NOTE 5 - LOSS PER SHARE

The computation of basic earnings per common share and diluted earnings per common share was as follows:

	December 31, 2014		December 31, 2013
Numerator:
Net loss attributable to Pangaea Logistics Solutions Ltd.	$	(12,128,449)	$	-
Net income attributable to Bulk Partners (Bermuda) Ltd.		-		15,452,369
Less: dividends declared on convertible redeemable preferred stock		(6,303,747)		(6,288,456)
Less: modification of conversion price		-		-
Less: beneficial conversion		(11,776,661)		(8,959,421)	(i)
Less: settlement of accrued dividends		-		(45,843)
Less: settlement of notes		-		(1,429,217)
Less: fair value adjustment		-		(7,517,915)

Total (losses) allocated to common stock	$	(30,208,857)	$	(8,788,483)
Denominator:
Weighted-average number of shares of common stock outstanding		18,726,308		13,421,955

Basic and Diluted EPS - common stock	$	(1.61)	$	(0.65)

(i)

The full value of the beneficial conversion adjustment to net income for purposes of calculating EPS is $8,959,421, however retained earnings are reduced by $4,927,423, with the remaining amount as an offset to the increase in additional paid-in capital.