false
--12-31
FY
2017
2017-12-31
20-F
0001341170
10876112
Yes
Non-accelerated Filer
EUROSEAS LTD.
No
No
esea
74863
278826
209161
17753737
700000
5051211
10000000
31800000
17800000
32701867
17753737
5051211
1400000
5100000
23254692
5784204
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-indent: -35.45pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.</div> Advances for Vessels under Construction and Vessel Acquisition Deposits </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div> <table style="border-collapse: collapse; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: justify; border-bottom: Black 1pt solid"> </td> <td style="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Costs</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 87%; font-size: 10pt; font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Balance, January 1, 2016</td> <td style="width: 1%; font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32,701,867</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify">Advances for vessels under construction</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,254,692</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">Vessel acquisition deposits</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">678,796</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify">New building vessel delivered during the period</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(31,831,439</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify; border-bottom: Black 1pt solid">Loss on termination and impairment of shipbuilding contracts</td> <td style="font-size: 10pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,050,179</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Balance, December 31, 2016</td> <td style="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,753,737</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">Advances for vessels under construction</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,784,204</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify">Vessel acquisition deposit</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,824,668</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">New building vessel delivered during the period</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(17,807,934</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify; border-bottom: Black 1pt solid">Vessel delivered during the period</td> <td style="font-size: 10pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,503,464</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Balance, December 31, 2017</td> <td style="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,051,211</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">The balance as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>represents advances for the acquisition of M/V "Alexandros P" (Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160</div>) of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$17.1</div> million and deposit of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div></div> million relating to M/V "Tasos".</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Advances made by Kamsarmax One Shipping Ltd. related to M/V "Xenia" amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.0</div></div> million as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2016 </div>and additional advances of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$21.8</div></div> million were made in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> or a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$31.8</div> million. Kamsarmax One Shipping Ltd. took delivery of M/V "Xenia" on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 25, 2016. </div>Additionally, advances made related to the construction of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160</div> and Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY161</div> (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.4</div> million in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">The shipbuilding contracts for Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160</div> and Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY161,</div> both with Yangzhou Dayang Shipbuilding Co., Ltd. and Sumec Marine Co., Ltd., and originally scheduled for delivery in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> quarters of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively, were cancelled on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 29, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2, 2016, </div>respectively, due to excessive construction delays. As a result, Ultra One Shipping Ltd. and Ultra Two Shipping Ltd. recognized a receivable of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$17.1</div> million from Yangzhou Dayang Shipbuilding Co., Ltd. and Sumec Marine Co., Ltd. representing the shipyard instalments paid and costs of other spares/supplies incorporated into the vessels in accordance with the shipbuilding contracts and, in addition, recorded a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.2</div> million loss on the termination of the shipbuilding contracts representing other capitalized expenses which were considered would <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be recoverable under the shipbuilding contracts .</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-indent: -35.45pt"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 21, 2016, </div>Ultra One Shipping Ltd. signed an agreement to acquire from Yangzhou Dayang Shipbuilding Co., Ltd. and Sumec Marine Co., Ltd. Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160</div> for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$16.9</div> million. The Company recognized as part of the cost of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160</div> the amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.4</div> million representing the additional spares/supplies acquired for Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160,</div> which had been originally included in the receivable of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$17.1</div> million, noted above. As a result, the receivable was reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$16.7</div> million. In accordance with the agreement, the Company applied the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$16.7</div> million receivable, representing the shipyard instalments paid and cost of spares/supplies incorporated into Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY161</div> against the cost of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> DY <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">160,</div> and paid the remaining amount in cash. Additional advances of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.5</div> million were made in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> representing capitalized expenses or a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$17.8</div> million. Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160</div> was delivered to the Company on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 16, 2017 </div>and was named M/V "Alexandros P".</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Also, in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016, </div>Kamsarmax Two Shipping Ltd. took an impairment charge on Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">YZJ2013</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1153</div> as it considered it likely at that time that it would exercise its option to terminate the shipbuilding contract without any additional penalty. The Company recognized an impairment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.8</div> million representing the deposit paid to the shipyard as well as legal and other costs related to the shipbuilding contract. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2017, </div>the Company decided <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to exercise the option to terminate the contract but to proceed with the construction of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">YZJ2013</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1153,</div> which is expected to be delivered by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2018. </div>The balance as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>represents advances made by Kamsarmax Two Shipping Ltd. during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> for the construction of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">YZJ2013</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1153</div> (to be named "Ekaterini") amounting to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.1</div> million.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"> </div> <div style=" margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 11, 2016, </div>Areti Shipping Ltd. signed a memorandum of agreement to purchase M/V "Tasos" for approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.4</div> million. The deposit made under the memorandum of agreement and other capitalized costs amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016. </div>The balance of the amount payable under the memorandum of agreement and other capitalized costs paid during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.8</div> million or a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.5</div> million together with the amount paid in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> M/V "Tasos" was delivered to the Company on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 9, 2017.</div></div></div>
1.3
0.75
1.1
28055
29469
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Assets Held for Sale </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>dispose of certain of its vessels when suitable opportunities occur, including prior to the end of their useful lives. The Company classifies assets as being held for sale when the following</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">criteria are met: (i) management is committed to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Long-lived assets classified as held for sale are measured at the lower of their carrying amount or fair value less the cost to sell the asset. These assets are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> longer depreciated once they meet the criteria of being held for sale.</div></div></div></div></div>
7050179
500000
700000
3800000
15252
11000
4751792
372806
563970
4000000
450000
1680000
300000
600000
6
6
7
1
3
12
13
20
16
5
11
20
8
12
2
4
14
350000
3150000
2750000
1103915
4840000
280000
560000
4
14
280000
560000
3720000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.</div></div></td> <td style="text-align: justify"><div style="display: inline; font-weight: bold;">Deferred Charges, net</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Deferred charges, net consist of loan commitment fees which are presented against the loan balance upon drawdown of the loan. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$420,391</div> of new commitment fees incurred for the loans intended to finance the acquisition of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160</div> and Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY161</div> upon delivery of the vessels.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-align: justify">The Company wrote off the commitment fees related to the loan intended to finance the acquisition of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY161</div> as a result of the cancellation of the shipbuilding contract (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>). The commitment fees as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>relate to the loan that was originally intended to finance the acquisition of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160</div> (M/V "Alexandros P"). Within the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> another <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13,700</div> of loan commitment fees were incurred for the loan intended to finance the acquisition of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160.</div> The loan was drawn in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div> <table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt">2016</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt">2017</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: justify; padding-left: 0.4pt"><div style="display: inline; font-size: 10pt">Balance, beginning of year</div></td> <td style="width: 1%"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 1%; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">418,034</div></div></td> <td style="width: 1%; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 1%"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 1%; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">426,783</div></div></td> <td style="width: 1%; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0.4pt"><div style="display: inline; font-size: 10pt">Write-off of loan commitment fees</div></td> <td><div style="display: inline; font-size: 10pt"> </div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(411,642</div></div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td><div style="display: inline; font-size: 10pt"> </div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="text-align: left"></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.4pt"><div style="display: inline; font-size: 10pt">Loan commitment fees</div></td> <td style="padding-bottom: 1pt"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">420,391</div></div></td> <td style="padding-bottom: 1pt; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">13,700</div></div></td> <td style="padding-bottom: 1pt; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.4pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt">Reclassification as contra to loan upon drawdown</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0"><div style="display: inline; font-size: 10pt">-</div></div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0"><div style="display: inline; font-size: 10pt">(440,483</div></div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 0.4pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt">Balance, end of year</div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">426,783</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> </tr> </table> </div></div>
420391
13700
13700
31831439
17807934
4503464
700000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Dry-docking and special survey expenses</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dry-docking and special survey expenses are expensed as incurred.</div></div></div></div></div>
28475
44268
0.02
-2158393
-16515702
0.42857
130000
100000
170000
0.09
0.1
0.095
697048
497813
123697
175000000
75000000
0.6
1000
115000
179281
52019
5697915
12862000
44659000
61550271
167019
7050179
77022
27741
46238
21800000
31831439
17807934
794
24
-24
19
19
18
4000000
4000000
4000000
4421452
4421452
4421452
4421452
95000
440483
77821
0.35
0.35
2250000
1
0.4
12.25
0.05
0.35
134100000
103780000
-8738714
-8234439
1.3
0.75
1.3
0.75
0.75
1.3
2636068
7208080
440483
P5Y
P5Y
P5Y
50
0.05
0.01
0.0125
360
720
0.05
540000
280000
460000
460000
1840000
17100000
16700000
400000
0.04
0.01
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: justify; border-bottom: Black 1pt solid"> </td> <td style="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Costs</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 87%; font-size: 10pt; font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Balance, January 1, 2016</td> <td style="width: 1%; font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32,701,867</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify">Advances for vessels under construction</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,254,692</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">Vessel acquisition deposits</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">678,796</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify">New building vessel delivered during the period</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(31,831,439</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify; border-bottom: Black 1pt solid">Loss on termination and impairment of shipbuilding contracts</td> <td style="font-size: 10pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,050,179</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Balance, December 31, 2016</td> <td style="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,753,737</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">Advances for vessels under construction</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,784,204</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify">Vessel acquisition deposit</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,824,668</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: justify">New building vessel delivered during the period</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(17,807,934</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify; border-bottom: Black 1pt solid">Vessel delivered during the period</td> <td style="font-size: 10pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,503,464</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: justify; border-bottom: Black 1pt solid">Balance, December 31, 2017</td> <td style="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,051,211</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="border-bottom: Black 1pt solid">To December 31:</td> <td style="border-bottom: Black 1pt solid; padding-left: 0.5in; text-align: justify"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="text-align: justify">2018</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,862,000</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify">2019</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,434,972</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="text-align: justify">2020</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,851,327</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify">2021</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,601,000</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="text-align: justify">2022</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">934,000</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify; width: 49%">Thereafter</td> <td style="padding-left: 0.5in; text-align: justify; width: 6%"> </td> <td style="text-align: right; width: 43%"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,728,972</div></td> <td style="text-align: right; width: 2%"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-weight: bold;">Total</div></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-left: 0.5in; text-align: justify"> </td> <td style="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,412,271</div></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-weight: bold;"></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2015</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-weight: bold;">2016</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-weight: bold;">2017</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Voyage expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 61%; text-align: justify">Port charges and canal dues</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">832,917</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">421,140</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,734,979</div></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">Bunkers</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">1,479,596</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">870,572</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">2,225,828</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">Total</div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">2,312,513</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">1,291,712</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">3,960,807</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify">Vessel operating expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Crew wages and related costs</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,164,355</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,670,721</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,388,286</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Insurance</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,412,366</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,649,313</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,871,330</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Repairs and maintenance</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">503,934</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">341,481</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">824,962</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Lubricants</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,433,956</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,611,543</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,549,265</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Spares and consumable stores</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,058,153</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,770,405</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,098,275</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Professional and legal fees</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">492,852</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">214,317</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">196,343</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">Other</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">1,138,977</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">904,082</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">983,269</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">Total</div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">25,204,593</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">18,161,862</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">21,911,730</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> </tr> </table></div>
685
685
685
685
P10Y
285912
99317
176475
P270D
27000
1773000
1800000
19000000
18400000
0.625
0.65
0.55
18400000
678796
3824668
1000000
305150
233077
292854
1297100
1297100
1297100
1297100
1297000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14.</div> Voyage and Vessel Operating Expenses</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These consisted of:</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-weight: bold;"></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2015</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-weight: bold;">2016</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-weight: bold;">2017</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify">Voyage expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 61%; text-align: justify">Port charges and canal dues</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">832,917</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">421,140</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,734,979</div></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">Bunkers</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">1,479,596</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">870,572</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">2,225,828</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">Total</div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">2,312,513</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">1,291,712</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">3,960,807</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify">Vessel operating expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Crew wages and related costs</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,164,355</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,670,721</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,388,286</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Insurance</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,412,366</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,649,313</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,871,330</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Repairs and maintenance</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">503,934</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">341,481</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">824,962</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Lubricants</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,433,956</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,611,543</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,549,265</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Spares and consumable stores</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,058,153</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,770,405</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,098,275</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Professional and legal fees</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">492,852</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">214,317</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">196,343</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">Other</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">1,138,977</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">904,082</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">983,269</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">Total</div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">25,204,593</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">18,161,862</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">21,911,730</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-weight: bold;"> </div></td> </tr> </table> </div></div>
4500000
4503464
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Vessels</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Vessels are stated at cost, which comprises the vessel contract price, costs of major repairs and improvements upon acquisition, direct delivery and other acquisition expenses, less accumulated depreciation and impairment, if any. Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. Vessels under construction are presented at cost, which includes shipyard installment payments and other vessel costs incurred during the construction period that are directly attributable to the construction of the vessels, including interest costs incurred during the construction period.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Expenditures for vessel repair and maintenance are charged against income in the period incurred.</div></div></div></div></div>
2312513
1291712
3960807
832917
421140
1734979
1479596
870572
2225828
39656670
29789036
45117582
2450000
411642
10000000
5000000
15000000
1864263
1869441
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.</div> Accrued Expenses </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accrued expenses consisted of:</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="text-align: center; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">As of December 31, 2016</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">As of December 31, 2017</td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="3" style="text-align: right"> </td> <td> </td> <td colspan="3" style="text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left; padding-left: 0.4pt">Accrued payroll expenses</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230,917</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">329,308</div></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0.4pt">Accrued interest expense</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">310,389</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">661,480</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 0.4pt">Accrued deferred charges</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">74,863</div></div> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.4pt">Accrued general and administrative expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">278,826</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">209,161</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.4pt">Accrued commissions</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">54,173</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,793</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: normal; text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.4pt; border-bottom: Black 1pt solid">Other accrued expenses</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">437,988</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">778,532</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt; padding-left: 0.4pt; border-bottom: Black 1pt solid">Total</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,312,293</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">2,154,137</div></div> </td> </tr> </table> </div></div>
1432114
1479282
1312293
2154137
230917
329308
54173
100793
35790625
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30207630
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1113067
2110762
283757739
284236597
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294341
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60988
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613326
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22443
0
0
3800000
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4600000
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1641885
5924668
4595819
5924668
4595819
143693504
162329561
10444083
16082368
2950000
5000000
4300000
2946923
2946923
5000000
5000000
8230000
5390000
2810000
0.85714
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div> Basis of Presentation and General Information</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Euroseas Ltd. (the “Company”) was formed on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 5, 2005 </div>under the laws of the Republic of the Marshall Islands to consolidate the beneficial owners of certain ship-owning companies. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 28, 2005, </div>the beneficial owners exchanged all their shares in the ship-owning companies for shares in Friends Investment Company Inc., a newly formed Marshall Islands company. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 29, 2005, </div>Friends Investment Company Inc. then exchanged all the shares in the ship-owning companies for shares in Euroseas Ltd., thus, becoming the sole shareholder of Euroseas Ltd.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The operations of the vessels are managed by Eurobulk Ltd. ("Eurobulk" or “Manager”) and Eurobulk (Far East) Ltd. Inc. (“Eurobulk FE”)<div style="display: inline; background-color: white">,</div> collectively the “Manager”, corporations controlled by members of the Pittas family. Eurobulk has an office in Greece located at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> Messogiou & Evropis Street, Maroussi, Greece; Eurobulk FE has an office at Manilla, Philippines Suite <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1003,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10th</div> Floor Ma. Natividad Building, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">470</div> T.M. Kalaw cor. Cortada Sts., Ermita. Both provide the Company with a wide range of shipping services such as technical support and maintenance, insurance consulting, chartering, financial and accounting services, while Eurobulk also provides executive management services, in consideration for fixed and variable fees (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div>).</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Pittas family is the controlling shareholder of Friends Investment Company Inc. which, in turn, owns <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">33.3%</div> of the Company’s shares as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is engaged in the ocean transportation of dry bulk and containers through ownership and operation of dry bulk and container carrier ship-owning companies. For the periods under review the Company’s wholly owned subsidiaries are set out below:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Allendale Investment S.A. incorporated in Panama on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 22, 2002, </div>owner of the Panama flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,154</div> deadweight tons (“DWT”) / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,169</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twenty</div>-foot equivalent (“TEU” – a measure of carrying capacity in containers) container carrier M/V “Kuo Hsiung”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1993</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 13, 2002.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Alterwall Business Inc. incorporated in Panama on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 15, 2001, </div>owner of the Panama flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,253</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,169</div> TEU container carrier M/V “Ninos” (previously named M/V “Quingdao I”) which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1990</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 16, 2001.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Diana Trading Ltd. incorporated in the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 25, 2002, </div>owner of the Marshall Islands flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">69,734</div> DWT bulk carrier M/V “Irini”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1988</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 15, 2002. </div>M/V “Irini” was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 10, 2013.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Xenia International Corp., incorporated in the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 6, 2006, </div>owner of the Marshall Islands flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22,568</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">950</div> TEU multipurpose M/V “Tasman Trader”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1990</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 27, 2006. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 7, 2012, </div>the vessel was renamed M/V “Anking”. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 4, 2013 </div>the vessel was sold.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Prospero Maritime Inc., incorporated in the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 21, 2006, </div>owner of the Marshall Islands flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">69,268</div> DWT dry bulk M/V “Aristides N.P.”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1993</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 21, 2006. </div>The vessel was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 15, 2016.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Xingang Shipping Ltd., incorporated in Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 16, 2006, </div>owner of the Liberian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,596</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,599</div> TEU container carrier M/V “YM Xingang I” , which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 1993 </div>and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 15, 2006. