DORIAN LPG LTD., 10-Q filed on 11/3/2021
Quarterly Report
v3.21.2
Document and Entity Information - shares
6 Months Ended
Sep. 30, 2021
Oct. 29, 2021
Cover Abstract    
Entity Registrant Name DORIAN LPG LTD.  
Entity Central Index Key 0001596993  
Document Type 10-Q  
Document Period End Date Sep. 30, 2021  
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 001-36437  
Entity Incorporation, State or Country Code 1T  
Entity Tax Identification Number 66-0818228  
Entity Address, Address Line One 27 Signal Road  
Entity Address, City or Town Stamford  
Entity Address, State or Province CT  
Entity Address, Postal Zip Code 06902  
City Area Code 203  
Local Phone Number 674-9900  
Title of 12(b) Security Common stock, par value $0.01 per share  
Trading Symbol LPG  
Security Exchange Name NYSE  
Amendment Flag false  
Current Fiscal Year End Date --03-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   40,140,366
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
v3.21.2
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2021
Mar. 31, 2021
Current assets    
Cash and cash equivalents $ 98,105,235 $ 79,330,007
Restricted cash - current 5,315,951 5,315,951
Trade receivables, net and accrued revenues 347,230 202,221
Due from related parties 29,805,770 56,191,375
Inventories 1,780,298 2,007,464
Prepaid expenses and other current assets 10,933,818 10,296,229
Total current assets 146,288,302 153,343,247
Fixed assets    
Vessels, net 1,311,063,981 1,377,028,255
Vessels under construction 8,059,748  
Other fixed assets, net 105,735 148,836
Total fixed assets 1,319,229,464 1,377,177,091
Other non-current assets    
Deferred charges, net 10,658,199 10,158,202
Due from related parties-non-current 22,000,000 23,100,000
Restricted cash - non-current 80,651 81,241
Operating lease right-of-use assets 12,928,782 17,672,227
Other non-current assets 413,528 82,837
Total assets 1,511,598,926 1,581,614,845
Current liabilities    
Trade accounts payable 9,432,098 9,831,328
Accrued expenses 9,579,112 8,765,264
Due to related parties 37,434 117,803
Deferred income 613,266 853,983
Derivative instruments 487,361 1,100,529
Current portion of long-term operating lease liabilities 9,666,997 9,591,447
Current portion of long-term debt 66,472,664 51,820,283
Dividends payable 230,090  
Total current liabilities 96,519,022 82,080,637
Long-term liabilities    
Long-term debt-net of current portion and deferred financing fees 500,391,565 539,651,761
Long-term operating lease liabilities 3,252,857 8,080,995
Derivative instruments 2,919,306 3,454,862
Other long-term liabilities 1,566,886 1,521,260
Total long-term liabilities 508,130,614 552,708,878
Total liabilities 604,649,636 634,789,515
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, 51,275,609 and 51,071,409 shares issued, 40,140,366 and 41,493,275 shares outstanding (net of treasury stock), as of September 30, 2021 and March 31, 2021, respectively 512,757 510,715
Additional paid-in-capital 758,711,553 756,776,217
Treasury stock, at cost; 11,135,243 and 9,578,134 shares as of September 30, 2021 and March 31, 2021, respectively (121,209,001) (99,862,114)
Retained earnings 268,933,981 289,400,512
Total shareholders' equity 906,949,290 946,825,330
Total liabilities and shareholders' equity $ 1,511,598,926 $ 1,581,614,845
v3.21.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2021
Mar. 31, 2021
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 51,275,609 51,071,409
Common stock, shares outstanding (net of treasury stock) 40,140,366 41,493,275
Treasury stock, shares at cost 11,135,243 9,578,134
v3.21.2
Condensed Consolidated Statements of Operations - USD ($)
3 Months Ended 6 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Revenues.        
Revenues $ 63,086,858 $ 54,710,277 $ 126,037,596 $ 127,875,601
Expenses        
Voyage expenses 1,064,613 858,919 2,421,005 1,674,114
Charter hire expenses 2,403,968 4,518,850 5,912,038 9,234,448
Vessel operating expenses 18,428,738 21,435,904 38,710,292 38,825,267
Depreciation and amortization 16,769,098 17,202,714 33,912,013 34,093,127
General and administrative expenses 9,351,728 5,912,810 17,390,535 17,215,786
Total expenses 48,018,145 49,929,197 98,345,883 101,042,742
Gain on disposal of vessel 3,466,210   3,466,210  
Other income-related parties 580,387 632,680 1,213,275 1,100,703
Operating income 19,115,310 5,413,760 32,371,198 27,933,562
Other income/(expenses)        
Interest and finance costs (5,557,707) (6,665,144) (11,207,481) (15,752,380)
Interest income 39,104 91,349 225,403 216,184
Unrealized gain on derivatives 714,998 3,968,686 1,148,724 3,472,880
Realized loss on derivatives (914,837) (2,129,695) (1,818,555) (2,935,924)
Other gain/(loss), net 704,935 (141,006) (748,386) (228,367)
Total other income/(expenses), net (5,013,507) (4,875,810) (12,400,295) (15,227,607)
Net income $ 14,101,803 $ 537,950 $ 19,970,903 $ 12,705,955
Weighted average shares outstanding Basic (in shares) 40,011,505 50,711,714 40,475,625 50,632,392
Weighted average shares outstanding Diluted (in shares) 40,114,942 50,754,507 40,639,073 50,716,177
Earnings per common share - basic (in dollars per share) $ 0.35 $ 0.01 $ 0.49 $ 0.25
Earnings per common share - diluted (in dollars per share) $ 0.35 $ 0.01 $ 0.49 $ 0.25
Net pool revenues - related party        
Revenues.        
Revenues $ 56,721,405 $ 49,723,556 $ 111,883,651 $ 116,652,977
Time charter revenues        
Revenues.        
Revenues 5,268,603 4,177,064 10,614,742 9,263,068
Other revenues, net        
Revenues.        
Revenues $ 1,096,850 $ 809,657 $ 3,539,203 $ 1,959,556
v3.21.2
Condensed Consolidated Statements of Shareholders Equity - USD ($)
Common stock
Treasury stock
Additional paid-in capital
Retained earnings
Total
