: 
Interest expense, net(2,000,550) (2,101,052) (4,116,870) (4,308,220) 
Interest expense on related party debt  (11,138)   (38,036) 
Unrealized gain (loss) on derivative instruments, net1,404,317  215,171  (1,512,777) 2,504,957  
Other income98,635  232,092  695,191  399,912  
Total other (expense), net(497,598) (1,664,927) (4,934,456) (1,441,387) 
Net income (loss)3,295,262  5,159,066  (3,474,384) 9,640,072  
Income attributable to non-controlling interests(290,086) (1,126,565) (315,815) (1,905,017) 
Net income (loss) attributable to Pangaea Logistics Solutions Ltd.$3,005,176  $4,032,501  $(3,790,199) $7,735,055  
Earnings per common share:
Basic$0.07  $0.09  $(0.09) $0.18  
Diluted$0.07  $0.09  $(0.09) $0.18  
Weighted average shares used to compute earnings per common share:
Basic43,445,789  42,767,785  43,442,773  42,684,966  
Diluted43,445,789  43,293,022  43,442,773  43,202,187  
 
The accompanying notes are an integral part of these consolidated financial statements
 

4



Pangaea Logistics Solutions Ltd.
Consolidated Statements of Stockholders' Equity
(unaudited)
Common StockAdditional Paid-in CapitalRetained EarningsTotal Pangaea Logistics  Solutions Ltd. EquityNon-Controlling InterestTotal  Stockholders' Equity
SharesAmount
Balance at March 31, 202045,112,062  $4,512  $158,564,477  $5,941,205  $164,510,194  $72,851,439  $237,361,633  
Share-based compensation—  —  420,717  —  420,717  —  420,717  
Issuance of restricted shares, net of forfeitures(46,400) (5) (110,957) —  (110,962) —  (110,962) 
Net Income—  —  —  3,005,176  3,005,176  290,086  3,295,262  
Balance at June 30, 202045,065,662  $4,507  $158,874,237  $8,946,381  $167,825,125  $73,141,525  $240,966,650  
Balance at December 31, 201944,886,122  $4,489  $157,504,895  $12,736,580  $170,245,964  $72,825,710  $243,071,674  
Share-based compensation1,523,4861,523,4861,523,486
Issuance of restricted shares, net of forfeitures179,54018(154,144)(154,126)(154,126)
Net (Loss) Income(3,790,199)(3,790,199)315,815(3,474,384)
Balance at June 30, 202045,065,662  $4,507  $158,874,237  $8,946,381  $167,825,125  $73,141,525  $240,966,650  
Common StockAdditional Paid-in CapitalRetained EarningsTotal Pangaea Logistics  Solutions Ltd. EquityNon-Controlling InterestTotal  Stockholders' Equity
SharesAmount
Balance at March 31, 201944,504,090  $4,450  $156,621,001  $9,439,753  $166,065,204  $72,457,398  $238,522,602  
Share-based compensation—  —  370,908  —  370,908  —  370,908  
Issuance of restricted shares, net of forfeitures(52,150) (5) (136,148) —  (136,153) —  (136,153) 
Distribution to Non-Controlling Interests(4,666,665) (4,666,665) 
Common Stock Dividend(1,555,818) (1,555,818) (1,555,818) 
Net income—  —  —  4,032,501  4,032,501  1,126,565  5,159,066  
Balance at June 30, 201944,451,940  $4,445  $156,855,761  $11,916,436  $168,776,642  $68,917,298  $237,693,940  
Balance at December 31, 201843,998,560  4,400  155,946,452  5,737,199  161,688,051  71,678,946  233,366,997  
Share-based compensation—  —  1,045,507  —  1,045,507  —  1,045,507  
Issuance of restricted shares, net of forfeitures453,380  45  (136,198) —  (136,153) —  (136,153) 
Distribution to Non-Controlling Interests—  —  —  —  —  (4,666,665) (4,666,665) 
Common Stock Dividend—  —  —  (1,555,818) (1,555,818) —  (1,555,818) 
Net Income—  —  —  7,735,055  7,735,055  1,905,017  9,640,072  
Balance at June 30, 201944,451,940  $4,445  $156,855,761  $11,916,436  $168,776,642  $68,917,298  $237,693,940  

