Note 19 - Sale of Leaseback of Vessels

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Sale Leaseback Transactions [Text Block]

19.

Sale and Leaseback of Vessels

November

and

December

2014,

the Company sold the vessels Gas Premiership and Gas Cathar and realized a total gain of

$780,695.

The Company entered into bareboat charter agreements to leaseback the vessels for a period of

four

years. The charter back agreements are accounted for as operating leases and the gain on the sale was deferred and is being amortized to income over the

four

-year lease period. On

December

16,

2016,

the bareboat charter agreement for Gas Cathar was amended resulting in the extension of the charter period to

five

years and

three

months from the delivery date and to the reduction of monthly charter hire. For the years ended

December

31,

2014,

2015

and

2016,

the amortization amounted to

$4,954,

$195,040

and

$195,574,

respectively, and is included in Charter hire expenses in the consolidated statements of operations. Lease payments relating to the bareboat charters of the vessels amounted to

$325,758,

$4,320,000

and

$4,249,961

for the years ended

December

31,

2014,

2015

and

2016,

and are included in Charter hire expenses in the consolidated statements of operations. Future lease payments as of

December

31,

2016,

until the expiry of the charter back agreements, amount to

$3,720,000

during

2017,

$3,540,000

during

2018,

$1,560,000

during

2019

and

$390,000

during

2020.