Balance at Mar. 31, 2020 $ 590,833 $ (87,183,865) $ 866,809,371 $ 196,835,859 $ 977,052,198
Balance (in shares) at Mar. 31, 2020 59,083,290        
Increase (Decrease) in Shareholders' Equity          
Net income for the period       12,168,005 12,168,005
Restricted share award issuances $ 3,516   (3,516)    
Restricted share award issuances (in shares) 351,629        
Stock-based compensation     1,930,902   1,930,902
Purchase of treasury stock   (1,198,214)     (1,198,214)
Balance at Jun. 30, 2020 $ 594,349 (88,382,079) 868,736,757 209,003,864 989,952,891
Balance (in shares) at Jun. 30, 2020 59,434,919        
Balance at Mar. 31, 2020 $ 590,833 (87,183,865) 866,809,371 196,835,859 977,052,198
Balance (in shares) at Mar. 31, 2020 59,083,290        
Increase (Decrease) in Shareholders' Equity          
Net income for the period         12,705,955
Balance at Sep. 30, 2020 $ 594,500 (89,688,467) 869,143,327 209,541,814 989,591,174
Balance (in shares) at Sep. 30, 2020 59,450,019        
Balance at Jun. 30, 2020 $ 594,349 (88,382,079) 868,736,757 209,003,864 989,952,891
Balance (in shares) at Jun. 30, 2020 59,434,919        
Increase (Decrease) in Shareholders' Equity          
Net income for the period       537,950 537,950
Restricted share award issuances $ 151   (151)    
Restricted share award issuances (in shares) 15,100        
Stock-based compensation     406,721   406,721
Purchase of treasury stock   (1,306,388)     (1,306,388)
Balance at Sep. 30, 2020 $ 594,500 (89,688,467) 869,143,327 209,541,814 989,591,174
Balance (in shares) at Sep. 30, 2020 59,450,019        
Balance at Mar. 31, 2021 $ 510,715 (99,862,114) 756,776,217 289,400,512 946,825,330
Balance (in shares) at Mar. 31, 2021 51,071,409        
Increase (Decrease) in Shareholders' Equity          
Net income for the period       5,869,100 5,869,100
Restricted share award issuances $ 158   (158)    
Restricted share award issuances (in shares) 15,800        
Stock-based compensation     647,124   647,124
Purchase of treasury stock   (14,793,180)     (14,793,180)
Balance at Jun. 30, 2021 $ 510,873 (114,655,294) 757,423,183 295,269,612 938,548,374
Balance (in shares) at Jun. 30, 2021 51,087,209        
Balance at Mar. 31, 2021 $ 510,715 (99,862,114) 756,776,217 289,400,512 946,825,330
Balance (in shares) at Mar. 31, 2021 51,071,409        
Increase (Decrease) in Shareholders' Equity          
Net income for the period         19,970,903
Balance at Sep. 30, 2021 $ 512,757 (121,209,001) 758,711,553 268,933,981 906,949,290
Balance (in shares) at Sep. 30, 2021 51,275,609        
Balance at Jun. 30, 2021 $ 510,873 (114,655,294) 757,423,183 295,269,612 938,548,374
Balance (in shares) at Jun. 30, 2021 51,087,209        
Increase (Decrease) in Shareholders' Equity          
Net income for the period       14,101,803 14,101,803
Restricted share award issuances $ 1,884   (1,884)    
Restricted share award issuances (in shares) 188,400        
Dividend       (40,437,434) (40,437,434)
Stock-based compensation     1,290,254   1,290,254
Purchase of treasury stock   (6,553,707)     (6,553,707)
Balance at Sep. 30, 2021 $ 512,757 $ (121,209,001) $ 758,711,553 $ 268,933,981 $ 906,949,290
Balance (in shares) at Sep. 30, 2021 51,275,609        
v3.21.2
Condensed Consolidated Statements of Cash Flows - USD ($)
6 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities:    
Net income $ 19,970,903 $ 12,705,955
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 33,912,013 34,093,127
Amortization of operating lease right-of-use assets 4,742,924 4,559,804
Amortization of financing costs 1,370,929 3,265,563
Unrealized gain on derivatives (1,148,724) (3,472,880)
Stock-based compensation expense 1,937,378 2,337,623
Gain on disposal of vessel (3,466,210)  
Unrealized foreign currency (gain)/loss, net 166,990 (111,922)
Other non-cash items, net 584,810 (75,418)
Changes in operating assets and liabilities    
Trade receivables, net and accrued revenue (145,009) 549,741
Prepaid expenses and other current assets (2,772,407) (2,575,710)
Due from related parties 26,710,137 11,741,010
Inventories 172,148 (178,843)
Other non-current assets (330,691) 1,325,146
Operating lease liabilities-current and long-term (4,752,052) (4,560,428)
Trade accounts payable (256,884) 774,474
Accrued expenses and other liabilities (292,299) (385,279)
Due to related parties (80,369) (177,387)
Payments for drydocking costs (2,633,424) (3,110,101)
Net cash provided by operating activities 73,690,163 56,704,475
Cash flows from investing activities:    
Payments for vessels under construction and vessel capital expenditures (12,713,099) (7,317,186)
Purchases of investment securities (2,250,681) (230,841)
Proceeds from sale of investment securities 3,742,429  
Proceeds from maturity of short-term investments   15,000,000
Proceeds from disposal of vessel 43,423,787  
Payments to acquire other fixed assets   (11,566)
Net cash provided by investing activities 32,202,436 7,440,407
Cash flows from financing activities:    
Proceeds from long-term debt borrowings   55,378,172
Repayment of long-term debt borrowings (25,910,141) (55,173,254)
Repurchase of common stock (20,868,757) (2,617,805)
Financing costs paid (68,604) (3,695,105)
Dividend paid (40,207,344)  
Net cash used in financing activities (87,054,846) (6,107,992)
Effects of exchange rates on cash and cash equivalents (63,115) 149,179
Net increase in cash, cash equivalents, and restricted cash 18,774,638 58,186,069
Cash, cash equivalents, and restricted cash at the beginning of the period 84,727,199 87,389,127
Cash, cash equivalents, and restricted cash at the end of the period $ 103,501,837 $ 145,575,196
v3.21.2
Basis of Presentation and General Information
6 Months Ended
Sep. 30, 2021
Basis of Presentation and General Information  
Basis of Presentation and General Information

