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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2019	Mar. 09, 2020	Jun. 30, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	001-33831
Entity Registrant Name	EAGLE BULK SHIPPING INC.
Entity Incorporation, State or Country Code	1T
Entity Tax Identification Number	98-0453513
Entity Address, Address Line One	300 First Stamford Place
Entity Address, Address Line Two	5th Floor
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	276–8100
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	EGLE
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 157,456,718
Entity Common Stock, Shares Outstanding		76,720,822
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement for its 2020 annual meeting of shareholders, which will be filed with the Securities and Exchange Commission within 120 days of December 31, 2019, are incorporated by reference into Part III of this Annual Report on Form 10-K for the registrant's fiscal year ended December 31, 2019.
Entity Central Index Key	0001322439
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 53,583,898	$ 67,209,753
Restricted cash - current	5,471,470	0
Accounts receivable, net of a reserve of $2,472,345 and $2,073,616, respectively	19,982,871	19,785,582
Prepaid expenses	4,631,416	4,635,879
Inventories	15,824,278	16,137,785
Vessels held for sale	0	8,458,444
Other current assets	1,039,430	2,246,740
Total current assets	100,533,363	118,474,183
Noncurrent assets:
Vessels and vessel improvements, at cost, net of accumulated depreciation of $153,029,544 and $124,907,998, respectively	835,959,084	682,944,936
Advance for vessel purchase	0	2,040,000
Operating lease right-of-use assets	20,410,037
Other fixed assets, net of accumulated depreciation of $832,541 and $547,452, respectively	740,654	692,803
Restricted cash - noncurrent	74,917	10,953,885
Deferred drydock costs, net	17,495,270	12,186,356
Deferred financing costs - Super Senior Facility	166,111	285,342
Advances for scrubbers and ballast water systems and other assets	26,707,700	18,631,655
Total noncurrent assets	901,553,773	727,734,977
Total assets	1,002,087,136	846,209,160
Current liabilities:
Accounts payable	13,483,397	14,161,169
Accrued interest	5,321,089	1,735,631
Other accrued liabilities	28,996,836	10,064,017
Fair value of derivatives	756,229	929,313
Current portion of operating lease liabilities	13,255,978
Unearned charter hire revenue	4,692,259	6,926,839
Current portion of long-term debt	35,709,394	29,176,230
Total current liabilities	102,215,182	62,993,199
Noncurrent liabilities:
Total debt	410,067,224	301,583,347
Operating lease liabilities	8,301,793
Other liabilities	0	208,651
Fair value below contract value of time charters acquired	0	1,818,114
Total noncurrent liabilities	418,369,017	303,610,112
Total liabilities	520,584,199	366,603,311
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued as of December 31, 2019 and 2018	0	0
Common stock, $.01 par value, 700,000,000 shares authorized, 71,502,206 and 71,055,400 shares issued and outstanding as of December 31, 2019 and 2018, respectively	715,022	710,555
Additional paid-in capital	917,862,269	894,272,533
Accumulated deficit	(437,074,354)	(415,377,239)
Total stockholders' equity	481,502,937	479,605,849
Total liabilities and stockholders' equity	1,002,087,136	846,209,160
Norwegian Bond Debt
Noncurrent liabilities:
Total debt	175,867,310	182,469,155
New First Lien Facility
Noncurrent liabilities:
Total debt	0	48,189,307
New Ultraco Debt Facility
Noncurrent liabilities:
Total debt	141,396,770	0
Original Ultraco Debt Facility
Noncurrent liabilities:
Total debt	0	70,924,885
Convertible Bond Debt
Noncurrent liabilities:
Total debt	$ 92,803,144	$ 0

Consolidated Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, reserve	$ 2,472,345	$ 2,073,616
Accumulated depreciation, vessels	153,029,544	124,907,998
Accumulated amortization, other fixed assets	$ 832,541	$ 547,452
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	25,000,000	25,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	700,000,000	700,000,000
Common stock, issued (in shares)	71,502,206	71,055,400
Common stock, outstanding (in shares)	71,502,206	71,055,400

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenues, net	$ 292,377,638	$ 310,094,258	$ 236,784,625
Voyage expenses	87,701,407	79,566,452	62,351,252
Vessel expenses	82,342,123	81,336,260	78,607,244
Charter hire expenses	42,168,642	38,045,778	31,283,956
Depreciation and amortization	40,545,904	37,717,462	33,690,686
General and administrative expenses	35,041,996	36,156,660	33,126,310
Other operating expense	1,125,000	0	0
Gain on sale of vessels	(5,978,566)	(335,160)	(2,134,767)
Total operating expenses, net	282,946,506	272,487,452	236,924,681
Operating income/(loss)	9,431,132	37,606,806	(140,056)
Interest expense	30,577,489	25,743,531	29,376,994
Interest expense	(1,867,326)	(585,168)	(651,069)
Other expense/(income)	149,632	(126,241)	(37,905)
Loss on debt extinguishment	2,268,452	0	14,968,609
Total other expense, net	31,128,247	25,032,122	43,656,629
Net (loss)/income	$ (21,697,115)	$ 12,574,684	$ (43,796,685)
Weighted average shares outstanding:
Basic (in shares)	71,365,618	70,665,212	69,182,302
Diluted (in shares)	71,365,618	71,802,173	69,182,302
Per share amounts:
Basic net (loss)/income (in dollars per share)	$ (0.30)	$ 0.18	$ (0.63)
Diluted net (loss)/income (in dollars per share)	$ (0.30)	$ 0.18	$ (0.63)

Consolidated Statements of Comprehensive (Loss)/Income - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net (loss)/income	$ (21,697,115)	$ 12,574,684	$ (43,796,685)
Total other comprehensive (loss)/income	0	0	0
Comprehensive (loss)/income	$ (21,697,115)	$ 12,574,684	$ (43,796,685)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Total	Common Stock	Additional paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2016		48,106,827
Beginning balance at Dec. 31, 2016	$ 400,482,639	$ 481,069	$ 783,369,698	$ (383,368,128)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss)/income	(43,796,685)			(43,796,685)
Issuance of shares for private placement, net of issuance costs (in shares)		22,222,223
Issuance of shares for private placement, net of issuance costs	96,030,003	$ 222,222	95,807,781
Issuance of shares due to vesting restricted shares (in shares)		65,257
Issuance of shares due to vesting of restricted shares		$ 653	(653)
Cash used to settle net share equity awards	(289,539)		(289,539)
Stock-based compensation	8,738,615		8,738,615
Ending balance (in shares) at Dec. 31, 2017		70,394,307
Ending balance at Dec. 31, 2017	461,165,033	$ 703,944	887,625,902	(427,164,813)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss)/income	12,574,684			12,574,684
Issuance of shares due to vesting restricted shares (in shares)		661,093
Issuance of shares due to vesting of restricted shares	4,866	$ 6,611	(1,745)
Cash used to settle net share equity awards	(2,559,104)		(2,559,104)
Stock-based compensation	9,207,480		9,207,480
Ending balance (in shares) at Dec. 31, 2018		71,055,400
Ending balance at Dec. 31, 2018	479,605,849	$ 710,555	894,272,533	(415,377,239)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss)/income	(21,697,115)			(21,697,115)
Proceeds received from the Share Lending Agreement	35,829		35,829
Issuance of shares due to vesting restricted shares (in shares)		446,806
Issuance of shares due to vesting of restricted shares		$ 4,467	(4,467)
Equity component of Convertible Bond Debt, net of equity issuance costs	20,175,803		20,175,803
Cash used to settle net share equity awards	(1,443,753)		(1,443,753)
Stock-based compensation	4,826,324		4,826,324
Ending balance (in shares) at Dec. 31, 2019		71,502,206
Ending balance at Dec. 31, 2019	$ 481,502,937	$ 715,022	$ 917,862,269	$ (437,074,354)

