Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 110

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 5
Chunk 110
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 related to our equity method investment in Element 1 Corporation. The impairment was assessed based on market conditions and the financial performance of Element 1 Corporation. The impairment loss is included in loss from equity method investments in the consolidated statements of operations. No corresponding impairment of equity method investment was recorded during the year ended December 31, 2023.

Extinguishment of Preferred Stock. During the year ended December 31, 2024, we redeemed 25% of our Series A Preferred Stock. As the fair value of the preferred stock redemption was greater than the carrying amount, we recognized an expense of $0.7 million, which is recorded in extinguishment of preferred stock in the consolidated statements of operation for the year ended December 31, 2024. No corresponding extinguishment of preferred stock was recorded during the year ended December 31, 2023.

Year Ended December 31, 2023 Compared With Year Ended December 31, 2022

For a discussion of our operating results for the year ended December 31, 2023 compared with the year ended December 31, 2022, please see "Item 5 - Recent Developments and Results of Operations" in our Annual Report on Form 20-F for the year ended December 31, 2023.

B. Liquidity and Capital Resources

Our primary sources of liquidity are cash and cash equivalents, cash flows provided by our operations, our undrawn credit facilities and capital raised through financing transactions. As of December 31, 2024 we had $243.4 million in liquidity available, with cash and cash equivalents of $47.0 million (December 31, 2023: $46.8 million) and amounts available and undrawn under our revolving credit facilities of $196.4 million (December 31, 2023: $221.2 million). We believe that our working capital, together with expected cash flows from operations will be sufficient for our present requirements.

Our short-term liquidity requirements include the payment of operating expenses (including voyage expenses and bunkers from spot chartering our vessels), drydocking expenditures, debt servicing costs, quarterly preferred stock dividends, dividends on our shares of common stock, as well as funding our other working capital requirements. Our short-term and spot charters, including participating in spot charter pooling arrangements, contribute to the volatility of our net operating cash flow, and thus our ability to generate sufficient cash flows to meet our short-term liquidity needs. Historically, the tanker industry has been cyc