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 11, 2009, </div>the vessel was renamed M/V “Mastro Nicos” and on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 5, 2009, </div>it was renamed M/V “YM Port Kelang”. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 25, 2011 </div>the vessel was renamed M/V “Marinos”. The vessel was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 26, 2015.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Manolis Shipping Ltd., incorporated in the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 16, 2007, </div>owner of the Marshall Islands flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,346</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,452</div> TEU container carrier M/V “Manolis P”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1995</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 12, 2007.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Eternity Shipping Company, incorporated in the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 17, 2007, </div>owner of the Marshall Islands flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,007</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,742</div> TEU container carrier M/V “Clan Gladiator”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1992</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 13, 2007. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 9, 2008, </div>M/V “Clan Gladiator” was renamed M/V “OEL Transworld” and on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 31, 2009 </div>the vessel was renamed M/V “Captain Costas”. The vessel was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 10, 2016.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Pilory Associates Corp., incorporated in Panama on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 4, 2007, </div>owner of the Panamanian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">33,667</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,932</div> TEU container carrier M/V “Despina P”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1990</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 13, 2007. </div>The vessel was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 28, 2015.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Tiger Navigation Corp., incorporated in Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 29, 2007, </div>owner of the Marshall Islands flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,627</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,228</div> TEU container carrier M/V “Tiger Bridge”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1990</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 4, 2007. </div>The vessel was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 9, 2015.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Noumea Shipping Ltd, incorporated in Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 14, 2008, </div>owner of the Marshall Islands flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">34,677</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,556</div> TEU container carrier M/V “Maersk Noumea”, renamed “Evridiki G”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2001</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 22, 2008.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Saf-Concord Shipping Ltd., incorporated in Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 8, 2008, </div>owner of the Liberian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">46,667</div> DWT bulk carrier M/V “Monica P”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1998</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 19, 2009.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Eleni Shipping Ltd., incorporated in Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 11, 2009, </div>owner of the Liberian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">72,119</div> DWT bulk carrier M/V “Eleni P”, which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1997,</div> acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 6, 2009 </div>and sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 26, 2017.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Pantelis Shipping Ltd., incorporated in the Republic of Malta on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2, 2009, </div>owner of the Maltese flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,020</div> DWT bulk carrier M/V “Pantelis” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2000</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 23, 2009. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2009, </div>ownership of the vessel was transferred to Pantelis Shipping Corp., incorporated in Liberia, and the vessel changed its flag to the Liberian flag.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Aggeliki Shipping Ltd., incorporated in the Republic of Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 21, 2010, </div>owner of the Liberian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,306</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2008</div> TEU container carrier M/V “Aggeliki P” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1998,</div> acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 21, 2010 </div>and sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 6, 2017.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Joanna Maritime Ltd., incorporated in Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 10, 2013, </div>owner of the Liberian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22,301</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,732</div> TEU container carrier M/V “Joanna” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1999</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 4, 2013. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 8, 2016, </div>the vessel has been renamed M/V “Vento di Grecale”. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 17, 2017 </div>the vessel was again renamed to M/V “Joanna”.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Eirini Shipping Ltd., incorporated in the Republic of Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2, 2014, </div>owner of the Liberian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">76,466</div> DWT bulk carrier M/V “Eirini P” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2004</div> and acquired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 26, 2014.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Ultra One Shipping Ltd., incorporated in the Republic of Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 21, 2013, </div>entered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 29, 2013, </div>into a shipbuilding contract with Yangzhou Dayang Shipbuilding Co., Ltd. and Sumec Marine Co., Ltd., for the construction of a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">63,500</div> DWT bulk carrier (Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY160,</div> to be named M/V “Alexandros P”). The shipbuilding contract was cancelled on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 29, 2016 </div>due to excessive construction delays. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 21, 2016, </div>an agreement was reached to acquire the vessel which was delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 16, 2017.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Ultra Two Shipping Ltd., incorporated in the Republic of Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 21, 2013, </div>entered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 29, 2013, </div>into a shipbuilding contract with Yangzhou Dayang Shipbuilding Co., Ltd. and Sumec Marine Co., Ltd., for the construction of a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">63,500</div> DWT bulk carrier (Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">DY161</div>). The shipbuilding contract was cancelled on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2, 2016 </div>due to excessive construction delays.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Kamsarmax One Shipping Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 4, 2014, </div>agreed to acquire from Klaveness Bulk AS, the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">82,000</div> DWT bulk carrier Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">YZJ2013</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1116</div> (named M/V “Xenia”). The vessel is a new-building and was delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 25, 2016.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Kamsarmax Two Shipping Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 4, 2014, </div>entered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 4, 2014, </div>into a shipbuilding contract with Jiangsu Tianyuan Marine Import & Export Co., Ltd., and Jiangsu Yangzijiang Shipbuilding Co., Ltd. and Jiangsu New Yangzi Shipbuilding Co., Ltd., for the construction of a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">82,000</div> DWT bulk carrier (Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">YZJ2013</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1153</div>). In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2016, </div>Kamsarmax Two Shipping Ltd. signed and amended agreement which provides it with an option to terminate the contract by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 (</div>subsequently, extended to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017) </div>without any additional cost. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2017, </div>the Company decided <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to exercise the option to terminate the contract but proceed with construction of the vessel (to be named M/V “Ekaterini”) which is expected to be delivered by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2018.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Jonathan John Shipping Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 19, 2016, </div>owner of the Panamanian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,581</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,439</div> TEU container carrier M/V “Aegean Express” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1997</div> and delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 29, 2016.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Areti Shipping Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 15, 2016, </div>owner of the Cypriot flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75,100</div> DWT bulk carrier M/V “Tasos” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2000</div> and delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 9, 2017.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> Shipping Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 30, 2013, </div>owner of the Marshall Islands flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,976</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,645</div> TEU container carrier M/V “RT Dagr” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1998</div> and delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 23, 2017. </div>The vessel was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 31, 2017.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Gregos Shipping Ltd., incorporated in the Republic of Liberia on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 25, 2017, </div>owner of the Liberian flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,600</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,788</div> TEU container carrier M/V “EM Astoria” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2004</div> and delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 20, 2017.</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in"> </div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Athens Shipping Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 18, 2017, </div>owner of the Marshall Island’s flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32,350</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,506</div> TEU container carrier M/V “EM Athens” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2000</div> and delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 29, 2017.</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in"> </div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Corfu Navigation Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 18, 2017, </div>owner of the Marshall Island’s flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">34,654</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,556</div> TEU container carrier M/V “EM Corfu” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2001</div> and delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 29, 2017.</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in"> </div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Oinousses Navigation Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 18, 2017, </div>owner of the Marshall Island’s flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32,350</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,506</div> TEU container carrier M/V “EM Oinousses” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2000</div> and delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 23, 2017.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Bridge Shipping Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 18, 2017, </div>owner of the Marshall Island’s flag <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">71,366</div> DWT / <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,610</div> TEU container carrier M/V “Akinada Bridge” which was built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2001</div> and delivered on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 21, 2017.</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-family: Symbol">·</div></td> <td style="text-align: justify">Eurocon Ltd., incorporated in the Republic of the Marshall Islands on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 18, 2017, </div>is a non-vessel owning subsidiary of Euroseas Ltd.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>the Company had a working capital deficit of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.45</div> million and has been incurring losses. The Company’s cash balance amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.12</div> million and cash in restricted retention accounts amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$9.08</div> million as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>the Company had committed to pay an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18.0</div> million in relation to the construction of M/V “Ekaterini”. An amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.25</div> million was paid on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 28, 2018, </div>with the balance payable upon delivery of the vessel, which is expected in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2018. </div>The Company intends to fund its working capital requirements and capital commitments via cash at hand, cash flow from operations, new mortgage debt financing for the vessel under construction, debt balloon payment refinancing and other equity offerings. The Company has signed a term sheet to draw a loan up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18.4</div> million for its newbuilding M/V "Ekaterini". In the unlikely event that these are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> sufficient the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>also draw down up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.00</div> million under a commitment from COLBY Trading Ltd., a company controlled by the Pittas family and affiliated with the Company’s Chief Executive Officer, and possible vessel sales (where equity will be released) or sale of the shipbuilding contract itself, if required, among other options. The Company believes it will have adequate funding through the sources described above and, accordingly, it believes it has the ability to continue as a going concern and finance its obligations as they come due over the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months following the date of the issuance of these financial statements. Consequently, the consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the following charterers individually accounted for more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of the Company’s revenues as follows:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div> <table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold"> </td> <td colspan="11" style="font-weight: bold; text-align: center">Year ended December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1pt solid">Charterer</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2015</td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2016</td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 25%; font-weight: bold">CMA CGM, Marseille</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: right"> </td> <td style="width: 22%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div></td> <td style="width: 1%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="width: 1%; text-align: right"> </td> <td style="width: 1%; text-align: right"> </td> <td style="width: 22%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14</div></td> <td style="width: 1%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="width: 1%; text-align: right"> </td> <td style="width: 1%; text-align: right"> </td> <td style="width: 22%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19</div></td> <td style="width: 1%; text-align: right">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">New Golden Sea Shipping Pte. Ltd., Singapore</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div></td> <td style="text-align: right">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">A/S Klaveness Chartering</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div></td> <td style="text-align: right">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">MSC Geneva</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="text-align: right">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Dampskibsselskabet Norden A/S</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="text-align: right">%</td> </tr> </table> </div></div>
385488
218909
64476
4120000
8715636
3208092
4115985
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Cash equivalents</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash equivalents are cash in bank accounts, time deposits or other certificates purchased with an original maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less.</div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Restricted cash</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Restricted cash reflects deposits with certain banks that can only be used to pay the current loan installments or are required to be maintained as a certain minimum cash balance per mortgaged vessel and amounts that are pledged, blocked or held as cash collateral.</div></div></div></div></div>
33405513
19182379
9348099
13198704
-14223134
-9834280
3850605
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.5in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.</div></div></td> <td style="text-align: justify"><div style="display: inline; font-weight: bold;">Commitments and Contingencies</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(a)</td> <td style="text-align: justify">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>a subsidiary of the Company, Alterwall Business Inc. owner of M/V “Ninos”, has a dispute with a fuel oil supplier who claimed a maritime lien against the vessel after the company which had time-chartered the vessel from the Company went bankrupt in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October </div>and failed to pay certain invoices. The vessel was arrested in Karachi in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2009 </div>and released after a bank guarantee for an amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.53</div> million, for which the bank has restricted an equal amount of the Company's cash which is presented within Restricted Cash, was provided on behalf of the Company. Legal proceedings continue. Although the Company believes it will be successful in its claim, it made a provision of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.15</div> million for any costs that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be incurred.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 40; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(b)</td> <td style="text-align: justify">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>Areti Shipping Ltd. has a dispute with Windrose SPS Shipping and Trading ("Windrose"), a charterer, regarding Windrose's failure to pay the balance of the charter fee of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$52,019</div> in relation to charter party agreement dated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 20, 2017. </div>Additionally, Areti Shipping Ltd. paid an amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$115,000</div> to a bunker supplier for portion of the total claim of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$179,281,</div> after facing an arrest of M/V "Tasos" in Brazil. The Company took the case to London arbitration and obtained an award of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$215,000.</div> The award has yet to be collected. The Company has hired Swiss lawyers in order to proceed with the recovery of the funds in Switzerland where Windrose is based. The Company's management believe that they will fully recover the amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$167,019</div> and hence <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> provision has been made.</td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.5in"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in">There are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> other material legal proceedings to which the Company is a party or to which any of its properties are subject, other than routine litigation incidental to the Company’s business. In the opinion of the management, the disposition of these lawsuits should <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material impact on the consolidated results of operations, financial position and cash flows.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">For the construction of M/V "Ekaterini" (Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">YZJ2013</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1153</div>), in accordance with the amended shipbuilding contract, Kamsarmax Two Shipping Ltd has contractual obligations of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18.0</div> million in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> remaining to be paid from the total contract price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$22.5</div> million. An amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.25</div> million has already been paid in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018, </div>with the balance payable upon delivery of the vessel, which is expected until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2018</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>future gross minimum revenues upon collection of hire under non-cancellable time charter agreements in excess of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> year relate to the M/V “Xenia” and total <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.0</div> million. In arriving at the future gross minimum revenues, the Company has deducted an estimated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> off-hire day per quarter Such off-hire estimate <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be reflective of the actual off-hire in the future. In addition the actual revenues could be affected by early delivery of the vessel by the charterers or any exercise of the charterers' options to extend the terms of the charters, which however cannot be estimated and hence <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> reflected above.</div></div>
0.03
0.03
200000000
200000000
10876112
11274126
326283
338230
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Other comprehensive income / (loss)</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> other comprehensive income / (loss) and accordingly comprehensive income / (loss) equals net income / (loss) for all periods presented. As such, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> statement of comprehensive income / (loss) has been presented.</div></div></div></div></div>
0.17
0.14
0.19
0.16
0.22
0.17
0.15
0.11
0.13
0.16
0.1
0.1
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Principles of consolidation</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements include the accounts of Euroseas Ltd. and its subsidiaries. Inter-company balances and transactions are eliminated on consolidation.</div></div></div></div></div>
18000000
1912407
2204784
698800
0.06
0.0295
0.03
0.0265
0.045
0.03
0.028
1103915
4840000
4440000
6360000
5640000
11600000
11600000
13120000
7900000
13333000
12399000
10383271
4550000
17500000
50356915
74412271
2000000
2800000
4750000
17500000
2000000
4250000
0.1
75000
280000
720000
720000
350000
725000
460000
467000
159743
100000
500000
800000
303000
400000
325000
653915
3160000
6360000
4920000
8000000
8980000
7900000
7262000
8785841
6200000
311000
11300000
353000
883112
72600
38400
74863
418034
426783
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt">2016</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt">2017</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-size: 10pt"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: justify; padding-left: 0.4pt"><div style="display: inline; font-size: 10pt">Balance, beginning of year</div></td> <td style="width: 1%"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 1%; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">418,034</div></div></td> <td style="width: 1%; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 1%"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 1%; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">426,783</div></div></td> <td style="width: 1%; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0.4pt"><div style="display: inline; font-size: 10pt">Write-off of loan commitment fees</div></td> <td><div style="display: inline; font-size: 10pt"> </div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(411,642</div></div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td><div style="display: inline; font-size: 10pt"> </div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="text-align: left"></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.4pt"><div style="display: inline; font-size: 10pt">Loan commitment fees</div></td> <td style="padding-bottom: 1pt"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">420,391</div></div></td> <td style="padding-bottom: 1pt; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">13,700</div></div></td> <td style="padding-bottom: 1pt; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0.4pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt">Reclassification as contra to loan upon drawdown</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0"><div style="display: inline; font-size: 10pt">-</div></div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0"><div style="display: inline; font-size: 10pt">(440,483</div></div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; padding-left: 0.4pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt">Balance, end of year</div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">426,783</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt"> </div></td> </tr> </table></div>
148697
338472
292024
491883
437322
879916
10995023
8788121
8372237
8788121
8372237
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Depreciation</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation is calculated on a straight line basis over the estimated useful life of the vessel with reference to the cost of the vessel, and estimated scrap value. Remaining useful lives of vessels are periodically reviewed and revised to recognize changes in conditions and such revisions, if any, are recognized over current and future periods. The Company estimates that its vessels have a useful life of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25</div> years from the completion of its construction.</div></div></div></div></div>
0.0197
0.0193
177998
177998
16631
16631
240181
240181
0.005
0.0095
0.0355
0.014
0.0175
0.0185
0.0232
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15.</div> Derivative Financial Instruments</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;">Interest rate swaps</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 17, 2014 </div>and on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 8, 2017 </div>respectively, the Company entered into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> interest rate swaps with EFG Eurobank – Ergasias S.A. (“Eurobank”) and HSBC Bank PLC (“HSBC”) on a notional amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.0</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.0</div> million respectively for each of the contracts, each in order to manage interest costs and the risk associated with changing interest rates. Under the terms of the swap, Eurobank makes a quarterly payment to the Company equal to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>-month LIBOR while the Company pays an adjustable rate averaging <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.97%</div> (Eurobank makes a quarterly payment to the Company equal to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>-month LIBOR while the Company pays the fixed rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.50%</div> until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 28, 2016 </div>then <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.95%</div> till <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 28, 2017 </div>and then <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.55%</div> till <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 28, 2019) </div>based on the relevant notional amount. Under the terms of the swap, HSBC makes a quarterly payment to the Company equal to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>-month LIBOR while the Company pays an adjustable rate averaging <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.93%</div> (HSBC makes a quarterly payment to the Company equal to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>-month LIBOR while the Company pays the fixed rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.40%</div> until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 8, 2018 </div>then <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.75%</div> till <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 8, 2019, </div>then <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.85%</div> until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 8, 2020 </div>and then <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.32%</div> till <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 8, 2022) </div>based on the relevant notional amount. One swap was effective from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 28, 2015 </div>to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> swap was effective from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 8, 2017 </div>to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>respectively.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The interest rate swaps did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> qualify for hedge accounting as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify; text-indent: -42.55pt"> </div> <div> <table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border: Black 1pt solid">Derivatives not designated as hedging instruments</td> <td style="border: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance Sheet Location</div></div></td> <td style="border: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><div style="display: inline; font-weight: bold;">December 31, 2016</div></div></td> <td style="border: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><div style="display: inline; font-weight: bold;">December 31, 2017</div></div></td> </tr> <tr style="vertical-align: bottom"> <td style="border: Black 1pt solid"> </td> <td style="border: Black 1pt solid"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Interest rate swap contracts</td> <td style="width: 24%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Current liabilities – Derivatives</div></td> <td style="width: 22%; border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 22%; border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">177,998</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; border: Black 1pt solid"> </td> <td style="padding-bottom: 1pt; border: Black 1pt solid"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Interest rate swap contracts</td> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Long-term liabilities – Derivatives</div></td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,181</div></td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,631</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; border: Black 1pt solid"> </td> <td style="padding-bottom: 1pt; border: Black 1pt solid"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Total derivative liabilities</td> <td style="padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,181</div></td> <td style="border: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">194,629</div></td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div> <table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border: Black 1pt solid">Derivatives not designated as hedging instruments</td> <td style="border: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Location of gain (loss) recognized</div></div></td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid">Year Ended December 31, 2015</td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid">Year Ended December 31, 2016</td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid">Year Ended December 31, 2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Interest rate swap contracts– Fair value</td> <td style="width: 19%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin-top: 0; margin-bottom: 0">(Loss) / gain on derivatives, net <br /></div></div></td> <td style="width: 17%; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45,669</div></td> <td style="width: 17%; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,921</div></td> <td style="width: 17%; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45,552</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Interest rate swap contracts - Realized (loss) / gain</td> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(Loss) / gain on derivatives, net</div></td> <td style="text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(307,343</div></td> <td style="text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(132,075</div></td> <td style="text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,785</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Total <div style="display: inline; font-size: 10pt">(Loss) / gain <div style="display: inline; font-weight: bold;">on derivatives</div></div></td> <td style="padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(261,674</div></td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(119,154</div></td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">62,337</div></td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <!-- Field: Page; Sequence: 45; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Freight Forward Agreements (“FFA”)</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2017, </div>the Company entered into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> FFA contracts on the Baltic Panamax Index (“BPI”) for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> calendar months of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90</div> days at an average time charter equivalent rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,000</div> per day. <div style="display: inline; font-size: 10pt">The </div>contracts are settled on a monthly basis using the average of the BPI for the days of the month the BPI is published. The Company receives a payment if the average BPI for the month is below the contract rate equal to the difference of the contract rate less the average BPI for the month times the number of contract days sold; if the average BPI for the month is greater than the contract rate the Company makes a payment equal to the difference of the average BPI for the month less the contract rate times the number of contract days sold. If the Company buys contracts previously sold (or the opposite) the Company receives or pays the difference of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> rates for the period covered by the contracts.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The FFA contracts did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> qualify for hedge accounting. The Company follows guidance relating to “Fair value measurements” to calculate the fair value of the FFA contracts (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div>).</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div> <table style="; border-collapse: collapse; font-size: 10pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 33%; border: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">FFA contracts not designated as hedging instruments</div></div></td> <td style="width: 34%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Location of gain (loss) recognized</div></div></td> <td style="width: 33%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Year Ended December 31, 2017</div></div></td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt">FFA contracts – Fair value</div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(Loss)/gain on derivatives, net</div></div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(781)</div></div></td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt">FFA contracts – Realized gain/(loss)</div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(Loss)/gain on derivatives, net</div></div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Total loss on derivatives</div></div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">(781)</div></div></div></td> </tr> </table> </div></div>