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. As of September 30, 2021, our fleet consists of twenty-two VLGCs, including nineteen fuel-efficient 84,000 cbm ECO-design VLGCs (“ECO-VLGCs”), two 82,000 cbm VLGCs and one time chartered-in VLGC. As of September 30, 2021, twelve of our ECO-VLGCs are equipped with exhaust gas cleaning systems (commonly referred to as “scrubbers”) to reduce sulfur emissions. We provide in-house commercial management services for all of our vessels, including our vessels deployed in the Helios Pool (defined below), which may also receive commercial management services from Phoenix (defined below). Excluding our time chartered-in vessels, we provide in-house technical management services for all of our vessels, including our vessels deployed in the Helios Pool (defined below).

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 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 unaudited interim condensed consolidated financial statements and related notes. The 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, 2021 included in our Annual Report on Form 10-K filed with the SEC on June 2, 2021.

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 September 30, 2021, which are all wholly-owned and are incorporated in the Republic of the Marshall Islands (unless otherwise noted), are listed below.

Vessel Subsidiaries

    

Type of

    

    

    

 

Subsidiary

vessel

Vessel’s name

Built

CBM(1)

 

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(2)

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

Dorian Sakura LPG Transport LLC(3)

VLGC

Hull No. 1755

2023(4)

84,000

Management and Other Non-vessel 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)

Dorian LPG (DK) ApS (incorporated in Denmark)

Dorian LPG Chartering LLC

Dorian LPG FFAS LLC

CMNL LPG Transport LLC

(1)CBM: Cubic meters, a standard measure for LPG tanker capacity
(2)Operated pursuant to a bareboat charter agreement. Refer to Note 8 below for further information.
(3)Upon delivery, the applicable vessel will be operated pursuant to a bareboat charter agreement. Refer to note 15 below for further information.
(4)The applicable vessel is expected to be delivered in calendar year 2023.

COVID-19

Since the beginning of calendar year 2020, the outbreak of the COVID-19 pandemic has negatively affected economic conditions, the supply chain, the labor market, the demand for certain shipped goods regionally as well as globally and may otherwise impact our operations and the operations of our customers and suppliers. The COVID-19 pandemic resulted in numerous actions taken by governments and governmental agencies in an attempt to mitigate the spread of the virus, including travel bans, quarantines, and other emergency public health measures, and a number of countries implemented lockdown measures. These measures resulted in a significant reduction in global economic activity and extreme volatility in the global financial markets. If the COVID-19 pandemic continues on a prolonged basis or becomes more severe, the adverse impact on the global economy and the shipping industry may deteriorate and our operations and cash flows may be negatively impacted. The extent of COVID-19’s impact on our financial and operational results, which could be material, will depend on the length of time that the pandemic continues and whether subsequent waves of the infection happen, including as a result of the Delta variant of COVID-19, vaccination rates among the population, the effectiveness of COVID-19 vaccines, and the response by governmental bodies and regulators.