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

5

Pangaea Logistics Solutions, Ltd.
Consolidated Statements of Cash Flows
(unaudited)
 Six Months Ended June 30,
 20202019
Operating activities
Net (loss) income$(3,474,384) $9,640,072  
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization expense8,587,958  8,868,515  
Amortization of deferred financing costs346,985  365,564  
Amortization of prepaid rent61,136  59,299  
Unrealized loss (gain) on derivative instruments1,512,777  (2,504,957) 
Gain from equity method investee(795,988) (247,312) 
Earnings attributable to non-controlling interest recorded as interest expense28,166    
(Recovery) provision for doubtful accounts(185,331) 320,491  
Loss on impairment of vessels1,801,039    
Loss on sale of vessel219,485    
Drydocking costs(2,882,109) (1,545,094) 
Share-based compensation1,523,486  1,045,507  
Change in operating assets and liabilities:
Accounts receivable10,296,790  7,984,657  
Bunker inventory9,352,691  1,775,598  
Advance hire, prepaid expenses and other current assets3,991,371  (1,821,751) 
Accounts payable, accrued expenses and other current liabilities(14,444,003) 1,546,305  
Deferred revenue(9,033,002) (5,902,610) 
Net cash provided by operating activities6,907,067  19,584,284  
Investing activities
Purchase of vessels and vessel improvements(1,652,366) (25,557,060) 
Investment in newbuildings in-process(33,445) (7,657,000) 
Purchase of fixed assets and equipment(7,801) (281,011) 
Proceeds from sale of vessels8,099,667    
Purchase of derivative instrument(628,000)   
Net cash provided by (used in) investing activities5,778,055  (33,495,071) 
Financing activities
Proceeds from long-term debt  14,000,000  
Payments of related party debt  (1,691,964) 
Payments of financing fees and debt issuance costs(149,118) (277,577) 
Payments of long-term debt(6,568,134) (12,242,949) 
Proceeds from finance leases  13,000,000  
Dividends paid to non-controlling interests  (4,666,665) 
Payments of finance lease obligations(9,091,570) (2,908,693) 
Accrued common stock dividends paid(536,461) (3,754,985) 
Cash paid for incentive compensation shares relinquished(154,126)   
Contributions from non-controlling interest recorded as long-term liability322,750    
Payments to non-controlling interest recorded as long-term liability(70,487)   
Net cash (used in) provided by financing activities(16,247,146) 1,457,167  
Net decrease in cash, cash equivalents and restricted cash(3,562,024) (12,453,620) 
Cash, cash equivalents and restricted cash at beginning of period53,055,091  56,114,735  
Cash, cash equivalents and restricted cash at end of period$49,493,067  $43,661,115  
Supplemental cash flow information  
Cash and cash equivalents$46,993,067  $41,161,115  
Restricted cash2,500,000  2,500,000  
$49,493,067  $43,661,115  

The accompanying notes are an integral part of these consolidated financial statements
6



NOTE 1 - GENERAL INFORMATION AND RECENT EVENTS

Organization and General

The accompanying consolidated financial statements include the accounts of Pangaea Logistics Solutions Ltd. and its consolidated subsidiaries (collectively, the “Company”, “Pangaea” “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.

At June 30, 2020, the Company owns two Panamax, two Ultramax Ice Class 1C, and eight Supramax 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.

Recent Events

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus strain, or COVID-19, to be a pandemic. The COVID-19 pandemic (“COVID-19”) is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. Management continues to evaluate the impact of COVID-19 on the industry and its business. At present, the surge in cases has slowed, or is under control, in many countries around the world, especially those that are core to the dry bulk industry. However it is not possible to forecast the virus spread in the future or ascertain the overall impact of COVID-19 on the Company’s financial position and results of its operations. An increase in the severity or duration or a resurgence of COVID-19 could have a material adverse effect on the Company’s business, results of operations, cash flows and financial condition. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

7


NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q. Accordingly, these interim financial statements do not include all of the information and note disclosures required by U.S. GAAP for complete financial statements. The accompanying financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the interim period results. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019.

Certain reclassifications have been made to prior periods to conform to current period presentation. There was no impact on total operating expenses or net income (loss) resulting from these reclassifications.
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 future cash flows used in its impairment analysis, the estimated salvage value used in determining depreciation expense and the allowances for doubtful accounts.

Voyage revenues represent revenues earned by the Company, principally from providing transportation services under voyage charters. A voyage charter involves the carriage of a specific amount and type of cargo on a load port to discharge port basis, subject to various cargo handling terms. Under a voyage charter, the service revenues are earned and recognized ratably over the duration of the voyage. A contract is accounted for when it has approval and commitment from both parties, the rights and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Estimated losses under a voyage charter are provided for in full at the time such losses become probable. Demurrage, which is included in voyage revenues, represents payments by the charterer to the vessel owner when loading and discharging time exceed the stipulated time in the voyage charter. Demurrage is measured in accordance with the provisions of the respective charter agreements and the circumstances under which demurrage revenues arise. At the time demurrage revenue can be estimated, it is included in the calculation of voyage revenue and recognized ratably over the duration of the voyage to which it pertains. Voyage revenue recognized is presented net of address commissions.

