DORIAN LPG LTD., 10-Q filed on 8/9/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
3 Months Ended
Jun. 30, 2018
Aug. 07, 2018
Document and Entity Information    
Entity Registrant Name DORIAN LPG LTD.  
Entity Central Index Key 0001596993  
Document Type 10-Q  
Document Period End Date Jun. 30, 2018  
Amendment Flag false  
Current Fiscal Year End Date --03-31  
Entity Current Reporting Status Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   55,157,193
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q1  
v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2018
Mar. 31, 2018
Current assets    
Cash and cash equivalents $ 65,291,784 $ 103,505,676
Trade receivables, net and accrued revenues 10,537 336,162
Prepaid expenses and other receivables 2,779,262 2,471,415
Due from related parties 32,807,418 26,880,720
Inventories 2,832,194 2,012,907
Total current assets 103,721,195 135,206,880
Fixed assets    
Vessels, net 1,523,143,231 1,539,111,833
Other fixed assets, net 167,933 203,678
Total fixed assets 1,523,311,164 1,539,315,511
Other non-current assets    
Deferred charges, net 1,526,980 1,574,522
Derivative instruments 15,972,515 14,264,899
Due from related parties—non-current 20,900,000 19,800,000
Restricted cash - non-current 35,636,500 25,862,704
Other non-current assets 80,349 85,640
Total assets 1,701,148,703 1,736,110,156
Current liabilities    
Trade accounts payable 8,137,340 6,329,193
Accrued expenses 5,832,861 4,702,808
Due to related parties 29,712 345,515
Deferred income 5,007,120 5,564,557
Current portion of long-term debt 63,968,414 65,067,569
Total current liabilities 82,975,447 82,009,642
Long-term liabilities    
Long-term debt—net of current portion and deferred financing fees 677,684,689 694,035,583
Other long-term liabilities 1,172,243 651,569
Total long-term liabilities 678,856,932 694,687,152
Total liabilities 761,832,379 776,696,794
Commitments and contingencies
Shareholders' equity    
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued nor outstanding
Common stock, $0.01 par value, 450,000,000 shares authorized, 58,849,713 and 58,640,161 shares issued, 55,157,193 and 55,090,165 shares outstanding (net of treasury stock), as of June 30, 2018 and March 31, 2018, respectively 588,497 586,402
Additional paid-in-capital 859,740,325 858,109,882
Treasury stock, at cost; 3,692,520 and 3,549,996 shares as of June 30, 2018 and March 31, 2018, respectively (36,356,446) (35,223,428)
Retained earnings 115,343,948 135,940,506
Total shareholders' equity 939,316,324 959,413,362
Total liabilities and shareholders' equity $ 1,701,148,703 $ 1,736,110,156
v3.10.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2018
Mar. 31, 2018
Condensed Consolidated Balance Sheets    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 50,000,000 50,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 450,000,000 450,000,000
Common stock, shares issued 58,849,713 58,640,161
Common stock, shares outstanding (net of treasury stock) 55,157,193 55,090,165
Treasury stock, shares at cost 3,692,520 3,549,996
v3.10.0.1
Condensed Consolidated Statements of Operations - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Revenues.    
Revenues $ 27,644,282 $ 41,025,472
Expenses    
Voyage expenses 100,173 239,445
Vessel operating expenses 16,685,457 16,885,289
Depreciation and amortization 16,265,056 16,293,158
General and administrative expenses 8,403,286 8,534,909
Total expenses 41,453,972 41,952,801
Other income—related parties 644,517 633,883
Operating loss (13,165,173) (293,446)
Other income/(expenses)    
Interest and finance costs (10,374,281) (7,477,734)
Interest income 460,973 15,816
Unrealized gain/(loss) on derivatives 1,707,616 (2,370,191)
Realized gain/(loss) on derivatives 782,565 (612,863)
Gain on early extinguishment of debt   4,117,364
Foreign currency loss, net (8,258) (68,916)
Total other income/(expenses), net (7,431,385) (6,396,524)
Net loss $ (20,596,558) $ (6,689,970)
Weighted average shares outstanding basic and diluted (in shares) 54,237,237 53,875,292
Loss per common share—basic and diluted (in dollars per share) $ (0.38) $ (0.12)
Net pool revenue - related party    
Revenues.    
Revenues $ 16,106,401 $ 28,475,359
Time charter revenue    
Revenues.    
Revenues 11,467,881 12,564,655
Other revenue, net    
Revenues.    
Revenues $ 70,000 $ (14,542)
v3.10.0.1
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
Common stock
Treasury stock
Additional paid-in capital
Retained earnings
Total
Balance at Mar. 31, 2017 $ 583,422 $ (33,897,269) $ 852,974,373 $ 156,341,192 $ 976,001,718
Balance (in shares) at Mar. 31, 2017 58,342,201        
Increase (Decrease) in Shareholders' Equity          
Net loss       (6,689,970) (6,689,970)
Restricted share award issuances $ 2,685   (2,685)    
Restricted share award issuances (in shares) 268,464        
Stock-based compensation     1,524,217   1,524,217
Purchase of treasury stock   (1,084,902)     (1,084,902)
Balance at Jun. 30, 2017 $ 586,107 (34,982,171) 854,495,905 149,651,222 969,751,063
Balance (in shares) at Jun. 30, 2017 58,610,665        
Balance at Mar. 31, 2018 $ 586,402 (35,223,428) 858,109,882 135,940,506 959,413,362
Balance (in shares) at Mar. 31, 2018 58,640,161        
Increase (Decrease) in Shareholders' Equity          
Net loss       (20,596,558) (20,596,558)
Restricted share award issuances $ 2,095   (2,095)    
Restricted share award issuances (in shares) 209,552        
Stock-based compensation     1,632,538   1,632,538
Purchase of treasury stock   (1,133,018)     (1,133,018)
Balance at Jun. 30, 2018 $ 588,497 $ (36,356,446) $ 859,740,325 $ 115,343,948 $ 939,316,324
Balance (in shares) at Jun. 30, 2018 58,849,713        
v3.10.0.1
Condensed Consolidated Statements of Cash Flows - USD ($)
3 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net loss $ (20,596,558) $ (6,689,970)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:    
Depreciation and amortization 16,265,056 16,293,158
Amortization of financing costs 793,212 1,098,827
Unrealized (gain)/loss on derivatives (1,707,616) 2,370,191
Stock-based compensation expense 1,632,538 1,524,217
Gain on early extinguishment of debt   (4,117,364)
Unrealized foreign currency (gain)/loss, net 133,579 (75,142)
Other non-cash items 23,370 15,689
Changes in operating assets and liabilities    
Trade receivables, net and accrued revenue 325,625 8,300
Prepaid expenses and other receivables (291,354) (784,288)
Due from related parties (7,026,698) 5,015,812
Inventories (819,287) 122,335
Other non-current assets 5,291 (3,410)
Trade accounts payable 1,432,822 (2,511,722)
Accrued expenses and other liabilities (412,057) 516,824
Due to related parties (315,803) 22,050
Payments for drydocking costs (1,405) (395,189)
Net cash provided by/(used in) operating activities (10,559,285) 12,410,318
Cash flows from investing activities:    
Capital expenditures (60,320) (276,396)
Net cash used in investing activities (60,320) (276,396)
Cash flows from financing activities:    
Proceeds from long-term debt borrowings 65,137,500 97,000,000
Repayment of long-term debt borrowings (82,228,759) (120,738,340)
Purchase of treasury stock (461,489) (350,279)
Financing costs paid (160,611) (2,541,005)
Net cash used in financing activities (17,713,359) (26,629,624)
Effects of exchange rates on cash and cash equivalents (107,132) 41,195
Net decrease in cash, cash equivalents and restricted cash (28,440,096) (14,454,507)
Cash, cash equivalents, and restricted cash at the beginning of the period 129,368,380 67,892,698
Cash, cash equivalents, and restricted cash at the end of the period $ 100,928,284 $ 53,438,191
v3.10.0.1
Basis of Presentation and General Information
3 Months Ended
Jun. 30, 2018
Basis of Presentation and General Information  
Basis of Presentation and General Information