Uncertainties regarding the economic impact of the COVID-19 pandemic are likely to result in sustained market turmoil, which could also negatively impact our business, financial condition and cash flows. Over the course of the pandemic, governments have approved large stimulus packages to mitigate the effects of the sudden decline in economic activity caused by the pandemic; however, we cannot predict the extent to which these measures will be sufficient to restore or sustain the business and financial condition of companies in the shipping industry. These measures, though contemplated to be temporary in nature, may continue and increase as countries attempt to contain the outbreak or any reoccurrences thereof. At this stage, it is difficult to determine the full impact of COVID-19 on our business. We note that we have experienced increases in crew wages and related costs, particularly in crew travel and medical costs, as a result of COVID-19.

v3.21.2
Significant Accounting Policies
6 Months Ended
Sep. 30, 2021
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 those applied in the preparation of our consolidated audited financial statements for the year ended March 31, 2021 (refer to Note 2 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2021).

Accounting Pronouncements Not Yet Adopted

 

In March 2020, the Financial Accounting Standards Board issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”).” ASU 2020-04 provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. This ASU is effective for adoption at any time between March 12, 2020 and December 31, 2022. We are currently evaluating the impact of this adoption on our consolidated financial statements and related disclosures.

v3.21.2
Transactions with Related Parties
6 Months Ended
Sep. 30, 2021
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 less than $0.1 million for both the three months ended September 30, 2021 and 2020 and $0.1 million for both the six months ended September 30, 2021 and 2020.

As of September 30, 2021, $1.0 million was due from DHSA and included in “Due from related parties” in the unaudited interim condensed consolidated balance sheets. As of March 31, 2021, $1.0 million was due from DHSA and included in “Due from related parties” in the audited consolidated balance sheets.

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 September 30, 2021, the Helios Pool operated twenty-five VLGCs, including twenty vessels from our fleet (including one vessel time chartered-in from an unrelated party), three Phoenix vessels, and two from other participants.

As of September 30, 2021, we had net receivables from the Helios Pool of $50.7 million, including $22.0 million of working capital contributed for the operation of our vessels in the pool (of which $1.1 million was classified as current). As of March 31, 2021, we had net receivables from the Helios Pool of $78.1 million (net of an amount due to Helios Pool of $0.1 million which is reflected under “Due to related Parties”), including $24.2 million of working capital contributed for the operation of our vessels in the pool (of which $1.1 million was classified as current). Our maximum exposure to losses from the pool as of September 30, 2021 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 and were $0.5 million and $0.6 million for the three months ended September 30, 2021, and 2020, respectively, and $1.1 million and $1.0 million for the six months ended September 30, 2021, and 2020, 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 $1.1 million and $0.8 million for the three months ended September 30, 2021, and 2020, respectively, and $1.5 million and $2.0 million for the six months ended September 30, 2021, and 2020, respectively, and are included in “Other revenues, net” in the unaudited interim condensed consolidated statements of operations.

Through our vessel owning subsidiaries, we have chartered vessels to the Helios Pool during the six months ended September 30, 2021 and 2020. 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 as variable rate time charter hire for the relevant vessel to participants based on pool points (vessel attributes such as cargo carrying capacity, scrubber-equipped, fuel consumption, and speed are taken into consideration) and number of days the vessel participated in the pool in the period. Net pool revenues, less any amounts required for working capital of the Helios Pool, are distributed, to the extent they have been collected from third-party customers of the Helios Pool. 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 12.

v3.21.2
Deferred Charges, Net
6 Months Ended
Sep. 30, 2021
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, 2021

$

10,158,202

Additions

1,942,982

Disposals

(74,561)

Amortization

(1,368,424)

Balance, September 30, 2021

 

$

10,658,199

v3.21.2
Vessels, Net
6 Months Ended
Sep. 30, 2021
Vessels, Net  
Vessels, Net

5. Vessels, Net

    

    

Accumulated

    

 

Cost

depreciation

Net book Value

 

Balance, April 1, 2021

$

1,762,657,830

 

$

(385,629,575)

 

$

1,377,028,255

Other additions

5,437,162

5,437,162

Disposals

(62,311,861)

23,410,912

(38,900,949)

Depreciation

(32,500,487)

(32,500,487)

Balance, September 30, 2021

 

$

1,705,783,131

 

$

(394,719,150)

 

$

1,311,063,981

Additions to vessels, net mainly consisted of scrubber purchase and installation costs and other capital improvements for certain of our VLGCs during the six months ended September 30, 2021. Our vessels, with a total carrying value of $1,311.1 million and $1,337.4 million as of September 30, 2021 and March 31, 2021, respectively, are first-priority mortgaged as collateral for our long-term debt (refer to Note 8 below). No impairment loss was recorded for the periods presented.

