Commitments and Contingencies

(a)

As of

September 30, 2020

a subsidiary of the Company, Alterwall Business Inc., owner of M/V Ninos, is involved 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 in

October 2009

and failed to pay certain invoices. The vessel was arrested in Karachi in

November 2009

and released after a bank guarantee for an amount of

$0.53

million was provided on behalf of the Company, for which the bank has restricted an equal amount of the Company's cash which is presented within Restricted Cash under “Long-term assets” in the unaudited condensed consolidated balance sheets. The legal proceedings are ongoing. Although the Company believes it will be successful in its claim, it made a provision of

$0.15

million in prior years for any costs that

may

be incurred.

(b)

November 7, 2019

Euroseas Ltd. and Synergy Holdings Limited, as part of the agreement for the acquisition of the vessels M/V “Synergy Busan”, M/V “Synergy Keelung”, M/V “Synergy Oakland” and M/V “Synergy Antwerp” (refer Notes

and

of the

2019

Annual Report), agreed that Euroseas will issue certain shares of its common stock to Synergy Holdings Limited under the following terms: If the

-month New ConTex index for a

4,250

TEU vessel (as published on https://www.vhbs.de/index or any successor website maintained by the Hamburg and Bremen Shipbrokers' Association) (the “Index Value”) is higher on

November 16, 2020

4:00

p.m. New York time than the Index Value on

November 15, 2019

4:00

p.m. New York time, then, on

November 16, 2020,

Euroseas shall issue to Synergy Holdings Limited,

$500,000

divided by the

-day volume weighted average price of the Company's common shares calculated on

November 16, 2020

4:00

p.m. New York time.

The specific contingency was resolved on

November 16, 2020

with the Index Value being higher than the Index Value on

November 15, 2020 (

refer Note

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.

As of

September 30, 2020,

future gross minimum revenues under non-cancellable time charter agreements total

$17.0

million,

$16.5

million of which is due in the

twelve

-month period ending

September 30, 2021

and

$0.5

million is due in the

twelve

-month period ending

September 30, 2022.

In arriving at the future gross minimum revenues, the Company has deducted an estimated

one

off-hire day per quarter. Such off-hire estimate

may

not

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

not

reflected above.