Dorian LPG Ltd.

Notes to Unaudited Condensed Consolidated Financial Statements

(Expressed in United States Dollars)

1.  Basis of Presentation and General Information

 

Dorian LPG Ltd. (“Dorian”) was incorporated on July 1, 2013 under the laws of the Republic of the Marshall Islands, is headquartered in the United States and is engaged in the transportation of liquefied petroleum gas (“LPG”) worldwide. Specifically, Dorian and its subsidiaries (together “we”,  “us”, “our”, or the “Company”) are focused on owning and operating very large gas carriers (“VLGCs”), each with a cargo carrying capacity of greater than 80,000 cbm, in the LPG shipping industry. Our fleet currently consists of twenty-two VLGCs, including nineteen fuel-efficient 84,000 cbm ECO-design VLGCs (“ECO VLGCs”) and three 82,000 cbm VLGCs.

 

On April 1, 2015, Dorian and Phoenix Tankers Pte. Ltd. (“Phoenix”) began operations of Helios LPG Pool LLC (the “Helios Pool”), which entered into pool participation agreements for the purpose of establishing and operating, as charterer, under variable rate time charters to be entered into with owners or disponent owners of VLGCs, a commercial pool of VLGCs whereby revenues and expenses are shared. Refer to Note 3 below for further description of the Helios Pool.

 

The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and related Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments, consisting of normal recurring items, necessary for a fair presentation of financial position, operating results and cash flows have been included in the accompanying unaudited interim condensed consolidated financial statements and related notes. The accompanying unaudited interim condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes for the year ended March 31, 2018 included in our Annual Report on Form 10-K filed with the SEC on June 27, 2018.

 

Our interim results are subject to seasonal and other fluctuations, and the operating results for any quarter are therefore not necessarily indicative of results that may be otherwise expected for the entire year.

 

Our subsidiaries as of June 30, 2018, which are all wholly-owned and are incorporated in Republic of the Marshall Islands (unless otherwise noted), are listed below.

 

Vessel Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

    

Type of

    

 

    

 

    

 

 

Subsidiary

 

vessel

 

Vessel’s name

 

Built

 

CBM(1)

 

CMNL LPG Transport LLC

 

VLGC

 

Captain Markos NL(2)

 

2006

 

82,000

 

CJNP LPG Transport LLC

 

VLGC

 

Captain John NP(2)

 

2007

 

82,000

 

CNML LPG Transport LLC

 

VLGC

 

Captain Nicholas ML(2)

 

2008

 

82,000

 

Comet LPG Transport LLC

 

VLGC

 

Comet

 

2014

 

84,000

 

Corsair LPG Transport LLC

 

VLGC

 

Corsair(2)

 

2014

 

84,000

 

Corvette LPG Transport LLC

 

VLGC

 

Corvette(2)

 

2015

 

84,000

 

Dorian Shanghai LPG Transport LLC

 

VLGC

 

Cougar

 

2015

 

84,000

 

Concorde LPG Transport LLC

 

VLGC

 

Concorde(2)

 

2015

 

84,000

 

Dorian Houston LPG Transport LLC

 

VLGC

 

Cobra

 

2015

 

84,000

 

Dorian Sao Paulo LPG Transport LLC

 

VLGC

 

Continental

 

2015

 

84,000

 

Dorian Ulsan LPG Transport LLC

 

VLGC

 

Constitution

 

2015

 

84,000

 

Dorian Amsterdam LPG Transport LLC

 

VLGC

 

Commodore

 

2015

 

84,000

 

Dorian Dubai LPG Transport LLC

 

VLGC

 

Cresques

 

2015

 

84,000

 

Constellation LPG Transport LLC

 

VLGC

 

Constellation

 

2015

 

84,000

 

Dorian Monaco LPG Transport LLC

 

VLGC

 

Cheyenne

 

2015

 

84,000

 

Dorian Barcelona LPG Transport LLC

 

VLGC

 

Clermont

 

2015

 

84,000

 

Dorian Geneva LPG Transport LLC

 

VLGC

 

Cratis

 

2015

 

84,000

 

Dorian Cape Town LPG Transport LLC

 

VLGC

 

Chaparral

 

2015

 

84,000

 

Dorian Tokyo LPG Transport LLC

 

VLGC

 

Copernicus

 

2015

 

84,000

 

Commander LPG Transport LLC

 

VLGC

 

Commander

 

2015

 

84,000

 

Dorian Explorer LPG Transport LLC

 

VLGC

 

Challenger

 

2015

 

84,000

 

Dorian Exporter LPG Transport LLC

 

VLGC

 

Caravelle

 

2016

 

84,000

 

 

 Management Subsidiaries

 

 

 

 

Subsidiary

 

Dorian LPG Management Corp.