Charter revenues relate to a time charter arrangement under which the Company is paid to provide transportation services on a per day basis for a specified period of time. Revenues from time charters are earned and recognized on a straight-line basis over the term of the charter, as the vessel operates under the charter. Revenue is not earned when vessels are offhire.

Cash and cash equivalents include short-term deposits with an original maturity of less than three months. 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 amounts shown in the consolidated statement of cash flows:
 
 June 30, 2020December 31, 2019
(unaudited)
Money market accounts – cash equivalents$34,778,166  $32,150,342  
Cash (1)
12,214,901  18,404,749  
Total cash and cash equivalents$46,993,067  $50,555,091  
Restricted cash2,500,000  2,500,000  
Total cash, cash equivalents and restricted cash$49,493,067  $53,055,091  

(1) Consists of cash deposits at various major banks.
 
Restricted cash at June 30, 2020 and December 31, 2019 consists of $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. $1,000,000 restricted cash was reclassified to current assets due to the balloon payments related to the Bulk Nordic Odyssey Ltd. and Bulk Nordic Orion Ltd. tranches due in September of 2020.

8


Advance hire, prepaid expenses and other current assets were comprised of the following:  
 June 30, 2020December 31, 2019
 (unaudited) 
Advance hire$4,462,379  $3,985,826  
Prepaid expenses2,813,696  4,924,557  
Accrued receivables3,869,769  6,466,068  
Margin deposit2,023,596  269,379  
Other current assets2,406,002  3,124,995  
 $15,575,442  $18,770,825  

Accounts payable, accrued expenses and other current liabilities were comprised of the following:
 June 30, 2020December 31, 2019
 (unaudited) 
Accounts payable$16,898,441  $24,173,291  
Accrued expenses7,077,145  14,883,555  
Derivative liabilities1,356,850  472,073  
Other accrued liabilities1,195,842  444,716  
 $26,528,278  $39,973,635  

Time charter out contracts

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. The charterer has the power to direct the use and receives substantially all of the economic benefits from the use of the vessel. The Company determined that all time charter contracts are considered operating leases and therefore fall under the scope of ASC 842 because: (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use.

Time charter in contracts

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. As allowed by a practical expedient under ASC 842, the Company made an accounting policy election by class of underlying asset for leases with a term of 12 months or less, to forego recognizing a right-of-use asset and lease liability on its balance sheet. For the quarter ending June 30, 2020, the Company did not have any time charter in contracts with terms greater than 12 months, as such charter hire expense presented on the consolidated statements of income are lease expenses for chartered in contracts less than 12 months.

Leases under ASC 842

At June 30, 2020, the Company had six vessels chartered to customers under time charters that contain leases. These six leases varied in original length from 1 day to 72 days. At June 30, 2020, lease payments due under these arrangements totaled approximately $1,611,000 and each of the time charters were due to be completed in 70 days or less. The Company does not have any sales-type or direct financing leases.

The Company has two non-cancelable office leases and non-cancelable office equipment leases and the lease assets and liabilities are not material.

9


Revenue Recognition

Voyage revenues represent revenues earned by the Company, principally from providing transportation services under voyage charters. A voyage charter involves the carriage of a specific amount and type of cargo on a load port to discharge port basis, subject to various cargo handling terms. Under a voyage charter, the service revenues are earned and recognized ratably over the duration of the voyage. Estimated losses under a voyage charter are provided for in full at the time such losses become probable. Demurrage, which is included in voyage revenues, represents payments by the charterer to the vessel owner when loading and discharging time exceed the stipulated time in the voyage charter. Demurrage is measured in accordance with the provisions of the respective charter agreements and the circumstances under which demurrage revenues arise. Demurrage revenue is included in the calculation of voyage revenue and recognized ratably over the duration of the voyage to which it pertains. Voyage revenue recognized is presented net of address commissions.

Charter revenues relate to a time charter arrangement under which the Company is paid to provide transportation services on a per day basis for a specified period of time. Revenues from time charters are earned and recognized on a straight-line basis over the term of the charter, as the vessel operates under the charter and do not fall under the scope of ASC 606, as defined below, revenue is not earned when vessels are offhire.

