Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 32

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 3
Chunk 32
---
. Our payment of these calls could result in significant expense to us, which could have a material adverse effect on our business, results of operations and financial condition.

Our investment in Element 1 Corp. involves a high degree of risk, including potential loss of our investment.

As part of our Energy Transition Plan, in June 2021 we purchased a 10% equity stake in private company Element 1 Corp., a developer of hydrogen generation systems used to power fuel cells.

Element 1 Corp operates in a highly dynamic and competitive market, and there is no assurance that it will be able to compete successfully, that demand will grow for its technology, including for in the marine sector, or that it will obtain adequate funding to expand its operations or business. These are among the factors that subject our investment of time and resources in Element 1 Corp to risk and may result in a loss to us of such investment. During the year ended December 31, 2024, the Company recognized an impairment loss of $4.4 million related to its equity method investment in Element 1 Corp.

LEGAL AND REGULATORY RISKS

We are subject to complex laws and regulations, including environmental laws and regulations, which can adversely affect our business, results of operations and financial condition.

Our operations are subject to numerous laws and regulations in the form of international conventions and treaties, national, state and local laws and national and international regulations in force in the jurisdictions in which our vessels operate or are registered, which can significantly affect the ownership and operation of our vessels. Cost of compliance with such laws and regulations may be significant and, where applicable, may require installation of costly equipment or operational changes and may affect the resale value or useful lives of our vessels. Compliance with existing and future regulatory obligations may include costs relating to, among other things: air emissions including greenhouse gases; the management of ballast and bilge waters; maintenance and inspection; elimination of tin-based paint; development and implementation of emergency procedures; Eco-mod upgrades of secondhand vessels; and insurance coverage or other financial assurance of our ability to address pollution incidents. Environmental or other incidents may result in additional regulatory initiatives or statutes or changes to existing laws that may affect our operations or require us to incur additional expenses to comply with such regulatory initiatives, statutes or laws. These costs could have a material adverse effect on our business, results of operations and financial condition.

Table of Contents

A failure to comply with applicable laws and regulations may, among other things, result in administrative and civil penalties, criminal sanctions or the