 

Dorian LPG (USA) LLC (incorporated in USA)

 

Dorian LPG (UK) Ltd. (incorporated in UK)

 

Dorian LPG Finance LLC

 

Occident River Trading Limited (incorporated in UK)

 

 

Dormant Subsidiaries

 

 

 

 

Subsidiary

 

SeaCor LPG I LLC

 

SeaCor LPG II LLC

 

Capricorn LPG Transport LLC

 

Constitution LPG Transport LLC

 

Grendon Tanker LLC

 


(1)

CBM: Cubic meters, a standard measure for LPG tanker capacity

(2)

Operated pursuant to a bareboat charter agreement. Refer to Note 6 below for further information.

v3.10.0.1
Significant Accounting Policies
3 Months Ended
Jun. 30, 2018
Significant Accounting Policies  
Significant Accounting Policies

2.  Significant Accounting Policies

 

The same accounting policies have been followed in these unaudited interim condensed consolidated financial statements as were applied in the preparation of our audited financial statements for the year ended March 31, 2018 (refer to Note 2 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018), except as discussed herein.

 

Accounting Pronouncements Adopted During the Three Months Ended June 30, 2018

 

In November 2016, the Financial Accounting Standards Board (the “FASB”) issued accounting guidance to require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The pronouncement is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and are 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 condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

March 31, 2018

 

June 30, 2017

 

March 31, 2017

 

Cash and cash equivalents

 

$

65,291,784

 

$

103,505,676

 

$

35,363,045

 

$

17,018,552

 

Restricted cash—non-current

 

 

35,636,500

 

 

25,862,704

 

 

18,075,146

 

 

50,874,146

 

Total cash, cash equivalents, and restricted cash

 

$

100,928,284

 

$

129,368,380

 

$

53,438,191

 

$

67,892,698

 

 

In August 2016, the FASB issued accounting guidance addressing specific cash flow statement issues with the objective of reducing the existing diversity in practice. The pronouncement is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The implementation of this guidance did not have a material effect on our condensed consolidated financial statements.

 

In May 2014, the FASB amended its accounting guidance for revenue recognition. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and consideration that a company expects to receive for the services provided. The amended guidance introduces a five-step process to achieve the fundamental principles and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. It also provides further guidance on applying collectability criterion to assess whether a contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration. The amended guidance requires additional disclosures necessary for the financial statement users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB voted to defer the effective date by one year for fiscal years beginning on or after December 15, 2017 and interim periods within that reporting period and permit early adoption of the standard, but not before the beginning of 2017. The amended guidance shall be applied either retrospectively to each period presented or as a cumulative effect adjustment as of the date of adoption. Under the amended guidance, voyage charter revenues are recognized based on load-to-discharge basis as compared to the previously used discharge-to-discharge basis, provided an agreed non-cancellable charter between the Company and the charterer is in existence, the charter rate is fixed and determinable, and collectability is reasonably assured. Additionally, voyage expenses related to voyage charters, including bunkers and port expenses, are deferred until load port and expensed on a load-to-discharge basis under the amended guidance. There is no modifications under the amended guidance for our method of recognizing net pool revenues—related party and time charter revenues. We adopted the amended guidance beginning April 1, 2018. The adoption of the amended guidance did not have any material impact on our condensed consolidated financial statements for the three months ended June 30, 2018 or for prior periods, but may impact the timing with which voyage charter revenues will be recognized in future periods.

 

Accounting Pronouncements Not Yet Adopted

 

In February 2016, the FASB issued accounting guidance to update the requirements of financial accounting and reporting for lessees and lessors. The updated guidance, for lease terms of more than 12 months, will require a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. Lessor accounting remains largely unchanged from current U.S. GAAP. We expect that our time charter arrangements will be subject to the requirements of the new lease guidance as we will be regarded as the lessor under these arrangements. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. In July 2018, the FASB issued amended guidance to provide entities with relief from the cost of implementing certain aspects of the new leasing guidance. Entities may elect not to recast comparative periods presented when transitioning to the new leasing guidance and, furthermore, lessors may elect not to separate lease and nonlease components when certain conditions are met. The pronouncement is effective prospectively for public business entities for annual periods beginning after December 15, 2018, and interim periods within that reporting period. Early adoption is permitted for all entities. We intend to adopt the new guidance on its required effective date of April 1, 2019 and are currently assessing the impact the amended guidance will have on our condensed consolidated financial statements.

v3.10.0.1
Transactions with Related Parties
3 Months Ended
Jun. 30, 2018
Transactions with Related Parties  
Transactions with Related Parties

3.  Transactions with Related Parties

 

Dorian (Hellas), S.A.

 

Dorian (Hellas) S.A. (“DHSA”) formerly provided technical, crew, commercial management, insurance and accounting services to our vessels and had agreements to outsource certain of these services to Eagle Ocean Transport Inc. (“Eagle Ocean Transport”), which is 100% owned by Mr. John C. Hadjipateras, our Chairman, President and Chief Executive Officer.

 

Dorian LPG (USA) LLC and its subsidiaries entered into an agreement with DHSA, retroactive to July 2014 and superseding an agreement between Dorian LPG (UK) Ltd. and DHSA, for the provision by Dorian LPG (USA) LLC and its subsidiaries of certain chartering and marine operation services to DHSA, for which income was earned and included in “Other income-related parties” totaling $0.1 million for both the three months ended June 30, 2018 and 2017, respectively.

 

As of June 30, 2018,  $1.0 million was due from DHSA and included in “Due from related parties” in the unaudited interim condensed consolidated balance sheets included herein. As of March 31, 2018,  $0.9 million was due from DHSA and included in “Due from related parties” in the audited consolidated balance sheets.

 

Eagle Ocean Transport incurs office-related costs on behalf of us, for which we reimbursed Eagle Ocean Transport less than $0.1 million and $0.1 million for the three months ended June 30, 2018 and 2017, respectively. Such expenses are reimbursed based on their actual cost.