Recently Issued Accounting Pronouncements Not Yet Adopted
        
In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Companies can apply the ASU immediately, however the guidance will only be available until December 31, 2022. The Company is currently evaluating the impact that adopting this new accounting standard will have on its consolidated financial statements and related disclosures.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses. For most financial assets, such as trade and other receivables, loans and other instruments, this standard changes the current incurred loss model to a forward-looking expected credit loss model, which generally will result in the earlier recognition of allowances for losses. The new standard is effective for the Company at the beginning of 2023. Entities are required to apply the provisions of the standard through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently assessing the new guidance and its impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of 2023. 

10


NOTE 3 - FIXED ASSETS

At June 30, 2020, the Company owned eighteen dry bulk vessels including three financed under finance leases; and one barge. The carrying amounts of these vessels, including unamortized drydocking costs, are as follows: 
 June 30,December 31,
20202019
Owned vessels(unaudited) 
m/v BULK PANGAEA$14,312,159  $14,988,076  
m/v BULK NEWPORT12,470,458  12,975,767  
m/v NORDIC ODYSSEY (3)
22,232,766  22,897,029  
m/v NORDIC ORION (3)
23,100,663  23,688,812  
m/v NORDIC OSHIMA (3)
27,646,301  28,325,078  
m/v NORDIC ODIN (3)
28,060,270  28,094,764  
m/v NORDIC OLYMPIC (3)
27,983,056  27,931,771  
m/v NORDIC OASIS (3)
28,609,980  29,190,935  
m/v BULK ENDURANCE24,531,184  25,037,775  
m/v BULK FREEDOM9,806,141  8,269,777  
m/v BULK PRIDE13,028,499  12,996,311  
m/v BULK SPIRIT12,896,925  12,867,060  
m/v BULK INDEPENDENCE14,138,559  14,000,946  
m/v BULK FRIENDSHIP13,741,877  14,052,500  
MISS NORA G PEARL (4)
3,385,815  3,609,851  
275,944,653  278,926,452  
Other fixed assets, net2,438,406  2,548,405  
Total fixed assets, net$278,383,059  $281,474,857  
Right of Use Assets
m/v BULK DESTINY$21,060,499  $21,484,733  
m/v BULK BEOTHUK (1) (2)
  6,589,537  
m/v BULK TRIDENT11,802,319  12,095,727  
m/v BULK PODS$13,397,164  13,445,308  
$46,259,982  $53,615,305  

(1) In January 2020 the Company completed an early buy-out of the lease for a purchase price of $5.5 million.
(2) On June 29, 2020, the Company entered into a memorandum of agreement to sell the Bulk Beothuk, a 2002-built Supramax vessel, to a third party for $4.6 million less a broker commission payable to a third party. The vessel assets were classified as held for sale in the Consolidated Balance Sheet as of June 30, 2020.
(3) Vessels are owned by Nordic Bulk Holding Company Ltd. (“NBHC”), a consolidated joint venture which the Company has one-third of ownership.
(4) Venture Barge is owned by a 50% owned consolidated subsidiary.
Long-lived Assets Impairment Considerations

The Company evaluates the recoverability of its fixed assets and other assets in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, we perform an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. Our assessment is made at the asset 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.

11


On June 29, 2020 the Company entered into an agreement to sell the Bulk Beothuk for $4.6 million, the sale was finalized and the vessel delivered to its new owner on August 4, 2020. A loss on impairment of $1.8 million was recorded in the second quarter of 2020 when the Memorandum of Agreement was signed. As the carrying value of the assets exceeded the fair value, the Company concluded it constituted a triggering event requiring assessment of impairment for its long-lived assets as of June 30, 2020. The Company performed an impairment analysis on each asset group and concluded the estimated undiscounted future cash flows were higher than their carrying amount and as such, no additional loss on impairment was recognized. 

NOTE 4 - DEBT

Long-term debt consists of the following: 
June 30, 2020December 31, 2019
Interest Rate (%) (1)
Maturity Date
(unaudited)
Bulk Nordic Odin Ltd., Bulk Nordic Olympic Ltd. Loan Agreement (2)
26,966,300  28,466,300  4.06 %January 2022
Bulk Nordic Odyssey Ltd., Bulk Nordic Orion Ltd. Loan Agreement (2) (3)
11,354,406  12,854,405  3.77 %September 2020
Bulk Nordic Oshima Ltd. Amended and Restated Loan Agreement (2) (4)
12,754,295  13,504,295  2.56 %September 2021
Bulk Nordic Oasis Ltd. Loan Agreement14,750,000  15,500,000  4.30 %December 2021