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net (loss)/income	$ (21,697,115)	$ 12,574,684	$ (43,796,685)
Adjustments to reconcile net (loss)/income to net cash provided by/(used in) operating activities:
Depreciation	34,318,053	32,364,359	29,354,017
Amortization of deferred drydocking costs	6,227,851	5,353,102	4,336,669
Amortization of operating lease right-of-use asset	12,764,596
Amortization of debt discount and debt issuance costs	3,783,939	1,913,651	5,927,984
Loss on debt extinguishment	2,268,452	0	14,968,609
Amortization of fair value below contract value of time charter acquired	0	(681,898)	(716,783)
Payment-in-kind interest on debt	0	0	10,098,401
Gain on sale of vessels	(5,978,566)	(335,160)	(2,134,767)
Net unrealized loss/(gain) on fair value of derivatives	(75,537)	315,748	(55,675)
Fees paid on time charter termination	0	0	(1,500,000)
Stock-based compensation expense	4,826,324	9,207,480	8,738,615
Drydocking expenditures	(11,903,474)	(8,323,191)	(2,579,111)
Changes in operating assets and liabilities:
Accounts payable	3,199,113	993,557	335,688
Accounts receivable	(6,902)	(3,465,025)	(12,156,832)
Accrued interest	3,585,458	(54,684)	1,761,443
Inventories	313,507	(2,024,706)	(3,236,366)
Operating lease liabilities short and long-term	(13,475,534)	0	0
Other current and non-current assets	1,503,904	(207,234)	(331,707)
Other accrued liabilities and other non-current liabilities	4,261,774	(1,125,638)	(1,340,366)
Prepaid expenses	4,463	(1,625,113)	83,196
Unearned revenue	(2,234,580)	590,531	(367,359)
Net cash provided by/ (used in) operating activities	21,685,726	45,470,463	(10,037,273)
Cash flows from investing activities:
Purchases of vessels and vessel improvements	(143,477,720)	(41,404,328)	(174,400,746)
Advance for vessel purchase	0	(2,040,000)	(2,201,773)
Purchase of scrubbers and ballast water treatment systems	(58,196,164)	(12,342,317)	0
Proceeds from hull and machinery insurance claims	3,845,967	0	0
Proceeds from redemption of short-term investment	0	4,500,000	(4,500,000)
Proceeds from sale of vessels	29,560,746	20,545,202	26,042,000
Purchase of other fixed assets	(351,434)	(272,067)	(189,120)
Net cash used in investing activities	(168,618,605)	(31,013,510)	(155,249,639)
Cash flows from financing activities:
Proceeds from common stock placement, net of issuance costs	0	0	96,030,003
Financing costs paid to lenders	(3,533,770)	0	(2,025,514)
Other financing costs	(1,655,353)	(2,465,037)	(3,886,104)
Cash received from exercise of stock options	0	4,865	0
Cash used to settle net share equity awards	(1,443,753)	(2,559,104)	(289,539)
Net cash provided by financing activities	127,899,526	7,380,724	145,021,846
Net (decrease)/increase in cash, cash equivalents and restricted cash	(19,033,353)	21,837,677	(20,265,066)
Cash, cash equivalents and restricted cash at beginning of year	78,163,638	56,325,961	76,591,027
Cash, cash equivalents and restricted cash at end of year	59,130,285	78,163,638	56,325,961
Supplemental cash flow information:
Accruals for scrubbers and ballast water treatment systems in Accounts payable and Other accrued liabilities	16,380,168	5,801,867	0
Cash paid during the period for interest excluding payment of accumulated payment-in-kind interest on the Second Lien Facility paid on December 8, 2017 of $17.7 million.	23,208,093	23,884,565	11,589,192
New First Lien Facility
Cash flows from financing activities:
Proceeds from long term debt	0	0	65,000,000
Repayments of lines of credit	(5,000,000)	(5,000,000)	0
New First Lien Facility \| Revolver Loan
Cash flows from financing activities:
Proceeds from long term debt	5,000,000	0	0
New First Lien Facility \| Term Loan
Cash flows from financing activities:
Repayments of long-term debt	(60,000,000)	0	0
Convertible Debt Securities
Cash flows from financing activities:
Proceeds from long term debt	112,482,586	0	0
New Ultraco Debt Facility
Cash flows from financing activities:
Proceeds from long term debt	187,760,000	0	0
Repayments of long-term debt	(15,146,013)	0	0
Norwegian Bond Debt
Cash flows from financing activities:
Proceeds from long term debt	0	0	198,092,000
Repayments of long-term debt	(8,000,000)	(4,000,000)	0
Original Ultraco Debt Facility
Cash flows from financing activities:
Proceeds from long term debt	0	21,400,000	61,200,000
Repayments of long-term debt	(82,600,000)	0	0
Share Lending Agreement
Cash flows from financing activities:
Proceeds from long term debt	35,829	0	0
First Lien Facility
Cash flows from financing activities:
Repayments of lines of credit	0	0	(184,099,000)
First Lien Facility \| Revolver Loan
Cash flows from financing activities:
Repayments of lines of credit	0	0	(25,000,000)
Second Lien Facility
Adjustments to reconcile net (loss)/income to net cash provided by/(used in) operating activities:
Payment-in-kind interest on debt	0	0	(17,426,244)
Cash flows from financing activities:
Repayments of lines of credit	$ 0	$ 0	$ (60,000,000)

Consolidated Statements of Cash Flows (Parenthetical) - USD ($)		12 Months Ended
	Dec. 08, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Second Lien Facility
Payment in kind interest on Second Lien Facility	$ 17,700,000	$ 0	$ 0	$ 10,098,401

General Information	12 Months Ended
General Information	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General Information	General Information: The accompanying consolidated financial statements include the accounts of Eagle Bulk Shipping Inc. and its wholly-owned subsidiaries (collectively, the "Company,” “we” or “our” or similar terms). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership, charter and operation of drybulk vessels. The Company's fleet is comprised of Supramax and Ultramax drybulk carriers and the Company operates its business in one business segment. Each of the Company’s vessels serve the same type of customer, have similar operation and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Based on this, the Company has determined that it operates in one reportable segment, which is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels. The Company is a holding company incorporated in 2005, under the laws of the Republic of the Marshall Islands and is the sole owner of all of the outstanding shares of its wholly-owned subsidiaries formed in the Republic of the Marshall Islands. The primary activity of each of the subsidiaries is the ownership of a vessel. The operations of the vessels are managed by a directly wholly-owned subsidiary of the Company, Eagle Bulk Management LLC, a Republic of the Marshall Islands limited liability company. As of December 31, 2019, the Company owned and operated a modern fleet of 50 ocean-going vessels, including 30 Supramax and 20 Ultramax vessels, with a combined carrying capacity of 2,946,188 deadweight tons ("dwt") and an average age of approximately 8.7 years. Additionally, the Company chartered-in three Ultramax vessels for periods ranging between one to two years. The Company charters-in third-party vessels on a short to medium term basis. For the years ended December 31, 2019, 2018 and 2017, the Company had no charterers which individually accounted for more than 10% of the Company's gross charter revenue.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies:

(a) Principles of Consolidation: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Eagle Bulk Shipping Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions were eliminated upon consolidation.

(b) Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel impairment, vessel valuations, residual value of vessels, the useful lives of vessels, the value of stock-based compensation, fair value of the Convertible Bond Debt (as defined below) and its equity component, fair value of right-of-use asset and lease liability and the fair value of derivatives. Actual results could differ from those estimates.

(c) Cash, Cash Equivalents and Restricted Cash: The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. Restricted Cash, current and noncurrent as of December 31, 2019 and 2018 was $5.5 million and $10.9 million, respectively. Restricted cash balance relates to the proceeds from the sale of vessels, which were restricted pursuant to the terms under the Norwegian Bond Debt. Please see Note 6 Debt to the consolidated financial statements for additional information. Additionally, the Company

also had restricted cash of $0.1 million for collateralizing a letter of credit on our office lease as of December 31, 2019 and 2018.

The following table provides a reconciliation of cash, cash equivalents and restricted cash within the Consolidated Balance Sheets that sum to the total amounts shown in the Consolidated Statements of Cash Flows:


	December 31, 2019		December 31, 2018

Cash and cash equivalents	$	53,583,898	$	67,209,753
Restricted cash - current	5,471,470		—
Restricted cash - noncurrent	74,917		10,953,885
	$	59,130,285	$	78,163,638

(d) Accounts Receivable: Accounts receivable includes receivables from charterers for time and voyage charterers. At each balance sheet date, all potentially uncollectible accounts are assessed for purposes of determining the appropriate provision for doubtful accounts. The Company wrote off $0.9 million and $1.4 million for the years ended December 31, 2019 and 2018, respectively, related to previously reserved amounts in the allowance for doubtful accounts. The Company recorded a provision of $1.3 million and none respectively, for doubtful accounts for the years ended December 31, 2019 and 2018. Additionally, the Company wrote off $3.4 million for the year ended December 31, 2017 which was related to previously reserved amounts in the allowance for doubtful accounts. The Company did not record any material provisions for doubtful accounts for the year ended December 31, 2017.

(e) Insurance Claims: Insurance claims are recorded net of any deductible amounts for insured damages which are recognized when recovery is virtually certain under the related insurance policies and where the Company can make an estimate of the amount to be reimbursed following the insurance claim.

(f) Inventories: Inventories, which consist of bunkers, are stated at cost which is determined on a first-in, first-out method. Lubes and spares are expensed as incurred.

(g) Short-term Investments: The Company considers liquid investments such as certificate of deposits with an original maturity of greater than three months as investments. As of December 31, 2017, the Company had $4.5 million in a certificate of deposit with an original maturity of one year. The certificate of deposit matured in the first quarter of 2018 and is included in cash and cash equivalents as of December 31, 2018.

(h) Vessels and vessel improvements, at cost: Vessels are stated at cost, which consists of the contract price, and other direct costs relating to acquiring and placing the vessels in service. Major vessel improvements such as scrubbers and ballast water systems are capitalized and depreciated over the remaining useful lives of the vessels. Depreciation is calculated on a straight-line basis over the estimated useful lives of the vessels based on the cost of the vessels reduced by the estimated scrap value of the vessels as discussed below.

(i) Vessel useful economic life and Impairment of Long-Lived Assets: The Company estimates the useful life of the Company's vessels to be 25 years from the date of initial delivery from the shipyard to the original owner. The useful lives of the Company's vessels are evaluated to determine if events have occurred which would require modification to their useful lives. In addition, the Company estimates the scrap value of the vessels to be $300 per light weight ton ("lwt").

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When the estimate of undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its

carrying amount, the Company will evaluate the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset as provided by third parties. In this respect, management regularly reviews the carrying amount of the vessels in connection with the estimated recoverable amount for each of the Company's vessels. We did not recognize a vessel impairment charge for the years ended December 31, 2019, 2018 and 2017.

(j) Accounting for Drydocking Costs: The Company follows the deferral method of accounting for drydocking costs whereby actual costs incurred are deferred and are amortized on a straight-line basis over the period through the date the next drydocking is required to become due, generally 30 months if the vessels are 15 years old or more and 60 months for the vessels younger than 15 years. Costs deferred as part of the drydocking include direct costs that are incurred as part of the drydocking to meet regulatory requirements. Certain costs are capitalized during drydocking if they are expenditures that add economic life to the vessel, increase the vessel’s earnings capacity or improve the vessel’s efficiency. Direct costs that are deferred include the shipyard costs, parts, inspection fees, steel, blasting and painting. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. Unamortized drydocking costs of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels’ sale. Unamortized drydocking costs are written off as drydocking expense if the vessels are drydocked before the expiration of the applicable amortization period.

