8.	Commitments and Contingencies:

Legal proceedings:

Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business. As part of the normal course of operations, the Company's customers

may

disagree on amounts due to the Company under the provision of the contracts which are normally settled through negotiations with the customer. Disputed amounts are normally reflected in revenues at such time as the Company reaches agreement with the customer on the amounts due.

August 1, 2017,

the Company received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) requesting certain documents and information in connection with offerings made by the Company between

February 2017

and

August 2017.

The Company provided the requested information to the SEC in response to that subpoena. On

September 26, 2018

and on

October 5, 2018

the Company received

two

additional subpoenas from the SEC requesting certain documents and information in connection with the previous subpoena the Company received on

August 1, 2017.

The Company provided the requested information to the SEC in response to these subpoenas. The SEC investigation is ongoing and the Company continues to cooperate with the SEC in its investigation. The Company is unable to predict what action, if any, might be taken by the SEC or its staff as a result of this investigation or what impact, if any, the cost of responding to the SEC’s investigation or its ultimate outcome might have on the Company’s financial position, results of operations or liquidity. Hence the Company has

not

established any provision for losses relating to this matter.

August 23, 2017,

a purported securities class action complaint was filed in the United States District Court for the Eastern District of New York (

No.

2:17

-cv-

04987

(JFB)(SIL)) by Christopher Brady on behalf of himself and all others similarly situated against (among other defendants) the Company and

two

of its executive officers. The complaint is brought on behalf of an alleged class of those who purchased common stock of the Company between

January 17, 2017

and

August 22, 2017,

and alleges that the Company and

two

of its executive officers violated Sections

(b) and/or

(a) of the Securities Exchange Act of

1934

and Rule

10b

promulgated thereunder. On

August 24, 2017,

second

purported securities class action complaint was filed in the same court against the same defendants (

No.

2:17

-cv-

05016

(JFB)(SIL)) which makes similar allegations and purports to allege violations of Sections

(b) and

(a) of the Exchange Act and Rule

10b

promulgated thereunder. By order dated

July 20, 2018,

the court consolidated the

two

actions under docket

no.

2:17

-cv-

04987

and appointed lead plaintiffs for the consolidated action. On

September 18, 2018,

the plaintiffs filed a consolidated amended complaint. The amended complaint purports to be brought on behalf of shareholders who purchased the common stock of the Company between

November 23, 2016

and

April 3, 2018,

makes allegations similar to those made in the original complaints, seeks similar relief as the original actions, and alleges that some or all the defendants violated sections

(b),

(a), and/or

20A

of the Securities Exchange Act of

1934

and Rule

10b

promulgated thereunder. All defendants filed motions to dismiss the amended complaint on

March 25, 2019.

Plaintiffs filed a consolidated opposition to Defendants’ motions to dismiss on

May 24, 2019.

Defendants filed replies in further support of the motions to dismiss on

June 28, 2019.

By order dated

August 3, 2019,

the court dismissed the case with prejudice. Plaintiffs filed a notice of appeal on

August 26, 2019.

the Company and its management believe that the allegations in the complaints are without merit and plan to vigorously defend themselves against the allegations. By letter dated

January 2, 2019,

certain co-defendants in the class action litigation (Kalani Investments Ltd. (“Kalani”), Murchinson Ltd. and Marc Bistricer) requested that the Company indemnify and hold them harmless against all losses, including reasonable costs of defense, arising from the litigation, pursuant to the provisions of the Common Stock Purchase Agreement between the Company and Kalani. The Company acknowledged receipt of this indemnification request by letter dated

February 20, 2019,

and reserved all of its rights.

Other than the cases mentioned above, the Company is

not

a party to any material litigation where claims or counterclaims have been filed against the Company other than routine legal proceedings incidental to its business.

Environmental Liabilities:

The Company accrues for the cost of environmental liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable exposure. Currently, management is

not

aware of any such claims or contingent liabilities, which should be disclosed, or for which a provision should be established in the accompanying condensed consolidated financial statements.