Vessels, net

The amounts in the accompanying unaudited condensed consolidated balance sheets are as follows:

	Costs			Accumulated Depreciation			Net Book Value

Balance, January 1, 2020		132,863,067			(16,632,734	)		116,230,333
Depreciation for the period		-			(5,001,837	)		(5,001,837	)
Capitalized expenses		408,974			-			408,974
Sale of vessels		(13,402,114	)		4,833,441			(8,568,673	)
Balance, September 30, 2020		119,869,927			(16,801,130	)		103,068,797

January 2020,

M/V "EM Oinousses", a

2,506

teu

2000

-built container carrier, experienced an engine room fire while sailing off Mozambique carrying empty containers. The fire was extinguished without any injuries to the crew. On

July 6, 2020,

the Company signed a Memorandum of agreement to sell the vessel for scrap for net proceeds of

$3.7

million following an agreement with the H&M underwriters to sell the vessel for scrap as is without effecting permanent repairs (see note

). As of

June 30, 2020

M/V EM Oinousses was presented within "Vessels held for sale” in the unaudited condensed consolidated balance sheet and was written down to its fair market value less costs to sell amounting to

$3.7

million, resulting in a non-cash loss of

$0.1

million compared to its net book value of

$3.8

million. This amount is presented in the "Loss on write-down of vessel held for sale" line in the "Operating Expenses" section of the unaudited condensed consolidated statements of operations. The Company recorded an additional

$0.1

million loss on sale of the vessel, which is included under “Net gain on sale of vessels” in the unaudited condensed consolidated statement of operations.

February 2020,

the Company entered into an agreement to sell for scrap the M/V "Manolis P”, a

1,452

teu

1995

-built container carrier, in line with the Company's strategy to dispose older vessels. The vessel reached her destination port on

April 7, 2020,

but the sale was

not

completed due to complications during its delivery to the buyers related to COVID-

restrictions and port lockdowns in the territory of arrival (Alang, India). A dispute with the buyers is in arbitration. The advance received from the buyers amounting to

$1,133,817

was transferred from the Company's bank account to an escrow account following this dispute. On

June 19, 2020,

the Company signed a Memorandum of agreement to sell the vessel for scrap for net proceeds of

$2.0

million to new buyers. The Company recorded a

$0.3

million gain on sale of the vessel, which is included under “Net gain on sale of vessels” in the unaudited condensed consolidated statement of operations.

June 30, 2020

the Company decided to sell for scrap M/V "Kuo Hsiung" a

1,169

teu

1993

-built container carrier, in line with the Company's strategy to dispose older vessels. As of

June 30, 2020,

the vessel was presented within "Vessels held for sale” in the unaudited condensed consolidated balance sheet with a value of

$1.6

million. On

July 13, 2020,

the Company signed a Memorandum of agreement to sell the vessel for scrap for net proceeds of

$1.9

million. The Company recorded a

$0.3

million gain on sale of the vessel and is included under “Net gain on sale of vessels” in the unaudited condensed consolidated statement of operations.

September 17, 2020

the Company decided to sell for scrap M/V “Ninos” a

1,169

teu

1990

-built container carrier, in line with the Company's strategy to dispose older vessels. The vessel was delivered to her new owners on

September 30, 2020.

The net proceed from the vessel sale were

$2.3

million and the Company recorded a

$0.8

million gain on sale of the vessel, which is included under “Net gain on sale of vessels” in the unaudited condensed consolidated statement of operations.

As of

September 30, 2020

all vessels are used as collateral under the Company's loan agreements (see Note