-261674
-119154
61556
45669
12921
45552
-307343
-132075
16785
-261674
-119154
62337
-781
-781
240181
194629
177998
240181
16631
2
3
2
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Derivative financial instruments</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Derivative instruments are recorded in the balance sheet as either an asset or liability measured at its fair value with changes in the instruments' fair value recognized as either a component in other comprehensive income if specific hedge accounting criteria are met in accordance with guidance relating to “Derivatives and Hedging” or in earnings if hedging criteria are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> met.</div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.5in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12.</div></div></td> <td style="text-align: justify"><div style="display: inline; font-weight: bold;">Stock Incentive Plan</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 31, 2014, </div>the Board of Directors approved the Company’s <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div> Stock Incentive Plan (the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">“2014</div> Plan”). The plan is administered by the Board of Directors which can make awards totaling in aggregate up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,500,000</div> shares, respectively over <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> years after the plan’s adoption date. The persons eligible to receive awards under the plan are officers, directors, and executive, managerial, administrative and professional employees of the Company or Eurobulk or Eurochart, (collectively, “key persons”) as the Board, in its sole discretion, shall select based upon such factors as the Board shall deem relevant. Awards <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be made under the plan in the form of incentive stock options, non-qualified stock options, stock appreciation rights, dividend equivalent rights, restricted stock, unrestricted stock, restricted stock units and performance shares. Details of awards granted under the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div> Plan during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> year period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>are noted below.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">a)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 6, 2015 </div>an award of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">68,400</div> non-vested restricted shares, was made to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19</div> key persons of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> vested on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> vested on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017; </div>awards to officers and directors amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,040</div> shares and the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28,360</div> shares were awarded to employees of Eurobulk.</td> </tr> </table> <div style=" margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">b)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 3, 2016 </div>an award of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">82,080</div> non-vested restricted shares, was made to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19</div> key persons of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> vested on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 1, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> will vest on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 1, 2018; </div>awards to officers and directors amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">48,048</div> shares and the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">34,032</div> shares were awarded to employees of Eurobulk.</td> </tr> </table> <div style=" margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </div> <div style=" margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">c)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,2017</div> an award of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,270</div> non-vested restricted shares, was made to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> key persons of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> will vest on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> will vest on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2019; </div>awards to officers and directors amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">57,700</div> shares and the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42,570</div> shares were awarded to employees of Eurobulk.</td> </tr> </table> <div style=" margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></div> <div style=" margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></div> <div style=" margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <!-- Field: Page; Sequence: 42; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All non-vested restricted shares are conditional upon the grantee’s continued service as an employee of the Company, Eurobulk or as a director until the applicable vesting date. The grantee does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have the right to vote on such non-vested restricted shares until they vest or exercise any right as a shareholder of these shares, however, the non-vested shares will accrue dividends as declared and paid which will be retained by the Company until the shares vest at which time they are payable to the grantee. As non-vested restricted share grantees accrue dividends on awards that are expected to vest, such dividends are charged to retained earnings.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company estimates the forfeitures of non-vested restricted shares to be immaterial and hence accounts for forfeitures as they occur.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The compensation cost that has been charged against income for awards was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$306,111,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$294,341</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$116,569,</div> for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. The Company has used the straight-line method to recognize the cost of the awards.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">A summary of the status of the Company’s non-vested shares as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>and changes during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>are presented below:</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div> <table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid; text-align: left">Non-vested Shares</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Weighted-Average Grant-Date Fair Value</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 32%; border-bottom: Black 1pt solid; text-align: left">Non-vested on January 1, 2017</td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: center"> </td> <td style="width: 31%; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">116,280</div></td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: center"> </td> <td style="width: 30%; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.08</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">Granted</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,270</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.76</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">Vested</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(72,152)</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.53</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">Forfeited</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,036)</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.78</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">Non-vested on December 31, 2017</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">140,362</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.60</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>there was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$201,346</div> of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan and is expected to be recognized over a weighted-average period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.779</div> years. The total fair value at grant-date of shares granted during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$285,912,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$99,317</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$176,475,</div> respectively.</div></div>
4900000
2814046
4914782
1800000
1639149
1725699
1808811
1639149
1639149
1725699
1725699
1808811
1808811
11539
1280577
11539
1280577
-2.45
-5.63
-0.71
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Earnings / (loss) per common share</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic earnings/(loss) per share is computed by dividing net income/(loss) attributable to common shareholders, after the deduction of dividends paid to preferred shareholders, by the weighted-average number of common shares outstanding during the period. The weighted-average number of common shares outstanding does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include any potentially dilutive securities or any non-vested restricted shares of common stock. These non-vested restricted shares, although classified as issued and outstanding as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> are considered contingently returnable until the restrictions lapse and will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be included in the basic net income per share calculation until the shares are vested.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Diluted earnings / (loss) per share gives effect to all potentially dilutive securities to the extent that they are dilutive, using the treasury stock method. The Company uses the treasury stock method for non-vested restricted shares, while for the preferred shares issued the Company uses the if-converted method to assess the dilutive effect.</div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0.5in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13.</div></div></td> <td style="text-align: justify"><div style="display: inline; font-weight: bold;">Earnings / (Loss) Per Share</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic and diluted earnings / (loss) per common share are computed as follows:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2015</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2016</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-left: 0.4pt">Income:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 61%; text-align: left; padding-left: 0.4pt">Net loss attributable to common shareholders</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(15,687,132</div></td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(45,946,822</div></td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,903,371</div></td> <td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-left: 0.4pt">Basic and diluted earnings per share:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt">Weighted average common shares – <br />Outstanding</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,410,794</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,165,703</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,067,524</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 0.4pt">Basic and diluted loss per share</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2.45</div></td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(5.63</div></td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.71</div></td> <td style="text-align: left">)</td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the effect of the non-vested stock awards and of Series B Preferred Shares was anti-dilutive. The number of dilutive securities was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22,443,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div> shares in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div></div>
201346
P284D
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Other investments </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investments over which the Company believes it does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> exercise any influence are carried at the book value and are adjusted to recognize accrued income and are adjusted for impairment whenever facts and circumstances determine that they are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recoverable. The amount of the adjustment is included in the determination of net income / (loss) (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div>).</div></div></div></div></div>
25000000
14000000
100000
14100000
14071075
14071075
0.14286
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 35.45pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16.</div></div></td> <td><div style="display: inline; font-weight: bold;">Investment in Joint Venture and Other Investment</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 25, 2010, </div>the Company entered into a partnership (the “Joint Venture”) with companies managed by Eton Park Capital Management, L.P. ("Eton Park") and Rhône Capital III L.P. ("Rhône") to form Euromar LLC. Eton Park’s investments are made through Paros Ltd., a Cayman Islands exempted company, and Rhône’s investments are made through the Cayman Islands limited companies All Seas Investors I Ltd., All Seas Investors II Ltd., and the Cayman Islands exempted limited partnership All Seas Investors III LP. Euromar LLC has been set up to acquire, maintain, manage, operate and dispose of shipping vessels. The Company invested <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25.0</div> million for a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14.286%</div> interest in the Joint Venture, while Eton Park and Rhône each invested to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$75.0</div> million for a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42.857%</div> interest for a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$175</div> million. Management of the vessels and various administrative services pertaining to the vessels are performed by Euroseas and its affiliates; strategic, financial and reporting services are provided by Euroseas. For these services, Euroseas earned <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$240,000</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015.</div> These amounts are recorded in “Related party revenue” under “Revenues”.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none">The Company accounts for its investment in the Joint Venture using the equity method of accounting despite the fact that it is a minority partner as it has significant influence in the operations and management of Euromar LLC (see “Significant Accounting Policies” – Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>). The Company’s share of the results of operations of the Joint Venture is included in the “Consolidated statements of operations” as “Equity loss in joint venture”. </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font-size: 10pt; text-transform: uppercase; text-align: justify; text-indent: 0in; margin: 0pt 0"><div style="display: inline; text-transform: none">The Company’s share of the results of operations of the Joint Venture amounted to a loss of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.2</div> million, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.4</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0</div> million for the years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. Euromar LLC has restructured its credit facilities between <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> As a consequence of the restructured credit facilities and continued adverse market developments, during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company determined in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016 </div>that its investment in the joint venture was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recoverable and as a result it recorded a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$14.0</div> million impairment and recorded an additional impairment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.1</div> million in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016 </div>for a total of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$14.1</div> million for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>which is presented in the line “Impairment in joint venture” in the “Consolidated statements of operations”. The carrying value of the Company’s investment in Euromar LLC as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div> and is presented in the “Investment in joint venture” in the “Consolidated balance sheets”. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017, </div>the Company acquired <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the vessels of Euromar with the consent of its lender by assuming debt equal to the market value of the vessel with any excess indebtedness to the lender written off and Euromar released from any guarantees to the lender. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2017, </div>Euroseas acquired the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">85.714%</div> interest in Euromar it did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> already own for nominal cost. As a result of the acquisition, Euromar, which was a joint venture among the Company and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> private equity firms, became a wholly-owned subsidiary of the Company. However, Euromar vessels were substantially under the control of its lenders. The Company provided <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> guarantees to Euromar's lenders, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">none</div> of the lenders had any recourse against the Company. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>all vessels of Euromar were sold with the consent of Euromar’s lenders; all proceeds from such sales and any funds in excess of other liabilities were applied towards the indebtedness of Euromar with any excess indebtedness written off; Euromar was released from all its corporate guarantees to its lenders. As a result of the above, Euromar has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been consolidated in our results nor gain or loss from it has been recognized.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <!-- Field: Page; Sequence: 47; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 15, 2013 </div>by and among the Company, Paros Ltd., All Seas Investors I Ltd., All Seas Investors II Ltd. and All Seas Investors III LP, a Contribution Agreement was signed. Under this agreement Euroseas agreed to deposit an amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,000,000</div> into an escrow account (“Escrowed Funds”) controlled by Paros Ltd., All Seas Investors I Ltd., All Seas Investors II Ltd. and All Seas Investors III LP which can distribute part or all of the funds to Euromar LLC until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018. </div>With the distribution of the Escrowed Funds, Euromar LLC will issue to the Company (or a subsidiary thereof) units representing a preferred membership interest in Euromar LLC (each, a “Preferred Unit”) in respect of the Escrowed Funds based on the following ratio: <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> Preferred Unit in exchange for each <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,000</div> of the Escrowed Cash, or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,000</div> Preferred Units in total (assuming <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5</div> million of Escrowed Cash). In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2014, </div>in relation to the acquisition of a vessel by Euromar LLC, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,000,000</div> of the Escrowed Funds was contributed into Euromar LLC .The Company is entitled to a “payment-in-kind” dividend at a rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19%</div> per year compounded annually from the date of issuance. Euromar LLC can return any undistributed Escrowed Funds to the Company after the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> anniversary of the agreement while after the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fifth</div> anniversary any undistributed Escrowed Funds will be returned to the Company and Preferred Units will be issued by Euromar LLC for any accrued dividends at the time. Euroseas recorded accrued dividend income of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,212,938,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,024,714</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0</div> for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively which is presented in the “Consolidated statements of operations” as “Other Investment Income”. In the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourth</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company determined that its “Other investment” was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recoverable except for the undistributed Escrowed Funds (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,000,000</div>) and as a result it recorded a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,421,452</div> impairment which is presented in the “Consolidated statements of operations” for the current period. The Company stopped recognizing dividend income from its “Other investment” from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 1, 2016. </div>The Escrowed Funds were returned to Euroseas in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2017.</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div> <table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="text-align: left; border: Black 1pt solid">In USD</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-weight: bold;">Other <br /> Investment</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 90%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-weight: bold;">Balance, January 1, 2015</div></td> <td style="width: 10%; border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">6,183,800</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Total gain for period included in Investment income</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,212,938</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-weight: bold;">Balance, December 31, 2015</div></td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">7,396,738</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Total gain for the period included in Investment income</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,024,714</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Impairment of other investment</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,421,452</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Balance, December 31, 2016</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,000,000</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Return of funds, September 22, 2017</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,000,000</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-weight: bold;">Balance, December 31, 2017</div></td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> </tr> </table> </div></div>
0
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Investment in Joint Venture </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investments in companies over which the Company believes it exercises significant influence over operating and financial policies, are accounted for using the equity method. Under this method the investment is carried at cost, and is adjusted to recognize the investor’s share of the earnings or losses of the investee after the date of acquisition and is adjusted for impairment whenever facts and circumstances determine that a decline in fair value below the cost basis is other than temporary. The amount of the adjustment is included in the determination of net income / (loss). The investment is also adjusted to reflect the Company’s share of changes in the investee’s capital.</div></div></div></div></div>
19
5000000
4000000
4000000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurement as of December 31, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</td> <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(Level 1)</td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">(Level 2)</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">(Level 3)</div></div></td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="3" style="text-align: center"> </td> <td> </td> <td colspan="3" style="text-align: right"> </td> <td> </td> <td colspan="3"> </td> <td> </td> <td colspan="3"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; text-decoration: underline">Liabilities</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><div style=" font-size: 10pt; margin: 0pt 0">Interest rate swap contracts, current portion</div> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">177,998</div></div> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">177,998</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Interest rate swap contracts,current and long-term portion</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,631</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,631</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurement as of December 31, 2016</td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total,</td> <td style="font-weight: bold; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(Level 1)</td> <td style="font-weight: bold; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(Level 2)</td> <td style="font-weight: bold; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(Level 3)</td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="3" style="text-align: center"> </td> <td> </td> <td colspan="3" style="text-align: right"> </td> <td> </td> <td colspan="3"> </td> <td> </td> <td colspan="3"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; text-decoration: underline">Liabilities</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Interest rate swap contracts, long-term portion</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,181</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,181</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Level 1</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;">Level 2</div></div></td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;">Level 3 </div></div></td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Loss 2016</td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Level 1</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;">Level 2</div></div></td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;">Level 3 </div></div></td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Loss 2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Vessels held for sale</td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,946,923</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,946,923</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,924,668</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,000,000</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,000,000</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,595,819</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other investment</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,421,452</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Investment in joint venture</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,071,075</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Vessel profit participating liability</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">1,297,100</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">1,297,000</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Fair value of time charter acquired</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company records all identified tangible and intangible assets or any liabilities associated with the acquisition of a vessel at fair value. Where vessels are acquired with existing time charters, the Company determines the present value of the difference between: (i) the contractual charter rate and (ii) the prevailing market rate for a charter of equivalent duration. In discounting the charter rate differences in future periods, the Company uses its Weighted Average Cost of Capital (WACC) adjusted to account for the credit quality of the charterer. The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction and increase, respectively, to voyage revenues over the remaining term of the charter.</div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Financing costs</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Loan arrangement fees are deferred and amortized to interest expense over the duration of the underlying loan using the effective interest method. Unamortized fees relating to loans repaid or refinanced are expensed in the period the repayment or refinancing occurs. Deferred offering expenses are charged against paid-in capital when financing is completed or expensed to other general and administrative expenses when financing efforts are terminated.</div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18.</div> Financial Instruments</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.7pt">The principal financial assets of the Company consist of cash and cash equivalents, restricted cash, trade accounts receivable and other receivables. The principal financial liabilities of the Company consist of long-term bank loans, derivatives including interest rate swaps, trade accounts payable accrued expenses and due to related companies.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Interest rate risk </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-style: italic;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company enters into interest rate swap contracts as economic hedges to manage some of its exposure to variability in its floating rate long term debt. Under the terms of the interest rate swaps the Company and the bank agreed to exchange, at specified intervals the difference between a paying fixed rate and receiving floating rate interest amount calculated by reference to the agreed principal amounts and maturities. Interest rate swaps allow the Company to convert long-term borrowings issued at floating rates into equivalent fixed rates. Even though the interest rate swaps were entered into for economic hedging purposes, as noted in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> they do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> qualify for hedge accounting, under the guidance relating to <div style="display: inline; font-style: italic;">Derivatives and Hedging</div>, as the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have currently written contemporaneous documentation identifying the risk being hedged and, both on a prospective and retrospective basis, performing an effectiveness test to support that the hedging relationship is highly effective. Consequently, the Company recognizes the change in fair value of these derivatives in the “(Loss)/ gain on derivatives, net” in the “Consolidated statements of operations.” As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> open swap contracts for a notional amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15.0</div> million.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify; text-indent: -42.55pt"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify; text-indent: -42.55pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Concentration of credit risk</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify; text-indent: -42.55pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Financial instruments, which potentially subject the Company to significant concentration of credit risk consist primarily of cash and trade accounts receivable. The Company places its temporary cash investments, consisting mostly of deposits, with high credit qualified financial institutions. The Company performs periodic evaluation of the relative credit standing of these financial institutions that are considered in the Company’s investment strategy. The Company limits its credit risk with trade accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and generally does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> require collateral for its trade accounts receivable.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><div style="display: inline; font-weight: bold;"> </div></div> <!