 

Helios LPG Pool LLC

 

On April 1, 2015, Dorian and Phoenix began operations of the Helios Pool, which entered into pool participation agreements for the purpose of establishing and operating, as charterer, under variable rate time charters to be entered into with owners or disponent owners of VLGCs, a commercial pool of VLGCs whereby revenues and expenses are shared. We hold a 50% interest in the Helios Pool as a joint venture with Phoenix and all significant rights and obligations are equally shared by both parties. All profits of the Helios Pool are distributed to the pool participants based on pool points assigned to each vessel as variable charter hire and, as a result, there are no profits available to the equity investors as a share of equity. We have determined that the Helios Pool is a variable interest entity as it does not have sufficient equity at risk. We do not consolidate the Helios Pool because we are not the primary beneficiary and do not have a controlling financial interest. In consideration of Accounting Standards Codification (“ASC”) 810-10-50-4e, the significant factors considered and judgments made in determining that the power to direct the activities of the Helios Pool that most significantly impact the entity’s economic performance are shared, in that all significant performance activities which relate to approval of pool policies and strategies related to pool customers and the marketing of the pool for the procurement of customers for the pool vessels, addition of new pool vessels and the pool cost management, require unanimous board consent from a board consisting of two members from each joint venture investor. Further, in accordance with the guidance in ASC 810-10-25-38D, the Company and Phoenix are not related parties as defined in ASC 850 nor are they de facto agents pursuant to ASC 810-10, the power over the significant activities of the Helios Pool is shared, and no party is the primary beneficiary in the Helios Pool, or has a controlling financial interest. As of June 30, 2018, the Helios Pool operated twenty-seven VLGCs, including nineteen of our vessels, five Phoenix vessels, and three other vessels.

 

As of June 30, 2018, we had receivables from the Helios Pool of $52.6 million, including $20.9 million of working capital contributed for the operation of our vessels in the pool. As of March 31, 2018, we had receivables from the Helios Pool of $45.4 million (net of an amount due to Helios Pool of $0.3 million which is reflected under “Due to related Parties”), including $19.8 million of working capital contributed for the operation of our vessels in the pool. Our maximum exposure to losses from the pool as of June 30, 2018 is limited to the receivables from the pool. The Helios Pool does not have any third-party debt obligations. The Helios Pool has entered into commercial management agreements with each of Dorian LPG (UK) Ltd. and Phoenix as commercial managers and has appointed both commercial managers as the exclusive commercial managers of pool vessels. Fees for commercial management services provided by Dorian LPG (UK) Ltd. are included in “Other income-related parties” in the unaudited interim condensed consolidated statement of operations included herein and were $0.6 million and $0.5 million for the three months ended June 30, 2018 and 2017, respectively. Additionally, we receive a fixed reimbursement of expenses such as costs for security guards and war risk insurance for vessels operating in high risk areas from the Helios Pool, for which we earned $0.1 million and less than $0.1 million for the three months ended June 30, 2018, and 2017, respectively, and are included in “Other revenues, net” in the unaudited interim condensed consolidated statement of operations included herein.

 

Through our vessel owning subsidiaries, we have chartered vessels to the Helios Pool during the three months ended June 30, 2018 and 2017. The time charter revenue from the Helios Pool is variable depending upon the net results of the pool, operating days and pool points for each vessel. The Helios Pool enters into voyage and time charters with external parties and receives freight and related revenue and, where applicable, incurs voyage costs such as bunkers, port costs and commissions. At the end of each month, the Helios Pool calculates net pool revenues using gross revenues, less voyage expenses of all pool vessels, less fixed time charter hire for any chartered-in vessels, less the general and administrative expenses of the pool. Net pool revenues, less any amounts required for working capital of the Helios Pool, are distributed as variable rate time charter hire for the relevant vessel to participants based on pool points (vessel attributes such as cargo carrying capacity, fuel consumption, and speed are taken into consideration) and number of days the vessel participated in the pool in the period. We recognize net pool revenues on a monthly basis, when each relevant vessel has participated in the pool during the period and the amount of net pool revenues for the month can be estimated reliably. Revenue earned from the Helios Pool is presented in Note 8.

v3.10.0.1
Deferred Charges, Net
3 Months Ended
Jun. 30, 2018
Deferred Charges, Net.  
Deferred Charges, Net

4.  Deferred Charges, Net

 

The analysis and movement of deferred charges is presented in the table below:

 

 

 

 

 

 

 

    

Drydocking

 

 

 

costs

 

Balance, April 1, 2018

 

$

1,574,522

 

Additions

 

 

98,891

 

Amortization

 

 

(146,433)

 

Balance, June 30, 2018

 

$

1,526,980

 

 

v3.10.0.1
Vessels, Net
3 Months Ended
Jun. 30, 2018
Vessels, Net  
Vessels, Net

5.  Vessels, Net

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

Accumulated

    

 

 

 

 

 

Cost

 

depreciation

 

Net book Value

 

Balance, April 1, 2018

 

$

1,728,987,980

 

$

(189,876,147)

 

$

1,539,111,833

 

Other additions

 

 

131,193

 

 

 —

 

 

131,193

 

Depreciation

 

 

 —

 

 

(16,099,795)

 

 

(16,099,795)

 

Balance, June 30, 2018

 

$

1,729,119,173

 

$

(205,975,942)

 

$

1,523,143,231

 

 

Additions to vessels, net were largely due to capital improvements made to one of our VLGCs during the three months ended June 30, 2018. Our vessels, with a total carrying value of $1,523.1 million and $1,539.1 million as of June 30, 2018 and March 31, 2018, respectively, are first‑priority mortgaged as collateral for our long-term debt (refer to Note 6 below). No impairment loss was recorded for the periods presented.

v3.10.0.1
Long-Term Debt
3 Months Ended
Jun. 30, 2018
Long-Term Debt  
Long-Term Debt

 

6.  Long-term Debt

 

2015 Debt Facility 

 

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018 for information on our $758 million debt financing facility that we entered into in March 2015 with a group of banks and financial institutions (the “2015 Debt Facility”).

 

 

2017 Bridge Loan

 

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018 for information on our $97.0 million bridge loan agreement (the “2017 Bridge Loan”) with DNB Capital LLC that we entered into on June 8, 2017. On June 4, 2018, we prepaid $22.3 million of the 2017 Bridge Loan’s then outstanding principal using cash on hand prior to the closing of the CJNP Japanese Financing (defined below). On June 20, 2018, we prepaid the remaining 2017 Bridge Loan’s outstanding principal of $44.6 million ($23.4 million related to the Captain Nicholas ML and $21.2 million related to the Captain Markos NL) using cash on hand prior to the closing of the CMNL Japanese Financing (defined below) and the CNML Japanese Financing (defined below).