(k) Deferred Financing Costs: Fees incurred for obtaining new loans or refinancing existing ones are deferred and amortized to interest expense over the life of the related debt using the effective interest method. Unamortized deferred financing costs are written off when the related debt is repaid or refinanced and such amounts are expensed in the period the repayment or refinancing is made. Such amounts are classified as a reduction of the long-term debt balance on the consolidated balance sheets. For our Super Senior Revolver Facility, as no amounts have been drawn, deferred financing fees of $0.2 million and $0.3 million have been classified as a noncurrent asset on the Consolidated Balance Sheets as of December 31, 2019 and 2018, respectively.

(l) Other fixed assets: Other fixed assets are stated at cost less accumulated depreciation. Depreciation is based on a straight-line basis over the estimated useful life of the asset. Other fixed assets consist principally of leasehold improvements, computers and software and are depreciated over three years.

(m) Accounting for Revenues and Expenses: Revenues generated from time charters and/or revenues generated from profit sharing arrangements are recognized on a straight-line basis over the term of the respective time charter agreements as service is provided and the profit sharing is fixed and determinable.

Under voyage charters, voyage revenues for cargo transportation are recognized ratably over the estimated relative transit time of each voyage. Voyage revenue is deemed to commence upon the loading of the charterer’s cargo and is deemed to end upon the completion of discharge, 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.

Under voyage charters, voyage expenses include costs such as bunkers, port charges, canal tolls and cargo handling operations, whereas, under time charters, such voyage costs are the responsibility of the Company's customers. Vessel operating costs include crewing, vessel maintenance and vessel insurance. Brokerage commissions under voyage or time charters are included in voyage expenses. All voyage and vessel operating expenses are expensed as incurred on an accrual basis, except for commissions. Commissions are recognized over the related time or voyage charter period since commissions are earned as the Company's revenues are earned. Probable losses on voyages are provided for in full at the time such loss can be estimated.

We adopted Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" ("ASC 606") as of January 1, 2018 utilizing the modified retrospective method of transition. We recorded an

adjustment of approximately $0.8 million to increase our opening accumulated deficit and increase our unearned revenue and other current assets on our Consolidated Balance Sheet on January 1, 2018.

We adopted Accounting Standards Update 2016-02, "Leases", ("ASC 842") on January 1, 2019 which resulted in the recognition of operating lease right-of-use assets and related lease liabilities for operating leases of $30.5 million in Total Assets and Total Liabilities, respectively, on our Consolidated Balance Sheet on January 1, 2019. Additionally, the Company netted $1.8 million, which was previously recorded as fair value on time charters acquired in the Consolidated Balance Sheet as of December 31, 2018 against the Operating lease right-of-use asset upon adoption of ASC 842 on January 1, 2019.

(n) Unearned Charter Hire Revenue: Unearned charter hire revenue represents cash received from charterers prior to the time such amounts are earned. These amounts are recognized as revenue as services are provided in future periods.

(o) Repairs and Maintenance: All repair and maintenance expenses are expensed as incurred and are recorded in Vessel expenses.

(p) Protection and Indemnity Insurance: The Company’s Protection and Indemnity Insurance is subject to additional premiums referred to as "back calls" or "supplemental calls" which are accounted for on an accrual basis and are recorded in Vessel Expenses.

(q) Earnings Per Share: Basic earnings per share is computed by dividing the net income or loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the impact of stock options, warrants and restricted stock under the treasury stock method unless their impact is anti-dilutive. Convertible bonds are included in Diluted earnings per share based on the if-converted method.

(r) Interest Rate Risk Management: The Company is exposed to the impact of interest rate changes for outstanding debt under the New Ultraco Debt Facility. The Company's objective is to manage the impact of interest rate changes on its earnings and cash flows. The Company may use interest rate swaps to manage net exposure to interest rate changes related to its borrowings.

(s) Federal Taxes: The Company is a Republic of the Marshall Islands Corporation. For the years ended December 31, 2019, 2018 and 2017, the Company believes that its operations qualify for Internal Revenue Code Section 883 exemption and therefore are not subject to United States federal taxes on United States source shipping income.

(t) Stock-based compensation: The Company issues stock-based compensation utilizing both stock options and stock grants. Stock-based compensation is measured at the fair value of the award at the date of grant and recognized over the period of vesting on a straight-line basis using the graded vesting method. The grant-date fair value of stock options is estimated using the Black-Scholes option pricing model. Forfeitures are recognized as they occur.

Impact of Recently Adopted Accounting Standards

Leases

On January 1, 2019, the Company adopted ASC 842. ASC 842 revises the accounting for leases. Under the new lease standard, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. The new lease standard will continue to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. The accounting applied by a lessor under the new guidance will be substantially equivalent to current lease accounting guidance.

The following are the type of contracts that fall under ASC 842:

Time charter out contracts

Our shipping revenues are principally generated from time charters and voyage charters. In a time charter contract, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. The charterer has the full discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer, subject always to compliance with applicable sanction laws, and carry only lawful or non-hazardous cargo. In a time charter contract, the Company is responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubes. The charterer bears the voyage related costs such as bunker expenses, port charges and canal tolls during the hire period. The performance obligations in a time charter contract are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. The charterer generally pays the charter hire in advance of the upcoming contract period. The Company determined that all time charter contracts are considered operating leases and therefore fall under the scope of ASC 842 because: (i) the vessel is an identifiable asset; (ii) the Company does not have substantive substitution rights; and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use.

The transition guidance associated with ASC 842 allows for certain practical expedients to the lessors. The Company elected not to separate the lease and non-lease components included in the time charter revenue because the pattern of revenue recognition for the lease and non-lease components (included in the daily hire rate) is the same. The daily hire rate represents the hire rate for a bare boat charter as well as the compensation for expenses incurred running the vessel such as crewing expense, repairs, insurance, maintenance and lubes. Both the lease and non-lease components are earned by passage of time.

The adoption of ASC 842 did not materially impact our accounting for time charter out contracts. The revenue generated from time charter out contracts is recognized on a straight-line basis over the term of the respective time charter agreements, which are recorded as part of revenues, net in our Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017.

Time charter-in contracts

The Company charters in vessels to supplement our own fleet and employs them both on time charters and voyage charters. The time charter-in contracts range in lease terms from 30 days to 2 years. The Company elected the practical expedient of ASC 842 that allows for time charter-in contracts with an initial lease term of less than 12 months to be excluded from the operating lease right-of-use assets and lease liabilities recognized on our Consolidated Balance Sheet as of January 1, 2019. The Company recognized the operating lease right-of-use assets and the corresponding lease liabilities on the Consolidated Balance sheet for time charter-in contracts greater than 12 months on the date of adoption of ASC 842. The Company will continue to recognize the lease payments for all vessel operating leases as charter hire expenses on the consolidated statements of operations on a straight-line basis over the lease term.

Under ASC 842, leases are classified as either finance or operating arrangements, with such classification affecting the pattern and classification of expense recognition in an entity's income statement. For operating leases, ASC 842 requires recognition in an entity’s income statement of a single lease expense, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. Right-of-use assets represent a right to use an underlying asset for the lease term and the related lease liability represents an obligation to make lease payments pursuant to the contractual terms of the lease agreement.

At lease commencement, a lessee must develop a discount rate to calculate the present value of the lease payments so that it can determine lease classification and measure the lease liability. When determining the discount

rate to be used at lease commencement, a lessee must use the rate implicit in the lease unless that rate cannot be readily determined. When the rate implicit in the lease cannot be readily determined, the lessee should use its incremental borrowing rate. The incremental borrowing rate is the rate that reflects the interest a lessee would have to pay to borrow funds on a collateralized basis over a similar term and in a similar economic environment. The Company determined that the time charter-in contracts do not contain an implicit borrowing rate. Therefore, the Company arrived at the incremental borrowing rate by determining the Company's implied credit rating and the yield curve for debt as of January 1, 2019. The Company then interpolated the yield curve to determine the incremental borrowing rate for each lease based on the remaining lease term on the specific lease. Based on the above methodology, the Company's incremental borrowing rates ranged from 5.05% to 6.08% for the five lease contracts for which the Company recorded operating lease right-of-use assets and corresponding lease liabilities.

The Company has time charter-in contracts for three Ultramax vessels which are greater than 12 months as of the date of adoption of ASC 842. A brief description of each of these contracts is below:

(i) The Company entered into an agreement effective April 28, 2017, to charter-in a 61,400 dwt, 2013 built Japanese vessel for approximately four years with options for two additional years. The hire rate for the first four years is $12,800 per day and the hire rate for the first optional year is $13,800 per day and $14,300 per day for the second optional year. The Company has determined that it will not exercise the existing options under this contract and therefore the options are not included in the calculation of the operating lease right-of-use asset. In addition, the Company’s fair value below contract value of time charters acquired of $1.8 million as of December 31, 2018, which related to the unamortized value of a prior charter with the same counterparty that had been recorded at the time of the Company’s emergence from bankruptcy, was offset against the corresponding right of use asset on this lease as of January 1, 2019.

(ii) On May 4, 2018, the Company entered into an agreement to charter-in a 61,425 dwt 2013 built Ultramax vessel for three years with an option for an additional two years. The hire rate for the first three years is $12,700 per day and $13,750 per day for the first year option and $14,750 per day for the second year option. The Company took delivery of the vessel in the third quarter of 2018. The Company has determined that it will not exercise the existing options under this contract and therefore the options are not included in the calculation of the operating lease right-of-use asset.