-- Field: Page; Sequence: 51; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify; text-indent: -42.55pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Fair value of financial instruments</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.55pt; text-align: justify; text-indent: -42.55pt"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows guidance relating to “Fair value measurements”, which establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. This statement enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value will be classified and disclosed in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the following <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> categories:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1:</div> Quoted market prices in active markets for identical assets or liabilities;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2:</div> Observable market based inputs or unobservable inputs that are corroborated by market data;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3:</div> Unobservable inputs that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> corroborated by market data.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The fair value of the Company’s investments in FFA contracts are determined based on quoted prices in active markets and therefore are considered Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> of the fair value hierarchy as defined in guidance relating to "Fair value measurements".</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the Company’s interest rate swap agreements is determined using a discounted cash flow approach based on market-based LIBOR swap rates. LIBOR swap rates are observable at commonly quoted intervals for the full terms of the swaps and therefore are considered Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> items. The fair values of the interest rate swap determined through Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> of the fair value hierarchy as defined in guidance relating to "Fair value measurements" are derived principally from or corroborated by observable market data. Inputs include quoted prices for similar assets, liabilities (risk adjusted) and market-corroborated inputs, such as market comparables, interest rates, yield curves and other items that allow value to be determined.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Recurring Fair Value Measurements</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurement as of December 31, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</td> <td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(Level 1)</td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">(Level 2)</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">(Level 3)</div></div></td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="3" style="text-align: center"> </td> <td> </td> <td colspan="3" style="text-align: right"> </td> <td> </td> <td colspan="3"> </td> <td> </td> <td colspan="3"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; text-decoration: underline">Liabilities</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"><div style=" font-size: 10pt; margin: 0pt 0">Interest rate swap contracts, current portion</div> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">177,998</div></div> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">177,998</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Interest rate swap contracts,current and long-term portion</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,631</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,631</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> </tr> </table> </div> <div style=" margin: 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurement as of December 31, 2016</td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total,</td> <td style="font-weight: bold; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(Level 1)</td> <td style="font-weight: bold; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(Level 2)</td> <td style="font-weight: bold; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">(Level 3)</td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="3" style="text-align: center"> </td> <td> </td> <td colspan="3" style="text-align: right"> </td> <td> </td> <td colspan="3"> </td> <td> </td> <td colspan="3"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; text-decoration: underline">Liabilities</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Interest rate swap contracts, long-term portion</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,181</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid">$</td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,181</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> <td style="text-align: right; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left; border-bottom: Black 1pt solid"> </td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 52; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Asset Measured at Fair Value on a Non-recurring Basis </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">Vessels Held for Sale (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>) are measured at fair value less estimated costs to sell. The fair value is based, for M/V “Eleni P” on the price agreed by the Company to sell the vessel to unrelated parties in a transaction that was concluded in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>for M/V “Aggeliki P” on the scrap price per ton as quoted by industry sources in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2017 </div>with the vessel sold in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2017, </div>and for M/V “Monica P” on market price estimates for sale to unrelated parties provided by Eurochart and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party brokers also in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2017, </div>respectively and are considered good estimates of the fair value of the vessels as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 20, 2016, </div>the Company agreed to sell for scrap M/V "Eleni P” with a carrying amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8.74</div> million, which was classified as vessel held for sale and written down to its fair value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.95</div> million, less estimated costs to sell of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.13</div> million resulting in a loss of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.92</div> million (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>), which was included in the accompanying consolidated statements of operations under “Loss on write down of vessel held for sale”. The fair value of M/V “Monica P” is considered Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 15, 2017, </div>the Company has also entered into a profit sharing agreement with Credit Agricole whereby it will share with the bank <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35%</div> of the excess of the fair market value of M/V “EM Astoria” over the outstanding loan when the vessel is sold or when the loan matures. As a result of the lender's entitlement to participate in the appreciation of the market value of the mortgaged vessel, the Company has recognized a participation liability of amount <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,297,100,</div> presented in "Vessel profit participation liability" in the accompanying “Consolidated balance sheets” as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>with a corresponding debit to a debt discount account, presented contra to the loan balance. The fair value of this participation agreement is considered Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,</div> as it directly depends on the fair value or expected fair value of M/V “EM Astoria”.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>the vessel M/V “Monica P” with a carrying amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8.23</div> million, was classified as vessel held for sale and written down to its fair value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.0</div> million, less estimated costs to sell of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.10</div> million, resulting in a loss of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.33</div> million (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>), which was included in the accompanying consolidated statements of operations under “Loss on write down of vessel held for sale”. The fair value of M/V “Monica P” is considered Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>the vessel M/V “Aggeliki P” with a carrying amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.39</div> million, was classified as vessel held for sale and written down to its fair value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.3</div> million, less estimated costs to sell of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.17</div> million, resulting in a loss of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.26</div> million (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>), which was included in the accompanying consolidated statements of operations under “Loss on write down of vessels held for sale”. The fair value of M/V “Aggeliki P” is considered Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016, </div>the Company concluded that its equity investment in Euromar shown under “Investment in joint venture” was impaired and wrote it down to its estimated fair value. The impairment was due both to changes in the terms of its investment during the period as well as continuing less favorable market developments. The change in the terms of the Company’s investment resulted from the conclusion of loan restructuring agreements between Euromar and its lenders that provided the latter with increased payments before any capital is returned to Euromar’s partners, which include the Company, and, in addition, participation of the lenders in the profits of and any distributions made by Euromar. The fair value of the Company’s “Investment in joint venture” is considered a Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> item (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div> – “Investment in Joint Venture and Other Investment”).</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The key input that determines the fair value of the Company’s “Investment in joint venture” is the cost of capital for investments in containership vessels which is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> observable and hence is considered a level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> item. The Company estimated the cost of capital in the range of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> p.a. based on its return threshold in considering investments in containerships which, in turn take into consideration the historical returns and volatility of such investments. Additional inputs required include earnings and operating cost assumptions for each vessel as well other expenses and liabilities of Euromar. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the Company used the Discounted Cash Flow technique and a cost of capital of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.5%</div> p.a. to calculate the fair value of its equity investment in Euromar.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify">Furthermore, as a result of the same analysis described above, the Company determined that the fair value of its “Other investment”, which consists of preferred units in Euromar was also impaired and recognized a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,421,452</div> impairment as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>which is shown under “Impairment in other investment”. The key input that determined the fair value of the Company’s “Other investment” was the required rate of return of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19%</div> p.a. for preferred equity investments in investment opportunities of similar risk which was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> observable and hence is considered a Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> item. The Company considered the initial dividend rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19%</div> p.a. as the appropriate rate for its fair value calculation and monitored market conditions for similar investment and other possible developments specific to its investment that might provide indications for changes in the required rate of return it used in its fair value measurement. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the Company did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> identify indications that would require changes in the required rate of return. The fair value of the Company’s other investment is calculated using the discounted cash flow technique.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><div style="display: inline; font-weight: bold;">Nonrecurring Fair Value Measurements at Reporting Date</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><div style="display: inline; font-weight: bold;"> </div></div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2017</td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Level 1</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;">Level 2</div></div></td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;">Level 3 </div></div></td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Loss 2016</td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Level 1</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;">Level 2</div></div></td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><div style="display: inline; font-weight: bold;">Level 3 </div></div></td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Loss 2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Vessels held for sale</td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,946,923</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,946,923</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,924,668</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,000,000</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,000,000</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,595,819</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other investment</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,421,452</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Investment in joint venture</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,071,075</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Vessel profit participating liability</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">1,297,100</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">1,297,000</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <!-- Field: Page; Sequence: 54; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.7pt">The estimated fair values of the Company’s financial instruments such as cash and cash equivalents and restricted cash approximate their individual carrying amounts as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> due to their short-term maturity. Cash and cash equivalents and restricted cash are considered Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> items as they represent liquid assets with short-term maturities. The fair value of the Company’s total borrowings approximates <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$73.7</div> million as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million less than its carrying value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$74.4</div> million. The fair value of the long term borrowings are estimated based on current interest rates offered to the Company for similar loans. LIBOR rates are observable at commonly quoted intervals for the full terms of the loans and hence fair value of the long-term bank loans are considered Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> items in accordance with the fair value hierarchy due to their variable interest rate, being the LIBOR.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">For the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the fair value of the Company’s “Other investment” was impaired by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.4</div> million and presented in the “Consolidated balance sheets” with a value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.0</div> million which represents actual cash existing in an escrow account. The Company stopped recognizing income from “Other investment” in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016. </div>The amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.0</div> million of the escrowed funds, were actually returned to Euroseas in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2017.</div></div></div>
22421
-41402
-40762
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Foreign currency translation</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s functional currency as well as the functional currency of all its subsidiaries is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the balance sheet date. Income and expenses denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the date of the transaction. The resulting exchange gains and/or losses on settlement or translation are included in the accompanying consolidated statements of operations.</div></div></div></div></div>
-3200000
10597
500000
300000
1400000
461586
10597
803811
3327061
3472422
3419363
0.73
0.42
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Impairment of long-lived assets</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews its long-lived assets “held and used” for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be recoverable. When the estimate of future undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company evaluates the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset. 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.</div></div></div></div></div>
-2200000
-2400000
0
-2158393
-2444627
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.</div> Income Taxes</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the laws of the countries of the companies’ incorporation and/or vessels’ registration, the companies are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> subject to tax on international shipping income, however, they are subject to registration and tonnage taxes, which have been included in “Vessel operating expenses” in the accompanying “Consolidated statements of operations.”</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the United States Internal Revenue Code of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1986,</div> as amended (the "Code"), the U.S. source gross transportation income of a ship-owning or chartering corporation, such as the Company, is subject to a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%</div> U.S. Federal income tax without allowance for deduction, unless that corporation qualifies for exemption from tax under Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">883</div> of the Code and the Treasury Regulations promulgated thereunder. U.S. source gross transportation income consists of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> of the gross shipping income that is attributable to transportation that begins or ends, but that does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> both begin and end, in the United States</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; color: Black"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company qualified for this exemption in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015.</div> For <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> the Company did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> qualify for this exemption. The Company is subject to an effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2%</div> United States federal tax on the U.S. source shipping income that is attributable to the transport of cargoes to or from the United States which is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> considered an income tax. The amount of this tax for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$28,475</div> and for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31 ,2017, </div>is estimated at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$44,268.</div> The amount of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> tax was paid on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 16, 2017 </div>and was recorded within "Vessel operating expenses" in the accompanying consolidated statements of operations when paid. The amount for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet been paid.</div></div>
386671
-360976
738684
54673
-8447
779054
-1262798
588420
235412
-781714
23842
47168
-341525
-24802
442594
-823105
-311164
1269038
-293990
-245079
-145173
-172725
-3108
147161
1900607
152473
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Insurance claims and insurance proceeds</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Claims receivable are recorded on the accrual basis and represent the amounts to be received, net of deductibles, incurred through each balance sheet date, for which recovery from insurance companies is probable and the claim is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> subject to litigation. Any remaining costs to complete the claims are included in accrued liabilities. Insurance proceeds are recorded according to type of claim that gives rise to the proceeds in the consolidated statements of operations and the consolidated statements of cash flow.</div></div></div></div></div>
1486534
2531999
3372269
26656
22330
37972
1336345
1918673
2988806
50556
50556
1352737
1727186
2637715
310389
661480
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 35.45pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div></div></td> <td style="text-align: justify"><div style="display: inline; font-weight: bold;">Inventories </div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Inventories consisted of the following:</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2016</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2017</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 33%">Lubricants</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 31%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">788,426</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 30%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,526,221</div></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Victualing</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">140,716</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">118,988</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid">Bunkers</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">362,137</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: normal; padding-bottom: 1pt; text-indent: 0in; border-bottom: Black 1pt solid">Total</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,291,279</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,645,209</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> </table> </div></div>
788426
1526221
140716
118988
362137
1291279
1645209
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Inventories</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Inventories are stated at the lower of cost and net realizable value. Inventories are valued using the FIFO (First-In First-Out) method.</div></div></div></div></div>
1212938
1024714
0
1212938
1024714
1212938
1024714
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="text-align: left; border: Black 1pt solid">In USD</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-weight: bold;">Other <br /> Investment</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 90%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-weight: bold;">Balance, January 1, 2015</div></td> <td style="width: 10%; border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">6,183,800</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Total gain for period included in Investment income</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,212,938</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-weight: bold;">Balance, December 31, 2015</div></td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">7,396,738</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Total gain for the period included in Investment income</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,024,714</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Impairment of other investment</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,421,452</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Balance, December 31, 2016</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,000,000</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Return of funds, September 22, 2017</td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,000,000</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-weight: bold;">Balance, December 31, 2017</div></td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> </tr> </table></div>
4000000
6183800
7396738
55781792
80021604
143693504
162329561
3279
178308
12508
11174635
18532597
44607157
61489007
5000
0.009
150000
0
4840000
7080000
12850000
11600000
74412271
5549218
12170528
73700000
7728972
12862000
934000
14601000
14851327
23434972
44366976
60175276
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 35.45pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.</div></div></td> <td><div style="display: inline; font-weight: bold;">Long-Term Debt</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This consists of bank loans of the ship-owning companies and is as follows:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div> <table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1pt solid">Borrower</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, <br /> 2016</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, <br /> 2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; text-align: left">Xingang Shipping Ltd. / Joanna Maritime Ltd.</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: center"> </td> <td style="width: 10%; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(a)</div></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,103,915</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Pantelis Shipping Corp.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(b)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,840,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,440,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Noumea Shipping Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(c)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,360,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,640,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Eirini Shipping Ltd. / Areti Shipping Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(d)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,600,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,600,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Allendale Investments S.A. / Alterwall Business Inc. / Manolis Shipping Ltd. / Saf Concord Shipping Ltd. / Aggeliki Shipping Ltd. /Eternity Shipping Company / Jonathan John Shipping Ltd. / Joanna Maritime Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(e)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,120,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,900,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Kamsarmax One Shipping Ltd</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(f)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,333,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,399,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Ultra One Shipping Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(g)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,383,271</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gregos Shipping Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(h)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,550,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Oinousses Navigation Ltd. / Corfu Navigation Ltd. / Bridge Shipping Ltd. / Athens Shipping Ltd.</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(i)</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,500,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50,356,915</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,412,271</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Less: Current portion</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(5,697,915</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(12,862,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Long-term portion</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(44,659,000</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(61,550,271</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred charges, current portion</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148,697</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">338,472</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred charges, long-term portion</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">292,024</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">491,883</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Debt discount, current portion</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">353,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Debt discount, long-term portion</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">883,112</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Long-term debt, current portion net of deferred charges and debt discount</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,549,218</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,170,528</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Long-term debt, long-term portion net of deferred charges and debt discount</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44,366,976</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60,175,276</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Loan from related party</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 1pt solid; text-align: left; padding-bottom: 1pt">Euroseas Ltd.</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(j)</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,000,000</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-indent: -35.45pt"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <!-- Field: Page; Sequence: 32; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-indent: -35.45pt"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">None</div> of the above loans is registered in the U.S. The future annual loan repayments are as follows:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div> <table style="; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="border-bottom: Black 1pt solid">To December 31:</td> <td style="border-bottom: Black 1pt solid; padding-left: 0.5in; text-align: justify"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="text-align: justify">2018</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,862,000</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify">2019</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">23,434,972</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="text-align: justify">2020</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,851,327</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify">2021</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,601,000</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="text-align: justify">2022</td> <td style="padding-left: 0.5in; text-align: justify"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">934,000</div></td> <td style="text-align: right"> </td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="text-align: justify; width: 49%">Thereafter</td> <td style="padding-left: 0.5in; text-align: justify; width: 6%"> </td> <td style="text-align: right; width: 43%"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,728,972</div></td> <td style="text-align: right; width: 2%"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-weight: bold;">Total</div></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-left: 0.5in; text-align: justify"> </td> <td style="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,412,271</div></td> <td style="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"> </td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <!-- Field: Page; Sequence: 33; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><div style="display: inline; font-weight: bold;"></div></div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(a)</td> <td style="text-align: justify"><div style=" margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016, </div>the Company signed a Supplemental Agreement with HSBC Bank PLC to defer the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> remaining consecutive quarterly instalments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$75,000</div> each (being <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$450,000</div> in aggregate) to be payable together with the balloon payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$653,915</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> bullet payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,103,915</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November, 2017. </div>The asset coverage ratio was reduced from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">130%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> until the maturity of this agreement. A cash sweep mechanism was put into place until the entire deferred amount was repaid. The loan was fully repaid in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017.</div></div> </td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(b)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016, </div>the Company signed a Supplemental Agreement with HSBC Bank Plc to defer the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> remaining consecutive quarterly instalments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$280,000</div> each (being <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,680,000</div> in aggregate) until (a) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2017 (</div>being the initial final repayment date together with the balloon payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,160,000</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> bullet payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,840,000</div>) or (b) to extend the final repayment date of the deferred amount and the balloon payment until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2018 </div>if Euroseas agrees with the current lender of M/V “Evridiki G” (being Credit Agricole) or any other bank the extension of the repayment date of her balloon instalment at least until her current charter matures in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> which was finally agreed. In this case, the outstanding amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,840,000</div> will be paid in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> quarterly instalments, the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> instalments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$280,000</div> each, the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> instalment in the amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$560,000</div> and the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourth</div> instalment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,720,000</div> comprised by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$560,000</div> and the balloon payment. