4.	Related Party Transactions

The Company’s vessel owning companies are parties to management agreements with the Management Company which is controlled by members of the Pittas family, whereby the Management Company provides technical and commercial vessel management for a fixed daily fee of Euro

685

for both

2017

and

2018

under the Company’s Master Management Agreement (“MMA”) with Eurobulk. Vessel management fees paid to the Management Companies amounted to

$1,102,101

and

$1,861,009

in the

six

-month periods ended

June 30, 2017

and

2018,

respectively.

The MMA was further renewed on

January 1, 2018

for an additional

five

year term until

January 1, 2023

with the

volume discount permanently incorporated in the daily management fee. The daily management fee remained unchanged at Euros

685

for the year

2018

and will be adjusted annually for inflation in the Eurozone. These fees are recorded under "Related party management fees" in the "Consolidated statements of operations".

November 29, 2016,

Euroseas signed an agreement with Colby Trading Ltd, a company affiliated with its CEO, to draw a

million loan to finance working capital needs. Interest on the loan was

10%

per annum payable quarterly. The Company repaid the loan on

February 28, 2017

and paid

$50,556

for interest. In

March 2017,

the Company received a commitment by Colby Trading Ltd. to provide financing of up to

$4.00

million on terms to be mutually agreed to fund the Company's working capital requirements for the period through

December 2018,

if needed. Following the spin-off of EuroDry on

May 2018,

this amount was adjusted to

$2.00

million and the availability period was extended up to

September 2019.

In addition to the vessel management services, the Management Company provides the Company with the services of its executives, services associated with the Company being a public company and other services to our subsidiaries. For the

six

months ended

June 30, 2017

and

June 30, 2018,

compensation paid to the Management Company for such additional services to the Company was

$936,126

and

$707,673

respectively. This amount is included in the general and administrative expenses.

Amounts due to or from related company 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 offset exists. As of

December 31, 2017

the amount due to related company was

$4,986,836.

As of

June 30, 2018,

the amount due to related company was

$8,642,163.

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

of the vessel sales or acquisition prices and

1.25%

of charter revenues. Commissions on vessel sales amounted to

$64,500

for the sale of M/V Monica P, during the

six

months ended

June 30, 2018.

Commission on vessel sales amounted to

$53,871

for the sale of M/V RT Dagr and M/V Eleni P. , during the

six

months ended

June 30, 2017.

Commissions to Eurochart S.A. for chartering services were

$134,085

and

$238,016

for the

six

-month periods ended

June 30, 2017

and

2018,

respectively.

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”). Technomar Crew Management Services Corp (“Technomar”), is a company owned by certain members of the Pittas family, together with

two

other unrelated ship management companies. Sentinel is paid a commission on insurance premiums

not

exceeding

5%;

Technomar is paid a fee of about

$50

per crew member per month. Total fees charged by Sentinel and Technomar were

$31,348

and

$44,422

in the

first

half of

2017,

respectively. In the

first

half of

2018,

total fees charged by Sentinel and Technomar were

$24,039

and

$71,341,

respectively. These amounts are recorded in “Vessel operating expenses” under “Operating expenses”.

June 2017,

the Company acquired M/V EM Astoria for

$4.75

million. The vessel was acquired from Euromar LLC (“Euromar”), which at that time was a joint venture investment of the Company and which in

September 2017

became a wholly-owned subsidiary of the Company.

Related party revenue amounting to

$120,000

for the

six

-month periods ended

June 30, 2017

relates to fees received from Euromar, for strategic, financial, reporting and various administrative services provided by Euroseas. Euroseas did

not

charge any administrative service cost for the

six

months ended

June 30, 2018.