(iii) On December 9, 2018, the Company entered into an agreement to charter-in a 62,487 dwt 2016 built Ultramax vessel for two years. The hire rate for the vessel until March 2020 is $14,250 per day and $15,250 per day thereafter. The Company took delivery of the vessel in the fourth quarter of 2018. The Company elected not to exercise the existing options under this contract and therefore the options are not included in the calculation of the operating lease right-of-use asset. On December 25, 2019, the Company renegotiated the lease terms for another year at a hire rate of $11,600 per day. The Company accounted for this as a lease modification on December 25, 2019 and increased its lease liability and right-of-use asset on its balance sheet as of December 31, 2019 by $4.5 million.

Office leases

On October 15, 2015, the Company entered into a new commercial lease agreement as a subtenant for office space in Stamford, Connecticut. The lease is effective from January 2016 through June 2023, with an average annual rent of $0.4 million. The lease is secured by a letter of credit backed by cash collateral of $74,917 and is recorded as restricted cash - noncurrent in the accompanying consolidated balance sheets. In November 2018, the Company entered into an office lease agreement in Singapore, which expires in October 2021, with an average annual rent of $0.3 million. The Company determined the two office leases to be operating leases and recorded the lease expense as part of General and administrative expenses in the Consolidated Statement of Operations for the years ended December 31, 2019, 2018 and 2017.

Adoption of ASC 842

The Company adopted ASC 842 on January 1, 2019, which resulted in the recognition of operating lease right-of-use assets of $28.7 million and related lease liabilities for operating leases of $30.5 million in Total Assets and Total Liabilities, respectively, on our Consolidated Balance Sheet on January 1, 2019.

In connection with its adoption of ASC 842, the Company elected the "package of 3" practical expedients permitted under the transition guidance, which exempts the Company from reassessing:

•whether any expired or existing contracts are or contain leases.

•any expired or existing lease classifications.

•initial direct costs for any existing leases.

Additionally, the Company elected, consistent with the practical expedient allowed under the transition guidance of ASC 842 to not separate the lease and non-lease components related to a lease contract and to account for them instead as a single lease component for the purposes of the recognition and measurement requirements of ASC 842.

The Company elected not to use the practical expedient of hindsight in determining the lease term and in assessing the impairment of the Company's operating lease right-of-use assets.

Prior to January 1, 2019, the Company recognized lease expense in accordance with then-existing U.S. GAAP (“prior GAAP”). Because both ASC 842 and prior GAAP generally recognize operating lease expenses on a straight-line basis over the term of the lease arrangement and the Company only has operating lease arrangements, there were no material differences between the timing and amount of lease expenses recognized under the two accounting methodologies for the years ended December 31, 2019, 2018 and 2017.

Lease Disclosures Under ASC 842

The objective of the disclosure requirements under ASC 842 is to enable users of an entity’s financial statements to assess the amount, timing and uncertainty of cash flows arising from lease arrangements. In addition to the qualitative leasing disclosures included above, below are quantitative disclosures that are intended to meet the stated objective of ASC 842.

Operating lease right-of-use assets and lease liabilities as of December 31, 2019 and January 1, 2019 are as follows:


Description	Location in Balance Sheet	December 31, 2019		January 1, 2019 ⁽²⁾
Non current assets:
Chartered-in contracts greater than 12 months ^{(1) (3)}	Operating lease right-of-use assets	$	18,442,965	$	26,144,409
Office leases	Operating lease right-of-use assets	1,967,072		2,560,593
		$	20,410,037	$	28,705,002
Liabilities:
Chartered-in contracts greater than 12 months ⁽³⁾	Current portion of operating lease liabilities	$	12,622,524	$	13,802,149
Office leases	Current portion of operating lease liabilities	633,454		693,203
Lease liabilities - current portion		$	13,255,978	$	14,495,352

Chartered-in contracts greater than 12 months ⁽³⁾	Operating lease liabilities	$	6,974,943	$	14,160,374
Office leases	Operating lease liabilities	1,326,850		1,867,390
Lease liabilities - non current portion		$	8,301,793	$	16,027,764

⁽¹⁾ The Company netted $1.8 million, which was previously recorded as fair value on time charters acquired in the Consolidated Balance Sheet as of December 31, 2018 against the Operating lease right-of-use asset upon adoption of ASC 842 on January 1, 2019.

⁽²⁾ The Operating lease right-of-use asset and Operating lease liabilities represent the present value of lease payments for the remaining term of the lease. The discount rate used ranged from 5.05% to 6.08%. The weighted average discount rate used to calculate the lease liability was 5.55%.

⁽³⁾The Company extended the lease term on an existing chartered-in contract for another year at a different hire rate. The Company accounted for the lease modification using the discount rate of 2.806% and recorded the related right-of-use asset and operating lease liabilities of $4.5 million on its Balance Sheet as of December 31, 2019.

The table below presents the components of the Company’s lease expenses and sub-lease income on a gross basis earned from chartered-in contracts greater than 12 months for the year ended December 31, 2019:

Description

Location in Statement of Operations

For the Year Ended
December 31, 2019

Lease expense for chartered-in contracts less than 12 months

Charter hire expenses

28,805,970

Lease expense for chartered-in contracts greater than 12 months

Charter hire expenses

13,362,672

Total charter hire expenses

42,168,642

Lease expense for office leases

General and administrative expenses

719,698

Sub lease income from chartered-in contracts greater than 12 months *

Revenues, net

10,259,768

* The sub-lease income represents only time charter revenue earned on the chartered-in contracts greater than 12 months. There is additional revenue of $5.6 million earned from voyage charters on the same chartered-in contracts which is recorded in Revenues, net in our Consolidated Statement of Operations for the year ended December 31, 2019. Additionally, there is revenue earned from time charters from chartered-in contracts less than 12 months which is included in Revenues, net in our Consolidated Statements of Operations for the year ended December 31, 2019.

The cash paid for operating leases with terms greater than 12 months is $14.8 million for the year ended December 31, 2019.

The Company did not enter into any operating leases greater than 12 months for the year ended December 31, 2019 except for the lease modification as disclosed herein.

The weighted average remaining lease term on our operating leases greater than 12 months is 20.7 months.

The table below provides the total amount of lease payments on an undiscounted basis on our time chartered-in contracts and office leases greater than 12 months as of December 31, 2019:


Year	Chartered-in contracts greater than 12 months			Office leases			Total Operating leases

Discount rate upon adoption ⁽¹⁾	5.37		%	5.80		%	5.48		%

2020	$	13,284,425		$	733,874		$	14,018,299
2021	6,982,810			700,257			7,683,067
2022	—			483,048			483,048
2023	—			244,878			244,878
	20,267,235			2,162,057			22,429,292

Present value of lease liability	19,597,467			1,960,304			21,557,771

Lease liabilities - short term	12,622,524			633,454			13,255,978
Lease liabilities - long term	6,974,943			1,326,850			8,301,793
Total lease liabilities	19,597,467			1,960,304			21,557,771

Discount based on incremental borrowing rate	$	669,768		$	201,753		$	871,521

⁽¹⁾Discount rate upon adoption does not include the discount rate on the lease modification on December 25, 2019. The discount rate used for calculation of the right-of-use asset and the related lease liability on December 25, 2019 was 2.806%.

The future minimum commitments under the leases for office space as of December 31, 2018 are as follows:


2019	$	714,794
2020	728,212
2021	707,630
2022	483,048
2023	244,878
Total	$	2,878,562

The office rent expense was $767,181 and $666,320, respectively for the years ended December 31, 2018 and 2017, respectively.

Revenue recognition

Voyage charters

In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or "dead" freight. The voyage contract generally has standard payment terms of 95% freight paid within three days after completion of loading. The voyage charter party generally has a "demurrage" or "despatch" clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch resulting in a reduction in revenue. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. The Company determined that its voyage charter contracts consist of a single performance obligation of transporting the cargo within a specified time period. Therefore, the performance obligation is met evenly as the voyage progresses and the revenue is recognized on a straight line basis over the voyage days from the commencement of the loading of cargo to the completion of discharge.

The voyage contracts are considered service contracts which fall under the provisions of ASC 606 because the Company as the shipowner retains the control over the operations of the vessel such as directing the routes taken or the vessel speed. The voyage contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage for the years ended December 31, 2019 and 2018 was $13.1 million and $12.0 million, respectively.

The following table shows the revenues earned from time charters and voyage charters for the years ended December 31, 2019 and 2018:


	For the Years Ended
	December 31, 2019		December 31, 2018

Time charters	$	128,142,708	$	140,006,570
Voyage charters	164,234,930		170,087,688
	$	292,377,638	$	310,094,258

Contract costs

In a voyage charter contract, the Company bears all voyage related costs such as fuel costs, port charges and canal tolls. These costs are considered contract fulfillment costs because the costs are direct costs related to the performance of the contract and are expected to be recovered. The costs incurred during the period prior to

commencement of loading the cargo, primarily bunkers, are deferred as they represent setup costs and recorded as a current asset and are amortized on a straight-line basis as the related performance obligations are satisfied. As of December 31, 2019 and 2018, the Company recognized $0.4 million and $0.8 million, respectively, of deferred costs which represents bunker expenses and charter hire expenses incurred prior to commencement of loading. These costs are recorded in Other current assets on the Consolidated Balance Sheets.

Accounting Standards issued but not yet adopted

The FASB has issued accounting standards that had not yet become effective as of December 31, 2019 and may impact the Company’s consolidated financial statements or related disclosures in future periods. Those standards and their potential impact are discussed below.

Accounting standards effective in 2020

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement ("ASU 2018-13"). ASU 2018-13 is intended to streamline the disclosures requirements on fair value measurements. Disclosures such as the amounts of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the valuation process for Level 3 fair value measurements were removed. Additional disclosures such as disclosure about changes in unrealized gains and losses included in the other comprehensive income for Level 3 fair value measurements, the range and weighted average of significant unobservable inputs used for Level 3 fair value measurements are required to be reported by the public entities. The amendment is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of ASU 2018-13 is currently not expected to have a material impact on the Company's consolidated financial statements.