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> instalment will be paid in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2018 </div>and the following instalments at quarterly intervals thereafter and the last <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2018. </div>The asset coverage ratio was reduced from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">130%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017. </div>A cash sweep mechanism was put in place until the entire deferred amount is repaid. A cash collateral amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$300,000</div> (corresponding to the minimum cash balance requirement) is to be pledged in the cash collateral account of the owner of M/V "Eirini P" / M/V "Tasos" or of Euroseas as corporate guarantor. For the avoidance of doubt the aforementioned cash collateral is in addition to the cash collateral required to be maintained in the cash collateral account pursuant to the M/V “Eirini P” / M/V “Tasos” loan agreement (see (d) below). A prepayment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.4</div> million was also made within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> for the loan of Pantelis Shipping Corp. This prepayment was deducted from balloon repayment of the vessel’s loan after an agreement between Euroseas and HSBC Bank Plc.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 34; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(c)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 22, 2016, </div>the supplemental agreement with Noumea Shipping Ltd., owner of M/V “Evridiki G” was signed in order to refinance the final quarterly instalment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$720,000</div> and the balloon payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$6,360,000</div> originally due in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016. </div>The borrower and the lender agreed to amend the repayment profile in respect of the loan of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,080,000</div> remained outstanding as of the date of the supplemental agreement and to extend the final maturity date to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018. </div>The loan will be repaid with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> repayments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$720,000</div> each, due in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016, </div>in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2017 </div>and in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018 </div>together with the balloon payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,920,000</div> due in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018. </div>The security cover ratio covenant has been waived until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 15, 2017, </div>when it was restored to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">110%.</div> The loan was refinanced in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018 (</div>see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div>-(a)).</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(d)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016, </div>the Company signed a Supplemental Agreement with HSBC Bank Plc. The outstanding balance of the “Eirini Loan” of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$12,850,000</div> prior to the closing of the Supplemental Agreement was reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,600,000</div> via prepayment of the cash collateral of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,250,000</div> (which was effected after the signing of the Supplemental Agreement). In addition, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">seven</div> principal instalments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$350,000</div> each, from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016 </div>to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2017 </div>were deferred. Repayment of the loan will resume in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2018 </div>and the outstanding balance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,600,000</div> will be repaid in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> quarterly instalments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$350,000</div> each, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$725,000</div> each plus a balloon payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,000,000</div> due in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2019. </div>The asset coverage ratio was reduced from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">130%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017. </div>A cash sweep mechanism was put into place until the entire deferred amount is repaid. A cash collateral amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$600,000</div> (corresponding to the minimum cash balance requirement) is to be pledged in the cash collateral account of the owner of M/V “Eirini P” / M/V “Tasos” or of Euroseas as corporate guarantor. For the avoidance of doubt the aforementioned, cash collateral is in addition to the cash collateral required to be maintained in the cash collateral account pursuant to the loan agreement of Pantelis Shipping Corp. M/V “Eleni P” was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 26, 2017 </div>and the proceeds from the sale were contributed to the Company during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and were used to partly pay for the acquisition of M/V “Tasos”. HSBC Bank Plc agreed to the sale of M/V “Eleni P” and the substitution of such vessel with M/V “Tasos” as collateral for the loan.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <!-- Field: Page; Sequence: 35; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(e)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 12, 2016, </div>the Company signed and drew a term loan facility with Eurobank Ergasias S.A in order to refinance all of its existing facilities with the bank. This is a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$14,500,000</div> loan drawn by Saf-Concord Shipping Ltd, Eternity Shipping Company, Allendale Investments S.A., Manolis Shipping Limited, Alterwall Business Inc., Aggeliki Shipping Ltd and Jonathan John Shipping Ltd. (which was cross-collateralized as per supplemental agreement dated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 27, 2016 </div>replacing Eternity Shipping Company, the owner of M/V “Captain Costas” that was sold in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>) as Borrowers. The loan is payable in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> equal consecutive quarterly instalments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$460,000</div> each, with a balloon payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,980,000</div> to be paid together with the last instalment in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2019. </div>The interest was based on LIBOR plus a margin of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.00%.</div> The loan is secured with the following: (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> priority mortgages over M/V “Monica P”, M/V “Captain Costas” replaced by M/V “Aegean Express” after her sale, M/V “Kuo Hsuing”, M/V “Manolis P”, M/V “Ninos”, M/V “Aggeliki P”, (ii) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> assignment of earnings and insurance, (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the rest of the loans of the Company, and (iv) a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,800,000</div> cash collateral deposit pledged in favor of the bank. The Company paid loan arrangement fees of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$247,500</div> for this loan. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2017, </div>the Company applied <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1</div> million from the pledged amount against the loan and prepaid an amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$540,000</div> deducted from the balloon payment and made a prepayment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$460,000</div> that referred to the installment of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourth</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div> In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2017, </div>the Company agreed with the lender to release M/V “Monica P.” from the mortgage and substitute it with M/V “Joanna”. In connection with this substitution, the Company prepaid an amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$460,000</div> referring to the installment due in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> and another <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$280,000</div> deducted from the balloon payment. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2017, </div>M/V “Aggeliki P.” was sold for scrap. An amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,100,000</div> from the sale of the vessel was prepaid, from which an amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,840,000</div> was applied against the final <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> instalments and an amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$260,000</div> was deducted from the balloon payment of the loan.. After all the above prepayment, the balloon payment was reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7.9</div> million with the repayment of the loan resuming in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2019.</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in"> </div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(f)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 17, 2016, </div>the Company signed a term loan facility with Nord LB and on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 25, 2016 </div>a loan of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13,800,000</div> was drawn by Kamsarmax One Shipping Ltd. to partly finance the purchase of M/V “Xenia”. The loan is to be repaid in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourteen</div> consecutive equal semi-annual installments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$467,000</div> plus a balloon amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,262,000.</div> The margin of the loan is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.95%</div> above LIBOR. The loan is secured with (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> priority mortgages over M/V “Xenia”, (ii) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> assignment of earnings and insurance of M/V “Xenia”, (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the rest of the loans of the Company. The Company paid loan arrangement fees of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$187,335</div> for this loan.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 36; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(g)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 20, 2015, </div>the Company signed a term loan facility with HSH Nordbank AG of up to the lesser of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19.00</div> million or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">62.5%</div> of the market value of Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> DY <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">160</div> (named “Alexandros P.” upon its delivery to partly finance the construction cost. A commitment fee of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.9%</div> per annum was payable until the loan was drawn. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 28, 2016 </div>and on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 27, 2016, </div>the Company signed a supplemental loan agreement to the term loan facility signed on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 20, 2015 </div>extending the allowed drawdown period until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 31, 2016 </div>and subsequently until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 31, 2017 </div>to account for delays in the construction of the Hull DY <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">160,</div> and reducing the maximum loan amount to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55%</div> of the market value of the vessel at delivery. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 25, 2017, </div>the Company drew <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,862,500</div> from HSH Nordbank AG secured by its newly acquired vessel M/V “Alexandros P” (ex-Hull DY <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">160</div>). The loan is payable in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">thirteen</div> equal consecutive quarterly instalments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$159,743</div> each, with a balloon payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,785,841</div> to be paid together with the last instalment in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2020. </div>The interest rate margin is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.00%</div> over LIBOR. The loan is secured with (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> priority mortgage over M/V "Alexandros P.", (ii) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> assignment of earnings and insurance of M/V "Alexandros P.", (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the remaining loans of the Company. The Company paid loan arrangement fees of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$95,000</div> and commitment fees of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$440,483</div> for this loan.</td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in"> </div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(h)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 15, 2017, </div>the Company signed a term loan facility with Credit Agricole and on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 19, 2017 </div>a loan of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,750,000</div> was drawn by Gregos Shipping Ltd. to partly finance the purchase of M/V “EM Astoria”. The loan is payable in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twenty</div> or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">sixteen</div> consecutive equal quarterly installments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$100,000</div> plus a balloon amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,750,000</div> or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,150,000</div> (the debt repayment schedule shown in the previous table assumes repayment in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">sixteen</div> quarters). The margin of the loan is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.65%</div> above LIBOR. The loan is secured with (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> priority mortgages over M/V “EM Astoria”, (ii) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> assignment of earnings and insurance of M/V “EM Astoria”, (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the rest of the loans of the Company. The Company paid loan arrangement fee of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000</div> for this loan. The Company has also entered into a profit sharing agreement with Credit Agricole whereby it will share with the bank <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35%</div> of the excess of the fair market value of the vessel over the outstanding loan when the vessel is sold or when the loan matures. As a result of the lender's entitlement to participate in the appreciation of the market value of the mortgaged vessel, the Company has recognized a participation liability of amount <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,297,100,</div> presented in "Vessel profit participation liability" in the accompanying “Consolidated balance sheets” as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>with a corresponding debit to a debt discount account, presented contra to the loan balance. In addition, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35%</div> of the cash flow after debt service will be set aside and be used to repay the balloon payment with any excess funds to be paid to the bank.</td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in"> </div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(i)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 27, 2018, </div>Credit Agricole refinanced the loan of Noumea Shipping Ltd., owner of M/V “Evridiki G”, (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div>-(c) and Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div>-(a)). Under this refinancing agreement, Gregos Shipping Ltd., provided a Corporate Guarantee secured by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> ranking mortgage and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> ranking assignment of earnings of the M/V “EM Astoria”. Additionally, Noumea Shipping Ltd. provided a Corporate Guarantee secured by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> ranking mortgage and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> ranking assignment of earnings and insurances on the M/V “Evridiki G” to secure M/V “EM Astoria” existing loan with Credit Agricole indebtedness.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <!-- Field: Page; Sequence: 37; Value: 1 --> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.5in"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(j)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 19, 2017, </div>the Company signed a term loan facility with Eurobank Ergasias S.A for an amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$17,500,000.</div> The loan was used to partially finance the acquisition of M/V “EM Athens”, M/V “EM Oinousses”, M/V “EM Corfu” and M/V “Akinada Bridge”. <div style="display: inline; font-family: Times New Roman, Times, Serif; font-size: 10pt">”. The loan was drawn in tranches upon the delivery of each vessel to the Company with the last drawdown taking place on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 21, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.The</div> loan is payable in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> consecutive equal quarterly installments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$500,000</div> followed by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">eleven</div> consecutive equal quarterly installments of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$800,000</div> followed by a balloon payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$6,200,000.</div> The loan bears interest at LIBOR plus a margin of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.5%.</div> The loan is secured with (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> priority mortgages over M/V “EM Athens”, M/V “EM Oinousses”, M/V “EM Corfu” and M/V “Akinada Bridge”, (ii) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> assignment of earnings and insurance of the abovementioned vessels, (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the remaining loans of the Company. The Company paid loan arrangement fees of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$137,638</div> within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and another <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$54,862</div> within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> for this loan.</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 0.5in"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(k)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 29, 2016, </div>Euroseas signed an agreement with Colby Trading Ltd, a company affiliated with its CEO, to draw a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2</div> million loan to finance working capital needs. Interest on the loan is payable quarterly, and there are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> principal repayments until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018 </div>when the loan matures. The Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>elect to capitalize the interest to the outstanding principal amount. Under certain limited circumstances, the Company can pay principal and interest in equity, and the loan is convertible in common stock of the Company at the option of the lender at certain times. The Company repaid this loan, earlier than scheduled, on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 28, 2017 </div>along with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,556</div> interest.</td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> </div> <!-- Field: Page; Sequence: 38; Value: 1 --> <div> <div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the terms specific to each loan described above, all the above loans are secured with a pledge of all the issued shares of each borrower.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The loan agreements also contain covenants such as minimum requirements regarding the hull ratio cover (the ratio of fair value of vessel to outstanding loan less cash in retention accounts ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">130%</div>), restrictions as to changes in management and ownership of the ship-owning companies, distribution of profits or assets (i.e. limiting dividends in some loans to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60%</div> of profits, or, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> permitting dividend payment or other distributions in cases that an event of default has occurred), additional indebtedness and mortgage of vessels without the lender’s prior consent, sale of vessels, maximum fleet-wide leverage, sale of capital stock of our subsidiaries, ability to make investments and other capital expenditures, entering in mergers or acquisitions, minimum cash balance requirements and minimum cash retention accounts (restricted cash). The loan agreements also require the Company to make deposits in retention accounts with certain banks that can only be used to pay the current loan instalments. Minimum cash balance requirements are in addition to cash held in retention accounts. These cash deposits amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,605,740</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,548,452</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively, and are included in “Restricted cash” under “Current assets” and “Long-term assets” in the consolidated balance sheets. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>all the debt covenants are satisfied.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Interest expense for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,336,345,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,918,673</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,988,806,</div> respectively. Capitalized interest for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2015, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$697,048,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$497,813</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$123,697</div> respectively.</div> </div> </div></div>
16900000
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Recent accounting pronouncements</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> "Revenue from Contracts with Customers" ("ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09"</div>), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> defines a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-step process to achieve this core principle and, in doing so, more judgment and estimates <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required within the revenue recognition process than are required under existing U.S. GAAP. The FASB also permitted early adoption of the standard, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> before the original effective date of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>Subsequent to the issuance of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> the FASB issued the following ASU's which amend or provide additional guidance on topics addressed in ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09.</div> In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">08,</div> "Revenue Recognition - Principal versus Agent" (reporting revenue gross versus net). In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> "Revenue Recognition - Identifying Performance Obligations and Licenses." Lastly, in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2016, </div>the FASB issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> "Revenue Recognition - Narrow Scope Improvements and Practical Expedients." The standard is effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>and interim periods therein, and shall be applied either retrospectively to each period presented or as a cumulative effect adjustment as of the date of adoption. Early adoption of the standard, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> before <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016 </div>is permitted. The Company adopted this standard as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018 </div>and elected to use the modified retrospective transition method for the implementation of this standard. As a result of the adoption of this standard revenues generated under voyage charter agreements will be recognized on a pro-rata basis from the date of loading to discharge of cargo. Prior to the adoption of this standard, revenues generated under voyage charter agreements were recognized on a pro-rata basis over the period of the voyage which was deemed to commence upon the later of the completion of discharge of the vessel’s previous cargo or the time it receives a contract that is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> cancelable, and was deemed to end upon the completion of discharge of the current cargo. The financial impact on the Company’s financial statements will derive from voyage charters which do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> commence and end in the same reporting period due to the timing of recognition of revenue, as well as the timing of recognition of certain voyage related costs. As <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> vessels of the Company had voyage charters that were in progress as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>management believes that the implementation of this standard will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have any material impact on its financial statements.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"></div></div><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font-size: 10pt; text-transform: uppercase; text-align: justify; text-indent: 0in; margin: 0pt 0"><div style="display: inline; text-transform: none">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2015, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,</div> “Simplifying the Measurement of Inventory” to simplify the measurement of inventory using <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> out (FIFO) or average cost method. According to this ASU an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices less reasonably predictable costs of completion, disposal and transportation. This update is effective for public entities with reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>Early adoption is permitted. The Company adopted this ASU for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> material impact on its financial statements.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"> </div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> Leases (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">842</div>). The main provision of this ASU is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Accounting by lessors will remain largely unchanged from current U.S. GAAP but require the lessors to separate lease and non-lease components. The requirements of this standard include an increase in required disclosures. The Company expects that its time charter arrangements will be subject to the requirements of the new Leases standard as the Company will be regarded as the lessor. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. This update is effective for public entities with reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018, </div>including interim periods within those years. Early adoption is permitted for all entities. The Company is currently evaluating the impact, if any, of the adoption of this new standard and will evaluate any amendments that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be issued.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued Accounting Standards Update <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Stock Compensation. The new guidance is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard is effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016 </div>and interim periods within those annual periods. The Company adopted this ASU for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> material impact on its financial statements.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,</div> Financial Instruments - Credit Losses. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this Update are effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2019, </div>including interim periods within those fiscal years. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet evaluated the impact, if any, of the adoption of this new standard.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. This Update addresses <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">eight</div> specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for public business entities for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>and interim periods within those fiscal years. The Company has elected early adoption of this update. The Company evaluated the impact of this ASU on its financial statements and determined that there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> impact as the classification of the related cash payments and cash receipts has always been reported as described in the ASU.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2016 </div>the FASB issued the ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> – Restricted cash. This ASU requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. This update is effective for public entities with reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> including interim periods within those years. Early adoption of this update as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017 </div>and the statements of cash flows for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> explain the change during the respective periods in the total cash, cash equivalents and restricted cash. This presentation was applied retrospectively to all periods presented as required under the guidance.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01,</div> Business Combinations (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">805</div>): Clarifying the Definition of a Business ("ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01"</div>). ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> provides greater clarity on the definition of a business to assist entities in evaluating whether transactions should be accounted for as an acquisition or disposal of assets or businesses. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> is effective for us on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018, </div>with early adoption permitted. Because all of the Company’s acquisitions have been asset acquisitions, the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of this new standard to have an impact on its consolidated financial statements.</div></div></div></div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Pension and retirement benefit obligations – crew </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The ship-owning companies contract the crews on board the vessels under short-term contracts (usually up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div> months). Accordingly, they are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> liable for any pension or post-retirement benefits.</div></div></div></div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17.</div> Preferred shares</div></div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="text-align: center; border-bottom: Black 1pt solid"> </td> <td style="padding-bottom: 1pt; text-align: center; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Number</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">of</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">Shares</div></div></td> <td style="padding-bottom: 1pt; text-align: center; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">Preferred Shares</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">Amount</div></div></td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Dividends paid-in-kind</td> <td style="padding-bottom: 1pt; text-align: center; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"> </div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"> </div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Total</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance, </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">January 1, 2015</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div></td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32,140</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,000,000</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,440,100</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,440,100</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0"> </div> <div style=" margin-top: 0; margin-bottom: 0">Dividends declared <br /></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,639</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,639,149</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,639,149</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance,</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">December 31, 2015</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">33,779</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,079,249</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32,079,249</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0"> </div> <div style=" margin-top: 0; margin-bottom: 0">Dividends declared <br /></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,726</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,725,699</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,725,699</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance,</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">December 31, 2016</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,505</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,804,948</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">33,804,948</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0"> </div> <div style=" margin-top: 0; margin-bottom: 0">Dividends declared <br /></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,809</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,808,811</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,808,811</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance,</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">December 31, 2017</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">37,314</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,613,759</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,613,759</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 27, 2014, </div>the Company entered into an agreement to sell <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,000</div> shares of its Series B Convertible Perpetual Preferred Shares ("Series B Preferred Shares") to a fund managed by Tennenbaum Capital Partners, LLC ("TCP") and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,700</div> shares to Preferred Friends Investment Company Inc, an affiliate of the Company, for total net proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$29</div> million. The redemption amount of the Company’s Series B Preferred Shares is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,000</div> per share. The Company used the proceeds for the acquisition of vessels and general corporate purposes. The Series B Preferred Shares will pay dividends (in cash or in-kind at the option of the Company, subject to certain exceptions) during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years at a rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0%</div> or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%,</div> depending on the trading price of the Company's common stock. In addition, if a cash dividend is paid on the Company's common stock during such time, then if the dividend paid on the Series B Preferred Shares is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%,</div> the holders of Series B Preferred Shares shall receive such dividend in cash and shall also receive an additional cash dividend in an amount equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div> of the common stock dividend it would have received on an as-converted basis. If, however, the dividend on the Series B Preferred Shares is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0%,</div> then the holders of Series B Preferred Shares shall receive a cash dividend equal to the greater of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> of the common stock dividend it would have received on an as-converted basis and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%.