During the six months ended September 30, 2021, we entered into a memorandum of agreement to sell our 2006-built VLGC Captain Markos NL and completed the sale of the vessel in September 2021. We recognized a gain of $3.5 million during the six months ended September 30, 2021.

v3.21.2
Vessels Under Construction
6 Months Ended
Sep. 30, 2021
Vessels Under Construction.  
Vessels Under Construction

6. Vessel Under Construction

As further described in Note 15, we have entered into a thirteen-year bareboat charter agreement for a newbuilding dual-fuel VLGC that is expected to be delivered from Kawasaki Heavy Industries in March 2023. The analysis and movement of vessels under construction is presented in the table below:

Balance, April 1, 2021

    

$

 

Installment payments

8,000,000

Other capitalized expenditures

59,748

Balance, September 30, 2021

 

$

8,059,748

v3.21.2
Long-term Debt
6 Months Ended
Sep. 30, 2021
Long-term Debt  
Long-term Debt

7. Long-term Debt

2015 AR 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, 2021 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 Facility”), and the amendment and restatement of the 2015 Facility (the “2015 AR Facility”) on April 29, 2020.

We were in compliance with all financial covenants as of September 30, 2021.

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, 2021 for information on the refinancing of our 2014-built VLGC, the Corsair, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corsair Japanese Financing”).

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, 2021 for information on the refinancing of our 2015-built VLGC, the Concorde, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Concorde Japanese Financing”).

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, 2021 for information on the refinancing of our 2015-built VLGC, the Corvette, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corvette Japanese Financing”).

CMNL/CJNP 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, 2021 for information on the refinancing our 2007-built VLGC, the Captain John NP, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CMNL/CJNP Japanese Financing”). On August 25, 2021, we exercised our repurchase option under the CMNL/CJNP Japanese Financing by providing a three-month notice to the owners of Captain John NP of our intent to repurchase the vessel for approximately $15.8 million in cash and application of the deposit amount of $25.2 million, which had been retained by the buyer in connection with the CMNL/CJNP Japanese Financing, towards the repurchase of the vessel. We have reclassified $14.7 million from long-term debt to current portion of long-term debt as the obligation will be settled in December 2021.

CNML 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, 2021 for information on the refinancing our 2008-built VLGC, the Captain Nicholas ML, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CNML Japanese Financing”). Refer to Note 16 below for information regarding our election to exercise our repurchase option under the CNML Japanese Financing.

Cresques 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, 2021 for information on the refinancing our 2015-built VLGC, the Cresques, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Cresques Japanese Financing”).

Debt Obligations

The table below presents our debt obligations:

    

September 30, 2021

    

March 31, 2021

 

2015 AR Facility

Commercial Financing

$

154,905,698

$

155,205,698

KEXIM Direct Financing

82,387,938

89,474,512

KEXIM Guaranteed

86,986,559

93,997,081

K-sure Insured

42,774,119

46,333,895

Total 2015 AR Facility

$

367,054,314

$

385,011,186

Japanese Financings

Corsair Japanese Financing

$

39,270,834

$

40,895,833

Concorde Japanese Financing

43,884,615

45,500,000

Corvette Japanese Financing

44,423,077

46,038,462

CMNL/CJNP Japanese Financing

16,022,024

16,706,845

CNML Japanese Financing

18,152,976

18,855,655

Cresques Japanese Financing

47,370,000

49,080,000

Total Japanese Financings

$

209,123,526

$

217,076,795

Total debt obligations

$

576,177,840

$

602,087,981

Less: deferred financing fees

9,313,611

10,615,937

Debt obligations—net of deferred financing fees

$

566,864,229

$

591,472,044

Presented as follows:

Current portion of long-term debt

 

$

66,472,664

$

51,820,283

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

 

500,391,565

539,651,761

Total

 

$

566,864,229

$

591,472,044

Deferred Financing Fees

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

    

Financing

costs

Balance, April 1, 2021

$

10,615,937

Additions

68,603

Amortization

(1,370,929)

Balance, September 30, 2021

 

$

9,313,611

v3.21.2
Leases
6 Months Ended
Sep. 30, 2021
Leases  
Leases

8. Leases

Time charter-in contracts

During the six months ended September 30, 2021, we time chartered-in a VLGC with a duration of 12 months with no option periods. Therefore, this operating lease was excluded from operating lease right-of-use asset and lease liability recognition on our consolidated balance sheets. During the six months ended September 30, 2021, no additional vessels were delivered under time chartered-in arrangements. As of September 30, 2021, right-of-use assets and lease liabilities of $12.5 million were recognized on our balance sheets related to one VLGC that we had previously time chartered-in for a period of greater than 12 months. Our time chartered-in VLGCs were deployed in the Helios Pool and earned net pool revenues of $2.7 million and $4.6 million for the three months ended September 30, 2021 and 2020, respectively, and $6.9 million and $11.5 million for the six months ended September 30, 2021 and 2020, respectively.

Charter hire expenses for the VLGCs time chartered in were as follows:

Three months ended

Six months ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Charter hire expenses

$

2,403,968

$

4,518,850

$

5,912,038

$

9,234,448

Office leases

We currently have operating leases for our offices in Stamford, Connecticut, USA; London, United Kingdom; Copenhagen, Denmark; and Athens, Greece, which we determined to be operating leases and record the lease expense as part of general and administrative expenses in our consolidated statements of operations. During the six months ended September 30, 2021, we did not enter into any new office lease contracts.