 

Corsair Japanese Financing

 

On November 7, 2017, we refinanced our 2014-built VLGC, the Corsair, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corsair Japanese Financing”). Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018 for information on the Corsair Japanese Financing.

Concorde Japanese Financing

 

On January 31, 2018, we refinanced our 2015-built VLGC, the Concorde, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Concorde Japanese Financing”). Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018 for information on the Concorde Japanese Financing.

Corvette Japanese Financing

 

On March 16, 2018, we refinanced our 2015-built VLGC, the Corvette, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corvette Japanese Financing”). Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018 for information on the Corvette Japanese Financing.

CJNP Japanese Financing

 

On June 11, 2018, we refinanced our 2007-built VLGC, the Captain John NP, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CJNP Japanese Financing”). In connection therewith, we transferred the Captain John NP to the buyer for $48.3 million and, as part of the agreement, CJNP LPG Transport LLC, our wholly-owned subsidiary, bareboat chartered the vessel back for a period of 6 years, with purchase options from the end of year 2 through a mandatory buyout by 2024. We continue to technically manage, commercially charter, and operate the Captain John NP. We received $21.7 million, which increased our unrestricted cash, as part of the transaction with $26.6 million to be retained by the buyer as a deposit (the “CJNP Deposit”), which can be used by us towards the repurchase of the vessel either pursuant to an early buyout option or at the end of the 6-year bareboat charter term. This transaction is treated as a financing transaction and the Captain John NP continues to be recorded as an asset on our balance sheet. This debt financing has a fixed interest rate of 6.0%, not including estimated financing costs of $0.1 million, monthly broker commission fees of 1.25% over the 6-year term on interest and principal payments made, broker commission fees of 1.0% of an exercised purchase option excluding the CJNP Deposit, and a monthly fixed straight-line principal obligation of approximately $0.1 million over the 6-year term with a balloon payment of $13.0 million.

 

CMNL Japanese Financing

 

On June 25, 2018, we refinanced our 2006-built VLGC, the Captain Markos NL, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CMNL Japanese Financing”). In connection therewith, we transferred the Captain Markos NL to the buyer for $45.8 million and, as part of the agreement, CMNL LPG Transport LLC, our wholly-owned subsidiary, bareboat chartered the vessel back for a period of 7 years, with purchase options from the end of year 2 through a mandatory buyout by 2025. We continue to technically manage, commercially charter, and operate the Captain Markos NL. We received $20.6 million, which increased our unrestricted cash, as part of the transaction with $25.2 million to be retained by the buyer as a deposit (the “CMNL Deposit”), which can be used by us towards the repurchase of the vessel either pursuant to an early buyout option or at the end of the 7-year bareboat charter term. This transaction is treated as a financing transaction and the Captain Markos NL continues to be recorded as an asset on our balance sheet. This debt financing has a fixed interest rate of 6.0%, not including estimated financing costs of $0.1 million, monthly broker commission fees of 1.25% over the 7-year term on interest and principal payments made, broker commission fees of 1.0% of an exercised purchase option excluding the CMNL Deposit, and a monthly fixed straight-line principal obligation of approximately $0.1 million over the 7-year term with a balloon payment of $11.0 million.

 

CNML Japanese Financing

 

On June 26, 2018, we refinanced our 2008-built VLGC, the Captain Nicholas ML, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CNML Japanese Financing”). In connection therewith, we transferred the Captain Nicholas ML to the buyer for $50.8 million and, as part of the agreement, CNML LPG Transport LLC, our wholly-owned subsidiary, bareboat chartered the vessel back for a period of 7 years, with purchase options from the end of year 2 through a mandatory buyout by 2025. We continue to technically manage, commercially charter, and operate the Captain Nicholas ML. We received $22.9 million, which increased our unrestricted cash, as part of the transaction with $27.9 million to be retained by the buyer as a deposit (the “CNML Deposit”), which can be used by us towards the repurchase of the vessel either pursuant to an early buyout option or at the end of the 7-year bareboat charter term. This transaction is treated as a financing transaction and the Captain Nicholas ML continues to be recorded as an asset on our balance sheet. This debt financing has a fixed interest rate of 6.0%, not including estimated financing costs of $0.1 million, monthly broker commission fees of 1.25% over the 7-year term on interest and principal payments made, broker commission fees of 1.0% of an exercised purchase option excluding the CNML Deposit, and a monthly fixed straight-line principal obligation of approximately $0.1 million over the 7-year term with a balloon payment of $13.0 million.

 

Debt Obligations

 

The table below presents our debt obligations:

 

 

 

 

 

 

 

 

 

 

    

June 30, 2018

    

March 31, 2018

 

2015 Debt Facility

 

 

 

 

 

 

 

Commercial Financing

 

$

184,913,825

 

$

187,989,229

 

KEXIM Direct Financing

 

 

137,218,158

 

 

141,004,162

 

KEXIM Guaranteed

 

 

141,602,690

 

 

145,348,064

 

K-sure Insured

 

 

70,411,604

 

 

72,313,416

 

Total 2015 Debt Facility

 

$

534,146,277

 

$

546,654,871

 

 

 

 

 

 

 

 

 

Japanese Financings

 

 

 

 

 

 

 

Corsair Japanese Financing

 

$

49,833,333

 

$

50,645,833

 

Concorde Japanese Financing

 

 

54,384,615

 

 

55,192,308

 

Corvette Japanese Financing

 

 

54,923,077

 

 

55,730,769

 

CJNP Japanese Financing

 

 

21,591,875

 

 

 —

 

CMNL Japanese Financing

 

 

20,473,363

 

 

 —

 

CNML Japanese Financing

 

 

22,720,387

 

 

 —

 

Total Japanese Financings

 

$

223,926,650

 

$

161,568,910

 

 

 

 

 

 

 

 

 

2017 Bridge Loan

 

$

 —

 

$

66,940,405

 

 

 

 

 

 

 

 

 

Total debt obligations

 

$

758,072,927

 

$

775,164,186

 

Less: deferred financing fees

 

 

16,419,824

 

 

16,061,034

 

Debt obligations—net of deferred financing fees

 