Financial Instrument Credit Losses — In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses" ("ASU 2016-13"). ASU 2016-13 amends the current financial instrument impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective on January 1, 2020, with early adoption permitted. The adoption of ASU 2016-13 is currently not expected to have a material impact on the Company's consolidated financial statements.

Vessels and vessel improvements

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Vessels and vessel improvements

As of December 31, 2019, the Company’s owned fleet consisted of 50 drybulk vessels.

During the third quarter of 2019, the Company entered into a series of agreements to purchase six Ultramax vessels with two different sellers. The aggregate purchase price including direct expenses of acquisition for the six vessels is $124.3 million. The Company took delivery of all the vessels during the third and fourth quarters of 2019. The Company financed the purchase partially from the proceeds raised from the issuance of the Convertible Bond Debt on July 29, 2019 as well as the funds raised under the New Ultraco Debt Facility. Please see Note 6 Debt to the consolidated financial statements for additional information.

For the year ended December 31, 2019, the Company sold four vessels (Merlin, Condor, Thrasher and Kestrel) for total net proceeds of $29.6 million after brokerage commissions and associated selling expenses. The Company recorded a net gain of $6.0 million in the Consolidated Statement of Operations for the year ended December 31, 2019.

On December 21, 2018, the Company signed a memorandum of agreement to purchase a 2015 built Ultramax vessel for $20.4 million. As of December 31, 2018, the Company paid a deposit of $2.0 million. The Company took delivery of the vessel in the first quarter of 2019.

On August 14, 2018, the Company entered into a contract for installation of ballast water treatment systems ("BWTS") on 40

of our owned vessels. The projected costs, including installation, is approximately $0.5 million per BWTS. The Company intends to complete the installation during scheduled drydockings. The Company completed installation of BWTS on nine vessels and recorded $3.8 million in the Vessel and vessel improvements in the Consolidated Balance Sheet as of December 31, 2019. Additionally, the Company recorded $2.9 million as advances paid towards installation of BWTS on the remaining vessels as a noncurrent asset in its Consolidated Balance Sheet as of December 31, 2019.

On September 4, 2018, the Company entered into a series of agreements to purchase up to 37 Scrubbers which are to be retrofitted on owned vessels. The projected costs, including installation, are approximately $2.2 million per scrubber. The Company completed and commissioned 24 scrubbers and recorded $52.4 million in Vessel and vessel improvements in the Consolidated Balance Sheet as of December 31, 2019. Additionally, the Company recorded $23.6 million as advances paid towards installation of scrubbers on the remaining vessels as a noncurrent asset in its Consolidated Balance Sheet as of December 31, 2019.

The Vessel and vessel improvements activity for the years ended December 31, 2019 and 2018 is below:


	December 31, 2019		December 31, 2018
Vessel and vessel improvements at the beginning of the year	$	682,944,936	$	690,236,419
Advance paid for vessel purchase	2,040,000		2,201,773
Purchase of vessels and vessel improvements	143,477,720		41,487,795
Sale of vessels	(14,757,027)		(10,354,855)
Reclassification to vessels held for sale	—		(8,458,444)
Scrubbers and BWTS	56,267,925		—
Depreciation expense	(34,014,470)		(32,167,752)
Vessels and vessel improvements at the end of the year	$	835,959,084	$	682,944,936

Deferred Drydock Costs

12 Months Ended

Dec. 31, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Drydock Costs

Drydocking activity is summarized as follows:


	December 31, 2019		December 31, 2018
Beginning Balance	$	12,186,356	$	9,749,751
Payment for drydocking	11,903,474		8,323,191
Drydock amortization	(6,227,851)		(5,353,102)
Write-off due to sale of vessels *	(366,709)		(533,484)
Ending Balance	$	17,495,270	$	12,186,356

* The Company wrote off drydock expenses of $0.4 million and $0.5 million, respectively, relating to the sale of vessels, which was recorded in gain on sale of vessels in the Consolidated Statement of Operations for the years ended December 31, 2019 and 2018.

Other accrued liabilities

12 Months Ended

Dec. 31, 2019

Other Liabilities Disclosure [Abstract]

Other accrued liabilities

Other accrued liabilities consist of:


	December 31, 2019		December 31, 2018
Vessel and voyage expenses	$	6,651,395	$	4,981,596
Scrubber, BWTS and drydocking costs	16,226,398		—
General and administrative expenses	6,119,043		4,768,244
Other expenses	—		314,177
Total	$	28,996,836	$	10,064,017

Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

Long-term debt consists of the following:


	December 31, 2019		December 31, 2018
Convertible Bond Debt	$	114,120,000	$	—
Debt discount and debt issuance costs - Convertible Bond Debt	(21,316,856)		—
Convertible Bond Debt, net of debt discount and debt issuance costs	92,803,144		—
Norwegian Bond Debt	188,000,000		196,000,000
Debt discount and debt issuance costs - Norwegian Bond Debt	(4,132,690)		(5,530,845)
Less: Current Portion - Norwegian Bond Debt	(8,000,000)		(8,000,000)
Norwegian Bond Debt, net of debt discount and debt issuance costs	175,867,310		182,469,155
New Ultraco Debt Facility	172,613,988		—
Debt discount and Debt issuance costs - New Ultraco Debt Facility	(3,507,824)		—
Less: Current Portion - New Ultraco Debt Facility	(27,709,394)		—
New Ultraco Debt Facility, net of debt discount and debt issuance costs	141,396,770		—
New First Lien Facility	—		60,000,000
Debt discount and debt issuance costs - New First Lien Facility	—		(1,060,693)
Less: Current Portion - New First Lien Facility	—		(10,750,000)
New First Lien Facility, net of debt discount and debt issuance costs	—		48,189,307
Original Ultraco Debt Facility	—		82,600,000
Debt discount and debt issuance costs - Original Ultraco Debt Facility	—		(1,248,885)
Less: Current Portion - Original Ultraco Debt Facility	—		(10,426,230)
Original Ultraco Debt Facility, net of debt discount and debt issuance costs	—		70,924,885
Total long-term debt	$	410,067,224	$	301,583,347

Convertible Bond Debt

On July 29, 2019, the Company issued $114.1 million in aggregate principal amount of 5.0% Convertible Senior Notes due 2024 (the “Convertible Bond Debt”). After deducting debt discount of $1.6 million, the Company received net proceeds of approximately $112.5 million. Additionally, the Company incurred $1.0 million of debt issuance costs relating to the transaction. The Company used the proceeds to partially finance the purchase of six Ultramax vessels and for general corporate purposes, including working capital. The Company took delivery of the vessels in the third and fourth quarters of 2019.

The Convertible Bond Debt bears interest at a rate of 5.0% per annum on the outstanding principal amount thereof, payable semi-annually in arrears on February 1 and August 1 of each year. The Convertible Bond Debt may bear additional interest upon certain events, as set forth in the indenture governing the Convertible Bond Debt. If the Company becomes obligated to pay special interest, the Company may prior to July 29, 2020, at its option, redeem for cash all (but not less than all) of the Convertible Bond Debt at a redemption price as set forth in the Indenture.

The Convertible Bond Debt will mature on August 1, 2024 (the “Maturity Date”), unless earlier repurchased, redeemed or converted pursuant to its terms. The Company may not otherwise redeem the Convertible Bond Debt prior to the Maturity Date.

Each holder has the right to convert any portion of the Convertible Bond Debt, provided such portion is of $1,000 or a multiple thereof, at any time prior to the close of business on the business day immediately preceding the Maturity Date at the conversion rate set forth in the indenture, which is subject to adjustment and was initially 178.1737 shares of the Company's common stock per $1,000 principal amount of Convertible Bond Debt (which is equivalent to an initial conversion price of approximately $5.61 per share of its common stock).

Upon conversion, the Company will pay or deliver, as the case may be, either cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election, to the holder (subject to shareholder approval requirements in accordance with the listing standards of the Nasdaq Global Select Market.

If the Company undergoes a fundamental change, as set forth in the indenture, each holder may (i) require the Company to repurchase all or part of their Convertible Bond Debt for cash in principal amounts of $1,000 or a multiple thereof at the repurchase price equal to 100% of the principal amount of the Convertible Bond Debt to be repurchased, plus accrued and unpaid interest or (ii) elect to convert their Convertible Bond Debt in which case the Company will be required to increase the conversion rate of the Convertible Bond Debt at a rate determined by a combination of the date the fundamental change occurs and the stock price of the Company's common stock on such date.

The Convertible Bond Debt is the general, unsecured senior obligations of the Company. It will rank: (i) senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Convertible Bond Debt; (ii) equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities of current or future subsidiaries of the Company.

The indenture also provides for customary events of default. Generally, if an event of default occurs and is continuing, then the trustee or the holders of at least 25% in aggregate principal amount of the Convertible Bond Debt then outstanding may declare 100% of the principal of and accrued and unpaid interest, if any, on all the Convertible Bond Debt then outstanding to be due and payable.

In accordance with ASC 470-Debt, the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) is to be separately accounted for in a manner that reflects the issuer's non-convertible debt borrowing rate. The guidance requires the initial proceeds received from the sale of convertible debt instruments to be allocated between a liability component and equity component in a manner that reflects the interest expense at the interest rate of similar non-convertible debt that could have been issued by the Company at the time of issuance. The Company measured the fair value of the debt component of the Convertible Bond Debt on the date of issuance and attributed $21.1 million of the proceeds to the equity component, which represents the excess of proceeds received over the fair value of the debt component. The equity component of the Convertible Bond Debt is recorded in Additional Paid-in capital in the Consolidated Balance Sheet as of December 31, 2019. The resulting debt discount is amortized using the effective interest method over the expected life of the Convertible Bond Debt as interest expense. The amount of interest expense recorded in the Consolidated Statement of Operations for the year ended December 31, 2019 was $1.5 million. Additionally, the debt issuance costs were allocated based on the total amount incurred to the liability and equity components using the same proportions as the proceeds from the Convertible Bond Debt. The equity issuance costs of $0.9 million were recorded as a reduction to Additional Paid-in capital in the Consolidated Balance Sheet as of December 31, 2019.