Operating lease rent expense related to our office leases was as follows:

Three months ended

Six months ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Operating lease rent expense

$

164,334

$

143,608

$

316,010

$

261,867

For our office leases and time charter-in arrangement, the discount rate used ranged from 3.82% to 5.53%. The weighted average discount rate used to calculate the lease liability was 3.88%. The weighted average remaining lease term of our office leases and time chartered-in vessel as of September 30, 2021 is 15.9 months.

Our operating lease right-of-use asset and lease liabilities as of September 30, 2021 were as follows:

Description

Location on Balance Sheet

September 30, 2021

Assets:

Office leases

Operating lease right-of-use assets

$

415,802

Time charter-in VLGCs

Operating lease right-of-use assets

$

12,512,980

Liabilities:

Current

Office Leases

Current portion of long-term operating leases

$

341,055

Time charter-in VLGCs

Current portion of long-term operating leases

$

9,325,942

Long-term

Office Leases

Long-term operating leases

$

65,819

Time charter-in VLGCs

Long-term operating leases

$

3,187,038

Maturities of operating lease liabilities as of September 30, 2021 were as follows:

Less than one year

$

9,996,432

One to three years

3,278,560

Total undiscounted lease payments

13,274,992

Less: imputed interest

(355,138)

Carrying value of operating lease liabilities

$

12,919,854

v3.21.2
Dividends
6 Months Ended
Sep. 30, 2021
Dividends.  
Dividends

9. Dividends

On July 30, 2021, we announced that our Board of Directors declared a cash dividend of $1.00 per share of the Company’s common stock to all shareholders of record as of the close of business on August 9, 2021, totaling $40.4 million. We paid $40.2 million on September 8, 2021 and the remaining $0.2 million is deferred until certain shares of restricted stock vest.

This was an irregular dividend. Future declarations of dividends are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, its business prospects and other factors that the Company’s Board of Directors may deem relevant.

v3.21.2
Stock Repurchase Program
6 Months Ended
Sep. 30, 2021
Stock Repurchase Program  
Stock Repurchase Program

10. Stock Repurchase Program

On August 5, 2019, our Board of Directors authorized the repurchase of up to $50 million of our common shares through the period ended December 31, 2020 (the “Common Share Repurchase Program”). On February 3, 2020, our Board of Directors authorized an increase to our Common Share Repurchase Program to repurchase up to an additional $50 million of our common shares. On December 29, 2020, our Board of Directors authorized an extension of and an increase to the remaining authorization of $41.4 million under our Common Share Repurchase Program, which was set to expire on December 31, 2020. Following this Board action, we are now authorized to repurchase up to $50.0 million of our common shares from December 29, 2020 through December 31, 2021. As of September 30, 2021, our total purchases under this authority totaled 7.0 million of our common shares for an aggregate consideration of $81.0 million. Following the increase and extension of the program, we currently have $27.5 million of available share repurchase authority remaining. Purchases may be made at our discretion in the form of open market repurchase programs, privately negotiated transactions, accelerated share repurchase programs or a combination of these methods. The actual amount and timing of share repurchases are subject to capital availability, our determination that share repurchases are in the best interest of our shareholders, and market conditions. We are not obligated to make any common share repurchases under the Common Share Repurchase Program.

v3.21.2
Stock-Based Compensation Plans
6 Months Ended
Sep. 30, 2021
Stock-Based Compensation Plans  
Stock-Based Compensation Plans

11. Stock-Based Compensation Plans

Our stock-based compensation expense is included within general and administrative expenses in the unaudited interim condensed consolidated statements of operations and was $1.3 million and $0.4 million for the three months ended September 30, 2021 and 2020, respectively, and $1.9 million and $2.3 million for the six months ended September 30, 2021 and 2020 respectively. Unrecognized compensation cost was $2.8 million as of September 30, 2021 and will be recognized over a remaining weighted average life of 1.30 years. For more information on our equity incentive plan, refer to Note 12 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2021.

In August 2021, we granted an aggregate of 180,900 shares of restricted stock vesting ratably on the grant date and on the first, second, and third anniversary of that date and 36,700 restricted stock units to certain of our officers and employees vesting ratably on the first, second, and third anniversaries of the grant date. The final tranche of restricted stock and restricted stock units granted to our named executive officers shall vest when, and only if, the volume weighted average price of our common shares over any consecutive 15-day period prior to the final business day of the tenth fiscal quarter following the grant date equals or exceeds, 95% of the book value of one of our shares. The shares of restricted

stock and restricted stock units were valued at their grant date fair market value and are expensed on a straight-line basis over the respective vesting periods.

