Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 109

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 5
Chunk 109
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3 million for the year ended December 31, 2023. The gain for the year ended December 31, 2024 relates to a decrease in the fair value of the liability in respect of the profit interest granted by the Company in 2021 relating to the Company’s investment in Element 1 Corporation.

Table of Contents

Interest Expense and Finance Costs. Interest expense and finance costs include loan interest, finance lease interest, and amortization of deferred finance fees. Interest expense and finance costs for the year ended December 31, 2024 were $6.8 million, a decrease of $4.6 million from $11.4 million for the year ended December 31, 2023. Cash interest expense decreased by $6.2 million to $5.6 million for the year ended December 31, 2024, from $11.8 million for the year ended December 31, 2023. The decrease in cash interest expense was due to the reduction of the average outstanding balance due to the conversion of our term loan into a fully revolving facility, with 50% of the term loan being converted to a revolving facility during the three months ended June 30, 2023, and the remaining 50% being converted during the three months ended March 31, 2024. The flexibility of our revolving facilities, with only $38.8 million drawn down as of December 31, 2024, has minimized the impact of the continuing elevated interest rate environment. Amortization of deferred finance fees for the year ended December 31, 2024 was $1.1 million, generally consistent with $1.2 million for the year ended December 31, 2023.

Gain on Extinguishment of Finance Leases. Gain on extinguishment of finance leases for the year ended December 31, 2024 was $1.4 million compared to $nil for the year ended December 31, 2023. As a result of the early prepayment of the finance leases related to our exercise of the vessel purchase options for the Ardmore Seawolfand Ardmore Seahawk, we recorded a gain on extinguishment of $1.4 million for the year ended December 31, 2024. We recorded no gain or loss on extinguishment for the year ended December 31, 2023.

Loss From Equity Method Investments. During the three months ended December 31, 2024, we recognized an impairment loss of $4.4 million