Long-Term Debt

Long-term debt represents bank loans of the Company. Outstanding long-term debt as of

December 31, 2019

and

September 30, 2020

is as follows:

Borrower	December 31, 2019			September 30, 2020
Alterwall Business Inc. / Allendale Investments S.A. / Manolis Shipping Ltd. / Joanna Maritime Ltd. / Jonathan John Shipping Ltd. / Athens Shipping Ltd. / Oinousses Navigation Ltd. / Corfu Navigation Ltd. / Bridge Shipping Ltd. / Noumea Shipping Ltd. / Gregos Shipping Ltd.		37,650,000			28,375,000
Diamantis Shipowners Ltd.		3,507,220			3,106,300
Spetses Shipowners Ltd., Kea Shipowners Ltd., Hydra Shipowners Ltd.		12,050,000			11,150,000
Antwerp Shipping Ltd. / Busan Shipping Ltd. / Keelung Shipping Ltd. / Oakland Shipping Ltd.		32,000,000			28,500,000
		85,207,220			71,131,300
Less: Current portion		(12,541,840	)		(10,306,380	)
Long-term portion		72,665,380			60,824,920
Deferred charges, current portion		246,520			246,520
Deferred charges, long-term portion		477,595			261,301
Long-term bank loans, current portion net of deferred charges		12,295,320			10,059,860
Long-term bank loans, long-term portion net of deferred charges		72,187,785			60,563,619

Loan from related party, current
Euroseas Ltd.			5,000,000				4,375,000

The future annual loan repayments are as follows:

To September 30:
2021			10,306,380
2022			21,674,690
2023			19,450,230
2024			19,700,000
Total			71,131,300

Details of the loans are discussed in Note

of our consolidated financial statements for the year ended

December 31, 2019

included in the

2019

Annual Report.

During the

second

quarter of

2020

and within

July 2020,

the Company agreed with certain of its lenders to defer a portion of its

2020

loan repayments to be repaid together with the respective balloon instalments. A total of

$5.2

million was rescheduled to

December 2021

or within

2022.

The Company's bank loans are secured with

one

or more of the following:

first

priority mortgage over the respective vessels on a joint and several basis.

first

assignment of earnings and insurance.

a corporate guarantee of Euroseas Ltd.

a pledge of all the issued shares of each borrower.

The loan agreements contain covenants such as minimum requirements regarding the security cover ratio (the ratio of fair value of vessel to outstanding loan less cash in retention accounts ranging from

120%

140%

), restrictions as to changes in management and ownership of the ship-owning companies, distribution of profits or assets (i.e.

not

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 installments. Minimum cash balance requirements are in addition to cash held in retention accounts. These cash deposits amounted to

$4,410,376

and

$2,008,593

as of

December 31, 2019

and

September 30, 2020,

respectively, and are included in "Restricted cash" under "Current assets" and "Long-term assets" in the accompanying unaudited condensed consolidated balance sheets. As of

September 30, 2020,

the Company satisfied all its debt covenants.

Interest expense, including loan fee amortization for the

nine

-month periods ended

September 30, 2019

and

2020

amounted to

$2,272,181

and

$3,320,074,

respectively.