A summary of the activity of restricted shares and units awarded under our equity incentive plan as of September 30, 2021 and changes during the six months ended September 30, 2021, is as follows:

    

    

Weighted-Average

 

Grant-Date

Incentive Share/Unit Awards

Number of Shares/Units

Fair Value

Unvested as of April 1, 2021

358,171

$

8.23

Granted

217,600

13.10

Vested

(239,581)

9.38

Forfeited

(4,100)

10.24

Unvested as of September 30, 2021

332,090

$

10.56

v3.21.2
Revenues
6 Months Ended
Sep. 30, 2021
Revenues.  
Revenues

12. Revenues

Revenues comprise the following:

    

Three months ended

    

Six months ended

 

September 30, 2021

    

September 30, 2020

September 30, 2021

    

September 30, 2020

 

Net pool revenues—related party

$

56,721,405

$

49,723,556

$

111,883,651

$

116,652,977

Time charter revenues

5,268,603

4,177,064

10,614,742

9,263,068

Other revenues, net

1,096,850

 

809,657

3,539,203

 

1,959,556

Total revenues

$

63,086,858

 

$

54,710,277

$

126,037,596

 

$

127,875,601

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, 2021.

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

v3.21.2
Financial Instruments and Fair Value Disclosures
6 Months Ended
Sep. 30, 2021
Financial Instruments and Fair Value Disclosures  
Financial Instruments and Fair Value Disclosures

13.  Financial Instruments and Fair Value Disclosures

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

(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 the London Interbank Offered Rate (“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 AR Facility. Refer to Note 19 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2021 for information on our interest rate swap agreements related to the 2015 AR 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. In June 2021, our interest rate swap with the ABN AMRO Capital USA LLC was novated to Citibank N.A. with a decrease in the fixed rate from 1.4675% to 1.2370%.

Additionally, we have previously taken positions in forward freight agreements (“FFAs”) as economic hedges to reduce the risk related to vessels trading in the spot market, including vessels operating in the Helios Pool, and to take advantage of fluctuations in spot market rates. Customary requirements for trading FFAs include the maintenance of initial and variation margins based on expected volatility, open position and mark-to-market of the contracts. FFAs are recorded as assets/liabilities until they are settled. Changes in fair value prior to settlement are recorded in unrealized gain/(loss) on derivatives. Upon settlement, if the contracted charter rate is less than the average of the rates for the specified route and time period, as reported by an identified index, the seller of the FFA is required to pay the buyer the settlement sum, being an amount equal to the difference between the contracted rate and the settlement rate, multiplied by the number of days in the specified period covered by the FFA. Conversely, if the contracted rate is greater than the settlement rate, the buyer is required to pay the seller the settlement sum. Settlements of FFAs are recorded in realized gain/(loss) on derivatives. FFAs are considered Level 2 items in accordance with the fair value hierarchy. We had no outstanding FFAs as of September 30, 2021, but we have taken positions in FFAs in the past and we may do so again in the future.

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:

September 30, 2021

March 31, 2021

Current assets

Current liabilities

Current assets

Current liabilities

Derivatives not designated as hedging instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

Interest rate swap agreements

$

$

487,361

$

$

1,100,529

September 30, 2021

March 31, 2021

 

Other non-current assets

Long-term liabilities

Other non-current assets

Long-term liabilities

 

Derivatives not designated as hedging instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

 

Interest rate swap agreements

$

$

2,919,306

$

$

3,454,862

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

Three months ended

Derivatives not designated as hedging instruments

    

Location of gain/(loss) recognized

    

September 30, 2021

    

September 30, 2020

 

Forward freight agreements—change in fair value

Unrealized gain/(loss) on derivatives

$

$

2,606,347

Interest rate swaps—change in fair value

 

Unrealized gain/(loss) on derivatives

 

714,998

1,362,339

Forward freight agreements—realized gain/(loss)

Realized loss on derivatives

(678,066)

Interest rate swaps—realized gain/(loss)

 

Realized loss on derivatives

 

(914,837)

(1,451,629)

Gain/(loss) on derivatives, net

 

$

(199,839)

$

1,838,991

    

    

Six months ended

 

Derivatives not designated as hedging instruments

    

Location of gain/(loss) recognized

    

September 30, 2021

    

September 30, 2020

 

Forward freight agreements—change in fair value

Unrealized gain/(loss) on derivatives

$

$

2,468,809

Interest rate swaps—change in fair value

 

Unrealized gain/(loss) on derivatives

 

1,148,724

1,004,071

Forward freight agreements—realized gain/(loss)

Realized loss on derivatives

(942,590)

Interest rate swaps—realized gain/(loss)

 

Realized loss on derivatives

 

(1,818,555)

(1,993,334)

Gain/(loss) on derivatives, net

 

$

(669,831)

$

536,956

As of September 30, 2021 and March 31, 2021, no fair value measurements for assets or liabilities under Level

1 or Level 3 were recognized in the consolidated balance sheets with the exception of cash and cash equivalents, restricted cash, and investment securities. We did not have any other assets or liabilities measured at fair value on a non-recurring basis during the three and six months ended September 30, 2021 and 2020.