$

741,653,103

 

$

759,103,152

 

 

 

 

 

 

 

 

 

Presented as follows:

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

63,968,414

 

$

65,067,569

 

Long-term debt—net of current portion and deferred financing fees

 

 

677,684,689

 

 

694,035,583

 

Total

 

$

741,653,103

 

$

759,103,152

 

 

Deferred Financing Fees

The analysis and movement of deferred financing fees is presented in the table below:

 

 

 

 

 

 

 

    

Financing

 

 

 

costs

 

Balance, April 1, 2018

 

$

16,061,034

 

Additions

 

 

1,152,002

 

Amortization

 

 

(793,212)

 

Balance, June 30, 2018

 

$

16,419,824

 

 

v3.10.0.1
Stock-Based Compensation Plans
3 Months Ended
Jun. 30, 2018
Stock-Based Compensation Plans  
Stock-Based Compensation Plans

7.  Stock-Based Compensation Plans

 

Our stock-based compensation expense is included within general and administrative expenses in the accompanying unaudited interim condensed consolidated statements of operations and was $1.6 million and $1.5 million for the three months ended June 30, 2018 and 2017, respectively. Unrecognized compensation cost was $6.5 million as of June 30, 2018 and will be recognized over the remaining weighted average life of 1.60 years. For more information on our equity incentive plan, refer to Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018.

 

In June 2018, we granted 200,000 shares of restricted stock to certain of our officers and employees. One-fourth of these restricted shares vested immediately on the grant date, one-fourth will vest one year after grant date, one-fourth will vest two years after grant date, and one-fourth will vest three years after grant date. The restricted shares were valued at their grant date fair market value and are expensed on a straight-line basis over the vesting periods. 

 

In June 2018, we granted 7,960 shares of stock to our non-executive directors, which were valued and expensed at their grant date fair market value.

 

In June 2018, we granted 1,592 shares of stock to a non-employee consultant, which were valued and expensed at their grant date fair market value.

 

A summary of the activity of restricted shares awarded under our equity incentive plan as of June 30, 2018 and changes during the three months ended June 30, 2018, is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Weighted-Average

 

 

 

 

 

Grant-Date

 

Incentive Share Awards

 

Numbers of Shares

 

Fair Value

 

Unvested as of April 1, 2018

 

918,344

 

$

15.67

 

Granted

 

209,552

 

 

8.33

 

Vested

 

(402,211)

 

 

16.04

 

Unvested as of June 30, 2018

 

725,685

 

$

13.34

 

 

v3.10.0.1
Revenues
3 Months Ended
Jun. 30, 2018
Revenues.  
Revenues

8.  Revenues

 

Revenues comprise the following:

 

 

 

 

 

 

 

 

 

 

    

Three months ended 

 

 

 

June 30, 2018

    

June 30, 2017

 

Net pool revenues—related party

 

$

16,106,401

 

$

28,475,359

 

Time charter revenues

 

 

11,467,881

 

 

12,564,655

 

Other revenues, net

 

 

70,000

 

 

(14,542)

 

Total revenues

 

$

27,644,282

 

$

41,025,472

 

 

Net pool revenues—related party depend upon the net results of the Helios Pool, and the operating days and pool points for each vessel. Refer to Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018.

 

Other revenues, net represent income from charterers relating to reimbursement of voyage expenses such as costs for security guards and war risk insurance.

v3.10.0.1
Financial Instruments and Fair Value Disclosures
3 Months Ended
Jun. 30, 2018
Financial Instruments and Fair Value Disclosures  
Financial Instruments and Fair Value Disclosures

9.  Financial Instruments and Fair Value Disclosures

 

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

 

(a)

Concentration of credit risk:  Financial instruments, which may subject us to significant concentrations of credit risk, consist principally of amounts due from our charterers, including the receivables from Helios Pool, cash and cash equivalents, and restricted cash. We limit our credit risk with amounts due from our charterers, including those through the Helios Pool, by performing ongoing credit evaluations of our charterers’ financial condition and generally do not require collateral from our charterers. We limit our credit risk with our cash and cash equivalents and restricted cash by placing it with highly-rated financial institutions.

 

(b)

Interest rate risk:  Our long‑term bank loans are based on LIBOR and hence we are exposed to movements thereto. We entered into interest rate swap agreements in order to hedge a majority of our variable interest rate exposure related to our 2015 Debt Facility. Refer to Note 18 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2018 for information on our interest rate swap agreements related to the 2015 Debt Facility.  

 

(c)

Fair value measurements: Interest rate swaps are stated at fair value, which is determined using a discounted cash flow approach based on marketbased LIBOR swap yield rates. LIBOR swap rates are observable at commonly quoted intervals for the full terms of the swaps and, therefore, are considered Level 2 items in accordance with the fair value hierarchy. The fair value of the interest rate swap agreements approximates the amount that we would have to pay or receive for the early termination of the agreements. The following table summarizes the location on the balance sheet of the financial assets and liabilities that are carried at fair value on a recurring basis, which comprise our financial derivatives all of which are considered Level 2 items in accordance with the fair value hierarchy:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

March 31, 2018

 

 

 

Other non-current assets

 

Long-term liabilities

 

Other non-current assets

 

Long-term liabilities

 

Derivatives not designated as hedging instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

 

Interest rate swap agreements

 

$

15,972,515

 

$

 —

 

$

14,264,899

 

$

 —

 

 

The effect of derivative instruments within the unaudited interim condensed consolidated statements of operations included herein for the periods presented is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Derivatives not designated as hedging instruments

    

Location of gain/(loss) recognized

    

June 30, 2018

    

June 30, 2017

 

Interest Rate Swap—Change in fair value

 

Unrealized gain/(loss) on derivatives

 

$

1,707,616

 

$

(2,370,191)

 

Interest Rate Swap—Realized gain/(loss)

 

Realized gain/(loss) on derivatives

 

 

782,565

 

 

(612,863)

 

Gain/(loss) on derivatives, net

 

 

 

$

2,490,181

 

$

(2,983,054)

 

 

As of June 30, 2018 and March 31, 2018,  no fair value measurements for assets or liabilities under Level 1 or Level 3 were recognized in the accompanying consolidated balance sheets. We did not have any other assets or liabilities measured at fair value on a non-recurring basis during the three months ended June 30, 2018 and 2017.