Share Lending Agreement

In connection with the issuance of the Convertible Bond Debt, certain persons entered into an arrangement (the "Share Lending Agreement") to borrow up to 3,582,880 shares of the Company’s common stock through share lending arrangements from Jefferies LLC (“Jefferies”), an initial purchaser of the Convertible Bond Debt, which in

turn entered into an arrangement to borrow the shares from an entity affiliated with Oaktree Capital Management, L.P., one of the Company’s shareholders. As of December 31, 2019, the fair value of the 3.6 million outstanding loaned shares was $16.5 million based on the closing price of the common stock on December 31, 2019.

In connection with the Share Lending Agreement, Jefferies paid $0.03 million representing a nominal fee per borrowed share, equal to the par value of the Company’s common stock. This amount and certain related transaction costs have been recorded in Additional paid-in capital in the Consolidated Balance Sheet as of December 31, 2019.

While the share lending agreement does not require cash payment upon return of the shares, physical settlement is required (i.e., the loaned shares must be returned at the end of the arrangement). In view of this share return provision and other contractual undertakings of Jefferies in the share lending agreement, which have the effect of substantially eliminating the economic dilution that otherwise would result from the issuance of borrowed shares, the loaned shares are not considered issued and outstanding for accounting purposes and for the purpose of computing and reporting the Company's basic and diluted weighted average shares or earnings per share. If Jefferies were to file bankruptcy or commence similar administrative, liquidating or restructuring proceedings, the Company will have to consider 3.6 million shares lent to Jefferies as issued and outstanding for the purposes of calculating earnings per share.

New Ultraco Debt Facility

On January 25, 2019, Ultraco Shipping LLC ("Ultraco"), a wholly-owned subsidiary of the Company, entered into a new senior secured credit facility, (the "New Ultraco Debt Facility"), which provides for an aggregate principal amount of $208.4 million, which consists of (i) a term loan facility of $153.4 million (the "Term Facility Loan") and (ii) a revolving credit facility of $55.0 million of which $55.0 million was available as of December 31, 2019. The proceeds from the New Ultraco Debt Facility were used to repay the outstanding debt including accrued interest under the Original Ultraco Debt Facility (as defined below) and the New First Lien Facility (as defined below) in full and for general corporate purposes. Subject to certain conditions set forth in the New Ultraco Debt Facility, Ultraco may request an increase of up to $60.0 million in the aggregate principal amount of the Term Facility Loan. Outstanding borrowings under the New Ultraco Debt Facility bear interest at LIBOR plus 2.50% per annum. The Company paid $3.1 million as debt issuance costs to the lenders.

On October 1, 2019, Ultraco entered into a first amendment to the New Ultraco Debt Facility (the "First Amendment") to provide for incremental commitments, and pursuant to which on October 4, 2019, Ultraco borrowed $34.3 million for general corporate purposes, including capital expenditures relating to the installation of scrubbers. The Company paid $0.4 million as debt issuance costs to the lenders.

The New Ultraco Debt Facility matures on January 25, 2024 (the “New Ultraco Maturity Date”). Pursuant to the terms of the facility, Ultraco must repay the aggregate principal amount excluding the amounts borrowed under the First Amendment, of $5.1 million in quarterly installments for the first year and $7.3 million in quarterly installments from the second year until the New Ultraco Maturity Date. Additionally, there are semi-annual catch up amortization payments from excess cash flow with a maximum cumulative payable of $4.6 million, with a final balloon payment of all remaining outstanding debt to be made on the New Ultraco Maturity Date.

Ultraco’s obligations under the New Ultraco Debt Facility are secured by, among other items, a first priority mortgage on 24 vessels owned by the Guarantors as identified in the New Ultraco Debt Facility and such other vessels that it may from time to time include with the approval of the Lenders (the “Ultraco Vessels”).

The New Ultraco Debt Facility contains financial covenants requiring the Company, on a consolidated basis excluding Shipco (as defined below) and any of Shipco’s subsidiaries (each, a “Restricted Subsidiary”) and any of the vessels owned by any Restricted Subsidiary to maintain a minimum amount of free cash or cash equivalents in an amount not less than the greater of (i) $0.6 million per owned vessel and (ii) 7.5% of the total consolidated debt of the Company and its subsidiaries, excluding any Restricted Subsidiary, which currently consists of amounts outstanding under the New Ultraco Debt Facility. The New Ultraco Debt Facility also requires the Company to maintain a liquidity reserve of $0.6 million per Ultraco Vessel in an unblocked account. Additionally, the New Ultraco Debt Facility requires the Company, on a consolidated basis, excluding any Restricted Subsidiary

and the vessels owned by any Restricted Subsidiary, to maintain (i) a ratio of minimum value adjusted tangible equity to total assets ratio of not less than 0.30:1, (ii) a consolidated interest coverage ratio of not less than a range varying from 1.50 to 1.00 to 2.50 to 1.00, and (iii) a positive working capital. The New Ultraco Debt Facility also imposes operating restrictions on Ultraco and the Guarantors. The Company is in compliance with its financial covenants under the New Ultraco Debt Facility as of December 31, 2019.

Norwegian Bond Debt

On November 28, 2017, Eagle Bulk Shipco LLC, a wholly-owned subsidiary of the Company ("Shipco" or "Issuer") issued $200.0 million in aggregate principal amount of 8.25% Senior Secured Bonds (the "Bonds" or the "Norwegian Bond Debt"). After giving effect to an original issue discount of approximately 1% and deducting offering expenses of $3.1 million, the net proceeds from the issuance of the Bonds are approximately $195.0 million. These net proceeds from the Bonds, together with the proceeds from the New First Lien Facility and cash on hand, were used to repay all amounts outstanding including accrued interest under various debt facilities outstanding at that time and to pay expenses associated with the refinancing transactions. Shipco incurred $1.3 million in other financing costs in connection with the transaction. Interest on the Bonds accrues at a rate of 8.25% per annum and the Bonds will mature on November 28, 2022. The Norwegian Bond Debt is guaranteed by the Issuer's subsidiaries and secured by mortgages over 24 vessels (the "Shipco Vessels"), pledges of the equity of the Issuer and its subsidiaries and certain assignments.

The Issuer may redeem some or all of the outstanding Bonds on the terms and conditions and prices set forth in the bond terms. Upon a change of control of the Company, each holder of the Bonds has the right to require that the Issuer purchase all or some of the Bonds held by such holder at a price equal to 101% of the nominal amount, plus accrued interest.

The Bond Terms contain certain financial covenants that the Issuer’s leverage ratio defined as the ratio of outstanding bond amount and any drawn amounts under the Super Senior Facility less consolidated cash balance to the aggregate book value of the Shipco Vessels must not exceed 75% and free liquidity must at all times be at least $12.5 million. The Company is in compliance with its financial covenants as of December 31, 2019.

During the year ended December 31, 2019, the Company sold four vessels, Kestrel, Thrasher, Condor and Merlin, for combined net proceeds of $29.6 million. Additionally, the Company sold one vessel, Thrush, in 2018 for net proceeds of $10.8 million. Pursuant to the bond terms governing the Norwegian Bond Debt, the proceeds from the sale of vessels are to be held in a restricted account to be used for the financing of the acquisition of additional vessels by Shipco and for the partial financing of the scrubbers. As a result, the Company recorded the proceeds from the sale of these vessels as restricted cash - current in the Consolidated Balance Sheet as of December 31, 2019. During the fourth quarter of 2019, Shipco acquired one modern Ultramax vessel for $20.1 million which was paid from the restricted cash - current. As of December 31, 2019, the Company used $15.4 million of proceeds received from the sale of Shipco Vessels for the financing of the purchase of scrubbers.

New First Lien Facility

On December 8, 2017, Eagle Shipping LLC, a wholly-owned subsidiary of the Company ("Eagle Shipping") entered into a credit agreement (the "New First Lien Facility"), which provided for (i) a term loan facility in an aggregate principal amount of up to $60.0 million (the “Term Loan”) and (ii) a revolving credit facility in an aggregate principal amount of up to $5.0 million (the “Revolving Loan”).

On January 25, 2019, the Company repaid the outstanding balances of the Term Loan and the Revolving Loan together with accrued interest as of that date and discharged the debt under the New First Lien Facility in full from the proceeds of the New Ultraco Debt Facility. The Company accounted for the above transaction as a debt extinguishment. As a result, the Company recognized $1.1 million, representing the outstanding balance of debt issuance costs, as a loss on debt extinguishment in the Consolidated Statement of Operations for the year ended December 31, 2019.

Super Senior Facility

On December 8, 2017, Shipco entered into the Super Senior Facility, which provides for a revolving credit facility in an aggregate amount of up to $15.0 million. The proceeds of the Super Senior Facility, which as of December 31, 2019, were undrawn, are expected, pursuant to the terms of the Super Senior Facility, to be used (i) to acquire additional vessels or vessel owners and (ii) for general corporate and working capital purposes of Shipco and its subsidiaries. The Super Senior Facility matures on August 28, 2022. Shipco paid $0.3 million as other financing costs in connection with the transaction.

The outstanding borrowings under the Super Senior Facility will bear interest at LIBOR plus 2.00% per annum and commitment fees of 40% of the applicable margin on the undrawn portion of the facility. For each loan that is requested under the Super Senior Facility, Shipco must repay such loan along with accrued interest on the last day of each interest period relating to the loan.

