Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 183

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 19
Chunk 183
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likely-than-not threshold it is measured to determine the amount of benefit to recognize in the financial statements. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Uncertainties related to income taxes recognized for the year ended December 31, 2024 amounted to $Nil(2023: $Nil, 2022: $Nil).
2.32. Concentration of credit risk
Financial instruments that potentially subject the Company to concentrations of credit risk are accounts receivable due from charterers and cash and cash equivalents. There is a concentration of credit risk with respect to the Company’s cash and cash equivalents to the extent that substantially all of the amounts are held in several institutions and are generally not covered by insurance in the event of default by these financial institutions.
The Company limits its credit risk with trade accounts receivable by performing ongoing credit evaluations of its customers’ financial condition. The Company may be exposed to a credit risk in relation to vessel employment and at times may have multiple vessels employed by one charterer.
The following table presents consolidated revenues for charterers that accounted for more than 10% of the Company’s consolidated revenues during the years presented:
For the years ended December 31
In thousands of U. S. Dollars 2024 2023 2022
────────────────────────────────────────────────────────────────────────────────────────────
Charterer A 28,132 * 55,626
Charterer B * * 53,345
* None over 10% 3. Business and Segment Reporting
The Company primarily engages in the ocean transportation of petroleum and chemical products internationally through its fleet of tankers. These tankers are not bound to specific ports or schedules, allowing them to respond to market opportunities by moving between trade lanes and geographical areas. The Company charters its vessels to its customers through a combination of spot and time-charter arrangements, with the majority of its revenue generated from spot voyages, which typically last less than three months.
The CODM reviews overall operating results on a fleet-wide basis using time charter equivalent rates (“ TCE”) and consolidated expenses. When the Company charters-out a vessel, the charterer is free to trade the vessel worldwide (subject to certain sanctions-related restrictions and certain operational-related constraints), making the disclosure of geographic information impracticable. The Company operates underonereportable segment for its vessel operations, based on how internally reported financial information is reviewed by the CODM to analyze performance, make decisions and allocate resources.
The accounting policies of the vessel