 

(d)

Book values and fair values of financial instruments:   In addition to the derivatives that we are required to record at fair value on our balance sheet (see (c) above), we have other financial instruments that are carried at historical cost. These financial instruments include trade accounts receivable, amounts due from related parties, cash and cash equivalents, accounts payable, amounts due to related parties and accrued liabilities for which the historical carrying value approximates the fair value due to the short-term nature of these financial instruments. Cash and cash equivalents and restricted cash are considered Level 1 items. We have long-term bank debt for which we believe the historical carrying value approximates their fair value as the loans bear interest at variable interest rates, being LIBOR, which is observable at commonly quoted intervals for the full terms of the loans, and hence are considered as Level 2 items in accordance with the fair value hierarchy. We also have long-term debt related to the Corsair Japanese Financing, Concorde Japanese Financing, Corvette Japanese Financing, CJNP Japanese Financing, CMNL Japanese Financing, and CNML Japanese Financing (collectively the “Japanese Financings”) that incur interest at a fixed-rate with the initial principal amount amortized to the purchase obligation price of each vessel. The Japanese Financings are considered Level 2 items in accordance with the fair value hierarchy and the fair value of each is based on a discounted cash flow analysis using current observable interest rates. The following table summarizes the carrying value and estimated fair value of the Japanese Financings as of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

March 31, 2018

 

 

    

Carrying Value

    

Fair Value

 

    

Carrying Value

    

Fair Value

 

Corsair Japanese Financing

 

$

49,833,333

 

$

46,584,864

 

 

$

50,645,833

 

$

50,645,833

 

Concorde Japanese Financing

 

 

54,384,615

 

 

50,574,308

 

 

 

55,192,308

 

 

55,192,308

 

Corvette Japanese Financing

 

 

54,923,077

 

 

51,046,026

 

 

 

55,730,769

 

 

55,730,769

 

CJNP Japanese Financing

 

 

21,591,875

 

 

21,508,713

 

 

 

 —

 

 

 —

 

CMNL Japanese Financing

 

 

20,473,363

 

 

20,395,106

 

 

 

 —

 

 

 —

 

CNML Japanese Financing

 

$

22,720,387

 

$

22,629,188

 

 

$

 —

 

$

 —

 

 

v3.10.0.1
Earnings/(Loss) Per Share (EPS)
3 Months Ended
Jun. 30, 2018
Earnings/(Loss) Per Share ("EPS")  
Earnings/(Loss) Per Share ("EPS")

10.  Earnings/(Loss) Per Share (“EPS”)

 

Basic EPS represents net income/(loss) attributable to common shareholders divided by the weighted average number of common shares outstanding during the measurement period. Our restricted stock shares include rights to receive dividends that are subject to the risk of forfeiture if service requirements are not satisfied, and as a result, these shares are not considered participating securities and are excluded from the basic weighted-average shares outstanding calculation. Diluted EPS represent net income/(loss) attributable to common shareholders divided by the weighted average number of common shares outstanding during the measurement period while also giving effect to all potentially dilutive common shares that were outstanding during the period.

 

The calculations of basic and diluted EPS for the periods presented are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

 

(In U.S. dollars except share data)

 

June 30, 2018

 

June 30, 2017

 

 

Numerator:

 

 

 

 

 

 

 

 

Net loss

 

$

(20,596,558)

 

$

(6,689,970)

 

 

Denominator:

 

 

 

 

 

 

 

 

Basic and diluted weighted average number of common shares outstanding

 

 

54,237,237

 

 

53,875,292

 

 

EPS:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.38)

 

$

(0.12)

 

 

 

For the three months ended June 30, 2018 and 2017, there were 725,685 and 1,029,266 shares of unvested restricted stock, respectively, which were excluded from the calculation of diluted EPS because the effect of their inclusion would be anti-dilutive.

v3.10.0.1
Commitments and Contingencies
3 Months Ended
Jun. 30, 2018
Commitments and Contingencies  
Commitments and Contingencies

11.  Commitments and Contingencies

 

Operating Leases

 

Operating lease rent expense was as follows:

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

 

 

June 30, 2018

 

June 30, 2017

 

Operating lease rent expense

 

$

127,482

 

$

106,192

 

 

We had the following commitments as a lessee under operating leases relating to our United States, Greece and United Kingdom offices:

 

 

 

 

 

 

 

 

June 30, 2018

 

Less than one year

 

$

466,647

 

One to three years

 

 

483,459

 

Three to five years

 

 

393,715

 

Total

 

$

1,343,821

 

 

Fixed Time Charter Contracts

 

We had the following future minimum fixed time charter hire receipts based on non-cancelable long-term fixed time charter contracts:

 

 

 

 

 

 

 

 

June 30, 2018

 

Less than one year

 

$

32,713,113

 

One to three years

 

 

17,666,365

 

Total

 

$

50,379,478

 

 

Other

 

From time to time we expect to be subject to legal proceedings and claims in the ordinary course of business, principally personal injury and property casualty claims. Such claims, even if lacking in merit, could result in the expenditure of significant financial and managerial resources. We are not aware of any claim that is reasonably possible and should be disclosed or probable and for which a provision should be established in the accompanying unaudited interim condensed consolidated financial statements.

v3.10.0.1
Significant Accounting Policies (Policies)
3 Months Ended
Jun. 30, 2018
Significant Accounting Policies  
Recent accounting pronouncements

Accounting Pronouncements Adopted During the Three Months Ended June 30, 2018

 

In November 2016, the Financial Accounting Standards Board (the “FASB”) issued accounting guidance to require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The pronouncement is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and are 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 condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

March 31, 2018

 

June 30, 2017

 

March 31, 2017

 

Cash and cash equivalents

 

$

65,291,784

 

$

103,505,676

 

$

35,363,045

 

$

17,018,552

 

Restricted cash—non-current

 

 

35,636,500

 

 

25,862,704

 

 

18,075,146

 

 

50,874,146

 

Total cash, cash equivalents, and restricted cash

 

$

100,928,284

 

$

129,368,380

 

$

53,438,191

 

$

67,892,698

 

 

In August 2016, the FASB issued accounting guidance addressing specific cash flow statement issues with the objective of reducing the existing diversity in practice. The pronouncement is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The implementation of this guidance did not have a material effect on our condensed consolidated financial statements.