Shipco’s obligations under the Super Senior Facility are guaranteed by subsidiaries of Shipco and secured by mortgages on vessels owned by such subsidiaries.

The Super Senior Facility contains certain covenants that limit Shipco’s and its subsidiaries’ ability to do the following: make distributions; carry out any merger, other business combination, or corporate reorganization; make substantial changes to the general nature of their respective businesses; incur certain indebtedness; incur liens; make loans or guarantees; make certain investments; transact other than on arm’s-length terms; enter into sale and leaseback transactions; engage in certain chartering-in of vessels; or dispose of shares of Eagle Shipco Vessel Owners. Additionally, Shipco’s leverage ratio must not exceed 75% and its and its subsidiaries’ free liquidity must at all times be at least $12.5 million. Also, the total commitments under the Super Senior Facility will be cancelled if (i) at any time the aggregate market value of the security vessels for the Super Senior Facility is less than 300% of the total commitments under the Super Senior Facility or (ii) if Shipco or any of its subsidiaries redeems or otherwise repays the Bonds so that less than $100.0 million is outstanding under the Bond Terms. Shipco is in compliance with its financial covenants as of December 31, 2019.

The Super Senior Facility also contains certain events of default customary for transactions of this type.

Original Ultraco Debt Facility

On June 28, 2017, Ultraco, a wholly-owned subsidiary of the Company, entered into a credit agreement (the “Original Ultraco Debt Facility”) which was repaid in full from the proceeds of the New Ultraco Debt Facility on January 25, 2019. The Company accounted for the above transaction as a debt extinguishment. As a result, the Company recognized $1.2 million representing the outstanding balance of debt issuance costs as a loss on debt extinguishment in the Consolidated Statement of Operations for the year ended December 31, 2019.

Interest rates

2019

For the year ended December 31, 2019, the interest rate on the New First Lien Facility, which was repaid on January 25, 2019, ranged from 5.89% to 6.01% including a margin over LIBOR applicable under the terms of the New First Lien Facility and commitment fees of 40% of the margin on the undrawn portion of the revolver credit facility of the New First Lien Facility. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 6.45%.

For the year ended December 31, 2019, the interest rate on the Original Ultraco Debt Facility, which was repaid on January 25, 2019, was 5.28% including a margin over LIBOR and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate for the year was 6.80%.

For the year ended December 31, 2019, the interest rate on the Convertible Bond Debt was 5.00%. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 10.14%.

For the year ended December 31, 2019, the interest rate on the Norwegian Bond Debt was 8.25%. The weighted average effective interest rate including amortization of debt discount and debt issuance costs for the year was 9.04%.

For the year ended December 31, 2019, the interest rate on the New Ultraco Debt Facility ranged from 4.51% to 5.26% including a margin over LIBOR applicable under the terms of the New Ultraco Debt Facility and commitment fees of 40% of the margin on the undrawn portion of the revolver credit facility of the New Ultraco Debt Facility. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 4.54%.

2018

For the year ended December 31, 2018, the interest rate on the Norwegian Bond Debt was 8.25%. The weighted average effective interest rate including amortization of debt discount and debt issuance costs for the year was 8.91%.

The interest rates on the Original Ultraco Debt Facility ranged from 4.64% to 5.76% including a margin over LIBOR and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate for the year was 5.58%.

The interest rates on the New First Lien Facility ranged from 4.91% to 5.89% including a margin over LIBOR and commitment fees of 40% of the margin on the undrawn portion of the revolver credit facility of the New First Lien Facility. The weighted average effective interest rate including the amortization of debt discount and debt issuance costs for the year was 6.12%.

2017

For the year ended December 31, 2017, interest rates on our outstanding debt under the First Lien Facility ranged from 4.77% to 5.35%, including a margin over LIBOR and commitment fees of 40% of the margin on the undrawn portion of the facility. The weighted average effective interest rate was 6.18%.

The interest rates on our outstanding debt under the Original Ultraco Debt Facility ranged from 4.19% to 4.28%, including a margin over LIBOR applicable under the terms of the Original Ultraco Debt Facility which was entered into on June 28, 2017. The weighted average effective interest rate was 4.71%.

The interest rate on the Norwegian Bond Debt was 8.25%. The weighted average effective interest rate on the same was 8.84%.

The interest rate on our outstanding debt under the New First Lien Facility was 4.83% including a margin over LIBOR applicable under the terms of the New First Lien Facility. The weighted average effective interest rate was 5.21%.

Interest Expense consisted of:


	For the Years Ended
	December 31, 2019		December 31, 2018		December 31, 2017
First Lien Facility interest	$	—	$	—	$	10,305,275
Amortization of debt discount and debt issuance costs	3,783,939		1,913,651		5,927,984
Payment in kind interest on Second Lien Facility	—		—		10,098,401
Convertible Bond Debt interest	2,377,550		—		—
Original Ultraco Debt Facility interest	362,257		3,774,309		1,269,581
Norwegian Bond Debt interest	15,930,750		16,424,449		1,558,333
New Ultraco Debt Facility interest	7,172,442		—		—
New First Lien Facility interest	293,545		3,509,790		209,420
Commitment fees on revolver facilities	657,006		121,332		8,000
Total Interest Expense	$	30,577,489	$	25,743,531	$	29,376,994

Scheduled Debt Maturities

The following table presents the scheduled maturities of principal amounts of our debt obligations for the next five years.


	Norwegian Bond Debt		New Ultraco Debt Facility		Convertible Bond Debt ⁽¹⁾		Total

2020	$	8,000,000	$	27,709,394	$	—	$	35,709,394
2021	8,000,000		29,194,297		—		37,194,297
2022	172,000,000		29,194,297		—		201,194,297
2023	—		29,194,297		—		29,194,297
2024	—		57,321,703		114,120,000		171,441,703
	$	188,000,000	$	172,613,988	$	114,120,000	$	474,733,988

⁽¹⁾This amount represents the total amount of the Convertible Bond Debt that would be paid in cash at the election of the Company upon maturity.

Derivative Instruments and Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Derivative Instruments and Fair Value Measurements

Forward freight agreements and bunker swaps

The Company trades in forward freight agreements (“FFAs”) and bunker swaps, with the objective of utilizing this market as economic hedging instruments that reduce the risk of specific vessels to changes in the freight market. The Company’s FFAs and bunker swaps have not qualified for hedge accounting treatment. As such, unrealized and realized gains are recognized as a component of other expense in the Consolidated Statement of Operations and Other current assets and Fair value of derivatives in the Consolidated Balance Sheets. Derivatives are considered to be Level 2 instruments in the fair value hierarchy.

For our bunker swaps, the Company may enter into master netting, collateral and offset agreements with counterparties. As of December 31, 2019, the Company has International Swaps and Derivatives Association ("ISDA") agreements with two applicable banks and financial institutions which contain netting provisions. In addition to a master agreement with the Company supported by a primary parent guarantee on either side, the Company also has associated credit support agreements in place with the two counterparties which, among other things, provide the circumstances under which either party is required to post eligible collateral, when the market value of transactions covered by these agreements exceeds specified thresholds. The Company does not anticipate non-performance by any of the counterparties. As of December 31, 2019, no collateral had been received or pledged related to these bunker swaps.

As of December 31, 2019, the Company entered into bunker swap agreements to purchase 38,400 metric tons of high sulfur fuel oil with prices ranging between $235 and $250 and sell 38,400 metric tons of low sulfur fuel oil with prices ranging between $464 and $508 per metric ton, that are expiring at various dates in 2020. The volume represents less than 10% of our estimated consumption on our fleet for the year. Additionally, the Company entered into bunker swap agreements for 1,100 metric tons to purchase low sulfur fuel oil expiring during the year 2020 for prices ranging between $450 and $487 per metric ton. The volume represents less than 10% of our estimated consumption on our fleet for the year.

As of December 31, 2019, the Company entered into FFAs for 180 days (15 days per month) expiring at the end of each calendar month in 2020 at an FFA contract price of $11,650 per day. The Company will realize a gain or loss on these FFAs based on the price differential between the average daily Baltic Supramax Index ("BSI") rate and the FFA contract price. The gains or losses are recorded in Other expense/(income) in our consolidated financial statements.

The effect of non-designated derivative instruments on the Consolidated Statements of Operations:


		For the Years Ended
Derivatives not designated as hedging instruments	Location of (gain)/loss recognized	December 31, 2019		December 31, 2018		December 31, 2017
FFAs	Other expense/(income)	$	(109,602)	$	(471,679)	$	375,672
Bunker swaps	Other expense/(income)	259,234		345,438		(413,577)
Total				$	149,632	$	(126,241)	$	(37,905)


		Fair value of derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	December 31, 2019		December 31, 2018

FFAs - Unrealized gain	Other current assets	$	475,650	$	669,240
Bunker Swaps - Unrealized loss	Fair value of derivatives	756,229		929,313
Bunker Swaps - Unrealized gain	Other current assets	96,043		—

Cash Collateral Disclosures

The Company does not offset fair value amounts recognized for derivatives by the right to reclaim cash collateral or the obligation to return cash collateral. The amount of collateral to be posted is defined in the terms of respective master agreement executed with counterparties or exchanges and is required when agreed upon threshold limits are exceeded. As of December 31, 2019 and December 31, 2018, the Company posted cash collateral related to derivative instruments under its collateral security arrangements of $0.6 million and $0.8 million, respectively, which is recorded within other current assets in the consolidated balance sheets.

Fair Value Measurements

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash, cash equivalents and restricted cash—the carrying amounts reported in the consolidated balance sheets for interest-bearing deposits approximate their fair value due to their short-term nature thereof.

Debt—the carrying amounts of borrowings under the Norwegian Bond Debt, New Ultraco Debt Facility and Convertible Bond Debt (prior to application of the discount and debt issuance costs) including the revolving credit agreement approximate their fair value, due to the variable interest rate nature thereof.

