Commitments and Contingencies

(a)

As of

June 30, 2017

a subsidiary of the Company, Alterwall Business Inc. owner of M/V Ninos, is in 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 and failed to pay certain invoices. The vessel was arrested in Karachi and released after a bank guarantee for an amount of

$0.53

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

$0.15

million for any costs that

may

be incurred.

There are

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

not

have a material impact on the consolidated results of operations, financial position and cash flows.

(b)

Future gross minimum revenues upon collection of hire under non-cancellable time charter agreements involving

one

of its vessels in operation as of

June 30, 2017

totals

$12.47

million (

one

off-hire day per quarter for each vessel is assumed and

drydockings are due for the vessel during the charter period; in addition early delivery of the vessel by the charterers or any exercise of the charterers’ options to extend the terms of the charters are

not

accounted for).

(c)

As of

June 30, 2017,

the Company had under construction

one

bulk carrier, a Kamsarmax, with a total contracted amount remaining to be paid of

$2.25

million in

2017

and

$18

million in

2018.