 

In May 2014, the FASB amended its accounting guidance for revenue recognition. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and consideration that a company expects to receive for the services provided. The amended guidance introduces a five-step process to achieve the fundamental principles and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. It also provides further guidance on applying collectability criterion to assess whether a contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration. The amended guidance requires additional disclosures necessary for the financial statement users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB voted to defer the effective date by one year for fiscal years beginning on or after December 15, 2017 and interim periods within that reporting period and permit early adoption of the standard, but not before the beginning of 2017. The amended guidance shall be applied either retrospectively to each period presented or as a cumulative effect adjustment as of the date of adoption. Under the amended guidance, voyage charter revenues are recognized based on load-to-discharge basis as compared to the previously used discharge-to-discharge basis, provided an agreed non-cancellable charter between the Company and the charterer is in existence, the charter rate is fixed and determinable, and collectability is reasonably assured. Additionally, voyage expenses related to voyage charters, including bunkers and port expenses, are deferred until load port and expensed on a load-to-discharge basis under the amended guidance. There is no modifications under the amended guidance for our method of recognizing net pool revenues—related party and time charter revenues. We adopted the amended guidance beginning April 1, 2018. The adoption of the amended guidance did not have any material impact on our condensed consolidated financial statements for the three months ended June 30, 2018 or for prior periods, but may impact the timing with which voyage charter revenues will be recognized in future periods.

 

Accounting Pronouncements Not Yet Adopted

 

In February 2016, the FASB issued accounting guidance to update the requirements of financial accounting and reporting for lessees and lessors. The updated guidance, for lease terms of more than 12 months, will require a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. Lessor accounting remains largely unchanged from current U.S. GAAP. We expect that our time charter arrangements will be subject to the requirements of the new lease guidance as we will be regarded as the lessor under these arrangements. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. In July 2018, the FASB issued amended guidance to provide entities with relief from the cost of implementing certain aspects of the new leasing guidance. Entities may elect not to recast comparative periods presented when transitioning to the new leasing guidance and, furthermore, lessors may elect not to separate lease and nonlease components when certain conditions are met. The pronouncement is effective prospectively for public business entities for annual periods beginning after December 15, 2018, and interim periods within that reporting period. Early adoption is permitted for all entities. We intend to adopt the new guidance on its required effective date of April 1, 2019 and are currently assessing the impact the amended guidance will have on our condensed consolidated financial statements.

v3.10.0.1
Basis of Presentation and General Information (Tables)
3 Months Ended
Jun. 30, 2018
Basis of Presentation and General Information  
Schedule of wholly-owned subsidiaries

Our subsidiaries as of June 30, 2018, which are all wholly-owned and are incorporated in Republic of the Marshall Islands (unless otherwise noted), are listed below.

 

Vessel Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

    

Type of

    

 

    

 

    

 

 

Subsidiary

 

vessel

 

Vessel’s name

 

Built

 

CBM(1)

 

CMNL LPG Transport LLC

 

VLGC

 

Captain Markos NL(2)

 

2006

 

82,000

 

CJNP LPG Transport LLC

 

VLGC

 

Captain John NP(2)

 

2007

 

82,000

 

CNML LPG Transport LLC

 

VLGC

 

Captain Nicholas ML(2)

 

2008

 

82,000

 

Comet LPG Transport LLC

 

VLGC

 

Comet

 

2014

 

84,000

 

Corsair LPG Transport LLC

 

VLGC

 

Corsair(2)

 

2014

 

84,000

 

Corvette LPG Transport LLC

 

VLGC

 

Corvette(2)

 

2015

 

84,000

 

Dorian Shanghai LPG Transport LLC

 

VLGC

 

Cougar

 

2015

 

84,000

 

Concorde LPG Transport LLC

 

VLGC

 

Concorde(2)

 

2015

 

84,000

 

Dorian Houston LPG Transport LLC

 

VLGC

 

Cobra

 

2015

 

84,000

 

Dorian Sao Paulo LPG Transport LLC

 

VLGC

 

Continental

 

2015

 

84,000

 

Dorian Ulsan LPG Transport LLC

 

VLGC

 

Constitution

 

2015

 

84,000

 

Dorian Amsterdam LPG Transport LLC

 

VLGC

 

Commodore

 

2015

 

84,000

 

Dorian Dubai LPG Transport LLC

 

VLGC

 

Cresques

 

2015

 

84,000

 

Constellation LPG Transport LLC

 

VLGC

 

Constellation

 

2015

 

84,000

 

Dorian Monaco LPG Transport LLC

 

VLGC

 

Cheyenne

 

2015

 

84,000

 

Dorian Barcelona LPG Transport LLC

 

VLGC

 

Clermont

 

2015

 

84,000

 

Dorian Geneva LPG Transport LLC

 

VLGC

 

Cratis

 

2015

 

84,000

 

Dorian Cape Town LPG Transport LLC

 

VLGC

 

Chaparral

 

2015

 

84,000

 

Dorian Tokyo LPG Transport LLC

 

VLGC

 

Copernicus

 

2015

 

84,000

 

Commander LPG Transport LLC

 

VLGC

 

Commander

 

2015

 

84,000

 

Dorian Explorer LPG Transport LLC

 

VLGC

 

Challenger

 

2015

 

84,000

 

Dorian Exporter LPG Transport LLC

 

VLGC

 

Caravelle

 

2016

 

84,000

 

 

 Management Subsidiaries

 

 

 

 

Subsidiary

 

Dorian LPG Management Corp.

 

Dorian LPG (USA) LLC (incorporated in USA)

 

Dorian LPG (UK) Ltd. (incorporated in UK)

 

Dorian LPG Finance LLC

 

Occident River Trading Limited (incorporated in UK)

 

 

Dormant Subsidiaries

 

 

 

 

Subsidiary

 

SeaCor LPG I LLC

 

SeaCor LPG II LLC

 

Capricorn LPG Transport LLC

 

Constitution LPG Transport LLC

 

Grendon Tanker LLC

 


(1)

CBM: Cubic meters, a standard measure for LPG tanker capacity

(2)

Operated pursuant to a bareboat charter agreement. Refer to Note 6 below for further information.

 

v3.10.0.1
Significant Accounting Policies (Tables)
3 Months Ended
Jun. 30, 2018
Significant Accounting Policies  
Reconciliation of cash, cash equivalents, and restricted cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

March 31, 2018

 

June 30, 2017