The Company defines fair value, establishes a framework for measuring fair value and provides disclosures about fair value measurements. The fair value hierarchy for disclosure of fair value measurements is as follows:

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

Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable. Our Level 2 non-derivatives include our short-term investments and debt balances under the Norwegian Bond Debt, New Ultraco Debt Facility and Convertible Bond Debt.

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

Assets and liabilities measured at fair value:


			Fair Value
	Carrying Value ⁽⁵⁾		Level 1		Level 2
December 31, 2019
Assets
Cash and cash equivalents ⁽¹⁾	$	59,130,285	$	59,130,285	$	—
Liabilities
Norwegian Bond Debt ⁽²⁾	188,000,000		—		192,626,680
New Ultraco Debt Facility ⁽³⁾	172,613,988		—		172,613,988
Convertible Bond Debt ⁽⁴⁾	114,120,000		—		118,844,568


			Fair Value
	Carrying Value ⁽⁵⁾		Level 1		Level 2
December 31, 2018
Assets
Cash and cash equivalents ⁽¹⁾	$	78,163,638	$	78,163,638	$	—
Liabilities
Norwegian Bond Debt ⁽²⁾	196,000,000		—		195,040,000
New First Lien Facility ⁽³⁾	60,000,000		—		60,000,000
Original Ultraco Debt Facility ⁽³⁾	82,600,000		—		82,600,000


⁽¹⁾			Includes restricted cash (current and non-current) of $5.5 million at December 31, 2019 and $10.9 million at December 31, 2018.
⁽²⁾			The fair value of the bonds is based on the last trade on December 31, 2019 and December 21, 2018.
⁽³⁾			The fair value of the New Ultraco Debt Facility, New First Lien Facility and the Original Ultraco Debt Facility is based on the required repayment to the lenders if the debt was discharged in full on December 31, 2019 and 2018. The New First Lien Facility and Original Ultraco Debt Facility were fully discharged as part of the refinancing transaction on January 25, 2019. Please see Note 6 Debt to the consolidated financial statements.
⁽⁴⁾			The fair value of the Convertible Bond Debt is based on the last trade on November 21, 2019.
⁽⁵⁾			The outstanding debt balances represent the face value of the debt excluding debt discount and debt issuance costs.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company is involved in legal proceedings and may become involved in other legal matters arising in the ordinary course of its business. The Company evaluates these legal matters on a case-by-case basis to make a determination as to the impact, if any, on its business, liquidity, results of operations, financial condition or cash flows. In November 2015, the Company filed a voluntary self-disclosure report with OFAC regarding certain apparent violations of U.S. sanctions regulations in the provision of shipping services for third party charterers with respect to the transportation of cargo to or from Myanmar (formerly Burma). The Company had a different senior management team at the time of the apparent violations, which occurred between 2011 and 2014. The Company’s new senior management and new Board of Directors self-reported the apparent violation and cooperated fully with OFAC's investigation. On January 23, 2020, Eagle Shipping International (USA) LLC (“ESI”), a subsidiary of the Company, entered into a settlement agreement (the “Settlement Agreement”) with OFAC in which ESI agreed to make a one-time payment to the U.S. Department of the Treasury in the amount of $1.125 million and undertake certain compliance commitments in exchange for OFAC agreeing to release and forever discharge the Company and its subsidiaries, including ESI, without any finding of fault, from any and all civil liability in connection with the apparent violations. The Company recorded the liability related to OFAC as Other operating expense in its Consolidated Statement of Operations for the year ended December 31, 2019. We have not been involved in any legal proceedings which we believe may have, or have had, a significant effect on our business, financial position, results of operations or liquidity, nor are we aware of any proceedings that are pending or threatened which we believe may have a significant effect on our business, financial position, and results of operations or liquidity. From time to time, we may be subject to legal proceedings and claims in the ordinary course of business, principally personal injury and property casualty claims. We expect that these claims would be covered by insurance, subject to customary deductibles. Those claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources.

Income/(Loss) per Common Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net (Loss)/income per Common Share

The computation of basic net (loss)/income per share is based on the weighted average number of common shares outstanding for the years ended December 31, 2019, 2018 and 2017. As of December 31, 2019 and 2018, the Company had 3,040,540 outstanding warrants convertible to 152,027 shares of the Company's common stock with an exercise price of $556.40 per share. The warrants have a 7 year term and will expire on October 15, 2021. Diluted net (loss)/income per share gives effect to stock awards, stock options and restricted stock units using the treasury stock method, unless the impact is anti-dilutive.

Diluted net loss per share for the year ended December 31, 2019 does not include 1,559,502 stock awards, 2,284,796 stock options and outstanding warrants convertible to 152,027 shares of common stock as their effect was anti-dilutive. Additionally, the Convertible Bond Debt is not considered a participating security and therefore not included in the computation of Basic net loss per share for the year ended December 31, 2019. The Company determined that it does not overcome the presumption of share settlement of outstanding debt and therefore the Company applied the if-converted method and did not include the potential shares to be issued upon conversion of Convertible Bond Debt in the calculation of Diluted net loss per share for the year ended December 31, 2019 as their effect was anti-dilutive.

Diluted net income per share for the year ended December 31, 2018 does not include 687 unvested stock awards, 348,625 stock options and outstanding warrants convertible to 152,027 shares of common stock as their effect was anti-dilutive.

Diluted net loss per share for the year ended December 31, 2017 does not include 1,716,928 unvested stock awards, 2,301,046 stock options and outstanding warrants convertible to 152,027 shares of common stock as their effect was anti-dilutive.


	For the Years Ended
	December 31, 2019		December 31, 2018		December 31, 2017
Net (loss)/income	$	(21,697,115)	$	12,574,684	$	(43,796,685)
Weighted Average Shares-Basic	71,365,618		70,665,212		69,182,302
Dilutive effect of stock options, warrants and restricted stock units	—		1,136,961		—
Weighted Average Shares - Diluted	71,365,618		71,802,173		69,182,302
Basic net (loss)/income per share	$	(0.30)	$	0.18	$	(0.63)
Diluted net (loss)/income per share	$	(0.30)	$	0.18	$	(0.63)

Stock Incentive Plans

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock Incentive Plans

2014 Management Incentive Plan

On October 15, 2014, in accordance with the Plan of Reorganization, the Company adopted the post-emergence Management Incentive Program (the “2014 Plan”), which provided for the distribution of New Eagle MIP Primary Equity in the form of shares of New Eagle Common Stock, and New Eagle MIP Options, to the participating senior management and other employees of the reorganized Company with 2% of the New Eagle Common Stock (on a fully diluted basis) on the Effective Date, and two tiers of options to acquire 5.5% of the New Eagle Common Stock (on a fully diluted basis) with different strike prices based on the equity value for the reorganized Company and a premium to the equity value, each of the foregoing to vest generally over a four year schedule through 25% annual installments commencing on the first anniversary of the Effective Date. The New Eagle MIP Primary Equity is subject to vesting, but the holder thereof is entitled to receive all dividends paid with respect to such shares as if such New Eagle MIP Primary Equity had vested on the grant date (subject to forfeiture by the holder in the event that such grant is terminated prior to vesting unless the administrator of the 2014 Plan determines otherwise). The New Eagle MIP Options contain adjustment provisions to reflect any transaction involving shares of New Eagle Common Stock, including as a result of any dividend, recapitalization, or stock split, to prevent any diminution or enlargement of the holder’s rights under the award.

During 2019, 50,625 restricted stock awards vested and none were forfeited. There are no outstanding unvested restricted stock awards outstanding as of December 31, 2019.

During 2018, 1,432 restricted stock awards vested and 83 restricted stock awards were forfeited. There were 50,625 unvested restricted stock awards outstanding with an average share price on grant date of $5.90 as of December 31, 2018.

During 2017, 133,452 restricted stock awards vested and there were 52,140 restricted stock awards outstanding with an average share price on grant date of $42.19 as of December 31, 2017.

As of December 31, 2019 and 2018, there were 12,875 options vested but unexercised with exercise prices ranging from $360 to $505 and there were no unvested MIP options. The fair value of the vested options is insignificant.

On November 7, 2016, the Company granted 233,863 shares of restricted common stock and options to purchase 280,000 shares of the Company’s common stock in connection with the appointment of a new member to the senior management team. The restricted stock and option were not granted under, but are subject to, the terms of the Company’s 2014 Plan. The details of the grant are below:


	Restricted shares ^*	Fair value on grant date		Aggregate fair value (in millions)		Vesting Terms
Granted on November 7, 2016	233,863	$	4.24	$	1.0	100% vesting on third anniversary date
Unvested restricted stock outstanding as of December 31, 2018 and 2017	233,863	$	4.24	$	1.0
Vested during 2019	(126,152)
Cancellations due to settlement of tax liability on vested shares	(107,711)
Unvested restricted stock outstanding as of December 31, 2019	—	$	—	$	—

* Amortization of the above stock awards was calculated using the cliff method of vesting and included in general and administrative expenses.


	Options**	Weighted Average Exercise Price		Expiration( years)	Risk free interest rate		Volatility		Dividend %		Fair Value of Options on grant date		Aggregate fair value (in millions)		Expected Term and vesting conditions
Granted on November 7, 2016	280,000	$	4.28	5	1.10	%	61	%	—	%	$	1.91	$	0.53	3.75 years and 25% vesting annually over four year term
Vested during 2017	(70,000)												$	(0.13)
Unvested options outstanding as of December 31, 2017	210,000	$	4.28								$	1.91	$	0.40
Vested during 2018	(70,000)												$	(0.13)
Unvested options outstanding as of December 31, 2018	140,000	$	4.28								$	1.91	$	0.27
Vested during 2019	(70,000)	$	4.28								$	1.91	$	(0.13)