</div> If a cash dividend is paid on the Company's common stock after the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years, the holders of Series B Preferred Shares shall receive an additional cash dividend in an amount equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40%</div> of the common stock dividend it would have received on an as-converted basis.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The dividend rate will increase to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12%</div> in years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">seven</div> and to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14%</div> thereafter. The Series B Preferred Shares can be converted at the option of their holders at any time, and at the option of the Company only if certain share price and liquidity milestones are met. Each Series B Preferred Share is convertible into common stock at a conversion price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$12.25</div> (as adjusted in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2015 </div>following the shareholders’ rights offering of the Company) subject to further adjustment for certain events. The Series B Preferred Shares are redeemable in cash by the Company at any time after the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fifth</div> anniversary of the original issue date. Holders of the Series B Preferred Shares <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>require the Company to redeem their shares only upon the occurrence of certain corporate events.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>the Company declared <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> consecutive dividends totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.8</div> million, all of which were paid in kind. The redemption liability as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$37,306,766.</div> If all the subsequent dividend payments are made in-kind, the Series B Preferred Shares will increase by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,900,607</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$152,473</div> for the years <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019,</div> respectively. The redemption liability will be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$39,207,373</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$39,359,846</div> as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018 </div>and end-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2019, </div>respectively. After <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2019, </div>the dividend will be payable only in cash as described above.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to certain ownership thresholds, holders of Series B Preferred Shares have the right to appoint <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> director to the Company's board of directors and TCP also has consent rights over certain corporate actions. In addition, the holders of Series B Preferred Shares will vote as <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> class with the Company's common stock on all matters on which shareholders are entitled to vote, with each Series B Preferred Share having a number of votes equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> of the numbers of shares of common stock of the Company into which such Series B Preferred Share would be convertible on the applicable record date.</div></div>
29000000
1440100
30440100
29000000
3079249
32079249
29000000
4804948
33804948
29000000
6613759
35613759
172398
319559
2200000
1000000
600000
10545007
3168058
549495
29000000
14500000
13800000
10862500
8400000
28300000
33112500
2000000
1122208
2650000
2300000
6450000
7345342
4196268
9552260
4151335
3179596
4042353
4958345
30015188
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 35.45pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.</div></div></td> <td><div style="display: inline; font-weight: bold;">Vessels, net</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The amounts in the accompanying consolidated balance sheets are as follows:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div> <table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="text-align: right; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Costs</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Accumulated</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Depreciation</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"> </div></div></td> <td style="padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"> </div></div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Net Book</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Value</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"> </div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; font-weight: bold; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">Balance, January 1, 2016</td> <td style="width: 1%; font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">124,748,377</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="width: 1%; font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(35,790,625</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> <td style="width: 1%; font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">88,957,752</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Depreciation for the year</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,788,121</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,788,121</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">- New building vessel delivered during the period</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,831,439</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,831,439</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">- Vessel Acquisitions</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,958,345</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,958,345</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid">- Sale of vessel</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(3,749,135</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,113,067</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,636,068</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">- Vessel held for sale</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(18,410,922</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,672,208</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,738,714</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">Balance, December 31, 2016</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">139,378,104</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(33,793,471</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">105,584,633</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Depreciation for the year</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,372,237</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,372,237</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">- New building vessel delivered during the period</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,807,934</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,807,934</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Vessel delivered during the period</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">4,503,464</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">4,503,464</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Capitalized expenses</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">15,252</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">15,252</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Vessel Acquisitions</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,015,188</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,015,188</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Sale of vessels</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(9,318,842</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,110,762</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,208,080</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Vessels held for sale</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(18,081,755</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,847,316</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,234,439</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">Balance, December 31, 2017</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">164,319,345</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(30,207,630</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">134,111,715</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> </table> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company considers the potential sale of its vessels, for scrap or further trading, depending on a vessel’s age, any additional capital expenditures required, the expected revenues from continuing to own the vessel and the overall market prospects.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 10, 2016, </div>the Company sold M/V “Captain Costas”, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the Company's containership vessels, for a net price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.65</div> million. After sales commissions of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4%,</div> which includes the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> payable to Eurochart, and other sale expenses, the Company realized a gain of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,597</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 29, 2016, </div>the Company acquired M/V “Aegean Express”, a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,439</div> teu containership vessel, for a purchase price plus costs required to make the vessel available for use of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,151,940.</div> On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 23, 2016, </div>the Company signed a memorandum of agreement to purchase M/V “RT Dagr”, a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,645</div> teu feeder containership vessel built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1998</div> in Germany, for approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.81</div> million by issuing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">864,292</div> shares of the Company's common stock and payment of acquisition expenses of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$77,821</div> with another <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,708</div> common shares issued as payment for the amount of fuel that was acquired along with the vessel. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 13, 2017, </div>the Company agreed to sell for scrap M/V “RT Dagr”, for a net price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.3</div> million. The vessel was delivered to its buyers on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 31, 2017. </div>The Company recorded a gain on sale of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.5</div> million presented in the “Net gain on sale of vessels” line in the "Operating Expenses" section of the "Consolidated Statements of Operations".</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 20, 2016, </div>the Company agreed to sell for scrap M/V “Eleni P”, a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">72,119</div> dwt <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1997</div>-built drybulk carrier. The vessel was written down to its fair market value less costs to sell resulting in a non-cash loss of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.92</div> million, or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.73</div> loss per share basic and diluted. These amounts are presented in the "Loss on write-down of vessels held for sale" line in the "Operating Expenses" section of the "Consolidated Statements of Operations". As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>“Eleni P” is presented as “Vessel held for sale” at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.81</div> million. The vessel was delivered to its buyers on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 26, 2017.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 9, 2017, </div>the Company acquired M/V “Tasos”, a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">75,100</div> dwt <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2000</div>-built drybulk carrier, for a purchase price plus costs required to make the vessel available for use of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,503,464.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>the Company decided to sell for scrap M/V “Aggeliki P.” a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,008</div> teu <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1998</div>-built container carrier and M/V “Monica P” a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">46,667</div> dwt <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1998</div>-built drybulk carrier. Both vessels were written down to their fair market value, resulting in a non-cash loss of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.6</div> million, or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.42</div> loss per share basic and diluted. These amounts are presented in the "Loss on write-down of vessels held for sale" line in the "Operating Expenses" section of the "Consolidated Statements of Operations". M/V “Aggeliki P” was sold on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 6, 2017. </div>The Company recorded a gain on sale of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.3</div> million presented in the “Net gain on sale of vessels” line in the "Operating Expenses" section of the "Consolidated Statements of Operations". M/V “Monica P” was still held for sale as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>with a value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.9</div> million.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 20, 2017 </div>the Company acquired the feeder containership (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,788</div> teu, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2004</div> built) M/V “EM Astoria” for a purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.75</div> million.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 29, 2017 </div>the Company acquired the feeder containership (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,506</div> teu, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2000</div> built) M/V “EM Athens” for a purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.24</div> million.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 23, 2017 </div>the Company acquired the feeder containership (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,506</div> teu, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2000</div> built) M/V “EM Oinousses” for a purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.25</div> million.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 29, 2017 </div>the Company acquired the feeder containership (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,556</div> teu, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2001</div> built) M/V “EM Corfu” for a purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.66</div> million.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 21, 2017 </div>the Company acquired the intermediate containership (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,610</div> teu, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2001</div> built) M/V “Akinada Bridge” for a purchase price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11.12</div> million</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company performed the undiscounted cash flow test as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>and determined that the net book value of its vessels held for use were recoverable.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Vessels with a carrying value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$134.1</div> million (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016:</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$103.78</div> million) have been mortgaged as security for the loans.</div></div>
3749135
9318842
124748377
139378104
164319345
88957752
105584633
134111715
105584633
134111715
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="text-align: right; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">Costs</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Accumulated</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Depreciation</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"> </div></div></td> <td style="padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"> </div></div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Net Book</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Value</div></div></td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"> </div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; font-weight: bold; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">Balance, January 1, 2016</td> <td style="width: 1%; font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">124,748,377</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="width: 1%; font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(35,790,625</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> <td style="width: 1%; font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">88,957,752</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Depreciation for the year</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,788,121</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,788,121</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">- New building vessel delivered during the period</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,831,439</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,831,439</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">- Vessel Acquisitions</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,958,345</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,958,345</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid">- Sale of vessel</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(3,749,135</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,113,067</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,636,068</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">- Vessel held for sale</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(18,410,922</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,672,208</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,738,714</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">Balance, December 31, 2016</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">139,378,104</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(33,793,471</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">105,584,633</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Depreciation for the year</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,372,237</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,372,237</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">- New building vessel delivered during the period</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,807,934</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,807,934</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Vessel delivered during the period</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">4,503,464</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">4,503,464</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Capitalized expenses</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">15,252</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">15,252</div></div> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Vessel Acquisitions</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,015,188</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,015,188</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Sale of vessels</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(9,318,842</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,110,762</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,208,080</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">- Vessels held for sale</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(18,081,755</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,847,316</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(8,234,439</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt; text-indent: -21.3pt; padding-left: 21.3pt; border-bottom: Black 1pt solid">Balance, December 31, 2017</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">164,319,345</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(30,207,630</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">134,111,715</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> </table></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="width: 0.5in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.</div></div></td> <td style="text-align: justify"><div style="display: inline; font-weight: bold;">Related Party Transactions</div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s vessel owning companies are parties to management agreements with the Managers whereby the Managers provided technical and commercial vessel management for a fixed daily fee of Euro <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">685</div> for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> under the Company’s Master Management Agreement (see below). An additional fixed management fee (see below) is paid to the Manager for the provision of various management services. Vessel management fees paid to the Managers amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,151,335,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,179,596</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,042,353</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The management agreement provides for an annual adjustment of the daily management fee due to inflation to take effect <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1 </div>of each year. The vessel management fee for laid-up vessels is half of the daily fee for the period they are laid-up. In the case of newbuilding vessel contracts, the same management fee of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">685</div> Euros becomes effective when construction of the vessels actually begins. The Company’s Master Management Agreement (“MMA”) with Eurobulk was originally effective as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2011 </div>and with an initial term of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2016. </div>The Master Management Agreement, as periodically amended and restated, will automatically be extended after the initial <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-year period for an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-year period unless terminated on or before the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">90th</div> day preceding the initial termination date. Pursuant to the Master Management Agreement, each ship owning company has signed – and each future ship owning company when a vessel is acquired will sign - with the Managers a management agreement with the rate and term of these agreements set in the Master Management Agreement effective at such time.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The MMA was amended and restated as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2012 </div>to reflect a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%</div> discount of the daily vessel management fee for the period during which the number of the Euroseas owned vessels (including vessels in which Euroseas is a part owner) managed by the Manager is greater than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div> (“volume discount”); it was further renewed as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2014 </div>for a new <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> year term until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2019.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Starting <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2013, </div>the daily vessel management fee was adjusted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">720</div> Euros per day per vessel in operation and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">360</div> Euros per day per vessel in lay-up before the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%</div> discount. The fee remained unchanged for the subsequent years starting <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2015, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The MMA was further renewed on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018 </div>for an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> year term until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2023 </div>with the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%</div> volume discount permanently incorporated in the daily management fee. The daily management fee remained unchanged at Euros <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">685</div> for the year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> and will be adjusted annually for inflation in the Eurozone. The terms and daily fee of the vessels managed by Eurobulk FE were similarly adjusted. These fees are recorded under “Related party management fees” in the “Consolidated statements of operations”.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the vessel management services, the Manager provides management services for the Company’s needs as a public company. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> compensation for such services to the Company as a public company was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,000,000</div> remaining unchanged and it remains unchanged for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018.</div> These amounts are recorded in “Other general and administrative expenses” in the “Consolidated statements of operations.”</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Amounts due to or from related companies represent net disbursements and collections made on behalf of the vessel-owning companies by the Management Company during the normal course of operations for which a right of off-set exists. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> the amounts due to related companies were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,539</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,280,577</div> respectively. Based on the MMA between Euroseas Ltd. and Euroseas’ ship owning subsidiaries and the Manager an estimate of the quarter’s operating expenses, expected dry-dock expenses, vessel management fee and fee for management executive services are to be advanced in the beginning of the quarter to the Manager.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2016 </div>reached an agreement with a related party, COLBY Trading Ltd a company controlled by the Pittas family and affiliated to its CEO, to draw a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2</div> million loan to finance working capital needs with an interest rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> per annum. Interest on the loan was payable quarterly, there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> principal repayments until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018 </div>when the loan would mature and there would be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> prepayment penalty. The Company fully repaid this loan along with the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> interest payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,556</div> earlier than scheduled at the end of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2017.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company uses brokers for various services, as is industry practice. Eurochart S.A., an affiliated company controlled by certain members of the Pittas family, provides vessel sale and purchase services, and chartering services to the Company whereby the Company pays commission of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> of the vessel sales price and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.25%</div> of charter revenues. Commissions to Eurochart S.A. for vessel sales were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$77,022,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$55,796</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$70,640</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> respectively. A commission of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> of the purchase price is also paid to Eurochart S.A. by the seller of the vessel for the acquisitions the Company makes; the Company withheld, on behalf of Eurochart, commissions of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$141,700,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$243,500</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$297,526</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively, for vessels the Company acquired including payments made under its shipbuilding contracts. Commissions to Eurochart S.A. for chartering services were, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$475,792,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$372,806</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$563,970</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain members of the Pittas family, together with another unrelated ship management company, have formed a joint venture with the insurance broker Sentinel Maritime Services Inc. (“Sentinel”); and with a crewing agent Technomar Crew Management Services Corp (“Technomar”). Technomar is a company owned by certain members of the Pittas family, together with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> other unrelated ship management companies. Sentinel is paid a commission on premium <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> exceeding <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5%;</div> Technomar is paid a fee of about <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50</div> per crew member per month. Total fees charged by Sentinel and Technomar were, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$129,564</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$175,586</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$104,708</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$128,369</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$131,750</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$161,104</div> in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively. These amounts are recorded in “Vessel operating expenses” in the “Consolidated statements of operations.”</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 25, 2016, </div>the management of the newly delivered vessel, M/V “Xenia” is performed by Eurobulk FE M/V “Alexandros P.” since its delivery on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 16, 2017 </div>is also managed by Eurobulk FE. Additionally M/V “Tasos” since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017, </div>is also managed by Eurobulk FE. This is an affiliate company controlled by members of the Pittas family. Eurobulk FE is located in Manilla, the Philippines and provides M/V “Xenia”, M/V “Alexandros P.” and M/V “Tasos” with technical, commercial and accounting services. The terms of the management agreement between Kamsarmax One Shipping Ltd., Ultra One Shipping Ltd. and Areti Shipping Ltd., the owners of M/V “Xenia”, M/V “Alexandros P.” and M/V “Tasos” and Eurobulk FE are similar to agreements that the other vessel-owning subsidiaries have with the Manager.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <table style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top"> <td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.5in; margin: 0pt 0 0pt 0.5in"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 23, 2016, </div>the Company acquired M/V “RT Dagr” from entities managed by Tennenbaum Capital Partners (Tennenbaum Opportunities Fund V, LP and Tennenbaum Opportunities Fund VI, LLC) by issuing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">900,000</div> shares of common stock as consideration for the value of the vessel and fuel on board. The fair value of the shares at issuance was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.8</div> million.</div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Revenue and expense recognition</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Revenues are generated from voyage charters and time charters. If a charter agreement exists, the price is fixed, service is provided and the collection of the related revenue is reasonably assured, revenues are recorded over the term of the charter as service is provided and recognized on a pro-rata basis over the duration of the voyage or time charter adjusted for the off-hire days that a vessel spends undergoing repairs, maintenance or upgrade work. A voyage is deemed to commence upon the later of the completion of discharge of the vessel’s previous cargo or the time it receives a contract that is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> cancelable and is deemed to end upon the completion of discharge of the current cargo. A time charter contract is deemed to commence from the time of the delivery of the vessel to an agreed port and is deemed to end upon the re-delivery of the vessel at an agreed port. Demurrage income, which is included in voyage revenues, represents revenue earned from the charterer when loading or discharging time exceeded the stipulated time in the voyage charter and is recognized when earned.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; letter-spacing: -0.1pt"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Charter fees received in advance are recorded as a liability (deferred revenue) until charter services are rendered.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Vessel operating expenses are comprised of all expenses relating to the operation of the vessels, including crewing, insurance, repairs and maintenance, stores, lubricants, spares and consumables, professional and legal fees and miscellaneous expenses. Vessel operating expenses are recognized as incurred; payments in advance of services or use are recorded as prepaid expenses. Voyage expenses relate to bunkers, port charges, canal tolls, and agency fees which are incurred when the vessel is chartered under a voyage charter or during off-hire or idle periods. Voyage expenses are expensed as incurred.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is recognized when a charter agreement exists, the vessel is made available to the charterer and collection of the related revenue is reasonably assured. Commissions (address and brokerage), regardless of charter type, are always paid by the Company, are deferred and amortized over the related charter period and are presented as a separate line item in revenues to arrive at net revenues in the accompanying consolidated statements of operations.</div></div></div></div></div>