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

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

Three months ended

    

September 30, 2021

    

September 30, 2020

Net gain/(loss) on investment securities

$

(531,050)

$

37,478

Less: Realized gain/(loss) on investment securities

 

447,255

Unrealized gain/(loss) on investment securities

 

$

(978,305)

$

37,478

Six months ended

    

September 30, 2021

    

September 30, 2020

 

Net gain/(loss) on investment securities

$

828,620

$

37,253

Less: Realized gain/(loss) on investment securities

 

447,255

Unrealized gain/(loss) on investment securities

 

$

381,365

$

37,253

We have long-term bank debt and the Cresques Japanese Financing for which we believe the carrying value approximates their fair value as the loans bear interest at variable interest rates, being LIBOR, which is observable at commonly quoted intervals for the full terms of the loans, and hence are considered as Level 2 items in accordance with the fair value hierarchy. We also have long-term debt related to the Corsair Japanese Financing, Concorde Japanese Financing, Corvette Japanese Financing, CMNL/CJNP 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:

September 30, 2021

March 31, 2021

    

Carrying Value

    

Fair Value

    

Carrying Value

    

Fair Value

Corsair Japanese Financing

$

39,270,834

$

41,748,000

$

40,895,833

$

44,298,064

Concorde Japanese Financing

43,884,615

47,143,867

45,500,000

49,791,680

Corvette Japanese Financing

44,423,077

47,744,482

46,038,462

50,376,434

CMNL/CJNP Japanese Financing

16,022,024

17,277,103

16,706,845

18,792,993

CNML Japanese Financing

$

18,152,976

$

19,593,552

$

18,855,655

$

21,195,305

v3.21.2
Earnings Per Share ("EPS")
6 Months Ended
Sep. 30, 2021
Earnings Per Share ("EPS")  
Earnings Per Share ("EPS")

14. Earnings Per Share (“EPS”)

Basic EPS represents net income attributable to common shareholders divided by the weighted average number of our 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 attributable to common shareholders divided by the weighted average number of our

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

Six months ended

(In U.S. dollars except share data)

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Numerator:

Net income

$

14,101,803

$

537,950

$

19,970,903

$

12,705,955

Denominator:

Basic weighted average number of common shares outstanding

40,011,505

50,711,714

40,475,625

50,632,392

Effect of dilutive restricted stock and restricted stock units

103,437

42,793

163,448

83,785

Diluted weighted average number of common shares outstanding

40,114,942

50,754,507

40,639,073

50,716,177

EPS:

Basic

$

0.35

$

0.01

$

0.49

$

0.25

Diluted

$

0.35

$

0.01

$

0.49

$

0.25

No shares of unvested restricted stock were excluded from the calculation of diluted EPS for the three and six months ended September 30, 2021 and 2020.

v3.21.2
Commitments and Contingencies
6 Months Ended
Sep. 30, 2021
Commitments and Contingencies  
Commitments and Contingencies

15.  Commitments and Contingencies

Commitments under Contracts for Scrubbers Purchases

We had contractual commitments related to scrubbers to reduce sulfur emissions as of:

September 30, 2021

Less than one year

$

400,000

Total

$

400,000

These amounts reflect remaining obligations for scrubbers already installed, as a portion of the commitment is only due subsequent to the commissioning of the scrubber.

Commitments under Contracts for Ballast Water Management Systems Purchases

We had contractual commitments to purchase ballast water management systems as of:

September 30, 2021

Less than one year

$

626,890

One to three years

57,620

Total

$

684,510

Commitments under Bareboat Charter Header Agreement

On March 31, 2021, we entered into a thirteen-year bareboat charter agreement for a newbuilding dual-fuel VLGC that is expected to be delivered from Kawasaki Heavy Industries in March 2023. The structure of the financing of the newbuilding is analogous to that of our Japanese Financings in which a third-party will purchase the vessel and from whom we will bareboat charter the vessel. As part of the agreement, we control the building of the vessel and the use of the vessel after it is delivered. The vessel will be built to our specifications; we will supervise the building of the vessel to meet these specifications; and we will technically and commercially manage the vessel after its delivery. Under the agreement, we had commitments of $24.0 million of predelivery costs as well as the cost of additional features to meet our specifications and supervision costs for an aggregate total of approximately $25.0 million. As of September 30, 2021, we had approximately $17.0 million of commitments under the agreement outstanding that we expect to settle with installment payments totaling $8.0 million in the 12 months following September 30, 2021 and approximately $9.0 million during the year ended March 31, 2023. As of September 30, 2021, construction of the vessel has not commenced.

Operating Leases

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

September 30, 2021

Less than one year

$

295,944

Total

$

295,944

Time Charter-in

During the six months ended September 30, 2021, we time chartered-in three newbuilding dual-fuel Panamax LPG vessels with purchase options that are scheduled to be delivered in the second and third calendar quarters of 2023 for a period of seven years each and also time chartered-in a VLGC for one year that was delivered to us in October 2021. We had the following time charter-in commitments relating to VLGCs:

September 30, 2021

Less than one year

$

20,833,000

One to three years

55,692,000

Three to five years

64,080,000

Thereafter

107,720,000

Total

$

248,325,000

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:

September 30, 2021

Less than one year

$

14,492,500

One to three years

815,000

Total

$

15,307,500

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 other than that described below, which is reasonably possible and should be disclosed or probable and for which a provision should be established in the unaudited interim condensed consolidated financial statements.

In January 2021, subsequent to the delivery of one of our VLGCs on time charter, a dispute arose relating to the vessel’s readiness to lift a cargo scheduled by the charterer. The facts of the claim are currently in dispute. We currently have a contingent liability of $4.0 million included in accrued liabilities on our unaudited interim condensed consolidated balance sheets as of September 30, 2021.