37679834
28424289
42917138
2216836
1604747
2440444
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="text-align: center; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">As of December 31, 2016</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">As of December 31, 2017</td> </tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="3" style="text-align: right"> </td> <td> </td> <td colspan="3" style="text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left; padding-left: 0.4pt">Accrued payroll expenses</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230,917</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">329,308</div></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0.4pt">Accrued interest expense</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">310,389</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">661,480</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 0.4pt">Accrued deferred charges</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">-</div></div> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">74,863</div></div> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.4pt">Accrued general and administrative expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">278,826</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">209,161</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.4pt">Accrued commissions</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">54,173</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,793</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: normal; text-align: left; padding-bottom: 1pt; text-indent: 0in; padding-left: 0.4pt; border-bottom: Black 1pt solid">Other accrued expenses</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">437,988</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">778,532</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 1pt; padding-left: 0.4pt; border-bottom: Black 1pt solid">Total</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,312,293</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin: 0pt 0">2,154,137</div></div> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1pt solid">Borrower</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, <br /> 2016</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, <br /> 2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; text-align: left">Xingang Shipping Ltd. / Joanna Maritime Ltd.</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: center"> </td> <td style="width: 10%; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(a)</div></td> <td style="width: 1%; text-align: center"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,103,915</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Pantelis Shipping Corp.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(b)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,840,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,440,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Noumea Shipping Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(c)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,360,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,640,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Eirini Shipping Ltd. / Areti Shipping Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(d)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,600,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,600,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Allendale Investments S.A. / Alterwall Business Inc. / Manolis Shipping Ltd. / Saf Concord Shipping Ltd. / Aggeliki Shipping Ltd. /Eternity Shipping Company / Jonathan John Shipping Ltd. / Joanna Maritime Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(e)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,120,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,900,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Kamsarmax One Shipping Ltd</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(f)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,333,000</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,399,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Ultra One Shipping Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(g)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,383,271</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gregos Shipping Ltd.</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(h)</div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,550,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Oinousses Navigation Ltd. / Corfu Navigation Ltd. / Bridge Shipping Ltd. / Athens Shipping Ltd.</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(i)</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,500,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50,356,915</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,412,271</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Less: Current portion</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(5,697,915</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(12,862,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Long-term portion</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(44,659,000</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(61,550,271</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred charges, current portion</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">148,697</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">338,472</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred charges, long-term portion</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">292,024</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">491,883</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Debt discount, current portion</td> <td> </td> <td style="text-align: center"> </td> <td style="text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">353,000</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Debt discount, long-term portion</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">883,112</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Long-term debt, current portion net of deferred charges and debt discount</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,549,218</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,170,528</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Long-term debt, long-term portion net of deferred charges and debt discount</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44,366,976</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60,175,276</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Loan from related party</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 1pt solid; text-align: left; padding-bottom: 1pt">Euroseas Ltd.</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(j)</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,000,000</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border: Black 1pt solid">Derivatives not designated as hedging instruments</td> <td style="border: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Location of gain (loss) recognized</div></div></td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid">Year Ended December 31, 2015</td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid">Year Ended December 31, 2016</td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid">Year Ended December 31, 2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Interest rate swap contracts– Fair value</td> <td style="width: 19%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" margin-top: 0; margin-bottom: 0">(Loss) / gain on derivatives, net <br /></div></div></td> <td style="width: 17%; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45,669</div></td> <td style="width: 17%; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,921</div></td> <td style="width: 17%; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">45,552</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Interest rate swap contracts - Realized (loss) / gain</td> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(Loss) / gain on derivatives, net</div></td> <td style="text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(307,343</div></td> <td style="text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(132,075</div></td> <td style="text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,785</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Total <div style="display: inline; font-size: 10pt">(Loss) / gain <div style="display: inline; font-weight: bold;">on derivatives</div></div></td> <td style="padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(261,674</div></td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(119,154</div></td> <td style="font-weight: bold; text-align: right; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">62,337</div></td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellspacing="0" cellpadding="0" style="; border-collapse: collapse; font-size: 10pt; min-; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 33%; border: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">FFA contracts not designated as hedging instruments</div></div></td> <td style="width: 34%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Location of gain (loss) recognized</div></div></td> <td style="width: 33%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Year Ended December 31, 2017</div></div></td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt">FFA contracts – Fair value</div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(Loss)/gain on derivatives, net</div></div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(781)</div></div></td> </tr> <tr style="vertical-align: top; background-color: White"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt">FFA contracts – Realized gain/(loss)</div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(Loss)/gain on derivatives, net</div></div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> </tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-align: justify"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">Total loss on derivatives</div></div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: justify"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">(781)</div></div></div></td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border: Black 1pt solid">Derivatives not designated as hedging instruments</td> <td style="border: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance Sheet Location</div></div></td> <td style="border: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><div style="display: inline; font-weight: bold;">December 31, 2016</div></div></td> <td style="border: Black 1pt solid; text-align: right"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><div style="display: inline; font-weight: bold;">December 31, 2017</div></div></td> </tr> <tr style="vertical-align: bottom"> <td style="border: Black 1pt solid"> </td> <td style="border: Black 1pt solid"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Interest rate swap contracts</td> <td style="width: 24%; text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Current liabilities – Derivatives</div></td> <td style="width: 22%; border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 22%; border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">177,998</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; border: Black 1pt solid"> </td> <td style="padding-bottom: 1pt; border: Black 1pt solid"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Interest rate swap contracts</td> <td style="text-align: left; padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Long-term liabilities – Derivatives</div></td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,181</div></td> <td style="border: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,631</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; border: Black 1pt solid"> </td> <td style="padding-bottom: 1pt; border: Black 1pt solid"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> <td style="border: Black 1pt solid; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border: Black 1pt solid">Total derivative liabilities</td> <td style="padding-bottom: 1pt; border: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="border: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,181</div></td> <td style="border: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">194,629</div></td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2015</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2016</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-left: 0.4pt">Income:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 61%; text-align: left; padding-left: 0.4pt">Net loss attributable to common shareholders</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(15,687,132</div></td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(45,946,822</div></td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,903,371</div></td> <td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-left: 0.4pt">Basic and diluted earnings per share:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt">Weighted average common shares – <br />Outstanding</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,410,794</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,165,703</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,067,524</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 0.4pt">Basic and diluted loss per share</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2.45</div></td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(5.63</div></td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.71</div></td> <td style="text-align: left">)</td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2016</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2017</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 33%">Lubricants</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 31%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">788,426</div></td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 30%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,526,221</div></td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Victualing</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">140,716</div></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">118,988</div></td> <td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid">Bunkers</td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">362,137</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: normal; padding-bottom: 1pt; text-indent: 0in; border-bottom: Black 1pt solid">Total</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,291,279</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,645,209</div></td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid; text-align: left">Non-vested Shares</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Weighted-Average Grant-Date Fair Value</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 32%; border-bottom: Black 1pt solid; text-align: left">Non-vested on January 1, 2017</td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: center"> </td> <td style="width: 31%; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">116,280</div></td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: center"> </td> <td style="width: 30%; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.08</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">Granted</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,270</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.76</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">Vested</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(72,152)</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.53</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">Forfeited</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,036)</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.78</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">Non-vested on December 31, 2017</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">140,362</div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.60</div></td> <td style="border-bottom: Black 1pt solid; text-align: center"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="text-align: center; border-bottom: Black 1pt solid"> </td> <td style="padding-bottom: 1pt; text-align: center; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Number</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">of</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">Shares</div></div></td> <td style="padding-bottom: 1pt; text-align: center; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">Preferred Shares</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><div style="display: inline; font-weight: bold;">Amount</div></div></td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Dividends paid-in-kind</td> <td style="padding-bottom: 1pt; text-align: center; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"> </div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"> </div><div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;">Total</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance, </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">January 1, 2015</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div></td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32,140</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,000,000</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,440,100</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> <td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,440,100</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0"> </div> <div style=" margin-top: 0; margin-bottom: 0">Dividends declared <br /></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,639</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,639,149</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,639,149</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance,</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">December 31, 2015</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">33,779</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,079,249</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32,079,249</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0"> </div> <div style=" margin-top: 0; margin-bottom: 0">Dividends declared <br /></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,726</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,725,699</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,725,699</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance,</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">December 31, 2016</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,505</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,804,948</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">33,804,948</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0"> </div> <div style=" margin-top: 0; margin-bottom: 0">Dividends declared <br /></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,809</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,808,811</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,808,811</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Balance,</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;">December 31, 2017</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div></td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">37,314</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,000,000</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,613,759</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,613,759</div></td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom"> <td> </td> <td style="font-weight: bold"> </td> <td colspan="11" style="font-weight: bold; text-align: center">Year ended December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; border-bottom: Black 1pt solid">Charterer</td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2015</td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2016</td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: right; border-bottom: Black 1pt solid"> </td> <td colspan="3" style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 25%; font-weight: bold">CMA CGM, Marseille</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: right"> </td> <td style="width: 22%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div></td> <td style="width: 1%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="width: 1%; text-align: right"> </td> <td style="width: 1%; text-align: right"> </td> <td style="width: 22%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14</div></td> <td style="width: 1%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="width: 1%; text-align: right"> </td> <td style="width: 1%; text-align: right"> </td> <td style="width: 22%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19</div></td> <td style="width: 1%; text-align: right">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">New Golden Sea Shipping Pte. Ltd., Singapore</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div></td> <td style="text-align: right">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">A/S Klaveness Chartering</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div></td> <td style="text-align: right">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">MSC Geneva</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">%</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="text-align: right">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold">Dampskibsselskabet Norden A/S</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"></td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="text-align: right">%</td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Segment reporting</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company reports financial information and evaluates its operations by charter revenue and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> by the type of ship employment for its customers, i.e. voyage or time charters. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> use discrete financial information to evaluate the operating results for each such type of charter. Although revenue can be identified for these types of charters, management cannot and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> identify expenses, profitability or other financial information for these charters. As a result, management, including the chief operating decision maker, reviews operating results solely by revenue per day and operating results of the fleet and thus the Company has determined that it operates under <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> operating segment. Furthermore, when the Company charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographical information is impracticable.</div></div></div></div></div>
306111
294341
116562
4036
2.78
68400
40040
28360
82080
48048
34032
100270
57700
42570
100270
1.76
116280
140362
2.08
1.60
72152
2.53
2500000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Stock incentive plan awards</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Share-based compensation represents vested and non-vested restricted shares granted to officers and directors as well as to non-employees and are included in “Other general and administrative expenses” in the “Consolidated statements of operations.” The shares to employees and directors are measured at their fair value equal to the market value of the Company's common stock on the grant date. The shares that do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> contain any future service vesting conditions are considered vested shares and the total fair value of such shares is expensed on the grant date. The shares that contain a time-based service vesting condition are considered non-vested shares on the grant date and the total fair value of such shares is recognized on a straight-line basis over the requisite service period. In addition, non-vested awards granted to non-employees are recognized on a straight-line basis over the remaining period service is provided. The fair value of the awards granted to non-employees are measured at the fair value at each reporting period until the non-vested shares vest and performance is complete.</div></div></div></div></div>
0.5
0.5
0.5
0.5
0.5
0.5
1.39
2
5715731
8195760
10876112
11274126
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div> Significant Accounting Policies</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America. The following are the significant accounting policies adopted by the Company:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Principles of consolidation</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements include the accounts of Euroseas Ltd. and its subsidiaries. Inter-company balances and transactions are eliminated on consolidation.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Use of estimates</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify; text-indent: -28.35pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of the accompanying consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the stated amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Other comprehensive income / (loss)</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> other comprehensive income / (loss) and accordingly comprehensive income / (loss) equals net income / (loss) for all periods presented. As such, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> statement of comprehensive income / (loss) has been presented.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Foreign currency translation</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s functional currency as well as the functional currency of all its subsidiaries is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the balance sheet date. Income and expenses denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the date of the transaction. The resulting exchange gains and/or losses on settlement or translation are included in the accompanying consolidated statements of operations.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Cash equivalents</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash equivalents are cash in bank accounts, time deposits or other certificates purchased with an original maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Restricted cash</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Restricted cash reflects deposits with certain banks that can only be used to pay the current loan installments or are required to be maintained as a certain minimum cash balance per mortgaged vessel and amounts that are pledged, blocked or held as cash collateral.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Trade accounts receivable</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The amount shown as trade accounts receivable, at each balance sheet date, includes estimated recoveries from each voyage or time charter. At each balance sheet date, the Company provides for doubtful accounts on the basis of specific identified doubtful receivables.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Inventories</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Inventories are stated at the lower of cost and net realizable value. Inventories are valued using the FIFO (First-In First-Out) method.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Vessels</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Vessels are stated at cost, which comprises the vessel contract price, costs of major repairs and improvements upon acquisition, direct delivery and other acquisition expenses, less accumulated depreciation and impairment, if any. Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. Vessels under construction are presented at cost, which includes shipyard installment payments and other vessel costs incurred during the construction period that are directly attributable to the construction of the vessels, including interest costs incurred during the construction period.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Expenditures for vessel repair and maintenance are charged against income in the period incurred.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Assets Held for Sale </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>dispose of certain of its vessels when suitable opportunities occur, including prior to the end of their useful lives. The Company classifies assets as being held for sale when the following</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">criteria are met: (i) management is committed to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Long-lived assets classified as held for sale are measured at the lower of their carrying amount or fair value less the cost to sell the asset. These assets are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> longer depreciated once they meet the criteria of being held for sale.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 15; Value: 1 --> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Depreciation</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation is calculated on a straight line basis over the estimated useful life of the vessel with reference to the cost of the vessel, and estimated scrap value. Remaining useful lives of vessels are periodically reviewed and revised to recognize changes in conditions and such revisions, if any, are recognized over current and future periods. The Company estimates that its vessels have a useful life of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25</div> years from the completion of its construction.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Insurance claims and insurance proceeds</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Claims receivable are recorded on the accrual basis and represent the amounts to be received, net of deductibles, incurred through each balance sheet date, for which recovery from insurance companies is probable and the claim is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> subject to litigation. Any remaining costs to complete the claims are included in accrued liabilities. Insurance proceeds are recorded according to type of claim that gives rise to the proceeds in the consolidated statements of operations and the consolidated statements of cash flow.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Revenue and expense recognition</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Revenues are generated from voyage charters and time charters. If a charter agreement exists, the price is fixed, service is provided and the collection of the related revenue is reasonably assured, revenues are recorded over the term of the charter as service is provided and recognized on a pro-rata basis over the duration of the voyage or time charter adjusted for the off-hire days that a vessel spends undergoing repairs, maintenance or upgrade work. A voyage is deemed to commence upon the later of the completion of discharge of the vessel’s previous cargo or the time it receives a contract that is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> cancelable and is deemed to end upon the completion of discharge of the current cargo. A time charter contract is deemed to commence from the time of the delivery of the vessel to an agreed port and is deemed to end upon the re-delivery of the vessel at an agreed port. Demurrage income, which is included in voyage revenues, represents revenue earned from the charterer when loading or discharging time exceeded the stipulated time in the voyage charter and is recognized when earned.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; letter-spacing: -0.1pt"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Charter fees received in advance are recorded as a liability (deferred revenue) until charter services are rendered.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Vessel operating expenses are comprised of all expenses relating to the operation of the vessels, including crewing, insurance, repairs and maintenance, stores, lubricants, spares and consumables, professional and legal fees and miscellaneous expenses. Vessel operating expenses are recognized as incurred; payments in advance of services or use are recorded as prepaid expenses. Voyage expenses relate to bunkers, port charges, canal tolls, and agency fees which are incurred when the vessel is chartered under a voyage charter or during off-hire or idle periods. Voyage expenses are expensed as incurred.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is recognized when a charter agreement exists, the vessel is made available to the charterer and collection of the related revenue is reasonably assured. Commissions (address and brokerage), regardless of charter type, are always paid by the Company, are deferred and amortized over the related charter period and are presented as a separate line item in revenues to arrive at net revenues in the accompanying consolidated statements of operations.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"></div><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Dry-docking and special survey expenses</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dry-docking and special survey expenses are expensed as incurred.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Pension and retirement benefit obligations – crew </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The ship-owning companies contract the crews on board the vessels under short-term contracts (usually up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div> months). Accordingly, they are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> liable for any pension or post-retirement benefits.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Financing costs</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Loan arrangement fees are deferred and amortized to interest expense over the duration of the underlying loan using the effective interest method. Unamortized fees relating to loans repaid or refinanced are expensed in the period the repayment or refinancing occurs. Deferred offering expenses are charged against paid-in capital when financing is completed or expensed to other general and administrative expenses when financing efforts are terminated.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Fair value of time charter acquired</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company records all identified tangible and intangible assets or any liabilities associated with the acquisition of a vessel at fair value. Where vessels are acquired with existing time charters, the Company determines the present value of the difference between: (i) the contractual charter rate and (ii) the prevailing market rate for a charter of equivalent duration. In discounting the charter rate differences in future periods, the Company uses its Weighted Average Cost of Capital (WACC) adjusted to account for the credit quality of the charterer. The capitalized above-market (assets) and below-market (liabilities) charters are amortized as a reduction and increase, respectively, to voyage revenues over the remaining term of the charter.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Stock incentive plan awards</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Share-based compensation represents vested and non-vested restricted shares granted to officers and directors as well as to non-employees and are included in “Other general and administrative expenses” in the “Consolidated statements of operations.” The shares to employees and directors are measured at their fair value equal to the market value of the Company's common stock on the grant date. The shares that do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> contain any future service vesting conditions are considered vested shares and the total fair value of such shares is expensed on the grant date. The shares that contain a time-based service vesting condition are considered non-vested shares on the grant date and the total fair value of such shares is recognized on a straight-line basis over the requisite service period. In addition, non-vested awards granted to non-employees are recognized on a straight-line basis over the remaining period service is provided. The fair value of the awards granted to non-employees are measured at the fair value at each reporting period until the non-vested shares vest and performance is complete.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></div><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Investment in Joint Venture </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investments in companies over which the Company believes it exercises significant influence over operating and financial policies, are accounted for using the equity method. Under this method the investment is carried at cost, and is adjusted to recognize the investor’s share of the earnings or losses of the investee after the date of acquisition and is adjusted for impairment whenever facts and circumstances determine that a decline in fair value below the cost basis is other than temporary. The amount of the adjustment is included in the determination of net income / (loss). The investment is also adjusted to reflect the Company’s share of changes in the investee’s capital.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Impairment of long-lived assets</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews its long-lived assets “held and used” for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be recoverable. When the estimate of future undiscounted cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount, the Company evaluates the asset for an impairment loss. Measurement of the impairment loss is based on the fair value of the asset. 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.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Other investments </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investments over which the Company believes it does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> exercise any influence are carried at the book value and are adjusted to recognize accrued income and are adjusted for impairment whenever facts and circumstances determine that they are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recoverable. The amount of the adjustment is included in the determination of net income / (loss) (Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17</div>).</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Derivative financial instruments</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Derivative instruments are recorded in the balance sheet as either an asset or liability measured at its fair value with changes in the instruments' fair value recognized as either a component in other comprehensive income if specific hedge accounting criteria are met in accordance with guidance relating to “Derivatives and Hedging” or in earnings if hedging criteria are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> met.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Preferred shares</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Preferred shares are recorded at the initial consideration received less offering expenses and adjusted by including the redemption value of dividends paid in-kind. The Company recognizes changes in the redemption value of the preferred shares immediately as they occur and adjusts the carrying amount of the preferred shares to equal the redemption value at the end of each reporting period to that effect.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Earnings / (loss) per common share</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify; text-indent: -35.45pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic earnings/(loss) per share is computed by dividing net income/(loss) attributable to common shareholders, after the deduction of dividends paid to preferred shareholders, by the weighted-average number of common shares outstanding during the period. The weighted-average number of common shares outstanding does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include any potentially dilutive securities or any non-vested restricted shares of common stock. These non-vested restricted shares, although classified as issued and outstanding as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> are considered contingently returnable until the restrictions lapse and will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be included in the basic net income per share calculation until the shares are vested.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Diluted earnings / (loss) per share gives effect to all potentially dilutive securities to the extent that they are dilutive, using the treasury stock method. The Company uses the treasury stock method for non-vested restricted shares, while for the preferred shares issued the Company uses the if-converted method to assess the dilutive effect.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Segment reporting</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company reports financial information and evaluates its operations by charter revenue and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> by the type of ship employment for its customers, i.e. voyage or time charters. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> use discrete financial information to evaluate the operating results for each such type of charter. Although revenue can be identified for these types of charters, management cannot and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> identify expenses, profitability or other financial information for these charters. As a result, management, including the chief operating decision maker, reviews operating results solely by revenue per day and operating results of the fleet and thus the Company has determined that it operates under <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> operating segment. Furthermore, when the Company charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographical information is impracticable.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></div><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Recent accounting pronouncements</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> "Revenue from Contracts with Customers" ("ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09"</div>), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> defines a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-step process to achieve this core principle and, in doing so, more judgment and estimates <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required within the revenue recognition process than are required under existing U.S. GAAP. The FASB also permitted early adoption of the standard, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> before the original effective date of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>Subsequent to the issuance of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> the FASB issued the following ASU's which amend or provide additional guidance on topics addressed in ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09.</div> In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">08,</div> "Revenue Recognition - Principal versus Agent" (reporting revenue gross versus net). In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> "Revenue Recognition - Identifying Performance Obligations and Licenses." Lastly, in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2016, </div>the FASB issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> "Revenue Recognition - Narrow Scope Improvements and Practical Expedients." The standard is effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>and interim periods therein, and shall be applied either retrospectively to each period presented or as a cumulative effect adjustment as of the date of adoption. Early adoption of the standard, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> before <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016 </div>is permitted. The Company adopted this standard as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018 </div>and elected to use the modified retrospective transition method for the implementation of this standard. As a result of the adoption of this standard revenues generated under voyage charter agreements will be recognized on a pro-rata basis from the date of loading to discharge of cargo. Prior to the adoption of this standard, revenues generated under voyage charter agreements were recognized on a pro-rata basis over the period of the voyage which was deemed to commence upon the later of the completion of discharge of the vessel’s previous cargo or the time it receives a contract that is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> cancelable, and was deemed to end upon the completion of discharge of the current cargo. The financial impact on the Company’s financial statements will derive from voyage charters which do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> commence and end in the same reporting period due to the timing of recognition of revenue, as well as the timing of recognition of certain voyage related costs. As <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> vessels of the Company had voyage charters that were in progress as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017, </div>management believes that the implementation of this standard will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have any material impact on its financial statements.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"></div></div><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font-size: 10pt; text-transform: uppercase; text-align: justify; text-indent: 0in; margin: 0pt 0"><div style="display: inline; text-transform: none">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2015, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,</div> “Simplifying the Measurement of Inventory” to simplify the measurement of inventory using <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> out (FIFO) or average cost method. According to this ASU an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices less reasonably predictable costs of completion, disposal and transportation. This update is effective for public entities with reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016. </div>Early adoption is permitted. The Company adopted this ASU for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> material impact on its financial statements.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"> </div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> Leases (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">842</div>). The main provision of this ASU is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Accounting by lessors will remain largely unchanged from current U.S. GAAP but require the lessors to separate lease and non-lease components. The requirements of this standard include an increase in required disclosures. The Company expects that its time charter arrangements will be subject to the requirements of the new Leases standard as the Company will be regarded as the lessor. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. This update is effective for public entities with reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018, </div>including interim periods within those years. Early adoption is permitted for all entities. The Company is currently evaluating the impact, if any, of the adoption of this new standard and will evaluate any amendments that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be issued.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued Accounting Standards Update <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Stock Compensation. The new guidance is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The standard is effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016 </div>and interim periods within those annual periods. The Company adopted this ASU for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> material impact on its financial statements.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div><table style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top"><td style="text-align: justify"><div style="display: inline; font-weight: bold;"></div></td> </tr> </table> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify; text-indent: 0in"><div style="display: inline; text-transform: none"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,</div> Financial Instruments - Credit Losses. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this Update are effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2019, </div>including interim periods within those fiscal years. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet evaluated the impact, if any, of the adoption of this new standard.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. This Update addresses <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">eight</div> specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for public business entities for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>and interim periods within those fiscal years. The Company has elected early adoption of this update. The Company evaluated the impact of this ASU on its financial statements and determined that there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> impact as the classification of the related cash payments and cash receipts has always been reported as described in the ASU.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2016 </div>the FASB issued the ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18</div> – Restricted cash. This ASU requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. This update is effective for public entities with reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> including interim periods within those years. Early adoption of this update as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017 </div>and the statements of cash flows for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> explain the change during the respective periods in the total cash, cash equivalents and restricted cash. This presentation was applied retrospectively to all periods presented as required under the guidance.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01,</div> Business Combinations (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">805</div>): Clarifying the Definition of a Business ("ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01"</div>). ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> provides greater clarity on the definition of a business to assist entities in evaluating whether transactions should be accounted for as an acquisition or disposal of assets or businesses. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> is effective for us on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018, </div>with early adoption permitted. Because all of the Company’s acquisitions have been asset acquisitions, the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of this new standard to have an impact on its consolidated financial statements.</div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19.</div> Common Stock</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following the Company’s prospectus supplement filed with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 20, 2016, </div>the Company issued and sold at-the-market (ATM) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">978,847</div> shares of common stock during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016 </div>for gross proceeds net of commissions of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.2</div> million.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 14, 2016, </div>the Company reached an agreement with Friends Investment Co., an affiliate and its largest shareholder, to sell to Friends <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">719,425</div> shares of common stock at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.39</div> per share, the closing price of the Company shares on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 14, 2016, </div>for total proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,000,000.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 23, 2016, </div>the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">900,000</div> shares of common stock at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.00</div> per share in order to purchase M/V “RT Dagr” from a related party (Tennenbaum Capital Partners, a holder of the Company's Series B Preferred Shares), a feeder containership vessel.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>following the Company’s prospectus supplement filed with the SEC on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 20, 2016, </div>the Company issued and sold at-the-market (ATM) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">301,780</div> shares of common stock for gross proceeds net of commissions of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.6</div> million.</div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Preferred shares</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Preferred shares are recorded at the initial consideration received less offering expenses and adjusted by including the redemption value of dividends paid in-kind. The Company recognizes changes in the redemption value of the preferred shares immediately as they occur and adjusts the carrying amount of the preferred shares to equal the redemption value at the end of each reporting period to that effect.</div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20.</div> Subsequent Events </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 1in"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The following events occurred after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017:</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></div> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(a)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 27, 2018, </div>the Company signed and drew a term loan facility with Credit Agricole in order to refinance the existing indebtedness of M/V “Evridiki G” with the bank. This is a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,250,000</div> loan drawn by Noumea Shipping Ltd. as Borrower. The loan is payable in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourteen</div> consecutive quarterly instalments. Thirteen of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$303,000</div> each and a final instalment in the amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$311,000.</div> The margin of the loan is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.00%</div> above LIBOR. The loan is secured with the following: (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> priority mortgages over M/V “Monica P” and collateral vessel (M/V “EM Astoria”), and, (ii) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> assignment of earnings and insurance and (iii) other covenants and guarantees similar to the remaining loans of the Company.</td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; text-indent: 0in; margin: 0pt 0 0pt 0.5in"> </div> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(b)</td> <td style="text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2018, </div>the Company signed a term sheet from a major commercial banking institution for a loan up to the lesser of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$18.4</div> million or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65%</div> of the vessel's market value for the financing of the construction of M/V "Ekaterini" (Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">YZJ2013</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1153</div>). The drawdown is expected to take place upon the delivery of M/V “Ekaterini” by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2018 </div>and is subject to customary definitive documentation. The loan will be payable in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twenty</div> consecutive quarterly instalments, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">eight</div> in the amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$400,000,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> in the amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$325,000,</div> with a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,300,000</div> balloon payment to be made with the last installment. In case of lower utilization, the repayments will be reduced pro-rata. The interest rate margin is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.80%</div> over LIBOR. The loan will be secured with (i) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> priority mortgages over M/V "Ekaterini" (Hull <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">YZJ2013</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1153</div>), (ii) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> assignment of earnings and insurance of M/V “Ekaterini” and (iii) other covenants and guarantees similar to the remaining loans of the Company.</td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.5in"></div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0in; margin: 0pt 0 0pt 0.5in"> </div> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td> <td style="width: 0.25in">(c)</td> <td style="text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 19, 2018, </div>the Company signed a contract to sell M/V “Monica P”, a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">46,667</div> dwt vessel, built in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1998,</div> which was classified as held for sale since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>for the gross amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$6.45</div> million. The Company decided to sell this vessel to concentrate its drybulk fleet on the Ultramax, Panamax and Kamsarmax segments of the drybulk market. <div style="display: inline; font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is expected to record a gain on sale of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.4</div> million. The vessel will be delivered to its buyers by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018.</div></div></td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Trade accounts receivable</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The amount shown as trade accounts receivable, at each balance sheet date, includes estimated recoveries from each voyage or time charter. At each balance sheet date, the Company provides for doubtful accounts on the basis of specific identified doubtful receivables.</div></div></div></div></div>
45669
12921
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Use of estimates</div></div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 28.35pt; text-align: justify; text-indent: -28.35pt"> </div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of the accompanying consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the stated amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</div></div></div></div></div>
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On September 30, 2016, the Company signed a Supplemental Agreement with HSBC Bank PLC to defer the six remaining consecutive quarterly instalments of $75,000 each (being $450,000 in aggregate) to be payable together with the balloon payment of $653,915 in one bullet payment of $1,103,915 in November, 2017. The asset coverage ratio was reduced from 130% to 75% until the maturity of this agreement. A cash sweep mechanism was put in place until the entire deferred amount was repaid. The loan was fully repaid on May 2017.
On November 29, 2016, Euroseas signed an agreement with Colby Trading Ltd, a company affiliated with its CEO, to draw a $2 million loan to finance working capital needs. Interest on the loan is payable quarterly, and there are no principal repayments until January 2018 when the loan matures. The Company may elect to capitalize the interest to the outstanding principal amount. Under certain limited circumstances, the Company can pay principal and interest in equity, and the loan is convertible in common stock of the Company at the option of the lender at certain times. The Company repaid this loan on February 28, 2017 along with $50,556 interest.
On September 30, 2016, the Company signed a Supplemental Agreement with HSBC Bank PLC to defer the six remaining consecutive quarterly instalments of $280,000 each (being $1,680,000 in aggregate) until (a) 29 September 2017 (being the initial final repayment date together with the balloon payment of $3,160,000 in one bullet payment of $4,840,000) or (b) to extend the final repayment date of the deferred amount and the balloon payment until 29 December 2018 if Euroseas agrees with the current lender of M/V "Evridiki G" (being Credit Agricole) or any other bank the extension of the repayment date of her balloon instalment at least until her current charter matures in the first quarter of 2018. In this case, the outstanding amount of $4,840,000 will be paid in four quarterly instalments, the first two instalments of $280,000 each, the third instalment in the amount of $560,000 and the fourth instalment of $3,720,000 comprised by $560,000 and the balloon payment. The first instalment will be paid in March 2018 and the following instalments at quarterly intervals thereafter and the last one in December 2018. The asset coverage ratio was reduced from 130% to 75% until December 31, 2017. A cash sweep mechanism was put in place until the entire deferred amount is repaid. A cash collateral amount of $300,000 (corresponding to the minimum cash balance requirement) is to be pledged in the cash collateral account of Eirini P/Eleni P. For the avoidance of doubt the aforementioned cash collateral is in addition to the cash collateral required to be maintained in the cash collateral account pursuant to the Eirini P/Eleni P loan agreement (see (b) below). A prepayment of $0.4 million was also made within 2017 for the loan of Pantelis Shipping Corp. This prepayment was deducted from balloon repayment of the vessel's loan after an agreement between Euroseas and HSBC Bank PLC.
On December 22, 2016, the supplemental agreement with Noumea Shipping Ltd., owner of M/V "Evridiki G" was signed in order to refinance the final quarterly instalment of $720,000 and the balloon payment of $6,360,000 originally due in December 2016. The borrower and the lender agreed to amend the repayment profile in respect of the loan of which $7,080,000 remained outstanding as of the date of the supplemental agreement and to extend the final maturity date to January 2018. The loan will be repaid with three repayments of $720,000 each, due in December 2016, in July 2017 and in January 2018 together with the balloon payment of $4,920,000 due in January 2018. The security cover ratio covenant has been waived until November 15, 2017, when it will be restored to 110%.
On September 30, 2016, the Company signed a Supplemental Agreement with HSBC Bank PLC. The outstanding balance of the "Eirini Loan" of $12,850,000 prior to the closing of the Supplemental Agreement was reduced to $11,600,000 via prepayment of the cash collateral of $1,250,000 (which was effected after the signing of the Supplemental Agreement). In addition, seven principal instalments of $350,000 each, from June 2016 to December 2017 were deferred. Repayment of the loan will resume in March 2018 and the outstanding balance of $11,600,000 will be repaid in two quarterly instalments of $350,000 each, four of $725,000 each plus a balloon payment of $8,000,000 due in May 2019. The asset coverage ratio was reduced from 130% to 75% until December 31, 2017. A cash sweep mechanism was put in place until the entire deferred amount is repaid. A cash collateral amount of $600,000 (corresponding to the minimum cash balance requirement) is to be pledged in the cash collateral account of M/V "Eirini P" / M/V "Tasos". For the avoidance of doubt the aforementioned, cash collateral is in addition to the cash collateral required to be maintained in the cash collateral account pursuant to the Pantelis loan agreement. M/V "Eleni P" was sold on January 26, 2017 and the proceeds from the sale were contributed to the Company during 2017 and were used to partly pay for the acquisition of M/V "Tasos". HSBC Bank PLC agreed for M/V "Eleni P" to be sold and replaced by M/V "Tasos" as collateral for the loan.
On February 12, 2016, the Company signed and drew a term loan facility with Eurobank Ergasias S.A in order to refinance all of its existing facilities with the bank. This is a $14,500,000 loan drawn by Saf-Concord Shipping Ltd, Eternity Shipping Company, Allendale Investments S.A., Manolis Shipping Limited, Alterwall Business Inc., Aggeliki Shipping Ltd and Jonathan John Shipping Ltd. (which was cross-collateralized as per supplemental agreement dated September 27, 2016 replacing Eternity Shipping Company, the owner of M/V "Captain Costas" that was sold in 2016) as Borrowers. The loan is payable in twelve equal consecutive quarterly instalments of $460,000 each, with a balloon payment of $8,980,000 to be paid together with the last instalment in February 2019. The interest was based on LIBOR plus a margin of 6.00%. The loan is secured with the following: (i) first priority mortgages over M/V "Monica P", M/V "Captain Costas" replaced by M/V "Aegean Express" after her sale, M/V "Kuo Hsuing", M/V "Manolis P", M/V "Ninos", M/V "Aggeliki P", (ii) first assignment of earnings and insurance, (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the rest of the loans of the Company, and (iv) a $2,800,000 cash collateral deposit pledged in favor of the bank. The Company paid loan arrangement fee of $247,500 for this loan. In August 2017, the Company used $1 million from the pledged amount of the loan and repaid an amount of $540,000 of the balloon and made a prepayment of $460,000 that refered to the installment of the fourth quarter of 2017. Within December, 2017, M/V "Aggeliki P." was sold for scrap. An amount of $2 million from the sale of the vessel were used as a repayment of the balloon of the loan. On December 2017, the Company decided to release M/V "Monika P." from the mortgage and replace it with M/V "Joanna". For this replacement the Company repaid an amount of $460,000 from the principal and another $280,000 of the balloon payment. After all the above changes, the balloon amount became $7,9 million with the next principal instalment to commence in the first quarter of 2019.
On February 19, 2016, the Company signed a term loan facility with Nord LB and on February 25, 2016 a loan of $13,800,000 was drawn by Kamsarmax One Shipping Ltd. to partly finance the purchase of M/V "Xenia". The loan is to be repaid in fourteen consecutive equal semi-annual installments of $467,000 plus a balloon amount of $7,262,000. The margin of the loan is 2.95% above LIBOR. The loan is secured with (i) first priority mortgages over M/V "Xenia", (ii) first assignment of earnings and insurance, (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the rest of the loans of the Company. The Company paid loan arrangement fee of $187,335 for this loan.
On March 20, 2015, the Company signed a term loan facility with HSH Nordbank AG of up to the lesser of $19.00 million or 62.5% of the market value of Hull No DY 160 upon its delivery to partly finance the construction cost. A commitment fee of 0.9% per annum was payable until the loan was drawn. On April 28, 2016 and on October 27, 2016, the Company signed a supplemental loan agreements to the term loan facility signed on March 20, 2015 extending the allowed drawdown period until October 31, 2016 and subsequently until January 31, 2017 to account for delays in the construction of the Hull DY 160, and reducing the maximum loan amount to 55% of the market value of the vessel at delivery. On January 25, 2017, the Company drew a loan of $10,862,500 from HSH Nordbank secured by its newly acquired vessel M/V "Alexandros P" (ex-Hull DY 160). The loan is payable in thirteen equal consecutive quarterly instalments of $159,743 each, with a balloon payment of $8,785,841 to be paid together with the last instalment in April 2020. The interest rate margin is 3.00% over LIBOR.
On June 15, 2017, the Company signed a term loan facility with Credit Agricole and on June 19, 2017 a loan of $4,750,000 was drawn by Gregos Shipping Ltd. to partly finance the purchase of M/V "EM Astoria". The loan is to be repaid in twenty or sixteen consecutive equal quarterly installments of $100,000 plus a balloon amount of $2,750,000 or $3,150,000 respectively. The margin of the loan is 2.65% above LIBOR. The loan is secured with (i) first priority mortgages over M/V "EM Astoria", (ii) first assignment of earnings and insurance, (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the rest of the loans of the Company. The Company paid loan arrangement fee of $50,000 for this loan.
On October 19, 2017, the Company signed a term loan facility with Eurobank Ergasias S.A for an amount of $17,500,000. The loan was used to partially finance the purchase of M/V "EM Athens", M/V "EM Oinousses", M/V "EM Corfu" and M/V "Akinada Bridge". The loan was partially drawn with the delivery of each vessel to the Company and it was fully drawn on December 21, 2017.The loan is to be repaid in five consecutive equal quarterly installments of $500,000 followed by eleven consecutive equal quarterly installments of $800,000 followed by a balloon payment of $6,200,000. The margin of the loan is 4.5% above LIBOR. The loan is secured with (i) first priority mortgages over M/V "EM Athens", M/V "EM Oinousses", M/V "EM Corfu" and M/V "Akinada Bridge", (ii) first assignment of earnings and insurance, (iii) a corporate guarantee of Euroseas Ltd and other covenants and guarantees similar to the rest of the loans of the Company. The Company paid loan arrangement fee of $137,638 within 2017 and another $54,862 within 2018 for this loan.
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